REPORTABLE OPERATING SEGMENTS (Tables)

3 Months Ended

Jun. 30, 2025

Schedule of Operating Segment Information

Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:


Three Months Ended June 30, 2025	HOKA			UGG			Other Brands			Total
Net sales	$	653,119		$	265,092		$	46,327		$	964,538
Less: Cost of sales (1)	276,172			125,768			24,692			426,632
Segment gross profit	376,947			139,324			21,635			537,906
Segment gross margin	57.7		%	52.6		%	46.7		%	55.8		%
Less: (1)
Payroll and related costs	28,508			32,865			4,532			65,905
Advertising, marketing, and promotion expenses	55,988			19,568			6,208			81,764
Rent and occupancy	9,046			17,217			38			26,301
Depreciation and other related costs (2)	1,473			2,957			39			4,469
Other segment items (3)	28,404			12,734			3,065			44,203
Segment SG&A expenses	123,419			85,341			13,882			222,642
Segment income from operations	$	253,528		$	53,983		$	7,753		$	315,264
Segment operating margin (4)	38.8		%	20.4		%	16.7		%	32.7		%


Three Months Ended June 30, 2024	HOKA			UGG			Other Brands			Total
Net sales	$	545,178		$	222,951		$	57,218		$	825,347
Less: Cost of sales (1)	221,513			103,692			30,142			355,347
Segment gross profit	323,665			119,259			27,076			470,000
Segment gross margin	59.4		%	53.5		%	47.3		%	56.9		%
Less: (1)
Payroll and related costs	20,729			28,420			4,194			53,343
Advertising, marketing, and promotion expenses	45,303			15,860			7,323			68,486
Rent and occupancy	5,767			15,186			189			21,142
Depreciation and other related costs (2)	1,055			2,404			308			3,767
Other segment items (3)	19,893			11,503			2,376			33,772
Segment SG&A expenses	92,747			73,373			14,390			180,510
Segment income from operations	$	230,918		$	45,886		$	12,686		$	289,490
Segment operating margin (4)	42.4		%	20.6		%	22.2		%	35.1		%

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2) Depreciation and other related costs generally includes depreciation of property and equipment, amortization and impairment of intangible assets or other long-lived assets, accretion, and loss on disposal of assets.

(3) Other segment items are comprised of other SG&A expenses, which primarily include IT expenses, certain 3PL service fees, contract service fees, travel, materials and supplies, credit card fees, and commissions.

(4) Operating margin is defined as income from operations divided by net sales.

Schedule of Reconciliation of Reportable Segment Income from Segments to Consolidated

A reconciliation of reportable segment income from operations to condensed consolidated statements of comprehensive income was as follows:


	Three Months Ended June 30,
	2025		2024
Segment income from operations	$	315,264	$	289,490
Unallocated enterprise and shared brand expenses (1)	(149,977)		(156,683)
Total other income, net	17,779		16,346
Consolidated income before income taxes	$	183,066	$	149,153

(1) The change in reportable operating segments had an impact on segment income from operations, a measure of segment profitability, and a clarification was made that certain prior unallocated overhead costs are defined as unallocated enterprise and shared brand expenses and are excluded from the measure of segment profitability.