Floor & Decor Holdings, Inc. (FND): Results of Operations and Financial Condition
Floor & Decor Holdings, Inc. (FND) filed an SEC Form 8-K — Results of Operations and Financial Condition. Floor & Decor Holdings, Inc. Announces Second Quarter Fiscal 2026 Financial Results Net sales of $1,250.3 million increased 3.0% from the second quarter of fiscal 2025 Comparable store sales decreased 2.1% Diluted EPS of $0.89; Adjusted diluted EPS* of $0.58 Opened five new wareh
How this was made
The 30-second read
Why it matters
Traders should focus on the combination of negative comparable store sales (-2.1% in Q2) versus strong operating income (+51.4%) and gross margin (+430 bps), then reconcile that with guidance ranges for net sales, diluted EPS, and adjusted diluted EPS.
Market read
This is a primary earnings-and-guidance disclosure with explicit FY2026 ranges, making it actionable for repricing near-term expectations.
What to watch
Investors may underweight the 53rd-week contribution to FY2026 sales and EPS ranges, which can mechanically support results even if underlying comps stay soft.
Net sales of $1,250.3 million increased 3.0% and comparable store sales decreased 2.1%; diluted EPS was $0.89 and Adjusted diluted EPS was $0.58.
Second-quarter GAAP profitability and gross margin increased sharply, while comparable store sales declined and Adjusted diluted EPS was flat from the second quarter of fiscal 2025.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, thirteen weeks ended June 25, 2026GAAP | $1,250.3 million | – | increased 3.0% |
| Comparable store sales, thirteen weeks ended June 25, 2026other | decreased 2.1% | – | decreased 2.1% |
| Operating income, thirteen weeks ended June 25, 2026GAAP | $124.0 million | – | increased 51.4% |
| Operating margin, thirteen weeks ended June 25, 2026GAAP | 9.9% | – | increased 310 basis points |
| Net income, thirteen weeks ended June 25, 2026GAAP | $95.9 million | – | increased 51.7% |
| Diluted EPS, thirteen weeks ended June 25, 2026GAAP | $0.89 | – | increased 53.4% |
| Gross margin, thirteen weeks ended June 25, 2026GAAP | 48.2% | – | increased 430 basis points |
| Adjusted net income, thirteen weeks ended June 25, 2026non-GAAP | $63.0 million | – | decreased 0.3% |
| Adjusted diluted EPS, thirteen weeks ended June 25, 2026non-GAAP | $0.58 | – | flat |
| Adjusted gross margin, thirteen weeks ended June 25, 2026non-GAAP | 43.7% | – | decreased 20 basis points |
| Adjusted EBITDA, thirteen weeks ended June 25, 2026non-GAAP | $152.0 million | – | increased 1.2% |
| Net sales, twenty-six weeks ended June 25, 2026GAAP | $2,402.5 million | – | increased 1.2% |
| Comparable store sales, twenty-six weeks ended June 25, 2026other | decreased 2.9% | – | decreased 2.9% |
| Operating income, twenty-six weeks ended June 25, 2026GAAP | $176.4 million | – | increased 20.7% |
| Operating margin, twenty-six weeks ended June 25, 2026GAAP | 7.3% | – | increased 110 basis points |
| Net income, twenty-six weeks ended June 25, 2026GAAP | $135.6 million | – | increased 21.0% |
| Diluted EPS, twenty-six weeks ended June 25, 2026GAAP | $1.25 | – | increased 21.4% |
| Gross margin, twenty-six weeks ended June 25, 2026GAAP | 46.2% | – | increased 240 basis points |
| Adjusted net income, twenty-six weeks ended June 25, 2026non-GAAP | $102.7 million | – | decreased 8.3% |
| Adjusted diluted EPS, twenty-six weeks ended June 25, 2026non-GAAP | $0.95 | – | decreased 7.8% |
| Adjusted gross margin, twenty-six weeks ended June 25, 2026non-GAAP | 43.9% | – | increased 10 basis points |
| Adjusted EBITDA, twenty-six weeks ended June 25, 2026non-GAAP | $273.5 million | – | decreased 2.3% |
| Warehouse stores at June 25, 2026other | 281 warehouse stores | – | – |
| Design studios at June 25, 2026other | five design studios | – | – |
fiscal year ending December 31, 2026 outlook
- Revenueapproximately $4,770 million to $4,990 million
- Tax rateapproximately 23%
- NoteThe 53rd week is expected to contribute approximately $65 million to net sales
- NoteComparable store sales of approximately (4.0)% to flat
- NoteDiluted EPS of approximately $2.20 to $2.45
- NoteThe 53rd week is expected to contribute approximately $0.08 to diluted EPS
- NoteAdjusted diluted EPS of approximately $1.88 to $2.13
- NoteThe 53rd week is expected to contribute approximately $0.08 to Adjusted diluted EPS
- NoteAdjusted EBITDA of approximately $550 million to $585 million
- NoteThe 53rd week is expected to contribute approximately $11 million to Adjusted EBITDA
- NoteDepreciation and amortization expense of approximately $250 million
- NoteInterest (income) expense, net of approximately zero
- NoteDiluted weighted average shares outstanding of approximately 107 million shares
- NoteOpen 20 new warehouse stores
- NoteCapital expenditures of approximately $240 million to $275 million
Capital returns
- Returned $65.7 million to shareholders through share repurchases.
What drove it
- Net sales increased 3.0% in the second quarter of fiscal 2026 while comparable store sales decreased 2.1%.
- The Company opened five new warehouse stores during the quarter and 11 new warehouse stores during the twenty-six weeks ended June 25, 2026.
- Management cited resilience of the business model and disciplined execution of its teams.
