(Mark One) | |||||
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | Defaults Upon Senior Securities | * | ||||||
Item 4. | Mine Safety Disclosures | * | ||||||
Item 5. | ||||||||
Item 6. | ||||||||
September 30, 2023 | March 31, 2023 | ||||||||||
ASSETS | (AUDITED) | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, net of allowances ($ | |||||||||||
Inventories | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Income tax receivable | |||||||||||
Total current assets | |||||||||||
Property and equipment, net of accumulated depreciation ($ | |||||||||||
Operating lease assets | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net of accumulated amortization ($ | |||||||||||
Deferred tax assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Trade accounts payable | $ | $ | |||||||||
Accrued payroll | |||||||||||
Operating lease liabilities | |||||||||||
Other accrued expenses | |||||||||||
Income tax payable | |||||||||||
Value added tax payable | |||||||||||
Total current liabilities | |||||||||||
Long-term operating lease liabilities | |||||||||||
Income tax liability | |||||||||||
Other long-term liabilities | |||||||||||
Total long-term liabilities | |||||||||||
Stockholders’ equity | |||||||||||
Common stock (par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
( | ( | ||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general, and administrative expenses | |||||||||||||||||||||||
Interest income | ( | ( | ( | ( | |||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other income, net | ( | ( | ( | ( | |||||||||||||||||||
Total other income, net | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Other comprehensive loss, net of tax | |||||||||||||||||||||||
Unrealized gain on cash flow hedges | |||||||||||||||||||||||
Foreign currency translation loss | ( | ( | ( | ( | |||||||||||||||||||
Total other comprehensive loss, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Six Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||||||||
Shares issued upon vesting | — | — | — | — | — | ||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Shares withheld for taxes | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
( | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||
Excise taxes related to repurchases of common stock | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, June 30, 2023 | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||||||||
Shares issued upon vesting | — | — | — | ||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Shares withheld for taxes | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
( | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||
Excise taxes related to repurchases of common stock | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Six Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||||||||
Shares withheld for taxes | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
( | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, June 30, 2022 | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||||||||
Shares issued upon vesting | — | — | — | ||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Shares withheld for taxes | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
( | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Six Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Reconciliation of net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation, amortization, and accretion | |||||||||||
Amortization on cloud computing arrangements | |||||||||||
Bad debt expense | |||||||||||
Deferred tax (benefit) expense | ( | ||||||||||
Stock-based compensation | |||||||||||
Loss on disposal of long-lived assets | |||||||||||
Impairment of operating lease, other long-lived assets, and other | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade accounts receivable, net | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Income tax receivable | ( | ( | |||||||||
Net operating lease assets and lease liabilities | ( | ||||||||||
Other assets | ( | ||||||||||
Trade accounts payable | |||||||||||
Other accrued expenses | ( | ( | |||||||||
Income tax payable | |||||||||||
Other long-term liabilities | ( | ( | |||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
INVESTING ACTIVITIES | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Proceeds from sales of property and equipment | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from issuance of stock | |||||||||||
Proceeds from exercise of stock options | |||||||||||
Repurchases of common stock | ( | ( | |||||||||
Cash paid for shares withheld for taxes | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of foreign currency exchange rates on cash and cash equivalents | ( | ( | |||||||||
Net change in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Six Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||||||||||
Cash paid during the period | |||||||||||
Income taxes, net of refunds of $ | $ | $ | |||||||||
Interest | |||||||||||
Operating leases | |||||||||||
Non-cash investing activities | |||||||||||
Changes in accounts payable and accrued expenses for purchases of property and equipment | ( | ( | |||||||||
Accrued for asset retirement obligation assets related to leasehold improvements | |||||||||||
Leasehold improvements acquired through tenant allowances | |||||||||||
Non-cash financing activities | |||||||||||
Accrued excise taxes related to repurchase of common stock |
Standard | Description | Impact Upon Adoption | ||||||||||||
ASU 2022-04 - Supplier Finance Program (SFP) | The ASU requires that a buyer in a SFP disclose qualitative and quantitative information about its program on an interim basis, including the nature of the SFP and key terms, outstanding amounts as of the end the reporting period, and presentation in its financial statements. The interim portion of this ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The annual requirement that requires a buyer in a SFP disclose an activity roll forward of outstanding balances as of the end of the reporting period has not yet been adopted. This annual portion of this ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2023. Early adoption is not permitted. | The Company retrospectively adopted this ASU beginning on April 1, 2023, except for the roll forward requirements. Refer to Note 12, “Supplier Finance Program,” for further information on the Company's SFP key terms and outstanding balances recorded in the condensed consolidated balance sheets. Management is currently evaluating the impact of the annual portion of this ASU on its condensed consolidated financial statements. The Company plans to adopt the annual roll forward requirement beginning with its year ending March 31, 2025. |
Recovery Asset | Refund Liability | ||||||||||
Balance, March 31, 2023 | $ | $ | ( | ||||||||
Net additions to sales return liability* | ( | ||||||||||
Actual returns | ( | ||||||||||
Balance, September 30, 2023 | $ | $ | ( |
Recovery Asset | Refund Liability | ||||||||||
Balance, March 31, 2022 | $ | $ | ( | ||||||||
Net additions to sales return liability* | ( | ||||||||||
Actual returns | ( | ||||||||||
Balance, September 30, 2022 | $ | $ | ( |
2023 | 2022 | ||||||||||
Beginning balance | $ | ( | $ | ( | |||||||
Redemptions and expirations for loyalty certificates and points recognized in net sales | |||||||||||
Deferred revenue for loyalty points and certificates issued | ( | ( | |||||||||
Ending balance | $ | ( | $ | ( |
2023 | 2022 | ||||||||||
Beginning balance | $ | ( | $ | ( | |||||||
Additions of customer cash payments | ( | ( | |||||||||
Revenue recognized | |||||||||||
Ending balance | $ | ( | $ | ( |
As of | Measured Using | ||||||||||||||||||||||
September 30, 2023 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Money-market funds (1) | $ | $ | $ | $ | |||||||||||||||||||
Non-qualified deferred compensation asset (2) | |||||||||||||||||||||||
Non-qualified deferred compensation liability (2) | ( | ( | |||||||||||||||||||||
Designated Derivative Contracts asset (3) | |||||||||||||||||||||||
As of | Measured Using | ||||||||||||||||||||||
March 31, 2023 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Money-market funds (1) | $ | $ | $ | $ | |||||||||||||||||||
Non-qualified deferred compensation asset (2) | |||||||||||||||||||||||
Non-qualified deferred compensation liability (2) | ( | ( | |||||||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Income tax expense | $ | $ | $ | $ | |||||||||||||||||||
Effective income tax rate | % | % | % | % |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Non-cash operating activities | |||||||||||||||||||||||
Operating lease assets obtained in exchange for lease liabilities* | $ | $ | $ | $ | |||||||||||||||||||
Reductions to operating lease assets for reductions to lease liabilities* | ( | ( | ( | ( |
Six Months Ended September 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Shares Granted | Weighted-average grant date fair value per share | Shares Granted | Weighted-average grant date fair value per share | |||||||||||||||||||||||
