Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.24.3
Revenue
 9 Months Ended
Sep. 26, 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 September 26, 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 September 26, 2024, contract liabilities totaled $73.0 million and included $52.4 million of loyalty program liabilities, $12.5 million of deferred revenue, and $8.1 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 $17.3 million was recognized in revenue during the thirty-nine weeks ended September 26, 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
September 26, 2024 September 28, 2023
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate and vinyl $ 271,210  24  % $ 287,631  26  %
Tile 255,202  23  258,148  23 
Installation materials and tools 231,400  21  211,732  19 
Decorative accessories and wall tile 188,537  17  183,657  17 
Wood 67,016  6  66,646  6 
Natural stone 50,704  5  51,655  5 
Adjacent categories 27,852  2  21,789  2 
Other (1) 26,005  2  26,554  2 
Total $ 1,117,926  100  % $ 1,107,812  100  %
Thirty-nine Weeks Ended
September 26, 2024 September 28, 2023
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate and vinyl $ 808,598  24  % $ 886,358  26  %
Tile 774,018  23  793,995  24 
Installation materials and tools 683,296  21  622,249  18 
Decorative accessories and wall tile 577,921  17  573,014  17 
Wood 201,146  6  193,207  6 
Natural stone 154,127  5  160,565  5 
Adjacent categories 75,963  2  61,814  2 
Other (1) 73,285  2  74,561  2 
Total $ 3,348,354  100  % $ 3,365,763  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.