Floor & Decor Posts Strong Q4 Earnings Beat

Floor & Decor (NYSE:FND) posted better-than-expected fourth-quarter earnings and revenue, reinforcing investor confidence in its growth trajectory despite a slight dip in comparable sales.

For Q4, the specialty flooring retailer reported earnings per share of $0.44, far exceeding analyst expectations of $0.25. Revenue reached $1.11 billion, surpassing the $1.08 billion forecast and marking a 5.7% year-over-year increase.

Looking ahead, Floor & Decor provided a fiscal 2025 earnings outlook of $1.80 to $2.10 per share, closely aligning with the $1.98 consensus estimate. The company projects annual revenue between $4.74 billion and $4.9 billion, compared to analyst expectations of $4.86 billion.

Despite reporting a 0.8% decline in comparable store sales for the quarter, Floor & Decor continued its aggressive expansion, opening 10 new warehouse stores in Q4, bringing its total store count to 251 across 38 states.

Analysts at Berenberg Bank increased their price target on Floor & Decor Holdings, Inc. (NYSE:FND) to $153 from $134 following the recent Q3 results, which reflected the company’s ability to provide consumers with a wide range of products in a challenging operating environment.

While investors have remained cautious over margin pressures and a lack of full 2022-year outlook, analysts at Berenberg Bank remain positive on the company, given ongoing industry tailwinds and the company’s continued expansion of new stores and product offerings.

Q3 same-store sales grew 10.9% year-over-year driven by robust demand and an 8.3% year-over-year increase in average sales per customer. However, despite continued same-store sales growth above management’s target, investors have remained cautious over a moderating growth rate. On a two-year CAGR, same-store sales grew 14.1% in Q3 versus 15.1% in Q2.

Given the continued opening of new stores, upselling of products, and growth of the company’s pro-business, Berenberg Bank believes that drivers for future sales growth remain strong.

Analysts at Berenberg Bank increased their price target on Floor & Decor Holdings, Inc. (NYSE:FND) to $153 from $134 following the recent Q3 results, which reflected the company’s ability to provide consumers with a wide range of products in a challenging operating environment.

While investors have remained cautious over margin pressures and a lack of full 2022-year outlook, analysts at Berenberg Bank remain positive on the company, given ongoing industry tailwinds and the company’s continued expansion of new stores and product offerings.

Q3 same-store sales grew 10.9% year-over-year driven by robust demand and an 8.3% year-over-year increase in average sales per customer. However, despite continued same-store sales growth above management’s target, investors have remained cautious over a moderating growth rate. On a two-year CAGR, same-store sales grew 14.1% in Q3 versus 15.1% in Q2.

Given the continued opening of new stores, upselling of products, and growth of the company’s pro-business, Berenberg Bank believes that drivers for future sales growth remain strong.