Floor & Decor Re-Decorates its 10-K Filing
Oddly, the company's recent 10-K filing no longer includes a discussion of its TAM or market share.
In my view, FND management continues to spend an inordinate amount of quarterly conference call time providing a “junior economist” perspective on today’s housing market.
I mean, we all get it. The housing market sucks today. But, the NRF existing home sales data is flattening year-over-year and the company’s disclosure of -12.8% comp sales QTD Q1 2024 raises some eyebrows.
Instead, I wish management would spend that time measuring and telling the more interesting narrative… the company’s large-scale market share gains. Even in a depressed housing market, that’s probably a larger driver of the overall investment thesis.
But, in an odd move, the company is no longer disclosing its market share or TAM in its annual 10-K filing (see “Our Industry” section on page #7).
Here’s last year’s 10-K disclosure re: the industry/sector…
Here’s this year’s 10-K disclosure re: the industry/sector…
This year, the company excludes any specific mention of total addressable market (TAM) or its market share. Hmm.
Changing the language of an annual 10-K filing is rare and usually the subject of much discussion internally and externally (with auditors). It would be interesting to hear management discuss the reasoning for such a move and something analysts and investors should inquire further about in future meetings with FND managment.