Floor & Decor (NYSE:FND) Announces Quarterly Earnings Results

Key Points

• Floor & Decor beat earnings expectations: Quarterly EPS was $0.61, above the $0.57 consensus, while revenue rose 3% to $1.21 billion but fell slightly short of estimates.
• Pro and digital businesses gained momentum: Pro sales growth reached 9% in September, Pro penetration increased to 55%, and online sales penetration reached 20.3%.
• Macro pressures remain a concern: Comparable sales were down approximately 3.8% quarter-to-date, full-year comparable-sales guidance was reduced, and the company plans fewer warehouse openings in 2027 amid weaker demand and margin pressures.

Floor & Decor (NYSE:FND - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.57 by $0.04, FiscalAI reports. Floor & Decor had a net margin of 4.93% and a return on equity of 8.20%. The firm had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.22 billion.

Here are the key takeaways from Floor & Decor's conference call:

• Third-quarter adjusted performance improved: sales rose 3% to $1.21 billion, while diluted EPS increased 15% to $0.61, supported by expense discipline and operational execution.
• The Pro business continued gaining momentum, with Pro sales growth reaching 9% in September and Pro penetration rising to 55% from approximately 50% a year ago. Installation materials grew 10%, while tile sales increased 5% and continued to gain market share.
• Digital initiatives showed measurable progress, with online sales penetration reaching 20.3% and cart conversion improving 380 basis points year over year. The company also expects to launch its Pro Digital Loyalty program nationally in the first quarter of 2027.
• Demand remains pressured by mortgage rates above 7%, weak existing-home sales, higher energy costs and cautious consumer spending. Fourth-quarter-to-date comparable sales were down approximately 3.8%, and full-year comparable sales guidance now calls for a decline of 3.5% to 2.0%.
• Floor & Decor plans to moderate warehouse-store openings to 10–15 in 2027 from 20 in 2026 because of the macroeconomic environment and weaker new-store productivity. Gross margin also faces pressure from elevated diesel costs, the fading benefit of tariff refunds and planned investments in pricing and Pro loyalty.

Floor & Decor Price Performance

Shares of Floor & Decor stock traded up $2.68 on Thursday, hitting $50.23. 4,274,023 shares of the company traded hands, compared to its average volume of 2,733,956. The firm's 50-day simple moving average is $48.08 and its 200 day simple moving average is $55.15. The company has a current ratio of 1.33, a quick ratio of 0.45 and a debt-to-equity ratio of 0.08. The company has a market cap of $5.35 billion, a P/E ratio of 23.36, a P/E/G ratio of 3.88 and a beta of 1.60. Floor & Decor has a 12-month low of $42.64 and a 12-month high of $77.46.

Insider Activity

In related news, insider Thomas V. Taylor sold 218,189 shares of the company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $62.30, for a total value of $13,593,174.70. Following the completion of the transaction, the insider directly owned 229,820 shares in the company, valued at approximately $14,317,786. The trade was a 48.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.80% of the company's stock.

Analysts Set New Price Targets

FND has been the topic of several research analyst reports. Telsey Advisory Group upped their price target on shares of Floor & Decor from $61.00 to $68.00 and gave the stock an "outperform" rating in a report on Friday, July 31st. Stifel Nicolaus lowered Floor & Decor from a "buy" rating to a "hold" rating and dropped their price objective for the company from $75.00 to $52.00 in a research note on Monday. Evercore set a $50.00 target price on Floor & Decor in a research report on Tuesday, October 13th. The Goldman Sachs Group set a $53.00 target price on Floor & Decor in a research note on Saturday, August 1st. Finally, Robert W. Baird set a $67.00 price target on Floor & Decor in a report on Friday, July 31st. Four analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $56.50.

Floor & Decor Company Profile

Floor & Decor Holdings, Inc is a specialty retailer focused on hard-surface flooring and related products. The company offers a broad selection of tile, natural stone, wood, laminate and vinyl flooring, along with installation materials, tools, accessories and home-decor items.

Floor & Decor serves homeowners, professional installers, designers, remodelers and commercial customers through warehouse-format stores, smaller design studios and its e-commerce platform. Its stores are designed to provide a wide product assortment for renovation and construction projects, while also offering services such as design support and product fulfillment.

Founded in 2000 and headquartered in Atlanta, Georgia, Floor & Decor operates primarily in the United States.

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