Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2024 | May 16, 2024 | Sep. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2024 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37873 | ||
Entity Registrant Name | e.l.f. Beauty, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4464131 | ||
Entity Address, Address Line One | 570 10th Street | ||
Entity Address, City or Town | Oakland, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94607 | ||
City Area Code | (510) | ||
Local Phone Number | 778-7787 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | ELF | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.2 | ||
Entity Common Stock, Shares Outstanding | 55,939,080 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the registrant’s 2024 annual meeting of stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended March 31, 2024. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001600033 |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2024 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | San Francisco, CA |
Auditor Firm ID | 34 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 108,183 | $ 120,778 |
Accounts receivable, net | 123,797 | 67,928 |
Inventory, net | 191,489 | 81,323 |
Prepaid expenses and other current assets | 53,608 | 33,296 |
Total current assets | 477,077 | 303,325 |
Property and equipment, net | 13,974 | 7,874 |
Intangible assets, net | 225,094 | 78,041 |
Goodwill | 340,600 | 171,620 |
Other assets | 72,502 | 34,741 |
Total assets | 1,129,247 | 595,601 |
Current liabilities: | ||
Current portion of long-term debt and finance lease obligations | 100,307 | 5,575 |
Accounts payable | 81,075 | 31,427 |
Accrued expenses and other current liabilities | 117,733 | 70,974 |
Total current liabilities | 299,115 | 107,976 |
Long-term debt and finance lease obligations | 161,819 | 60,881 |
Deferred tax liabilities | 3,666 | 3,742 |
Long-term operating lease obligations | 21,459 | 11,201 |
Other long-term liabilities | 616 | 784 |
Total liabilities | 486,675 | 184,584 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of March 31, 2024 and March 31, 2023; 55,583,660 and 53,770,482 shares issued and outstanding as of March 31, 2024 and March 31, 2023, respectively | 555 | 535 |
Additional paid-in capital | 936,403 | 832,481 |
Accumulated other comprehensive loss | (50) | 0 |
Accumulated deficit | (294,336) | (421,999) |
Total stockholders’ equity | 642,572 | 411,017 |
Total liabilities and stockholders’ equity | $ 1,129,247 | $ 595,601 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 55,583,660 | 53,770,482 |
Common stock, shares outstanding (in shares) | 55,583,660 | 53,770,482 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 1,023,932 | $ 578,844 | $ 392,155 |
Cost of sales | 299,836 | 188,448 | 140,423 |
Gross profit | 724,096 | 390,396 | 251,732 |
Selling, general and administrative expenses | 574,418 | 322,253 | 221,912 |
Restructuring expense | 0 | 0 | 50 |
Operating income | 149,678 | 68,143 | 29,770 |
Other income (expense), net | 1,210 | (1,875) | (1,438) |
Impairment of equity investment | (2,875) | 0 | 0 |
Interest expense, net | (7,023) | (2,018) | (2,441) |
Loss on extinguishment of debt | 0 | (176) | (460) |
Income before provision for income taxes | 140,990 | 64,074 | 25,431 |
Income tax provision | (13,327) | (2,544) | (3,661) |
Net income | $ 127,663 | $ 61,530 | $ 21,770 |
Net income per share: | |||
Basic (in USD per share) | $ 2.33 | $ 1.17 | $ 0.43 |
Diluted (in USD per share) | $ 2.21 | $ 1.11 | $ 0.41 |
Weighted average shares outstanding: | |||
Basic (in shares) | 54,747,930 | 52,474,811 | 50,940,808 |
Diluted (in shares) | 57,788,454 | 55,337,554 | 53,654,303 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 127,663 | $ 61,530 | $ 21,770 |
Other comprehensive loss, net of tax | |||
Foreign currency translation adjustment | (50) | 0 | 0 |
Other comprehensive loss, net of tax | (50) | 0 | 0 |
Comprehensive income | $ 127,613 | $ 61,530 | $ 21,770 |
Consolidated statements of stoc
Consolidated statements of stockholders' equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit |
Beginning balance (in shares) at Mar. 31, 2021 | 50,400,510 | ||||
Beginning balance at Mar. 31, 2021 | $ 269,646 | $ 504 | $ 774,441 | $ 0 | $ (505,299) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 21,770 | 21,770 | |||
Stock based compensation | 19,336 | 19,336 | |||
Exercise of stock options and vesting of restricted stock (in shares) | 1,123,797 | ||||
Exercise of stock options and vesting of restricted stock | 1,677 | $ 11 | 1,666 | ||
Foreign currency translation adjustment | 0 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 51,524,307 | ||||
Ending balance at Mar. 31, 2022 | 312,429 | $ 515 | 795,443 | 0 | (483,529) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 61,530 | 61,530 | |||
Stock based compensation | 29,005 | 29,005 | |||
Exercise of stock options and vesting of restricted stock (in shares) | 2,047,270 | ||||
Exercise of stock options and vesting of restricted stock | 8,053 | $ 20 | 8,033 | ||
Foreign currency translation adjustment | $ 0 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 53,770,482 | 53,571,577 | |||
Ending balance at Mar. 31, 2023 | $ 411,017 | $ 535 | 832,481 | 0 | (421,999) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 127,663 | 127,663 | |||
Stock based compensation | 40,609 | 40,609 | |||
Exercise of stock options and vesting of restricted stock (in shares) | 1,359,300 | ||||
Exercise of stock options and vesting of restricted stock | 5,561 | $ 14 | 5,547 | ||
Issuance of common stock as consideration for Acquisition (in shares) | 577,659 | ||||
Issuance of common stock as consideration for Acquisition | 57,772 | $ 6 | 57,766 | ||
Foreign currency translation adjustment | $ (50) | (50) | |||
Ending balance (in shares) at Mar. 31, 2024 | 55,583,660 | 55,508,536 | |||
Ending balance at Mar. 31, 2024 | $ 642,572 | $ 555 | $ 936,403 | $ (50) | $ (294,336) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | |||
Net income | $ 127,663 | $ 61,530 | $ 21,770 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 35,913 | 22,164 | 27,083 |
Restructuring expense | 0 | 0 | 50 |
Stock based compensation expense | 40,625 | 29,117 | 19,646 |
Amortization of debt issuance costs and discount on debt | 430 | 346 | 394 |
Deferred income taxes | (3,276) | (6,401) | (3,701) |
Impairment of equity investment | 2,875 | 0 | 0 |
Acquisition-related seller expenses | (10,549) | 0 | 0 |
Loss on extinguishment of debt | 0 | 176 | 460 |
Other, net | 1,227 | 179 | 496 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (49,598) | (22,432) | (5,597) |
Inventory | (93,930) | 3,174 | (27,655) |
Prepaid expenses and other assets | (55,182) | (24,553) | (10,555) |
Accounts payable and accrued expenses | 81,215 | 42,995 | 1,498 |
Other liabilities | (6,259) | (4,412) | (4,376) |
Net cash provided by operating activities | 71,154 | 101,883 | 19,513 |
Cash flows from investing activities: | |||
Acquisition, net of cash acquired | (274,973) | 0 | 0 |
Purchase of property and equipment | (8,659) | (1,723) | (4,818) |
Investment contributions | (1,028) | 0 | 0 |
Net cash used in investing activities | (284,660) | (1,723) | (4,818) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit | 89,500 | 0 | 26,480 |
Repayment of revolving line of credit | 0 | 0 | (26,480) |
Proceeds from long-term debt | 115,000 | 0 | 25,581 |
Repayment of long-term debt | (7,875) | (30,000) | (54,525) |
Debt issuance costs paid | (665) | 0 | (1,064) |
Cash received from issuance of common stock | 5,561 | 8,053 | 1,677 |
Other, net | (576) | (788) | (779) |
Net cash provided by (used in) financing activities | 200,945 | (22,735) | (29,110) |
Effect of exchange rate changes on cash and cash equivalents | (34) | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (12,595) | 77,425 | (14,415) |
Cash and cash equivalents - beginning of period | 120,778 | 43,353 | 57,768 |
Cash and cash equivalents - end of period | 108,183 | 120,778 | 43,353 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 11,265 | 3,546 | 1,762 |
Cash paid for income taxes, net of refunds | 12,396 | 13,369 | 7,573 |
Cash paid for interest on finance leases | 6 | 32 | 63 |
Supplemental disclosure of noncash investing and financing activities: | |||
Issuance of common stock as consideration for acquisition | 57,772 | 0 | 0 |
Property and equipment purchases included in accounts payable and accrued expenses | $ 1,632 | $ 335 | $ 390 |
Nature of operations
Nature of operations | 12 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations e.l.f. Beauty, Inc., a Delaware corporation (“e.l.f. Beauty” and together with its subsidiaries, the “Company”), is a multi-brand beauty company that offers inclusive, accessible, clean, vegan and cruelty free cosmetics and skin care products. The Company's mission is to make the best of beauty accessible to every eye, lip, face and skin concern. e.l.f. Beauty believes its ability to deliver cruelty free, clean, vegan and premium-quality products at accessible prices with broad appeal differentiates it in the beauty industry. e.l.f. Beauty believes the combination of its value proposition, innovation engine, ability to attract and engage consumers, and its world-class team’s ability to execute with speed, has positioned the Company well to navigate the competitive beauty market. The Company's family of brands includes e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People and Keys Soulcare. The Company's brands are available online and across leading beauty, mass-market and specialty retailers. The Company has strong relationships with its retail customers such as Target, Walmart, Ulta Beauty and other leading retailers that have enabled the Company to expand distribution both domestically and internationally. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of presentation The consolidated financial statements and related notes have been prepared in accordance with US generally accepted accounting principles (“US GAAP”) and all intercompany balances and transactions have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with US GAAP requires management make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash and cash equivalents Cash and cash equivalents include all cash balances and highly liquid investments purchased with maturities of three months or less. Accounts receivable Trade receivables consist of uncollateralized, non-interest bearing customer obligations from transactions with the Company's customers, reduced by an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments. The allowance is based on the evaluation and aging of past due balances, specific exposures, historical trends and economic conditions. The Company maintains allowances for doubtful accounts for uncollectible accounts receivable. Management estimates anticipated losses from doubtful accounts based on days past due, collection history and the financial health of customers. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Recoveries of receivables previously written off are recorded when received. The Company recorded an allowance for doubtful accounts of $1.2 million and $0.1 million as of March 31, 2024 and March 31, 2023, respectively. The Company recorded a reserve for sales adjustments of $38.7 million and $23.5 million as of March 31, 2024 and March 31, 2023, respectively, which is also presented as a reduction to accounts receivable. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon an evaluation of each customer’s ability to perform its payment obligations. Concentrations of credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents including money market funds. Although the Company deposits its cash with creditworthy financial institutions, its deposits, at times, may exceed federally insured limits. To date, the Company has not experienced any losses on its cash deposits. The Company performs credit evaluations of its customers and the risk with respect to trade receivables is further mitigated by the short duration of customer payment terms and the pedigree of the customer base. During the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, the following customers individually accounted for greater than 10% of the Company’s net sales as disclosed below: Fiscal year ended March 31, 2024 2023 2022 Target 25 % 25 % 23 % Walmart 17 % 20 % 26 % Ulta Beauty 16 % 15 % 12 % Customers that individually accounted for greater than 10% of the Company’s accounts receivable at the end of the periods as of March 31, 2024 and March 31, 2023, respectively, are as presented : March 31, 2024 March 31, 2023 Target 28 % 32 % Walmart 20 % 26 % Ulta Beauty 12 % * * Customer comprised less than 10% of accounts receivable at the end of the period indicated. Inventory Inventory, consisting principally of finished goods, is stated at the lower of cost and net realizable value. Cost is principally determined by the first-in, first-out method. The Company also records a reserve for excess and obsolete inventory, which represents the excess of the cost of the inventory over its estimated market value. This reserve is based upon an assessment of historical trends, current market conditions and forecasted product demand. The Company recorded an adjustment for excess and obsolete inventory, which is presented as a reduction to inventory of $10.6 million and $6.6 million as of March 31, 2024 and March 31, 2023, respectively. Property and equipment and other assets Property and equipment is stated at cost and is depreciated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the useful lives of the assets. Repairs and maintenance expenditures are expensed as incurred. Useful lives by major asset class are as follows: Estimated useful lives Machinery, equipment and software 2 - 5 years Leasehold improvements up to 5 years Furniture and fixtures 3 - 5 years Store fixtures 1 - 3 years As of March 31, 2024 and March 31, 2023, included in other assets are retail product displays, net, of $41.1 million and $15.7 million, respectively, that are generally amortized over a period of three years. Amortization expense for retail product displays was $11.4 million, $5.2 million and $5.9 million for the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively. The Company evaluates events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted future cash flows derived from their use and eventual disposition. For purposes of this assessment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company’s long-lived assets are grouped on an entity-wide basis. This is due, in part, to the integrated nature of the Company’s various distribution channels and the extent of shared costs across those channels. If the sum of the undiscounted future cash flows is less than the carrying amount of an asset, the Company records an impairment loss for the amount by which the carrying amount of the assets exceeds its fair value. There were no impairment charges recorded on long-lived assets during the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively. Goodwill and intangible assets Goodwill represents the excess of the purchase price for an acquisition over the fair value of the net assets acquired. In addition, the Company has acquired finite-lived intangible assets and an indefinite-lived intangible asset. Goodwill is not amortized but rather is reviewed annually for impairment, at the reporting unit level, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. When testing goodwill for impairment, the Company first performs an assessment of qualitative factors. If qualitative factors indicate that it is more likely than not that the fair value of the relevant reporting unit is less than its carrying amount, the Company tests goodwill for impairment at the reporting unit level using a two-step approach. In step one, the Company determines if the fair value of the reporting unit exceeds the unit’s carrying value. If step one indicates that the fair value of the reporting unit is less than its carrying value, the Company performs step two, determining the fair value of goodwill and, if the carrying value of goodwill exceeds its implied fair value, an impairment charge is recorded. The Company has identified a single reporting unit for purposes of impairment testing due, in part, to the integrated nature of the Company’s various distribution channels and the extent of shared costs across those channels. Indefinite-lived intangible assets are not amortized but rather are tested for impairment annually and impairment is recognized if the carrying amount exceeds the fair value of the intangible asset. The Company evaluates its indefinite-lived intangible asset to determine whether current events and circumstances continue to support an indefinite useful life. Amortization of intangible assets with finite useful lives is computed on a straight-line basis over periods of 3 years to 15 years. The determination of the estimated period of benefit is dependent upon the use and underlying characteristics of the intangible asset. The Company evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value of an intangible asset is not recoverable, impairment loss is measured as the amount by which the carrying value exceeds its estimated fair value. There were no impairment charges recorded on goodwill or indefinite-lived intangible assets during the fiscal years ended March 31, 2024, March 31, 2023 or March 31, 2022. Debt issuance costs Debt issuance costs and lender fees were incurred for arranging the credit facilities from various financial institutions. For credit facilities consisting of both term and revolving debt, such costs are allocated to each sub-facility based upon the total borrowing capacity. For term debt, issuance costs are presented within the related long-term debt liability on the consolidated balance sheet and lender fees are presented as a direct deduction from the carrying amount. Both debt issuance costs and lender fees are amortized over the term of the related debt using the effective interest rate method. For revolving debt, issuance costs and lender fees are presented as a noncurrent asset and amortized over the term of the related debt on a straight-line basis. Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and accrued expenses approximate their fair values due to the short-term nature of these items. The carrying amounts of bank debt approximate their fair values as the stated interest rates approximate market rates currently available to the Company for loans with similar terms. See Note 8 Fair value of financial instruments to consolidated financial statements in Part IV, Item 15.“Exhibits, financial statement schedules.” Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. During the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, net sales in the United States and International were as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 United States $ 868,076 $ 506,759 $ 347,484 International 155,856 72,085 44,671 Total net sales $ 1,023,932 $ 578,844 $ 392,155 As of March 31, 2024 and March 31, 2023, the Company had property and equipment in the United States and International as follows (in thousands) : March 31, 2024 March 31, 2023 United States $ 10,936 $ 7,606 International 3,038 268 Total property and equipment, net $ 13,974 $ 7,874 Business combinations The purchase price of a business acquisition is allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the business combination date. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires the Company to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Unanticipated events or circumstances may occur that could affect the accuracy of the Company’s fair value estimates, and under different assumptions, the resulting valuations could be materially different. Costs that are incurred to complete the business combination, such as legal and other professional fees, are not considered as a part of consideration transferred and are charged to selling, general and administrative expense as they are incurred. Revenue recognition Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. For the Company’s retail customer transactions, a contract exists when a written purchase order is received. For the Company’s direct-to-consumer transactions, a contract exists when an order is placed online. Control transfers at the time of shipment or the time of delivery, depending upon the specific terms of the customer arrangement. Nearly all of the Company’s transactions with its customers and consumers include a single performance obligation delivered at a point in time. The transaction price can include both fixed and variable consideration. In most cases, it is entirely comprised of variable consideration with the variability driven by expected sales discounts, markdown support and other incentives and allowances offered to customers. These incentives may be explicit or implied by the Company's historical business practices. Generally, these commitments represent cash consideration paid to a customer and do not constitute a promised good or service. The amount of variable consideration is estimated at the time of sale based on either the expected amount or the most likely amount, depending on the nature of the variability. The Company regularly reviews and revises, when deemed necessary, its estimates of variable consideration, based on both customer-specific expectations as well as historical rates of realization. A provision for customer incentives and allowances is included on the consolidated balance sheet, net against accounts receivable. Disaggregated revenue The Company distributes product both through national and international retailers as well as direct-to-consumers through its e-commerce channels. The marketing and consumer engagement benefits that the direct channels provide are integral to the Company’s brand and product development strategy and drive sales across channels. As such, the Company views its two primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer and the innovation and distribution processes. See Segment Reporting section above for the table providing disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers. Contract assets and liabilities The Company extends credit to its retail customers based upon an evaluation of their credit quality. The majority of retail customers obtain payment terms of approximately 30 days and a contract asset is recognized for the related accounts receivable. Additionally, shipping terms can vary, giving rise to contract liabilities for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of March 31, 2024, other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheet. Practical expedients The Company elected to record revenue net of taxes collected from customers and exclude the amounts from the transaction price. The Company includes in revenue any taxes assessed on the Company's total gross receipts for which it has the primary responsibility to pay the tax. The Company elected not to disclose revenues related to remaining performance obligations for partially completed or unfulfilled contracts that are expected to be fulfilled within one year as such amounts were insignificant. A reconciliation of the beginning and ending amounts of the reserve for sales adjustments for the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022 is as follows (in thousands): Balance as of March 31, 2021 $ 11,913 Charges 48,862 Deductions (44,465) Balance as of March 31, 2022 16,310 Charges 66,302 Deductions (59,092) Balance as of March 31, 2023 23,520 Charges 122,228 Deductions (107,088) Balance as of March 31, 2024 $ 38,660 In the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, the Company recorded $3.4 million, $1.6 million and $0.7 million, respectively, of reimbursed shipping expenses from customers within revenues. The shipping and handling costs associated with product distribution were $57.1 million, $36.9 million and $28.0 million, in the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively, and are included in selling, general and administrative expenses in the consolidated statements of operations. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Future income tax benefits are recognized to the extent that realization of such benefits is more likely than not. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in its income tax provision. Leases The Company has entered into operating lease agreements for office space, warehouse and equipment and software. Lease assets and liabilities are recognized at the present value of the minimum rental payments (excluding executory costs) and expected payment under any residual value guarantee at the lease commencement date. The Company uses its incremental borrowing rate to determine the present value of lease payments. Non-lease components primarily include payments for maintenance and utilities. The Company accounts for the non-lease components in a contract (e.g., common area maintenance) as part of the lease component by electing practical expedient for all leases of commercial office and warehouse space, as the non-lease components are not a significant portion of the total consideration in those agreements. The Company's lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease assets and liabilities are included on the Company's consolidated balance sheet. The current portion of the Company's operating lease liabilities is included in accrued expenses and other current liabilities and the long-term portion is included in long-term operating lease liabilities. Finance lease assets are included in other assets. Finance lease liabilities are included in long-term debt and finance lease obligations. Operating lease expense is recognized on a straight-line basis over the lease term. Foreign currency The functional currency of most of the Company’s foreign subsidiaries as of March 31, 2024 is the US dollar. During the current reporting period, the Company reassessed its functional currency and determined that the functional currency for one of its foreign subsidiaries changed from the US dollar to GBP. The change in functional currency is accounted for prospectively from October 1, 2023. Prior to the change, the functional currency of all of the Company’s foreign subsidiaries is the US dollar. Transactions denominated in currencies other than the functional currency are recorded at exchange rates in effect on the date of the transaction. At the end of each reporting period, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange rates. Unrealized foreign exchange gains and losses due to re-measurement of monetary assets and liabilities denominated in non-functional currencies as well as transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (expense), net in the consolidated statements of operations. The financial statements of the non-US dollar functional currency subsidiary are translated into US dollars using period-end rates of exchange for assets and liabilities, historical rates of exchange for equity and average rates of exchange for revenue and expenses. Translation gains (losses) are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. Stock based compensation The Company has several stock award plans, which are described in detail in Note 13. The Company accounts for stock based compensation under ASC 718, “Compensation-Stock Compensation.” The Company recognizes expense over the requisite service period of the award, net of an estimate for the impact of award forfeitures. Advertising costs Advertising costs are expensed as incurred or distributed. Advertising costs are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and amounted to approximately $209.2 million, $96.7 million and $41.0 million in the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively. Net income per share Basic net income per share is computed using net income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the dilutive effects of stock options and restricted stock outstanding during the period, to the extent such securities would not be anti-dilutive and is determined using the treasury stock method. Recent accounting pronouncements No new accounting pronouncements issued but not yet adopted are expected to have a material impact on the Company’s consolidated financial statements. |
Investments
Investments | 12 Months Ended |
Mar. 31, 2024 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments The Company has certain investments included in other assets on its consolidated balance sheets. The Company has elected the measurement alternative for equity investments that do not have readily determinable fair values. The Company recorded an impairment charge on one of its investments of $2.9 million as a separate line under other expense, net during the fiscal year ended March 31, 2024, as an identified event or change in circumstances resulted in an indicator of impairment. The Company did not record an impairment charge on its investment during the fiscal years ended March 31, 2023 and March 31, 2022, respectively, as any identified events or changes in circumstances did not result in an indicator of impairment during those periods. Further, there were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer during the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively. |
Acquisition
Acquisition | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisition On October 4, 2023, the Company, through its wholly owned subsidiary, e.l.f. Cosmetics, Inc., completed its acquisition of Naturium LLC (“Naturium”) (including the indirect acquisition of equity interests in Naturium through the purchase of TCB-N Prelude Blocker Corp., a holding company) (the “Acquisition”), which furthered the Company’s mission to make the best of beauty accessible to every eye, lip, face and skin concern. Naturium is a skin care company that provides clinically effective products at an affordable price. The Company directly and indirectly acquired all rights, title and interest in and to the outstanding equity securities of Naturium for a purchase price of $333.0 million in a combination of cash and Company stock. The following table summarizes the fair market value of the consideration transferred and how the Company calculates the goodwill resulting from the acquisition (in thousands): Cash consideration $ 275,266 Equity consideration (common stock issued) (1) 57,772 Total consideration transferred 333,038 Less: Net assets acquired Net assets acquired, excluding liability assumed for acquisition-related seller expenses $ 174,608 Liability assumed for acquisition-related seller expenses (2) (10,549) Net assets acquired (164,059) Goodwill $ 168,979 (1) The fair market value of the $57.8 million common stock issued (equivalent to 577,659 shares of common stock) was determined on the basis of the opening market price of the Company’s stock of $100.01 per share on the acquisition date. (2) In connection with the Acquisition, the Company paid Naturium’s acquisition-related expenses of $10.5 million recognized as an assumed liability at the acquisition date. The Company incurred and expensed acquisition transaction costs of $3.4 million during the fiscal year ended March 31, 2024, which are included as a component of selling, general and administrative expenses in the consolidated statements of operations. The Acquisition has been accounted for as a business combination under the acquisition method and, accordingly, the total purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their respective fair values on the acquisition date. The purchase price allocation, deferred tax calculations and residual goodwill are preliminary and pending finalization. Naturium’s results of operations have been included in the Company's consolidated financial statements from the date of acquisition. The following table presents the preliminary purchase price allocation recorded in the Company's condensed consolidated balance sheet on the acquisition date (in thousands): Cash $ 293 Accounts receivable 7,388 Inventory 16,236 Prepaid expenses and other current assets 1,899 Property and equipment — Goodwill (1) 168,979 Intangible assets 162,100 Total assets acquired 356,895 Accounts payable (15,897) Accrued expenses and other current liabilities (6,025) Net deferred tax liability (1,935) Total liabilities assumed (23,857) Total purchase price $ 333,038 (1) The goodwill represents the excess value over both tangible and intangible assets acquired and liabilities assumed. The goodwill recognized in this transaction is primarily attributable to the Company’s expectation that Naturium can continue to expand distribution and deliver new skin care products. A substantial amount of the goodwill is expected to be deductible for tax purposes. The Company made certain measurement period adjustments in the fourth quarter of fiscal 2024 resulting in an increase to goodwill of $0.4 million. None of the adjustments were individually material. There was no income statement impact on comparable prior periods presented as a result of these adjustments. Intangible assets The estimated fair values (all considered level 3 measurements) of the identifiable intangible assets acquired, their estimated useful lives and fair value methodology are as follows: Fair Value Estimated Useful Life (in thousands) (in years) Fair Value Methodology Customer relationships – retailers $ 20,000 10 Excess earnings method Customer relationships – e-commerce 17,600 3 Excess earnings method and with and without method Trademarks 124,500 15 Relief from Royalty method Total identified intangible assets $ 162,100 Certain financial information (unaudited) The amounts of Naturium’s net sales included in the Company's condensed consolidated financial statements from the date of acquisition and the net sales of the combined companies on an unaudited pro forma basis, had the acquisition date been April 1, 2022, are as follows (in thousands): Amount Actual Naturium net sales from October 4, 2023 to March 31, 2024 $ 53,421 Supplemental pro forma combined net sales for the fiscal year ended March 31, 2024 1,065,726 Supplemental pro forma combined net sales for the fiscal year ended March 31, 2023 628,751 The unaudited pro forma financial information shown in the table above are presented for informational purposes only and are not indicative of the results of operations that would have been achieved if the acquisition had taken place at April 1, 2022 (the beginning of the comparable prior annual reporting period). The pro forma earnings of the combined companies are not presented as the effects of the Acquisition in earnings are not material in relation to the overall consolidated financial statements. |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets Information regarding the Company’s goodwill and intangible assets as of March 31, 2024 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 97,600 $ (73,393) $ 24,207 Customer relationships – e-commerce 3 years 21,540 (6,874) 14,666 Trademarks 10 to 15 years 128,000 (5,579) 122,421 Total finite-lived intangibles 247,140 (85,846) 161,294 Trademarks Indefinite 63,800 — 63,800 Goodwill 340,600 — 340,600 Total goodwill and other intangibles $ 651,540 $ (85,846) $ 565,694 Information regarding the Company’s goodwill and intangible assets as of March 31, 2023 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (65,780) $ 11,820 Customer relationships – e-commerce 3 years 3,940 (3,940) — Trademarks 10 years 3,500 (1,079) 2,421 Total finite-lived intangibles 85,040 (70,799) 14,241 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (70,799) $ 249,661 The Company has not recognized any impairment charges on its goodwill or intangible assets. Amortization expense on finite-lived intangible assets was $15.0 million for the fiscal year ended March 31, 2024, and $8.1 million for each of the fiscal years ended March 31, 2023 and March 31, 2022. The estimated future amortization expense related to the finite-lived intangible assets, assuming no impairment as of March 31, 2024, is as follows (in thousands): Year ending March 31, 2025 $ 17,397 2026 17,397 2027 14,463 2028 11,530 2029 11,530 Thereafter 88,977 Total $ 161,294 |
