Item 1. FINANCIAL STATEMENTS

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollar and share data amounts in thousands, except par value)

			September 30, 2024						March 31, 2024
ASSETS									(AUDITED)
Cash and cash equivalents			$	1,225,681					$	1,502,051
Trade accounts receivable, net of allowances ($49,416 and $27,331 as of September 30, 2024, and March 31, 2024, respectively)			537,137						296,565
Inventories			777,891						474,311
Prepaid expenses			46,548						34,284
Other current assets			80,216						92,713
Income tax receivable			33,821						43,559
Total current assets			2,701,294						2,443,483
Property and equipment, net of accumulated depreciation ($378,588 and $349,138 as of September 30, 2024, and March 31, 2024, respectively) (Note 11)			319,580						302,122
Operating lease assets			217,401						225,669
Goodwill			13,990						13,990
Other intangible assets, net of accumulated amortization ($25,152 and $91,314 as of September 30, 2024, and March 31, 2024, respectively)			15,906						27,083
Deferred tax assets, net			73,322						72,584
Other assets			56,643						50,648
Total assets			$	3,398,136					$	3,135,579
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable			$	536,581					$	378,503
Accrued payroll			60,091						123,653
Operating lease liabilities			48,662						53,581
Other accrued expenses			138,768						106,785
Income tax payable			75,920						52,338
Value added tax payable			15,618						5,133
Total current liabilities			875,640						719,993
Long-term operating lease liabilities			209,961						213,298
Income tax liability			37,662						52,470
Other long-term liabilities			51,634						42,350
Total long-term liabilities			299,257						308,118
Commitments and contingencies (Note 5)
Stockholders’ equity
Common stock (par value $0.01 per share; 750,000 shares authorized; shares issued and outstanding of 152,008 and 153,554 as of September 30, 2024, and March 31, 2024, respectively)			1,520						1,536
Additional paid-in capital			252,212						243,050
Retained earnings			2,013,265						1,913,615
Accumulated other comprehensive loss (Note 8)			(43,758)						(50,733)
Total stockholders’ equity			2,223,239						2,107,468
Total liabilities and stockholders’ equity			$	3,398,136					$	3,135,579

See accompanying notes to the condensed consolidated financial statements.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(dollar and share data amounts in thousands, except per share data)

			Three Months Ended September 30,												Six Months Ended September 30,
			2024						2023						2024						2023
Net sales (Note 2, Note 10, and Note 11)			$	1,311,320					$	1,091,907					$	2,136,667					$	1,767,698
Cost of sales			578,048						508,888						933,395						838,255
Gross profit			733,272						583,019						1,203,272						929,443
Selling, general, and administrative expenses			428,186						358,402						765,379						634,090
Income from operations (Note 10)			305,086						224,617						437,893						295,353
Interest income			(14,797)						(10,089)						(32,049)						(21,376)
Interest expense			1,151						1,011						2,182						2,016
Other income, net			(180)						(622)						(305)						(968)
Total other income, net			(13,826)						(9,700)						(30,172)						(20,328)
Income before income taxes			318,912						234,317						468,065						315,681
Income tax expense (Note 4)			76,591						55,770						110,119						73,582
Net income			242,321						178,547						357,946						242,099
Other comprehensive income (loss), net of tax
Unrealized (loss) gain on cash flow hedges			(4,322)						3,403						(3,466)						3,755
Foreign currency translation gain (loss)			15,097						(5,520)						10,441						(14,171)
Total other comprehensive income (loss), net of tax			10,775						(2,117)						6,975						(10,416)
Comprehensive income			$	253,096					$	176,430					$	364,921					$	231,683
Net income per share
Basic			$	1.59					$	1.14					$	2.35					$	1.55
Diluted			$	1.59					$	1.14					$	2.34					$	1.54
Weighted-average common shares outstanding (Note 9)
Basic			152,240						156,188						152,552						156,586
Diluted			152,778						157,070						153,127						157,503

See accompanying notes to the condensed consolidated financial statements.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(amounts in thousands)

			Six Months Ended September 30, 2024
			Common Stock												Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Stockholders’ Equity
			Shares						Amount
Balance, March 31, 2024			153,554						$	1,536					$	243,050					$	1,913,615					$	(50,733)					$	2,107,468
Stock-based compensation			2						—						8,231						—						—						8,231
Shares issued upon vesting			6						—						—						—						—						—
Exercise of stock options			54						1						600						—						—						601
Shares withheld for taxes			—						—						(495)						—						—						(495)
Repurchases of common stock (Note 8)			(1,062)						(11)						—						(151,956)						—						(151,967)
Excise taxes related to repurchases of common stock			—						—						—						(1,181)						—						(1,181)
Net income			—						—						—						115,625						—						115,625
Total other comprehensive loss			—						—						—						—						(3,800)						(3,800)
Balance, June 30, 2024			152,554						1,526						251,386						1,876,103						(54,533)						2,074,482
Stock-based compensation			2						—						11,657						—						—						11,657
Shares issued upon vesting			129						1						1,637						—						—						1,638
Exercise of stock options			9						—						93						—						—						93
Shares withheld for taxes			—						—						(12,561)						—						—						(12,561)
Repurchases of common stock (Note 8)			(686)						(7)						—						(104,316)						—						(104,323)
Excise taxes related to repurchases of common stock			—						—						—						(843)						—						(843)
Net income			—						—						—						242,321						—						242,321
Total other comprehensive income			—						—						—						—						10,775						10,775
Balance, September 30, 2024			152,008						$	1,520					$	252,212					$	2,013,265					$	(43,758)					$	2,223,239

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(amounts in thousands)

(continued)

