v3.26.1
Reportable Operating Segments
 12 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Reportable Operating Segments Reportable Operating Segments
Information reported to the Chief Operating Decision Maker (CODM), who is the Principal Executive Officer, is
organized into the Company’s three reportable operating segments, which include the brand operations for the
HOKA brand, UGG brand, and Other brands. The operations of each brand within these reportable operating
segments are managed separately because each requires different marketing, research and development, design,
sourcing, and sales strategies.
Segment Net Sales, Gross Margin, and Income from Operations. The CODM regularly evaluates the
performance of each reportable operating segment based on net sales, gross profit as a percentage of net sales
(gross margin), and income from operations when making decisions about resource allocations to each reportable
operating segment. Income from operations of each reportable operating segment includes certain costs which are
specifically related to each reportable operating segment and that are regularly provided to the CODM. These costs
consist of cost of sales; payroll and related expenses, including stock-based compensation; advertising, marketing,
and promotion expenses; rent and occupancy (including maintenance and utilities); depreciation and other related
costs; and other segment items. There are no inter-segment sales for any period presented. The accounting policies
applicable to the Company’s reportable operating segments are consistent with those described in Note 1,
“General.”
Income from operations of each reportable operating segment excludes enterprise and shared brand expenses as
well as total other income, net, which are not used to assess reportable operating segment performance.
Unallocated enterprise and shared brand expenses are costs that are managed centrally and not specific to any one
brand. These costs are primarily comprised of certain payroll and related expenses, including stock-based
compensation; global IT expenses; 3PL service fees; depreciation, rent, and occupancy for owned warehouses and
DCs and offices; and other SG&A expenses, such as costs for contract services, materials, supplies, and travel.
These costs span multiple functions including owned warehouses and DCs and 3PL service fees, along with
enterprise costs which include centralized commercial operations, IT, finance, human resources, legal, supply chain,
and corporate executives.
The Company does not regularly provide total assets or capital expenditures information by reportable operating
segment to the CODM because that information is not used to evaluate performance or allocate resources to each
reportable operating segment.
Reportable operating segment information, with a reconciliation to the consolidated statements of comprehensive
income, was as follows:
Year Ended March 31, 2026
HOKA
UGG
Other Brands (3)
Total
Net sales
$2,587,330
$2,738,758
$146,208
$5,472,296
Less: Cost of sales
1,116,395
1,115,588
82,587
2,314,570
Segment gross profit
1,470,935
1,623,170
63,621
3,157,726
Segment gross margin
56.9%
59.3%
43.5%
57.7%
Less:
Payroll and related costs
130,466
158,290
18,317
307,073
Advertising, marketing, and promotion
expenses
263,063
215,403
17,372
495,838
Rent and occupancy
46,173
84,287
111
130,571
Depreciation and other related costs (1)
7,831
12,245
108
20,184
Other segment items (2)
112,422
107,614
11,348
231,384
Segment SG&A expenses
559,955
577,839
47,256
1,185,050
Segment income from operations
$910,980
$1,045,331
$16,365
$1,972,676
Segment operating margin
35.2%
38.2%
11.2%
36.0%
Year Ended March 31, 2025
HOKA
UGG
Other Brands (3)
Total
Net sales
$2,233,090
$2,531,351
$221,171
$4,985,612
Less: Cost of sales
949,824
1,023,495
126,630
2,099,949
Segment gross profit
1,283,266
1,507,856
94,541
2,885,663
Segment gross margin
57.5%
59.6%
42.7%
57.9%
Year Ended March 31, 2025
HOKA
UGG
Other Brands (3)
Total
Less:
Payroll and related costs
101,056
146,093
18,179
265,328
Advertising, marketing, and promotion
expenses
226,238
180,889
25,071
432,198
Rent and occupancy
26,467
75,724
424
102,615
Depreciation and other related costs (1)
5,007
10,026
4,412
19,445
Other segment items (2)
75,993
92,251
11,877
180,121
Segment SG&A expenses
434,761
504,983
59,963
999,707
Segment income from operations
$848,505
$1,002,873
$34,578
$1,885,956
Segment operating margin
38.0%
39.6%
15.6%
37.8%
Year Ended March 31, 2024
HOKA
UGG
Other Brands (3)
Total
Net sales
$1,806,740
$2,239,132
$241,891
$4,287,763
Less: Cost of sales
763,673
983,636
154,966
1,902,275
Segment gross profit
1,043,067
1,255,496
86,925
2,385,488
Segment gross margin
57.7%
56.1%
35.9%
55.6%
Less:
Payroll and related costs
74,991
134,307
17,628
226,926
Advertising, marketing, and promotion
expenses
175,756
148,809
24,287
348,852
Rent and occupancy
16,589
75,724
348
92,661
Depreciation and other related costs (1)
3,389
9,295
10,034
22,718
Other segment items (2)
53,295
82,534
10,907
146,736
Segment SG&A expenses
324,020
450,669
63,204
837,893
Segment income from operations
$719,047
$804,827
$23,721
$1,547,595
Segment operating margin
39.8%
35.9%
9.8%
36.1%
(1) Depreciation and other related costs generally include depreciation of property and equipment, amortization and impairment of
intangible assets or other-long lived assets, accretion, loss on disposal of assets, and other miscellaneous costs. During the
year ended March 31, 2024, the Company recorded an impairment to intangible assets of $8,164 for the Sanuk brand definite-
lived trademark. Refer to the section titled “Recoverability of Definite-Lived Intangible and Other Long-Lived Assets,” in Note 1,
“General,” for further information on the impairment loss.
(2) Other segment items are comprised of other SG&A expenses, which primarily include credit card fees, sales commissions,
materials and supplies, travel, and certain 3PL service fees, and other miscellaneous expenses.
(3) The Other brands reportable operating segment for fiscal year 2026, includes financial results for the phase out of the
Koolaburra brand and AHNU brand. The Other brands reportable operating segment for the prior period includes financial
results for the former Sanuk brand through the Sanuk Brand Sale Date. Refer to the section titled “Reportable Operating
Segments,” in Note 1, “General,” for further information.
A reconciliation of reportable segment income from operations to consolidated statements of comprehensive income
was as follows:
Years Ended March 31,
2026
2025
2024
Segment income from operations
$1,972,676
$1,885,956
$1,547,595
Unallocated enterprise and shared brand expenses (1)
(709,773)
(706,864)
(620,081)
Total other income, net
63,453
64,207
51,427
Consolidated income before income taxes
$1,326,356
$1,243,299
$978,941
(1) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, they are recorded in
unallocated enterprise and shared brand expenses, which are costs that are managed centrally and not specific to any one
brand.