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REPORTABLE OPERATING SEGMENTS | 6 Months Ended
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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 DC s 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 DC s 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) | 269,332 |  | 338,048 |  | 19,638 |  | 627,018
Segment gross profit | 364,754 |  | 421,539 |  | 17,529 |  | 803,822
Segment gross margin | 57.5 | % |  | 55.5 | % |  | 47.2 | % |  | 56.2 | %
Less: (1) |  |  |  |  |  |  |
Payroll and related costs | 32,436 |  | 38,886 |  | 4,453 |  | 75,775
Advertising, marketing, and promotion expenses | 71,581 |  | 55,704 |  | 4,910 |  | 132,195
Rent and occupancy | 10,433 |  | 18,449 |  | 18 |  | 28,900
Depreciation and other related costs (2) | 1,610 |  | 3,117 |  | 6 |  | 4,733
Other segment items (3) | 27,397 |  | 33,110 |  | 5,439 |  | 65,946
Segment SG&A expenses | 143,457 |  | 149,266 |  | 14,826 |  | 307,549
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) | 237,135 |  | 311,305 |  | 29,608 |  | 578,048
Segment gross profit | 333,761 |  | 378,560 |  | 20,951 |  | 733,272
Segment gross margin | 58.5 | % |  | 54.9 | % |  | 41.4 | % |  | 55.9 | %
Less: (1) |  |  |  |  |  |  |
Payroll and related costs | 25,356 |  | 35,103 |  | 4,740 |  | 65,199
Advertising, marketing, and promotion expenses | 66,576 |  | 47,592 |  | 6,893 |  | 121,061
Rent and occupancy | 6,750 |  | 16,474 |  | 83 |  | 23,307
Depreciation and other related costs (2) | 1,352 |  | 2,484 |  | 3,901 |  | 7,737
Other segment items (3) | 19,166 |  | 24,560 |  | 4,500 |  | 48,226
Segment SG&A expenses | 119,200 |  | 126,213 |  | 20,117 |  | 265,530
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, 2025 | HOKA |  | UGG |  | Other Brands |  | Total
Net sales | $ | 1,287,205 |  | $ | 1,024,679 |  | $ | 83,494 |  | $ | 2,395,378
Less: Cost of sales (1) | 545,504 |  | 463,816 |  | 44,330 |  | 1,053,650
Segment gross profit | 741,701 |  | 560,863 |  | 39,164 |  | 1,341,728
Segment gross margin | 57.6 | % |  | 54.7 | % |  | 46.9 | % |  | 56.0 | %
Less: (1) |  |  |  |  |  |  |
Payroll and related costs | 60,944 |  | 71,751 |  | 8,985 |  | 141,680
Advertising, marketing, and promotion expenses | 127,569 |  | 75,272 |  | 11,118 |  | 213,959
Rent and occupancy | 19,479 |  | 35,666 |  | 56 |  | 55,201
Six Months Ended September 30, 2025 | HOKA |  | UGG |  | Other Brands |  | Total
Depreciation and other related costs (2) | 3,083 |  | 6,074 |  | 45 |  | 9,202
Other segment items (3) | 55,801 |  | 45,844 |  | 8,504 |  | 110,149
Segment SG&A expenses | 266,876 |  | 234,607 |  | 28,708 |  | 530,191
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, 2024 | HOKA |  | UGG |  | Other Brands |  | Total
Net sales | $ | 1,116,074 |  | $ | 912,816 |  | $ | 107,777 |  | $ | 2,136,667
Less: Cost of sales (1) | 458,648 |  | 414,997 |  | 59,750 |  | 933,395
Segment gross profit | 657,426 |  | 497,819 |  | 48,027 |  | 1,203,272
Segment gross margin | 58.9 | % |  | 54.5 | % |  | 44.6 | % |  | 56.3 | %
Less: (1) |  |  |  |  |  |  |
Payroll and related costs | 46,085 |  | 63,523 |  | 8,934 |  | 118,542
Advertising, marketing, and promotion expenses | 111,879 |  | 63,452 |  | 14,216 |  | 189,547
Rent and occupancy | 12,517 |  | 31,660 |  | 272 |  | 44,449
Depreciation and other related costs (2) | 2,407 |  | 4,888 |  | 4,209 |  | 11,504
Other segment items (3) | 39,059 |  | 36,063 |  | 6,876 |  | 81,998
Segment SG&A expenses | 211,947 |  | 199,586 |  | 34,507 |  | 446,040
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,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
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, net | 15,835 |  |  | 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.

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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/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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