Floor & Decor Holdings, Inc. Announces Second Quarter Fiscal 2024 Financial Results

Rhea-AI Summary

Floor & Decor Holdings (NYSE: FND) reported a 0.2% decrease in net sales to $1,133.1 million for Q2 2024 compared to Q2 2023. Comparable store sales dropped 9.0%. Diluted EPS was $0.52, down from $0.66 last year. Net income fell 20.7% to $56.7 million, and operating income decreased 24.9% to $71.3 million. Operating margin dropped 210 basis points to 6.3%. The company opened five new warehouse stores.

For the first half of 2024, net sales declined 1.2% to $2,230.4 million, with a 10.3% decrease in comparable store sales. Operating income fell 31.4% to $130.6 million, and net income decreased 25.4% to $106.7 million. Diluted EPS was $0.99, down from $1.33.

Updated fiscal year guidance includes net sales of $4,400-$4,490 million, comparable store sales of (8.5)% to (6.5)%, and diluted EPS of $1.55-$1.75. The company plans to open 30 new warehouse stores in 2024.

Positive

• Gross margin rate exceeded expectations.
• Opened five new warehouse stores, with a plan to open 30 in 2024.

Negative

• Net sales decreased by 0.2% in Q2 2024.
• Comparable store sales dropped 9.0%.
• Diluted EPS fell 21.2% to $0.52 from $0.66.
• Net income decreased 20.7% to $56.7 million.
• Operating income dropped 24.9% to $71.3 million.
• Operating margin decreased by 210 basis points.
• Net sales for the first half of 2024 fell 1.2%.
• Comparable store sales for the first half dropped 10.3%.
• Operating income for the first half fell 31.4%.
• Net income for the first half decreased 25.4%.
• Diluted EPS for the first half dropped 25.6% to $0.99 from $1.33.

Insights

Financial Analyst

Floor & Decor's Q2 2024 results paint a picture of resilience amid challenging market conditions. The company's net sales of $1,133.1 million represent a marginal 0.2% decrease year-over-year, while comparable store sales declined by 9.0%. This performance reflects the ongoing impact of monetary policy on the housing market and discretionary spending.

Despite the sales headwinds, Floor & Decor demonstrated effective cost management. The company's gross margin exceeded expectations, which, combined with prudent expense control, helped mitigate the impact of weak sales. This resulted in diluted EPS of $0.52, down from $0.66 in the same period last year, a smaller decline than the drop in sales might suggest.

The company's expansion strategy remains on track, with five new warehouse stores opened in Q2 and plans to open 30 in 2024. However, the decision to open approximately 25 new stores in 2025, down from the 30-35 range previously targeted, indicates a cautious approach to growth in the current market environment.

Looking ahead, Floor & Decor has updated its fiscal 2024 outlook, projecting net sales between $4,400 million and $4,490 million, with comparable store sales expected to decline between 6.5% and 8.5%. The company anticipates diluted EPS between $1.55 and $1.75, reflecting the ongoing challenges in the market.

While the near-term outlook remains challenging, Floor & Decor's long-term strategy of expanding to 500 warehouse-format stores in the U.S. positions the company for potential strong growth when industry fundamentals improve. Investors should monitor housing market trends and consumer discretionary spending patterns as key indicators for the company's future performance.

Market Research Analyst

Floor & Decor's Q2 2024 results offer valuable insights into the current state of the home improvement and renovation market. The 9.0% decrease in comparable store sales indicates a significant softening in demand for large project discretionary hard surface flooring. This trend aligns with broader market observations of reduced consumer spending on big-ticket home improvement items.

The company's performance should be viewed in the context of the broader economic environment. With ongoing monetary tightening affecting the housing market and repair and remodeling spending, Floor & Decor's results serve as a barometer for the overall health of the home improvement sector.

Interestingly, despite the challenging sales environment, Floor & Decor continues to expand its physical presence. The opening of five new warehouse stores in Q2 and plans for 30 new stores in 2024 suggest a strategic focus on long-term market share growth. This expansion strategy, albeit at a slightly reduced pace for 2025, could position the company favorably when market conditions improve.

The updated fiscal 2024 outlook, projecting net sales between $4,400 million and $4,490 million, reflects a cautious but not pessimistic view of the market. The expected comparable store sales decline of 6.5% to 8.5% indicates that the company anticipates the challenging environment to persist throughout the year.

