Floor & Decor (FND) 10-Q2 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 28, 2023	Oct. 30, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 28, 2023
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		106,569,892
Entity Central Index Key	0001507079
Amendment Flag	false
Current Fiscal Year End Date	--12-28
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 28, 2023	Dec. 29, 2022
Current assets:
Cash and cash equivalents	$ 61,628	$ 9,794
Income taxes receivable	16,157	7,325
Receivables, net	97,733	94,732
Inventories, net	1,105,450	1,292,336
Prepaid expenses and other current assets	55,134	53,298
Total current assets	1,336,102	1,457,485
Fixed assets, net	1,562,616	1,258,056
Right-of-use assets	1,306,475	1,205,636
Intangible assets, net	154,786	152,353
Goodwill	257,940	255,473
Deferred income tax assets, net	12,446	11,265
Other assets	7,717	10,974
Total long-term assets	3,301,980	2,893,757
Total assets	4,638,082	4,351,242
Current liabilities:
Current portion of term loan	2,103	2,103
Current portion of lease liabilities	125,348	105,693
Trade accounts payable	706,325	590,883
Accrued expenses and other current liabilities	327,224	298,019
Deferred revenue	13,383	10,060
Total current liabilities	1,174,383	1,006,758
Term loan	195,042	195,351
Revolving line of credit	0	210,200
Lease liabilities	1,325,226	1,227,507
Deferred income tax liabilities, net	46,917	41,520
Other liabilities	11,038	12,730
Total long-term liabilities	1,578,223	1,687,308
Total liabilities	2,752,606	2,694,066
Commitments and contingencies (Note 5)
Capital stock:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at September 28, 2023 and December 29, 2022	0	0
Additional paid-in capital	503,594	482,312
Accumulated other comprehensive income, net	2,455	4,337
Retained earnings	1,379,320	1,170,421
Total stockholders’ equity	1,885,476	1,657,176
Total liabilities and stockholders’ equity	4,638,082	4,351,242
Class A Common Stock
Capital stock:
Common stock	107	106
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	Sep. 28, 2023	Dec. 29, 2022
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)	106,569,892	106,150,661
Common stock, shares outstanding (in shares)	106,569,892	106,150,661
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		9 Months Ended
	Sep. 28, 2023	Sep. 29, 2022	Sep. 28, 2023	Sep. 29, 2022
Income Statement [Abstract]
Net sales	$ 1,107,812	$ 1,097,824	$ 3,365,763	$ 3,216,404
Cost of sales	640,357	650,349	1,949,557	1,924,589
Gross profit	467,455	447,475	1,416,206	1,291,815
Operating expenses:
Selling and store operating	308,581	280,735	923,658	798,437
General and administrative	59,870	54,697	185,060	162,449
Pre-opening	14,232	10,386	32,226	28,890
Total operating expenses	382,683	345,818	1,140,944	989,776
Operating income	84,772	101,657	275,262	302,039
Interest expense, net	1,246	3,032	9,006	5,866
Income before income taxes	83,526	98,625	266,256	296,173
Income tax expense	17,603	22,450	57,357	67,215
Net income	65,923	76,175	208,899	228,958
Change in fair value of hedge instruments, net of tax	(907)	1,513	(1,882)	3,889
Total comprehensive income	$ 65,016	$ 77,688	$ 207,017	$ 232,847
Basic earnings per share (in dollars per share)	$ 0.62	$ 0.72	$ 1.97	$ 2.17
Diluted earnings per share (in dollars per share)	$ 0.61	$ 0.71	$ 1.94	$ 2.13

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	Retained Earnings
Beginning balance (in shares) at Dec. 30, 2021			105,761,000
Beginning balance at Dec. 30, 2021	$ 1,323,199		$ 106	$ 450,332	$ 535	$ 872,226
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	5,980			5,980
Exercise of stock options (in shares)			32,000
Exercise of stock options	577			577
Issuance of common stock upon vesting of restricted stock units (in shares)			47,000
Shares issued under employee stock purchase plan (in shares)			21,000
Shares issued under employee stock purchase plan	1,963			1,963
Common stock redeemed for tax liability (in shares)			(19,000)
Common stock redeemed for tax liability	(1,807)			(1,807)
Other comprehensive (loss) gain, net of tax	1,554				1,554
Net income	70,951					70,951
Ending balance (in shares) at Mar. 31, 2022			105,842,000
Ending balance at Mar. 31, 2022	1,402,417		$ 106	457,045	2,089	943,177
Beginning balance (in shares) at Dec. 30, 2021			105,761,000
Beginning balance at Dec. 30, 2021	1,323,199		$ 106	450,332	535	872,226
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive (loss) gain, net of tax	3,889
Net income	228,958
Ending balance (in shares) at Sep. 29, 2022			106,117,000
Ending balance at Sep. 29, 2022	1,582,619		$ 106	476,905	4,424	1,101,184
Beginning balance (in shares) at Mar. 31, 2022			105,842,000
Beginning balance at Mar. 31, 2022	1,402,417		$ 106	457,045	2,089	943,177
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	4,889			4,889
Exercise of stock options (in shares)			209,000
Exercise of stock options	4,599			4,599
Forfeiture of restricted stock awards (in shares)			(59,000)
Issuance of common stock upon vesting of restricted stock units (in shares)			5,000
Common stock redeemed for tax liability (in shares)			(4,000)
Common stock redeemed for tax liability	(273)			(273)
Other comprehensive (loss) gain, net of tax	822				822
Net income	81,832					81,832
Ending balance (in shares) at Jun. 30, 2022			105,993,000
Ending balance at Jun. 30, 2022	1,494,286		$ 106	466,260	2,911	1,025,009
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	6,360			6,360
Exercise of stock options (in shares)			81,000
Exercise of stock options	1,924		$ 0	1,924
Issuance of common stock upon vesting of restricted stock units (in shares)			2,000
Shares issued under employee stock purchase plan (in shares)			41,000
Shares issued under employee stock purchase plan	2,416			2,416
Common stock redeemed for tax liability	(55)			(55)
Other comprehensive (loss) gain, net of tax	1,513				1,513
Net income	76,175					76,175
Ending balance (in shares) at Sep. 29, 2022			106,117,000
Ending balance at Sep. 29, 2022	1,582,619		$ 106	476,905	4,424	1,101,184
Beginning balance (in shares) at Dec. 29, 2022		106,150,661	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) gain, 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		106,150,661	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]
Exercise of stock options (in shares)	336,061
Other comprehensive (loss) gain, net of tax	$ (1,882)
Net income	208,899
Ending balance (in shares) at Sep. 28, 2023		106,569,892	106,570,000
Ending balance at Sep. 28, 2023	1,885,476		$ 107	503,594	2,455	1,379,320
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) gain, 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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	5,289			5,289
Exercise of stock options (in shares)			134,000
Exercise of stock options	3,051		$ 1	3,050
Issuance of common stock upon vesting of restricted stock units (in shares)			7,000
Shares issued under employee stock purchase plan (in shares)			41,000
Shares issued under employee stock purchase plan	2,601			2,601
Common stock redeemed for tax liability (in shares)			(3,000)
Common stock redeemed for tax liability	(260)			(260)
Other comprehensive (loss) gain, net of tax	(907)				(907)
Net income	65,923					65,923
Ending balance (in shares) at Sep. 28, 2023		106,569,892	106,570,000
Ending balance at Sep. 28, 2023	$ 1,885,476		$ 107	$ 503,594	$ 2,455	$ 1,379,320

