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Jun 29, 2023

Floor & Decor Q2 2023 Earnings Report

Floor & Decor's financial performance reflected resilience amidst economic challenges, with net sales increasing and earnings per share exceeding expectations.

Key Takeaways

Floor & Decor Holdings, Inc. reported a 4.2% increase in net sales to $1,135.9 million for the second quarter of fiscal 2023. Despite a 6.0% decrease in comparable store sales, diluted earnings per share of $0.66 exceeded expectations. The company opened nine new warehouse stores, ending the quarter with 203 warehouse stores and five design studios.

Net sales increased by 4.2% to $1,135.9 million compared to the second quarter of fiscal 2022.

Comparable store sales decreased by 6.0%.

Diluted earnings per share reached $0.66, surpassing expectations.

Nine new warehouse stores were opened, bringing the total to 203 warehouse stores and five design studios.

Total Revenue
$1.14B
Previous year: $1.09B
+4.2%
EPS
$0.66
Previous year: $0.76
-13.2%
Comparable Store Sales Growth
-6%
Previous year: 9.2%
-165.2%
Warehouse Format Stores
203
Previous year: 174
+16.7%
Gross Profit
$480M
Previous year: $436M
+9.9%
Cash and Equivalents
$4.17M
Previous year: $6.18M
-32.5%
Total Assets
$4.48B
Previous year: $4.2B
+6.6%

Floor & Decor

Floor & Decor

Forward Guidance

Floor & Decor provided an outlook for the fiscal year ending December 28, 2023, including net sales of approximately $4,460 million to $4,530 million and diluted EPS of approximately $2.30 to $2.50.

Positive Outlook

  • Net sales of approximately $4,460 million to $4,530 million
  • Diluted EPS of approximately $2.30 to $2.50
  • Adjusted EBITDA of approximately $570 million to $595 million
  • Depreciation and amortization expense of approximately $200 million
  • Open 32 new warehouse stores

Challenges Ahead

  • Comparable store sales of approximately (7.0)% to (5.5)%
  • Interest expense, net of approximately $16 million to $17 million
  • Tax rate of approximately 22%
  • Diluted weighted average shares outstanding of approximately 108 million shares
  • Capital expenditures of approximately $590 million to $630 million