For investors and industry observers, Floor & Decor's results and outlook provide valuable signals about the health of the home improvement market and consumer discretionary spending patterns. The company's performance in the coming quarters will be a key indicator of any potential recovery or further softening in the sector.

Net sales of $1,133.1 million decreased 0.2% from the second quarter of fiscal 2023

Comparable store sales decreased 9.0%

Diluted earnings per share of $0.52

Opened five new warehouse stores

ATLANTA--(BUSINESS WIRE)-- Floor & Decor Holdings, Inc. (NYSE: FND) (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the second quarter of fiscal 2024, which ended June 27, 2024.

Tom Taylor, Chief Executive Officer, stated, “We and our industry continue to contend with monetary policy affecting the housing market and repair and remodeling spending, including ongoing soft demand for large project discretionary hard surface flooring. Consequently, our second quarter total and comparable store sales were modestly below our expectations. However, our gross margin rate exceeded our expectations, which, coupled with prudent expense management, helped mitigate most of the impact from weak sales. This dynamic enabled us to report fiscal 2024 second quarter diluted earnings per share of $0.52, compared with $0.66 in the same period last year. We continue to implement strategies designed to grow our market share while working prudently to manage our profitability and maintain a strong balance sheet in this challenging period.”

Mr. Taylor continued, “We opened five new warehouse stores in the second quarter and plan to open 30 in 2024, in line with our prior expectation of 30 to 35 stores. Looking forward to 2025, we believe it is prudent to open approximately 25 new warehouse stores in this muted market environment. These planned openings are long-term growth investments toward our plan to operate 500 warehouse-format stores in the United States over time and should further solidify our market share and position us for strong growth when industry fundamentals improve.”

Please see “Comparable Store Sales” below for information on how the Company calculates period-over-period changes in comparable store sales.

For the Thirteen Weeks Ended June 27, 2024

• Net sales of $1,133.1 million decreased 0.2% from $1,135.9 million in the second quarter of fiscal 2023.
• Comparable store sales decreased 9.0%.
• We opened five new warehouse stores, ending the quarter with 230 warehouse stores and five design studios.
• Operating income of $71.3 million decreased 24.9% from $95.0 million in the second quarter of fiscal 2023. Operating margin of 6.3% decreased 210 basis points from the second quarter of fiscal 2023.
• Net income of $56.7 million decreased 20.7% from $71.5 million in the second quarter of fiscal 2023. Diluted earnings per share ("EPS") of $0.52 decreased 21.2% from $0.66 in the second quarter of fiscal 2023.
• Adjusted EBITDA* of $136.9 million decreased 10.4% from $152.8 million in the second quarter of fiscal 2023.

For the Twenty-six Weeks Ended June 27, 2024

• Net sales of $2,230.4 million decreased 1.2% from $2,258.0 million in the same period of fiscal 2023.
• Comparable store sales decreased 10.3%.
• We opened nine new warehouse stores.
• Operating income of $130.6 million decreased 31.4% from $190.5 million in the same period of fiscal 2023. Operating margin of 5.9% decreased 250 basis points from the same period of fiscal 2023.
• Net income of $106.7 million decreased 25.4% from $143.0 million in the same period of fiscal 2023. Diluted EPS of $0.99 decreased 25.6% from $1.33 in the same period of fiscal 2023.
• Adjusted EBITDA* of $259.9 million decreased 14.1% from $302.4 million in the same period of fiscal 2023.

*Non-GAAP financial measure. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

Updated Outlook for the Fiscal Year Ending December 26, 2024:

• Net sales of approximately $4,400 million to $4,490 million
• Comparable store sales of approximately (8.5)% to (6.5)%
• Diluted EPS of approximately $1.55 to $1.75
• Adjusted EBITDA* of approximately $480 million to $505 million
• Depreciation and amortization expense of approximately $235 million
• Interest expense, net of approximately $6 million to $7 million
• Tax rate of approximately 18%
• Diluted weighted average shares outstanding of approximately 108 million shares
• Open 30 new warehouse stores
• Capital expenditures of approximately $360 million to $410 million

*Non-GAAP financial measure. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

Conference Call Details

A conference call to discuss the second quarter fiscal 2024 financial results is scheduled for today, August 1, 2024, at 5:00 p.m. Eastern Time. A live audio webcast of the conference call, together with related materials, will be available online at ir.flooranddecor.com.

A recorded replay of the conference call is expected to be available approximately three hours after the conclusion of the call and can be accessed both online at ir.flooranddecor.com and by dialing 844-512-2921 (international callers please dial 412-317-6671). The pin number to access the telephone replay is 13747153. The replay will be available until August 8, 2024.

