The Home Depot or Lowe's of hard surface flooring.

• Tile: A wide variety of ceramic, porcelain, natural stone, and glass tiles for floors and walls.
• Wood Flooring: Includes solid hardwood, engineered wood, and laminate options for various aesthetic and durability needs.
• Luxury Vinyl Plank (LVP) & Vinyl Flooring: Durable and water-resistant flooring solutions that mimic the look of wood or stone.
• Installation Materials & Tools: Essential supplies like grout, thin-set, sealers, underlayment, and various tools required for flooring installation.
• Decorative Accessories: Items such as medallions, borders, trims, and wall backsplashes to enhance flooring and interior designs.

Floor & Decor Holdings, Inc. (symbol: FND) primarily serves individuals and small professional businesses rather than large public companies. The company operates as a specialty retailer of hard surface flooring, serving a diverse customer base through its warehouse-format stores and e-commerce platform. Its customers can be broadly categorized into three main groups:

• Do-It-Yourself (DIY) Customers: These are individual homeowners who purchase flooring materials and related accessories to install themselves, often for renovation or home improvement projects. They value Floor & Decor's wide selection, competitive pricing, and in-stock availability.
• Do-It-For-Me (DIFM) Customers / Homeowners: These are individual homeowners who purchase flooring materials from Floor & Decor but hire a professional contractor or installer to perform the installation. While a professional performs the work, the ultimate purchase decision and material selection often originate with the homeowner.
• Professional Customers (Contractors, Installers, and Designers): This category includes small to medium-sized professional contractors, remodelers, installers, and interior designers who purchase materials for their residential and light commercial projects. These professionals often benefit from Floor & Decor's dedicated Pro Services, bulk pricing, and specialized support tailored to their business needs. They are typically small businesses or sole proprietors rather than large publicly traded corporations.

Thomas V. Taylor, Chief Executive Officer

Thomas V. Taylor has served as the Chief Executive Officer and a member of the Board of Directors of Floor & Decor since December 2012. Prior to joining the company, Mr. Taylor began his career at age 16 in 1983 at a Miami Home Depot store, working his way up to Executive Vice President of Operations and then Executive Vice President of Merchandising and Marketing for all Home Depot stores. After leaving Home Depot in 2006, he spent six years as a Managing Director at Sun Capital Partners, during which he served as a board member for over twenty portfolio companies in the United States and Europe, indicating a pattern of managing companies backed by private equity firms. Mr. Taylor currently serves on the board of directors of Cooper's Hawk and previously served on the board of National Vision Holdings Inc. He will transition to the role of Executive Chair of the Board effective December 26, 2025.

Bryan H. Langley, Executive Vice President and Chief Financial Officer

Bryan H. Langley is the Executive Vice President and Chief Financial Officer of Floor & Decor, with responsibility for accounting and controllership, financial planning and analysis, financial reporting, tax, internal audit, business intelligence and data science, and treasury functions. He joined the company in 2014 as Financial Reporting Manager and held various roles of increasing responsibility, including Director of Financial Reporting, Senior Director of Financial Planning and Analysis, and Vice President, Financial Planning and Analysis, before being promoted to his current role in 2022. Before joining Floor & Decor, Mr. Langley held various finance and risk management roles at Delta Air Lines, Inc. from 2011 to 2014. He began his career in public accounting from 2008 to 2011, holding positions in transaction services and auditing at KPMG LLP. Mr. Langley is a Certified Public Accountant and holds both a B.B.A. in Accounting and a Master of Accountancy from the University of Georgia.

Bradley Paulsen, President (Incoming Chief Executive Officer)

Bradley Paulsen joined Floor & Decor as President in March 2025, overseeing the company's stores, merchandising, supply chain, and human resources functions. He is appointed to become Chief Executive Officer and join the Board of Directors, effective December 26, 2025. Prior to his role at Floor & Decor, Mr. Paulsen served as CEO, North America for Rentokil Initial plc from December 2023 to February 2025. From April 2021 to December 2023, he was the chief executive officer of Rexel USA. Mr. Paulsen also held various leadership roles at HD Supply, including Chief Operating Officer, from 2015 to 2021, and spent nine years in leadership and merchandising roles at Home Depot. He earned a Bachelor of Science in Economics from the United States Military Academy at West Point and a Master of Business Administration from Vanderbilt University.

David Christopherson, Executive Vice President, Chief Administrative Officer & Chief Legal Officer

David Christopherson serves as the Executive Vice President, Chief Administrative Officer, and Chief Legal Officer, with responsibilities including information technology, eCommerce, operations, legal, safety & loss prevention, risk management, and sustainability functions. He joined Floor & Decor in 2013 as General Counsel and Secretary, was promoted to Senior Vice President in 2015, Executive Vice President in 2018, and assumed his current role in 2024. Previously, Mr. Christopherson was the Vice President, General Counsel, and Secretary of Teavana Holdings, Inc.

Steven A. Denny, Executive Vice President, Store Operations

Steven A. Denny is the Executive Vice President, Store Operations at Floor & Decor, responsible for all store regions, pro, commercial, and design services. He joined the company in 2013 as a Chief Executive Merchant, advancing to Senior Vice President, Stores in 2017 and Executive Vice President, Stores in 2020. From 2000 to 2013, Mr. Denny held various positions at Home Depot, including Western Division Field Merchandise Manager. He brings over 35 years of retail and commercial experience from his time with Builders Square, BMC West, Ernst Home & Nursery, and Home Depot.

