Bob's Discount Furniture rises 11% in NYSE debut after $331 million IPO
Value-focused retailer priced at low end of range as Bain Capital-backed company uses proceeds to reduce debt
Bob's Discount Furniture shares surged as much as 11% in their New York Stock Exchange debut on Thursday, giving the value-focused furniture retailer a warm welcome despite pricing its initial public offering at the bottom of its target range.
The stock, which began trading under the ticker BOBS, climbed to an intraday high of $18.86 after opening flat at its IPO price of $17 per share. The move valued the company at approximately $2.42 billion based on outstanding shares, according to market data. The IPO raised $331 million through the sale of 19.45 million shares, with pricing set at the low end of the company's $17 to $19 target range.
The Connecticut-based retailer, which operates 209 showrooms across 26 states, plans to use the bulk of the IPO proceeds to pay down debt. The company had approximately $350 million in outstanding borrowings under a term loan facility that it entered in October 2025, according to regulatory filings. The loan agreement requires the company to use IPO proceeds for debt repayment.
Bob's Discount Furniture comes to public markets with strong financial momentum. The company reported revenue of $2.028 billion for fiscal year 2024, growing faster than the home furnishings industry by more than 700 basis points. For the 12 months ending September 28, 2025, the company generated $2 billion in revenue and $119 million in net income.
Management has provided robust guidance for the full fiscal year 2025, projecting revenue of approximately $2.4 billion, representing 16.7% year-over-year growth. Net income is expected to reach between $118.7 million and $121.7 million, a 36.7% increase from the prior year at the midpoint of the range. Comparable sales growth has swung from a decline of 3.4% in fiscal 2024 to positive growth of 7.7% expected for fiscal 2025.
The company's business model centers on what it calls "Everyday Low Prices," with its offerings averaging approximately 10% below competitors' lowest promoted prices and 20% to 25% below their listed prices. This value proposition has helped the retailer expand its customer base beyond its traditional demographic. Approximately 46% of fiscal 2024 customers had household incomes exceeding $100,000, and new customers earning above $150,000 increased by nearly 25% year-over-year as of September 28, 2025.
Private equity firm Bain Capital will retain significant control following the IPO, owning approximately 75% of outstanding shares. The company will remain a "controlled company" under NYSE standards, which exempts it from certain corporate governance requirements. Bob's Discount Furniture paid a dividend of $423.3 million to shareholders in October 2025, funded by the term loan proceeds and cash on hand.
The company operates an omnichannel model with 2.9 million active customers, of which 73% shopped across multiple channels in fiscal 2025. Its network includes five distribution centers and 46 third-party regional depots, supporting its strategy of offering quick delivery on many items.
Looking ahead, Bob's Discount Furniture plans aggressive expansion, targeting more than 500 locations by 2035. The domestic home furnishings industry, excluding barbecues, was valued at $182 billion in 2024, according to the company's prospectus, providing ample room for growth despite competitive pressure from online retailers and traditional furniture chains.
The successful debut comes amid a cautious IPO market, where retail companies have faced skepticism from investors. However, Bob's Discount Furniture's combination of value positioning, store growth, and improving profitability metrics appears to have resonated with market participants seeking exposure to the consumer discretionary sector.