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Segment and Geographic Information
 6 Months Ended
Aug. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information
Note 14 - Segment and Geographic Information

Segment Information

We operate through two strategic business divisions, each comprised of operating segments organized by our brands and product lines. Operating segments with similar economic and qualitative characteristics are aggregated into our two reportable segments, which align with our strategic business divisions. Our two reportable segments consist of Home & Outdoor and Beauty & Wellness. For additional information on our segments refer to Note 1.

Segment financial information is prepared in accordance with GAAP and our significant accounting policies described in Note 1 of our Form 10-K. Resources are allocated and performance is assessed using segment operating income by our Chief Executive Officer, whom we have determined to be our Chief Operating Decision Maker (“CODM”). Our CODM utilizes segment operating income when making decisions about allocating capital and personnel to the segments, predominantly in the annual budget and quarterly forecasting processes. In addition, our CODM uses operating income, including comparison of actual results to budget and forecast, in assessing the performance of each segment and in evaluating product pricing, distribution strategies and marketing investments. Our CODM reviews balance sheet information at a consolidated level. We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A, asset impairment charges and restructuring charges. The SG&A used to compute each segment’s operating income is directly associated with the segment, plus shared services and corporate overhead expenses that are allocable to the segment. We do not allocate non-operating income and expense, including interest or income taxes, to operating segments.
The following tables summarize reportable segment information with a reconciliation to our condensed consolidated results for the periods presented:
Three Months Ended August 31, 2025
(in thousands)Home & OutdoorBeauty & Wellness (1)Total
Sales revenue, net$208,721 $223,060 $431,781 
Less: (2)
Cost of goods sold108,636 132,464 241,100 
Operating expense (3)
172,663 333,735 506,398 
Operating loss
$(72,578)$(243,139)$(315,717)
Non-operating income, net249 
Interest expense14,221 
Loss before income tax
$(329,689)
Three Months Ended August 31, 2024
(in thousands)Home & OutdoorBeauty & WellnessTotal
Sales revenue, net$241,944 $232,277 $474,221 
Less: (2)
Cost of goods sold117,641 140,510 258,151 
Operating expense (3)
93,151 88,067 181,218 
Operating income$31,152 $3,700 $34,852 
Non-operating income, net170 
Interest expense13,216 
Income before income tax$21,806 
Six Months Ended August 31, 2025
(in thousands)Home & OutdoorBeauty & Wellness (1)Total
Sales revenue, net$386,704 $416,732 $803,436 
Less: (2)
Cost of goods sold198,529 239,215 437,744 
Operating expense (3)
474,546 613,901 1,088,447 
Operating loss
$(286,371)$(436,384)$(722,755)
Non-operating income, net557 
Interest expense28,029 
Loss before income tax
$(750,227)
Six Months Ended August 31, 2024
(in thousands)Home & OutdoorBeauty & WellnessTotal
Sales revenue, net$440,403 $450,665 $891,068 
Less: (2)
Cost of goods sold211,867 260,052 471,919 
Operating expense (3)
181,534 172,000 353,534 
Operating income$47,002 $18,613 $65,615 
Non-operating income, net270 
Interest expense25,759 
Income before income tax$40,126 
(1)The three and six months ended August 31, 2025 include a full three and six months, respectively, of operating results from Olive & June, acquired on December 16, 2024. For additional information see Note 4.
(2)These significant expense categories and amounts align with the reportable segment information that is regularly provided to the CODM.
(3)Operating expense for both reportable segments includes SG&A expense. Operating expense during the three and six months ended August 31, 2025 includes asset impairment charges of $326.4 million and $740.8 million, respectively, of which $85.5 million and $304.6 million was recognized in our Home & Outdoor segment, respectively, and $240.9 million and $436.1 million was recognized in our Beauty & Wellness segment, respectively. Operating expense during the three months ended August 31, 2025 and three and six months ended August 31, 2024 also includes restructuring charges. See Note 5 for further information on the asset impairment charges.

The following tables summarize reportable segment information for the periods presented:
Three Months Ended August 31, 2025
(in thousands)Home & OutdoorBeauty & Wellness (1)Total
Capital and intangible asset expenditures$6,907 $4,563 $11,470 
Depreciation and amortization6,040 6,820 12,860 
Non-cash share-based compensation4,248 5,124 9,372 
Asset impairment charges
85,537 240,857 326,394 

Three Months Ended August 31, 2024
(in thousands)Home & OutdoorBeauty & WellnessTotal
Capital and intangible asset expenditures$1,722 $3,162 $4,884 
Depreciation and amortization6,590 7,202 13,792 
Non-cash share-based compensation2,814 2,673 5,487 

Six Months Ended August 31, 2025
(in thousands)Home & OutdoorBeauty & Wellness (1)Total
Capital and intangible asset expenditures$13,890 $10,942 $24,832 
Depreciation and amortization12,599 14,345 26,944 
Non-cash share-based compensation4,282 5,386 9,668 
Asset impairment charges
304,632 436,147 740,779 

Six Months Ended August 31, 2024
(in thousands)Home & OutdoorBeauty & WellnessTotal
Capital and intangible asset expenditures$7,467 $6,559 $14,026 
Depreciation and amortization13,237 14,391 27,628 
Non-cash share-based compensation5,827 5,493 11,320 
(1)The three and six months ended August 31, 2025 include a full three and six months, respectively, of operating results from Olive & June, acquired on December 16, 2024. For additional information see Note 4.

Geographic Information

The following table presents net sales revenue by geographic region, in U.S. Dollars:
Three Months Ended August 31,Six Months Ended August 31,
(in thousands)2025202420252024
Domestic sales revenue, net (1)
$330,496 76.5 %$365,750 77.1 %$608,456 75.7 %$666,430 74.8 %
International sales revenue, net101,285 23.5 %108,471 22.9 %194,980 24.3 %224,638 25.2 %
Total sales revenue, net$431,781 100.0 %$474,221 100.0 %$803,436 100.0 %$891,068 100.0 %
(1)Domestic net sales revenue includes net sales revenue from the U.S. and Canada.