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Floor & Decor Holdings Inc (FND) Q1 2025 Earnings Call Highlights: Navigating Growth Amid ...

In This Article:

  • Diluted Earnings Per Share: $0.45, compared to $0.46 in the same period last year.

  • Total Sales: Increased by 5.8% to $1.161 billion from $1.97 billion in the same period last year.

  • Comparable Store Sales: Decreased by 1.8% from the same period last year.

  • Gross Margin Rate: Increased by 100 basis points to 43.8% from the same period last year.

  • Selling and Store Operating Expenses: Increased by 10.3% to $368.8 million.

  • Adjusted EBITDA: Increased 5.5% to $129.8 million.

  • New Store Openings: Four new warehouse-format stores opened; plan to open 20 new stores in fiscal 2025.

  • Inventory: Increased by 5% to $1.2 billion as of March 27, 2025.

  • Liquidity: $949.8 million of unrestricted liquidity, including $186.9 million in cash and cash equivalents.

  • Fiscal 2025 Sales Guidance: Expected to be in the range of $4,660 million to $4,800 million, an increase of 5% to 8% from fiscal 2024.

  • Fiscal 2025 Capital Expenditures: Planned to be in the range of $310 million to $360 million.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Floor & Decor Holdings Inc (NYSE:FND) reported a 5.8% increase in total sales for the first quarter of fiscal 2025, reaching $1.161 billion.

  • The company achieved a gross margin rate of 43.8%, a 100 basis point increase from the same period last year, primarily due to lower supply chain costs.

  • FND successfully diversified its sourcing, reducing its dependency on China from 18% to mid-single digits by the end of fiscal 2025.

  • The company opened four new warehouse-format stores in the first quarter and plans to open 20 new stores in fiscal 2025, demonstrating continued expansion.

  • Sales to professional customers (PROs) accounted for approximately 50% of total sales, showing strong engagement and growth in this segment.

Negative Points

  • Comparable store sales decreased by 1.8% in the first quarter of fiscal 2025, at the low end of the company's expectations.

  • The company revised its fiscal 2025 earnings guidance due to increased economic uncertainty and potential recession risks.

  • FND reduced its planned new store openings from 25 to 20 for fiscal 2025, reflecting caution amid uncertain macroeconomic conditions.

  • The company's first quarter fiscal 2025 selling and store operating expenses increased by 10.3%, leading to a 130 basis point increase as a percentage of net sales.

  • The effective tax rate for the first quarter increased to 22.0% from 12.8% in the same period last year, impacting net earnings.