Quarterly report pursuant to Section 13 or 15(d)

Revenue

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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.