Specialty flooring retailer Floor & Decor (NYSE: FND) missed Wall Street’s revenue expectations in Q1 CY2026, with sales flat year on year at $1.15 billion. The company’s full-year revenue guidance of $4.88 billion at the midpoint came in 2% below analysts’ estimates. Its GAAP profit of $0.37 per share was 9.3% below analysts’ consensus estimates.
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Floor And Decor (FND) Q1 CY2026 Highlights:
- Revenue: $1.15 billion vs analyst estimates of $1.19 billion (flat year on year, 2.8% miss)
- EPS (GAAP): $0.37 vs analyst expectations of $0.41 (9.3% miss)
- Adjusted EBITDA: $121.5 million vs analyst estimates of $127.5 million (10.5% margin, 4.7% miss)
- The company dropped its revenue guidance for the full year to $4.88 billion at the midpoint from $4.96 billion, a 1.5% decrease
- EPS (GAAP) guidance for the full year is $1.96 at the midpoint, missing analyst estimates by 5.3%
- EBITDA guidance for the full year is $562.5 million at the midpoint, below analyst estimates of $568.7 million
- Operating Margin: 4.5%, in line with the same quarter last year
- Free Cash Flow Margin: 4%, up from 0.4% in the same quarter last year
- Locations: 276 at quarter end, up from 254 in the same quarter last year
- Same-Store Sales rose 3.7% year on year (-1.8% in the same quarter last year)
- Market Capitalization: $5.15 billion
Company Overview
Operating large, warehouse-style stores, Floor & Decor (NYSE: FND) is a specialty retailer that specializes in hard flooring surfaces for the home such as tiles, hardwood, stone, and laminates.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years.
With $4.68 billion in revenue over the past 12 months, Floor And Decor is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers.
As you can see below, Floor And Decor grew its sales at a sluggish 2.4% compounded annual growth rate over the last three years.
This quarter, Floor And Decor missed Wall Street’s estimates and reported a rather uninspiring 0.7% year-on-year revenue decline, generating $1.15 billion of revenue.
Looking ahead, sell-side analysts expect revenue to grow 8.5% over the next 12 months, an acceleration versus the last three years. This projection is noteworthy and indicates its newer products will spur better top-line performance.
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Store Performance
Number of Stores
The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow.
Floor And Decor operated 276 locations in the latest quarter. It has opened new stores at a rapid clip over the last two years, averaging 11.6% annual growth, much faster than the broader consumer retail sector. This gives it a chance to scale into a mid-sized business over time.
When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.
Same-Store Sales
A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year.
Floor And Decor’s demand has been shrinking over the last two years as its same-store sales have averaged 2.5% annual declines. This performance is concerning - it shows Floor And Decor artificially boosts its revenue by building new stores. We’d like to see a company’s same-store sales rise before it takes on the costly, capital-intensive endeavor of expanding its store base.
In the latest quarter, Floor And Decor’s same-store sales rose 3.7% year on year. This growth was a well-appreciated turnaround from its historical levels, showing the business is regaining momentum.
Key Takeaways from Floor And Decor’s Q1 Results
It was good to see Floor And Decor narrowly top analysts’ gross margin expectations this quarter. On the other hand, its EBITDA missed and its revenue fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 5.5% to $45.73 immediately after reporting.
Floor And Decor’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
