Segment and Geographic Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment and Geographic Information

(9)Segment and Geographic Information

The Company has two reportable segments, Wholesale and Direct-to-Consumer. Management evaluates segment performance based primarily on sales and gross margin. Other costs and expenses of the Company are analyzed on an aggregate basis and not allocated to the segments. The following summarizes the Company’s operations by segment and geographic area:

Segment Information

	Three Months Ended March 31,
(in thousands)	2024			2023
Wholesale sales	$	1,421,698		$	1,294,558
Gross profit		636,040			511,999
Gross margin		44.7	%		39.6	%
Direct-to-Consumer sales	$	829,889		$	707,370
Gross profit		545,594			466,580
Gross margin		65.7	%		66.0	%
Total sales	$	2,251,587		$	2,001,928
Gross profit		1,181,634			978,579
Gross margin		52.5	%		48.9	%

(in thousands)	As of March 31, 2024		As of December 31, 2023
Identifiable assets
Wholesale	$	3,750,122	$	3,607,537
Direct-to-Consumer		3,817,318		3,939,814
Total	$	7,567,440	$	7,547,351

	Three Months Ended March 31,
(in thousands)	2024		2023
Additions to property, plant and equipment
Wholesale	$	32,763	$	51,516
Direct-to-Consumer		24,324		19,697
Total	$	57,087	$	71,213

Geographic Information

	Three Months Ended March 31,
(in thousands)	2024		2023
Geographic sales
Domestic Wholesale	$	475,950	$	441,903
Domestic Direct-to-Consumer		322,854		298,963
Total domestic sales		798,804		740,866
International Wholesale		945,748		852,655
International Direct-to-Consumer		507,035		408,407
Total international sales		1,452,783		1,261,062
Total sales	$	2,251,587	$	2,001,928

Regional Sales
Americas (AMER)	$	1,019,467	$	945,931
Europe, Middle East & Africa (EMEA)		627,652		534,494
Asia Pacific (APAC)		604,468		521,503
Total sales	$	2,251,587	$	2,001,928
China sales	$	319,514	$	281,953

(in thousands)	As of March 31, 2024		As of December 31, 2023
Property, plant and equipment, net
Domestic	$	969,810	$	957,569
International		549,653		549,121
Total	$	1,519,463	$	1,506,690
China property plant and equipment, net	$	285,337	$	286,854

The Company’s sales to its five largest customers accounted for 8.5% and 8.0% of total sales for the three months ended March 31, 2024 and 2023.

Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Net assets held outside the U.S. were $5.2 billion and $5.1 billion at March 31, 2024 and December 31, 2023.

The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. Domestic accounts receivable generally do not require collateral. Foreign accounts receivable are generally collateralized by letters of credit. The Company’s additions to the provision for expected credit losses for the three months ended March 31, 2024 and 2023 were $1.3 million and $0.7 million.

The Company’s accounts receivables, excluding allowances for bad debts and chargebacks, by geography are summarized as follows:

(in thousands)	As of March 31, 2024		As of December 31, 2023
Domestic Accounts Receivable	$	396,278	$	276,918
International Accounts Receivable		819,126		641,249

The Company’s top five manufacturers produced the following:

	Three Months Ended March 31,
(percentage of total production)	2024		2023
Manufacturer #1		20.0		23.2
Manufacturer #2		8.9		6.1
Manufacturer #3		5.4		5.8
Manufacturer #4		5.1		5.8
Manufacturer #5		3.7		5.3
Total		43.1		46.2