Revenue

9 Months Ended

Sep. 28, 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 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 28, 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 September 28, 2023, contract liabilities totaled $70.2 million and included $43.1 million of loyalty program liabilities, $13.7 million of unredeemed gift cards, and $13.4 million of deferred revenue. As of December 29, 2022, contract liabilities totaled $57.0 million and included $33.8 million of loyalty program liabilities, $13.1 million of unredeemed gift cards, and $10.1 million of deferred revenue. Of the contract liabilities outstanding as of December 29, 2022, approximately $16.7 million was recognized in revenue during the thirty-nine weeks ended September 28, 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
	September 28, 2023				September 29, 2022
Product Category	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Laminate and vinyl	$	287,631	26	%	$	314,502	29	%
Tile	258,148		23		246,336		22
Installation materials and tools	211,732		19		183,495		17
Decorative accessories and wall tile	183,657		17		187,369		17
Wood	66,646		6		69,691		6
Natural stone	51,655		5		52,670		5
Adjacent categories	21,789		2		17,338		2
Other (1)	26,554		2		26,423		2
Total	$	1,107,812	100	%	$	1,097,824	100	%

	Thirty-nine Weeks Ended
	September 28, 2023				September 29, 2022
Product Category	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Laminate and vinyl	$	886,358	26	%	$	896,347	28	%
Tile	793,995		24		725,242		22
Installation materials and tools	622,249		18		529,659		16
Decorative accessories and wall tile	573,014		17		569,370		18
Wood	193,207		6		213,126		7
Natural stone	160,565		5		161,374		5
Adjacent categories	61,814		2		51,363		2
Other (1)	74,561		2		69,923		2
Total	$	3,365,763	100	%	$	3,216,404	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-category basis.