Floor & Decor Plans Just 10 To 15 New Stores In 2027, Down From 20 This Year
The CEO calls the slowdown a pacing decision and says the 500-warehouse-store goal in the U.S. is unchanged.
Floor & Decor, the hard-surface flooring retailer, plans to open 10 to 15 warehouse stores in 2027, down from 20 this year, CEO Brad Paulsen told analysts on the company's third-quarter earnings call Thursday. He said the long-term target of 500 U.S. warehouse stores has not changed.
A pacing decision, not a new run rate
Paulsen said the company is planning on the expectation that existing home sales stay subdued, and that the environment "warrants a measured approach to near-term growth." Openings will be guided by returns rather than a unit target, he said.
Pressed by a Citi analyst on whether 10 to 15 is the new run rate, Paulsen called the cut "a pacing decision" and said "we believe this is temporary and not a reflection of the new run rate around new store openings." If demand drivers improve, he said, the company plans to re-accelerate.
He also said Floor & Decor does not face a significant fast-follower competitor seeking to replicate its national footprint, which gives it flexibility on cadence. Planned 2027 openings include Fairfax, Virginia, and Cherry Creek, Colorado.
Newer stores have lagged
Paulsen acknowledged that opening stores in this macro has pressured performance and early returns, and said the company owes investors more productivity from stores opened over the past four years. New openings now focus on Tier 1 and Tier 2 markets, in boxes of 55,000 to 65,000 square feet, with construction and opening costs falling.
CFO Bryan Langley said mature stores average roughly $20 million in sales, below a peak of $26 million to $28 million, while still producing about 23% EBITDA, a profit measure before interest, taxes, depreciation and amortization. He said the 2026 class could land at, if not slightly below, the 2025 class in first-year sales volume, and both would be slightly below 2024's because of the weaker macro.
The company operates warehouse-format stores selling tile, wood, laminate and vinyl and installation materials to pros and homeowners.
Quarter and buyback backdrop
Third-quarter sales rose 3% to $1,214.6 million, and diluted earnings per share were $0.61, up from $0.53. Comparable store sales fell 1.4%, with September up 0.4%, but fourth-quarter-to-date comps are down about 3.8%, Paulsen said, as mortgage rates held above 7%.
The company repurchased 1.8 million shares for $91.4 million in the quarter and had $242.9 million left on its $400 million authorization. Asked by a JPMorgan analyst whether lower store growth would shift capital to buybacks, Paulsen did not address it directly. He said board changes announced Thursday had no connection to the store plan.
Floor & Decor plans eight more warehouse openings split between October and November to reach 20 for the year, and will give 2027 guidance with fourth-quarter results.
Sources
- Floor & Decor Holdings Non-GAAP EPS of $0.61 beats by $0.04, revenue of $1.22B in-line (FND:NYSE) | Seeking Alpha — seekingalpha.com
- Floor & Decor cut to hold at Stifel as housing outlook dims (FND:NYSE) | Seeking Alpha — seekingalpha.com
- Floor & Dcor: Q3 Earnings Snapshot — Associated Press
- Floor & Decor Holdings, Inc. (FND) Stock Price, News, Quote & History - Yahoo Finance — Yahoo Finance
- Floor & Decor Holdings, Inc. Announces Third Quarter Fiscal 2026 Financial Results – Company Announcement - FT.com — Financial Times
