Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Information

v3.24.3
Segment and Geographic Information
9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information
(9)
Segment and Geographic Information

The Company has two reportable segments, Wholesale and Direct-to-Consumer. Management evaluates segment performance based primarily on sales and gross margin. Other costs and expenses of the Company are analyzed on an aggregate basis and not allocated to the segments. The following summarizes the Company’s operations by segment and geographic area:

Segment Information

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Wholesale sales

 

$

1,416,003

 

 

$

1,174,596

 

 

$

3,969,812

 

 

$

3,542,172

 

Gross profit

 

 

605,457

 

 

 

510,043

 

 

 

1,738,479

 

 

 

1,453,593

 

Gross margin

 

 

42.8

%

 

 

43.4

%

 

 

43.8

%

 

 

41.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct-to-Consumer sales

 

$

931,702

 

 

$

850,362

 

 

$

2,787,123

 

 

$

2,497,230

 

Gross profit

 

 

617,589

 

 

 

561,875

 

 

 

1,850,638

 

 

 

1,657,428

 

Gross margin

 

 

66.3

%

 

 

66.1

%

 

 

66.4

%

 

 

66.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

2,347,705

 

 

$

2,024,958

 

 

$

6,756,935

 

 

$

6,039,402

 

Gross profit

 

 

1,223,046

 

 

 

1,071,918

 

 

 

3,589,117

 

 

 

3,111,021

 

Gross margin

 

 

52.1

%

 

 

52.9

%

 

 

53.1

%

 

 

51.5

%

 

 

(in thousands)

 

As of
September 30, 2024

 

 

As of
December 31, 2023

 

Identifiable assets

 

 

 

 

 

 

Wholesale

 

$

4,303,324

 

 

$

3,607,537

 

Direct-to-Consumer

 

 

4,342,717

 

 

 

3,939,814

 

Total

 

$

8,646,041

 

 

$

7,547,351

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Additions to property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

$

57,569

 

 

$

65,667

 

 

$

154,929

 

 

$

173,099

 

Direct-to-Consumer

 

 

56,329

 

 

 

25,620

 

 

 

128,506

 

 

 

65,613

 

Total

 

$

113,898

 

 

$

91,287

 

 

$

283,435

 

 

$

238,712

 

 

Geographic Information

 

Geographic sales

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

514,632

 

 

$

407,670

 

 

$

1,437,497

 

 

$

1,240,355

 

Domestic Direct-to-Consumer

 

 

401,374

 

 

 

386,883

 

 

 

1,141,158

 

 

 

1,096,909

 

Total domestic sales

 

 

916,006

 

 

 

794,553

 

 

 

2,578,655

 

 

 

2,337,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Wholesale

 

 

901,371

 

 

 

766,926

 

 

 

2,532,315

 

 

 

2,301,817

 

International Direct-to-Consumer

 

 

530,328

 

 

 

463,479

 

 

 

1,645,965

 

 

 

1,400,321

 

Total international sales

 

 

1,431,699

 

 

 

1,230,405

 

 

 

4,178,280

 

 

 

3,702,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

2,347,705

 

 

$

2,024,958

 

 

$

6,756,935

 

 

$

6,039,402

 

 

Regional Sales

 

 

 

 

 

 

 

 

 

 

 

 

Americas (AMER)

 

$

1,156,073

 

 

$

1,017,447

 

 

$

3,276,469

 

 

$

2,990,384

 

Europe, Middle East & Africa (EMEA)

 

 

625,612

 

 

 

480,377

 

 

 

1,745,798

 

 

 

1,448,221

 

Asia Pacific (APAC)

 

 

566,020

 

 

 

527,134

 

 

 

1,734,668

 

 

 

1,600,797

 

Total sales

 

$

2,347,705

 

 

$

2,024,958

 

 

$

6,756,935

 

 

$

6,039,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China sales

 

$

252,422

 

 

$

267,602

 

 

$

884,678

 

 

$

851,956

 

 

(in thousands)

 

As of
September 30, 2024

 

 

As of
December 31, 2023

 

Property, plant and equipment, net

 

 

 

 

 

 

Domestic

 

$

1,196,938

 

 

$

957,569

 

International

 

 

585,668

 

 

 

549,121

 

Total

 

$

1,782,606

 

 

$

1,506,690

 

 

 

 

 

 

 

 

China property plant and equipment, net

 

$

293,840

 

 

$

286,854

 

 

The Company’s sales to its five largest customers accounted for 9.9% and 8.2% of total sales for the three months ended September 30, 2024 and 2023, and for the nine months ended September 30, 2024 and 2023 were 9.0% and 7.8%.

Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Net assets held outside the U.S. were $5.8 billion and $5.1 billion at September 30, 2024 and December 31, 2023.

The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. Domestic accounts receivable generally do not require collateral. Foreign accounts receivables are generally collateralized by letters of credit. The Company’s additions to the provision for expected credit losses for the three months ended September 30, 2024 and 2023 were $1.1 million and $1.0 million, and for the nine months ended September 30, 2024 and 2023 were $3.8 million and $2.1 million.

The Company’s accounts receivables, excluding allowances for bad debts and chargebacks, by geography are summarized as follows:

 

(in thousands)

 

As of
September 30, 2024

 

 

As of
December 31, 2023

 

Domestic Accounts Receivable

 

$

411,631

 

 

$

276,918

 

International Accounts Receivable

 

 

840,212

 

 

 

641,249

 

 

 

The Company’s top five manufacturers produced the following:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(percentage of total production)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Manufacturer #1

 

 

21.8

 

 

 

24.7

 

 

 

20.6

 

 

 

21.4

 

Manufacturer #2

 

 

6.4

 

 

 

7.6

 

 

 

6.9

 

 

 

6.9

 

Manufacturer #3

 

 

6.0

 

 

 

5.9

 

 

 

5.9

 

 

 

6.3

 

Manufacturer #4

 

 

6.0

 

 

 

5.6

 

 

 

5.9

 

 

 

5.5

 

Manufacturer #5

 

 

3.6

 

 

 

5.1

 

 

 

3.6

 

 

 

4.9

 

Total

 

 

43.8

 

 

 

48.9

 

 

 

42.9

 

 

 

45.0