Revenue

3 Months Ended

Mar. 28, 2024

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 March 28, 2024 and December 28, 2023 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 March 28, 2024, contract liabilities totaled $72.6 million and included $47.5 million of loyalty program liabilities, $14.2 million of deferred revenue, and $10.9 million of unredeemed gift cards. As of December 28, 2023, contract liabilities totaled $69.6 million and included $45.6 million of loyalty program liabilities, $11.3 million of deferred revenue, and $12.7 million of unredeemed gift cards. Of the contract liabilities outstanding as of December 28, 2023, approximately $12.9 million was recognized in revenue during the thirteen weeks ended March 28, 2024.

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
	March 28, 2024				March 30, 2023
Product Category	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Laminate and vinyl	$	265,393	24	%	$	299,378	27	%
Tile	256,386		23		264,584		24
Installation materials and tools	219,487		20		202,069		18
Decorative accessories and wall tile	193,868		18		198,578		18
Wood	67,740		6		62,221		6
Natural stone	49,992		5		55,025		5
Adjacent categories	23,058		2		20,012		1
Other (1)	21,365		2		20,185		1
Total	$	1,097,289	100	%	$	1,122,052	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.