Direct-to-Consumer (DTC) net sales increased by 17.9% to $1,011.337 million, driven by higher global sales for the UGG and HOKA brands. This indicates a successful strategy in expanding the company's direct sales channels.

International net sales increased by 28.5% to $657.874 million, representing 36.0% of total net sales. This highlights the company's success in expanding its global presence.

During the three months ended December 31, 2024, the Company began taking steps to phase out its standalone operations for the Koolaburra brand in order to maintain focus on the Company's most significant organic opportunities.

Selling, general, and administrative (SG&A) expenses increased by 24.9% to $535.349 million, primarily due to higher variable advertising and promotion expenses, net foreign currency-related losses, and other variable net selling expenses. This indicates that the company is investing in marketing and infrastructure to support growth.

The PEO and Principal Financial and Accounting Officer (PFAO) concluded that the company's disclosure controls and procedures are effective at a reasonable assurance level as of December 31, 2024.

The Company enters into foreign currency forward or option contracts (derivative contracts) with maturities of 15 months or less to manage foreign currency risk and certain of these derivative contracts are designated as cash flow hedges of forecasted sales.

During the three months ended December 31, 2024, there were no material changes to the risks and uncertainties described in Part I, Item 1A, 'Risk Factors,' of our 2024 Annual Report.

From time to time, the Company is involved in various legal proceedings, disputes, and other claims arising in the ordinary course of business, including employment, intellectual property, and product liability claims.

In the normal course of business, our financial position and results of operations are subject to a variety of risks, including risks associated with commodity pricing, foreign currency exchange rates and, to a lesser extent, interest rates.

The company's net sales increase was primarily driven by higher global sales across all channels for the UGG and HOKA brands, suggesting that these brands are maintaining or improving their competitive position in the market.

As part of our global policing program to protect our intellectual property rights, from time to time, we file lawsuits in various jurisdictions asserting claims for alleged acts of trademark counterfeiting, trademark infringement, patent infringement, trade dress infringement, and trademark dilution.

We are investigating several manufacturers and distributors of counterfeit UGG and HOKA brand products, as well as various markets for indications of counterfeit UGG and HOKA brand products.

Gross margin improvements were partially offset by higher freight costs, indicating potential challenges in supply chain or logistics efficiency.

The Company has a voluntary SFP administered through a third-party platform that provides the Company's independent manufacturers that supply its inventory (inventory suppliers) the opportunity to sell their receivables due from the Company to participating financial institutions in advance of the invoice due date.

The increase in unallocated overhead costs was higher as a percentage of net sales, primarily due to higher payroll costs for key corporate roles to support growth of our brands, higher depreciation and other operating expenses, higher net foreign currency-related losses, and higher corporate warehouse expenses.

Increased other operating expenses of approximately $15,000, primarily due to higher contract expenses and other operating expenses, as well as higher impairments in IT.

As of December 31, 2024, the aggregate remaining approved amount under our stock repurchase program is $640,692. Stock repurchase activity under the Company's stock repurchase program was as follows: 2,022,299 shares repurchased.

In September 2024, the Company's stockholders approved the 2024 Employee Stock Purchase Plan (2024 ESPP), which is intended to replace the 2015 ESPP.