Financial Performance - Net sales for Q3 fiscal 2025 were $1,179.5 million, a 5.5% increase from $1,117.9 million in Q3 fiscal 2024[6] - Diluted EPS for Q3 fiscal 2025 was $0.53, a 10.4% increase from $0.48 in the same period last year[2] - Operating income for Q3 fiscal 2025 was $72.0 million, an 8.6% increase from $66.3 million in Q3 fiscal 2024[6] - Net income for Q3 fiscal 2025 was $57.3 million, a 10.8% increase from $51.7 million in Q3 fiscal 2024[6] - Net income for the thirty-nine weeks ended September 25, 2025, was $169,316 thousand, compared to $158,388 thousand for the same period in 2024, reflecting an increase of about 6.5%[21] - Adjusted EBITDA for Q3 fiscal 2025 was $138.8 million, a 4.4% increase from $132.9 million in Q3 fiscal 2024[6] - Adjusted EBITDA for the thirty-nine weeks ended September 25, 2025, reached $418,738 thousand, up from $392,752 thousand in the prior year, indicating a growth of approximately 6.6%[22] Store Expansion - The company opened five new warehouse stores in Q3 fiscal 2025, bringing the total to 262 stores[2] - The company plans to open 20 new warehouse stores in fiscal 2025[11] Sales Expectations - Comparable store sales decreased by 1.2% in Q3 fiscal 2025[6] - The company anticipates comparable store sales to decline by approximately 2.0% to 1.0% for the fiscal year[11] Assets and Liabilities - Total assets increased to $5,520,755 thousand as of September 25, 2025, up from $5,050,478 thousand on December 26, 2024, representing a growth of approximately 9.3%[19] - Total current liabilities slightly increased to $1,255,161 thousand as of September 25, 2025, compared to $1,244,192 thousand on December 26, 2024, showing a marginal increase of about 0.9%[19] - Fixed assets, net, increased to $1,853,156 thousand as of September 25, 2025, compared to $1,786,587 thousand on December 26, 2024, reflecting a growth of about 3.7%[19] - The company’s retained earnings rose to $1,791,589 thousand as of September 25, 2025, up from $1,622,273 thousand at the end of the previous year, indicating an increase of approximately 10.4%[19] - The company experienced a decrease in inventories, net, to $1,164,161 thousand as of September 25, 2025, from $1,132,599 thousand on December 26, 2024, a decrease of about 2.8%[19] Cash Flow - Cash and cash equivalents at the end of the period were $204,484 thousand, an increase from $180,771 thousand at the end of the same period last year, marking a rise of about 13.1%[21] - The company reported a net cash provided by operating activities of $257,768 thousand for the thirty-nine weeks ended September 25, 2025, down from $501,768 thousand in the previous year, a decrease of approximately 48.7%[21] Future Outlook - For the fiscal year ending December 25, 2025, the company expects net sales of approximately $4,660 million to $4,710 million[11] - The company anticipates continued growth and expansion, with plans to manage new store growth and address potential challenges in the market[24]

Market Overview - U.S. stock futures advanced on Friday following positive moves on Thursday, with major benchmark indices showing higher futures [1] - The 10-year Treasury bond yielded 4.01%, while the two-year bond was at 3.49%, indicating market expectations for a Federal Reserve interest rate cut in October with a 98.9% likelihood [2] Futures Performance - Dow Jones increased by 0.04%, S&P 500 by 0.23%, Nasdaq 100 by 0.41%, and Russell 2000 by 0.27% [3] - The SPDR S&P 500 ETF Trust (SPY) rose 0.32% to $673.89, and Invesco QQQ Trust ETF (QQQ) advanced 0.53% to $613.81 in premarket trading [3] Company Highlights - **Intel Corp.**: Jumped 8.44% in premarket after reporting Q3 revenue of $13.65 billion, exceeding estimates of $13.14 billion, and earnings of 23 cents per share, beating estimates by one cent [5] - **Ford Motor Co.**: Rose 2.51% after reporting quarterly earnings of 45 cents per share, surpassing the estimate of 36 cents, and revenue of $47.18 billion, above the $43.07 billion estimate [6] - **Deckers Outdoor Corp.**: Dropped 10.90% despite better-than-expected financial results due to disappointing full-year sales guidance [6] - **Plug Power Inc.**: Advanced 4.51% after announcing a milestone deployment of its hydrogen fuel cell systems at Floor & Decor Holdings' distribution center [6] - **Procter & Gamble Co.**: Shares increased by 0.39% ahead of its earnings report, with analysts expecting earnings of $1.90 per share on revenue of $22.17 billion [6] Sector Insights - The AI boom is creating significant opportunities in sectors beyond Technology, particularly in Industrials and Utilities, which are essential for building data centers and upgrading the power grid [8][9] - An estimated $3 will be spent on supporting infrastructure for every $1 spent on AI, indicating a long-term secular trend in infrastructure investment [10]

