At Home Group Inc. (NYSE:HOME) Q2 2020 Earnings Conference Call - Final Transcript
Sep 04, 2019 • 04:30 pm ET
Jeffrey R. Knudson
follows. New store growth of 10% and same store sales growth of 1% to 2%, translating to overall net sales growth of low double digits and adjusted EPS growth in the low to mid teens. Enabled by these new assumptions, we are establishing targets for our balance sheet for the first time as a public company. I shared earlier this year that we plan to be free cash flow neutral in fiscal 2021. We now plan to drive positive free cash flow in fiscal '21 and beyond. We also expect sequential annual improvement in our adjusted leverage ratio with an ultimate target of less than two and a half times.
We feel that emphasizing free cash flow, enhancing our liquidity and strengthen our balance sheet has enabled by our lower growth rate are key to supporting our initiatives and driving consistent shareholder returns over the long term. The depth of our pipeline, strong productivity of our new and older stores and the strategic opportunities we have in both merchandising and marketing continue to give us confidence in our business model and a longer term potential for 600 plus stores.
With that, I'll now turn it back over to Lee for his final remarks.
Lewis L. Bird III
Thank you, Jeff. In summary, our business model is strong and we are well positioned to capture market share and capitalize on a significant whitespace opportunity. In the near term, we're refining our marketing approach and leaning into growth initiatives like our newly introduced EDLP Plus strategy to reaccelerate comps and continue to grow total sales. The health of our inventory continues to improve and we're excited about the roll out of our buy-online-pickup-in-store test this year to better enable us to meet our customer's needs, no matter how they shop.
I'd like to thank our team members for their continued hard work and dedication to these initiatives as we grow our business. Our focus isn't on delivering value for our team members, our customers and ultimately our shareholders. Looking beyond fiscal 2020, we are confident that these growth initiatives, along with a stronger balance sheet between store growth -- stronger balance between store growth, profitability and free cash flow generation are the right path forward to generating that long term value. We're excited about the future for At home and look forward to updating you on our progress in future quarters.
Dana, please open the line for the questions.