FND Stock Forecast & Price Target

Floor & Decor Holdings Inc. anticipates a significant sales increase of 8.0% year-over-year in 2Q25, reaching approximately $1.2 billion, driven by a 13% growth in new units and a modest comparable sales increase of 1.0%. The company expects a gross margin expansion of 70 basis points to 44.0%, attributed to reduced transportation costs and an increasingly diversified supply chain. Furthermore, an anticipated operating margin expansion of around 30 basis points to 6.6% reinforces the positive outlook for the company's profitability.

Floor & Decor Holdings Inc. is facing challenges reflected in its guidance for falling sales growth of between 1% to 2%, accompanied by a contraction in operating margins, projected at 5.6%. Additionally, a notable decline in the housing market, with existing home sales and retail sales of building materials both decreasing by 1% in the second quarter of 2025, poses further risks to the company's revenue potential. While the company has managed to reduce its sourcing exposure to China, the ongoing threat of tariffs remains a concern that could impact operational costs and overall profitability.