Floor & Decor misses on revenue as same-store sales fall, even with earnings ahead

A $0.03 profit beat on $0.61 a share hides a 1.4% drop in comparable store sales, and the full-year guide points to a decline of as much as 3.5%.

Floor & Decor earned more than expected in the third quarter, but it sold less than expected, and the second fact matters more. Earnings came in at $0.61 a share, $0.03 ahead of forecasts, while revenue of $1.21 billion fell short of the $1.23 billion expected.

The shortfall fits the trading in the stores. Comparable store sales, which strip out the effect of new openings, fell 1.4% in the quarter. Brad Paulsen, the chief executive, pointed instead to 15% earnings growth as proof of the resilience of the business model, and said it lets the company keep investing in its Pro offering, store growth and technology. Profit growth on falling like-for-like sales is a story about margins, not demand.

The outlook gives no sign that demand is turning. For fiscal 2026 the company expects comparable store sales to change by between -3.5% and -2.0%, so the decline is set to run through the year rather than fade. Net sales are guided to $4.77 billion to $4.84 billion, diluted earnings per share to $2.19 to $2.29, and adjusted earnings per share to $1.88 to $1.98. Adjusted EBITDA, a measure of operating profit before interest, tax and depreciation, is expected at $535 million to $550 million.

Against that, the spending plan looks bold. Floor & Decor still intends to open 20 new warehouse stores this year and to spend $235 million to $250 million on capital projects. Those openings rest on a sales base that is still shrinking on a comparable basis, and that is where the pressure shows.