Floor & Decor Holdings, Inc. Announces Second Quarter Fiscal 2022 Financial Results

Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the second quarter of fiscal 2022, which ended June 30, 2022.

Tom Taylor, Chief Executive Officer, stated, “We are pleased to deliver better-than-expected fiscal 2022 second quarter adjusted diluted earnings per share of $0.76 per share. These earnings results are particularly gratifying to us when we consider the previous year’s record sales and profits, the extraordinary inflationary impact of higher global supply chain costs on our results, rising mortgage rates, and ten consecutive months of declining year-over-year existing home sales. We are proud of all of our teams and how they continue to execute our growth strategies and successfully manage our profitability. I thank our associates and vendor partners for their hard work and dedication as we navigate near-term macroeconomic challenges.”

Mr. Taylor continued, “We opened nine new warehouse-format stores in the second quarter of fiscal 2022, including six warehouse stores in new markets. We plan to open eight warehouse-format stores in the third quarter of fiscal 2022. We intend to open 32 new warehouse-format stores in fiscal 2022 and are pleased with the quarterly cadence of warehouse-format store openings.”

Please see “Comparable Store Sales” below for information on how the Company calculates its comparable store sales growth.

For the Thirteen Weeks Ended June 30, 2022

• Net sales increased 26.7% to $1,089.8 million from $860.1 million in the second quarter of fiscal 2021.
• Comparable store sales increased 9.2%.
• We opened nine new warehouse stores and closed one warehouse store during the second quarter of fiscal 2022, ending the quarter with 174 warehouse stores and five design studios.
• Operating income increased 8.0% to $106.4 million from $98.6 million in the second quarter of fiscal 2021. Operating margin decreased 170 basis points to 9.8%.
• Net income decreased 1.3% to $81.8 million compared to $82.9 million in the second quarter of fiscal 2021. Diluted EPS was $0.76 compared to $0.77 in the second quarter of fiscal 2021, a decrease of 1.3%.
• Adjusted net income* increased 3.5% to $81.1 million compared to $78.3 million in the second quarter of fiscal 2021. Adjusted diluted EPS* was $0.76 compared to $0.73 in the second quarter of fiscal 2021, an increase of 4.1%.
• Adjusted EBITDA* increased 9.7% to $150.3 million compared to $137.0 million in the second quarter of fiscal 2021.

For the Twenty-six Weeks Ended June 30, 2022

• Net sales increased 29.0% to $2,118.6 million from $1,642.6 million in the same period of fiscal 2021.
• Comparable store sales increased 11.7%.
• We opened 15 new warehouse stores and three design studios and closed one warehouse store during the twenty-six weeks ended June 30, 2022.
• Operating income increased 3.0% to $200.4 million from $194.5 million in the same period of fiscal 2021. Operating margin decreased 230 basis points to 9.5%.
• Net income decreased 3.7% to $152.8 million compared to $158.7 million in the same period of fiscal 2021. Diluted EPS was $1.42 compared to $1.48 in the same period of fiscal 2021, a decrease of 4.1%.
• Adjusted net income* increased 1.1% to $152.7 million compared to $151.0 million in the same period of fiscal 2021. Adjusted diluted EPS* was $1.42 compared to $1.41 in the same period of fiscal 2021, an increase of 0.7%.
• Adjusted EBITDA* increased 8.3% to $286.1 million compared to $264.1 million in the same period of fiscal 2021.

*Non-GAAP financial measures. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

The COVID-19 Pandemic Impact on Floor & Decor’s Business

We continue to monitor the impact of the COVID-19 pandemic on our associates, customers, business partners, and supply chain. However, given the evolving nature of the pandemic and uncertainty regarding its potential severity and duration, the full financial impact of the COVID-19 pandemic on our business cannot be reasonably estimated at this time. The extent of the impact of the COVID-19 pandemic on our business and financial results will depend on future developments, including the duration of the COVID-19 pandemic, the success of vaccination programs, the spread of COVID-19 within the markets in which we operate, the impact to countries from which we source inventory, fixed assets, and other supplies, the effect of the pandemic on consumer confidence and spending, and actions taken by government entities in response to the pandemic, all of which are highly uncertain.

Updated Outlook for the Fiscal Year Ending December 29, 2022:

• Net sales of approximately $4,290 to $4,330 million
• Comparable store sales growth of approximately 10% to 11%
• Diluted EPS to be in the range of $2.65 to $2.80
• Adjusted EBITDA in the range of $565 million to $580 million
• Depreciation and amortization expense of approximately $153 million
• Interest expense, net of approximately $9.5 million
• Tax rate of approximately 24%, excluding tax benefits resulting from stock option exercises and the vesting of restricted stock and restricted stock units
• Diluted weighted average shares outstanding of approximately 107.5 million shares
• Open 32 new warehouse-format stores and four small design studios
• Capital expenditures in the range of approximately $480 million to $500 million

For the complete press release, click here.

About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer and commercial flooring distributor operating 174 warehouse-format stores and five design studios across 34 states as of the end of the second quarter of fiscal 2022. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate, vinyl, and natural stone along with decorative accessories and wall tile, installation materials, and adjacent categories at everyday low prices. The Company was founded in 2000 and is headquartered in Atlanta, Georgia.

Contact:

Wayne Hood – Vice President of Investor Relations – Wayne.hood@flooranddecor.com – (678) 505-4415

Source: Floor & Decor Holdings, Inc.