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Floor & Decor (FND) Expands Business, Unveils 10th Store in NY
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Floor & Decor Holdings, Inc. (FND - Free Report) recently announced the opening of a new store location in Ocean Township, New Jersey. This marks the company's 10th store in the New York City Metropolitan Area, signifying its continuous focus on domestic expansion.
Situated at 1560 NJ Highway 35, the warehouse store and design center will open with a team of approximately 50 full-time and part-time associates. This expansion reflects the company's commitment to serving professionals and homeowners nationwide and offering easier, inspired and affordable renovation solutions.
Focus on Expansion
Shares of FND have increased 16.1% in the year-to-date period compared with the industry’s rise of 2.7%. The company strategically invests in expanding its operations by enhancing existing stores, opening new ones, and making accretive acquisitions. These efforts allow the company to broaden its reach to new communities and boost its growth momentum.
Image Source: Zacks Investment Research
In the first nine months of 2023, the company opened 22 new warehouse stores with a total third quarter-end count of 207 warehouse stores and five design studios. It has plans to open about 32 warehouse-format stores in fiscal 2023.
Along with store expansion, FND is committed to investing in associates, remodeling and enhancing existing stores. In the third quarter of 2023, the company closed an older warehouse store in Houston, strategically replacing stores in the surrounding market as the lease expired.
However, due to industry-wide construction delays, some late September 2023 warehouse store openings were pushed into the fourth quarter. These delays resulted from general contractors struggling to secure qualified subcontractors and local government municipalities remaining understaffed, particularly in the Northeast.
Rising mortgage interest rates and low existing home sales are creating hurdles for Floor & Decor. For 2023, the company expects capital expenditures to be between $550 million and $575 million, down from the previous guidance of $590-$630 million. This is expected to moderate and add flexibility to its 2024 new warehouse store openings.
Nonetheless, the above-mentioned move will likely to have supported growth in future.
Zacks Rank & Key Picks
Floor & Decor currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Zacks Construction sector are:
Construction Partners, Inc. (ROAD - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. ROAD has a trailing four-quarter earnings surprise of 10.6% on average. Shares of ROAD have gained 36.2% in the past year.
The Zacks Consensus Estimate for ROAD’s 2023 sales and earnings per share (EPS) indicates gains of 19.3% and 112.2%, respectively, from the year-ago period’s levels.
EMCOR Group, Inc. (EME - Free Report) carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 17.2%, on average. Shares of EME have risen 58.6% in the past year.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.3% and 35.4%, respectively, from the year-ago period’s levels.
TopBuild Corp. (BLD - Free Report) sports a Zacks Rank of #2. It has a trailing four-quarter earnings surprise of 14.1%, on average. Shares of BLD have surged 42.7% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates gains of 3.3% and 8.4%, respectively, from the year-ago period’s levels.
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Floor & Decor (FND) Expands Business, Unveils 10th Store in NY
Floor & Decor Holdings, Inc. (FND - Free Report) recently announced the opening of a new store location in Ocean Township, New Jersey. This marks the company's 10th store in the New York City Metropolitan Area, signifying its continuous focus on domestic expansion.
Situated at 1560 NJ Highway 35, the warehouse store and design center will open with a team of approximately 50 full-time and part-time associates. This expansion reflects the company's commitment to serving professionals and homeowners nationwide and offering easier, inspired and affordable renovation solutions.
Focus on Expansion
Shares of FND have increased 16.1% in the year-to-date period compared with the industry’s rise of 2.7%. The company strategically invests in expanding its operations by enhancing existing stores, opening new ones, and making accretive acquisitions. These efforts allow the company to broaden its reach to new communities and boost its growth momentum.
Image Source: Zacks Investment Research
In the first nine months of 2023, the company opened 22 new warehouse stores with a total third quarter-end count of 207 warehouse stores and five design studios. It has plans to open about 32 warehouse-format stores in fiscal 2023.
Along with store expansion, FND is committed to investing in associates, remodeling and enhancing existing stores. In the third quarter of 2023, the company closed an older warehouse store in Houston, strategically replacing stores in the surrounding market as the lease expired.
However, due to industry-wide construction delays, some late September 2023 warehouse store openings were pushed into the fourth quarter. These delays resulted from general contractors struggling to secure qualified subcontractors and local government municipalities remaining understaffed, particularly in the Northeast.
Rising mortgage interest rates and low existing home sales are creating hurdles for Floor & Decor. For 2023, the company expects capital expenditures to be between $550 million and $575 million, down from the previous guidance of $590-$630 million. This is expected to moderate and add flexibility to its 2024 new warehouse store openings.
Nonetheless, the above-mentioned move will likely to have supported growth in future.
Zacks Rank & Key Picks
Floor & Decor currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Zacks Construction sector are:
Construction Partners, Inc. (ROAD - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. ROAD has a trailing four-quarter earnings surprise of 10.6% on average. Shares of ROAD have gained 36.2% in the past year.
The Zacks Consensus Estimate for ROAD’s 2023 sales and earnings per share (EPS) indicates gains of 19.3% and 112.2%, respectively, from the year-ago period’s levels.
EMCOR Group, Inc. (EME - Free Report) carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 17.2%, on average. Shares of EME have risen 58.6% in the past year.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.3% and 35.4%, respectively, from the year-ago period’s levels.
TopBuild Corp. (BLD - Free Report) sports a Zacks Rank of #2. It has a trailing four-quarter earnings surprise of 14.1%, on average. Shares of BLD have surged 42.7% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates gains of 3.3% and 8.4%, respectively, from the year-ago period’s levels.