Floor & Decor Hldgs — Income Statement, Cash Flows & Balance Sheet
Is Floor & Decor profitable?
Floor & Decor kept growing revenue and maintained profitability, but margins remain under pressure from rising costs.
| Metric | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| Net sales ($000s) | $4,413,884 | $4,455,770 | $4,684,088 | +5.1% |
| Gross profit margin | 42.1% | 43.3% | 43.6% | +0.3 pts |
| SG&A as % of net sales | 34.8% | 37.5% | 37.9% | +0.4 pts |
| Operating income ($000s) | $321,428 | $256,176 | $270,070 | +5.4% |
| Net income ($000s) | $245,980 | $205,872 | $208,647 | +1.3% |
Revenue grew meaningfully and the gross margin ticked higher, suggesting Floor & Decor is holding its pricing power. However, selling and administrative costs are consuming an ever-larger share of sales — driven largely by lease expenses from continued store expansion — which is why operating income is still well below its 2023 peak despite higher revenues. Net income was essentially flat year over year.
Where does Floor & Decor's revenue come from?
Floor & Decor sells across several flooring categories, with installation materials and wood showing the strongest momentum.
| Product Category | FY2024 Sales ($000s) | FY2025 Sales ($000s) | Change |
|---|---|---|---|
| Laminate & vinyl | $1,104,932 | $1,154,538 | +4.5% |
| Tile | $1,029,946 | $1,064,884 | +3.4% |
| Installation materials & tools | $893,714 | $957,195 | +7.1% |
| Wood | $279,134 | $332,754 | +19.2% |
| Natural stone | $204,968 | $201,972 | -1.5% |
No single category dominates — the top four each contribute roughly 20–25% of total sales — which gives the business some diversification. Wood was the standout grower, and installation materials also grew well ahead of the overall company rate. Natural stone was the only category to slip. The company operates as one reportable retail segment, so there is no geographic or profit-by-segment breakdown.
Does Floor & Decor generate cash?
Floor & Decor generates solid operating cash flow, but it dropped sharply as the business shifted from inventory tailwind to headwind.
| Cash Flow Item | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Operating cash flow ($000s) | $803,589 | $603,155 | $381,836 |
| Capital expenditures ($000s) | ($547,613) | ($446,826) | ($317,764) |
| Free cash flow ($000s) | $255,976 | $156,329 | $64,072 |
Operating cash flow has fallen significantly over two years. The main reason: in 2023, inventory reductions released a large amount of cash; in 2025, inventory was roughly flat and trade payables fell by over $115 million, both of which reduced cash generation. The silver lining is that capital spending (new store builds) is declining as growth moderates, which kept free cash flow (operating cash minus capital expenditures — a common measure of cash left after maintaining and growing the business) positive. The ABL revolving credit line was unused all year, reflecting financial flexibility.
How strong is Floor & Decor's balance sheet?
Floor & Decor carries manageable debt but has a large and growing lease obligation tied to its warehouse-store footprint.
| Item | FY2024 | FY2025 | Change |
|---|---|---|---|
| Cash & equivalents ($000s) | $187,669 | $249,296 | +32.8% |
| Term loan outstanding ($000s) | $200,293 | $198,190 | -1.1% |
| Total lease liabilities ($000s) | $1,489,928 | $1,795,259 | +20.5% |
| Total stockholders' equity ($000s) | $2,170,158 | $2,408,836 | +11.0% |
Traditional debt is modest and shrinking, with the term loan due in 2027 and an $800 million revolving credit line sitting entirely untapped. The more significant obligation is the lease liability — Floor & Decor commits to long-term leases for its large-format stores, and those commitments grew substantially as new stores opened. Equity grew healthily, funded by retained earnings, which is a positive sign. Cash on hand rose to nearly $250 million, providing a comfortable cushion.