Floor & Decor plunges after PT cuts on sluggish home renovation demand

Floor & Decor Holdings

03/11/2023 16:37

** Floor & Decor  FND.N  shares down as much as 10% at
$76.55, lowest since Jan. 6
    ** The flooring supplies maker cut its annual net sales
forecast on Thursday to $4.35 bln to $4.39 bln from $4.46 bln to
$4.53 bln, citing near-record-low existing home sales and
slowing sales of bigger-ticket discretionary products
    ** "Near-term macro headwinds are too much to overcome. We
... await better line of sight for mortgage rates to move lower
and higher conviction that earnings have troughed" - Citi 
    ** Guggenheim analyst Steven Forbes says, "We now expect
management to more aggressively plan for cost reduction &
capital preservation"
    ** Truist Securities analyst note that the flooring industry
has been one of the weaker consumer durable goods as it is very
deferrable by consumers
    ** Atleast 12 brokerages have cut PT on the stock following
weaker Q3 results
    ** 11 of 23 brokerages rate the stock "buy" or higher, 11
"hold" and one "sell"; their median PT is $85
    ** Stock up 13.4% YTD
    

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))