Floor & Decor Holdings, a prominent flooring retailer, saw a significant decline in its stock price during premarket trading on Friday following the release of its updated full-year guidance.
The stock, which closed at $84.92 on Thursday, experienced a substantial drop of 14% to $73 during light premarket trading.
In its fiscal third-quarter report, which concluded on September 28th, Floor & Decor revealed earnings of 61 cents per share and sales of $1.11 billion. These figures were nearly in line with the market expectations of 61 cents per share and $1.12 billion, respectively.
However, the Atlanta-based company has now revised its full-year earnings forecast to $2.14 to $2.24 per share, with sales projected to range from $4.345 billion to $4.385 billion. This represents a decrease from its initial projection in August, which estimated earnings of $2.30 to $2.50 per share on sales totaling $4.46 billion to $4.53 billion.
Furthermore, Floor & Decor has adjusted its outlook for full-year same-store sales, anticipating a decline of 7.8% to 8.5%. This is compared to the previous guidance, which predicted a decrease ranging from 5.5% to 7%.
It remains to be seen how this adjustment will impact the company’s overall performance in the coming months.
