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

Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the fourth quarter and fiscal year ended December 29, 2022. Tom Taylor, Chief Executive Officer, stated, “We are pleased to deliver better-than-expected fiscal 2022 fourth-quarter earnings and proud to report 14 consecutive years of comparable store sales growth, a significant accomplishment considering current macroeconomic challenges. We continued to grow our market share by remaining agile, focusing on executing our key growth strategies, and continuing to invest in initiatives that further widened our competitive moat. I want to express my deepest appreciation to all our associates and vendor partners for their invaluable contributions to our financial success in 2022. As we move into 2023, we seek to manage our stores in a way that reflects the current economic environment.”

Mr. Taylor continued, “We opened 13 new warehouse-format stores in the fourth quarter of fiscal 2022, achieving our goal of opening 32 warehouses in fiscal 2022. We ended the year operating 191 warehouse stores and six design studios across 36 states and have a presence in the top 25 United States metropolitan statistical areas. We remain on plan to open 32 to 35 warehouse stores in 2023.”

For the Fiscal Quarter Ended December 29, 2022

• Net sales increased 14.6% to $1,048.1 million from $914.3 million in the fourth quarter of fiscal 2021.
• Comparable store sales increased 2.5%.
• We opened 13 new warehouse stores during the fourth quarter of fiscal 2022, ending the quarter with 191 warehouse stores and six design studios.
• Operating income increased 55.1% to $94.7 million from $61.1 million in the fourth quarter of fiscal 2021. Operating margin increased 230 basis points to 9.0%.
• Net income increased 38.8% to $69.2 million compared to $49.9 million in the fourth quarter of fiscal 2021. Diluted EPS was $0.64 compared to $0.46 in the fourth quarter of fiscal 2021, an increase of 39.1%.
• Adjusted net income* increased 46.2% to $68.9 million compared to $47.1 million in the fourth quarter of fiscal 2021. Adjusted diluted EPS* was $0.64 compared to $0.44 in the fourth quarter of fiscal 2021, an increase of 45.5%.
• Adjusted EBITDA* increased 42.0% to $143.1 million compared to $100.8 million in the fourth quarter of fiscal 2021.

For the Fiscal Year Ended December 29, 2022

• Net sales increased 24.2% to $4,264.5 million from $3,433.5 million in fiscal 2021.
• Comparable store sales increased 9.2%.
• We opened 32 new warehouse stores and four design studios and closed one warehouse store.
• Operating income increased 17.0% to $396.8 million from $339.0 million in fiscal 2021. Operating margin decreased 60 basis points to 9.3%.
• Net income increased 5.3% to $298.2 million compared to $283.2 million in fiscal 2021. Diluted EPS was $2.78 compared to $2.64 in fiscal 2021, an increase of 5.3%.
• Adjusted net income* increased 13.1% to $296.8 million compared to $262.4 million in fiscal 2021. Adjusted diluted EPS* was $2.76 compared to $2.44 in fiscal 2021, an increase of 13.1%.
• Adjusted EBITDA* increased 19.0% to $577.1 million compared to $485.1 million in 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.

Fiscal 2023 Guidance

• Net sales of approximately $4,610 million to $4,750 million
• Comparable store sales of approximately (3.0)% to flat
• Diluted EPS to be in the range of $2.55 to $2.85
• Adjusted EBITDA* in the range of $605 million to $650 million
• Depreciation and amortization expense of approximately $190 million
• Interest expense, net of approximately $17 million to $18 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 108 million shares
• Open 32 to 35 new warehouse-format stores
• Capital expenditures in the range of approximately $620 million to $675 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 the full fourth quarter results, click here.

About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer and commercial flooring distributor operating 191 warehouse-format stores and six design studios across 36 states as of December 29, 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 – (404) 796-0611

Source: Floor & Decor Holdings, Inc.