Floor & Decor Holdings, Inc. reported its Q2 fiscal 2024 results, showing a decline in sales and earnings due to challenging market conditions. 

Net sales for the quarter, ended June 27, 2024, were $1,133.1 million, a decrease of 0.2% from $1,135.9 million in the second quarter of fiscal 2023. Comparable store sales decreased 9.0%. The retailer opened five new warehouse stores, ending the quarter with 230 warehouse stores and five design studios. Net income was $56.7 million, down 20.7% from $71.5 million in the second quarter of fiscal 2023. 

For the first half of fiscal 2024, net sales of $2,230.4 million decreased 1.2% from $2,258.0 million in the same period of fiscal 2023. Comparable store sales decreased 10.3%. Net income of $106.7 million decreased 25.4% from $143.0 million in the same period of fiscal 2023.

“We and our industry continue to contend with monetary policy affecting the housing market and repair and remodeling spending, including ongoing soft demand for large project discretionary hard surface flooring," said Floor & Decor CEO Tom Taylor. "Consequently, our second-quarter total and comparable store sales were modestly below our expectations. However, our gross margin rate exceeded our expectations, which, coupled with prudent expense management, helped mitigate most of the impact from weak sales."

The company maintains its 2024 store opening plans but expects to slow expansion in 2025 due to current market conditions. Taylor said the company plans to open approximately 25 new warehouse stores in 2025 and to operate 500 warehouse stores in the United States in the long term.