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2023	Sep. 29, 2022
Operating activities
Net income	$ 208,899	$ 228,958
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	146,947	112,691
Stock-based compensation expense	20,336	17,229
Deferred income taxes	4,953	1,747
Change in fair value of contingent earn-out liabilities	2,329	1,530
Loss on asset impairments and disposals, net	858	0
Interest cap derivative contracts	85	85
Changes in operating assets and liabilities, net of effects of acquisitions:
Receivables, net	2,931	(21,014)
Inventories, net	195,590	(312,288)
Trade accounts payable	109,338	(25,761)
Accrued expenses and other current liabilities	2,950	27,796
Income taxes	(8,912)	(6,360)
Deferred revenue	3,323	1,415
Other, net	9,348	(18,703)
Net cash provided by operating activities	698,975	7,325
Investing activities
Purchases of fixed assets	(413,717)	(322,825)
Acquisitions, net of cash acquired	(17,353)	(1,121)
Proceeds from sales of property	0	4,773
Net cash used in investing activities	(431,070)	(319,173)
Financing activities
Payments on term loan	(1,577)	(1,577)
Borrowings on revolving line of credit	518,900	663,200
Payments on revolving line of credit	(729,100)	(486,800)
Payments of contingent earn-out liabilities	(5,241)	(2,571)
Proceeds from exercise of stock options	7,909	7,100
Proceeds from employee stock purchase plan	5,159	4,379
Debt issuance costs	0	(1,505)
Tax payments for stock-based compensation awards	(12,121)	(2,135)
Net cash (used in) provided by financing activities	(216,071)	180,091
Net increase (decrease) in cash and cash equivalents	51,834	(131,757)
Cash and cash equivalents, beginning of the period	9,794	139,444
Cash and cash equivalents, end of the period	61,628	7,687
Supplemental disclosures of cash flow information
Buildings and equipment acquired under operating leases	192,906	148,665
Cash paid for interest, net of capitalized interest	8,871	3,437
Cash paid for income taxes, net of refunds	62,105	71,800
Fixed assets accrued at the end of the period	$ 150,111	$ 118,453

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 28, 2023
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 multi-channel specialty retailer and commercial flooring distributor. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate, 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”), 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 September 28, 2023, the Company, through its wholly owned subsidiary, Floor and Decor Outlets of America, Inc. (“Outlets”), operates 207 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. 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 28, 2023 (“fiscal 2023”) and the fiscal year ended December 29, 2022 (“fiscal 2022”) 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, we report 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 29, 2022 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 2022, filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2023 (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 thirty-nine weeks ended September 28, 2023 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 Supplier Finance Programs. In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The adoption of ASU 2022-04 did not affect the Company’s financial position, results of operations, or cash flows as the standard only impacts financial statement footnote disclosures. The guidance is effective in the first quarter of fiscal 2023, except for a rollforward of activity within supply chain finance programs, which is effective beginning in fiscal 2024. For additional information, refer to Note 9, “Supply Chain Finance.” Business Combinations. In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The ASU addresses diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The Company adopted ASU No, 2021-08 in the first quarter of 2023 on a prospective basis. The adoption of ASU No. 2021-08 did not have a material impact on the Company’s consolidated financial statements or related disclosures and is only applicable to the extent that the Company has future business combinations. Recently Issued Accounting Pronouncements 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 Accounting Standards Codification (“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. Leases . In March 2023, the FASB issued 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. This guidance in ASU No. 2023-01 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and can be applied prospectively to all new leasehold improvements, prospectively to all new and existing leasehold improvements, or retrospectively to the beginning of the period in which the entity first applied Topic 842. Early adoption of the standard is permitted, including adoption in an interim period. The adoption of ASU 2023-01 is not expected to have an impact on the Company’s consolidated financial statements or related disclosures and would only be applicable to the extent that the Company has future common control leases.

