Floor & Decor Holdings, Inc. Announces Third Quarter Fiscal 2020 Financial Results
Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the third quarter of fiscal 2020, which ended September 24, 2020.
Tom Taylor, Chief Executive Officer, stated, “We are very pleased with our fiscal 2020 third quarter earnings results, which reflected broad-based accelerating sales momentum throughout the quarter and strong earnings flow through. Our fiscal 2020 third quarter comparable store sales increased 18.4%. We are very pleased with our third quarter comparable store sales growth exit rate and the start to our fiscal 2020 fourth quarter. Our year-to-date comparable store sales through the third quarter of fiscal 2020 were flat with last year, a remarkable accomplishment considering COVID’s considerable impact to the operation of our stores in the second quarter of fiscal 2020. Our third quarter net sales increased to $684.8 million, an increase of 31.4% from the third quarter of fiscal 2019. Our third quarter adjusted EBITDA* improved meaningfully to a record $106.7 million, an increase of 86.8% from the third quarter of fiscal 2019. These strong third quarter earnings are the direct result of our associates’ responding tirelessly to the surging demand and the cross-functional collaboration among all our teams. We are encouraged that housing market conditions improved in the third quarter from low interest rates, the secular demand for housing and from homeowners’ undertaking projects to repurpose and personalize their homes to work, learn, exercise and play. These factors, among others, leave us optimistic about the remainder of fiscal 2020.”
Mr. Taylor continued, “We opened three new warehouse stores and one design center in the third quarter of fiscal 2020 and remain pleased with the performance of our new stores. We are on track to open a total of 13 new warehouse stores and one design center in fiscal 2020 and intend to grow our new warehouse stores by approximately 20% annually in fiscal 2021 and for the next several years.”
Please see “Comparable Store Sales” below for information on how the Company calculates its comparable store sales growth.
For the Thirteen Weeks Ended September 24, 2020
– Net sales increased 31.4% to $684.8 million from $521.1 million in the third quarter of fiscal 2019. Comparable store sales increased 18.4%.
– The Company opened three new warehouse-format stores and one design center during the third quarter of fiscal 2020, ending the quarter with 128 warehouse-format stores and two design centers.
– Operating income increased 151.0% to $78.8 million from $31.4 million in the third quarter of fiscal 2019. Operating margin increased 550 basis points to 11.5%.
– Net income increased 67.8% to $68.8 million compared to $41.0 million in the third quarter of fiscal 2019. Diluted EPS was $0.65 compared to $0.39 in the third quarter of fiscal 2019.
– Adjusted net income* increased 111.8% to $59.4 million compared to $28.1 million in the third quarter of fiscal 2019.
– Adjusted diluted EPS* was $0.56 compared to $0.27 in the third quarter of fiscal 2019, an increase of 107.4%.
– Adjusted EBITDA* increased 86.8% to $106.7 million compared to $57.1 million in the third quarter of fiscal 2019.
For the Thirty-nine Weeks Ended September 24, 2020
– Net sales increased 12.1% to $1,702.1 million from $1,518.5 million in the same period of fiscal 2019. Comparable store sales growth was flat compared to the same period of fiscal 2019.
– The Company opened eight new warehouse-format stores and one design center during the thirty-nine weeks ended September 24, 2020.
– Operating income increased 25.2% to $146.6 million from $117.1 million in the same period of fiscal 2019. Operating margin increased 90 basis points to 8.6%.
– Net income increased 19.6% to $137.8 million compared to $115.3 million in the same period of fiscal 2019. Diluted EPS was $1.30 compared to $1.10 in the same period of fiscal 2019.
– Adjusted net income* increased 16.9% to $109.2 million compared to $93.4 million in the same period of fiscal 2019.
– Adjusted diluted EPS* was $1.03 compared to $0.89 in the same period of fiscal 2019, an increase of 15.7%.
– Adjusted EBITDA* increased 22.6% to $225.4 million compared to $183.8 million in the same period of fiscal 2019.
*Non-GAAP financial measures. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.
The COVID-19 Pandemic Impact on Floor & Decor’s Business Outlook
The COVID-19 pandemic had a material negative impact on our financial results during the first two quarters of fiscal 2020. While our financial results improved during the third quarter of fiscal 2020 relative to the first half of the year, the full impact that the pandemic could have on our business remains highly uncertain. We continue to monitor the situation closely with regards to our associates, customers, business partners, and supply chain. However, given the evolving nature of the pandemic and uncertainty regarding its potential severity and duration, the full financial impact of the pandemic on our business cannot be reasonably estimated at this time.
Comparable Store Sales: Comparable store sales refer to period-over-period comparisons of our net sales among the comparable store base and is based on when the customer obtains control of the product, which is typically at the time of sale. A store is included in the comparable store sales calculation on the first day of the thirteenth full fiscal month following a store’s opening, which is when we believe comparability has been achieved. Since our e-commerce sales are fulfilled by individual stores, they are included in comparable store sales only to the extent the fulfilling store meets the above mentioned store criteria. Changes in our comparable store sales between two periods are based on net sales for stores that were in operation during both of the two periods. Any change in square footage of an existing comparable store, including remodels and relocations, does not eliminate that store from inclusion in the calculation of comparable store sales. Stores that are closed temporarily and relocated within their primary trade areas are included in comparable store sales. Additionally, any stores that were permanently closed during the current or prior fiscal year are excluded from the definition of comparable stores
For the full third quarter results, click here.
About Floor & Decor Holdings, Inc.
Floor & Decor is a multi-channel specialty retailer operating 128 warehouse-format stores and two design centers across 30 states at the end of the third quarter of fiscal 2020. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate/luxury vinyl plank, and natural stone along with decorative and installation accessories, at everyday low prices. The Company was founded in 2000 and is headquartered in Atlanta, Georgia.
Wayne Hood – Vice President of Investor Relations – firstname.lastname@example.org – (678) 505-4415
Source: Floor & Décor Holdings, Inc.