Floor & Decor (FND) Q1 2026 earnings summary

Executive summary

• Announced a $400 million share repurchase program, reflecting confidence in cash flow and capital allocation discipline.

• Net sales for Q1 2026 were $1.152 billion, down 0.7% year-over-year, primarily due to a 3.7% decline in comparable store sales, offset by new store openings.

• Diluted EPS was $0.37, down from $0.45 last year, with net income at $39.7 million, an 18.8% decrease.

• Six new warehouse stores opened in Q1, bringing the total to 276 warehouse-format stores and five design studios across 39 states.

• Facing a challenging demand environment due to high mortgage rates, adverse weather, and weak consumer sentiment, resulting in weaker-than-expected Q1 earnings.

Financial highlights

• Gross margin improved 20 bps to 44.0%, despite higher supply chain costs.

• Operating income declined 18.4% to $52.4 million, with operating margin at 4.5%.

• Adjusted EBITDA was $121.5 million, down 6.4% year-over-year.

• SG&A as a percentage of sales rose to 39.5% from 38.3% year-over-year, mainly due to new store openings.

• Cash and cash equivalents at quarter-end were $293.6 million, up from $249.3 million at year-end.

Outlook and guidance

• FY26 sales expected at $4.77–$4.99 billion, up 1.8%–6.5% year-over-year, including a 53rd week contributing ~$65 million.

• Comparable store sales projected flat to down 4%; gross margin guidance at 43.6%–43.8%.

• Adjusted EBITDA forecasted at $545–$580 million; diluted EPS at $1.83–$2.08, with the 53rd week adding ~$0.08.

• CapEx guidance unchanged at $250–$300 million, with $160–$190 million allocated to new store openings and relocations.

• Plan to open 20 new warehouse stores in fiscal 2026.