Floor & Decor Holdings Inc. shares surged 10.99% in after-hours trading on Thursday, following the release of the company's second-quarter fiscal 2026 financial results.

The specialty flooring retailer reported net income of $95.87 million, a 51.7% increase year-over-year, with diluted earnings per share rising 53.4% to $0.89. Net sales grew 3% to $1.25 billion, surpassing analyst estimates of $1.232 billion. Adjusted earnings per share of $0.58 also beat the consensus forecast of $0.56. Operating income more than doubled to $123.98 million, with operating margin expanding to 9.9% from 6.8% a year earlier.

While comparable store sales declined 2.1%, the company noted an improving trend with comps moving from a 5.1% decline in April to nearly flat in June. Floor & Decor also provided its fiscal 2026 outlook, forecasting net sales of $4.77 billion to $4.99 billion, and maintained its plan to open 20 new warehouse stores during the year.