Floor & Decor Holdings, Inc.

Second-quarter total sales increased 3% to $1,250.3 million from $1,214.2 million a year ago. Adjusted diluted EPS was $0.58, unchanged from last year, while GAAP diluted EPS was $0.89. Comparable store sales declined 2.1%, improving from a 3.7% decline in Q1, and adjusted gross margin was 43.7%, down 20 basis points year over year. Adjusted EBITDA rose 1.2% to $152.0 million, with margin at 12.2% versus 12.4% last year. For fiscal 2026, management expects sales of $4,770 million-$4,990 million, comparable store sales of flat to down 4%, adjusted gross margin of 43.6%-43.8%, adjusted EBITDA of $550 million-$585 million, and adjusted diluted EPS of $1.88-$2.13; the 53rd week is expected to add about $65 million to sales and about $0.08 to adjusted diluted EPS.

Brad Paulsen emphasized that the quarter showed the company can execute in a weak demand backdrop by focusing on service, pro penetration, merchandising, digital, and disciplined execution. He pointed to improving comp trends, stronger pro performance, and gains in categories like installation materials, tile, and wood as evidence that the strategy is working. His tone was constructive but cautious, repeatedly saying the company is not assuming the market has bottomed and is still planning for a challenging second half.

Bryan Langley highlighted the quarter’s tariff-related items and their effect on results, including a $45.2 million net pre-tax benefit from IEEPA tariff refunds and a $1.3 million pre-tax debt extinguishment loss, which together produced a $32.9 million after-tax benefit and $0.31 of EPS. He said adjusted gross profit rose $14.3 million ex-tariff benefits, adjusted gross margin was 43.7%, SG&A deleveraged to 38.3%, and adjusted EBITDA was $152.0 million. On capital allocation, he noted $278.4 million of operating cash flow in the first 26 weeks, $942.4 million of unrestricted liquidity, a refinancing that added a $200 million term loan and an $800 million ABL, and $65.7 million of share repurchases in Q2 with $334.3 million remaining under authorization.

Analysts focused heavily on tariff refunds, whether the unused inventory benefit could support gross margin later in the year, and how management is deploying the cash. Management said $87 million of total refunds were filed for and substantially all cash had been received, with $28 million remaining in inventory to flow through over time; they said the cash will help offset inflation, support selective price investments where elasticity exists, and fund capital allocation, including buybacks. Questions also centered on whether the quarter reflected a true bottoming in demand, but management said it is too early to call a turn and continues to see a choppy macro backdrop, especially in laminate and vinyl.