Floor & Decor Raises Full-Year Earnings Outlook

The Tip Desk · November 1, 2026 · 4 min read

Diluted EPS was $0.61, up 15.1% from $0.53 a year earlier, as the company lifted fiscal 2026 EPS guidance to $2.19–$2.29.

Floor & Decor Holdings, Inc. (FND), a specialty retailer of hard-surface flooring, reported diluted earnings of $0.61 a share for the thirteen weeks ended September 24, 2026, up 15.1% from $0.53 a year earlier, as net sales rose 3.0% to $1,214.6 million.

Comparable store sales declined 1.4%, a milder drop than the 2.1% decline in the immediately preceding quarter. Net sales growth of 3.0% matched the second quarter’s year-over-year increase. Chief Executive Officer Brad Paulsen said the company delivered 15% earnings-per-share growth despite the comparable-store decline and that the result underscored the resilience of the business model in a challenging demand environment.

Operating income was $78.0 million, up 8.3% from $72.0 million a year earlier, and operating margin was 6.4%, 30 basis points higher. Net income was $64.8 million, up 13.2%. Adjusted EBITDA was $149.1 million, up 7.4% from $138.8 million. Gross profit was $531.3 million, or 43.7% of sales.

The company opened one new warehouse store in the quarter, ending with 282 warehouse stores and five design studios. That pace was slower than five openings in the second quarter. Paulsen said the company is investing through the cycle in the customer experience, its Pro offering, store expansion and technology, and that financial strength supports those investments and ongoing share repurchases. The company returned $91.4 million to shareholders through buybacks in the quarter.

For the thirty-nine weeks ended September 24, 2026, net sales were $3,617.1 million, up 1.8% from $3,554.4 million. Comparable store sales decreased 2.4% over that span. Operating income was $254.4 million, up 16.6%, and operating margin was 7.0%, 90 basis points higher. Net income was $200.4 million, up 18.4%, and diluted EPS was $1.86, up 19.2%. GAAP gross margin for the thirty-nine weeks was 45.4%, 170 basis points above a year earlier, after one-time IEEPA tariff refunds; adjusted gross margin was 43.8%. Adjusted net income was $167.5 million and adjusted diluted EPS was $1.55. Adjusted EBITDA was $422.5 million. The company opened 12 new warehouse stores in the period.

Cash and cash equivalents were $392.5 million at quarter-end. For the thirty-nine weeks, net cash provided by operating activities was $485.3 million. Financing activities included $157.1 million of share-repurchase payments and a $200.0 million term-loan proceeds offset by $198.2 million of term-loan payments.

The company updated its outlook for the fiscal year ending December 31, 2026, which will include 53 weeks. It now expects net sales of approximately $4,765 million to $4,835 million, with the 53rd week contributing about $65 million. Comparable store sales are expected to decline approximately 3.5% to 2.0%. Diluted EPS is expected at approximately $2.19 to $2.29, with the extra week adding about $0.08; adjusted diluted EPS is expected at approximately $1.88 to $1.98. Adjusted EBITDA is expected at approximately $535 million to $550 million. The company plans to open 20 new warehouse stores and spend approximately $235 million to $250 million on capital expenditures.

Net sales and adjusted EBITDA ranges sit below the first-quarter outlook, which had called for net sales of approximately $4,770 million to $4,990 million and adjusted EBITDA of approximately $545 million to $580 million. Diluted EPS guidance rose from approximately $1.83 to $2.08, and comparable-store sales guidance became less negative, from approximately (4.0)% to flat. Capital-expenditure guidance moved to approximately $235 million to $250 million from approximately $250 million to $300 million. Interest (income) expense, net, is now expected at approximately zero, and the tax rate at approximately 21.5% to 22.0%. Diluted weighted average shares outstanding are expected at approximately 107 million.

Effective January 1, 2027, Thomas Taylor will move from executive chair to chair of the board. Lauren Taylor Wolfe is to join as an independent director on February 1, 2027, and lead director Norman Axelrod will not stand for reelection at the 2027 annual meeting.