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  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-07-01 00:00:00",
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  "notes": "Uses a side-by-side comparison of company marketing vs. industry reality.",
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      "kind": "callout",
      "text": "Management made a new category expansion into pools in 2023 with expensive porcelain, tile and mosaic offerings. However, according to industry bellwether Pool Corp (NYSE: POOL), consumer discretionary spending on new pools and remodeling is down 15-20% over 2023 and the company warned investors a month in advance of its July 25th earnings date.",
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      "text": "Floor & Decor pool products website screenshot",
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      "text": "consumer discretionary spending: 15-20%",
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      "text": "Management made a new category expansion into pools in 2023 with expensive porcelain, tile and mosaic offerings. However, according to industry bellwether Pool Corp (NYSE: POOL), consumer discretionary spending on new pools and remodeling is down 15-20% over 2023 and the company warned investors a month in advance of its July 25th earnings date.",
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      "kind": "quote",
      "text": "“We continue to be focused on current trends, adding inspirational and user-generated content and expanding into new categories by recently extending our outdoor category with pool options.” — Lang Q1’23 May 4, 2023; “The discretionary components of our business, which are the most affected by general economic conditions, have been challenged by cautious consumer spending on big ticket items like swimming pools and outdoor living projects resulting in sales of building materials declining 11% for the year compared to the same period in 2023.” — Pool Corp June 25, 2024; “We now believe that new pool units could be down 15% to 20% in 2024, and remodeling activity for 2024 may be down as much as 15% compared to our previous estimate of flat to down 10% compared to 2023.” — Pool Corp June 25, 2024",
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      "kind": "source-note",
      "text": "Source: FND website, Q1'23 conf call, Pool Corp Press Release",
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      "text": "Comparison of company statement vs industry data",
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      "kind": "title",
      "text": "#3: Poorly Timed Category Expansion Into Pool Products",
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      "evidence": "Contrasts management's expansion strategy with industry-wide decline data.",
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