Floor & Decor Holdings, Inc.

Greetings and welcome to the Floor and Decor Holdings fourth quarter 2025 conference call. At this time, participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to our host, Wayne Hood. Senior Vice President of Investor Relations. Thank you. You may begin.

Thank you, operator, and good afternoon, everyone. Welcome to Floor and Decor's Fiscal 2025 Fourth Quarter and Full Year Earnings Conference Call. Joining me today are Tom Taylor, Executive Chair, Brad Paulson, Chief Executive Officer, and Brian Langley, Executive Vice President and Chief Financial Officer. Before we begin, I want to remind everyone of the company's Safe Harbor language, Comments made during this call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement. These statements are subject to risk and uncertainties that could cause actual future results to differ materially from those expressed in these forward-looking statements for any reason, including those listed at the ending of the earnings release and in the company's SEC filings. Warren, of course, seems no obligation to update any such forward-looking statements. Please also note that past performance or market information is not a guarantee of future results. During this call, the company will discuss certain non-GAAP financial measures. We believe these measures enable investors to understand better our core operating performance on a comparable basis between periods. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measure can be found in the earnings press release, which is available on our investor relations website at ir.florendecor.com. The recorded replay of this call and related materials will be available on our investor relations website. Let me now turn the call over to Tom.

Thank you, Wayne, and thanks to everyone joining us today for our fiscal 2025 fourth quarter and full year earnings conference call. During today's conference call, Brad, Brian, and I will be walking through the key highlights from the quarter and the full year. Then Brian will share how we're approaching fiscal 2026 and the priorities that are shaping our outlook. We're pleased to deliver fiscal 2025 fourth quarter diluted earnings per share of 36 cents, which was in line with the midpoint of our earnings guidance provided on our third quarter earnings conference call. For the full fiscal year, diluted earnings per share was $1.92 compared with $1.90 in the prior year. As a reminder, last year's results include $6.8 million or 5 cents per share of net benefit related to the derivative litigation settlement in the fourth quarter of 2024. Our fourth quarter sales increased 2% to $1,130,000,000, while comparable store sales declined 4.8%. For the full fiscal year, sales grew 5.1% to $4,684,000,000, and comparable store sales declined 1.8%, which was near the low end of our expectations. I'm incredibly proud of what our teams accomplished in 2025. Despite pressure on comparable store sales driven by softness and existing home sales activities and the shift to smaller flooring projects, we expanded our market share, navigated tariff complexities, increased our gross margin rate, opened 20 new stores, and delivered year-over-year earnings growth. This performance reflects our unwavering commitment to disciplined execution and strategic investment in our future. It also reinforces our confidence in our long-term strategy and in the opportunities ahead for our customers, our associates, and our shareholders. With that said, let me now turn the call over to Brad.