Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 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 June 30, 2025
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 335,117  $ 112,333  $ 130,562  $ 27,234  $ 605,246 
Cost of sales
 165,780  53,973  74,248  14,137  308,138 
Segment selling, general and administrative expenses
 134,401  44,736  29,833  11,161  220,131 
Other segment items(a)
17,598  6,602  4,851  3,890  32,941 
Segment operating income (loss) 17,338  7,022  21,630  (1,954) 44,036 
Reconciliation to income before income tax:
Unallocated corporate expenses
 67,627 
Operating loss (23,591)
Interest income, net
 4,838 
Other non-operating income, net
 2,164 
Loss before income tax $ (16,589)
(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 June 30, 2024
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 340,228  $ 99,484  $ 103,922  $ 26,610  $ 570,244 
Cost of sales
 176,858  46,287  60,278  13,402  296,825 
Segment selling, general and administrative expenses
 119,590  40,717  24,194  9,539  194,040 
Other segment items(a)
20,314  6,398  5,031  3,692  35,435 
Segment operating income (loss) 23,466  6,082  14,419  (23) 43,944 
Reconciliation to income before income tax:
Unallocated corporate expenses
 67,746 
Operating loss (23,802)
Interest income, net
 8,344 
Other non-operating income, net
 476 
Loss before income tax $ (14,982)
(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.

Six Months Ended June 30, 2025
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 806,298  $ 264,543  $ 238,042  $ 74,815  $ 1,383,698 
Cost of sales
 405,688  120,251  127,103  37,491  690,533 
Segment selling, general and administrative expenses
 280,784  97,817  61,971  22,700  463,272 
Other segment items(a)
36,534  13,123  8,360  7,615  65,632 
Segment operating income
 83,292  33,352  40,608  7,009  164,261 
Reconciliation to income before income tax:
Unallocated corporate expenses
 141,344 
Operating income 22,917 
Interest income, net
 11,655 
Other non-operating income, net
 3,715 
Income before income tax $ 38,287 
(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.
Six Months Ended June 30, 2024
(in thousands)
 U.S. LAAP EMEA Canada Total
Net sales
 $ 814,634  $ 238,130  $ 208,442  $ 79,020  $ 1,340,226 
Cost of sales
 418,844  105,332  113,072  40,000  677,248 
Segment selling, general and administrative expenses
 258,508  90,938  52,990  19,902  422,338 
Other segment items(a)
40,823  13,956  8,815  7,973  71,567 
Segment operating income
 96,459  27,904  33,565  11,145  169,073 
Reconciliation to income before income tax:
Unallocated corporate expenses
 148,194 
Operating income
 20,879 
Interest income, net
 17,541 
Other non-operating income, net
 747 
Income before income tax
 $ 39,167 
(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 June 30,
Six Months Ended June 30,
(in thousands)
 2025 2024 2025 2024
Depreciation and amortization expense:
U.S. $ 6,642  $ 5,775  $ 12,742  $ 11,576 
LAAP 1,640  1,430  3,179  2,819 
EMEA 1,158  961  2,212  1,931 
Canada 812  710  1,522  1,403 
Unallocated corporate expense 4,214  5,196  8,276  11,413 
$ 14,466  $ 14,072  $ 27,931  $ 29,142 
The following table presents segment asset information:
 As of
(in thousands)
 June 30, 2025 December 31, 2024 June 30, 2024
Inventories:
U.S. $ 585,639  $ 450,014  $ 528,415 
LAAP 130,487  108,818  103,509 
EMEA 127,928  79,710  106,483 
Canada 82,875  51,973  85,150 
Total segment assets
 926,929  690,515  823,557 
All other assets
 1,963,448  2,284,750  1,937,264 
Total assets
 $ 2,890,377  $ 2,975,265  $ 2,760,821 

CONCENTRATIONS

No single customer accounted for 10% or more of Net sales for the three and six months ended June 30, 2025 and 2024.