What happened?
Shares of Floor & Decor Holdings Inc. (FND -1.20%), a leading specialty retailer of hard-surface flooring with products including tile, wood, and stone, among others, are surging 15% higher as of 11:33 a.m. EDT after the company released strong third-quarter results and boosted guidance.
So what
Starting from the top, net sales jumped 26% during the third quarter compared to the prior year, slightly topping estimates and reaching $435.9 million. The top-line increase was partially driven by a strong 11.1% gain in comparable-store sales. Adjusted earnings per share checked in at $0.24, ahead of analysts' estimates calling for $0.22 per share and a 41% gain over the prior year's $0.17 result.
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Said Chief Executive Officer Tom Taylor in a press release:
We are very pleased with the Company's strong growth and momentum as we continue to reinforce the strength of our business in the hard surface flooring category. During the third quarter of 2018, we successfully rolled out our Pro Premier Rewards program and opened seven new stores, further expanding our presence across the country. We are excited to bring our innovative product offerings, in-stock inventory, and compelling value proposition to a growing number of both consumers and professional customers.
Now what
It was a strong enough quarter that management upped its full-year guidance. It now expects net income to check in between $1.09 and $1.12 per share, up from the previous guidance between $1.07 and $1.11 per share. This quarter might not be a one-hit wonder, either, as the company has posted nine consecutive years of comparable store growth and intends to grow its store base by roughly 20% annually over the next several years. Management even believes there is potential to hit 400 stores, up from 83 at the end of 2017, which offers investors a solid growth story going forward.
