Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2023 | May 18, 2023 | Sep. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2023 | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.3 | ||
Entity Common Stock, Shares Outstanding | 53,867,072 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the registrant’s 2023 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, 2023. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001600033 |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2023 | |
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, 2023 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 120,778 | $ 43,353 |
Accounts receivable, net | 67,928 | 45,567 |
Inventory, net | 81,323 | 84,498 |
Prepaid expenses and other current assets | 33,296 | 19,611 |
Total current assets | 303,325 | 193,029 |
Property and equipment, net | 7,874 | 10,577 |
Intangible assets, net | 78,041 | 86,163 |
Goodwill | 171,620 | 171,620 |
Investments | 2,875 | 2,875 |
Other assets | 31,866 | 30,368 |
Total assets | 595,601 | 494,632 |
Current liabilities: | ||
Current portion of long-term debt and finance lease obligations | 5,575 | 5,786 |
Accounts payable | 31,427 | 19,227 |
Accrued expenses and other current liabilities | 70,974 | 40,004 |
Total current liabilities | 107,976 | 65,017 |
Long-term debt and finance lease obligations | 60,881 | 91,080 |
Deferred tax liabilities | 3,742 | 9,593 |
Long-term operating lease obligations | 11,201 | 15,744 |
Other long-term liabilities | 784 | 769 |
Total liabilities | 184,584 | 182,203 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of March 31, 2023 and March 31, 2022; 53,770,482 and 52,243,764 shares issued and outstanding as of March 31, 2023 and March 31, 2022, respectively | 535 | 515 |
Additional paid-in capital | 832,481 | 795,443 |
Accumulated deficit | (421,999) | (483,529) |
Total stockholders' equity | 411,017 | 312,429 |
Total liabilities and stockholders' equity | $ 595,601 | $ 494,632 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
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) | 53,770,482 | 52,243,764 |
Common stock, shares outstanding (in shares) | 53,770,482 | 52,243,764 |
Consolidated statements of oper
Consolidated statements of operations and comprehensive income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 578,844 | $ 392,155 | $ 318,110 |
Cost of sales | 188,448 | 140,423 | 111,912 |
Gross profit | 390,396 | 251,732 | 206,198 |
Selling, general and administrative expenses | 322,253 | 221,912 | 194,157 |
Restructuring expense | 0 | 50 | 2,641 |
Operating income | 68,143 | 29,770 | 9,400 |
Other expense, net | (1,875) | (1,438) | (1,620) |
Interest expense, net | (2,018) | (2,441) | (4,090) |
Loss on extinguishment of debt | (176) | (460) | 0 |
Income before provision for income taxes | 64,074 | 25,431 | 3,690 |
Income tax (provision) benefit | (2,544) | (3,661) | 2,542 |
Net income | 61,530 | 21,770 | 6,232 |
Comprehensive income | $ 61,530 | $ 21,770 | $ 6,232 |
Net income per share: | |||
Basic (in USD per share) | $ 1.17 | $ 0.43 | $ 0.13 |
Diluted (in USD per share) | $ 1.11 | $ 0.41 | $ 0.12 |
Weighted average shares outstanding: | |||
Basic (in shares) | 52,474,811 | 50,940,808 | 49,377,410 |
Diluted (in shares) | 55,337,554 | 53,654,303 | 51,994,145 |
Consolidated statements of stoc
Consolidated statements of stockholders' equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated deficit |
Beginning balance (in shares) at Mar. 31, 2020 | 48,874,742 | |||
Beginning balance at Mar. 31, 2020 | $ 242,171 | $ 489 | $ 753,213 | $ (511,531) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 6,232 | 6,232 | ||
Stock based compensation | 19,493 | 19,493 | ||
Exercise of stock options and vesting of restricted stock (in shares) | 1,525,768 | |||
Exercise of stock options and vesting of restricted stock | 1,750 | $ 15 | 1,735 | |
Ending balance (in shares) at Mar. 31, 2021 | 50,400,510 | |||
Ending balance at Mar. 31, 2021 | 269,646 | $ 504 | 774,441 | (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 | |
Ending balance (in shares) at Mar. 31, 2022 | 51,524,307 | |||
Ending balance at Mar. 31, 2022 | 312,429 | $ 515 | 795,443 | (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 | |
Ending balance (in shares) at Mar. 31, 2023 | 53,571,577 | |||
Ending balance at Mar. 31, 2023 | $ 411,017 | $ 535 | $ 832,481 | $ (421,999) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 61,530 | $ 21,770 | $ 6,232 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22,164 | 27,083 | 25,179 |
Restructuring expense | 0 | 50 | 2,641 |
Stock based compensation expense | 29,117 | 19,646 | 19,682 |
Amortization of debt issuance costs and discount on debt | 346 | 394 | 847 |
Deferred income taxes | (6,401) | (3,701) | (8,584) |
Loss on extinguishment of debt | 176 | 460 | 0 |
Other, net | 179 | 496 | 383 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (22,432) | (5,597) | (10,529) |
Inventory | 3,174 | (27,655) | (10,937) |
Prepaid expenses and other assets | (24,553) | (10,555) | (9,659) |
Accounts payable and accrued expenses | 42,995 | 1,498 | 17,472 |
Other liabilities | (4,412) | (4,376) | (3,252) |
Net cash provided by operating activities | 101,883 | 19,513 | 29,475 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (1,723) | (4,818) | (6,474) |
Net cash used in investing activities | (1,723) | (4,818) | (6,474) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit | 0 | 26,480 | 20,000 |
Repayment of revolving line of credit | 0 | (26,480) | (20,000) |
Proceeds from long-term debt | 0 | 25,581 | 0 |
Repayment of long-term debt | (30,000) | (54,525) | (11,756) |
Debt issuance costs paid | 0 | (1,064) | (334) |
Cash received from issuance of common stock | 8,053 | 1,677 | 1,503 |
Other, net | (788) | (779) | (813) |
Net cash used in financing activities | (22,735) | (29,110) | (11,400) |
Net increase (decrease) in cash and cash equivalents | 77,425 | (14,415) | 11,601 |
Cash and cash equivalents - beginning of period | 43,353 | 57,768 | 46,167 |
Cash and cash equivalents - end of period | 120,778 | 43,353 | 57,768 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 3,546 | 1,762 | 3,018 |
Cash paid for income taxes, net of refunds | 13,369 | 7,573 | 2,301 |
Cash paid for interest on finance leases | 32 | 63 | 137 |
Supplemental disclosure of noncash investing and financing activities: | |||
Property and equipment purchases included in accounts payable and accrued expenses | $ 335 | $ 390 | $ 359 |
Nature of operations
Nature of operations | 12 Months Ended |
Mar. 31, 2023 | |
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,” or “we”) is a multi-brand beauty company that offers inclusive, accessible, clean, vegan and cruelty-free cosmetics and skincare 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, 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, 2023 | |
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 $0.1 million and $0.1 million as of March 31, 2023 and March 31, 2022, respectively. The Company recorded a reserve for sales adjustments of $23.5 million and $16.3 million as of March 31, 2023 and March 31, 2022, 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 years ended March 31, 2023, March 31, 2022 and March 31, 2021, the following customers individually accounted for greater than 10% of the Company’s net sales as disclosed below: Year ended March 31, 2023 2022 2021 Target 25 % 23 % 22 % Walmart 20 % 26 % 26 % Ulta Beauty 15 % 12 % * * Net sales from customer comprised less than 10% of net sales in the period indicated. Customers that individually accounted for greater than 10% of the Company’s accounts receivable at the end of the periods as of March 31, 2023 and March 31, 2022, respectively, are as presented : March 31, 2023 March 31, 2022 Target 32 % 18 % Walmart 26 % 31 % 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 $6.6 million and $4.5 million as of March 31, 2023 and March 31, 2022, 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 Machinery, equipment and software 3 - 5 years Leasehold improvements up to 5 years Furniture and fixtures 2 - 5 years Store fixtures 1 - 3 years As of March 31, 2023 and March 31, 2022, included in other assets are retail product displays, net, of $15.7 million and $10.1 million, respectively, that are generally amortized over a period of three years. Amortization expense for retail product displays was $5.2 million, $5.9 million and $5.2 million for the years ended March 31, 2023, March 31, 2022 and March 31, 2021, 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 years ended March 31, 2023, March 31, 2022 and March 31, 2021, 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 10 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. 