Floor & Decor sales jump 27%
Floor & Decor turned in another strong quarter as the specialty retailer reported second quarter sales surged ahead 27% to $1.09 billion from sales of $860.1 million in the second quarter a year ago.
Comp store sales rose 9.2% for the quarter.
The flooring and home improvement warehouse retailer opened nine new stores and close one location during the period. Most new Floor & Decor locations have an approximate size of 80,000 square feet.
At the end of the quarter, Floor & Decor operated 174 stores and 5 design centers.
The Atlanta-based company posted a net income of $81.8 million, sliding 1.3% compared to a net income of $82.9 million in the second quarter of fiscal 2021.
But Floor & Decor also reported an adjusted net income increased 3.5% to $81.1 million compared to $78.3 million in the second quarter of fiscal 2021.
For the first half of 2022, sales are up 29% to $2.12 billion while comp sales have increased 11.7%.
Altogether, the retailer opened 15 new warehouse stores and three design studios and closed one warehouse for the first half of 2022.
Net income for the first six months of 2022 decreased 3.7% to $152.8 million compared to $158.7 million in the same period of fiscal 2021. Adjusted net income increased 1.1% to $152.7 million.
Leadership Moves:
Floor & Decor also announced this afternoon that it has promoting CFO and Executive Vice President Trevor Lang to the position of company President.
The company said it will conduct a search for a new CFO, which will include internal and external candidates. Lang’s promotion will be effective upon the appointment of a new CFO.
Lang joined Floor & Decor as Senior Vice President and CFO in 2011, and was promoted to Executive Vice President of Professional Services and Chief Financial Officer in 2014 in connection with his assuming responsibility for leading the company’s pro and commercial business.
He previously served as CFO of Zumiez Inc. and vice president of finance for Carter’s, Inc.
“For the last 11 years, in addition to being an outstanding CFO, Trevor has been critical in leading our business in all areas, including our technology, Pro and commercial strategies," said Floor & Decor CEO Tom Taylor. After an extensive internal and external assessment, we concluded that his in-depth knowledge of our company, industry, culture, strategy and products make him the right person for this expanded role. I look forward to continuing to work with him.”
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The Bottom Line: Sales jump ahead 27% to over the $1 billion mark as profits slide just 1.3% for the second quarter.
What the CEO said: “These earnings results are particularly gratifying to us when we consider the previous year's record sales and profits, the extraordinary inflationary impact of higher global supply chain costs on our results, rising mortgage rates, and ten consecutive months of declining year-over-year existing home sales,” said Floor & Decor CEO Tom Taylor.
The CEO noted that Floor & Decor plans to open eight warehouse-format stores in the third quarter of fiscal 2022 and a combined 32 new warehouse-format stores in fiscal 2022.
Company info: Floor & Decor’s full second quarter 2022 financial report is available here.