Core Insights - Floor & Decor has opened a new warehouse location in Murfreesboro, Tennessee, expanding its reach in the hard-surface flooring market [1][3][10] - The company operates over 250 warehouse-format stores and five design studios across 38 states, offering a wide range of flooring products at competitive prices [2][10] Company Expansion - The new warehouse store features a team of approximately 35 full-time and 15 part-time associates, led by Chief Executive Merchant Jeneva Hurst [1] - The grand opening is celebrated with a ribbon-cutting ceremony on October 9, 2025, in collaboration with the Rutherford County Chamber of Commerce [3] Community Engagement - Floor & Decor is hosting a PRO Block Party on October 11, 2025, to engage local professionals, offering prizes and opportunities to learn about the company's services [5][6] - The store will also conduct a $5,000 Floor Makeover Sweepstakes as part of its grand opening festivities, running until November 25, 2025 [7] Product Offering - The company provides a comprehensive suite of services and a rewards program tailored for professionals in the construction and renovation industries [4] - Floor & Decor's product assortment includes tile, wood, laminate, vinyl, and natural stone flooring, along with installation materials and decorative accessories [2][10]

Core Insights - Floor & Decor has opened a new warehouse location in Winston-Salem, North Carolina, enhancing its retail footprint in the hard-surface flooring market [1] Company Summary - The new warehouse store and design center is located at 3925 Oxford Station Way, Winston-Salem, NC, 27103 [1] - The store is staffed by approximately 35 full-time and 15 part-time associates [1] - Selena Sykes serves as the Chief Executive Merchant for the new location [1] Industry Summary - Floor & Decor is recognized as a leading high-growth retailer specializing in hard-surface flooring for both homeowners and professionals [1]

Core Insights - Floor & Decor has opened a new warehouse location in North Scottsdale, enhancing its retail footprint in the hard-surface flooring market [1] - The new store features a design center and employs approximately 25 full-time and 10 part-time associates, indicating a commitment to local employment [1] - Timothy Cheston has been appointed as the Chief Executive Merchant for the new location, suggesting a strategic leadership focus [1] Company Overview - Floor & Decor is recognized as a leading high-growth retailer specializing in hard-surface flooring for both homeowners and professionals [1] - The company operates more than 2 locations, reflecting its expansive growth strategy in the retail sector [1]

Core Insights - Home Depot and Floor & Decor are significant players in the Retail - Home Furnishings industry, with Home Depot being the largest home improvement retailer globally, while Floor & Decor specializes in hard-surface flooring [1][2]. Home Depot Overview - Home Depot has a market capitalization of approximately $409 billion and operates over 2,300 stores, offering a wide range of building materials, tools, appliances, and décor products [1]. - For fiscal 2025, Home Depot anticipates total sales growth of about 2.8%, comparable sales growth of roughly 1%, and an adjusted operating margin of 13.4% [3]. - In Q2, Home Depot's sales increased by 4.9% year-over-year to $45.3 billion, with 1% growth in overall comparable sales [4]. - The company is focusing on digital transformation, with online comparable sales rising about 12% in the quarter, enhancing customer satisfaction and engagement [5]. - The professional customer segment is a major growth driver, with significant spending increases observed among Pro customers utilizing trade credit facilities [6]. Floor & Decor Overview - Floor & Decor has a market capitalization of around $8.8 billion and operates over 250 warehouse-format stores, focusing on the hard-surface flooring market [2]. - In Q2, Floor & Decor reported a 7.1% year-over-year increase in net sales and an 11.5% rise in earnings per share, aided by margin expansion [9]. - The company plans to open 20 new warehouse stores in fiscal 2025 and at least another 20 in 2026, contributing to revenue and market share growth [10]. - Floor & Decor is benefiting from high-margin verticals, particularly design services and commercial projects, with design-driven sales growing rapidly [11]. - Management forecasts fiscal 2025 revenues between $4.66 billion and $4.75 billion, reflecting 5-7% year-over-year growth [12]. Comparative Performance - Over the past six months, Home Depot shares have increased by 13.9%, while Floor & Decor shares have decreased by 1.2%, contrasting with the overall industry growth of 12.5% [20]. - Home Depot's forward P/E ratio is 25.86, while Floor & Decor's is 39.17, indicating differing valuations [21]. - Home Depot's scale, diversified offerings, and digital capabilities provide resilience against economic fluctuations, while Floor & Decor faces challenges from a weak housing market and discretionary spending pressures [22].

