Leases

12 Months Ended

Mar. 31, 2026

The Company primarily leases retail stores, showrooms, offices, and distribution facilities under operating lease

contracts which vary in lease terms. Some of the Company’s operating leases contain extension options between

one to 15 years. Historically, the Company has not entered into finance leases, and its lease agreements generally

do not contain residual value guarantees, options to purchase underlying assets, or material restrictive covenants.

Variable Lease Payments. Certain leases require additional payments based on (1) actual or forecasted sales

volume (either monthly or annually), (2) reimbursement for real estate taxes (tax), (3) common area maintenance

(CAM), and (4) insurance (collectively, variable lease payments). Variable lease payments are generally excluded

from operating lease assets and lease liabilities and are recorded in rent expense as a component of SG&A

expenses in the consolidated statements of comprehensive income. Some leases are dependent upon forecasted

annual sales volume, and lease payments are recognized on a straight-line basis as rent expense over each annual

period when the achievement of the related sales target is reasonably likely to occur. Other variable lease

payments, such as tax, CAM, and insurance, are recognized in rent expense as incurred. Some leases contain one

fixed lease payment that includes variable lease payments, which are considered non-lease components. The

Company has elected to account for these instances as a single lease component and the total of these fixed

payments is used to measure the operating lease assets and lease liabilities.

Discount Rate. The Company discounts its unpaid lease payments using the interest rate implicit in the lease or, if

the rate cannot be readily determined, its IBR. Generally, the Company cannot determine the interest rate implicit in

the lease because it does not have access to the lessor’s estimated residual value or the amount of the lessor’s

deferred initial direct costs. The Company has a centralized treasury function, which enables the Company to use a

portfolio approach to discount lease obligations. Therefore, the Company generally derives a discount rate at the

lease commencement date by utilizing its IBR, which is based on what the Company would have to pay on a

collateralized basis to borrow an amount equal to its lease payments under similar terms. Because the Company

does not currently borrow on a collateralized basis under its revolving credit facilities, it uses the interest rate it pays

on its non-collateralized borrowings under its Primary Credit Facility as an input for deriving an appropriate IBR,

adjusted for the amount of the lease payments, the lease term, and the effect on that rate of designating specific

collateral with a value equal to the unpaid lease payments for that lease.

Rent Expense. The components of rent expense for operating leases, excluding certain occupancy costs such as

maintenance and utilities, primarily recorded in SG&A expenses in the consolidated statements of comprehensive

income were as follows:


	Years Ended March 31,
	2026	2025	2024
Operating	$88,921	$68,020	$64,006
Variable	48,396	39,284	40,615
Short-term	9,907	9,912	6,931
Total	$147,224	$117,216	$111,552

Operating Lease Liabilities. Maturities of undiscounted operating lease payments remaining as of March 31, 2026,

with a reconciliation to the present value of operating lease liabilities recorded in the consolidated balance sheets,

are as follows:


Years Ending March 31,		Amount
2027		$95,325
2028		86,252
2029		67,082
2030		53,029
2031		37,522
Thereafter		97,346
Total undiscounted operating lease payments		436,556
Less: Imputed interest		(61,362)
Total		$375,194

As of March 31, 2026, operating lease liabilities recorded in the consolidated balance sheets exclude undiscounted

minimum operating lease payments totaling $22,727 related to leases signed during fiscal year 2026 that had not

yet commenced. These primarily relate to showroom and new retail store leases and are expected to commence

during the next fiscal year.

Supplemental Disclosure. Key estimates and judgments related to operating lease assets and lease liabilities that

are outstanding and presented in the consolidated balance sheets are as follows:


	As of March 31,
	2026	2025
Weighted-average remaining lease term in years	5.8	5.5
Weighted-average discount rate	4.9%	4.5%

Supplemental non-cash information for amounts presented in the consolidated statements of cash flows related to

operating leases, were as follows (1):


	Years Ended March 31,
	2026	2025	2024
Operating lease assets obtained in exchange for lease liabilities	$174,848	$70,179	$78,255
Reductions to operating lease assets for reductions to lease liabilities	(2,778)	(2,096)	(8,418)

(1) Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements, as well as reductions for

tenant improvement allowances. Non-cash additions during fiscal year 2026 primarily relate to investments in the Company’s

global retail store footprint made in the ordinary course of business.