Cover
Cover - shares | 3 Months Ended | |
Apr. 30, 2022 | May 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-8344 | |
Entity Registrant Name | BATH & BODY WORKS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 31-1029810 | |
Entity Address, Address Line One | Three Limited Parkway | |
Entity Address, City or Town | Columbus, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43230 | |
City Area Code | (614) | |
Local Phone Number | 415-7000 | |
Entity Registrant Former Name | Not Applicable | |
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 | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.50 Par Value | |
Trading Symbol | BBWI | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 228,735,560 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000701985 | |
Current Fiscal Year End Date | --01-28 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | ||
Income Statement [Abstract] | |||
Net Sales | $ 1,450 | $ 1,470 | |
Costs of Goods Sold, Buying and Occupancy | (781) | (728) | |
Gross Profit | 669 | 742 | |
General, Administrative and Store Operating Expenses | (389) | (405) | |
Operating Income | 280 | 337 | |
Interest Expense | (89) | (114) | |
Other Income (Loss) | 1 | (104) | |
Income from Continuing Operations Before Income Taxes | 192 | 119 | |
Provision for Income Taxes | 37 | 28 | |
Net Income from Continuing Operations | 155 | 91 | |
Income from Discontinued Operations, Net of Tax | 0 | 186 | |
Net Income | $ 155 | $ 277 | [1] |
Net Income per Basic Share | |||
Continuing Operations (in USD per share) | $ 0.65 | $ 0.32 | |
Discontinued Operations (in USD per share) | 0 | 0.67 | |
Total Net Income Per Basic Share (in USD per share) | 0.65 | 0.99 | |
Net Income per Diluted Share | |||
Continuing Operations (in USD per share) | 0.64 | 0.32 | |
Discontinued Operations (in USD per share) | 0 | 0.66 | |
Total Net Income Per Diluted Share (in USD per share) | $ 0.64 | $ 0.97 | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 155 | $ 277 | [1] |
Other Comprehensive Income (Loss), Net of Tax: | |||
Foreign Currency Translation | 0 | 5 | |
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | (3) | |
Reclassification of Cash Flow Hedges to Earnings | 0 | 1 | |
Current-period Other Comprehensive Income | 0 | 3 | |
Total Comprehensive Income | $ 155 | $ 280 | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Current Assets: | |||
Cash and Cash Equivalents | $ 651 | $ 1,979 | $ 2,475 |
Accounts Receivable, Net | 167 | 240 | 110 |
Inventories | 820 | 709 | 636 |
Other | 114 | 81 | 94 |
Current Assets of Discontinued Operations | 0 | 0 | 1,297 |
Total Current Assets | 1,752 | 3,009 | 4,612 |
Property and Equipment, Net | 1,059 | 1,009 | 994 |
Operating Lease Assets | 1,058 | 1,021 | 993 |
Goodwill | 628 | 628 | 628 |
Trade Names | 165 | 165 | 165 |
Deferred Income Taxes | 44 | 45 | 61 |
Other Assets | 154 | 149 | 146 |
Other Assets of Discontinued Operations | 0 | 0 | 2,947 |
Total Assets | 4,860 | 6,026 | 10,546 |
Current Liabilities: | |||
Accounts Payable | 470 | 435 | 369 |
Accrued Expenses and Other | 534 | 651 | 678 |
Current Operating Lease Liabilities | 163 | 170 | 149 |
Income Taxes | 73 | 34 | 140 |
Current Liabilities of Discontinued Operations | 0 | 0 | 1,344 |
Total Current Liabilities | 1,240 | 1,290 | 2,680 |
Deferred Income Taxes | 157 | 157 | 144 |
Long-term Debt | 4,856 | 4,854 | 5,344 |
Long-term Operating Lease Liabilities | 1,019 | 989 | 963 |
Other Long-term Liabilities | 246 | 253 | 285 |
Other Long-term Liabilities of Discontinued Operations | 0 | 0 | 1,663 |
Shareholders’ Equity (Deficit): | |||
Preferred Stock - $1.00 par value; 10 shares authorized; none issued | 0 | 0 | 0 |
Common Stock - $0.50 par value; 1,000 shares authorized; 251, 269 and 288 shares issued; 236, 254 and 277 shares outstanding, respectively | 126 | 134 | 144 |
Paid-in Capital | 618 | 893 | 903 |
Accumulated Other Comprehensive Income | 80 | 80 | 86 |
Retained Earnings (Accumulated Deficit) | (2,661) | (1,803) | (1,144) |
Less: Treasury Stock, at Average Cost; 15, 15 and 11 shares, respectively | (822) | (822) | (523) |
Total Shareholders’ Equity (Deficit) | (2,659) | (1,518) | (534) |
Noncontrolling Interest | 1 | 1 | 1 |
Total Equity (Deficit) | (2,658) | (1,517) | (533) |
Total Liabilities and Equity (Deficit) | $ 4,860 | $ 6,026 | $ 10,546 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in USD per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.50 | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Common stock, shares issued (in shares) | 251,000 | 269,000 | 288,000 |
Common Stock, shares outstanding (in shares) | 236,000 | 254,000 | 277,000 |
Treasury stock (in shares) | 15,000 | 15,000 | 11,000 |
CONSOLIDATED STATEMENTS OF TOTA
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Millions | Total | Other Share Repurchase Program | Accelerated Share Repurchase Program | Common Stock | Common StockOther Share Repurchase Program | Common StockAccelerated Share Repurchase Program | Paid-In Capital | Paid-In CapitalAccelerated Share Repurchase Program | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated Deficit) | Treasury Stock, at Average Cost | Treasury Stock, at Average CostOther Share Repurchase Program | Treasury Stock, at Average CostAccelerated Share Repurchase Program | [2] | Noncontrolling Interest | ||
Ending Balance (in shares) | 278,000 | ||||||||||||||||
Beginning Balance (in shares) at Jan. 30, 2021 | 278,000 | ||||||||||||||||
Beginning Balance at Jan. 30, 2021 | $ (661) | $ 143 | $ 891 | $ 83 | $ (1,421) | $ (358) | $ 1 | ||||||||||
Net Income | 277 | [1] | 277 | ||||||||||||||
Other Comprehensive Income | 3 | 3 | |||||||||||||||
Total Comprehensive Income | 280 | 3 | 277 | ||||||||||||||
Repurchases of Common Stock (in shares) | (3,000) | ||||||||||||||||
Repurchases of Common Stock | (165) | (165) | |||||||||||||||
Share-based Compensation and Other (in shares) | 2,000 | ||||||||||||||||
Share-based Compensation and Other | 13 | $ 1 | 12 | ||||||||||||||
Ending Balance at May. 01, 2021 | $ (533) | $ 144 | 903 | 86 | (1,144) | (523) | 1 | ||||||||||
Ending Balance (in shares) | 277,000 | 277,000 | |||||||||||||||
Ending Balance (in shares) | 254,000 | 254,000 | |||||||||||||||
Beginning Balance (in shares) at Jan. 29, 2022 | 254,000 | 254,000 | |||||||||||||||
Beginning Balance at Jan. 29, 2022 | $ (1,517) | $ 134 | 893 | 80 | (1,803) | (822) | 1 | ||||||||||
Net Income | 155 | 155 | |||||||||||||||
Other Comprehensive Income | 0 | ||||||||||||||||
Total Comprehensive Income | 155 | 155 | |||||||||||||||
Cash Dividends | (48) | (48) | |||||||||||||||
Repurchases of Common Stock (in shares) | (13,624) | [2] | (5,000) | (14,000) | |||||||||||||
Repurchases of Common Stock | $ (235) | $ (1,000) | $ (200) | $ (235) | $ (800) | ||||||||||||
Treasury Share Retirement | 0 | $ (9) | (61) | (965) | 1,035 | ||||||||||||
Share-based Compensation and Other (in shares) | 1,000 | ||||||||||||||||
Share-based Compensation and Other | (13) | $ 1 | (14) | ||||||||||||||
Ending Balance at Apr. 30, 2022 | $ (2,658) | $ 126 | $ 618 | $ 80 | $ (2,661) | $ (822) | $ 1 | ||||||||||
Ending Balance (in shares) | 236,000 | 236,000 | |||||||||||||||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. | ||||||||||||||||
[2] | Repurchased amounts exclude the shares received at final settlement subsequent to April 30, 2022, as well as the $200 million paid during the first quarter related to those shares. |
CONSOLIDATED STATEMENTS OF TO_2
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT) (Parenthetical) | 3 Months Ended |
Apr. 30, 2022$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Cash dividends (in USD per share) | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | [1] | |
Operating Activities: | |||
Net Income | $ 155 | $ 277 | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Depreciation of Long-lived Assets | 53 | 129 | |
Loss on Extinguishment of Debt | 0 | 105 | |
Share-based Compensation Expense | 12 | 15 | |
Deferred Income Taxes | 0 | 10 | |
Changes in Assets and Liabilities: | |||
Accounts Receivable | 72 | 49 | |
Inventories | (111) | (123) | |
Accounts Payable, Accrued Expenses and Other | (97) | (163) | |
Income Taxes Payable | 35 | 57 | |
Other Assets and Liabilities | (53) | (107) | |
Net Cash Provided by Operating Activities | 66 | 249 | |
Investing Activities: | |||
Capital Expenditures | (88) | (65) | |
Other Investing Activities | 0 | 9 | |
Net Cash Used for Investing Activities | (88) | (56) | |
Financing Activities: | |||
Payments of Long-term Debt | 0 | (1,130) | |
Repurchases of Common Stock | (1,227) | (155) | |
Dividends Paid | (48) | 0 | |
Tax Payments related to Share-based Awards | (26) | (33) | |
Proceeds from Stock Option Exercises | 2 | 30 | |
