Floor & Decor Holdings, Inc. is a multi-channel specialty retailer of hard surface flooring and related accessories, and a seller of commercial surfaces in the United States. Its product range includes laminate, vinyl, and rigid core vinyl flooring; porcelain and ceramic tile, mosaics, and slabs; installation materials such as grout, mortar, and adhesives; and decorative tiles and mosaics. It also offers hardwood, bamboo, stone products, and bathroom and kitchen fixtures. Products are sold through warehouse-format stores, five small-format design studios, and the website FloorandDecor.com, serving professional installers, commercial businesses, and homeowners. The company was formerly known as FDO Holdings, Inc. and changed its name to Floor & Decor Holdings, Inc. in April 2017. Founded in 2000, it is headquartered in Atlanta, Georgia.
Floor & Decor Opens New Fredericksburg Store, Relocates Clearwater Location
Floor & Decor Holdings announced a new store opening in Fredericksburg, VA, alongside the relocation of its Clearwater, FL store. The Fredericksburg launch features a grand opening celebration with discounts and a 30 day promotional push, while the Clearwater relocation shifts the store a short distance with no service gap for customers. Both sites pair a warehouse store with a design center, supporting larger project tickets from homeowners and Pro customers. The company said the moves align with its existing strategy of aggressive store expansion and deeper Pro relationships, with the Clearwater relocation aimed at protecting store economics and sales productivity rather than simply adding units. The clearest sign of success will be how quickly Fredericksburg volumes ramp and whether Clearwater maintains or improves sales per store in the quarters following the September 28 opening.
FND · Demand · Positive New Fredericksburg store opening plus Clearwater relocation expand store footprint and Pro/homeowner project capacity, supporting sales growth.
Home Depot Pro Sales Outperform DIY as SRS Reaches 90% of Stores
Home Depot is seeing encouraging traction from investments aimed at helping professional customers handle larger and more complex purchases, with Pro sales posting positive comps and outperforming DIY in the second quarter of fiscal 2026. Strength came across Pro-heavy categories including portable power, decking, dimensional lumber, pipe and fittings, fasteners, hand tools, and concrete, while the company said it achieved its highest levels of on-time and complete performance for flatbed and box-truck deliveries. Home Depot is also using its SRS and GMS acquisitions to broaden the Pro catalog, and in the past 12 months 90% of Home Depot stores have completed a sale through SRS via QuoteCenter. Lowe's Companies and Floor & Decor are pursuing similar Pro strategies, with Floor & Decor reporting Pro sales growth of about 4% in the second quarter of 2026, representing roughly 55% of total sales. Home Depot shares have lost 27.7% in the past year versus the industry's decline of 31.9%, and the company carries a Zacks Rank #3 (Hold).
HD · Demand · Positive Home Depot's Pro sales posted positive comps and outperformed DIY in Q2 fiscal 2026, with strength across Pro-heavy categories and improved delivery performance.
FND · Demand · Positive Floor & Decor reported Pro sales growth of about 4% in Q2 2026, roughly 55% of total sales, as it pursues a similar Pro strategy.
Home Depot Flags $730 Million Tariff Refund Boost to Gross Margin
Home Depot reported that its second-quarter fiscal 2026 gross margin rose about 25 basis points to 33.7%, helped by $730 million of IEEPA tariff refunds, of which $685 million reduced cost of goods sold and provided roughly 145 basis points of gross-margin benefit. That benefit offset about 60 basis points of higher costs tied to fuel, energy and other product inputs, though management expects those rising costs to fully offset the tariff-refund benefit over the full year and is also facing incremental tariff pressures not contemplated in its original 2026 plan. Home Depot expects a fiscal 2026 gross margin of 33.1% and a fourth-quarter gross margin roughly flat year over year. Among peers, Lowe's second-quarter fiscal 2026 gross margin fell 80 basis points as a roughly 30-basis-point tariff refund benefit was largely offset by elevated fuel and transportation costs, while Floor & Decor's adjusted gross margin slipped 20 basis points to 43.7% and the company guided to 43.6-43.8% for the year. Home Depot shares have lost 26.3% over the past year versus a 32% decline for the industry, and the stock trades at a forward price-to-earnings ratio of 19.87X against an industry average of 17.96X.
