Floor & Décor Files for IPO
FDO Holdings, or Floor & Décor Holdings, has amended its filing with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO).
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[cnxvideo id=”510428″ placement=”ros”]FDO Holdings, or Floor & Décor Holdings, has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were mentioned in the filing, but the offering is valued up to $150 million, although this number tends to be just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol FND.
The underwriters for this offering are Merrill Lynch, Barclays, Credit Suisse, UBS Investment Bank, Goldman Sachs, Jefferies, Piper Jaffray, Wells Fargo and Houlihan Lokey.
This company is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories with 72 warehouse-format stores across 17 states. Management believes that the company offers the industry’s broadest in-stock assortment of tile, wood, laminate and natural stone flooring, along with decorative and installation accessories, at everyday low prices, positioning it as the one-stop destination for our customers’ entire hard surface flooring needs.
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Floor & Décor appeals to a variety of customers, including professional installers and commercial businesses (Pro), Do It Yourself customers (DIY) and customers who buy the products for professional installation (Buy It Yourself, or BIY). Pro customers are loyal, shop often and help promote brand. The combination of category and product breadth, low prices, in-stock inventory in project-ready quantities, proprietary credit offerings, free storage options and dedicated customer service positions the company to gain share in the attractive Pro customer segment.
In the filing, Floor & Décor highlighted a few of its financial highlights:
- Eight consecutive years of double digit comparable store sales growth averaging 15.3% per year, with a 19.4% increase in fiscal 2016.
- While our newer stores generally have higher comparable store sales growth, our stores opened prior to 2012 averaged comparable store sales growth of 15.5% for fiscal 2016.
- Store base expansion from 30 warehouse-format stores at the end of fiscal 2012 to 69 at the end of fiscal 2016, representing a CAGR of 23.1%; we added 12 warehouse-format stores during fiscal 2016, which was a 21.1% growth in units compared to fiscal 2015.
- Total net sales growth from $336.7 million to $1,050.8 million from fiscal 2012 to fiscal 2016, representing a CAGR of 32.9%.
- Net income growth from $12.8 million to $43.0 million from fiscal 2012 to fiscal 2016, representing a CAGR of 35.3%.
The company intends to use the net proceeds from this offering to repay its indebtedness.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
