Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
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 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 certain information technology, supply chain, finance, human resources, and legal functions, 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, 2026
(in thousands)
U.S.
LAAP
EMEA
Canada
Total
Net sales
 $ 422,454  $ 160,243  $ 145,349  $ 50,967  $ 779,013 
Cost of sales
 217,989  69,116  70,496  26,450  384,051 
Segment selling, general and administrative expenses
 137,410  56,757  42,057  12,424  248,648 
Other segment items(a)
18,043  7,475  4,645  3,873  34,036 
Segment operating income
 49,012  26,895  28,151  8,220  112,278 
Reconciliation to income before income tax:
Unallocated corporate expenses
 70,285 
Operating income
 41,993 
Interest income, net
 4,883 
Other non-operating income, net
 397 
Income before income tax
 $ 47,273 
(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, 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.
The following table presents segment depreciation and amortization expense information:
Three Months Ended March 31,
(in thousands)
 2026 2025
Depreciation and amortization expense:
U.S. $ 6,125  $ 6,101 
LAAP 1,650  1,538 
EMEA 1,289  1,054 
Canada 758  710 
Unallocated corporate expense 3,869  4,062 
$ 13,691  $ 13,465 

The following table presents segment asset information:

 As of
(in thousands)
 March 31, 2026 December 31, 2025
Inventories:
U.S. $ 402,376  $ 416,041 
LAAP 92,212  118,633 
EMEA 87,619  106,508 
Canada 41,764  48,274 
Total segment assets
 623,971  689,456 
All other assets
 1,939,615  2,239,037 
Total assets
 $ 2,563,586  $ 2,928,493 
CONCENTRATIONS

No single customer accounted for 10% or more of Net sales for the three months ended March 31, 2026 and 2025.