Floor & Decor Holdings, Inc. Announces Fourth Quarter and Fiscal 2023 Financial Results

Highlights for the Fourth Quarter of Fiscal 2023:

Net sales of $1,048.1 million were flat compared to the fourth quarter of fiscal 2022

Comparable store sales decreased 9.4%

Diluted earnings per share of $0.34

Opened 14 new warehouse stores

Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the fourth quarter and full year of fiscal 2023, which ended December 28, 2023.

Tom Taylor, Chief Executive Officer, stated, “We are pleased to deliver better-than-expected fiscal 2023 fourth-quarter diluted earnings per share of $0.34, primarily due to comparable store sales that were better than anticipated. We are proud of how our teams are collaborating to successfully execute our sales-driving initiatives, prudently manage expenses without sacrificing customer service, and strategically grow our gross margin rate. We are particularly proud of accomplishing these results when existing home sales are at record lows, and flooring industry sales continue to contract. As we look to 2024, we remain focused on growing our market share by continuing to capitalize on our everyday low prices and value-driven options, trend-right product assortments, in-stock job lot quantities, and the exceptional customer service provided by our store associates.”

Mr. Taylor continued, “We are fortunate that our strong balance sheet and cash flow enable us to invest in new store growth during an industry downturn. We opened 14 new warehouse format stores in the fourth quarter and 31 new warehouse stores in fiscal 2023, ending fiscal 2023 with 221 warehouse format stores and five design studios across 36 states. After the end of our fiscal 2023, we opened a warehouse store in Mansfield, Texas, on December 29, 2023, bringing our calendar warehouse stores to 222. We continue to expect to open 30 to 35 new warehouse stores in fiscal 2024 toward our plan of operating 500 warehouse stores in the United States over time.”

Please see “Comparable Store Sales” below for information on how the Company calculates period-over-period changes in comparable store sales.

For the Fiscal Quarter Ended December 28, 2023

• Net sales of $1,048.1 million were flat compared to the fourth quarter of fiscal 2022.
• Comparable store sales decreased 9.4%.
• We opened 14 new warehouse stores, ending the quarter with 221 warehouse stores and five design studios.
• Operating income of $46.2 million decreased 51.3% from $94.7 million in the fourth quarter of fiscal 2022. Operating margin of 4.4% decreased 460 basis points from the fourth quarter of fiscal 2022.
• Net income of $37.1 million decreased 46.4% from $69.2 million in the fourth quarter of fiscal 2022. Diluted earnings per share (“EPS”) of $0.34 decreased 46.9% from $0.64 in the fourth quarter of fiscal 2022.
• Adjusted EBITDA* of $107.8 million decreased 24.7% from $143.1 million in the fourth quarter of fiscal 2022.

For the Fiscal Year Ended December 28, 2023

• Net sales of $4,413.9 million increased 3.5% from $4,264.5 million in fiscal 2022.
• Comparable store sales decreased 7.1%.
• We opened 31 new warehouse stores and closed one warehouse store.
• Operating income of $321.4 million decreased 19.0% from $396.8 million in fiscal 2022. Operating margin of 7.3% decreased 200 basis points from fiscal 2022.
• Net income of $246.0 million decreased 17.5% from $298.2 million in fiscal 2022. Diluted EPS of $2.28 decreased 18.0% from $2.78 in fiscal 2022.
• Adjusted EBITDA* of $551.1 million decreased 4.5% from $577.1 million in fiscal 2022.

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

Fiscal 2024 Guidance:

• Net sales of approximately $4,600 million to $4,770 million
• Comparable store sales of approximately (5.5)% to (2.0)%
• Diluted EPS of approximately $1.75 to $2.05
• Adjusted EBITDA* of approximately $520 million to $560 million
• Depreciation and amortization expense of approximately $230 million
• Interest expense, net of approximately $12 million to $14 million
• Tax rate of approximately 21% to 22%
• Diluted weighted average shares outstanding of approximately 109 million shares
• Open 30 to 35 new warehouse stores
• Capital expenditures of approximately $400 million to $475 million

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

For full results click here.

About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer and commercial flooring distributor operating 178 warehouse-format stores and five design studios across 35 states at the end of the third 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.