Revenue Recognition and Business Concentrations

12 Months Ended

Mar. 31, 2026

Revenue from Contract with Customer [Abstract]

Revenue Recognition and Business Concentrations

Revenue Recognition and Business Concentrations

Disaggregated Revenue. Refer to Note 13, “Reportable Operating Segments,” for further information on the

Company’s disaggregation of revenue by reportable operating segment.

Channel Concentration. Net sales by channel were as follows:

	Years Ended March 31,
	2026	2025	2024
Wholesale	$3,208,107	$2,855,865	$2,432,307
Direct-to-Consumer	2,264,189	2,129,747	1,855,456
Total	$5,472,296	$4,985,612	$4,287,763

Geographic Concentration. Net sales by geography were as follows:

	Years Ended March 31,
	2026	2025	2024
Domestic	$3,191,518	$3,186,709	$2,863,674
International	2,280,778	1,798,903	1,424,089
Total	$5,472,296	$4,985,612	$4,287,763

Foreign Currency Concentration. For the years ended March 31, 2026, 2025, and 2024, no single international

country comprised 10.0% or more of the Company’s total net sales. For the years ended March 31, 2026, 2025, and

2024, net sales in foreign currencies, which exclude US denominated distributor sales, were $1,748,061,

$1,376,782, and $1,105,057, respectively.

Customer Concentration. For the years ended March 31, 2026, 2025, and 2024, no single global customer

comprised 10.0% or more of the Company’s total net sales. As of March 31, 2026, the Company has one customer

that represents 18.5% of trade accounts receivable, net, compared to one customer that represents 13.6% of trade

accounts receivable, net, as of March 31, 2025. Management performs regular evaluations concerning the ability of

the Company’s customers to satisfy their obligations to the Company and recognizes an allowance for doubtful

accounts based on these evaluations.

Variable Consideration. Components of variable consideration include the estimated sales return asset and

liability, as well as allowances for chargebacks and sales discounts. Estimated variable consideration is included in

the transaction price only to the extent it is probable that a significant reversal of cumulative revenue recognized will

not occur in a future period. The Company reassesses these estimates at each reporting period and adjusts them,

as necessary, to reflect changes in facts and circumstances.

Sales Return Asset and Liability. Reserves are recorded for anticipated future returns of goods shipped prior to the

end of the reporting period. In general, the Company accepts returns for damaged or defective products for up to

one year. Returns are generally accepted from customers and end consumers up to 90 days from the point of sale

for cash or credit.

Sales returns are a refund asset for the right to recover the inventory and a refund liability for the stand-ready right

of return. Changes to the refund asset for the right to recover the inventory are recorded against cost of sales and

changes in the refund liability are recorded against gross sales in the consolidated statements of comprehensive

income. The refund asset for the right to recover the inventory is recorded in other current assets and the related

refund liability is recorded in other accrued expenses in the consolidated balance sheets. The amounts of these

reserves are determined based on several factors, including known and actual returns, historical returns, and any

recent events that could result in a change from historical return rates.

The following table summarizes changes in the estimated sales returns for the periods presented:

	Sales Return Asset	Sales Return Liability
Balance, March 31, 2024	$13,866	$(55,327)
Net additions to sales return liability (1)	74,150	(306,968)
Actual returns	(66,896)	298,833
Balance, March 31, 2025 (2)	21,120	(63,462)
Net additions to sales return liability (1)	81,681	(328,887)
Actual returns	(75,072)	312,294
Balance, March 31, 2026 (2)	$27,729	$(80,055)

(1) Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual

return rights and discretionary authorized returns.

(2) As of March 31, 2026, and 2025, the sales return liability includes $63,907 and $47,216, respectively, for the wholesale

channel and $16,148 and $16,246, respectively, for the DTC channel.

Allowance for Chargebacks. The Company provides a trade accounts receivable allowance for chargebacks for

wholesale channel sales. When customers pay their invoices, they may take deductions against their invoices that

can include chargebacks for price adjustments, short shipments, and other reasons. Therefore, the Company

records an allowance primarily for known circumstances as well as unknown circumstances based on historical

trends related to the timing and amount of chargebacks taken against customer invoices. Additions to the allowance

are recorded against gross sales or SG&A expenses in the consolidated statements of comprehensive income.

Allowance for Sales Discounts. The Company provides a trade accounts receivable allowance for sales discounts

for wholesale channel sales, which reflects a discount that customers may take, generally based on meeting certain

order, shipment or prompt payment terms. The Company uses the amount of the discounts that are available to be

taken against the period end trade accounts receivable to estimate and record a corresponding reserve for sales

discounts. Additions to the allowance are recorded against gross sales in the consolidated statements of

comprehensive income.

Contract Liabilities. Contract liabilities are performance obligations that the Company expects to satisfy or relieve

within the next 12 months, advance consideration obtained prior to satisfying a performance obligation, or

unconditional obligations to provide goods or services under non-cancelable contracts before the transfer of goods

or services to the customer has occurred. Contract liabilities are recorded in other accrued expenses in the

consolidated balance sheets and include loyalty programs and other deferred revenue.

Loyalty Programs. The Company has certain loyalty programs in its DTC channel where consumers can earn

rewards from qualifying purchases that are considered a material right for discounts on future purchases. The

Company defers recognition of revenue for unredeemed loyalty awards acquired through qualifying purchases until

the earlier of actual or estimated redemption or expiration. Estimates are determined based on historical redemption

and expiration patterns. Activity related to loyalty programs for the contract liability recorded in other accrued

expenses in the consolidated balance sheets was as follows:

	Years Ended March 31,
	2026	2025
Beginning balance	$(18,566)	$(17,586)
Redemptions and expirations for loyalty certificates and points recognized in net sales	105,066	68,080
Deferred revenue for loyalty points and certificates issued	(107,500)	(69,060)
Ending balance	$(21,000)	$(18,566)

Deferred Revenue. Revenue is deferred for wholesale channel transactions when certain conditions outlined within

the contract terms, including the transfer of control or delivery of product, have not occurred, such as when a

wholesale channel customer prepays for ordered product. Activity related to deferred revenue for the contract

liability recorded in other accrued expenses in the consolidated balance sheets was as follows:

	Years Ended March 31,
	2026	2025
Beginning balance	$(27,305)	$(9,591)
Additions of customer cash payments	(100,874)	(80,732)
Revenue recognized	98,040	63,018
Ending balance	$(30,139)	$(27,305)