Floor & Decor Holdings, Inc.

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 281 warehouse-format stores and five small-format standalone design studios across 39 states as of June 25, 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.

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 282 warehouse-format stores and five small-format standalone design studios across 39 states as of September 24, 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 twenty-six weeks ended June 25, 2026, we opened 11 new warehouse-format stores, ending the quarter with 281 warehouse-format stores and five design studios.

Current wording

During the thirty-nine weeks ended September 24, 2026, we opened 12 new warehouse-format stores, ending the quarter with 282 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 twenty-six weeks ended June 25, 2026 and June 26, 2025, 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 and thirty-nine weeks ended September 24, 2026 and September 25, 2025, respectively.

Previous wording

Net sales during the thirteen weeks ended June 25, 2026 increased $36.1 million, or 3.0%, compared to the corresponding prior year period primarily due to sales from the 24 new warehouse-format stores that we opened since June 26, 2025, partially offset by a decrease in comparable store sales of 2.1%. The comparable store sales decline during the period of 2.1%, or $24.4 million, was due to a 2.9% decrease in comparable transactions, partially offset by a 0.8% increase in comparable average ticket. Non-comparable sales increased $60.5 million from the corresponding prior year period primarily driven by new stores.

Current wording

Net sales during the thirteen weeks ended September 24, 2026 increased $35.0 million, or 3.0%, compared to the corresponding prior year period primarily due to sales from the 20 new warehouse-format stores that we opened since September 25, 2025, partially offset by a decrease in comparable store sales of 1.4%. The comparable store sales decline during the period of 1.4%, or $15.2 million, was due to a 2.9% decrease in comparable transactions, partially offset by a 1.6% increase in comparable average ticket. Non-comparable sales increased $50.2 million from the corresponding prior year period primarily driven by new stores.

Previous wording

Net sales during the twenty-six weeks ended June 25, 2026 increased $27.7 million, or 1.2%, compared to the corresponding prior year period primarily due to sales from the 24 new warehouse-format stores that we opened since June 26, 2025, partially offset by a decrease in comparable store sales of 2.9%. The comparable store sales decline during the period of 2.9%, or $65.1 million, was due to a 4.2% decrease in comparable transactions, partially offset by a 1.4% increase in comparable average ticket. Non-comparable sales increased $92.8 million from the corresponding prior year period primarily driven by new stores.

Current wording

Net sales during the thirty-nine weeks ended September 24, 2026 increased $62.7 million, or 1.8%, compared to the corresponding prior year period primarily due to sales from the 20 new warehouse-format stores that we opened since September 25, 2025, partially offset by a decrease in comparable store sales of 2.4%. The comparable store sales decline during the period of 2.4%, or $80.4 million, was due to a 3.7% decrease in comparable transactions, partially offset by a 1.4% increase in comparable average ticket. Non-comparable sales increased $143.1 million from the corresponding prior year period primarily driven by new stores.

Previous wording

We believe the decreases in comparable transactions during the thirteen and twenty-six weeks ended June 25, 2026 were largely driven by the continued impact of low existing home sales and low consumer sentiment. The increases in comparable average ticket during the thirteen and twenty-six weeks ended June 25, 2026 were primarily due to strategic price increases.

Current wording

We believe the decreases in comparable transactions during the thirteen and thirty-nine weeks ended September 24, 2026 were largely driven by the continued impact of low existing home sales and low consumer sentiment. The increases in comparable average ticket during the thirteen and thirty-nine weeks ended September 24, 2026 were primarily due to strategic price increases.

Previous wording

We estimate that retail sales during the thirteen and twenty-six weeks ended June 25, 2026 were approximately 45% from homeowners and 55% from Pros compared to approximately 50% from homeowners and 50% from Pros during the thirteen and twenty-six weeks ended June 26, 2025.

Current wording

We estimate that retail sales during the thirteen and thirty-nine weeks ended September 24, 2026 were approximately 45% from homeowners and 55% from Pros compared to approximately 50% from homeowners and 50% from Pros during the thirteen and thirty-nine weeks ended September 25, 2025.

Previous wording

Gross profit during the twenty-six weeks ended June 25, 2026 increased $69.7 million, or 6.7%, compared to the corresponding prior year period. Gross margin increased to 46.2%, up approximately 240 basis points from 43.8% in the corresponding prior year period. The increase in gross profit and gross margin was primarily driven by a $56.2 million, or 230 basis points, one-time benefit from the recognition of IEEPA tariff refunds. The remaining increase in gross profit was primarily attributable to the 1.2% increase in net sales.