			Six Months Ended September 30, 2023
			Common Stock												Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Stockholders’ Equity
			Shares						Amount
Balance, March 31, 2023			157,054						$	1,571					$	230,841					$	1,572,356					$	(39,035)					$	1,765,733
Stock-based compensation			4						—						6,877						—						—						6,877
Shares issued upon vesting			16						—						—						—						—						—
Exercise of stock options			47						—						548						—						—						548
Shares withheld for taxes			—						—						(698)						—						—						(698)
Repurchases of common stock (Note 8)			(314)						(3)						—						(25,466)						—						(25,469)
Excise taxes related to repurchases of common stock			—						—						—						(123)						—						(123)
Net income			—						—						—						63,552						—						63,552
Total other comprehensive loss			—						—						—						—						(8,299)						(8,299)
Balance, June 30, 2023			156,807						1,568						237,568						1,610,319						(47,334)						1,802,121
Stock-based compensation			3						—						9,802						—						—						9,802
Shares issued upon vesting			144						1						1,164						—						—						1,165
Exercise of stock options			46						—						533						—						—						533
Shares withheld for taxes			—						—						(7,759)						—						—						(7,759)
Repurchases of common stock (Note 8)			(2,082)						(21)						—						(185,448)						—						(185,469)
Excise taxes related to repurchases of common stock			—						—						—						(1,693)						—						(1,693)
Net income			—						—						—						178,547						—						178,547
Total other comprehensive loss			—						—						—						—						(2,117)						(2,117)
Balance, September 30, 2023			154,918						$	1,548					$	241,308					$	1,601,725					$	(49,451)					$	1,795,130

See accompanying notes to the condensed consolidated financial statements.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in thousands)

			Six Months Ended September 30,
			2024						2023
OPERATING ACTIVITIES
Net income			$	357,946					$	242,099
Reconciliation of net income to net cash provided by (used in) operating activities:
Depreciation, amortization, and accretion			33,750						25,138
Amortization on cloud computing arrangements			1,082						1,131
Bad debt expense			8,845						6,905
Deferred tax expense (benefit)			1,295						(1,266)
Stock-based compensation			19,916						16,719
Loss on disposal of assets			2,811						145
Impairment of operating lease and other long-lived assets			—						793
Changes in operating assets and liabilities:
Trade accounts receivable, net			(249,306)						(193,071)
Inventories			(306,855)						(193,480)
Prepaid expenses and other current assets			182						(35,269)
Income tax receivable			9,737						(8,488)
Net operating lease assets and lease liabilities			(778)						8,909
Other assets			(7,018)						(1,886)
Trade accounts payable			155,774						215,374
Other accrued expenses			(21,506)						(1,479)
Income tax payable			23,582						44,171
Other long-term liabilities			(7,357)						(4,917)
Net cash provided by operating activities			22,100						121,528
INVESTING ACTIVITIES
Purchases of property and equipment			(45,367)						(57,436)
Proceeds from sale of assets			10,925						34
Net cash used in investing activities			(34,442)						(57,402)
FINANCING ACTIVITIES
Proceeds from issuance of stock			1,638						1,165
Proceeds from exercise of stock options			694						1,081
Repurchases of common stock			(256,290)						(210,938)
Cash paid for shares withheld for taxes			(13,056)						(8,457)
Net cash used in financing activities			(267,014)						(217,149)
Effect of foreign currency exchange rates on cash and cash equivalents			2,986						(5,721)
Net change in cash and cash equivalents			(276,370)						(158,744)
Cash and cash equivalents at beginning of period			1,502,051						981,795
Cash and cash equivalents at end of period			$	1,225,681					$	823,051

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in thousands)

(continued)

			Six Months Ended September 30,
			2024						2023
SUPPLEMENTAL CASH FLOW DISCLOSURE
Cash paid during the period
Income taxes			$	90,833					$	47,150
Interest			798						955
Operating leases			33,269						31,370
Non-cash investing activities
Changes in trade accounts payable and other accrued expenses for purchases of property and equipment			2,309						(12,957)
Accrued for asset retirement obligation assets related to leasehold improvements			1,372						718
Leasehold improvements acquired through tenant allowances			—						8,127
Non-cash financing activities
Accrued excise taxes related to repurchases of common stock			2,024						1,816

See accompanying notes to the condensed consolidated financial statements.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

NOTE 1. GENERAL

The Company. Deckers Outdoor Corporation and its wholly owned subsidiaries (collectively, the Company) is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. The Company’s five proprietary brands include the UGG, HOKA, Teva, Koolaburra, and AHNU brands. Refer to the section titled “Reportable Operating Segments,” below within this Note 1, “General,” for more information on the sale of the Sanuk brand during the three months ended September 30, 2024.

The Company sells its products through quality domestic and international retailers, international distributors, and directly to its global consumers through its DTC business, which is comprised of its e-commerce business and retail stores. Independent third-party contractors manufacture all of the Company’s products.

Seasonality. A significant part of the UGG brand’s business has historically been seasonal, requiring the Company to build inventory levels during certain quarters in its fiscal year to support higher selling seasons, which has contributed to variation in its results from quarter to quarter. However, as the Company continues to take steps to diversify and expand its product offerings by creating more year-round styles, and as net sales of the HOKA brand, which generally occur more evenly throughout the year, continue to increase as a percentage of the Company’s aggregate net sales, the Company expects to continue to see the impact from seasonality decrease over time.

Basis of Presentation. The unaudited condensed consolidated financial statements and accompanying notes thereto (referred to herein as condensed consolidated financial statements) as of September 30, 2024, and for the three and six months ended September 30, 2024 (current period), and 2023 (prior period) are prepared in accordance with generally accepted accounting principles in the US (US GAAP) for interim financial information pursuant to Rule 10-01 of Regulation S-X issued by the SEC. Accordingly, the condensed consolidated financial statements do not include all the information and disclosures required by US GAAP for annual financial statements and accompanying notes thereto. The condensed consolidated balance sheet as of March 31, 2024, is derived from the Company’s audited consolidated financial statements. In the opinion of management, the condensed consolidated financial statements include all normal and recurring entries necessary to fairly present the results of the interim periods presented but are not necessarily indicative of actual results to be achieved for full fiscal years or other interim periods. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024 (prior fiscal year), which was filed with the SEC on May 24, 2024 (2024 Annual Report).

