In 2018 Floor & Decor opened 17 stores, making the 6th year of at least 20% unit store growth, Taylor shared in the earnings call. ![]() New stores, new markets and expand footprint in existing ones ![]() Here’s Floor & Decor’s secret retail sauce: Lang held vice president finance and CFO positions with Zumiez, Carter’s and Blockbuster and Laube was president of Party City and vice president of merchandising at Bath and Body Works and Linens ‘n Things before that. Before joining Floor & Decor in 2012, Taylor started his career on the floor of Miami Home Depot store in 1983, working his way up to executive vice president of operations with responsibility for all 2,200 Home Depot stores and then executive vice president of merchandising and marketing, also for all stores. It is just what you’d expect from an executive team with this much depth. It is back-to-basic retail at its best: find the best locations, design the best stores, sell the hottest products at attractive prices and satisfy the customers at their point of need. In its latest earnings call, Taylor, along with CFO Trevor Lang and chief merchant Lisa Laube, shared the four pillars on which it is building its business. In 2018 Floor & Decor achieved a net income of $96.8 million, up 13% over 2017, after opening 17 new stores in the year. “ Ultimately this will be a company that can achieve somewhere between $5 and $7 billion a year in revenue and likely returning a lot of cash to shareholders.” “I feel confident that FND can continue to grow while opening up boxes and achieving its goal of 400 warehouses nationwide,” he wrote. “We enter 2019 in a strong position and remain committed to and building on the same strategies and investments in our business that have made us successful for almost two decades.”įloor & Decor’s ambitions are aggressive, but achievable, believes Donovan Royal, contributor to Seeking Alpha. “We remain highly confident in the long-term momentum that is building at Floor & Decor,” CEO Tom Taylor said in a statement. Floor & Decor would have ended 2018 with double-digit same-store-sales growth, continuing a 10-year winning streak of double-digit CSS growth, but for the impact of Hurricane Harvey on its Houston market. ![]() As a result, it does more business than Lumber Liquidators, $1.7 billion in FY 2018, with about one-fourth the total number of stores.Īnd while Lumber Liquidators expects to generate mid-to-upper single digit growth and mid-single digit comp store sales growth in FY 2018, Floor & Decor killed it with 23.5% net sales increase and 9.2% comp sales growth over 2017. Its stores are beautiful and shopping there feels more luxurious. Like Lumber Liquidators, it sells only hard floor coverings, as well as hard surfaces for kitchen and bath, so it is focused on what’s hot in flooring today, not dragged down by carpet like so many other independents.īut unlike Lumber Liquidators with its heavy discount/promotional positioning, Floor & Decor aims for a more discerning buyer. It bumped Lumber Liquidators with $1 billion in 2017 sales and nearly 400 locations out of its first-class ranking in 2016.įloor & Decor is the category killer in specialty floor retail. Sitting on the top of that heap is Floor & Decor with 100 stores. In 2017 Floor Covering Weekly’s top 50 flooring specialty retailers held some 12% of the total product market. Complicating matters further in the independent’s space has been the rise of aggressive specialty flooring retailers that leverage expertise in the flooring category against the big boxes’ more generalized home improvement positioning.
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