RSUs | $ | $ | ||||||||||||||||||||||||
Notional value | $ | ||||
Fair value recorded in other current assets | |||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gain recorded in OCI | $ | $ | $ | $ | |||||||||||||||||||
Reclassifications from AOCL into net sales | ( | ( | ( | ( | |||||||||||||||||||
Income tax expense in OCI | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | $ | $ | $ |
Six Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Dollar value of shares repurchased (1) (2) | $ | $ | |||||||||
Total number of shares repurchased (3) | |||||||||||
Weighted average price per share paid | $ | $ |
September 30, 2023 | March 31, 2023 | ||||||||||
Unrealized gain on cash flow hedges | $ | $ | |||||||||
Cumulative foreign currency translation loss | ( | ( | |||||||||
Total | $ | ( | $ | ( |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Basic | |||||||||||||||||||||||
Dilutive effect of equity awards | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Excluded | |||||||||||||||||||||||
RSUs and PSUs | |||||||||||||||||||||||
LTIP PSUs | |||||||||||||||||||||||
Deferred Non-Employee Director Equity Awards | |||||||||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net sales | |||||||||||||||||||||||
UGG brand wholesale | $ | $ | $ | $ | |||||||||||||||||||
HOKA brand wholesale | |||||||||||||||||||||||
Teva brand wholesale | |||||||||||||||||||||||
Sanuk brand wholesale | |||||||||||||||||||||||
Other brands wholesale | |||||||||||||||||||||||
Direct-to-Consumer | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Income (loss) from operations | |||||||||||||||||||||||
UGG brand wholesale | $ | $ | $ | $ | |||||||||||||||||||
HOKA brand wholesale | |||||||||||||||||||||||
Teva brand wholesale | ( | ||||||||||||||||||||||
Sanuk brand wholesale | ( | ||||||||||||||||||||||
Other brands wholesale | |||||||||||||||||||||||
Direct-to-Consumer | |||||||||||||||||||||||
Unallocated overhead costs | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2023 | March 31, 2023 | ||||||||||
Assets | |||||||||||
UGG brand wholesale | $ | $ | |||||||||
HOKA brand wholesale | |||||||||||
Teva brand wholesale | |||||||||||
Sanuk brand wholesale | |||||||||||
Other brands wholesale | |||||||||||
Direct-to-Consumer | |||||||||||
Total assets from reportable operating segments | |||||||||||
Unallocated cash and cash equivalents | |||||||||||
Unallocated deferred tax assets, net | |||||||||||
Unallocated other corporate assets | |||||||||||
Total | $ | $ |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
International net sales | $ | $ | $ | $ | |||||||||||||||||||
% of net sales | % | % | % | % | |||||||||||||||||||
Net sales in foreign currencies | $ | $ | $ | $ | |||||||||||||||||||
% of net sales | % | % | % | % | |||||||||||||||||||
Ten largest global customers as % of net sales | % | % | % | % |
September 30, 2023 | March 31, 2023 | ||||||||||
United States | $ | $ | |||||||||
Foreign* | |||||||||||
Total | $ | $ |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||
Net sales | $ | 1,091,907 | 100.0 | % | $ | 875,614 | 100.0 | % | $ | 216,293 | 24.7 | % | |||||||||||||||||||||||
Cost of sales | 508,888 | 46.6 | 453,693 | 51.8 | (55,195) | (12.2) | |||||||||||||||||||||||||||||
Gross profit | 583,019 | 53.4 | 421,921 | 48.2 | 161,098 | 38.2 | |||||||||||||||||||||||||||||
Selling, general, and administrative expenses | 358,402 | 32.8 | 294,090 | 33.6 | (64,312) | (21.9) | |||||||||||||||||||||||||||||
Income from operations | 224,617 | 20.6 | 127,831 | 14.6 | 96,786 | 75.7 | |||||||||||||||||||||||||||||
Total other income, net | (9,700) | (0.9) | (1,087) | (0.1) | 8,613 | 792.4 | |||||||||||||||||||||||||||||
Income before income taxes | 234,317 | 21.5 | 128,918 | 14.7 | 105,399 | 81.8 | |||||||||||||||||||||||||||||
Income tax expense | 55,770 | 5.1 | 27,394 | 3.1 | (28,376) | (103.6) | |||||||||||||||||||||||||||||
Net income | 178,547 | 16.4 | 101,524 | 11.6 | 77,023 | 75.9 | |||||||||||||||||||||||||||||
Total other comprehensive loss, net of tax | (2,117) | (0.2) | (12,441) | (1.4) | 10,324 | 83.0 | |||||||||||||||||||||||||||||
Comprehensive income | $ | 176,430 | 16.2 | % | $ | 89,083 | 10.2 | % | $ | 87,347 | 98.1 | % | |||||||||||||||||||||||
Net income per share | |||||||||||||||||||||||||||||||||||
Basic | $ | 6.86 | $ | 3.83 | $ | 3.03 | 79.1 | % | |||||||||||||||||||||||||||
Diluted | $ | 6.82 | $ | 3.80 | $ | 3.02 | 79.5 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
Net sales by location | |||||||||||||||||||||||
Domestic | $ | 748,033 | $ | 617,709 | $ | 130,324 | 21.1 | % | |||||||||||||||
International | 343,874 | 257,905 | 85,969 | 33.3 | |||||||||||||||||||
Total | $ | 1,091,907 | $ | 875,614 | $ | 216,293 | 24.7 | % | |||||||||||||||
Net sales by brand and channel | |||||||||||||||||||||||
UGG brand | |||||||||||||||||||||||
Wholesale | $ | 451,841 | $ | 361,305 | $ | 90,536 | 25.1 | % | |||||||||||||||
Direct-to-Consumer | 158,649 | 115,210 | 43,439 | 37.7 | |||||||||||||||||||
Total | 610,490 | 476,515 | 133,975 | 28.1 |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
HOKA brand | |||||||||||||||||||||||
Wholesale | 262,973 | 223,035 | 39,938 | 17.9 | |||||||||||||||||||
Direct-to-Consumer | 160,988 | 109,981 | 51,007 | 46.4 | |||||||||||||||||||
Total | 423,961 | 333,016 | 90,945 | 27.3 | |||||||||||||||||||
Teva brand | |||||||||||||||||||||||
Wholesale | 12,150 | 19,587 | (7,437) | (38.0) | |||||||||||||||||||
Direct-to-Consumer | 9,355 | 10,463 | (1,108) | (10.6) | |||||||||||||||||||
Total | 21,505 | 30,050 | (8,545) | (28.4) | |||||||||||||||||||
Sanuk brand | |||||||||||||||||||||||
Wholesale | 3,348 | 5,060 | (1,712) | (33.8) | |||||||||||||||||||
Direct-to-Consumer | 2,033 | 2,468 | (435) | (17.6) | |||||||||||||||||||
Total | 5,381 | 7,528 | (2,147) | (28.5) | |||||||||||||||||||
Other brands | |||||||||||||||||||||||
Wholesale | 29,862 | 27,559 | 2,303 | 8.4 | |||||||||||||||||||
Direct-to-Consumer | 708 | 946 | (238) | (25.2) | |||||||||||||||||||
Total | 30,570 | 28,505 | 2,065 | 7.2 | |||||||||||||||||||
Total | $ | 1,091,907 | $ | 875,614 | $ | 216,293 | 24.7 | % | |||||||||||||||
Total Wholesale | $ | 760,174 | $ | 636,546 | $ | 123,628 | 19.4 | % | |||||||||||||||
Total Direct-to-Consumer | 331,733 | 239,068 | 92,665 | 38.8 | |||||||||||||||||||
Total | $ | 1,091,907 | $ | 875,614 | $ | 216,293 | 24.7 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
Income (loss) from operations | |||||||||||||||||||||||
UGG brand wholesale | $ | 165,902 | $ | 112,083 | $ | 53,819 | 48.0 | % | |||||||||||||||
HOKA brand wholesale | 81,873 | 63,576 | 18,297 | 28.8 | |||||||||||||||||||
Teva brand wholesale | (647) | 2,737 | (3,384) | (123.6) | |||||||||||||||||||
Sanuk brand wholesale | (303) | 350 | (653) | (186.6) | |||||||||||||||||||
Other brands wholesale | 6,459 | 5,837 | 622 | 10.7 | |||||||||||||||||||
Direct-to-Consumer | 112,255 | 59,936 | 52,319 | 87.3 | |||||||||||||||||||
Unallocated overhead costs | (140,922) | (116,688) | (24,234) | (20.8) | |||||||||||||||||||
Total | $ | 224,617 | $ | 127,831 | $ | 96,786 | 75.7 | % |
Three Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Income tax expense | $ | 55,770 | $ | 27,394 | |||||||
Effective income tax rate | 23.8 | % | 21.2 | % |
Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||
Net sales | $ | 1,767,698 | 100.0 | % | $ | 1,490,075 | 100.0 | % | $ | 277,623 | 18.6 | % | |||||||||||||||||||||||
Cost of sales | 838,255 | 47.4 | 773,402 | 51.9 | (64,853) | (8.4) | |||||||||||||||||||||||||||||
Gross profit | 929,443 | 52.6 | 716,673 | 48.1 | 212,770 | 29.7 | |||||||||||||||||||||||||||||
Selling, general, and administrative expenses | 634,090 | 35.9 | 532,501 | 35.7 | (101,589) | (19.1) | |||||||||||||||||||||||||||||
Income from operations | 295,353 | 16.7 | 184,172 | 12.4 | 111,181 | 60.4 | |||||||||||||||||||||||||||||
Total other income, net | (20,328) | (1.2) | (1,748) | (0.1) | 18,580 | 1,062.9 | |||||||||||||||||||||||||||||
Income before income taxes | 315,681 | 17.9 | 185,920 | 12.5 | 129,761 | 69.8 | |||||||||||||||||||||||||||||
Income tax expense | 73,582 | 4.2 | 39,547 | 2.7 | (34,035) | (86.1) | |||||||||||||||||||||||||||||
Net income | 242,099 | 13.7 | 146,373 | 9.8 | 95,726 | 65.4 | |||||||||||||||||||||||||||||
Total other comprehensive loss, net of tax | (10,416) | (0.6) | (27,407) | (1.8) | 16,991 | 62.0 | |||||||||||||||||||||||||||||
Comprehensive income | $ | 231,683 | 13.1 | % | $ | 118,966 | 8.0 | % | $ | 112,717 | 94.7 | % | |||||||||||||||||||||||
Net income per share | |||||||||||||||||||||||||||||||||||
Basic | $ | 9.28 | $ | 5.49 | $ | 3.79 | 69.0 | % | |||||||||||||||||||||||||||
Diluted | $ | 9.22 | $ | 5.46 | $ | 3.76 | 68.9 | % |
Six Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
Net sales by location | |||||||||||||||||||||||
Domestic | $ | 1,167,568 | $ | 1,002,224 | $ | 165,344 | 16.5 | % | |||||||||||||||