Other Financing Activities | (7) | (3) | |
Net Cash Used for Financing Activities | (1,306) | (1,291) | |
Effects of Exchange Rate Changes on Cash and Cash Equivalents and Restricted Cash | 0 | 2 | |
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (1,328) | (1,096) | |
Cash and Cash Equivalents and Restricted Cash, Beginning of Period | 1,979 | 3,933 | |
Cash and Cash Equivalents and Restricted Cash, End of Period | $ 651 | $ 2,837 | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Apr. 30, 2022 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Bath & Body Works, Inc. ("Bath & Body Works" or the "Company") is a specialty retailer of home fragrance, body care and soaps and sanitizer products. Through the Bath & Body Works, White Barn and other brand names, the Company sells merchandise through Company-operated specialty retail stores in the United States of America ("U.S.") and Canada, and through its websites and other channels. The Company's international operations are primarily through franchise, license and wholesale partners. The Company operates as and reports a single segment that includes all of its continuing operations. On August 2, 2021, the Company completed the tax-free spin-off of its Victoria's Secret business, which included the Victoria's Secret and PINK brands, into an independent publicly traded company (the "Separation"). Accordingly, the operating results of, and costs to separate, the Victoria's Secret business are reported in Income from Discontinued Operations, Net of Tax in the Consolidated Statements of Income for all periods presented. In addition, the related assets and liabilities are reported as Assets and Liabilities of Discontinued Operations on the Consolidated Balance Sheets. All amounts and disclosures included in the Notes to Consolidated Financial Statements reflect only the Company's continuing operations unless otherwise noted. For additional information, see Note 2, "Discontinued Operations." COVID-19 The coronavirus ("COVID-19") pandemic has created significant public health concerns as well as economic disruption, uncertainty and volatility. The Company remains focused on providing a safe store environment for its customers and associates while delivering an engaging shopping experience, and in establishing the necessary protocols to ensure the safe operations of its distribution and fulfillment centers and corporate offices. As expected, the Company has experienced channel and product category shifts as customer mindset and needs have shifted coming out of the pandemic. The Company continues to monitor the COVID-19 pandemic and the effects on its operations and financial performance. There remains the potential for future COVID-19-related closures or operating restrictions, which could materially impact the Company's operations and financial performance in future periods. Fiscal Year The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “first quarter of 2022” and “first quarter of 2021” refer to the thirteen-week periods ended April 30, 2022 and May 1, 2021, respectively. Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee's net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of all unconsolidated entities is included in Other Income (Loss) in the Consolidated Statements of Income. The Company’s equity method investments are required to be reviewed for impairment when it is determined there may be an other-than-temporary loss in value. Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended April 30, 2022 and May 1, 2021 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2021 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods. Seasonality of Business Due to the seasonal variations in the retail industry, the results of operations for the interim period are not necessarily indicative of the results expected for the full fiscal year. Restricted Cash During 2020, the Company placed cash on deposit with certain financial institutions as collateral for their lending commitments to certain former Victoria's Secret subsidiaries. These deposits totaled $30 million as of May 1, 2021 and were recorded in Other Current Assets on the May 1, 2021 Consolidated Balance Sheet. During the second quarter of 2021, these lending commitments were terminated which released the restrictions on this cash. Accordingly, the balance was reclassified to Cash and Cash Equivalents during the second quarter of 2021. The following table summarizes the location of the Company's Cash and Cash Equivalents and restricted cash in the Consolidated Balance Sheets as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Cash and Cash Equivalents $ 651 $ 1,979 $ 2,475 Current Assets of Discontinued Operations — — 332 Other Current Assets — — 30 Total Cash and Cash Equivalents and Restricted Cash $ 651 $ 1,979 $ 2,837 Derivative Financial Instruments The Company's Canadian dollar denominated earnings are subject to exchange rate risk as substantially all the merchandise sold in Canada is sourced through U.S. dollar transactions. The Company uses foreign currency forward contracts designated as cash flow hedges to mitigate this foreign currency exposure. Amounts are reclassified from accumulated other comprehensive income (loss) upon sale of the hedged merchandise to the customer. These gains and losses are recognized in Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income. All designated cash flow hedges are recorded on the Consolidated Balance Sheets at fair value. The fair value of designated cash flow hedges is not significant for any period presented. The Company does not use derivative financial instruments for trading purposes. Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. The Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, commercial paper and bank deposits. The Company also periodically reviews the relative credit standing of franchise, license and wholesale partners and other entities to which the Company grants credit terms in the normal course of business. The Company determines the required allowance for expected credit losses using information such as customer credit history and financial condition. Amounts are recorded to the allowance when it is determined that expected credit losses may occur. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. Recently Issued Accounting Pronouncements The Company did not adopt any new accounting standards during the first quarter of 2022 that had a material impact on the Company's consolidated results of operations, financial position or cash flows. In addition, as of June 2, 2022, there were no new accounting standards that the Company has not yet adopted that are expected to have a material impact on the Company's consolidated results of operations, financial position or cash flows. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Apr. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Victoria's Secret & Co. Spin-Off On July 9, 2021, the Company announced that its Board of Directors (the "Board") approved the previously announced Separation of the Victoria’s Secret business into an independent, publicly traded company, Victoria's Secret & Co. On August 2, 2021 (the "Distribution Date"), after the New York Stock Exchange ("NYSE") market closing, the Separation was completed. The Separation was achieved through the Company's tax-free distribution (the "Distribution") of 100% of the shares of Victoria's Secret & Co. common stock to holders of L Brands, Inc. common stock as of the close of business on the record date of July 22, 2021. The Company's stockholders of record received one share of Victoria’s Secret & Co. common stock for every three shares of the Company's common stock. On August 3, 2021, Victoria’s Secret & Co. became an independent, publicly-traded company trading on the NYSE under the stock symbol "VSCO." The Company retained no ownership interest in Victoria’s Secret & Co. following the Separation. The Company recognized a net reduction to Retained Earnings (Accumulated Deficit) of $175 million as a result of the Separation, primarily related to the transfer of certain assets and liabilities associated with its Victoria's Secret business to Victoria's Secret & Co., net of $976 million of cash payments received from Victoria's Secret & Co. in connection with the Separation. Assets transferred to Victoria's Secret & Co. included Cash and Cash Equivalents of $282 million held by Victoria's Secret subsidiaries on the Distribution Date. In connection with the Separation, the Company entered into several agreements with Victoria's Secret & Co. that govern the relationship of the parties following the spin-off, including the Separation and Distribution Agreement, the Transition Services Agreements, the Tax Matters Agreement, the