Already one of Fortune’s 100 fastest-growing companies, flooring and accessories retailer Floor & Decor (FND) continues to expand. Meanwhile, FND stock is laying the groundwork for a fresh breakout, earning it a spot on the IBD Breakout Stocks Index.
On Aug. 18, Floor & Decor opened its 150th store in South Austin, Texas. Since then, the Atlanta-based retailer has also opened locations in Bohemia, N.Y., and Naples, Fla. The company says it has the potential to expand to about 400 stores nationwide over the next eight to 10 years.
Floor & Decor provides homeowners and professional contractors access to superstore selection at warehouse prices. It also offers design services in its large-format stores, which typically stock approximately 4,100 products.
The hardwood and tile specialist finds the design services it offers present a significant upsell opportunity. It says purchases are three times higher when customers use a designer compared to when they shop unassisted.
Floor & Decor Earns No. 1 Rank In Industry
With the highest-possible 99 Composite Rating, Floor & Decor ranks No. 1 in the Retail/Wholesale-Building Products group. Earnings shot up 462% last quarter, bringing its average EPS growth over the last three quarters to 214%. Analysts see flat growth for Q3 but a 64% gain for the full year.
On the revenue side, Floor & Decor nailed down an 86% gain, marking a fourth straight quarter of acceleration. That performance helps the company earn an A SMR Rating, which tracks sales growth, profit margins and return on equity.
FND Stock Designing New Breakout
With some knotty points along the way, Floor & Decor has continued to rise sharply off its coronavirus lows back in March 2020. The stock has generally found support or quickly recovered above its 10-week moving average during that climb.
A breakout marks an all-time high for Floor & Decor.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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