Q3 FY2026
Filed Oct 29, 2026Third-quarter net sales increased 3.0% to $1,214.6 million, while comparable store sales decreased 1.4% and diluted EPS increased 15.1% to $0.61.
Net sales, operating income, net income, diluted EPS, and Adjusted EBITDA increased, but comparable store sales declined 1.4% in the quarter and 2.4% for the thirty-nine weeks ended September 24, 2026.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, thirteen weeks ended September 24, 2026GAAP | $1.21B | – | 3.0 % |
| Comparable store sales, thirteen weeks ended September 24, 2026other | decreased 1.4% | – | decreased 1.4% |
| Cost of sales, thirteen weeks ended September 24, 2026GAAP | 683,238 | – | 2.3 % |
| Gross profit, thirteen weeks ended September 24, 2026GAAP | $531.3M | – | 3.8 % |
| Gross margin, thirteen weeks ended September 24, 2026GAAP | 43.7 % | – | – |
| Selling, general and administrative expenses, thirteen weeks ended September 24, 2026GAAP | 453,342 | – | 3.0 % |
| Operating income, thirteen weeks ended September 24, 2026GAAP | $78M | – | 8.3% |
| Operating margin, thirteen weeks ended September 24, 2026GAAP | 6.4% | – | increased 30 basis points |
| Income before income taxes, thirteen weeks ended September 24, 2026GAAP | 78,363 | – | 9.7 % |
| Income tax expense, thirteen weeks ended September 24, 2026GAAP | 13,540 | – | (4.4) % |
| Net income, thirteen weeks ended September 24, 2026GAAP | $64.8M | – | 13.2% |
| Diluted earnings per share, thirteen weeks ended September 24, 2026GAAP | $0.61 | – | 15.1% |
| Adjusted net income, thirteen weeks ended September 24, 2026non-GAAP | $64.82M | – | – |
| Adjusted diluted EPS, thirteen weeks ended September 24, 2026non-GAAP | $ 0.61 | – | – |
| Adjusted gross profit, thirteen weeks ended September 24, 2026non-GAAP | $531.3M | – | – |
| Adjusted gross margin, thirteen weeks ended September 24, 2026non-GAAP | 43.7 % | – | – |
| Adjusted EBITDA, thirteen weeks ended September 24, 2026non-GAAP | $149.1M | – | 7.4% |
| Net sales, thirty-nine weeks ended September 24, 2026GAAP | $3.62B | – | 1.8% |
| Comparable store sales, thirty-nine weeks ended September 24, 2026other | decreased 2.4% | – | decreased 2.4% |
| Gross profit, thirty-nine weeks ended September 24, 2026GAAP | $1.64B | – | 5.7 % |
| Gross margin, thirty-nine weeks ended September 24, 2026GAAP | 45.4% | – | increased 170 basis points |
| Operating income, thirty-nine weeks ended September 24, 2026GAAP | $254.4M | – | 16.6% |
| Operating margin, thirty-nine weeks ended September 24, 2026GAAP | 7.0% | – | increased 90 basis points |
| Net income, thirty-nine weeks ended September 24, 2026GAAP | $200.4M | – | 18.4% |
| Diluted earnings per share, thirty-nine weeks ended September 24, 2026GAAP | $1.86 | – | 19.2% |
| Adjusted net income, thirty-nine weeks ended September 24, 2026non-GAAP | $167.5M | – | decreased 1.1% |
| Adjusted diluted EPS, thirty-nine weeks ended September 24, 2026non-GAAP | $1.55 | – | decreased 0.6% |
| Adjusted gross margin, thirty-nine weeks ended September 24, 2026non-GAAP | 43.8% | – | increased 10 basis points |
| Adjusted EBITDA, thirty-nine weeks ended September 24, 2026non-GAAP | $422.5M | – | 0.9% |
| Net cash provided by operating activities, thirty-nine weeks ended September 24, 2026GAAP | 485,308 | – | – |
| Purchases of fixed assets, thirty-nine weeks ended September 24, 2026GAAP | (187,918) | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fiscal year ending December 31, 2026 outlook
- Revenueapproximately $4,765 million to $4,835 million
- Tax rateapproximately 21.5% to 22.0%
- NoteComparable store sales of approximately (3.5)% to (2.0)%
- NoteDiluted EPS of approximately $2.19 to $2.29
- NoteAdjusted diluted EPS of approximately $1.88 to $1.98
- NoteAdjusted EBITDA of approximately $535 million to $550 million
- 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 $235 million to $250 million
- NoteThe 53rd week is expected to contribute approximately $65 million to net sales
- NoteThe 53rd week is expected to contribute approximately $0.08 to diluted EPS
- NoteThe 53rd week is expected to contribute approximately $0.08 to Adjusted diluted EPS
- NoteThe 53rd week is expected to contribute approximately $11 million to Adjusted EBITDA
Capital returns
- Returned $91.4 million to shareholders through share repurchases.
- Payments for repurchase of common stock were (157,093) for the thirty-nine weeks ended September 24, 2026.
What drove it
- The Company opened one new warehouse store in the third quarter, ending with 282 warehouse stores and five design studios.
- The Company opened 12 new warehouse stores during the thirty-nine weeks ended September 24, 2026.
- GAAP gross margin for the thirty-nine weeks ended September 24, 2026 included one-time IEEPA tariff refunds; adjusted gross margin was 43.8% compared with 43.7% in the same period of fiscal 2025.
