The company's long-term growth strategy remains focused on building its DTC channel to represent an increased portion of total net sales. DTC channel net sales increased 28.2% to $1,440,249.

The company intends to divest the Sanuk brand as it focuses on allocating resources that best align with its long-term objectives. This decision reflects a strategic shift towards brands with higher growth potential and profitability.

HOKA brand net sales continue to increase as a percentage of the company's aggregate net sales and positively impact seasonality trends. Wholesale net sales of the HOKA brand increased primarily due to higher domestic net sales as a result of gaining market share with existing customer accounts.

Significant impacts to working capital, compared to the prior period, were primarily due to: (1) more tightly managed brand inventories and higher sell-through of products, (2) higher trade accounts payable due to timing of payments, and (3) higher performance-based compensation accruals.

On February 1, 2024, Dave Powers announced his intention to retire from his position as Chief Executive Officer and President of the Company, effective August 1, 2024. On the same date, the Company announced that Stefano Caroti will be appointed as President and Chief Executive Officer, effective August 1, 2024.

During the nine months ended December 31, 2023, there were no material changes to the risks and uncertainties described in Part I, Item 1A, 'Risk Factors,' of our 2023 Annual Report.

Wholesale net sales of the HOKA brand increased primarily due to higher domestic net sales as a result of gaining market share with existing customer accounts, driven by higher demand across an assortment of performance products.

To support our growing business, we continue to expand our network of global warehouses, DCs, and 3PLs, while diversifying and increasing the number of third-party manufacturers we engage, which has resulted in higher costs in the current fiscal year.

As of December 31, 2023, the aggregate remaining approved amount under the stock repurchase program is $1,046,000. Stock repurchase activity under the Company's stock repurchase program was $310,635 for the nine months ended December 31, 2023.

International net sales increased by 16.7% and represented 32.8% and 32.6% of total net sales for the three months ended December 31, 2023, and 2022, respectively. These changes were primarily driven by higher net sales for the DTC channel for the UGG and HOKA brands.