The key risks to Floor & Decor's (FND) business are primarily tied to macroeconomic conditions and the housing market, intense competition, and supply chain and tariff challenges.

1. Sensitivity to Macroeconomic Conditions and the Housing Market: Floor & Decor's business is highly dependent on the health of the residential housing market. Factors such as rising interest rates, inflation, and a general economic slowdown can significantly impact consumer confidence and discretionary spending, leading to reduced home sales, refinancing activity, and renovation projects. This, in turn, can decrease demand for flooring materials and adversely affect the company's revenue growth and profitability.
2. Intense Competition: The hard surface flooring market is highly competitive. Floor & Decor faces significant competition from large home improvement retailers like Home Depot and Lowe's, as well as other specialty flooring stores and online platforms. These larger competitors often possess substantial pricing power and extensive supplier relationships. Should they increase their flooring product offerings, lower prices, or introduce exclusive deals, Floor & Decor could experience reduced market share and pressure on its margins.
3. Supply Chain and Tariff Risks: Floor & Decor relies heavily on foreign imports for a significant portion of its products, with approximately 18% to 25% of products sold being produced in China. This dependence exposes the company to risks associated with global supply chain disruptions, increased transportation costs, and changes in international trade policies or tariffs. Such factors can lead to higher costs of goods sold, inventory management challenges, and ultimately impact profit margins and product availability.

• For hard-surface flooring, Floor & Decor estimated the total addressable market (TAM) to be approximately $41 billion as of its 2022 Investor Day. Other estimates for the hard surface flooring market, including installation materials and tools, range from approximately $42 billion to $50-55 billion.
• For relevant adjacent categories, such as vanities, bathroom accessories, shower doors, and custom countertops, the estimated addressable market is between $8 billion and $13 billion.
• The domestic addressable commercial flooring market, encompassing installation categories, is estimated by Floor & Decor to be approximately $16 billion.

Floor & Decor (FND) is anticipated to drive future revenue growth over the next two to three years through several key strategies:

1. New Warehouse Store Expansion: Floor & Decor consistently identifies the opening of new warehouse-format stores as a primary driver of growth. The company plans to open approximately 25 new warehouse stores in fiscal year 2025, with a long-term goal of operating 500 stores across the United States. This ongoing physical expansion aims to increase its market presence and customer reach.
2. Growth in Pro and Commercial Sales: The company is strategically focused on expanding its sales to professional customers and its commercial business, particularly through Spartan Surfaces. Pro sales have already demonstrated significant penetration, accounting for approximately 48% of retail sales in Q2 2024 and 50% in fiscal 2025. Spartan Surfaces is targeting specific commercial sectors, including healthcare, education, senior living, and hospitality.
3. Expansion of Product Assortment and Higher-Margin Offerings: Floor & Decor is enhancing its product range with innovative and trend-forward merchandise. This includes introducing new categories such as outdoor products, acoustic wood panels, an expanded selection of tiles, and a high-quality semi-custom cabinet program available in select stores and online. Strategic merchandising efforts are also aimed at driving sales towards higher-margin products, contributing to an improved gross margin rate.
4. Market Share Gains: Despite operating in a challenging macroeconomic environment characterized by sustained softness in consumer demand and a downturn in existing home sales, Floor & Decor has demonstrated its ability to gain market share. This resilience and continued market share capture position the company for accelerated revenue growth when broader market conditions improve.
5. Anticipated Improvement in Comparable Store Sales: While Floor & Decor has experienced declines in comparable store sales in recent periods, there is an expectation of improvement. The Q4 2024 earnings call noted a sequential improvement in comparable store sales, partly attributed to modest growth in existing home sales. Management has expressed confidence in fiscal 2025, guiding for approximately 3% comparable store sales growth, anticipating a rebound as housing market fundamentals improve.

Share Repurchases

• Floor & Decor has not engaged in significant share repurchases, with a reported buyback yield of 0.0% for the latest twelve months and an average of -0.1% for fiscal years ending December 2020 to 2024.
• The company's strategy indicates a lack of dividend or share repurchases, as it is focused on reinvesting in the business for growth.
• As of November 5, 2025, the shares buyback ratio was -0.49%, suggesting a net issuance rather than repurchase during that period.

Share Issuance

• The diluted weighted average shares outstanding are estimated to be approximately 109 million for fiscal year 2025.
• There has been a slight but consistent increase in shares outstanding, with 107,637,510 shares issued and outstanding at June 26, 2025, compared to 107,356,999 at December 26, 2024.
• Shares outstanding increased by 0.41% in 2024 from 2023, and by 0.41% in 2023 from 2022.

Capital Expenditures

• Total capital expenditures are planned to be between approximately $280 million to $300 million for fiscal 2025, with an alternative estimate ranging from $310 million to $360 million.
• The primary focus of capital expenditures is on growth initiatives, including opening 20 new warehouse-format stores in fiscal 2025 and beginning construction on stores for fiscal 2026, which are expected to require approximately $200 million to $235 million.
• Historical annual capital expenditures were $446.826 million in 2024, $547.613 million in 2023, and $456.6 million in 2022.