Shares of Floor & Decor Holdings Inc (NYSE: FND) are soaring 5.58% in pre-market trading on Friday following the company's impressive first-quarter earnings report that exceeded analyst expectations. The home improvement retailer demonstrated resilience in a challenging economic environment, showcasing its ability to drive growth and maintain profitability.
Floor & Decor reported quarterly adjusted earnings of 45 cents per share, surpassing the mean expectation of 44 cents from 23 analysts. This slight beat, coupled with robust revenue growth, has instilled confidence in investors. The company's total sales increased by 5.8% to $1.16 billion, meeting analyst projections and highlighting its continued market expansion despite economic headwinds.
Adding to the positive sentiment, Floor & Decor reported a significant improvement in its gross margin rate, which increased by 100 basis points to 43.8% compared to the same period last year. This enhancement in profitability, primarily attributed to lower supply chain costs, demonstrates the company's effective cost management strategies. Furthermore, the retailer's ambitious expansion plans, including the opening of 20 new stores in fiscal 2025, signal confidence in its growth trajectory and market opportunity.
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