Floor & Decor Holdings, Inc.
For the period ended Mar 26, 2026. Filed Apr 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 26, 2026 · Filed Apr 30, 2026
FND$51.25-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-25; filed 2025-10-30.
0001628280-25-047547
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-26; filed 2026-04-30.
0001628280-26-028915
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 76 previous paragraphs and 61 current paragraphs.
33 unchanged; 26 reworded; 2 added; 14 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Selling, General and Administrative Expenses
Current report
On April 23, 2026, the Company’s Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $400 million of the Company’s common stock. Repurchases will be made at the Company’s discretion and will depend on a variety of factors, including business, economic, and market conditions. The share repurchase program has no expiration date and does not obligate the Company to repurchase any shares under the program.
Removed paragraphs (14)
Previous report
We believe the decreases in comparable transactions during the thirteen and thirty-nine weeks ended September 25, 2025 were largely driven by the continued impact of low existing home sales. The increases in comparable average ticket during the thirteen and thirty-nine weeks ended September 25, 2025 were primarily due to changes in sales mix.
Previous report
Gross profit during the thirty-nine weeks ended September 25, 2025 increased $105.9 million, or 7.3%, compared to the corresponding prior year period. The increase in gross profit was primarily driven by the 6.2% increase in net sales and an increase in gross margin to 43.7%, up approximately 50 basis points from 43.2% in the corresponding prior year period. The increase in gross margin was primarily driven by a decrease in supply chain costs, partially offset by an increase in distribution center costs.
Previous report
Selling and Store Operating Expenses
Previous report
Selling and store operating expenses during the thirty-nine weeks ended September 25, 2025 increased $93.9 million, or 9.3%, compared to the corresponding prior year period. The increase in selling and store operating expenses was primarily driven by $102.4 million for non-comparable stores. As a percentage of net sales, selling and store operating expenses increased by approximately 90 basis points to 31.2% from 30.3% in the corresponding prior year period.
Previous report
General and Administrative Expenses
Previous report
General and administrative expenses during the thirteen weeks ended September 25, 2025 decreased $0.1 million, or 0.2%, compared to the corresponding prior year period. Our general and administrative expenses as a percentage of net sales decreased by approximately 40 basis points to 5.7% from 6.1% in the corresponding prior year period.
Previous report
General and administrative expenses during the thirty-nine weeks ended September 25, 2025 increased $4.0 million, or 2.0%, compared to the corresponding prior year period. Our general and administrative expenses as a percentage of net sales decreased by approximately 20 basis points to 5.8% from 6.0% in the corresponding prior year period. The increase in general and administrative expenses in total was primarily driven by an increase of $5.3 million in personnel expenses, partially offset by a decrease of $1.5 million in other operating expenses.
Previous report
The decreases in general and administrative expenses as a percentage of net sales for the thirteen and thirty-nine weeks ended September 25, 2025 were primarily driven by leverage of our general and administrative costs on higher net sales.
Previous report
Pre-Opening Expenses
Previous report
Pre-opening expenses during the thirteen weeks ended September 25, 2025 decreased $4.1 million, or 32.2%, compared to the corresponding prior year period.
Previous report
Pre-opening expenses during the thirty-nine weeks ended September 25, 2025 decreased $13.2 million, or 40.1%, compared to the corresponding prior year period.
Previous report
The decreases in pre-opening expenses during the thirteen and thirty-nine weeks ended September 25, 2025 primarily resulted from decreases in the number of stores that we opened and lower relocation expenses compared to the corresponding prior year period.
Previous report
Net interest expense during the thirteen weeks ended September 25, 2025 increased $0.4 million, or 212.7%, compared to the corresponding prior year period primarily due to a decrease in interest capitalized, partially offset by lower average interest rates and lower average outstanding borrowings.
Previous report
•invest approximately $20 million in new distribution centers near Seattle and Baltimore;
Reworded paragraphs (26)
Previous wording
Founded in 2000, Floor & Decor is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces with 262 warehouse-format stores and five small-format standalone design studios across 38 states as of September 25, 2025. We believe our unique approach to selling hard surface flooring and our consistent and disciplined culture of innovation and reinvestment create a differentiated business model in the hard surface flooring category. We believe that we offer the broadest in-stock assortment of laminate and vinyl, tile, wood, and natural stone flooring and installation materials and decorative accessories, as well as adjacent categories, at everyday low prices. This positions us as the one-stop destination for our customers’ entire hard surface flooring needs. We appeal to a variety of customers, including Pros and homeowners, which are comprised of DIY and BIY customers.
