About

One-stop Shop for All Your Flooring Needs

Floor & Decor is a leading specialty retailer of hard-surface flooring, offering what we believe to be the industry’s broadest in-stock selection of tile, wood, laminate, vinyl, and natural stone flooring. In addition, Floor & Decor stocks the necessary tools, decorative materials and related accessories for one-stop shopping for hard-surface flooring projects. Floor & Decor sources directly from manufacturers around the globe to bring the world’s best and most-innovative flooring to its customers, at everyday low prices. Its large, warehouse-format stores typically stock approximately 4,100 products. The company was founded in 2000 and is headquartered in Atlanta, Ga.

Who We Are - Video

Experienced Leadership with a Proven Track Record

Experienced Leadership with a Proven Track Record

Led by our CEO, Tom Taylor, our leadership team possesses significant expertise, having previously worked for leading retailers and other companies serving in various core roles, including store operations, merchandising, marketing, real estate, e-commerce, supply chain management, finance, legal, and information technology.

Floor & Decor at a Glance

Total Sales (in millions)
CAGR: 23.3%
Warehouse Store Count
Potential of 400 U.S. stores
Store counts excludes two small design centers in New Orleans, LA, and Dallas, TX. Store count as of December 2020. Management estimates of potential within the next 8-10 years based on a third-party study.

Source: 2020 10-K.

This information is not a comprehensive statement of the Company’s financial condition or results for the year or quarter ended December 31, 2020. See the Company’s Annual Report on 10-K for more information, including Risk Factors and Forward-Looking Statements. This information and other information about the Company are available in the Company’s filings with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC’s website at www.sec.gov and on our SEC filings page.

Floor & Decor is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories. We believe that we offer the industry's broadest in-stock assortment of tile, wood, laminate, vinyl, and natural stone flooring along with decorative and installation accessories at everyday low prices positioning us as the one-stop destination for our customers' entire hard surface flooring needs. Our warehouse-format stores, which average approximately 78,000 square feet, are typically larger than any of our specialty retail flooring competitors' stores. When our customers walk into a Floor & Decor store for the first time, we believe they are amazed by our visual presentation, our store size, our everyday low prices and the breadth and depth of our merchandise.


Pillars of Growth

We believe there is an opportunity to significantly expand our store base in the United States from 133 warehouse-format stores, at the end of fiscal 2020, to approximately 400 stores nationwide over the next 8-10 years based on our internal research with respect to housing density, demographic data, competitor concentration and other variables in both new and existing markets. We plan to target new store openings in both new and existing, adjacent and underserved markets. We have a disciplined approach to new store development, based on an analytical, research-driven site selection method and a rigorous real estate approval process. We believe our new store model delivers strong financial results and returns on investment, targeting net sales on average of $12 million to $15 million and approximately $2.5 million in four-wall adjusted EBITDA before pre-opening expenses in the first year, pre-tax payback in approximately two and a half to three and a half years and cash-on-cash returns of approximately 50% in the third year. Over the past several years, we have made significant investments in personnel, information technology, supply chain, warehouse infrastructure, and connected customer strategies to support our current growth and the expansion of our stores. We intend to grow our store base by approximately 20% annually for the next several years. The performance of our new stores opened over the last three years, the performance of our older stores over that same time frame, our disciplined real estate strategy, and the track record of our management team in successfully opening retail stores support our belief in the significant store expansion opportunity.

We expect to grow our comparable store sales by continuing to offer our customers a dynamic and expanding selection of compelling, value-priced hard surface flooring and accessories while maintaining strong service standards for our customers. We regularly introduce new products into our assortment through our category product line review process, including collaboration with our vendors to bring to market innovative products such as waterproof rigid core vinyl and water-resistant laminates. Because almost 60% of our stores have been opened for less than five years, we believe they will continue to drive comparable store sales growth as they ramp to maturity. We believe that we can continue to enhance our customer experience by focusing on service, optimizing sales and marketing strategies, investing in store staff and infrastructure, remodeling existing stores and improving visual merchandising and the overall aesthetic appeal of our stores. We also believe that growing our proprietary credit offering, Pro and designer strategies, further integrating connected customer strategies, and enhancing other key information technology, will contribute to increased comparable store sales. As we increase awareness of Floor & Decor’s brand, we believe there is a significant opportunity to gain additional market share, especially from independent flooring retailers and large format home improvement retailers. We are also adding adjacent categories that align with flooring projects like vanities, bathroom accessories, frameless glass in the bathroom, and customized countertops for the kitchen.

