Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.2
Revenue
 6 Months Ended
Jun. 30, 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 June 30, 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 June 30, 2022, contract liabilities totaled $57.1 million and included $20.2 million of deferred revenue, $27.5 million of loyalty program liabilities, and $9.4 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 $14.9 million was recognized in revenue during the twenty-six weeks ended June 30, 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
June 30, 2022 July 1, 2021
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate / luxury vinyl plank $ 299,610  27  % $ 214,642  25  %
Tile 248,295  23  208,379  24 
Decorative accessories / wall tile 190,966  18  163,956  19 
Installation materials and tools 178,319  16  141,369  16 
Wood 71,489  7  66,158  8 
Natural stone 55,248  5  51,983  6 
Adjacent categories (1) 17,837  2  13,587  2 
Other (2) 28,082  2  34  — 
Total $ 1,089,846  100  % $ 860,108  100  %
Twenty-six Weeks Ended
June 30, 2022 July 1, 2021
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate / luxury vinyl plank $ 581,845  27  % $ 400,677  24  %
Tile 478,906  23  397,815  24 
Decorative accessories / wall tile 382,001  18  321,330  20 
Installation materials and tools 346,164  16  271,970  17 
Wood 143,435  7  128,289  8 
Natural stone 108,704  5  101,234  6 
Adjacent categories (1) 34,025  2  25,823  1 
Other (2) 43,500  2  (4,493) — 
Total $ 2,118,580  100  % $ 1,642,645  100  %
(1) Adjacent categories primarily includes 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.