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  "docSlug": "75aa3b2bd0fb",
  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-07-01 00:00:00",
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  "pageNumber": 27,
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  "slideType": "expose_contradiction",
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  "density": "overcrowded",
  "nDataPoints": 8,
  "notes": "Uses a combination of a bar chart for historical growth and a table of quotes to expose management contradictions.",
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  "slideHref": "/slides/019dd923-622c-750b-8b99-8a089025bb07/27",
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      "bbox": null,
      "kind": "callout",
      "text": "However, we think the more problematic part of FND’s growth story is that it now talks about opening smaller stores and capex commitments and cost per square foot appear to be ballooning.",
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      "kind": "chart",
      "text": "Historical store count growth from 2017 to 2024",
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    {
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      "kind": "metric",
      "text": "new store growth: 20%",
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      "subkind": "primary",
      "toolName": "Quantification",
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      "componentId": "019dd953-0f1d-76e6-8711-348cfa5a2ff1",
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      "kind": "paragraph",
      "text": "In 2022, FND increased its store target from 400 to 500 and projected continued 20% new store growth while touting how its recent class of stores being opened were the best ever. The story appears to have changed with 2023/24 projected stores falling well behind plan with unit growth at 14%-15%. However, we think the more problematic part of FND's growth story is that it now talks about opening smaller stores and capex commitments and cost per square foot appear to be ballooning.",
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      "kind": "quote",
      "text": "And the class of '20 and class of 2021 are the best class of stores we've ever opened. — CFO Lang, GS Conf. Sept 8, 2022; And so that's part of the reason our CapEx costs are going up is because we're doing more of that. — CFO Lang, Stephens Conf. Dec 2, 2021; Based on challenging macroeconomic conditions, our class of 2022 and class of 2023 new stores are estimated to be below these targets. — 2023 10-K, Feb 22, 2024; We expect about 25% to 30% of our planned 2024 new warehouse store openings could be in smaller format stores. — Q4'23 Conf Call, Feb 2024",
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      "kind": "source-note",
      "text": "Source: 2023 10-K, 2022 Investor Day Presentation, Q4'23 Conf Call",
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      "kind": "table",
      "text": "Quotes from management and disclosures highlighting contradictions",
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      "kind": "title",
      "text": "Evidence That FND's Store Expansion Growth Strategy Is Failing",
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      "evidence": "Directly juxtaposes management quotes with actual performance data to highlight inconsistency.",
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      "arcName": "Overcoming the Monster",
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      "evidence": "The document presents a detailed analysis of FND's struggles and challenges",
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      "confidence": 0.8,
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      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
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      "evidence": "The document presents a clear warning about the potential consequences of ignoring the risks associated with FND",
      "position": 0,
      "objective": "Highlight the risks of not taking action on FND's stock",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
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