Floor & Decor (FND) Q4 2024 earnings summary

Executive summary

• 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.

• Q4 diluted EPS was $0.44, including a $0.05 per share net benefit from a litigation settlement; FY24 diluted EPS was $1.90.

• Opened 30 new warehouse format stores in FY24, 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 operating income increased 28.3% to $59.2 million, including a $6.8 million benefit from a litigation settlement.

• Q4 gross profit rose 8.9% with gross margin up 130 bps to 43.5%; FY24 gross margin up 120 bps to 43.3%.

• Q4 adjusted EBITDA increased 11.1% to $119.8 million; FY24 adjusted EBITDA declined 7% to $512.5 million.

• Q4 net income rose 28.1% to $47.5 million; full-year net income fell 16.3% to $205.9 million.

• FY24 capital expenditures were $376.3 million, down from $566.3 million last year.

Outlook and guidance

• FY25 total sales expected between $4.74B–$4.9B, up 6.5%–10% year-over-year.

• Comparable store sales guidance: flat to +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: $540M–$575M; diluted EPS: $1.80–$2.10.

• Plan to open 25 new warehouse format stores and invest $330M–$400M in capital expenditures.