Floor & Decor’s net income declined 26.6% in the second quarter of 2020, dropping to $32.0 million compared with $43.6 million in the second quarter of 2019. Diluted earnings per share fell from $0.42 to $0.30.
Net sales decreased 11.1% to $462.4 million, with comparable store sales dropping 20.8%.
Floor & Decor stated the COVID-19 pandemic had a material negative impact on its operations and financial results. As of June, the company was able to bring all of its stores back to full operations following mass shutdowns spurred by the pandemic. The reopenings led store sales to accelerate toward the end of the second quarter, according to CEO Tom Taylor.
“While the impact of the COVID-19 pandemic remains uncertain into the second half of 2020, we believe we have a flexible business model that can be responsive to local market conditions and we have multiple avenues to remain engaged with our Pro and DIY customers,” Taylor said in a statement.
The company increased its estimate for new stores opening in 2020 from 11 to 13 warehouse stores.
“As we look to 2021 and beyond, we are excited about the new store pipeline for 2021, which we expect will lead to more balanced openings throughout the year, and we intend to grow our new store base by approximately 20% annually for the next several years,” Taylor added.
The full earnings report can be found here.
