Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.2
Segment Reporting
 6 Months Ended
Jun. 26, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM, its Chief Executive Officer, reviews financial information about the Company’s two operating segments, Floor & Decor Retail (“Retail”) and Spartan, for purposes of allocating resources and evaluating financial performance. The Retail segment sells hard surface flooring and related accessories through retail stores located in the United States and through its website. The Spartan segment, which engages in selling commercial surfaces and is entirely comprised of the Company’s Spartan subsidiary, does not meet the materiality criteria of ASC 280, Segment Reporting, and is therefore not disclosed separately as a reportable segment.
The Company does not report capital expenditures or assets at the segment level as that information is not regularly provided to the CODM. The Company does not have intersegment sales.
The following tables show the Company’s segment information for the periods presented:
Thirteen Weeks Ended
June 26, 2025 June 27, 2024
in thousands Retail Other (1) Consolidated Retail Other (1) Consolidated
Net sales $ 1,150,986  $ 63,164  $ 1,214,150  $ 1,073,918  $ 59,221  $ 1,133,139 
Less:
Cost of sales 638,419  601,682 
Personnel expense (2) 195,086  176,248 
Property cost (3) 141,133  132,878 
Other segment items (4) 99,298  97,599 
Operating income (5) 77,050  4,844  81,894  65,511  5,817  71,328 
Interest expense, net 1,076  663 
Income before income taxes $ 80,818  $ 70,665 
Twenty-six Weeks Ended
June 26, 2025 June 27, 2024
in thousands Retail Other (1) Consolidated Retail Other (1) Consolidated
Net sales $ 2,257,029  $ 117,861  $ 2,374,890  $ 2,118,490  $ 111,938  $ 2,230,428 
Less:
Cost of sales 1,254,508  1,192,178 
Personnel expense (2) 388,532  351,260 
Property cost (3) 282,935  261,731 
Other segment items (4) 192,075  190,760 
Operating income (5) 138,979  7,144  146,123  122,561  8,078  130,639 
Interest expense, net 2,624  2,618 
Income before income taxes $ 143,499  $ 128,021 
(1)Represents the Company’s non-reportable operating segment.
(2)Personnel expense is primarily comprised of store and store support center compensation including wages, incentive compensation, and benefits.
(3)Property cost is primarily comprised of rent, common area maintenance, utilities, property taxes, and insurance, as well as depreciation and amortization of leasehold improvements, buildings and improvements, furniture, fixtures, and equipment, and computer software and hardware at stores and the store support center.
(4)Other segment items expense is comprised of advertising costs, credit card fees, information technology costs, and other operating expenses.
(5)Includes depreciation and amortization expense of $58.1 million and $56.7 million for the thirteen weeks ended June 26, 2025 and June 27, 2024, respectively, and $116.3 million and $111.5 million for the twenty-six weeks ended June 26, 2025 and June 27, 2024, respectively, in our Retail segment.