Employee Matters Agreement and the Domestic Transportation Services Agreement. Under the terms of the Transition Services Agreements, the Company provides to Victoria's Secret & Co. various services or functions, including human resources, payroll and certain logistics functions. Additionally, Victoria's Secret & Co. provides to the Company various services or functions, including information technology, certain logistics functions, customer marketing and customer call center services. Generally, these services will be performed for a period of up to two years following the Distribution, except for information technology services, which will be provided for a period of up to three years following the Distribution and may be extended for a maximum of two additional one-year periods subject to increased administrative charges. Consideration and costs for the transition services are determined using several billing methodologies as described in the agreements, including customary billing, pass-through billing, percent of sales billing or fixed fee billing. Consideration for transition services provided to Victoria's Secret & Co. are recorded within the Consolidated Statement of Income based on the nature of the service and as an offset to expenses incurred to provide the services. Costs for transition services provided by Victoria's Secret & Co. are recorded within the Consolidated Statement of Income based on the nature of the service. During the first quarter of 2022, the Company recognized consideration of $19 million and recognized costs of $20 million pursuant to the Transition Service Agreements. Under the terms of the Domestic Transportation Services Agreement, the Company provides transportation services for Victoria's Secret & Co. merchandise in the U.S. and Canada for an initial term of three years following the Distribution, which term will thereafter continuously renew unless and until Victoria’s Secret & Co. or the Company elects to terminate the arrangement upon 18 or 36 months’ prior written notice, respectively. Consideration for the transportation services is determined using customary billing and fixed billing methodologies, which are described in the agreement, and are subject to an administrative charge. Consideration for logistics services provided to Victoria's Secret & Co. are recorded within Costs of Goods Sold, Buying and Occupancy in the Consolidated Statement of Income and as an offset to expenses incurred to provide the services. During the first quarter of 2022, the Company recognized consideration of $18 million pursuant to the Domestic Transportation Services Agreement. In conjunction with the Separation, the Company has contingent obligations relating to certain lease payments under the current terms of noncancelable leases. For additional information, see Note 12, "Commitments and Contingencies." Financial Information of Discontinued Operations Income from Discontinued Operations, Net of Tax in the Consolidated Statements of Income reflects the after-tax results of the Victoria's Secret business and Separation-related fees, and does not include any allocation of general corporate overhead expense or interest expense of the Company. The Company did not report any results from discontinued operations in the first quarter of 2022. The following table summarizes the significant line items included in Income from Discontinued Operations, Net of Tax in the first quarter of 2021 Consolidated Statement of Income: (in millions) Net Sales $ 1,554 Costs of Goods Sold, Buying and Occupancy (882) General, Administrative and Store Operating Expenses (a) (438) Income from Discontinued Operations Before Income Taxes 234 Provision for Income Taxes 48 Income from Discontinued Operations, Net of Tax $ 186 _______________ (a) Includes Separation-related expenses of $10 million. Prior to the Separation, these costs were reported in the Other category under the Company's previous segment reporting. The information presented as discontinued operations on the Consolidated Balance Sheets includes certain assets and liabilities that were transferred to Victoria’s Secret & Co. pursuant to the Separation agreements, and excludes certain liabilities that were retained by the Company in connection with the Separation. There were no assets or liabilities classified as discontinued operations as of April 30, 2022 or January 29, 2022. The following table summarizes the carrying value of the significant classes of assets and liabilities classified as discontinued operations as of May 1, 2021: (in millions) Cash and Cash Equivalents $ 332 Accounts Receivable, Net 111 Inventories 761 Other 93 Current Assets of Discontinued Operations 1,297 Property and Equipment, Net 1,036 Operating Lease Assets 1,602 Trade Names 246 Deferred Income Taxes 11 Other Assets 52 Other Assets of Discontinued Operations $ 2,947 Accounts Payable $ 366 Accrued Expenses and Other 613 Current Operating Lease Liabilities 356 Income Taxes 9 Current Liabilities of Discontinued Operations 1,344 Deferred Income Taxes 100 Long-term Operating Lease Liabilities 1,541 Other Long-term Liabilities 22 Other Long-term Liabilities of Discontinued Operations $ 1,663 The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. The Company did not report any cash flows from discontinued operations in the first quarter of 2022. The following table summarizes Depreciation, Share-based Compensation Expense and Capital Expenditures of discontinued operations for the first quarter of 2021: (in millions) Depreciation of Long-Lived Assets $ 80 Share-based Compensation Expense 7 Capital Expenditures (19) |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 30, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Revenue Recognition Accounts receivable, net from revenue-generating activities were $77 million as of April 30, 2022, $64 million as of January 29, 2022 and $62 million as of May 1, 2021. Accounts receivable primarily relate to amounts due from the Company's franchise, license and wholesale partners. Under these arrangements, payment terms are typically 45 to 75 days. The Company records deferred revenue when cash payments are received in advance of transfer of control of goods or services. Deferred revenue primarily relates to gift cards, loyalty points and direct channel shipments, which are all impacted by seasonal and holiday-related sales patterns. Deferred revenue, which is recorded within Accrued Expenses and Other on the Consolidated Balance Sheets, was $133 million as of April 30, 2022, $148 million as of January 29, 2022 and $108 million as of May 1, 2021. The Company recognized $56 million as revenue during the first quarter of 2022 from amounts recorded as deferred revenue at the beginning of the year. The following table provides a disaggregation of Net Sales for the first quarters of 2022 and 2021: First Quarter 2022 2021 (in millions) Stores - U.S. and Canada $ 1,059 $ 1,051 Direct - U.S. and Canada 318 349 International (a) 73 70 Total Net Sales $ 1,450 $ 1,470 _______________ (a) Results include royalties associated with franchised stores and wholesale sales. The Company’s net sales outside of the U.S. include sales from Company-operated stores and its e-commerce site in Canada, royalties associated with franchised stores and wholesale sales. Certain of these sales are subject to the impact of fluctuations in foreign currency. The Company’s net sales outside of the U.S. totaled $137 million and $117 million for the first quarters of 2022 and 2021, respectively. |
Earnings Per Share and Sharehol
Earnings Per Share and Shareholders’ Equity (Deficit) | 3 Months Ended |
