Floor & Decor Holdings, Inc. (Floor & Decor) operates as a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces.
As of December 26, 2024, the company operated warehouse-format stores and small-format design studios across 38 states. The company offers the broadest in-stock assortment of laminate and vinyl, tile, wood, and natural stone flooring and installation materials and decorative accessories, as we...
Floor & Decor Holdings, Inc. (Floor & Decor) operates as a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces.
As of December 26, 2024, the company operated warehouse-format stores and small-format design studios across 38 states. The company offers the broadest in-stock assortment of laminate and vinyl, tile, wood, and natural stone flooring and installation materials and decorative accessories, as well as adjacent categories. This positions the company as the one-stop destination for its customers’ entire hard surface flooring needs. The company appeals to a variety of customers, including professional installers and commercial businesses (Pro) and homeowners, which consists of do-it-yourself customers (DIY) and buy-it-yourself customers who buy the products for professional installation (BIY).
Strategy
The key elements of the company’s strategy are to open warehouse-format stores in new and existing markets; increase comparable store sale; enhance its connected customer experience; continue to invest in the pro customer; continue to invest in design services; and expand its sales in commercial surfaces.
Products
The company’s merchandise consists of the following major product categories:
Laminate and vinyl: Wood-based laminate flooring, luxury vinyl, and engineered/composite rigid core vinyl.
Tile: Porcelain and ceramic tile, porcelain mosaics, and porcelain tile slabs.
Installation Materials and Tools: Grout, mortar, backer board, tools, adhesives, underlayments, moldings, and stair treads.
Decorative Accessories and Wall Tile: Decorative tiles and mosaics, which includes natural stone, porcelain, ceramic, and glass, wall tile, and decorative trims.
Wood: Solid prefinished hardwood, solid unfinished hardwood, engineered hardwood, bamboo, and wood countertops.
Natural Stone: Marble, limestone, travertine, slate, ledger, prefabricated countertops, thresholds, and shower benches.
Adjacent Categories: Vanities, shower doors, bath accessories, faucets, sinks, custom countertops, bathroom mirrors, and bathroom lighting.
Connected Customer
Enhancements to the company’s connected customer experience are critical to its increasingly interconnected customers who often perform extensive online research for their project before going to its store. FloorandDecor.com is an important tool for engaging the company’s homeowner customers throughout their process. The company’s Pro customers use the website and its Pro app to browse its broad product assortment, to continually educate themselves on new techniques and trends, to share its virtual catalog and design ideas with their customers, and to utilize tools, such as its calculators to aid with shopping. The company designed the website to be a reflection of its stores and to promote its wide selection of products.
In addition to highlighting the company’s broad product selection, FloorandDecor.com offers a convenient opportunity for customers to purchase products online and pick them up in its stores or have them delivered.
Marketing and Advertising
The company uses a multi-platform approach to increasing Floor & Decor’s brand awareness, while historically maintaining low advertising costs of approximately 2% to 3% of net sales. The company uses a blend of digital and traditional advertising media to share the Floor & Decor story with a growing audience based on what will most effectively drive awareness, customer acquisition, and sales.
Distribution and Order Fulfillment
The company has invested significant resources to develop and enhance its distribution network. As of December 26, 2024, the company had four distribution centers strategically located across the United States in port cities near Savannah, Houston, Los Angeles, and Baltimore; and a transload facility near Los Angeles.
Seasonality
Historically, the company’s business has had very little seasonality. The company’s specialty hard surface flooring and decorative home product offering makes it less susceptible to holiday shopping seasonal patterns compared to other retailers.
History
The company was founded in 2000. It was incorporated as a Delaware corporation in 2010. The company was formerly known as FDO Holdings, Inc. and changed its name to Floor & Decor Holdings, Inc. in 2017.