v3.26.1
LEASES
 12 Months Ended
Mar. 31, 2026
Leases [Abstract]  
LEASES
NOTE 4. LEASES
The Company enters into operating leases domestically and internationally for certain warehouse space, office facilities, space for its Brand and Factory House stores, and certain equipment under non-cancelable operating leases. The leases expire at various dates through 2038. Short-term lease payments were not material for the periods presented.
Lease Costs and Other Information
The Company recognizes lease expense on a straight-line basis over the lease term. There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases. Operating and variable lease costs are included on the Company's Consolidated Statements of Operations within (i) selling, general and administrative expenses, (ii) restructuring charges, for certain operating and variable lease costs relating to
restructured facilities; and (iii) other income (expense), for certain operating and variable lease costs relating to lease assets held for sublet purposes and other non-operational facilities. The following table presents total operating and variable lease costs for the periods indicated:
Year Ended March 31,
202620252024
Operating lease costs$152,208 $162,125 $151,035 
Variable lease costs$84,295 $89,964 $82,389 
The Company subleases certain excess office facilities, retail space and warehouse space to third parties. Sublease income for Fiscal 2026 was $11.4 million (Fiscal 2025: $9.4 million). Sublease income for Fiscal 2024 was not material.
The weighted average remaining lease term and discount rate for the periods indicated below were as follows:
March 31, 2026March 31, 2025
Weighted average remaining lease term (in years)6.387.13
Weighted average discount rate4.85 %4.88 %
Supplemental Cash Flow Information
The following table presents supplemental information relating to cash flow arising from lease transactions:
Year Ended March 31,
202620252024
Operating cash outflows from operating leases$181,155 $183,862 $180,319 
Leased assets obtained in exchange for new operating lease liabilities$136,587 $78,544 $57,962 
Maturity of Lease Liabilities
The following table presents the future minimum lease payments under the Company's operating lease liabilities as of March 31, 2026:
Fiscal year ending March 31,
2027$183,467 
2028164,022 
2029123,348 
203097,116 
203168,016 
2032 and thereafter227,701 
Total lease payments$863,670 
Less: Interest114,481 
Total present value of lease liabilities$749,189 
As of March 31, 2026, the Company has additional operating lease obligations that have not yet commenced of approximately $17.0 million, which are not reflected in the table above. During Fiscal 2026, as part of the 2025 restructuring plan as defined below (refer to Note 11), the Company terminated a previously disclosed contract assessed as containing a lease that had not yet commenced.