Current wording

Gross profit during the thirteen weeks ended September 24, 2026 increased $19.4 million, or 3.8%, compared to the corresponding prior year period. The increase in gross profit was primarily driven by the 3.0% increase in net sales and an increase in gross margin to 43.7%, up approximately 30 basis points from 43.4% in the corresponding prior year period. The increase in gross margin was primarily driven by the recognition of IEEPA tariff refunds as the related inventory was sold, which offset higher supply chain costs.

Previous wording

Gross profit during the thirteen weeks ended June 25, 2026 increased $70.4 million, or 13.2%, compared to the corresponding prior year period. Gross margin increased to 48.2%, up approximately 430 basis points from 43.9% in the corresponding prior year period. The increase in gross profit and gross margin was primarily driven by a $56.2 million, or 450 basis points, one-time benefit from the recognition of IEEPA tariff refunds. The remaining increase in gross profit was primarily attributable to the 3.0% increase in net sales.

Current wording

Gross profit during the thirty-nine weeks ended September 24, 2026 increased $89.1 million, or 5.7%, compared to the corresponding prior year period. Gross margin increased to 45.4%, up approximately 170 basis points from 43.7% in the corresponding prior year period. The increase in gross profit and gross margin was primarily driven by a $56.2 million, or 160 basis points, one-time benefit from the recognition of IEEPA tariff refunds. The remaining increase in gross profit was primarily attributable to the 1.8% increase in net sales.

Previous wording

SG&A expenses during the thirteen weeks ended June 25, 2026 increased $28.3 million, or 6.3%, compared to the corresponding prior year period. The increase in SG&A expenses was primarily driven by the 24 new stores that we opened since June 26, 2025, which increased compensation and occupancy costs. The increase also reflects higher incentive compensation related to the recognition of IEEPA tariff refunds. SG&A expenses for non-comparable stores increased $26.7 million and for comparable stores decreased $13.7 million. As a percentage of net sales, SG&A expenses increased by approximately 120 basis points to 38.3% from 37.1% in the corresponding prior year period. This increase was primarily attributable to incentive compensation related to the recognition of IEEPA tariff refunds, as well as the addition of new stores and deleverage from a decrease in comparable store sales.

Current wording

SG&A expenses during the thirteen weeks ended September 24, 2026 increased $13.4 million, or 3.0%, compared to the corresponding prior year period. The increase in SG&A expenses was primarily driven by the 20 new stores that we opened since September 25, 2025, which increased compensation and occupancy costs. SG&A expenses for non-comparable stores increased $25.0 million and for comparable stores decreased $7.9 million. As a percentage of net sales, SG&A expenses were flat at 37.3% compared to the corresponding prior year period.

Previous wording

SG&A expenses during the twenty-six weeks ended June 25, 2026 increased $39.5 million, or 4.4%, compared to the corresponding prior year period. The increase in SG&A expenses was primarily driven by the 24 new stores that we opened since June 26, 2025, which increased compensation and occupancy costs. The increase also reflects higher incentive compensation related to the recognition of IEEPA tariff refunds. SG&A expenses for non-comparable stores increased $48.1 million and for comparable stores decreased $22.7 million. As a percentage of net sales, SG&A expenses increased by approximately 130 basis points to 38.9% from 37.6% 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, as well as incentive compensation related to the recognition of IEEPA tariff refunds.

Current wording

SG&A expenses during the thirty-nine weeks ended September 24, 2026 increased $52.9 million, or 4.0%, compared to the corresponding prior year period. The increase in SG&A expenses was primarily driven by the 20 new stores that we opened since September 25, 2025, which increased compensation and occupancy costs. SG&A expenses for non-comparable stores increased $73.1 million and for comparable stores decreased $30.6 million. As a percentage of net sales, SG&A expenses increased by approximately 80 basis points to 38.4% from 37.6% 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 income during the twenty-six weeks ended June 25, 2026 was $1.1 million compared to net interest expense of $2.6 million during the corresponding prior year period. The change was primarily attributable to statutory interest on refunded IEEPA tariffs and increased interest income earned on larger cash balances.

Current wording

Net interest income during the thirteen weeks ended September 24, 2026 was $0.4 million compared to net interest expense of $0.6 million during the corresponding prior year period. The change was primarily attributable to increased interest income earned on larger cash balances, partially offset by a decrease in capitalized interest.