Apr. 30, 2022 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Earnings Per Share and Shareholders’ Equity (Deficit) | Earnings Per Share and Shareholders’ Equity (Deficit) Earnings Per Share Earnings per basic share is computed based on the weighted-average number of common shares outstanding. Earnings per diluted share include the weighted-average effect of dilutive restricted stock units, performance share units and stock options (collectively, "Dilutive Awards") on the weighted-average common shares outstanding. The following table provides the weighted-average shares utilized for the calculation of basic and diluted earnings per share for the first quarters of 2022 and 2021: First Quarter 2022 2021 (in millions) Common Shares 255 288 Treasury Shares (15) (9) Basic Shares 240 279 Effect of Dilutive Awards 3 5 Diluted Shares 243 284 Anti-dilutive Awards (a) — 1 _______________ (a) The awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. Common Stock Share Repurchases March 2021 Repurchase Program In March 2021, the Company's Board authorized a $500 million share repurchase plan (the "March 2021 Program"), which replaced the $79 million remaining under a March 2018 repurchase program. The Company repurchased the following shares of its common stock during the first quarter of 2021 under the March 2021 Program: Repurchase Program Amount Authorized Shares Amount Average Stock Price (in millions) (in thousands) (in millions) March 2021 (a) $ 500 2,608 $ 165 $ 63.31 _______________ (a) Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. There were share repurchases of $10 million reflected in Accounts Payable on the May 1, 2021 Consolidated Balance Sheet. February 2022 Repurchase Program In February 2022, the Company's Board authorized a new $1.5 billion share repurchase program (the "February 2022 Program"). As part of the February 2022 Program, the Company entered into an accelerated share repurchase program ("ASR") under which the Company repurchased $1 billion of its own outstanding common stock. Pursuant to the Board's authorization, the Company made other open market share repurchases under the February 2022 Program during the first quarter of 2022. On February 4, 2022, the Company delivered $1 billion to the ASR bank, and the bank delivered 13.6 million shares of common stock to the Company (the "Initial Shares"). Pursuant to the terms of the ASR, the Initial Shares represented 80% of the number of shares determined by dividing the $1 billion Company payment by the closing price of its common stock on February 2, 2022. At final settlement in May 2022, the Company received an additional 6.7 million shares of its common stock from the ASR bank, which were retired upon receipt. The final number of shares of common stock delivered under the ASR was based generally upon a discount to the average daily Rule 10b-18 volume-weighted average price at which the shares of common stock traded during the regular trading sessions on the NYSE during the term of the repurchase period. As of April 30, 2022, the $1 billion payment to the ASR bank was recognized as a reduction to Shareholder's Equity (Deficit), consisting of an $800 million increase in Treasury Stock, which reflected the value of the Initial Shares, and a $200 million decrease in Paid-in Capital, which reflected the value of the common stock pending the final settlement of the ASR. The delivery of the Initial Shares resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net income per share for the first quarter of 2022. The $200 million recorded in Paid-in Capital as of April 30, 2022 will be reclassified in the second quarter of 2022 in connection with the final settlement of the ASR. The Company repurchased the following shares of its common stock during the first quarter of 2022 under the February 2022 Program: Repurchase Program Amount Authorized Shares Amount Average Stock Price (in millions) (in thousands) (in millions) February 2022 $ 1,500 4,721 $ 235 $ 49.81 February 2022 - Accelerated Share Repurchase Program (a) 13,624 800 58.72 Total 18,345 $ 1,035 _______________ (a) Repurchased amounts exclude the shares received at final settlement subsequent to April 30, 2022, as well as the $200 million paid during the first quarter related to those shares. The February 2022 Program had $265 million of remaining authority as of April 30, 2022. There were share repurchases of $8 million reflected in Accounts Payable on the April 30, 2022 Consolidated Balance Sheet. Subsequent to April 30, 2022, the Company repurchased an additional 1.3 million shares of its common stock for $62 million under the February 2022 Program. Common Stock Retirement In accordance with the Company's Board of Directors' resolution, shares of common stock repurchased under the February 2022 Program were to be retired and cancelled upon repurchase, including the Initial Shares. As a result, the Company retired 18 million shares repurchased under the February 2022 Program during the first quarter of 2022, which resulted in reductions of $9 million in the par value of Common Stock, $61 million in Paid-in Capital and $965 million in Retained Earnings (Accumulated Deficit). Dividends The Company's Board suspended the Company's quarterly cash dividend beginning in the second quarter of 2020. In March 2021, the Company's Board reinstated the annual dividend at $0.60 per share, beginning with the quarterly dividend paid in June 2021. In February 2022, the Company's Board increased the annual dividend to $0.80 per share, beginning with the quarterly dividend paid in March 2022. Under the authority and declaration of the Board, the Company paid the following dividend during the first quarter of 2022: Ordinary Dividends Total Paid (per share) (in millions) 2022 First Quarter $ 0.20 $ 48 In May 2022, the Company's Board declared the second quarter 2022 ordinary dividend of $0.20 per share payable on June 17, 2022 to shareholders of record at the close of business on June 3, 2022. |
Inventories
Inventories | 3 Months Ended |
Apr. 30, 2022 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The following table provides details of Inventories as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Finished Goods Merchandise $ 627 $ 521 $ 503 Raw Materials and Merchandise Components 193 188 133 Total Inventories $ 820 $ 709 $ 636 Inventories are principally valued at the lower of cost or net realizable value, on an average cost basis. |
Long-Lived Assets
Long-Lived Assets | 3 Months Ended |
Apr. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-Lived Assets The following table provides details of Property and Equipment, Net as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Property and Equipment, at Cost $ 2,669 $ 2,583 $ 2,415 Accumulated Depreciation and Amortization (1,610) (1,574) (1,421) Property and Equipment, Net $ 1,059 $ 1,009 $ 994 Depreciation expense from continuing operations was $53 million and $49 million for the first quarters of 2022 and 2021, respectively. |
Equity Investments
Equity Investments | 3 Months Ended |
Apr. 30, 2022 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments | Equity Investments Easton The Company has land and other investments in Easton, a planned community in Columbus, Ohio, that integrates office, hotel, retail, residential and recreational space. These investments, totaling $126 million as of April 30, 2022, $126 million as of January 29, 2022 and $120 million as of May 1, 2021, are recorded in Other Assets on the Consolidated Balance Sheets. Included in the Company’s Easton investments are equity interests in Easton Town Center, LLC (“ETC”) and Easton Gateway, LLC (“EG”), entities that own and develop commercial entertainment and shopping centers. The Company’s investments in ETC and EG are accounted for using the equity method of accounting. The Company has majority financial interests in ETC and EG, but another unaffiliated member manages them, and certain significant decisions regarding ETC and EG require the consent of unaffiliated members in addition to the Company. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. For the first quarter of 2022, the Company’s effective tax rate was 19.4% compared to 23.7% in the first quarter of 2021. The 2022 and 2021 first quarter rates were lower than the Company's combined estimated federal and state statutory rates primarily due to the recognition of excess tax benefits recorded through the Consolidated Statements of Income on share-based awards that vested. Income taxes paid were $8 million and $10 million for the first quarters of 2022 and 2021, respectively. |
Long-term Debt and Borrowing Fa
Long-term Debt and Borrowing Facilities | 3 Months Ended |