Property and equipment
Property and equipment | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment Property and equipment as of March 31, 2024 and March 31, 2023 consists of the following (in thousands): March 31, 2024 March 31, 2023 Machinery, equipment and software $ 20,222 $ 15,148 Leasehold improvements 6,982 4,677 Furniture and fixtures 1,542 1,263 Store fixtures 10,157 10,782 Property and equipment, gross 38,903 31,870 Less: Accumulated depreciation and amortization (24,929) (23,996) Property and equipment, net $ 13,974 $ 7,874 Depreciation and amortization expense on property and equipment was $3.5 million, $4.3 million and $7.9 million during the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities as of March 31, 2024 and March 31, 2023 consists of the following (in thousands): March 31, 2024 March 31, 2023 Accrued expenses $ 37,782 $ 22,726 Accrued inventory 16,478 1,330 Accrued marketing 29,282 23,761 Current portion of operating lease liabilities 7,016 4,510 Accrued compensation 17,423 13,098 Taxes payable 5,814 2,851 Other current liabilities 3,938 2,698 Accrued expenses and other current liabilities $ 117,733 $ 70,974 |
Fair value of financial instrum
Fair value of financial instruments | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments The fair value of financial instruments are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is measured using inputs from the three levels of the fair value hierarchy, which are described as follows: Level 1 —Quoted prices in active markets for identical assets or liabilities Level 2 —Quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 —Inputs that are unobservable (for example, cash flow modeling inputs based on management’s assumptions) The assets’ or liabilities’ fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2024 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 262,932 $ — $ 262,932 $ — Total financial liabilities $ 262,932 $ — $ 262,932 $ — __________________________ (1) Of this amount, $100.3 million is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2023 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 66,883 $ — $ 66,883 $ — Total financial liabilities $ 66,883 $ — $ 66,883 $ — __________________________ (1) Of this amount, $5.6 million is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. The Company did not transfer any assets measured at fair value on a recurring basis to or from Level 1 or Level 2 for any of the periods presented. |
Debt
Debt | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt as of March 31, 2024 and March 31, 2023 consists of the following (in thousands): March 31, 2024 March 31, 2023 Debt: Revolving line of credit (1) $ 89,500 $ — Term loan (1) $ 173,375 $ 66,250 Finance lease obligations 57 633 Total debt 262,932 66,883 Less: debt issuance costs (806) (427) Total debt, net of issuance costs 262,126 66,456 Less: current portion (100,307) (5,575) Long-term portion of debt $ 161,819 $ 60,881 (1) See further discussion below. As of March 31, 2024, the Company was in compliance with all applicable financial covenants under the Amended Credit Agreement. Amended Credit Agreement On April 30, 2021, the Company amended and restated its prior credit agreement (as further amended, supplemented or modified from time to time, the “Amended Credit Agreement”) and refinanced all loans under the prior credit agreement. The Amended Credit Agreement has a five year term and consists of (i) a $100 million revolving credit facility (the “Amended Revolving Credit Facility”) and (ii) a $100 million term loan facility (the “Amended Term Loan Facility”). All amounts under the Amended Revolving Credit Facility are available for draw until the maturity date on April 30, 2026. The Amended Revolving Credit Facility is collateralized by substantially all of the Company’s assets and requires payment of an unused fee ranging from 0.10% to 0.30% (based on the Company’s consolidated total net leverage ratio (as defined in the Amended Credit Agreement)) times the average daily amount of unutilized commitments under the Amended Revolving Credit Facility. The Amended Revolving Credit Facility also provides for sub-facilities in the form of a $7 million letter of credit and a $5 million swing line loan; however, all amounts drawn under the Amended Revolving Credit Facility cannot exceed $100 million. The unused balance of the Amended Revolving Credit Facility as of March 31, 2024 was $10.5 million. Prior to the Second Amendment (as defined below), both the Amended Revolving Credit Facility and the Amended Term Loan Facility bore interest, at the borrowers’ option, at either (i) a rate per annum equal to an adjusted LIBOR rate determined by reference to the cost of funds for the United States US dollar deposits for the applicable interest period (subject to a minimum floor of 0%) plus an applicable margin ranging from 1.25% to 2.125% based on our consolidated total net leverage ratio (the “Applicable Margin”) or (ii) a floating base rate plus an applicable margin ranging from 0.25% to 1.125% based on our consolidated total net leverage ratio. On March 29, 2023, the Company amended the Amended Credit Agreement to transition the benchmark from LIBOR to an adjusted Secured Overnight Financing Rate (“SOFR”) (which is equal to the applicable SOFR plus 0.10%) (such transaction, the “First Amendment”). In connection with the First Amendment, all outstanding LIBOR loans were converted to SOFR loans. The annual interest rate for SOFR borrowings will be equal to term SOFR, subject to a floor of 0%, plus a margin ranging from 1.25% to 2.125%. The interest rate as of March 31, 2024 for the Amended Revolving Credit Facility and the Amended Term Loan Facility was approximately 6.7%. In accordance with ASC 470, Debt, the amendment to the Company’s prior credit agreement was accounted for as both a debt modification and partial debt extinguishment, which resulted in the recognition of a loss on extinguishment of debt of $0.5 million for the fiscal year ended March 31, 2022. The Company incurred and capitalized $1.1 million of new debt issuance costs related to the amendment. In the fiscal year ended March 31, 2023, the Company recognized a loss on extinguishment of debt of approximately $0.2 million, primarily related to the partial prepayment of term loan borrowings in the amount of $25.0 million. Second Amended Credit Agreement On August 28, 2023, the Company entered into the Second Amendment to the Amended and Restated Credit Agreement (the “Second Amendment”). Pursuant to the Second Amendment, the Company may borrow incremental term loans in a principal amount equal to $115.0 million under the Amended Credit Agreement (the “Incremental Term Loan”). The Incremental Term Loan will bear interest at a rate per annum equal to, at the Company’s election, adjusted term SOFR or an alternate base rate as set forth in the Second Amendment, plus an interest rate margin, to be based on consolidated total net leverage ratio levels, ranging from, (i) in the case of SOFR loans, 1.50% to 2.375%; provided that if SOFR is less than 0.00%, such rate shall be deemed to be 0.00%, and (ii) in the case of alternate base rate loans, 0.50% to 1.375%; provided that if the alternate base rate is less than 1.00%, such rate shall be deemed to be 1.00%. The Incremental Term Loan amortizes at 5.00% per annum payable in equal quarterly installments of 1.25% per annum, commencing with the fiscal quarter ended on December 31, 2023. The Company used the Incremental Term Loan together with cash from its balance sheet and additional borrowings under its Amended Revolving Credit Facility to consummate the Acquisition (as defined in Note 4 hereto) and to pay related fees and expenses in connection with the Acquisition and Second Amendment. The interest rate as of March 31, 2024 for the Incremental Term Loan was approximately 6.9%. The Amended Credit Agreement contains a number of covenants that, among other things and subject to certain exceptions, restrict the Company’s ability to pay dividends and distributions or repurchase capital stock, incur additional indebtedness, create liens on assets, engage in mergers or consolidations and sell or otherwise dispose of assets. The Amended Credit Agreement also includes reporting, financial and maintenance covenants that require the Company to, among other things, comply with certain consolidated total net leverage ratios and consolidated fixed charge coverage ratios. Aggregate future minimum principal payments are as follows (in thousands): Year ending March 31, Term Loan 2025 $ 100,250 2026 10,750 2027 151,875 Total $ 262,875 Interest expense, net The components of interest expense, net are as follows (in thousands) : Fiscal year ended March 31, 2024 2023 2022 Interest on term loan debt $ 8,294 $ 3,450 $ 1,708 Amortization of debt issuance costs 430 346 331 Interest on revolving line of credit 3,106 163 342 Interest on finance leases 10 31 63 Interest income (4,817) (1,972) (3) Interest expense, net $ 7,023 $ 2,018 $ 2,441 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Legal Contingencies From time to time, the Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business. The Company is not currently a party to any matters that management expects will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Income taxes
Income taxes | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The components of income (loss) before the provision for income taxes are as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Domestic $ 142,507 $ 64,850 $ 26,286 Foreign (1,517) (776) (855) Total $ 140,990 $ 64,074 $ 25,431 The components of the benefit (provision) for income taxes are as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Current: US federal $ (12,505) $ (7,065) $ (5,637) State (4,078) (1,854) (1,715) Foreign (20) (26) (10) Total current (16,603) (8,945) (7,362) Deferred: US federal 2,130 5,035 3,146 State 746 816 738 Foreign 400 550 (183) Total deferred 3,276 6,401 3,701 Total (provision) benefit for income taxes $ (13,327) $ (2,544) $ (3,661) The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate : Fiscal year ended March 31, 2024 2023 2022 Federal statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit 1.8 % 1.0 % 2.6 % State tax deferred rate change, net of federal benefit — % — % (0.1) % Nondeductible business expenses 0.4 % 0.6 % 0.4 % Nondeductible employee compensation 4.3 % 2.5 % 1.1 % Provision-to-return adjustment (0.2) % (0.1) % (0.3) % Uncertain tax positions — % — % 0.1 % Stock based compensation (18.4) % (20.3) % (12.0) % Change in valuation allowance 0.4 % (0.6) % 1.5 % Others 0.2 % (0.1) % 0.1 % Effective tax rate 9.5 % 4.0 % 14.4 % The components of net deferred taxes arising from temporary differences are as follows (in thousands): March 31, 2024 March 31, 2023 Deferred tax assets: Compensation $ 222 $ 354 Inventory and receivables 13,465 9,976 Accrued expenses 3,782 2,734 Stock compensation 7,349 8,247 Net operating losses 1,188 571 Right of use liability 5,026 3,782 Capitalized research and development 2,051 858 Other 1,792 774 Gross deferred tax assets 34,875 27,296 Valuation allowance (744) — Net deferred tax assets 34,131 27,296 Deferred tax liabilities: Goodwill 3,546 5,180 Fixed assets and internally developed software 5,746 2,451 Intangible assets 21,326 19,107 Right of use asset 4,801 3,359 Other 557 378 Deferred tax liabilities 35,976 30,475 Net deferred tax liabilities $ 1,845 $ 3,179 The deferred tax assets and liabilities are reported in the accompanying balance sheets as follows (in thousands) : March 31, 2024 March 31, 2023 Deferred tax assets $ 1,821 $ 563 Deferred tax liabilities 3,666 3,742 Net deferred tax liabilities $ 1,845 $ 3,179 The valuation allowance was $0.7 million and zero as of March 31, 2024 and March 31, 2023, respectively, primarily relating to an investment impairment for which we do not believe a tax benefit is more likely than not to be realized. As of March 31, 2024, the Company had gross federal, state and foreign net operating loss carryforwards of zero, $0.9 million and $4.6 million, respectively. The state net operating loss carryforwards can either be carried forward 20 years or indefinitely. The state net operating loss carryforwards will begin to expire in 2038. The foreign net operating loss carryforwards can either be carried forward 5 years or indefinitely and will begin to expire in 2027. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Balance at beginning of year $ 442 $ 466 $ 458 Increases for prior year tax positions — — — Increases for current year tax positions 108 92 75 Decreases for prior year tax positions (19) (10) (6) Decreases due to settlements — — (61) Decreases due to statutes lapsing (98) (106) — Balance at end of year $ 433 $ 442 $ 466 If all of the Company’s unrecognized tax benefits as of March 31, 2024, March 31, 2023 and March 31, 2022 were recognized, $0.4 million, $0.4 million and $0.5 million, respectively, of unrecognized tax benefits, would impact the effective tax rate. The Company believes it is reasonably possible that $40 thousand of unrecognized tax benefits may reverse in the next twelve months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. The Company's liability for unrecognized tax benefits is recorded within other long-term liabilities on the consolidated balance sheet. The Company had $0.2 million and $0.2 million of accrued gross interest and penalties as of March 31, 2024 and March 31, 2023, respectively. The Company recognized net interest and penalties (benefit)/expense of $(21) thousand, $34 thousand and $27 thousand for the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively. The Company files income tax returns in the US federal jurisdiction and various state and foreign jurisdictions. As of March 31, 2024, with few exceptions, the Company or its subsidiaries are no longer subject to examination prior to tax fiscal year ended March 31, 2020. The Organization for Economic Co-operation and Development has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as "Pillar 2"), with certain aspects of Pillar 2 effective January 1, 2024 and other aspects effective January 1, 2025. While it is uncertain whether the U.S. will enact legislation to adopt Pillar 2, certain countries in which the Company operates have adopted the legislation, and other countries are in the process of introducing legislation to implement Pillar 2. The Company is continuing to evaluate and monitor but does not expect for Pillar 2 to have a material impact on the effective tax rate or the consolidated financial statements. |
Preferred stock
Preferred stock | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Preferred stock | Preferred stock The Company has authorized 30,000,000 shares of preferred stock for issuance with a par value of $0.01 per share. There were no shares of preferred stock outstanding as of March 31, 2024 or March 31, 2023. |
Stock based compensation
