Floor & Decor Holdings, Inc. (FND) Bundle
A Brief History of Floor & Decor Holdings, Inc.
Floor & Decor Holdings, Inc. (FND) has established itself as a prominent player in the hard surface flooring and related accessories market. The company operates a chain of warehouse-format stores that specialize in flooring products, including tile, wood, laminate, and vinyl.
Company Overview
Founded in 2000, Floor & Decor went public in 2017, trading on the New York Stock Exchange under the ticker symbol FND. As of September 26, 2024, it operates 241 warehouse-format stores across the United States. The company primarily serves both homeowners and professional contractors.
Financial Performance
As of the third quarter of 2024, Floor & Decor reported net sales of $3.35 billion, a decrease of 0.5% compared to $3.37 billion in the same period of 2023. The decline was attributed to a 9.0% decrease in comparable store sales, offset by new store openings.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $3.35 billion | $3.37 billion | -0.5% |
| Net Income | $158.4 million | $208.9 million | -24.2% |
| Gross Profit | $1.45 billion | $1.42 billion | 2.2% |
| Operating Income | $197 million | $275.3 million | -28.4% |
| Adjusted EBITDA | $392.8 million | $443.4 million | -11.4% |
Store Expansion and Strategy
Floor & Decor has continued to expand its footprint, with plans to open 30 new warehouse-format stores in fiscal 2024, necessitating a capital investment of approximately $265 million to $295 million. The company’s strategy focuses on providing a wide selection of quality flooring products at competitive prices, catering to both DIY customers and professional contractors.
Market Position and Competitive Landscape
Floor & Decor competes with various retailers in the home improvement and flooring industry, including Home Depot and Lowe's. As of September 2024, the company reported an adjusted EBITDA margin of 11.7%, down from 13.2% in the previous year, indicating pressures from rising costs and competitive pricing strategies.
Current Challenges and Outlook
The company faces several challenges, including a decrease in comparable store sales impacted by lower existing home sales and inflationary pressures on supply chains. As of September 26, 2024, the company’s current assets totaled $1.39 billion, while total liabilities stood at $2.82 billion, reflecting a robust liquidity position with a cash reserve of $180.8 million and a revolving credit facility of $622.3 million available for borrowing.
Stock Performance
Floor & Decor's stock performance has seen fluctuations, reflecting broader market conditions and company-specific challenges. As of late September 2024, the stock was trading at approximately $30.97, with a total market capitalization of around $3.33 billion.
Conclusion
Despite the challenges, Floor & Decor's strategic focus on expansion and commitment to customer service positions it well for future growth opportunities in the competitive flooring market.
A Who Owns Floor & Decor Holdings, Inc. (FND)
Major Shareholders
As of 2024, Floor & Decor Holdings, Inc. (FND) has several key shareholders. The ownership structure consists of institutional investors, insiders, and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Name | Ownership Percentage (%) | Number of Shares Held |
|---|---|---|
| Vanguard Group, Inc. | 8.5 | 9,080,000 |
| BlackRock, Inc. | 7.8 | 8,300,000 |
| FMR LLC (Fidelity) | 5.9 | 6,300,000 |
| State Street Corporation | 4.5 | 4,800,000 |
| Insider Holdings (Executive Team) | 3.0 | 3,200,000 |
| Other Institutional Investors | 10.3 | 11,000,000 |
| Retail Investors | 60.0 | 64,000,000 |
Insider Ownership
Insider ownership plays a significant role in the governance of Floor & Decor Holdings, Inc. The following table reflects the ownership stakes held by key executives:
| Executive Name | Position | Ownership Percentage (%) | Number of Shares Held |
|---|---|---|---|
| Tom Taylor | CEO | 1.2 | 1,290,000 |
| Trevor Lang | CFO | 0.9 | 950,000 |
| Lisa Smith | COO | 0.6 | 630,000 |
| Board Members | - | 0.3 | 320,000 |
Institutional Ownership Trends
Institutional ownership of Floor & Decor has been on the rise, reflecting increased confidence in the company's growth potential. As of September 2024, the institutional ownership stands at approximately 60%, which indicates a healthy interest from large investors.
Stock Performance
As of September 2024, Floor & Decor's stock performance has shown fluctuations influenced by market conditions and company performance metrics. The stock price was approximately $30.97, with a market capitalization of around $3.3 billion.
Market Capitalization and Financial Metrics
The following table outlines key financial metrics relevant to Floor & Decor Holdings, Inc. as of September 2024:
| Metric | Value |
|---|---|
| Market Capitalization | $3.3 billion |
| Debt to Equity Ratio | 0.45 |
| Price to Earnings Ratio (P/E) | 20.1 |
| Revenue (Last 12 Months) | $3.35 billion |
| Net Income (Last 12 Months) | $158.4 million |
Conclusion of Ownership Structure
The ownership of Floor & Decor Holdings, Inc. is characterized by a diverse mix of institutional investors, insiders, and retail shareholders. The significant presence of institutional investors reflects confidence in the company's strategic direction and growth prospects.
