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ATLANTA - Floor & Decor Holdings, Inc. (NYSE:FND) shares surged 8% after the specialty retailer of hard surface flooring reported second-quarter earnings that exceeded analyst expectations, marking its first comparable store sales increase since late 2022.
The company reported diluted earnings per share of $0.58 for the second quarter of fiscal 2025, beating analyst estimates of $0.56 and representing an 11.5% increase from $0.52 in the same period last year. Revenue rose 7.1% to $1.21 billion, in line with consensus estimates, while comparable store sales increased 0.4%, the first quarterly increase since the fourth quarter of fiscal 2022. The positive market reaction reflected investor optimism about the company’s return to positive comparable sales growth.
"We are pleased to report that for the second quarter of fiscal 2025, our diluted earnings per share increased by 11.5% to $0.58, compared to $0.52 in the same period last year, reaching the high end of our expectations," said Tom Taylor, Chief Executive Officer. "We believe our second quarter earnings performance clearly reflects the disciplined execution of our agile growth strategies and the prudent management of expenses and profitability by our associates."
Operating income increased 14.8% to $81.9 million, with operating margin improving by 50 basis points to 6.8%. The company opened three new warehouse stores during the quarter, ending with 257 warehouse stores and five design studios, up 11.7% from 230 stores in the same period last year.
For fiscal year 2025, Floor & Decor updated its guidance, projecting net sales of approximately $4.66 billion to $4.75 billion, with comparable store sales ranging from a 2% decline to flat. The company expects diluted EPS between $1.75 and $2.00 and plans to open 20 new warehouse stores this year.
The retailer maintained its expansion plans despite challenging market conditions, demonstrating confidence in its long-term growth strategy while focusing on expense management to drive profitability.
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