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At Home Shifts Some Manufacturing From China on Tariff Threat
Reshmi Basu
1 min read

(Bloomberg) -- Retailer At Home Group Inc. is shifting some of its manufacturing and product supply lines away from China in an effort to minimize the impact of tariff’s on US imports that President-elect Donald Trump has threatened to impose on Beijing, according to people familiar with the matter.

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Company management told investors on a recent third-quarter earnings call that it’s shipping products from Vietnam, India and Turkey and expanding sourcing from other countries, including the US, said the people, who asked not to be identified discussing a private matter.

Representatives with the company and its private equity owner Hellman & Friedman declined to comment.

The home decor retailer has pulled back on capital spending with inflation-wary consumers balking at some home furnishing purchases. It lowered capital spending to $4 million in the third-quarter from $15.1 million in the prior year period, said the people. Net sales declined 2.5% year-over-year to $414.7 million, they said. Meanwhile, comparable store sales declined 2.5%, versus a 10.9% drop last year. Its ecommerce business showed growth in the quarter, up almost 30% year-over-year.

The company gained $5.2 million on an adjusted basis after posting a $1.9 million loss before interest, taxation, depreciation and amortization a year earlier, said the people.

At quarter-end, it had $159 million of total liquidity, with $17.9 million of cash and it borrowed $401.5 million from its revolving line of credit.

Its $600 million first-lien term loan was quoted at nearly 44 cents on the dollar, according to data compiled by Bloomberg.

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