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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": "The slide uses a table to highlight the reversal of growth trends in gift card liabilities, contradicting the narrative of successful customer engagement.",
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      "text": "Unfortunately, FND’s unredeemed gift card liability accounts have sharply declined which suggests greater gift card redemption than issuance.",
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      "text": "Unredeemed Gift Cards: -21.6%",
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      "text": "FND uses gift cards as incentives to PROs customers and regularly discloses that gift cards are distributed at new store openings. They can also be purchased by customers. As a result, we view gift card activity as a good proxy for new store opening engagement and relationships with PROs customers. Unfortunately, FND's unredeemed gift card liability accounts have sharply declined which suggests greater gift card redemption than issuance.",
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      "text": "And we see people on personal and social media all the time, maybe not so much in this COVID environment, but before COVID people were taking a -- buying golf clubs or taking their people -- taking their family and friends on cruises or getting gift cards to their clients and their associates. And so that loyalty program has been a success for us as well.",
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      "kind": "quote",
      "text": "So we're in the early innings of what we can do from both PRO and Design. And because we have this really strong CRM tool that allows that information to come into the system, is it a PRO we know? Is it not a PRO we know? If it's a PRO we know, make sure they're signed up for rewards, make sure they understand all the features and benefits, credit, all those things. If it's a PRO we don't know, then that's even better. Let's give them a -- we call it a boots on the ground $25 gift card, give them a bucket, give them the tour of the store, talk about all the things we do.",
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      "text": "“So we're in the early innings of what we can do from both PRO and Design... we call it a boots on the ground $25 gift card, give them a bucket, give them the tour of the store, talk about all the things we do.” — Citi, Dec 8, 2021. “And we see people on personal and social media all the time... buying golf clubs or taking their people -- taking their family and friends on cruises or getting gift cards to their clients and their associates.” — Stephens Conf., Nov 18, 2020.",
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      "kind": "source-note",
      "text": "Source: FND SEC Filings, Pro Premier Rewards, Gift Card Purchases, and new store opening press releases",
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      "text": "Analysis of Unredeemed Gift Card Liability table showing 2019-2024 data for Unredeemed Gift Cards, YoY Growth, and QoQ Growth.",
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      "kind": "title",
      "text": "#7: Gift Cards Accounts Show Negative Trends",
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