What happened

Shares of flooring retailer Floor & Decor (NYSE:FND) took a hit Thursday, falling as much as 22.3%. At the time of this writing, shares are down 15%.

The stock's pullback is likely primarily due to Floor & Decor's lower-than-expected revenue and its reduced outlook for the full year. Floor & Decor lowered its outlook for revenue, comparable-store sales growth, and adjusted earnings per share.

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Image source: Getty Images.

So what

Floor & Decor reported revenue and non-GAAP EPS of $434.3 million and $0.27, respectively. On average, analysts were expecting revenue and non-GAAP EPS of about $436 million and $0.25. These metrics compare to revenue of $334 million and non-GAAP EPS of $0.20 in the year-ago quarter.

CEO Tom Taylor was happy with the quarter's performance, which saw comparable-store sales growth of 11.4% when including approximately 280 basis points of benefit in the year-over-year comparison because of the hurricane in Houston in the year-ago quarter. "Our new stores' first-year sales and profitability have never been higher, and this reinforces our confidence in the 400-store opportunity we see for Floor & Decor," Taylor said.

Now what

Floor & Decor said it expected third-quarter revenue between $427 million and $433 million and non-GAAP EPS between $0.21 and $0.23. On average, analysts were expecting third-quarter revenue of $435 million and non-GAAP EPS of $0.24.

The company's revised full-year guidance calls for revenue between $1.696 billion and $1.710 billion, comps growth of 9% to 10%, and non-GAAP EPS between $0.93 and $0.96. Management previously expected these metrics to come in at $1.705 to $1.735 billion, 9.5% to 11.5%, and $0.93 to $1.01, respectively.

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