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 7 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 years ended March 31, 2023, March 31, 2022 and March 31, 2021, net sales in the United States and International were as follows (in thousands): Year ended March 31, 2023 2022 2021 United States $ 506,759 $ 347,484 $ 282,273 International 72,085 44,671 35,837 Total net sales $ 578,844 $ 392,155 $ 318,110 As of March 31, 2023 and March 31, 2022, the Company had property and equipment in the United States and International as follows (in thousands) : March 31, 2023 March 31, 2022 United States $ 7,606 $ 10,363 International 268 214 Total property and equipment, net $ 7,874 $ 10,577 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 and control transfers at the time of shipment or the time of delivery, depending upon the specific terms of the customer arrangement. For the Company's direct-to-consumer transactions, a contract exists when an order is placed online and control transfers at the time of delivery of merchandise to the consumer. 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, 2023, 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 years ended March 31, 2023, March 31, 2022 and March 31, 2021 is as follows (in thousands): Balance as of March 31, 2020 $ 7,613 Charges 41,027 Deductions (36,727) 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 In the years ended March 31, 2023, March 31, 2022 and March 31, 2021, the Company recorded $1.6 million, $0.7 million and $0.8 million, respectively, of reimbursed shipping expenses from customers within revenues. The shipping and handling costs associated with product distribution were $36.9 million, $28.0 million and $26.4 million, in the years ended March 31, 2023, March 31, 2022 and March 31, 2021, 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 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. 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. Stock based compensation The Company has several stock award plans, which are described in detail in Note 12. 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 $96.7 million, $41.0 million and $30.3 million in the years ended March 31, 2023, March 31, 2022 and March 31, 2021, 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. |
Investment in equity securities
Investment in equity securities | 12 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Investment in equity securities | Investment in equity securitiesOn April 14, 2017, the Company invested $2.9 million in a social media analytics company, which is included in investments 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 did not record an impairment charge on its investment during the years ended March 31, 2023, March 31, 2022 and March 31, 2021, respectively, as any identified events or changes in circumstances did not result in an indicator for impairment. Further, there were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer during the years ended March 31, 2023, March 31, 2022 and March 31, 2021, respectively. |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Mar. 31, 2023 | |
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, 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 Information regarding the Company’s goodwill and intangible assets as of March 31, 2022 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (58,020) $ 19,580 Customer relationships – e-commerce 3 years 3,940 (3,928) 12 Trademarks 10 years 3,500 (729) 2,771 Total finite-lived intangibles 85,040 (62,677) 22,363 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (62,677) $ 257,783 The Company has not recognized any impairment charges on its goodwill or intangible assets. Amortization expense on the finite-lived intangible assets was $8.1 million for each of the years ended March 31, 2023, March 31, 2022 and March 31, 2021. The estimated future amortization expense related to the finite-lived intangible assets, assuming no impairment as of March 31, 2023, is as follows (in thousands): The year ended March 31, 2024 $ 6,963 2025 1,230 2026 1,230 2027 1,230 2028 1,230 Thereafter 2,358 Total $ 14,241 |
Property and equipment
Property and equipment | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment Property and equipment as of March 31, 2023 and March 31, 2022 consists of the following (in thousands): March 31, 2023 March 31, 2022 Machinery, equipment and software $ 15,148 $ 15,757 Leasehold improvements 4,677 4,670 Furniture and fixtures 1,263 1,032 Store fixtures 10,782 13,619 Property and equipment, gross 31,870 35,078 Less: Accumulated depreciation and amortization (23,996) (24,501) Property and equipment, net $ 7,874 $ 10,577 Depreciation and amortization expense on property and equipment was $4.3 million, $7.9 million and $6.7 million during the years ended March 31, 2023, March 31, 2022 and March 31, 2021, respectively. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Mar. 31, 2023 | |
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, 2023 and March 31, 2022 consists of the following (in thousands): March 31, 2023 March 31, 2022 Accrued expenses $ 47,817 $ 19,938 Current portion of operating lease liabilities 4,510 4,391 Accrued compensation 13,098 11,532 Taxes payable 2,851 2,128 Other current liabilities 2,698 2,015 Accrued expenses and other current liabilities $ 70,974 $ 40,004 |
Fair value of financial instrum
Fair value of financial instruments | 12 Months Ended |
Mar. 31, 2023 | |
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, 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, $5,575 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, 2022 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 97,669 $ — $ 97,669 $ — Total financial liabilities $ 97,669 $ — $ 97,669 $ — __________________________ (1) Of this amount, $5,786 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, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt as of March 31, 2023 and March 31, 2022 consists of the following (in thousands): March 31, 2023 March 31, 2022 Debt: Term loan $ 66,250 $ 96,250 Finance lease obligations 633 1,419 Total debt 66,883 97,669 Less: debt issuance costs (427) (803) Total debt, net of issuance costs 66,456 96,866 Less: current portion (5,575) (5,786) Long-term portion of debt $ 60,881 $ 91,080 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 our assets and requires payment of an unused fee ranging from 0.10% to 0.30% (based on our 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, 2023 was $100.0 million. Prior to the First 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. The all-in interest rate as of March 31, 2023 for the Amended Term Loan Facility was approximately 6.2%. 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 Amended Credit Agreement contains a number of covenants that, among other things, restrict our ability to (subject to certain exceptions) pay dividends and distributions or repurchase our 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 us to, among other things, comply with certain consolidated total net leverage ratios and consolidated fixed charge coverage ratios. 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 year ended March 31, 2022. The Company incurred and capitalized $1.1 million of new debt issuance costs related to the amendment. In the year ended March 31, 2023, the Company recognized a loss on extinguishment of debt of $176 thousand, primarily related to the partial prepayment of term loan borrowings in the amount of $25.0 million. Aggregate future minimum principal payments are as follows (in thousands): The year ended March 31, Term Loan 2024 $ 5,000 2025 5,000 2026 5,000 2027 51,250 Total $ 66,250 Interest expense The components of interest expense, net are as follows (in thousands) : Year ended March 31, 2023 2022 2021 Interest on term loan debt $ 3,450 $ 1,708 $ 2,912 Amortization of debt issuance costs 346 331 847 Interest on revolving line of credit 163 342 199 Interest on finance leases 31 63 137 Interest income (1,972) (3) (5) Interest expense, net $ 2,018 $ 2,441 $ 4,090 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Mar. 31, 2023 | |
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, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The components of income (loss) before the provision for income taxes are as follows (in thousands): Year ended March 31, 2023 2022 2021 Domestic $ 64,850 $ 26,286 $ 3,715 Foreign (776) (855) (25) Total $ 64,074 $ 25,431 $ 3,690 The components of the benefit (provision) for income taxes are as follows (in thousands): Year ended March 31, 2023 2022 2021 Current: US federal $ (7,065) $ (5,637) $ (4,772) State (1,854) (1,715) (1,186) Foreign (26) (10) (84) Total current (8,945) (7,362) (6,042) Deferred: US federal 5,035 3,146 7,159 State 816 738 1,293 Foreign 550 (183) 132 Total deferred 6,401 3,701 8,584 Total (provision) benefit for income taxes $ (2,544) $ (3,661) $ 2,542 The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate : Year ended March 31, 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit 1.0 % 2.6 % (10.6) % State tax deferred rate change, net of federal benefit — % (0.1) % (1.6) % Nondeductible business expenses 0.6 % 0.4 % 2.1 % Nondeductible employee compensation 2.5 % 1.1 % 9.1 % Provision-to-return adjustment (0.1) % (0.3) % 1.5 % Uncertain tax positions — % 0.1 % 1.0 % Stock based compensation (20.3) % (12.0) % (90.7) % Change in valuation allowance (0.6) % 1.5 % — % Others (0.1) % 0.1 % (0.7) % Effective tax rate 4.0 % 14.4 % (68.9) % The components of net deferred taxes arising from temporary differences are as follows (in thousands): March 31, 2023 March 31, 2022 Deferred tax assets: Compensation $ 354 $ 489 Inventory and receivables 9,976 7,939 Accrued expenses 2,734 2,225 Stock compensation 8,247 7,567 Net operating losses 571 426 Right of use liability 3,782 4,763 Capitalized research and development 858 — Other 774 874 Gross deferred tax assets 27,296 24,283 Valuation allowance — (370) Net deferred tax assets 27,296 23,913 Deferred tax liabilities: Goodwill 5,180 3,084 Fixed assets and internally developed software 2,451 2,894 Intangible assets 19,107 22,740 Right of use asset 3,359 4,294 Other 378 494 Deferred tax liabilities 30,475 33,506 Net deferred tax liabilities $ 3,179 $ 9,593 The deferred tax assets and liabilities are reported in the accompanying balance sheets as follows (in thousands) : March 31, 2023 March 31, 2022 Deferred tax assets $ 563 $ — Deferred tax liabilities 3,742 9,593 Net deferred tax liabilities $ 3,179 $ 9,593 The valuation allowance was zero and $0.4 million as of March 31, 2023 and March 31, 2022, respectively, primarily relating to foreign net operating loss carryforwards for which we do not believe a tax benefit is more likely than not to be realized. As of March 31, 2023, the Company had gross federal, state and foreign net operating loss carryforwards of zero, $0.8 million and $2.1 million, respectively. The federal and state net operating loss carryforwards can either be carried forward 20 years or indefinitely. The federal and state net operating loss carryforwards will begin to expire in 2038. The foreign net operating loss carryforwards have a carryforward period of 5 years and will begin to expire in 2026. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Year ended March 31, 2023 2022 2021 Balance at beginning of year $ 466 $ 458 $ 477 Increases for prior year tax positions — — 6 Increases for current year tax positions 92 75 65 Decreases for prior year tax positions (10) (6) — Decreases due to settlements — (61) (27) Decreases due to statutes lapsing (106) — (63) Balance at end of year $ 442 $ 466 $ 458 If all of the Company’s unrecognized tax benefits as of March 31, 2023, March 31, 2022 and March 31, 2021 were recognized, $0.4 million, $0.5 million and $0.5 million, respectively, of unrecognized tax benefits, would impact the effective tax rate. The Company believes it is reasonably possible that $0.1 million 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 had $0.2 million and $0.2 million of accrued gross interest and penalties as of March 31, 2023 and March 31, 2022, respectively. The Company recognized net interest and penalties expense of $34 thousand, $27 thousand and $29 thousand for the years ended March 31, 2023, March 31, 2022 and March 31, 2021, respectively. The Company files income tax returns in the US federal jurisdiction and various state and foreign jurisdictions. As of March 31, 2023, with few exceptions, the Company or its subsidiaries are no longer subject to examination prior to tax year ended March 31, 2019. |
Preferred stock
Preferred stock | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Preferred stock | Preferred stockThe 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, 2023 or March 31, 2022. |
Stock based compensation
Stock based compensation | 12 Months Ended |
Mar. 31, 2023 | |
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. In the year ended March 31, 2023, no stock options were issued. As of March 31, 2023, a total of 16,589,312 shares have been authorized for issuance under the 2016 Plan, and 7,969,487 remain available for grant. As of March 31, 2023, there were 368,915 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, 2020 1,999,553 13.17 Exercised (337,376) 4.36 Canceled or forfeited (21,196) 23.24 Balance as of March 31, 2021 1,640,981 14.86 6.1 $ 19,650 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 Exercisable, March 31, 2023 952,850 $ 16.30 4.0 $ 62,939 (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 $82.35, as reported on the New York Stock Exchange on March 31, 2023. Additional information relating to service-based options is as follows (in thousands, except per share data): Year ended March 31, 2023 2022 2021 Stock based compensation expense $ 344 $ 924 $ 1,671 Intrinsic value of options exercised 18,015 1,695 5,620 As of March 31, 2023, there was $0.3 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 1.4 years. No service-based stock options were granted during the years ended March 31, 2023, March 31, 2022 and March 31, 2021. 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, 2020 1,252,932 7.97 Exercised (144,340) 1.89 Balance as of March 31, 2021 1,108,592 8.72 4.0 $ 20,077 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 Exercisable, March 31, 2023 517,740 14.46 2.4 $ 35,151 (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 $82.35, as reported on the New York Stock Exchange on March 31, 2023. As of March 31, 2023, 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): Year ended March 31, 2023 2022 2021 Intrinsic value of options exercised 23,860 2,921 $ 3,117 Restricted stock The following table summarizes the activities for restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) as follows: Shares of restricted stock outstanding Weighted-average grant date fair value Balance as of March 31, 2020 2,311,768 12.86 Granted 1,206,870 17.45 Vested (1,044,052) 13.97 Canceled or forfeited (184,971) 14.19 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 As of March 31, 2023, there were 198,905 unvested shares subject to RSAs outstanding. Additional information relating to RSAs and RSUs is as follows (in thousands): Year ended March 31, 2023 2022 2021 Stock based compensation expense $ 28,773 $ 18,722 $ 18,012 Intrinsic value of restricted stock released $ 47,713 $ 25,621 $ 24,328 As of March 31, 2023, there was $46.5 million of total unrecognized compensation cost related to unvested RSAs and RSUs, which is expected to be recognized over the remaining weighted-average vesting period of 2.2 years. Stock based compensation expense related to restricted stock for the year ended March 31, 2023 of $0.1 million and $28.7 million were reported in cost of sales and selling, general and administrative expense in the Company’s consolidated statements of operations and comprehensive income, respectively. Stock based compensation expense related to restricted stock for the year ended March 31, 2022 of $0.3 million and $18.4 million were reported in cost of sales and selling, general and administrative expense in the Company’s consolidated statements of operations and comprehensive income, respectively. Stock based compensation expense related to restricted stock for the year ended March 31, 2021 of $0.2 million and $17.8 million were reported in cost of sales and selling, general and administrative expense in the Company’s consolidated statements of operations and comprehensive income, respectively. |
Repurchase of common stock
Repurchase of common stock | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Repurchase of common stock | Repurchase of common stockOn 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 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. On April 30, 2021, the Company amended and restated its prior credit agreement. Subject to certain exceptions, 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, 2023. A total of $17.1 million remains available for purchase under the Share Repurchase Program as of March 31, 2023. |
Employee benefit plan
Employee benefit plan | 12 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee benefit plan | Employee benefit planThe 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 $0.5 million, $0.4 million and $0.3 million to the 401(k) Plan during the years ended March 31, 2023, March 31, 2022 and March 31, 2021, respectively. |
Net income per share
Net income per share | 12 Months Ended |
Mar. 31, 2023 | |
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): Year ended March 31, 2023 2022 2021 Numerator: Net income $ 61,530 $ 21,770 $ 6,232 Denominator: Weighted average common shares outstanding — basic 52,474,811 50,940,808 49,377,410 Dilutive common equivalent shares from equity awards 2,862,743 2,713,495 2,616,735 Weighted average common shares outstanding —diluted 55,337,554 53,654,303 51,994,145 Net income per share: Basic $ 1.17 $ 0.43 $ 0.13 Diluted $ 1.11 $ 0.41 $ 0.12 Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 194,289 20,314 1,038,810 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2023 | |