Apr. 30, 2022 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-term Debt and Borrowing Facilities | Long-term Debt and Borrowing Facilities The following table provides the Company’s outstanding long-term debt balance, net of unamortized debt issuance costs and discounts, as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Senior Debt with Subsidiary Guarantee $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) $ — $ — $ 319 $320 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes") 317 316 493 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) 281 281 279 $500 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 497 497 497 $500 million, 7.500% Fixed Interest Rate Notes due June 2029 ("2029 Notes") 490 489 488 $1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes") 990 990 989 $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 992 992 991 $700 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 694 694 694 Total Senior Debt with Subsidiary Guarantee $ 4,261 $ 4,259 $ 4,750 Senior Debt $350 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 349 $ 349 $ 348 $247 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 246 246 246 Total Senior Debt 595 595 594 Total Long-term Debt $ 4,856 $ 4,854 $ 5,344 Repurchases of Notes In September 2021, the Company completed the tender offers to purchase $270 million of its outstanding 2023 Notes and $180 million of its outstanding 2025 Notes for an aggregate purchase price of $532 million. Additionally, in October 2021, the Company redeemed the remaining $50 million of its outstanding 2023 Notes for $54 million. The Company recognized a pre-tax loss related to this extinguishment of debt of $89 million (after-tax loss of $68 million), which includes the write-offs of unamortized issuance costs, in the third quarter of 2021. In April 2021, the Company redeemed the remaining $285 million of its outstanding 5.625% senior notes due February 2022 and $750 million of its outstanding 6.875% senior secured notes due July 2025. The Company recognized a pre-tax loss related to this extinguishment of debt of $105 million (after-tax loss of $80 million), which includes the write-offs of unamortized issuance costs. This loss is included in Other Income (Loss) in the first quarter of 2021 Consolidated Statement of Income. Asset-backed Revolving Credit Facility The Company and certain of the Company's 100% owned subsidiaries guarantee and pledge collateral to secure an asset-backed revolving credit facility (“ABL Facility”). The ABL Facility, which allows borrowings and letters of credit in U.S. dollars or Canadian dollars, has aggregate commitments of $750 million and an expiration date in August 2026. Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on the Company's eligible U.S. and Canadian credit card receivables, accounts receivable, inventory and eligible real property, or (ii) the aggregate commitment. If at any time, the outstanding amount under the ABL Facility exceeds the lesser of (i) the borrowing base and (ii) the aggregate commitment, the Company is required to repay the outstanding amounts under the ABL Facility to the extent of such excess. As of April 30, 2022, the Company's borrowing base was $620 million, and it had no borrowings outstanding under the ABL Facility. The ABL Facility supports the Company’s letter of credit program. The Company had $16 million of outstanding letters of credit as of April 30, 2022 that reduced its availability under the ABL Facility. As of April 30, 2022, the Company's availability under the ABL Facility was $604 million. As of April 30, 2022, the ABL Facility fees related to committed and unutilized amounts were 0.25% per annum, and the fees related to outstanding letters of credit were 1.25% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings was the London Interbank Offered Rate plus 1.25% per annum. The interest rate on outstanding Canadian dollar-denominated borrowings was the Canadian Dollar Offered Rate plus 1.25% per annum. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements Cash and Cash Equivalents include cash on hand, deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company's Cash and Cash Equivalents are considered Level 1 fair value measurements as they are valued using unadjusted quoted prices in active markets for identical assets. The following table provides a summary of the principal value and estimated fair value of outstanding publicly traded debt as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Principal Value $ 4,915 $ 4,915 $ 5,414 Fair Value, Estimated (a) 4,866 5,493 6,389 _______________ (a) The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices, which are considered Level 2 inputs in accordance with ASC 820, Fair Value Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. Management believes that the carrying values of accounts receivable, accounts payable and accrued expenses approximate fair value because of their short maturity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Apr. 30, 2022 | |
Comprehensive Income Loss | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables provide the rollforward of Accumulated Other Comprehensive Income for the first quarters of 2022 and 2021: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 29, 2022 $ 79 $ 1 $ 80 Other Comprehensive Income Before Reclassifications — — — Amounts Reclassified from Accumulated Other Comprehensive Income — — — Tax Effect — — — Current-period Other Comprehensive Income — — — Balance as of April 30, 2022 $ 79 $ 1 $ 80 Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 30, 2021 $ 85 $ (2) $ 83 Other Comprehensive Income (Loss) Before Reclassifications 5 (4) 1 Amounts Reclassified from Accumulated Other Comprehensive Income — 1 1 Tax Effect — 1 1 Current-period Other Comprehensive Income (Loss) 5 (2) 3 Balance as of May 1, 2021 $ 90 $ (4) $ 86 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance, regulatory and other matters arising out of the normal course of business. Actions filed against the Company from time to time include commercial, tort, intellectual property, customer, employment, data privacy, securities and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. On May 19, 2020 and January 12, 2021, certain of the Company's stockholders filed derivative lawsuits in the Court of Common Pleas for Franklin County, Ohio (subsequently removed to the United States District Court for the Southern District of Ohio) and the Delaware Court of Chancery, respectively, naming as defendants certain current and former directors and officers of the Company and alleging, among other things, breaches of fiduciary duty through asserted violations of law and failures to monitor workplace conduct (the "Lawsuits"). In addition, the Company also received litigation and books-and-records demands from certain other stockholders related to the same matters (together with the Lawsuits, the "Actions"). In July 2021, the Company announced the global settlement resolving the Actions. The settlement resolves all derivative claims that have been or could have been asserted in the Actions or that involve in any way the allegations referred to in the Actions and releases all such claims against the Company and its past and present employees, officers and directors, among others. As part of the settlement, the Company has agreed to implement certain management and governance measures, including the maintenance of a Diversity, Equity, and Inclusion Council. Following the August 2, 2021 spin-off of Victoria’s Secret & Co., the settlement terms apply to both the Company and Victoria’s Secret & Co. Each company has committed to invest $45 million over at least five years to fund the management and governance measures. In May 2022, the U.S. District Court of the Southern District of Ohio granted final approval of the settlement. Lease Guarantees In connection with the spin-off of Victoria's Secret & Co. and the sale of the La Senza business, the Company had remaining contingent obligations of $277 million as of April 30, 2022 related to lease payments under the current terms of noncancelable leases, primarily related to office space, expiring at various dates through 2037. These obligations include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the disposition of these businesses. The Company's reserves related to these obligations were not significant as of April 30, 2022. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Leadership Change As previously announced, on May 12, 2022, Andrew M. Meslow stepped down as Chief Executive Officer ("CEO") of the Company and as a member of the Company’s Board, and Sarah E. Nash, Executive Chair of the Company, was appointed to also serve as Interim CEO of the Company. Accelerated Share Repurchase Program The final settlement under the ASR occurred in May 2022. At final settlement, the Company received an additional 6.7 million shares of its common stock from the ASR bank. These shares were retired upon receipt. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policy) | 3 Months Ended |
Apr. 30, 2022 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Description of Business | Description of Business Bath & Body Works, Inc. ("Bath & Body Works" or the "Company") is a specialty retailer of home fragrance, body care and soaps and sanitizer products. Through the Bath & Body Works, White Barn and other brand names, the Company sells merchandise through Company-operated specialty retail stores in the United States of America ("U.S.") and Canada, and through its websites and other channels. The Company's international operations are primarily through franchise, license and wholesale partners. The Company operates as and reports a single segment that includes all of its continuing operations. On August 2, 2021, the Company completed the tax-free spin-off of its Victoria's Secret business, which included the Victoria's Secret and PINK brands, into an independent publicly traded company (the "Separation"). Accordingly, the operating results of, and costs to separate, the Victoria's Secret business are reported in Income from Discontinued Operations, Net of Tax in the Consolidated Statements of Income for all periods presented. In addition, the related assets and liabilities are reported as Assets and Liabilities of Discontinued Operations on the Consolidated Balance Sheets. All amounts and disclosures included in the Notes to Consolidated Financial Statements reflect only the Company's continuing operations unless otherwise noted. For additional information, see Note 2, "Discontinued Operations." |
