v3.25.3
LEASES
 6 Months Ended
Sep. 30, 2025
Leases [Abstract]  
LEASES
NOTE 4. LEASES
The Company enters into operating leases domestically and internationally to lease certain warehouse space, office facilities, space for its Brand and Factory House stores, and certain equipment under non-cancelable operating leases. The leases expire at various dates through 2038. Short-term lease payments were not material for the periods presented.
Lease Costs and Other Information
The Company recognizes lease expense on a straight-line basis over the lease term. There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases. Operating and variable lease costs are included on the Company's Condensed Consolidated Statements of Operations within (i) Selling, general and administrative expenses, (ii) Restructuring charges, for certain operating and variable lease costs relating to restructured facilities; and (iii) Other income (expense), for certain operating and variable lease costs relating to lease assets held for sublet purposes. The following table presents total operating and variable lease costs for the periods indicated:
Three Months Ended September 30,Six Months Ended September 30,
2025202420252024
Operating lease costs$41,393 $37,667 $82,428 $75,460 
Variable lease costs$22,438 $28,039 $40,727 $49,540 
The Company subleases certain excess office facilities, retail space and warehouse space to third parties. Sublease income for the three and six months ended September 30, 2025 was $3.1 million and $6.4 million, respectively (three and six months ended September 30, 2024: $1.7 million and $2.7 million, respectively).
The weighted average remaining lease term and discount rate for the periods indicated below were as follows:
September 30, 2025March 31, 2025
Weighted average remaining lease term (in years)6.807.13
Weighted average discount rate4.80 %4.88 %
Supplemental Cash Flow Information
The following table presents supplemental information relating to cash flow arising from lease transactions:
Six Months Ended September 30,
20252024
Operating cash outflows from operating leases$87,469 $92,846 
Leased assets obtained in exchange for new operating lease liabilities$53,412 $36,316 
Maturity of Lease Liabilities
The following table presents the future minimum lease payments under the Company's operating lease liabilities as of September 30, 2025:
Fiscal year ending March 31,
2026 (six months ending)$83,461 
2027160,099 
2028138,530 
202996,696 
203073,489 
2031 and thereafter274,207 
Total lease payments$826,482 
Less: Interest115,922 
Total present value of lease liabilities$710,560 
As of September 30, 2025, the Company has additional operating lease obligations that have not yet commenced of approximately $0.3 million, which are not reflected in the table above. During the three months ended September 30, 2025, as part of the 2025 restructuring plan as defined below (refer to Note 11), the Company terminated a previously disclosed contract assessed as containing a lease that had not yet commenced.