Bob's Discount Furniture (BOBS) Investor presentation summary

Business profile and market opportunity

• 209 stores across 26 states; FY2025 net revenue $2.4bn, adjusted EBITDA $241m and adjusted EBITDA margin 10%; average order value ~ $1,400.

• Store base grew at 12% CAGR from 2006–2025; management targets 500+ stores by 2035, implying ~10% store CAGR.

• U.S. home furnishings market reached $182bn in 2024; revenue grew at 9% CAGR in 2010–2024A versus 3% for the industry, outperforming by 680 bps.

• Growth priorities include densifying current and adjacent markets, entering new markets, increasing comparable sales, and using scale to expand margins and efficiency.

Store economics and customer proposition

• New-store targets: ~$9m Year 5 AUV, $1.7m net cash investment, 60%+ Year 2 and 80%+ Year 5 cash-on-cash returns, and ~2-year payback.

• FY2025 AUVs ranged from $9.5m in the Midwest to $14.2m in New England; figures exclude outlets, closed stores and stores opened after Dec. 29, 2024.

• Pricing is estimated at ~20–25% below competitors’ listed prices; assortment has ~33% fewer SKUs, 86% of orders are in stock, and aided awareness is ~72% in top 10 markets.

• FY2025 sales mix: upholstery 50%, case goods 31%, bedding 13% and other 6%; merchandising spans value, better and best price tiers.

• Stores generated 85% of FY2025 revenue and e-commerce 15%; ~73% of store customers engage across multiple channels.

Operations and growth drivers

• Supplier relationships span up to 15 years; 86% of orders are in stock and ready for delivery in as few as 3 days, with 50%+ of sales order volume dual-fulfilled.

• Network includes 6 distribution centers and 48 depots; sourcing diversification, vendor concessions and pricing actions support tariff mitigation.

• Growth levers include marketing and traffic, conversion improvements through data and technology, personalized offers to lift order values, and purchasing and distribution efficiencies.

• Margin initiatives include China-exited sourcing, lower freight costs through scale, increased marketing leverage and infrastructure growth without proportional cost increases; AI targeting improved advertising ROI ~50% since 2019.