Segment Information

12 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

SEGMENT AND ENTERPRISE-WIDE INFORMATION

We have two operating segments - Direct and Retail. There were no changes in our operating segments during the year ended March 31, 2024.

We evaluate performance 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 and cash equivalents, available-for-sale securities, 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):

	Year Ended March 31,
	2024		2023
Net Sales:
Direct	$	111,717	$	139,289
Retail	93,131		144,113
Unallocated royalty	1,116		3,371
Consolidated net sales	$	205,964	$	286,773
Contribution:
Direct	$	(22,479)	$	(29,626)
Retail	6,843		(5,720)
Unallocated royalty	1,116		3,371
Consolidated contribution	$	(14,520)	$	(31,975)
Reconciliation of consolidated contribution to loss from continuing operations:
Consolidated contribution	$	(14,520)	$	(31,975)
Amounts not directly related to segments:
Operating expenses	(75,133)		(61,386)
Reorganization items, net	(1,897)		—
Other, net	3,001		(4,768)
Income tax expense	1,821		9,359
Loss from continuing operations	$	(90,370)	$	(107,488)
Depreciation and amortization expense:
Direct	$	4,630	$	4,691
Retail	4,587		3,994
Unallocated corporate	1,980		2,418
Total depreciation and amortization expense	$	11,197	$	11,103
	As of March 31,
Assets:	2024		2023
Direct	$	19,665	$	50,493
Retail	26,922		58,214
Unallocated corporate	39,720		54,825
Total assets	$	86,307	$	163,532

There are no material long-lived assets held outside of the U.S.

During the periods presented, the following customer accounted for 10% or more of total net sales as follows:

	Year Ended March 31,
	2024	2023
Amazon.com	12.0%	19.3%