Revenue

Revenue	9 Months Ended
Revenue	Sep. 28, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Net sales consist of revenue associated with contracts with customers for the sale of goods and services in amounts that reflect the consideration the Company is entitled to receive in exchange for those goods and services. Deferred Revenue & Contract Liabilities In accordance with ASC 606, Revenue from Contracts with Customers , the Company recognizes revenue when the customer obtains control of the inventory. Amounts in deferred revenue at period-end reflect orders for which the inventory was not yet ready for physical transfer to customers. Contract liabilities within the Condensed Consolidated Balance Sheets as of September 28, 2023 and December 29, 2022 primarily consisted of deferred revenue as well as amounts in accrued expenses and other current liabilities related to the Pro Premier Rewards loyalty program and unredeemed gift cards. As of September 28, 2023, contract liabilities totaled $70.2 million and included $43.1 million of loyalty program liabilities, $13.7 million of unredeemed gift cards, and $13.4 million of deferred revenue. As of December 29, 2022, contract liabilities totaled $57.0 million and included $33.8 million of loyalty program liabilities, $13.1 million of unredeemed gift cards, and $10.1 million of deferred revenue. Of the contract liabilities outstanding as of December 29, 2022, approximately $16.7 million was recognized in revenue during the thirty-nine weeks ended September 28, 2023. Disaggregated Revenue The Company has one reportable segment. The following table presents the net sales of each major product category (in thousands): Thirteen Weeks Ended September 28, 2023 September 29, 2022 Product Category Net Sales % of Net Sales Net Sales % of Net Sales Laminate and vinyl $ 287,631 26 % $ 314,502 29 % Tile 258,148 23 246,336 22 Installation materials and tools 211,732 19 183,495 17 Decorative accessories and wall tile 183,657 17 187,369 17 Wood 66,646 6 69,691 6 Natural stone 51,655 5 52,670 5 Adjacent categories 21,789 2 17,338 2 Other (1) 26,554 2 26,423 2 Total $ 1,107,812 100 % $ 1,097,824 100 % Thirty-nine Weeks Ended September 28, 2023 September 29, 2022 Product Category Net Sales % of Net Sales Net Sales % of Net Sales Laminate and vinyl $ 886,358 26 % $ 896,347 28 % Tile 793,995 24 725,242 22 Installation materials and tools 622,249 18 529,659 16 Decorative accessories and wall tile 573,014 17 569,370 18 Wood 193,207 6 213,126 7 Natural stone 160,565 5 161,374 5 Adjacent categories 61,814 2 51,363 2 Other (1) 74,561 2 69,923 2 Total $ 3,365,763 100 % $ 3,216,404 100 % (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	9 Months Ended
Debt	Sep. 28, 2023
Debt Disclosure [Abstract]
Debt	Debt The following table summarizes the Company’s long-term debt as of September 28, 2023 and December 29, 2022: in thousands Maturity Date Interest Rate Per Annum at September 28, 2023 (1) September 28, 2023 December 29, 2022 Credit Facilities: Term Loan Facility February 14, 2027 7.33% Variable $ 202,922 $ 204,499 Asset-based Loan Facility (“ABL Facility”) August 4, 2027 6.57% Variable — 210,200 Total secured debt at par value 202,922 414,699 Less: current maturities 2,103 2,103 Long-term debt maturities 200,819 412,596 Less: unamortized discount and debt issuance costs 5,777 7,045 Total long-term debt $ 195,042 $ 405,551 (1) The applicable interest rate for the Term Loan Facility as presented herein does not include the effect of interest rate cap agreements. 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 following table summarizes scheduled maturities of the Company’s debt as of September 28, 2023: in thousands Amount Thirteen weeks ending December 28, 2023 $ 526 2024 2,103 2025 2,103 2026 2,629 2027 195,561 Total minimum debt payments $ 202,922 Components of interest expense are as follows for the periods presented: Thirteen Weeks Ended Thirty-nine Weeks Ended in thousands September 28, 2023 September 29, 2022 September 28, 2023 September 29, 2022 Total interest costs, net of interest income $ 3,255 $ 4,092 $ 14,022 $ 8,617 Less: interest capitalized 2,009 1,060 5,016 2,751 Interest expense, net $ 1,246 $ 3,032 $ 9,006 $ 5,866 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 September 28, 2023, 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 September 28, 2023, net availability under the ABL Facility was $697.3 million as reduced by letters of credit of $32.6 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 The estimated fair values and classifications within the fair value hierarchy of the Term Loan Facility and the ABL Facility were as follows as of September 28, 2023 and December 29, 2022: in thousands Fair Value Hierarchy Classification September 28, 2023 December 29, 2022 Term Loan Facility Level 3 $ 201,524 $ 196,575 ABL Facility Level 2 — 210,200 Total $ 201,524 $ 406,775 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. The carrying amount of borrowings under the ABL Facility approximates fair value as the ABL Facility variable interest rates are based on prevailing market rates, which are a Level 2 input.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 28, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesEffective tax rates for the thirteen and thirty-nine weeks ended September 28, 2023 and September 29, 2022 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 21.1% and 22.8% for the thirteen weeks ended September 28, 2023 and September 29, 2022, respectively, and 21.5% and 22.7% for the thirty-nine weeks ended September 28, 2023 and September 29, 2022, respectively. For the thirteen and thirty-nine weeks ended September 28, 2023 and September 29, 2022, 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	9 Months Ended
Commitments and Contingencies	Sep. 28, 2023
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. In addition, the Company 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 September 28, 2023 and September 29, 2022, the Company’s weighted average discount rate was 5.7% and 5.3%, respectively. As of September 28, 2023 and September 29, 2022, the weighted average remaining lease term of the Company’s leases was approximately 12 years and 11 years, respectively. Lease Costs The table below presents components of lease expense for operating leases. Thirteen Weeks Ended Thirty-nine Weeks Ended in thousands Classification September 28, 2023 September 29, 2022 September 28, 2023 September 29, 2022 Fixed operating lease cost: Selling and store operating $ 39,575 $ 33,991 $ 116,248 $ 103,035 Cost of sales 6,385 6,354 17,856 19,178 Pre-opening 4,244 2,558 11,216 7,542 General and administrative 1,029 1,136 3,131 3,407 Total fixed operating lease cost $ 51,233 $ 44,039 $ 148,451 $ 133,162 Variable lease cost (1): Selling and store operating $ 14,601 $ 13,524 $ 44,369 $ 38,450 Cost of sales 1,149 1,231 3,307 3,886 Pre-opening 185 114 328 354 General and administrative 408 194 1,027 598 Total variable lease cost $ 16,343 $ 15,063 $ 49,031 $ 43,288 Sublease income Cost of sales (681) (681) (2,041) (2,041) Total operating lease cost (2) $ 66,895 $ 58,421 $ 195,441 $ 174,409 (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 thirty-nine weeks ended September 28, 2023 and September 29, 2022. Undiscounted Cash Flows Future minimum lease payments under non-cancelable operating leases as of September 28, 2023 were as follows: in thousands Amount Thirteen weeks ending December 28, 2023 $ 42,334 2024 210,612 2025 200,864 2026 188,072 2027 178,914 Thereafter 1,277,883 Total minimum lease payments (1) (2) 2,098,679 Less: amount of lease payments representing interest 648,105 Present value of future minimum lease payments 1,450,574 Less: current obligations under leases 125,348 Long-term lease obligations $ 1,325,226 (1) Future lease payments exclude approximately $477.0 million of legally binding minimum lease payments for operating leases signed but not yet commenced. (2) Operating lease payments include $242.3 million related to options to extend lease terms that are reasonably certain of being exercised. For the thirty-nine weeks ended September 28, 2023 and September 29, 2022, cash paid for amounts included in the measurement of operating lease liabilities was $141.7 million and $131.3 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 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, and is seeking dismissal of the lawsuit in favor of a first-filed lawsuit against other defendants (but arising from the same fire) pending in Harris County, Texas. The trial court denied the Company’s motion seeking dismissal on February 23, 2023, and on August 29, 2023, the Court of Appeals for the First Judicial District of Texas (in No. 01-23-00225-CV) denied the Company’s petition for a writ of mandamus challenging the trial court’s ruling. On October 10, 2023, the Company filed a petition seeking mandamus relief from the trial court’s ruling in the Supreme Court of Texas, No. 23-0845. That petition remains pending. 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. 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	9 Months Ended
Stock-based Compensation	Sep. 28, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	Stock-based Compensation In accordance with ASC 718, Compensation-Stock Compensation , 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: Thirty-nine Weeks Ended in thousands September 28, 2023 September 29, 2022 General and administrative $ 18,927 $ 16,911 Selling and store operating 1,409 318 Total stock-based compensation expense $ 20,336 $ 17,229 Stock Options The table below summarizes stock option activity for the thirty-nine weeks ended September 28, 2023. Options Weighted Average Exercise Price Outstanding at December 30, 2022 2,101,559 $ 27.10 Exercised (336,061) $ 23.53 Forfeited or expired (3,983) $ 48.97 Outstanding at September 28, 2023 1,761,515 $ 27.73 Vested and exercisable at September 28, 2023 1,669,036 $ 25.39 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 thirty-nine weeks ended September 28, 2023, the Company granted RSUs to certain employees, officers, and non-employee directors comprised of service-based RSUs, performance-based RSUs, and total shareholder return (“TSR”) awards. 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 performance-based RSU grant and the extent to which the relevant performance goals are achieved, the number of common shares earned upon vesting may range from either 0% to 150% or 0% to 200% of the award granted. The TSR awards cliff vest based on (i) the Company's relative TSR compared to a specified peer group and (ii) the grantee's continued service through the vesting date. The number of common shares earned upon vesting of the TSR awards may range from 0% to 150% of the TSR awards granted with no vesting above the target awards amount if the Company’s three-year absolute TSR is negative. The Company assesses the probability of achieving all performance goals on a quarterly basis. The service periods for RSUs granted during the period varies by grantee and ranges between approximately two The following table summarizes restricted stock unit activity during the thirty-nine weeks ended September 28, 2023: Restricted Stock Units Service-based Performance-based Total shareholder return Total Restricted Stock Units Unvested at December 30, 2022 408,829 36,117 — 444,946 Granted 374,685 188,543 58,854 622,082 Vested (132,432) — — (132,432) Forfeited (24,262) (36,117) — (60,379) Unvested at September 28, 2023 626,820 188,543 58,854 874,217 The aggregate fair value for all restricted stock units granted during the thirty-nine weeks ended September 28, 2023 was $56.3 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. The grant-date fair value of TSR awards is estimated using a Monte Carlo valuation method, which included the following assumptions for TSR awards granted during the period: Thirty-nine Weeks Ended Expected term (in years) 2.8 Risk-free interest rate 4.5 % Expected volatility 49.5 % Dividend yield — % Restricted Stock Awards The following table summarizes restricted stock award activity during the thirty-nine weeks ended September 28, 2023: Restricted Stock Awards Service-based Performance-based (1) Total shareholder return (1) Total Restricted Stock Awards Unvested at December 30, 2022 103,326 134,318 87,517 325,161 Vested (68,334) (86,656) (56,461) (211,451) Unvested at September 28, 2023 34,992 47,662 31,056 113,710 (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	9 Months Ended
Earnings Per Share	Sep. 28, 2023
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: Thirteen Weeks Ended Thirty-nine Weeks Ended in thousands, except per share data September 28, 2023 September 29, 2022 September 28, 2023 September 29, 2022 Net income $ 65,923 $ 76,175 $ 208,899 $ 228,958 Basic weighted average shares outstanding 106,393 105,754 106,187 105,565 Dilutive effect of share-based awards 1,609 1,716 1,663 1,879 Diluted weighted average shares outstanding 108,002 107,470 107,850 107,444 Basic earnings per share $ 0.62 $ 0.72 $ 1.97 $ 2.17 Diluted earnings per share $ 0.61 $ 0.71 $ 1.94 $ 2.13 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 Thirty-nine Weeks Ended in thousands September 28, 2023 September 29, 2022 September 28, 2023 September 29, 2022 Stock options 56 71 56 70 Restricted stock — 12 — — Restricted stock units 8 301 14 229