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 centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The discount rate used in measuring lease liabilities is generally based on the interest rate on the Company’s revolving line of credit, assuming sufficient unused capacity exists at the time the lease liability is measured. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company’s adoption of ASC 842 as of March 31, 2023 and March 31, 2022 is as follows (in thousands): Classification March 31, 2023 March 31, 2022 Assets Operating lease assets Other assets $ 14,071 $ 18,218 Finance lease assets (a) Other assets 245 664 Total leased assets $ 14,316 $ 18,882 Liabilities Current Operating Accrued expenses and other current liabilities $ 4,510 $ 4,391 Finance Current portion of long-term debt and finance lease obligations 575 786 Noncurrent Operating Long-term operating lease obligations 11,201 15,744 Finance Long-term debt and finance lease obligations 58 633 Total lease liabilities $ 16,344 $ 21,554 ___________________ (a) Finance leases are recorded net of accumulated amortization of $3.4 million and $3.0 million as of March 31, 2023 and March 31, 2022, respectively. For the years ended March 31, 2023, March 31, 2022 and March 31, 2021, the components of operating and finance lease costs were as follows (in thousands): Year ended March 31, Classification 2023 2022 2021 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 4,638 $ 4,686 $ 4,756 Finance lease cost Amortization of leased assets SG&A expenses 420 436 970 Interest on lease liabilities Interest expense, net 31 63 137 Total lease cost $ 5,089 $ 5,185 $ 5,863 As of March 31, 2023, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total 2024 $ 4,851 $ 582 $ 5,433 2025 4,071 58 4,129 2026 3,097 — 3,097 2027 1,441 — 1,441 2028 846 — 846 Thereafter 2,374 — 2,374 Total lease payments 16,680 640 17,320 Less: Interest 969 7 976 Present value of lease liabilities $ 15,711 $ 633 $ 16,344 As of March 31, 2023 and March 31, 2022, the weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2023 March 31, 2022 Weighted-average remaining lease term Operating leases 4.6 years 5.2 years Finance leases 0.9 years 1.9 years Weighted-average discount rate Operating leases 2.6 % 2.7 % Finance leases 2.6 % 3.0 % |
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 centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The discount rate used in measuring lease liabilities is generally based on the interest rate on the Company’s revolving line of credit, assuming sufficient unused capacity exists at the time the lease liability is measured. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company’s adoption of ASC 842 as of March 31, 2023 and March 31, 2022 is as follows (in thousands): Classification March 31, 2023 March 31, 2022 Assets Operating lease assets Other assets $ 14,071 $ 18,218 Finance lease assets (a) Other assets 245 664 Total leased assets $ 14,316 $ 18,882 Liabilities Current Operating Accrued expenses and other current liabilities $ 4,510 $ 4,391 Finance Current portion of long-term debt and finance lease obligations 575 786 Noncurrent Operating Long-term operating lease obligations 11,201 15,744 Finance Long-term debt and finance lease obligations 58 633 Total lease liabilities $ 16,344 $ 21,554 ___________________ (a) Finance leases are recorded net of accumulated amortization of $3.4 million and $3.0 million as of March 31, 2023 and March 31, 2022, respectively. For the years ended March 31, 2023, March 31, 2022 and March 31, 2021, the components of operating and finance lease costs were as follows (in thousands): Year ended March 31, Classification 2023 2022 2021 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 4,638 $ 4,686 $ 4,756 Finance lease cost Amortization of leased assets SG&A expenses 420 436 970 Interest on lease liabilities Interest expense, net 31 63 137 Total lease cost $ 5,089 $ 5,185 $ 5,863 As of March 31, 2023, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total 2024 $ 4,851 $ 582 $ 5,433 2025 4,071 58 4,129 2026 3,097 — 3,097 2027 1,441 — 1,441 2028 846 — 846 Thereafter 2,374 — 2,374 Total lease payments 16,680 640 17,320 Less: Interest 969 7 976 Present value of lease liabilities $ 15,711 $ 633 $ 16,344 As of March 31, 2023 and March 31, 2022, the weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2023 March 31, 2022 Weighted-average remaining lease term Operating leases 4.6 years 5.2 years Finance leases 0.9 years 1.9 years Weighted-average discount rate Operating leases 2.6 % 2.7 % Finance leases 2.6 % 3.0 % |
Quarterly financial summary (un
Quarterly financial summary (unaudited) | 12 Months Ended |
Mar. 31, 2023 | |
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): 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 2021 Q1 Q2 Q3 Q4 Net sales $ 64,527 $ 72,350 $ 88,562 $ 92,671 Gross profit 43,341 47,138 57,119 58,600 Net income (loss) 1,512 447 4,297 (24) Net income per share: Basic 0.03 0.01 0.09 0.00 Diluted $ 0.03 $ 0.01 $ 0.08 $ 0.00 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentationThe 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 equivalentsCash 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 $0.1 million and $0.1 million as of March 31, 2023 and March 31, 2022, respectively. The Company recorded a reserve for sales adjustments of $23.5 million and $16.3 million as of March 31, 2023 and March 31, 2022, 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 | InventoryInventory, 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. |
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 Machinery, equipment and software 3 - 5 years Leasehold improvements up to 5 years Furniture and fixtures 2 - 5 years Store fixtures 1 - 3 years As of March 31, 2023 and March 31, 2022, included in other assets are retail product displays, net, of $15.7 million and $10.1 million, respectively, that are generally amortized over a period of three years. Amortization expense for retail product displays was $5.2 million, $5.9 million and $5.2 million for the years ended March 31, 2023, March 31, 2022 and March 31, 2021, 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 |
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 10 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. |
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 7 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. |
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 and control transfers at the time of shipment or the time of delivery, depending upon the specific terms of the customer arrangement. For the Company's direct-to-consumer transactions, a contract exists when an order is placed online and control transfers at the time of delivery of merchandise to the consumer. 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, 2023, 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 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. 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. |
Stock based compensation | Stock based compensation The Company has several stock award plans, which are described in detail in Note 12. 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 $96.7 million, $41.0 million and $30.3 million in the years ended March 31, 2023, March 31, 2022 and March 31, 2021, respectively. |
Net income per share | Net income per shareBasic 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 | 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, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Concentrations of Risk | During the years ended March 31, 2023, March 31, 2022 and March 31, 2021, the following customers individually accounted for greater than 10% of the Company’s net sales as disclosed below: Year ended March 31, 2023 2022 2021 Target 25 % 23 % 22 % Walmart 20 % 26 % 26 % Ulta Beauty 15 % 12 % * * Net sales from customer comprised less than 10% of net sales in the period indicated. Customers that individually accounted for greater than 10% of the Company’s accounts receivable at the end of the periods as of March 31, 2023 and March 31, 2022, respectively, are as presented : March 31, 2023 March 31, 2022 Target 32 % 18 % Walmart 26 % 31 % |
Schedule of Useful Lives by Major Asset Class | Useful lives by major asset class are as follows: Estimated Machinery, equipment and software 3 - 5 years Leasehold improvements up to 5 years Furniture and fixtures 2 - 5 years Store fixtures 1 - 3 years |
Net Sales in United States and Outside of United States | During the years ended March 31, 2023, March 31, 2022 and March 31, 2021, net sales in the United States and International were as follows (in thousands): Year ended March 31, 2023 2022 2021 United States $ 506,759 $ 347,484 $ 282,273 International 72,085 44,671 35,837 Total net sales $ 578,844 $ 392,155 $ 318,110 |
Property and Equipment in United States and Outside of United States | As of March 31, 2023 and March 31, 2022, the Company had property and equipment in the United States and International as follows (in thousands) : March 31, 2023 March 31, 2022 United States $ 7,606 $ 10,363 International 268 214 Total property and equipment, net $ 7,874 $ 10,577 |
Reconciliation of Sales Allowances | A reconciliation of the beginning and ending amounts of the reserve for sales adjustments for the years ended March 31, 2023, March 31, 2022 and March 31, 2021 is as follows (in thousands): Balance as of March 31, 2020 $ 7,613 Charges 41,027 Deductions (36,727) 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 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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, 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 Information regarding the Company’s goodwill and intangible assets as of March 31, 2022 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (58,020) $ 19,580 Customer relationships – e-commerce 3 years 3,940 (3,928) 12 Trademarks 10 years 3,500 (729) 2,771 Total finite-lived intangibles 85,040 (62,677) 22,363 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (62,677) $ 257,783 |
