v3.25.1
Segment and Geographic Information
 12 Months Ended
Feb. 28, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information
Note 17 - Segment and Geographic Information

Segment Information

We operate through two strategic business divisions, each comprised of operating segments organized by our brands and product lines. Operating segments with similar economic and qualitative characteristics are aggregated into our two reportable segments, which align with our strategic business divisions. Our two reportable segments consist of Home & Outdoor and Beauty & Wellness. The Olive & June and Curlsmith brands and products were added to the Beauty & Wellness segment upon the completion of the acquisitions. For additional information on our segments refer to Note 1 and Item 1., “Business,” included within this Annual Report.

Segment financial information is prepared in accordance with GAAP and our significant accounting policies described in Note 1. Resources are allocated and performance is assessed using segment operating income by our Chief Executive Officer, whom we have determined to be our Chief Operating Decision Maker (“CODM”). Our CODM utilizes segment operating income when making decisions about allocating capital and personnel to the segments, predominantly in the annual budget and quarterly forecasting processes. In addition, our CODM uses operating income, including comparison of actual results to budget and forecast, in assessing the performance of each segment and in evaluating product pricing, distribution strategies and marketing investments. Our CODM reviews balance sheet information at a consolidated level. We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A, asset impairment charges and restructuring charges. The SG&A used to compute each segment’s operating income is directly associated with the segment, plus shared services and corporate overhead expenses that are allocable to the segment. We do not allocate non-operating income and expense, including interest or income taxes, to operating segments.

The following tables summarize reportable segment information with a reconciliation to our consolidated results for the periods presented:
Fiscal Year Ended February 28, 2025
(in thousands)
Home & Outdoor
Beauty &
Wellness (1)(2)
Total
Sales revenue, net$906,331 $1,001,334 $1,907,665 
Less: (3)
Cost of goods sold
431,924 561,335 993,259 
Operating expense (4)
354,806 416,852 771,658 
Operating income
$119,601 $23,147 $142,748 
Non-operating income, net
838 
Interest expense
51,922 
Income before income tax
$91,664 
Fiscal Year Ended February 29, 2024
(in thousands)
Home & Outdoor
Beauty &
Wellness (2)
Total
Sales revenue, net$916,381 $1,088,669 $2,005,050 
Less: (3)
Cost of goods sold
440,737 615,653 1,056,390 
Operating expense (4)
332,912 355,159 688,071 
Operating income
$142,732 $117,857 $260,589 
Non-operating income, net
1,518 
Interest expense
53,065 
Income before income tax
$209,042 
Fiscal Year Ended February 28, 2023
(in thousands)
Home & Outdoor
Beauty &
Wellness (2)
Total
Sales revenue, net$915,685 $1,156,982 $2,072,667 
Less: (3)
Cost of goods sold
470,070 703,246 1,173,316 
Operating expense (4)
311,562 375,998 687,560 
Operating income
$134,053 $77,738 $211,791 
Non-operating income, net
249 
Interest expense
40,751 
Income before income tax
$171,289 
(1)Fiscal 2025 includes approximately eleven weeks of operating results from Olive & June, acquired on December 16, 2024. For additional information see Note 6.
(2)Fiscal 2025 and 2024 include a full year of operating results from Curlsmith, acquired on April 22, 2022, compared to approximately forty-five weeks of operating results in fiscal 2023. For additional information see Note 6.
(3)These significant expense categories and amounts align with the reportable segment information that is regularly provided to the CODM.
(4)Operating expense for both reportable segments includes SG&A expense and restructuring charges. Fiscal 2025 operating expense also includes asset impairment charges of $51.5 million in our Beauty & Wellness segment. See Note 11 for further information on our global restructuring plan and Note 7 for further information on the asset impairment charges.

The following tables summarize reportable segment information for the periods presented:
Fiscal Year Ended February 28, 2025
(in thousands)
Home & Outdoor
Beauty &
Wellness (1)(2)
Total
Capital and intangible asset expenditures$14,275 $15,797 $30,072 
Depreciation and amortization26,088 28,960 55,048 
Non-cash share-based compensation
10,402 10,974 21,376 
Asset impairment charges
— 51,455 51,455 
Fiscal Year Ended February 29, 2024
(in thousands)
Home & Outdoor
Beauty &
Wellness (2)
Total
Capital and intangible asset expenditures$28,012 $8,632 $36,644 
Depreciation and amortization24,595 26,904 51,499 
Non-cash share-based compensation
16,319 17,553 33,872 
Fiscal Year Ended February 28, 2023
(in thousands)
Home & Outdoor
Beauty &
Wellness (2)
Total
Capital and intangible asset expenditures$159,183 $15,681 $174,864 
Depreciation and amortization18,364 26,319 44,683 
Non-cash share-based compensation
10,751 16,002 26,753 
(1)Fiscal 2025 includes approximately eleven weeks of operating results from Olive & June, acquired on December 16, 2024. For additional information see Note 6.
(2)Fiscal 2025 and 2024 include a full year of operating results from Curlsmith, acquired on April 22, 2022, compared to approximately forty-five weeks of operating results in fiscal 2023. For additional information see Note 6.
Geographic Information

The following table presents net sales revenue by geographic region, in U.S. Dollars. Net sales are attributed to countries based on the customer's location.

 Fiscal Years Ended Last Day of February,
(in thousands)202520242023
U.S.$1,356,750 71.1 %$1,478,134 73.7 %$1,538,852 74.2 %
Canada82,501 4.3 %82,122 4.1 %108,416 5.2 %
EMEA294,954 15.5 %284,434 14.2 %268,153 13.0 %
Asia Pacific125,426 6.6 %116,157 5.8 %115,626 5.6 %
Latin America48,034 2.5 %44,203 2.2 %41,620 2.0 %
Total sales revenue, net$1,907,665 100.0 %$2,005,050 100.0 %$2,072,667 100.0 %

Worldwide sales to our largest customer, Amazon.com Inc., accounted for approximately 22%, 21% and 17% of our consolidated net sales revenue in fiscal 2025, 2024 and 2023, respectively. Sales to our second largest customer, Walmart, Inc., including its worldwide affiliates, accounted for approximately 11%, 9% and 10% of our consolidated net sales revenue in fiscal 2025, 2024, and 2023, respectively. Sales to our third largest customer, Target Corporation, accounted for approximately 11% of our consolidated net sales revenue in fiscal 2025 and 10% in both fiscal 2024 and 2023. Sales to these largest customers include sales across both of our business segments. No other customers accounted for 10% or more of consolidated net sales revenue during these fiscal years. Sales to our top five customers accounted for approximately 49%, 47% and 43% of our consolidated net sales revenue in fiscal 2025, 2024 and 2023, respectively.

Our U.S. and international long-lived assets were as follows:

 Fiscal Years Ended Last Day of February,
(in thousands)202520242023
U.S.$342,033 $344,361 $357,577 
International23,059 28,247 32,967 
Total$365,092 $372,608 $390,544 
The table above classifies assets based upon the country where they are physically located. Long-lived assets included in the table above include property and equipment and operating lease assets.