At Floor & Decor, Q4 sales flat as profits drop
Floor & Decor reported sales for the fourth quarter 2023 reached $1.048 billion, which is the same sales figure the company hit in the fourth quarter 2022.
For the full year, sales increased 3.5% to $4.41 billion from sales of $4.26 billion in 2022.
Comparable store sales decreased 9.4% in the fourth quarter and declined 7.1% for the year.
CEO Tom Taylor noted that the retailer was impacted by sagging existing-home sales during the quarter and full year.
The home improvement retailer opened 14 new warehouse stores during the fourth quarter. In total, Floor & Decor opened 31 new warehouse stores in 2023 while closing one warehouse location.
At the end of the fiscal year, Floor & Decor operated 221 warehouse stores and 5 design studios in 36 states.
Floor & Decor said it plans to open 30 to 35 new warehouse stores in 2024. This calendar year, the company has already opened new locations in Mansfield, Texas and Summerfield, Florida.
Floor & Decor posted a fourth quarter net income of $37.1 million in the fourth quarter, marking a 46.4% decrease from a net income of $69.2 million in 2022.
The retailer’s net income for the full year decreased 17.5% to $246 million compared to a net income of $298.2 million.
Looking ahead, Floor & Decor said it expects sales to range between $4.6 billion to $4.77 billion in 2024.
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The Bottom Line: While sales are flat in the fourth quarter of 2023, company profits drop by 46.4% to $37.1 million.
What the CEO said: “We are proud of how our teams are collaborating to successfully execute our sales-driving initiatives, prudently manage expenses without sacrificing customer service, and strategically grow our gross margin rate,” said Tom Taylor, CEO of Floor & Decor. “We are particularly proud of accomplishing these results when existing home sales are at record lows, and flooring industry sales continue to contract. As we look to 2024, we remain focused on growing our market share by continuing to capitalize on our everyday low prices and value-driven options, trend-right product assortments, in-stock job lot quantities, and the exceptional customer service provided by our store associates.”
“We are fortunate that our strong balance sheet and cash flow enable us to invest in new store growth during an industry downturn,” Taylor added.
Company info: Click here to read fourth quarter 2023 and the full-year financial report from Floor & Decor.
