Floor & Decor (FND) Q4 2024 earnings summary

Executive summary

• Achieved better than expected Q4 comparable store sales, earnings flow-through, operating cash flow, and EPS despite industry headwinds.

• Q4 2024 net sales rose 5.7% year-over-year to $1,107.4 million; full-year net sales up 0.9% to $4,455.8 million.

• Reported Q4 diluted EPS of $0.44, including a $0.05 per share benefit from a litigation settlement; full year diluted EPS was $1.90.

• Opened 30 new warehouse format stores in 2024, reaching 251 warehouse stores and 5 Design Studios in 38 states.

• Appointed Brad Paulsen as new President, bringing extensive retail and supply chain experience.

Financial highlights

• Q4 total sales increased 5.7% year-over-year; comparable store sales decreased 0.8%, showing sequential improvement.

• Full year total sales rose 0.9% to $4.456 billion; comparable store sales declined 7.1%.

• Q4 gross profit rose 8.9% with gross margin rate up 130 bps to 43.5%; full year gross margin rate increased 120 bps to 43.3%.

• Q4 adjusted EBITDA increased 11.1% to $119.8 million; full year adjusted EBITDA declined 7% to $512.5 million.

• Ended year with $200.3 million in debt, $187.7 million in cash, and $905.7 million in total liquidity.

Outlook and guidance

• Fiscal 2025 sales expected at $4.74–$4.9 billion, up 6.5%–10% year-over-year.

• Comparable store sales projected flat to up 3%; average ticket comp up low single digits; transaction comp slightly negative to low single digits.

• Gross margin rate expected at 43.4%–43.7%, with 60–70 bps headwind from new distribution centers.

• Adjusted EBITDA guidance: $540–$575 million; diluted EPS: $1.80–$2.10.

• Plan to open 25 new warehouse format stores and close one in 2025; capital expenditures expected at $330–$400 million.