Floor & Decor Holdings, Inc. (NYSE:FND) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 05:00 pm ET
[Operator Instructions] Our first questions come from the line of Christopher Horvers of J.P. Morgan. Please proceed with your question.
Thanks. Good evening, guys. So I know it's hard to tease it out, but have you tried to think about the benefit from stimulus in the economy? And more importantly, you called out customers in April saying they're not canceling projects. What are your thoughts on how much of the surge in demand that you've seen in June and July, stores have become open, could simply be a deferral demand that you would have already -- it's just moving in time, so to speak?
Hey, Chris, this is Tom. I will take a stab at a few parts, and maybe Trevor can jump at the end if need be. So I think from the first part about is this resolves catch up from finishing projects. We've really never closed, and we were able to retain a good portion of our sales in a curbside model. So I feel like in the curbside model, there wasn't a lot of new projects being started early on and that was a lot of finishing up of jobs. There may have some -- I mean there were some starting of projects, but generally during our curbside operations, that consumer was fit -- or that Pro was finishing your job.
As I look forward now, I mean, the business has continued to strengthen. And I don't feel like it's catch up. I feel like it's a lot of new projects that are coming underway. I think as people have been not almost forced to stay home, they're not spending on movies. They're not spending in restaurants. They're not traveling. They're being forced to work out of their homes. And I think the more time they spend in their home, the more projects that they identify. And that has continued. The consumers are coming in and continuing at a pretty fast pace. So a lot of new stuff is getting started. I do think that the stimulus has helped. I mean the stimulus has supported the consumer and it supported small business. And I think those things are -- they're beneficial, I believe the consumer spend is going into home improvement.
The only thing I would add, Chris, this is Trevor, is when we exited last year, we exited at a 5.2% comp when we -- before COVID really clamp down, we were comping at a 6.1%. And when we had given guidance at the beginning of the year, we said that we thought we'd have a comp of around 6% all year. And again, we were right at that at the time we gave come. So hard to say for sure, but I do think we feel confident in that conviction that three years we've been public, we really never had a miss in the range of comps we've given. So I do feel like this year was going to be that mid- to upper single-digit