Floor & Decor: No Turn Here

Floor & Decor faces persistent earnings and comp sales pressure due to a stagnant U.S. housing market and high mortgage rates. Q1 earnings declined 17.8% y/y; comparable store sales fell 3.7%, tracking at the low end of guidance with little near-term improvement expected. FND's premium valuation is at risk; downside to a 20x multiple and $37/share exists if comps and earnings remain weak.