FND Stock Forecast & Price Target

Floor & Decor Holdings Inc. is projected to achieve a sales increase of 8.0% year-over-year in 2Q25, reaching approximately $1.2 billion, supported by new unit growth and a modest comp increase. The company's gross margin is expected to expand by 70 basis points to 44.0%, fueled by lower transportation costs and enhancements in its supply chain, which contributes positively to profitability metrics. Additionally, the design services segment has shown robust year-over-year growth, reflecting an increase in customer transactions, further enhancing the company’s financial outlook.

Floor & Decor Holdings Inc has recently reduced its full-year comparable sales guidance to a forecast of negative 1% to 2%, indicating anticipated challenges in Q4 with year-to-date trends showing a decline of 2% year-over-year. The company also experienced a slight contraction in its gross margin, registering at 43.4%, which has contributed to a negative operating margin outlook, moving towards 5.6%. Additionally, the ongoing decline in existing home sales and retail sales of building materials suggests a challenging environment for the company, further exacerbated by negative comparable sales trends observed in 10 of the last 11 quarters, excluding one positive quarter.