COVID-19 | COVID-19 The coronavirus ("COVID-19") pandemic has created significant public health concerns as well as economic disruption, uncertainty and volatility. The Company remains focused on providing a safe store environment for its customers and associates while delivering an engaging shopping experience, and in establishing the necessary protocols to ensure the safe operations of its distribution and fulfillment centers and corporate offices. As expected, the Company has experienced channel and product category shifts as customer mindset and needs have shifted coming out of the pandemic. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “first quarter of 2022” and “first quarter of 2021” refer to the thirteen-week periods ended April 30, 2022 and May 1, 2021, respectively. |
Basis of Consolidation | Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee's net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of all unconsolidated entities is included in Other Income (Loss) in the Consolidated Statements of Income. The Company’s equity method investments are required to be reviewed for impairment when it is determined there may be an other-than-temporary loss in value. |
Interim Financial Statements | Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended April 30, 2022 and May 1, 2021 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2021 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods. |
Seasonality of Business | Seasonality of Business Due to the seasonal variations in the retail industry, the results of operations for the interim period are not necessarily indicative of the results expected for the full fiscal year. |
Restricted Cash | Restricted Cash During 2020, the Company placed cash on deposit with certain financial institutions as collateral for their lending commitments to certain former Victoria's Secret subsidiaries. These deposits totaled $30 million as of May 1, 2021 and were recorded in Other Current Assets on the May 1, 2021 Consolidated Balance Sheet. During the second quarter of 2021, these lending commitments were terminated which released the restrictions on this cash. Accordingly, the balance was reclassified to Cash and Cash Equivalents during the second quarter of 2021. |
Derivative Financial Instruments | Derivative Financial Instruments The Company's Canadian dollar denominated earnings are subject to exchange rate risk as substantially all the merchandise sold in Canada is sourced through U.S. dollar transactions. The Company uses foreign currency forward contracts designated as cash flow hedges to mitigate this foreign currency exposure. Amounts are reclassified from accumulated other comprehensive income (loss) upon sale of the hedged merchandise to the customer. These gains and losses are recognized in Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income. All designated cash flow hedges are recorded on the Consolidated Balance Sheets at fair value. The fair value of designated cash flow hedges is not significant for any period presented. The Company does not use derivative financial instruments for trading purposes. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. The Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, commercial paper and bank deposits. The Company also periodically reviews the relative credit standing of franchise, license and wholesale partners and other entities to which the Company grants credit terms in the normal course of business. The Company determines the required allowance for expected credit losses using information such as customer credit history and financial condition. Amounts are recorded to the allowance when it is determined that expected credit losses may occur. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company did not adopt any new accounting standards during the first quarter of 2022 that had a material impact on the Company's consolidated results of operations, financial position or cash flows. In addition, as of June 2, 2022, there were no new accounting standards that the Company has not yet adopted that are expected to have a material impact on the Company's consolidated results of operations, financial position or cash flows. |
Inventory | Inventories are principally valued at the lower of cost or net realizable value, on an average cost basis. |
Description of Business and B_3
Description of Business and Basis of Presentation (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Schedule of Cash, and Cash Equivalents | The following table summarizes the location of the Company's Cash and Cash Equivalents and restricted cash in the Consolidated Balance Sheets as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Cash and Cash Equivalents $ 651 $ 1,979 $ 2,475 Current Assets of Discontinued Operations — — 332 Other Current Assets — — 30 Total Cash and Cash Equivalents and Restricted Cash $ 651 $ 1,979 $ 2,837 |
Restrictions Cash | The following table summarizes the location of the Company's Cash and Cash Equivalents and restricted cash in the Consolidated Balance Sheets as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Cash and Cash Equivalents $ 651 $ 1,979 $ 2,475 Current Assets of Discontinued Operations — — 332 Other Current Assets — — 30 Total Cash and Cash Equivalents and Restricted Cash $ 651 $ 1,979 $ 2,837 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations in Financial Statements | The following table summarizes the significant line items included in Income from Discontinued Operations, Net of Tax in the first quarter of 2021 Consolidated Statement of Income: (in millions) Net Sales $ 1,554 Costs of Goods Sold, Buying and Occupancy (882) General, Administrative and Store Operating Expenses (a) (438) Income from Discontinued Operations Before Income Taxes 234 Provision for Income Taxes 48 Income from Discontinued Operations, Net of Tax $ 186 _______________ (a) Includes Separation-related expenses of $10 million. Prior to the Separation, these costs were reported in the Other category under the Company's previous segment reporting. The following table summarizes the carrying value of the significant classes of assets and liabilities classified as discontinued operations as of May 1, 2021: (in millions) Cash and Cash Equivalents $ 332 Accounts Receivable, Net 111 Inventories 761 Other 93 Current Assets of Discontinued Operations 1,297 Property and Equipment, Net 1,036 Operating Lease Assets 1,602 Trade Names 246 Deferred Income Taxes 11 Other Assets 52 Other Assets of Discontinued Operations $ 2,947 Accounts Payable $ 366 Accrued Expenses and Other 613 Current Operating Lease Liabilities 356 Income Taxes 9 Current Liabilities of Discontinued Operations 1,344 Deferred Income Taxes 100 Long-term Operating Lease Liabilities 1,541 Other Long-term Liabilities 22 Other Long-term Liabilities of Discontinued Operations $ 1,663 The following table summarizes Depreciation, Share-based Compensation Expense and Capital Expenditures of discontinued operations for the first quarter of 2021: (in millions) Depreciation of Long-Lived Assets $ 80 Share-based Compensation Expense 7 Capital Expenditures (19) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue | The following table provides a disaggregation of Net Sales for the first quarters of 2022 and 2021: First Quarter 2022 2021 (in millions) Stores - U.S. and Canada $ 1,059 $ 1,051 Direct - U.S. and Canada 318 349 International (a) 73 70 Total Net Sales $ 1,450 $ 1,470 _______________ (a) Results include royalties associated with franchised stores and wholesale sales. |
Earnings Per Share and Shareh_2
Earnings Per Share and Shareholders’ Equity (Deficit) (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Shares Utilized for the Calculation of Basic and Diluted Earnings Per Share | The following table provides the weighted-average shares utilized for the calculation of basic and diluted earnings per share for the first quarters of 2022 and 2021: First Quarter 2022 2021 (in millions) Common Shares 255 288 Treasury Shares (15) (9) Basic Shares 240 279 Effect of Dilutive Awards 3 5 Diluted Shares 243 284 Anti-dilutive Awards (a) — 1 _______________ |
