±«ÓãÖ±²¥

Quarterly report [Sections 13 or 15(d)]

REPORTABLE SEGMENT INFORMATION

v3.25.3
REPORTABLE SEGMENT INFORMATION
 6 Months Ended
Sep. 27, 2025
Segment Reporting [Abstract] Ìý
REPORTABLE SEGMENT INFORMATION REPORTABLE SEGMENT INFORMATION
±«ÓãÖ±²¥'s President and CEO is the Company's CODM. The Company's individual global brands, or in certain cases the combination of global brands, have been determined to be operating segments. The operating segments have been evaluated and aggregated into reportable segments because they meet the similar economic characteristics and qualitative aggregation criteria set forth in the relevant accounting guidance. In the first quarter of Fiscal 2026, ±«ÓãÖ±²¥ realigned its reportable segments to reflect a change in how the Timberland® brand is managed and the CODM's key areas of focus. ±«ÓãÖ±²¥ began managing its Timberland® and Timberland PRO® brands as one operating segment during the first quarter of Fiscal 2026. This operating segment has been aggregated with The North Face® brand in the Outdoor reportable segment and the Vans®, Kipling®, Eastpak® and JanSport® brands have been aggregated in the Active reportable segment. All
other brands that have not been aggregated within the reportable segments described above, which do not meet the quantitative threshold to be disclosed as a separate reportable segment, have been grouped within an "All Other" category. This group includes the Dickies®, Altra®, Smartwool®, Napapijri® and Icebreaker® brands. Results for the "All Other" category are included as a reconciling item between the Company's reportable segments and its consolidated results of operations and assets.
Reportable segment results for all prior periods have been recast to reflect the change in reportable segments. These changes had no impact on previously reported consolidated results of operations.
Below is a description of ±«ÓãÖ±²¥'s reportable segments and the brands included within each:
REPORTABLE SEGMENT BRANDS
Outdoor - Outdoor apparel, footwear and equipment
The North Face®
Timberland®
Active - Active apparel, footwear and accessories
Vans®
Kipling®
Eastpak®
JanSport®
All Other - included in the tables below for purposes of reconciliation of revenues, profit and assets, but it is not considered a reportable segment. "All Other" includes the Dickies®, Altra®, Smartwool®, Napapijri® and Icebreaker® brands.
The primary financial measures used by the CODM to assess performance and allocate resources to ±«ÓãÖ±²¥'s segments are segment revenues and segment profit. Segment profit comprises the operating income (loss) and other income (expense), net line items of each segment. Segment revenues and segment profit are regularly reviewed by the CODM and compared against historical results, forecast and budget information in order to make decisions about how to allocate capital and other resources to each segment.
Corporate costs (other than common costs allocated to the segments), goodwill and indefinite-lived intangible asset impairment charges and net interest expense are not controlled by segment management and therefore are excluded from the measurement of segment profit. Common costs such as information systems processing, retirement benefits and insurance are allocated from corporate costs to the segments based on appropriate metrics such as usage or employment. Corporate costs that are not allocated to the segments consist of corporate headquarters expenses (including compensation and benefits of corporate management and staff, certain legal and professional fees and administrative and general costs), costs of
corporate programs or corporate-managed decisions, and other expenses which include a portion of defined benefit pension costs, development costs for management information systems, costs of registering, maintaining and enforcing certain of ±«ÓãÖ±²¥â€™s trademarks and miscellaneous consolidated costs. Defined benefit pension plans in the U.S. are centrally managed. The current year service cost component of pension cost is allocated to the segments, while the remaining pension cost components are reported in corporate and other expenses.
Segment assets are those used directly in or resulting from the operations of each business, which are accounts receivable and inventories. Segment assets included in the "All Other" category represent accounts receivable and inventory balances related to the brands included within the "All Other" category as noted above and segment assets included in the "Corporate and other" category represent receivable balances primarily related to corporate activities, and both are provided for purposes of reconciliation as they are not considered reportable segments. Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the CODM at the segment level.
