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Sep 29, 2022

Floor & Decor Q3 2022 Earnings Report

Net sales and comparable store sales increased, with diluted earnings per share also increasing.

Key Takeaways

Floor & Decor Holdings, Inc. reported a strong third quarter with net sales increasing by 25.2% to $1,097.8 million and comparable store sales increasing by 11.6%. Diluted earnings per share increased by 2.9% to $0.71.

Net sales increased 25.2% to $1,097.8 million.

Comparable store sales increased 11.6%.

Diluted earnings per share increased 2.9% to $0.71.

Opened four new warehouse-format stores.

Total Revenue
$1.1B
Previous year: $877M
+25.3%
EPS
$0.7
Previous year: $0.6
+16.7%
Comparable Store Sales Growth
11.6%
Previous year: 10.9%
+6.4%
Warehouse Format Stores
178
Previous year: 153
+16.3%
Gross Profit
$407M
Previous year: $365M
+11.5%
Cash and Equivalents
$7.69M
Previous year: $330M
-97.7%
Total Assets
$4.24B
Previous year: $3.63B
+17.0%

Floor & Decor

Floor & Decor

Forward Guidance

The company provided an updated outlook for the fiscal year ending December 29, 2022, including net sales of approximately $4,250 to $4,285 million and comparable store sales growth of approximately 9% to 10%.

Positive Outlook

  • Net sales of approximately $4,250 to $4,285 million
  • Comparable store sales growth of approximately 9% to 10%
  • Diluted EPS to be in the range of $2.65 to $2.75
  • Adjusted EBITDA in the range of $565 million to $575 million
  • Open 32 new warehouse-format stores and four small design studios

Challenges Ahead

  • Global inflationary pressures on raw materials could cause our vendors to seek further price increases on the products we sell
  • Our failure to successfully anticipate consumer preferences and demand
  • Any disruption in our supply chain, including carrier capacity constraints, higher shipping prices and other supply chain costs or product shortages
  • The inability to staff our stores and distribution centers sufficiently, including for reasons due to the COVID-19 pandemic and other impacts of the COVID-19 pandemic
  • Increases in commodity, material, transportation and energy costs, including the impact such increases could have on the cost of goods sold