Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.3
Segment Reporting
 9 Months Ended
Sep. 24, 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
September 24, 2026 September 25, 2025
in thousands Retail
Other (1)
Consolidated Retail
Other (1)
Consolidated
Net sales $ 1,150,209  $ 64,352  $ 1,214,561  $ 1,118,570  $ 60,957  $ 1,179,527 
Less:
Cost of sales 638,753  625,690 
Personnel expense (2)
193,739  189,176 
Property cost (3)
147,208  142,795 
Other segment items (4)
95,812  92,159 
Operating income (5)
74,697  3,284  77,981  68,750  3,267  72,017 
Interest (income) expense, net (382) 591 
Income before income taxes $ 78,363  $ 71,426 
Thirty-nine Weeks Ended
September 24, 2026 September 25, 2025
in thousands Retail
Other (1)
Consolidated Retail
Other (1)
Consolidated
Net sales $ 3,438,442  $ 178,667  $ 3,617,109  $ 3,375,600  $ 178,817  $ 3,554,417 
Less:
Cost of sales 1,850,747  1,880,198 
Personnel expense (2)
606,790  577,708 
Property cost (3)
439,858  425,729 
Other segment items (4)
291,058  284,236 
Operating income (5)
249,989  4,372  254,361  207,729  10,411  218,140 
Interest (income) expense, net (1,527) 3,215 
Loss on extinguishment of debt 1,328  — 
Income before income taxes $ 254,560  $ 214,925 
(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 $61.1 million and $58.5 million for the thirteen weeks ended September 24, 2026 and September 25, 2025, respectively, and $182.1 million and $174.8 million for the thirty-nine weeks ended September 24, 2026 and September 25, 2025, respectively, in our Retail segment.