Floor & Decor(US:FND)2021-02-26 03:21Financial Data and Key Metrics Changes - Fiscal 2020 Q4 total sales increased by 37.3% to $723.7 million from $527 million in Q4 2019 [10] - Adjusted EBITDA for Q4 increased by 65.9% to $97.6 million from $58.8 million in Q4 2019 [12] - Q4 diluted earnings per share rose by 80.8% to $0.47 from $0.26 in Q4 2019 [12] - Fiscal 2020 Q4 GAAP net income increased by 61.7% to $57.1 million from $35.3 million in Q4 2019 [61] - Fiscal 2020 Q4 non-GAAP adjusted net income increased by 86% to $50.2 million from $27 million in Q4 2019 [62] Business Line Data and Key Metrics Changes - Five new warehouse stores opened in Q4, bringing the total to 133 [14] - Comparable store sales increased by 21.6% in Q4, with a strong growth in customer transactions of 23.1% [11][19] - E-commerce sales in Q4 increased by 93.7%, accounting for 15.9% of total sales [24] Market Data and Key Metrics Changes - Strong sales growth observed across all nine geographic regions [11] - Year-to-date Q1 2021 comparable store sales increased approximately 24% despite severe weather impacting 20% of the store base [21] Company Strategy and Development Direction - Focus on new store growth with plans to open 27 new warehouse stores in fiscal 2021, a 20.3% increase from 2020 [16] - Continued investment in e-commerce and customer experience enhancements, including a new mobile app feature for contactless pickup [27] - Expansion of the Pro Premier Rewards program, with a 22% increase in enrollment in fiscal 2020 [31] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about sustained economic recovery and robust sales growth into 2021 [69] - Acknowledgment of elevated business risks due to COVID-19, with no specific annual sales and earnings guidance provided [70] - Anticipation of cost pressures in the second half of 2021 due to tariffs and increased freight costs [85] Other Important Information - The company ended fiscal 2020 with no net debt and the strongest liquidity position in its history [13] - Capital expenditures for fiscal 2021 are expected to be approximately $440 million to $460 million, reflecting an increase in new store openings [74] Q&A Session Summary Question: Can you talk about the puts and takes of gross margin in 2021? - Management expects moderately better gross margins in the first half of 2021 but anticipates cost pressures in the second half due to tariffs and increased transportation costs [83][85] Question: How much do you think you left on the table due to severe weather impacts? - Management indicated that approximately 20% of sales were impacted by severe weather, suggesting potential for recovery in sales [88] Question: What is the pipeline for pro customers? - Management reported a four- to six-week backlog for professional customers, indicating strong demand and engagement [92] Question: How is the real estate pipeline evolving? - Management expressed confidence in the real estate pipeline, noting favorable opportunities and lower rent costs for new stores [99][100] Question: How should we expect inventory levels to build over the year? - Management acknowledged challenges in maintaining inventory levels but emphasized the breadth of product assortments to mitigate stockouts [101][103]