FNDNYSERetail-Lumber & Other Building Materials DealersUS GAAP · USD

Floor & Decor Holdings, Inc.

Floor & Decor Holdings, Inc. is a U.S. specialty retailer focused on hard surface flooring and related installation materials, serving both homeowners and trade professionals. The company operates warehouse-format stores and design studios, combining a broad in-stock assortment with direct sourcing and omnichannel tools to support flooring projects from inspiration to purchase.

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Revenue4,684m USD
+5.1 %y/y
Operating profit (EBIT)270m USD
+5.4 %y/y
EBIT margin5.8%
+0.0 ppy/y
Net income209m USD
+1.3 %y/y
Free cash flow382m USD
−36.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01,0002,0003,0004,0005,000m USD2020: 2,426 m USD2020: EBIT 215 m USD20202021: 3,434 m USD2021: EBIT 339 m USD20212022: 4,264 m USD2022: EBIT 397 m USD20222023: 4,414 m USD2023: EBIT 321 m USD20232024: 4,456 m USD2024: EBIT 256 m USD20242025: 4,684 m USD2025: EBIT 270 m USD20254,684270
RevenueOperating profit (EBIT)

Business

Share of revenue
Hard surface flooring70 %

Core flooring products including laminate, vinyl, tile, wood, and stone.

Installation materials and tools15 %

Underlayment, adhesives, grout, trims, and related project supplies.

Decorative accessories and adjacent categories8 %

Moldings, transitions, and other finishing products sold alongside flooring.

Commercial surfaces4 %

Products and solutions sold to commercial customers and projects.

Services and omnichannel support3 %

Design services, Pro support, pickup, delivery, and digital tools.

Products

Reported · share of revenue
24.6%22.7%20.4%16.4%8.7%FY2025100 %
  • Laminate and Vinyl24.6 %
  • Tile22.7 %
  • Installation Materials and Tools20.4 %
  • Decorative Accessories and Wall Tile16.4 %
  • Wood7.1 %
  • Other8.7 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company sells to two main customer groups: professional installers and commercial buyers, and homeowners who shop either DIY or buy-it-yourself for professional installation. Pro customers are important because they buy repeatedly, often in larger ticket sizes, and value inventory depth, credit, storage, and dedicated sales support. Homeowners use the stores and website to research projects, compare products, and complete renovation purchases with immediate availability.

Pro customers

Professional installers and trade buyers purchase in volume and return frequently for flooring, tools, and installation materials.

Homeowners - DIY

Homeowners buying materials to install themselves use the stores and website for inspiration, pricing, and product availability.

Homeowners - BIY

Homeowners buy products for professional installation and want broad selection, fast pickup, and project support.

Commercial businesses

Commercial buyers source surfaces and related products for renovation and construction projects.

Strategy

The company is expanding its store base while preserving its warehouse-format model, which relies on deep in-stock inventory and immediate product availability. It is also investing in distribution, technology, and e-commerce to strengthen the connected-customer experience and support both Pro and homeowner demand. Direct sourcing, localized merchandising, and low advertising intensity are central to its value proposition and cost structure.

Store expansionShort term

New warehouse-format stores extend the brand and increase access to local flooring demand.

Connected customer experienceMedium term

Digital tools help customers research, plan, and buy across store and online channels.

Supply chain and sourcing efficiencyMedium term

Direct sourcing supports lower prices, faster market response, and better product control.

Geography

Floor & Decor is primarily a U.S. business, with 270 warehouse-format stores and five design studios across 39 states as of fiscal 2025. Its growth model depends on opening new stores, adding distribution capacity, and tailoring assortments locally, so geographic expansion is a key operating lever. The company also faces U.S.-centric exposure to housing demand, interest rates, tariffs, and regional construction activity.

Risks

Demand is tied to housing turnover, renovation activity, and consumer confidence, so high interest rates and weak home sales can pressure traffic and basket size. The company also depends on third-party technology, cloud services, and a complex global supply chain, which creates cyber, operational, and tariff-related exposure. Inventory valuation, shrink, and vendor rebate estimates can also move reported margins and operating income.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Macroeconomic housing slowdown1Cybersecurity and third-party IT dependence2Tariffs and trade policy3Inventory shrink and valuation4Supplier concentration5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Macroeconomic housing slowdownImpact: HighLikelihood: High

    Flooring purchases are linked to home sales, remodeling, and discretionary spending.

    Exposure: U.S. renovation and housing markets

  2. Cybersecurity and third-party IT dependenceImpact: HighLikelihood: Medium

    Outsourced and cloud-based systems could be disrupted or breached, affecting sales and operations.

    ExposureStore systemsE-commerceCustomerSupplier data
  3. Tariffs and trade policyImpact: MediumLikelihood: High

    Imported merchandise and alternative sourcing can raise costs and pressure margins.

    ExposureInventory costCost of salesRetail pricing
  4. Inventory shrink and valuationImpact: MediumLikelihood: High

    Reserve estimates depend on sales trends, salability, and shrink experience.

    Exposure: Gross margin and operating income

  5. Supplier concentrationImpact: MediumLikelihood: Low

    A large supplier accounted for 10% of net sales in fiscal 2025, creating sourcing dependence.

    Exposure: Product availability and procurement terms

Accounting

Judgemental items
Revenue recognition timing

Sales are recognized when control transfers, including some deferred cases for merchandise not ready at sale.

Impact: Can shift revenue between periods for store, pickup, and delivery orders

Inventory valuation and shrink reserves

Management estimates reserves for shrink, aged inventory, special orders, and net realizable value.

Impact: A 10% reserve change would have affected operating income by about $1.8 million in fiscal 2025

Vendor rebates and allowances

Rebates and promotional allowances are estimated and recorded against inventory or expenses.

Impact: Affects gross margin and promotional expense timing

Lease accounting

Warehouse stores, studios, and distribution centers are lease-intensive operating assets.

Impact: Influences fixed occupancy costs and balance sheet lease liabilities

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Last updated: 24/09/2026