Revenue

6 Months Ended

Jun. 29, 2023

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 29, 2023 and December 29, 2022 primarily consisted of deferred revenue as well as amounts in accrued expenses and other current liabilities related to the Pro Premier Rewards loyalty program and unredeemed gift cards. As of June 29, 2023, contract liabilities totaled $68.1 million and included $14.4 million of deferred revenue, $39.8 million of loyalty program liabilities, and $13.9 million of unredeemed gift cards. As of December 29, 2022, contract liabilities totaled $57.0 million and included $10.1 million of deferred revenue, $33.8 million of loyalty program liabilities, and $13.1 million of unredeemed gift cards. Of the contract liabilities outstanding as of December 29, 2022, approximately $14.7 million was recognized in revenue during the twenty-six weeks ended June 29, 2023.

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 29, 2023				June 30, 2022
Product Category	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Laminate and vinyl	$	299,349	26	%	$	299,610	27	%
Tile	271,263		24		248,295		23
Installation materials and tools	208,448		18		178,319		16
Decorative accessories and wall tile	190,779		17		190,966		18
Wood	64,340		6		71,489		7
Natural stone	53,885		5		55,248		5
Adjacent categories	20,013		2		17,837		2
Other (1)	27,822		2		28,082		2
Total	$	1,135,899	100	%	$	1,089,846	100	%

	Twenty-six Weeks Ended
	June 29, 2023				June 30, 2022
Product Category	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Laminate and vinyl	$	598,727	27	%	$	581,845	27	%
Tile	535,848		24		478,906		23
Installation materials and tools	410,517		18		346,164		16
Decorative accessories and wall tile	389,357		17		382,001		18
Wood	126,562		6		143,435		7
Natural stone	108,910		5		108,704		5
Adjacent categories	40,025		1		34,025		2
Other (1)	48,005		2		43,500		2
Total	$	2,257,951	100	%	$	2,118,580	100	%

(1) Other includes delivery, sample, and other product revenue and adjustments for deferred revenue, sales returns reserves, and other revenue related adjustments that are not allocated on a product-level basis.