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REPORTABLE OPERATING SEGMENTS
 6 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
REPORTABLE OPERATING SEGMENTS REPORTABLE OPERATING SEGMENTS
Information reported to the Chief Operating Decision Maker (CODM), who is the Principal Executive Officer (PEO), is organized into the Company’s three reportable operating segments, which include the brand operations for the HOKA brand, UGG brand, and Other brands.
The Company does not regularly provide total assets or capital expenditures information by reportable operating segments to the CODM because that information is not used to evaluate performance or allocate resources to each reportable operating segment.
Segment Net Sales, Gross Margin, and Income from Operations. The CODM regularly evaluates the performance of each reportable operating segment based on net sales, gross profit as a percentage of net sales (gross margin), and income from operations when making decisions about resource allocations to each reportable operating segment. Income from operations of each reportable operating segment includes certain costs, which are specifically related to each reportable operating segment and that are regularly provided to the CODM. These costs consist of cost of sales; payroll and related expenses, including stock-based compensation; advertising, marketing, and promotion expenses; rent and occupancy; depreciation and other related costs; and other segment items. There are no inter-segment sales for any period presented. The accounting policies applicable to the Company’s reportable operating segments are consistent with those described in Note 1, “General,” in the Company’s consolidated financial statements in Part IV of the 2025 Annual Report.
Income from operations of each reportable operating segment excludes enterprise and shared brand expenses, as well as total other income, net, which are not used to assess reportable operating segment performance. Unallocated enterprise and shared brand expenses are costs that are managed centrally and not specific to any one brand. These costs are primarily comprised of certain payroll and related expenses, including stock-based compensation; global IT expenses; 3PL service fees; depreciation, rent, and occupancy for owned warehouses and DCs and offices; and other SG&A expenses, such as costs for contract services, materials, supplies, and travel. These costs span multiple functions including owned warehouses and DCs and 3PL service fees, along with enterprise costs, which include centralized commercial operations, IT, finance, human resources, legal, supply chain, and corporate executives.
Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:
Three Months Ended September 30, 2025
HOKA
UGG
Other Brands
Total
Net sales$634,086$759,587$37,167$1,430,840
Less: Cost of sales (1)
269,332338,04819,638627,018
Segment gross profit364,754421,53917,529803,822
Segment gross margin57.5 %55.5 %47.2 %56.2 %
Less: (1)
Payroll and related costs32,43638,8864,45375,775
Advertising, marketing, and promotion expenses71,58155,7044,910132,195
Rent and occupancy10,43318,4491828,900
Depreciation and other related costs (2)
1,6103,11764,733
Other segment items (3)
27,39733,1105,43965,946
Segment SG&A expenses143,457149,26614,826307,549
Segment income from operations$221,297$272,273$2,703$496,273
Segment operating margin (4)
34.9 %35.8 %7.3 %34.7 %
Three Months Ended September 30, 2024
HOKA
UGG
Other Brands
Total
Net sales$570,896$689,865$50,559$1,311,320
Less: Cost of sales (1)
237,135311,30529,608578,048
Segment gross profit333,761378,56020,951733,272
Segment gross margin58.5 %54.9 %41.4 %55.9 %
Less: (1)
Payroll and related costs25,35635,1034,74065,199
Advertising, marketing, and promotion expenses66,57647,5926,893121,061
Rent and occupancy6,75016,4748323,307
Depreciation and other related costs (2)
1,3522,4843,9017,737
Other segment items (3)
19,16624,5604,50048,226
Segment SG&A expenses119,200126,21320,117265,530
Segment income from operations$214,561$252,347$834$467,742
Segment operating margin (4)
37.6 %36.6 %1.6 %35.7 %
Six Months Ended September 30, 2025HOKAUGG
Other Brands
Total
Net sales$1,287,205$1,024,679$83,494$2,395,378
Less: Cost of sales (1)
545,504463,81644,3301,053,650
Segment gross profit741,701560,86339,1641,341,728
Segment gross margin57.6 %54.7 %46.9 %56.0 %
Less: (1)
Payroll and related costs60,94471,7518,985141,680
Advertising, marketing, and promotion expenses127,56975,27211,118213,959
Rent and occupancy19,47935,6665655,201
Six Months Ended September 30, 2025HOKAUGG
Other Brands
Total
Depreciation and other related costs (2)
3,0836,074459,202
Other segment items (3)
55,80145,8448,504110,149
Segment SG&A expenses
266,876234,60728,708530,191
Segment income from operations$474,825$326,256$10,456$811,537
Segment operating margin (4)
36.9 %31.8 %12.5 %33.9 %
Six Months Ended September 30, 2024HOKAUGG
Other Brands
Total
Net sales$1,116,074$912,816$107,777$2,136,667
Less: Cost of sales (1)
458,648414,99759,750933,395
Segment gross profit657,426497,81948,0271,203,272
Segment gross margin58.9 %54.5 %44.6 %56.3 %
Less: (1)
Payroll and related costs46,08563,5238,934118,542
Advertising, marketing, and promotion expenses111,87963,45214,216189,547
Rent and occupancy12,51731,66027244,449
Depreciation and other related costs (2)
2,4074,8884,20911,504
Other segment items (3)
39,05936,0636,87681,998
Segment SG&A expenses
211,947199,58634,507446,040
Segment income from operations$445,479$298,233$13,520$757,232
Segment operating margin (4)
39.9 %32.7 %12.5 %35.4 %
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2) Depreciation and other related costs generally include depreciation of property and equipment, amortization and impairment of intangible assets or other long-lived assets, accretion, and loss on disposal of assets.
(3) Other segment items are comprised of other SG&A expenses, which generally include credit card fees, commissions, materials and supplies, travel, certain 3PL service fees, and other miscellaneous expenses.
(4) Operating margin is defined as income from operations divided by net sales.
A reconciliation of reportable segment income from operations to condensed consolidated statements of comprehensive income was as follows:
Three Months Ended September 30,Six Months Ended September 30,
2025202420252024
Segment income from operations
$496,273 $467,742 $811,537 $757,232 
Unallocated enterprise and shared brand expenses (1)
(169,752)(162,656)(319,729)(319,339)
Total other income, net15,835 13,826 33,614 30,172 
Consolidated income before income taxes
$342,356 $318,912 $525,422 $468,065 
(1) The change in reportable operating segments had an impact on segment income from operations, a measure of segment profitability, and a clarification was made that certain prior unallocated overhead costs are defined as unallocated enterprise and shared brand expenses and are excluded from the measure of segment profitability.