Segment and Enterprise-wide Information

3 Months Ended

Jun. 30, 2022

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, 2022.

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, goodwill 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,
	2022		2021
Net sales:
Direct	$	26,476	$	63,396
Retail	27,444		120,484
Royalty	897		713
Consolidated net sales	$	54,817	$	184,593
Contribution:
Direct	$	(9,893)	$	6,759
Retail	(5,408)		22,090
Royalty	897		713
Consolidated contribution	$	(14,404)	$	29,562
Reconciliation of consolidated contribution to (loss) income from continuing operations:
Consolidated contribution	$	(14,404)	$	29,562
Amounts not directly related to segments:
Operating expenses(1)	(36,781)		(11,695)
Other expense, net	(889)		(413)
Income tax expense	(8,096)		(3,438)
(Loss) income from continuing operations	$	(60,170)	$	14,016
(1) Included in unallocated Operating expenses is $25.4 million of Goodwill and intangible impairment charge related to the Direct segment and $1.6 million of intangible impairment charge related to the Retail segment that is not included in the contribution performance measured by the chief operating decision maker.

	As of
	June 30, 2022		March 31, 2022
Assets:
Direct	$	61,067	$	93,554
Retail	108,264		144,683
Unallocated corporate	59,807		75,808
Total assets	$	229,138	$	314,045

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

	Three-Months Ended June 30,
	2022	2021
Amazon.com	29.4%	17.9%
Best Buy	*	17.1%
*Less than 10% of total net sales.