Floor & Decor Stock Surges On Analyst Upgrade Following Q4 Earnings Beat: Retail’s Bullish

Shares of Floor & Decor rose nearly 2% on Friday as the specialty retailer of hard surface flooring accessories received an analyst upgrade from Gordon Haskett following better-than-expected fourth-quarter earnings, lifting retail sentiment.

Gordon Haskett upgraded Floor & Decor to ‘Buy’ from ‘Hold’ with a $120 price target, The Fly reported. According to the firm, “there are enough green shoots of demand to get on board" after the earnings following a period of challenges.  With "broad-based strength," the company is poised for re-acceleration, added the report.

Floor & Decor’s earnings per share came in at $0.44, beating consensus expectations of $0.25. It posted revenue of $1.11 billion for the quarter, above Wall Street estimates of $1.09 billion.

Its Q4 operating income came in at $59.2 million, up 28.3% from $46.2 million in the fourth quarter of fiscal 2023. While operating margin of 5.4% increased 100 basis points from the fourth quarter of fiscal 2023.

However, comparable store sales decreased 7.1%, according to the company.

“We are extremely proud of our store and store support teams for executing our sales and customer service initiatives and diligently managing our costs during the fourth quarter and full-year,” said Floor & Decor’s CEO Tom Taylor. “Our fourth quarter and full-year results demonstrate the resiliency of our business model and the potential earnings power we believe we can unlock over time as industry fundamentals improve.”

Sentiment on Stocktwits inched up in the ‘bullish’ territory compared to a day ago. Message volume continued to be in the ‘high’ zone.

For 2025, the company projected net sales of about $4.74 billion to $4.9 billion, compared to the consensus estimate of $4.86 billion.

Full-year 2025 diluted EPS is expected between $1.80 and $2.10, compared to consensus estimate of $1.98, while comparable store sales are projected at flat to 3.0% growth.

TD Cowen raised the firm's price target to $110 from $102 with a ‘Hold’ rating. The research firm updated its model following the company’s results that showed “better trends and strong execution however, the backdrop remains tough,” according to The Fly.

Floor & Decor stock is down 5.5% year-to-date.

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