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 28, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsAs of September 28, 2023 and December 29, 2022, 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 September 28, 2023, the contingent earn-out liabilities had an aggregate estimated fair value of $10.9 million (classified as Level 3 within the fair value hierarchy), of which $5.6 million is included in accrued expenses and other current liabilities and $5.3 million is included in other liabilities within the Condensed Consolidated Balance Sheets. The table below summarizes changes in contingent earn-out liabilities during the thirty-nine weeks ended September 28, 2023. in thousands Contingent Earn-out Liabilities Balance at December 29, 2022 $ 11,019 Acquisition (1) 2,750 Fair value adjustments 2,329 Payments (5,241) Balance at September 28, 2023 $ 10,857 (1) During the thirty-nine weeks ended September 28, 2023, the Company acquired a commercial flooring and installation supplies distributor for total consideration of $20.1 million, including $17.4 million of cash and contingent earn-out consideration with an estimated fair value of $2.8 million. The estimated fair value of the contingent earn-out consideration was determined using a discounted cash flow model which included significant unobservable inputs related to projected revenue and gross margin. Payout of the contingent consideration is subject to the acquired company’s achievement of certain annual gross margin and gross profit targets in fiscal years 2023 through 2025. A portion of these earn-out opportunities is payable each year only to the extent the applicable performance targets for that year are met, with a maximum potential payout of $4.0 million requiring that each of the individual annual targets are achieved. Refer to Note 10, “Acquisition” for additional information. The $2.3 million net increase in the fair value of contingent earn-out liabilities during the thirty-nine weeks ended September 28, 2023 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. The Company has outstanding interest rate cap contracts that are designated as cash flow hedges. 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 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 September 28, 2023 and December 29, 2022, the total fair value of the Company's interest rate cap contracts was approximately $3.2 million and $5.9 million, respectively, which are presented as a component of AOCI within stockholders’ equity on the Condensed Consolidated Balance Sheets net of tax of $0.7 million and $1.4 million, respectively. During the thirteen and thirty-nine weeks ended September 28, 2023, the Company reclassified $1.4 million and $3.7 million, respectively, of interest income from AOCI into earnings related to the interest rate cap contracts. During the thirteen and thirty-nine weeks ended September 29, 2022, $0.2 million of interest income was reclassified from AOCI into earnings.

Supply Chain Finance

Supply Chain Finance	9 Months Ended
Supply Chain Finance	Sep. 28, 2023
Payables and Accruals [Abstract]
Supply Chain Finance	Supply Chain FinanceThe 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 at September 28, 2023 and December 29, 2022 were $135.7 million and $82.5 million, respectively.

Acquisition

Acquisition	9 Months Ended
Acquisition	Sep. 28, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisition	Acquisition As part of the Company’s continued expansion into commercial flooring, the Company acquired commercial flooring and installation supplies distributor Salesmaster Associates, Inc. (“Salesmaster”) on June 7, 2023 (“acquisition date”). Total estimated consideration for the acquisition was $20.1 million, including $17.4 million of cash and contingent consideration with an estimated fair value of $2.8 million (refer to Note 8, “Fair Value Measurements” for additional information regarding the contingent consideration). The acquisition was accounted for in accordance with ASC 805, Business Combinations , and, accordingly, Salesmaster’s results of operations, financial position, and cash flows have been consolidated in the Company’s condensed consolidated financial statements since the date of acquisition. Net sales and net earnings for fiscal 2023 attributable to Salesmaster since the completion of the acquisition were immaterial. Results of operations would not be materially different as a result of the acquisition and therefore pro forma information is not presented. Acquisition-related costs totaling $0.9 million were expensed as incurred and recognized within general and administrative expenses within the Condensed Consolidated Statements of Operations and Comprehensive Income during the thirty-nine weeks ended September 28, 2023. No acquisition-related costs were incurred during the thirteen weeks ended September 28, 2023. In accordance with ASC 805, the Company provisionally recorded the following assets and liabilities at their preliminary estimated acquisition date fair values: $12.1 million of net working capital consisting primarily of inventory and receivables, $6.0 million of lease right-of-use assets and fixed assets, $5.0 million of customer relationships, $2.5 million of goodwill, and $5.5 million of operating lease liabilities. The preliminary fair value of the customer relationships was determined with assistance from a third-party valuation specialist using the multi-period excess earnings method and included significant assumptions such as the amount and timing of projected cash flows, growth rates, customer attrition rates, and discount rates, resulting in a Level 3 classification within the fair value hierarchy. The customer relationships will be amortized over an estimated useful life of 12 years. The goodwill arising from the acquisition is primarily attributable to operational synergies and acceleration of growth strategies. The goodwill and intangible assets from the Salesmaster acquisition are fully deductible for U.S. federal and state tax purposes.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 28, 2023	Jun. 29, 2023	Mar. 30, 2023	Sep. 29, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 28, 2023	Sep. 29, 2022
Pay vs Performance Disclosure
Net income	$ 65,923	$ 71,452	$ 71,524	$ 76,175	$ 81,832	$ 70,951	$ 208,899	$ 228,958

