FND Stock Forecast & Price Target

Floor & Decor Holdings Inc. has reported a positive outlook, highlighted by an increase in the earnings per share (EPS) midpoint by 2% to a range of $1.87-$1.97, suggesting solid earnings performance. Total sales saw a notable increase of 5.5% to $1.18 billion, aligning with forecasts and indicating robust market demand despite a slight decline in comparable sales. Furthermore, the projected gross margin was raised to 43.6%-43.7%, reflecting strong product margins and operational improvements, which are expected to drive further growth into 2026.

Floor & Decor Holdings Inc has experienced a decline in EBIT margin of approximately 250 basis points from pre-COVID levels, largely due to negative same-store sales and ongoing store expansion. The company has adjusted its full-year comparable sales guidance to a range of -1% to -2%, anticipating continued sluggish trends through at least 2026, further compounded by a challenging home improvement market. Additionally, gross margin fell slightly to 43.4%, reflecting the negative comp trend, which has persisted in 10 out of the last 11 quarters, as consumer spending on larger projects diminishes.