Financial information for ±«ÓãÖ±²¥'s segments is as follows:
Three Months Ended September 2025
(In thousands) Outdoor Active Total
Reportable segment revenues $ 1,663,479Ìý $ 760,750Ìý $ 2,424,229Ìý
"All Other" revenues 378,477Ìý
Total revenues 2,802,706Ìý
Less:
Cost of goods sold 822,350Ìý 324,366Ìý
Marketing expenses 119,990Ìý 64,196Ìý
Other SG&A expenses 423,058Ìý 306,974Ìý
Other segment items (a)
2,659Ìý 534Ìý
Segment profit 300,740Ìý 65,748Ìý 366,488Ìý
Corporate and other expenses (95,672)
Interest expense, net (46,209)
"All Other" profit 43,674Ìý
Income from continuing operations before income taxes $ 268,281Ìý
(a)For each reportable segment, 'Other segment items' includes certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses, which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
Three Months Ended September 2024
(In thousands) Outdoor Active Total
Reportable segment revenues $ 1,566,722Ìý $ 824,536Ìý $ 2,391,258Ìý
"All Other" revenues 366,690Ìý
Total revenues 2,757,948Ìý
Less:
Cost of goods sold 783,343Ìý 335,465Ìý
Marketing expenses 104,793Ìý 74,695Ìý
Other SG&A expenses 400,976Ìý 320,927Ìý
Other segment items (a)
528Ìý 2Ìý
Segment profit 278,138Ìý 93,451Ìý 371,589Ìý
Corporate and other expenses (138,238)
Interest expense, net (b)
(42,688)
"All Other" profit 39,892Ìý
Income from continuing operations before income taxes $ 230,555Ìý
(a)For each reportable segment, 'Other segment items' includes certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses, which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
(b)Interest expense and the related interest rate swap impact for the DDTL, which totaled $16.2 million for the three months ended September 2024, were allocated to discontinued operations due to the requirement within the DDTL's amended agreement that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme.
Six Months Ended September 2025
(In thousands) Outdoor Active Total
Reportable segment revenues $ 2,475,945Ìý $ 1,460,437Ìý $ 3,936,382Ìý
"All Other" revenues 626,990Ìý
Total revenues 4,563,372Ìý
Less:
Cost of goods sold 1,208,427Ìý 623,135Ìý
Marketing expenses 191,581Ìý 117,313Ìý
Other SG&A expenses 821,611Ìý 598,254Ìý
Other segment items (a)
4,144Ìý 851Ìý
Segment profit 258,470Ìý 122,586Ìý 381,056Ìý
Corporate and other expenses (200,232)
Interest expense, net
(87,329)
"All Other" profit 48,193Ìý
Income from continuing operations before income taxes $ 141,688Ìý
(a)For each reportable segment, 'Other segment items' includes certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses, which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
Six Months Ended September 2024
(In thousands) Outdoor Active Total
Reportable segment revenues $ 2,320,352Ìý $ 1,601,270Ìý $ 3,921,622Ìý
"All Other" revenues 605,386Ìý
Total revenues 4,527,008Ìý
Less:
Cost of goods sold 1,184,919Ìý 665,592Ìý
Marketing expenses 171,182Ìý 142,017Ìý
Other SG&A expenses 759,589Ìý 628,730Ìý
Other segment items (a)
589Ìý (15)
Segment profit 205,251Ìý 164,916Ìý 370,167Ìý
Corporate and other expenses (253,757)
Interest expense, net (b)
(83,635)
"All Other" profit 32,327Ìý
Income from continuing operations before income taxes $ 65,102Ìý
(a)For each reportable segment, 'Other segment items' includes certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses, which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
(b)Interest expense and the related interest rate swap impact for the DDTL, which totaled $31.1 million for the six months ended September 2024, were allocated to discontinued operations due to the requirement within the DDTL's amended agreement that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme.
(In thousands) September 2025 March 2025 September 2024
Segment assets:
Outdoor $ 2,454,730Ìý $ 1,552,908Ìý $ 2,367,478Ìý
Active 894,891Ìý 860,128Ìý 911,778Ìý
All Other 370,102Ìý 507,223Ìý 616,577Ìý
Corporate and other 17,770Ìý 28,429Ìý 7,282Ìý
Total segment assets 3,737,493Ìý 2,948,688Ìý 3,903,115Ìý
Cash and cash equivalents 419,115Ìý 429,382Ìý 492,164Ìý
Property, plant and equipment, net 688,478Ìý 720,879Ìý 755,802Ìý
Goodwill and intangible assets, net 2,096,460Ìý 2,314,093Ìý 2,426,628Ìý
Operating lease right-of-use assets 1,347,097Ìý 1,262,319Ìý 1,313,030Ìý
Other assets 1,818,974Ìý 1,702,175Ìý 1,737,915Ìý
Assets held-for-sale 536,507Ìý —Ìý —Ìý
Assets of discontinued operations —Ìý —Ìý 1,590,984Ìý
Consolidated assets $ 10,644,124Ìý $ 9,377,536Ìý $ 12,219,638Ìý
Three Months Ended September Six Months Ended September
(In thousands) 2025 2024 2025 2024
Depreciation and amortization:
Outdoor $ 26,147Ìý $ 24,171Ìý $ 52,121Ìý $ 48,559Ìý
Active 12,943Ìý 13,569Ìý 26,321Ìý 27,675Ìý
All Other 7,332Ìý 5,268Ìý 12,274Ìý 10,558Ìý
Corporate and other 23,380Ìý 18,763Ìý 43,448Ìý 39,604Ìý
$ 69,802Ìý $ 61,771Ìý $ 134,164Ìý $ 126,396Ìý