Floor & Decor Holdings, Inc. reported a notable increase in financial performance for the second quarter of fiscal 2025, with net sales reaching $1.214 billion, a 7.1% increase from $1.133 billion in the same period last year. For the first half of the fiscal year, the company recorded net sales of $2.375 billion, up 6.5% from $2.230 billion in the prior year. The growth in revenue was primarily attributed to the addition of 28 new warehouse-format stores since June 2024, alongside a modest increase in comparable store sales of 0.4% for the quarter. Gross profit also saw an increase, rising to $532.7 million for the quarter, up 8.5% year-over-year, with gross margin improving to 43.9%.
In terms of profitability, Floor & Decor's operating income for the second quarter was $81.9 million, reflecting a 14.8% increase from $71.3 million in the prior year. The company reported a net income of $63.2 million for the quarter, an 11.5% increase compared to $56.7 million in the same period last year. The effective tax rate for the quarter was 21.8%, up from 19.8% in the previous year, primarily due to a decrease in excess tax benefits related to stock-based compensation.
Operationally, the company maintained a total of 257 warehouse-format stores and five design studios as of June 26, 2025. The increase in selling and store operating expenses was driven largely by costs associated with new store openings, which totaled $376.2 million for the quarter, up 10.2% from the previous year. The company also reported a decrease in pre-opening expenses, which fell by 51.8% due to fewer new store openings compared to the prior year.
Looking ahead, Floor & Decor plans to continue its expansion strategy, with capital expenditures projected between $280 million to $320 million for fiscal 2025. This includes investments in new store openings, distribution centers, and technology infrastructure. The company expects that cash generated from operations, along with available borrowings under its $800 million asset-based loan facility, will be sufficient to meet its liquidity needs and support its growth initiatives in the coming year.
Despite the positive financial results, the company acknowledged potential risks, including the impact of economic conditions on consumer spending, supply chain disruptions, and geopolitical uncertainties that could affect its operations and profitability. Floor & Decor remains focused on managing these risks while continuing to enhance its market position in the hard surface flooring industry.
About Floor & Decor Holdings, Inc.
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