Floor & Decor has big Q4 sales and bigger expansion plans
Rapidly rising specialty home improvement retailer Floor & Decor reported fourth quarter sales soared by 26.4% to $914.3 million from fourth quarter 2020 sales of $723.7 million.
The Atlanta-based company also reported that comp sales for the fourth quarter increased 14% compared to the previous fourth quarter.
During the period, Floor & Decor opened seven new warehouse stores. As of the end of the fourth quarter, the retailer operated 160 warehouse stores and two design centers in 33 states.
Looking ahead, Floor & Decor announced that it plans to open 32 new warehouse stores in 2022 and has even bigger expansion plans for the next 8 to 10 years with the opening of as many as 500 new locations.
For the full year, Floor & Decor sales jumped 41.5% to $3.43 billion as compared to sales of $2.43 billion in 2020.
Comp sales for the full year sizzled and increased by 27.6% as the company opened 27 new locations in 2021.
Floor & Decor posted a fourth quarter net income of $47.1 million, down 6.1% compared to a net income of $50.2 million for the same period last year. The retailer’s 2021 full-year net income increased by 45.3% to $283.2 million, however.
On the leadership front, Floor & Decor announced the promotion of Ersan Sayman to executive vice president of merchandising.
Sayman will report to Lisa Laube, Floor & Decor president, until her April 2022 retirement. After, Sayman will report to Tom Taylor, company CEO.
Sayman, a 19-year veteran of the company and most recently served as senior vice president of merchandising.
“Ersan is an extraordinary leader and has been instrumental in the tremendous growth of the company,” Laube said. “During his tenure at Floor & Decor, Ersan has excelled in every role, improving our product assortments, solidifying our vendor partnerships, expanding our competitive differentiation, and building out a world-class merchandising team.
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The Bottom Line: While profits fade 6.1% in the final quarter of 2021, sales are up more than 26% and full-year earnings rise by 45.3%.
What the CEO said: “As we look beyond 2022, we are excited to announce that we have expanded our new store opportunity in the United States,” said Tom Taylor, CEO of Floor & Decor. “We now believe there is a path to operating at least 500 warehouse-format stores over the next 8 to 10 years compared with our prior market expectations of operating at least 400 warehouse-format stores.”
Company info: Click here to read the full fourth quarter 2021 financial report fro Floor & Decor Holdings.