Dive Brief:
- Bob’s Discount Furniture filed for an initial public offering as it looks to pay off debt. It intends to list its common stock on the New York Stock Exchange under the ticker symbol “BOBS.”
- The furniture retailer made $2 billion in revenue and $119 million in net income for the 12 month period ending Sept. 28, 2025, per its S-1 form. The company entered into a $350 million term loan credit agreement at the end of October.
- The company operates over 200 showrooms across 26 states and is targeting over 500 locations by 2035.
Dive Insight:
IPOs across sectors may still be below levels around the onset of the COVID-19 pandemic, but Bob’s Discount Furniture could end a drought for the retail industry with its proposed offering.
Bob’s Discount Furniture shed some light on the health of the business through its filing with the U.S. Securities and Exchange Commission.
The retailer revealed its average order value per transaction is about $1,400. Revenue for fiscal year 2024 was almost evenly split between the five geographic regions it operates within the U.S.
Upholstery merchandise is its largest category by revenue, with case goods being the second. A majority of its revenue comes from stores (86%), with just 14% coming from e-commerce. Additionally, Bob’s Discount Furniture estimates its prices are on average about 10% below its “value-oriented furniture competitors’ lowest promoted prices,” the company said in its filing.
Bob’s Discount Furniture moved all of its “key production out of China by the end of fiscal year 2024” to mitigate tariff risk, according to the filing. Now, its primary sourcing markets are Vietnam (representing about 63% of its product cost volume as of Oct. 24) and the United States (representing 27% of its product cost volume).
Bob’s Discount Furniture’s proposed IPO comes at a complicated time for the home sector.
The category was already dealing with drops in sales from the highs of the pandemic, when consumers were spending more time at home. New and ever-changing tariff rates on imports to the U.S. have already brought on new obstacles. The operator of Value City Furniture and American Signature Furniture filed for bankruptcy in 2025, citing the housing crisis as a key driver.
Bob’s Discount Furniture, however, remained positive about the housing market outlook in its latest filing.
“Housing market fundamentals support a near-term recovery, with housing turnover at or near historic lows, creating pent-up demand,” the S-1 form states. “Additionally, the persistent gap between housing costs, rent inflation, and wage growth is creating a more value-conscious consumer that aligns with our positioning. While online engagement is rising, many customers continue to value in-store home furnishing experiences as part of the purchasing journey. We believe that the recovery in the housing market will further boost demand for home furnishings, presenting a compelling opportunity for incremental growth in our business.”
About 46% of its customers in fiscal year 2024 had household incomes over $100,000 and around 27% earned above $150,000. Bob’s Discount Furniture found that new customers earning more than $150,000 grew nearly 25% year over year as of Sept. 28.
