Floor & Decor (FND) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 reached $1.18 billion, up 5.5% year-over-year, driven by new store openings despite a 1.2% decline in comparable store sales.

• Diluted EPS for Q3 2025 was $0.53, a 10.4% increase from the prior year, exceeding guidance.

• Net income for Q3 2025 was $57.3 million, up 10.8% year-over-year.

• CEO succession plan announced: Brad Paulsen to become CEO in fiscal 2026, with Tom Taylor transitioning to Executive Chair.

• Twelve new warehouse-format stores and one new distribution center opened year-to-date, bringing the total to 262 stores at quarter-end.

Financial highlights

• Q3 2025 gross margin was 43.4%, down 10 basis points year-over-year due to higher distribution center costs.

• Adjusted EBITDA for Q3 2025 was $138.8 million (11.8% of net sales), up 4.4% year-over-year.

• Q3 2025 operating income was $72.0 million, up 8.6% year-over-year; operating margin rose to 6.1%.

• Cash and cash equivalents at quarter-end were $204.5 million, with $893.5 million in unrestricted liquidity.

• Total debt outstanding was $198.7 million under the Term Loan Facility; no borrowings under the ABL Facility.

Outlook and guidance

• Fiscal 2025 net sales expected between $4.66 billion and $4.71 billion, up 5%-6% year-over-year.

• Comparable store sales projected to decline 1%-2%; average ticket comp up low single digits, transaction comp down low to mid-single digits.

• Diluted EPS guidance is $1.87 to $1.97; Adjusted EBITDA forecasted at $530 million to $545 million.

• Capital expenditures for fiscal 2025 expected at $280 million to $300 million, primarily for new stores, distribution centers, and IT investments.

• 20 new warehouse store openings planned for fiscal 2025.