Core Insights - Floor & Decor reported better-than-expected GAAP results with diluted earnings per share of $0.58 and revenue of $1.21 billion, surpassing consensus estimates [1][5] - The company achieved its first positive same-store sales growth since late 2022, indicating a potential stabilization in performance [1][6] - Management maintains a cautious outlook for fiscal 2025, anticipating challenges in consumer demand and housing [1][11] Financial Performance - Revenue increased by 7.1% year-over-year to $1,214.2 million, exceeding analyst expectations [2][5] - Diluted EPS rose by 11.5% from the prior period, reflecting improved profitability [2][5] - Comparable store sales growth was recorded at 0.4%, marking a return to positive territory [2][6] - Operating income grew to $81.9 million, a 14.8% increase, while Adjusted EBITDA rose by 9.7% to $150.2 million [2][6] Strategic Focus - The company operates as a specialty retailer of hard surface flooring, targeting both professional installers and homeowners [3] - Key strategic pillars include a direct sourcing model, warehouse-format store growth, and competitive pricing [4] - The company sources from over 240 vendors across 26 countries, reducing reliance on Chinese suppliers [9] Operational Developments - Floor & Decor opened three new warehouse-format stores, bringing the total to 257, with plans to add 20 new stores in FY2025 [8] - Management emphasized disciplined cost control, with operating expenses growing at a slower rate than sales [7] - Digital sales accounted for approximately 18.3% of net sales in Q1 FY2025, supported by product innovation [10] Future Guidance - Management provided guidance for FY2025, projecting net sales of $4.66–4.75 billion and diluted EPS between $1.75 and $2.00 [11] - The guidance reflects ongoing universal tariffs and anticipates potential volatility in consumer demand [11][12] - Investors are advised to monitor the company's navigation of supply-chain dynamics and pricing power as market conditions evolve [12]