| Segments and Geographic Information |
19. SEGMENTS AND GEOGRAPHIC INFORMATION
The Company identifies its reportable segments based on a management approach as described in Topic 280 Segment Reporting, together with additional factors such as nature of products or services, customer types, and certain economic characteristics of the underlying business. Our Chief Operating Decision Maker ("CODM") is our CEO, Gregory Roberts. Our CODM uses segment net income before provision for income taxes to allocate resources to our segments in our annual planning process and to assess the performance of our segments, primarily by monitoring actual results versus the annual plan. Our operating segments are not evaluated using asset information.
The Company's operations are organized under three business segments (i) Wholesale Sales & Ancillary Services, (ii) Direct-to-Consumer, and (iii) Secured Lending. The Wholesale Sales & Ancillary Services segment includes the consolidating eliminations of inter-segment transactions and unallocated segment adjustments. See Note 1 for a description of the types of products and services from which each reportable segment derives its revenues.
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
Year Ended June 30, |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue by segment (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
$ |
10,259,300 |
|
|
|
$ |
9,253,473 |
|
|
|
$ |
8,753,549 |
|
|
Eliminations of inter-segment sales |
|
|
|
(1,563,943 |
) |
|
|
|
(1,006,103 |
) |
|
|
|
(1,464,410 |
) |
|
Wholesale Sales & Ancillary Services, net of eliminations (2) |
|
|
|
8,695,357 |
|
|
|
|
8,247,370 |
|
|
|
|
7,289,139 |
|
|
Direct-to-Consumer |
|
|
|
2,283,257 |
|
(a) |
|
|
1,451,669 |
|
(b) |
|
|
1,997,422 |
|
(c) |
|
|
|
$ |
10,978,614 |
|
|
|
$ |
9,699,039 |
|
|
|
$ |
9,286,561 |
|
|
(1)
The Secured Lending segment earns interest income from its lending activity and earns no revenue from the sales of precious metals. Therefore, no amounts are shown for the Secured Lending segment in the above table.
(2)The eliminations of inter-segment sales are reflected in the Wholesale Sales & Ancillary Services segment.
(a)
Includes $138.7 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(b)
Includes $14.3 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(c)
Includes $3.5 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
Year Ended June 30, |
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue by geographic region |
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
$ |
4,004,172 |
|
|
|
$ |
4,722,191 |
|
|
|
$ |
5,634,423 |
|
Europe |
|
|
|
4,910,399 |
|
|
|
|
4,290,701 |
|
|
|
|
2,780,015 |
|
Canada |
|
|
|
1,790,972 |
|
|
|
|
599,873 |
|
|
|
|
837,504 |
|
Asia Pacific |
|
|
|
258,098 |
|
|
|
|
80,997 |
|
|
|
|
26,891 |
|
Africa |
|
|
|
260 |
|
|
|
|
12 |
|
|
|
|
- |
|
Australia |
|
|
|
14,698 |
|
|
|
|
5,265 |
|
|
|
|
7,728 |
|
South America |
|
|
|
15 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
$ |
10,978,614 |
|
|
|
$ |
9,699,039 |
|
|
|
$ |
9,286,561 |
|
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
Year Ended June 30, |
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
Cost of sales by segment(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
$ |
10,174,345 |
|
|
|
$ |
9,168,700 |
|
|
|
$ |
8,626,733 |
|
Eliminations and adjustments |
|
|
|
(1,564,863 |
) |
|
|
|
(1,011,539 |
) |
|
|
|
(1,463,272 |
) |
Wholesale Sales & Ancillary Services, net of eliminations and adjustments |
|
|
|
8,609,482 |
|
|
|
|
8,157,161 |
|
|
|
|
7,163,461 |
|
Direct-to-Consumer, net of eliminations |
|
|
|
2,158,216 |
|
|
|
|
1,368,623 |
|
|
|
|
1,828,431 |
|
|
|
|
$ |
10,767,698 |
|
|
|
$ |
9,525,784 |
|
|
|
$ |
8,991,892 |
|
(1)The Secured Lending segment earns interest income from its lending activity and has no cost of sales of precious metals. Therefore, no amounts are shown for the Secured Lending segment in the above table.
Gross Profit and Gross Margin Percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
Year Ended June 30, |
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
Gross profit by segment(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
$ |
84,955 |
|
|
|
$ |
84,773 |
|
|
|
$ |
126,816 |
|
Eliminations and adjustments |
|
|
|
920 |
|
|
|
|
5,436 |
|
|
|
|
(1,138 |
) |
Wholesale Sales & Ancillary Services, net of eliminations and adjustments |
|
|
|
85,875 |
|
|
|
|
90,209 |
|
|
|
|
125,678 |
|
Direct-to-Consumer, net of eliminations |
|
|
|
125,041 |
|
|
|
|
83,046 |
|
|
|
|
168,991 |
|
|
|
|
$ |
210,916 |
|
|
|
$ |
173,255 |
|
|
|
$ |
294,669 |
|
Gross margin percentage by segment |
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
|
0.828 |
% |
|
|
|
0.916 |
% |
|
|
|
1.449 |
% |
Wholesale Sales & Ancillary Services, net of eliminations and adjustments |
|
|
|
0.988 |
% |
|
|
|
1.094 |
% |
|
|
|
1.724 |
% |
Direct-to-Consumer |
|
|
|
5.476 |
% |
|
|
|
5.721 |
% |
|
|
|
8.460 |
% |
Consolidated gross margin percentage |
|
|
|
1.921 |
% |
|
|
|
1.786 |
% |
|
|
|
3.173 |
% |
(1)
The Secured Lending segment earns interest income from its lending activity and earns no gross profit from the sales of precious metals. Therefore, no amounts are shown for the Secured Lending segment in the above table.
