{
  "docId": "019dd923-622c-750b-8b99-8a089025bb07",
  "docSlug": "75aa3b2bd0fb",
  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-07-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 62,
  "pageCount": 125,
  "prevPage": 61,
  "nextPage": 63,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 64,
  "notes": "The slide uses red arrows to highlight specific data points of concern regarding inventory distribution and disclosure.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-8a089025bb07/62",
  "deckHref": "/decks/019dd923-622c-750b-8b99-8a089025bb07",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-8a089025bb07.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-8a089025bb07#slide-62",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "As an additional concern we observe that post 2021 when inventory in-transit jumped from 15% to 25% FND ceased disclosure thereafter.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0f1d-76e6-8714-42b98a31d2e4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Inventory In-Transit: 25%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0f1d-76e6-8714-4b832a9a5610",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.96,
        "x": 0.02,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "Having a great supply chain is irrelevant unless inventory can be managed properly. Inventory in-transit and at distribution centers has been generally increasing while inventory at stores has been decreasing. As an additional concern we observe that post 2021 when inventory in-transit jumped from 15% to 25% FND ceased disclosure thereafter. We have concerns that FND loaded up on high priced inventory in a period of tight supplies with COVID-19. That being said, FND says it receives volume rebates from suppliers by receiving certain purchasing levels.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5f9d2c2f-856a-47f3-aca8-6877de56be13",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.13,
        "w": 0.84,
        "x": 0.14,
        "y": 0.81
      },
      "kind": "quote",
      "text": "In-transit inventory generally varies due to contractual terms, country of origin, transit times, international holidays, weather patterns and other factors, but approximately 25% of our inventory is in-transit, while roughly 75% is available for sale in our stores or at one of our four distribution centers. We also carry an additional $595.6 million of inventory outside our stores, primarily at our distribution centers, as of the end of fiscal 2021.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "227958be-509f-45d8-9e45-93034628d2ef",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“In-transit inventory generally varies due to contractual terms, country of origin, transit times, international holidays, weather patterns and other factors, but approximately 25% of our inventory is in-transit, while roughly 75% is available for sale in our stores or at one of our four distribution centers.” — FND 10-K filings",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0f1d-76e6-8714-442b547d7558",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.15,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: FND 10-K filings",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9b5ebf89-8fdc-4fd9-9a3c-9718f85b0d96",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.42,
        "w": 0.96,
        "x": 0.02,
        "y": 0.36
      },
      "kind": "table",
      "text": "Inventory Disclosure table 2016-2023",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "27ce4a80-1187-44ae-a8c9-648d567b471c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "#4: Inventory Piling Up At Distribution Centers, While Disclosures Cease Post 2021",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "31e8f5a9-ddd9-4419-aa03-db8cc563e17f",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "ca603f57-6678-474d-9bdb-e136a1e447a6",
      "evidence": "The slide explicitly links inventory accumulation with a cessation of disclosure to suggest potential financial manipulation.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}