FND - Embedded Expectations Analysis - 2020 10 08
Floor & Decor Holdings, Inc. (FND:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings with a 33.4x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management may be concerned about margin guidance, long-term growth, and operating new storesSpecifically, management may be downplaying concerns about their ability to achieve their margin guidance. Moreover, they may lack confidence in their ability to successfully invest for long-term growth, sustain high levels of e-commerce sales, and capitalize on real estate opportunities. Furthermore, they may be concerned about the amount of people that manage their system, their new warehouse store in New Jersey, and the effects of reduced store hours on gross sales. Finally, they may lack confidence in their ability to operate additional new stores, sustain customer demand, and invest in store support centers
Floor & Decor Holdings is a holding company. Through its subsidiaries, the company is a specialty retailer of hard surface flooring and related accessories. The company's customers include installers and commercial businesses, Do It Yourself customers and customers who buy the products for installation. The company's primary product categories include Tile, Wood, Laminate/Luxury Vinyl Plank, Natural Stone, Decorative Accessories, and Installation Materials and Tools. In addition to its stores, the company's website FloorandDecor.com showcases its products, provides informational training and design ideas and has its products available for sale, which a customer can pick up in store or have delivered.
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