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
Insider Trading Arrangements	Sep. 28, 2023 shares	Sep. 28, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Tom Taylor [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 17, 2023, Tom Taylor, Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 100,000 shares of the Company’s common stock, subject to certain conditions. The plan will expire on February 16, 2024, or on any earlier date on which all of the shares have been sold.
Name	Tom Taylor
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 17, 2023
Arrangement Duration	183 days
Aggregate Available	100,000	100,000
David Christopherson [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 18, 2023, David Christopherson, Executive Vice President, General Counsel, and Secretary, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 25,565 shares of the Company’s common stock, subject to certain conditions. The plan will expire on February 26, 2024, or on any earlier date on which all of the shares have been sold.
Name	David Christopherson
Title	Executive Vice President, General Counsel, and Secretary
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 18, 2023
Arrangement Duration	192 days
Aggregate Available	25,565	25,565

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 28, 2023
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 28, 2023 (“fiscal 2023”) and the fiscal year ended December 29, 2022 (“fiscal 2022”) 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, we report 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 29, 2022 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 2022, filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2023 (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 thirty-nine weeks ended September 28, 2023 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 Supplier Finance Programs. In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The adoption of ASU 2022-04 did not affect the Company’s financial position, results of operations, or cash flows as the standard only impacts financial statement footnote disclosures. The guidance is effective in the first quarter of fiscal 2023, except for a rollforward of activity within supply chain finance programs, which is effective beginning in fiscal 2024. For additional information, refer to Note 9, “Supply Chain Finance.” Business Combinations. In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The ASU addresses diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The Company adopted ASU No, 2021-08 in the first quarter of 2023 on a prospective basis. The adoption of ASU No. 2021-08 did not have a material impact on the Company’s consolidated financial statements or related disclosures and is only applicable to the extent that the Company has future business combinations. Recently Issued Accounting Pronouncements 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 Accounting Standards Codification (“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. Leases . In March 2023, the FASB issued 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. This guidance in ASU No. 2023-01 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and can be applied prospectively to all new leasehold improvements, prospectively to all new and existing leasehold improvements, or retrospectively to the beginning of the period in which the entity first applied Topic 842. Early adoption of the standard is permitted, including adoption in an interim period. The adoption of ASU 2023-01 is not expected to have an impact on the Company’s consolidated financial statements or related disclosures and would only be applicable to the extent that the Company has future common control leases.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
Revenue (Tables)	Sep. 28, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregated Revenue	The following table presents the net sales of each major product category (in thousands): Thirteen Weeks Ended September 28, 2023 September 29, 2022 Product Category Net Sales % of Net Sales Net Sales % of Net Sales Laminate and vinyl $ 287,631 26 % $ 314,502 29 % Tile 258,148 23 246,336 22 Installation materials and tools 211,732 19 183,495 17 Decorative accessories and wall tile 183,657 17 187,369 17 Wood 66,646 6 69,691 6 Natural stone 51,655 5 52,670 5 Adjacent categories 21,789 2 17,338 2 Other (1) 26,554 2 26,423 2 Total $ 1,107,812 100 % $ 1,097,824 100 % Thirty-nine Weeks Ended September 28, 2023 September 29, 2022 Product Category Net Sales % of Net Sales Net Sales % of Net Sales Laminate and vinyl $ 886,358 26 % $ 896,347 28 % Tile 793,995 24 725,242 22 Installation materials and tools 622,249 18 529,659 16 Decorative accessories and wall tile 573,014 17 569,370 18 Wood 193,207 6 213,126 7 Natural stone 160,565 5 161,374 5 Adjacent categories 61,814 2 51,363 2 Other (1) 74,561 2 69,923 2 Total $ 3,365,763 100 % $ 3,216,404 100 % (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)	9 Months Ended
Debt (Tables)	Sep. 28, 2023
Debt Disclosure [Abstract]
Schedule of Long Term Debt	The following table summarizes the Company’s long-term debt as of September 28, 2023 and December 29, 2022: in thousands Maturity Date Interest Rate Per Annum at September 28, 2023 (1) September 28, 2023 December 29, 2022 Credit Facilities: Term Loan Facility February 14, 2027 7.33% Variable $ 202,922 $ 204,499 Asset-based Loan Facility (“ABL Facility”) August 4, 2027 6.57% Variable — 210,200 Total secured debt at par value 202,922 414,699 Less: current maturities 2,103 2,103 Long-term debt maturities 200,819 412,596 Less: unamortized discount and debt issuance costs 5,777 7,045 Total long-term debt $ 195,042 $ 405,551 (1) The applicable interest rate for the Term Loan Facility as presented herein does not include the effect of interest rate cap agreements.
Schedule of Maturities of Debt	The following table summarizes scheduled maturities of the Company’s debt as of September 28, 2023: in thousands Amount Thirteen weeks ending December 28, 2023 $ 526 2024 2,103 2025 2,103 2026 2,629 2027 195,561 Total minimum debt payments $ 202,922
Schedule of Components of Interest Expense	Components of interest expense are as follows for the periods presented: Thirteen Weeks Ended Thirty-nine Weeks Ended in thousands September 28, 2023 September 29, 2022 September 28, 2023 September 29, 2022 Total interest costs, net of interest income $ 3,255 $ 4,092 $ 14,022 $ 8,617 Less: interest capitalized 2,009 1,060 5,016 2,751 Interest expense, net $ 1,246 $ 3,032 $ 9,006 $ 5,866
Schedule of Fair Value of Debt	The estimated fair values and classifications within the fair value hierarchy of the Term Loan Facility and the ABL Facility were as follows as of September 28, 2023 and December 29, 2022: in thousands Fair Value Hierarchy Classification September 28, 2023 December 29, 2022 Term Loan Facility Level 3 $ 201,524 $ 196,575 ABL Facility Level 2 — 210,200 Total $ 201,524 $ 406,775