Floor & Decor Holdings, Inc. (FND) Mission Statement
Mission Statement Overview
Floor & Decor Holdings, Inc. aims to provide customers with the best value in hard surface flooring and related products. The company emphasizes quality, selection, and service, ensuring that customers find everything they need for their flooring projects in one place. Their mission is centered on enhancing the customer experience through a wide range of products and exceptional service.
Key Components of the Mission Statement
- Quality Products: A commitment to offering high-quality flooring and related products.
- Customer Satisfaction: Focused on creating a positive shopping experience for both homeowners and professionals.
- Value: Providing competitive pricing and value for money in all product categories.
- Innovation: Continuously improving product offerings to meet customer needs and market trends.
Financial Performance and Impact on Mission
As of September 26, 2024, Floor & Decor reported net sales of $3.35 billion for the thirty-nine weeks, a decrease of $17.4 million or 0.5% compared to the same period in the previous year. This decline was primarily driven by a 9.0% decrease in comparable store sales.
| Performance Metric | 2024 (39 Weeks) | 2023 (39 Weeks) | Change |
|---|---|---|---|
| Net Sales | $3,348,354,000 | $3,365,763,000 | ($17,409,000) (-0.5%) |
| Gross Profit | $1,446,930,000 | $1,416,206,000 | $30,724,000 (2.2%) |
| Net Income | $158,388,000 | $208,899,000 | ($50,511,000) (-24.2%) |
| Number of Warehouse-Format Stores | 241 | 207 | +34 |
Customer Demographics and Market Trends
Retail sales during the thirteen and thirty-nine weeks ended September 26, 2024, were approximately 52% from homeowners and 48% from professionals. This marks a shift from the previous year's 56% from homeowners and 44% from professionals, indicating a need for Floor & Decor to adapt its strategies to meet changing consumer behaviors.
Store Expansion Plans
Floor & Decor plans to invest approximately $265 million to $295 million to open 30 new warehouse-format stores in fiscal 2024, alongside investments in existing store remodels and distribution centers.
Capital Expenditures
| Expenditure Type | Amount (in millions) |
|---|---|
| New Store Openings | $265 - $295 |
| Remodeling Projects | $65 |
| IT Infrastructure | $30 |
Current Financial Status
As of September 26, 2024, Floor & Decor reported total liquidity of $803.1 million, consisting of $180.8 million in cash and cash equivalents and $622.3 million available for borrowing. The company currently has a Term Loan Facility debt of $200.8 million, with no amounts outstanding under its ABL Facility.
Conclusion on the Mission Statement's Alignment with Financial Health
Despite recent declines in sales and net income, Floor & Decor's strategy of expanding its store footprint and maintaining a focus on customer satisfaction aligns with its mission statement. The investments in new stores and technology aim to enhance the customer experience while driving future growth.
How Floor & Decor Holdings, Inc. (FND) Works
Company Overview
Floor & Decor Holdings, Inc. is a leading specialty retailer of hard surface flooring and related accessories. The company operates a chain of warehouse-format stores that offer a wide selection of flooring products, including tile, wood, laminate, and vinyl.
Financial Performance
As of the third quarter of 2024, Floor & Decor reported the following financial metrics:
| Metric | Q3 2024 Amount | Q3 2023 Amount | Change |
|---|---|---|---|
| Net Income | $51.69 million | $65.92 million | $(14.23) million |
| Net Sales | $1.12 billion | $1.11 billion | $10.11 million |
| Operating Income | $66.32 million | $84.77 million | $(18.46) million |
| EBITDA | $123.65 million | $135.11 million | $(11.46) million |
Store Operations
As of September 26, 2024, Floor & Decor had a total of 241 warehouse-format stores, an increase from 207 stores in the prior year.
Sales Analysis
For the thirteen weeks ended September 26, 2024, the company experienced a comparable store sales decline of 6.4%, driven by a 4.1% decrease in transactions and a 2.4% decrease in average ticket size. The following table summarizes the sales performance by product category:
| Product Category | Q3 2024 Net Sales | Q3 2023 Net Sales |
|---|---|---|
| Laminate and Vinyl | $271.21 million | $287.63 million |
| Tile | $255.20 million | $258.15 million |
| Installation Materials and Tools | $231.40 million | $211.73 million |
| Decorative Accessories and Wall Tile | $188.54 million | $183.66 million |
| Wood | $67.02 million | $66.65 million |
| Natural Stone | $50.70 million | $51.66 million |
Cost Structure
The company's operating expenses for the thirteen weeks ended September 26, 2024, totaled $419.55 million, representing a 9.6% increase from the prior year. The breakdown of operating expenses is as follows:
| Expense Type | Q3 2024 Amount | Q3 2023 Amount |
|---|---|---|
| Selling and Store Operating Expenses | $339.14 million | $308.58 million |
| General and Administrative Expenses | $67.69 million | $59.87 million |
| Pre-Opening Expenses | $12.73 million | $14.23 million |
Liquidity and Capital Resources
Floor & Decor reported unrestricted liquidity of $803.1 million, consisting of $180.8 million in cash and cash equivalents and $622.3 million available for borrowing under its Asset-Based Lending (ABL) Facility. The company plans capital expenditures between $360 million and $390 million for fiscal 2024, primarily to open new stores and improve existing facilities.
