Financial Performance - Net sales for the first quarter of fiscal 2025 were $1,160.7 million, an increase of 5.8% from $1,097.3 million in the first quarter of fiscal 2024[6] - Comparable store sales decreased by 1.8% in the first quarter of fiscal 2025[6] - Diluted earnings per share (EPS) for the first quarter was $0.45, down 2.2% from $0.46 in the same period last year[6] - Operating income increased by 8.3% to $64.2 million, with an operating margin of 5.5%, up 10 basis points from the previous year[6] - Adjusted EBITDA for the first quarter was $129.8 million, reflecting a 5.5% increase from $123.0 million in the first quarter of fiscal 2024[6] - Net income for the thirteen weeks ended March 27, 2025, was $48,878,000, a decrease of 2.3% compared to $50,032,000 for the same period in 2024[21] - EBITDA for the same period was $123,616,000, representing an increase of 7.5% from $115,190,000 in the prior year[22] - Adjusted EBITDA increased to $129,821,000, up 5.8% from $122,998,000 year-over-year[22] - Net cash provided by operating activities was $71,164,000, down 51.8% from $147,510,000 in the previous year[21] - Cash and cash equivalents at the end of the period were $186,930,000, compared to $57,426,000 at the end of the same period last year[21] - Purchases of fixed assets totaled $66,728,000, a decrease from $111,688,000 in the prior year[21] - The company reported a loss on asset impairments and disposals of $32,000, compared to $37,000 in the previous year[21] Future Outlook - The company plans to open 20 new warehouse stores in fiscal 2025, reduced from a prior expectation of 25 new stores[2] - The updated outlook for fiscal year 2025 includes net sales projected between $4,660 million and $4,800 million[11] - Comparable store sales guidance for fiscal year 2025 is expected to range from (2.0)% to 1.0%[11] - Capital expenditures are projected to be approximately $310 million to $360 million for fiscal year 2025[11] Challenges and Risks - The company anticipates challenges in managing new store growth and potential impacts from economic conditions[27] - Future performance may be affected by various risks including supply chain disruptions and changes in consumer preferences[27] - The company is focused on maintaining brand image and managing competition in the market[27]

Core Viewpoint - Floor & Decor Holdings, Inc. is expected to report an increase in revenue for the first quarter of 2025, with a consensus estimate of $1.16 billion, reflecting a 6.1% improvement from the previous year [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter earnings per share is stable at 45 cents, indicating a decline of 2.2% from the same period last year [2] - The company has a trailing four-quarter earnings surprise average of 18.2%, with the last reported quarter exceeding estimates by 50% [2] Key Growth Drivers - The company's disciplined expansion strategy, supply chain agility, strategic investments, and merchandise innovation are expected to enhance market share [2] - A persistent supply-demand imbalance in housing and the increasing median age of owner-occupied homes are driving demand for home upgrades and remodeling, benefiting hard surface flooring and related categories [2] Product and Market Expansion - The launch of new product categories, including a semi-custom cabinet program in 40 warehouse stores and online, is anticipated to be a significant revenue catalyst [3] - By entering adjacent remodeling categories such as cabinets and outdoor products, the company is expanding its share of customer projects beyond flooring [3] Store Expansion Strategy - The disciplined approach to expanding the store footprint is a key driver of top-line growth, focusing on warehouse-format store openings in markets with existing brand awareness [4] - The strategic push to capture a larger share of the professional customer base is gaining traction [4] Sales Performance Concerns - A soft start to the first quarter is noted, with comparable store sales declining 1.7% as of February 20, indicating that momentum from the previous quarter may not have continued [5] - The company has diversified its sourcing away from China, reducing reliance from 50% in 2018 to 18% in 2024, although tariffs remain a challenge [5] Earnings Prediction Model - The current model does not predict a definitive earnings beat for Floor & Decor, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [6][7]

Company Overview - Floor & Decor (FND) shares increased by 11.9% to close at $78.20, following President Trump's announcement to suspend U.S. tariffs for 90 days, which renewed investor optimism [1] - The stock had previously experienced a 22.2% loss over the past four weeks [1] Earnings Expectations - Floor & Decor is expected to report quarterly earnings of $0.45 per share, reflecting a year-over-year decrease of 2.2% [2] - Revenue is projected to be $1.16 billion, representing a 6.1% increase from the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Floor & Decor has remained unchanged over the last 30 days, indicating a lack of upward momentum in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - Floor & Decor is part of the Zacks Retail - Home Furnishings industry, which includes Haverty Furniture (HVT) [3] - Haverty Furniture's consensus EPS estimate is $0.16, showing a year-over-year increase of 14.3%, but it currently has a Zacks Rank of 4 (Sell) [4]

