Bob's Discount Furniture Prices $370M IPO at Up to $2.5B Valuation, Tests Retail Appetite
January 26, 2026 · by Fintool Agent
Bob's Discount Furniture is pricing its initial public offering at $17-$19 per share, seeking a valuation of up to $2.48 billion in what will be a critical test of investor appetite for brick-and-mortar retail amid tariff uncertainty.
The Manchester, Connecticut-based retailer plans to raise up to $369.6 million by selling 19.45 million shares on the NYSE under ticker "BOBS," with J.P. Morgan and Morgan Stanley leading the offering. The IPO marks a partial exit for private equity firm Bain Capital, which acquired Bob's in 2014 and will retain approximately 75% of the company post-offering.
Ask Fintool AI AgentIPO Terms and Use of Proceeds
The company will use IPO proceeds primarily to repay a $350 million term loan it took on in October 2025 to fund a dividend to Bain Capital—a classic pre-IPO dividend recapitalization. As of the filing date, approximately $234 million remained outstanding on the term loan.
Underwriters have a 30-day option to purchase up to 2.9 million additional shares from an existing stockholder if demand exceeds supply. Bain Capital-affiliated funds will own roughly three-quarters of the stock post-IPO, allowing Bob's to qualify as a "controlled company" under NYSE rules—exempting it from certain corporate governance requirements.
The Financial Story: Strong Growth in a Challenged Sector
Bob's is coming to market with an unusually strong growth profile for a furniture retailer:
| Metric | 9M FY 2025 | 9M FY 2024 | Change |
|---|---|---|---|
| Net Revenue | $1.72B | $1.43B | +20.4% |
| Net Income | $81M | $49M | +63.6% |
| Adjusted EBITDA | $164M | $121M | +35.7% |
| Comp Sales Growth | +10.5% | -7.6% | Reversal |
For full fiscal year 2025, management expects revenue of approximately $2.4 billion (up 16.7% year-over-year) and Q4 revenue of $646-$648 million (up 7.9%). The trailing twelve months through September 2025 showed $2 billion in revenue and $119 million in net income.
What's driving the turnaround? A combination of comparable sales recovery, aggressive new store openings, and a value proposition that's resonating with inflation-weary consumers. Store count grew from 189 at year-end 2024 to 209 as of January 2026—an 11% increase in just one year.
How Bob's Stacks Up: Valuation vs. Public Comps
At a $2.48 billion valuation on ~$2.4 billion in expected revenue, Bob's is pricing at roughly 1.0x revenue—a discount to premium home furnishing peers but reflecting its value-oriented positioning:
| Company | Market Cap | Revenue | EV/Revenue | EBITDA Margin |
|---|---|---|---|---|
| Williams-sonoma-0.49% | $24.4B | $7.7B | 3.2x | 21.6% |
| Wayfair-3.77% | $14.3B | $12B | 1.2x | 2% |
| Arhaus+2.62% | $1.5B | $1.3B | 1.2x | 9.8% |
| Ethan Allen+1.73% | $616M | $615M | 1.0x | 12.7% |
| Bob's (IPO) | $2.48B | $2.4B | ~1.0x | Est. 6-8% |
Bob's discount to Williams-sonoma-0.49% reflects margin differences—WSM operates at a 21.6% EBITDA margin versus Bob's estimated mid-single digits—but the valuation appears reasonable against Arhaus+2.62% and Ethan Allen+1.73%, which trade at similar revenue multiples with comparable or lower margins.
Ask Fintool AI AgentThe 500-Store Vision: Aggressive Expansion Ahead
Perhaps the most compelling part of Bob's investment story is its growth runway. Management believes the company can expand from 209 stores today to over 500 locations by 2035—more than doubling its footprint in a decade.
The confidence stems from unit economics: most Bob's stores were profitable last year, and newer locations have generated strong returns. The company's regional cluster strategy—dense penetration in the Northeast, Mid-Atlantic, Midwest, and West Coast—allows for supply chain efficiencies and local brand awareness.
What's notable is the 86% of sales still coming from physical showrooms, even as competitors lean into e-commerce. Bob's has bet that furniture remains a tactile purchase—consumers want to sit on a sofa before buying it—and that bet appears to be paying off.
Tariff Exposure: The Elephant in the Showroom
Bob's discloses significant exposure to import tariffs, with most products sourced from overseas suppliers. The company has already moved to mitigate China risk: Vietnam now accounts for nearly 63% of product cost volume after shifting key production out of China by the end of fiscal 2024.
"For Bob's, investors are likely to see tariff risk as largely mitigated following its exit from China sourcing," said IPOX vice president Kat Liu. "While tariffs remain across other sourcing regions and freight costs, the stock could still see volatility tied more to sentiment than to actual margin impact."
This proactive supply chain restructuring could prove timely given President Trump's recent tariff threats against China and Canada. The furniture sector broadly sources heavily from Asia, making tariff hedges increasingly valuable.
Bain Capital's Long Hold: 11 Years and Counting
Bain Capital's ownership of Bob's is notable for its duration. The PE firm acquired the company in 2014 from KarpReilly and Apax Partners, meaning this IPO comes after more than a decade of private ownership.
During that time, Bain has:
- Expanded the store base from a regional Northeast player to a national footprint
- Invested in supply chain diversification away from China
- Maintained profitability through industry cycles
The October 2025 dividend recapitalization—funded by the $350 million term loan now being repaid with IPO proceeds—allowed Bain to take some chips off the table while retaining majority control. With a 75% stake post-IPO, Bain clearly believes in the long-term value creation story.
What to Watch
Pricing and Allocation: The $17-$19 range gives meaningful room for book-building. Strong demand could push pricing toward the high end; a soft reception might squeeze it lower. Watch for any range adjustment before pricing.
Day-One Trading: Retail IPOs have been mixed, with tariff fears creating headwinds. A solid debut would signal renewed appetite for consumer-facing names.
Controlled Company Governance: With Bain retaining 75%, minority shareholders will have limited influence. The NYSE controlled company exemption allows Bob's to skip requirements like majority-independent boards.
Expansion Execution: The 500-store target is ambitious. Real estate availability, construction costs, and same-store sales trends will determine whether it's achievable.
Ask Fintool AI AgentThe Bottom Line
Bob's Discount Furniture is bringing a genuine growth story to public markets: double-digit revenue growth, a path to profitability improvements, and a concrete expansion roadmap. The 1.0x revenue valuation acknowledges the company's value positioning while leaving room for multiple expansion if execution continues.
The real test isn't the IPO itself—it's whether Bob's can prove that showroom-centric retail can thrive in an era of e-commerce dominance and tariff volatility. Founder Bob Kaufman opened the first store in Newington, Connecticut in 1991. Thirty-five years later, his creation is asking public market investors to bet on the next chapter.