Forward Stock Split and Authorized Share Increase. On September 13, 2024, the Company (i) effected a six-for-one forward stock split of its common stock and preferred stock (the stock split), and (ii) increased the number of authorized shares of its common stock from 125,000,000 to 750,000,000, and the number of authorized shares of its capital stock from 130,000,000 to 755,000,000 (the authorized share increase). The stock split and the authorized share increase were effected through the filing of an amendment to the Company’s Amended and Restated Certificate of Incorporation (Charter Amendment) with the Secretary of State of the State of Delaware, which was approved by the Company’s stockholders at the Annual Meeting of Stockholders held on September 9, 2024 (Annual Meeting). The Charter Amendment did not provide for any increase in the number of authorized shares of preferred stock, which remains at 5,000,000 shares. There are no shares of preferred stock outstanding as of September 30, 2024, and March 31, 2024. As a result of the stock split, every one share of common stock outstanding on September 6, 2024, the record date for the stock split, was automatically split into six shares of common stock. The common stock commenced trading on a post-stock split adjusted basis on September 17, 2024.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

All prior period results included in the condensed consolidated financial statements and the related notes within this Quarterly Report have been retroactively adjusted to reflect the effectiveness of the stock split and the authorized share increase. Specifically, all share and per share amounts have been adjusted, including: (i) the number of shares authorized and outstanding on the condensed consolidated balance sheets, (ii) the weighted-average common shares outstanding and the associated earnings per share amounts in the condensed consolidated statements of comprehensive income, as well as the weighted average common shares outstanding disaggregated in Note 9, “Basic and Diluted Shares,” (iii) the number of shares underlying stock awards and the weighted-average grant date fair value of annual stock awards in Note 6, “Stock-Based Compensation,” and (iv) the total number of shares repurchased and the weighted average price per share paid in Note 8, “Stockholders’ Equity.” Further, as there was no change to par value, an amount equal to the par value of the increased shares resulting from the stock split for shares issued was reclassified to common stock from additional paid-in capital, and for share repurchases was reclassified to retained earnings from common stock, in the condensed consolidated balance sheets and the condensed consolidated statements of stockholders’ equity.

Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates. The preparation of the Company’s condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the amounts reported. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. In addition, the Company has considered the potential impact of macroeconomic factors, including inflation, foreign currency exchange rate volatility, changes in interest rates, changes in commodity pricing, changes in discretionary spending, and recessionary concerns, on its business and operations. Although the full impact of these factors is unknown, the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of the reporting date. However, actual results could differ materially from these estimates and assumptions, which may result in material effects on the Company’s financial condition, results of operations, and liquidity. To the extent there are differences between these estimates and actual results, the Company’s condensed consolidated financial statements may be materially affected.

Significant areas requiring the use of management estimates and assumptions relate to inventory write-downs; trade accounts receivable allowances, including variable consideration for net sales provided to customers, such as the sales return asset and liability; contract assets and liabilities; stock-based compensation; impairment assessments, including goodwill, other intangible assets, and long-lived assets; depreciation and amortization; income tax receivables and liabilities; uncertain tax positions; the fair value of financial instruments; the reasonably certain lease term; lease classification; and the Company’s incremental borrowing rate utilized to measure its operating lease assets and lease liabilities.

Foreign Currency Translation. The Company considers the US dollar as its functional currency. The Company’s wholly owned foreign subsidiaries have various assets and liabilities, primarily cash, receivables, and payables, which are denominated in currencies other than its functional currency. The Company remeasures these monetary assets and liabilities using the exchange rate at the end of the reporting period, which results in gains and losses that are recorded in selling, general, and administrative (SG&A) expenses in the condensed consolidated statements of comprehensive income as incurred. In addition, the Company translates assets and liabilities of subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at the end of the reporting period, which results in financial statement translation gains and losses recorded in other comprehensive income or loss (OCI) in the condensed consolidated statements of comprehensive income.

Reportable Operating Segments. As of September 30, 2024, the Company’s five reportable operating segments include the worldwide wholesale operations of the UGG brand, HOKA brand, Teva brand, and Other brands (primarily consisting of the Koolaburra brand, as well as the recently launched AHNU brand), as well as DTC (collectively, the Company’s reportable operating segments).

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

During the three months ended September 30, 2024, the Company entered into an agreement pursuant to which the buyer agreed to purchase the Sanuk brand and certain related assets which was completed on August 15, 2024 (Sanuk Brand Sale Date). The Company determined that the divestiture of the Sanuk brand did not represent a strategic shift that had or will have a major effect on the condensed consolidated results of operations, and therefore results of this business were not classified as discontinued operations. The Company’s financial results for its reportable operating segments present the former Sanuk brand through the Sanuk Brand Sale Date for the current period. Refer to Note 10, “Reportable Operating Segments,” for further information on the Company’s reportable operating segments.

Recent Accounting Pronouncements. The Financial Accounting Standards Board has issued Accounting Standards Updates (ASU) that have been adopted and not yet adopted by the Company as stated below.

