Floor & Decor Q4 Earnings Beat Estimates, Sales Increase 2% Y/Y

Floor & Decor Holdings, Inc. FND has posted mixed fourth-quarter fiscal 2025 results, wherein the top line fell short of the Zacks Consensus Estimate, while the bottom line beat the same. Earnings declined year over year, while net sales posted growth.

Floor & Decor delivered a resilient fourth-quarter performance, with results coming in line with management’s expectations. Despite pressure on comparable store sales driven by softer existing home sales activity, the company expanded market share, improved gross margins, navigated tariff-related challenges and continued its store expansion strategy.

Detailed Picture of FND’s Q4 Results

Floor & Decor reported earnings per share (EPS) of 36 cents per share in the quarter, beating the consensus estimate of 35 cents but declining 18.2% from the year-ago quarter’s figure.

Floor & Decor Holdings, Inc. Price, Consensus and EPS Surprise

Floor & Decor Holdings, Inc. price-consensus-eps-surprise-chart | Floor & Decor Holdings, Inc. Quote

Net sales grew 2% year over year to $1,129.7 million but missed the Zacks Consensus Estimate of $1,136 million. Comparable store sales decreased 4.8%, reflecting softer demand tied to weaker existing home sales activity.

Gross margin stood at 43.5%, remaining in line with the year-ago quarter, as favorable product margins and disciplined pricing actions helped offset higher distribution center costs and the early impact of tariffs.

Selling, General and Administrative expenses increased as a percentage of sales, experiencing a deleverage of 80 basis points, reaching 38.9%. This was primarily attributed to new store openings and weaker comparable store sales, partly offset by lower preopening costs, with a modest impact from ongoing ERP implementation expenses.

In the fourth quarter of fiscal 2025, operating income amounted to $51.9 million, marking a 12.3% decline from the $59.2 million recorded in the same period of fiscal 2024. The operating margin of 4.6% contracted 80 basis points (bps) compared with the fourth quarter of fiscal 2024.

Adjusted EBITDA for the fiscal fourth quarter amounted to $119.4 million, marking a 0.3% decrease from the $119.8 million reported in the same period of fiscal 2024.

Financial Updates for FND

Floor & Decor ended fiscal 2025 with cash and cash equivalents of $249.3 million, a term loan of $193.6 million and shareholders' equity of $2.41 billion. In fiscal 2025, the company generated $381.8 million of net cash from operations.

What Does FND Plan for FY26?

For fiscal 2026, Floor & Decor expects net sales in the range of $4.88 billion to $5.03 billion. The company will report a 53-week fiscal year, with the additional week expected to contribute modestly to overall sales and profitability. Comparable store sales are projected to range from a negative 2% to 1% growth. The company plans to open 20 new warehouse-format stores, reinforcing its long-term growth strategy.

Management projects EPS for 2026 in the range of $1.98 to $2.18, supported by disciplined expense management and stable margin performance. Adjusted EBITDA is anticipated to be between $560 million and $590 million, while depreciation and amortization expense is projected at approximately $245 million. 

Capital expenditures are planned between $250 million and $300 million, reflecting continued investments in new stores, existing locations and infrastructure to support long-term growth.

Shares of this Zacks Rank #3 (Hold) company have gained 15% in the past three months compared with the industry’s growth of 14.4%.

FND Stock's Share Performance

Stocks to Consider

We have highlighted three better-ranked stocks, namely FIGS Inc. FIGS, American Eagle Outfitters Inc. AEO and Boot Barn Holdings, Inc. BOOT.

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales indicates growth of 450% and 7.1%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings indicates a decline of 20.7%, while the same for sales implies growth of 2.5% from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 35.1%.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 25.9% and 17.6%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 4.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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