The following is a summary of the Floor & Decor Holdings, Inc. (FND) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Q1 diluted earnings per share was reported as $0.46, beating expectations, despite a decrease in sales by 2.2% to $1,097.3 million, also comparable store sales fell by 11.6%.

• The average transaction reduced by 4.2% year-on-year, with comparable transactions falling by 7.7% over the quarter.

• Gross profit increased by 0.2% as the gross margin rate increased by 100 basis points to 42.8% despite the fall in sales.

• Net income showed a decline of 30% to reach $50.0 million, leading to diluted earnings per share falling by 30.3% year-over-year.

• Maintained a strong financial position with $698.2 million of unrestricted liquidity at the end of Q1.

Business Progress:

• Enhanced customer service with new store strategies and minimal disruption in supply, even during the Baltimore bridge collapse.

• Four new stores were opened in Q1, planned to open a new outlet in Brooklyn, NY in Q2 and 30 to 35 new warehouse stores in fiscal 2024.

• Efforts to increase the traffic to their online platform resulted in a sequential improvement in connected customer sales by 1.1%.

• Conducting educational events to enhance the skillsets of employees.

• Spartan Surfaces sales exceeded Q1 expectations due to the diversification strategy employed.

• Profits are being carefully managed against the uncertain economic environment and trying to mitigate the impact of inflation.

• Identified potential growth areas include commercial growth, resilience of the supply chain, store offerings like XL labs, and smaller format stores.

More details: Floor & Decor IR

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