Recently Adopted. The following is a summary of an ASU adopted by and its impact on the Company:

Standard						Description						Impact Upon Adoption
ASU 2022-04 - Supplier Finance Program (SFP)						The ASU requires that a buyer in a SFP disclose qualitative and quantitative information about its program on an interim basis, including the nature of the SFP and key terms, outstanding amounts as of the end of the reporting period, and presentation in its financial statements. The interim portion of this ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The annual requirement that requires a buyer in a SFP disclose an activity roll forward of outstanding balances as of the end of the reporting period has not yet been adopted. This annual portion of this ASU is effective on a prospective basis for fiscal years beginning after December 15, 2023. Early adoption is not permitted.						The Company retrospectively adopted this ASU beginning on April 1, 2023, except for the roll forward requirements. This ASU did not have a material impact on the recognition, measurement, or presentation of supplier finance programs in the Company’s annual and interim consolidated financial statements. However, it did result in additional disclosure. Refer to Note 11, “Supplier Finance Program,” for further information on the Company’s SFP key terms and outstanding balances recorded in the condensed consolidated balance sheets. The Company plans to adopt the annual roll forward requirement beginning with its fiscal year (FY) ending March 31, 2025, and does not expect the adoption to have a material impact on its consolidated financial statements.

Not Yet Adopted. The following is a summary of each ASU that has been issued and is applicable to the Company, but which has not yet been adopted, as well as the planned period of adoption, and the expected impact on the Company upon adoption:

Standard						Description						Planned Period of Adoption						Expected Impact on Adoption
ASU 2023-07 - Improvements to Reportable Segment Disclosures						The ASU requires annual and interim disclosures of significant segment expenses, including an amount and composition description for other segment items, and how reported measures of profit or loss are used by the chief operating decision maker (CODM) in assessing segment performance and deciding how to allocate resources. The ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted.						Q4 FY 2025 and Q1 FY 2026						The Company is currently evaluating the impact of the adoption of this ASU on its disclosures in its annual and interim consolidated financial statements.
ASU 2023-09 - Improvements to Income Tax Disclosures						The ASU requires annual disclosures of prescribed standard categories for the components of the effective tax rate reconciliation, disclosure of income taxes paid disaggregated by jurisdiction, and other income-tax related disclosures. The ASU is effective on a prospective basis, with retrospective application permitted, for fiscal years beginning after December 15, 2024. Early adoption is permitted.						Q4 FY 2026						The Company is currently evaluating the impact of the adoption of this ASU on its disclosures in its annual and interim consolidated financial statements.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

NOTE 2. REVENUE RECOGNITION

Disaggregated Revenue. Refer to Note 10, “Reportable Operating Segments,” for further information on the Company’s disaggregation of revenue by reportable operating segment.

Sales Return Asset and Liability. Sales returns are a refund asset for the right to recover the inventory and a refund liability for the stand-ready right of return. The refund asset for the right to recover the inventory is recorded in other current assets and the related refund liability is recorded in other accrued expenses in the condensed consolidated balance sheets.

The following tables summarize changes in the estimated sales returns for the periods presented:

			Recovery Asset						Refund Liability
Balance, March 31, 2024			$	13,866					$	(55,327)
Net additions to sales return liability (1)			32,846						(123,196)
Actual returns			(26,056)						114,513
Balance, September 30, 2024			$	20,656					$	(64,010)

			Recovery Asset						Refund Liability
Balance, March 31, 2023			$	15,685					$	(45,322)
Net additions to sales return liability (1)			24,298						(106,824)
Actual returns			(24,192)						97,969
Balance, September 30, 2023			$	15,791					$	(54,177)

(1) Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual return rights and discretionary authorized returns.

Contract Liabilities. Contract liabilities are recorded in other accrued expenses in the condensed consolidated balance sheets and include loyalty programs and other deferred revenue.

Loyalty Programs. Activity related to loyalty programs was as follows:

			Six Months Ended September 30,
			2024						2023
Beginning balance			$	(17,586)					$	(13,144)
Redemptions and expirations for loyalty certificates and points recognized in net sales			11,103						10,022
Deferred revenue for loyalty points and certificates issued			(13,536)						(11,269)
Ending balance			$	(20,019)					$	(14,391)

Deferred Revenue. Activity related to deferred revenue was as follows:

			Six Months Ended September 30,
			2024						2023
Beginning balance			$	(9,591)					$	(13,448)
Additions of customer cash payments			(50,829)						(33,089)
Revenue recognized			36,332						30,032
Ending balance			$	(24,088)					$	(16,505)

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

Refer to Note 2, “Revenue Recognition,” in the Company’s consolidated financial statements in Part IV of the 2024 Annual Report for further information on the Company’s variable consideration accounting policies, including sales return asset and liability, as well as contract liabilities.

NOTE 3. FAIR VALUE MEASUREMENTS

The Company measures certain financial assets and liabilities at fair value on a recurring basis. Refer to Note 4, “Fair Value Measurements,” in the Company’s consolidated financial statements in Part IV of the 2024 Annual Report for further information on the Company’s fair value accounting policies.

Assets and liabilities that are measured on a recurring basis at fair value in the condensed consolidated balance sheets are as follows:

			As of						Measured Using
			September 30, 2024			Level 1						Level 2						Level 3
Assets:
Cash equivalents:
Money-market funds			$	842,807					$	842,807					$	—					$	—
Other current assets:
Designated Derivative Contracts asset			103						—						103						—
Non-Designated Derivative Contracts asset			45						—						45						—
Other assets:
Non-qualified deferred compensation asset			16,406						16,406						—						—
Total assets measured at fair value			$	859,361					$	859,213					$	148					$	—
Liabilities:
Other accrued expenses:
Designated Derivative Contracts liability			$	(4,688)					$	—					$	(4,688)					$	—
Non-qualified deferred compensation liability			(1,200)						(1,200)						—						—
Other long-term liabilities:
Non-qualified deferred compensation liability			(24,358)						(24,358)						—						—
Total liabilities measured at fair value			$	(30,246)					$	(25,558)					$	(4,688)					$	—

