AGB 2021.22 - Floor & Decor (FND)

Strong Unit Economics + Runway for Expansion

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Floor & Decor

Floor & Decor is the leading specialty retailer in the U.S. focused on hard surface flooring products. The company’s large warehouse like stores are unique to the industry. At an average size of 78k sq ft (this number has moved higher in recent years), Floor & Decor’s stores are large enough to keep most of its 4.1k SKUs in stock for customers to take home that day. Most stores also have a dedicated design center where customers can meet with designers for a free consultation on their repair or renovation flooring project.

Floor & Decor has expanded its footprint across the U.S. at a 20+% store count growth rate since 2012 (earliest store count data available) as the company has reinvested most of the excess capital generated back into the business. As of the third quarter of 2021, the company operates 153 stores in 33 states, still leaving ample room for expansion for many years. Since there is so much whi…