Current wording
Founded in 2000, Floor & Decor is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces with 276 warehouse-format stores and five small-format standalone design studios across 39 states as of March 26, 2026. We believe our unique approach to selling hard surface flooring and our consistent and disciplined culture of innovation and reinvestment create a differentiated business model in the hard surface flooring category. We believe that we offer the broadest in-stock assortment of laminate and vinyl, tile, wood, and natural stone flooring and installation materials and decorative accessories, as well as adjacent categories, at everyday low prices. This positions us as the one-stop destination for our customers’ entire hard surface flooring needs. We appeal to a variety of customers, including Pros and homeowners, which are comprised of DIY and BIY customers.
Previous wording
During the thirty-nine weeks ended September 25, 2025, we opened 12 new warehouse-format stores and closed one warehouse-format store. Additionally, we opened a new distribution center near Seattle, Washington, ending the quarter with five distribution centers.
Current wording
During the thirteen weeks ended March 26, 2026, we opened six new warehouse-format stores, ending the quarter with 276 warehouse-format stores and five design studios.
Previous wording
We operate on a 52- or 53-week fiscal year ending the Thursday on or preceding December 31. The following discussion contains references to the thirteen and thirty-nine weeks ended September 25, 2025 and September 26, 2024, respectively.
Current wording
We operate on a 52- or 53-week fiscal year ending the Thursday on or preceding December 31. The following discussion contains references to the thirteen weeks ended March 26, 2026 and March 27, 2025, respectively.
Previous wording
Other key financial terms we use include net sales, selling and store operating expenses, general and administrative expenses, and pre-opening expenses. For definitions and a discussion of how we use other key financial terms, see the “Other Key Financial Definitions” section of Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report.
Current wording
Other key financial terms we use include net sales and selling, general and administrative (“SG&A”) expenses. For definitions and a discussion of how we use other key financial terms, see the “Other Key Financial Definitions” section of Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report.
Previous wording
Net sales during the thirteen weeks ended September 25, 2025 increased $61.6 million, or 5.5%, compared to the corresponding prior year period primarily due to sales from the 22 new warehouse-format stores that we opened since September 26, 2024, partially offset by a decrease in comparable store sales of 1.2%. The comparable store sales decline during the period of 1.2%, or $12.4 million, was due to a 3.0% decrease in comparable transactions, partially offset by a 1.8% increase in comparable average ticket. Non-comparable sales increased $74.0 million from the corresponding prior year period primarily driven by new stores.
Current wording
Net sales during the thirteen weeks ended March 26, 2026 decreased $8.5 million, or 0.7%, compared to the corresponding prior year period primarily due to a decrease in comparable store sales of 3.7%, partially offset by sales from the 22 new warehouse-format stores that we opened since March 27, 2025. The comparable store sales decline during the period of 3.7%, or $40.8 million, was due to a 5.5% decrease in comparable transactions, partially offset by a 1.9% increase in comparable average ticket. We believe the decrease in comparable transactions was largely driven by the continued impact of low existing home sales and low consumer sentiment, as well as adverse weather conditions. The increase in comparable average ticket was primarily due to strategic price increases. Non-comparable sales increased $32.3 million from the corresponding prior year period primarily driven by new stores.
Previous wording
We estimate that retail sales during both the thirteen and thirty-nine weeks ended September 25, 2025 and September 26, 2024 were approximately 50% from homeowners and 50% from Pros.
Current wording
We estimate that retail sales during the thirteen weeks ended March 26, 2026 were approximately 45% from homeowners and 55% from Pros compared to approximately 50% from homeowners and 50% from Pros during the thirteen weeks ended March 27, 2025.
Previous wording
Gross profit during the thirteen weeks ended September 25, 2025 increased $26.1 million, or 5.4%, compared to the corresponding prior year period. The increase in gross profit was primarily driven by the 5.5% increase in net sales, partially offset by a decrease in gross margin to 43.4%, down approximately 10 basis points from 43.5% in the corresponding prior year period. The decrease in gross margin was primarily driven by an increase in distribution center costs, partially offset by favorable product margin.
Current wording
Gross profit during the thirteen weeks ended March 26, 2026 decreased $0.7 million, or 0.1%, compared to the corresponding prior year period. The decrease in gross profit was primarily driven by the 0.7% decrease in net sales, partially offset by an increase in gross margin to 44.0%, up approximately 20 basis points from 43.8% in the corresponding prior year period. The increase in gross margin was primarily driven by strategic pricing initiatives, partially offset by an increase in supply chain costs.
Previous wording
Selling and store operating expenses during the thirteen weeks ended September 25, 2025 increased $24.6 million, or 7.3%, compared to the corresponding prior year period. The increase in selling and store operating expenses was primarily driven by $30.1 million for non-comparable stores. As a percentage of net sales, selling and store operating expenses increased by approximately 50 basis points to 30.8% from 30.3% in the corresponding prior year period.