Stock based compensation | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock based compensation | Stock based compensation Stock plans The Company grants stock based awards under its 2016 Equity Incentive Award Plan (as amended) (the “2016 Plan”), which replaced its 2014 Equity Incentive Plan (the “2014 Plan”) and became effective immediately prior to the effectiveness of the Company’s registration statement on Form S-1 in September 2016. No grants have been made under the 2014 Plan since the Company’s initial public offering and no further awards will be granted thereunder. Any awards outstanding under the 2014 Plan that are forfeited or lapse unexercised will be added to the shares reserved and available for grant under the 2016 Plan. The 2016 Plan permits the grant of incentive stock options, non-statutory stock options, restricted stock and other stock- or cash-based awards to employees, officers, directors, advisors and consultants. The 2016 Plan allows for option grants of the Company’s common stock based on service, performance and market conditions. During the fiscal year ended March 31, 2024, no stock options were issued. As of March 31, 2024, a total of 17,697,556 shares have been authorized for issuance under the 2016 Plan, and 8,618,008 remain available for grant. As of March 31, 2024, there were 64,525 options and awards outstanding under the 2014 Plan that, if forfeited, would increase the number of shares authorized for grant under the 2016 Plan. Service-based vesting stock options The following table summarizes the activity for options that vest solely based upon the satisfaction of a service condition as follows: Options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic values (in thousands) (1) Balance as of March 31, 2021 1,640,981 14.86 Exercised (93,282) 11.19 Canceled or forfeited (4,200) 26.63 Balance as of March 31, 2022 1,543,499 15.05 5.1 $ 16,686 Exercised (519,009) 12.82 Balance as of March 31, 2023 1,024,490 $ 16.17 4.1 $ 67,796 Exercised (347,590) 14.47 Canceled or forfeited (2,900) 26.84 Balance as of March 31, 2024 674,000 $ 17.01 3.3 $ 120,660 Exercisable, March 31, 2024 650,000 $ 17.07 3.2 $ 116,326 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock price of $196.03, as reported on the New York Stock Exchange on March 28, 2024. Additional information relating to service-based options is as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Stock based compensation expense $ 147 $ 344 $ 924 Intrinsic value of options exercised 45,542 18,015 1,695 As of March 31, 2024, there was $0.1 million of total unrecognized compensation cost related to service-based stock options, which is expected to be recognized over the remaining weighted-average vesting period of 1.5 years. No service-based stock options were granted during the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022. The determination of the fair value of stock options on the date of grant using a Black-Scholes option-pricing model is affected by the fair value of the underlying common stock, as well as assumptions regarding a number of variables that are complex, subjective and generally require significant judgment. The assumptions used in the Black-Scholes option-pricing model to calculate the fair value of stock options were: Fair value of common stock The fair value of shares of common stock underlying stock options is based on the closing stock price as quoted on the New York Stock Exchange on the date of grant. Expected term The expected term of the options represents the period of time that the options are expected to be outstanding. Options granted have a maximum contractual life of 10 years. Prior to the Company’s initial public offering of its common stock in September 2016, the Company estimated the expected term of the option based on the estimated timing of potential liquidity events. For grants upon or after the initial public offering, the Company estimated the expected term based upon the simplified method described in Staff Accounting Bulletin No. 107, as the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares had been publicly traded. Expected volatility As the Company did not have sufficient trading history for its common stock, the expected stock price volatility for the common stock was estimated by taking the average historic price volatility for industry peers based on daily price observations over a period equivalent to the expected term of the stock option grants. Industry peers consist of several public companies within the same industry, which are of similar size, complexity and stage of development. The Company intends to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of its own share price becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be used in the calculation. Risk-free interest rate The risk-free interest rate was based on the US Treasury rate, with maturities similar to the expected term of the options. Expected dividend yield The Company does not anticipate paying any dividends in the foreseeable future. As such, the Company uses an expected dividend yield of zero. Performance-based and market-based vesting stock options The following table summarizes the activity for options that vest based upon the satisfaction of performance or market conditions as follows: Options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic values (in thousands) (1) Balance as of March 31, 2021 1,108,592 8.72 Exercised (104,265) 2.24 Balance as of March 31, 2022 1,004,327 9.40 3.0 $ 16,809 Exercised (460,787) 2.73 Canceled or forfeited (25,800) 26.84 Balance as of March 31, 2023 517,740 14.46 2.4 $ 35,151 Exercised (256,440) 1.84 Balance as of March 31, 2024 261,300 26.84 2.9 $ 44,209 Exercisable, March 31, 2024 261,300 26.84 2.9 $ 44,209 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock price of $196.03, as reported on the New York Stock Exchange on March 28, 2024. As of March 31, 2024, there was no further unrecognized compensation cost related to performance-based and market-based vesting stock options. Additional information relating to options that vest based upon the satisfaction of performance or market conditions is as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Intrinsic value of options exercised $ 27,718 $ 23,860 $ 2,921 Restricted stock awards and restricted stock units The following table summarizes the activities for restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), including performance-based RSUs, as follows: Shares of restricted stock outstanding Weighted-average grant date fair value Balance as of March 31, 2021 2,289,615 14.67 Granted 1,103,890 27.62 Vested (926,250) 14.50 Canceled or forfeited (191,513) 16.67 Balance as of March 31, 2022 2,275,742 20.85 Granted 1,180,167 28.59 Vested (1,066,516) 18.88 Canceled or forfeited (260,620) 22.24 Balance as of March 31, 2023 2,128,773 25.94 Granted 526,280 111.41 Vested (649,592) 24.57 Canceled or forfeited (62,594) 51.75 Balance as of March 31, 2024 1,942,867 48.67 The Company has historically granted both service based and performance-based RSUs to its executive officers. Service based RSUs vest over time based on continued employment of the participant. The performance-based RSUs vest based upon the achievement of certain performance goals and continued employment of the participant through the determination date of the achievement of the respective performance goals. Service based RSU awards are also granted annually to every Company employee, and vest over time based on continued employment of the participant. As of March 31, 2024, there were 75,124 unvested shares subject to RSAs outstanding. Additional information relating to RSAs and RSUs (including performance-based RSUs), is as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Stock based compensation expense: Cost of sales $ 16 $ 112 $ 311 Selling, general and administrative expense 40,462 28,661 18,411 Total $ 40,478 $ 28,773 $ 18,722 Intrinsic value of restricted stock released $ 73,124 $ 47,713 $ 25,621 As of March 31, 2024, there was $78.1 million of total unrecognized compensation cost related to unvested RSAs and RSUs (including performance-based RSUs), which is expected to be recognized over the remaining weighted-average vesting period of 1.7 years. |
Repurchase of common stock
Repurchase of common stock | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Repurchase of common stock | Repurchase of common stock On May 8, 2019, the Company announced that its board of directors authorized a share repurchase program to acquire up to $25.0 million of the Company’s common stock (the “Share Repurchase Program”). Purchases under the Share Repurchase Program may be made from time to time through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, or by any combination of such methods. The timing and amount of any repurchases pursuant to the Share Repurchase Program will be determined based on market conditions, share price and other factors. The Share Repurchase Program does not have an expiration date, does not require the Company to repurchase any specific number of shares of its common stock, and may be modified, suspended or terminated at any time without notice. There is no guarantee that any additional shares will be purchased under the Share Repurchase Program and such shares are intended to be retired after purchase. The covenants in the Amended Credit Agreement require the Company to be in compliance with certain leverage ratios to make repurchases under the Share Repurchase Program. The Company did not repurchase any shares during the three and twelve months ended March 31, 2024. A total of $17.1 million remains available for purchase under the Share Repurchase Program as of March 31, 2024. |
Employee benefit plan
Employee benefit plan | 12 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Employee benefit plan | Employee benefit plan The Company maintains a defined contribution 401(k) profit-sharing plan (the “401(k) Plan”) for eligible employees. Participants may make voluntary contributions up to the maximum amount allowable by law. The Company may make contributions to the 401(k) Plan on a discretionary basis which vest to the participants 100%. The Company made matching contributions of $0.7 million, $0.5 million and $0.4 million to the 401(k) Plan during the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively. |
Net income per share
Net income per share | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net income per share | Net income per share The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations (in thousands, except share and per share data): Fiscal year ended March 31, 2024 2023 2022 Numerator: Net income $ 127,663 $ 61,530 $ 21,770 Denominator: Weighted average common shares outstanding — basic 54,747,930 52,474,811 50,940,808 Dilutive common equivalent shares from equity awards 3,040,524 2,862,743 2,713,495 Weighted average common shares outstanding —diluted 57,788,454 55,337,554 53,654,303 Net income per share: Basic $ 2.33 $ 1.17 $ 0.43 Diluted $ 2.21 $ 1.11 $ 0.41 Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 44,772 194,289 20,314 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company leases warehouses, distribution centers, office space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company’s equipment leases are finance leases of assets used to operate its distribution center in Ontario, California. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The Company uses its incremental borrowing rate to determine the present value of lease payments. Supplemental balance sheet information related to leases as of March 31, 2024 and March 31, 2023 is as follows (in thousands): Classification March 31, 2024 March 31, 2023 Assets Operating lease assets Other assets $ 27,415 $ 14,071 Finance lease assets (a) Other assets — 245 Total leased assets $ 27,415 $ 14,316 Liabilities Current Operating Accrued expenses and other current liabilities $ 7,016 $ 4,510 Finance Current portion of long-term debt and finance lease obligations 57 575 Noncurrent Operating Long-term operating lease obligations 21,459 11,201 Finance Long-term debt and finance lease obligations — 58 Total lease liabilities $ 28,532 $ 16,344 ___________________ (a) Finance leases are recorded net of accumulated amortization of $1.5 million and $3.4 million as of March 31, 2024 and March 31, 2023, respectively. For the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, the components of operating and finance lease costs were as follows (in thousands): Fiscal year ended March 31, Classification 2024 2023 2022 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 7,341 $ 4,638 $ 4,686 Finance lease cost Amortization of leased assets SG&A expenses 210 420 436 Interest on lease liabilities Interest expense, net 10 31 63 Total lease cost $ 7,561 $ 5,089 $ 5,185 As of March 31, 2024, the aggregate future minimum lease payments under non-cancellable leases are as follows (in thousands): Year ending March 31, Operating Finance Total 2025 $ 8,332 $ 57 $ 8,389 2026 8,898 — 8,898 2027 5,537 — 5,537 2028 2,419 — 2,419 2029 1,956 — 1,956 Thereafter 5,417 — 5,417 Total lease payments 32,559 57 32,616 Less: Interest 4,084 — 4,084 Present value of lease liabilities $ 28,475 $ 57 $ 28,532 As of March 31, 2024 and March 31, 2023, the weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2024 March 31, 2023 Weighted-average remaining lease term Operating leases 4.8 years 4.6 years Finance leases 0.2 years 0.9 years Weighted-average discount rate Operating leases 5.1 % 2.6 % Finance leases 1.6 % 2.6 % |
Leases | Leases The Company leases warehouses, distribution centers, office space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company’s equipment leases are finance leases of assets used to operate its distribution center in Ontario, California. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The Company uses its incremental borrowing rate to determine the present value of lease payments. Supplemental balance sheet information related to leases as of March 31, 2024 and March 31, 2023 is as follows (in thousands): Classification March 31, 2024 March 31, 2023 Assets Operating lease assets Other assets $ 27,415 $ 14,071 Finance lease assets (a) Other assets — 245 Total leased assets $ 27,415 $ 14,316 Liabilities Current Operating Accrued expenses and other current liabilities $ 7,016 $ 4,510 Finance Current portion of long-term debt and finance lease obligations 57 575 Noncurrent Operating Long-term operating lease obligations 21,459 11,201 Finance Long-term debt and finance lease obligations — 58 Total lease liabilities $ 28,532 $ 16,344 ___________________ (a) Finance leases are recorded net of accumulated amortization of $1.5 million and $3.4 million as of March 31, 2024 and March 31, 2023, respectively. For the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, the components of operating and finance lease costs were as follows (in thousands): Fiscal year ended March 31, Classification 2024 2023 2022 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 7,341 $ 4,638 $ 4,686 Finance lease cost Amortization of leased assets SG&A expenses 210 420 436 Interest on lease liabilities Interest expense, net 10 31 63 Total lease cost $ 7,561 $ 5,089 $ 5,185 As of March 31, 2024, the aggregate future minimum lease payments under non-cancellable leases are as follows (in thousands): Year ending March 31, Operating Finance Total 2025 $ 8,332 $ 57 $ 8,389 2026 8,898 — 8,898 2027 5,537 — 5,537 2028 2,419 — 2,419 2029 1,956 — 1,956 Thereafter 5,417 — 5,417 Total lease payments 32,559 57 32,616 Less: Interest 4,084 — 4,084 Present value of lease liabilities $ 28,475 $ 57 $ 28,532 As of March 31, 2024 and March 31, 2023, the weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2024 March 31, 2023 Weighted-average remaining lease term Operating leases 4.8 years 4.6 years Finance leases 0.2 years 0.9 years Weighted-average discount rate Operating leases 5.1 % 2.6 % Finance leases 1.6 % 2.6 % |
Quarterly financial summary (un
Quarterly financial summary (unaudited) | 12 Months Ended |
Mar. 31, 2024 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial summary (unaudited) | Quarterly financial summary (unaudited) Unaudited quarterly results for the last three years were as follows (in thousands, except per share data): 2024 Q1 Q2 Q3 Q4 Net sales $ 216,339 $ 215,507 $ 270,943 $ 321,143 Gross profit 152,572 152,365 191,957 227,202 Net income 52,977 33,271 26,888 14,527 Net income per share: Basic 0.98 0.61 0.49 $ 0.26 Diluted $ 0.93 $ 0.58 $ 0.46 $ 0.25 2023 Q1 Q2 Q3 Q4 Net sales $ 122,601 $ 122,349 $ 146,537 187,357 Gross profit 82,985 79,560 98,725 129,126 Net income 14,469 11,710 19,105 16,246 Net income per share: Basic 0.28 0.22 0.36 $ 0.31 Diluted $ 0.27 $ 0.21 $ 0.34 $ 0.29 2022 Q1 Q2 Q3 Q4 Net sales $ 97,047 $ 91,855 $ 98,118 $ 105,135 Gross profit 61,906 57,985 64,341 67,500 Net income 8,276 5,724 6,214 1,556 Net income per share: Basic 0.16 0.11 0.12 0.03 Diluted $ 0.15 $ 0.11 $ 0.12 $ 0.03 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pay vs Performance Disclosure | |||||||||||||||
Net income | $ 14,527 | $ 26,888 | $ 33,271 | $ 52,977 | $ 16,246 | $ 19,105 | $ 11,710 | $ 14,469 | $ 1,556 | $ 6,214 | $ 5,724 | $ 8,276 | $ 127,663 | $ 61,530 | $ 21,770 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Mar. 31, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements and related notes have been prepared in accordance with US generally accepted accounting principles (“US GAAP”) and all intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include all cash balances and highly liquid investments purchased with maturities of three months or less. |
