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Floor & Decor(FND) - 2025 Q2 - Quarterly Results
Floor & DecorFloor & Decor(US:FND)2025-07-31 20:14

Financial Results and Outlook Second Quarter Fiscal 2025 Performance Highlights Floor & Decor reported strong Q2 2025 results, with net sales up 7.1% to $1.21 billion and 0.4% comparable store sales growth Q2 2025 Key Metrics | Metric | Value | Change vs Q2 2024 | | :--- | :--- | :--- | | Net Sales | $1,214.2 million | +7.1% | | Comparable Store Sales | +0.4% | - | | Diluted EPS | $0.58 | +11.5% | - The 0.4% increase in comparable store sales is significant as it represents the first quarterly increase since the fourth quarter of fiscal 2022, indicating a potential turnaround in store performance2 - Store expansion continues with three new stores opened in Q2 2025, bringing the total to 257 stores. The company plans to open a total of 20 new stores in fiscal 20252 Detailed Financial Results For the Thirteen Weeks Ended June 26, 2025 (Q2 2025) Q2 2025 net sales increased 7.1% to $1.21 billion, with operating income up 14.8% and net income growing 11.5% Q2 2025 Financial Summary | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,214.2M | $1,133.1M | +7.1% | | Operating Income | $81.9M | $71.3M | +14.8% | | Operating Margin | 6.8% | 6.3% | +50 bps | | Net Income | $63.2M | $56.7M | +11.5% | | Diluted EPS | $0.58 | $0.52 | +11.5% | | Adjusted EBITDA* | $150.2M | $136.9M | +9.7% | For the Twenty-six Weeks Ended June 26, 2025 (YTD 2025) YTD 2025 net sales grew 6.5% to $2.37 billion, operating income rose 11.9% to $146.1 million, and net income increased 5.0% YTD 2025 Financial Summary | Metric | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,374.9M | $2,230.4M | +6.5% | | Comparable Store Sales | -0.7% | - | - | | Operating Income | $146.1M | $130.6M | +11.9% | | Operating Margin | 6.2% | 5.9% | +30 bps | | Net Income | $112.1M | $106.7M | +5.0% | | Diluted EPS | $1.03 | $0.99 | +4.0% | | Adjusted EBITDA* | $280.0M | $259.9M | +7.7% | Updated Fiscal Year 2025 Outlook FY2025 guidance projects net sales of $4.66-$4.75 billion, comparable store sales from -2.0% to 0.0%, and diluted EPS of $1.75-$2.00 Fiscal Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Net Sales | $4,660M - $4,750M | | Comparable Store Sales | (2.0)% to 0.0% | | Diluted EPS | $1.75 - $2.00 | | Adjusted EBITDA* | $520M - $550M | | New Warehouse Stores | 20 | | Capital Expenditures | $280M - $320M | Consolidated Financial Statements Condensed Consolidated Statements of Income Q2 2025 income statement shows 7.1% net sales growth, gross margin expanded to 43.9%, and operating income increased 14.8% to $81.9 million - Gross margin expanded to 43.9% in Q2 2025 from 43.3% in Q2 2024, driven by a lower rate of growth in cost of sales (6.1%) compared to net sales (7.1%)19 - Pre-opening expenses decreased by 51.8% in Q2 2025 compared to the prior year, contributing to the 14.8% growth in operating income19 Condensed Consolidated Balance Sheets As of June 26, 2025, total assets increased to $5.41 billion, driven by inventories, with total liabilities rising to $3.12 billion Balance Sheet Comparison | Account | June 26, 2025 | Dec 26, 2024 | | :--- | :--- | :--- | | Total Assets | $5,411.2M | $5,050.5M | | Inventories, net | $1,211.4M | $1,132.6M | | Total Liabilities | $3,116.9M | $2,880.3M | | Total Stockholders' Equity | $2,294.3M | $2,170.2M | - Inventories increased by $78.8 million since the end of fiscal 2024, reflecting investment to support sales growth and new store openings20 Condensed Consolidated Statements of Cash Flows H1 2025 net cash from operating activities declined to $155.3 million, primarily due to inventory investment Cash Flow Summary (YTD) | Activity | Twenty-six Weeks Ended June 26, 2025 | Twenty-six Weeks Ended June 27, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $155.3M | $341.5M | | Net cash used in investing activities | ($160.8M) | ($225.6M) | | Net cash used in financing activities | ($5.2M) | ($12.2M) | - The significant year-over-year decrease in operating cash flow was largely driven by changes in working capital, specifically a $78.8 million increase in inventory in H1 2025 versus a $68.9 million decrease in H1 202421 Supplemental Information and Disclosures Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP Net Income to Adjusted EBITDA, showing Q2 2025 Net Income of $63.2 million adjusted to $150.2 million Q2 2025 GAAP to Non-GAAP Reconciliation | Line Item | Amount (in thousands) | | :--- | :--- | | Net income (GAAP) | $63,178 | | Depreciation and amortization | $59,337 | | Interest expense, net | $1,076 | | Income tax expense | $17,640 | | EBITDA | $141,231 | | Stock-based compensation expense | $8,922 | | Adjusted EBITDA | $150,153 | Key Definitions This section defines key performance metrics such as Comparable Store Sales, EBITDA, and Adjusted EBITDA, clarifying their calculation and purpose - A store is included in the comparable store sales calculation on the first day of the thirteenth full fiscal month following its opening14 - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, further adjusted for non-cash stock-based compensation and other items not considered indicative of core operating performance15 Forward-Looking Statements This legal disclaimer highlights that forward-looking statements are subject to significant risks and uncertainties, including economic conditions and competition - The company explicitly states that future results are subject to risks and uncertainties and are not guaranteed2527 - Key risk factors cited include the health of the economy, housing market trends, supply chain performance, competition, and the ability to manage new store growth effectively26