Latest news with #FloorAndDecor
Yahoo
4 days ago
- Business
- Yahoo
What Makes Floor & Decor Holdings (FND) an Investment Bet?
Kovitz Investment Group Partners, LLC, an investment management company, released its 'Kovitz Core Equity Strategy' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the strategy returned 7.9% compared to the S&P 500's 10.9% return. Equity markets saw notable volatility after the President's "Liberation Day" tariff announcement on April 2nd. The S&P 500 dropped 11% initially but later rallied 25% in the quarter after the tariffs were postponed by 90 days on April 9th. Additionally, you can review the fund's top 5 holdings to see its best picks for 2025. In its second-quarter 2025 investor letter, Kovitz Core Equity Strategy highlighted stocks such as Floor & Decor Holdings, Inc. (NYSE:FND). Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer of hard surface flooring and related accessories. The one-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was -1.11%, and its shares lost 14.43% of their value over the last 52 weeks. On August 5, 2025, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $82.56 per share, with a market capitalization of $8.891 billion. Kovitz Core Equity Strategy stated the following regarding Floor & Decor Holdings, Inc. (NYSE:FND) in its second quarter 2025 investor letter: "Floor & Decor Holdings, Inc. (NYSE:FND) operates a chain of ~250 warehouse stores focused exclusively on hard surface flooring and wall covering, decorative accessories, and installation materials. The company has curated a global network of ~250 suppliers from which they directly source product, removing multiple steps in the supply chain between end customer and manufacturer at a typical flooring retailer. This direct-sourcing model combined with their large format stores allows Floor & Décor to offer more attractive pricing, a larger assortment of flooring options across a wide range of price points, and keep job-sized inventory in stock, which is especially attractive to professional installers. The current environment is a challenging one for the company as low single-family home turnover and high interest rates have depressed remodel activity while tariffs may increase the price of flooring projects. Impressively, the company has demonstrated significant supply chain flexibility, reducing its China cost-of-goods-sold exposure from 50% in 2018 to an expected low to mid-single-digit percentage by the end of 2025. While the near future is likely to be tumultuous for the company, we believe homeowners will maintain the desire to improve their homes once we emerge from the current economic cycle and that Floor & Décor will have further improved their scale and selection advantages once that occurs." An overhead view of a website displaying the multiple options of flooring products available for purchase. Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of the first quarter, which was 34 in the previous quarter. Floor & Decor Holdings, Inc.'s (NYSE:FND) sales for the second quarter grew 7.1% to $1.214 billion. While we acknowledge the potential of Floor & Decor Holdings, Inc. (NYSE:FND) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Floor & Decor Holdings, Inc. (NYSE:FND) and shared the list of best stocks to buy according to Abdiel Capital Advisors. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
31-07-2025
- Business
- Yahoo
Floor And Decor's (NYSE:FND) Q2 Earnings Results: Revenue In Line With Expectations
Specialty flooring retailer Floor & Decor (NYSE:FND) met Wall Street's revenue expectations in Q2 CY2025, with sales up 7.1% year on year to $1.21 billion. The company's outlook for the full year was close to analysts' estimates with revenue guided to $4.71 billion at the midpoint. Its GAAP profit of $0.58 per share was in line with analysts' consensus estimates. Is now the time to buy Floor And Decor? Find out in our full research report. Floor And Decor (FND) Q2 CY2025 Highlights: Revenue: $1.21 billion vs analyst estimates of $1.21 billion (7.1% year-on-year growth, in line) EPS (GAAP): $0.58 vs analyst estimates of $0.57 (in line) Adjusted EBITDA: $150.2 million vs analyst estimates of $146.9 million (12.4% margin, 2.2% beat) The company dropped its revenue guidance for the full year to $4.71 billion at the midpoint from $4.73 billion, a 0.5% decrease EPS (GAAP) guidance for the full year is $1.88 at the midpoint, beating analyst estimates by 5% EBITDA guidance for the full year is $535 million at the midpoint, in line with analyst expectations Operating Margin: 6.7%, in line with the same quarter last year Free Cash Flow was -$9.99 million, down from $80.04 million in the same quarter last year Locations: 257 at quarter end, up from 230 in the same quarter last year Same-Store Sales were flat year on year (-9% in the same quarter last year) Market Capitalization: $8.43 billion Tom Taylor, Chief Executive Officer, stated, '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. Our second quarter comparable store sales increased by 0.4%, marking the first quarterly increase since the fourth quarter of fiscal 2022. 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.' Company Overview Operating large, warehouse-style stores, Floor & Decor (NYSE:FND) is a specialty retailer that specializes in hard flooring surfaces for the home such as tiles, hardwood, stone, and laminates. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $4.6 billion in revenue over the past 12 months, Floor And Decor is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores. As you can see below, Floor And Decor's sales grew at an impressive 16.2% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it opened new stores and expanded its reach. This quarter, Floor And Decor grew its revenue by 7.1% year on year, and its $1.21 billion of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 7.4% over the next 12 months, a deceleration versus the last six years. Despite the slowdown, this projection is healthy and indicates the market is forecasting success for its products. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Store Performance Number of Stores Floor And Decor operated 257 locations in the latest quarter. It has opened new stores at a rapid clip over the last two years, averaging 14.5% annual growth, much faster than the broader consumer retail sector. This gives it a chance to scale into a mid-sized business over time. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. Same-Store Sales The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Floor And Decor's demand has been shrinking over the last two years as its same-store sales have averaged 6% annual declines. This performance is concerning - it shows Floor And Decor artificially boosts its revenue by building new stores. We'd like to see a company's same-store sales rise before it takes on the costly, capital-intensive endeavor of expanding its store base. In the latest quarter, Floor And Decor's year on year same-store sales were flat. This performance was a well-appreciated turnaround from its historical levels, showing the business is improving. Key Takeaways from Floor And Decor's Q2 Results It was encouraging to see Floor And Decor beat analysts' EBITDA expectations this quarter. We were also glad its full-year EBITDA guidance slightly exceeded Wall Street's estimates. Zooming out, we think this was a decent quarter. The stock traded up 2.3% to $78.50 immediately after reporting. Should you buy the stock or not? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
30-07-2025
- Business
- Forbes
Will Q2 Results Move Floor & Decor Stock Up?
