Floor & Decor: 2Q25 Business Update
Taking Market Share, Positive Comps Revert Negative, $22mn Mature Stores
Welcome to Speedwell Memos. Our main website is SpeedwellResearch.com.
This is a business update on a company we have previously written an in-depth research report on. To read the full research report become a member today. Members get access all of our research reports and all prior updates (most of which are paywalled). You can see a list of all the companies we have written on here.
(Speedwell Members click here for an extended version of this post and for a PDF click here)
2Q25 Update.
FND reported 2Q25 and the stock was up 3% after hours.
Net revenues increased +7% y/y to $1.13bn with comparable sales +0.4%. This was the first time they posted same store sales (SSS) growth since 4Q22. Comparable transactions were -3.3%, offset by a 3.8% increase in price.
While the positive SSS figure is a good development after posting -1.8% last quarter, they took down their SSS guidance for the year. It is now -2% to 0%, a reduction in the high end of the range from +1% prior. This is because toward the end of the quarter their SSS turns negative again. April was +1.7%, May was +0.6%, and June was -0.8%. QTD they also announced SSS were -1%. This was attributed to the housing market softening again.
They opened 3 new warehouse stores this quarter, putting them at 7 year-to-date. They now have a total of 257 with a goal of getting to 500. They are on track to open another 13 in the back half of the year.
For 2026 they expect at least another 20 new warehouse stores as well. However, this could be higher depending on housing market condition improvements.
In terms of the impact of tariffs, CEO Tom Taylor noted several initiatives they undertook to mitigate the effects. First, they negotiated with vendors to have them absorb a portion of it. Second, they leveraged their network of 240 suppliers in 26 countries to best position their product portfolio to avoid the worst of it. They onboarded new factory suppliers as well. Third, they have taken price up on some items, but emphasized that they are balancing their portfolio for competitiveness and profitability. Taylor further noted that independents are very pressured and have take price up by as much as high single digits.
President Bradley Paulsen also noted that this has been an opportunity to take share...
The rest of this update is only accessible to Speedwell Members.
(After the rest of the quarterly update, we also provide business commentary and two ways to think of valuation)
If you are a Speedwell Member, click here to read the rest of this post.
If you want to become a Speedwell Member, click below to get access to the rest of this post! You will also get our 57-page Floor & Decor Research Report and a large library of our other reports and updates!
Read our in-depth Floor and Decor Research report here.
As a reminder, we named our research firm Speedwell Research after the ship that helped ferry passengers to the Mayflower. The idea is that we want to help you take your journey, but ultimately you are on your own in the decisions you make. An investor must judge for themselves whether they believe the opportunity is worth it and accepting the potential risks that could materialize.
The Synopsis Podcast.
Follow our Podcast below. We have a 2 hour Company episode just on Floor & Decor!
For those that are new to our podcast, we have four episode formats: “company” episodes that breakdown in-depth each business we write a report on, “dialogue” episodes that cover various business and investing topics, “article” episodes where we read our weekly memos, and “interviews”.
Speedwell Research Reports.
Become a Speedwell Research Member to receive our Meta report and all of our other research reports, business updates, and Plus members also receive Excels.
We have covered Appfolio, APi Global, Airbnb, Axon, Constellation Software, Copart, Coupang, CoStar Group, Dream Finders Homes, Etsy, Evolution, Floor & Decor, Meta, Perimeter Solutions, Porsche, RH, and Walker & Dunlop, with many more coming each year!
(Many members have gotten their memberships expensed. If you need us to talk with your compliance department to become an approved vendor, please reach out at info@speedwellresearch.com).
*At the time of this writing, one or more contributors to this report has a position in FND. Furthermore, accounts one or more contributors advise on may also have a position in FND. This may change without notice.