Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information
NOTE 3 — SEGMENT INFORMATION

The Company defines its operating segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker ("CODM") to analyze performance, make decisions, and allocate resources. The Company aggregates its operating segments with similar economic and operating characteristics into four reportable segments: U.S., LAAP, EMEA, and Canada. These reportable segments are organized by geographic location. Each geographic segment operates predominantly in one industry: the design, development, marketing, and distribution of outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment.

The Company’s CODM is the Company’s president and chief executive officer. The Company’s CODM assesses the segments’ performance by using each segment's operating income.
The CODM uses each segment's operating income to allocate resources predominantly in the annual budget and forecasting process. The CODM considers plan-to-actual variances on a quarterly basis for the segment operating income profit measure when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses this profit measure to assess the performance of each segment by comparing the results of each segment with one another, and in the overall strategic planning for each segment.

Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up and eliminated in consolidation, are not material. Unallocated corporate expenses consist of expenses incurred by centrally-managed departmental functions, including information technology, certain supply chain functions, finance, human resources, and legal, as well as executive compensation, unallocated benefit program expense, and other miscellaneous costs.

The following tables present segment financial information for the Company's reportable segments:

Three Months Ended March 31, 2025
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 471,181  $ 152,210  $ 107,480  $ 47,581  $ 778,452 
Cost of sales
 239,908  66,278  52,855  23,354  382,395 
Segment selling, general and administrative expenses
 146,383  53,081  32,138  11,539  243,141 
Other segment items(a)
18,936  6,521  3,509  3,725  32,691 
Segment operating income
 65,954  26,330  18,978  8,963  120,225 
Reconciliation to income before income tax:
Unallocated corporate expenses
 73,717 
Operating income 46,508 
Interest income, net
 6,817 
Other non-operating income, net
 1,551 
Income before income tax $ 54,876 
(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.

Three Months Ended March 31, 2024
(in thousands)
 U.S. LAAP EMEA Canada Total
Net sales
 $ 474,406  $ 138,646  $ 104,520  $ 52,410  $ 769,982 
Cost of sales
 241,986  59,045  52,794  26,598  380,423 
Segment selling, general and administrative expenses
 138,917  50,221  28,796  10,363  228,297 
Other segment items(a)
20,510  7,558  3,784  4,281  36,133 
Segment operating income
 72,993  21,822  19,146  11,168  125,129 
Reconciliation to income before income tax:
Unallocated corporate expenses
 80,448 
Operating income
 44,681 
Interest income, net
 9,197 
Other non-operating income, net
 271 
Income before income tax
 $ 54,149 
(a) For each reportable segment, other segment items include certain corporate expenses and net licensing income allocated to each of the reportable segments, as well as net licensing income directly attributable to each of the reportable segments.
The following table presents segment depreciation and amortization expense information:
Three Months Ended March 31,
(in thousands)
 2025 2024
Depreciation and amortization expense:
U.S. $ 6,101  $ 5,801 
LAAP 1,538  1,389 
EMEA 1,054  970 
Canada 710  693 
Unallocated corporate expense 4,062  6,217 
$ 13,465  $ 15,070 
The following table presents segment asset information:
 As of
(in thousands)
 March 31, 2025 December 31, 2024 March 31, 2024
Inventories:
U.S. $ 414,998  $ 450,014  $ 401,423 
LAAP 87,738  108,818  81,483 
EMEA 73,336  79,710  72,834 
Canada 47,628  51,973  51,633 
Total segment assets
 623,700  690,515  607,373 
All other assets
 2,083,715  2,284,750  2,154,858 
Total assets
 $ 2,707,415  $ 2,975,265  $ 2,762,231 

CONCENTRATIONS

No single customer accounted for 10% or more of Net sales for the three months ended March 31, 2025 and 2024.