Cover Page
| Cover Page - shares | 6 Months Ended | |
| Jun. 27, 2024 | Jul. 29, 2024 | |
| Cover [Abstract] | ||
| Document Type | 10-Q | |
| Document Quarterly Report | true | |
| Document Period End Date | Jun. 27, 2024 | |
| Document Transition Report | false | |
| Entity File Number | 001-38070 | |
| Entity Registrant Name | Floor & Decor Holdings, Inc. | |
| Entity Incorporation, State or Country Code | DE | |
| Entity Tax Identification Number | 27-3730271 | |
| Entity Address, Address Line One | 2500 Windy Ridge Parkway SE | |
| Entity Address, City or Town | Atlanta, | |
| Entity Address, State or Province | GA | |
| Entity Address, Postal Zip Code | 30339 | |
| City Area Code | (404) | |
| Local Phone Number | 471-1634 | |
| Title of 12(b) Security | Class A common stock, $0.001 par value per share | |
| Trading Symbol | FND | |
| Security Exchange Name | NYSE | |
| Entity Current Reporting Status | Yes | |
| Entity Interactive Data Current | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Small Business | false | |
| Entity Emerging Growth Company | false | |
| Entity Shell Company | false | |
| Entity Common Stock, Shares Outstanding | 107,163,459 | |
| Entity Central Index Key | 0001507079 | |
| Amendment Flag | false | |
| Current Fiscal Year End Date | --12-26 | |
| Document Fiscal Period Focus | Q2 | |
| Document Fiscal Year Focus | 2024 |
Condensed Consolidated Balance
| Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 27, 2024 | Dec. 28, 2023 |
| Current assets: | ||
| Cash and cash equivalents | $ 138,063 | $ 34,382 |
| Income taxes receivable | 4,109 | 27,870 |
| Receivables, net | 109,334 | 99,513 |
| Inventories, net | 1,037,284 | 1,106,150 |
| Prepaid expenses and other current assets | 53,415 | 48,725 |
| Total current assets | 1,342,205 | 1,316,640 |
| Fixed assets, net | 1,700,787 | 1,629,917 |
| Right-of-use assets | 1,342,345 | 1,282,625 |
| Intangible assets, net | 152,036 | 153,869 |
| Goodwill | 257,940 | 257,940 |
| Deferred income tax assets, net | 15,239 | 14,227 |
| Other assets | 7,510 | 7,332 |
| Total long-term assets | 3,475,857 | 3,345,910 |
| Total assets | 4,818,062 | 4,662,550 |
| Current liabilities: | ||
| Current portion of term loan | 2,103 | 2,103 |
| Current portion of lease liabilities | 132,770 | 126,428 |
| Trade accounts payable | 698,716 | 679,265 |
| Accrued expenses and other current liabilities | 302,275 | 332,940 |
| Deferred revenue | 13,322 | 11,277 |
| Total current liabilities | 1,149,186 | 1,152,013 |
| Term loan | 194,733 | 194,939 |
| Lease liabilities | 1,362,140 | 1,301,754 |
| Deferred income tax liabilities, net | 53,974 | 67,188 |
| Other liabilities | 11,435 | 15,666 |
| Total long-term liabilities | 1,622,282 | 1,579,547 |
| Total liabilities | 2,771,468 | 2,731,560 |
| Commitments and contingencies (Note 5) | ||
| Capital stock: | ||
| Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at June 27, 2024 and December 28, 2023 | 0 | 0 |
| Additional paid-in capital | 523,282 | 513,060 |
| Accumulated other comprehensive income, net | 106 | 1,422 |
| Retained earnings | 1,523,099 | 1,416,401 |
| Total stockholders’ equity | 2,046,594 | 1,930,990 |
| Total liabilities and stockholders’ equity | 4,818,062 | 4,662,550 |
| Class A Common Stock | ||
| Capital stock: | ||
| Common stock | 107 | 107 |
| Class B Common Stock | ||
| Capital stock: | ||
| Common stock | 0 | 0 |
| Class C Common Stock | ||
| Capital stock: | ||
| Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
| Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 27, 2024 | Dec. 28, 2023 |
| Stockholders’ equity | ||
| Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
| Preferred stock, shares issued (in shares) | 0 | 0 |
| Preferred stock, shares outstanding (in shares) | 0 | 0 |
| Class A Common Stock | ||
| Stockholders’ equity | ||
| Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
| Common stock, shares issued (in shares) | 107,132,849 | 106,737,532 |
| Common stock, shares outstanding (in shares) | 107,132,849 | 106,737,532 |
| Class B Common Stock | ||
| Stockholders’ equity | ||
| Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
| Common stock, shares issued (in shares) | 0 | 0 |
| Common stock, shares outstanding (in shares) | 0 | 0 |
| Class C Common Stock | ||
| Stockholders’ equity | ||
| Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
| Common stock, shares issued (in shares) | 0 | 0 |
| Common stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
| Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 27, 2024 | Jun. 29, 2023 | Jun. 27, 2024 | Jun. 29, 2023 | |
| Income Statement [Abstract] | ||||
| Net sales | $ 1,133,139 | $ 1,135,899 | $ 2,230,428 | $ 2,257,951 |
| Cost of sales | 642,105 | 656,266 | 1,269,368 | 1,309,200 |
| Gross profit | 491,034 | 479,633 | 961,060 | 948,751 |
| Operating expenses: | ||||
| Selling and store operating | 341,408 | 311,406 | 675,753 | 615,077 |
| General and administrative | 67,671 | 63,279 | 134,448 | 125,190 |
| Pre-opening | 10,627 | 9,974 | 20,220 | 17,994 |
| Total operating expenses | 419,706 | 384,659 | 830,421 | 758,261 |
| Operating income | 71,328 | 94,974 | 130,639 | 190,490 |
| Interest expense, net | 663 | 2,898 | 2,618 | 7,760 |
| Income before income taxes | 70,665 | 92,076 | 128,021 | 182,730 |
| Income tax expense | 13,999 | 20,624 | 21,323 | 39,754 |
| Net income | 56,666 | 71,452 | 106,698 | 142,976 |
| Change in fair value of hedge instruments, net of tax | (346) | (126) | (1,316) | (975) |
| Total comprehensive income | $ 56,320 | $ 71,326 | $ 105,382 | $ 142,001 |
| Basic earnings per share (in dollars per share) | $ 0.53 | $ 0.67 | $ 1 | $ 1.35 |
| Diluted earnings per share (in dollars per share) | $ 0.52 | $ 0.66 | $ 0.99 | $ 1.33 |
Condensed Consolidated Statem_2
| Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Common Stock Class A Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
| Beginning balance (in shares) at Dec. 29, 2022 | 106,151,000 | |||||
| Beginning balance at Dec. 29, 2022 | $ 1,657,176 | $ 106 | $ 482,312 | $ 4,337 | $ 1,170,421 | |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
| Stock-based compensation expense | 6,741 | 6,741 | ||||
| Exercise of stock options (in shares) | 79,000 | |||||
| Exercise of stock options | 2,130 | 2,130 | ||||
| Issuance of common stock upon vesting of restricted stock units (in shares) | 117,000 | |||||
| Shares issued under employee stock purchase plan (in shares) | 43,000 | |||||
| Shares issued under employee stock purchase plan | 2,558 | 2,558 | ||||
| Common stock redeemed for tax liability (in shares) | (119,000) | |||||
| Common stock redeemed for tax liability | (10,863) | (10,863) | ||||
| Other comprehensive loss, net of tax | (849) | (849) | ||||
| Net income | 71,524 | 71,524 | ||||
| Ending balance (in shares) at Mar. 30, 2023 | 106,271,000 | |||||
| Ending balance at Mar. 30, 2023 | 1,728,417 | $ 106 | 482,878 | 3,488 | 1,241,945 | |
| Beginning balance (in shares) at Dec. 29, 2022 | 106,151,000 | |||||
| Beginning balance at Dec. 29, 2022 | 1,657,176 | $ 106 | 482,312 | 4,337 | 1,170,421 | |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
| Other comprehensive loss, net of tax | (975) | |||||
| Net income | 142,976 | |||||
| Ending balance (in shares) at Jun. 29, 2023 | 106,391,000 | |||||
| Ending balance at Jun. 29, 2023 | 1,809,779 | $ 106 | 492,914 | 3,362 | 1,313,397 | |
| Beginning balance (in shares) at Mar. 30, 2023 | 106,271,000 | |||||
| Beginning balance at Mar. 30, 2023 | 1,728,417 | $ 106 | 482,878 | 3,488 | 1,241,945 | |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
| Stock-based compensation expense | 8,306 | 8,306 | ||||
| Exercise of stock options (in shares) | 123,000 | |||||
| Exercise of stock options | 2,728 | 2,728 | ||||
| Issuance of common stock upon vesting of restricted stock units (in shares) | 8,000 | |||||
| Common stock redeemed for tax liability (in shares) | (11,000) | |||||
| Common stock redeemed for tax liability | (998) | (998) | ||||
| Other comprehensive loss, net of tax | (126) | (126) | ||||
| Net income | 71,452 | 71,452 | ||||
| Ending balance (in shares) at Jun. 29, 2023 | 106,391,000 | |||||
| Ending balance at Jun. 29, 2023 | 1,809,779 | $ 106 | 492,914 | 3,362 | 1,313,397 | |
| Beginning balance (in shares) at Dec. 28, 2023 | 106,737,532 | 106,738,000 | ||||
| Beginning balance at Dec. 28, 2023 | 1,930,990 | $ 107 | 513,060 | 1,422 | 1,416,401 | |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
| Stock-based compensation expense | 7,232 | 7,232 | ||||
| Exercise of stock options (in shares) | 171,000 | |||||
| Exercise of stock options | 3,854 | 3,854 | ||||
| Issuance of common stock upon vesting of restricted stock units (in shares) | 184,000 | |||||
| Shares issued under employee stock purchase plan (in shares) | 28,000 | |||||
| Shares issued under employee stock purchase plan | 2,720 | 2,720 | ||||
| Common stock redeemed for tax liability (in shares) | (110,000) | |||||
| Common stock redeemed for tax liability | (13,057) | (13,057) | ||||
| Other comprehensive loss, net of tax | (970) | (970) | ||||
| Net income | 50,032 | 50,032 | ||||
| Ending balance (in shares) at Mar. 28, 2024 | 107,011,000 | |||||
| Ending balance at Mar. 28, 2024 | 1,980,801 | $ 107 | 513,809 | 452 | 1,466,433 | |
| Beginning balance (in shares) at Dec. 28, 2023 | 106,737,532 | 106,738,000 | ||||
| Beginning balance at Dec. 28, 2023 | $ 1,930,990 | $ 107 | 513,060 | 1,422 | 1,416,401 | |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
| Exercise of stock options (in shares) | 283,357 | |||||
| Other comprehensive loss, net of tax | $ (1,316) | |||||
| Net income | 106,698 | |||||
| Ending balance (in shares) at Jun. 27, 2024 | 107,132,849 | 107,133,000 | ||||
| Ending balance at Jun. 27, 2024 | 2,046,594 | $ 107 | 523,282 | 106 | 1,523,099 | |
| Beginning balance (in shares) at Mar. 28, 2024 | 107,011,000 | |||||
| Beginning balance at Mar. 28, 2024 | 1,980,801 | $ 107 | 513,809 | 452 | 1,466,433 | |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
| Stock-based compensation expense | 8,355 | 8,355 | ||||
| Exercise of stock options (in shares) | 112,000 | |||||
| Exercise of stock options | 1,588 | 1,588 | ||||
| Issuance of common stock upon vesting of restricted stock units (in shares) | 13,000 | |||||
| Common stock redeemed for tax liability (in shares) | (3,000) | |||||
| Common stock redeemed for tax liability | (470) | (470) | ||||
