The following tables summarize the Company's net revenues, disaggregated by product category and distribution channels:
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| | Year Ended March 31, |
| 2026 | | 2025 | | 2024 |
| Net revenues by product category: | | | | | |
| Apparel | $ | 3,395,053 | | | $ | 3,451,414 | | | $ | 3,789,016 | |
| Footwear | 1,076,383 | | | 1,206,202 | | | 1,383,610 | |
| Accessories | 414,466 | | | 410,860 | | | 405,715 | |
| Net Sales | 4,885,902 | | | 5,068,476 | | | 5,578,341 | |
| License revenues | 107,353 | | | 94,590 | | | 111,241 | |
| Corporate Other | (26,885) | | | 1,244 | | | 12,297 | |
| Total net revenues | $ | 4,966,370 | | | $ | 5,164,310 | | | $ | 5,701,879 | |
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| | | |
| | | | | |
| Net revenues by distribution channel: | | | | | |
| Wholesale | $ | 2,831,787 | | | $ | 2,978,869 | | | $ | 3,243,187 | |
| Direct-to-consumer | 2,054,115 | | | 2,089,607 | | | 2,335,154 | |
| Net Sales | 4,885,902 | | | 5,068,476 | | | 5,578,341 | |
| License revenues | 107,353 | | | 94,590 | | | 111,241 | |
| Corporate Other | (26,885) | | | 1,244 | | | 12,297 | |
| Total net revenues | $ | 4,966,370 | | | $ | 5,164,310 | | | $ | 5,701,879 | |
In accordance with ASC Topic 606 "Revenue from Contracts with Customers", the Company recognizes revenue when it satisfies its performance obligations by transferring control of promised products or services to its customers, which occurs either at a point in time or over time, depending on when the customer obtains the ability to direct the use of and obtain substantially all of the remaining benefits from the products or services.
The Company records reductions to revenue for estimated customer returns, allowances, markdowns and discounts. These reserves are included within customer refund liability and the value of the inventory associated with reserves for sales returns are included within prepaid expenses and other current assets on the Consolidated Balance Sheets. The following table presents the customer refund liability, as well as the associated value of inventory for the periods indicated:
| | | | | | | | | | | |
| March 31, 2026 | | March 31, 2025 |
| Customer refund liability | $ | 126,097 | | | $ | 146,021 | |
| Inventory associated with reserves for sales returns | $ | 28,537 | | | $ | 33,609 | |
Contract Liabilities
Contract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer, and thus represent the Company's obligation to transfer the good or service to the customer at a future date. The Company's contract liabilities primarily consist of (i) gift cards, which are included in accrued expenses on the Company's
Consolidated Balance Sheets, and (ii) points associated with the loyalty programs and payments received in advance of revenue recognition for royalty arrangements, which are included in other current liabilities on the Company's Consolidated Balance Sheets.
The following table summarizes the change in the contract liabilities balance during the periods presented, which primarily results from the timing differences between the Company's satisfaction of performance obligations and the customer's payment.
| | | | | |
| Total Contract Liabilities |
| Balance as of March 31, 2024 | $ | 26,322 | |
| Revenues deferred | 69,176 | |
Revenues recognized (1)(3) | (58,971) | |
| Foreign exchange and other | (2,185) | |
| Balance as of March 31, 2025 | $ | 34,342 | |
| Revenues deferred | 77,450 | |
Revenues recognized (2)(3) | (82,114) | |
| Foreign exchange and other | (930) | |
| Balance as of March 31, 2026 | $ | 28,748 | |
(1) Includes approximately $8.3 million of revenue from gift cards, including breakage, and subscription revenues that were previously included in contract liabilities as of March 31, 2024.
(2) Includes approximately $13.4 million of revenue from gift cards, including breakage, that were previously included in contract liabilities as of March 31, 2025.
(3) Loyalty points are not separately identifiable and therefore revenues recognized from the redemption of loyalty points consists of both points that were included in the liability balance at the beginning of the period and those that were issued during the period.