International | 600,130 | 487,851 | 112,279 | 23.0 | |||||||||||||||||||
Total | $ | 1,767,698 | $ | 1,490,075 | $ | 277,623 | 18.6 | % | |||||||||||||||
Net sales by brand and channel | |||||||||||||||||||||||
UGG brand | |||||||||||||||||||||||
Wholesale | $ | 573,386 | $ | 499,167 | $ | 74,219 | 14.9 | % | |||||||||||||||
Direct-to-Consumer | 232,624 | 185,269 | 47,355 | 25.6 | |||||||||||||||||||
Total | 806,010 | 684,436 | 121,574 | 17.8 | |||||||||||||||||||
HOKA brand | |||||||||||||||||||||||
Wholesale | 523,820 | 454,920 | 68,900 | 15.1 | |||||||||||||||||||
Direct-to-Consumer | 320,625 | 208,122 | 112,503 | 54.1 | |||||||||||||||||||
Total | 844,445 | 663,042 | 181,403 | 27.4 | |||||||||||||||||||
Teva brand | |||||||||||||||||||||||
Wholesale | 47,282 | 66,482 | (19,200) | (28.9) | |||||||||||||||||||
Direct-to-Consumer | 22,621 | 23,188 | (567) | (2.4) | |||||||||||||||||||
Total | 69,903 | 89,670 | (19,767) | (22.0) | |||||||||||||||||||
Sanuk brand | |||||||||||||||||||||||
Wholesale | 9,818 | 15,786 | (5,968) | (37.8) | |||||||||||||||||||
Direct-to-Consumer | 5,142 | 5,899 | (757) | (12.8) | |||||||||||||||||||
Total | 14,960 | 21,685 | (6,725) | (31.0) | |||||||||||||||||||
Six Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
Other brands | |||||||||||||||||||||||
Wholesale | 31,289 | 29,552 | 1,737 | 5.9 | |||||||||||||||||||
Direct-to-Consumer | 1,091 | 1,690 | (599) | (35.4) | |||||||||||||||||||
Total | 32,380 | 31,242 | 1,138 | 3.6 | |||||||||||||||||||
Total | $ | 1,767,698 | $ | 1,490,075 | $ | 277,623 | 18.6 | % | |||||||||||||||
Total Wholesale | $ | 1,185,595 | $ | 1,065,907 | $ | 119,688 | 11.2 | % | |||||||||||||||
Total Direct-to-Consumer | 582,103 | 424,168 | 157,935 | 37.2 | |||||||||||||||||||
Total | $ | 1,767,698 | $ | 1,490,075 | $ | 277,623 | 18.6 | % |
Six Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
Income (loss) from operations | |||||||||||||||||||||||
UGG brand wholesale | $ | 182,768 | $ | 142,748 | $ | 40,020 | 28.0 | % | |||||||||||||||
HOKA brand wholesale | 168,397 | 133,192 | 35,205 | 26.4 | |||||||||||||||||||
Teva brand wholesale | 8,590 | 15,230 | (6,640) | (43.6) | |||||||||||||||||||
Sanuk brand wholesale | 456 | 2,816 | (2,360) | (83.8) | |||||||||||||||||||
Other brands wholesale | 4,418 | 5,368 | (950) | (17.7) | |||||||||||||||||||
Direct-to-Consumer | 187,717 | 101,156 | 86,561 | 85.6 | |||||||||||||||||||
Unallocated overhead costs | (256,993) | (216,338) | (40,655) | (18.8) | |||||||||||||||||||
Total | $ | 295,353 | $ | 184,172 | $ | 111,181 | 60.4 | % |
Six Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Income tax expense | $ | 73,582 | $ | 39,547 | |||||||
Effective income tax rate | 23.3 | % | 21.3 | % |
Six Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 121,528 | $ | (236,846) | $ | 358,374 | 151.3 | % | |||||||||||||||
Net cash used in investing activities | (57,402) | (24,254) | (33,148) | (136.7) | |||||||||||||||||||
Net cash used in financing activities | (217,149) | (152,466) | (64,683) | (42.4) | |||||||||||||||||||
Effect of foreign currency exchange rates on cash and cash equivalents | (5,721) | (10,702) | 4,981 | 46.5 | |||||||||||||||||||
Net change in cash and cash equivalents | $ | (158,744) | $ | (424,268) | $ | 265,524 | 62.6 | % |
Total number of shares repurchased (3) | Weighted average price per share paid | Dollar value of shares repurchased (1) (2) | Dollar value of shares remaining for repurchase (3) (2) | |||||||||||||||||||||||
July 1 - July 31, 2023 | — | $ | — | $ | — | $ | 1,331,166 | |||||||||||||||||||
August 1 - August 31, 2023 | 183,651 | 547.61 | 100,569 | 1,230,597 | ||||||||||||||||||||||
September 1 - September 30, 2023 | 163,327 | 519.81 | 84,900 | 1,145,697 |
Name & Title | Adoption Date | Termination Date | Contract End Date | Aggregate Shares Covered (in ones) | ||||||||||
* | April 22, 2024 | |||||||||||||
* | August 25, 2024 |
Exhibit Number | Description of Exhibit | |||||||
*31.1 | ||||||||
*31.2 | ||||||||
**32.1 | ||||||||
*101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |||||||
*101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
*101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
*101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
*101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
*101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
*104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
DECKERS OUTDOOR CORPORATION (Registrant) | ||
/s/ STEVEN J. FASCHING | ||
Steven J. Fasching Chief Financial Officer (Principal Financial and Accounting Officer) |
/s/ DAVE POWERS | ||
Dave Powers Chief Executive Officer, President and Director Deckers Outdoor Corporation (Principal Executive Officer) |
/s/ STEVEN J. FASCHING | ||
Steven J. Fasching Chief Financial Officer Deckers Outdoor Corporation (Principal Financial and Accounting Officer) |
/s/ DAVE POWERS | ||||||||
Dave Powers | ||||||||
Chief Executive Officer, President and Director | ||||||||
Deckers Outdoor Corporation | ||||||||
(Principal Executive Officer) | ||||||||
/s/ STEVEN J. FASCHING | ||||||||
Steven J. Fasching | ||||||||
Chief Financial Officer | ||||||||
Deckers Outdoor Corporation | ||||||||
(Principal Financial and Accounting Officer) | ||||||||
Date: | November 2, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 45,511 | $ 32,504 |
Accumulated depreciation | 333,711 | 317,508 |
Accumulated amortization | $ 81,809 | $ 81,033 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 125,000,000 | 125,000,000 |
Common stock, issued shares (in shares) | 25,822,000 | 26,176,000 |
Common stock, outstanding shares (in shares) | 25,822,000 | 26,176,000 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement [Abstract] | ||||
Net sales | $ 1,091,907 | $ 875,614 | $ 1,767,698 | $ 1,490,075 |
Cost of sales | 508,888 | 453,693 | 838,255 | 773,402 |
Gross profit | 583,019 | 421,921 | 929,443 | 716,673 |
Selling, general, and administrative expenses | 358,402 | 294,090 | 634,090 | 532,501 |
Income from operations (Note 10) | 224,617 | 127,831 | 295,353 | 184,172 |
Interest income | (10,089) | (1,884) | (21,376) | (3,098) |
Interest expense | 1,011 | 1,038 | 2,016 | 2,090 |
Other income, net | (622) | (241) | (968) | (740) |
Total other income, net | (9,700) | (1,087) | (20,328) | (1,748) |
Income before income taxes | 234,317 | 128,918 | 315,681 | 185,920 |
Income tax expense (Note 4) | 55,770 | 27,394 | 73,582 | 39,547 |
Net income | 178,547 | 101,524 | 242,099 | 146,373 |
Other comprehensive loss, net of tax | ||||
Unrealized gain on cash flow hedges | 3,403 | 1,088 | 3,755 | 1,846 |
Foreign currency translation loss | (5,520) | (13,529) | (14,171) | (29,253) |
Total other comprehensive loss, net of tax | (2,117) | (12,441) | (10,416) | (27,407) |
Comprehensive income | $ 176,430 | $ 89,083 | $ 231,683 | $ 118,966 |
Net income per share | ||||
Basic (in dollars per share) | $ 6.86 | $ 3.83 | $ 9.28 | $ 5.49 |
Diluted (in dollars per share) | $ 6.82 | $ 3.80 | $ 9.22 | $ 5.46 |
Weighted-average common shares outstanding (Note 9) | ||||
Basic (in shares) | 26,031 | 26,517 | 26,098 | 26,646 |
Diluted (in shares) | 26,178 | 26,682 | 26,251 | 26,815 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
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Statement of Cash Flows [Abstract] | ||
Income tax refunds | $ 4 | $ 1,124 |
General |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
General | General The Company. Deckers Outdoor Corporation and its wholly owned subsidiaries (collectively, the Company) is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. The Company’s proprietary brands include the UGG, HOKA, Teva, Sanuk, and Koolaburra brands. The Company sells its products through quality domestic and international retailers, international distributors, and directly to its global consumers through its DTC business, which is comprised of its e-commerce websites and retail stores. Independent third-party contractors manufacture all of the Company’s products. A significant part of the UGG brand’s business has historically been seasonal, requiring the Company to build inventory levels during certain quarters in its fiscal year to support higher selling seasons, which has contributed to variation in its results from quarter to quarter. However, as the Company continues to take steps to diversify and expand its product offerings by creating more year-round styles, and as net sales of the HOKA brand, which generally occur more evenly throughout the year, continue to increase as a percentage of the Company’s aggregate net sales, the Company has seen, and expects to continue to see, the impact from seasonality decrease over time. Basis of Presentation. The unaudited condensed consolidated financial statements and accompanying notes thereto (referred to herein as condensed consolidated financial statements) as of September 30, 2023, and for the three and six months ended September 30, 2023 (the current period), and 2022 (the prior period) are prepared in accordance with generally accepted accounting principles in the US (US GAAP) for interim financial information pursuant to Rule 10-01 of Regulation S-X issued by the SEC. Accordingly, the condensed consolidated financial statements do not include all the information and disclosures required by US GAAP for annual financial statements and accompanying notes thereto. The condensed consolidated balance sheet as of March 31, 2023, is derived from the Company’s audited consolidated financial statements. In the opinion of management, the condensed consolidated financial statements include all normal and recurring entries necessary to fairly present the results of the interim periods presented but are not necessarily indicative of actual results to be achieved for full fiscal years or other interim periods. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (prior fiscal year), which was filed with the SEC on May 26, 2023 (2023 Annual Report). Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates. The preparation of the Company’s condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the amounts reported. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. In addition, the Company has considered the potential impact of macroeconomic factors, including inflation, foreign currency exchange rate volatility, changes in interest rates, changes in commodity pricing, changes in discretionary spending and recessionary concerns, on its business and operations. Although the full impact of these factors is unknown and cannot be reasonably estimated, the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of the reporting date. However, actual results could differ materially from these estimates and assumptions, which may result in material effects on the Company’s financial condition, results of operations, and liquidity. To the extent there are differences between these estimates and actual results, the Company’s condensed consolidated financial statements may be materially affected. Significant areas requiring the use of management estimates and assumptions relate to inventory write-downs; trade accounts receivable allowances, including variable consideration for net sales provided to customers, such as the sales return asset and liability; contract assets and liabilities; stock-based compensation; impairment assessments, including goodwill, other intangible assets, and long-lived assets; depreciation and amortization; income tax receivables and liabilities; uncertain tax positions; the fair value of financial instruments; the reasonably certain lease term; lease classification; and the Company’s incremental borrowing rate (IBR) utilized to measure its operating lease assets and lease liabilities. Foreign Currency Translation. The Company considers the US dollar as its functional currency. The Company’s wholly owned foreign subsidiaries have various assets and liabilities, primarily cash, receivables, and payables, which are denominated in currencies other than its functional currency. The Company remeasures these monetary assets and liabilities using the exchange rate at the end of the reporting period, which results in gains and losses that are recorded in selling, general, and administrative (SG&A) expenses in the condensed consolidated statements of comprehensive income as incurred. In addition, the Company translates assets and liabilities of subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at the end of the reporting period, which results in financial statement translation gains and losses recorded in other comprehensive income or loss (OCI) in the condensed consolidated statements of comprehensive income. Immaterial Correction. The supplemental cash flow disclosure includes the correction of an immaterial error to a previously presented amount within the “Operating leases” line item. The amount reported for the period ended September 30, 2022, has been corrected from $17,589 to $31,572. Management has evaluated this correction to its prior period financial statements from a quantitative and qualitative perspective and has concluded this change was not material to any prior annual or interim period. In addition, no other changes were made to the condensed consolidated financial statements as a result of this immaterial correction. Reportable Operating Segments. The Company’s six reportable operating segments include the worldwide wholesale operations of the UGG brand, HOKA brand, Teva brand, Sanuk brand, and Other brands (primarily consisting of the Koolaburra brand), as well as DTC (collectively, the Company’s reportable operating segments). Refer to Note 10, “Reportable Operating Segments,” for further information on the Company’s reportable operating segments. As announced during October 2023, the Company intends to divest the Sanuk brand as it focuses on allocating resources that best align with its long-term objectives. Recent Accounting Pronouncements. The Financial Accounting Standards Board has issued and Accounting Standards Update (ASU) that has recently been adopted by the Company and the following is a summary of its impact on the Company:
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Disaggregated Revenue. Refer to Note 10, “Reportable Operating Segments,” for further information on the Company’s disaggregation of revenue by reportable operating segment. Sales Return Asset and Liability. Sales returns are a refund asset for the right to recover the inventory and a refund liability for the stand-ready right of return. The refund asset for the right to recover the inventory is recorded in other current assets and the related refund liability is recorded in other accrued expenses in the condensed consolidated balance sheets. The following tables summarize changes in the estimated sales returns for the periods presented:
*Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual return rights and discretionary authorized returns. Contract Liabilities. Contract liabilities are recorded in other accrued expenses in the condensed consolidated balance sheets and include loyalty programs and other deferred revenue. Loyalty Programs. Activity during the six months ended September 30, 2023, and 2022, related to loyalty programs was as follows:
Deferred Revenue. Activity during the six months ended September 30, 2023, and 2022, related to deferred revenue was as follows:
Refer to Note 2, “Revenue Recognition,” in the Company’s consolidated financial statements in Part IV of the 2023 Annual Report for further information on the Company’s variable consideration accounting policies, including sales return asset and liability, as well as contract liabilities.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis. Refer to Note 4, “Fair Value Measurements,” in the Company’s consolidated financial statements in Part IV of the 2023 Annual Report for further information on the Company’s fair value accounting policies. Assets and liabilities that are measured on a recurring basis at fair value in the condensed consolidated balance sheets are as follows:
(1) Money-market funds are recorded in cash and cash equivalents in the condensed consolidated balance sheets. (2) As of September 30, 2023, the non-qualified deferred compensation asset of $9,409 is recorded in other assets in the condensed consolidated balance sheets, and of the $13,603 non-qualified deferred compensation liability, $615 is recorded in other accrued expenses and $12,988 is recorded in other long-term liabilities in the condensed consolidated balance sheets. As of March 31, 2023, the non-qualified deferred compensation asset of $8,399 is recorded in other assets in the condensed consolidated balance sheets, and of the $11,326 non-qualified deferred compensation liability, $737 is recorded in other accrued expenses and $10,589 is recorded in other long-term liabilities in the condensed consolidated balance sheets. (3) The fair value of Designated Derivative Contracts is determined using quoted forward spot rates at the end of the applicable reporting period from counterparties, which are corroborated by market-based pricing (Level 2). The fair values of assets associated with derivative instruments and hedging activities are recorded in other current assets in the condensed consolidated balance sheets. Refer to Note 7, “Derivative Instruments,” for further information, including the definition of the term Designated Derivative Contracts.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income tax expense and the effective income tax rate were as follows:
The tax provisions during the three and six months ended September 30, 2023, and 2022 were computed using the estimated effective income tax rate applicable to each of the domestic and foreign taxable jurisdictions for the fiscal years ending March 31, 2024 (current fiscal year), and March 31, 2023, respectively, and were adjusted for discrete items that occurred within the periods presented above. During the three and six months ended September 30, 2023, the net increase in the effective income tax rate, compared to the prior period, was primarily due to changes in the jurisdictional mix of worldwide income before income taxes, and slightly lower net discrete tax benefits.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies There were no material changes outside the ordinary course of business during the six months ended September 30, 2023, to the purchase obligations disclosed in the 2023 Annual Report. Refer to Note 7, “Commitments and Contingencies,” in the Company’s consolidated financial statements in Part IV of the 2023 Annual Report for further information on the Company’s contractual obligations and commitments. Leases. The Company primarily leases retail stores, showrooms, offices, and distribution facilities under operating lease contracts. Some of the Company’s operating leases contain extension options between to 15 years. Historically, the Company has not entered into finance leases and its lease agreements generally do not contain residual value guarantees, options to purchase underlying assets, or material restrictive covenants. Supplemental information for amounts presented in the condensed consolidated statements of cash flows related to operating leases, were as follows:
*Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements. Operating lease liabilities recorded in the condensed consolidated balance sheets exclude an aggregate of $29,935 of undiscounted minimum lease payments due pursuant to leases signed but not yet commenced. The excluded amount primarily relates to the lease for a new HOKA brand retail store in New York City that the Company entered into during the three months ended September 30, 2023. The Company expects the New York City store lease will be operational during the quarter ending December 31, 2023. Litigation. From time to time, the Company is involved in various legal proceedings, disputes, and other claims arising in the ordinary course of business, including employment, intellectual property, and product liability claims. Although the results of these matters cannot be predicted with certainty, the Company believes it is not currently a party to any legal proceedings, disputes, or other claims for which a material loss is considered probable and for which the amount (or range) of loss is reasonably estimable. However, regardless of the merit of the claims raised or the outcome, these matters can have an adverse impact on the Company as a result of legal costs, diversion of management’s time and resources, and other factors.
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Commitments and Contingencies | Commitments and Contingencies There were no material changes outside the ordinary course of business during the six months ended September 30, 2023, to the purchase obligations disclosed in the 2023 Annual Report. Refer to Note 7, “Commitments and Contingencies,” in the Company’s consolidated financial statements in Part IV of the 2023 Annual Report for further information on the Company’s contractual obligations and commitments. Leases. The Company primarily leases retail stores, showrooms, offices, and distribution facilities under operating lease contracts. Some of the Company’s operating leases contain extension options between to 15 years. Historically, the Company has not entered into finance leases and its lease agreements generally do not contain residual value guarantees, options to purchase underlying assets, or material restrictive covenants. Supplemental information for amounts presented in the condensed consolidated statements of cash flows related to operating leases, were as follows:
*Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements. Operating lease liabilities recorded in the condensed consolidated balance sheets exclude an aggregate of $29,935 of undiscounted minimum lease payments due pursuant to leases signed but not yet commenced. The excluded amount primarily relates to the lease for a new HOKA brand retail store in New York City that the Company entered into during the three months ended September 30, 2023. The Company expects the New York City store lease will be operational during the quarter ending December 31, 2023. Litigation. From time to time, the Company is involved in various legal proceedings, disputes, and other claims arising in the ordinary course of business, including employment, intellectual property, and product liability claims. Although the results of these matters cannot be predicted with certainty, the Company believes it is not currently a party to any legal proceedings, disputes, or other claims for which a material loss is considered probable and for which the amount (or range) of loss is reasonably estimable. However, regardless of the merit of the claims raised or the outcome, these matters can have an adverse impact on the Company as a result of legal costs, diversion of management’s time and resources, and other factors.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation From time to time, the Company grants various types of stock-based compensation under the 2015 Stock Incentive Plan (2015 SIP), including time-based restricted stock units (RSUs), performance-based restricted stock units (PSUs), and long-term incentive plan PSUs (LTIP PSUs), to key personnel, including employees and directors. During the six months ended September 30, 2023, no additional awards were granted under the 2015 SIP, with the exception of the RSU and LTIP PSU awards summarized below. Refer to Note 8, “Stock-Based Compensation,” of our consolidated financial statements in Part IV of our 2023 Annual Report for further information on previously granted awards under the 2015 SIP. Annual Awards. The Company granted the following awards under the 2015 SIP during the periods presented, which were recorded in the condensed consolidated statements of comprehensive income:
RSUs are subject to time-based vesting criteria and typically vest in equal annual installments over three years following the date of grant. Stock-based compensation is recorded net of estimated forfeitures in SG&A expenses in the condensed consolidated statements of comprehensive income. Future unrecognized stock-based compensation for annual awards, including RSUs outstanding, as of September 30, 2023, was $26,151. Long-Term Incentive Plan Awards. During the six months ended September 30, 2023, the Company approved awards under the 2015 SIP for the issuance of PSUs (2024 LTIP PSUs), which were awarded to certain members of the Company’s management team, including the Company’s named executive officers and vice presidents. The 2024 LTIP PSUs are subject to vesting based on service conditions over three years. The Company must meet certain revenue and pre-tax income performance targets individually over 36-month reporting periods for the fiscal years ending March 31, 2024, 2025, and 2026 (collectively, the Measurement Periods). The 2024 LTIP PSUs incorporate a relative total stockholder return (TSR) modifier for the 36-month performance period (commencing April 1, 2023) ending March 31, 2026 (collectively, the Performance Periods). To the extent financial performance is achieved above the threshold levels for each of these performance criteria, the number of 2024 LTIP PSUs that vest will increase up to a maximum of 200% of the targeted amount for that award. No vesting of any portion of the 2024 LTIP PSUs will occur if the Company fails to achieve the pre-established minimum revenue and pre-tax income amounts for each reporting period. Following the determination of the Company’s achievement with respect to the revenue and pre-tax income criteria for the Measurement Periods, the vesting of each 2024 LTIP PSU will be subject to adjustment based on the application of the TSR modifier. The amount of the adjustment will be determined based on a comparison of the Company’s TSR relative to the TSR of a pre-determined set of peer group companies for the Performance Periods. A Monte-Carlo simulation model was used to determine the grant date fair value by simulating a range of possible future stock prices for the Company and each member of the peer group over the Performance Periods. The Company granted awards of 20,846 2024 LTIP PSUs at the target performance level during the six months ended September 30, 2023. The weighted-average grant date fair value per share of these 2024 LTIP PSUs was $633.91. Based on the Company’s current long-range forecast, the Company determined that the achievement of at least the minimum threshold target performance criteria was probable as of September 30, 2023. Future unrecognized stock-based compensation for the current performance attainment level of all LTIP PSUs outstanding as of September 30, 2023, including the 2024 LTIP PSUs discussed above, the 2023 LTIP PSUs, and the 2022 LTIP PSUs, is $26,047.