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, 2023, is as follows (in thousands): The year ended March 31, 2024 $ 6,963 2025 1,230 2026 1,230 2027 1,230 2028 1,230 Thereafter 2,358 Total $ 14,241 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment as of March 31, 2023 and March 31, 2022 consists of the following (in thousands): March 31, 2023 March 31, 2022 Machinery, equipment and software $ 15,148 $ 15,757 Leasehold improvements 4,677 4,670 Furniture and fixtures 1,263 1,032 Store fixtures 10,782 13,619 Property and equipment, gross 31,870 35,078 Less: Accumulated depreciation and amortization (23,996) (24,501) Property and equipment, net $ 7,874 $ 10,577 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of March 31, 2023 and March 31, 2022 consists of the following (in thousands): March 31, 2023 March 31, 2022 Accrued expenses $ 47,817 $ 19,938 Current portion of operating lease liabilities 4,510 4,391 Accrued compensation 13,098 11,532 Taxes payable 2,851 2,128 Other current liabilities 2,698 2,015 Accrued expenses and other current liabilities $ 70,974 $ 40,004 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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, 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, $5,575 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, 2022 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 97,669 $ — $ 97,669 $ — Total financial liabilities $ 97,669 $ — $ 97,669 $ — __________________________ (1) Of this amount, $5,786 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, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of March 31, 2023 and March 31, 2022 consists of the following (in thousands): March 31, 2023 March 31, 2022 Debt: Term loan $ 66,250 $ 96,250 Finance lease obligations 633 1,419 Total debt 66,883 97,669 Less: debt issuance costs (427) (803) Total debt, net of issuance costs 66,456 96,866 Less: current portion (5,575) (5,786) Long-term portion of debt $ 60,881 $ 91,080 |
Schedule of Aggregate Future Minimum Principal Payments on the Term Loan | Aggregate future minimum principal payments are as follows (in thousands): The year ended March 31, Term Loan 2024 $ 5,000 2025 5,000 2026 5,000 2027 51,250 Total $ 66,250 |
Schedule of Components of Interest Expense | The components of interest expense, net are as follows (in thousands) : Year ended March 31, 2023 2022 2021 Interest on term loan debt $ 3,450 $ 1,708 $ 2,912 Amortization of debt issuance costs 346 331 847 Interest on revolving line of credit 163 342 199 Interest on finance leases 31 63 137 Interest income (1,972) (3) (5) Interest expense, net $ 2,018 $ 2,441 $ 4,090 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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): Year ended March 31, 2023 2022 2021 Domestic $ 64,850 $ 26,286 $ 3,715 Foreign (776) (855) (25) Total $ 64,074 $ 25,431 $ 3,690 |
Schedule of Components of (Provision) Benefit for Income Taxes | The components of the benefit (provision) for income taxes are as follows (in thousands): Year ended March 31, 2023 2022 2021 Current: US federal $ (7,065) $ (5,637) $ (4,772) State (1,854) (1,715) (1,186) Foreign (26) (10) (84) Total current (8,945) (7,362) (6,042) Deferred: US federal 5,035 3,146 7,159 State 816 738 1,293 Foreign 550 (183) 132 Total deferred 6,401 3,701 8,584 Total (provision) benefit for income taxes $ (2,544) $ (3,661) $ 2,542 |
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 : Year ended March 31, 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit 1.0 % 2.6 % (10.6) % State tax deferred rate change, net of federal benefit — % (0.1) % (1.6) % Nondeductible business expenses 0.6 % 0.4 % 2.1 % Nondeductible employee compensation 2.5 % 1.1 % 9.1 % Provision-to-return adjustment (0.1) % (0.3) % 1.5 % Uncertain tax positions — % 0.1 % 1.0 % Stock based compensation (20.3) % (12.0) % (90.7) % Change in valuation allowance (0.6) % 1.5 % — % Others (0.1) % 0.1 % (0.7) % Effective tax rate 4.0 % 14.4 % (68.9) % |
Schedule of Components of Net Deferred Taxes | The components of net deferred taxes arising from temporary differences are as follows (in thousands): March 31, 2023 March 31, 2022 Deferred tax assets: Compensation $ 354 $ 489 Inventory and receivables 9,976 7,939 Accrued expenses 2,734 2,225 Stock compensation 8,247 7,567 Net operating losses 571 426 Right of use liability 3,782 4,763 Capitalized research and development 858 — Other 774 874 Gross deferred tax assets 27,296 24,283 Valuation allowance — (370) Net deferred tax assets 27,296 23,913 Deferred tax liabilities: Goodwill 5,180 3,084 Fixed assets and internally developed software 2,451 2,894 Intangible assets 19,107 22,740 Right of use asset 3,359 4,294 Other 378 494 Deferred tax liabilities 30,475 33,506 Net deferred tax liabilities $ 3,179 $ 9,593 The deferred tax assets and liabilities are reported in the accompanying balance sheets as follows (in thousands) : March 31, 2023 March 31, 2022 Deferred tax assets $ 563 $ — Deferred tax liabilities 3,742 9,593 Net deferred tax liabilities $ 3,179 $ 9,593 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Year ended March 31, 2023 2022 2021 Balance at beginning of year $ 466 $ 458 $ 477 Increases for prior year tax positions — — 6 Increases for current year tax positions 92 75 65 Decreases for prior year tax positions (10) (6) — Decreases due to settlements — (61) (27) Decreases due to statutes lapsing (106) — (63) Balance at end of year $ 442 $ 466 $ 458 |
Stock based compensation (Table
Stock based compensation (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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, 2020 1,999,553 13.17 Exercised (337,376) 4.36 Canceled or forfeited (21,196) 23.24 Balance as of March 31, 2021 1,640,981 14.86 6.1 $ 19,650 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 Exercisable, March 31, 2023 952,850 $ 16.30 4.0 $ 62,939 (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 $82.35, as reported on the New York Stock Exchange on March 31, 2023. 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, 2020 1,252,932 7.97 Exercised (144,340) 1.89 Balance as of March 31, 2021 1,108,592 8.72 4.0 $ 20,077 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 Exercisable, March 31, 2023 517,740 14.46 2.4 $ 35,151 (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 $82.35, as reported on the New York Stock Exchange on March 31, 2023. |
Summary of Additional Information Relating to Stock Options Activity | Additional information relating to service-based options is as follows (in thousands, except per share data): Year ended March 31, 2023 2022 2021 Stock based compensation expense $ 344 $ 924 $ 1,671 Intrinsic value of options exercised 18,015 1,695 5,620 Additional information relating to options that vest based upon the satisfaction of performance or market conditions is as follows (in thousands): Year ended March 31, 2023 2022 2021 Intrinsic value of options exercised 23,860 2,921 $ 3,117 |
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”) as follows: Shares of restricted stock outstanding Weighted-average grant date fair value Balance as of March 31, 2020 2,311,768 12.86 Granted 1,206,870 17.45 Vested (1,044,052) 13.97 Canceled or forfeited (184,971) 14.19 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 |
Disclosure of Additional Information | Additional information relating to RSAs and RSUs is as follows (in thousands): Year ended March 31, 2023 2022 2021 Stock based compensation expense $ 28,773 $ 18,722 $ 18,012 Intrinsic value of restricted stock released $ 47,713 $ 25,621 $ 24,328 |
Net income per share (Tables)
Net income per share (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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): Year ended March 31, 2023 2022 2021 Numerator: Net income $ 61,530 $ 21,770 $ 6,232 Denominator: Weighted average common shares outstanding — basic 52,474,811 50,940,808 49,377,410 Dilutive common equivalent shares from equity awards 2,862,743 2,713,495 2,616,735 Weighted average common shares outstanding —diluted 55,337,554 53,654,303 51,994,145 Net income per share: Basic $ 1.17 $ 0.43 $ 0.13 Diluted $ 1.11 $ 0.41 $ 0.12 Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 194,289 20,314 1,038,810 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Balance Sheet Information | A reconciliation of the balance sheet line items that were impacted or created as a result of the Company’s adoption of ASC 842 as of March 31, 2023 and March 31, 2022 is as follows (in thousands): Classification March 31, 2023 March 31, 2022 Assets Operating lease assets Other assets $ 14,071 $ 18,218 Finance lease assets (a) Other assets 245 664 Total leased assets $ 14,316 $ 18,882 Liabilities Current Operating Accrued expenses and other current liabilities $ 4,510 $ 4,391 Finance Current portion of long-term debt and finance lease obligations 575 786 Noncurrent Operating Long-term operating lease obligations 11,201 15,744 Finance Long-term debt and finance lease obligations 58 633 Total lease liabilities $ 16,344 $ 21,554 ___________________ (a) Finance leases are recorded net of accumulated amortization of $3.4 million and $3.0 million as of March 31, 2023 and March 31, 2022, respectively. |
