Floor & Decor posts mixed Q3 results
Citing a challenging economy, Floor & Decor reported third quarter sales edged ahead 0.9% to $1.108 billion from third quarter 2022 sales of $1.098 billion.
Comparable store sales decreased 9.3%, however.
The home improvement retailer also posted a net income of $65.9 million, falling 13.5% from a net income of $76.2 million in the prior third quarter.
During the third quarter, Floor & Decor opened five new warehouse stores and closed one warehouse store. The retailer ended the period with 207 warehouse stores and five design studios in 36 states.
For the first nine months of 2023, the Atlanta-based company has opened 17 new warehouse stores and closed one warehouse store. Sales have increased 4.6% to nearly $3.4 billion for the nine-month period, but comp sales have decreased 6.3%
Floor & Decor’s net income through the first three quarters of 2023 is down 8.8% to $208.9 million compared to $229.0 million for the first three quarters of 2022.
The Bottom Line: New store openings help push Floor & Decor sales ahead slightly while profits see a 13.5% decrease in the third quarter.
What the CEO said: Amidst the continuing economic challenges posed by rising mortgage interest rates, near-record-low existing home sales, ongoing pressure on housing affordability, and slowing sales of large ticket discretionary products, we are pleased to deliver third-quarter diluted earnings per share of $0.61,” said Floor & Decor CEO Tom Taylor. “Our fiscal 2023 third-quarter results are a testament to our company’s agility and unwavering commitment to executing our key growth and customer engagement strategies at an exceptional level.”
Taylor noted that the company plans to open 15 new stores in the fourth quarter and achieve its goal of 32 new store openings for fiscal 2023.
Company Info: Click here for the full third quarter 2023 financial report from Floor & Decor.
