FND Stock Forecast & Price Target

Floor & Decor Holdings Inc. reported a positive financial outlook, evidenced by a 5.5% increase in total sales, reaching $1.18 billion, aligning with previous forecasts. The company also raised its projected gross margin to a range of 43.6% to 43.7%, indicating strong product margins and the effective management of operational costs despite challenges such as tariffs. Additionally, the continued growth in design services, alongside an uptick in customer transactions, enhances the overall revenue trajectory, suggesting a favorable environment for future sales acceleration.

Floor & Decor Holdings Inc has experienced a significant decline in its EBIT margin, which has decreased by approximately 250 basis points from pre-COVID levels of 8%-8.5%, reflecting ongoing challenges in the market. The company reduced its full-year comparable sales guidance to a range of -1% to -2%, anticipating further negative trends in comparable sales, particularly in the fourth quarter, where year-over-year trends already show a decline of -2%. Additionally, the outlook for sluggish sales trends may extend into 2026, compounded by the impact of prior excess demand and ongoing lackluster performance in the broader home improvement sector.