Segment and Enterprise-wide Information

3 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment and Enterprise-wide Information

SEGMENT AND ENTERPRISE-WIDE INFORMATION

We have two operating segments, Direct and Retail. There were no changes in our operating segments during the three-months ended June 30, 2021.

We evaluate performance of the operating segments using several factors, of which the primary financial measures are net sales and reportable segment contribution. Contribution is the measure of profit or loss, defined as net sales less product costs and directly attributable expenses. Directly attributable expenses include selling and marketing expenses, general and administrative expenses, and research and development expenses that are directly related to segment operations. Segment assets are those directly assigned to an operating segment's operations, primarily accounts receivable, inventories and other intangible assets. Unallocated assets primarily include cash, cash equivalents and restricted cash, derivative securities, shared information technology infrastructure, distribution centers, corporate headquarters, prepaids and other current assets, deferred income tax assets and other assets. Capital expenditures directly attributable to the Direct and Retail segments were not significant in any period.

Following is summary information by reportable segment (in thousands):

	Three-Months Ended June 30,
	2021		2020
Net sales:
Direct	$	63,396	$	50,433
Retail	120,484		62,948
Royalty	713		807
Consolidated net sales	$	184,593	$	114,188
Contribution:
Direct	$	6,759	$	16,995
Retail	22,090		11,613
Royalty	713		807
Consolidated contribution	$	29,562	$	29,415
Reconciliation of consolidated contribution to income (loss) from continuing operations:
Consolidated contribution	$	29,562	$	29,415
Amounts not directly related to segments:
Operating expenses	(11,695)		(36,521)
Other expense, net	(413)		(222)
Income tax (expense) benefit	(3,438)		2,342
Income (loss) from continuing operations	$	14,016	$	(4,986)

	As of
	June 30,		March 31,
Assets:	2021		2021
Direct	$	45,176	$	47,002
Retail	192,189		146,001
Unallocated corporate	145,021		161,227
Total assets	$	382,386	$	354,230

The following customers accounted for 10% or more of total net sales as follows:

	Three-Months Ended June 30,
	2021		2020
Amazon.com	17.9	%	18.0	%
Best Buy	17.1	%	*
*Less than 10% of total net sales.