Floor & Decor Q1 earnings drop 17.8% amid weak housing market and high mortgage rates

Floor & Decor reported a 17.8% decline in Q1 earnings and a 3.7% drop in comparable store sales, pressured by a stagnant U.S. housing market and elevated mortgage rates. The company's premium valuation is at risk, with potential downside to a 20x earnings multiple and $37 per share if these trends persist. Despite strong unit growth and a solid balance sheet, the stock is expected to remain stagnant until housing market conditions improve, particularly housing turnover.