Current wording
SG&A expenses during the thirteen weeks ended March 26, 2026 increased $11.1 million, or 2.5%, compared to the corresponding prior year period. The increase in SG&A expenses was primarily driven by the 22 new stores that we opened since March 27, 2025, which increased compensation and occupancy costs. SG&A expenses for non-comparable stores increased $21.4 million and for comparable stores decreased $9.0 million. As a percentage of net sales, SG&A expenses increased by approximately 120 basis points to 39.5% from 38.3% in the corresponding prior year period. This increase was primarily attributable to the addition of new stores and deleverage from a decrease in comparable store sales.
Previous wording
Net interest expense during the thirty-nine weeks ended September 25, 2025 increased $0.4 million, or 14.5%, compared to the corresponding prior year period primarily due to a decrease in interest capitalized, partially offset by higher interest income as a result of higher cash balances.
Current wording
Net interest expense during the thirteen weeks ended March 26, 2026 decreased $0.4 million, or 26.8%, compared to the corresponding prior year period primarily due to higher interest income as a result of higher cash balances.
Previous wording
Income tax expense was $45.6 million during the thirty-nine weeks ended September 25, 2025 compared to $35.8 million during the thirty-nine weeks ended September 26, 2024. The effective tax rate was 21.2% for the thirty-nine weeks ended September 25, 2025 compared to 18.4% in the corresponding prior year period. The effective tax rate increase during the thirty-nine weeks ended September 25, 2025 was primarily due to a decrease in excess tax benefits related to stock-based compensation awards.
Current wording
Income tax expense was $11.6 million during the thirteen weeks ended March 26, 2026 compared to $13.8 million during the thirteen weeks ended March 27, 2025. The effective tax rate was 22.5% for the thirteen weeks ended March 26, 2026 compared to 22.0% in the corresponding prior year period. The effective tax rate increase during the thirteen weeks ended March 26, 2026 was primarily due to a decrease in excess tax benefits related to stock-based compensation awards.
Previous wording
EBITDA and Adjusted EBITDA are key metrics used by management and our Board of Directors to assess our financial performance and enterprise value. We believe that EBITDA and Adjusted EBITDA are useful measures, as they eliminate certain expenses that are not indicative of our core operating performance and facilitate comparisons on a consistent basis from period to period. We also use Adjusted EBITDA as a basis to determine covenant compliance with respect to our ABL Facility and Term Loan Facility (together, the “Credit Facilities”), to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors, and other interested parties as performance measures to evaluate companies in our industry.
Current wording
EBITDA and Adjusted EBITDA are key metrics used by management and our Board of Directors to assess our financial performance and enterprise value. We believe that EBITDA and Adjusted EBITDA are useful measures, as they eliminate certain items that are not indicative of our core operating performance and facilitate comparisons on a consistent basis from period to period. We also use Adjusted EBITDA as a basis to determine covenant compliance with respect to our ABL Facility and Term Loan Facility (together, the “Credit Facilities”), to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors, and other interested parties as performance measures to evaluate companies in our industry.
Previous wording
(3)Other adjustments include amounts management does not consider indicative of our core operating performance. Amounts for the thirty-nine weeks ended September 25, 2025 and the thirteen and thirty-nine weeks ended September 26, 2024 relate to changes in the fair value of contingent earn-out liabilities.
Current wording
(3)Other adjustments include amounts management does not consider indicative of our core operating performance. The amount for the thirteen weeks ended March 27, 2025 relates to the change in the fair value of the contingent earn-out liability.
Previous wording
Liquidity is provided primarily by cash flows from operations and our $800.0 million ABL Facility. Unrestricted liquidity as of September 25, 2025 was $893.5 million, consisting of $204.5 million in cash and cash equivalents and $689.0 million immediately available for borrowing under the ABL Facility without violating any covenants thereunder. Our liquidity is generally not seasonal.
Current wording
Liquidity is provided primarily by cash flows from operations and our $800.0 million ABL Facility. Unrestricted liquidity as of March 26, 2026 was $1,007.2 million, consisting of $293.6 million in cash and cash equivalents and $713.6 million immediately available for borrowing under the ABL Facility without violating any covenants thereunder. Our liquidity is generally not seasonal.