- Management said comparable store sales improved from a 5.1% decline in April to nearly flat in June.
Concerns
- Demand for larger discretionary home improvement flooring projects remains uneven.
- Comparable store sales decreased 2.1% for the thirteen weeks ended June 25, 2026 and decreased 2.9% for the twenty-six weeks ended June 25, 2026.
- Adjusted diluted EPS was flat for the quarter, while Adjusted diluted EPS decreased 7.8% for the twenty-six-week period.
- Adjusted EBITDA decreased 2.3% for the twenty-six-week period.
What to watch
- Comparable store sales guidance of approximately (4.0)% to flat for fiscal 2026.
- The execution of the plan to open 20 new warehouse stores.
- Capital expenditures of approximately $240 million to $275 million.
- The expected contribution from the 53rd week to net sales, diluted EPS, Adjusted diluted EPS, and Adjusted EBITDA.
Analysis
Floor & Decor reported second-quarter net sales of $1,250.3 million, up 3.0% from $1,214.2 million in the second quarter of fiscal 2025. Comparable store sales decreased 2.1%, indicating that sales growth came alongside a negative comparable-store result. The company opened five new warehouse stores during the quarter and ended it with 281 warehouse stores and five design studios.
GAAP profitability increased substantially. Operating income rose 51.4% to $124.0 million, net income increased 51.7% to $95.9 million, and diluted EPS increased 53.4% to $0.89. GAAP gross margin was 48.2%, up 430 basis points, while operating margin was 9.9%, up 310 basis points. The adjusted measures showed a different comparison: Adjusted net income decreased 0.3% to $63.0 million, Adjusted diluted EPS was flat at $0.58, Adjusted gross margin declined 20 basis points to 43.7%, and Adjusted EBITDA increased 1.2% to $152.0 million.
For the twenty-six weeks ended June 25, 2026, net sales increased 1.2% to $2,402.5 million and comparable store sales decreased 2.9%. GAAP operating income increased 20.7% to $176.4 million, net income increased 21.0% to $135.6 million, and diluted EPS increased 21.4% to $1.25. In contrast, Adjusted net income decreased 8.3% to $102.7 million, Adjusted diluted EPS decreased 7.8% to $0.95, and Adjusted EBITDA decreased 2.3% to $273.5 million.
Management described demand for larger discretionary home improvement flooring projects as uneven, but cited sequential comparable-store-sales improvement from a 5.1% decline in April to nearly flat in June. The company is focused on driving sales, managing expenses, and delivering value to customers. Store expansion remains part of the plan, with 11 warehouse stores opened through the first half and guidance to open 20 new warehouse stores in fiscal 2026.
The updated fiscal 2026 outlook calls for net sales of approximately $4,770 million to $4,990 million, comparable store sales of approximately (4.0)% to flat, and diluted EPS of approximately $2.20 to $2.45. The guide incorporates a 53rd week expected to contribute approximately $65 million to net sales, approximately $0.08 to diluted EPS and Adjusted diluted EPS, and approximately $11 million to Adjusted EBITDA. The company also returned $65.7 million to shareholders through share repurchases and guided capital expenditures of approximately $240 million to $275 million.
Management, verbatim
We are pleased with our second-quarter earnings, which exceeded our expectations and reflected both the resilience of our business model and the disciplined execution of our teams. While demand for larger discretionary home improvement flooring projects remains uneven, we saw sequential improvement throughout the quarter, with comparable store sales improving from a 5.1% decline in April to nearly flat in June. As we turn the page on the first half of 2026, we remain focused on driving sales, managing expenses, and delivering value to our customers. We believe these actions are resonating with customers and position us well when demand conditions normalize.
Brad Paulsen, Chief Executive Officer
Not in the filing
stated, not guessed- Previous-period outlook was not provided, so comparison with prior guidance is unavailable.
- Segment revenue and segment operating results were not reported in the provided filing text.
- Cash balance, debt balance, operating cash flow, free cash flow, and dividends were not reported in the provided filing text.
- Quarter-over-quarter comparisons for the reported metrics were not reported.
- Guidance for gross margin and operating expenses was not reported.
- Prior-year operating-margin percentages were not printed on the operating-margin line.
- Prior-year Adjusted diluted EPS for the thirteen weeks ended June 25, 2026 was not printed as a dollar figure on the Adjusted diluted EPS line.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SEC 8-K Item 2.02 includes Floor & Decor’s Q2 FY2026 financial results for the 13 weeks ended June 25, 2026 and an updated outlook for the fiscal year ending December 31, 2026.
Ticker impact
Floor & Decor reported Q2 FY2026 results and updated FY2026 guidance, including net sales $4,770m to $4,990m and diluted EPS $2.20 to $2.45.
Near-term volatility likely around whether investors view margin expansion as durable versus demand softness signaled by negative comps.
The filing provides both GAAP and non-GAAP EPS, gross margin expansion, and explicit FY2026 ranges, which are the primary inputs for repricing expectations.
Market effects
Signals demand conditions for hard-surface flooring retail remain uneven, while execution and gross margin can offset some comp weakness.
Primarily US retail demand read-through via store-level comparable sales and warehouse expansion.
Limited direct global impact; mostly domestic home-improvement retail sentiment.
Counterpoint
Margin and operating income gains may be partly timing-driven, so the market could fade the strength if adjusted EBITDA and adjusted EPS do not re-accelerate.
Key entities
- companyFloor & Decor Holdings, Inc.
Reported Q2 FY2026 results and updated FY2026 guidance in an SEC 8-K.
- executiveBrad Paulsen
CEO quoted on sequential improvement in comparable store sales and disciplined execution.
