Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.1
Segment Reporting
 6 Months Ended
Jun. 25, 2026
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 25, 2026 June 26, 2025
in thousands Retail
Other (1)
Consolidated Retail
Other (1)
Consolidated
Net sales $ 1,185,713  $ 64,557  $ 1,250,270  $ 1,150,986  $ 63,164  $ 1,214,150 
Less:
Cost of sales 602,776  638,419 
Personnel expense (2)
214,332  195,086 
Property cost (3)
146,607  141,133 
Other segment items (4)
101,474  99,298 
Operating income (5)
120,524  3,460  123,984  77,050  4,844  81,894 
Interest (income) expense, net (2,278) 1,076 
Loss on extinguishment of debt 1,328  — 
Income before income taxes $ 124,934  $ 80,818 
Twenty-six Weeks Ended
June 25, 2026 June 26, 2025
in thousands Retail
Other (1)
Consolidated Retail
Other (1)
Consolidated
Net sales $ 2,288,233  $ 114,315  $ 2,402,548  $ 2,257,029  $ 117,861  $ 2,374,890 
Less:
Cost of sales 1,211,994  1,254,508 
Personnel expense (2)
413,051  388,532 
Property cost (3)
292,650  282,935 
Other segment items (4)
195,246  192,075 
Operating income (5)
175,292  1,088  176,380  138,979  7,144  146,123 
Interest (income) expense, net (1,145) 2,624 
Loss on extinguishment of debt 1,328  — 
Income before income taxes $ 176,197  $ 143,499 
(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 $61.6 million and $58.1 million for the thirteen weeks ended June 25, 2026 and June 26, 2025, respectively, and $121.0 million and $116.3 million for the twenty-six weeks ended June 25, 2026 and June 26, 2025, respectively, in our Retail segment.