Core Insights - Montaka Global Investments released its second-quarter 2025 investor letter, emphasizing a long-term sustainable compounding strategy for its portfolio [1] - The S&P 500 experienced significant volatility, initially dropping due to Trump's tariff policy but later rebounding nearly 25%, presenting potential investment opportunities [1] - Montaka's portfolio is highly concentrated, with the top 10 investments making up 76% of the total [1] Company Focus: Floor & Decor Holdings, Inc. (NYSE:FND) - Floor & Decor Holdings, Inc. is highlighted as a multi-channel specialty retailer of hard surface flooring and related accessories [2] - The stock's one-month return was -0.67%, and it has lost 30.83% of its value over the past 52 weeks, closing at $81.98 per share with a market capitalization of $8.829 billion on September 18, 2025 [2] - Sales for Floor & Decor in the second quarter grew by 7.1% to $1.214 billion [4] Investment Sentiment - Floor & Decor Holdings, Inc. is not among the 30 most popular stocks among hedge funds, with 46 hedge fund portfolios holding the stock at the end of the second quarter, an increase from 44 in the previous quarter [4] - While the potential of Floor & Decor as an investment is acknowledged, the company believes certain AI stocks may offer greater upside potential with less downside risk [4]

Group 1 - Madison Mid Cap Fund's Class Y returned 5.2% in Q2 2025, underperforming the Russell Midcap Index which increased by 8.5% [1] - The fund's top five holdings were highlighted, indicating its best picks for 2025 [1] Group 2 - Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer of hard surface flooring, with a one-month return of 0.48% and a 52-week loss of 30.37% [2] - As of September 18, 2025, Floor & Decor's stock closed at $83.37, with a market capitalization of $8.978 billion [2] - The Madison Mid Cap Fund increased its holdings in Floor & Decor during Q2 2025, despite declining investor sentiment in housing-related stocks, maintaining a positive long-term earnings outlook for the company [3] - Floor & Decor's sales grew by 7.1% to $1.214 billion in Q2 2025, with 46 hedge fund portfolios holding the stock, an increase from 44 in the previous quarter [3]

Core Points - Floor & Decor is celebrating its sixth annual Pro Appreciation Month in September, featuring free training events and giveaways to honor construction and flooring professionals [1][2] - The company emphasizes the importance of professionals in the industry, highlighting their skills and contributions to the business [2][4] Training and Educational Offerings - This year's virtual training series includes four new webinars offered in both English and Spanish, aimed at enhancing skills and providing time-saving solutions [2] - The webinars are scheduled for September 3, 10, 17, and 24, covering topics such as XL Porcelain Slabs, Curbless Showers, Nail-Down Wood Flooring, and Time-Saving Tile Tips [5] Giveaways and Rewards - Throughout September, professionals can redeem PRO Premier Rewards points for Floor & Decor gift cards, enhancing the value of their completed projects [3] - Major giveaways include a chance to win a new Mercedes-Benz Sprinter Van and in-store prizes such as a DeWalt Grabo Lifter Kit valued at $369 [5] Company Overview - Floor & Decor operates 257 warehouse-format stores and five design studios across 38 states as of June 26, 2025, specializing in hard surface flooring and related accessories [4] - The company was founded in 2000 and is headquartered in Atlanta, Georgia, offering a wide range of flooring options at everyday low prices [4]

Core Insights - Floor & Decor has opened a new warehouse location in the Antelope Valley region, specifically at 44765 Valley Central Way in Lancaster [1] - The new facility includes a warehouse store and design center, employing approximately 23 full-time and 10 part-time associates [1] - April Barrera has been appointed as the Chief Executive Merchant for the new location [1]