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1. Company Snapshot

1.a. Company Description

Floor & Decor Holdings, Inc.operates as a multi-channel specialty retailer and commercial flooring distributor of hard surface flooring and related accessories.The company's stores offer tile, wood, laminate, vinyl, and natural stone flooring products, as well as decorative and installation accessories.


It serves professional installers, commercial businesses, and do it yourself customers.As of May 5, 2022, the company operated 166 warehouse-format stores and five design studios in 34 states.It also sells products through its Website, FloorandDecor.com.


The company was formerly known as FDO Holdings, Inc.and changed its name to Floor & Decor Holdings, Inc.in April 2017.


Floor & Decor Holdings, Inc.was founded in 2000 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on FND

Floor & Decor Holdings, Inc.'s recent performance was negatively impacted by slowing sales momentum and cyclical headwinds. The company's aggressive store openings led to rising SG&A expenses, compressing net profitability. Institutional investors, including Capital International Investors and Alamar Capital Management LLC, reduced their stakes in the company. Additionally, Park Presidio Capital trimmed its position by $13.94 million. Analysts have a consensus "Hold" rating on the stock, with one sell, thirteen hold, and six buy recommendations. The company's Q4 2025 earnings revealed modest revenue growth.

1.c. Company Highlights

2. Floor & Decor's Q4 Earnings: A Mixed Bag

Floor & Decor delivered fiscal 2025 fourth quarter diluted earnings per share of $0.36, in line with the midpoint of their earnings guidance. The company's fourth quarter sales increased 2% to $1.130 billion, while comparable store sales declined 4.8%. For the full year, sales grew 5.1% to $4.684 billion, and comparable store sales declined 1.8%. The gross margin rate improved by 30 basis points to 43.6%, driven by 5.1% sales growth. SG&A expenses increased by 4% in Q4 and 6.1% in FY, driven by new store openings.

Publication Date: Feb -22

📋 Highlights
  • Full-Year Sales Growth: Revenues rose 5.1% to $4.684 billion, despite a 1.8% decline in comparable store sales.
  • Gross Profit Expansion: Gross profit increased by 2% to $115.7 million, with a 30 basis point margin improvement to 43.6%.
  • 2026 Store Expansion: Plans to open 20 new warehouse-format stores, aiming to reduce cannibalization and boost new store productivity.
  • 2026 Earnings Guidance: Sales projected between $4.88 billion and $5.03 billion, with adjusted EBITDA expected to reach $560 million–$590 million.
  • SG&A Efficiency: SG&A expenses grew 6.1% to $1.7738 billion but deleveraged by 30 basis points to 37.8% of sales for the full year.

Financial Performance

The company's financial performance was marked by a 2% increase in gross profit to $115.7 million. The effective tax rate increased to 24.0% in Q4 and 21.8% in FY, primarily due to a decrease in excess tax benefits related to stock-based compensation awards. The company's net cash provided by operating activities was $381.8 million in FY, and inventory totaled $1.1 billion as of December 25, 2025.

Guidance and Outlook

For FY 2026, the company expects sales to be in the range of $4.880 billion to $5.03 billion, with comps expected to be down 2% to up 1%. Gross margin is expected to be approximately 43.5% to 43.8%, with SG&A as a percentage of sales estimated to be approximately 37.7% to 37.8%. Adjusted EBITDA is expected to be approximately $560 million to $590 million, and diluted earnings per share is estimated to be approximately $1.98 to $2.18.

Valuation

With a P/E Ratio of 35.63 and an EV/EBITDA of 21.27, the market appears to be pricing in significant growth expectations for Floor & Decor. The company's ROE of 8.99% and ROIC of 7.17% suggest a relatively healthy return on equity and invested capital. However, the Net Debt / EBITDA ratio of 6.65 indicates a significant debt burden.

Operational Highlights

Brad Paulsen, the company's CEO, highlighted the importance of improving new store performance, digital experience, and supply chain productivity. The company is focused on getting the core of its business growing again and is committed to delivering meaningful improvement in these areas. The company saw a broad-based improvement in January, with all categories showing year-over-year improvement except for laminate and vinyl.

Cost Management

The company has taken out $67 million in comp store expenses over the last 3 years, with $24.8 million of that coming in the past year. Bryan Langley mentioned that the company has levers in place to optimize the business, with 70% of its fleet able to flex with transactions and only 30% on minimum hours. The company will continue to reduce G&A and start to annualize the benefits from recent moves.

3. NewsRoom

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Home Depot vs. Floor & Decor: Which Home Improvement Stock Is Better?

Mar -25

Source: zacks.com

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Floor & Decor Holdings, Inc. (NYSE:FND) Given Average Rating of “Hold” by Brokerages

Mar -21

Source: defenseworld.net

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Home Improvement Stock Down 40% Gets $14 Million Trim as Growth Slowed Last Quarter

Mar -20

Source: fool.com

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Floor & Decor Announces Grand Opening of Grapevine, Texas Store

Mar -19

Source: businesswire.com

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What's Behind a New $12 Million Investment in a Flooring Chain Stock Down 33% This Past Year?

Mar -16

Source: fool.com

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Floor & Decor Holdings, Inc. $FND Shares Sold by Capital International Investors

Mar -12

Source: defenseworld.net

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This Flooring Stock Has Tumbled 30% in a Year, so Why Did One Investor Just Buy Up $41 Million in Shares?