POLAND - 2025/02/01: In this photo illustration, the Floor and Decor company logo is seen displayed ... More on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images) Floor & Decor Holdings' stock (NYSE: FND), a specialized retailer of hard surface flooring, is set to announce its fiscal second-quarter earnings on Thursday, July 31, 2025, with analysts predicting earnings of 56 cents per share alongside $1.2 billion in revenue. This would indicate a 6% increase in earnings year-over-year, and a 7% rise in sales compared to the previous year's figures of 53 cents per share and $1.13 billion in revenue. Historically, FND stock has exhibited a tendency to outperform following earnings announcements, having increased 60% of the time, with a median rise of 2.3% over one day and a maximum observed increase of 14%. With only 250 locations averaging between 50,000 and 80,000 square feet, Floor & Decor has established a $4.5 billion business. These large, high-volume stores create significant operating leverage—resulting in $301 million in operating profit and $205 million in net income within the past year. The company anticipates a long-term goal of about 500 stores, indicating it aims for high efficiency and high impact in its operations. With an $8.6 billion market cap, investors are already betting on the scalability of this model's profitability as the number of stores increases. For event-driven traders, historical patterns might provide an advantage, whether by positioning in advance of earnings or responding to movements after the release. That said, if you are looking for upside with lower volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and achieved returns exceeding 91% since its inception. See earnings reaction history of all stocks. Historical Odds of Positive Post-Earnings Returns Additional details for observed 5-Day (5D) and 21-Day (21D) returns post earnings are summarized alongside the statistics in the table below. FND 1D, 5D, and 21D Post Earnings Return Correlation Among 1D, 5D, and 21D Historical Returns A relatively less risky strategy (although not effective if the correlation is low) is to analyze the correlation between short-term and medium-term returns post earnings, identify a pair with the highest correlation, and carry out the appropriate trade. For instance, if 1D and 5D reveal the highest correlation, a trader can position themselves 'long' for the next 5 days if the 1D post-earnings return is positive. Below is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and the subsequent 5D returns. FND Correlation Between 1D, 5D, and 21D Historical Returns Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), delivering strong returns for investors.
Yahoo
10-07-2025
- Business
- Yahoo
Reflecting On Home Furnishing and Improvement Retail Stocks' Q1 Earnings: Floor And Decor (NYSE:FND)
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Floor And Decor (NYSE:FND) and the best and worst performers in the home furnishing and improvement retail industry. Home furnishing and improvement retailers understand that 'home is where the heart is' but that a home is only right when it's in livable condition and furnished just right. These stores therefore focus on providing what is needed for both the upkeep of a house as well as what is desired for the aesthetics of a home. Decades ago, it was thought that furniture and home improvement would resist e-commerce because of the logistical challenges of shipping a sofa or lawn mower, but now you can buy both online; so just like other retailers, these stores need to adapt to new realities and consumer behaviors. The 7 home furnishing and improvement retail stocks we track reported a slower Q1. As a group, revenues along with next quarter's revenue guidance were in line with analysts' consensus estimates. Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results. Operating large, warehouse-style stores, Floor & Decor (NYSE:FND) is a specialty retailer that specializes in hard flooring surfaces for the home such as tiles, hardwood, stone, and laminates. Floor And Decor reported revenues of $1.16 billion, up 5.8% year on year. This print was in line with analysts' expectations, but overall, it was a slower quarter for the company with full-year revenue guidance missing analysts' expectations. Tom Taylor, Chief Executive Officer, stated, 'We are pleased to deliver fiscal 2025 first quarter diluted earnings per share of $0.45, compared to $0.46 in the same period last year. This result exceeded the low end of our first quarter earnings expectations, even though comparable store sales were at the lower end of our forecast. These first quarter results are a testament to our focus on what we can control. Despite the macroeconomic and geopolitical uncertainty, we believe we have a proactive, flexible plan that we are implementing and executing. We successfully managed an increase in tariffs in 2018 and 2019 by pursuing strategies to grow our market share and protect our profitability. Today, we intend to employ similar strategies to achieve these goals in 2025 and beyond.' Interestingly, the stock is up 15.5% since reporting and currently trades at $83.49. Read our full report on Floor And Decor here, it's free. Started in 1956 as a store specializing in French cookware, Williams-Sonoma (NYSE:WSM) is a specialty retailer of higher-end kitchenware, home goods, and furniture. Williams-Sonoma reported revenues of $1.73 billion, up 4.2% year on year, outperforming analysts' expectations by 4%. The business had a strong quarter with a decent beat of analysts' EBITDA estimates. Williams-Sonoma delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $173. Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it's free. Known for mattresses that can be adjusted with regards to firmness, Sleep Number (NASDAQ:SNBR) manufactures and sells its own brand of bedding products such as mattresses, bed frames, and pillows. Sleep Number reported revenues of $393.3 million, down 16.4% year on year, falling short of analysts' expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. Sleep Number delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 3.7% since the results and currently trades at $8.08. Read our full analysis of Sleep Number's results here. Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE:HD) is a home improvement retailer that sells everything from tools to building materials to appliances. Home Depot reported revenues of $39.86 billion, up 9.4% year on year. This number surpassed analysts' expectations by 1.6%. However, it was a slower quarter as it logged a miss of analysts' EBITDA estimates and gross margin in line with analysts' estimates. The stock is down 2.1% since reporting and currently trades at $371.04. Read our full, actionable report on Home Depot here, it's free. Formerly known as Restoration Hardware, RH (NYSE:RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor. RH reported revenues of $814 million, up 12% year on year. This result missed analysts' expectations by 0.6%. Aside from that, it was a mixed quarter as it also produced a solid beat of analysts' EPS estimates but a significant miss of analysts' EBITDA estimates. RH pulled off the fastest revenue growth among its peers. The stock is up 14.9% since reporting and currently trades at $203.50. Read our full, actionable report on RH here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
5 Revealing Analyst Questions From Floor And Decor's Q1 Earnings Call
Floor & Decor's first quarter results were met with a positive market reaction, as the company delivered sales and non-GAAP earnings per share in line with Wall Street expectations. Management credited the quarter's performance to disciplined cost control, gross margin improvement from lower supply chain costs, and ongoing market share gains despite industry-wide demand softness. CEO Tom Taylor highlighted that the company's ability to 'grow our market share even as sales and the hard surface flooring industry contract' reflected effective execution of its strategies and a flexible approach to dealing with external volatility. Is now the time to buy FND? Find out in our full research report (it's free). Revenue: $1.16 billion vs analyst estimates of $1.16 billion (5.8% year-on-year growth, in line) Adjusted EPS: $0.45 vs analyst estimates of $0.45 (in line) Adjusted EBITDA: $129.8 million vs analyst estimates of $129.3 million (11.2% margin, in line) The company dropped its revenue guidance for the full year to $4.73 billion at the midpoint from $4.82 billion, a 1.9% decrease EBITDA guidance for the full year is $540 million at the midpoint, below analyst estimates of $549.3 million Operating Margin: 5.5%, in line with the same quarter last year Locations: 254 at quarter end, up from 225 in the same quarter last year Same-Store Sales fell 1.8% year on year (-11.6% in the same quarter last year) Market Capitalization: $8.18 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Seth Sigman (Barclays) asked how tariffs are incorporated into guidance and whether pricing can offset margin risk. CEO Tom Taylor and President Brad Paulsen explained that modest price increases and sourcing diversification should allow the company to maintain margins, though broader economic risks persist. Michael Lasser (UBS) questioned whether guidance sufficiently reflects downside risks from tariffs and potential recession. Taylor responded that the outlook is intentionally cautious and includes scenarios for further sales declines, with contingency plans for cost control if conditions deteriorate. Simeon Gutman (Morgan Stanley) inquired about criteria for further reducing store openings. CFO Bryan Langley said additional cuts would be considered if business trends fall below the low end of guidance, but current store productivity and early Q2 comps do not warrant further reductions. Christopher Horvers (JPMorgan) asked whether improved Q2 trends reflect pull-forward demand due to tariff concerns. Taylor noted a modest sales lift following tariff announcements, but attributed sustained momentum to improved execution, new product rollouts, and better in-stock positions. Steven Zaccone (Citi) probed the company's ability to flex SG&A expenses and maintain gross margin amid guidance cuts. Langley detailed ongoing cost reductions at the store level and highlighted that the gross margin goal is achievable through a mix of supply chain savings, product mix, and price management. In the coming quarters, StockStory analysts will monitor (1) the company's ability to maintain gross margin rates as tariffs take effect and as pricing actions are rolled out, (2) whether comparable store sales stabilize or improve amid macro headwinds, and (3) the success of new store openings and the continued ramp of digital and design services. Developments in housing market activity and tariff policy will remain critical external factors. Floor And Decor currently trades at $75.70, up from $72.31 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
