The company had to sell new shares to raise money to buy, and when it did so it cost them well below what its stock had traded in the open market. Stocks tumbled. When Moore spoke to investors after the closing, one said he felt he got “the wave” on the deal.
Thursday’s quarterly earnings also didn’t inspire much confidence despite reports of order increases, a rare profit, and projections of annual revenue – Appliances Connection’s pre-merger numbers – that exceeded $ 500 million this year.
The company, like the rest of the industry, is grappling with supply chain issues. Moore told investors Thursday that the company is doing less advertising to avoid attracting orders it can’t fulfill.
But executives say it’s early days, and industry analysts say the opportunity in devices is real right now.
Homeowners are sitting on record levels of equity and spending more time at home overall with COVID-19, making it easier to justify home improvements. More and more millennials are entering the housing market.
“All of these things are very, very good,” said Joe Derochowski, who follows the home industry at research firm NPD Group. “The home room was really hot, and with the pandemic, it’s gotten even hotter.”