Components of Lease Expense | For the years ended March 31, 2023, March 31, 2022 and March 31, 2021, the components of operating and finance lease costs were as follows (in thousands): Year ended March 31, Classification 2023 2022 2021 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 4,638 $ 4,686 $ 4,756 Finance lease cost Amortization of leased assets SG&A expenses 420 436 970 Interest on lease liabilities Interest expense, net 31 63 137 Total lease cost $ 5,089 $ 5,185 $ 5,863 As of March 31, 2023 and March 31, 2022, the weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2023 March 31, 2022 Weighted-average remaining lease term Operating leases 4.6 years 5.2 years Finance leases 0.9 years 1.9 years Weighted-average discount rate Operating leases 2.6 % 2.7 % Finance leases 2.6 % 3.0 % |
Maturities of Operating Lease Liabilities | As of March 31, 2023, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total 2024 $ 4,851 $ 582 $ 5,433 2025 4,071 58 4,129 2026 3,097 — 3,097 2027 1,441 — 1,441 2028 846 — 846 Thereafter 2,374 — 2,374 Total lease payments 16,680 640 17,320 Less: Interest 969 7 976 Present value of lease liabilities $ 15,711 $ 633 $ 16,344 |
Maturities of Finance Lease Liabilities | As of March 31, 2023, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total 2024 $ 4,851 $ 582 $ 5,433 2025 4,071 58 4,129 2026 3,097 — 3,097 2027 1,441 — 1,441 2028 846 — 846 Thereafter 2,374 — 2,374 Total lease payments 16,680 640 17,320 Less: Interest 969 7 976 Present value of lease liabilities $ 15,711 $ 633 $ 16,344 |
Quarterly financial summary (_2
Quarterly financial summary (unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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): 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 2021 Q1 Q2 Q3 Q4 Net sales $ 64,527 $ 72,350 $ 88,562 $ 92,671 Gross profit 43,341 47,138 57,119 58,600 Net income (loss) 1,512 447 4,297 (24) Net income per share: Basic 0.03 0.01 0.09 0.00 Diluted $ 0.03 $ 0.01 $ 0.08 $ 0.00 |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2023 USD ($) distribution_channel | Dec. 31, 2022 USD ($) | 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, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Mar. 31, 2023 USD ($) segment distribution_channel | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Allowance for doubtful accounts | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 | |||||||||||
Sales allowances | 23,500,000 | 16,300,000 | 23,500,000 | 16,300,000 | |||||||||||
Reserve for excess and obsolete inventory reduction | (6,600,000) | (4,500,000) | (6,600,000) | (4,500,000) | |||||||||||
Property and equipment, net | $ 7,874,000 | 10,577,000 | 7,874,000 | 10,577,000 | |||||||||||
Impairment of long-lived assets held-for-use | $ 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 | $ 187,357,000 | $ 146,537,000 | $ 122,349,000 | $ 122,601,000 | 105,135,000 | $ 98,118,000 | $ 91,855,000 | $ 97,047,000 | $ 92,671,000 | $ 88,562,000 | $ 72,350,000 | $ 64,527,000 | $ 578,844,000 | 392,155,000 | 318,110,000 |
Cost of sales | 188,448,000 | 140,423,000 | 111,912,000 | ||||||||||||
Advertising costs | 96,700,000 | 41,000,000 | 30,300,000 | ||||||||||||
Retail Product Displays | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Property and equipment, net | $ 15,700,000 | $ 10,100,000 | $ 15,700,000 | 10,100,000 | |||||||||||
Estimated useful lives | 3 years | ||||||||||||||
Amortization expense | $ 5,200,000 | 5,900,000 | 5,200,000 | ||||||||||||
Minimum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Finite-lived intangibles, estimated useful life | 3 years | ||||||||||||||
Maximum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Finite-lived intangibles, estimated useful life | 10 years | ||||||||||||||
Shipping and Handling | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Net sales | $ 1,600,000 | 700,000 | 800,000 | ||||||||||||
Cost of sales | $ 36,900,000 | $ 28,000,000 | $ 26,400,000 |
Summary of significant accoun_5
Summary of significant accounting policies - Schedule of Concentrations of Risk (Details) - Customer Concentration Risk | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | Target | |||
Product Information [Line Items] | |||
Concentration risk percentage | 25% | 23% | 22% |
Revenue | Walmart | |||
Product Information [Line Items] | |||
Concentration risk percentage | 20% | 26% | 26% |
Revenue | Ulta Beauty | |||
Product Information [Line Items] | |||
Concentration risk percentage | 15% | 12% | |
Accounts Receivable | Target | |||
Product Information [Line Items] | |||
Concentration risk percentage | 32% | 18% | |
Accounts Receivable | Walmart | |||
Product Information [Line Items] | |||
Concentration risk percentage | 26% | 31% |
Summary of significant accoun_6
Summary of significant accounting policies - Schedule of Useful Lives by Major Asset Class (Details) | 12 Months Ended |
Mar. 31, 2023 | |
Machinery, equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 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 | 2 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, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net sales | $ 187,357 | $ 146,537 | $ 122,349 | $ 122,601 | $ 105,135 | $ 98,118 | $ 91,855 | $ 97,047 | $ 92,671 | $ 88,562 | $ 72,350 | $ 64,527 | $ 578,844 | $ 392,155 | $ 318,110 |
United States | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net sales | 506,759 | 347,484 | 282,273 | ||||||||||||
International | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net sales | $ 72,085 | $ 44,671 | $ 35,837 |
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, 2023 | Mar. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 7,874 | $ 10,577 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 7,606 | 10,363 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 268 | $ 214 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Sales Allowances [Roll Forward] | |||
Beginning balance | $ 16,310 | $ 11,913 | $ 7,613 |
Charges | 66,302 | 48,862 | 41,027 |
Deductions | (59,092) | (44,465) | (36,727) |
Ending balance | $ 23,520 | $ 16,310 | $ 11,913 |
Investment in equity securiti_2
Investment in equity securities - Additional Information (Details) $ in Millions | Apr. 14, 2017 USD ($) |
Social Media Analytics Company | |
Debt and Equity Securities, FV-NI [Line Items] | |
Amount invested | $ 2.9 |
Goodwill and other intangible_3
Goodwill and other intangible assets - Information Regarding Company's Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, Gross carrying amount | $ 85,040 | $ 85,040 |
Finite-lived intangibles, Accumulated amortization | (70,799) | (62,677) |
Finite-lived intangibles, Net carrying amount | 14,241 | 22,363 |
Goodwill, Gross carrying amount | 171,620 | 171,620 |
Goodwill, Accumulated amortization | 0 | 0 |
Goodwill, Net carrying amount | 171,620 | 171,620 |
Goodwill and other intangibles, Gross carrying amount | 320,460 | 320,460 |
Goodwill and other intangibles, Accumulated amortization | (70,799) | (62,677) |
Goodwill and other intangibles, Net carrying amount | 249,661 | 257,783 |
Trademarks | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Indefinite-lived intangibles, gross carrying amount | 63,800 | 63,800 |
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 | 77,600 | 77,600 |
Finite-lived intangibles, Accumulated amortization | (65,780) | (58,020) |
Finite-lived intangibles, Net carrying amount | $ 11,820 | $ 19,580 |
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 | $ 3,940 | $ 3,940 |
Finite-lived intangibles, Accumulated amortization | (3,940) | (3,928) |
Finite-lived intangibles, Net carrying amount | $ 0 | $ 12 |
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 | $ 3,500 | $ 3,500 |
Finite-lived intangibles, Accumulated amortization | (1,079) | (729) |
Finite-lived intangibles, Net carrying amount | $ 2,421 | $ 2,771 |
Finite-lived intangibles, estimated useful life | 10 years | 10 years |
Goodwill and other intangible_4
Goodwill and other intangible assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Depreciation and amortization | $ 8,100,000 | $ 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, 2023 | Mar. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 6,963 | |
2025 | 1,230 | |
2026 | 1,230 | |
2027 | 1,230 | |
2028 | 1,230 | |
Thereafter | 2,358 | |
Finite-lived intangibles, Net carrying amount | $ 14,241 | $ 22,363 |
Property and equipment - Summar
Property and equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31,870 | $ 35,078 |
Less: Accumulated depreciation and amortization | (23,996) | (24,501) |
Property and equipment, net | 7,874 | 10,577 |
Machinery, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,148 | 15,757 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,677 | 4,670 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,263 | 1,032 |
Store fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,782 | $ 13,619 |