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
Commitments and Contingencies (Tables)	Sep. 28, 2023
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 Thirty-nine Weeks Ended in thousands Classification September 28, 2023 September 29, 2022 September 28, 2023 September 29, 2022 Fixed operating lease cost: Selling and store operating $ 39,575 $ 33,991 $ 116,248 $ 103,035 Cost of sales 6,385 6,354 17,856 19,178 Pre-opening 4,244 2,558 11,216 7,542 General and administrative 1,029 1,136 3,131 3,407 Total fixed operating lease cost $ 51,233 $ 44,039 $ 148,451 $ 133,162 Variable lease cost (1): Selling and store operating $ 14,601 $ 13,524 $ 44,369 $ 38,450 Cost of sales 1,149 1,231 3,307 3,886 Pre-opening 185 114 328 354 General and administrative 408 194 1,027 598 Total variable lease cost $ 16,343 $ 15,063 $ 49,031 $ 43,288 Sublease income Cost of sales (681) (681) (2,041) (2,041) Total operating lease cost (2) $ 66,895 $ 58,421 $ 195,441 $ 174,409 (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 thirty-nine weeks ended September 28, 2023 and September 29, 2022.
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases	Future minimum lease payments under non-cancelable operating leases as of September 28, 2023 were as follows: in thousands Amount Thirteen weeks ending December 28, 2023 $ 42,334 2024 210,612 2025 200,864 2026 188,072 2027 178,914 Thereafter 1,277,883 Total minimum lease payments (1) (2) 2,098,679 Less: amount of lease payments representing interest 648,105 Present value of future minimum lease payments 1,450,574 Less: current obligations under leases 125,348 Long-term lease obligations $ 1,325,226 (1) Future lease payments exclude approximately $477.0 million of legally binding minimum lease payments for operating leases signed but not yet commenced. (2) Operating lease payments include $242.3 million related to options to extend lease terms that are reasonably certain of being exercised.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
Stock-based Compensation (Tables)	Sep. 28, 2023
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: Thirty-nine Weeks Ended in thousands September 28, 2023 September 29, 2022 General and administrative $ 18,927 $ 16,911 Selling and store operating 1,409 318 Total stock-based compensation expense $ 20,336 $ 17,229
Stock Option Activity	The table below summarizes stock option activity for the thirty-nine weeks ended September 28, 2023. Options Weighted Average Exercise Price Outstanding at December 30, 2022 2,101,559 $ 27.10 Exercised (336,061) $ 23.53 Forfeited or expired (3,983) $ 48.97 Outstanding at September 28, 2023 1,761,515 $ 27.73 Vested and exercisable at September 28, 2023 1,669,036 $ 25.39
Restricted Stock Unit Activity	The following table summarizes restricted stock unit activity during the thirty-nine weeks ended September 28, 2023: Restricted Stock Units Service-based Performance-based Total shareholder return Total Restricted Stock Units Unvested at December 30, 2022 408,829 36,117 — 444,946 Granted 374,685 188,543 58,854 622,082 Vested (132,432) — — (132,432) Forfeited (24,262) (36,117) — (60,379) Unvested at September 28, 2023 626,820 188,543 58,854 874,217
Schedule of Valuation Assumptions	The grant-date fair value of TSR awards is estimated using a Monte Carlo valuation method, which included the following assumptions for TSR awards granted during the period: Thirty-nine Weeks Ended Expected term (in years) 2.8 Risk-free interest rate 4.5 % Expected volatility 49.5 % Dividend yield — %
Restricted Stock Award Activity	The following table summarizes restricted stock award activity during the thirty-nine weeks ended September 28, 2023: Restricted Stock Awards Service-based Performance-based (1) Total shareholder return (1) Total Restricted Stock Awards Unvested at December 30, 2022 103,326 134,318 87,517 325,161 Vested (68,334) (86,656) (56,461) (211,451) Unvested at September 28, 2023 34,992 47,662 31,056 113,710 (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)	9 Months Ended
Earnings Per Share (Tables)	Sep. 28, 2023
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: Thirteen Weeks Ended Thirty-nine Weeks Ended in thousands, except per share data September 28, 2023 September 29, 2022 September 28, 2023 September 29, 2022 Net income $ 65,923 $ 76,175 $ 208,899 $ 228,958 Basic weighted average shares outstanding 106,393 105,754 106,187 105,565 Dilutive effect of share-based awards 1,609 1,716 1,663 1,879 Diluted weighted average shares outstanding 108,002 107,470 107,850 107,444 Basic earnings per share $ 0.62 $ 0.72 $ 1.97 $ 2.17 Diluted earnings per share $ 0.61 $ 0.71 $ 1.94 $ 2.13
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 Thirty-nine Weeks Ended in thousands September 28, 2023 September 29, 2022 September 28, 2023 September 29, 2022 Stock options 56 71 56 70 Restricted stock — 12 — — Restricted stock units 8 301 14 229

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 28, 2023
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 thirty-nine weeks ended September 28, 2023. in thousands Contingent Earn-out Liabilities Balance at December 29, 2022 $ 11,019 Acquisition (1) 2,750 Fair value adjustments 2,329 Payments (5,241) Balance at September 28, 2023 $ 10,857 (1) During the thirty-nine weeks ended September 28, 2023, the Company acquired a commercial flooring and installation supplies distributor for total consideration of $20.1 million, including $17.4 million of cash and contingent earn-out consideration with an estimated fair value of $2.8 million. The estimated fair value of the contingent earn-out consideration was determined using a discounted cash flow model which included significant unobservable inputs related to projected revenue and gross margin. Payout of the contingent consideration is subject to the acquired company’s achievement of certain annual gross margin and gross profit targets in fiscal years 2023 through 2025. A portion of these earn-out opportunities is payable each year only to the extent the applicable performance targets for that year are met, with a maximum potential payout of $4.0 million requiring that each of the individual annual targets are achieved. Refer to Note 10, “Acquisition” for additional information.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details) ft² in Thousands	9 Months Ended
	Sep. 28, 2023 ft² designStudio segment state distributionCenter store
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	207
Area of facility (in square feet) \| ft²	78
Small-format standalone design studios
Real Estate Properties [Line Items]
Number of stores (facilities) \| designStudio	5

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Thousands	9 Months Ended
Revenue - Narrative (Details) $ in Thousands	Sep. 28, 2023 USD ($) segment	Dec. 29, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Contract liabilities	$ 70,200	$ 57,000
Deferred revenue	13,383	10,060
Loyalty program liabilities	43,100	33,800
Unredeemed gift cards	13,700	$ 13,100
Contract liabilities, revenue recognized	$ 16,700
Number of reportable segments \| segment	1

