Floor & Decor Holdings, Inc.

Q3 diluted EPS was $0.61, up 15% from $0.53 a year ago; excluding a tax-rate benefit of about $0.02 per share, EPS grew 11%. Total sales increased 3% to $1,214.6 million versus $1,179.5 million last year. Comparable store sales declined 1.4%. Gross profit increased $19.4 million, and gross margin was 43.7%, up 30 basis points year over year. SG&A was 37.3% of sales, flat versus last year. For full-year fiscal 2026, management guided to sales of $4.765 billion to $4.835 billion, comparable sales down 3.5% to down 2.0%, adjusted gross margin of about 43.6%, SG&A of about 38.5%, adjusted EBITDA of $535 million to $550 million, and adjusted diluted EPS of $1.88 to $1.98. They said the 53rd week should add about $65 million of sales and about $0.08 to adjusted diluted EPS. CapEx is expected to be $235 million to $250 million.

Brad Paulsen said the quarter showed resilience despite a difficult discretionary demand environment, with improving comp trends, stronger Pro momentum, and continued share gains in key categories. He emphasized a balanced strategy: protect profitability, invest selectively in pricing where there is elasticity, and keep funding long-term growth initiatives such as Pro loyalty, digital, and store expansion. Tone-wise, he was constructive on execution and long-term positioning, but clearly cautious on near-term demand given mortgage rates, housing weakness, and pressured consumer sentiment.

Bryan Langley highlighted gross margin of 43.7%, up 30 basis points year over year, with roughly $14 million of tariff refund benefit flowing through in Q3 and the remaining roughly $8 million expected in Q4. He noted supply chain costs were a meaningful headwind, including about a 100 basis point gross margin drag in Q3 and a Q4 headwind he estimated at 120 to 140 basis points, driven mainly by diesel fuel. He also pointed to strong liquidity of $1.0 billion, including $392.5 million of cash and cash equivalents and $641.3 million of ABL availability, plus year-to-date operating cash flow of $485.3 million and $157.1 million returned via share repurchases.

Analysts pressed on LVT pricing and supply, and management said pressure is easing but still negative, with supply in the market likely to remain a headwind into 2027 until housing improves. Questions on 2027 gross margin focused on tariff refund roll-off, freight and fuel inflation, and loyalty program costs; management said it is too early to guide 2027, but they believe they have multiple levers, including pricing, better/best assortment, operational efficiencies, and supply chain improvements. Analysts also asked whether the store-growth slowdown reflects a new run rate; Brad Paulsen said it is a pacing decision tied to the macro backdrop, not a change in the 500-store long-term ambition.