| Other comprehensive loss, net of tax | (346) | (346) | ||||
| Net income | 56,666 | 56,666 | ||||
| Ending balance (in shares) at Jun. 27, 2024 | 107,132,849 | 107,133,000 | ||||
| Ending balance at Jun. 27, 2024 | $ 2,046,594 | $ 107 | $ 523,282 | $ 106 | $ 1,523,099 |
Condensed Consolidated Statem_3
| Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
| Jun. 27, 2024 | Jun. 29, 2023 | |
| Operating activities | ||
| Net income | $ 106,698 | $ 142,976 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 114,807 | 96,028 |
| Stock-based compensation expense | 15,587 | 15,047 |
| Deferred income taxes | (13,770) | (13,480) |
| Loss on asset impairments and disposals, net | 1,511 | 765 |
| Change in fair value of contingent earn-out liabilities | (87) | 1,787 |
| Interest cap derivative contracts | 85 | 57 |
| Changes in operating assets and liabilities, net of effects of acquisition: | ||
| Receivables, net | (9,821) | 12,595 |
| Inventories, net | 68,866 | 128,554 |
| Trade accounts payable | 19,136 | 84,885 |
| Accrued expenses and other current liabilities | 18,969 | 6,579 |
| Income taxes | 24,390 | (6,755) |
| Deferred revenue | 2,045 | 4,324 |
| Other, net | (6,936) | 3,283 |
| Net cash provided by operating activities | 341,480 | 476,645 |
| Investing activities | ||
| Purchases of fixed assets | (225,614) | (279,175) |
| Acquisition, net of cash acquired | 0 | (17,156) |
| Net cash used in investing activities | (225,614) | (296,331) |
| Financing activities | ||
| Payments on term loan | (1,051) | (1,051) |
| Borrowings on revolving line of credit | 258,600 | 384,200 |
| Payments on revolving line of credit | (258,600) | (559,400) |
| Payments of contingent earn-out liabilities | (5,769) | (5,241) |
| Proceeds from exercise of stock options | 5,442 | 4,858 |
| Proceeds from employee stock purchase plan | 2,720 | 2,558 |
| Tax payments for stock-based compensation awards | (13,527) | (11,861) |
| Net cash used in financing activities | (12,185) | (185,937) |
| Net increase (decrease) in cash and cash equivalents | 103,681 | (5,623) |
| Cash and cash equivalents, beginning of the period | 34,382 | 9,794 |
| Cash and cash equivalents, end of the period | 138,063 | 4,171 |
| Supplemental disclosures of cash flow information | ||
| Buildings and equipment acquired under operating leases | 128,008 | 112,554 |
| Cash paid for interest, net of capitalized interest | 2,121 | 7,455 |
| Cash paid for income taxes, net of refunds | 10,699 | 60,792 |
| Fixed assets accrued at the end of the period | $ 93,506 | $ 116,555 |
Basis of Presentation and Summa
| Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
| Jun. 27, 2024 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Nature of Business Floor & Decor Holdings, Inc., together with its subsidiaries (the “Company,” “we,” “our,” or “us”) is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate and vinyl, and natural stone along with decorative accessories and wall tile, installation materials, and adjacent categories at everyday low prices. Our stores appeal to a variety of customers, including professional installers and commercial businesses (“Pro”) and homeowners, which are comprised of do it yourself customers (“DIY”) and buy it yourself customers, who buy our products for professional installation (“BIY”). We operate within one reportable segment. As of June 27, 2024, the Company, through its wholly owned subsidiary, Floor and Decor Outlets of America, Inc. (“Outlets”), operates 230 warehouse-format stores, which average 78,000 square feet, and five small-format standalone design studios in 36 states, as well as four distribution centers and an e-commerce site, FloorandDecor.com , and a commercial surfaces business through its subsidiary, Spartan Surfaces, LLC. (“Spartan”) . Substantially all of the Company’s operating assets and liabilities are held by Outlets. Fiscal Year The Company’s fiscal year is the 52- or 53-week period ending on the Thursday on or preceding December 31st. The fiscal year ending December 26, 2024 (“fiscal 2024”) and the fiscal year ended December 28, 2023 (“fiscal 2023”) include 52 weeks. 52-week fiscal years consist of thirteen-week periods in each quarter of the fiscal year. When a 53-week fiscal year occurs, the Company reports the additional week at the end of the fiscal fourth quarter. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. The Condensed Consolidated Balance Sheet as of December 28, 2023 has been derived from the audited Consolidated Balance Sheet for the fiscal year then ended. The interim condensed consolidated financial statements should be read together with the audited consolidated financial statements and related footnote disclosures included in the Company’s Annual Report on Form 10-K for fiscal 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2024 (the “Annual Report”). Management believes the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary for a fair statement of results for the interim periods presented. Results of operations for the thirteen and twenty-six weeks ended June 27, 2024 are not necessarily indicative of the results to be expected for the full year. Summary of Significant Accounting Policies There were no significant changes to our Significant Accounting Policies as disclosed in the Annual Report. For more information regarding our Significant Accounting Policies and Estimates, see the “Summary of Significant Accounting Policies” section of “Item 8. Financial Statements and Supplementary Data” of our Annual Report. Recently Adopted Accounting Pronouncements Leases . In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-01, “Leases (Topic 842), Common Control Arrangements.” The amendments in the ASU applying to public business entities clarifies the accounting for leasehold improvements associated with common control leases, reducing diversity in practice and providing investors with financial information that will better reflect the economics of those transactions. In the first quarter of fiscal 2024, the Company adopted ASU No. 2023-01 on a prospective basis to all new leasehold improvements. The adoption of ASU 2023-01 did not have an impact on the Company’s consolidated financial statements or related disclosures and would only have an impact to the extent that the Company has future common control leases. Supplier Finance Programs. In September 2022, the FASB issued ASU No. 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50).” The ASU requires disclosure of the key terms of outstanding supply chain finance programs and a rollforward of the related amounts due to vendors participating in these programs. In the first quarter of fiscal 2023, the Company adopted the portion of the ASU 2022-04 guidance requiring disclosure of key terms of supply chain finance programs. The portion of the ASU 2022-04 guidance requiring a rollforward of activity within supply chain finance programs will be adopted in the Company’s Annual Report for fiscal 2024 and is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows as the standard only impacts financial statement footnote disclosures. For additional information, refer to Note 9, “Supply Chain Finance.” Recently Issued Accounting Pronouncements Codification Improvements. In March 2024, the FASB issued ASU No. 2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements.” ASU 2024-02 removes references to various FASB Concepts Statements within the Codification. The guidance in ASU No. 2024-02 is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, and can be applied either prospectively to all new transactions recognized on or after the date that the entity first applies the amendments or retrospectively to the beginning of the earliest comparative period presented in which the amendments were first applied. Early adoption is permitted. The adoption of ASU 2024-02 is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. Stock Compensation. In March 2024, the FASB issued ASU No. 2024-01, “Compensation - Stock Compensation (Topic 718).” The amendments in this ASU clarify how an entity determines whether a profits interest or similar award is within the scope of Accounting Standards Codification (“ASC”) 718, Compensation-Stock Compensation (“ASC 718”), by adding illustrative guidance. The guidance in ASU No. 2024-01 is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, and can be applied either retrospectively to all prior periods presented in the consolidated financial statements or prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies the amendments. Early adoption is permitted. The adoption of ASU 2024-01 is not expected to have any impact on the Company’s consolidated financial statements or related disclosures. The Company expects that ASU 2024-01 would only be applicable to the Company to the extent that it issues profits interests or similar awards. Income Taxes. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740).” The amendments in this ASU improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. Additionally, this ASU improves the effectiveness and comparability of disclosures by adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with SEC Regulation S-X 210.4-08(h) and by removing disclosures that no longer are considered cost beneficial or relevant. This guidance in ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption of the standard is permitted. The adoption of ASU 2023-09 is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. Segment Reporting. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU expands disclosure of reportable segments by requiring more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how the Chief Operating Decision Maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The guidance in ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. This guidance should be applied retrospectively to all prior periods presented in the consolidated financial statements. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-07 on the Company’s consolidated financial statements and related disclosures. Presentation and Disclosure Requirements . In October 2023, the FASB issued ASU No. 2023-06, “Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” The ASU amends the disclosure or presentation requirements related to various subtopics in the FASB ASC. The ASU was issued in response to the SEC’s August 2018 final amendments in Release No. 33-10532, Disclosure Update and Simplification , that updated and simplified disclosure requirements that the SEC believed were duplicative, overlapping, or outdated. The guidance in ASU 2023-06 is intended to align GAAP requirements with those of the SEC and to facilitate the application of GAAP for all entities. The amendments introduced by ASU 2023-06 are effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. If, by June 30, 2027, the SEC has not removed the applicable requirements from its existing regulations, the pending content of the associated amendment will be removed from the ASC and will not become effective for any entities. Early adoption is permitted. The adoption of ASU 2023-06 is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. |
