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Floor & Decor Q3 sales slightly miss estimates amid challenging demand environment

By Reuters News


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.)

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