			As of						Measured Using
			March 31, 2024			Level 1						Level 2						Level 3
Assets:
Cash equivalents:
Money-market funds			$	1,152,083					$	1,152,083					$	—					$	—
Other assets:
Non-qualified deferred compensation asset			13,553						13,553						—						—
Total assets measured at fair value			$	1,165,636					$	1,165,636					$	—					$	—
Liabilities:
Other accrued expenses:
Non-qualified deferred compensation liability			$	(408)					$	(408)					$	—					$	—
Other long-term liabilities:
Non-qualified deferred compensation liability			(16,229)						(16,229)						—						—
Total liabilities measured at fair value			$	(16,637)					$	(16,637)					$	—					$	—

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

The fair value of Designated Derivative Contracts and Non-Designated Derivative Contracts is determined using quoted forward spot rates at the end of the applicable reporting period from counterparties, which are corroborated by market-based pricing (Level 2), with related assets and liabilities recorded in other current assets and other accrued expenses, respectively, in the condensed consolidated balance sheets. Refer to Note 7, “Derivative Instruments,” for further information, including the definition of the term Designated Derivative Contracts and Non-Designated Derivative Contracts.

NOTE 4. INCOME TAXES

Income tax expense and the effective income tax rate were as follows:

			Three Months Ended September 30,												Six Months Ended September 30,
			2024						2023						2024						2023
Income tax expense			$	76,591					$	55,770					$	110,119					$	73,582
Effective income tax rate			24.0		%				23.8		%				23.5		%				23.3		%

The tax provisions during the three and six months ended September 30, 2024, and 2023, were computed using the estimated effective income tax rate applicable to each of the domestic and foreign taxable jurisdictions for the fiscal years ending March 31, 2025, and March 31, 2024, respectively, and were adjusted for discrete items that occurred within the periods presented above. During the current period, the net increase in the effective income tax rate, compared to the prior period, was primarily due to the effects of discrete items, including a change in valuation allowance on tax attributes and a change in return-to-provision differences, partially offset by net discrete tax benefits for stock-based compensation.

Recent Tax Law Changes. The Organization for Economic Co-operation and Development (commonly known as OECD) has released Pillar Two model rules introducing a 15% global minimum tax rate for large multinational corporations to be effective starting with tax periods ending in 2024. Various jurisdictions the Company operates in have enacted or plan to enact legislation beginning in calendar year 2024 or in subsequent years. The enactment of Pillar Two legislation did not have a material effect on the Company’s condensed consolidated statements of comprehensive income during the current period. The Company will continue to monitor and reflect the impact of such legislative changes in future periods, as each of the respective jurisdictions enact the legislation and the legislation becomes effective.

NOTE 5. COMMITMENTS AND CONTINGENCIES

Leases. The Company primarily leases retail stores, showrooms, offices, and distribution facilities under operating lease contracts. There were no material changes outside the ordinary course of business during the six months ended September 30, 2024, to the operating lease terms disclosed in the 2024 Annual Report.

Supplemental information for amounts presented in the condensed consolidated statements of cash flows related to operating leases, were as follows:

			Three Months Ended September 30,												Six Months Ended September 30,
			2024						2023						2024						2023
Non-cash operating activities (1)
Operating lease assets obtained in exchange for lease liabilities			$	3,762					$	13,152					$	16,098					$	34,739
Reductions to operating lease assets for reductions to lease liabilities			(15)						(7,606)						(1,121)						(7,671)

(1) Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements, as well as reductions for tenant improvement allowances.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

Operating lease liabilities recorded in the condensed consolidated balance sheets exclude an aggregate of $15,734 of undiscounted minimum lease payments due pursuant to leases signed but not yet commenced during the six months ended September 30, 2024, and through October 11, 2024, primarily for a new HOKA brand retail store lease in Paris that the Company expects will be operational during the quarter ending December 31, 2024.

Purchase Obligations. There were no material changes outside the ordinary course of business during the six months ended September 30, 2024, to purchase obligations disclosed in the 2024 Annual Report.

Litigation. From time to time, the Company is involved in various legal proceedings, disputes, and other claims arising in the ordinary course of business, including employment, intellectual property, and product liability claims. Although the results of these matters cannot be predicted with certainty, the Company believes it is not currently a party to any legal proceedings, disputes, or other claims for which a material loss is considered probable and for which the amount (or range) of loss is reasonably estimable. However, regardless of the merit of the claims raised or the outcome, these matters can have an adverse impact on the Company as a result of legal costs, diversion of management’s time and resources, and other factors.

Refer to Note 7, “Commitments and Contingencies,” in the Company’s consolidated financial statements in Part IV of the 2024 Annual Report for further information on the Company’s contractual obligations and commitments.

NOTE 6. STOCK-BASED COMPENSATION

Stock Incentive Plans. In September 2015, the Company’s stockholders approved the 2015 Stock Incentive Plan (2015 SIP), which initially reserved 7,650,000 shares of the Company’s common stock for issuance to employees, directors, consultants, independent contractors, and advisors. The 2015 SIP provided for the issuance of a variety of stock-based compensation awards, including time-based restricted stock units (RSUs), performance-based restricted stock units (PSUs), long-term incentive plan PSUs (LTIP PSUs), stock appreciation rights, stock bonuses, incentive stock options (ISOs), and non-qualified stock options (NQSOs). Refer to Note 8, “Stock-Based Compensation,” in the Company’s consolidated financial statements in Part IV of the 2024 Annual Report for additional information about the terms of the 2015 SIP.