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments The Company enters into foreign currency forward or option contracts (derivative contracts) with maturities of 15 months or less to manage foreign currency risk and certain of these derivative contracts are designated as cash flow hedges of forecasted sales (Designated Derivative Contracts). The Company also enters into derivative contracts that are not designated as cash flow hedges (Non-Designated Derivative Contracts), to offset a portion of the anticipated gains and losses on certain intercompany balances until the expected time of repayment. The Company does not use derivative contracts for trading purposes. The after-tax unrealized gains or losses from changes in fair value of Designated Derivative Contracts is recorded as a component of accumulated other comprehensive loss (AOCL) and are reclassified to net sales in the condensed consolidated statements of comprehensive income in the same period or periods as the related sales are recognized. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and the accumulated gains or losses in AOCL related to the hedging relationship are immediately recorded in OCI in the condensed consolidated statements of comprehensive income. The Company includes all hedge components in its assessment of effectiveness for its derivative contracts. Changes in the fair value of Non-Designated Derivative Contracts are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income. The changes in fair value for these contracts are offset by the remeasurement gains or losses associated with the underlying foreign currency-denominated intercompany balances, which are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income. As of September 30, 2023, the Company has the following Designated Derivative Contracts recorded at fair value in the condensed consolidated balance sheets:
As of September 30, 2023, three counterparties hold the Company’s outstanding derivative contracts, all of which are expected to mature in the next six months. As of March 31, 2023, the Company had no outstanding derivative contracts. The following table summarizes the effect of Designated Derivative Contracts and the related income tax effects of unrealized gains or losses recorded in the condensed consolidated statements of comprehensive income for changes in AOCL:
There was no gain or loss for Non-Designated Derivative Contracts recorded during the three and six months ended September 30, 2023; and there was a $1,836 and $1,916 gain recorded in SG&A expenses in the condensed consolidated statements of comprehensive income during the three and six months ended September 30, 2022, respectively. The non-performance risk of the Company and its counterparties did not have a material impact on the fair value of its derivative contracts. As of September 30, 2023, the amount of unrealized gains on derivative contracts recorded in AOCL is expected to be reclassified into net sales within the next six months. Refer to Note 8, “Stockholders’ Equity,” for further information on the components of AOCL.
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Stockholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Stock Repurchase Program. The Company’s Board of Directors has approved various authorizations under the Company’s stock repurchase program to repurchase shares of its common stock in the open market or in privately negotiated transactions (stock repurchase program). As of September 30, 2023, the aggregate remaining approved amount under the stock repurchase program is $1,145,697. The stock repurchase program does not obligate the Company to acquire any amount of common stock and may be suspended at any time at the Company’s discretion. Stock repurchase activity under the Company’s stock repurchase program was as follows:
(1) The dollar value of shares repurchased excludes the cost of broker commissions, excise taxes, and other costs. (2) May not calculate on rounded dollars. (3) All share repurchases were made pursuant to the Company’s stock repurchase program in open-market transactions. Subsequent to September 30, 2023, through October 12, 2023, the Company repurchased 88,928 shares in open-market transactions for $44,941 at a weighted average price per share paid of $505.36 and had an aggregate authorized amount of $1,100,756 remaining under the stock repurchase program. Accumulated Other Comprehensive Loss. The components within AOCL, net of tax, recorded in the condensed consolidated balance sheets are as follows:
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Basic and Diluted Shares |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Shares | Basic and Diluted Shares The reconciliation of basic to diluted weighted-average common shares outstanding was as follows:
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Reportable Operating Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Operating Segments | Reportable Operating Segments Information reported to the Chief Operating Decision Maker (CODM), who is the Company’s Chief Executive Officer (CEO), President, and Principal Executive Officer (PEO), is organized into the Company’s six reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources. The Company does not consider international operations to be a separate reportable operating segment, and the CODM reviews such operations in the aggregate with the reportable operating segments. Segment Net Sales and Income from Operations. The Company evaluates reportable operating segment performance primarily based on net sales and income (loss) from operations. The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations of each of the reportable operating segments includes only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, research and development, design, sales and marketing, depreciation, amortization, and the direct costs of employees within those reportable operating segments. The Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments, which include unallocable overhead costs associated with the Company’s warehouses and DCs, certain executive and stock-based compensation, accounting, finance, legal, information technology (IT), human resources, and facilities, among others. Inter-segment sales from the Company’s wholesale reportable operating segments to the DTC reportable operating segment are at the Company’s cost, and there is no inter-segment profit on these inter-segment sales, nor are they reflected in income (loss) from operations of the wholesale reportable operating segments as these transactions are eliminated in consolidation. Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:
Segment Assets. Assets allocated to each reportable operating segment include trade accounts receivable, net, inventories, property and equipment, net, operating lease assets, goodwill, other intangible assets, net, and certain other assets that are specifically identifiable for one of the Company’s reportable operating segments. Unallocated assets are those assets not directly related to a specific reportable operating segment and generally include cash and cash equivalents, deferred tax assets, net, and various other corporate assets shared by the Company’s reportable operating segments. Assets allocated to each reportable operating segment, with a reconciliation to the condensed consolidated balance sheets, are as follows:
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Concentration of Business |
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Business | Concentration of Business Regions and Customers. The Company sells its products globally to customers and consumers in various countries, with net sales concentrations as follows:
For the three and six months ended September 30, 2023, and 2022, no single foreign country comprised 10.0% or more of the Company’s total net sales. For the three months ended September 30, 2023, no single global customer accounted for 10.0% or more of the Company’s net sales, compared to one single global customer for the three months ended September 30, 2022. For the six months ended September 30, 2023, and 2022, no single global customer accounted for 10.0% or more of the Company’s net sales. As of September 30, 2023, the Company has two customers that represent 24.0% of trade accounts receivable, net, compared to no customers that represent 10.0% of trade accounts receivable, net, as of March 31, 2023. Management performs regular evaluations concerning the ability of the Company’s customers to satisfy their obligations to the Company and recognizes an allowance for doubtful accounts based on these evaluations. Cash and Cash Equivalents. The Company maintains a portion of its cash in Federal Deposit Insurance Corporation (FDIC) insured bank deposit accounts which, at times, may exceed federally insured limits. To date, the Company has not experienced any losses in such accounts. The Company does not believe, based on the size and strength of the banking institutions used, it is exposed to any significant credit risks in cash. Suppliers. The Company’s production is concentrated at a limited number of independent manufacturing factories, primarily in Asia. Sheepskin is the principal raw material for certain UGG brand products and most of the Company's sheepskin is purchased from two tanneries in China, which is sourced primarily from Australia and the United Kingdom (UK). Long-Lived Assets. Long-lived assets, which consist of property and equipment, net, recorded in the condensed consolidated balance sheets, are as follows:
*No single foreign country’s property and equipment, net, represents 10.0% or more of the Company’s total property and equipment, net, as of September 30, 2023, and March 31, 2023.
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Supplier Finance Program |
6 Months Ended |
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Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | Supplier Finance Program The Company has a voluntary SFP administered through a third-party platform that provides the Company’s independent manufacturers and suppliers of inventory (inventory suppliers) the opportunity to sell their receivables due from the Company to participating financial institutions in advance of the invoice due date, at the sole discretion of both inventory suppliers and the financial institutions. The Company is not party to the agreements between these third parties and has no economic interest in an inventory suppliers’ decision to sell a receivable. The Company’s payment obligations, including the amounts due and payment terms, which generally do not exceed 90 days, are not impacted by the inventory suppliers’ election to participate in the SFP, and the Company provides no guarantees to any third parties under the SFP. Accordingly, amounts due to inventory suppliers that elected to participate in the SFP are presented in trade accounts payable in the condensed consolidated balance sheets. As of September 30, 2023, and March 31, 2023, the Company had $7,513 and $7,740, respectively, of balances outstanding related to the SFP recorded in trade accounts payable in the condensed consolidated balance sheets.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
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Sep. 30, 2023 |
Jun. 30, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||||
Net income | $ 178,547 | $ 63,552 | $ 101,524 | $ 44,849 | $ 242,099 | $ 146,373 |
Insider Trading Arrangements |
3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023
shares
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Sep. 30, 2023
shares
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Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Material Terms of Trading Arrangement | Set forth below is a summary of the adoption, modification, and termination activity of our directors and officers in respect of their Rule 10b5-1 trading plans during the three months ended September 30, 2023:
*Not applicable.