Previous wording

Net interest income during the thirteen weeks ended June 25, 2026 was $2.3 million compared to net interest expense of $1.1 million during the corresponding prior year period. The change was primarily attributable to statutory interest on refunded IEEPA tariffs and increased interest income earned on larger cash balances.

Current wording

Net interest income during the thirty-nine weeks ended September 24, 2026 was $1.5 million compared to net interest expense of $3.2 million during the corresponding prior year period. The change was primarily attributable to increased interest income earned on larger cash balances and statutory interest on refunded IEEPA tariffs.

Previous wording

Income tax expense was $29.1 million during the thirteen weeks ended June 25, 2026 compared to $17.6 million during the thirteen weeks ended June 26, 2025. The effective tax rate was 23.3% for the thirteen weeks ended June 25, 2026 compared to 21.8% in the corresponding prior year period. The effective tax rate increase during the thirteen weeks ended June 25, 2026 was primarily due to a decrease in federal tax credits.

Current wording

Income tax expense was $13.5 million during the thirteen weeks ended September 24, 2026 compared to $14.2 million during the thirteen weeks ended September 25, 2025. The effective tax rate was 17.3% for the thirteen weeks ended September 24, 2026 compared to 19.8% in the corresponding prior year period. The effective tax rate decrease during the thirteen weeks ended September 24, 2026 was primarily due to an increase in tax credits.

Previous wording

Income tax expense was $40.6 million during the twenty-six weeks ended June 25, 2026 compared to $31.4 million during the twenty-six weeks ended June 26, 2025. The effective tax rate was 23.1% for the twenty-six weeks ended June 25, 2026 compared to 21.9% in the corresponding prior year period. The effective tax rate increase during the twenty-six weeks ended June 25, 2026 was primarily due to a decrease in excess tax benefits related to stock-based compensation awards.

Current wording

Income tax expense was $54.2 million during the thirty-nine weeks ended September 24, 2026 compared to $45.6 million during the thirty-nine weeks ended September 25, 2025. The effective tax rate was 21.3% for the thirty-nine weeks ended September 24, 2026 compared to 21.2% in the corresponding prior year period.

Previous wording

(4)Represents IEEPA tariff refunds recognized in cost of sales and associated SG&A expenses. Statutory interest on tariff refunds is included within interest (income) expense, net in the table above.

Current wording

(4)Represents one-time IEEPA tariff refunds recognized in cost of sales and associated SG&A expenses. Statutory interest on tariff refunds is included within interest (income) expense, net in the table above.

Previous wording

(5)Other adjustments include amounts management does not consider indicative of our core operating performance. The amount for the twenty-six weeks ended June 26, 2025 relates to the change in the fair value of the contingent earn-out liability.

Current wording

(5)Other adjustments include amounts management does not consider indicative of our core operating performance. The amount for the thirty-nine weeks ended September 25, 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 2026 ABL Facility. Unrestricted liquidity as of June 25, 2026 was $942.4 million, consisting of $320.6 million in cash and cash equivalents and $621.8 million immediately available for borrowing under the 2026 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 2026 ABL Facility. Unrestricted liquidity as of September 24, 2026 was $1,033.8 million, consisting of $392.5 million in cash and cash equivalents and $641.3 million immediately available for borrowing under the 2026 ABL Facility without violating any covenants thereunder. Our liquidity is generally not seasonal.

Previous wording

Total capital expenditures in fiscal 2026 are planned to be between approximately $240 million to $275 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):

Current wording

Total capital expenditures in fiscal 2026 are planned to be between approximately $235 million to $250 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 $140 million to $165 million to open 20 warehouse-format stores, relocate stores, and begin construction on stores opening after fiscal 2026;

Current wording

•invest approximately $135 million to $150 million to open 20 warehouse-format stores, relocate stores, and begin construction on stores opening after fiscal 2026;

Previous wording

•invest approximately $60 million to $65 million in existing stores and new and existing distribution centers; and

Current wording

•invest approximately $55 million in existing stores and new and existing distribution centers; and

Previous wording

•invest approximately $40 million to $45 million in information technology infrastructure, e-commerce, and other store support center initiatives.

Current wording

•invest approximately $45 million in information technology infrastructure, e-commerce, and other store support center initiatives.

Previous wording

On April 23, 2026, the Company’s Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $400.0 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. As of June 25, 2026, the Company had remaining authorization under the share repurchase program of $334.3 million. For additional information related to the Company’s share repurchase program, refer to Note 6, “Stockholders’ Equity” to our condensed consolidated financial statements included in this Quarterly Report.

