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REPORTABLE OPERATING SEGMENTS | 12 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
REPORTABLE OPERATING SEGMENTS | REPORTABLE OPERATING SEGMENTS Information reported to the CODM is organized into the Company’s three reportable operating segments, which include the brand operations for the UGG brand, HOKA 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. 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. 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 of the Company's reportable operating segments are consistent with those described in Note 1, “General.” Income from operations of each reportable operating segment exclude 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 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 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 consolidated statements of comprehensive income, was as follows:
Year Ended March 31, 2025 | UGG |  | HOKA |  | Other Brands |  | Total
Net sales | $ | 2,531,351 |  | $ | 2,233,090 |  | $ | 221,171 |  | $ | 4,985,612
Less: Cost of sales (1) | 1,023,495 |  | 949,824 |  | 126,630 |  | 2,099,949
Segment gross profit | 1,507,856 |  | 1,283,266 |  | 94,541 |  | 2,885,663
Segment gross margin | 59.6 | % |  | 57.5 | % |  | 42.7 | % |  | 57.9 | %
Less: (1) |  |  |  |  |  |  |
Payroll and related costs | 146,093 |  |  | 101,056 |  |  | 18,179 |  |  | 265,328 |
Advertising, marketing, and promotion expenses | 180,889 |  |  | 226,238 |  |  | 25,071 |  |  | 432,198 |
Rent and occupancy | 75,724 |  |  | 26,467 |  |  | 424 |  |  | 102,615 |
Depreciation and other related costs (2) | 10,026 |  |  | 5,007 |  |  | 4,412 |  |  | 19,445 |
Other segment items (3) | 92,251 |  |  | 75,993 |  |  | 11,877 |  |  | 180,121 |
Segment SG&A expenses | 504,983 |  |  | 434,761 |  |  | 59,963 |  |  | 999,707 |
Segment income from operations | $ | 1,002,873 |  |  | $ | 848,505 |  |  | $ | 34,578 |  |  | $ | 1,885,956 |
Segment operating margin | 39.6 | % |  | 38.0 | % |  | 15.6 | % |  | 37.8 | %
Year Ended March 31, 2024 | UGG |  | HOKA |  | Other Brands |  | Total
Net sales | $ | 2,239,132 |  | $ | 1,806,740 |  | $ | 241,891 |  | $ | 4,287,763
Less: Cost of sales (1) | 983,636 |  | 763,673 |  | 154,966 |  | 1,902,275
Segment gross profit | 1,255,496 |  | 1,043,067 |  | 86,925 |  | 2,385,488
Segment gross margin | 56.1 | % |  | 57.7 | % |  | 35.9 | % |  | 55.6 | %
Less: (1) |  |  |  |  |  |  |
Payroll and related costs | 134,307 |  |  | 74,991 |  |  | 17,628 |  |  | 226,926 |
Advertising, marketing, and promotion expenses | 148,809 |  |  | 175,756 |  |  | 24,287 |  |  | 348,852 |
Rent and occupancy | 75,724 |  |  | 16,589 |  |  | 348 |  |  | 92,661 |
Depreciation and other related costs (2) | 9,295 |  |  | 3,389 |  |  | 10,034 |  |  | 22,718 |
Other segment items (3) | 82,534 |  |  | 53,295 |  |  | 10,907 |  |  | 146,736 |
Segment SG&A expenses | 450,669 |  |  | 324,020 |  |  | 63,204 |  |  | 837,893 |
Segment income from operations | $ | 804,827 |  |  | $ | 719,047 |  |  | $ | 23,721 |  |  | $ | 1,547,595 |
Segment operating margin | 35.9 | % |  | 39.8 | % |  | 9.8 | % |  | 36.1 | %
Year Ended March 31, 2023 | UGG |  | HOKA |  | Other Brands |  | Total
Net sales | $ | 1,929,211 |  | $ | 1,412,916 |  | $ | 285,159 |  | $ | 3,627,286
Less: Cost of sales (1) | 975,585 |  | 641,240 |  | 185,091 |  | 1,801,916
Segment gross profit | 953,626 |  | 771,676 |  | 100,068 |  | 1,825,370
Segment gross margin | 49.4 | % |  | 54.6 | % |  | 35.1 | % |  | 50.3 | %
Less: (1) |  |  |  |  |  |  |
Payroll and related costs | 109,576 |  |  | 57,446 |  |  | 15,266 |  |  | 182,288 |
Advertising, marketing, and promotion expenses | 114,652 |  |  | 135,590 |  |  | 20,898 |  |  | 271,140 |
Rent and occupancy | 69,302 |  |  | 9,033 |  |  | 453 |  |  | 78,788 |
Depreciation and other related costs (2) | 10,623 |  |  | 2,272 |  |  | 1,866 |  |  | 14,761 |
Other segment items (3) | 77,004 |  |  | 38,877 |  |  | 12,083 |  |  | 127,964 |
Segment SG&A expenses | 381,157 |  |  | 243,218 |  |  | 50,566 |  |  | 674,941 |
Segment income from operations | $ | 572,469 |  |  | $ | 528,458 |  |  | $ | 49,502 |  |  | $ | 1,150,429 |
Segment operating margin | 29.7 | % |  | 37.4 | % |  | 17.4 | % |  | 31.7 | %
(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 includes 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 Note 3, “Goodwill and Other Intangible Assets,” for further information on the impairment loss. (3) Other segment items are comprised of other SG&A expenses, which primarily includes credit card fees, commissions, materials and supplies, travel, and certain 3PL service fees. A reconciliation of reportable segment income from operations to consolidated statements of comprehensive income was as follows:
| Years Ended March 31,
| 2025 |  | 2024 |  | 2023
Segment income from operations | $ | 1,885,956 |  |  | $ | 1,547,595 |  |  | $ | 1,150,429 |
Unallocated enterprise and shared brand expenses (1) | (706,864) |  |  | (620,081) |  |  | (497,678) |
Total other income, net | 64,207 |  |  | 51,427 |  |  | 13,331 |
Consolidated income before income taxes | $ | 1,243,299 |  |  | $ | 978,941 |  |  | $ | 666,082 |
(1) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, the costs are recorded in unallocated enterprise and shared brand expenses, which are costs that are managed centrally and not specific to any one brand. 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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