v3.26.1
REVENUE RECOGNITION AND BUSINESS CONCENTRATIONS
 3 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION AND BUSINESS CONCENTRATIONS Revenue Recognition and Business Concentrations
Disaggregated Revenue. Refer to Note 10, “Reportable Operating Segments,” for further information on the
Company’s disaggregation of revenue by reportable operating segments.
Channel Concentration. Net sales by channel were as follows:
 
Three Months Ended June 30,
2026
2025
Wholesale
$666,714
$652,364
Direct-to-Consumer
352,817
312,174
Total
$1,019,531
$964,538
Geographic Concentration. Net sales by geography were as follows:
 
Three Months Ended June 30,
2026
2025
Domestic
$517,428
$501,258
International
502,103
463,280
Total
$1,019,531
$964,538
Sales Return Asset and Liability. Sales returns are a refund asset for the right to recover the inventory and a
refund liability for the stand-ready right of return. The refund asset for the right to recover the inventory is recorded
in other current assets and the related refund liability is recorded in other accrued expenses in the condensed
consolidated balance sheets.
The following tables summarize changes in the estimated sales returns for the periods presented:
Sales Return
Asset
Sales Return
Liability
Balance, March 31, 2026
$27,729
$(80,055)
Net additions to sales return liability (1)
7,415
(39,046)
Actual returns
(16,619)
60,420
Balance, June 30, 2026
$18,525
$(58,681)
Sales Return
Asset
Sales Return
Liability
Balance, March 31, 2025
$21,120
$(63,462)
Net additions to sales return liability (1)
7,369
(40,888)
Actual returns
(13,556)
55,508
Balance, June 30, 2025
$14,933
$(48,842)
(1) Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual
return rights and discretionary authorized returns.
Contract Liabilities. Contract liabilities are recorded in other accrued expenses in the condensed consolidated
balance sheets and include loyalty programs and other deferred revenue.
Loyalty Programs. Activity related to loyalty programs was as follows:
Three Months Ended June 30,
2026
2025
Beginning balance
$(21,000)
$(18,566)
Redemptions and expirations for loyalty certificates and points recognized in net
sales
6,066
4,994
Deferred revenue for loyalty points and certificates issued
(4,982)
(4,205)
Ending balance
$(19,916)
$(17,777)
Deferred Revenue. Activity related to deferred revenue was as follows:
Three Months Ended June 30,
2026
2025
Beginning balance
$(30,139)
$(27,305)
Additions of customer cash payments
(28,424)
(27,176)
Revenue recognized
29,029
25,573
Ending balance
$(29,534)
$(28,908)
Refer to Note 2, “Revenue Recognition and Business Concentrations,” in the Company’s consolidated financial
statements in Part IV of the 2026 Annual Report for further information on the Company’s variable consideration
accounting policies, including sales return asset and liability, as well as contract liabilities.