Floor & Decor Holdings Stock Earnings Reports

Key points for investors: Floor & Decor reported fiscal Q1 2026 diluted EPS of $0.37 (prior year $0.45). Total sales were $1.152 billion, down 0.7% year-over-year; comparable store sales fell 3.7% (month-by-month: +0.4% Jan, -6.9% Feb, -4.0% Mar). Transactions declined ~5.5% (adverse weather estimated to account for 150–200 bps of the decline) while average ticket rose 1.9%. Vinyl/laminate was the primary weakness; tile, insulation materials, decorative accessories and wood outperformed. Connected customers grew 5.4% and represented ~19% of sales. Spartan Surfaces (commercial) started softer than expected but management expects gradual improvement as backlog converts. Gross margin expanded 20 bps to 44.0% (timing benefit from pricing initiatives) despite distribution center and supply-chain headwinds; SG&A rose 2.5% driven by new stores, causing adjusted EBITDA and operating income to decline (adjusted EBITDA $121.5M, margin 10.5%). Balance sheet remains strong with $1,007.2M of unrestricted liquidity (cash + ABL availability) and $198M term loan debt. Management authorized a discretionary $400M share repurchase program (to be funded from cash flows; no incremental debt expected) and plans to begin execution in Q2. The company remains committed to opening 20 new warehouse-format stores in 2026 (average ~55,000 sq ft), is optimizing new-store costs (average store cost now ~$7.5–8.0M vs $11.7M in 2023), continuing ERP rollouts, and plans a revamped Pro loyalty program targeted for Q1 2027. Fiscal 2026 guidance (includes a 53rd week): sales $4.770B–$4.990B (+1.8% to +6.5%), comps flat to -4%, gross margin ~43.6%–43.8%, SG&A ~38% of sales, adjusted EBITDA $545M–$580M, diluted EPS $1.83–$2.08. Management emphasized disciplined capital allocation, expense management, and focus on gaining market share even in a softer housing/demand environment.