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Sep 28, 2023

Floor & Decor Q3 2023 Earnings Report

Floor & Decor's third quarter results reflected resilience amidst economic challenges, with a focus on growth strategies and customer engagement.

Key Takeaways

Floor & Decor reported a 0.9% increase in net sales to $1,107.8 million for the third quarter of fiscal 2023. Despite a 9.3% decrease in comparable store sales, the company achieved diluted earnings per share of $0.61. Five new warehouse stores were opened during the quarter, contributing to a total of 207 warehouse stores and five design studios.

Net sales increased by 0.9% to $1,107.8 million compared to the third quarter of fiscal 2022.

Comparable store sales decreased by 9.3%.

Diluted earnings per share were reported at $0.61.

Five new warehouse stores were opened, with one closure, bringing the total to 207 warehouse stores and five design studios.

Total Revenue
$1.11B
Previous year: $1.1B
+0.9%
EPS
$0.61
Previous year: $0.7
-12.9%
Comparable Store Sales Growth
-9.3%
Previous year: 11.6%
-180.2%
Warehouse Format Stores
207
Previous year: 178
+16.3%
Gross Profit
$467M
Previous year: $407M
+14.8%
Cash and Equivalents
$61.6M
Previous year: $7.69M
+701.7%
Free Cash Flow
$87.8M
Total Assets
$4.64B
Previous year: $4.24B
+9.3%

Floor & Decor

Floor & Decor

Forward Guidance

The company anticipates net sales between approximately $4,345 million and $4,385 million, comparable store sales to decline by approximately (8.5)% to (7.8)%, and diluted EPS between approximately $2.14 and $2.24 for the fiscal year ending December 28, 2023.

Positive Outlook

  • Net sales of approximately $4,345 million to $4,385 million
  • Adjusted EBITDA* of approximately $535 million to $550 million
  • Open 32 new warehouse stores
  • Diluted EPS of approximately $2.14 to $2.24
  • Tax rate of approximately 21.5%

Challenges Ahead

  • Comparable store sales of approximately (8.5)% to (7.8)%
  • Depreciation and amortization expense of approximately $200 million
  • Interest expense, net of approximately $11.5 million
  • Diluted weighted average shares outstanding of approximately 108 million shares
  • Capital expenditures of approximately $550 million to $575 million