Reportable Operating Segments

3 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Reportable Operating Segments

REPORTABLE OPERATING SEGMENTS

Information reported to the CODM, who is the Company’s Chief Executive Officer (CEO), President, and Principal Executive Officer (PEO), is organized into the Company’s six reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources. The Company does not consider international operations to be a separate reportable operating segment, and the CODM reviews such operations in the aggregate with the reportable operating segments.

Segment Net Sales and Income from Operations. The Company evaluates reportable operating segment performance primarily based on net sales and income (loss) from operations. The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations of each of the reportable operating segments includes only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, research and development, design, sales and marketing, depreciation, amortization, and the direct costs of employees within those reportable operating segments.

The Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments, which include unallocable overhead costs associated with the Company’s warehouses and DCs, certain executive and stock-based compensation, accounting, finance, legal, IT, human resources, and facilities, among others. Inter-segment sales from the Company’s wholesale reportable operating segments to the DTC reportable operating segment are at the Company’s cost, and there is no inter-segment profit on these inter-segment sales, nor are they reflected in income (loss) from operations of the wholesale reportable operating segments as these transactions are eliminated in consolidation.

Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:

	Three Months Ended June 30,
	2024		2023
Net sales
UGG brand wholesale	$	142,553	$	121,545
HOKA brand wholesale	332,732		260,847
Teva brand wholesale	31,359		35,132
Sanuk brand wholesale	4,433		6,470
Other brands wholesale	3,705		1,427
Direct-to-Consumer	310,565		250,370
Total	$	825,347	$	675,791

	Three Months Ended June 30,
	2024		2023
Income (loss) from operations
UGG brand wholesale	$	38,430	$	16,866
HOKA brand wholesale	124,694		86,524
Teva brand wholesale	6,789		9,237
Sanuk brand wholesale	1,603		759
Other brands wholesale	(1,557)		(2,041)
Direct-to-Consumer	106,410		75,462
Unallocated overhead costs	(143,562)		(116,071)
Total	$	132,807	$	70,736

Segment Assets. Assets allocated to each reportable operating segment include trade accounts receivable, net, inventories, property and equipment, net, operating lease assets, goodwill, other intangible assets, net, and certain other assets that are specifically identifiable for one of the Company’s reportable operating segments. Unallocated assets are those assets not directly related to a specific reportable operating segment and generally include cash and cash equivalents, deferred tax assets, net, and various other corporate assets shared by the Company’s reportable operating segments.

Assets allocated to each reportable operating segment, with a reconciliation to the condensed consolidated balance sheets, are as follows:

	June 30, 2024		March 31, 2024
Assets
UGG brand wholesale	$	509,965	$	247,136
HOKA brand wholesale	490,476		436,147
Teva brand wholesale	56,713		81,703
Sanuk brand wholesale	16,955		18,526
Other brands wholesale	24,973		9,379
Direct-to-Consumer	261,893		263,840
Total assets from reportable operating segments	1,360,975		1,056,731
Unallocated cash and cash equivalents	1,438,397		1,502,051
Unallocated deferred tax assets, net	71,613		72,584
Unallocated other corporate assets	435,234		504,213
Total	$	3,306,219	$	3,135,579