Operating Income and (Expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
Year Ended June 30, |
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating income (expenses) by segment |
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
$ |
(92,627 |
) |
|
|
$ |
(38,235 |
) |
|
|
$ |
(34,939 |
) |
Eliminations |
|
|
|
(508 |
) |
|
|
|
(123 |
) |
|
|
|
(247 |
) |
Wholesale Sales & Ancillary Services, net of eliminations |
|
|
$ |
(93,135 |
) |
|
|
$ |
(38,358 |
) |
|
|
$ |
(35,186 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services, net of eliminations |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses |
|
|
$ |
(59,019 |
) |
|
|
$ |
(45,968 |
) |
|
|
$ |
(40,181 |
) |
Depreciation and amortization expense |
|
|
|
(3,909 |
) |
|
|
|
(1,860 |
) |
|
|
|
(970 |
) |
Interest income |
|
|
|
15,134 |
|
|
|
|
15,730 |
|
|
|
|
12,523 |
|
Interest expense |
|
|
|
(37,709 |
) |
|
|
|
(28,252 |
) |
|
|
|
(19,660 |
) |
Earnings (losses) from equity method investments |
|
|
|
(2,982 |
) |
|
|
|
3,998 |
|
|
|
|
12,575 |
|
Other income, net |
|
|
|
1,299 |
|
|
|
|
1,064 |
|
|
|
|
161 |
|
Remeasurement gain (loss) on pre-existing equity interests |
|
|
|
(5,143 |
) |
|
|
|
16,669 |
|
|
|
|
— |
|
Unrealized (losses) gains on foreign exchange |
|
|
|
(806 |
) |
|
|
|
261 |
|
|
|
|
366 |
|
|
|
|
$ |
(93,135 |
) |
|
|
$ |
(38,358 |
) |
|
|
$ |
(35,186 |
) |
Direct-to-Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses |
|
|
$ |
(78,995 |
) |
|
|
$ |
(42,456 |
) |
|
|
$ |
(42,976 |
) |
Depreciation and amortization expense |
|
|
|
(19,007 |
) |
|
|
|
(9,273 |
) |
|
|
|
(11,204 |
) |
Interest income |
|
|
|
146 |
|
|
|
|
3 |
|
|
|
|
— |
|
Interest expense |
|
|
|
(2,255 |
) |
|
|
|
(2,838 |
) |
|
|
|
(4,098 |
) |
Earnings from equity method investments |
|
|
|
— |
|
|
|
|
14 |
|
|
|
|
— |
|
Other income, net |
|
|
|
— |
|
|
|
|
5 |
|
|
|
|
142 |
|
Unrealized gains (losses) on foreign exchange |
|
|
|
(535 |
) |
|
|
|
38 |
|
|
|
|
— |
|
|
|
|
$ |
(100,646 |
) |
|
|
$ |
(54,507 |
) |
|
|
$ |
(58,136 |
) |
Secured Lending |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses |
|
|
$ |
(1,179 |
) |
|
|
$ |
(1,376 |
) |
|
|
$ |
(2,125 |
) |
Depreciation and amortization expense |
|
|
|
(4 |
) |
|
|
|
(264 |
) |
|
|
|
(351 |
) |
Interest income |
|
|
|
10,668 |
|
|
|
|
11,435 |
|
|
|
|
9,708 |
|
Interest expense |
|
|
|
(6,239 |
) |
|
|
|
(8,441 |
) |
|
|
|
(7,770 |
) |
Earnings from equity method investments |
|
|
|
157 |
|
|
|
|
32 |
|
|
|
|
1 |
|
Other income, net |
|
|
|
732 |
|
|
|
|
1,002 |
|
|
|
|
2,360 |
|
|
|
|
$ |
4,135 |
|
|
|
$ |
2,388 |
|
|
|
$ |
1,823 |
|
Net Income Before Provision for Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
Year Ended June 30, |
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) before provision for income taxes by segment |
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
$ |
(7,260 |
) |
|
|
$ |
51,851 |
|
|
|
$ |
90,492 |
|
Direct-to-Consumer |
|
|
|
24,395 |
|
|
|
|
28,539 |
|
|
|
|
110,855 |
|
Secured Lending |
|
|
|
4,135 |
|
|
|
|
2,388 |
|
|
|
|
1,823 |
|
|
|
|
$ |
21,270 |
|
|
|
$ |
82,778 |
|
|
|
$ |
203,170 |
|
Advertising Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
Year Ended June 30, |
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
Advertising expense by segment |
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
$ |
(3,849 |
) |
|
|
$ |
(2,402 |
) |
|
|
$ |
(1,639 |
) |
Direct-to-Consumer |
|
|
|
(19,625 |
) |
|
|
|
(12,620 |
) |
|
|
|
(14,001 |
) |
Secured Lending |
|
|
|
(224 |
) |
|
|
|
(231 |
) |
|
|
|
(237 |
) |
|
|
|
$ |
(23,698 |
) |
|
|
$ |
(15,253 |
) |
|
|
$ |
(15,877 |
) |