Property and equipment - Additi
Property and equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 4.3 | $ 7.9 | $ 6.7 |
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, 2023 | Mar. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 47,817 | $ 19,938 |
Current portion of operating lease liabilities | 4,510 | 4,391 |
Accrued compensation | 13,098 | 11,532 |
Taxes payable | 2,851 | 2,128 |
Other current liabilities | 2,698 | 2,015 |
Accrued expenses and other current liabilities | $ 70,974 | $ 40,004 |
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, 2023 | Mar. 31, 2022 |
Financial liabilities: | ||
Long-term debt, including current portion | $ 66,883 | $ 97,669 |
Total financial liabilities | 66,883 | 97,669 |
Current portion of long-term debt | 5,575 | 5,786 |
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 | 66,883 | 97,669 |
Total financial liabilities | 66,883 | 97,669 |
Level 3 | ||
Financial liabilities: | ||
Long-term debt, including current portion | 0 | 0 |
Total financial liabilities | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Mar. 29, 2023 | Apr. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 176,000 | $ 460,000 | $ 0 | ||
Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility, interest rate | 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% | ||||
Term loan | |||||
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | 176,000 | ||||
Prepayment of term loan borrowings | 25,000,000 | ||||
Amended Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Debt issuance costs | $ 1,100,000 | ||||
Amended Credit Agreement | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, unused amount | $ 100,000,000 | ||||
Amended Credit Agreement | Revolving credit facility | Minimum Floor | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 0% | ||||
Amended Credit Agreement | Revolving credit facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Unused fee percentage | 0.10% | ||||
Amended Credit Agreement | Revolving credit facility | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 1.25% | ||||
Amended Credit Agreement | Revolving credit facility | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 0.25% | ||||
Amended Credit Agreement | Revolving credit facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Unused fee percentage | 0.30% | ||||
Amended Credit Agreement | Revolving credit facility | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 2.125% | ||||
Amended Credit Agreement | Revolving credit facility | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 1.125% | ||||
Amended Credit Agreement | Term loan | Minimum Floor | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 0% | ||||
Amended Credit Agreement | Term loan | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 1.25% | ||||
Amended Credit Agreement | Term loan | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 0.25% | ||||
Amended Credit Agreement | Term loan | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 2.125% | ||||
Amended Credit Agreement | Term loan | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate (percentage) | 1.125% | ||||
Amended Credit Agreement | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Amounts available under senior secured credit facility | $ 7,000,000 | ||||
Amended Credit Agreement | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Amounts available under senior secured credit facility | 5,000,000 | ||||
Amended Revolving Credit Facility | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Amounts available under senior secured credit facility | 100,000,000 | ||||
Amended Term Loan Facility | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Amounts available under senior secured credit facility | $ 100,000,000 | ||||
2016 Senior Secured Credit Facility | Term loan | |||||
Debt Instrument [Line Items] | |||||
Credit facility, interest rate | 6.20% | ||||
Prior Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 500,000 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 633 | $ 1,419 |
Total debt | 66,883 | 97,669 |
Less: debt issuance costs | (427) | (803) |
Total debt, net of issuance costs | 66,456 | 96,866 |
Less: current portion | (5,575) | (5,786) |
Long-term portion of debt | 60,881 | 91,080 |
Term loan | ||
Debt Instrument [Line Items] | ||
Term loan | $ 66,250 | $ 96,250 |
Debt - Schedule of Aggregate Fu
Debt - Schedule of Aggregate Future Minimum Principal Payments on the Term Loan (Details) - Term loan $ in Thousands | Mar. 31, 2023 USD ($) |
Term Loan | |
2024 | $ 5,000 |
2025 | 5,000 |
2026 | 5,000 |
2027 | 51,250 |
Total | $ 66,250 |
Debt - Schedule of Components o
Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 346 | $ 331 | $ 847 |
Interest income | (1,972) | (3) | (5) |
Interest expense, net | 2,018 | 2,441 | 4,090 |
Finance leases | |||
Debt Instrument [Line Items] | |||
Interest | 31 | 63 | 137 |
Term loan | |||
Debt Instrument [Line Items] | |||
Interest | 3,450 | 1,708 | 2,912 |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Interest | $ 163 | $ 342 | $ 199 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 64,850 | $ 26,286 | $ 3,715 |
Foreign | (776) | (855) | (25) |
Income before provision for income taxes | $ 64,074 | $ 25,431 | $ 3,690 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Current: | |||
US federal | $ (7,065) | $ (5,637) | $ (4,772) |
State | (1,854) | (1,715) | (1,186) |
Foreign | (26) | (10) | (84) |
Total current | (8,945) | (7,362) | (6,042) |
Deferred: | |||
US federal | 5,035 | 3,146 | 7,159 |
State | 816 | 738 | 1,293 |
Foreign | 550 | (183) | 132 |
Total deferred | 6,401 | 3,701 | 8,584 |
Total (provision) benefit for income taxes | $ (2,544) | $ (3,661) | $ 2,542 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
State tax, net of federal benefit | 1% | 2.60% | (10.60%) |
State tax deferred rate change, net of federal benefit | 0% | (0.10%) | (1.60%) |
Nondeductible business expenses | 0.60% | 0.40% | 2.10% |
Nondeductible employee compensation | 2.50% | 1.10% | 9.10% |
Provision-to-return adjustment | (0.10%) | (0.30%) | 1.50% |
Uncertain tax positions | 0% | 0.10% | 1% |
Stock based compensation | (20.30%) | (12.00%) | (90.70%) |
Change in valuation allowance | (0.60%) | 1.50% | 0% |
Others | (0.10%) | 0.10% | (0.70%) |
Effective tax rate | 4% | 14.40% | (68.90%) |
Income taxes - Schedule of Co_3
Income taxes - Schedule of Components of Net Deferred Taxes (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax assets: | ||
Compensation | $ 354,000 | $ 489,000 |
Inventory and receivables | 9,976,000 | 7,939,000 |
Accrued expenses | 2,734,000 | 2,225,000 |
Stock compensation | 8,247,000 | 7,567,000 |
Net operating losses | 571,000 | 426,000 |
Right of use liability | 3,782,000 | 4,763,000 |
Capitalized research and development | 858,000 | 0 |
Other | 774,000 | 874,000 |
Gross deferred tax assets | 27,296,000 | 24,283,000 |
Valuation allowance | 0 | (370,000) |
Net deferred tax assets | 27,296,000 | 23,913,000 |
Deferred tax liabilities: | ||
Goodwill | 5,180,000 | 3,084,000 |
Fixed assets and internally developed software | 2,451,000 | 2,894,000 |
Intangible assets | 19,107,000 | 22,740,000 |
Right of use asset | 3,359,000 | 4,294,000 |
Other | 378,000 | 494,000 |
Deferred tax liabilities | 30,475,000 | 33,506,000 |
Net deferred tax liabilities | $ 3,179,000 | $ 9,593,000 |
Income taxes - Schedule of Defe
Income taxes - Schedule of Deferred Tax Assets and Liabilities Within the Same Jurisdiction (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 563 | $ 0 |
Deferred tax liabilities | 3,742 | 9,593 |
Net deferred tax liabilities | $ 3,179 | $ 9,593 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 0 | $ 370,000 | |
Federal net operating loss carryforwards | 0 | ||
State net operating loss carryforwards | 800,000 | ||
Foreign net operating loss carryforwards | 2,100,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 400,000 | 500,000 | $ 500,000 |
Unrecognized tax benefits expected to reverse in next twelve months | 100,000 | ||
Accrued gross interest and penalties | 200,000 | 200,000 | |
Recognized net interest and penalties expense | $ 34,000 | $ 27,000 | $ 29,000 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 466 | $ 458 | $ 477 |
Increases for prior year tax positions | 0 | 0 | 6 |
Increases for current year tax positions | 92 | 75 | 65 |
Decreases for prior year tax positions | (10) | (6) | 0 |
Decreases due to settlements | 0 | (61) | (27) |
Decreases due to statutes lapsing | (106) | 0 | (63) |
Balance at end of year | $ 442 | $ 466 | $ 458 |
Preferred stock - Additional In
Preferred stock - Additional Information (Details) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Service-based Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost | $ 300,000 | |||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 1 year 4 months 24 days | |||
Maximum contractual life | 10 years | |||
Expected dividend yield | 0% | |||
Stock based compensation expense | $ 344,000 | $ 924,000 | $ 1,671,000 | |
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) | 198,905 | |||
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 | 2 years 2 months 12 days | |||