Revenue
| 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. |
Debt
| Debt | 6 Months Ended |
| Jun. 27, 2024 | |
| Debt Disclosure [Abstract] | |
| Debt | Debt The following table summarizes the Company’s long-term debt as of June 27, 2024 and December 28, 2023: in thousands Maturity Date Interest Rate Per Annum at June 27, 2024 (1) June 27, 2024 December 28, 2023 Credit Facilities: Term Loan Facility February 14, 2027 7.33% Variable $ 201,345 $ 202,396 Asset-based Loan Facility (“ABL Facility”) August 4, 2027 6.60% Variable — — Total secured debt at par value 201,345 202,396 Less: current maturities 2,103 2,103 Long-term debt maturities 199,242 200,293 Less: unamortized discount and debt issuance costs 4,509 5,354 Total long-term debt $ 194,733 $ 194,939 (1) The applicable interest rate for the Term Loan Facility as presented herein does not include the effect of interest rate cap agreements. Refer to Note 8, “Fair Value Measurements” for additional details related to the Company’s interest rate cap agreements. The following table summarizes scheduled maturities of the Company’s debt as of June 27, 2024: in thousands Amount Twenty-six weeks ending December 26, 2024 $ 1,052 2025 2,103 2026 2,629 2027 195,561 Total minimum debt payments $ 201,345 Components of interest expense are as follows for the periods presented: Thirteen Weeks Ended Twenty-six Weeks Ended in thousands June 27, 2024 June 29, 2023 June 27, 2024 June 29, 2023 Total interest expense, net of interest income (1) $ 3,002 $ 4,581 $ 6,804 $ 10,767 Less: interest capitalized 2,339 1,683 4,186 3,007 Interest expense, net $ 663 $ 2,898 $ 2,618 $ 7,760 (1) Total interest expense, net of interest income includes interest income related to the Company’s interest rate cap agreements totaling $0.5 million and $1.2 million for the thirteen weeks ended June 27, 2024 and June 29, 2023, respectively, and $1.9 million and $2.3 million for the twenty-six weeks ended June 27, 2024 and June 29, 2023, respectively. Refer to Note 8, “Fair Value Measurements” for additional details related to the Company’s interest rate cap agreements. Term Loan Facility The Term Loan Facility bears interest at a rate equal to either (a) a base rate determined by reference to the highest of (1) the “Prime Rate,” (2) the U.S. federal funds rate plus 0.5% and (3) the one-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.0%, or (b) Adjusted Term SOFR, plus, in each case, the Applicable Margin (each term as defined in the Term Loan Facility credit agreement). The Applicable Margin for base rate loans will be between 1.00% and 1.25%, and the Applicable Margin for SOFR loans will be between 2.00% and 2.25% (subject to a floor of 0.00%), in each case, if the Company exceeds certain leverage ratio tests. All obligations under the Term Loan Facility are secured by (1) a first-priority security interest in substantially all of the property and assets of Outlets and the other guarantors under the Term Loan Facility, with certain exceptions, and (2) a second-priority security interest in the collateral securing the ABL Facility. ABL Facility As of June 27, 2024, the Company’s ABL Facility had a maximum availability of $800.0 million with actual available borrowings limited to the sum, at the time of calculation, of (a) eligible credit card receivables multiplied by the credit card advance rate, plus (b) the cost of eligible inventory, net of inventory reserves, multiplied by the applicable appraisal percentage, plus (c) 85% of eligible net trade receivables, plus (d) all eligible cash on hand, plus (e) 100% of the amount for which the eligible letter of credit must be honored after giving effect to any draws, minus certain Availability Reserves (each component as defined in the ABL Facility). The ABL Facility is available for issuance of letters of credit and contains a sublimit of $50.0 million for standby letters of credit and commercial letters of credit combined. Available borrowings under the facility are reduced by the face amount of outstanding letters of credit. The Company’s ABL Facility allows for the Company, under certain circumstances, to increase the size of the facility by an additional amount up to $200.0 million. All obligations under the ABL Facility are secured by (1) a first-priority security interest in the cash and cash equivalents, accounts receivable, inventory, and related assets of Outlets and the other guarantors under the ABL Facility, with certain exceptions, and (2) a second-priority security interest in substantially all of the other property and assets of Outlets and the other guarantors under the Term Loan Facility. Based on financial data as of June 27, 2024, net availability under the ABL Facility was $634.0 million as reduced by letters of credit of $35.3 million. Covenants The credit agreements governing the Term Loan Facility and ABL Facility contain customary restrictive covenants, which, among other things and with certain exceptions, limit the Company’s ability to (i) incur additional indebtedness and liens in connection with such indebtedness, (ii) pay dividends and make certain other restricted payments, (iii) effect mergers or consolidations, (iv) enter into transactions with affiliates, (v) sell or dispose of property or assets, and (vi) engage in unrelated lines of business. In addition, these credit agreements subject the Company to certain reporting obligations and require that the Company satisfy certain financial covenants, including, among other things, a requirement that if borrowings under the ABL Facility exceed 90% of availability, the Company will maintain a certain fixed charge coverage ratio (defined as Consolidated EBITDA less non-financed capital expenditures and income taxes paid to consolidated fixed charges, in each case as more fully defined in the ABL Facility). The Term Loan Facility has no financial maintenance covenants. The Company is currently in compliance with all covenants under the credit agreements. Fair Value of Debt Market risk associated with the Company’s long-term debt relates to the potential change in fair value and negative impact to future earnings, respectively, from a change in interest rates. The aggregate fair value of debt is based primarily on the Company’s estimates of interest rates, maturities, credit risk, and underlying collateral. The estimated fair value and classification within the fair value hierarchy of the Term Loan Facility was as follows as of June 27, 2024 and December 28, 2023: in thousands Fair Value Hierarchy Classification June 27, 2024 December 28, 2023 Term Loan Facility Level 3 $ 200,841 $ 201,637 The Term Loan Facility fair value is classified as Level 3 within the fair value hierarchy due to the use of unobservable inputs significant to the valuation, including indicative pricing from counterparties and discounted cash flow methods. No amounts were outstanding under the ABL Facility as of June 27, 2024 and December 28, 2023. |
Income Taxes
| Income Taxes | 6 Months Ended |
| Jun. 27, 2024 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Effective tax rates for the thirteen and twenty-six weeks ended June 27, 2024 and June 29, 2023 were based on the Company’s forecasted annualized effective tax rates and were adjusted for discrete items that occurred within each period. The Company’s effective income tax rate was 19.8% and 22.4% for the thirteen weeks ended June 27, 2024 and June 29, 2023, respectively, and 16.7% and 21.8% for the twenty-six weeks ended June 27, 2024 and June 29, 2023, respectively. For the thirteen and twenty-six weeks ended June 27, 2024, the effective income tax rates were lower than the statutory federal income tax rate of 21.0% primarily due to tax deductions in excess of book expense related to stock-based compensation awards. For the thirteen and twenty-six weeks ended June 29, 2023, the effective income tax rates were higher than the statutory federal income tax rate of 21.0% primarily due to state income taxes that were partially offset by tax deductions in excess of book expense related to stock-based compensation awards. |
Commitments and Contingencies
| Commitments and Contingencies | 6 Months Ended |
