ATLANTA - Floor & Decor Holdings, Inc. (NYSE:FND) shares fell 5% in after-hours trading on Thursday after the specialty retailer reported second-quarter earnings and revenue that missed analyst expectations and provided weaker-than-expected full-year guidance.
The company reported adjusted earnings per share of $0.52, slightly above the analyst estimate of $0.51. However, revenue came in at $1.13 billion, below the consensus forecast of $1.15 billion. Comparable store sales decreased 9.0% YoY.
For the full fiscal year 2024, Floor & Decor now expects revenue between $4.4 billion and $4.49 billion, below the analyst consensus of $4.57 billion. The company also lowered its comparable store sales guidance to a decline of 6.5% to 8.5%.
"We and our industry continue to contend with monetary policy affecting the housing market and repair and remodeling spending, including ongoing soft demand for large project discretionary hard surface flooring," said CEO Tom Taylor in a statement.
Despite the challenging environment, Taylor noted that the company's gross margin rate exceeded expectations, which helped mitigate most of the impact from weak sales.
Floor & Decor opened five new warehouse stores in Q2 and plans to open a total of 30 new locations in 2024. However, the company said it will slow its expansion to approximately 25 new warehouse stores in 2025 due to the "muted market environment."
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