Quarterly report pursuant to Section 13 or 15(d)

Revenue

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Revenue
 6 Months Ended
Jun. 27, 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 June 27, 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 June 27, 2024, contract liabilities totaled $73.3 million and included $50.5 million of loyalty program liabilities, $13.3 million of deferred revenue, and $9.5 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 $15.5 million was recognized in revenue during the twenty-six weeks ended June 27, 2024.
Disaggregated Revenue
The Company has one reportable segment. The following table presents the net sales of each major product category (dollars in thousands):
Thirteen Weeks Ended
June 27, 2024 June 29, 2023
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate and vinyl $ 271,995  24  % $ 299,349  26  %
Tile 262,430  23  271,263  24 
Installation materials and tools 232,409  21  208,448  18 
Decorative accessories and wall tile 195,516  17  190,779  17 
Wood 66,390  6  64,340  6 
Natural stone 53,431  5  53,885  5 
Adjacent categories 25,053  2  20,013  2 
Other (1) 25,915  2  27,822  2 
Total $ 1,133,139  100  % $ 1,135,899  100  %
Twenty-six Weeks Ended
June 27, 2024 June 29, 2023
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate and vinyl $ 537,388  24  % $ 598,727  27  %
Tile 518,816  23  535,848  24 
Installation materials and tools 451,896  20  410,517  18 
Decorative accessories and wall tile 389,384  18  389,357  17 
Wood 134,130  6  126,562  6 
Natural stone 103,423  5  108,910  5 
Adjacent categories 48,111  2  40,025  1 
Other (1) 47,280  2  48,005  2 
Total $ 2,230,428  100  % $ 2,257,951  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.