In September 2024, the Company’s stockholders approved the 2024 Stock Incentive Plan (2024 SIP), which is intended to replace the 2015 SIP. Consistent with the 2015 SIP, the primary purpose of the 2024 SIP is to encourage ownership in the Company by key personnel, whose long-term service is considered essential to the Company’s continued success. As a result of the stock split, the number of shares of common stock reserved for issuance under the 2024 SIP and the number of shares underlying outstanding equity awards and the exercise price of stock options were adjusted proportionately.

The 2024 SIP initially reserves 7,800,000 shares of the Company’s common stock for issuance to employees, directors, consultants, and independent contractors, less one share for every one share granted under the 2015 SIP after March 31, 2024 and prior to September 9, 2024, the effective date of the 2024 SIP, subject to an increase from the return of shares under the 2015 SIP as described below. The terms of the 2024 SIP are substantially similar to the terms of the 2015 SIP. The 2024 SIP provides for the issuance of a variety of stock-based compensation awards, including RSUs, PSUs, LTIP PSUs, stock appreciation rights, stock bonuses, ISOs, and NQSOs. The maximum aggregate number of shares that may be issued to employees under the 2024 SIP through the exercise of ISOs is 4,500,000.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

The Company will not grant any further equity awards under the 2015 SIP. Outstanding awards under the 2015 SIP will remain outstanding, unchanged and subject to the terms of the 2015 SIP and their respective award agreements. Shares subject to awards that are forfeited, expire or are otherwise terminated without shares being issued, or shares withheld to pay the exercise price of an award or to satisfy tax withholding obligations, including shares subject to awards granted under the 2015 SIP that are outstanding after March 31, 2024, will be returned to the pool of shares available for grant and issuance under the 2024 SIP. As of September 30, 2024, 7,822,608 shares of common stock remained available for future issuance under the 2024 SIP, subject to adjustment for future stock splits, stock dividends, and similar changes in capitalization.

Annual Stock Awards. The Company granted the following awards under the 2015 SIP during the periods presented:

						Six Months Ended September 30,
						2024												2023
Award Type						Number of Shares						Weighted-Average Grant Date Fair Value						Number of Shares						Weighted-Average Grant Date Fair Value
RSUs						144,462						$	157.94					212,226						$	91.65
LTIP PSUs (1)						68,556						171.82						125,076						105.65

(1) The amounts granted are at the target performance level under the terms of the applicable LTIP PSUs.

During the six months ended September 30, 2024, with the exception of the RSU and LTIP PSU awards summarized above, no additional material awards were granted under the 2015 SIP.

For the LTIP PSUs granted during fiscal years ending March 31, 2025, 2024, and 2023, the Company expects to exceed the minimum threshold target performance criteria based on the Company’s current long-range forecast as of September 30, 2024. Refer to Note 8, “Stock-Based Compensation,” in the Company’s consolidated financial statements in Part IV of the 2024 Annual Report for further information on the Company’s prior grants, including terms of each grant under the 2015 SIP.

There were no awards granted under the 2024 SIP during the six months ended September 30, 2024.

Employee Stock Purchase Plans. In September 2015, the Company’s stockholders approved the 2015 Employee Stock Purchase Plan (2015 ESPP), which authorized 6,000,000 shares of the Company’s common stock for sale to eligible employees using after-tax payroll deductions. Following the issuance of shares under the 2015 ESPP to employees who are participating in the offering period ending February 28, 2025, the 2015 ESPP will be terminated, and no new offering periods under the 2015 ESPP will commence thereafter. Refer to Note 8, “Stock-Based Compensation,” in the Company’s consolidated financial statements in Part IV of the 2024 Annual Report for additional information related to the terms of the 2015 ESPP.

In September 2024, the Company’s stockholders approved the 2024 Employee Stock Purchase Plan (2024 ESPP), which is intended to replace the 2015 ESPP. The 2024 ESPP reserves 6,000,000 shares of the Company’s common stock for sale to eligible employees. The terms of the 2024 ESPP are substantially similar to the terms of the 2015 ESPP. Each offering period under the 2024 ESPP is anticipated to run for approximately six months with purchases occurring on the last day of each offering period at a 15% discount to the closing price on that date. The first offering period is expected to commence on March 1, 2025.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

Unrecognized Stock-Based Compensation. Total remaining unrecognized stock-based compensation as of September 30, 2024, related to non-vested awards that the Company considers probable to vest and the weighted-average period over which the cost is expected to be recognized in future periods, is as follows:

Award Type						Unrecognized Stock-Based Compensation						Weighted-Average Remaining Vesting Period (Years)
RSUs						$	30,176					1.4
LTIP PSUs						26,295						1.2
Total						$	56,471

NOTE 7. DERIVATIVE INSTRUMENTS

The Company enters into foreign currency forward or option contracts (derivative contracts) with maturities of 15 months or less to manage foreign currency risk and certain of these derivative contracts are designated as cash flow hedges of forecasted sales (Designated Derivative Contracts).

The after-tax unrealized gains or losses from changes in fair value of Designated Derivative Contracts are recorded as a component of accumulated other comprehensive loss (AOCL) in the condensed consolidated balance sheets and are reclassified to net sales in the condensed consolidated statements of comprehensive income in the same period or periods as the related sales are recognized. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and the accumulated gains or losses in AOCL related to the hedging relationship are immediately recorded in OCI in the condensed consolidated statements of comprehensive income. Refer to Note 1, “General,” in the Company’s consolidated financial statements in Part IV of the 2024 Annual Report for further information regarding the Company’s derivative instruments accounting policy.

The Company also enters into derivative contracts that are not designated as cash flow hedges (Non-Designated Derivative Contracts), to offset a portion of the anticipated gains and losses on certain intercompany balances until the expected time of repayment. Changes in the fair value of Non-Designated Derivative Contracts are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income. The changes in fair value for these contracts are generally offset by the remeasurement gains or losses associated with the underlying foreign currency-denominated intercompany balances, which are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income.