Current wording

On April 23, 2026, the Company’s Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $400.0 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. As of September 24, 2026, the Company had remaining authorization under the share repurchase program of $242.9 million. For additional information related to the Company’s share repurchase program, refer to Note 6, “Stockholders’ Equity” to our condensed consolidated financial statements included in this Quarterly Report.

Previous wording

Net cash provided by operating activities during the twenty-six weeks ended June 25, 2026 and June 26, 2025 was $278.4 million and $155.3 million, respectively. The increase in net cash provided by operating activities was primarily driven by changes in inventory and trade accounts payable, partially offset by an increase in receivables, net.

Current wording

Net cash provided by operating activities during the thirty-nine weeks ended September 24, 2026 and September 25, 2025 was $485.3 million and $257.8 million, respectively. The increase in net cash provided by operating activities was primarily driven by the increase in trade accounts payable.

Previous wording

Net cash used in investing activities during the twenty-six weeks ended June 25, 2026 and June 26, 2025 was $136.7 million and $160.8 million, respectively. The decrease in net cash used in investing activities was due to a decrease in capital expenditures primarily driven by changes in the type of new store construction and store size optimization.

Current wording

Net cash used in investing activities during the thirty-nine weeks ended September 24, 2026 and September 25, 2025 was $187.9 million and $238.8 million, respectively. The decrease in net cash used in investing activities was due to a decrease in capital expenditures primarily driven by changes in the type of new store construction and store size optimization.

Previous wording

Net cash used in financing activities during the twenty-six weeks ended June 25, 2026 and June 26, 2025 was $70.5 million and $5.2 million, respectively. The increase in net cash used in financing activities was primarily driven by repurchases of common stock.

Current wording

Net cash used in financing activities during the thirty-nine weeks ended September 24, 2026 and September 25, 2025 was $154.2 million and $2.1 million, respectively. The increase in net cash used in financing activities was primarily driven by repurchases of common stock.

Previous wording

On June 24, 2026, the Company refinanced its senior secured term loan facility due February 14, 2027 with a new $200.0 million senior secured term loan facility due June 24, 2033. On June 24, 2026, the Company also refinanced its senior secured ABL facility maturing on August 4, 2027 with a new senior secured ABL facility maturing on June 24, 2031 in the same aggregate principal amount of $800.0 million. In connection with these refinancing transactions, the Company recognized a $1.3 million loss on extinguishment of debt during the thirteen weeks ended June 25, 2026. For additional information regarding the refinancing of the 2016 Term Loan Facility and 2016 ABL Facility, please refer to Note 3, “Debt” to our condensed consolidated financial statements included in this Quarterly Report.

Current wording

On June 24, 2026, the Company refinanced its senior secured term loan facility due February 14, 2027 with a new $200.0 million senior secured term loan facility due June 24, 2033. On June 24, 2026, the Company also refinanced its senior secured ABL facility maturing on August 4, 2027 with a new senior secured ABL facility maturing on June 24, 2031 in the same aggregate principal amount of $800.0 million. In connection with these refinancing transactions, the Company recognized a $1.3 million loss on extinguishment of debt during the thirty-nine weeks ended September 24, 2026. For additional information regarding the refinancing of the 2016 Term Loan Facility and 2016 ABL Facility, 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. government imposed significant additional tariffs on products from most countries where we source products. On February 20, 2026, the U.S. Supreme Court invalidated tariffs imposed under the authority of IEEPA. On March 4, 2026, the U.S. Court of International Trade ordered CBP to begin refunding all tariffs imposed under IEEPA. On April 20, 2026, CBP launched a formal process for submitting IEEPA refund claims, through which the Company filed its refund claims. As of June 25, 2026, the Company had received approximately $7 million in tariff refund payments. Subsequent to June 25, 2026, the Company has received substantially all expected IEEPA tariff refunds. For additional information regarding these tariff refunds, please refer to Note 5, “Commitments and Contingencies” to our condensed consolidated financial statements included in this Quarterly Report.

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. On February 20, 2026, the U.S. Supreme Court invalidated tariffs imposed under the authority of IEEPA. On March 4, 2026, the U.S. Court of International Trade ordered CBP to begin refunding all tariffs imposed under IEEPA. On April 20, 2026, CBP launched a formal process for submitting IEEPA refund claims, through which the Company filed its refund claims. As of September 24, 2026, the Company had received substantially all previously paid IEEPA tariffs. For additional information regarding these tariff refunds, please refer to Note 5, “Commitments and Contingencies” to our condensed consolidated financial statements included in this Quarterly Report.