Accounts receivable | Accounts receivable Trade receivables consist of uncollateralized, non-interest bearing customer obligations from transactions with the Company's customers, reduced by an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments. The allowance is based on the evaluation and aging of past due balances, specific exposures, historical trends and economic conditions. The Company maintains allowances for doubtful accounts for uncollectible accounts receivable. Management estimates anticipated losses from doubtful accounts based on days past due, collection history and the financial health of customers. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Recoveries of receivables previously written off are recorded when received. The Company recorded an allowance for doubtful accounts of $1.2 million and $0.1 million as of March 31, 2024 and March 31, 2023, respectively. The Company recorded a reserve for sales adjustments of $38.7 million and $23.5 million as of March 31, 2024 and March 31, 2023, respectively, which is also presented as a reduction to accounts receivable. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon an evaluation of each customer’s ability to perform its payment obligations. |
Concentrations of credit risk | Concentrations of credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents including money market funds. Although the Company deposits its cash with creditworthy financial institutions, its deposits, at times, may exceed federally insured limits. To date, the Company has not experienced any losses on its cash deposits. The Company performs credit evaluations of its customers and the risk with respect to trade receivables is further mitigated by the short duration of customer payment terms and the pedigree of the customer base. |
Inventory | Inventory |
Property and equipment and other assets | Property and equipment and other assets Property and equipment is stated at cost and is depreciated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the useful lives of the assets. Repairs and maintenance expenditures are expensed as incurred. Useful lives by major asset class are as follows: Estimated useful lives Machinery, equipment and software 2 - 5 years Leasehold improvements up to 5 years Furniture and fixtures 3 - 5 years Store fixtures 1 - 3 years As of March 31, 2024 and March 31, 2023, included in other assets are retail product displays, net, of $41.1 million and $15.7 million, respectively, that are generally amortized over a period of three years. Amortization expense for retail product displays was $11.4 million, $5.2 million and $5.9 million for the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess of the purchase price for an acquisition over the fair value of the net assets acquired. In addition, the Company has acquired finite-lived intangible assets and an indefinite-lived intangible asset. Goodwill is not amortized but rather is reviewed annually for impairment, at the reporting unit level, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. When testing goodwill for impairment, the Company first performs an assessment of qualitative factors. If qualitative factors indicate that it is more likely than not that the fair value of the relevant reporting unit is less than its carrying amount, the Company tests goodwill for impairment at the reporting unit level using a two-step approach. In step one, the Company determines if the fair value of the reporting unit exceeds the unit’s carrying value. If step one indicates that the fair value of the reporting unit is less than its carrying value, the Company performs step two, determining the fair value of goodwill and, if the carrying value of goodwill exceeds its implied fair value, an impairment charge is recorded. The Company has identified a single reporting unit for purposes of impairment testing due, in part, to the integrated nature of the Company’s various distribution channels and the extent of shared costs across those channels. Indefinite-lived intangible assets are not amortized but rather are tested for impairment annually and impairment is recognized if the carrying amount exceeds the fair value of the intangible asset. The Company evaluates its indefinite-lived intangible asset to determine whether current events and circumstances continue to support an indefinite useful life. Amortization of intangible assets with finite useful lives is computed on a straight-line basis over periods of 3 years to 15 years. The determination of the estimated period of benefit is dependent upon the use and underlying characteristics of the intangible asset. The Company evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value of an intangible asset is not recoverable, impairment loss is measured as the amount by which the carrying value exceeds its estimated fair value. There were no impairment charges recorded on goodwill or indefinite-lived intangible assets during the fiscal years ended March 31, 2024, March 31, 2023 or March 31, 2022. |
Debt issuance costs | Debt issuance costs Debt issuance costs and lender fees were incurred for arranging the credit facilities from various financial institutions. For credit facilities consisting of both term and revolving debt, such costs are allocated to each sub-facility based upon the total borrowing capacity. For term debt, issuance costs are presented within the related long-term debt liability on the consolidated balance sheet and lender fees are presented as a direct deduction from the carrying amount. Both debt issuance costs and lender fees are amortized over the term of the related debt using the effective interest rate method. For revolving debt, issuance costs and lender fees are presented as a noncurrent asset and amortized over the term of the related debt on a straight-line basis. |
Fair value of financial instruments | Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and accrued expenses approximate their fair values due to the short-term nature of these items. The carrying amounts of bank debt approximate their fair values as the stated interest rates approximate market rates currently available to the Company for loans with similar terms. See Note 8 Fair value of financial instruments to consolidated financial statements in Part IV, Item 15.“Exhibits, financial statement schedules.” |
Segment reporting | Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. |
Business combinations | Business combinations The purchase price of a business acquisition is allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the business combination date. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires the Company to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Unanticipated events or circumstances may occur that could affect the accuracy of the Company’s fair value estimates, and under different assumptions, the resulting valuations could be materially different. Costs that are incurred to complete the business combination, such as legal and other professional fees, are not considered as a part of consideration transferred and are charged to selling, general and administrative expense as they are incurred. |
Revenue recognition | Revenue recognition Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. For the Company’s retail customer transactions, a contract exists when a written purchase order is received. For the Company’s direct-to-consumer transactions, a contract exists when an order is placed online. Control transfers at the time of shipment or the time of delivery, depending upon the specific terms of the customer arrangement. Nearly all of the Company’s transactions with its customers and consumers include a single performance obligation delivered at a point in time. The transaction price can include both fixed and variable consideration. In most cases, it is entirely comprised of variable consideration with the variability driven by expected sales discounts, markdown support and other incentives and allowances offered to customers. These incentives may be explicit or implied by the Company's historical business practices. Generally, these commitments represent cash consideration paid to a customer and do not constitute a promised good or service. The amount of variable consideration is estimated at the time of sale based on either the expected amount or the most likely amount, depending on the nature of the variability. The Company regularly reviews and revises, when deemed necessary, its estimates of variable consideration, based on both customer-specific expectations as well as historical rates of realization. A provision for customer incentives and allowances is included on the consolidated balance sheet, net against accounts receivable. Disaggregated revenue The Company distributes product both through national and international retailers as well as direct-to-consumers through its e-commerce channels. The marketing and consumer engagement benefits that the direct channels provide are integral to the Company’s brand and product development strategy and drive sales across channels. As such, the Company views its two primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer and the innovation and distribution processes. See Segment Reporting section above for the table providing disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers. Contract assets and liabilities The Company extends credit to its retail customers based upon an evaluation of their credit quality. The majority of retail customers obtain payment terms of approximately 30 days and a contract asset is recognized for the related accounts receivable. Additionally, shipping terms can vary, giving rise to contract liabilities for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of March 31, 2024, other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheet. Practical expedients The Company elected to record revenue net of taxes collected from customers and exclude the amounts from the transaction price. The Company includes in revenue any taxes assessed on the Company's total gross receipts for which it has the primary responsibility to pay the tax. The Company elected not to disclose revenues related to remaining performance obligations for partially completed or unfulfilled contracts that are expected to be fulfilled within one year as such amounts were insignificant. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Future income tax benefits are recognized to the extent that realization of such benefits is more likely than not. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in its income tax provision. |
Leases | Leases The Company has entered into operating lease agreements for office space, warehouse and equipment and software. Lease assets and liabilities are recognized at the present value of the minimum rental payments (excluding executory costs) and expected payment under any residual value guarantee at the lease commencement date. The Company uses its incremental borrowing rate to determine the present value of lease payments. Non-lease components primarily include payments for maintenance and utilities. The Company accounts for the non-lease components in a contract (e.g., common area maintenance) as part of the lease component by electing practical expedient for all leases of commercial office and warehouse space, as the non-lease components are not a significant portion of the total consideration in those agreements. The Company's lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease assets and liabilities are included on the Company's consolidated balance sheet. The current portion of the Company's operating lease liabilities is included in accrued expenses and other current liabilities and the long-term portion is included in long-term operating lease liabilities. Finance lease assets are included in other assets. Finance lease liabilities are included in long-term debt and finance lease obligations. Operating lease expense is recognized on a straight-line basis over the lease term. |
Foreign currency | Foreign currency The functional currency of most of the Company’s foreign subsidiaries as of March 31, 2024 is the US dollar. During the current reporting period, the Company reassessed its functional currency and determined that the functional currency for one of its foreign subsidiaries changed from the US dollar to GBP. The change in functional currency is accounted for prospectively from October 1, 2023. Prior to the change, the functional currency of all of the Company’s foreign subsidiaries is the US dollar. Transactions denominated in currencies other than the functional currency are recorded at exchange rates in effect on the date of the transaction. At the end of each reporting period, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange rates. Unrealized foreign exchange gains and losses due to re-measurement of monetary assets and liabilities denominated in non-functional currencies as well as transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (expense), net in the consolidated statements of operations. The financial statements of the non-US dollar functional currency subsidiary are translated into US dollars using period-end rates of exchange for assets and liabilities, historical rates of exchange for equity and average rates of exchange for revenue and expenses. Translation gains (losses) are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. |
Stock based compensation | Stock based compensation The Company has several stock award plans, which are described in detail in Note 13. The Company accounts for stock based compensation under ASC 718, “Compensation-Stock Compensation.” The Company recognizes expense over the requisite service period of the award, net of an estimate for the impact of award forfeitures. |
Advertising costs | Advertising costs Advertising costs are expensed as incurred or distributed. Advertising costs are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and amounted to approximately $209.2 million, $96.7 million and $41.0 million in the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, respectively. |
Net income per share | Net income per share |
Recent accounting pronouncements | Recent accounting pronouncements No new accounting pronouncements issued but not yet adopted are expected to have a material impact on the Company’s consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Concentrations of Risk | During the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, the following customers individually accounted for greater than 10% of the Company’s net sales as disclosed below: Fiscal year ended March 31, 2024 2023 2022 Target 25 % 25 % 23 % Walmart 17 % 20 % 26 % Ulta Beauty 16 % 15 % 12 % Customers that individually accounted for greater than 10% of the Company’s accounts receivable at the end of the periods as of March 31, 2024 and March 31, 2023, respectively, are as presented : March 31, 2024 March 31, 2023 Target 28 % 32 % Walmart 20 % 26 % Ulta Beauty 12 % * * Customer comprised less than 10% of accounts receivable at the end of the period indicated. |
Schedule of Useful Lives by Major Asset Class | Useful lives by major asset class are as follows: Estimated useful lives Machinery, equipment and software 2 - 5 years Leasehold improvements up to 5 years Furniture and fixtures 3 - 5 years Store fixtures 1 - 3 years |
Net Sales in United States and Outside of United States | During the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, net sales in the United States and International were as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 United States $ 868,076 $ 506,759 $ 347,484 International 155,856 72,085 44,671 Total net sales $ 1,023,932 $ 578,844 $ 392,155 |
Property and Equipment in United States and Outside of United States | As of March 31, 2024 and March 31, 2023, the Company had property and equipment in the United States and International as follows (in thousands) : March 31, 2024 March 31, 2023 United States $ 10,936 $ 7,606 International 3,038 268 Total property and equipment, net $ 13,974 $ 7,874 |
Reconciliation of Sales Allowances | A reconciliation of the beginning and ending amounts of the reserve for sales adjustments for the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022 is as follows (in thousands): Balance as of March 31, 2021 $ 11,913 Charges 48,862 Deductions (44,465) Balance as of March 31, 2022 16,310 Charges 66,302 Deductions (59,092) Balance as of March 31, 2023 23,520 Charges 122,228 Deductions (107,088) Balance as of March 31, 2024 $ 38,660 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Consideration Transferred | The following table summarizes the fair market value of the consideration transferred and how the Company calculates the goodwill resulting from the acquisition (in thousands): Cash consideration $ 275,266 Equity consideration (common stock issued) (1) 57,772 Total consideration transferred 333,038 Less: Net assets acquired Net assets acquired, excluding liability assumed for acquisition-related seller expenses $ 174,608 Liability assumed for acquisition-related seller expenses (2) (10,549) Net assets acquired (164,059) Goodwill $ 168,979 (1) The fair market value of the $57.8 million common stock issued (equivalent to 577,659 shares of common stock) was determined on the basis of the opening market price of the Company’s stock of $100.01 per share on the acquisition date. (2) In connection with the Acquisition, the Company paid Naturium’s acquisition-related expenses of $10.5 million recognized as an assumed liability at the acquisition date. |