Mar -12

Source: fool.com

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Floor & Decor: Can It Get Up From The Floor To Deliver On Its Ambition

Mar -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.57%)

6. Segments

Laminate and Vinyl

Expected Growth: 12.5%

Laminate and Vinyl from Floor & Decor Holdings, Inc. achieved 12.5% growth driven by increasing demand for affordable, durable, and water-resistant flooring options. Rising popularity of DIY home renovations, growing awareness of laminate's eco-friendliness, and expanding distribution channels also contributed to this growth.

Tile

Expected Growth: 12.8%

Floor & Decor's 12.8% growth in Tile segment is driven by increasing demand for hard-surface flooring, expansion of product offerings, and strategic store openings. Additionally, the company's focus on private label brands, competitive pricing, and exceptional customer service experience contribute to its market share gain.

Installation Materials and Tools

Expected Growth: 13.2%

Strong demand for home improvement and renovation projects, driven by increasing consumer spending and housing market growth, contributes to the 13.2% growth of Installation Materials and Tools from Floor & Decor Holdings, Inc. Additionally, the company's strategic expansion into new markets and e-commerce platform enhancements also support this growth.

Decorative Accessories and Wall Tile

Expected Growth: 12.2%

The 12.2% growth in Decorative Accessories and Wall Tile from Floor & Decor Holdings, Inc. is driven by increasing consumer spending on home decor, rising demand for DIY home improvement projects, and the company's successful expansion into new markets and e-commerce channels.

Wood

Expected Growth: 11.8%

Floor & Decor's 11.8% growth in wood segment is driven by increasing demand for hardwood flooring, expansion of product offerings, and strategic store openings. Additionally, the company's focus on private label brands, competitive pricing, and strong supply chain management contribute to its growth. Furthermore, the rising trend of home renovation and remodeling also supports the segment's growth.

Natural Stone

Expected Growth: 11.5%

Floor & Decor Holdings, Inc.'s Natural Stone segment growth of 11.5% is driven by increasing demand for premium home decor, rising consumer spending on home renovation, and the company's strategic expansion into new markets. Additionally, the segment benefits from the company's strong supplier relationships, efficient logistics, and competitive pricing, enabling it to capitalize on the growing trend of homeowners seeking high-quality, unique natural stone products.

Other

Expected Growth: 12.0%

Floor & Decor's 12.0% growth driven by increasing demand for home improvement, expansion into new markets, and strategic investments in e-commerce and digital capabilities, enabling omnichannel experiences. Additionally, the company's focus on private label products and competitive pricing strategies contribute to its growth momentum.

Adjacent Categories

Expected Growth: 13.5%

Floor & Decor Holdings, Inc.'s 13.5% growth in Adjacent Categories is driven by increasing demand for home improvement, expansion into new markets, and strategic partnerships. Additionally, the company's focus on private label brands, e-commerce growth, and effective inventory management also contribute to this growth.

7. Detailed Products

Hard Surface Flooring

Floor & Decor offers a wide selection of hard surface flooring products, including hardwood, engineered wood, laminate, luxury vinyl tile (LVT), and porcelain tile.

Tile and Stone

Floor & Decor offers a vast selection of tile and stone products, including ceramic, porcelain, natural stone, and glass tile.

Laminate and Luxury Vinyl Flooring

Floor & Decor offers a wide range of laminate and luxury vinyl flooring products, including waterproof and scratch-resistant options.

Area Rugs and Accessories

Floor & Decor offers a variety of area rugs, mats, and accessories, including rug pads, underlayment, and installation tools.

Installation Materials and Tools

Floor & Decor offers a range of installation materials and tools, including adhesives, underlayment, and fastening systems.

8. Floor & Decor Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Floor & Decor Holdings, Inc. operates in the home improvement industry, where substitutes are limited. However, online shopping platforms and DIY tutorials can be considered substitutes, but their impact is moderate.

Bargaining Power Of Customers

Floor & Decor Holdings, Inc. has a large customer base, but individual customers do not have significant bargaining power. The company's pricing strategy and product offerings are designed to appeal to a broad customer base.

Bargaining Power Of Suppliers

Floor & Decor Holdings, Inc. relies on a diverse supplier base, which reduces dependence on individual suppliers. However, suppliers of specialized products may have some bargaining power.

Threat Of New Entrants

The home improvement industry has high barriers to entry, including significant capital requirements and complex logistics. New entrants would face significant challenges in competing with established players like Floor & Decor Holdings, Inc.

Intensity Of Rivalry

The home improvement industry is highly competitive, with several established players competing for market share. Floor & Decor Holdings, Inc. faces intense competition from companies like Home Depot, Lowe's, and others.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.70%
Debt Cost 3.95%
Equity Weight 54.30%
Equity Cost 13.26%
WACC 9.00%
Leverage 84.17%

11. Quality Control: Floor & Decor Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Floor & Decor

A-Score: 3.5/10

Value: 2.9

Growth: 7.7

Quality: 4.4

Yield: 0.0

Momentum: 1.5

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.47$

Current Price

47.47$

Potential

-0.00%

Expected Cash-Flows