v3.25.2
Segment and Geographic Information
 3 Months Ended
May 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information
Note 14 - 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. For additional information on our segments refer to Note 1.

Segment financial information is prepared in accordance with GAAP and our significant accounting policies described in Note 1 of our Form 10-K. 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 condensed consolidated results for the periods presented:
Three Months Ended May 31, 2025
(in thousands)Home & Outdoor
Beauty & Wellness (1)
Total
Sales revenue, net$177,983 $193,672 $371,655 
Less: (2)
Cost of goods sold89,893 106,751 196,644 
Operating expense (3)
301,883 280,166 582,049 
Operating loss
$(213,793)$(193,245)$(407,038)
Non-operating income, net308 
Interest expense13,808 
Loss before income tax
$(420,538)

Three Months Ended May 31, 2024
(in thousands)Home & OutdoorBeauty & WellnessTotal
Sales revenue, net$198,459 $218,388 $416,847 
Less: (2)
Cost of goods sold94,226 119,542 213,768 
Operating expense (3)
88,383 83,933 172,316 
Operating income$15,850 $14,913 $30,763 
Non-operating income, net100 
Interest expense12,543 
Income before income tax$18,320 
(1)Fiscal 2026 includes a full quarter of operating results from Olive & June, acquired on December 16, 2024. For additional information see Note 4.
(2)These significant expense categories and amounts align with the reportable segment information that is regularly provided to the CODM.
(3)Operating expense for both reportable segments includes SG&A expense. Fiscal 2026 operating expense also includes asset impairment charges of $414.4 million, of which $219.1 million and $195.3 million was recognized in our Home & Outdoor and Beauty & Wellness segments, respectively. Fiscal 2025 operating expense also includes restructuring charges. See Note 5 for further information on the asset impairment charges and Note 8 for further information on our global restructuring plan.

The following tables summarize reportable segment information for the periods presented:
Three Months Ended May 31, 2025
(in thousands)Home & Outdoor
Beauty & Wellness (1)
Total
Capital and intangible asset expenditures$6,983 $6,379 $13,362 
Depreciation and amortization6,559 7,525 14,084 
Non-cash share-based compensation34 262 296 
Asset impairment charges
219,095 195,290 414,385 
Three Months Ended May 31, 2024
(in thousands)Home & Outdoor
Beauty & Wellness
Total
Capital and intangible asset expenditures$5,745 $3,397 $9,142 
Depreciation and amortization6,647 7,189 13,836 
Non-cash share-based compensation3,013 2,820 5,833 
(1)Fiscal 2026 includes a full quarter of operating results from Olive & June, acquired on December 16, 2024. For additional information see Note 4.

Geographic Information

The following table presents net sales revenue by geographic region, in U.S. Dollars:
Three Months Ended May 31,
(in thousands)20252024
Domestic sales revenue, net (1)
$277,960 74.8 %$300,680 72.1 %
International sales revenue, net93,695 25.2 %116,167 27.9 %
Total sales revenue, net$371,655 100.0 %$416,847 100.0 %
(1)Domestic net sales revenue includes net sales revenue from the U.S. and Canada.