Why Floor & Decor Stock Dropped 13% in August
Shares of Floor & Decor (NYSE: FND) stock fell 13% in August, according to data provided by S&P Global Market Intelligence. The flooring warehouse chain posted a mixed earnings report, but it lowered full-year guidance, sending the stock down.
Floor & Decor operates warehouse-style stores with a huge selection of hardware flooring and similar products. It had been demonstrating strong growth, with increasing sales, usually driven by high comparable sales, and robust profitability. But while it maintained strong performance despite supply chain difficulties and high inflation, it's finally starting to feel the impact.
In the 2023 second quarter, reported in August, sales increased 4.2% over last year, but that was entirely from new stores, and comparable sales decreased 6% from last year. It opened nine new stores in the quarter.
Source Fool.com
