Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.3
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.