Floor & Decor (NYSE:FND) Announces Earnings Results

Key Points

• Missed Q1 estimates: Floor & Decor reported EPS of $0.37 (vs. $0.42 est.) and revenue of $1.15B (vs. $1.19B est.), with comps down ~3.7%, and updated FY2026 guidance to $1.83–$2.08 EPS and $4.77B–$4.99B in sales amid demand weakness.
• $400 million share repurchase program: The board authorized a $400M buyback funded from cash (no new debt) while continuing growth plans, including roughly 20 new warehouse-format stores in 2026 and a reduced new-store cost target of ~$7.5M–$8M.
• Analyst reaction was mixed-to-cautious: multiple firms cut price targets and the consensus rating is a "Hold" (consensus target ~$60.74), increasing near-term downside risk despite some positive/outsperform views.

Floor & Decor (NYSE:FND - Get Free Report) issued its earnings results on Thursday. The company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.05), Zacks reports. Floor & Decor had a return on equity of 8.99% and a net margin of 4.45%.The firm had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.19 billion. During the same quarter in the previous year, the business posted $0.46 EPS. Floor & Decor's revenue was down .7% compared to the same quarter last year. Floor & Decor updated its FY 2026 guidance to 1.830-2.080 EPS.

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

• The board authorized a $400 million share repurchase program, to be funded from cash (no incremental debt) and executed discretionarily beginning in Q2, signaling management expects attractive valuations and strong cash generation ahead.
• Fiscal Q1 came in below expectations with diluted EPS of $0.37 (vs. $0.45 LY), total sales down 0.7% to $1,152M, comparable store sales down 3.7% (transactions -5.5%) and Q2-to-date comps down ~4.5%, with weather, mortgage rates and consumer softness cited as drivers.
• Updated fiscal 2026 guidance: sales $4.77B–$4.99B (includes ~$65M from a 53rd week), comp stores flat to down 4%, gross margin ~43.6%–43.8%, Adjusted EBITDA $545M–$580M and diluted EPS $1.83–$2.08, reflecting a wider range due to macro/geo-political uncertainty.
• Growth and capital efficiency initiatives remain prioritized — the company is on track to open 20 new warehouse-format stores in 2026 (avg. ~55k sq ft) while lowering average new-store cost to ~$7.5M–$8M (vs. $11.7M in 2023), with early openings performing encouragingly.
• Merchandise dynamics are mixed: vinyl/laminate is under pressure from a shift to sub-$2 price points (company is rolling out value assortments and price-band tests with encouraging elasticity), while pro sales, tile, installation materials and connected-customer sales (up 5.4%, ~19% of sales) remain constructive; Spartan Surfaces' commercial business is soft but quoting/backlog trends show potential improvement.

Floor & Decor Stock Performance

FND stock traded up $2.14 during mid-day trading on Friday, reaching $50.54. The company had a trading volume of 6,977,355 shares, compared to its average volume of 2,754,030. Floor & Decor has a one year low of $46.47 and a one year high of $92.40. The stock has a market capitalization of $5.45 billion, a P/E ratio of 26.32, a P/E/G ratio of 2.85 and a beta of 1.82. The company has a quick ratio of 0.34, a current ratio of 1.33 and a debt-to-equity ratio of 0.08. The stock's 50-day simple moving average is $55.44 and its two-hundred day simple moving average is $62.49.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Morgan Stanley restated a "positive" rating and set a $56.00 price objective on shares of Floor & Decor in a research note on Friday. TD Cowen dropped their target price on shares of Floor & Decor from $60.00 to $48.00 and set a "hold" rating on the stock in a report on Friday. Mizuho reduced their price target on shares of Floor & Decor from $76.00 to $72.00 and set a "neutral" rating on the stock in a research report on Friday, February 20th. Telsey Advisory Group decreased their price target on shares of Floor & Decor from $80.00 to $61.00 and set an "outperform" rating for the company in a report on Friday. Finally, Robert W. Baird set a $63.00 price objective on shares of Floor & Decor in a research note on Friday. Five equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Floor & Decor has an average rating of "Hold" and a consensus target price of $60.74.

Trending Headlines about Floor & Decor

Here are the key news stories impacting Floor & Decor this week:

• Positive Sentiment: Telsey Advisory remains constructive: although it cut its target, Telsey still rates FND "outperform" with a $61 target (meaning material upside from current levels), signaling at least one shop sees recovery potential. Telsey report
• Positive Sentiment: Company describes execution in a challenging demand environment — management framed results as execution against a tough big‑ticket discretionary backdrop, which may reassure investors focused on long‑term rollout/operational execution. Press release
• Neutral Sentiment: Citigroup trimmed its target to $52 and kept a "neutral" stance — modestly different from the market but not a strong sell signal. Citigroup note
• Neutral Sentiment: Full Q1 earnings call transcript and analyst writeups are available for diligence — useful for investors who want management commentary on comps, margin drivers and cadence through FY26. Earnings call transcript
• Negative Sentiment: Q1 missed estimates and outlook trimmed: EPS $0.37 vs. $0.42 est., revenue $1.15B vs. $1.19B est.; comps down ~3.7% and Q1 EPS materially below prior year — the company set FY26 EPS guidance of $1.83–2.08 vs. consensus ~2.06 and revenue guidance at $4.8–5.0B (vs. $5.0B consensus). Those misses and lowered guidance are the primary drivers of near‑term downside. Press release / results
• Negative Sentiment: Multiple analyst cuts and more cautious stances (TD Cowen to $48/hold; Wells Fargo to $50/equal weight) increase near‑term selling pressure and lower the bar for negative revisions. TD Cowen / Benzinga Wells Fargo writeup
• Negative Sentiment: Bear case highlighted: Seeking Alpha warns of persistent comp and earnings pressure, argues FND's premium multiple is at risk and models a possible downside toward ~$37/share if weak comps persist — a reminder of valuation risk if the consumer stays soft. No Turn Here

Institutional Trading of Floor & Decor

Hedge funds have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Floor & Decor by 9.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,833 shares of the company's stock valued at $27,346,000 after buying an additional 30,195 shares during the last quarter. Invesco Ltd. grew its holdings in Floor & Decor by 290.8% in the 2nd quarter. Invesco Ltd. now owns 597,083 shares of the company's stock worth $45,354,000 after buying an additional 444,290 shares in the last quarter. California Public Employees Retirement System increased its position in Floor & Decor by 12.7% in the 2nd quarter. California Public Employees Retirement System now owns 140,132 shares of the company's stock valued at $10,644,000 after acquiring an additional 15,821 shares during the period. State Street Corp increased its position in Floor & Decor by 1.1% in the 2nd quarter. State Street Corp now owns 3,811,571 shares of the company's stock valued at $289,527,000 after acquiring an additional 42,636 shares during the period. Finally, Sei Investments Co. raised its stake in Floor & Decor by 33.9% during the 2nd quarter. Sei Investments Co. now owns 343,573 shares of the company's stock valued at $26,098,000 after acquiring an additional 87,013 shares in the last quarter.

About Floor & Decor

Founded in 2000 and headquartered in Atlanta, Floor & Decor Holdings Inc is a specialty retailer focused on hard surface flooring and related accessories in the United States. The company serves both professional installers and do-it-yourself customers through a growing network of warehouse-format stores and a comprehensive e-commerce platform.

Floor & Decor’s product offering spans ceramic and porcelain tile, engineered and solid hardwood, laminate, luxury vinyl plank and tile, natural stone and a full suite of installation materials such as grout, mortars and underlayment.

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