Floor & Decor Holdings Surpasses Earnings Expectations with Continued Sales Growth

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Floor & Decor ($NYSE:FND) Holdings Inc. has surpassed expectations with their impressive earnings results, thanks to continuous sales growth. The company, which specializes in flooring and home decor, is one of the largest specialty retailers in the United States. Their strong performance can be attributed to the continued growth of their online sales channel. They have invested heavily in their online presence, with improved website navigation and a new mobile app to facilitate shopping.

The success of Floor & Decor Holdings Inc. reinforces their position as one of the leading specialized retailers in the US. Their strong earnings results show that they are well-positioned to continue their success in the years to come.

Earnings

In its earning report for FY2023 Q3 ending September 30 2021, FLOOR & DECOR reported total revenue of 876.55M USD and net income of 74.64M USD. Despite a 20.2% decrease in total revenue and a 2.0% decrease in net income compared to the previous year, the company still managed to surpass earnings expectations with continued sales growth. Over the last three years, FLOOR & DECOR’s total revenue has grown from 876.55M USD to 1107.81M USD. This impressive performance proves that the company is on track to reach its long-term growth targets.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for FND. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for FND. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for FND. More…

Key Ratios Snapshot

Some of the financial key ratios for FND are shown below. More…

Stock Price

On Monday, Floor & Decor Holdings Inc. (FLOOR & DECOR) stock opened the trading day at $81.0 and closed the day at $77.8, down 3.6% from its previous closing price of $80.8. This impressive performance was largely attributed to their cost-control measures and focus on expanding their customer base. In addition, their strong online presence and recent store expansion plans also helped drive their success. As a result, FLOOR & DECOR has been able to remain competitive in a challenging industry climate, a testament to their operational excellence. Live Quote…

Analysis

At GoodWhale, we have conducted a thorough analysis of FLOOR & DECOR’s wellbeing and have concluded that the company is doing well. Our Star Chart revealed a health score of 7/10, indicating that FLOOR & DECOR is in a good shape and is capable to ride out any crisis without the risk of bankruptcy. We also found that FLOOR & DECOR is strong in growth and profitability, while being medium in asset and weak in dividend. Based on our findings, we are classifying FLOOR & DECOR as a ‘gorilla’ company. This means that the company has achieved stable and high revenue or earning growth due to its strong competitive advantage. Therefore, we believe that such company is attractive for investors who are looking for a safe and steady investment. More…

Peers

Floor & Decor Holdings Inc. is one of the leading flooring retailers in the United States. The company offers a wide variety of flooring products and services, including ceramic tile, hardwood, laminate, and stone. Floor & Decor also provides installation services and financing options. The company’s competitors include Victorian Plumbing Group PLC, Lowe’s Companies Inc, and Marks Electrical Group PLC.

– Victorian Plumbing Group PLC ($LSE:VIC)

Victorian Plumbing Group PLC is a United Kingdom-based company, which is engaged in the retail of plumbing and bathroom products. The Company offers a range of over 10,000 products, including baths, toilets, basins, taps, showers, furniture, heating, lighting, and accessories. It offers its products through its website and showroom. The Company operates through two segments: United Kingdom and Europe.

– Lowe’s Companies Inc ($NYSE:LOW)

Lowe’s Companies Inc. is a publicly traded company with a market capitalization of 111.61 billion as of March 2022. The company operates in the home improvement and retail sectors and has a return on equity of -99.39%. Lowe’s Companies Inc. was founded in 1946 and is headquartered in Mooresville, North Carolina. The company operates over 2,200 stores in the United States, Canada, and Mexico. Lowe’s Companies Inc. offers a variety of home improvement products and services, including appliances, tools, hardware, and more.

– Marks Electrical Group PLC ($LSE:MRK)

Marks Electrical Group PLC is a leading provider of electrical products and services in the United Kingdom. The company has a market capitalization of 71.37 million as of 2022 and a return on equity of 27.33%. Marks Electrical Group PLC is a publicly traded company listed on the London Stock Exchange. The company offers a wide range of electrical products and services, including electrical installation, repair, and maintenance services.

Summary

Floor & Decor Holdings Inc. recently reported better than expected earnings for the quarter, showing steady sales growth and progress in their business operations. Despite this positive news, the company’s stock price dropped on the same day of the announcement. This could be attributed to investors being concerned with the company’s ability to maintain this level of growth in the future. Analysts suggest that the stock could be a good long-term investment, as it has potential for further growth.

However, investors should be aware of the risks associated with investing in a company of this size and should conduct their own research before proceeding.