| Jun. 27, 2024 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company accounts for leases in accordance with ASC 842, Leases . The majority of the Company’s long-term operating lease agreements are for its retail locations, distribution centers, and corporate office, which expire in various years through 2049. Most of these agreements are retail leases wherein both the land and building are leased. The Company also has ground leases in which only the land is leased. The initial lease terms for the Company's retail locations, distribution centers, and corporate office typically range from 10-20 years. The majority of the Company’s leases also include options to extend, which are factored into the recognition of their respective assets and liabilities when appropriate based on management’s assessment of the probability that the options will be exercised. When readily determinable, the rate implicit in the lease is used to discount lease payments to present value; however, substantially all of the Company’s leases do not provide a readily determinable implicit rate. If the rate implicit in the lease is not readily determinable, the Company uses a third party to assist in the determination of a secured incremental borrowing rate, determined on a collateralized basis, to discount lease payments based on information available at lease commencement. The secured incremental borrowing rate is estimated based on yields obtained from Bloomberg for U.S. consumers with a BB credit rating and is adjusted for collateralization as well as inflation. As of June 27, 2024 and June 29, 2023, the Company’s weighted average discount rate was 5.8% and 5.6%, respectively. As of both June 27, 2024 and June 29, 2023, the weighted average remaining lease term of the Company’s leases was approximately 12 years. Lease Costs The table below presents components of lease expense for operating leases. Thirteen Weeks Ended Twenty-six Weeks Ended in thousands Classification June 27, 2024 June 29, 2023 June 27, 2024 June 29, 2023 Fixed operating lease cost: Selling and store operating $ 43,840 $ 38,529 $ 86,575 $ 76,673 Cost of sales 6,461 5,213 12,913 11,471 Pre-opening 4,151 3,906 7,214 6,972 General and administrative 1,031 1,030 2,060 2,102 Total fixed operating lease cost $ 55,483 $ 48,678 $ 108,762 $ 97,218 Variable lease cost (1): Selling and store operating $ 17,999 $ 15,282 $ 36,091 $ 29,768 Cost of sales 1,067 1,039 2,350 2,158 Pre-opening 162 12 335 143 General and administrative 578 316 1,157 619 Total variable lease cost $ 19,806 $ 16,649 $ 39,933 $ 32,688 Sublease income Cost of sales (680) (681) (1,362) (1,360) Total operating lease cost (2) $ 74,609 $ 64,646 $ 147,333 $ 128,546 (1) Includes variable costs for common area maintenance, property taxes, and insurance on leased real estate. (2) Excludes short-term lease costs, which were immaterial for the thirteen and twenty-six weeks ended June 27, 2024 and June 29, 2023. Undiscounted Cash Flows Future minimum lease payments under non-cancelable operating leases as of June 27, 2024 were as follows: in thousands Amount Twenty-six weeks ending December 26, 2024 $ 100,824 2025 219,589 2026 206,727 2027 195,791 2028 175,773 Thereafter 1,268,792 Total minimum lease payments (1) (2) 2,167,496 Less: amount of lease payments representing interest 672,586 Present value of future minimum lease payments 1,494,910 Less: current obligations under leases 132,770 Long-term lease obligations $ 1,362,140 (1) Future lease payments exclude approximately $451.1 million of legally binding minimum lease payments for operating leases signed but not yet commenced. (2) Operating lease payments include $255.0 million related to options to extend lease terms that are reasonably certain of being exercised. For the twenty-six weeks ended June 27, 2024 and June 29, 2023, cash paid for amounts included in the measurement of operating lease liabilities was $103.5 million and $93.6 million, respectively. Litigation On November 15, 2021, the Company was added as a defendant in a wrongful death lawsuit, Nguyen v. Inspections Now, Inc., No. 21-DCV-287142, pending in the 434th Judicial District Court of Fort Bend County, Texas. Inspections Now, Inc.; Bestview International Company; and Bestview (Fuzhou) Import & Export Co. LTD are also named as defendants in the case. Plaintiff’s petition alleges that “wood paneling” allegedly purchased from the Company was installed in the vicinity of plaintiff’s fireplace and caught fire while the fireplace was lit. The fire consumed plaintiff’s home and resulted in injuries to plaintiff and another occupant and the death of plaintiff’s three children and mother. Plaintiff alleges product defect and failure to warn claims against the Company; product defect, failure to warn, and strict liability claims against the Bestview entities; and negligent inspection claims against Inspections Now. Plaintiff’s petition seeks damages in excess of $1.0 million for property damage, personal injury, and wrongful death. The petition also seeks exemplary damages. Plaintiff’s ex-husband, brother, and the additional occupant have since intervened as plaintiffs in the lawsuit. Intervenors allege the same claims against the Company, Inspections Now, and the Bestview entities and collectively seek damages in excess of $11.0 million for property damage, personal injury (as to the other occupant), wrongful death, and exemplary damages. The Company has answered all petitions, denying the allegations. On June 18, 2020, an alleged stockholder filed a putative derivative complaint, Lincolnshire Police Pension Fund v. Taylor, et al., No. 2020-0487-JTL, in the Delaware Court of Chancery, purportedly on behalf of the Company against certain of the Company’s officers, directors, and stockholders. An amended complaint was filed on September 14, 2022. The Company along with the other defendants filed a motion to dismiss on October 31, 2022. The plaintiffs then filed a second amended complaint on December 22, 2022. On February 6, 2023, the Company, along with the other defendants, filed a motion to dismiss the operative complaint. On December 5, 2023, the Court denied the defendants’ motion to dismiss, and the case has proceeded to discovery. The complaint alleges breaches of fiduciary duties and unjust enrichment. The factual allegations underlying these claims are similar to the factual allegations made in the previously dismissed In re Floor & Decor Holdings, Inc. Securities Litigation, as described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The complaint seeks unspecified damages and restitution for the Company from the individual defendants and the payment of costs and attorneys’ fees. The Company maintains insurance that may cover any liability arising out of the above-referenced litigation up to the policy limits and subject to meeting certain deductibles and to other terms and conditions thereof. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, the Company is currently unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or a range of possible losses resulting from the above-referenced litigation. The Company is also subject to various other legal actions, claims, and proceedings arising in the ordinary course of business, which may include claims related to general liability, workers’ compensation, product liability, intellectual property, and employment-related matters resulting from its business activities. As with most actions such as these, an estimation of any possible and/or ultimate liability cannot always be determined. The Company establishes reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. These various other ordinary course proceedings are not expected to have a material impact on the Company's consolidated financial position, cash flows, or results of operations, however regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. |
Stock-based Compensation
| Stock-based Compensation | 6 Months Ended |
| Jun. 27, 2024 | |
| Share-Based Payment Arrangement [Abstract] | |
| Stock-based Compensation | Stock-based Compensation In accordance with ASC 718, the Company measures compensation cost for all stock-based awards at fair value on the date of grant and recognizes compensation expense, net of forfeitures, using the straight-line method over the requisite service period of awards expected to vest, which for each of the awards is the service vesting period. The table below presents components of stock-based compensation expense within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income: Twenty-six Weeks Ended in thousands June 27, 2024 June 29, 2023 General and administrative $ 13,458 $ 14,212 Selling and store operating 2,129 835 Total stock-based compensation expense $ 15,587 $ 15,047 Stock Options The table below summarizes stock option activity for the twenty-six weeks ended June 27, 2024: Options Weighted Average Exercise Price Outstanding at December 29, 2023 1,607,341 $ 28.51 Exercised (283,357) $ 19.21 Forfeited or expired (2,041) $ 71.17 Outstanding at June 27, 2024 1,321,943 $ 30.43 Vested and exercisable at June 27, 2024 1,306,746 $ 29.68 Restricted Stock Units The Company periodically grants restricted stock units (“RSUs”) that represent an unfunded, unsecured right to receive a share of the Company’s Class A common stock upon vesting. During the twenty-six weeks ended June 27, 2024, the Company granted RSUs to certain employees, executive officers, and non-employee directors comprised of service-based RSUs and performance-based RSUs. Service-based RSUs vest based on the grantee’s continued service through the vesting date. The performance-based RSUs cliff vest based on (i) the Company's achievement of predetermined financial metrics at the end of a three-year performance period and (ii) the grantee’s continued service through the vesting date. Depending on the extent to which the relevant performance goals are achieved, the number of common shares earned upon vesting may range from 0% to 200% of the award granted. The Company assesses the probability of achieving all performance goals on a quarterly basis. The service period for RSUs granted during the period varies by grantee and is one year from the grant date for non-employee directors and ranges between three The following table summarizes restricted stock unit activity during the twenty-six weeks ended June 27, 2024: Restricted Stock Units Service-based Performance-based Total shareholder return Total Restricted Stock Units Unvested at December 29, 2023 608,140 188,543 58,854 855,537 Granted 240,892 50,855 — 291,747 Vested (196,636) — — (196,636) Forfeited (24,403) (13,001) (4,204) (41,608) Unvested at June 27, 2024 627,993 226,397 54,650 909,040 The aggregate fair value for all restricted stock units granted during the twenty-six weeks ended June 27, 2024 was $33.5 million. The grant-date fair value of service-based RSUs and performance-based RSUs is based on the closing market price of the Company’s Class A common stock on the date of grant. Restricted Stock Awards The following table summarizes restricted stock award activity during the twenty-six weeks ended June 27, 2024: Restricted Stock Awards Service-based Performance-based (1) Total shareholder return (1) Total Restricted Stock Awards Unvested at December 29, 2023 34,783 47,662 31,056 113,501 Vested (30,680) (47,662) (31,056) (109,398) Forfeited (395) — — (395) Unvested at June 27, 2024 3,708 — — 3,708 (1) The performance-based and total shareholder return restricted stock awards that vested during the period were issued at 100% of target based on achievement of the predetermined performance and total shareholder return criteria as specified in the underlying grant agreements. |
Earnings Per Share
| Earnings Per Share | 6 Months Ended |
| Jun. 27, 2024 | |
| Earnings Per Share [Abstract] | |
