Floor & Decor Reports Steady Growth Amid Economic Challenges

Floor & Decor Holdings ( (FND) ) has released its Q1 earnings. Here is a breakdown of the information Floor & Decor Holdings presented to its investors.

Floor & Decor Holdings, Inc. is a specialty retailer in the hard surface flooring sector, offering a wide range of flooring products and accessories across its warehouse-format stores and design studios in the United States. In its first quarter of fiscal 2025, Floor & Decor reported net sales of $1,160.7 million, marking a 5.8% increase from the previous year, despite a 1.8% decline in comparable store sales. The company opened four new warehouse stores, bringing its total to 254 warehouse stores and five design studios.

Key financial metrics from the quarter include a diluted EPS of $0.45, slightly down from $0.46 in the same period last year, and an operating income of $64.2 million, an 8.3% increase from the previous year. The company’s adjusted EBITDA rose by 5.5% to $129.8 million. Despite the challenging macroeconomic environment, Floor & Decor managed to exceed the lower end of its earnings expectations, demonstrating resilience and strategic focus.

The company has adjusted its store expansion plans, now aiming to open 20 new stores in fiscal 2025, down from an initial target of 25, as a response to the uncertain economic conditions. This cautious approach reflects the company’s strategy to maintain profitability and market share amidst fluctuating consumer demand and geopolitical uncertainties.

Looking ahead, Floor & Decor projects net sales between $4,660 million and $4,800 million for the fiscal year ending December 25, 2025, with comparable store sales expected to range from a decrease of 2.0% to an increase of 1.0%. The company remains committed to executing its flexible strategies to navigate the current economic landscape and continue its growth trajectory.