Home Depot Q1 revenue rises 4.8% to $41.77 billion, in line with estimates
Home Depot reported first-quarter revenues of $41.77 billion, up 4.8% year on year and in line with analysts' expectations. The quarter was mixed, with a narrow beat on earnings per share but a slight miss on gross margin estimates. CEO Ted Decker noted underlying demand was similar to fiscal 2025 despite consumer uncertainty and housing affordability pressure. The stock has risen 14.6% since the report and currently trades at $343.70. Among the six home furnishing and improvement retailers tracked, RH posted the best results relative to estimates with revenues of $800.3 million, while Floor And Decor had the weakest quarter with revenues of $1.15 billion missing expectations by 2.8%.
Lowe's vs. Floor & Decor: Which Home Improvement Stock Is a Better Buy in 2026?
Lowe's is the clear choice for 2026 over Floor & Decor, according to a Motley Fool analysis, due to its superior expected growth rate and lower valuation ratios. Lowe's fiscal 2025 revenue was approximately $86.3 billion, a 3.1% year-over-year increase, with net income of nearly $6.7 billion, while Floor & Decor's revenue reached nearly $4.7 billion, up about 4%, with net income of close to $209 million. Lowe's forward price-to-earnings ratio stands at 16.8 times versus Floor & Decor's 25.7 times, and both trade at a price-to-sales ratio of 1.3 times. Lowe's is expected to grow sales by about 8% and net income by about 2.5% in 2026, while Floor & Decor anticipates sales rising about 3% to $4.83 billion but net income declining slightly to $206 million. The analysis notes Lowe's is expanding its Pro customer base through AI tools and acquisitions, whereas Floor & Decor faces headwinds from high interest rates and smaller average project sizes.
Floor & Decor to Release Second Quarter Fiscal 2026 Results on July 30
Floor & Decor Holdings announced it will release its financial results for the second quarter of fiscal 2026 after market close on Thursday, July 30, 2026. The company will host a conference call at 5:00 p.m. Eastern Time that day to discuss the results. A live audio webcast and related materials will be available at ir.flooranddecor.com. A recorded replay will be accessible approximately three hours after the call ends, both online and by phone using pin number 13761392, until August 6, 2026.
Analysts have turned bearish on three stocks, citing warning signs that warrant caution. Floor & Decor faces disappointing same-store sales and a 12.9% annual decline in earnings per share over three years, with a consensus price target of $53.91 implying an 8.6% downside. Kadant shows muted 5.9% annual revenue growth and flat earnings per share despite revenue increases, with a $343 target suggesting 9.4% upside but waning returns on capital. Morgan Stanley's 6.1% annual revenue growth and 7.3% annual EPS growth over five years lag the financial sector, and its 5.8% annual tangible book value per share increase reflects limited capital growth potential, with a $203.67 target implying a 3.7% decline.
FND · Capital · Negative Analysts cite disappointing same-store sales and declining EPS, with a consensus price target implying downside.
KAI · Capital · Negative Analysts highlight muted revenue growth, flat EPS, and waning returns on capital, with limited upside.
MS · Capital · Negative Analysts note lagging revenue and EPS growth vs. sector, limited tangible book value growth, and a price target implying decline.
Floor And Decor and Kroger Stocks Rise as Retail Sales Data Lifts Sentiment
Floor And Decor and Kroger shares advanced in afternoon trading after monthly retail sales rose 0.9% month-over-month and 6.9% year-over-year, improving sentiment across the retail sector. Floor And Decor gained 1.4% while Kroger climbed 2%, as investors rotated into large, cash-generative retailers amid a selloff in expensive AI names and hawkish rate repricing under new Fed Chair Kevin Warsh. Walmart held above its 200-day average of $116.55, and Costco's double-digit comparable sales and renewal rates above 92% signaled intact pricing power and loyalty. Kroger's move follows a 5.8% drop five days earlier after its first-quarter 2026 earnings per share of $1.46 missed consensus by 8.6%, despite revenue of $46.12 billion beating forecasts and same-store sales growth slowing to 1% from 3.2% a year ago.
StockStory Highlights Costco and Ulta as Consumer Stocks with Competitive Advantages, Flags Floor & Decor as a Sell
StockStory identifies Costco and Ulta Beauty as consumer retail stocks with durable competitive advantages, while recommending investors sell Floor & Decor. Costco benefits from 6.6% average same-store sales growth over two years, revenue of $293.6 billion, and a 35% return on invested capital. Ulta Beauty shows 3.5% same-store sales growth and a 32.6% return on capital. Floor & Decor faces declining earnings per share, falling 12.9% annually over three years, and an 8% return on invested capital, signaling eroding profitability.
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