Overview
Piper Sandler reiterated its Overweight rating on Floor & Decor Holdings, Inc. (NYSE:FND) and kept an $80.00 price target following the company's fourth-quarter financial report. The analyst note emphasized that fourth-quarter earnings per share surpassed expectations even as comparable-store sales fell slightly short of forecasts.
Valuation and market context
The firm reported that Floor & Decor is trading at a price-to-earnings ratio of 33.28 and carries a market capitalization of $7.12 billion. According to InvestingPro analysis cited by the firm, the stock appears to be undervalued relative to its Fair Value.
Comparable-store sales and near-term trends
Management disclosed that January comparable sales moved into positive territory at 0.4%, representing an inflection point after three years of declines. However, February comparable sales year-to-date were reported as negative 3.5%, with weather identified as a contributing factor. The company noted that roughly 45% of stores that did not experience weather disruption appeared to be producing positive comparable sales.
Guidance and margin expectations
For 2026, Floor & Decor set comparable-sales guidance in a range from negative 2% to positive 1%. The company also outlined expectations for a high-30% flow-through margin on any positive comparable growth in 2026.
Leadership and demand signals
New Chief Executive Officer Brad Paulsen presented initiatives aimed at strengthening the company's fundamentals. Piper Sandler highlighted improving mattress and furniture sales as a leading indicator for future flooring demand, suggesting those categories could signal broader strength in the core flooring business.
Expansion update
In a separate operational development, Floor & Decor announced the opening of a new warehouse store and design center in Dearborn, Michigan, located at 1300 Shehadi Court. The site is expected to employ approximately 50 associates, comprising 35 full-time and 15 part-time positions. Wesley Walker will serve as the Chief Executive Merchant for the location. The company plans a ribbon-cutting ceremony in collaboration with the Dearborn Chamber of Commerce to mark the grand opening. Company communications framed this new location as part of an ongoing expansion effort to grow its retail footprint and strengthen its presence in the Michigan market.
Takeaway
Piper Sandler's continued Overweight stance reflects confidence in Floor & Decor's longer-term prospects despite short-term comp pressures and weather-related disruption. Valuation metrics and the InvestingPro assessment cited in the note provide the firm with a thesis that the shares may be trading below intrinsic Fair Value, while management's guidance and margin targets outline the company's expectations should comparable sales recover.