- The Company stated that e-commerce, regional account manager, and design studio sales are included in comparable store sales only where the fulfilling store meets the comparable-store criteria; Spartan sales are excluded.
Concerns
- Comparable store sales decreased 1.4% in the third quarter and decreased 2.4% for the thirty-nine weeks ended September 24, 2026.
- Adjusted net income decreased 1.1% and Adjusted diluted EPS decreased 0.6% for the thirty-nine weeks ended September 24, 2026.
- The Company identified macroeconomic headwinds, including high interest rates and weak home sales, as risk factors.
- The Company identified adverse changes in global trade policies, tariffs, or import enforcement actions as potential risks to costs, imports, and supply chain operations.
What to watch
- Comparable store sales guidance of approximately (3.5)% to (2.0)% for fiscal 2026.
- The planned opening of 20 new warehouse stores for fiscal 2026.
- Fiscal 2026 net sales guidance of approximately $4,765 million to $4,835 million, including approximately $65 million expected from the 53rd week.
- Fiscal 2026 diluted EPS guidance of approximately $2.19 to $2.29 and Adjusted diluted EPS guidance of approximately $1.88 to $1.98.
- Fiscal 2026 capital expenditures guidance of approximately $235 million to $250 million.
Balance sheet and cash flow
- Cash and cash equivalents were $ 392,484 at September 24, 2026, compared with $ 249,296 at December 25, 2025.
- Inventories, net were 1,173,083 at September 24, 2026, compared with 1,133,083 at December 25, 2025.
- Term loan was 193,533 at September 24, 2026, compared with 193,589 at December 25, 2025.
- Current portion of term loan was $ 2,000 at September 24, 2026, compared with $ 2,629 at December 25, 2025.
- Net cash provided by operating activities was 485,308 for the thirty-nine weeks ended September 24, 2026, compared with 257,768 for the thirty-nine weeks ended September 25, 2025.
- Net cash used in investing activities was (187,918) for the thirty-nine weeks ended September 24, 2026, compared with (238,839) for the thirty-nine weeks ended September 25, 2025.
- Net increase in cash and cash equivalents was 143,188 for the thirty-nine weeks ended September 24, 2026, compared with 16,815 for the thirty-nine weeks ended September 25, 2025.
Analysis
Floor & Decor reported third-quarter net sales of $1,214.6 million, up 3.0% from $1,179.5 million, while comparable store sales decreased 1.4%. The Company opened one warehouse store during the quarter and ended with 282 warehouse stores and five design studios. The sales result shows growth from the broader store base while sales in the comparable store base remained under pressure.
Profitability increased faster than sales in the quarter. Operating income increased 8.3% to $78.0 million and operating margin increased 30 basis points to 6.4%. Net income increased 13.2% to $64.8 million, and diluted EPS increased 15.1% to $0.61. Adjusted EBITDA increased 7.4% to $149.1 million. Gross profit increased 3.8% to $531,323, with GAAP gross margin of 43.7% compared with 43.4% in the prior-year quarter.
For the thirty-nine weeks ended September 24, 2026, net sales increased 1.8% to $3,617.1 million and comparable store sales decreased 2.4%. GAAP gross margin increased 170 basis points to 45.4%, while adjusted gross margin increased 10 basis points to 43.8%. The difference reflects one-time IEEPA tariff refunds. GAAP net income increased 18.4% to $200.4 million and diluted EPS increased 19.2% to $1.86, whereas adjusted net income decreased 1.1% to $167.5 million and adjusted diluted EPS decreased 0.6% to $1.55.
Cash generation strengthened over the thirty-nine-week period, with net cash provided by operating activities of 485,308 versus 257,768 in the prior-year period. Purchases of fixed assets were (187,918), and payments for repurchase of common stock were (157,093). Cash and cash equivalents were $ 392,484 at September 24, 2026. The Company also stated that it returned $91.4 million to shareholders through share repurchases in the third quarter.
The updated fiscal 2026 outlook calls for net sales of approximately $4,765 million to $4,835 million, comparable store sales of approximately (3.5)% to (2.0)%, diluted EPS of approximately $2.19 to $2.29, and Adjusted EBITDA of approximately $535 million to $550 million. Fiscal 2026 includes 53 weeks, with the 53rd week expected to contribute approximately $65 million to net sales, approximately $0.08 to diluted EPS, and approximately $11 million to Adjusted EBITDA. The key reported tension remains positive earnings and cash flow performance alongside negative comparable store sales.
Management, verbatim
We are pleased with our third-quarter performance, delivering 15% earnings per share growth despite a 1.4% decline in comparable store sales.
Brad Paulsen, Chief Executive Officer
The earnings growth we delivered this quarter underscores the resilience of our business model and our ability to drive profitability in a challenging demand environment.
Brad Paulsen, Chief Executive Officer
We believe these investments represent meaningful competitive advantages that support market share gains and position us for long-term growth.
Brad Paulsen, Chief Executive Officer
Not in the filing
stated, not guessed- Prior outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Segment revenue, segment profitability, and segment-level growth rates were not reported.
- Free cash flow was not reported.
- A quarterly tax rate was not reported.
- Quarterly operating cash flow, quarterly capital expenditures, and quarterly free cash flow were not reported.
- Gross-margin guidance and operating-expense guidance were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.