Reportable Operating Segments

12 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

Information reported to the Chief Operating Decision Maker (CODM), who is the Principal Executive Officer, 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 operations of each brand within these reportable operating

segments are managed separately because each requires different marketing, research and development, design,

sourcing, and sales strategies.

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 (including maintenance and utilities); 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.”

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.

The Company does not regularly provide total assets or capital expenditures information by reportable operating

segment to the CODM because that information is not used to evaluate performance or allocate resources to each

reportable operating segment.

Reportable operating segment information, with a reconciliation to the consolidated statements of comprehensive

income, was as follows:

Year Ended March 31, 2026	HOKA	UGG	Other Brands (3)	Total
Net sales	$2,587,330	$2,738,758	$146,208	$5,472,296
Less: Cost of sales	1,116,395	1,115,588	82,587	2,314,570
Segment gross profit	1,470,935	1,623,170	63,621	3,157,726
Segment gross margin	56.9%	59.3%	43.5%	57.7%
Less:
Payroll and related costs	130,466	158,290	18,317	307,073
Advertising, marketing, and promotion expenses	263,063	215,403	17,372	495,838
Rent and occupancy	46,173	84,287	111	130,571
Depreciation and other related costs (1)	7,831	12,245	108	20,184
Other segment items (2)	112,422	107,614	11,348	231,384
Segment SG&A expenses	559,955	577,839	47,256	1,185,050
Segment income from operations	$910,980	$1,045,331	$16,365	$1,972,676
Segment operating margin	35.2%	38.2%	11.2%	36.0%

Year Ended March 31, 2025	HOKA	UGG	Other Brands (3)	Total
Net sales	$2,233,090	$2,531,351	$221,171	$4,985,612
Less: Cost of sales	949,824	1,023,495	126,630	2,099,949
Segment gross profit	1,283,266	1,507,856	94,541	2,885,663
Segment gross margin	57.5%	59.6%	42.7%	57.9%

Year Ended March 31, 2025	HOKA	UGG	Other Brands (3)	Total
Less:
Payroll and related costs	101,056	146,093	18,179	265,328
Advertising, marketing, and promotion expenses	226,238	180,889	25,071	432,198
Rent and occupancy	26,467	75,724	424	102,615
Depreciation and other related costs (1)	5,007	10,026	4,412	19,445
Other segment items (2)	75,993	92,251	11,877	180,121
Segment SG&A expenses	434,761	504,983	59,963	999,707
Segment income from operations	$848,505	$1,002,873	$34,578	$1,885,956
Segment operating margin	38.0%	39.6%	15.6%	37.8%

Year Ended March 31, 2024	HOKA	UGG	Other Brands (3)	Total
Net sales	$1,806,740	$2,239,132	$241,891	$4,287,763
Less: Cost of sales	763,673	983,636	154,966	1,902,275
Segment gross profit	1,043,067	1,255,496	86,925	2,385,488
Segment gross margin	57.7%	56.1%	35.9%	55.6%
Less:
Payroll and related costs	74,991	134,307	17,628	226,926
Advertising, marketing, and promotion expenses	175,756	148,809	24,287	348,852
Rent and occupancy	16,589	75,724	348	92,661
Depreciation and other related costs (1)	3,389	9,295	10,034	22,718
Other segment items (2)	53,295	82,534	10,907	146,736
Segment SG&A expenses	324,020	450,669	63,204	837,893
Segment income from operations	$719,047	$804,827	$23,721	$1,547,595
Segment operating margin	39.8%	35.9%	9.8%	36.1%

(1) Depreciation and other related costs generally include depreciation of property and equipment, amortization and impairment of

intangible assets or other-long lived assets, accretion, loss on disposal of assets, and other miscellaneous costs. During the

year ended March 31, 2024, the Company recorded an impairment to intangible assets of $8,164 for the Sanuk brand definite-

lived trademark. Refer to the section titled “Recoverability of Definite-Lived Intangible and Other Long-Lived Assets,” in Note 1,

“General,” for further information on the impairment loss.

(2) Other segment items are comprised of other SG&A expenses, which primarily include credit card fees, sales commissions,

materials and supplies, travel, and certain 3PL service fees, and other miscellaneous expenses.

(3) The Other brands reportable operating segment for fiscal year 2026, includes financial results for the phase out of the

Koolaburra brand and AHNU brand. The Other brands reportable operating segment for the prior period includes financial

results for the former Sanuk brand through the Sanuk Brand Sale Date. Refer to the section titled “Reportable Operating

Segments,” in Note 1, “General,” for further information.

A reconciliation of reportable segment income from operations to consolidated statements of comprehensive income

was as follows:

	Years Ended March 31,
	2026	2025	2024
Segment income from operations	$1,972,676	$1,885,956	$1,547,595
Unallocated enterprise and shared brand expenses (1)	(709,773)	(706,864)	(620,081)
Total other income, net	63,453	64,207	51,427
Consolidated income before income taxes	$1,326,356	$1,243,299	$978,941

(1) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, they are recorded in

unallocated enterprise and shared brand expenses, which are costs that are managed centrally and not specific to any one

brand.