Floor & Decor's Cash Flow Nearly Doubled To $485.3 Million, And Supplier Payables Did Most Of The Work
The retailer's own 10-Q credits higher trade payables for the jump, while it spent $157.1 million on buybacks over nine months.
Floor & Decor, the hard-surface flooring retailer, generated $485.3 million of operating cash in the first nine months of fiscal 2026, up from $257.8 million a year earlier. The company's 10-Q, filed Thursday, attributes the increase primarily to growth in trade accounts payable, the money it owes suppliers.
Payables swing does the heavy lifting
Trade payables contributed $115.9 million of operating cash in the thirty-nine weeks ended September 24, 2026, against a $73.8 million drain in the same stretch of 2025. Receivables used $29.6 million and inventories $40.0 million this year.
On the balance sheet, payables stood at $790.7 million, up from $683.7 million at December 25, 2025. Inventories rose to $1,173.1 million from $1,133.1 million.
Supply-chain-finance balances, which sit inside payables, were $169.1 million, against $133.2 million at year-end. Under those programs, banks pay suppliers early and the company repays the banks on the original invoice due date. The prior quarter's filing put the figure at $152.9 million.
A soft sales backdrop
Floor & Decor runs 282 warehouse-format stores and five design studios across 39 states, selling tile, laminate and vinyl, wood and stone to professional installers and homeowners. Net sales rose 1.8% to $3.62 billion for nine months, but comparable store sales fell 2.4% and comparable transactions fell 3.7%. Growth came from the 20 new stores opened since September 25, 2025.
A one-time recovery of IEEPA tariff refunds flattered margins. The company recognized about $56 million through cost of sales, lifting nine-month gross margin to 45.4%; the refunds account for 160 basis points of that. It says it has received substantially all of the roughly $87 million it paid.
Buybacks and a deep credit line
The company repurchased $157.1 million of stock over nine months, $91.4 million of it in the third quarter, and has $242.9 million left on a $400.0 million authorization. Cash was $392.5 million.
Nothing was drawn on its $800 million asset-based credit line, which had $641.3 million available at quarter-end. Only $200.0 million of term-loan debt is outstanding.
Separately, in an 8-K, the company said Executive Chair Thomas Taylor will become non-executive chair effective January 1, 2027.
Fiscal 2026 includes a 53rd week, which the company guides will add about $65 million to sales, so fourth-quarter results will show how much of the payables gain holds.
Sources
- 10-Q Filing — Floor & Decor (FND) — SEC EDGAR
- 10-Q Filing — Floor & Decor (FND), Q2 FY2026 filed 2026-07-30 (comparison basis) — SEC EDGAR
- 8-K Filing — Floor & Decor, filed 2026-10-29 (Items 2.02, 5.02, 7.01, 9.01) — SEC EDGAR
- Earnings release (8-K Item 2.02, fnd-20260924x8kxex991.htm) — Floor & Decor, filed 2026-10-29 — SEC EDGAR
- 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 Holdings, Inc. (FND) Stock Price, News, Quote & History - Yahoo Finance — Yahoo Finance
- Floor & Decor Holdings, Inc. (FND) Stock Forecasts — Yahoo Finance
- Home furnishing and improvement retail stocks Q2 results: benchmarking Home Depot (NYSE:HD) — Yahoo Finance
- Floor & Decor cut to hold at Stifel as housing outlook dims (FND:NYSE) | Seeking Alpha — seekingalpha.com
