Floor & Decor (FND) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales increased 5.8% to $1.16 billion, driven by new warehouse-format stores, while comparable store sales declined 1.8%.

• Diluted EPS was $0.45, slightly down from $0.46 year-over-year but above the low end of expectations.

• Adjusted EBITDA grew 5.5% to $129.8 million, maintaining an 11.2% margin.

• Four new warehouse stores opened and one closed, ending the quarter with 254 warehouse stores and five design studios.

• The company is proactively managing tariff impacts, diversifying sourcing, and maintaining flexibility in store openings amid economic uncertainty.

Financial highlights

• Gross profit increased 8.1% to $508.2 million, with gross margin improving by 100 bps to 43.8%.

• Operating income rose 8.3% to $64.2 million, with operating margin up to 5.5%.

• Selling and store operating expenses rose 10.3% to $368.8 million, mainly due to new stores.

• Inventory increased 5% to $1.2 billion since December 2024, impacting turnover.

• Ended Q1 with $186.9 million in cash and $949.8 million in liquidity.

Outlook and guidance

• FY 2025 net sales expected between $4.66 billion and $4.8 billion, up 5–8% year-over-year.

• Comparable store sales projected between -2% and +1%.

• Gross margin rate expected at 43.5–43.8%, with some pressure from new distribution centers.

• Adjusted EBITDA guidance: $520–$560 million; diluted EPS: $1.70–$2.00.

• 20 new warehouse stores planned for 2025, down from 25 previously planned.