Core Insights - The article discusses the investment perspective on Floor & Decor Holdings (NYSE: FND), emphasizing a hold rating due to expectations of the stock remaining rangebound [1] Group 1: Investment Philosophy - The company adopts a fundamentals-based approach to value investing, focusing on long-term durability and affordability rather than merely low multiples [1] - There is a belief that successful companies can be risky investments if overvalued, highlighting the importance of valuation in investment decisions [1] - The article suggests that in certain situations, the potential for growth may outweigh immediate price concerns [1]

Financial Data and Key Metrics Changes - The company reported diluted earnings of $0.44 per share for Q4 2024, including a net benefit of $6.8 million from a derivative litigation settlement [14] - For the full year 2024, diluted earnings were $1.90 per share, which also included the $0.05 benefit from the settlement [15] - Q4 2024 gross profit rose by 8.9%, with a gross margin rate of 43.5%, while the full-year gross margin rate increased to 43.3% from 42.1% [56] - Selling and store operating expenses increased by 10.1% in Q4 2024, while general and administrative expenses decreased by 5.4% [57][59] - Adjusted EBITDA for Q4 2024 increased by 11.1% to $119.8 million, while full-year adjusted EBITDA declined by 7.0% to $512.5 million [63][65] Business Line Data and Key Metrics Changes - Total sales for Q4 2024 increased by 5.7% year-over-year, while comparable store sales decreased by 0.8%, showing improvement from previous quarters [23][24] - The company opened 10 new warehouse format stores in Q4 2024, totaling 30 new stores for the fiscal year [19] - Spartan Surfaces experienced a 17.9% decline in Q4 sales, primarily due to weakness in the multifamily residential market [46] Market Data and Key Metrics Changes - The company noted that existing home sales rose for the third consecutive month in December 2024, despite elevated mortgage interest rates [24] - The west division showed encouraging comparable store sales trends, with modest growth year-over-year [28] Company Strategy and Development Direction - The company aims to open 25 new warehouse format stores in fiscal 2025, focusing on strategic growth despite industry pressures [20][21] - Investments in innovative merchandise and technology are prioritized to enhance customer experience and drive long-term growth [15][30] - The company is diversifying its supply chain to reduce reliance on China, with the U.S. now being the largest country of manufacture [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth opportunities in hard-surface flooring due to supply and demand imbalances in housing [16] - The company is carefully planning for fiscal 2025 amid geopolitical uncertainties and mixed economic indicators, with total sales expected to range from $4.740 billion to $4.900 billion [68][70] - Management highlighted the importance of existing home sales for driving growth in same-store sales [100] Other Important Information - The company achieved a record high net promoter score in January 2025, reflecting strong customer service [53] - The company plans to continue investing in technology and e-commerce to enhance customer engagement [37] Q&A Session Summary Question: What is driving the slightly weaker performance quarter-to-date? - Management attributed the slowdown to weather impacts, noting that sales typically recover over time [80] Question: How should we think about the incrementality or flow-through to the model? - Management indicated that better-than-expected sales lead to strong flow-through, with expectations of high 30s flow-through if sales exceed projections [84][86] Question: What are the expectations for housing backdrop and its impact on sales? - Management expects a slow recovery in housing, with benefits from immature stores contributing to sales growth [99][100] Question: How will the company manage supply chain costs and pricing in 2025? - The company plans to negotiate with suppliers, diversify sourcing, and adjust prices as necessary to manage costs [128]

Financial Data and Key Metrics Changes - In Q4 2024, diluted earnings per share were reported at $0.44, including a net benefit of $6.8 million from a derivative litigation settlement [14] - For the full year 2024, diluted earnings per share were $1.90, which also included the $0.05 net benefit from the settlement [15] - The gross profit for Q4 2024 rose by 8.9%, with a gross margin rate of 43.5%, while the full-year gross profit grew by 3.8% with a gross margin rate of 43.3% [56] - Selling and store operating expenses increased by 10.1% in Q4 2024, while general and administrative expenses decreased by 5.4% [57][59] Business Line Data and Key Metrics Changes - Total sales in Q4 2024 increased by 5.7% year-over-year, while comparable store sales decreased by 0.8%, showing improvement from previous quarters [23][24] - Spartan Surfaces experienced a 17.9% decline in Q4 sales compared to the previous year, primarily due to weakness in the multifamily residential market [46] Market Data and Key Metrics Changes - The fourth quarter saw a sequential improvement in comparable store sales, with a notable decrease of 0.8% compared to a 7.1% decline for the full year [24] - Existing home sales rose for the third consecutive month in December, indicating a potential positive trend for the housing market [25] Company Strategy and Development Direction - The company plans to open 25 new warehouse format stores in fiscal 2025, continuing its commitment to strategic growth despite industry pressures [20][76] - Investments in innovative merchandise and technology are expected to enhance market share and prepare for future sales growth [15][16] - The company aims to expand its connected customer sales and improve brand awareness through targeted marketing initiatives [36][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth opportunities in hard-surface flooring, driven by an aging housing stock and supply-demand imbalances [16] - The company is cautious about the macroeconomic environment, providing a wide range of potential earnings outcomes for fiscal 2025 [68][70] - Management noted that existing home sales growth could positively impact same-store sales if sustained [100] Other Important Information - The company has diversified its sourcing to reduce reliance on China, with U.S. manufacturing now accounting for approximately 27% of products sold [34] - The company achieved a record high net promoter score in January 2025, reflecting strong customer service and associate training efforts [53] Q&A Session Summary Question: What is driving the slightly weaker performance quarter-to-date? - Management attributed the slowdown to weather impacts affecting store operations, noting that sales typically recover over time [80] Question: How should we think about the incrementality or flow-through to the model? - Management indicated that better-than-expected sales in Q4 resulted in strong flow-through, with expectations for continued improvement if sales increase [82][84] Question: What is the outlook for existing home sales and its impact on the business? - Management expects existing home sales to improve but not return to historical levels, which could benefit same-store sales [100] Question: How will the company manage potential tariff impacts in 2025? - The company plans to negotiate with suppliers, diversify sourcing, and adjust pricing as necessary to manage tariff impacts [128]

