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Jun 27, 2024
Floor & Decor Q2 2024 Earnings Report
Floor & Decor's financial performance modestly below expectations due to monetary policy affecting the housing market and repair and remodeling spending, but gross margin rate exceeded expectations.
Key Takeaways
Floor & Decor reported a decrease in net sales by 0.2% to $1,133.1 million and a 9.0% decrease in comparable store sales. Diluted earnings per share decreased to $0.52 from $0.66 in the same period last year. The company opened five new warehouse stores and is planning to open approximately 25 new warehouse stores in 2025.
Net sales decreased 0.2% to $1,133.1 million.
Comparable store sales decreased 9.0%.
Operating income decreased 24.9% to $71.3 million.
Diluted earnings per share decreased to $0.52.
Floor & Decor
Floor & Decor
Forward Guidance
The company provided an updated outlook for the fiscal year ending December 26, 2024, including net sales of approximately $4,400 million to $4,490 million and diluted EPS of approximately $1.55 to $1.75.
Positive Outlook
- 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
- Open 30 new warehouse stores
Challenges Ahead
- 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
- 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
- Our inability to enter into leases for additional stores on acceptable terms or renew or replace our current store leases
- Our failure to successfully anticipate and manage trends, consumer preferences, and demand
- Our inability to successfully manage increased competition