FND Filings — Floor & Decor Holdings, Inc. - FilingSpy
FND
Floor & Decor Holdings, Inc.
A specialty retailer of hard-surface flooring that runs big warehouse-format stores where professional contractors and do-it-yourself homeowners buy tile, wood, stone, and laminate, all kept in stock and priced low through direct sourcing. It was born in 2000 in the Atlanta area after founder George West struggled to find the right flooring for his own renovation and opened a store devoted just to it. Its warehouse showrooms are so large they resemble superstores, stocked with thousands of products ready to take home the same day.
A one-time $56.2M tariff refund lifted Q2 FY2026 gross margin to 48.2% and net income to $95.9M, masking a 2.1% comparable store sales decline.
A one-time tariff refund reshaped the quarter. rose 3.0% to $1.25 billion and rose 51.7% to $95.9 million, but the increase was driven by a $56.2 million that pushed to 48.2%, while fell 2.1%. The underlying business is still waiting for a housing recovery, and the reported profit increase does not reflect a change in that trajectory.
Key takeaways
A $56.2 million one-time recognized in cost of sales lifted by 4.4 points to 48.2%, the primary driver of the 51.7% increase in to $95.9 million.
fell 2.1% on a 2.9% drop in transactions, partially offset by a 0.8% increase in average ticket, as low existing home sales continued to weigh on demand.
Total rose 3.0% to $1.25 billion, as 24 new warehouse-format stores added $60.5 million in non-, more than offsetting the comparable-store decline.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net income rose 51.7% to $95.9M, driven by a $56.2M IEEPA tariff refund benefit that lifted gross margin to 48.2%.
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grew 3.0% to $1.25B in Q2, as 24 new warehouse-format stores added $60.5M in non-, offsetting a 2.1% decline.
expenses rose 6.3% to $479.1 million, driven by new store costs and higher incentive compensation tied to the tariff refunds, and 120 to 38.3% of sales.
The company refinanced its credit facilities, replacing a term loan and ABL facility with new maturities in 2033 and 2031, and authorized a $400 million program with $334.3 million remaining.
rose 101.2% to $169.2 million and turned positive at $96.0 million, compared to negative $10.0 million a year ago.
What changed
The decline deepened to 2.1% from the 1.2% drop in Q3 FY2025 and the 3.7% decline in Q1 FY2026, failing to build on the brief return to growth in Q2 FY2025.
trajectory was distorted by the one-time $56.2 million tariff refund; the prior watch item on tariff-driven cost increases remains unresolved for the underlying business.
of $96.0 million in Q2 already exceeds the full-year FY2025 total of $64.1 million, putting the company on a stronger cash generation path against the reduced $240–$275 million FY2026 plan.
fell to $193.8 million from $194.3 million a year ago, and the refinancing extended maturities to 2031 and 2033, addressing the prior concern about the $150 million interest rate cap expiring in April 2026.
What to watch
Q3 FY2026 to see if the 2.1% decline stabilizes or deepens further as existing home sales remain low.
Underlying , excluding the one-time tariff refund, to assess how strategic pricing and tariff-driven costs are interacting.
against the $240–$275 million FY2026 plan after Q2's $96.0 million print.
Execution of the $400 million program and its effect on liquidity and capital allocation.
expanded 430 to 48.2%, primarily from a $56.2M one-time IEEPA tariff refund recognized in cost of sales; the remaining increase was attributable to higher .
rose 6.3% to $479.1M, driven by new store costs and higher incentive compensation tied to the tariff refunds; SG&A as a percent of sales increased 120 to 38.3%.
fell 2.1% on a 2.9% drop in transactions, partially offset by a 0.8% increase in average ticket, reflecting low existing home sales and strategic price increases.
Liquidity remained strong at $942.4M, and the company refinanced its credit facilities, replacing a term loan and with new maturities in 2033 and 2031, respectively.
Fiscal 2026 are planned at $240M–$275M, including 20 new warehouse-format stores, and a $400M program was authorized with $334.3M remaining.
Quantitative and Qualitative Disclosures About Market Risk
For quantitative and qualitative disclosures about market risk affecting the Company, see Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of Part II of the Annual Report. While our exposure to market risk has not changed materially since December 25, 2025,…
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For quantitative and qualitative disclosures about market risk affecting the Company, see Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of Part II of the Annual Report. While our exposure to market risk has not changed materially since December 25, 2025, uncertainty with respect to the economic effects of declines in economic conditions that affect the residential housing market and consumer spending for hard surface flooring, inflation, global supply chain disruptions, regulatory and political conditions, tariffs and trade policy, and geopolitical instability, among other factors, have introduced significant volatility in the financial markets, including interest rates and foreign currency exchange rates. See further discussion in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional details.
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Interest Rate Risk
Our operating results are subject to risk from interest rate fluctuations on our 2026 Credit Facilities, which have variable interest rates. Based on the $200.0 million total outstanding principal balance of our 2026 Credit Facilities as of June 25, 2026, a 1.0% increase in the effective interest rate of this debt would cause an increase in interest expense of approximately $2.0 million over the next twelve months. For additional information related to the Company’s 2026 Credit Facilities, refer to Note 3, “Debt” to our condensed consolidated financial statements included in this Quarterly Report.
See the information under the “Litigation” and “Tariffs” captions in Note 5, “Commitments and Contingencies” to our condensed consolidated financial statements included in this Quarterly Report, which we incorporate herein by reference.
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See the information under the “Litigation” and “Tariffs” captions in Note 5, “Commitments and Contingencies” to our condensed consolidated financial statements included in this Quarterly Report, which we incorporate herein by reference.
In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors described in Part I, Item 1A, “Risk Factors” in our Annual Report, which could materially affect our business, financial condition, and/or operating results. 2…
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In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors described in Part I, Item 1A, “Risk Factors” in our Annual Report, which could materially affect our business, financial condition, and/or operating results.
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