Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Our chief operating decision maker (“CODM”) is our Chief Executive Officer (“CEO”), who reviews financial information presented on a consolidated basis for purposes of making decisions, assessing financial performance and allocating resources. We operate our business as one operating segment and therefore we have one reportable segment that offers an assortment of merchandise across a number of categories, including furniture, outdoor, lighting, textiles and décor. The assortment of merchandise can be purchased through our Retail and eCommerce sales channels.

The majority of our revenue is generated through sales to clients in the United States. Sales to clients outside of the United States are not significant. Further, no single client represents ten percent or more of our net revenue. There are no inter-segment transactions.

The accounting policies of our single operating segment are the same as those described within our summary of significant accounting policies. The CODM assesses performance at the consolidated level and makes business decisions based on various key performance indicators, primarily net income, which is also reported on the consolidated statements of comprehensive income as net and comprehensive income.

Our CODM uses net income to determine the allocation of resources for investments in retail Showrooms, information technology and systems infrastructure, as well as supply chain investments. Net income is also used as a method for planning and forecasting overall expected performance and for evaluating, on a quarterly and annual basis, actual results against such expectations.

Asset information is reported on the consolidated balance sheets as total assets. However, asset information is not used for purposes of making decisions, assessing financial performance or allocating resources.

Refer to the consolidated statements of cash flow for property, furniture and equipment expenditures, related depreciation and amortization and other significant noncash items.

The following table shows revenue by merchandise sales channel and significant segment expenses (amounts in thousands):

	Year Ended
	December 31,
	2024		2023		2022
Retail	$	1,051,510	$	1,045,079	$	1,022,347
eCommerce	219,597		242,625		206,581
Total net revenue	$	1,271,107	$	1,287,704	$	1,228,928
Less significant costs and expenses:
Cost of goods sold	769,878		747,281		703,869
Corporate and administrative expenses(1)	206,433		190,814		178,905
Selling expenses	155,522		136,331		117,449
Marketing expenses	53,471		48,967		44,034
Gain on sale of assets	(1,202)		—		—
Interest (income) expense, net	(3,163)		(3,351)		3,387
Other income	(754)		(1,027)		(1,294)
Income before taxes	90,922		168,689		182,578
Income tax expense	22,372		43,450		45,944
Net and comprehensive income	$	68,550	$	125,239	$	136,634

(1) Corporate and administrative expenses primarily include warehouse expenses, equity based compensation costs, information technology, human resources and legal costs, insurance expenses, accounting fees and corporate sustainability costs.