| Earnings Per Share | Earnings Per Share Net Income per Common Share The Company calculates basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding adjusted for the dilutive effect of share-based awards using the treasury stock method. The following table shows the computation of basic and diluted earnings per share for the periods presented: Thirteen Weeks Ended Twenty-six Weeks Ended in thousands, except per share data June 27, 2024 June 29, 2023 June 27, 2024 June 29, 2023 Net income $ 56,666 $ 71,452 $ 106,698 $ 142,976 Basic weighted average shares outstanding 107,046 106,206 106,908 106,084 Dilutive effect of share-based awards 1,228 1,599 1,358 1,680 Diluted weighted average shares outstanding 108,274 107,805 108,266 107,764 Basic earnings per share $ 0.53 $ 0.67 $ 1.00 $ 1.35 Diluted earnings per share $ 0.52 $ 0.66 $ 0.99 $ 1.33 The following potentially dilutive securities were excluded from the computation of diluted earnings per share as a result of their anti-dilutive effect: Thirteen Weeks Ended Twenty-six Weeks Ended in thousands June 27, 2024 June 29, 2023 June 27, 2024 June 29, 2023 Stock options 1 56 2 56 Restricted stock units — 251 — 255 |
Fair Value Measurements
| Fair Value Measurements | 6 Months Ended |
| Jun. 27, 2024 | |
| Fair Value Disclosures [Abstract] | |
| Fair Value Measurements | Fair Value Measurements As of June 27, 2024 and December 28, 2023, the Company had certain financial assets and liabilities on its Condensed Consolidated Balance Sheets that were required to be measured at fair value on a recurring or non-recurring basis. The estimated fair values of financial assets and liabilities such as cash and cash equivalents, receivables, prepaid expenses and other current assets, other assets, accounts payable, and accrued expenses and other current liabilities approximate their respective carrying values as reported within the Condensed Consolidated Balance Sheets. See Note 3, “Debt” for discussion of the fair value of the Company’s debt. Contingent Earn-out Liabilities As of June 27, 2024, the contingent earn-out liabilities had an aggregate estimated fair value of $5.3 million, of which $4.2 million is included in accrued expenses and other current liabilities and $1.1 million is included in other liabilities within the Condensed Consolidated Balance Sheets. The Company’s contingent earn-out liabilities are classified as Level 3 within the fair value hierarchy due to the use of unobservable inputs that are significant to their respective valuations. The table below summarizes changes in contingent earn-out liabilities during the twenty-six weeks ended June 27, 2024: in thousands Contingent Earn-out Liabilities Balance at December 28, 2023 $ 11,137 Fair value adjustments (87) Payments (5,769) Balance at June 27, 2024 $ 5,281 The $0.1 million net decrease in the fair value of contingent earn-out liabilities during the twenty-six weeks ended June 27, 2024 was recognized in general and administrative expense within the Condensed Consolidated Statements of Operations and Comprehensive Income. Interest Rate Cap Contracts Changes in interest rates impact the Company’s results of operations. In an effort to manage exposure to this risk, the Company enters into derivative contracts and may adjust its derivative portfolio as market conditions change. As of June 27, 2024, the Company’s outstanding interest rate cap contract was designated as a cash flow hedge. The contract has a notional value of $150.0 million and effectively caps SOFR based interest payments on a portion of the Company’s Term Loan Facility at 5.50% beginning in May 2024 and will continue until the agreement expires in April 2026. The Company’s two interest cap agreements outstanding at December 28, 2023, each with a notional value of $75.0 million, expired in April 2024. The effective portion of the gain or loss on effective cash flow hedges is reported as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings in the same period in which the hedged transaction affects earnings. The effective portion of the derivative represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized in earnings. The Company’s outstanding interest rate cap contracts as of June 27, 2024 and December 28, 2023 were valued primarily using Level 2 inputs based on data readily observable in public markets. The Company's interest rate cap contracts were negotiated with counterparties without going through a public exchange. Accordingly, the Company's fair value assessments for these derivative contracts gave consideration to the risk of counterparty default as well as the Company's own credit risk. As of June 27, 2024 and December 28, 2023, the total fair value of the Company's interest rate cap contracts was approximately $0.2 million and $1.8 million, respectively, which are presented as a component of AOCI within stockholders’ equity on the Condensed Consolidated Balance Sheets net of tax of $0.1 million and $0.4 million, respectively. During the thirteen weeks ended June 27, 2024 and June 29, 2023, the Company reclassified $0.5 million and $1.2 million, respectively, of interest income from AOCI into earnings related to the interest rate cap contracts. During the twenty-six weeks ended June 27, 2024 and June 29, 2023, the Company reclassified $1.9 million and $2.3 million, respectively, of interest income from AOCI into earnings related to the interest rate cap contracts. |
Supply Chain Finance
| Supply Chain Finance | 6 Months Ended |
| Jun. 27, 2024 | |
| Payables and Accruals [Abstract] | |
| Supply Chain Finance | Supply Chain Finance The Company facilitates supply chain finance programs through financial intermediaries, which provide certain suppliers the option to be paid by the financial intermediaries earlier than the due date on the applicable invoice. When a supplier utilizes one of the supply chain finance programs and receives an early payment from a financial intermediary, it takes a discount on the invoice. The Company then pays the financial intermediary the invoice on the original due date. The Company does not reimburse suppliers for any costs they incur for participation in the program. Supplier participation is voluntary, and there are no assets pledged as security or other forms of guarantees provided for the committed payment to the financial intermediaries. As a result, all amounts owed to the financial intermediaries are presented as trade accounts payable in the Condensed Consolidated Balance Sheets. Amounts due to the financial intermediaries reflected in trade accounts payable |
Pay vs Performance Disclosure
| Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
| Jun. 27, 2024 | Mar. 28, 2024 | Jun. 29, 2023 | Mar. 30, 2023 | Jun. 27, 2024 | Jun. 29, 2023 | |
| Pay vs Performance Disclosure | ||||||
| Net income | $ 56,666 | $ 50,032 | $ 71,452 | $ 71,524 | $ 106,698 | $ 142,976 |
Insider Trading Arrangements
| Insider Trading Arrangements | 3 Months Ended |
| Jun. 27, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
| Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
| Jun. 27, 2024 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Fiscal Year | Fiscal Year The Company’s fiscal year is the 52- or 53-week period ending on the Thursday on or preceding December 31st. The fiscal year ending December 26, 2024 (“fiscal 2024”) and the fiscal year ended December 28, 2023 (“fiscal 2023”) include 52 weeks. 52-week fiscal years consist of thirteen-week periods in each quarter of the fiscal year. When a 53-week fiscal year occurs, the Company reports the additional week at the end of the fiscal fourth quarter. |
| Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. The Condensed Consolidated Balance Sheet as of December 28, 2023 has been derived from the audited Consolidated Balance Sheet for the fiscal year then ended. The interim condensed consolidated financial statements should be read together with the audited consolidated financial statements and related footnote disclosures included in the Company’s Annual Report on Form 10-K for fiscal 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2024 (the “Annual Report”). Management believes the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary for a fair statement of results for the interim periods presented. Results of operations for the thirteen and twenty-six weeks ended June 27, 2024 are not necessarily indicative of the results to be expected for the full year. |
| Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases . In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-01, “Leases (Topic 842), Common Control Arrangements.” The amendments in the ASU applying to public business entities clarifies the accounting for leasehold improvements associated with common control leases, reducing diversity in practice and providing investors with financial information that will better reflect the economics of those transactions. In the first quarter of fiscal 2024, the Company adopted ASU No. 2023-01 on a prospective basis to all new leasehold improvements. The adoption of ASU 2023-01 did not have an impact on the Company’s consolidated financial statements or related disclosures and would only have an impact to the extent that the Company has future common control leases. Supplier Finance Programs. In September 2022, the FASB issued ASU No. 