Floor & Decor outlines growth strategy
During its investor conference, held this morning, Floor & Decor outlined its strategic and financial goals through 2024.
The rapidly growing Atlanta-based retailer said it expects net sales growth of at least 20% as measured over a three-year compounded annual growth period.
Floor & Decor also forecasted warehouse format store growth of 20%. As of Dec. 31, 2021, the company operated 160 warehouse stores and two design centers in 33 states.
But the retailer has already been active in 2022 with the opening of four new stores in Garden City, N.Y.; Monona, Wis.; and San Antonio and McAllen, Texas along with two new design centers in Houston and Miami.
“We just completed our most successful year on record in 2021, and we are incredibly proud of what we have achieved over the last decade, but we still believe our best days are yet in the future,” said Tom Taylor, CEO of Floor & Decor.
Last month Floor & Decor reported fourth quarter 2021 sales soared by 26.4% to $914.3 million from fourth quarter 2020 sales of $723.7 million as comp sales for the quarter increased 14%.
For the full year, Floor & Decor sales jumped 41.5% to $3.43 billion as compared to sales of $2.43 billion in 2020.
During its fourth quarter presentation, Floor & Decor said it plans to open 32 locations this year with as many as 500 openings over the next 8 to 10 years.
Reflecting on recent success, Taylor said that the company has made “thoughtful and meaningful investments year after year to continually differentiate our retail and commercial hard surface flooring models and our customers are rewarding us with continued sales and market share growth.”
Regarding 2022, Taylor said the company has already seen “strong momentum in business” in the first quarter.”
Other financial targets Floor & Decor has put forth include its adjusted operating income approximately doubling from 2021 to 2024, representing approximately 25% growth when measured over a three-year compounded annual growth period.
Floor & Decor also said that it plans to maintain low balance sheet leverage and prioritize operating cash flow back into the business to support 20% new warehouse-format store growth.
