Acquisitions (Tables)

12 Months Ended

Feb. 28, 2025

Schedule of Fair Values of Assets Acquired and Liabilities Assumed in Acquisition

The following table presents the preliminary estimated fair values of assets acquired and liabilities assumed at the acquisition date:


(in thousands)
Assets:
Receivables	$	13,059
Inventory	16,021
Prepaid expenses and other current assets	4,798
Property and equipment	1,490
Goodwill	154,839
Trade names - definite	51,000
Customer relationships - definite	8,000
Other intangible assets - definite	1,600
Other assets	275
Total assets	251,082
Liabilities:
Accounts payable	6,514
Accrued expenses and other current liabilities	12,840
Other liabilities, non-current	2,300
Total liabilities	21,654
Net assets recorded	$	229,428

The following table presents the estimated fair values of assets acquired and liabilities assumed at the acquisition date:


(in thousands)
Assets:
Receivables	$	4,211
Inventory	7,890
Prepaid expenses and other current assets	119
Property and equipment	212
Goodwill	117,108
Trade names - definite	21,000
Customer relationships - definite	12,000
Deferred tax assets, net	360
Total assets	162,900
Liabilities:
Accounts payable	1,401
Accrued expenses and other current liabilities	2,813
Income taxes payable	2,572
Deferred tax liabilities, net	8,187
Total liabilities	14,973
Net assets recorded	$	147,927

Schedule of Supplemental Pro Forma Impact on Consolidated Condensed Statements of Income

The impact of the acquisition of Olive & June on our consolidated statement of income for fiscal 2025 is as follows:


December 16, 2024 (acquisition date) through February 28, 2025 (in thousands, except earnings per share data)	Fiscal Year Ended February 28, 2025 (1)
Sales revenue, net	$	23,010
Net loss	(1,755)

EPS:
Basic	$	(0.08)
Diluted	(0.08)

(1)Represents approximately eleven weeks of operating results from Olive & June, acquired December 16, 2024. Net loss and EPS amounts include acquisition-related expenses, share-based compensation expense, amortization expense, interest expense and income tax expense.

The following supplemental unaudited pro forma information presents our financial results as if the acquisition of Olive & June had occurred on March 1, 2023. This supplemental pro forma information has been prepared for comparative purposes and does not necessarily indicate what may have occurred if the acquisition had been completed on March 1, 2023, and this information is not intended to be indicative of future results:


	Fiscal Years Ended the Last Day of February,
(in thousands, except earnings per share data)	2025 (1)		2024
Sales revenue, net	$	1,980,423	$	2,080,566
Net income	123,883		176,893

EPS:
Basic	$	5.38	$	7.41
Diluted	5.37		7.38

(1)Pro forma net income and EPS amounts for fiscal 2025 include acquisition-related expenses incurred by Olive & June and the Company of $8.9 million and $3.0 million, respectively, amortization expense of $4.7 million, and interest expense of $2.4 million.

The impact of the acquisition of Curlsmith on our consolidated statement of income for fiscal 2023 was as follows:


April 22, 2022 (acquisition date) through February 28, 2023 (in thousands, except earnings per share data)	Fiscal Year Ended February 28, 2023 (1)
Sales revenue, net	$	35,530
Net income	2,906

EPS:
Basic	$	0.12
Diluted	0.12

(1)Represents approximately forty-five weeks of operating results from Curlsmith, acquired April 22, 2022. Net income and EPS amounts include allocations for corporate expenses, interest expense and income tax expense.

The following supplemental unaudited pro forma information presents our financial results as if the acquisition of Curlsmith had occurred on March 1, 2021. This supplemental pro forma information has been prepared for comparative purposes and does not necessarily indicate what may have occurred if the acquisition had been completed on March 1, 2021, and this information is not intended to be indicative of future results:


(in thousands, except earnings per share data)	Fiscal Year Ended February 28, 2023
Sales revenue, net	$	2,079,759
Net income	145,186

EPS:
Basic	$	6.06
Diluted	6.03