Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Net sales consist of revenue associated with contracts with customers for the sale of goods and services in amounts that reflect the consideration the Company is entitled to receive in exchange for those goods and services.

Deferred Revenue & Contract Liabilities

In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, the Company recognizes revenue when the customer obtains control of the inventory. Amounts in deferred revenue at period-end reflect orders for which the inventory was not yet ready for physical transfer to customers.

Contract liabilities within the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 30, 2021 primarily consisted of deferred revenue as well as amounts in accrued expenses and other current liabilities related to the Pro Premier loyalty program and unredeemed gift cards. As of June 30, 2022, contract liabilities totaled $57.1 million and included $20.2 million of deferred revenue, $27.5 million of loyalty program liabilities, and $9.4 million of unredeemed gift cards. As of December 30, 2021, contract liabilities totaled $40.2 million and included $14.5 million of deferred revenue, $20.4 million of loyalty program liabilities, and $5.3 million of unredeemed gift cards. Of the contract liabilities outstanding as of December 30, 2021, approximately $14.9 million was recognized in revenue during the twenty-six weeks ended June 30, 2022.

Disaggregated Revenue

The Company has one reportable segment. The following table presents the net sales of each major product category (in thousands):

	Thirteen Weeks Ended
	June 30, 2022				July 1, 2021
Product Category	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Laminate / luxury vinyl plank	$	299,610	27	%	$	214,642	25	%
Tile	248,295		23		208,379		24
Decorative accessories / wall tile	190,966		18		163,956		19
Installation materials and tools	178,319		16		141,369		16
Wood	71,489		7		66,158		8
Natural stone	55,248		5		51,983		6
Adjacent categories (1)	17,837		2		13,587		2
Other (2)	28,082		2		34		—
Total	$	1,089,846	100	%	$	860,108	100	%

	Twenty-six Weeks Ended
	June 30, 2022				July 1, 2021
Product Category	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Laminate / luxury vinyl plank	$	581,845	27	%	$	400,677	24	%
Tile	478,906		23		397,815		24
Decorative accessories / wall tile	382,001		18		321,330		20
Installation materials and tools	346,164		16		271,970		17
Wood	143,435		7		128,289		8
Natural stone	108,704		5		101,234		6
Adjacent categories (1)	34,025		2		25,823		1
Other (2)	43,500		2		(4,493)		—
Total	$	2,118,580	100	%	$	1,642,645	100	%

(1) Adjacent categories primarily includes bathroom and kitchen products and accessories.

(2) Other includes delivery, sample, and other product revenue and adjustments for deferred revenue, sales returns reserves, customer rewards under the Company’s Pro Premier Loyalty program, and other revenue related adjustments that are not allocated on a product-level basis.