Black Cypress Doubles Down on Floor & Decor, Adds Another $8 Million in Stock

2026-03-03 11:56:31

What happened

In its SEC filing dated February 10, 2026, Black Cypress Capital Management, LLC reported purchasing 115,858 additional shares of Floor & Decor (FND 2.82%) during the fourth quarter of 2025. The estimated transaction value was $7.51 million, based on the average quarterly closing price. The fund’s quarter-end position increased in value by $5.96 million, a figure that includes both trading activity and price movement.

What else to know

The buy activity brought the Floor & Decor stake to 8.57% of 13F assets under management.

Top holdings after the filing:
- Wesco International: $33.27 million (23.2% of AUM)
- U.S. Bancorp: $18.36 million (12.8% of AUM)
- Halliburton: $12.30 million (8.6% of AUM)
- Floor & Decor: $12.28 million (8.6% of AUM)
- SLB: $11.44 million (8.0% of AUM)

As of February 27, 2026, shares were priced at $67.51, down 30.1% over the past year and underperforming the S&P 500 by 46 percentage points.

Company overview

Metric	Value
Revenue (TTM)	$4.68 billion
Net income (TTM)	$207.65 million
Price (as of market close February 27, 2026)	$67.51
One-year price change	(30.1%)

Company snapshot

Floor & Decor:

Offers hard surface flooring products such as tile, wood, laminate, vinyl, and stone, along with decorative and installation accessories.
Operates a multi-channel retail and commercial distribution model, generating revenue through warehouse-format stores, design studios, and e-commerce.
Serves professional installers, commercial businesses, and do-it-yourself customers across the United States.

Floor & Decor is a leading specialty retailer focused on hard surface flooring and related accessories, with a national footprint and a diverse customer base. The company leverages a warehouse-format store model and a robust online presence to deliver a broad assortment of products at competitive prices. Its scale, direct sourcing, and multi-channel approach provide a competitive edge in the home improvement retail sector.

What this transaction means for investors

Black Cypress began buying Floor & Decor shares in Q1 of 2024 at around $130 per share. Since then, the firm has grown its FND position eightfold as the stock slid into the $60 to $70 range. In the last quarter alone, Black Cypress more than double its stake in the company. This increase matters because Floor & Decor is a cyclical business, and the advisory firm seems to think this could be a bottom for the stock.

I would tend to agree, as Floor & Decor currently trades at 1.56 times sales – a far cry from its 10-year average of 2.73. However, while its valuation sits near its all-time low, existing U.S. home sales – possibly FND’s largest driver of sales – have remained depressed for roughly three years, with only 2008 to 2010 being worse. All things considered, Floor & Decor has held up pretty well operationally, maintaining profitability and positive free cash flow, even as it opened 20 new warehouses in 2025.

Management aims to open 20 new stores in 2026 and expects sales to grow by 4%; however, it remains closely tied to the broader U.S. housing market. I think Black Cypress’s Q4 purchase makes a lot of sense if it is patient enough to ride out this cyclical trough to brighter days. Investors interested in this space will also need to be very patient with the stock. While it has plenty of potential – note its 23% sales growth and 37% net income growth annually over the last decade – the timing of its turnaround is anyone’s best guess.

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