About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer and commercial flooring distributor operating 230 warehouse-format stores and five design studios across 36 states as of June 27, 2024. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate and vinyl, and natural stone along with decorative accessories and wall tile, installation materials, and adjacent categories at everyday low prices. The Company was founded in 2000 and is headquartered in Atlanta, Georgia.

Comparable Store Sales

Comparable store sales refer to period-over-period comparisons of our net sales among the comparable store base and are based on when the customer obtains control of the product, which is typically at the time of sale. A store is included in the comparable store sales calculation on the first day of the thirteenth full fiscal month following a store’s opening, which is when we believe comparability has been achieved. Changes in our comparable store sales between two periods are based on net sales for stores that were in operation during both of the two periods. Any change in the square footage of an existing comparable store, including for remodels and relocations within the same primary trade area of the existing store being relocated, does not eliminate that store from inclusion in the calculation of comparable store sales. Stores that are closed for a full fiscal month or longer are excluded from the comparable store sales calculation for each full fiscal month that they are closed. Since our e-commerce, regional account manager, and design studio sales are fulfilled by individual stores, they are included in comparable store sales only to the extent the fulfilling store meets the above mentioned store criteria. Sales through our Spartan Surfaces, LLC ("Spartan") subsidiary do not involve our stores and are therefore excluded from the comparable store sales calculation.

Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA (which are shown in the reconciliation below) are presented as supplemental measures of financial performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP"). We define EBITDA as net income before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted to eliminate the impact of non-cash stock-based compensation expense and certain items that we do not consider indicative of our core operating performance. Reconciliations of these measures to the most directly comparable GAAP financial measure are set forth in the table below.

EBITDA and Adjusted EBITDA are key metrics used by management and our board of directors to assess our financial performance and enterprise value. We believe that EBITDA and Adjusted EBITDA are useful measures, as they eliminate certain items that are not indicative of our core operating performance and facilitate a comparison of our core operating performance on a consistent basis from period to period. We also use Adjusted EBITDA as a basis to determine covenant compliance with respect to our credit facilities, to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry.

EBITDA and Adjusted EBITDA are non-GAAP measures of our financial performance and should not be considered as alternatives to net income as a measure of financial performance, or any other performance measure derived in accordance with GAAP and they should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of liquidity or free cash flow for management's discretionary use. In addition, these non-GAAP measures exclude certain non-recurring and other charges. Each of these non-GAAP measures has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the items eliminated in the adjustments made to determine EBITDA and Adjusted EBITDA, such as stock-based compensation expense, fair value adjustments related to contingent earn-out liabilities, and other adjustments. Our presentation of EBITDA and Adjusted EBITDA should not be construed to imply that our future results will be unaffected by any such adjustments. Definitions and calculations of EBITDA and Adjusted EBITDA differ among companies in the retail industry, and therefore EBITDA and Adjusted EBITDA disclosed by us may not be comparable to the metrics disclosed by other companies.

Please see “Reconciliation of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures used in this release to their most directly comparable GAAP financial measures.

Floor & Decor Holdings, Inc. Condensed Consolidated Statements of Income (In thousands, except for per share data) (Unaudited)
	Thirteen Weeks Ended
	June 27, 2024						June 29, 2023						% Increase (Decrease)
	Amount			% of Net Sales			Amount			% of Net Sales
Net sales	$	1,133,139		100.0	%		$	1,135,899		100.0	%		(0.2	)%
Cost of sales		642,105		56.7				656,266		57.8			(2.2	)%
Gross profit		491,034		43.3				479,633		42.2			2.4	%
Operating expenses:
Selling and store operating		341,408		30.1				311,406		27.4			9.6	%
General and administrative		67,671		6.0				63,279		5.5			6.9	%
Pre-opening		10,627		0.9				9,974		0.9			6.5	%
Total operating expenses		419,706		37.0				384,659		33.8			9.1	%
Operating income		71,328		6.3				94,974		8.4			(24.9	)%
Interest expense, net		663		0.1				2,898		0.3			(77.1	)%
Income before income taxes		70,665		6.2				92,076		8.1			(23.3	)%
Income tax expense		13,999		1.2				20,624		1.8			(32.1	)%
Net income	$	56,666		5.0	%		$	71,452		6.3	%		(20.7	)%
Basic weighted average shares outstanding		107,046						106,206
Diluted weighted average shares outstanding		108,274						107,805
Basic earnings per share	$	0.53					$	0.67					(20.9	)%
Diluted earnings per share	$	0.52					$	0.66					(21.2	)%