As of September 30, 2024, the Company has the following derivative contracts recorded at fair value in the condensed consolidated balance sheets:

			Designated Derivative Contracts						Non-Designated Derivative Contracts						Total
Notional value			$	191,009					$	11,144					$	202,153
Fair value recorded in other current assets			103						45						148
Fair value recorded in other accrued expenses			(4,688)						—						(4,688)

As of September 30, 2024, four counterparties hold the Company’s outstanding derivative contracts, all of which are expected to mature in the next six months. As of March 31, 2024, the Company had no outstanding derivative contracts.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

The following table summarizes the effect of Designated Derivative Contracts and the related income tax effects of unrealized gains or losses recorded in the condensed consolidated statements of comprehensive income for changes in AOCL:

			Three Months Ended September 30,												Six Months Ended September 30,
			2024						2023						2024						2023
(Loss) gain recorded in OCI			$	(5,488)					$	4,705					$	(4,356)					$	5,116
Reclassifications from AOCL into net sales			(228)						(170)						(228)						(149)
Income tax benefit (expense) in OCI			1,394						(1,132)						1,118						(1,212)
Total			$	(4,322)					$	3,403					$	(3,466)					$	3,755

The non-performance risk of the Company and its counterparties did not have a material impact on the fair value of its derivative contracts. As of September 30, 2024, the amount of unrealized gains on derivative contracts recorded in AOCL is expected to be reclassified into net sales within the next six months. Refer to Note 8, “Stockholders’ Equity,” for further information on the components of AOCL.

NOTE 8. STOCKHOLDERS’ EQUITY

Stock Repurchase Program. The Company’s Board of Directors (Board) has approved various authorizations under the Company’s stock repurchase program to repurchase shares of its common stock in the open market or in privately negotiated transactions, subject to market conditions, applicable legal requirements, and other factors (collectively, the stock repurchase program). As of September 30, 2024, the aggregate remaining approved amount under the stock repurchase program is $685,413. The stock repurchase program does not obligate the Company to acquire any amount of common stock and may be suspended at any time at the Company’s discretion.

Stock repurchase activity under the Company’s stock repurchase program was as follows:

			Six Months Ended September 30,
			2024						2023
Total number of shares repurchased (1)			1,747,680						2,396,328
Weighted average price per share paid			$	146.65					$	88.03
Dollar value of shares repurchased (2) (3)			$	256,290					$	210,938

(1) All share repurchases were made pursuant to the Company’s stock repurchase program in open-market transactions.

(2) The dollar value of shares repurchased excludes the cost of broker commissions, excise taxes, and other costs.

(3) May not calculate on rounded dollars.

Subsequent to September 30, 2024, through October 11, 2024, the Company repurchased 85,960 shares at a weighted average price of $158.54 per share for $13,628 and had $671,785 remaining authorized under the stock repurchase program.

Accumulated Other Comprehensive Loss. The components within AOCL, net of tax, recorded in the condensed consolidated balance sheets, are as follows:

			September 30, 2024						March 31, 2024
Unrealized loss on cash flow hedges			$	(3,466)					$	—
Cumulative foreign currency translation loss			(40,292)						(50,733)
Total			$	(43,758)					$	(50,733)

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

NOTE 9. BASIC AND DILUTED SHARES

The reconciliation of basic to diluted weighted-average common shares outstanding was as follows:

			Three Months Ended September 30,												Six Months Ended September 30,
			2024						2023						2024						2023
Basic			152,240,000						156,188,000						152,552,000						156,586,000
Dilutive effect of equity awards			538,000						882,000						575,000						917,000
Diluted			152,778,000						157,070,000						153,127,000						157,503,000
Excluded
RSUs			91,000						112,000						92,000						199,000
LTIP PSUs			422,000						700,000						422,000						700,000

Excluded Awards. The equity awards excluded from the calculation of the dilutive effect have been excluded due to one of the following: (1) the shares were antidilutive; (2) the necessary conditions had not been satisfied for the shares to be deemed issuable based on the Company’s performance for the relevant performance period; or (3) the Company recorded a net loss during the period presented (such that inclusion of these equity awards in the calculation would have been antidilutive). The number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. For those awards subject to the achievement of performance criteria, the actual number of shares to be issued pursuant to such awards will be based on Company performance in future periods, net of forfeitures, and may be materially lower than the number of shares presented, which could result in a lower dilutive effect. Refer to Note 6, “Stock-Based Compensation,” within this Quarterly Report and to Note 8, “Stock-Based Compensation,” in the Company’s consolidated financial statements in Part IV of the 2024 Annual Report for further information on the Company’s equity incentive plans.

NOTE 10. REPORTABLE OPERATING SEGMENTS

Information reported to the CODM, who is the Company’s Chief Executive Officer (CEO), President, and Principal Executive Officer (PEO), is organized into the Company’s five reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources. The CODM reviews such operations in the aggregate with the reportable operating segments.

Segment Net Sales and Income from Operations. The Company evaluates reportable operating segment performance primarily based on net sales and income (loss) from operations. The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations of each of the reportable operating segments includes only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, research and development, design, sales and marketing, depreciation, amortization, and the direct costs of employees within those reportable operating segments.

The Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments, which include unallocable overhead costs associated with the Company’s warehouses and DCs, certain executive and stock-based compensation, accounting, finance, legal, IT, human resources, and facilities, among others. Inter-segment sales from the Company’s wholesale reportable operating segments to the DTC reportable operating segment are at the Company’s cost, and there is no inter-segment profit on these inter-segment sales, nor are they reflected in income (loss) from operations of the wholesale reportable operating segments as these transactions are eliminated in consolidation.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:

			Three Months Ended September 30,												Six Months Ended September 30,
			2024						2023						2024						2023
Net sales
UGG brand wholesale			$	512,401					$	451,841					$	654,954					$	573,386
HOKA brand wholesale			362,344						262,973						695,076						523,820
Teva brand wholesale			12,132						12,150						43,491						47,282
Sanuk brand wholesale (1)			1,895						3,348						6,328						9,818
Other brands wholesale			24,881						29,862						28,586						31,289
Direct-to-Consumer (1)			397,667						331,733						708,232						582,103
Total			$	1,311,320					$	1,091,907					$	2,136,667					$	1,767,698

			Three Months Ended September 30,												Six Months Ended September 30,
			2024						2023						2024						2023
Income (loss) from operations
UGG brand wholesale			$	195,494					$	165,902					$	233,924					$	182,768
HOKA brand wholesale			115,941						81,873						240,635						168,397
Teva brand wholesale			(1,216)						(647)						5,573						8,590
Sanuk brand wholesale (1)			(3,258)						(303)						(1,655)						456
Other brands wholesale			2,023						6,459						466						4,418
Direct-to-Consumer (1)			143,447						112,255						249,857						187,717
Unallocated overhead costs			(147,345)						(140,922)						(290,907)						(256,993)
Total			$	305,086					$	224,617					$	437,893					$	295,353

(1) Represents financial results from July 1, 2024 and April 1, 2024, through the Sanuk Brand Sale Date for the current period. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” for further information.

Segment Assets. Assets allocated to each reportable operating segment include trade accounts receivable, net, inventories, property and equipment, net, operating lease assets, goodwill, other intangible assets, net, and certain other assets that are specifically identifiable for one of the Company’s reportable operating segments. Unallocated assets are those assets not directly related to a specific reportable operating segment and generally include cash and cash equivalents, deferred tax assets, net, and various other corporate assets shared by the Company’s reportable operating segments.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

Assets allocated to each reportable operating segment, with a reconciliation to the condensed consolidated balance sheets, are as follows:

			September 30, 2024						March 31, 2024
Assets
UGG brand wholesale			$	803,422					$	247,136
HOKA brand wholesale			448,495						436,147
Teva brand wholesale			39,776						81,703
Sanuk brand wholesale (1)			929						18,526
Other brands wholesale			41,390						9,379
Direct-to-Consumer			285,241						263,840
Total assets from reportable operating segments			1,619,253						1,056,731
Unallocated cash and cash equivalents			1,225,681						1,502,051
Unallocated deferred tax assets, net			73,322						72,584
Unallocated other corporate assets			479,880						504,213
Total			$	3,398,136					$	3,135,579

(1) Effective on the Sanuk Brand Sale Date, the Sanuk brand and certain related assets were sold and the balance as of September 30, 2024 primarily represents unsold accounts receivable yet to be collected, all within the former Sanuk brand wholesale reportable operating segment. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” for further information.

NOTE 11. CONCENTRATION OF BUSINESS

Regions and Customers. The Company sells its products globally to customers and consumers in various countries, with net sales concentrations as follows:

			Three Months Ended September 30,												Six Months Ended September 30,
			2024						2023						2024						2023
International net sales			$	457,410					$	343,874					$	766,901					$	600,130
% of net sales			34.9		%				31.5		%				35.9		%				33.9		%
Net sales in foreign currencies			$	375,182					$	292,344					$	552,806					$	441,315
% of net sales			28.6		%				26.8		%				25.9		%				25.0		%
Ten largest global customers as % of net sales			32.5		%				33.6		%				27.6		%				27.9		%

For the three and six months ended September 30, 2024, and 2023, no single foreign country comprised 10.0% or more of the Company’s total net sales. For the three and six months ended September 30, 2024, and 2023, no single global customer accounted for 10.0% or more of the Company’s total net sales.

As of September 30, 2024, the Company has one customer that represents 12.1% of trade accounts receivable, net, compared to two customers that in total represented 31.2% of trade accounts receivable, net as of March 31, 2024. Management performs regular evaluations concerning the ability of the Company’s customers to satisfy their obligations to the Company and recognizes an allowance for doubtful accounts based on these evaluations.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended September 30, 2024, and 2023

(dollar amounts in thousands, except per share or share data)

Long-Lived Assets. Long-lived assets, which consist of property and equipment, net, recorded in the condensed consolidated balance sheets, are as follows:

			September 30, 2024						March 31, 2024
United States			$	282,872					$	270,561
Foreign (1)			36,708						31,561
Total			$	319,580					$	302,122

(1) No single foreign country’s property and equipment, net, represents 10.0% or more of the Company’s total property and equipment, net, as of September 30, 2024, and March 31, 2024.

NOTE 12. SUPPLIER FINANCE PROGRAM

Supplier Finance Program. The Company has a voluntary SFP administered through a third-party platform that provides the Company’s independent manufacturers that supply its inventory (inventory suppliers) the opportunity to sell their receivables due from the Company to participating financial institutions in advance of the invoice due date, at the sole discretion of both inventory suppliers and the financial institutions. The Company is not party to the agreements between these third parties and has no economic interest in an inventory suppliers’ decision to sell a receivable.

The Company’s payment obligations, including the amounts due and payment terms, which generally do not exceed 90 days, are not impacted by the inventory suppliers’ election to participate in the SFP, and the Company provides no guarantees to any third parties under the SFP. Accordingly, amounts due to inventory suppliers that elected to participate in the SFP are presented in trade accounts payable in the condensed consolidated balance sheets. As of September 30, 2024, and March 31, 2024, the Company had $2,354 and $3,483, respectively, of balances outstanding related to the SFP recorded in trade accounts payable in the condensed consolidated balance sheets. Payments made in connection with the SFP are reported as cash used in operating activities in the trade accounts payable line item of the condensed consolidated statements of cash flows.