Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.21.2
Revenue
 6 Months Ended
Jul. 01, 2021
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
Under 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 July 1, 2021 and December 31, 2020 primarily consisted of deferred revenue as well as amounts in accrued expenses and other current liabilities related to the Pro Premier loyalty program and unredeemed gift cards. As of July 1, 2021, contract liabilities totaled $42.4 million and included $23.1 million of deferred revenue, $16.2 million of loyalty program liabilities, and $3.1 million of unredeemed gift cards. As of December 31, 2020, contract liabilities totaled $24.8 million and included $10.1 million of deferred revenue, $12.1 million of loyalty program liabilities, and $2.6 million of unredeemed gift cards. Of the contract liabilities outstanding as of December 31, 2020, approximately $8.3 million was recognized in revenue during the twenty-six weeks ended July 1, 2021.
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
July 1, 2021 June 25, 2020 (1)
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Tile $ 208,379  24  % $ 118,981  26  %
Laminate / luxury vinyl plank 214,642  25  105,427  23 
Decorative accessories / wall tile (1) 163,956  19  84,232  18 
Installation materials and tools 141,369  16  73,213  16 
Wood 66,158  8  41,901  9 
Natural stone 51,983  6  30,319  6 
Adjacent categories (1) 13,587  2  3,315  1 
Other (2) 34  —  4,964  1 
Total $ 860,108  100  % $ 462,352  100  %
Twenty-six Weeks Ended
July 1, 2021 June 25, 2020 (1)
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Tile $ 397,815  24  % $ 253,893  25  %
Laminate / luxury vinyl plank 400,677  24  230,421  23 
Decorative accessories / wall tile (1) 321,330  20  195,261  19 
Installation materials and tools 271,970  17  167,789  16 
Wood 128,289  8  90,896  9 
Natural stone 101,234  6  65,196  6 
Adjacent categories (1) 25,823  1  5,883  1 
Other (2) (4,493) —  7,950  1 
Total $ 1,642,645  100  % $ 1,017,289  100  %
(1) To conform to the current period presentation, the presentation of revenue by product category for the thirteen and twenty-six weeks ended June 25, 2020 has been updated within this table to provide disclosure of adjacent categories, which primarily includes bathroom and kitchen products and accessories, as a separate category. In prior periods, adjacent categories revenue was included as a component of the decorative accessories / wall tile product category.
(2) Other includes delivery, sample, and other product revenue and adjustments for deferred revenue, sales returns reserves, customer rewards under our Pro Premier Loyalty program, and other revenue related adjustments that are not allocated on a product-level basis.