Schedule of Repurchase of Common Stock | The Company repurchased the following shares of its common stock during the first quarter of 2021 under the March 2021 Program: Repurchase Program Amount Authorized Shares Amount Average Stock Price (in millions) (in thousands) (in millions) March 2021 (a) $ 500 2,608 $ 165 $ 63.31 _______________ (a) Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. The Company repurchased the following shares of its common stock during the first quarter of 2022 under the February 2022 Program: Repurchase Program Amount Authorized Shares Amount Average Stock Price (in millions) (in thousands) (in millions) February 2022 $ 1,500 4,721 $ 235 $ 49.81 February 2022 - Accelerated Share Repurchase Program (a) 13,624 800 58.72 Total 18,345 $ 1,035 _______________ (a) Repurchased amounts exclude the shares received at final settlement subsequent to April 30, 2022, as well as the $200 million paid during the first quarter related to those shares. |
Schedule of Dividends Paid | Under the authority and declaration of the Board, the Company paid the following dividend during the first quarter of 2022: Ordinary Dividends Total Paid (per share) (in millions) 2022 First Quarter $ 0.20 $ 48 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Inventory, Net [Abstract] | |
Summary of Inventories | The following table provides details of Inventories as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Finished Goods Merchandise $ 627 $ 521 $ 503 Raw Materials and Merchandise Components 193 188 133 Total Inventories $ 820 $ 709 $ 636 |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property And Equipment, Net | The following table provides details of Property and Equipment, Net as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Property and Equipment, at Cost $ 2,669 $ 2,583 $ 2,415 Accumulated Depreciation and Amortization (1,610) (1,574) (1,421) Property and Equipment, Net $ 1,059 $ 1,009 $ 994 |
Long-term Debt and Borrowing _2
Long-term Debt and Borrowing Facilities (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of Long-term Debt Instruments | The following table provides the Company’s outstanding long-term debt balance, net of unamortized debt issuance costs and discounts, as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Senior Debt with Subsidiary Guarantee $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) $ — $ — $ 319 $320 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes") 317 316 493 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) 281 281 279 $500 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 497 497 497 $500 million, 7.500% Fixed Interest Rate Notes due June 2029 ("2029 Notes") 490 489 488 $1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes") 990 990 989 $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 992 992 991 $700 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 694 694 694 Total Senior Debt with Subsidiary Guarantee $ 4,261 $ 4,259 $ 4,750 Senior Debt $350 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 349 $ 349 $ 348 $247 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 246 246 246 Total Senior Debt 595 595 594 Total Long-term Debt $ 4,856 $ 4,854 $ 5,344 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Carrying Value and Fair Value of Long-Term Debt, Disclosure | The following table provides a summary of the principal value and estimated fair value of outstanding publicly traded debt as of April 30, 2022, January 29, 2022 and May 1, 2021: April 30, January 29, May 1, (in millions) Principal Value $ 4,915 $ 4,915 $ 5,414 Fair Value, Estimated (a) 4,866 5,493 6,389 _______________ (a) The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices, which are considered Level 2 inputs in accordance with ASC 820, Fair Value Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Comprehensive Income Loss | |
Components of Accumulated Other Comprehensive Income (Loss) | The following tables provide the rollforward of Accumulated Other Comprehensive Income for the first quarters of 2022 and 2021: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 29, 2022 $ 79 $ 1 $ 80 Other Comprehensive Income Before Reclassifications — — — Amounts Reclassified from Accumulated Other Comprehensive Income — — — Tax Effect — — — Current-period Other Comprehensive Income — — — Balance as of April 30, 2022 $ 79 $ 1 $ 80 Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 30, 2021 $ 85 $ (2) $ 83 Other Comprehensive Income (Loss) Before Reclassifications 5 (4) 1 Amounts Reclassified from Accumulated Other Comprehensive Income — 1 1 Tax Effect — 1 1 Current-period Other Comprehensive Income (Loss) 5 (2) 3 Balance as of May 1, 2021 $ 90 $ (4) $ 86 |
Description of Business and B_4
Description of Business and Basis of Presentation - Narrative (Details) $ in Millions | May 01, 2021USD ($) |
Other Current Assets [Member] | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Restricted cash | $ 30 |
Description of Business and B_5
Description of Business and Basis of Presentation - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 | Jan. 30, 2021 | [1] | |
Cash and Cash Equivalents [Line Items] | ||||||
Cash, cash equivalents, and restricted cash | $ 651 | $ 1,979 | $ 2,837 | [1] | $ 3,933 | |
Cash and Cash Equivalents | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash, cash equivalents, and restricted cash | 651 | 1,979 | 2,475 | |||
Current Assets of Discontinued Operations | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash, cash equivalents, and restricted cash | 0 | 0 | 332 | |||
Other Current Assets [Member] | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash, cash equivalents, and restricted cash | $ 0 | $ 0 | $ 30 | |||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | Aug. 03, 2021USD ($) | Aug. 02, 2021USD ($)period | Apr. 30, 2022USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Spinoff transaction, reduction in retained earnings | $ 175 | ||
Proceeds from Spin-Off of Victoria's Secret & Co. | $ 976 | ||
Transition services agreements, number of extension periods | period | 2 | ||
Transition services agreements, extension period term | 1 year | ||
Transition service consideration | $ 19 | ||
Transition service cost | 20 | ||
Domestic transportation services, initial term | 3 years | ||
Domestic transportation services consideration | $ 18 | ||
Cash and cash equivalents transferred to Victoria's Secret & Co. from subsidiaries | $ 282 | ||
Minimum | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Domestic transportation services, termination written notice term | 18 months | ||
Maximum | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Transition services agreements, general service term | 2 years | ||
Transition services agreements, information technology service term | 3 years | ||
Domestic transportation services, termination written notice term | 36 months | ||
Victoria's Secret Co. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Ownership interest | 0.00% | ||
Victoria's Secret Co. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Common stock distributed, percentage | 100.00% | ||
Spinoff transaction, number of shares received per common stock exchanged | 0.33 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Income from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income from Discontinued Operations, Net of Tax | $ 0 | $ 186 | |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net Sales | 1,554 | ||
Costs of Goods Sold, Buying and Occupancy | (882) | ||
General, Administrative and Store Operating Expenses | [1] | (438) | |
Income from Discontinued Operations Before Income Taxes | 234 | ||
Provision for Income Taxes | 48 | ||
Income from Discontinued Operations, Net of Tax | 186 | ||
Separation related expense | $ 10 | ||
[1] | Includes Separation-related expenses of $10 million. Prior to the Separation, these costs were reported in the Other category under the Company's previous segment reporting. |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Balance Sheet from Discontinued Operations (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Current Assets of Discontinued Operations | $ 0 | $ 0 | $ 1,297 |
Other Assets of Discontinued Operations | 0 | 0 | 2,947 |
Current Liabilities of Discontinued Operations | 0 | 0 | 1,344 |
Other Long-term Liabilities of Discontinued Operations | $ 0 | $ 0 | 1,663 |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and Cash Equivalents | 332 | ||
Accounts Receivable, Net | 111 | ||
Inventories | 761 | ||
Other | 93 | ||
Current Assets of Discontinued Operations | 1,297 | ||
Property and Equipment, Net | 1,036 | ||
Operating Lease Assets | 1,602 | ||
Trade Names | 246 | ||