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Non-Rule 10b5-1 Arrangement Adopted | false | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Terminated | false | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Terminated | false | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dave Powers [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Dave Powers | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Chief Executive Officer, President, and Director | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | September 8, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 227 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 35,957 | 35,957 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stefano Caroti [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Stefano Caroti | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Chief Commercial Officer | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | September 6, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 354 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 14,725 | 14,725 |
General (Policies) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation. The unaudited condensed consolidated financial statements and accompanying notes thereto (referred to herein as condensed consolidated financial statements) as of September 30, 2023, and for the three and six months ended September 30, 2023 (the current period), and 2022 (the prior period) are prepared in accordance with generally accepted accounting principles in the US (US GAAP) for interim financial information pursuant to Rule 10-01 of Regulation S-X issued by the SEC. Accordingly, the condensed consolidated financial statements do not include all the information and disclosures required by US GAAP for annual financial statements and accompanying notes thereto. The condensed consolidated balance sheet as of March 31, 2023, is derived from the Company’s audited consolidated financial statements. In the opinion of management, the condensed consolidated financial statements include all normal and recurring entries necessary to fairly present the results of the interim periods presented but are not necessarily indicative of actual results to be achieved for full fiscal years or other interim periods. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (prior fiscal year), which was filed with the SEC on May 26, 2023 (2023 Annual Report). | |||||||||||||||||||||||||||||||||||||||||||||
Consolidation | Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | Use of Estimates. The preparation of the Company’s condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the amounts reported. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. In addition, the Company has considered the potential impact of macroeconomic factors, including inflation, foreign currency exchange rate volatility, changes in interest rates, changes in commodity pricing, changes in discretionary spending and recessionary concerns, on its business and operations. Although the full impact of these factors is unknown and cannot be reasonably estimated, the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of the reporting date. However, actual results could differ materially from these estimates and assumptions, which may result in material effects on the Company’s financial condition, results of operations, and liquidity. To the extent there are differences between these estimates and actual results, the Company’s condensed consolidated financial statements may be materially affected. Significant areas requiring the use of management estimates and assumptions relate to inventory write-downs; trade accounts receivable allowances, including variable consideration for net sales provided to customers, such as the sales return asset and liability; contract assets and liabilities; stock-based compensation; impairment assessments, including goodwill, other intangible assets, and long-lived assets; depreciation and amortization; income tax receivables and liabilities; uncertain tax positions; the fair value of financial instruments; the reasonably certain lease term; lease classification; and the Company’s incremental borrowing rate (IBR) utilized to measure its operating lease assets and lease liabilities. | |||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation | Foreign Currency Translation. The Company considers the US dollar as its functional currency. The Company’s wholly owned foreign subsidiaries have various assets and liabilities, primarily cash, receivables, and payables, which are denominated in currencies other than its functional currency. The Company remeasures these monetary assets and liabilities using the exchange rate at the end of the reporting period, which results in gains and losses that are recorded in selling, general, and administrative (SG&A) expenses in the condensed consolidated statements of comprehensive income as incurred. In addition, the Company translates assets and liabilities of subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at the end of the reporting period, which results in financial statement translation gains and losses recorded in other comprehensive income or loss (OCI) in the condensed consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||
Reportable Operating Segments | Reportable Operating Segments. The Company’s six reportable operating segments include the worldwide wholesale operations of the UGG brand, HOKA brand, Teva brand, Sanuk brand, and Other brands (primarily consisting of the Koolaburra brand), as well as DTC (collectively, the Company’s reportable operating segments). Information reported to the Chief Operating Decision Maker (CODM), who is the Company’s Chief Executive Officer (CEO), President, and Principal Executive Officer (PEO), is organized into the Company’s six reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources. The Company does not consider international operations to be a separate reportable operating segment, and the CODM reviews such operations in the aggregate with the reportable operating segments. Segment Net Sales and Income from Operations. The Company evaluates reportable operating segment performance primarily based on net sales and income (loss) from operations. The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations of each of the reportable operating segments includes only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, research and development, design, sales and marketing, depreciation, amortization, and the direct costs of employees within those reportable operating segments. The Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments, which include unallocable overhead costs associated with the Company’s warehouses and DCs, certain executive and stock-based compensation, accounting, finance, legal, information technology (IT), human resources, and facilities, among others. Inter-segment sales from the Company’s wholesale reportable operating segments to the DTC reportable operating segment are at the Company’s cost, and there is no inter-segment profit on these inter-segment sales, nor are they reflected in income (loss) from operations of the wholesale reportable operating segments as these transactions are eliminated in consolidation.Segment Assets. Assets allocated to each reportable operating segment include trade accounts receivable, net, inventories, property and equipment, net, operating lease assets, goodwill, other intangible assets, net, and certain other assets that are specifically identifiable for one of the Company’s reportable operating segments. Unallocated assets are those assets not directly related to a specific reportable operating segment and generally include cash and cash equivalents, deferred tax assets, net, and various other corporate assets shared by the Company’s reportable operating segments.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements. The Financial Accounting Standards Board has issued and Accounting Standards Update (ASU) that has recently been adopted by the Company and the following is a summary of its impact on the Company:
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Revenue Recognition | Disaggregated Revenue. Refer to Note 10, “Reportable Operating Segments,” for further information on the Company’s disaggregation of revenue by reportable operating segment. Sales Return Asset and Liability. Sales returns are a refund asset for the right to recover the inventory and a refund liability for the stand-ready right of return. The refund asset for the right to recover the inventory is recorded in other current assets and the related refund liability is recorded in other accrued expenses in the condensed consolidated balance sheets. Contract Liabilities. Contract liabilities are recorded in other accrued expenses in the condensed consolidated balance sheets and include loyalty programs and other deferred revenue.
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Stock-Based Compensation | From time to time, the Company grants various types of stock-based compensation under the 2015 Stock Incentive Plan (2015 SIP), including time-based restricted stock units (RSUs), performance-based restricted stock units (PSUs), and long-term incentive plan PSUs (LTIP PSUs), to key personnel, including employees and directors.RSUs are subject to time-based vesting criteria and typically vest in equal annual installments over three years following the date of grant.Stock-based compensation is recorded net of estimated forfeitures in SG&A expenses in the condensed consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives | The Company enters into foreign currency forward or option contracts (derivative contracts) with maturities of 15 months or less to manage foreign currency risk and certain of these derivative contracts are designated as cash flow hedges of forecasted sales (Designated Derivative Contracts). The Company also enters into derivative contracts that are not designated as cash flow hedges (Non-Designated Derivative Contracts), to offset a portion of the anticipated gains and losses on certain intercompany balances until the expected time of repayment. The Company does not use derivative contracts for trading purposes. The after-tax unrealized gains or losses from changes in fair value of Designated Derivative Contracts is recorded as a component of accumulated other comprehensive loss (AOCL) and are reclassified to net sales in the condensed consolidated statements of comprehensive income in the same period or periods as the related sales are recognized. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and the accumulated gains or losses in AOCL related to the hedging relationship are immediately recorded in OCI in the condensed consolidated statements of comprehensive income. The Company includes all hedge components in its assessment of effectiveness for its derivative contracts. Changes in the fair value of Non-Designated Derivative Contracts are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income. The changes in fair value for these contracts are offset by the remeasurement gains or losses associated with the underlying foreign currency-denominated intercompany balances, which are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income.
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Net Income Per Share | Excluded Awards. The equity awards excluded from the calculation of the dilutive effect have been excluded due to one of the following: (1) the shares were antidilutive; (2) the necessary conditions had not been satisfied for the shares to be deemed issuable based on the Company’s performance for the relevant performance period; or (3) the Company recorded a net loss during the period presented (such that inclusion of these equity awards in the calculation would have been antidilutive). The number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. For those awards subject to the achievement of performance criteria, the actual number of shares to be issued pursuant to such awards will be based on Company performance in future periods, net of forfeitures, and may be materially lower than the number of shares presented, which could result in a lower dilutive effect, respectively. | |||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company maintains a portion of its cash in Federal Deposit Insurance Corporation (FDIC) insured bank deposit accounts which, at times, may exceed federally insured limits. To date, the Company has not experienced any losses in such accounts. The Company does not believe, based on the size and strength of the banking institutions used, it is exposed to any significant credit risks in cash. | |||||||||||||||||||||||||||||||||||||||||||||
Supplier Finance Program | The Company has a voluntary SFP administered through a third-party platform that provides the Company’s independent manufacturers and suppliers of inventory (inventory suppliers) the opportunity to sell their receivables due from the Company to participating financial institutions in advance of the invoice due date, at the sole discretion of both inventory suppliers and the financial institutions. The Company is not party to the agreements between these third parties and has no economic interest in an inventory suppliers’ decision to sell a receivable. The Company’s payment obligations, including the amounts due and payment terms, which generally do not exceed 90 days, are not impacted by the inventory suppliers’ election to participate in the SFP, and the Company provides no guarantees to any third parties under the SFP. Accordingly, amounts due to inventory suppliers that elected to participate in the SFP are presented in trade accounts payable in the condensed consolidated balance sheets.
