Core Insights - Floor & Decor Holdings, Inc. (FND) reported mixed fourth-quarter fiscal 2025 results, with net sales falling short of estimates while earnings exceeded expectations. Year-over-year earnings declined, but net sales showed growth [1][3]. Financial Performance - Earnings per share (EPS) for the quarter was 36 cents, beating the consensus estimate of 35 cents but down 18.2% from the previous year [3]. - Net sales increased by 2% year-over-year to $1,129.7 million, missing the Zacks Consensus Estimate of $1,136 million [3]. - Comparable store sales decreased by 4.8%, attributed to weaker existing home sales activity [3]. Margin and Expenses - Gross margin remained stable at 43.5%, supported by favorable product margins and disciplined pricing, despite higher distribution costs and early tariff impacts [4]. - Selling, General and Administrative (SG&A) expenses increased as a percentage of sales, reaching 38.9%, primarily due to new store openings and weaker comparable store sales [5]. Operating Income and EBITDA - Operating income for the quarter was $51.9 million, a decline of 12.3% from $59.2 million in the same quarter of fiscal 2024, with an operating margin contraction of 80 basis points to 4.6% [6]. - Adjusted EBITDA for the quarter was $119.4 million, a slight decrease of 0.3% from $119.8 million in the previous year [6]. Financial Position - At the end of fiscal 2025, the company had cash and cash equivalents of $249.3 million, a term loan of $193.6 million, and shareholders' equity of $2.41 billion [7]. - The company generated $381.8 million in net cash from operations during fiscal 2025 [7]. Future Outlook - For fiscal 2026, Floor & Decor expects net sales between $4.88 billion and $5.03 billion, with comparable store sales projected to range from a negative 2% to 1% growth [8]. - The company plans to open 20 new warehouse-format stores as part of its long-term growth strategy [8]. - EPS for 2026 is projected to be between $1.98 and $2.18, with adjusted EBITDA anticipated to be between $560 million and $590 million [9]. Capital Expenditures - Planned capital expenditures for the upcoming year are between $250 million and $300 million, reflecting ongoing investments in new stores and infrastructure [11].