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50).” The ASU requires disclosure of the key terms of outstanding supply chain finance programs and a rollforward of the related amounts due to vendors participating in these programs. In the first quarter of fiscal 2023, the Company adopted the portion of the ASU 2022-04 guidance requiring disclosure of key terms of supply chain finance programs. The portion of the ASU 2022-04 guidance requiring a rollforward of activity within supply chain finance programs will be adopted in the Company’s Annual Report for fiscal 2024 and is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows as the standard only impacts financial statement footnote disclosures. For additional information, refer to Note 9, “Supply Chain Finance.” Recently Issued Accounting Pronouncements Codification Improvements. In March 2024, the FASB issued ASU No. 2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements.” ASU 2024-02 removes references to various FASB Concepts Statements within the Codification. The guidance in ASU No. 2024-02 is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, and can be applied either prospectively to all new transactions recognized on or after the date that the entity first applies the amendments or retrospectively to the beginning of the earliest comparative period presented in which the amendments were first applied. Early adoption is permitted. The adoption of ASU 2024-02 is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. Stock Compensation. In March 2024, the FASB issued ASU No. 2024-01, “Compensation - Stock Compensation (Topic 718).” The amendments in this ASU clarify how an entity determines whether a profits interest or similar award is within the scope of Accounting Standards Codification (“ASC”) 718, Compensation-Stock Compensation (“ASC 718”), by adding illustrative guidance. The guidance in ASU No. 2024-01 is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, and can be applied either retrospectively to all prior periods presented in the consolidated financial statements or prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies the amendments. Early adoption is permitted. The adoption of ASU 2024-01 is not expected to have any impact on the Company’s consolidated financial statements or related disclosures. The Company expects that ASU 2024-01 would only be applicable to the Company to the extent that it issues profits interests or similar awards. Income Taxes. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740).” The amendments in this ASU improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. Additionally, this ASU improves the effectiveness and comparability of disclosures by adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with SEC Regulation S-X 210.4-08(h) and by removing disclosures that no longer are considered cost beneficial or relevant. This guidance in ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption of the standard is permitted. The adoption of ASU 2023-09 is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. Segment Reporting. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU expands disclosure of reportable segments by requiring more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how the Chief Operating Decision Maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The guidance in ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. This guidance should be applied retrospectively to all prior periods presented in the consolidated financial statements. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-07 on the Company’s consolidated financial statements and related disclosures. Presentation and Disclosure Requirements . In October 2023, the FASB issued ASU No. 2023-06, “Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” The ASU amends the disclosure or presentation requirements related to various subtopics in the FASB ASC. The ASU was issued in response to the SEC’s August 2018 final amendments in Release No. 33-10532, Disclosure Update and Simplification , that updated and simplified disclosure requirements that the SEC believed were duplicative, overlapping, or outdated. The guidance in ASU 2023-06 is intended to align GAAP requirements with those of the SEC and to facilitate the application of GAAP for all entities. The amendments introduced by ASU 2023-06 are effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. If, by June 30, 2027, the SEC has not removed the applicable requirements from its existing regulations, the pending content of the associated amendment will be removed from the ASC and will not become effective for any entities. Early adoption is permitted. The adoption of ASU 2023-06 is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. |
Revenue (Tables)
| Revenue (Tables) | 6 Months Ended |
| Jun. 27, 2024 | |
| Revenue from Contract with Customer [Abstract] | |
| Schedule of Disaggregated Revenue | 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. |
Debt (Tables)
| Debt (Tables) | 6 Months Ended |
| Jun. 27, 2024 | |
| Debt Disclosure [Abstract] | |
| Schedule of Long Term Debt | The following table summarizes the Company’s long-term debt as of June 27, 2024 and December 28, 2023: in thousands Maturity Date Interest Rate Per Annum at June 27, 2024 (1) June 27, 2024 December 28, 2023 Credit Facilities: Term Loan Facility February 14, 2027 7.33% Variable $ 201,345 $ 202,396 Asset-based Loan Facility (“ABL Facility”) August 4, 2027 6.60% Variable — — Total secured debt at par value 201,345 202,396 Less: current maturities 2,103 2,103 Long-term debt maturities 199,242 200,293 Less: unamortized discount and debt issuance costs 4,509 5,354 Total long-term debt $ 194,733 $ 194,939 (1) The applicable interest rate for the Term Loan Facility as presented herein does not include the effect of interest rate cap agreements. Refer to Note 8, “Fair Value Measurements” for additional details related to the Company’s interest rate cap agreements. |
| Schedule of Maturities of Debt | The following table summarizes scheduled maturities of the Company’s debt as of June 27, 2024: in thousands Amount Twenty-six weeks ending December 26, 2024 $ 1,052 2025 2,103 2026 2,629 2027 195,561 Total minimum debt payments $ 201,345 |
| Schedule of Components of Interest Expense | Components of interest expense are as follows for the periods presented: Thirteen Weeks Ended Twenty-six Weeks Ended in thousands June 27, 2024 June 29, 2023 June 27, 2024 June 29, 2023 Total interest expense, net of interest income (1) $ 3,002 $ 4,581 $ 6,804 $ 10,767 Less: interest capitalized 2,339 1,683 4,186 3,007 Interest expense, net $ 663 $ 2,898 $ 2,618 $ 7,760 (1) Total interest expense, net of interest income includes interest income related to the Company’s interest rate cap agreements totaling $0.5 million and $1.2 million for the thirteen weeks ended June 27, 2024 and June 29, 2023, respectively, and $1.9 million and $2.3 million for the twenty-six weeks ended June 27, 2024 and June 29, 2023, respectively. Refer to Note 8, “Fair Value Measurements” for additional details related to the Company’s interest rate cap agreements. |
| Schedule of Fair Value of Debt | The estimated fair value and classification within the fair value hierarchy of the Term Loan Facility was as follows as of June 27, 2024 and December 28, 2023: in thousands Fair Value Hierarchy Classification June 27, 2024 December 28, 2023 Term Loan Facility Level 3 $ 200,841 $ 201,637 |
Commitments and Contingencies (
| Commitments and Contingencies (Tables) | 6 Months Ended |
| Jun. 27, 2024 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Schedule of Components of Lease Expense | The table below presents components of lease expense for operating leases. Thirteen Weeks Ended Twenty-six Weeks Ended in thousands Classification June 27, 2024 June 29, 2023 June 27, 2024 June 29, 2023 Fixed operating lease cost: Selling and store operating $ 43,840 $ 38,529 $ 86,575 $ 76,673 Cost of sales 6,461 5,213 12,913 11,471 Pre-opening 4,151 3,906 7,214 6,972 General and administrative 1,031 1,030 2,060 2,102 Total fixed operating lease cost $ 55,483 $ 48,678 $ 108,762 $ 97,218 Variable lease cost (1): Selling and store operating $ 17,999 $ 15,282 $ 36,091 $ 29,768 Cost of sales 1,067 1,039 2,350 2,158 Pre-opening 162 12 335 143 General and administrative 578 316 1,157 619 Total variable lease cost $ 19,806 $ 16,649 $ 39,933 $ 32,688 Sublease income Cost of sales (680) (681) (1,362) (1,360) Total operating lease cost (2) $ 74,609 $ 64,646 $ 147,333 $ 128,546 (1) Includes variable costs for common area maintenance, property taxes, and insurance on leased real estate. (2) Excludes short-term lease costs, which were immaterial for the thirteen and twenty-six weeks ended June 27, 2024 and June 29, 2023. |
| Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of June 27, 2024 were as follows: in thousands Amount Twenty-six weeks ending December 26, 2024 $ 100,824 2025 219,589 2026 206,727 2027 195,791 2028 175,773 Thereafter 1,268,792 Total minimum lease payments (1) (2) 2,167,496 Less: amount of lease payments representing interest 672,586 Present value of future minimum lease payments 1,494,910 Less: current obligations under leases 132,770 Long-term lease obligations $ 1,362,140 (1) Future lease payments exclude approximately $451.1 million of legally binding minimum lease payments for operating leases signed but not yet commenced. (2) Operating lease payments include $255.0 million related to options to extend lease terms that are reasonably certain of being exercised. |
Stock-based Compensation (Table
| Stock-based Compensation (Tables) | 6 Months Ended |
| Jun. 27, 2024 | |
| Share-Based Payment Arrangement [Abstract] | |
| Schedule of Stock-Based Compensation Expense | The table below presents components of stock-based compensation expense within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income: Twenty-six Weeks Ended in thousands June 27, 2024 June 29, 2023 General and administrative $ 13,458 $ 14,212 Selling and store operating 2,129 835 Total stock-based compensation expense $ 15,587 $ 15,047 |
| Stock Option Activity | The table below summarizes stock option activity for the twenty-six weeks ended June 27, 2024: Options Weighted Average Exercise Price Outstanding at December 29, 2023 1,607,341 $ 28.51 Exercised (283,357) $ 19.21 Forfeited or expired (2,041) $ 71.17 Outstanding at June 27, 2024 1,321,943 $ 30.43 Vested and exercisable at June 27, 2024 1,306,746 $ 29.68 |
| Restricted Stock Unit Activity | The following table summarizes restricted stock unit activity during the twenty-six weeks ended June 27, 2024: Restricted Stock Units Service-based Performance-based Total shareholder return Total Restricted Stock Units Unvested at December 29, 2023 608,140 188,543 58,854 855,537 Granted 240,892 50,855 — 291,747 Vested (196,636) — — (196,636) Forfeited (24,403) (13,001) (4,204) (41,608) Unvested at June 27, 2024 627,993 226,397 54,650 909,040 |
| Restricted Stock Award Activity | The following table summarizes restricted stock award activity during the twenty-six weeks ended June 27, 2024: Restricted Stock Awards Service-based Performance-based (1) Total shareholder return (1) Total Restricted Stock Awards Unvested at December 29, 2023 34,783 47,662 31,056 113,501 Vested (30,680) (47,662) (31,056) (109,398) Forfeited (395) — — (395) Unvested at June 27, 2024 3,708 — — 3,708 (1) The performance-based and total shareholder return restricted stock awards that vested during the period were issued at 100% of target based on achievement of the predetermined performance and total shareholder return criteria as specified in the underlying grant agreements. |
