Floor & Decor sees mixed results in Q2
Floor & Decor reported second net sales increased 4.2% to $1.13 billion compared to second quarter 2022 sales of $1.09 billion.
Comparable store sales decreased 6% during the period, however.
The Atlanta-based home improvement retailer also posted a net income of $71.5 million, down 12.7% from a net income of $81.8 million for the same period year ago.
For the first six months of 2023, Floor & Decor sales moved ahead 6.6% to $2.25 billion but comp sales have decreased 4.7%.
In the first half of 2023, Floor & Decor also had a net income of $143 million, falling 6.4% from a net income of $152.8 million in the first six months of 2022.
CEO Tom Taylor cited low existing-home sales and high mortgage rates as some of the challenges Floor & Decor faced during the quarter.
The retailer opened 9 warehouse stores in the second quarter and ended the period with 203 warehouse stores along with 5 design studios.
The company has opened 12 new warehouse stores in total during the first half of 2023 and said it is still on track to open 32 new locations this year.
Floor & Decor updated its outlook for its fiscal year ending Dec. 28 and expects sales to be in the range of $4.46 billion to $4.53 billion. But the retailer said comp sales are likely to drop by 5.5% to 7% for the year.
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The Bottom Line: While sales move forward 4.2% for the quarter, profits slide 10.7% to $71.5 million.
What the CEO said: “Amidst the economic challenges of rising mortgage interest rates and near-record-low existing home sales, we are pleased to deliver second-quarter diluted earnings per share of $0.66, which was above our expectations,” said CEO Tom Taylor. “We are focused on what we can control by executing our growth and customer service strategies at a high level and effectively managing our profitability during this challenging period where sales are modestly below our expectations. As consumers prioritize value and savings, we intend to continue to grow our market share by capitalizing on our everyday low prices and value options, trend-forward broad assortments, in-stock job lot quantities, and the exceptional customer service provided by our store associates.”
Company Info: Click here to read the full second quarter 2023 financial report from Floor & Decor.
