Floor & Decor Holdings, Inc. — Third Quarter Fiscal 2026 Earnings Summary

Financial Performance:

• Net sales for the thirteen weeks ended September 24, 2026, were $1,214.6 million, a 3.0% increase from $1,179.5 million in the prior year period.
• Net sales for the thirty-nine weeks ended September 24, 2026, were $3,617.1 million, a 1.8% increase from $3,554.4 million in the prior year period.
• Comparable store sales decreased 1.4% for the quarter and 2.4% for the year-to-date period.
• Operating income for the quarter was $78.0 million, an 8.3% increase from $72.0 million, with an operating margin of 6.4% (up 30 basis points).
• Operating income for the year-to-date period was $254.4 million, a 16.6% increase from $218.1 million, with an operating margin of 7.0% (up 90 basis points).
• Net income for the quarter was $64.8 million, a 13.2% increase from $57.3 million.
• Net income for the year-to-date period was $200.4 million, an 18.4% increase from $169.3 million.
• Diluted EPS for the quarter was $0.61, a 15.1% increase from $0.53.
• Diluted EPS for the year-to-date period was $1.86, a 19.2% increase from $1.56.
• Adjusted EBITDA for the quarter was $149.1 million, a 7.4% increase from $138.8 million.
• Adjusted EBITDA for the year-to-date period was $422.5 million, a 0.9% increase from $418.7 million.
• Gross margin for the year-to-date period was 45.4%, an increase of 170 basis points from 43.7% in the prior year period.
• Adjusted gross margin for the year-to-date period was 43.8%, an increase of 10 basis points from 43.7% in the prior year period.
• Cash and cash equivalents were $392.5 million as of September 24, 2026, compared to $249.3 million as of December 25, 2025.
• Net cash provided by operating activities for the thirty-nine weeks ended September 24, 2026, was $485.3 million, compared to $257.8 million in the prior year period.
• Net cash used in investing activities for the thirty-nine weeks ended September 24, 2026, was $187.9 million.
• Net cash used in financing activities for the thirty-nine weeks ended September 24, 2026, was $154.2 million.
• Deferred revenue was $14.2 million as of September 24, 2026, compared to $10.7 million as of December 25, 2025.
• Total liabilities were $3,231.2 million as of September 24, 2026, compared to $3,060.5 million as of December 25, 2025.
• Term loan balance was $193.5 million as of September 24, 2026, compared to $193.6 million as of December 25, 2025.

Guidance and Future Outlook:

• Fiscal 2026 is expected to include 53 weeks of operating results.
• Full-year net sales guidance is $4,765 million to $4,835 million.
• The 53rd week is expected to contribute approximately $65 million to net sales.
• Full-year comparable store sales guidance is a decrease of 3.5% to 2.0%.
• Full-year diluted EPS guidance is $2.19 to $2.29.
• The 53rd week is expected to contribute approximately $0.08 to diluted EPS.
• Full-year adjusted diluted EPS guidance is $1.88 to $1.98.
• The 53rd week is expected to contribute approximately $0.08 to adjusted diluted EPS.
• Full-year adjusted EBITDA guidance is $535 million to $550 million.
• The 53rd week is expected to contribute approximately $11 million to adjusted EBITDA.
• Full-year depreciation and amortization expense guidance is approximately $250 million.
• Full-year interest (income) expense, net, is expected to be approximately zero.
• Full-year tax rate guidance is 21.5% to 22.0%.
• Full-year diluted weighted average shares outstanding guidance is approximately 107 million.
• The company expects to open 20 new warehouse stores in fiscal 2026.
• Full-year capital expenditures guidance is $235 million to $250 million.

Business Segments and Product Lines:

• The company operates 282 warehouse stores and five design studios as of September 24, 2026.
• One new warehouse store was opened during the third quarter.
• Twelve new warehouse stores were opened during the thirty-nine weeks ended September 24, 2026.
• The company offers a multi-channel assortment of hard surface flooring and related accessories, including laminate, vinyl, tile, wood, and natural stone, as well as commercial surfaces.
• Sales through the Spartan Surfaces, LLC subsidiary are excluded from comparable store sales calculations.

Market and Competitive Landscape:

• Management stated the business model demonstrates resilience in a challenging demand environment.
• Investments in customer experience, Pro offerings, store base expansion, and technology are intended to support market share gains.
• The company faces risks from macroeconomic headwinds, including high interest rates and weak home sales.
• Competition and the ability to manage comparable store sales are cited as key factors.
• Risks include adverse changes in global trade policies, tariffs, and import enforcement actions.

Risks and Challenges:

• Risks include failure to successfully manage new store growth or higher than expected costs.
• Challenges include the inability to lease or acquire new store locations on acceptable terms or renew current leases.
• Risks include failure to maintain brand image, anticipate consumer trends, or manage increased competition.
• Supply chain disruptions, including carrier capacity constraints, port congestion, strikes, and product shortages, pose risks.
• Inventory management risks include obsolescence, shrink, and damage.
• Dependence on foreign imports and supplier performance regarding quality and pricing are significant risks.
• Risks include labor activities, inability to attract/retain staff, and impacts from weather or natural disasters.
• Financial risks include the inability to maintain sufficient cash flow to fund business expansion and service indebtedness.
• Risks include restrictions imposed by indebtedness, including variable rate debt.

Management Commentary and Tone:

• CEO Brad Paulsen expressed pleasure with the third-quarter performance, highlighting 15% earnings per share growth despite a 1.4% decline in comparable store sales.
• Management emphasized the resilience of the business model and the ability to drive profitability in a challenging demand environment.
• Management stated that strong profitability and cash flow generation enable continued investment in initiatives enhancing customer experience, the Pro offering, store expansion, and technology.
• Management noted that financial strength provides flexibility to invest in the future while returning capital to shareholders.

Other Key Points:

• The company returned $91.4 million to shareholders through share repurchases during the quarter.
• Payments for repurchase of common stock for the thirty-nine weeks ended September 24, 2026, were $157.1 million.
• Proceeds from the term loan were $200.0 million, while payments on the term loan were $198.2 million for the thirty-nine weeks ended September 24, 2026.
• A loss on extinguishment of debt of $1.3 million was recorded in the thirty-nine weeks ended September 24, 2026, related to the June 2026 refinancing of term loan and ABL facilities.
• One-time IEEPA tariff refunds of $45.2 million were recognized in the thirty-nine weeks ended September 25, 2025, and are excluded from adjusted measures.
• A conference call to discuss results was scheduled for October 29, 2026, at 5:00 p.m. Eastern Time.
• The company operates across 39 states.