Floor & Decor Holdings, Inc. Announces First Quarter Fiscal 2022 Financial Results
Floor & Decor Holdings, Inc. (“We,” “Our,” the “Company,” or “Floor & Decor”) announces its financial results for the first quarter of fiscal 2022, which ended March 31, 2022.
Tom Taylor, Chief Executive Officer, stated, “We entered fiscal 2022 with good momentum in our business and are pleased to deliver first-quarter sales and earnings that exceed expectations, especially considering our record sales and earnings last year. The strong first-quarter performance directly results from our store, commercial, and support teams successfully executing our growth strategies in a dynamic and challenging industry-wide operating environment. We believe that our competitive moat from a product, price, and access to inventory standpoint has never been stronger, giving us added confidence in our ability to continue to grow our market share despite a wide range of macro-economic challenges.”
Mr. Taylor continued, “We opened six new warehouse-format stores in the first quarter, including our first store in Portland, Oregon and fourth store on Long Island in Garden City, New York, and are pleased with their early performance. We also opened three design studios in the first quarter. We remain on plan to open nine warehouse-format stores in the second quarter and 32 total warehouse-format stores in fiscal 2022. We project a path towards operating at least 500 warehouse-format stores over time, implying we would be only 38% built out by the end of fiscal 2022.”
Please see “Comparable Store Sales” below for information on how the Company calculates its comparable store sales growth.
For the Thirteen Weeks Ended March 31, 2022
- Net sales increased 31.5% to $1,028.7 million from $782.5 million in the first quarter of fiscal 2021.
- Comparable store sales increased 14.3%.
- We opened six new warehouse stores and three design studios during the first quarter of fiscal 2022, ending the quarter with 166 warehouse stores and five design studios.
- Operating income decreased 2.1% to $94.0 million from $95.9 million in the first quarter of fiscal 2021. Operating margin decreased 320 basis points to 9.1%.
- Net income decreased 6.4% to $71.0 million compared to $75.8 million in the first quarter of fiscal 2021. Diluted EPS was $0.66 compared to $0.71 in the first quarter of fiscal 2021, a decrease of 7.0%.
- Adjusted net income* decreased 1.5% to $71.6 million compared to $72.7 million in the first quarter of fiscal 2021. Adjusted diluted EPS* was $0.67 compared to $0.68 in the first quarter of fiscal 2021, a decrease of 1.5%.
- Adjusted EBITDA* increased 6.8% to $135.8 million compared to $127.1 million in the first quarter of fiscal 2021.
*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
We continue to monitor the impact of the COVID-19 pandemic on 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 COVID-19 pandemic on our business cannot be reasonably estimated at this time. The extent of the impact of the COVID-19 pandemic on our business and financial results will depend on future developments, including the duration of the COVID-19 pandemic, the success of vaccination programs, the spread of COVID-19 within the markets in which we operate, the impact to countries from which we source inventory, fixed assets, and other supplies, the effect of the pandemic on consumer confidence and spending, and actions taken by government entities in response to the pandemic, all of which are highly uncertain.
Reaffirmed Outlook for the Fiscal Year Ending December 29, 2022:
- Net sales of approximately $4,285 to $4,375 million
- Comparable store sales growth of approximately 10.5% to 13.0%
- Diluted EPS to be in the range of $2.75 to $3.00
- Adjusted EBITDA in the range of $575 million to $610 million
- Depreciation and amortization expense of approximately $151 million
- Interest expense, net of approximately $7 million
- Tax rate of approximately 24%, excluding tax benefits resulting from stock option exercises and the vesting of restricted stock and restricted stock units
- Diluted weighted average shares outstanding of approximately 108.4 million shares
- Open 32 new warehouse-format stores and four small design studios
- Capital expenditures in the range of approximately $550 million to $590 million
Comparable Store Sales
Comparable store sales refer to period-over-period comparisons of our net sales among the comparable store base and are 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. 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 the square footage of an existing comparable store, including for remodels and relocations within the same primary trade area of the existing store being relocated, does not eliminate that store from inclusion in the calculation of comparable store sales. Stores that are closed for a full fiscal month or longer are excluded from the comparable store sales calculation for each full fiscal month that they are closed. Since our e-commerce, regional account manager, and design studio 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. Sales through our Spartan Surfaces, LLC (“Spartan”) subsidiary do not involve our stores and are therefore excluded from the comparable store sales calculation.
For the full first quarter results, click here.
About Floor & Decor Holdings, Inc.
Floor & Decor is a multi-channel specialty retailer and commercial flooring distributor operating 166 warehouse-format stores and five design studios across 34 states at the end of the first quarter of fiscal 2022. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate, vinyl, and natural stone along with decorative accessories and wall tile, installation materials, and adjacent categories at everyday low prices. The Company was founded in 2000 and is headquartered in Atlanta, Georgia.
Wayne Hood – Vice President of Investor Relations – email@example.com – (678) 505-4415
Source: Floor & Decor Holdings, Inc.