Floor & Decor’s online experience allows our Pro, BIY and DIY customers to explore our product selection and design ideas before and after visiting our stores and offers the convenience of making online purchases for delivery or pick up in-store. We believe our online platform reflects our brand attributes and provides a powerful tool to educate, inspire and engage our consumers, and we view our website and multi-channel strategies as leading our brand. Our research indicates that approximately 80% of customers who shopped at Floor & Decor in the last two years have visited our website. We continuously invest in our connected customer strategies to improve how our customers experience our brand. For example, we regularly update our website, which provides our customers with inspirational vignettes, videos, products, a room visualizer, and education. Additional initiatives include: (i) implementing our new Customer Relationship Management ("CRM") to obtain a single view of our customers, (ii) developing personalized content based on location, purchase and browsing history, (iii) developing more relevant content and improved search and purchasing tools to help customers add decorative and installation accessories and (iv) creating frequently asked questions to help customers choose the best product for their jobs. We believe this reinforces our unique customer value proposition and ultimately drives sales. Our e-commerce sales represented approximately 19% of our total net sales for fiscal 2020. While the hard surface flooring category has a relatively low penetration of e-commerce sales due to the nature of the product, we believe our connected customer presence represents an attractive growth opportunity to drive consumers to Floor & Decor.

We believe our differentiated focus on Pro customers has created a competitive advantage for us and will continue to drive our net sales growth. We will invest in gaining and retaining Pro customers due to their frequent and high-ticket purchases, loyalty, and propensity to refer other potential customers. We have made important investments in the Pro services regional team, including the addition of Regional Pro Directors, to better recruit and train the Pro services team in each store. We have also invested in new technology, such as integrated CRM software, to help us further penetrate and grow our Pro business, dedicated phone lines for our Pro customers to call and text, commercial credit and open account terms, jobsite delivery, a dedicated website for Pro customers, training on technical flooring installation solutions, and tools to facilitate large commercial jobs sourced throughout the store. Recently, we introduced an industry leading Pro credit card with terms and tools that help our professional customers manage their business better. We plan to further invest in initiatives to increase speed of service, improve financing solutions, leverage technology, elevate our Pro branding, dedicate additional store staffing to support Pro customers, and enhance the in-store experience for our Pro customers. We have implemented a “Pro Zone” in a majority of our stores that focuses on the specific needs of the Pro customer as well as a Pro loyalty program in all of our stores. Additionally, we communicate our value proposition and various Pro-focused offerings by hosting a number of Pro networking events. Building on our success in serving the Pro customer, in 2016 we entered the adjacent commercial sales channel, thereby increasing the size of the addressable market we serve. Our commercial effort, which we have branded Floor & Decor Commercial, features a commercial sales team that targets corporate customers, large scale multi-family developers, large home builders, hotels, restaurants, and retailers with large flooring needs. We believe Pro customers will continue to be an integral part of our sales growth, and Floor & Decor Commercial will provide incremental revenue and profit opportunities in the future.

Our Design Services offer a unique to large format retail experience, which leads our customers through a seamless, inspirational design process to complete their projects. Our research tells us when a designer is involved, customer satisfaction is higher, the average ticket is approximately 3x higher compared with customers who do not use a designer, and design appointments close at a higher rate than typical transactions. We position our designers as experts through our inspirational content and promote design services through all channels. We intend to continue to invest in recruiting top design talent, training, tools and technology. Design-focused training is a priority to ensure our teams are knowledgeable and prepared to deliver a start-to-finish consultative selling experience. We believe the planned rollout of our CRM technology to our design teams this year will enhance communication and workflow, from initial customer interaction through securing the close of the sale and beyond. Recent realignment within the regional store leadership organization to support design is expected to amplify the effectiveness of influence and high-level strategic execution. Additionally, we intend to continue to test advanced service options in various markets to further set us apart.

Source: 2020 10-K

Our Store Whitespace Potential is Significant

Distribution Center IconDistribution Center Design Center IconDesign Center
Warehouse Store Count
Potential of 400 U.S. stores
Store counts excludes two small design centers in New Orleans, LA, and Dallas, TX. Store count as of December 2020. Management estimates of potential within the next 8-10 years based on a third-party study.

Source: 2020 10-K.

Our Commitment to Global Responsibility

Floor & Decor is committed to giving back to the communities we serve, being environmentally conscious and operating a responsible supply chain that focuses on the quality of our products and improves the lives of workers involved in manufacturing our products.

Sustainable, Recycled, Eco-friendly Flooring Products
FAQs

FAQs

View frequently asked questions.

View FAQs
Contacts

Contacts

View IR contact & Transfer Agent information.

View IR Contacts