Floor & Decor Holdings, Inc. Q4 FY2025 earnings call

2025 saw opening of 20 new warehouse-format stores; 2026 plans 20 new stores. Focus on new store productivity, Pro loyalty program relaunch, supply house capabilities enhancement. Aim to maintain gross margin by retail pricing actions, diversify product sourcing (China 3% in Q4 2025 vs 12.5% prior year). Piloting supply chain initiative to reduce lead times. West region outperformed company average. January comparable store sales up 0.4%, but February impacted by winter storm; Q1-to-date comps down 3.5%.

Fourth quarter sales reached $1.130 billion, up 2% year-over-year, while comparable store sales declined 4.8%. Full-year sales grew 5.1% to $4.684 billion, with comparable store sales down 1.8%. Pro customers accounted for approximately 50% of total sales. Fourth quarter gross profit increased $9.8 million or 2.0% to $233.7 million, with gross margin of 43.5% flat year-over-year. Full-year gross profit rose $115.7 million or 6.0% to $2.047 billion, with gross margin at 43.6% up 30 basis points. Spartan Surfaces fiscal 2025 sales increased ~13% to $243 million.

2026 sales expected $4.880 billion - $5.03 billion, up 4%-7% y-o-y; 53rd week contributes ~$65M. Comps estimated down 2% to up 1%. Gross margin ~43.5%-43.8%. SG&A as % of sales ~37.7%-37.8%. Interest expense net ~$5M. Tax rate ~21.5%-22.0%. Adjusted EBITDA ~$560M - $590M. Diluted EPS ~$1.98 - $2.18.

Macro-economic uncertainties affecting housing and flooring markets. Severe weather impact on operations. Tariff pressures and supply chain complexities. Softness in commercial multifamily housing affecting Spartan Surfaces.

Q: Peter Keith asks about Pro loyalty and supply chain acceleration.

A: Brad Paulsen mentions focus on new store performance, digital experience improvement, and supply chain productivity.

Q: Zach Fadem asks on comp guide and market impact.

A: Brad and Bryan Langley discuss Q1 comps impacted by storms, second half comps expected better, and regional performance.

Q: Chris Horvers asks on January comps spread and SG&A.

A: Bradley and Bryan answer on broad-based January comps, SG&A expense optimization.

Q: Michael Lasser asks on market share gains.

A: Thomas Taylor and Bryan Langley talk about share gains, cannibalization expectations, and future initiatives.

Q: Steven Forbes asks on commercial growth.

A: Brad Paulsen discusses Spartan Surfaces growth and commercial RAM build-out.

Q: Simeon Gutman asks on mature store comp and pricing.

A: Bradley and Bryan answer on mature vs immature store comps and pricing trade-offs.

Q: Maksim Rakhlenko asks on competitive price gaps.

A: Brad Paulsen talks about rational competitive environment and price gaps.

Q: Chuck Grom asks on new store productivity.

A: Brad Paulsen discusses store opening cadence impact.

Q: Seth Sigman asks on earnings outlook.

A: Bryan Langley talks about levers to manage earnings