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  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
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  "authorName": "Spruce Point Capital Management",
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  "notes": "The slide uses a table to contrast quarterly gross profit data with the company's own qualitative explanations, pointing out the omission of price increase benefits in the full-year summary.",
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      "kind": "callout",
      "text": "Why no mention of price increase benefit on full year after Q2/Q3 mention? Did prices decline heavily in Q4 and if so why did GM% increase?",
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      "text": "Spruce Point believes that FND's discussion of gross profit drivers is weak and could be improved.",
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      "text": "Gross Profit margin: 42.2%",
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      "text": "Cost of sales consists of merchandise costs, as well as freight costs to transport inventory to our distribution centers and stores, and duty and other costs that are incurred to distribute the merchandise to our stores.",
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      "text": "Spruce Point believes that FND's discussion of gross profit drivers is weak and could be improved. The Company provides limited quantitative discussion of cost drivers despite outlining numerous items within cost of sales (in the box below) that affect gross profit.",
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      "text": "\"Cost of sales consists of merchandise costs, as well as freight costs to transport inventory to our distribution centers and stores, and duty and other costs that are incurred to distribute the merchandise to our stores.\" — FND 10-Ks",
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      "text": "2022 vs. 2023 Gross Profit Comparison And Explanation In 2023",
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