FND Stock Forecast & Price Target

Floor & Decor Holdings Inc., a specialty retailer in the hard surface flooring market, reported a notable increase in total sales by 5.5% to $1.18 billion, aligning with forecasts and indicating robust demand across various customer segments. The company has also raised its projected gross margin to a range of 43.6%-43.7%, reflective of strong product margins and the positive impact of new distribution centers despite tariff pressures. Furthermore, the outlook for healthy comparable sales growth by Q1 2026, along with robust year-over-year growth in design services, supports a favorable perspective on the company’s future financial performance.

Floor & Decor Holdings Inc has faced a decline in its EBIT margin, which has fallen approximately 250 basis points from pre-COVID levels, currently hovering between 8% and 8.5%. The company has reduced its full-year comparable sales guidance to a range of -1% to -2%, indicating expectations of continued negative trends in same-store sales and revenues, particularly in Q4, where recent trends show a year-over-year decline of -2%. Additionally, the ongoing sluggish performance in comparable sales, alongside reduced gross margins of 43.4% and a significantly depressed earnings per share forecast for 2024 and 2025, reflects broader challenges within the home improvement sector, contributing to a negative outlook for the stock.