Unvested shares outstanding (in shares) | 2,128,773 | 2,275,742 | 2,289,615 | 2,311,768 |
Unrecognized stock-based compensation cost | $ 46,500,000 | |||
Stock based compensation expense | 28,773,000 | $ 18,722,000 | $ 18,012,000 | |
RSAs and RSUs | Cost of Sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 100,000 | 300,000 | 200,000 | |
RSAs and RSUs | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 28,700,000 | $ 18,400,000 | $ 17,800,000 | |
2016 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 16,589,312 | |||
Shares available for grant (in shares) | 7,969,487 | |||
2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options and awards outstanding (in shares) | 368,915 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Weighted-average exercise price | |||
Closing stock price (in USD per share) | $ 82.35 | ||
Service-based Stock Options | |||
Options outstanding | |||
Beginning balance (in shares) | 1,543,499 | 1,640,981 | 1,999,553 |
Exercised (in shares) | (519,009) | (93,282) | (337,376) |
Canceled or forfeited (in shares) | (4,200) | (21,196) | |
Ending balance (in shares) | 1,024,490 | 1,543,499 | 1,640,981 |
Options outstanding, Exercisable (in shares) | 952,850 | ||
Weighted-average exercise price | |||
Beginning balance (in USD per share) | $ 15.05 | $ 14.86 | $ 13.17 |
Exercised (in USD per share) | 12.82 | 11.19 | 4.36 |
Canceled or forfeited (in USD per share) | 26.63 | 23.24 | |
Ending balance (in USD per share) | 16.17 | $ 15.05 | $ 14.86 |
Weighted-average exercise price, Exercisable (in USD per share) | $ 16.30 | ||
Weighted-average remaining contractual life (in years), Outstanding | 4 years 1 month 6 days | 5 years 1 month 6 days | 6 years 1 month 6 days |
Weighted-average remaining contractual life (in years), Exercisable | 4 years | ||
Aggregate intrinsic values, Outstanding | $ 67,796 | $ 16,686 | $ 19,650 |
Aggregate intrinsic values, Exercisable | $ 62,939 |
Stock based compensation - Su_2
Stock based compensation - Summary of Additional Information Relating to Service-based Options (Details) - Service-based Stock Options - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 344 | $ 924 | $ 1,671 |
Intrinsic value of options exercised | $ 18,015 | $ 1,695 | $ 5,620 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Weighted-average exercise price | |||
Closing stock price (in USD per share) | $ 82.35 | ||
Performance-based and Market-based Stock Options | |||
Options outstanding | |||
Beginning balance (in shares) | 1,004,327 | 1,108,592 | 1,252,932 |
Exercised (in shares) | (460,787) | (104,265) | (144,340) |
Canceled or forfeited (in shares) | (25,800) | ||
Ending balance (in shares) | 517,740 | 1,004,327 | 1,108,592 |
Options outstanding, Exercisable (in shares) | 517,740 | ||
Weighted-average exercise price | |||
Beginning balance (in USD per share) | $ 9.40 | $ 8.72 | $ 7.97 |
Exercised (in USD per share) | 2.73 | 2.24 | 1.89 |
Canceled or forfeited (in USD per share) | 26.84 | ||
Ending balance (in USD per share) | 14.46 | $ 9.40 | $ 8.72 |
Weighted-average exercise price, Exercisable (in USD per share) | $ 14.46 | ||
Weighted-average remaining contractual life (in years), Outstanding | 2 years 4 months 24 days | 3 years | 4 years |
Aggregate intrinsic values, Outstanding | $ 35,151 | $ 16,809 | $ 20,077 |
Weighted-average remaining contractual life (in years), Exercisable | 2 years 4 months 24 days | ||
Aggregate intrinsic values, Exercisable | $ 35,151 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Performance-based and Market-based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 23,860 | $ 2,921 | $ 3,117 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Shares of restricted stock outstanding | |||
Beginning balance (in shares) | 2,275,742 | 2,289,615 | 2,311,768 |
Granted (in shares) | 1,180,167 | 1,103,890 | 1,206,870 |
Vested (in shares) | (1,066,516) | (926,250) | (1,044,052) |
Canceled forfeited (in shares) | (260,620) | (191,513) | (184,971) |
Ending balance (in shares) | 2,128,773 | 2,275,742 | 2,289,615 |
Weighted-average grant date fair value | |||
Beginning balance (in USD per share) | $ 20.85 | $ 14.67 | $ 12.86 |
Granted (in USD per share) | 28.59 | 27.62 | 17.45 |
Vested (in USD per share) | 18.88 | 14.50 | 13.97 |
Canceled forfeited (in USD per share) | 22.24 | 16.67 | 14.19 |
Ending balance (in USD per share) | $ 25.94 | $ 20.85 | $ 14.67 |
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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 28,773 | $ 18,722 | $ 18,012 |
Intrinsic value of restricted stock released | $ 47,713 | $ 25,621 | $ 24,328 |
Repurchase of common stock - Na
Repurchase of common stock - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | 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, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, vest percentage | 100% | ||
Company contributions to 401 (k) plan | $ 0.5 | $ 0.4 | $ 0.3 |
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, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | |||||||||||||||
Net income | $ 16,246 | $ 19,105 | $ 11,710 | $ 14,469 | $ 1,556 | $ 6,214 | $ 5,724 | $ 8,276 | $ (24) | $ 4,297 | $ 447 | $ 1,512 | $ 61,530 | $ 21,770 | $ 6,232 |
Denominator: | |||||||||||||||
Weighted average common shares outstanding - basic (in shares) | 52,474,811 | 50,940,808 | 49,377,410 | ||||||||||||
Dilutive common equivalent shares from equity awards (in shares) | 2,862,743 | 2,713,495 | 2,616,735 | ||||||||||||
Weighted average common shares outstanding - diluted (in shares) | 55,337,554 | 53,654,303 | 51,994,145 | ||||||||||||
Net income per share: | |||||||||||||||
Basic (in USD per share) | $ 0.31 | $ 0.36 | $ 0.22 | $ 0.28 | $ 0.03 | $ 0.12 | $ 0.11 | $ 0.16 | $ 0 | $ 0.09 | $ 0.01 | $ 0.03 | $ 1.17 | $ 0.43 | $ 0.13 |
Diluted (in USD per share) | $ 0.29 | $ 0.34 | $ 0.21 | $ 0.27 | $ 0.03 | $ 0.12 | $ 0.11 | $ 0.15 | $ 0 | $ 0.08 | $ 0.01 | $ 0.03 | $ 1.11 | $ 0.41 | $ 0.12 |
Anti-dilutive securities excluded from diluted EPS: | |||||||||||||||
Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share (in shares) | 194,289 | 20,314 | 1,038,810 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 USD ($) renewal_option | Mar. 31, 2022 USD ($) | Mar. 31, 2021 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 | $ | $ 4.9 | $ 5.1 | $ 3.8 |
Leases - Balance Sheet Line Ite
Leases - Balance Sheet Line Items (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Assets | ||
Operating lease assets | $ 14,071 | $ 18,218 |
Finance lease assets | 245 | 664 |
Total leased assets | 14,316 | 18,882 |
Current | ||
Operating | 4,510 | 4,391 |
Finance | 575 | 786 |
Noncurrent | ||
Operating | 11,201 | 15,744 |
Finance | 58 | 633 |
Total lease liabilities | $ 16,344 | $ 21,554 |
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 | $ (3,400) | $ (3,000) |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | |||
Operating lease cost | $ 4,756 | $ 4,638 | $ 4,686 |
Finance lease cost | |||
Amortization of leased assets | 970 | 420 | 436 |
Interest on lease liabilities | 137 | 31 | 63 |
Total lease cost | $ 5,863 | $ 5,089 | $ 5,185 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Operating leases | ||
2024 | $ 4,851 | |
2025 | 4,071 | |
2026 | 3,097 | |
2027 | 1,441 | |
2028 | 846 | |
Thereafter | 2,374 | |
Total lease payments | 16,680 | |
Less: Interest | 969 | |
Present value of lease liabilities | 15,711 | |
Finance leases | ||
2024 | 582 | |
2025 | 58 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total lease payments | 640 | |
Less: Interest | 7 | |
Finance lease obligations | 633 | $ 1,419 |
Total | ||
2024 | 5,433 | |
2025 | 4,129 | |
2026 | 3,097 | |
2027 | 1,441 | |
2028 | 846 | |
Thereafter | 2,374 | |
Total lease payments | 17,320 | |
Less: Interest | 976 | |
Present value of lease liabilities | $ 16,344 | $ 21,554 |
Leases - Weighted Average Assum
Leases - Weighted Average Assumptions (Details) | Mar. 31, 2023 | Mar. 31, 2022 |
Weighted-average remaining lease term | ||
Operating leases | 4 years 7 months 6 days | 5 years 2 months 12 days |
Finance leases | 10 months 24 days | 1 year 10 months 24 days |
Weighted-average discount rate | ||
Operating leases | 2.60% | 2.70% |
Finance leases | 2.60% | 3% |
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, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net sales | $ 187,357 | $ 146,537 | $ 122,349 | $ 122,601 | $ 105,135 | $ 98,118 | $ 91,855 | $ 97,047 | $ 92,671 | $ 88,562 | $ 72,350 | $ 64,527 | $ 578,844 | $ 392,155 | $ 318,110 |
Gross profit | 129,126 | 98,725 | 79,560 | 82,985 | 67,500 | 64,341 | 57,985 | 61,906 | 58,600 | 57,119 | 47,138 | 43,341 | 390,396 | 251,732 | 206,198 |
Net income | $ 16,246 | $ 19,105 | $ 11,710 | $ 14,469 | $ 1,556 | $ 6,214 | $ 5,724 | $ 8,276 | $ (24) | $ 4,297 | $ 447 | $ 1,512 | $ 61,530 | $ 21,770 | $ 6,232 |
Net income per share: | |||||||||||||||
Basic (in USD per share) | $ 0.31 | $ 0.36 | $ 0.22 | $ 0.28 | $ 0.03 | $ 0.12 | $ 0.11 | $ 0.16 | $ 0 | $ 0.09 | $ 0.01 | $ 0.03 | $ 1.17 | $ 0.43 | $ 0.13 |
Diluted (in USD per share) | $ 0.29 | $ 0.34 | $ 0.21 | $ 0.27 | $ 0.03 | $ 0.12 | $ 0.11 | $ 0.15 | $ 0 | $ 0.08 | $ 0.01 | $ 0.03 | $ 1.11 | $ 0.41 | $ 0.12 |