Earnings Per Share (Tables)
| Earnings Per Share (Tables) | 6 Months Ended |
| Jun. 27, 2024 | |
| Earnings Per Share [Abstract] | |
| Schedule of Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share for the periods presented: Thirteen Weeks Ended Twenty-six Weeks Ended in thousands, except per share data June 27, 2024 June 29, 2023 June 27, 2024 June 29, 2023 Net income $ 56,666 $ 71,452 $ 106,698 $ 142,976 Basic weighted average shares outstanding 107,046 106,206 106,908 106,084 Dilutive effect of share-based awards 1,228 1,599 1,358 1,680 Diluted weighted average shares outstanding 108,274 107,805 108,266 107,764 Basic earnings per share $ 0.53 $ 0.67 $ 1.00 $ 1.35 Diluted earnings per share $ 0.52 $ 0.66 $ 0.99 $ 1.33 |
| Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Earnings Per Share | The following potentially dilutive securities were excluded from the computation of diluted earnings per share as a result of their anti-dilutive effect: Thirteen Weeks Ended Twenty-six Weeks Ended in thousands June 27, 2024 June 29, 2023 June 27, 2024 June 29, 2023 Stock options 1 56 2 56 Restricted stock units — 251 — 255 |
Fair Value Measurements (Tables
| Fair Value Measurements (Tables) | 6 Months Ended |
| Jun. 27, 2024 | |
| Fair Value Disclosures [Abstract] | |
| Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below summarizes changes in contingent earn-out liabilities during the twenty-six weeks ended June 27, 2024: in thousands Contingent Earn-out Liabilities Balance at December 28, 2023 $ 11,137 Fair value adjustments (87) Payments (5,769) Balance at June 27, 2024 $ 5,281 |
Basis of Presentation and Sum_3
| Basis of Presentation and Summary of Significant Accounting Policies (Details) ft² in Thousands | 6 Months Ended |
| Jun. 27, 2024 ft² state distributionCenter segment store designStudio | |
| Real Estate Properties [Line Items] | |
| Number of reportable segments | segment | 1 |
| Number of states with facilities | state | 36 |
| Number of distribution centers | distributionCenter | 4 |
| Warehouse-format stores | |
| Real Estate Properties [Line Items] | |
| Number of stores (facilities) | store | 230 |
| Area of facility (in square feet) | ft² | 78 |
| Design Studio | |
| Real Estate Properties [Line Items] | |
| Number of stores (facilities) | designStudio | 5 |
Revenue - Narrative (Details)
| Revenue - Narrative (Details) $ in Thousands | 6 Months Ended | |
| Jun. 27, 2024 USD ($) segment | Dec. 28, 2023 USD ($) | |
| Revenue from Contract with Customer [Abstract] | ||
| Contract liabilities | $ 73,300 | $ 69,600 |
| Loyalty program liabilities | 50,500 | 45,600 |
| Deferred revenue | 13,322 | 11,277 |
| Unredeemed gift cards | 9,500 | $ 12,700 |
| Contract liabilities, revenue recognized | $ 15,500 | |
| Number of reportable segments | segment | 1 |
Revenue - Schedule of Disaggreg
| Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 27, 2024 | Jun. 29, 2023 | Jun. 27, 2024 | Jun. 29, 2023 | |
| Disaggregation of Revenue [Line Items] | ||||
| Net Sales | $ 1,133,139 | $ 1,135,899 | $ 2,230,428 | $ 2,257,951 |
| Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||||
| Disaggregation of Revenue [Line Items] | ||||
| % of Net Sales | 100% | 100% | 100% | 100% |
| Laminate and vinyl | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net Sales | $ 271,995 | $ 299,349 | $ 537,388 | $ 598,727 |
| Laminate and vinyl | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||||
| Disaggregation of Revenue [Line Items] | ||||
| % of Net Sales | 24% | 26% | 24% | 27% |
| Tile | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net Sales | $ 262,430 | $ 271,263 | $ 518,816 | $ 535,848 |
| Tile | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||||
| Disaggregation of Revenue [Line Items] | ||||
| % of Net Sales | 23% | 24% | 23% | 24% |
| Installation materials and tools | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net Sales | $ 232,409 | $ 208,448 | $ 451,896 | $ 410,517 |
| Installation materials and tools | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||||
| Disaggregation of Revenue [Line Items] | ||||
| % of Net Sales | 21% | 18% | 20% | 18% |
| Decorative accessories and wall tile | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net Sales | $ 195,516 | $ 190,779 | $ 389,384 | $ 389,357 |
| Decorative accessories and wall tile | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||||
| Disaggregation of Revenue [Line Items] | ||||
| % of Net Sales | 17% | 17% | 18% | 17% |
| Wood | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net Sales | $ 66,390 | $ 64,340 | $ 134,130 | $ 126,562 |
| Wood | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||||
| Disaggregation of Revenue [Line Items] | ||||
| % of Net Sales | 6% | 6% | 6% | 6% |
| Natural stone | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net Sales | $ 53,431 | $ 53,885 | $ 103,423 | $ 108,910 |
| Natural stone | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||||
| Disaggregation of Revenue [Line Items] | ||||
| % of Net Sales | 5% | 5% | 5% | 5% |
| Adjacent categories | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net Sales | $ 25,053 | $ 20,013 | $ 48,111 | $ 40,025 |
| Adjacent categories | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||||
| Disaggregation of Revenue [Line Items] | ||||
| % of Net Sales | 2% | 2% | 2% | 1% |
| Other | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net Sales | $ 25,915 | $ 27,822 | $ 47,280 | $ 48,005 |
| Other | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||||
| Disaggregation of Revenue [Line Items] | ||||
| % of Net Sales | 2% | 2% | 2% | 2% |
Debt - Schedule of Long Term De
| Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Jun. 27, 2024 | Dec. 28, 2023 |
| Debt Instrument [Line Items] | ||
| Total debt | $ 201,345 | $ 202,396 |
| Less: current maturities | 2,103 | 2,103 |
| Long-term debt maturities | 199,242 | 200,293 |
| Less: unamortized discount and debt issuance costs | 4,509 | 5,354 |
| Total long-term debt | $ 194,733 | 194,939 |
| Term Loan Facility | ||
| Debt Instrument [Line Items] | ||
| Interest rate per annum | 7.33% | |
| Total debt | $ 201,345 | 202,396 |
| Asset-based Loan Facility (“ABL Facility”) | Revolving Credit Facility | Line of Credit | ||
| Debt Instrument [Line Items] | ||
| Interest rate per annum | 6.60% | |
| Total debt | $ 0 | $ 0 |
Debt - Schedule of Maturities o
| Debt - Schedule of Maturities of Debt (Details) - USD ($) $ in Thousands | Jun. 27, 2024 | Dec. 28, 2023 |
| Debt Disclosure [Abstract] | ||
| Twenty-six weeks ending December 26, 2024 | $ 1,052 | |
| 2025 | 2,103 | |
| 2026 | 2,629 | |
| 2027 | 195,561 | |
| Total debt | $ 201,345 | $ 202,396 |
Debt - Schedule of Components o
| Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 27, 2024 | Jun. 29, 2023 | Jun. 27, 2024 | Jun. 29, 2023 | |
| Debt Instrument [Line Items] | ||||
| Total interest expense, net of interest income | $ 3,002 | $ 4,581 | $ 6,804 | $ 10,767 |
| Less: interest capitalized | 2,339 | 1,683 | 4,186 | 3,007 |
| Interest expense, net | 663 | 2,898 | 2,618 | 7,760 |
| Interest Rate Cap | ||||
| Debt Instrument [Line Items] | ||||
| Interest cost net of interest income | $ 500 | $ 1,200 | $ 1,900 | $ 2,300 |
Debt - Term Loan Facility (Deta
| Debt - Term Loan Facility (Details) - Credit Agreement | 6 Months Ended |
| Jun. 27, 2024 | |
| Fed Funds Effective Rate Overnight Index Swap Rate | |
| Debt Instrument [Line Items] | |
| Basis spread on variable rate | 0.50% |
| SOFR | |
| Debt Instrument [Line Items] | |
| Basis spread on variable rate | 1% |
| Interest rate floor | 0% |
| SOFR | Minimum | |
| Debt Instrument [Line Items] | |
| Basis spread on variable rate | 2% |
| SOFR | Maximum | |
| Debt Instrument [Line Items] | |
| Basis spread on variable rate | 2.25% |
| Base rate | Minimum | |
| Debt Instrument [Line Items] | |
| Basis spread on variable rate | 1% |
| Base rate | Maximum | |
| Debt Instrument [Line Items] | |
| Basis spread on variable rate | 1.25% |
Debt - ABL Facility (Details)
| Debt - ABL Facility (Details) - Revolving Credit Facility | Jun. 27, 2024 USD ($) |
| Asset-based Loan Facility (“ABL Facility”) | |
| Line of Credit Facility [Line Items] | |
| Borrowing capacity | $ 800,000,000 |
| Eligible net trade receivables (as a percent) | 85% |
| Eligible letter of credit (as a percent) | 100% |
| Line of credit facility, accordion feature, increase limit | $ 200,000,000 |
| Available borrowing capacity | 634,000,000 |
| Letter of Credit | |
| Line of Credit Facility [Line Items] | |
| Borrowing capacity | 50,000,000 |
| Outstanding letters of credit | $ 35,300,000 |
Debt - Covenants (Details)
| Debt - Covenants (Details) | Jun. 27, 2024 |
| Asset-based Loan Facility (“ABL Facility”) | Revolving Credit Facility | |
| Debt Instrument [Line Items] | |
| Percentage usage of facility to trigger covenant | 90% |
Debt - Fair Value of Debt (Deta
| Debt - Fair Value of Debt (Details) - USD ($) $ in Thousands | Jun. 27, 2024 | Dec. 28, 2023 |
| Term Loan Facility | Level 3 | ||
| Debt Instrument [Line Items] | ||
| Term Loan Facility | $ 200,841 | $ 201,637 |
Income Taxes (Details)
| Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
| Jun. 27, 2024 | Jun. 29, 2023 | Jun. 27, 2024 | Jun. 29, 2023 | |
| Income Tax Disclosure [Abstract] | ||||
| Effective income tax rate | 19.80% | 22.40% | 16.70% | 21.80% |
Commitments and Contingencies -
| Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |||
| Jun. 27, 2024 | Nov. 15, 2021 | Jun. 27, 2024 | Jun. 29, 2023 | |
| Lessee, Lease, Description [Line Items] | ||||
| Weighted average discount rate | 5.80% | 5.80% | 5.60% | |
| Weighted average remaining lease term | 12 years | 12 years | 12 years | |
| Cash paid for operating leases | $ 103.5 | $ 93.6 | ||
| Nguyen v. Inspections Now, Inc., No. 21-DCV-287142 | Pending Litigation | Damages from Product Defects | ||||
| Lessee, Lease, Description [Line Items] | ||||
| Loss contingency, damages (in excess) | $ 11 | $ 1 | ||
| Minimum | ||||
| Lessee, Lease, Description [Line Items] | ||||
| Lease term (in years) | 10 years | 10 years | ||
| Maximum | ||||
| Lessee, Lease, Description [Line Items] | ||||
| Lease term (in years) | 20 years | 20 years | ||
Commitments and Contingencies_2
| Commitments and Contingencies - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 27, 2024 | Jun. 29, 2023 | Jun. 27, 2024 | Jun. 29, 2023 | |
| Lease, Cost | ||||