Previous wording
Our primary cash needs are for merchandise inventories, payroll, store rent, and other operating expenses and capital expenditures associated with opening new stores and remodeling existing stores as well as information technology, e-commerce, store support center, and distribution center infrastructure. We also use cash for the payment of taxes and interest and, as applicable, acquisitions. We expect that cash generated from operations together with cash on hand, the availability of borrowings under our Credit Facilities, and if necessary, additional funding through other forms of external financing, will be sufficient to meet liquidity requirements, anticipated capital expenditures, and payments due under our Credit Facilities for the next twelve months and the foreseeable future.
Current wording
Our primary cash needs are for merchandise inventories, payroll, store rent, and other operating expenses and capital expenditures associated with opening new stores and remodeling existing stores as well as information technology, e-commerce, store support center, and distribution center infrastructure. We also use cash for the payment of taxes and interest and, as applicable, share repurchases and acquisitions. We expect that cash generated from operations together with cash on hand, the availability of borrowings under our Credit Facilities, and if necessary, additional funding through other forms of external financing, will be sufficient to meet liquidity requirements, anticipated capital expenditures, and payments due under our Credit Facilities for the next twelve months and the foreseeable future.
Previous wording
Total capital expenditures in fiscal 2025 are planned to be between approximately $280 million to $300 million and are expected to be funded primarily by cash generated from operations. Our capital needs may change in the future due to changes in our business, new opportunities that we choose to pursue, or other factors. We currently expect the following for capital expenditures in fiscal 2025 (projected amounts are based on the gross costs that we expect to accrue for these investments on the Condensed Consolidated Balance Sheets in fiscal 2025, which may include amounts incurred but not yet settled in cash during the period):
Current wording
Total capital expenditures in fiscal 2026 are planned to be between approximately $250 million to $300 million and are expected to be funded primarily by cash generated from operations. Our capital needs may change in the future due to changes in our business, new opportunities that we choose to pursue, or other factors. We currently expect the following for capital expenditures in fiscal 2026 (projected amounts are based on the gross costs that we expect to accrue for these investments on the Condensed Consolidated Balance Sheets in fiscal 2026, which may include amounts incurred but not yet settled in cash during the period):
Previous wording
•invest approximately $180 million to $200 million to open 20 warehouse-format stores, relocate stores, and begin construction on stores opening after fiscal 2025;
Current wording
•invest approximately $160 million to $190 million to open 20 warehouse-format stores, relocate stores, and begin construction on stores opening after fiscal 2026;
Previous wording
•invest approximately $45 million in existing stores and distribution centers; and
Current wording
•invest approximately $60 million to $70 million in existing stores and new and existing distribution centers; and
Previous wording
•invest approximately $35 million in information technology infrastructure, e-commerce, and other store support center initiatives.
Current wording
•invest approximately $30 million to $40 million in information technology infrastructure, e-commerce, and other store support center initiatives.
Previous wording
Cash provided by operating activities consists primarily of (i) net income adjusted for non-cash items, including depreciation and amortization, stock-based compensation, deferred income taxes, and changes in the fair values of contingent earn-out liabilities and (ii) changes in working capital.
Current wording
Cash provided by operating activities consists primarily of (i) net income adjusted for non-cash items, including depreciation and amortization, stock-based compensation, and deferred income taxes and (ii) changes in working capital.
Previous wording
Net cash provided by operating activities during the thirty-nine weeks ended September 25, 2025 and September 26, 2024 was $257.8 million and $501.8 million, respectively. The decrease in net cash provided by operating activities was primarily driven by changes in inventory and trade accounts payable.
Current wording
Net cash provided by operating activities during the thirteen weeks ended March 26, 2026 and March 27, 2025 was $109.2 million and $71.2 million, respectively. The increase in net cash provided by operating activities was primarily driven by changes in inventory and trade accounts payable.
Previous wording
Investing activities typically consist primarily of capital expenditures for new store openings and existing store remodels, including leasehold improvements, racking, fixtures, vignettes, design centers, and new infrastructure and information systems. Cash payments to acquire businesses are also included in investing activities.
Current wording
Investing activities typically consist primarily of capital expenditures for new store openings and existing store remodels, including leasehold improvements, racking, fixtures, vignettes, design centers, and new infrastructure and information systems.
Previous wording
Net cash used in investing activities during the thirty-nine weeks ended September 25, 2025 and September 26, 2024 was $238.8 million and $349.4 million, respectively. The decrease in net cash used in investing activities was due to a decrease in capital expenditures primarily driven by a decrease in new stores under construction compared to the corresponding prior year period.
Current wording
Net cash used in investing activities during the thirteen weeks ended March 26, 2026 and March 27, 2025 was $63.4 million and $66.7 million, respectively. The decrease in net cash used in investing activities was due to a decrease in capital expenditures primarily driven by an increase in new stores being constructed at second-use sites and store size optimization.
