Floor & Decor Reports 3% Net Sales Increase to $1.25 Billion in Q2 Fiscal 2026

Floor & Decor Holdings, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a net sales increase of $36.1 million, or 3.0%, to $1.25 billion compared to the same period last year. For the first half of the fiscal year, net sales reached $2.40 billion, up $27.7 million, or 1.2%. The company's gross profit for the quarter was $603.1 million, reflecting a 13.2% increase from the prior year, while gross margin improved to 48.2%, up from 43.9%. The increase in gross profit was significantly aided by a one-time benefit of $56.2 million from the recognition of IEEPA tariff refunds.

In terms of profitability, Floor & Decor's operating income surged by 51.4% to $124.0 million for the second quarter, and net income rose 51.7% to $95.9 million. The company reported basic earnings per share of $0.89, compared to $0.59 in the same quarter last year. The increase in operating income was attributed to the higher gross profit and a relatively modest increase in selling, general, and administrative (SG&A) expenses, which rose by 6.3% to $479.1 million.

Operationally, Floor & Decor opened 11 new warehouse-format stores during the first half of the fiscal year, bringing the total to 281 stores across 39 states. The company also reported a decline in comparable store sales of 2.1% for the quarter, driven by a 2.9% decrease in transactions, although this was partially offset by a 0.8% increase in the average ticket size. The company’s customer base remains diverse, with approximately 45% of retail sales coming from homeowners and 55% from professional contractors.

Strategically, Floor & Decor refinanced its senior secured term loan and asset-based loan facilities in June 2026, securing a new $200 million term loan due in 2033 and an $800 million asset-based loan facility due in 2031. This refinancing is expected to enhance liquidity and financial flexibility. The company also initiated a share repurchase program, authorizing up to $400 million in stock buybacks, with $334.3 million remaining as of the end of the reporting period.

Looking ahead, Floor & Decor anticipates continued challenges from macroeconomic factors, including high interest rates and weak home sales, which may impact consumer spending. The company plans to invest between $240 million and $275 million in capital expenditures for fiscal 2026, focusing on new store openings and enhancements to existing locations. Despite the current economic headwinds, Floor & Decor remains committed to its growth strategy and aims to leverage its strong market position in the hard surface flooring sector.