Capital Expenditures for Long-Lived Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
Year Ended June 30, |
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
Capital expenditures for long-lived assets by segment |
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
$ |
(8,973 |
) |
|
|
$ |
(6,522 |
) |
|
|
$ |
(3,173 |
) |
Direct-to-Consumer |
|
|
|
(1,705 |
) |
|
|
|
(9,249 |
) |
|
|
|
(6,610 |
) |
|
|
|
$ |
(10,678 |
) |
|
|
$ |
(15,771 |
) |
|
|
$ |
(9,783 |
) |
Inventories
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
|
June 30, 2024 |
|
Inventories by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
1,049,200 |
|
|
|
$ |
924,804 |
|
Direct-to-Consumer |
|
|
230,345 |
|
|
|
|
172,340 |
|
|
|
$ |
1,279,545 |
|
|
|
$ |
1,097,144 |
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
|
June 30, 2024 |
|
Inventories by geographic region |
|
|
|
|
|
|
|
United States |
|
$ |
1,150,678 |
|
|
|
$ |
989,272 |
|
North America, excluding United States |
|
|
52,225 |
|
|
|
|
53,648 |
|
Europe |
|
|
32,987 |
|
|
|
|
18,519 |
|
Asia |
|
|
43,655 |
|
|
|
|
35,705 |
|
|
|
$ |
1,279,545 |
|
|
|
$ |
1,097,144 |
|
Total Assets
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
|
June 30, 2024 |
|
Total assets by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services (1) |
|
$ |
1,485,370 |
|
|
|
$ |
1,262,385 |
|
Eliminations |
|
|
(211,144 |
) |
|
|
|
(240,380 |
) |
Wholesale Sales & Ancillary Services, net of eliminations |
|
|
1,274,226 |
|
|
|
|
1,022,005 |
|
Direct-to-Consumer |
|
|
844,760 |
|
|
|
|
690,547 |
|
Secured Lending |
|
|
96,445 |
|
|
|
|
115,268 |
|
|
|
$ |
2,215,431 |
|
|
|
$ |
1,827,820 |
|
(1)Our equity method investments and precious metals held under financing arrangements are primarily recorded within our Wholesale Sales & Ancillary Services segment.
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
|
June 30, 2024 |
|
Total assets by geographic region |
|
|
|
|
|
|
|
United States |
|
$ |
1,917,452 |
|
|
|
$ |
1,539,395 |
|
North America, excluding United States |
|
|
169,864 |
|
|
|
|
188,100 |
|
Europe |
|
|
40,625 |
|
|
|
|
20,512 |
|
Asia |
|
|
87,490 |
|
|
|
|
79,813 |
|
|
|
$ |
2,215,431 |
|
|
|
$ |
1,827,820 |
|
Long-term Assets
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
|
June 30, 2024 |
|
Long-term assets by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
120,348 |
|
|
|
$ |
109,643 |
|
Direct-to-Consumer |
|
|
349,394 |
|
|
|
|
273,933 |
|
Secured Lending |
|
|
2,194 |
|
|
|
|
2,041 |
|
|
|
$ |
471,936 |
|
|
|
$ |
385,617 |
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
|
June 30, 2024 |
|
Long-term assets by geographic region |
|
|
|
|
|
|
|
United States |
|
$ |
334,199 |
|
|
|
$ |
238,169 |
|
North America, excluding United States |
|
|
106,405 |
|
|
|
|
114,475 |
|
Europe |
|
|
2 |
|
|
|
|
2 |
|
Asia |
|
|
31,330 |
|
|
|
|
32,971 |
|
|
|
$ |
471,936 |
|
|
|
$ |
385,617 |
|
Goodwill
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
|
June 30, 2024 |
|
Goodwill by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
39,191 |
|
|
|
$ |
29,915 |
|
Direct-to-Consumer(1) |
|
|
189,459 |
|
|
|
|
170,022 |
|
|
|
$ |
228,650 |
|
|
|
$ |
199,937 |
|
(1)
Direct-to-Consumer segment’s goodwill balance is net of $1.4 million accumulated impairment losses.
Intangible assets
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
|
June 30, 2024 |
|
Intangible assets by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
18,322 |
|
|
|
$ |
12,586 |
|
Direct-to-Consumer(1) |
|
|
118,992 |
|
|
|
|
89,077 |
|
|
|
$ |
137,314 |
|
|
|
$ |
101,663 |
|
(1)
Direct-to-Consumer segment’s intangible asset balance is net of $1.3 million accumulated impairment losses.
|