Floor & Decor (FND) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 rose 3% year-over-year to $1,250.3 million, driven by new store openings, despite a 2.1% decline in comparable store sales.

• Adjusted diluted EPS was $0.58, flat year-over-year, while GAAP diluted EPS was $0.89, up 53.4%, reflecting a $56.2 million one-time IEEPA tariff refund.

• Net income for the quarter was $95.9 million, up 51.7% from the prior year.

• Pro segment led growth, accounting for 55% of sales, with installation materials, tile, and wood categories outperforming.

• $65.7 million was returned to shareholders via share repurchases in Q2.

Financial highlights

• Gross margin for Q2 2026 was 48.2%, up 430 bps year-over-year due to the tariff refund; adjusted gross margin was 43.7%, down 20 bps.

• Adjusted EBITDA was $152.0 million, up 1.2% year-over-year, with a margin of 12.2%.

• Operating income increased 51.4% to $124.0 million; net interest income was $2.3 million, aided by tariff refunds.

• Cash from operations for the first half was $278.4 million, up from $155.3 million year-over-year.

• SG&A as a percentage of sales was 38.3%, up 120 bps year-over-year, due to new stores and higher incentive compensation.

Outlook and guidance

• Fiscal 2026 net sales expected at $4,770–$4,990 million, with a 53rd week contributing ~$65 million.

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

• Adjusted EBITDA forecasted at $550–$585 million; adjusted diluted EPS at $1.88–$2.13.

• Plans to open 20 new warehouse stores in fiscal 2026; CapEx projected at $240–$275 million.

• Liquidity remains strong with $320.6 million in cash and $621.8 million available under the ABL facility.