	Twenty-six Weeks Ended
	June 27, 2024						June 29, 2023						% Increase (Decrease)
	Amount			% of Net Sales			Amount			% of Net Sales
Net sales	$	2,230,428		100.0	%		$	2,257,951		100.0	%		(1.2	)%
Cost of sales		1,269,368		56.9				1,309,200		58.0			(3.0	)%
Gross profit		961,060		43.1				948,751		42.0			1.3	%
Operating expenses:
Selling and store operating		675,753		30.3				615,077		27.3			9.9	%
General and administrative		134,448		6.0				125,190		5.5			7.4	%
Pre-opening		20,220		0.9				17,994		0.8			12.4	%
Total operating expenses		830,421		37.2				758,261		33.6			9.5	%
Operating income		130,639		5.9				190,490		8.4			(31.4	)%
Interest expense, net		2,618		0.2				7,760		0.3			(66.3	)%
Income before income taxes		128,021		5.7				182,730		8.1			(29.9	)%
Income tax expense		21,323		0.9				39,754		1.8			(46.4	)%
Net income	$	106,698		4.8	%		$	142,976		6.3	%		(25.4	)%
Basic weighted average shares outstanding		106,908						106,084
Diluted weighted average shares outstanding		108,266						107,764
Basic earnings per share	$	1.00					$	1.35					(25.9	)%
Diluted earnings per share	$	0.99					$	1.33					(25.6	)%

Condensed Consolidated Balance Sheets (In thousands, except for share and per share data) (Unaudited)
	As of June 27, 2024			As of December 28, 2023
Assets
Current assets:
Cash and cash equivalents	$	138,063		$	34,382
Income taxes receivable		4,109			27,870
Receivables, net		109,334			99,513
Inventories, net		1,037,284			1,106,150
Prepaid expenses and other current assets		53,415			48,725
Total current assets		1,342,205			1,316,640
Fixed assets, net		1,700,787			1,629,917
Right-of-use assets		1,342,345			1,282,625
Intangible assets, net		152,036			153,869
Goodwill		257,940			257,940
Deferred income tax assets, net		15,239			14,227
Other assets		7,510			7,332
Total long-term assets		3,475,857			3,345,910
Total assets	$	4,818,062		$	4,662,550
Liabilities and stockholders’ equity	​
Current liabilities:	​
Current portion of term loan	$	2,103		$	2,103
Current portion of lease liabilities		132,770			126,428
Trade accounts payable		698,716			679,265
Accrued expenses and other current liabilities		302,275			332,940
Deferred revenue		13,322			11,277
Total current liabilities		1,149,186			1,152,013
Term loan		194,733			194,939
Lease liabilities		1,362,140			1,301,754
Deferred income tax liabilities, net		53,974			67,188
Other liabilities		11,435			15,666
Total long-term liabilities		1,622,282			1,579,547
Total liabilities		2,771,468			2,731,560
Stockholders’ equity	​
Capital stock:	​
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at June 27, 2024 and December 28, 2023		—			—
Common stock Class A, $0.001 par value; 450,000,000 shares authorized; 107,132,849 shares issued and outstanding at June 27, 2024 and 106,737,532 issued and outstanding at December 28, 2023		107			107
Common stock Class B, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at June 27, 2024 and December 28, 2023		—			—
Common stock Class C, $0.001 par value; 30,000,000 shares authorized; 0 shares issued and outstanding at June 27, 2024 and December 28, 2023		—			—
Additional paid-in capital		523,282			513,060
Accumulated other comprehensive income, net		106			1,422
Retained earnings		1,523,099			1,416,401
Total stockholders’ equity		2,046,594			1,930,990
Total liabilities and stockholders’ equity	$	4,818,062		$	4,662,550

Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Twenty-six Weeks Ended
	June 27, 2024				June 29, 2023
Operating activities
Net income	$	106,698		​	$	142,976
Adjustments to reconcile net income to net cash provided by operating activities:				​	​
Depreciation and amortization		114,807		​		96,028
Stock-based compensation expense		15,587		​		15,047
Deferred income taxes		(13,770	)	​		(13,480	)
Loss on asset impairments and disposals, net		1,511				765
Change in fair value of contingent earn-out liabilities		(87	)			1,787
Interest cap derivative contracts		85		​		57
Changes in operating assets and liabilities, net of effects of acquisition:				​	​
Receivables, net		(9,821	)	​		12,595
Inventories, net		68,866		​		128,554
Trade accounts payable		19,136		​		84,885
Accrued expenses and other current liabilities		18,969		​		6,579
Income taxes		24,390		​		(6,755	)
Deferred revenue		2,045		​		4,324
Other, net		(6,936	)	​		3,283
Net cash provided by operating activities		341,480		​		476,645
Investing activities				​
Purchases of fixed assets		(225,614	)	​		(279,175	)
Acquisition, net of cash acquired		—		​		(17,156	)
Net cash used in investing activities		(225,614	)			(296,331	)
Financing activities				​
Payments on term loan		(1,051	)	​		(1,051	)
Borrowings on revolving line of credit		258,600				384,200
Payments on revolving line of credit		(258,600	)			(559,400	)
Payments of contingent earn-out liabilities		(5,769	)			(5,241	)
Proceeds from exercise of stock options		5,442		​		4,858
Proceeds from employee stock purchase plan		2,720		​		2,558
Tax payments for stock-based compensation awards		(13,527	)			(11,861	)
Net cash used in financing activities		(12,185	)	​		(185,937	)
Net increase (decrease) in cash and cash equivalents		103,681		​		(5,623	)
Cash and cash equivalents, beginning of the period		34,382		​		9,794
Cash and cash equivalents, end of the period	$	138,063		​	$	4,171
Supplemental disclosures of cash flow information	​			​
Buildings and equipment acquired under operating leases	$	128,008		​	$	112,554
Cash paid for interest, net of capitalized interest	$	2,121		​	$	7,455
Cash paid for income taxes, net of refunds	$	10,699			$	60,792
Fixed assets accrued at the end of the period	$	93,506		​	$	116,555

Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited)   EBITDA and Adjusted EBITDA
	Thirteen Weeks Ended
	June 27, 2024				June 29, 2023
Net income (GAAP):	$	56,666			$	71,452
Depreciation and amortization (a)		57,837				49,177
Interest expense, net		663				2,898
Income tax expense		13,999				20,624
EBITDA		129,165				144,151
Stock-based compensation expense (b)		8,355				8,306
Other (c)		(663	)			353
Adjusted EBITDA	$	136,857			$	152,810

	Twenty-six Weeks Ended
	June 27, 2024				June 29, 2023
Net income (GAAP):	$	106,698			$	142,976
Depreciation and amortization (a)		113,716				95,103
Interest expense, net		2,618				7,760
Income tax expense		21,323				39,754
EBITDA		244,355				285,593
Stock-based compensation expense (b)		15,587				15,047
Other (c)		(87	)			1,787
Adjusted EBITDA	$	259,855			$	302,427

(a)		Excludes amortization of deferred financing costs, which is included as part of interest expense, net in the table above.
(b)		Non-cash charges related to stock-based compensation programs, which vary from period to period depending on the timing of awards and forfeitures.
(c)		Other adjustments include amounts management does not consider indicative of our core operating performance. Amounts for both the thirteen and twenty-six weeks ended June 27, 2024 and June 29, 2023 relate to changes in the fair value of contingent earn-out liabilities.

Forward-Looking Statements

This release and the associated webcast/conference call contain forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact contained in this release and the associated webcast/conference call, including statements regarding the Company’s future operating results and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements are based on our current expectations, assumptions, estimates, and projections. These statements involve known and unknown risks, uncertainties, and other important factors that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward-looking statements are based on management’s current expectations and assumptions regarding the Company’s business, the economy, and other future conditions, including the impact of natural disasters on sales.

