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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