v3.26.3
Segment and Geographic Information
 6 Months Ended
Aug. 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 August 31, 2026
(in thousands)Home & OutdoorBeauty & WellnessTotal
Sales revenue, net$227,920 $213,006 $440,926 
Less: (1)
Cost of goods sold (2)101,832 108,971 210,803 
Operating expense (3)102,021 105,183 207,204 
Operating income (loss)$24,067 $(1,148)$22,919 
Non-operating income, net1,761 
Interest expense10,892 
Income before income tax$13,788 
Three Months Ended August 31, 2025
(in thousands)Home & OutdoorBeauty & WellnessTotal
Sales revenue, net$208,721 $223,060 $431,781 
Less: (1)
Cost of goods sold108,636 132,464 241,100 
Operating expense (3)172,663 333,735 506,398 
Operating loss$(72,578)$(243,139)$(315,717)
Non-operating income, net249 
Interest expense14,221 
Loss before income tax$(329,689)
Six Months Ended August 31, 2026
(in thousands)Home & OutdoorBeauty & WellnessTotal
Sales revenue, net$422,843 $420,198 $843,041 
Less: (1)
Cost of goods sold (2)200,337 227,726 428,063 
Operating expense (3)190,274 141,436 331,710 
Operating income$32,232 $51,036 $83,268 
Non-operating income, net1,979 
Interest expense23,135 
Income before income tax$62,112 
Six Months Ended August 31, 2025
(in thousands)Home & OutdoorBeauty & WellnessTotal
Sales revenue, net$386,704 $416,732 $803,436 
Less: (1)
Cost of goods sold198,529 239,215 437,744 
Operating expense (3)474,546 613,901 1,088,447 
Operating loss$(286,371)$(436,384)$(722,755)
Non-operating income, net557 
Interest expense28,029 
Loss before income tax$(750,227)
(1)These significant expense categories and amounts align with the reportable segment information that is regularly provided to the CODM.
(2)Cost of goods sold during the three and six months ended August 31, 2026 includes reductions for tariff refunds recognized totaling $26.9 million and $28.7 million, respectively, of which $12.4 million and $14.2 million was recognized in our Home & Outdoor segment, respectively, and $14.5 million was recognized in our Beauty & Wellness segment for both the three and six months ended August 31, 2026. See Note 8 for further information.
(3)Operating expense for both reportable segments includes SG&A expense and restructuring charges. Operating expense during the six months ended August 31, 2026 also includes a gain of $54.9 million on the sale of our distribution facility in Southaven, Mississippi recognized in our Beauty & Wellness segment. Operating expense during the three and six months ended August 31, 2025 also includes asset impairment charges of $326.4 million and $740.8 million, respectively, of which $85.5 million and $304.6 million was recognized in our Home & Outdoor segment, respectively, and $240.9 million and $436.1 million was recognized in our Beauty & Wellness segment, 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 August 31, 2026
(in thousands)Home & OutdoorBeauty & WellnessTotal
Capital and intangible asset expenditures$2,768 $9,537 $12,305 
Depreciation and amortization5,865 7,155 13,020 
Non-cash share-based compensation2,514 2,629 5,143 

Three Months Ended August 31, 2025
(in thousands)Home & OutdoorBeauty & WellnessTotal
Capital and intangible asset expenditures$6,907 $4,563 $11,470 
Depreciation and amortization6,040 6,820 12,860 
Non-cash share-based compensation4,248 5,124 9,372 
Asset impairment charges85,537 240,857 326,394 

Six Months Ended August 31, 2026
(in thousands)Home & OutdoorBeauty & WellnessTotal
Capital and intangible asset expenditures$4,596 $13,515 $18,111 
Depreciation and amortization12,357 14,040 26,397 
Non-cash share-based compensation5,308 6,272 11,580 

Six Months Ended August 31, 2025
(in thousands)Home & OutdoorBeauty & WellnessTotal
Capital and intangible asset expenditures$13,890 $10,942 $24,832 
Depreciation and amortization12,599 14,345 26,944 
Non-cash share-based compensation4,282 5,386 9,668 
Asset impairment charges304,632 436,147 740,779 
Geographic Information

The following table presents net sales revenue by geographic region, in U.S. Dollars:
Three Months Ended August 31,Six Months Ended August 31,
(in thousands)2026202520262025
Domestic sales revenue, net (1)
$335,868 76.2 %$330,496 76.5 %$643,216 76.3 %$608,456 75.7 %
International sales revenue, net105,058 23.8 %101,285 23.5 %199,825 23.7 %194,980 24.3 %
Total sales revenue, net$440,926 100.0 %$431,781 100.0 %$843,041 100.0 %$803,436 100.0 %
(1)Domestic net sales revenue includes net sales revenue from the U.S. and Canada.