| Total fixed operating lease cost | $ 55,483 | $ 48,678 | $ 108,762 | $ 97,218 |
| Total variable lease cost | 19,806 | 16,649 | 39,933 | 32,688 |
| Sublease income | (680) | (681) | (1,362) | (1,360) |
| Total operating lease cost | 74,609 | 64,646 | 147,333 | 128,546 |
| Selling and store operating | ||||
| Lease, Cost | ||||
| Total fixed operating lease cost | 43,840 | 38,529 | 86,575 | 76,673 |
| Total variable lease cost | 17,999 | 15,282 | 36,091 | 29,768 |
| Cost of sales | ||||
| Lease, Cost | ||||
| Total fixed operating lease cost | 6,461 | 5,213 | 12,913 | 11,471 |
| Total variable lease cost | 1,067 | 1,039 | 2,350 | 2,158 |
| Pre-opening | ||||
| Lease, Cost | ||||
| Total fixed operating lease cost | 4,151 | 3,906 | 7,214 | 6,972 |
| Total variable lease cost | 162 | 12 | 335 | 143 |
| General and administrative | ||||
| Lease, Cost | ||||
| Total fixed operating lease cost | 1,031 | 1,030 | 2,060 | 2,102 |
| Total variable lease cost | $ 578 | $ 316 | $ 1,157 | $ 619 |
Commitments and Contingencies_3
| Commitments and Contingencies - Lease Maturity (Details) - USD ($) $ in Thousands | Jun. 27, 2024 | Dec. 28, 2023 |
| Commitments and Contingencies Disclosure [Abstract] | ||
| Twenty-six weeks ending December 26, 2024 | $ 100,824 | |
| 2025 | 219,589 | |
| 2026 | 206,727 | |
| 2027 | 195,791 | |
| 2028 | 175,773 | |
| Thereafter | 1,268,792 | |
| Total minimum lease payments | 2,167,496 | |
| Less: amount of lease payments representing interest | 672,586 | |
| Present value of future minimum lease payments | 1,494,910 | |
| Less: current obligations under leases | 132,770 | $ 126,428 |
| Long-term lease obligations | 1,362,140 | $ 1,301,754 |
| Legally binding minimum lease payments for operating leases signed but not yet commenced | 451,100 | |
| Minimum lease payments for options to extend lease terms | $ 255,000 |
Stock-Based Compensation - Comp
| Stock-Based Compensation - Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 6 Months Ended | |
| Jun. 27, 2024 | Jun. 29, 2023 | |
| Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
| Total stock-based compensation expense | $ 15,587 | $ 15,047 |
| General and administrative | ||
| Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
| Total stock-based compensation expense | 13,458 | 14,212 |
| Selling and store operating | ||
| Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
| Total stock-based compensation expense | $ 2,129 | $ 835 |
Stock-Based Compensation - Stoc
| Stock-Based Compensation - Stock Option Activity (Details) - $ / shares | 6 Months Ended |
| Jun. 27, 2024 | |
| Options | |
| Outstanding at beginning of period (in shares) | 1,607,341 |
| Exercised (in shares) | (283,357) |
| Forfeited or expired (in shares) | (2,041) |
| Outstanding at the end of period (in shares) | 1,321,943 |
| Vested and exercisable, Options (in shares) | 1,306,746 |
| Weighted Average Exercise Price | |
| Outstanding at the beginning of period (in dollars per share) | $ 28.51 |
| Exercised (in dollars per share) | 19.21 |
| Forfeited or expired (in dollars per share) | 71.17 |
| Outstanding at the end of period (in dollars per share) | 30.43 |
| Vested and exercisable, Weighted Average Exercise Price (in dollars per share) | $ 29.68 |
Stock-Based Compensation - Narr
| Stock-Based Compensation - Narrative (Details) $ in Millions | 6 Months Ended |
| Jun. 27, 2024 USD ($) | |
| Performance-based | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Vesting period (in years) | 3 years |
| Performance-based | Minimum | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Vesting rights (as a percent) | 0% |
| Performance-based | Maximum | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Vesting rights (as a percent) | 200% |
| Restricted stock units | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Aggregate grant date fair value | $ 33.5 |
| Restricted stock units | Non Employee Directors | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Vesting period (in years) | 1 year |
| Restricted stock units | Minimum | Employees And Executive Officers | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Vesting period (in years) | 3 years |
| Restricted stock units | Maximum | Employees And Executive Officers | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Vesting period (in years) | 4 years |
Stock-Based Compensation - Rest
| Stock-Based Compensation - Restricted Stock Unit Activity (Details) | 6 Months Ended |
| Jun. 27, 2024 shares | |
| Total Restricted Stock Units | |
| Number of Awards | |
| Beginning balance (in shares) | 855,537 |
| Granted (in shares) | 291,747 |
| Vested (in shares) | (196,636) |
| Forfeited (in shares) | (41,608) |
| Ending balance (in shares) | 909,040 |
| Service-based | |
| Number of Awards | |
| Beginning balance (in shares) | 608,140 |
| Granted (in shares) | 240,892 |
| Vested (in shares) | (196,636) |
| Forfeited (in shares) | (24,403) |
| Ending balance (in shares) | 627,993 |
| Performance-based | |
| Number of Awards | |
| Beginning balance (in shares) | 188,543 |
| Granted (in shares) | 50,855 |
| Vested (in shares) | 0 |
| Forfeited (in shares) | (13,001) |
| Ending balance (in shares) | 226,397 |
| Total shareholder return | |
| Number of Awards | |
| Beginning balance (in shares) | 58,854 |
| Granted (in shares) | 0 |
| Vested (in shares) | 0 |
| Forfeited (in shares) | (4,204) |
| Ending balance (in shares) | 54,650 |
Stock-Based Compensation - Re_2
| Stock-Based Compensation - Restricted Stock Award Activity (Details) | 6 Months Ended |
| Jun. 27, 2024 shares | |
| Total Restricted Stock Awards | |
| Restricted Stock Awards | |
| Beginning balance (in shares) | 113,501 |
| Vested (in shares) | (109,398) |
| Forfeited (in shares) | (395) |
| Ending balance (in shares) | 3,708 |
| Service-based | |
| Restricted Stock Awards | |
| Beginning balance (in shares) | 34,783 |
| Vested (in shares) | (30,680) |
| Forfeited (in shares) | (395) |
| Ending balance (in shares) | 3,708 |
| Performance-based | |
| Restricted Stock Awards | |
| Beginning balance (in shares) | 47,662 |
| Vested (in shares) | (47,662) |
| Forfeited (in shares) | 0 |
| Ending balance (in shares) | 0 |
| Total shareholder return | |
| Restricted Stock Awards | |
| Beginning balance (in shares) | 31,056 |
| Vested (in shares) | (31,056) |
| Forfeited (in shares) | 0 |
| Ending balance (in shares) | 0 |
| Performance Based And Total Shareholder Return Restricted Stock Awards | |
| Restricted Stock Awards | |
| Vesting rights (as a percent) | 100% |
Earnings Per Share - Schedule o
| Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
| Jun. 27, 2024 | Mar. 28, 2024 | Jun. 29, 2023 | Mar. 30, 2023 | Jun. 27, 2024 | Jun. 29, 2023 | |
| Earnings Per Share [Abstract] | ||||||
| Net income | $ 56,666 | $ 50,032 | $ 71,452 | $ 71,524 | $ 106,698 | $ 142,976 |
| Basic weighted average shares outstanding (in shares) | 107,046 | 106,206 | 106,908 | 106,084 | ||
| Dilutive effect of share-based awards (in shares) | 1,228 | 1,599 | 1,358 | 1,680 | ||
| Diluted weighted average shares outstanding (in shares) | 108,274 | 107,805 | 108,266 | 107,764 | ||
| Basic earnings per share (in dollars per share) | $ 0.53 | $ 0.67 | $ 1 | $ 1.35 | ||
| Diluted earnings per share (in dollars per share) | $ 0.52 | $ 0.66 | $ 0.99 | $ 1.33 | ||
Earnings Per Share - Schedule_2
| Earnings Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 27, 2024 | Jun. 29, 2023 | Jun. 27, 2024 | Jun. 29, 2023 | |
| Stock options | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Anti-dilutive shares excluded from the computation of diluted earnings (in shares) | 1 | 56 | 2 | 56 |
| Restricted stock units | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Anti-dilutive shares excluded from the computation of diluted earnings (in shares) | 0 | 251 | 0 | 255 |
Fair Value Measurements - Narra
| Fair Value Measurements - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
| Jun. 27, 2024 USD ($) | Dec. 28, 2023 USD ($) agreement | Jun. 27, 2024 USD ($) | Jun. 29, 2023 USD ($) | Jun. 27, 2024 USD ($) | Jun. 29, 2023 USD ($) | |
| Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Other comprehensive income (loss), tax | $ 100 | $ 400 | ||||
| Interest Rate Cap | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Interest cost net of interest income | $ 500 | $ 1,200 | $ 1,900 | $ 2,300 | ||
| Interest Rate Cap | Term Loan Facility | Designated as Hedging Instrument | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Derivative, notional amount | $ 150,000 | $ 150,000 | $ 150,000 | |||
| Derivative, cap interest rate | 5.50% | 5.50% | 5.50% | |||
| Number of agreements | agreement | 2 | |||||
| Interest Rate Cap One | Term Loan Facility | Designated as Hedging Instrument | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Derivative, notional amount | $ 75,000 | |||||
| Interest Rate Cap Two | Term Loan Facility | Designated as Hedging Instrument | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Derivative, notional amount | 75,000 | |||||
| Contingent Earn-out Liabilities | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Fair value adjustments | $ (87) | |||||
| Level 3 | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Contingent consideration liability | $ 5,300 | $ 5,300 | 5,300 | |||
| Level 3 | Accrued Expenses And Other Current Liabilities | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Contingent consideration liability | 4,200 | 4,200 | 4,200 | |||
| Level 3 | Other Liabilities | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Contingent consideration liability | 1,100 | 1,100 | 1,100 | |||
| Level 2 | Fair Value, Recurring | Interest Rate Cap | ||||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
| Derivative asset, fair value | $ 200 | $ 1,800 | $ 200 | $ 200 | ||
Fair Value Measurements - Summa
| Fair Value Measurements - Summarizes Changes In Contingent Earn-Out Liabilities (Details) - Contingent Earn-out Liabilities $ in Thousands | 6 Months Ended |
| Jun. 27, 2024 USD ($) | |
| Contingent Earn-out Liabilities | |
| Beginning balance | $ 11,137 |
| Fair value adjustments | (87) |
| Payments | (5,769) |
| Ending balance | $ 5,281 |
Supply Chain Finance (Details)
| Supply Chain Finance (Details) - USD ($) $ in Millions | Jun. 27, 2024 | Dec. 28, 2023 |
| Payables and Accruals [Abstract] | ||
| Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Trade accounts payable | |
| Supplier finance program obligation | $ 140.3 | $ 114 |