In this podcast on Floor & Decor, Speedwell Research covers everything from its founding as a single store in Atlanta, Georgia to becoming the leading hard surface flooring specialty chain retailer. We draw on Speedwell Research's 57 page research report to teach not just about the flooring industry and Floor & Decor's interlocking business model, but also about competitive dynamics and how to think about store level unit economics. We hope you enjoy!

(Please note that for the first few minutes of the recording, occasionally the sound quality declines. It improves thereafter.)

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Show Notes

(0:00) Intro

(1:51) Background

(4:48) CEO Tom Taylor

(6:21) Industry

(15:26) Floor & Decor Model

(24:33) TAM Breakdown and Commercial Business

(28:35) Pro Business

(33:15) Competitive Landscape and Main Competition

(59:10) Four Wall Store Model, Mature Margins

(1:11:49) Long-Term Store Target

(1:24:45) What Can Go Wrong, Risks

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Purchase Speedwell's FND Report here: https://speedwellresearch.com/2022/11/08/floor-decor-deep-dive/

Become a full Speedwell Research Member here: https://speedwellresearch.com/subscribe/

Articles Mentioned

Speedwell's Memo Introducing the Piton Idea: https://speedwellsnippets.substack.com/p/the-piton-network-decisions-that

Speedwell's Memo on Home Depot's Valuation in 1999: https://speedwellsnippets.substack.com/p/priced-to-outperform-perfection-the

Floor & Decor 2022 Earnings Recap: https://speedwellsnippets.substack.com/p/floor-and-decor-2022-earnings-recap

Floor & Decor 2H23 Earnings Recap: https://speedwellsnippets.substack.com/p/floor-and-decor-2q2023

Business Breakdowns Floor & Decor Podcast: https://www.joincolossus.com/episodes/29086328/cohen-floor-decor-raising-the-floor?tab=transcript

Twitter: @Speedwell_LLC

Threads: @speedwell_research

Email us at [email protected] for any questions, comments, or feedback

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Disclaimer

Nothing in this podcast is investment advice nor should be construed as such. At the time of publishing, one or more contributors to the podcast had a position in FND. Furthermore, accounts one or more contributors advise on may also have a position in FND. This may change without notice. Please see our full disclaimers here: https://speedwellresearch.com/disclaimer/