Company Performance - Floor & Decor (FND) reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.34 per share a year ago, representing an earnings surprise of 50% [1] - The company posted revenues of $1.11 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.20%, compared to $1.05 billion in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - Floor & Decor shares have declined approximately 4.4% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $1.18 billion, and for the current fiscal year, it is $2 on revenues of $4.88 billion [7] Industry Context - The Retail - Home Furnishings industry, to which Floor & Decor belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Outlook - The fiscal year ended December 26, 2024, includes forward-looking statements regarding future operating results and financial position [18]. - The company does not plan to publicly update forward-looking statements unless required by law [24]. Risk Management - The company anticipates potential risks including economic decline, inflation, and challenges in new store growth [21]. - The management's discussion highlights the need for effective risk management to navigate uncertainties [19]. - Future performance may be affected by unexpected events such as natural disasters or public health crises [21]. - The company acknowledges geopolitical risks and their potential impact on import costs and supply chain [21]. Operational Efficiency - The company emphasizes the importance of managing inventory and supply chain disruptions to maintain operational efficiency [21]. - The company plans to continue monitoring market conditions and adjusting strategies accordingly [20]. Brand and Consumer Focus - There is a focus on maintaining brand image and successfully anticipating consumer preferences to drive demand [21]. Human Resources - The company is committed to attracting and retaining qualified personnel to support its growth strategy [21].

Financial Performance - Net sales for Q4 fiscal 2024 were $1,107.4 million, a 5.7% increase from $1,048.1 million in Q4 fiscal 2023[7] - Operating income for Q4 fiscal 2024 was $59.2 million, up 28.3% from $46.2 million in Q4 fiscal 2023[7] - Net income for Q4 fiscal 2024 increased by 28.1% to $47.5 million from $37.1 million in Q4 fiscal 2023[7] - Diluted earnings per share (EPS) for Q4 fiscal 2024 was $0.44, a 29.4% increase from $0.34 in Q4 fiscal 2023[7] - Adjusted EBITDA for Q4 fiscal 2024 was $119.8 million, an 11.1% increase from $107.8 million in Q4 fiscal 2023[7] - Net income for the fiscal year ended December 26, 2024, was $205,872, a decrease of 16.3% compared to $245,980 for the previous year[22] - Adjusted EBITDA for the fiscal year was $512,504, a decline of 7% from $551,133 in the previous year[23] Store Expansion - The company opened 10 new warehouse stores in Q4 fiscal 2024, bringing the total to 251 stores[3] - The company plans to open 25 new warehouse stores in fiscal 2025[12] Financial Guidance - For fiscal 2025, the company expects net sales between $4,740 million and $4,900 million[12] - Fiscal 2025 guidance includes diluted EPS projected between $1.80 and $2.10[12] Assets and Liabilities - Total assets increased to $5,050,478, up from $4,662,550, representing a growth of 8.3% year-over-year[20] - Total stockholders' equity rose to $2,170,158, an increase of 12.4% from $1,930,990[20] - Cash and cash equivalents at the end of the period increased to $187,669, compared to $34,382 at the end of the previous year[22] - Trade accounts payable increased to $794,855, up 16.9% from $679,265[20] - Total current liabilities rose to $1,244,192, an increase of 8% from $1,152,013[20] Expenses and Challenges - The company reported a depreciation and amortization expense of $232,473, up from $201,869, reflecting a 15.1% increase[22] - The company anticipates challenges in managing new store growth and potential impacts from economic conditions, including inflation and interest rates[28] Investor Relations - Investor Relations contacts include Wayne Hood and Matt McConnell, with direct phone numbers provided for inquiries[30]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Floor & Dcor (FND) , which belongs to the Zacks Retail - Home Furnishings industry, could be a great candidate to consider.When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 9.14%, on average, in the last two quarters.For the most recent quarter, Floor & ...