Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.3
Segment Information
 9 Months Ended
Sep. 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, intangible asset and goodwill impairment charges, and other miscellaneous costs.

The following tables present segment financial information for the Company's reportable segments:
Three Months Ended September 30, 2025
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 546,690  $ 143,358  $ 164,461  $ 88,916  $ 943,425 
Cost of sales
 275,920  66,286  82,662  46,739  471,607 
Segment selling, general and administrative expenses
 157,008  50,260  39,864  15,321  262,453 
Other segment items(a)
16,708  5,694  3,714  4,035  30,151 
Segment operating income
 97,054  21,118  38,221  22,821  179,214 
Reconciliation to income before income tax:
Unallocated corporate expenses
 111,828 
Operating income
 67,386 
Interest income, net
 2,870 
Other non-operating income, net
 732 
Income before income tax
 $ 70,988 
(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 September 30, 2024
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 571,306  $ 134,985  $ 141,785  $ 83,692  $ 931,768 
Cost of sales
 288,997  61,430  71,400  42,382  464,209 
Segment selling, general and administrative expenses
 147,606  45,964  33,204  14,178  240,952 
Other segment items(a)
19,347  7,156  3,943  4,763  35,209 
Segment operating income 115,356  20,435  33,238  22,369  191,398 
Reconciliation to income before income tax:
Unallocated corporate expenses
 78,857 
Operating income 112,541 
Interest income, net
 5,364 
Other non-operating income, net
 1,283 
Income before income tax $ 119,188 
(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.

Nine Months Ended September 30, 2025
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 1,352,988  $ 407,901  $ 402,503  $ 163,731  $ 2,327,123 
Cost of sales
 681,608  186,537  209,765  84,230  1,162,140 
Segment selling, general and administrative expenses
 437,791  148,077  101,836  38,020  725,724 
Other segment items(a)
53,241  18,818  12,074  11,651  95,784 
Segment operating income
 180,348  54,469  78,828  29,830  343,475 
Reconciliation to income before income tax:
Unallocated corporate expenses
 253,172 
Operating income 90,303 
Interest income, net
 14,525 
Other non-operating income, net
 4,447 
Income before income tax $ 109,275 
(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.

Nine Months Ended September 30, 2024
(in thousands)
 U.S. LAAP EMEA Canada Total
Net sales
 $ 1,385,940  $ 373,115  $ 350,227  $ 162,712  $ 2,271,994 
Cost of sales
 707,841  166,762  184,472  82,382  1,141,457 
Segment selling, general and administrative expenses
 406,113  136,902  86,194  34,079  663,288 
Other segment items(a)
60,171  21,111  12,759  12,736  106,777 
Segment operating income
 211,815  48,340  66,802  33,515  360,472 
Reconciliation to income before income tax:
Unallocated corporate expenses
 227,052 
Operating income
 133,420 
Interest income, net
 22,905 
Other non-operating income, net
 2,030 
Income before income tax
 $ 158,355 
(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 September 30,
Nine Months Ended
September 30,
(in thousands)
 2025 2024 2025 2024
Depreciation and amortization expense:
U.S. $ 6,663  $ 5,667  $ 19,405  $ 17,244 
LAAP 1,842  1,403  5,020  4,222 
EMEA 1,207  1,028  3,420  2,959 
Canada 797  763  2,318  2,166 
Unallocated corporate expense 3,707  4,183  11,984  15,596 
$ 14,216  $ 13,044  $ 42,147  $ 42,187 
The following table presents segment asset information:
 As of
(in thousands)
 September 30, 2025 December 31, 2024 September 30, 2024
Inventories:
U.S. $ 500,095  $ 450,014  $ 521,705 
LAAP 130,530  108,818  122,892 
EMEA 109,852  79,710  91,923 
Canada 59,873  51,973  61,633 
Total segment assets
 800,350  690,515  798,153 
All other assets
 1,912,197  2,284,750  1,962,587 
Total assets
 $ 2,712,547  $ 2,975,265  $ 2,760,740 

CONCENTRATIONS

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