Floor & Decor (NYSE:FND) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Floor & Decor beat quarterly estimates: Earnings per share came in at $0.58 versus the $0.56 consensus, while revenue rose 3% year over year to $1.25 billion, topping estimates of $1.23 billion.
• Fiscal 2026 EPS guidance was raised to $2.20-$2.45, although comparable-store sales remain expected to range from flat to down 4% amid ongoing macroeconomic uncertainty.
• Demand for large discretionary flooring projects remains pressured, with comparable-store sales down 2.1% and third-quarter-to-date comps down 2.2%; however, professional sales grew about 4% and represented roughly 55% of total sales.

Floor & Decor (NYSE:FND - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.02, FiscalAI reports. Floor & Decor had a return on equity of 8.38% and a net margin of 4.27%.The firm had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the previous year, the company posted $0.58 earnings per share. The firm's quarterly revenue was up 3.0% on a year-over-year basis. Floor & Decor updated its FY 2026 guidance to 2.200-2.450 EPS.

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

• Second-quarter sales rose 3% to $1.25 billion, while comparable-store sales declined 2.1% but improved sequentially from a 3.7% decline in the first quarter. Adjusted diluted EPS was $0.58, flat year over year and above the company’s expectations.
• Demand for large discretionary flooring projects remains pressured by historically low existing-home sales, affordability challenges and cautious consumers. Third-quarter-to-date comparable sales were down 2.2%, and vinyl flooring faces excess industry supply that could weigh on the category through at least the first half of 2027.
• Professional sales grew approximately 4% and represented about 55% of total sales, supported by strong installation-materials performance and gains in tile and wood. Management also cited improving conversion, higher-value product adoption and better regional trends as evidence that its market-share initiatives are gaining traction.
• The company raised its fiscal 2026 adjusted diluted EPS outlook to $1.88-$2.13 and expects sales of $4.77-$4.99 billion, with the 53rd week contributing approximately $0.08 of adjusted EPS. The guidance still assumes comparable-store sales ranging from flat to down 4%, reflecting continued macroeconomic uncertainty.
• Strong operating cash flow and a refinancing that extended debt maturities supported $65.7 million of share repurchases in the quarter, with $334.3 million remaining under the authorization. Floor & Decor also continued expansion, opening 11 stores in the first half, while online sales penetration increased to 20.3% from 18.6% a year ago.

Floor & Decor Stock Performance

NYSE:FND traded down $0.40 during midday trading on Thursday, reaching $55.37. 3,394,486 shares of the stock traded hands, compared to its average volume of 2,104,532. Floor & Decor has a 12-month low of $42.64 and a 12-month high of $92.40. The business has a 50-day moving average of $53.69 and a two-hundred day moving average of $57.30. The stock has a market capitalization of $5.97 billion, a PE ratio of 30.09, a price-to-earnings-growth ratio of 4.65 and a beta of 1.58.

Insider Buying and Selling at Floor & Decor

In other Floor & Decor news, CEO Bradley Paulsen acquired 5,000 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was purchased at an average price of $50.25 per share, for a total transaction of $251,250.00. Following the acquisition, the chief executive officer owned 85,010 shares in the company, valued at approximately $4,271,752.50. This trade represents a 6.25% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Ersan Sayman sold 15,200 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $48.28, for a total value of $733,856.00. Following the completion of the sale, the executive vice president owned 71,676 shares of the company's stock, valued at approximately $3,460,517.28. This trade represents a 17.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Floor & Decor

Hedge funds have recently modified their holdings of the stock. Morgan Stanley grew its position in Floor & Decor by 10.4% during the 4th quarter. Morgan Stanley now owns 5,120,116 shares of the company's stock worth $311,764,000 after purchasing an additional 484,243 shares during the last quarter. State Street Corp raised its holdings in shares of Floor & Decor by 1.1% in the second quarter. State Street Corp now owns 3,811,571 shares of the company's stock worth $289,527,000 after buying an additional 42,636 shares during the last quarter. Wasatch Advisors LP lifted its stake in shares of Floor & Decor by 19.2% during the second quarter. Wasatch Advisors LP now owns 2,717,183 shares of the company's stock worth $206,397,000 after buying an additional 437,396 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of Floor & Decor by 28.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,947,516 shares of the company's stock valued at $118,586,000 after buying an additional 436,338 shares during the last quarter. Finally, FIL Ltd grew its holdings in shares of Floor & Decor by 193.9% during the fourth quarter. FIL Ltd now owns 1,836,696 shares of the company's stock valued at $111,836,000 after buying an additional 1,211,731 shares during the last quarter.

Trending Headlines about Floor & Decor

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

• Positive Sentiment: Floor & Decor earned $0.58 per share, exceeding analyst estimates of approximately $0.56-$0.57. Revenue reached $1.25 billion, above the roughly $1.23 billion consensus estimate. Floor & Decor Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised or reaffirmed fiscal 2026 EPS guidance at $2.20-$2.45, well above the approximately $1.91 analyst consensus. Full-year revenue guidance of $4.8 billion-$5.0 billion was at least in line with expectations. Floor & Decor Announces Second-Quarter Fiscal 2026 Results
• Neutral Sentiment: Quarterly revenue increased 3.0% year over year, but EPS was unchanged from the prior-year quarter at $0.58. This suggests the earnings beat was favorable, though underlying growth remains relatively measured. Floor & Decor Earnings Report
• Negative Sentiment: The company indicated that demand for larger discretionary home-improvement projects remains challenging. That caution could temper investor enthusiasm despite the quarterly beat and improved earnings outlook. Floor & Decor Announces Second-Quarter Fiscal 2026 Results

Wall Street Analysts Forecast Growth

A number of research analysts have commented on FND shares. Wolfe Research reissued an "underperform" rating and set a $41.00 target price on shares of Floor & Decor in a research report on Tuesday, July 21st. UBS Group cut their price objective on shares of Floor & Decor from $70.00 to $55.00 and set a "neutral" rating on the stock in a report on Friday, May 1st. Zacks Research raised shares of Floor & Decor from a "strong sell" rating to a "hold" rating in a research note on Friday, July 3rd. Citigroup restated a "neutral" rating on shares of Floor & Decor in a report on Thursday, July 16th. Finally, Barclays dropped their target price on Floor & Decor from $77.00 to $63.00 and set an "equal weight" rating on the stock in a research report on Friday, April 24th. Five research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $57.72.

Floor & Decor Company Profile

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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