Schedule of Purchase Price Allocation and Intangible Assets and Liabilities Acquired | The following table presents the preliminary purchase price allocation recorded in the Company's condensed consolidated balance sheet on the acquisition date (in thousands): Cash $ 293 Accounts receivable 7,388 Inventory 16,236 Prepaid expenses and other current assets 1,899 Property and equipment — Goodwill (1) 168,979 Intangible assets 162,100 Total assets acquired 356,895 Accounts payable (15,897) Accrued expenses and other current liabilities (6,025) Net deferred tax liability (1,935) Total liabilities assumed (23,857) Total purchase price $ 333,038 (1) The goodwill represents the excess value over both tangible and intangible assets acquired and liabilities assumed. The goodwill recognized in this transaction is primarily attributable to the Company’s expectation that Naturium can continue to expand distribution and deliver new skin care products. A substantial amount of the goodwill is expected to be deductible for tax purposes. The estimated fair values (all considered level 3 measurements) of the identifiable intangible assets acquired, their estimated useful lives and fair value methodology are as follows: Fair Value Estimated Useful Life (in thousands) (in years) Fair Value Methodology Customer relationships – retailers $ 20,000 10 Excess earnings method Customer relationships – e-commerce 17,600 3 Excess earnings method and with and without method Trademarks 124,500 15 Relief from Royalty method Total identified intangible assets $ 162,100 |
Schedule of Acquisition Net Sales | The amounts of Naturium’s net sales included in the Company's condensed consolidated financial statements from the date of acquisition and the net sales of the combined companies on an unaudited pro forma basis, had the acquisition date been April 1, 2022, are as follows (in thousands): Amount Actual Naturium net sales from October 4, 2023 to March 31, 2024 $ 53,421 Supplemental pro forma combined net sales for the fiscal year ended March 31, 2024 1,065,726 Supplemental pro forma combined net sales for the fiscal year ended March 31, 2023 628,751 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Information Regarding Company's Goodwill and Intangible Assets | Information regarding the Company’s goodwill and intangible assets as of March 31, 2024 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 97,600 $ (73,393) $ 24,207 Customer relationships – e-commerce 3 years 21,540 (6,874) 14,666 Trademarks 10 to 15 years 128,000 (5,579) 122,421 Total finite-lived intangibles 247,140 (85,846) 161,294 Trademarks Indefinite 63,800 — 63,800 Goodwill 340,600 — 340,600 Total goodwill and other intangibles $ 651,540 $ (85,846) $ 565,694 Information regarding the Company’s goodwill and intangible assets as of March 31, 2023 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (65,780) $ 11,820 Customer relationships – e-commerce 3 years 3,940 (3,940) — Trademarks 10 years 3,500 (1,079) 2,421 Total finite-lived intangibles 85,040 (70,799) 14,241 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (70,799) $ 249,661 |
Future Amortization Expense for Intangible Assets | The estimated future amortization expense related to the finite-lived intangible assets, assuming no impairment as of March 31, 2024, is as follows (in thousands): Year ending March 31, 2025 $ 17,397 2026 17,397 2027 14,463 2028 11,530 2029 11,530 Thereafter 88,977 Total $ 161,294 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment as of March 31, 2024 and March 31, 2023 consists of the following (in thousands): March 31, 2024 March 31, 2023 Machinery, equipment and software $ 20,222 $ 15,148 Leasehold improvements 6,982 4,677 Furniture and fixtures 1,542 1,263 Store fixtures 10,157 10,782 Property and equipment, gross 38,903 31,870 Less: Accumulated depreciation and amortization (24,929) (23,996) Property and equipment, net $ 13,974 $ 7,874 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of March 31, 2024 and March 31, 2023 consists of the following (in thousands): March 31, 2024 March 31, 2023 Accrued expenses $ 37,782 $ 22,726 Accrued inventory 16,478 1,330 Accrued marketing 29,282 23,761 Current portion of operating lease liabilities 7,016 4,510 Accrued compensation 17,423 13,098 Taxes payable 5,814 2,851 Other current liabilities 3,938 2,698 Accrued expenses and other current liabilities $ 117,733 $ 70,974 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Liabilities | The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2024 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 262,932 $ — $ 262,932 $ — Total financial liabilities $ 262,932 $ — $ 262,932 $ — __________________________ (1) Of this amount, $100.3 million is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2023 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 66,883 $ — $ 66,883 $ — Total financial liabilities $ 66,883 $ — $ 66,883 $ — __________________________ (1) Of this amount, $5.6 million is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of March 31, 2024 and March 31, 2023 consists of the following (in thousands): March 31, 2024 March 31, 2023 Debt: Revolving line of credit (1) $ 89,500 $ — Term loan (1) $ 173,375 $ 66,250 Finance lease obligations 57 633 Total debt 262,932 66,883 Less: debt issuance costs (806) (427) Total debt, net of issuance costs 262,126 66,456 Less: current portion (100,307) (5,575) Long-term portion of debt $ 161,819 $ 60,881 (1) See further discussion below. As of March 31, 2024, the Company was in compliance with all applicable financial covenants under the Amended Credit Agreement. |
Schedule of Aggregate Future Minimum Principal Payments on the Term Loan | Aggregate future minimum principal payments are as follows (in thousands): Year ending March 31, Term Loan 2025 $ 100,250 2026 10,750 2027 151,875 Total $ 262,875 |
Schedule of Components of Interest Expense | The components of interest expense, net are as follows (in thousands) : Fiscal year ended March 31, 2024 2023 2022 Interest on term loan debt $ 8,294 $ 3,450 $ 1,708 Amortization of debt issuance costs 430 346 331 Interest on revolving line of credit 3,106 163 342 Interest on finance leases 10 31 63 Interest income (4,817) (1,972) (3) Interest expense, net $ 7,023 $ 2,018 $ 2,441 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) Before Income Taxes | The components of income (loss) before the provision for income taxes are as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Domestic $ 142,507 $ 64,850 $ 26,286 Foreign (1,517) (776) (855) Total $ 140,990 $ 64,074 $ 25,431 |
Schedule of Components of (Provision) Benefit for Income Taxes | The components of the benefit (provision) for income taxes are as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Current: US federal $ (12,505) $ (7,065) $ (5,637) State (4,078) (1,854) (1,715) Foreign (20) (26) (10) Total current (16,603) (8,945) (7,362) Deferred: US federal 2,130 5,035 3,146 State 746 816 738 Foreign 400 550 (183) Total deferred 3,276 6,401 3,701 Total (provision) benefit for income taxes $ (13,327) $ (2,544) $ (3,661) |
Schedule of Reconciliation of Federal Statutory Rate to Company's Effective Tax Rate | The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate : Fiscal year ended March 31, 2024 2023 2022 Federal statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit 1.8 % 1.0 % 2.6 % State tax deferred rate change, net of federal benefit — % — % (0.1) % Nondeductible business expenses 0.4 % 0.6 % 0.4 % Nondeductible employee compensation 4.3 % 2.5 % 1.1 % Provision-to-return adjustment (0.2) % (0.1) % (0.3) % Uncertain tax positions — % — % 0.1 % Stock based compensation (18.4) % (20.3) % (12.0) % Change in valuation allowance 0.4 % (0.6) % 1.5 % Others 0.2 % (0.1) % 0.1 % Effective tax rate 9.5 % 4.0 % 14.4 % |
Schedule of Components of Net Deferred Taxes | The components of net deferred taxes arising from temporary differences are as follows (in thousands): March 31, 2024 March 31, 2023 Deferred tax assets: Compensation $ 222 $ 354 Inventory and receivables 13,465 9,976 Accrued expenses 3,782 2,734 Stock compensation 7,349 8,247 Net operating losses 1,188 571 Right of use liability 5,026 3,782 Capitalized research and development 2,051 858 Other 1,792 774 Gross deferred tax assets 34,875 27,296 Valuation allowance (744) — Net deferred tax assets 34,131 27,296 Deferred tax liabilities: Goodwill 3,546 5,180 Fixed assets and internally developed software 5,746 2,451 Intangible assets 21,326 19,107 Right of use asset 4,801 3,359 Other 557 378 Deferred tax liabilities 35,976 30,475 Net deferred tax liabilities $ 1,845 $ 3,179 The deferred tax assets and liabilities are reported in the accompanying balance sheets as follows (in thousands) : March 31, 2024 March 31, 2023 Deferred tax assets $ 1,821 $ 563 Deferred tax liabilities 3,666 3,742 Net deferred tax liabilities $ 1,845 $ 3,179 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Balance at beginning of year $ 442 $ 466 $ 458 Increases for prior year tax positions — — — Increases for current year tax positions 108 92 75 Decreases for prior year tax positions (19) (10) (6) Decreases due to settlements — — (61) Decreases due to statutes lapsing (98) (106) — Balance at end of year $ 433 $ 442 $ 466 |
Stock based compensation (Table
Stock based compensation (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity and Related Information | The following table summarizes the activity for options that vest solely based upon the satisfaction of a service condition as follows: Options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic values (in thousands) (1) Balance as of March 31, 2021 1,640,981 14.86 Exercised (93,282) 11.19 Canceled or forfeited (4,200) 26.63 Balance as of March 31, 2022 1,543,499 15.05 5.1 $ 16,686 Exercised (519,009) 12.82 Balance as of March 31, 2023 1,024,490 $ 16.17 4.1 $ 67,796 Exercised (347,590) 14.47 Canceled or forfeited (2,900) 26.84 Balance as of March 31, 2024 674,000 $ 17.01 3.3 $ 120,660 Exercisable, March 31, 2024 650,000 $ 17.07 3.2 $ 116,326 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock price of $196.03, as reported on the New York Stock Exchange on March 28, 2024. The following table summarizes the activity for options that vest based upon the satisfaction of performance or market conditions as follows: Options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic values (in thousands) (1) Balance as of March 31, 2021 1,108,592 8.72 Exercised (104,265) 2.24 Balance as of March 31, 2022 1,004,327 9.40 3.0 $ 16,809 Exercised (460,787) 2.73 Canceled or forfeited (25,800) 26.84 Balance as of March 31, 2023 517,740 14.46 2.4 $ 35,151 Exercised (256,440) 1.84 Balance as of March 31, 2024 261,300 26.84 2.9 $ 44,209 Exercisable, March 31, 2024 261,300 26.84 2.9 $ 44,209 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock price of $196.03, as reported on the New York Stock Exchange on March 28, 2024. |
Summary of Additional Information Relating to Stock Options Activity | Additional information relating to service-based options is as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Stock based compensation expense $ 147 $ 344 $ 924 Intrinsic value of options exercised 45,542 18,015 1,695 Additional information relating to options that vest based upon the satisfaction of performance or market conditions is as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Intrinsic value of options exercised $ 27,718 $ 23,860 $ 2,921 |
Summary of Activities for Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") | The following table summarizes the activities for restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), including performance-based RSUs, as follows: Shares of restricted stock outstanding Weighted-average grant date fair value Balance as of March 31, 2021 2,289,615 14.67 Granted 1,103,890 27.62 Vested (926,250) 14.50 Canceled or forfeited (191,513) 16.67 Balance as of March 31, 2022 2,275,742 20.85 Granted 1,180,167 28.59 Vested (1,066,516) 18.88 Canceled or forfeited (260,620) 22.24 Balance as of March 31, 2023 2,128,773 25.94 Granted 526,280 111.41 Vested (649,592) 24.57 Canceled or forfeited (62,594) 51.75 Balance as of March 31, 2024 1,942,867 48.67 |
Disclosure of Additional Information | Additional information relating to RSAs and RSUs (including performance-based RSUs), is as follows (in thousands): Fiscal year ended March 31, 2024 2023 2022 Stock based compensation expense: Cost of sales $ 16 $ 112 $ 311 Selling, general and administrative expense 40,462 28,661 18,411 Total $ 40,478 $ 28,773 $ 18,722 Intrinsic value of restricted stock released $ 73,124 $ 47,713 $ 25,621 |
Net income per share (Tables)
Net income per share (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator in Basic and Diluted Net Income Per Common Share Computations | The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations (in thousands, except share and per share data): Fiscal year ended March 31, 2024 2023 2022 Numerator: Net income $ 127,663 $ 61,530 $ 21,770 Denominator: Weighted average common shares outstanding — basic 54,747,930 52,474,811 50,940,808 Dilutive common equivalent shares from equity awards 3,040,524 2,862,743 2,713,495 Weighted average common shares outstanding —diluted 57,788,454 55,337,554 53,654,303 Net income per share: Basic $ 2.33 $ 1.17 $ 0.43 Diluted $ 2.21 $ 1.11 $ 0.41 Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 44,772 194,289 20,314 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Balance Sheet Information | Supplemental balance sheet information related to leases as of March 31, 2024 and March 31, 2023 is as follows (in thousands): Classification March 31, 2024 March 31, 2023 Assets Operating lease assets Other assets $ 27,415 $ 14,071 Finance lease assets (a) Other assets — 245 Total leased assets $ 27,415 $ 14,316 Liabilities Current Operating Accrued expenses and other current liabilities $ 7,016 $ 4,510 Finance Current portion of long-term debt and finance lease obligations 57 575 Noncurrent Operating Long-term operating lease obligations 21,459 11,201 Finance Long-term debt and finance lease obligations — 58 Total lease liabilities $ 28,532 $ 16,344 ___________________ (a) Finance leases are recorded net of accumulated amortization of $1.5 million and $3.4 million as of March 31, 2024 and March 31, 2023, respectively. |
Components of Lease Expense | For the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022, the components of operating and finance lease costs were as follows (in thousands): Fiscal year ended March 31, Classification 2024 2023 2022 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 7,341 $ 4,638 $ 4,686 Finance lease cost Amortization of leased assets SG&A expenses 210 420 436 Interest on lease liabilities Interest expense, net 10 31 63 Total lease cost $ 7,561 $ 5,089 $ 5,185 As of March 31, 2024 and March 31, 2023, the weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2024 March 31, 2023 Weighted-average remaining lease term Operating leases 4.8 years 4.6 years Finance leases 0.2 years 0.9 years Weighted-average discount rate Operating leases 5.1 % 2.6 % Finance leases 1.6 % 2.6 % |
Maturities of Operating Lease Liabilities | As of March 31, 2024, the aggregate future minimum lease payments under non-cancellable leases are as follows (in thousands): Year ending March 31, Operating Finance Total 2025 $ 8,332 $ 57 $ 8,389 2026 8,898 — 8,898 2027 5,537 — 5,537 2028 2,419 — 2,419 2029 1,956 — 1,956 Thereafter 5,417 — 5,417 Total lease payments 32,559 57 32,616 Less: Interest 4,084 — 4,084 Present value of lease liabilities $ 28,475 $ 57 $ 28,532 |
Maturities of Finance Lease Liabilities | As of March 31, 2024, the aggregate future minimum lease payments under non-cancellable leases are as follows (in thousands): Year ending March 31, Operating Finance Total 2025 $ 8,332 $ 57 $ 8,389 2026 8,898 — 8,898 2027 5,537 — 5,537 2028 2,419 — 2,419 2029 1,956 — 1,956 Thereafter 5,417 — 5,417 Total lease payments 32,559 57 32,616 Less: Interest 4,084 — 4,084 Present value of lease liabilities $ 28,475 $ 57 $ 28,532 |
Quarterly financial summary (_2
Quarterly financial summary (unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial summary | Unaudited quarterly results for the last three years were as follows (in thousands, except per share data): 2024 Q1 Q2 Q3 Q4 Net sales $ 216,339 $ 215,507 $ 270,943 $ 321,143 Gross profit 152,572 152,365 191,957 227,202 Net income 52,977 33,271 26,888 14,527 Net income per share: Basic 0.98 0.61 0.49 $ 0.26 Diluted $ 0.93 $ 0.58 $ 0.46 $ 0.25 2023 Q1 Q2 Q3 Q4 Net sales $ 122,601 $ 122,349 $ 146,537 187,357 Gross profit 82,985 79,560 98,725 129,126 Net income 14,469 11,710 19,105 16,246 Net income per share: Basic 0.28 0.22 0.36 $ 0.31 Diluted $ 0.27 $ 0.21 $ 0.34 $ 0.29 2022 Q1 Q2 Q3 Q4 Net sales $ 97,047 $ 91,855 $ 98,118 $ 105,135 Gross profit 61,906 57,985 64,341 67,500 Net income 8,276 5,724 6,214 1,556 Net income per share: Basic 0.16 0.11 0.12 0.03 Diluted $ 0.15 $ 0.11 $ 0.12 $ 0.03 |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2024 USD ($) distribution_channel | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2024 USD ($) segment distribution_channel | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Allowance for doubtful accounts | $ 1,200,000 | $ 100,000 | $ 1,200,000 | $ 100,000 | |||||||||||
