Q2 2024 Floor & Decor Holdings Inc Earnings Call Transcript
Key Points
- Gross margin rate exceeded expectations, increasing by 110 basis points to 43.3% from 42.2% in the same period last year.
- Opened five new warehouse format stores in the second quarter of fiscal 2024, ending with 230 warehouse stores and five design studios.
- Strategic merchandising efforts are successfully driving sales towards higher margin products, enhancing profitability.
- Continued diversification of product sourcing, reducing exposure to China from approximately 50% in fiscal 2018 to 25% in fiscal 2023.
- Pro sales improved sequentially and year over year, accounting for approximately 48% of retail sales.
- Total and comparable store sales were modestly below expectations, with a 0.2% decline in total sales and a 9% decrease in comparable store sales.
- Diluted earnings per share decreased to $0.52 from $0.66 in the same period last year.
- Existing home sales have declined year over year for almost three years, impacting demand for large project discretionary hard-surface flooring.
- Revised fiscal 2024 sales and earnings outlook reflects a muted market environment, with expected sales in the range of $4,400 million to $4,490 million, down from prior guidance of $4,600 million to $4,770 million.
- Plan to slow new store opening pace to approximately 25 new warehouse stores in fiscal 2025, down from the prior expectation of 30 to 35 stores.
Greetings and welcome to the Floor & Decor Holdings, Inc. second quarter 2024 conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star-zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Wayne Hood, Senior Vice President of Investor Relations.
Thank you, operator, and good afternoon, everyone. Welcome to Florida as fiscal 2024 second quarter earnings conference call. Joining me on our call today are Tom Taylor, Chief Executive Officer, Trevor Lang, President, and Brian Langley, Executive Vice President and Chief Financial Officer. Before we start and want to remind everyone of the Company's Safe Harbor language. Comments made during this conference call and webcast contain forward-looking statements within the meaning of the
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