Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.1
Revenue
 3 Months Ended
Mar. 30, 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 March 30, 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 March 30, 2023, contract liabilities totaled $64.9 million and included $14.4 million of deferred revenue, $36.6 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 $11.3 million was recognized in revenue during the thirteen weeks ended March 30, 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
March 30, 2023 March 31, 2022
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate and vinyl $ 299,378  27  % $ 282,235  27  %
Tile 264,584  24  230,611  22 
Installation materials and tools 202,069  18  167,845  16 
Decorative accessories and wall tile 198,578  18  191,035  19 
Wood 62,221  6  71,946  7 
Natural stone 55,025  5  53,456  5 
Adjacent categories 20,012  1  16,188  2 
Other (1) 20,185  1  15,418  2 
Total $ 1,122,052  100  % $ 1,028,734  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.