Sales allowances | 38,700,000 | 23,500,000 | 38,700,000 | 23,500,000 | |||||||||||
Reserve for excess and obsolete inventory reduction | (10,600,000) | (6,600,000) | (10,600,000) | (6,600,000) | |||||||||||
Property and equipment, net | $ 13,974,000 | 7,874,000 | 13,974,000 | 7,874,000 | |||||||||||
Impairment of long-lived assets held-for-use | 0 | 0 | $ 0 | ||||||||||||
Impairment charges | $ 0 | 0 | 0 | ||||||||||||
Number of operating segments | segment | 1 | ||||||||||||||
Number of reporting segments | segment | 1 | ||||||||||||||
Number of distribution channels | distribution_channel | 2 | 2 | |||||||||||||
Net sales | $ 321,143,000 | $ 270,943,000 | $ 215,507,000 | $ 216,339,000 | 187,357,000 | $ 146,537,000 | $ 122,349,000 | $ 122,601,000 | $ 105,135,000 | $ 98,118,000 | $ 91,855,000 | $ 97,047,000 | $ 1,023,932,000 | 578,844,000 | 392,155,000 |
Cost of sales | 299,836,000 | 188,448,000 | 140,423,000 | ||||||||||||
Advertising costs | 209,200,000 | 96,700,000 | 41,000,000 | ||||||||||||
Retail Product Displays | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Property and equipment, net | $ 41,100,000 | $ 15,700,000 | $ 41,100,000 | 15,700,000 | |||||||||||
Estimated useful lives | 3 years | 3 years | |||||||||||||
Amortization expense | $ 11,400,000 | 5,200,000 | 5,900,000 | ||||||||||||
Minimum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Finite-lived intangibles, estimated useful life | 3 years | 3 years | |||||||||||||
Maximum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Finite-lived intangibles, estimated useful life | 15 years | 15 years | |||||||||||||
Shipping and Handling | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Net sales | $ 3,400,000 | 1,600,000 | 700,000 | ||||||||||||
Cost of sales | $ 57,100,000 | $ 36,900,000 | $ 28,000,000 |
Summary of significant accoun_5
Summary of significant accounting policies - Schedule of Concentrations of Risk (Details) - Customer Concentration Risk | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | Target | |||
Product Information [Line Items] | |||
Concentration risk percentage | 25% | 25% | 23% |
Revenue | Walmart | |||
Product Information [Line Items] | |||
Concentration risk percentage | 17% | 20% | 26% |
Revenue | Ulta Beauty | |||
Product Information [Line Items] | |||
Concentration risk percentage | 16% | 15% | 12% |
Accounts Receivable | Target | |||
Product Information [Line Items] | |||
Concentration risk percentage | 28% | 32% | |
Accounts Receivable | Walmart | |||
Product Information [Line Items] | |||
Concentration risk percentage | 20% | 26% | |
Accounts Receivable | Ulta Beauty | |||
Product Information [Line Items] | |||
Concentration risk percentage | 12% |
Summary of significant accoun_6
Summary of significant accounting policies - Schedule of Useful Lives by Major Asset Class (Details) | Mar. 31, 2024 |
Machinery, equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Machinery, equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Store fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 1 year |
Store fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Summary of significant accoun_7
Summary of significant accounting policies - Net Sales in United States and Outside of United States (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net sales | $ 321,143 | $ 270,943 | $ 215,507 | $ 216,339 | $ 187,357 | $ 146,537 | $ 122,349 | $ 122,601 | $ 105,135 | $ 98,118 | $ 91,855 | $ 97,047 | $ 1,023,932 | $ 578,844 | $ 392,155 |
United States | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net sales | 868,076 | 506,759 | 347,484 | ||||||||||||
International | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net sales | $ 155,856 | $ 72,085 | $ 44,671 |
Summary of significant accoun_8
Summary of significant accounting policies - Long-Lived Assets in United States and Outside of United States (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 13,974 | $ 7,874 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 10,936 | 7,606 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 3,038 | $ 268 |
Summary of significant accoun_9
Summary of significant accounting policies - Reconciliation of Sales Allowances (Details) - Sales Allowances - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Sales Allowances [Roll Forward] | |||
Beginning balance | $ 23,520 | $ 16,310 | $ 11,913 |
Charges | 122,228 | 66,302 | 48,862 |
Deductions | (107,088) | (59,092) | (44,465) |
Ending balance | $ 38,660 | $ 23,520 | $ 16,310 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | |||
Impairment charge | $ 2,900,000 | $ 0 | $ 0 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 04, 2023 | Mar. 31, 2024 | Mar. 31, 2024 | |
Business Acquisition [Line Items] | |||
Acquisition transaction cost | $ 3,400 | ||
Naturium LLC | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 333,038 | ||
Goodwill | $ 400 |
Acquisition - Schedule of Consi
Acquisition - Schedule of Consideration Transferred (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 04, 2023 | Mar. 31, 2024 | Mar. 31, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 340,600 | $ 171,620 | |
Naturium LLC | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 275,266 | ||
Equity consideration (common stock issued) | 57,772 | ||
Total consideration transferred | 333,038 | ||
Net assets acquired, excluding liability assumed for acquisition-related seller expenses | 174,608 | ||
Liability assumed for acquisition-related seller expenses | (10,549) | ||
Net assets acquired | (164,059) | ||
Goodwill | $ 168,979 | ||
Common stock issued (in shares) | 577,659 | ||
Business acquisition, share price (in usd per share) | $ 100.01 |
Acquisition - Schedule of Purch
Acquisition - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Oct. 04, 2023 | Mar. 31, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 340,600 | $ 171,620 | |
Naturium LLC | |||
Business Acquisition [Line Items] | |||
Cash | $ 293 | ||
Accounts receivable | 7,388 | ||
Inventory | 16,236 | ||
Prepaid expenses and other current assets | 1,899 | ||
Property and equipment | 0 | ||
Goodwill | 168,979 | ||
Intangible assets | 162,100 | ||
Total assets acquired | 356,895 | ||
Accounts payable | (15,897) | ||
Accrued expenses and other current liabilities | (6,025) | ||
Net deferred tax liability | (1,935) | ||
Total liabilities assumed | (23,857) | ||
Total purchase price | $ 333,038 |
Acquisition - Schedule of Goodw
Acquisition - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Oct. 04, 2023 | Mar. 31, 2023 |
Customer relationships – e-commerce | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles, estimated useful life | 3 years | 3 years | |
Trademarks | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles, estimated useful life | 10 years | ||
Naturium LLC | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 162,100 | ||
Naturium LLC | Customer relationships – retailers | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 20,000 | ||
Finite-lived intangibles, estimated useful life | 10 years | ||
Naturium LLC | Customer relationships – e-commerce | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 17,600 | ||
Finite-lived intangibles, estimated useful life | 3 years | ||
Naturium LLC | Trademarks | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 124,500 | ||
Finite-lived intangibles, estimated useful life | 15 years |
Acquisition - Schedule of Acqui
Acquisition - Schedule of Acquisition Net Sales (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Naturium LLC | |||
Business Acquisition [Line Items] | |||
Pro forma revenue | $ 53,421 | $ 1,065,726 | $ 628,751 |
Goodwill and other intangible_3
Goodwill and other intangible assets - Information Regarding Company's Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, Gross carrying amount | $ 247,140 | $ 85,040 |
Finite-lived intangibles, Accumulated amortization | (85,846) | (70,799) |
Finite-lived intangibles, Net carrying amount | 161,294 | 14,241 |
Goodwill | 340,600 | 171,620 |
Goodwill and other intangibles, Gross carrying amount | 651,540 | 320,460 |
Goodwill and other intangibles, Accumulated amortization | (85,846) | (70,799) |
Goodwill and other intangibles, Net carrying amount | $ 565,694 | 249,661 |
Minimum | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, estimated useful life | 3 years | |
Maximum | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, estimated useful life | 15 years | |
Trademarks | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Indefinite lived intangibles, Net carrying amount | $ 63,800 | 63,800 |
Customer relationships – retailers | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, Gross carrying amount | 97,600 | 77,600 |
Finite-lived intangibles, Accumulated amortization | (73,393) | (65,780) |
Finite-lived intangibles, Net carrying amount | $ 24,207 | $ 11,820 |
Finite-lived intangibles, estimated useful life | 10 years | 10 years |
Customer relationships – e-commerce | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, Gross carrying amount | $ 21,540 | $ 3,940 |
Finite-lived intangibles, Accumulated amortization | (6,874) | (3,940) |
Finite-lived intangibles, Net carrying amount | $ 14,666 | $ 0 |
Finite-lived intangibles, estimated useful life | 3 years | 3 years |
Trademarks | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, Gross carrying amount | $ 128,000 | $ 3,500 |
Finite-lived intangibles, Accumulated amortization | (5,579) | (1,079) |
Finite-lived intangibles, Net carrying amount | $ 122,421 | $ 2,421 |
Finite-lived intangibles, estimated useful life | 10 years | |
Trademarks | Minimum | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, estimated useful life | 10 years | |
Trademarks | Maximum | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, estimated useful life | 15 years |
Goodwill and other intangible_4
Goodwill and other intangible assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Depreciation and amortization | $ 15,000,000 | $ 8,100,000 | $ 8,100,000 |
Impairment of finite-lived intangible assets | $ 0 |
Goodwill and other intangible_5
Goodwill and other intangible assets - Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2025 | $ 17,397 | |
2026 | 17,397 | |
2027 | 14,463 | |
2028 | 11,530 | |
2029 | 11,530 | |
Thereafter | 88,977 | |
Finite-lived intangibles, Net carrying amount | $ 161,294 | $ 14,241 |
Property and equipment - Summar
Property and equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 38,903 | $ 31,870 |
Less: Accumulated depreciation and amortization | (24,929) | (23,996) |
Property and equipment, net | 13,974 | 7,874 |
Machinery, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 20,222 | 15,148 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,982 | 4,677 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,542 | 1,263 |
Store fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,157 | $ 10,782 |
Property and equipment - Additi
Property and equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 3.5 | $ 4.3 | $ 7.9 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 37,782 | $ 22,726 |
Accrued inventory | 16,478 | 1,330 |
Accrued marketing | 29,282 | 23,761 |
Current portion of operating lease liabilities | 7,016 | 4,510 |
Accrued compensation | 17,423 | 13,098 |
Taxes payable | 5,814 | 2,851 |
Other current liabilities | 3,938 | 2,698 |
Accrued expenses and other current liabilities | $ 117,733 | $ 70,974 |
Fair value of financial instr_3
Fair value of financial instruments - Summary of Fair Value of Financial Liabilities (Details) - Fair Value Measurements, Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Financial liabilities: | ||
Long-term debt, including current portion | $ 262,932 | $ 66,883 |
Total financial liabilities | 262,932 | 66,883 |
Current portion of long-term debt | 100,300 | 5,600 |
Level 1 | ||
Financial liabilities: | ||
Long-term debt, including current portion | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 2 | ||
Financial liabilities: | ||
Long-term debt, including current portion | 262,932 | 66,883 |
Total financial liabilities | 262,932 | 66,883 |
Level 3 | ||
Financial liabilities: | ||
Long-term debt, including current portion | 0 | 0 |
Total financial liabilities | $ 0 | $ 0 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Revolving line of credit | $ 89,500 | $ 0 |
Finance lease obligations | 57 | 633 |
Total debt | 262,932 | 66,883 |
Less: debt issuance costs | (806) | (427) |
Total debt, net of issuance costs | 262,126 | 66,456 |
Less: current portion | (100,307) | (5,575) |
Long-term portion of debt | 161,819 | 60,881 |
Term loan | ||
Debt Instrument [Line Items] | ||
Term loan | $ 173,375 | $ 66,250 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 12 Months Ended | |||||
Aug. 28, 2023 | Mar. 29, 2023 | Apr. 30, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 0 | $ 176,000 | $ 460,000 | |||
Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 1,100,000 | |||||
Prior Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 500,000 | |||||
Second Amendment | Base Rate | Consolidated Total Net Leverage Ratio Levels | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 1% | |||||
Revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 0% | |||||
Revolving credit facility | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 0.10% | |||||
Revolving credit facility | Minimum | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 1.25% | |||||
Revolving credit facility | Maximum | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 2.125% | |||||
Revolving credit facility | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 5 years | |||||
Revolving credit facility, unused amount | $ 10,500,000 | |||||
Credit facility, interest rate | 6.70% | |||||
Revolving credit facility | Amended Credit Agreement | Minimum Floor | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 0% | |||||
Revolving credit facility | Amended Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused fee percentage | 0.10% | |||||
Revolving credit facility | Amended Credit Agreement | Minimum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 1.25% | |||||
Revolving credit facility | Amended Credit Agreement | Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 0.25% | |||||
Revolving credit facility | Amended Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unused fee percentage | 0.30% | |||||
Revolving credit facility | Amended Credit Agreement | Maximum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 2.125% | |||||
Revolving credit facility | Amended Credit Agreement | Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 1.125% | |||||
Revolving credit facility | Amended Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amounts available under senior secured credit facility | $ 100,000,000 | |||||
Revolving credit facility | Amended Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amounts available under senior secured credit facility | 100,000,000 | |||||
Letter of Credit | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Amounts available under senior secured credit facility | 7,000,000 | |||||
Line of Credit | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Amounts available under senior secured credit facility | $ 5,000,000 | |||||
Term loan | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | 200,000 | |||||
Prepayment of term loan borrowings | $ 25,000,000 | |||||
Term loan | Amended Credit Agreement | Minimum Floor | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 0% | |||||
Term loan | Amended Credit Agreement | Minimum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 1.25% | |||||
Term loan | Amended Credit Agreement | Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 0.25% | |||||
Term loan | Amended Credit Agreement | Maximum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 2.125% | |||||
Term loan | Amended Credit Agreement | Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 1.125% | |||||
Term loan | Amended Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, interest rate | 6.70% | |||||
Incremental Term Loan | Second Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Amounts available under senior secured credit facility | $ 115,000,000 | |||||
Credit facility, interest rate | 6.90% | |||||
Interest rate, amortization | 5% | |||||
Quarterly installment rate | 1.25% | |||||
Incremental Term Loan | Second Amendment | SOFR | Consolidated Total Net Leverage Ratio Levels | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 0% | |||||
Incremental Term Loan | Second Amendment | Minimum | Base Rate | Consolidated Total Net Leverage Ratio Levels | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 0.50% | |||||