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2023	Sep. 29, 2022	Sep. 28, 2023	Sep. 29, 2022
Disaggregation of Revenue [Line Items]
Net Sales	$ 1,107,812	$ 1,097,824	$ 3,365,763	$ 3,216,404
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	$ 287,631	$ 314,502	$ 886,358	$ 896,347
Laminate and vinyl \| Revenue from Contract with Customer, Product and Service Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
% of Net Sales	26%	29%	26%	28%
Tile
Disaggregation of Revenue [Line Items]
Net Sales	$ 258,148	$ 246,336	$ 793,995	$ 725,242
Tile \| Revenue from Contract with Customer, Product and Service Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
% of Net Sales	23%	22%	24%	22%
Installation materials and tools
Disaggregation of Revenue [Line Items]
Net Sales	$ 211,732	$ 183,495	$ 622,249	$ 529,659
Installation materials and tools \| Revenue from Contract with Customer, Product and Service Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
% of Net Sales	19%	17%	18%	16%
Decorative accessories and wall tile
Disaggregation of Revenue [Line Items]
Net Sales	$ 183,657	$ 187,369	$ 573,014	$ 569,370
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%	17%	18%
Wood
Disaggregation of Revenue [Line Items]
Net Sales	$ 66,646	$ 69,691	$ 193,207	$ 213,126
Wood \| Revenue from Contract with Customer, Product and Service Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
% of Net Sales	6%	6%	6%	7%
Natural stone
Disaggregation of Revenue [Line Items]
Net Sales	$ 51,655	$ 52,670	$ 160,565	$ 161,374
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	$ 21,789	$ 17,338	$ 61,814	$ 51,363
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%	2%
Other
Disaggregation of Revenue [Line Items]
Net Sales	$ 26,554	$ 26,423	$ 74,561	$ 69,923
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	Sep. 28, 2023	Dec. 29, 2022
Debt Instrument [Line Items]
Total debt	$ 202,922	$ 414,699
Less: current maturities	2,103	2,103
Long-term debt maturities	200,819	412,596
Less: unamortized discount and debt issuance costs	5,777	7,045
Total long-term debt	$ 195,042	405,551
Term Loan Facility
Debt Instrument [Line Items]
Interest rate per annum	7.33%
Total debt	$ 202,922	204,499
Asset-based Loan Facility (“ABL Facility”) \| Revolving Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Interest rate per annum	6.57%
Total debt	$ 0	$ 210,200

Debt - Schedule of Maturities o

Debt - Schedule of Maturities of Debt (Details) $ in Thousands	Sep. 28, 2023 USD ($)
Debt Disclosure [Abstract]
Thirteen weeks ending December 28, 2023	$ 526
2024	2,103
2025	2,103
2026	2,629
2027	195,561
Total secured debt at par value	$ 202,922

Debt - Schedule of Components o

Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2023	Sep. 29, 2022	Sep. 28, 2023	Sep. 29, 2022
Debt Disclosure [Abstract]
Total interest costs, net of interest income	$ 3,255	$ 4,092	$ 14,022	$ 8,617
Less: interest capitalized	2,009	1,060	5,016	2,751
Interest expense, net	$ 1,246	$ 3,032	$ 9,006	$ 5,866

Debt - Term Loan Facility (Deta

Debt - Term Loan Facility (Details) - Credit Agreement	Nov. 15, 2022
Fed Funds Effective Rate Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1%
Interest rate floor	0%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	2%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| 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) - USD ($)	Sep. 28, 2023	Dec. 29, 2022
Line of Credit Facility [Line Items]
Long-term debt	$ 202,922,000	$ 414,699,000
Asset-based Loan Facility (“ABL Facility”)
Line of Credit Facility [Line Items]
Outstanding letters of credit	$ 32,600,000
Asset-based Loan Facility (“ABL Facility”) \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Eligible net trade receivables (as a percent)	85%
Eligible letter of credit (as a percent)	100%
Available borrowing capacity	$ 697,300,000
Asset-based Loan Facility (“ABL Facility”) \| Revolving Credit Facility \| Line of Credit
Line of Credit Facility [Line Items]
Long-term debt	0	$ 210,200,000
Revolving Credit Facility Accordion Feature \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Borrowing capacity	800,000,000
Line of credit facility, accordion feature, increase limit	200,000,000
Letter of Credit
Line of Credit Facility [Line Items]
Borrowing capacity	$ 50,000,000

Debt - Covenants (Details)

Debt - Covenants (Details)	Sep. 28, 2023
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	Sep. 28, 2023	Dec. 29, 2022
Debt Instrument [Line Items]
Long-term debt, fair value	$ 201,524	$ 406,775
Term Loan Facility \| Level 3
Debt Instrument [Line Items]
Long-term debt, fair value	201,524	196,575
ABL Facility \| Level 2 \| Revolving Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Long-term debt, fair value	$ 0	$ 210,200

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Sep. 28, 2023	Sep. 29, 2022	Sep. 28, 2023	Sep. 29, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	21.10%	22.80%	21.50%	22.70%

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($)			9 Months Ended
	Aug. 08, 2022	Nov. 15, 2021	Sep. 28, 2023	Sep. 29, 2022
Lessee, Lease, Description [Line Items]
Weighted average discount rate			5.70%	5.30%
Weighted average remaining lease term			12 years	11 years
Cash paid for operating leases			$ 141,700,000	$ 131,300,000
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)	$ 11,000,000	$ 1,000,000
Minimum
Lessee, Lease, Description [Line Items]
Lease term (in years)			10 years
Maximum
Lessee, Lease, Description [Line Items]
Lease term (in years)			20 years

Commitments and Contingencies_2

Commitments and Contingencies - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2023	Sep. 29, 2022	Sep. 28, 2023	Sep. 29, 2022
Lease, Cost
Total fixed operating lease cost	$ 51,233	$ 44,039	$ 148,451	$ 133,162
Total variable lease cost	16,343	15,063	49,031	43,288
Sublease income	(681)	(681)	(2,041)	(2,041)
Total operating lease cost	66,895	58,421	195,441	174,409
Selling and store operating
Lease, Cost
Total fixed operating lease cost	39,575	33,991	116,248	103,035
Total variable lease cost	14,601	13,524	44,369	38,450
Cost of sales
Lease, Cost
Total fixed operating lease cost	6,385	6,354	17,856	19,178
Total variable lease cost	1,149	1,231	3,307	3,886
Pre-opening
Lease, Cost
Total fixed operating lease cost	4,244	2,558	11,216	7,542
Total variable lease cost	185	114	328	354
General and administrative
Lease, Cost
Total fixed operating lease cost	1,029	1,136	3,131	3,407
Total variable lease cost	$ 408	$ 194	$ 1,027	$ 598

Commitments and Contingencies_3

Commitments and Contingencies - Lease Maturity (Details) - USD ($) $ in Thousands	Sep. 28, 2023	Dec. 29, 2022
Commitments and Contingencies Disclosure [Abstract]
Thirteen weeks ending December 28, 2023	$ 42,334
2024	210,612
2025	200,864
2026	188,072
2027	178,914
Thereafter	1,277,883
Total minimum lease payments	2,098,679
Less: amount of lease payments representing interest	648,105
Present value of future minimum lease payments	1,450,574
Less: current obligations under leases	125,348	$ 105,693
Long-term lease obligations	1,325,226	$ 1,227,507
Legally binding minimum lease payments for operating leases signed but not yet commenced	477,000
Minimum lease payments for options to extend lease terms	$ 242,300

Stock-Based Compensation - Comp

Stock-Based Compensation - Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2023	Sep. 29, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 20,336	$ 17,229
General and administrative
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	18,927	16,911
Selling and store operating
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 1,409	$ 318