In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “budget,” “potential,” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements contained in this release are only predictions. Although the Company believes that the expectations reflected in the forward-looking statements in this release and the associated webcast/conference call are reasonable, the Company cannot guarantee future events, results, performance or achievements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements in this release or the associated webcast/conference call, including, without limitation, (1) an overall decline in the health of the economy, the hard surface flooring industry, consumer confidence and discretionary spending, and the housing market, including as a result of persistently high or rising inflation or interest rates, (2) our failure to successfully manage the challenges that our planned new store growth poses or the impact of unexpected difficulties or higher costs during our expansion, (3) our inability to enter into leases for additional stores on acceptable terms or renew or replace our current store leases, (4) our failure to successfully anticipate and manage trends, consumer preferences, and demand, (5) our inability to successfully manage increased competition, (6) our inability to manage our inventory, including the impact of inventory obsolescence, shrinkage, and damage, (7) political and regulatory conditions that contribute to uncertainty and market volatility, including the upcoming U.S. presidential election and legislative, regulatory, trade and policies associated with a new administration, (8) any disruption in our distribution capabilities, supply chain, and our related planning and control processes, including carrier capacity constraints, port congestion or shut down, transportation costs, and other supply chain costs or product shortages, (9) any increases in wholesale prices of products, materials, and transportation costs beyond our control, including increases in costs due to inflation, (10) the resignation, incapacitation, or death of any key personnel, including our executive officers, (11) our inability to attract, hire, train, and retain highly qualified managers and staff, (12) the impact of any labor activities, (13) our dependence on foreign imports for the products we sell, including risks associated with obtaining products from abroad, (14) geopolitical risks, such as the conflict in the Middle East, the ongoing war in Ukraine, and U.S. policies related to global trade and tariffs, such as import restrictions under the Uyghur Forced Labor Prevention Act, or any antidumping and countervailing duties, any of which could impact our ability to import from foreign suppliers or raise our costs, (15) our ability to manage our comparable store sales, (16) any failure by any of our suppliers to supply us with quality products on attractive terms and prices, (17) any failure by our suppliers to adhere to the quality standards that we set for our products, (18) our inability to locate sufficient suitable natural products, particularly products made of more exotic species or unique stone, (19) the effects of weather conditions, natural disasters, or other unexpected events, including public health crises that may disrupt our operations, (20) our inability to maintain sufficient levels of cash flow or liquidity to fund our expanding business and service our existing indebtedness, (21) restrictions imposed by our indebtedness on our current and future operations, including risks related to our variable rate debt, (22) any allegations, investigations, lawsuits, or violations of laws and regulations applicable to us, our products, or our suppliers, (23) our inability to adequately protect the privacy and security of information related to our customers, us, our associates, our suppliers, and other third parties, (24) any material disruption in our information systems, including our website, (25) new or changing laws or regulations, including tax laws and trade policies and regulations, (26) any failure to protect our intellectual property rights or disputes regarding our intellectual property or the intellectual property of third parties, (27) the impact of any future strategic transactions, and (28) our ability to manage risks related to corporate social responsibility. Additional information concerning these and other factors are described in “Forward-Looking Statements,” Item 1, “Business,” Item 1A, “Risk Factors,” and Item 1C "Cybersecurity" of Part I and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 9A, “Controls and Procedures” of Part II of the Company’s Annual Report for fiscal 2023 filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2024 (the “Annual Report”) and elsewhere in the Annual Report, and those described in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 27, 2024 (the “10-Q”) and elsewhere in the 10-Q, and those described in the Company’s other filings with the SEC.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The forward-looking statements contained in this release or the associated webcast/conference call speak only as of the date hereof. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company’s forward-looking statements occurs, the Company’s business, financial condition, and operating results may vary materially from those expressed in the Company’s forward-looking statements. Except as required by applicable law, the Company does not plan to publicly update or revise any forward-looking statements contained herein or in the associated webcast/conference call, whether as a result of any new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801314106/en/

Investor Contacts:

Wayne Hood

Senior Vice President of Investor Relations

678-505-4415

wayne.hood@flooranddecor.com

or

Matt McConnell

Senior Manager of Investor Relations

770-257-1374

matthew.mcconnell@flooranddecor.com

Source: Floor & Decor Holdings, Inc.

FAQ

What were Floor & Decor's net sales for Q2 2024?

Floor & Decor reported net sales of $1,133.1 million for Q2 2024, a 0.2% decrease from Q2 2023.

How did Floor & Decor's comparable store sales perform in Q2 2024?

Comparable store sales decreased by 9.0% in Q2 2024.

What was Floor & Decor's diluted EPS for Q2 2024?

Diluted EPS for Q2 2024 was $0.52, down from $0.66 in the same period last year.

How many new warehouse stores did Floor & Decor open in Q2 2024?

Floor & Decor opened five new warehouse stores in Q2 2024.

What is Floor & Decor's updated net sales guidance for fiscal year 2024?

Floor & Decor's updated net sales guidance for fiscal year 2024 is approximately $4,400 million to $4,490 million.

What is the expected range for Floor & Decor's diluted EPS for fiscal year 2024?

Floor & Decor expects diluted EPS to be between $1.55 and $1.75 for fiscal year 2024.

How many new warehouse stores does Floor & Decor plan to open in 2024?

Floor & Decor plans to open 30 new warehouse stores in 2024.