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General (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounting Pronouncements Not Yet Adopted | The Financial Accounting Standards Board has issued and Accounting Standards Update (ASU) that has recently been adopted by the Company and the following is a summary of its impact on the Company:
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Related to Estimated Sales Returns, Loyalty Program Activity and Deferred Revenue | The following tables summarize changes in the estimated sales returns for the periods presented:
*Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual return rights and discretionary authorized returns. Loyalty Programs. Activity during the six months ended September 30, 2023, and 2022, related to loyalty programs was as follows:
Deferred Revenue. Activity during the six months ended September 30, 2023, and 2022, related to deferred revenue was as follows:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities that are measured on a recurring basis at fair value in the condensed consolidated balance sheets are as follows:
(1) Money-market funds are recorded in cash and cash equivalents in the condensed consolidated balance sheets. (2) As of September 30, 2023, the non-qualified deferred compensation asset of $9,409 is recorded in other assets in the condensed consolidated balance sheets, and of the $13,603 non-qualified deferred compensation liability, $615 is recorded in other accrued expenses and $12,988 is recorded in other long-term liabilities in the condensed consolidated balance sheets. As of March 31, 2023, the non-qualified deferred compensation asset of $8,399 is recorded in other assets in the condensed consolidated balance sheets, and of the $11,326 non-qualified deferred compensation liability, $737 is recorded in other accrued expenses and $10,589 is recorded in other long-term liabilities in the condensed consolidated balance sheets. (3) The fair value of Designated Derivative Contracts is determined using quoted forward spot rates at the end of the applicable reporting period from counterparties, which are corroborated by market-based pricing (Level 2). The fair values of assets associated with derivative instruments and hedging activities are recorded in other current assets in the condensed consolidated balance sheets. Refer to Note 7, “Derivative Instruments,” for further information, including the definition of the term Designated Derivative Contracts.
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Income Taxes - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense and the effective income tax rate were as follows:
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Commitments and Contingencies - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Lease Information | Supplemental information for amounts presented in the condensed consolidated statements of cash flows related to operating leases, were as follows:
*Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements.
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Stock-Based Compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Stock Units Activity | The Company granted the following awards under the 2015 SIP during the periods presented, which were recorded in the condensed consolidated statements of comprehensive income:
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Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | As of September 30, 2023, the Company has the following Designated Derivative Contracts recorded at fair value in the condensed consolidated balance sheets:
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Schedule of Location and Amount of Gains and Losses Related to Derivatives Designated as Hedging Instruments | The following table summarizes the effect of Designated Derivative Contracts and the related income tax effects of unrealized gains or losses recorded in the condensed consolidated statements of comprehensive income for changes in AOCL:
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Stockholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Repurchases | Stock repurchase activity under the Company’s stock repurchase program was as follows:
(1) The dollar value of shares repurchased excludes the cost of broker commissions, excise taxes, and other costs. (2) May not calculate on rounded dollars. (3) All share repurchases were made pursuant to the Company’s stock repurchase program in open-market transactions.
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Components of Accumulated Other Comprehensive Loss | The components within AOCL, net of tax, recorded in the condensed consolidated balance sheets are as follows:
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Basic and Diluted Shares (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | The reconciliation of basic to diluted weighted-average common shares outstanding was as follows:
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Reportable Operating Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Segments Information | Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:
Assets allocated to each reportable operating segment, with a reconciliation to the condensed consolidated balance sheets, are as follows:
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Concentration of Business (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue Concentration of Risk | The Company sells its products globally to customers and consumers in various countries, with net sales concentrations as follows:
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Schedule of Long-lived Assets | Long-lived assets, which consist of property and equipment, net, recorded in the condensed consolidated balance sheets, are as follows:
*No single foreign country’s property and equipment, net, represents 10.0% or more of the Company’s total property and equipment, net, as of September 30, 2023, and March 31, 2023.
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General - Narrative (Details) |
6 Months Ended |
---|---|
Sep. 30, 2023
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 6 |
Revenue Recognition - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Recovery Asset | ||
Beginning balance | $ 15,685 | $ 11,491 |
Net additions to sales return liability | 24,298 | 26,444 |
Actual returns | (24,192) | (24,378) |
Ending balance | 15,791 | 13,557 |
Contract Liability | ||
Beginning balance | (45,322) | (39,867) |
Net additions to sales return liability | (106,824) | (84,336) |
Actual returns | 97,969 | 82,497 |
Ending balance | $ (54,177) | $ (41,706) |
Revenue Recognition - Loyalty Programs (Details) - Loyalty Programs - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
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Contract with Customer, Loyalty Program [Roll Forward] | ||
Beginning balance | $ (13,144) | $ (10,883) |
Redemptions and expirations for loyalty certificates and points recognized in net sales | 10,022 | 9,585 |
Deferred revenue for loyalty points and certificates issued | (11,269) | (10,106) |
Ending balance | $ (14,391) | $ (11,404) |
Revenue Recognition - Deferred Revenue (Details) - Wholesale - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
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Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ (13,448) | $ (15,804) |
Additions of customer cash payments | (33,089) | (31,503) |
Revenue recognized | 30,032 | 28,589 |
Ending balance | $ (16,505) | $ (18,718) |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 55,770 | $ 27,394 | $ 73,582 | $ 39,547 |
Effective income tax rate | 23.80% | 21.20% | 23.30% | 21.30% |
Commitments and Contingencies - Narrative (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Lessee, Lease, Description [Line Items] | |
Undiscounted minimum lease payments | $ 29,935 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease renewal term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease renewal term (in years) | 15 years |
Commitments and Contingencies - Schedule of Supplemental Lease Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease assets obtained in exchange for lease liabilities | $ 13,152 | $ 7,002 | $ 34,739 | $ 13,209 |
Reductions to operating lease assets for reductions to lease liabilities | $ (7,606) | $ (132) | $ (7,671) | $ (408) |
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
PSUs | Stock Incentive Plan 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issued (in shares) | 0 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock compensation expense | $ 26,151 | |
RSUs | Stock Incentive Plan 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issued (in shares) | 35,371 | 47,545 |
Award vesting period (in years) | 3 years |
Stock-Based Compensation - Annual Awards (Details) - RSUs - Stock Incentive Plan 2015 - $ / shares |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 35,371 | 47,545 |
Weighted-average grant date fair value (in dollars per share) | $ 549.90 | $ 334.74 |
Stock-Based Compensation - Long-Term Incentive Plan Awards (Details) - LTIP PSUs $ / shares in Units, $ in Thousands |
6 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock compensation expense | $ | $ 26,047 |
2024 | Stock Incentive Plan 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award requisite service period (in months) | 36 months |
Issued (in shares) | shares | 20,846 |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 633.91 |
2024 | Maximum | Stock Incentive Plan 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 3 years |
Award vesting rights percentage | 200.00% |
Stockholders' Equity - Stock Repurchase Programs (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Stockholders' Equity Note [Abstract] | ||||||
Dollar value of shares that may yet be repurchased, excluding excise taxes | $ 1,145,697 | $ 1,145,697 | ||||
Dollar value of shares repurchased | $ 185,469 | $ 25,469 | $ 50,247 | $ 99,993 | $ 210,938 | $ 150,240 |
Total number of shares repurchased (in shares) | 399,388 | 557,675 | ||||
Weighted average price paid per share (in dollars per share) | $ 528.15 | $ 269.41 | $ 528.15 | $ 269.41 |
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Oct. 12, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Class of Stock [Line Items] | |||||||
Dollar value of shares that may yet be repurchased, excluding excise taxes | $ 1,145,697 | $ 1,145,697 | |||||
Shares repurchased (in shares) | 399,388 | 557,675 | |||||
Weighted average price paid per share (in dollars per share) | $ 528.15 | $ 269.41 | $ 528.15 | $ 269.41 | |||
Dollar value of shares repurchased | $ 185,469 | $ 25,469 | $ 50,247 | $ 99,993 | $ 210,938 | $ 150,240 | |
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Dollar value of shares that may yet be repurchased, excluding excise taxes | $ 1,100,756 | ||||||
Shares repurchased (in shares) | 88,928 | ||||||
Weighted average price paid per share (in dollars per share) | $ 505.36 | ||||||
Dollar value of shares repurchased | $ 44,941 |
Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Stockholders' Equity Note [Abstract] | ||
Unrealized gain on cash flow hedges | $ 3,755 | $ 0 |
Cumulative foreign currency translation loss | (53,206) | (39,035) |
Total | $ (49,451) | $ (39,035) |
Supplier Finance Program (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
Supplier finance programs, current portion | $ 7,513 | $ 7,740 |
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