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - $ / shares	9 Months Ended
	Sep. 28, 2023
Options
Outstanding at beginning of period (in shares)	2,101,559
Exercised (in shares)	(336,061)
Forfeited or expired (in shares)	(3,983)
Outstanding at the end of period (in shares)	1,761,515
Vested and exercisable, Options (in shares)	1,669,036
Weighted Average Exercise Price
Outstanding at the beginning of period (in dollars per share)	$ 27.10
Exercised (in dollars per share)	23.53
Forfeited or expired (in dollars per share)	48.97
Outstanding at the end of period (in dollars per share)	27.73
Vested and exercisable, Weighted Average Exercise Price (in dollars per share)	$ 25.39

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 28, 2023 USD ($)
Performance-based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
TSR Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate grant date fair value	$ 56.3
Restricted stock units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	2 years
Restricted stock units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Executive officers \| Performance-based \| Minimum \| One Time Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights (as a percent)	0%
Executive officers \| Performance-based \| Minimum \| Annual Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights (as a percent)	0%
Executive officers \| Performance-based \| Maximum \| One Time Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights (as a percent)	150%
Executive officers \| Performance-based \| Maximum \| Annual Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights (as a percent)	200%
Executive officers \| TSR Awards \| Minimum \| One Time Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights (as a percent)	0%
Executive officers \| TSR Awards \| Maximum \| One Time Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights (as a percent)	150%

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Unit Activity (Details)	9 Months Ended
	Sep. 28, 2023 shares
Total Restricted Stock Units
Number of Awards
Beginning balance (in shares)	444,946
Granted (in shares)	622,082
Vested (in shares)	(132,432)
Forfeited (in shares)	(60,379)
Ending balance (in shares)	874,217
Service-based
Number of Awards
Beginning balance (in shares)	408,829
Granted (in shares)	374,685
Vested (in shares)	(132,432)
Forfeited (in shares)	(24,262)
Ending balance (in shares)	626,820
Performance-based
Number of Awards
Beginning balance (in shares)	36,117
Granted (in shares)	188,543
Vested (in shares)	0
Forfeited (in shares)	(36,117)
Ending balance (in shares)	188,543
Total shareholder return
Number of Awards
Beginning balance (in shares)	0
Granted (in shares)	58,854
Vested (in shares)	0
Forfeited (in shares)	0
Ending balance (in shares)	58,854

Stock-Based Compensation - Shar

Stock-Based Compensation - Share-Based Payment Award Valuation Assumptions (Details) - TSR Awards	9 Months Ended
	Sep. 28, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years 9 months 18 days
Risk-free interest rate	4.50%
Expected volatility	49.50%
Dividend yield	0%

Stock-Based Compensation - Re_2

Stock-Based Compensation - Restricted Stock Award Activity (Details)	9 Months Ended
	Sep. 28, 2023 shares
Total Restricted Stock Awards
Restricted Stock Awards
Beginning balance (in shares)	325,161
Vested (in shares)	(211,451)
Ending balance (in shares)	113,710
Service-based
Restricted Stock Awards
Beginning balance (in shares)	103,326
Vested (in shares)	(68,334)
Ending balance (in shares)	34,992
Performance-based
Restricted Stock Awards
Beginning balance (in shares)	134,318
Vested (in shares)	(86,656)
Ending balance (in shares)	47,662
Total shareholder return
Restricted Stock Awards
Beginning balance (in shares)	87,517
Vested (in shares)	(56,461)
Ending balance (in shares)	31,056
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						9 Months Ended
	Sep. 28, 2023	Jun. 29, 2023	Mar. 30, 2023	Sep. 29, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 28, 2023	Sep. 29, 2022
Earnings Per Share [Abstract]
Net income	$ 65,923	$ 71,452	$ 71,524	$ 76,175	$ 81,832	$ 70,951	$ 208,899	$ 228,958
Basic weighted average shares outstanding (in shares)	106,393			105,754			106,187	105,565
Dilutive effect of share-based awards (in shares)	1,609			1,716			1,663	1,879
Diluted weighted average shares outstanding (in shares)	108,002			107,470			107,850	107,444
Basic earnings per share (in dollars per share)	$ 0.62			$ 0.72			$ 1.97	$ 2.17
Diluted earnings per share (in dollars per share)	$ 0.61			$ 0.71			$ 1.94	$ 2.13

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		9 Months Ended
	Sep. 28, 2023	Sep. 29, 2022	Sep. 28, 2023	Sep. 29, 2022
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)	56	71	56	70
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the computation of diluted earnings (in shares)	0	12	0	0
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)	8	301	14	229

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2023	Sep. 29, 2022	Sep. 28, 2023	Sep. 29, 2022	Jun. 29, 2023	Mar. 30, 2023	Dec. 29, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stockholders' equity	$ 1,885,476	$ 1,582,619	$ 1,885,476	$ 1,582,619	$ 1,809,779	$ 1,728,417	$ 1,657,176	$ 1,494,286	$ 1,402,417	$ 1,323,199
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Reclassification out of AOCI	1,400	$ 200	3,700	$ 200
Interest Rate Cap \| Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stockholders' equity	700		700				1,400
Contingent Earn-out Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value adjustments			2,329
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	10,900		10,900
Level 3 \| Other Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	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	5,600		5,600
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	$ 3,200		$ 3,200				$ 5,900

Fair Value Measurements - Summa

Fair Value Measurements - Summarizes Changes In Contingent Earn-Out Liabilities (Details) - USD ($) $ in Thousands		9 Months Ended
	Jun. 07, 2023	Sep. 28, 2023
Salesmaster Associates, Inc.
Contingent Earn-out Liabilities
Purchase consideration	$ 20,100
Payments to acquire business	17,400
Contingent consideration liability	2,800
Contingent consideration, potential earnout payments	$ 4,000
Contingent Earn-out Liabilities
Contingent Earn-out Liabilities
Beginning balance		$ 11,019
Acquisition		2,750
Fair value adjustments		2,329
Payments		(5,241)
Ending balance		$ 10,857

Supply Chain Finance (Details)

Supply Chain Finance (Details) - USD ($) $ in Millions	Sep. 28, 2023	Dec. 29, 2022
Payables and Accruals [Abstract]
Supplier finance program obligation	$ 135.7	$ 82.5

Acquisition - Narrative (Detail

Acquisition - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
Acquisition - Narrative (Details) - USD ($) $ in Thousands	Jun. 07, 2023	Sep. 28, 2023	Sep. 28, 2023	Dec. 29, 2022
Business Acquisition [Line Items]
Goodwill		$ 257,940	$ 257,940	$ 255,473
Salesmaster Associates, Inc.
Business Acquisition [Line Items]
Purchase consideration	$ 20,100
Payments to acquire business	17,400
Contingent consideration liability	2,800
Acquisition		$ 0	$ 900
Working capital consisting of inventory and receivables	12,100
Right-of-use assets acquired	6,000
Goodwill	2,500
Lease obligation acquired	5,500
Salesmaster Associates, Inc. \| Customer Relationships
Business Acquisition [Line Items]
Intangible assets acquired	$ 5,000
Estimated useful life	12 years