v3.26.1
Segment and Geographic Information
 3 Months Ended
May 31, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information
Note 13 - 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, 2026
(in thousands)Home & OutdoorBeauty & WellnessTotal
Sales revenue, net$194,923 $207,192 $402,115 
Less: (1)
Cost of goods sold98,505 118,755 217,260 
Operating expense (2)88,253 36,253 124,506 
Operating income$8,165 $52,184 $60,349 
Non-operating income, net218 
Interest expense12,243 
Income before income tax$48,324 
Three Months Ended May 31, 2025
(in thousands)Home & OutdoorBeauty & WellnessTotal
Sales revenue, net$177,983 $193,672 $371,655 
Less: (1)
Cost of goods sold89,893 106,751 196,644 
Operating expense (2)301,883 280,166 582,049 
Operating loss$(213,793)$(193,245)$(407,038)
Non-operating income, net308 
Interest expense13,808 
Loss before income tax$(420,538)
(1)These significant expense categories and amounts align with the reportable segment information that is regularly provided to the CODM.
(2)Operating expense for both reportable segments includes SG&A expense. Fiscal 2027 operating expense also includes a gain of $54.9 million on the sale of our distribution facility in Southaven, Mississippi recognized in our Beauty & Wellness segment. 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. See Note 3 and Note 5 for further information on the sale of our distribution facility and asset impairment charges, respectively.

The following tables summarize reportable segment information for the periods presented:

Three Months Ended May 31, 2026
(in thousands)Home & OutdoorBeauty & WellnessTotal
Capital and intangible asset expenditures$1,828 $3,978 $5,806 
Depreciation and amortization6,492 6,885 13,377 
Non-cash share-based compensation2,794 3,643 6,437 

Three Months Ended May 31, 2025
(in thousands)Home & OutdoorBeauty & WellnessTotal
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 charges219,095 195,290 414,385 
Geographic Information

The following table presents net sales revenue by geographic region, in U.S. Dollars:
Three Months Ended May 31,
(in thousands)20262025
Domestic sales revenue, net (1)
$307,348 76.4 %$277,960 74.8 %
International sales revenue, net94,767 23.6 %93,695 25.2 %
Total sales revenue, net$402,115 100.0 %$371,655 100.0 %
(1)Domestic net sales revenue includes net sales revenue from the U.S. and Canada.