Concentration of Business

6 Months Ended

Sep. 30, 2023

Regions and Customers. The Company sells its products globally to customers and consumers in various countries, with net sales concentrations as follows:


	Three Months Ended September 30,						Six Months Ended September 30,
	2023			2022			2023			2022
International net sales	$	343,874		$	257,905		$	600,130		$	487,851
% of net sales	31.5		%	29.5		%	33.9		%	32.7		%
Net sales in foreign currencies	$	292,344		$	193,130		$	441,315		$	302,071
% of net sales	26.8		%	22.1		%	25.0		%	20.3		%
Ten largest global customers as % of net sales	33.6		%	40.1		%	27.9		%	30.1		%

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:


	September 30, 2023		March 31, 2023
United States	$	270,047	$	244,529
Foreign*	25,165		22,150
Total	$	295,212	$	266,679

*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.