Incremental Term Loan | Second Amendment | Minimum | SOFR | Consolidated Total Net Leverage Ratio Levels | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 1.50% | |||||
Incremental Term Loan | Second Amendment | Maximum | Base Rate | Consolidated Total Net Leverage Ratio Levels | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 1.375% | |||||
Incremental Term Loan | Second Amendment | Maximum | SOFR | Consolidated Total Net Leverage Ratio Levels | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (percentage) | 2.375% |
Debt - Schedule of Aggregate Fu
Debt - Schedule of Aggregate Future Minimum Principal Payments on the Term Loan (Details) - Term loan $ in Thousands | Mar. 31, 2024 USD ($) |
Term Loan | |
2025 | $ 100,250 |
2026 | 10,750 |
2027 | 151,875 |
Total | $ 262,875 |
Debt - Schedule of Components o
Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 430 | $ 346 | $ 331 |
Interest income | (4,817) | (1,972) | (3) |
Interest expense, net | 7,023 | 2,018 | 2,441 |
Finance leases | |||
Debt Instrument [Line Items] | |||
Interest | 10 | 31 | 63 |
Term loan | |||
Debt Instrument [Line Items] | |||
Interest | 8,294 | 3,450 | 1,708 |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Interest | $ 3,106 | $ 163 | $ 342 |
Income taxes - Schedule of Comp
Income taxes - Schedule of Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 142,507 | $ 64,850 | $ 26,286 |
Foreign | (1,517) | (776) | (855) |
Income before provision for income taxes | $ 140,990 | $ 64,074 | $ 25,431 |
Income taxes - Schedule of Co_2
Income taxes - Schedule of Components of (Provision) Benefit for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Current: | |||
US federal | $ (12,505) | $ (7,065) | $ (5,637) |
State | (4,078) | (1,854) | (1,715) |
Foreign | (20) | (26) | (10) |
Total current | (16,603) | (8,945) | (7,362) |
Deferred: | |||
US federal | 2,130 | 5,035 | 3,146 |
State | 746 | 816 | 738 |
Foreign | 400 | 550 | (183) |
Total deferred | 3,276 | 6,401 | 3,701 |
Total (provision) benefit for income taxes | $ (13,327) | $ (2,544) | $ (3,661) |
Income taxes - Schedule of Reco
Income taxes - Schedule of Reconciliation of Federal Statutory Rate to Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
State tax, net of federal benefit | 1.80% | 1% | 2.60% |
State tax deferred rate change, net of federal benefit | 0% | 0% | (0.10%) |
Nondeductible business expenses | 0.40% | 0.60% | 0.40% |
Nondeductible employee compensation | 4.30% | 2.50% | 1.10% |
Provision-to-return adjustment | (0.20%) | (0.10%) | (0.30%) |
Uncertain tax positions | 0% | 0% | 0.10% |
Stock based compensation | (18.40%) | (20.30%) | (12.00%) |
Change in valuation allowance | 0.40% | (0.60%) | 1.50% |
Others | 0.20% | (0.10%) | 0.10% |
Effective tax rate | 9.50% | 4% | 14.40% |
Income taxes - Schedule of Co_3
Income taxes - Schedule of Components of Net Deferred Taxes (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Deferred tax assets: | ||
Compensation | $ 222,000 | $ 354,000 |
Inventory and receivables | 13,465,000 | 9,976,000 |
Accrued expenses | 3,782,000 | 2,734,000 |
Stock compensation | 7,349,000 | 8,247,000 |
Net operating losses | 1,188,000 | 571,000 |
Right of use liability | 5,026,000 | 3,782,000 |
Capitalized research and development | 2,051,000 | 858,000 |
Other | 1,792,000 | 774,000 |
Gross deferred tax assets | 34,875,000 | 27,296,000 |
Valuation allowance | (744,000) | 0 |
Net deferred tax assets | 34,131,000 | 27,296,000 |
Deferred tax liabilities: | ||
Goodwill | 3,546,000 | 5,180,000 |
Fixed assets and internally developed software | 5,746,000 | 2,451,000 |
Intangible assets | 21,326,000 | 19,107,000 |
Right of use asset | 4,801,000 | 3,359,000 |
Other | 557,000 | 378,000 |
Deferred tax liabilities | 35,976,000 | 30,475,000 |
Net deferred tax liabilities | $ 1,845,000 | $ 3,179,000 |
Income taxes - Schedule of Defe
Income taxes - Schedule of Deferred Tax Assets and Liabilities Within the Same Jurisdiction (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 1,821 | $ 563 |
Deferred tax liabilities | 3,666 | 3,742 |
Net deferred tax liabilities | $ 1,845 | $ 3,179 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 744,000 | $ 0 | |
Federal net operating loss carryforwards | 0 | ||
State net operating loss carryforwards | 900,000 | ||
Foreign net operating loss carryforwards | 4,600,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 400,000 | 400,000 | $ 500,000 |
Unrecognized tax benefits expected to reverse in next twelve months | 40,000 | ||
Accrued gross interest and penalties | 200,000 | 200,000 | |
Recognized net interest and penalties expense | $ (21,000) | $ 34,000 | $ 27,000 |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards period | 20 years | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards period | 5 years |
Income taxes - Schedule of Unre
Income taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 442 | $ 466 | $ 458 |
Increases for prior year tax positions | 0 | 0 | 0 |
Increases for current year tax positions | 108 | 92 | 75 |
Decreases for prior year tax positions | (19) | (10) | (6) |
Decreases due to settlements | 0 | 0 | (61) |
Decreases due to statutes lapsing | (98) | (106) | 0 |
Balance at end of year | $ 433 | $ 442 | $ 466 |
Preferred stock - Additional In
Preferred stock - Additional Information (Details) - $ / shares | Mar. 31, 2024 | Mar. 31, 2023 |
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 30,000,000 | |
Preferred stock, par value (in USD per share) | $ 0.01 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Stock based compensation - Addi
Stock based compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Service-based Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost | $ 100,000 | |||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 1 year 6 months | |||
Maximum contractual life | 10 years | |||
Expected dividend yield | 0% | |||
Performance-based and Market-based Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost | $ 0 | |||
RSA | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested shares outstanding (in shares) | 75,124 | |||
RSAs and RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 1 year 8 months 12 days | |||
Unvested shares outstanding (in shares) | 1,942,867 | 2,128,773 | 2,275,742 | 2,289,615 |
Unrecognized stock-based compensation cost | $ 78,100,000 | |||
2016 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 17,697,556 | |||
Shares available for grant (in shares) | 8,618,008 | |||
2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options and awards outstanding (in shares) | 64,525 |
Stock based compensation - Summ
Stock based compensation - Summary of Service-based Stock Option Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Weighted-average exercise price | |||
Closing stock price (in USD per share) | $ 196.03 | ||
Service-based Stock Options | |||
Options outstanding | |||
Beginning balance (in shares) | 1,024,490 | 1,543,499 | 1,640,981 |
Exercised (in shares) | (347,590) | (519,009) | (93,282) |
Canceled or forfeited (in shares) | (2,900) | (4,200) | |
Ending balance (in shares) | 674,000 | 1,024,490 | 1,543,499 |
Options outstanding, Exercisable (in shares) | 650,000 | ||
Weighted-average exercise price | |||
Beginning balance (in USD per share) | $ 16.17 | $ 15.05 | $ 14.86 |
Exercised (in USD per share) | 14.47 | 12.82 | 11.19 |
Canceled or forfeited (in USD per share) | 26.84 | 26.63 | |
Ending balance (in USD per share) | 17.01 | $ 16.17 | $ 15.05 |
Weighted-average exercise price, Exercisable (in USD per share) | $ 17.07 | ||
Weighted-average remaining contractual life (in years), Outstanding | 3 years 3 months 18 days | 4 years 1 month 6 days | 5 years 1 month 6 days |
Weighted-average remaining contractual life (in years), Exercisable | 3 years 2 months 12 days | ||
Aggregate intrinsic values, Outstanding | $ 120,660 | $ 67,796 | $ 16,686 |
Aggregate intrinsic values, Exercisable | $ 116,326 |
Stock based compensation - Su_2
Stock based compensation - Summary of Additional Information Relating to Service-based Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Service-based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 147 | $ 344 | $ 924 |
Intrinsic value of options exercised | 45,542 | 18,015 | 1,695 |
RSAs and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 40,478 | $ 28,773 | $ 18,722 |
Stock based compensation - Su_3
Stock based compensation - Summary of Performance-based and Market-based Stock Option Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Weighted-average exercise price | |||
Closing stock price (in USD per share) | $ 196.03 | ||
Performance-based and Market-based Stock Options | |||
Options outstanding | |||
Beginning balance (in shares) | 517,740 | 1,004,327 | 1,108,592 |
Exercised (in shares) | (256,440) | (460,787) | (104,265) |
Canceled or forfeited (in shares) | (25,800) | ||
Ending balance (in shares) | 261,300 | 517,740 | 1,004,327 |
Options outstanding, Exercisable (in shares) | 261,300 | ||
Weighted-average exercise price | |||
Beginning balance (in USD per share) | $ 14.46 | $ 9.40 | $ 8.72 |
Exercised (in USD per share) | 1.84 | 2.73 | 2.24 |
Canceled or forfeited (in USD per share) | 26.84 | ||
Ending balance (in USD per share) | 26.84 | $ 14.46 | $ 9.40 |
Weighted-average exercise price, Exercisable (in USD per share) | $ 26.84 | ||
Weighted-average remaining contractual life (in years), Outstanding | 2 years 10 months 24 days | 2 years 4 months 24 days | 3 years |
Aggregate intrinsic values, Outstanding | $ 44,209 | $ 35,151 | $ 16,809 |
Weighted-average remaining contractual life (in years), Exercisable | 2 years 10 months 24 days | ||
Aggregate intrinsic values, Exercisable | $ 44,209 |
Stock based compensation - Su_4
Stock based compensation - Summary of Additional Information Relating to Performance-based and Market-based Stock Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Performance-based and Market-based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 27,718 | $ 23,860 | $ 2,921 |
Stock based compensation - Su_5
Stock based compensation - Summary of Activities for Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") (Details) - RSAs and RSUs - $ / shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Shares of restricted stock outstanding | |||
Beginning balance (in shares) | 2,128,773 | 2,275,742 | 2,289,615 |
Granted (in shares) | 526,280 | 1,180,167 | 1,103,890 |
Vested (in shares) | (649,592) | (1,066,516) | (926,250) |
Canceled forfeited (in shares) | (62,594) | (260,620) | (191,513) |
Ending balance (in shares) | 1,942,867 | 2,128,773 | 2,275,742 |
Weighted-average grant date fair value | |||
Beginning balance (in USD per share) | $ 25.94 | $ 20.85 | $ 14.67 |
Granted (in USD per share) | 111.41 | 28.59 | 27.62 |
Vested (in USD per share) | 24.57 | 18.88 | 14.50 |
Canceled or forfeited (in USD per share) | 51.75 | 22.24 | 16.67 |
Ending balance (in USD per share) | $ 48.67 | $ 25.94 | $ 20.85 |
Stock based compensation - Ad_2
Stock based compensation - Additional Information Related to RSAs and RSUs (Details) - RSAs and RSUs - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 40,478 | $ 28,773 | $ 18,722 |
Intrinsic value of restricted stock released | 73,124 | 47,713 | 25,621 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | 16 | 112 | 311 |
Selling, general and administrative expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 40,462 | $ 28,661 | $ 18,411 |
Repurchase of common stock - Na
Repurchase of common stock - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2024 | May 08, 2019 | |
Equity [Abstract] | |||
Amount authorized under share repurchase program | $ 25,000,000 | ||
Repurchase of common stock (in shares) | 0 | 0 | |
Remaining authorized repurchase amount | $ 17,100,000 | $ 17,100,000 |
Employee benefit plan - Additio
Employee benefit plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, vest percentage | 100% | ||
Company contributions to 401 (k) plan | $ 0.7 | $ 0.5 | $ 0.4 |
Net income per share - Reconcil
Net income per share - Reconciliation of Numerator and Denominator in Basic and Diluted Net Income Per Common Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | |||||||||||||||
Net income | $ 14,527 | $ 26,888 | $ 33,271 | $ 52,977 | $ 16,246 | $ 19,105 | $ 11,710 | $ 14,469 | $ 1,556 | $ 6,214 | $ 5,724 | $ 8,276 | $ 127,663 | $ 61,530 | $ 21,770 |
Denominator: | |||||||||||||||
Weighted average common shares outstanding - basic (in shares) | 54,747,930 | 52,474,811 | 50,940,808 | ||||||||||||
Dilutive common equivalent shares from equity awards (in shares) | 3,040,524 | 2,862,743 | 2,713,495 | ||||||||||||
Weighted average common shares outstanding - diluted (in shares) | 57,788,454 | 55,337,554 | 53,654,303 | ||||||||||||
Net income per share: | |||||||||||||||
Basic (in USD per share) | $ 0.26 | $ 0.49 | $ 0.61 | $ 0.98 | $ 0.31 | $ 0.36 | $ 0.22 | $ 0.28 | $ 0.03 | $ 0.12 | $ 0.11 | $ 0.16 | $ 2.33 | $ 1.17 | $ 0.43 |
Diluted (in USD per share) | $ 0.25 | $ 0.46 | $ 0.58 | $ 0.93 | $ 0.29 | $ 0.34 | $ 0.21 | $ 0.27 | $ 0.03 | $ 0.12 | $ 0.11 | $ 0.15 | $ 2.21 | $ 1.11 | $ 0.41 |
Anti-dilutive securities excluded from diluted EPS: | |||||||||||||||
Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share (in shares) | 44,772 | 194,289 | 20,314 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 USD ($) renewal_option | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Leases [Abstract] | |||
Number of options to renew | renewal_option | 1 | ||
Lessee operating lease, option to extend | 5 years | ||
Operating cash flows from operating leases | $ | $ 6 | $ 4.9 | $ 5.1 |
Leases - Balance Sheet Line Ite
Leases - Balance Sheet Line Items (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Assets | ||
Operating lease assets | $ 27,415 | $ 14,071 |
Finance lease assets | 0 | 245 |
Total leased assets | 27,415 | 14,316 |
Current | ||
Operating | 7,016 | 4,510 |
Finance | 57 | 575 |
Noncurrent | ||
Operating | 21,459 | 11,201 |
Finance | 0 | 58 |
Total lease liabilities | $ 28,532 | $ 16,344 |
Operating lease, right-of-use asset, statement of financial position [Extensible List] | Other assets | Other assets |
Finance lease, right-of-use asset, statement of financial position [Extensible List] | Other assets | Other assets |
Operating lease, liability, current, statement of financial position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Finance lease, liability, current, statement of financial position [Extensible List] | Current portion of long-term debt and finance lease obligations | Current portion of long-term debt and finance lease obligations |
Finance lease, liability, noncurrent, statement of financial position [Extensible List] | Long-term portion of debt | Long-term portion of debt |
Finance lease accumulated amortization | $ (1,500) | $ (3,400) |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | |||
Operating lease cost | $ 7,341 | $ 4,638 | $ 4,686 |
Finance lease cost | |||
Amortization of leased assets | 210 | 420 | 436 |
Interest on lease liabilities | 10 | 31 | 63 |
Total lease cost | $ 7,561 | $ 5,089 | $ 5,185 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Operating leases | ||
2025 | $ 8,332 | |
2026 | 8,898 | |
2027 | 5,537 | |
2028 | 2,419 | |
2029 | 1,956 | |
Thereafter | 5,417 | |
Total lease payments | 32,559 | |
Less: Interest | 4,084 | |
Present value of lease liabilities | 28,475 | |
Finance leases | ||
2025 | 57 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
2029 | 0 | |
Thereafter | 0 | |
Total lease payments | 57 | |
Less: Interest | 0 | |
Finance lease obligations | 57 | $ 633 |
Total | ||
2025 | 8,389 | |
2026 | 8,898 | |
2027 | 5,537 | |
2028 | 2,419 | |
2029 | 1,956 | |
Thereafter | 5,417 | |
Total lease payments | 32,616 | |
Less: Interest | 4,084 | |
Present value of lease liabilities | $ 28,532 | $ 16,344 |
Leases - Weighted Average Assum
Leases - Weighted Average Assumptions (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Weighted-average remaining lease term | ||
Operating leases | 4 years 9 months 18 days | 4 years 7 months 6 days |
Finance leases | 2 months 12 days | 10 months 24 days |
Weighted-average discount rate | ||
Operating leases | 5.10% | 2.60% |
Finance leases | 1.60% | 2.60% |
Quarterly financial summary (_3
Quarterly financial summary (unaudited) - Schedule of Unaudited Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net sales | $ 321,143 | $ 270,943 | $ 215,507 | $ 216,339 | $ 187,357 | $ 146,537 | $ 122,349 | $ 122,601 | $ 105,135 | $ 98,118 | $ 91,855 | $ 97,047 | $ 1,023,932 | $ 578,844 | $ 392,155 |
Gross profit | 227,202 | 191,957 | 152,365 | 152,572 | 129,126 | 98,725 | 79,560 | 82,985 | 67,500 | 64,341 | 57,985 | 61,906 | 724,096 | 390,396 | 251,732 |
Net income | $ 14,527 | $ 26,888 | $ 33,271 | $ 52,977 | $ 16,246 | $ 19,105 | $ 11,710 | $ 14,469 | $ 1,556 | $ 6,214 | $ 5,724 | $ 8,276 | $ 127,663 | $ 61,530 | $ 21,770 |
Net income per share: | |||||||||||||||
Basic (in USD per share) | $ 0.26 | $ 0.49 | $ 0.61 | $ 0.98 | $ 0.31 | $ 0.36 | $ 0.22 | $ 0.28 | $ 0.03 | $ 0.12 | $ 0.11 | $ 0.16 | $ 2.33 | $ 1.17 | $ 0.43 |
Diluted (in USD per share) | $ 0.25 | $ 0.46 | $ 0.58 | $ 0.93 | $ 0.29 | $ 0.34 | $ 0.21 | $ 0.27 | $ 0.03 | $ 0.12 | $ 0.11 | $ 0.15 | $ 2.21 | $ 1.11 | $ 0.41 |