Floor & Decor tops Q3 profit estimates, sales below forecast

Floor & Decor Holdings Inc. (FND) reported fiscal third-quarter results on Oct. 29, 2026, when adjusted diluted EPS of 61 cents topped the 58 cents consensus estimate compiled by Finnhub. Revenue of $1.21 billion was below the $1.23 billion estimate.

The company said in its press release that the quarter ended Sept. 24, 2026. Net sales rose 3.0% from a year earlier, but comparable store sales fell 1.4%. The company also said it opened one new warehouse store.

Here's how the company did:

• Adjusted diluted EPS: 61 cents per share vs. 53 cents a year earlier; 58 cents expected, according to Finnhub
• Revenue: $1,214.6 million vs. $1,179.5 million a year earlier; $1.23 billion expected, according to Finnhub
• Net income: $64.8 million vs. $57.3 million a year earlier
• Operating income: $78.0 million vs. $72.0 million a year earlier

Operating margin was 6.4%, up 30 basis points from a year earlier. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, adjusted for stock-based compensation and certain other items, was $149.1 million, up 7.4% from $138.8 million.

CEO Brad Paulsen said, "We are pleased with our third-quarter performance, delivering 15% earnings per share growth despite a 1.4% decline in comparable store sales." He pointed to continued investment in the customer experience, the Pro offering, store growth and technology.

For the 39 weeks ended Sept. 24, 2026, net sales were $3,617.1 million, up 1.8% from $3,554.4 million. Diluted EPS was $1.86, up 19.2%. Adjusted diluted EPS was $1.55, down 0.6% from $1.56 in the same period of fiscal 2025.

Outlook for fiscal 2026

The company will report 53 weeks of operating results in fiscal 2026. It expects net sales of $4,765 million to $4,835 million, with the 53rd week contributing about $65 million.

It expects comparable store sales to decline 2.0% to 3.5%, and adjusted diluted EPS of $1.88 to $1.98 per share, with the 53rd week contributing about 8 cents.

The company forecasts adjusted EBITDA of $535 million to $550 million. It plans to open 20 new warehouse stores and expects capital expenditures of $235 million to $250 million.

Stores, tariff refunds and buybacks

The company returned $91.4 million to shareholders through share repurchases in the quarter. Over the 39 weeks, it had repurchased $157.1 million of common stock, according to its cash flow statement.

For the 39 weeks, the company removed $45.2 million of one-time tariff refunds under the International Emergency Economic Powers Act from adjusted net income. The company ended the quarter with 282 warehouse stores and five design studios across 39 states.

Board changes

The company said Thomas Taylor will move from Executive Chair to non-executive Chair of the Board effective Jan. 1, 2027, and will no longer serve as an executive officer. The board appointed Lauren Taylor Wolfe as a director effective Feb. 1, 2027, with a seat on the Audit Committee. She is co-founder and managing partner of Impactive Capital.

Thomas Taylor said, "We invited Lauren to join our Board as we believe she will bring strong complementary perspectives."

Norman Axelrod, the Lead Director, will not stand for reelection at the 2027 annual meeting of stockholders, expected in May 2027. He will continue as Lead Director until then, and the company said he will retire from the board after 17 years of service.