Floor & Decor announced results slightly above expectations with net sales up 9.1%.

The home improvement retailer said sales reached $1.1 billion in the first quarter ended March 30, 2023, up from $1.0 billion in Q1 of 2022. Ecommerce sales grew 10.2% year over year to account for 18% of total sales. That’s up from 17.7% of sales last year.

Floor & Decor ranks No. 127 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

Bucking the home trend

Floor & Decor reported sales growth as other home decor and improvement chains slowed. Wayfair (No. 10) and Overstock (No. 50) both reported sales were down 7.3% and 29%, respectively.

Growing sales in this environment shows “remarkable agility and adapting to significant year-over-year declines in existing home sales amidst the broader macroeconomic challenges we continue to face in 2023,” CEO Thomas Taylor told investors.

Taylor said the flooring industry will likely contract further in 2023. He told investors Floor & Decor will continue to grow market share with competitive pricing even as the housing market remains down.

Consumers are downgrading and downsizing

Average ticket grew year over year, but growth slowed from Q4, Floor & Decor president Trevor Lang said in the call. Growth decelerated from 14.4% year over year in the previous quarter to 7.3% in Q1. Lang declined to state exact ticket size.

The slowing growth is due to “customers purchasing less square footage and strategically lowering product prices,” Lang said. Customers are making fewer transactions, and making smaller purchases for their homes, he said. Flooring is the exception, he told investors, with customers opting for higher price points.

Professional business is growing

Sales to professionals grew much faster than overall sales, Floor & Decor said. Pro sales grew 19.1% year over year and now make up 42.1% of sales. Pro comparable store sales grew 6.9% even as overall comparable store sales were down 3.3%.

The home retailer is proactively trying to grow the professional customer base with events and loyalty programs. Floor & Decor hosted nearly 700 industry professionals at 27 training events during the quarter. There are 121 events planned for the full year.

For the first quarter ended March 30, Floor & Decor reported:

• Net sales grew 9.1% year over year to $1.1 billion from $1.0 billion.
• Comparable store sales were down 3.3% year over year. 
• Net income grew 0.8% from the year-ago period to $71.5 million.
• Ecommerce sales grew 10.2% year over year to account for 18% of total sales.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

Do you rank in our database?

Submit your data with this quick survey and we’ll see where you fit in our next ranking update!

Sign up

Stay on top of the latest developments in the ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News.

Follow us on LinkedIn, Twitter and Facebook. Be the first to know when Digital Commerce 360 publishes news content.