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

Net sales of $1,117.9 million increased 0.9% from the third quarter of fiscal 2023

Comparable store sales decreased 6.4%

Diluted earnings per share of $0.48

Opened 11 new warehouse stores

Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the third quarter of fiscal 2024, which ended September 26, 2024.

Tom Taylor, Chief Executive Officer, stated, “We are incredibly proud of how our store and store support teams executed our plans and managed costs during a period when demand for large project discretionary home improvement and hard surface flooring spending remained challenging. In the face of these challenges, the hard work and dedication of our associates enabled us to deliver fiscal 2024 third quarter diluted earnings per share of $0.48, which exceeded our expectations. We continue implementing and executing strategies designed to grow our market share while working prudently to manage our profitability and maintain a strong balance sheet in this challenging period. I particularly want to thank our associates affected by the recent hurricanes for their hard work and dedication to their communities. Thanks to their efforts, we quickly reopened our stores to begin serving customers affected by the hurricanes as they began their recovery and rebuilding efforts.”

In the third quarter of fiscal 2024, we opened 11 new warehouse-format stores, including eight openings in fiscal September. As a result, we ended the third quarter operating 241 warehouse-format stores and five design studios compared with 207 warehouse-format stores and five design studios in the same period last year. We plan to open ten warehouse-format stores in the fourth quarter of fiscal 2024 to achieve our 30 new warehouse-format store opening plan in fiscal 2024.

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 September 26, 2024

• Net sales of $1,117.9 million increased 0.9% from $1,107.8 million in the third quarter of fiscal 2023.
• Comparable store sales decreased 6.4%.
• We opened 11 new warehouse stores, ending the quarter with 241 warehouse stores and five design studios.
• Operating income of $66.3 million decreased 21.8% from $84.8 million in the third quarter of fiscal 2023. Operating margin of 5.9% decreased 180 basis points from the third quarter of fiscal 2023.
• Net income of $51.7 million decreased 21.6% from $65.9 million in the third quarter of fiscal 2023. Diluted earnings per share (“EPS”) of $0.48 decreased 21.3% from $0.61 in the third quarter of fiscal 2023.
• Adjusted EBITDA* of $132.9 million decreased 5.7% from $140.9 million in the third quarter of fiscal 2023.

For the Thirty-nine Weeks Ended September 26, 2024

• Net sales of $3,348.4 million decreased 0.5% from $3,365.8 million in the same period of fiscal 2023.
• Comparable store sales decreased 9.0%.
• We opened 20 new warehouse stores.
• Operating income of $197.0 million decreased 28.4% from $275.3 million in the same period of fiscal 2023. Operating margin of 5.9% decreased 230 basis points from the same period of fiscal 2023.
• Net income of $158.4 million decreased 24.2% from $208.9 million in the same period of fiscal 2023. Diluted EPS of $1.46 decreased 24.7% from $1.94 in the same period of fiscal 2023.
• Adjusted EBITDA* of $392.8 million decreased 11.4% from $443.4 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 $4,430 million
• Comparable store sales of approximately (8.5)% to (7.5)%
• Diluted EPS of approximately $1.65 to $1.75
• Adjusted EBITDA* of approximately $490 million to $500 million
• Depreciation and amortization expense of approximately $235 million
• Interest expense, net of approximately $4 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 $390 million

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

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About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer and commercial flooring distributor operating 241 warehouse-format stores and five design studios across 38 states as of September 26, 2024. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate and 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:

Matt McConnell – Media Contact – matthew.mcconnell@flooranddecor.com – (770) 257-1374

Source: Floor & Decor Holdings, Inc.