Floor And Decor’s Q2 results met Wall Street expectations, and the market responded positively, reflecting stable performance in a challenging retail environment. Management cited the return to positive same-store sales growth, improved gross margins, and effective tariff mitigation strategies as key contributors. CEO Thomas Taylor noted the company’s “first quarterly increase in comparable store sales since 2022” and highlighted strength in the wood category and design services. The company’s ability to maintain pricing discipline and attract both professional and homeowner customers helped offset ongoing housing market headwinds.
Is now the time to buy FND? Find out in our full research report (it’s free).
Floor And Decor (FND) Q2 CY2025 Highlights:
- Revenue: $1.21 billion vs analyst estimates of $1.21 billion (7.1% year-on-year growth, in line)
- EPS (GAAP): $0.58 vs analyst estimates of $0.57 (in line)
- Adjusted EBITDA: $150.2 million vs analyst estimates of $146.9 million (12.4% margin, 2.2% beat)
- The company dropped its revenue guidance for the full year to $4.71 billion at the midpoint from $4.73 billion, a 0.5% decrease
- EPS (GAAP) guidance for the full year is $1.88 at the midpoint, beating analyst estimates by 5%
- EBITDA guidance for the full year is $535 million at the midpoint, in line with analyst expectations
- Operating Margin: 6.7%, in line with the same quarter last year
- Locations: 257 at quarter end, up from 230 in the same quarter last year
- Same-Store Sales were flat year on year (-9% in the same quarter last year)
- Market Capitalization: $9.01 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Floor And Decor’s Q2 Earnings Call
- Barath Rao (JPMorgan) asked how much of the average ticket growth was due to tariffs versus mix, and CEO Thomas Taylor emphasized mix and premium categories as primary drivers, with only modest price increases planned.
- Simeon Gutman (Morgan Stanley) pressed for views on 2026 growth potential, but CEO Thomas Taylor and CFO Bryan Langley cited too much macro uncertainty to provide specific targets, highlighting new store maturation as a possible tailwind.
- Michael Lasser (UBS) questioned the long-term strategy if current housing market conditions persist, to which Taylor explained ongoing investments in in-store experience and commercial opportunities to drive growth even during an extended market trough.
- Seth Sigman (Barclays) inquired about market share gains and pricing gaps versus competitors, with Taylor and President Brad Paulsen noting that careful pricing actions and assortment depth have widened their advantage over independents.
- Steven Zaccone (Citi) asked about demand trends and comp progression for the second half, and Langley clarified that the high end of guidance assumes a slight improvement, while the low end incorporates potential demand decay.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory analyst team will closely monitor (1) the pace and performance of new store openings and their impact on overall sales, (2) the evolution of gross margin as tariffs, sourcing strategies, and distribution center costs play out, and (3) signs of stabilization or improvement in existing home sales and discretionary project spending. Additionally, traction in design services, commercial segment growth, and the effectiveness of pricing actions will be important markers for execution.
Floor And Decor currently trades at $84, up from $76.73 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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