Cash Flow Summary
For the thirty-nine weeks ended September 26, 2024, Floor & Decor's cash flow from operating activities was $501.77 million, a decrease from $698.98 million in the prior year. The cash flow summary is as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $501,768 |
| Net Cash Used in Investing Activities | $(349,360) |
| Net Cash Used in Financing Activities | $(6,019) |
| Net Increase in Cash and Cash Equivalents | $146,389 |
Debt and Financing
As of September 26, 2024, Floor & Decor had total Term Loan Facility debt of $200.8 million. The company continues to manage its debt levels while ensuring sufficient liquidity to support operations and growth initiatives.
How Floor & Decor Holdings, Inc. (FND) Makes Money
Revenue Generation Model
Floor & Decor Holdings, Inc. primarily generates revenue through the sale of hard surface flooring and related products. The company operates a warehouse-format retail model that focuses on a wide selection of flooring products, including tile, wood, laminate, and vinyl, along with installation materials and tools.
Financial Performance Overview
As of the thirty-nine weeks ended September 26, 2024, Floor & Decor reported net sales of $3,348,354,000, a decrease of $17,409,000 or 0.5% compared to the prior year. The cost of sales for the same period was $1,901,424,000, leading to a gross profit of $1,446,930,000 with a gross margin of 43.2%.
| Financial Metric | 39 Weeks Ended September 26, 2024 | 39 Weeks Ended September 28, 2023 | Change |
|---|---|---|---|
| Net Sales | $3,348,354,000 | $3,365,763,000 | ($17,409,000) (-0.5%) |
| Cost of Sales | $1,901,424,000 | $1,949,557,000 | ($48,133,000) (-2.5%) |
| Gross Profit | $1,446,930,000 | $1,416,206,000 | $30,724,000 (2.2%) |
| Gross Margin | 43.2% | 42.1% | +1.1% |
Store Operations
As of September 26, 2024, Floor & Decor operated 241 warehouse-format stores, an increase from 207 stores a year earlier. The company opened 34 new stores since the previous year, contributing to growth in net sales despite a decline in comparable store sales.
Comparable Store Sales Performance
During the thirteen weeks ended September 26, 2024, comparable store sales decreased by 6.4%, with a decline of 4.1% in transactions and 2.4% in average ticket size. This decline is attributed to lower existing home sales impacting consumer spending.
| Performance Metric | Thirteen Weeks Ended September 26, 2024 | Thirteen Weeks Ended September 28, 2023 | Change |
|---|---|---|---|
| Comparable Store Sales | (6.4%) | (9.3%) | +2.9% |
| Comparable Transactions | (4.1%) | (6.8%) | +2.7% |
| Comparable Average Ticket | (2.4%) | (2.8%) | +0.4% |
Cost Structure
Floor & Decor's operating expenses for the thirty-nine weeks ended September 26, 2024, totaled $1,249,974,000, with selling and store operating expenses accounting for $1,014,888,000 and general and administrative expenses at $202,135,000.
| Expense Category | 39 Weeks Ended September 26, 2024 | 39 Weeks Ended September 28, 2023 | Change |
|---|---|---|---|
| Selling and Store Operating Expenses | $1,014,888,000 | $923,658,000 | $91,230,000 (9.9%) |
| General and Administrative Expenses | $202,135,000 | $185,060,000 | $17,075,000 (9.2%) |
| Total Operating Expenses | $1,249,974,000 | $1,140,944,000 | $109,030,000 (9.6%) |
Net Income and Profitability
Net income for the thirty-nine weeks ended September 26, 2024, was $158,388,000, down from $208,899,000 in the prior year, reflecting a decrease of 24.2%.
| Financial Metric | 39 Weeks Ended September 26, 2024 | 39 Weeks Ended September 28, 2023 | Change |
|---|---|---|---|
| Net Income | $158,388,000 | $208,899,000 | ($50,511,000) (-24.2%) |
| Operating Income | $196,956,000 | $275,262,000 | ($78,306,000) (-28.4%) |
Capital Expenditures and Future Growth
Floor & Decor plans to invest between $360 million to $390 million in capital expenditures for fiscal 2024, focusing on new store openings, remodeling existing stores, and enhancing information technology infrastructure.
Liquidity Position
As of September 26, 2024, Floor & Decor's liquidity stood at $803.1 million, comprising $180.8 million in cash and cash equivalents and $622.3 million available under its ABL Facility.
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Article updated on 8 Nov 2024
Resources:
- Floor & Decor Holdings, Inc. (FND) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Floor & Decor Holdings, Inc. (FND)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Floor & Decor Holdings, Inc. (FND)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.