REPORTABLE OPERATING SEGMENTS (Tables)

12 Months Ended

Mar. 31, 2025

Schedule of Operating Segment Information

Reportable operating segment information, with a reconciliation to the consolidated statements of comprehensive income, was as follows:


Year Ended March 31, 2025	UGG			HOKA			Other Brands			Total
Net sales	$	2,531,351		$	2,233,090		$	221,171		$	4,985,612
Less: Cost of sales (1)	1,023,495			949,824			126,630			2,099,949
Segment gross profit	1,507,856			1,283,266			94,541			2,885,663
Segment gross margin	59.6		%	57.5		%	42.7		%	57.9		%
Less: (1)
Payroll and related costs	146,093			101,056			18,179			265,328
Advertising, marketing, and promotion expenses	180,889			226,238			25,071			432,198
Rent and occupancy	75,724			26,467			424			102,615
Depreciation and other related costs (2)	10,026			5,007			4,412			19,445
Other segment items (3)	92,251			75,993			11,877			180,121
Segment SG&A expenses	504,983			434,761			59,963			999,707
Segment income from operations	$	1,002,873		$	848,505		$	34,578		$	1,885,956
Segment operating margin	39.6		%	38.0		%	15.6		%	37.8		%


Year Ended March 31, 2024	UGG			HOKA			Other Brands			Total
Net sales	$	2,239,132		$	1,806,740		$	241,891		$	4,287,763
Less: Cost of sales (1)	983,636			763,673			154,966			1,902,275
Segment gross profit	1,255,496			1,043,067			86,925			2,385,488
Segment gross margin	56.1		%	57.7		%	35.9		%	55.6		%
Less: (1)
Payroll and related costs	134,307			74,991			17,628			226,926
Advertising, marketing, and promotion expenses	148,809			175,756			24,287			348,852
Rent and occupancy	75,724			16,589			348			92,661
Depreciation and other related costs (2)	9,295			3,389			10,034			22,718
Other segment items (3)	82,534			53,295			10,907			146,736
Segment SG&A expenses	450,669			324,020			63,204			837,893
Segment income from operations	$	804,827		$	719,047		$	23,721		$	1,547,595
Segment operating margin	35.9		%	39.8		%	9.8		%	36.1		%


Year Ended March 31, 2023	UGG			HOKA			Other Brands			Total
Net sales	$	1,929,211		$	1,412,916		$	285,159		$	3,627,286
Less: Cost of sales (1)	975,585			641,240			185,091			1,801,916
Segment gross profit	953,626			771,676			100,068			1,825,370
Segment gross margin	49.4		%	54.6		%	35.1		%	50.3		%
Less: (1)
Payroll and related costs	109,576			57,446			15,266			182,288
Advertising, marketing, and promotion expenses	114,652			135,590			20,898			271,140
Rent and occupancy	69,302			9,033			453			78,788
Depreciation and other related costs (2)	10,623			2,272			1,866			14,761
Other segment items (3)	77,004			38,877			12,083			127,964
Segment SG&A expenses	381,157			243,218			50,566			674,941
Segment income from operations	$	572,469		$	528,458		$	49,502		$	1,150,429
Segment operating margin	29.7		%	37.4		%	17.4		%	31.7		%

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2) Depreciation and other related costs generally includes 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 Note 3, “Goodwill and Other Intangible Assets,” for further information on the impairment loss.

(3) Other segment items are comprised of other SG&A expenses, which primarily includes credit card fees, commissions, materials and supplies, travel, and certain 3PL service fees.

Schedule of Reconciliation of Reportable Segment Income from Segments to Consolidated

A reconciliation of reportable segment income from operations to consolidated statements of comprehensive income was as follows:


	Years Ended March 31,
	2025		2024		2023
Segment income from operations	$	1,885,956	$	1,547,595	$	1,150,429
Unallocated enterprise and shared brand expenses (1)	(706,864)		(620,081)		(497,678)
Total other income, net	64,207		51,427		13,331
Consolidated income before income taxes	$	1,243,299	$	978,941	$	666,082

(1) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, the costs are recorded in unallocated enterprise and shared brand expenses, which are costs that are managed centrally and not specific to any one brand. The change in reportable operating segments had an impact on segment income from operations, a measure of segment profitability, and a clarification was made that certain prior unallocated overhead costs are defined as unallocated enterprise and shared brand expenses and are excluded from the measure of segment profitability.

DECKERS OUTDOOR CORP 10-K