Key Highlights

  • Net sales rose 3.0% to $1,214.6 million from $1,179.5 million in the third quarter.
  • Net income increased 13.2% to $64.8 million, or $0.61 per diluted share, from $0.53.
  • Comparable store sales fell 1.4%, with comparable transactions down 2.9%.
  • Adjusted EBITDA was $149.1 million, or 12.3% of net sales, against 11.8% a year earlier.
  • Unrestricted Liquidity was $1,033.8 million as of September 24, 2026.

Sales growth driven by new stores, not existing ones

Floor & Decor (NYSE:FND) is a specialty retailer of hard surface flooring and related accessories, operating 282 warehouse-format stores and five design studios across 39 states as of September 24, 2026. It serves Pros and homeowners with laminate and vinyl, tile, wood and natural stone products. The company filed its Quarterly Report for the thirteen weeks ended September 24, 2026 on October 29, 2026.

Net sales were $1,214.6 million, up $35.0 million, or 3.0%. Non-comparable sales added $50.2 million, mainly from the 20 warehouse-format stores opened since September 25, 2025, while comparable store sales declined 1.4%, or $15.2 million.

Comparable transactions fell 2.9% and comparable average ticket rose 1.6%, which the company attributed to strategic price increases. It said the transaction decline was largely driven by low existing home sales and low consumer sentiment.

Profit rises faster than sales

Gross profit rose 3.8% to $531.3 million, and gross Margin was 43.7%, up about 30 basis points from 43.4%. The company said the improvement came primarily from recognizing IEEPA Tariff refunds as the related inventory was sold, which offset higher Supply chain costs.

Selling, general and administrative expenses rose 3.0% to $453.3 million and held at 37.3% of net sales. Operating Income increased 8.3% to $78.0 million, or 6.4% of sales.

Net income was $64.8 million, up from $57.3 million. The effective tax rate fell to 17.3% from 19.8%, which the company tied to higher tax credits. Diluted EPS rose about 15% on a calculated basis.

Nine month view shows a one-time tariff benefit

For the thirty-nine weeks, net sales grew 1.8% to $3,617.1 million, and comparable store sales declined 2.4%. Gross margin was 45.4%, up about 170 basis points, including a one-time $56.2 million, or 160 basis points, benefit from IEEPA tariff refunds.

Excluding that item, gross margin would have been roughly 43.8% on a calculated basis, close to the prior year's 43.7%. Net Income for the period rose 18.4% to $200.4 million, or $1.86 per diluted share, compared with $1.56. Nine month Adjusted EBITDA was $422.5 million, or 11.7% of sales.

Cash flow, refinancing and buybacks

Net cash provided by Operating Activities for the thirty-nine weeks was $485.3 million versus $257.8 million, driven mainly by higher trade accounts payable. Purchases of fixed Assets were $187.9 million, down from $238.8 million. Cash and cash equivalents rose to $392.5 million from $249.3 million at December 25, 2025.

The company refinanced its term Loan with a new $200.0 million Facility due June 24, 2033 and had $641.3 million available under its $800.0 million asset based Credit facility.

Under a $400.0 million repurchase program approved April 23, 2026, it bought 1,764,759 shares for $91.4 million in the quarter at an average of $51.79. Year to date it repurchased 3,095,734 shares for $157.1 million, and $242.9 million of authorization remained.

What to watch next

Readers tracking the name will likely follow whether comparable transactions stabilize and how gross margin trends once tariff refund recognition fades. Capital spending plans include roughly $135 million to $150 million to open 20 warehouse-format stores in fiscal 2026, so store growth should keep supporting sales even if comparable sales stay negative.