Floor and Décor's Q2 Sales Down 0.2%, Earnings Down 20.7%

Atlanta, GA, August 5, 2024-Floor and Décor reported net sales of $1.1133 billion for Q2 2024, a decrease of 0.2% from $1.136 billion in Q2 2023. Comparable store sales decreased 9.0%.

Net income for Q2 2024 was $56.7 million, a decrease of 20.7% from $71.5 million in Q2 2023. 

In Q2, Floor and Décor opened five new warehouse stores, ending the quarter with 230 warehouse stores and five design studios.

For the first half of 2024, Floor and Décor’s net sales of $2.230 billion decreased 1.2% from $2.258 billion in the same period of 2023. Comparable store sales decreased 10.3%.

First half 2024 net income of $106.7 million decreased 25.4% from $143.0 million in the same period of 2023.

“By product, wood was the strongest category, up 3.2% y/y. Declines were seen in other categories, with tile down 3.3% YOY, and natural stone down 0.8% YOY. Another notable decline was seen in laminate/LVP, which was down 9.1% YOY, with only a little improvement from the 11.4% decline last quarter,” reports Truist.

Tom Taylor, chief executive officer, stated, “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. Consequently, our second quarter total and comparable store sales were modestly below our expectations. However, our gross margin rate exceeded our expectations, which, coupled with prudent expense management, helped mitigate most of the impact from weak sales. This dynamic enabled us to report fiscal 2024 second quarter diluted earnings per share of $0.52, compared with $0.66 in the same period last year. We continue to implement strategies designed to grow our market share while working prudently to manage our profitability and maintain a strong balance sheet in this challenging period.”

Taylor continued, “We opened five new warehouse stores in the second quarter and plan to open 30 in 2024, in line with our prior expectation of 30 to 35 stores. Looking forward to 2025, we believe it is prudent to open approximately 25 new warehouse stores in this muted market environment. These planned openings are long-term growth investments toward our plan to operate 500 warehouse-format stores in the United States over time and should further solidify our market share and position us for strong growth when industry fundamentals improve.”