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  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-07-01 00:00:00",
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  "notes": "Uses a 'before-after' framing to contrast management's IPO narrative with subsequent reality.",
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      "text": "The dismal performance becomes even more bleak by excluding the COVID-19 benefit experienced in 2021. Absent 2021, comparable store sales averaged just 2.5%.",
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      "text": "Comparable Store Sales Growth: 2.5%",
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      "text": "At its IPO, FND touted its strong and long-term comparable store sales growth averaging high double digits. However, the Post-IPO reality has been much worse. In fact, from 2018-2024E comparable store sales (“CSS”) average just 6.1%. The dismal performance becomes even more bleak by excluding the COVID-19 benefit experienced in 2021. Absent 2021, comparable store sales averaged just 2.5%. Spruce Point sees no reason for FND’s longer term CSS trends to improve for all the reasons we will enumerate in the report.",
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      "text": "We believe our strong financial results are a reflection of our consistent and disciplined culture of innovation and reinvestment, creating a differentiated business model in the hard surface flooring category, as evidenced by the following: eight consecutive years of double digit comparable store sales growth averaging 15.3% per year (and averaging 16.5% per year for fiscal 2012 to fiscal 2016), with a 19.4% increase in fiscal 2016.",
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      "text": "We believe our strong financial results are a reflection of our consistent and disciplined culture of innovation and reinvestment, creating a differentiated business model in the hard surface flooring category, as evidenced by the following: eight consecutive years of double digit comparable store sales growth averaging 15.3% per year (and averaging 16.5% per year for fiscal 2012 to fiscal 2016), with a 19.4% increase in fiscal 2016. — 2017 IPO Prospectus",
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      "text": "Source: FND IPO prospectus, 10-K filings, management guidance, CSS market consensus and Spruce Point analysis",
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      "text": "Post IPO Performance Not Nearly As Strong As Touted Pre-IPO",
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      "text": "Abysmal Long-Term Decline In Comparable Store Sales Performance",
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