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Floor & Decor shares dip as Q1 earnings fall short of estimates

EditorRachael Rajan
Published 05/02/2024, 05:09 PM
© Reuters.
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ATLANTA - Floor & Decor Holdings, Inc. (NYSE: NYSE:FND) experienced a 2.48% decline in its stock price following the announcement of its first-quarter fiscal 2024 financial results.

Despite posting a higher-than-expected adjusted earnings per share (EPS) of $0.46, which beat the analyst estimate of $0.44, the company reported a significant revenue miss, with actual revenue coming in at $0 compared to the consensus estimate of $1.1 billion.

The first quarter saw net sales decrease by 2.2% to $1,097.3 million from $1,122.1 million in the same period last year. Comparable store sales also saw a substantial decline of 11.6%. The company opened four new warehouse stores, ending the quarter with 225 warehouse stores and five design studios. Operating income fell by 37.9% to $59.3 million, and net income dropped by 30.0% to $50.0 million. The diluted EPS of $0.46 was a decrease of 30.3% from $0.66 in the first quarter of the previous fiscal year.

Tom Taylor, Chief Executive Officer, commented on the results, "We are pleased to report better-than-expected fiscal 2024 first quarter diluted earnings per share of $0.46. We take pride in these first quarter results as they demonstrate how our teams continue to work to strategically grow our gross margin rate and prudently manage expenses without sacrificing customer service amid the near-term uncertain macroeconomic challenges."

Looking ahead, the company provided guidance for the full fiscal year 2024, expecting net sales to be between $4.6 billion and $4.77 billion, with comparable store sales ranging from a decrease of 5.5% to a decrease of 2.0%. The guidance for diluted EPS is set at $1.75 to $2.05. The midpoint of the EPS guidance range, $1.90, is slightly below the analyst consensus of $1.91. The revenue guidance midpoint of $4.685 billion is slightly above the consensus estimate of $4.67 billion.

The company plans to open 30 to 35 new warehouse stores during the fiscal year and anticipates capital expenditures to be between $400 million and $475 million. These growth efforts are part of Floor & Decor's long-term strategy to expand its market presence, as Mr. Taylor highlighted the company's plan to operate 500 warehouse-format stores in the United States over time.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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