Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.2
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.