The good news from Floor & Décor's third quarter is that the shift back toward tile and wood we wrote about in September continues to show up in the numbers. Laminate/vinyl is largely just a commoditized product category at this point that doesn't flatter the company's business model but remains a necessary evil. It would have been nice to say positive comps in September (first time since January) were encouraging, but then they went right back to negative territory at a 3.8% decline quarter-to-date (QTD) while the company is cutting next year's store openings to 10 to 15 from 20. This note looks at how far the product mix has moved since our last note, how sustainable that is, and why we think the Street is still a bit too optimistic about 2027.
Upon Further Review: Floor & Decor (11/6/26)
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