Floor & Decor Q3 sales slightly miss estimates amid challenging demand environment
Overview
US flooring retailer's Q3 sales rose 3% but slightly missed analyst expectations
Diluted EPS for Q3 rose 15% year-over-year
Company returned $91.4 mln to shareholders via share repurchases
Outlook
Company expects fiscal 2026 net sales of $4.77 bln to $4.84 bln
Floor & Decor forecasts 2026 comparable store sales to decline 3.5% to 2.0%
Company sees 2026 diluted EPS of $2.19 to $2.29
Result Drivers
CHALLENGING DEMAND - Co said 1.4% decline in comparable store sales reflected a challenging demand environment
MARGIN IMPROVEMENT - Operating margin rose 30 basis points to 6.4% as co maintained profitability despite lower comparable sales
STORE EXPANSION - Co opened one new warehouse store during the qtr, ending with 282 warehouse stores
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Miss* | $1.21 bln | $1.22 bln (17 Analysts) |
Q3 EPS | $0.61 | ||
Q3 Net Income | $64.82 mln | ||
Q3 Operating income | $77.98 mln | ||
Q3 Pretax Profit | $78.36 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 15 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the home improvement products & services retailers peer group is "buy."
Wall Street's median 12-month price target for Floor & Decor Holdings, Inc. is $54.00, about 13.6% above its October 28 closing price of $47.55
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 29 three months ago
Reuters Recommended Reads
Oct 28 - Homebuilder Century Communities' Q3 results miss estimates as higher interest rates hurt demand
Oct 28 - Meritage Homes Q3 adjusted EPS falls more than expected as higher mortgage rates hurt orders
Oct 26 - Whirlpool Q3 sales, adjusted EPS miss estimates on weak appliance demand
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)