Floor & Decor Holdings, Inc. Announces Second Quarter Fiscal 2024 Financial Results

Net sales of $1,133.1 million decreased 0.2% from the second quarter of fiscal 2023

Comparable store sales decreased 9.0%

Diluted earnings per share of $0.52

Opened five new warehouse stores

Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the second quarter of fiscal 2024, which ended June 27, 2024.

Tom Taylor, Chief Executive Officer, stated, “We and our industry continue to contend with monetary policy affecting the housing market and repair and remodeling spending, including ongoing soft demand for large project discretionary hard surface flooring. Consequently, our second quarter total and comparable store sales were modestly below our expectations. However, our gross margin rate exceeded our expectations, which, coupled with prudent expense management, helped mitigate most of the impact from weak sales. This dynamic enabled us to report fiscal 2024 second quarter diluted earnings per share of $0.52, compared with $0.66 in the same period last year. We continue to implement strategies designed to grow our market share while working prudently to manage our profitability and maintain a strong balance sheet in this challenging period.”

Mr. Taylor continued, “We opened five new warehouse stores in the second quarter and plan to open 30 in 2024, in line with our prior expectation of 30 to 35 stores. Looking forward to 2025, we believe it is prudent to open approximately 25 new warehouse stores in this muted market environment. These planned openings are long-term growth investments toward our plan to operate 500 warehouse-format stores in the United States over time and should further solidify our market share and position us for strong growth when industry fundamentals improve.”

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

For the Thirteen Weeks Ended June 27, 2024

• Net sales of $1,133.1 million decreased 0.2% from $1,135.9 million in the second quarter of fiscal 2023.
• Comparable store sales decreased 9.0%.
• We opened five new warehouse stores, ending the quarter with 230 warehouse stores and five design studios.
• Operating income of $71.3 million decreased 24.9% from $95.0 million in the second quarter of fiscal 2023. Operating margin of 6.3% decreased 210 basis points from the second quarter of fiscal 2023.
• Net income of $56.7 million decreased 20.7% from $71.5 million in the second quarter of fiscal 2023. Diluted earnings per share (“EPS”) of $0.52 decreased 21.2% from $0.66 in the second quarter of fiscal 2023.
• Adjusted EBITDA* of $136.9 million decreased 10.4% from $152.8 million in the second quarter of fiscal 2023.

For the Twenty-six Weeks Ended June 27, 2024

• Net sales of $2,230.4 million decreased 1.2% from $2,258.0 million in the same period of fiscal 2023.
• Comparable store sales decreased 10.3%.
• We opened nine new warehouse stores.
• Operating income of $130.6 million decreased 31.4% from $190.5 million in the same period of fiscal 2023. Operating margin of 5.9% decreased 250 basis points from the same period of fiscal 2023.
• Net income of $106.7 million decreased 25.4% from $143.0 million in the same period of fiscal 2023. Diluted EPS of $0.99 decreased 25.6% from $1.33 in the same period of fiscal 2023.
• Adjusted EBITDA* of $259.9 million decreased 14.1% from $302.4 million in the same period of fiscal 2023.

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

Updated Outlook for the Fiscal Year Ending December 26, 2024:

• Net sales of approximately $4,400 million to $4,490 million
• Comparable store sales of approximately (8.5)% to (6.5)%
• Diluted EPS of approximately $1.55 to $1.75
• Adjusted EBITDA* of approximately $480 million to $505 million
• Depreciation and amortization expense of approximately $235 million
• Interest expense, net of approximately $6 million to $7 million
• Tax rate of approximately 18%
• Diluted weighted average shares outstanding of approximately 108 million shares
• Open 30 new warehouse stores
• Capital expenditures of approximately $360 million to $410 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

Founded in 2000, Atlanta-based Floor & Decor is a leading high-growth specialty retailer of hard-surface flooring, operating 178 warehouse-format stores and five design studios across 35 states as of September 29, 2022. The stores offer homeowners and professionals the industry’s broadest in-stock selection of tile, natural wood, natural stone, laminate and luxury vinyl plank, under one roof. In addition, Floor & Decor stocks the necessary tools, decorative materials, wall tile, and related accessories for hard-surface flooring projects. Stores carry over 1 million square feet of in-stock flooring and offer free design services, as well as a dedicated pro sales team. The company directly sources products from manufacturers around the globe, which enables it to bring the world’s best and most innovative flooring trends to its customers, at everyday low prices. Floor & Decor has locations nationwide, but each store is bolstered by a local focus that creates a store experience and mix of products that meet the needs of each market served.

Additional company information can be found at www.flooranddecor.com and on Facebook (www.facebook.com/flooranddecor).

Contact:

Helena Clarke – Media Contact – helena.clarke@ageanpr.com – (516) 662-5833

Source: Floor & Decor Holdings, Inc.