Previous wording
Net cash used in financing activities during the thirty-nine weeks ended September 25, 2025 and September 26, 2024 was $2.1 million and $6.0 million, respectively. The decrease in net cash used in financing activities was primarily driven by a decrease in tax payments for stock-based compensation awards.
Current wording
Net cash used in financing activities during the thirteen weeks ended March 26, 2026 and March 27, 2025 was $1.5 million and $5.2 million, respectively. The decrease in net cash used in financing activities was primarily driven by a decrease in tax payments for stock-based compensation awards.
Previous wording
As of September 25, 2025, total Term Loan Facility debt outstanding was $198.7 million, and no amounts were outstanding under our ABL Facility. For additional information regarding our Term Loan Facility and ABL Facility, including applicable covenants and other details, please refer to Note 3, “Debt” to our condensed consolidated financial statements included in this Quarterly Report.
Current wording
As of March 26, 2026, total Term Loan Facility debt outstanding was $197.7 million, and no amounts were outstanding under our ABL Facility. For additional information regarding our Term Loan Facility and ABL Facility, including applicable covenants and other details, please refer to Note 3, “Debt” to our condensed consolidated financial statements included in this Quarterly Report.
Previous wording
The current geopolitical environment, particularly related to existing and potential changes in global trade and tariffs, has created uncertainty surrounding the future state of the global economy and related impacts to our supply chain. In 2025, the U.S. has imposed significant additional tariffs on products from most countries where we source products, with further tariffs being considered. Although some tariffs were subsequently paused, it is unclear whether the pauses will remain in place, and if so, for how long. Additionally, certain countries where we source products either have imposed or are considering imposing new tariffs and other trade measures on the U.S. in response, resulting in potentially escalating tariffs and trade conflict between the U.S. and its trading partners.
Current wording
The current geopolitical environment, particularly related to existing and potential changes in global trade and tariffs, has created uncertainty surrounding the future state of the global economy and related impacts to our supply chain. In 2025, the U.S. government imposed significant additional tariffs on products from most countries where we source products. In early 2026, the U.S. Supreme Court invalidated tariffs previously implemented under the authority of the International Emergency Economic Powers Act. The ruling did not specifically require these tariffs to be refunded, resulting in uncertainty regarding potential tariff refunds. As a result of the ruling, the U.S. government has implemented and continues working to implement new tariffs using other authorities to maintain continuity in its tariff policy.
Previous wording
As we continue to manage the impact these tariffs may have on our business and the complexities of the various trade policy actions, we continue taking steps to mitigate some of the cost increases through negotiations with our vendors, sourcing from alternative countries, and increasing retail pricing as we deem appropriate. While we continue to mitigate the overall effect of increased tariffs, these tariffs have increased and will continue to increase our inventory costs and associated cost of sales, which may result in increased retail prices and may adversely impact sales. Furthermore, the broader impact of increased tariffs on the economy may negatively impact consumer demand, which may also have an adverse impact on sales.
Current wording
While we continue to take steps to mitigate the overall effect of increased tariffs, these tariffs have increased and will continue to increase our inventory costs and associated cost of sales, which have resulted in and in the future may result in increased retail prices and may adversely impact sales. Furthermore, the impact of increased tariffs on the economy, as well as the broader geopolitical environment, including recent tensions in the Middle East, have and in the future may negatively impact consumer demand for our products, which may also have an adverse impact on sales.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Net sales during the thirty-nine weeks ended September 25, 2025 increased $206.1 million, or 6.2%, compared to the corresponding prior year period primarily due to sales from the 22 new warehouse-format stores that we opened since September 26, 2024, partially offset by a decrease in comparable store sales of 0.8%. The comparable store sales decline during the period of 0.8%, or $26.4 million, was due to a 3.3% decrease in comparable transactions, partially offset by a 2.6% increase in comparable average ticket. Non-comparable sales increased $232.5 million from the corresponding prior year period primarily driven by new stores.
Previous report — wording carried elsewhere
The increases in selling and store operating expenses as a percentage of net sales during the thirteen and thirty-nine weeks ended September 25, 2025 were primarily attributable to the addition of new stores and deleverage from a decrease in comparable store sales.
Previous report — wording carried elsewhere
Income tax expense was $14.2 million during the thirteen weeks ended September 25, 2025 compared to $14.4 million during the thirteen weeks ended September 26, 2024. The effective tax rate was 19.8% for the thirteen weeks ended September 25, 2025 compared to 21.8% in the corresponding prior year period. The effective tax rate decrease during the thirteen weeks ended September 25, 2025 was primarily due to a decrease in state income taxes and an increase in federal tax credits.