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what it is
It sells hard-surface flooring and install supplies through 270 giant warehouse stores across 39 states.
how it gets paid
Last year Floor & Decor made $4.7B in revenue. Tile was the main engine at $1.06B, or 23% of sales.
why it's growing
Revenue grew 5.1% last year. Sales rose 2% to $1.13 billion in the quarter.
what just happened
Floor & Decor posted Q4 EPS of $0.36, beating the $0.34 estimate, while comparable-store sales still fell 4.8%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
65/100 earnings predictability — reasonably predictable
34.8x trailing p/e — you're paying up for this one
7.5% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
It sells hard-surface flooring and install supplies through 270 giant warehouse stores across 39 states.
You go here when you want a lot of flooring in stock now, not a sample and a prayer. Floor & Decor runs 270 warehouse stores averaging 76,000 square feet, which gives pros and DIY buyers broad selection under one roof. Multi-channel specialty retailer → a focused chain selling in stores and online → so what: that scale helps keep gross margin at 43.7% even with soft demand.
How they make money
$4.7B
annual revenue · their business grew +5.1% last year
Tile
$1.06B
Wood flooring
$0.93B
Vinyl & resilient flooring
$0.89B
Laminate flooring
$0.52B
Natural stone
$0.45B
Decorative & installation accessories
$0.85B
The products that matter
hard-surface flooring retail
Hard Surface Flooring
$4.7B revenue · 100% of disclosed sales
it is the core $4.7B business. when transaction volume slows, as the recent 4.8% comp decline showed, this segment carries the hit.
core
installation materials and tools
Installation Accessories
sold inside the $4.7B revenue base
the company does not break this out separately, which is the honest answer here. what you do know is it rides inside a business earning 43.5% gross margin.
basket builder
physical retail expansion
Warehouse-Format Stores
270 locations · 8 opened last quarter
this is the growth lever. new stores can offset weak comps, but only if the added revenue lands faster than the added sg&a expense.
growth lever
Key numbers
34.8x
trailing p/e
P/E → how many dollars you pay for one dollar of profit → so what: you are paying a premium multiple for a retailer with 4.9% net margin.
43.7%
gross margin
Gross margin → sales left after product costs → so what: the merchandise model is healthy even while store-level demand is soft.
270
warehouse stores
270 stores across 39 states gives Floor & Decor room to keep taking share, especially with a stated path to at least 500 stores from web-supplementary evidence.
7.5%
return on capital
Return on capital → profit earned on the money put into the business → so what: expansion is growing, but the payoff is still ordinary.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $194M (3% of capital)
- net profit margin 4.9% — keeps 5 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in FND 3 years ago → it's now worth $7,550.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Floor & Decor posted Q4 EPS of $0.36, beating the $0.34 estimate, while comparable-store sales still fell 4.8%.
Sales rose 2% to $1.13 billion in the quarter, but that growth came with weak traffic in existing stores. Gross margin stayed firm at 43.5% as better product margins offset higher distribution costs.
$1.13B
revenue
$0.36
eps
43.5%
gross margin
the number that mattered
The 4.8% comparable-sales decline matters more than the EPS beat because comps tell you whether existing stores are healthy without help from new openings.
-
floor & decor turned in mixed results in the recent fourth quarter amid still-soft industry demand.
-
fourth-quarter sales increased 2%, to $1.13 billion, but comparable-store sales declined 4.8%, reflecting fewer transactions and continued pressure on larger renovation projects tied to weak existing-home sales.
-
the gross margin held steady at 43.5%, as favorable product margins offset higher distribution costs.
-
however, selling, general, and administrative expenses rose with new-store additions, leading to a decline in operating income and earnings per share of $0.36, compared with $0.44 in the year-ago period.the company opened eight new warehouse-format stores during the period and ended the year with 270 locations.
-
business prospects for 2026 and 2027 remain restrained.
source: company earnings report, 2026
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What could go wrong
the #1 risk is prolonged weakness in big-ticket flooring remodels tied to low existing-home sales.
med
housing turnover stays weak
flooring is a want-to-have purchase more often than a need-to-have one. when people move less, they remodel less.
proof beat: comparable-store sales already fell 4.8% while quarterly revenue rose only 2% to $1.13B.
med
new stores add costs before they add scale
the company opened eight stores in the quarter and now operates 270. that expands the runway, but it also raises sg&a in a soft demand backdrop.
with only a 4.9% net margin, cost creep does not need to be dramatic to pressure earnings.
med
the multiple leaves little room for a slow recovery
34.8x trailing earnings is a recovery stock valuation. the business is still showing slowdown stock fundamentals.
if comps stay negative and returns on capital remain at 8.5%, the stock can de-rate even without a balance-sheet problem.
a 4.8% comp decline in a $4.7B business with a 4.9% net margin is the math you should care about. small demand misses can turn into much larger earnings misses.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
the first number to read is comparable-store sales. it was down 4.8% last quarter, and that is the cleanest read on real demand.
trend
existing-home sales backdrop
larger flooring jobs often follow housing turnover. if that market stays weak, high-ticket projects stay under pressure.
risk
sg&a vs. new-store growth
eight openings in one quarter is growth. it is also expense. you want proof that new units are maturing into profit, not just revenue.
metric
gross margin durability
43.5% held up despite distribution pressure. if that starts slipping while comps stay negative, the earnings model gets tighter fast.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts see a stock behaving normally, not breaking out.
risk profile
average
stability score 3. you are not buying a bunker stock, but this is not a balance-sheet panic either.
chart momentum
below average
technical score 4. in human-speak, the chart has not earned the benefit of the doubt yet.
earnings predictability
65 / 100
that is decent, not pristine. expect a business that can surprise you when housing demand shifts.
source: institutional data
Institutional activity
153 buyers vs. 190 sellers in 4q2025. total institutional holdings: 0.1B shares.
source: institutional data
Price targets
3-5 year target range
$52
$135
$67
current price
$94
target midpoint · +41% from current · 3-5yr high: $125 (+85% · 17% ann'l return)
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