Revenue

9 Months Ended

Sep. 29, 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 September 29, 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 September 29, 2022, contract liabilities totaled $58.9 million and included $15.9 million of deferred revenue, $31.7 million of loyalty program liabilities, and $11.3 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 $15.8 million was recognized in revenue during the thirty-nine weeks ended September 29, 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
	September 29, 2022				September 30, 2021
Product Category	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Laminate / luxury vinyl plank	$	314,502	29	%	$	230,279	26	%
Tile	246,336		22		201,674		23
Decorative accessories / wall tile	187,369		17		160,195		18
Installation materials and tools	183,495		17		138,794		16
Wood	69,691		6		64,798		7
Natural stone	52,670		5		48,267		6
Adjacent categories (1)	17,338		2		13,685		2
Other (2)	26,423		2		18,861		2
Total	$	1,097,824	100	%	$	876,553	100	%

	Thirty-nine Weeks Ended
	September 29, 2022				September 30, 2021
Product Category	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Laminate / luxury vinyl plank	$	896,347	28	%	$	630,956	25	%
Tile	725,242		22		599,489		24
Decorative accessories / wall tile	569,370		18		481,525		19
Installation materials and tools	529,659		16		410,764		16
Wood	213,126		7		193,087		8
Natural stone	161,374		5		149,501		6
Adjacent categories (1)	51,363		2		39,508		2
Other (2)	69,923		2		14,368		—
Total	$	3,216,404	100	%	$	2,519,198	100	%

(1) Adjacent categories primarily include 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.