Floor & Decor (FND) Goldman Sachs 31st Annual Global Retailing Conference summary

Leadership transition and management outlook

• President Trevor Lang announced his planned departure to pursue personal interests, expressing confidence in the leadership team and succession planning.

• Lang will remain during the transition as the company determines a replacement strategy.

Macroeconomic environment and business impact

• Guidance was adjusted to the lower end of the range due to uncertainty in home sales and flooring demand.

• Mortgage rates in the 5-6% range are seen as beneficial for home sales, with a lag of 1-4 months before impacting business.

• Smaller project sizes are prevalent, with fewer whole-home renovations and more focus on bathrooms and kitchens.

• Higher-end consumers remain resilient, continuing to purchase premium products.

Store performance and growth strategy

• Newer stores opened in 2022-2024 are performing below historical averages due to macro pressures, while mature stores remain profitable.

• Stores in existing markets ramp faster than those in new or smaller markets.

• Store opening pace will slow in 2025, focusing on lower-risk, higher-probability locations, with flexibility to adjust based on market conditions.

• 60-70% of new stores will be in existing markets, with store size and mix similar to previous years.