Deferred Income Taxes | 11 | ||
Other Assets | 52 | ||
Other Assets of Discontinued Operations | 2,947 | ||
Accounts Payable | 366 | ||
Accrued Expenses and Other | 613 | ||
Current Operating Lease Liabilities | 356 | ||
Income Taxes | 9 | ||
Current Liabilities of Discontinued Operations | 1,344 | ||
Deferred Income Taxes | 100 | ||
Long-term Operating Lease Liabilities | 1,541 | ||
Other Long-term Liabilities | 22 | ||
Other Long-term Liabilities of Discontinued Operations | $ 1,663 |
Discontinued Operations - Sch_3
Discontinued Operations - Schedule of Cash Flow Statement (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Share-based Compensation Expense | $ 12 | $ 15 | [1] |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation of Long-Lived Assets | 80 | ||
Share-based Compensation Expense | 7 | ||
Capital Expenditures | $ (19) | ||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | Jan. 29, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Accounts receivable, after allowance for credit loss | $ 77 | $ 62 | $ 64 |
Deferred revenue | 133 | 108 | $ 148 |
Revenue recognized | 56 | ||
Net Sales | 1,450 | 1,470 | |
Outside of the U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 137 | $ 117 | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Account receivable, payment term | 45 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Account receivable, payment term | 75 days |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | ||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 1,450 | $ 1,470 | |
Stores - U.S. and Canada | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 1,059 | 1,051 | |
Direct - U.S. and Canada | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 318 | 349 | |
International | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | [1] | $ 73 | $ 70 |
[1] | Results include royalties associated with franchised stores and wholesale sales. |
Earnings Per Share and Shareh_3
Earnings Per Share and Shareholders’ Equity (Deficit) - Shares Utilized for the Calculation of Basic and Diluted Earnings per Share (Details) - shares shares in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | ||
Earnings Per Share And Shareholders' Equity [Abstract] | |||
Common Shares (in shares) | 255 | 288 | |
Treasury Shares (in shares) | (15) | (9) | |
Basic Shares (in shares) | 240 | 279 | |
Effect of Dilutive Restricted Stock and Stock Options (in shares) | 3 | 5 | |
Diluted Shares (in shares) | 243 | 284 | |
Anti-dilutive Stock Options and Awards (in shares) | [1] | 0 | 1 |
[1] | The awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Earnings Per Share and Shareh_4
Earnings Per Share and Shareholders’ Equity (Deficit) - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Feb. 04, 2022 | Jun. 02, 2022 | May 31, 2022 | Apr. 30, 2022 | May 01, 2021 | Jan. 28, 2023 | Feb. 02, 2022 | Mar. 31, 2021 | Feb. 28, 2021 | ||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Amount Authorized | $ 1,500 | ||||||||||
Treasury stock, acquired | $ 165 | ||||||||||
Dividends payable (in USD per share) | $ 0.60 | ||||||||||
Forecast | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Dividends payable (in USD per share) | $ 0.80 | ||||||||||
Subsequent Event | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Dividends per share (in USD per share) | $ 0.20 | ||||||||||
Accounts Payable | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Payable under repurchase agreements | 8 | ||||||||||
Par Value | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury Share Retirement | 9 | ||||||||||
Paid-In Capital | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury Share Retirement | 61 | ||||||||||
Retained Earnings (Accumulated Deficit) | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury Share Retirement | 965 | ||||||||||
Treasury Stock, at Average Cost | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury stock, acquired | 165 | ||||||||||
March 2021 | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Amount Authorized | 500 | [1] | $ 500 | ||||||||
Treasury stock, acquired | [1] | $ 165 | |||||||||
Shares Repurchased (in shares) | [1] | 2,608 | |||||||||
March 2021 | Accounts Payable | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Payable under repurchase agreements | $ 10 | ||||||||||
March 2018 Repurchase Program | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Remaining authorized repurchase amount | $ 79 | ||||||||||
February 2022 Repurchase Program | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Amount Authorized | 1,500 | $ 1,500 | |||||||||
Remaining authorized repurchase amount | $ 265 | ||||||||||
Shares Repurchased (in shares) | 18,345 | ||||||||||
Treasury share retirement (in shares) | 18,000 | ||||||||||
February 2022 Repurchase Program | Treasury Stock, at Average Cost | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury stock, acquired | $ 1,035 | ||||||||||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Amount Authorized | $ 1,000 | ||||||||||
Treasury stock, acquired | $ 1,000 | $ 1,000 | |||||||||
Shares Repurchased (in shares) | 13,600 | 13,624 | [2] | ||||||||
Shares repurchased, percentage of shares expected to be acquired | 80.00% | ||||||||||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | Subsequent Event | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Shares Repurchased (in shares) | 6,700 | ||||||||||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | Paid-In Capital | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury stock, acquired | $ 200 | ||||||||||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | Treasury Stock, at Average Cost | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury stock, acquired | [2] | $ 800 | |||||||||
February 2022 Repurchase Program, Other Open Market Share Repurchase | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Shares Repurchased (in shares) | 4,721 | ||||||||||
February 2022 Repurchase Program, Other Open Market Share Repurchase | Subsequent Event | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury stock, acquired | $ 62 | ||||||||||
Shares Repurchased (in shares) | 1,300 | ||||||||||
February 2022 Repurchase Program, Other Open Market Share Repurchase | Treasury Stock, at Average Cost | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury stock, acquired | $ 235 | ||||||||||
[1] | Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. | ||||||||||
[2] | Repurchased amounts exclude the shares received at final settlement subsequent to April 30, 2022, as well as the $200 million paid during the first quarter related to those shares. |
Earnings Per Share and Shareh_5
Earnings Per Share and Shareholders’ Equity (Deficit) - Schedule of Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Feb. 04, 2022 | Apr. 30, 2022 | May 01, 2021 | Feb. 02, 2022 | Mar. 31, 2021 | ||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Authorized | $ 1,500 | ||||||
Amount Repurchased | $ 165 | ||||||
Treasury Stock, at Average Cost | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Repurchased | $ 165 | ||||||
March 2021 | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Authorized | 500 | [1] | $ 500 | ||||
Shares Repurchased (in shares) | [1] | 2,608 | |||||
Amount Repurchased | [1] | $ 165 | |||||
Average Stock Price (in USD per share) | [1] | $ 63.31 | |||||
February 2022 | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Authorized | $ 1,500 | $ 1,500 | |||||
Shares Repurchased (in shares) | 18,345 | ||||||
February 2022 | Treasury Stock, at Average Cost | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Repurchased | $ 1,035 | ||||||
February 2022 Repurchase Program, Other Open Market Share Repurchase | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares Repurchased (in shares) | 4,721 | ||||||
Average Stock Price (in USD per share) | $ 49.81 | ||||||
February 2022 Repurchase Program, Other Open Market Share Repurchase | Treasury Stock, at Average Cost | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Repurchased | $ 235 | ||||||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Authorized | $ 1,000 | ||||||
Shares Repurchased (in shares) | 13,600 | 13,624 | [2] | ||||
Amount Repurchased | $ 1,000 | $ 1,000 | |||||
Average Stock Price (in USD per share) | [2] | $ 58.72 | |||||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | Treasury Stock, at Average Cost | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Repurchased | [2] | $ 800 | |||||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | Paid-In Capital | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Repurchased | $ 200 | ||||||
[1] | Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. | ||||||
[2] | Repurchased amounts exclude the shares received at final settlement subsequent to April 30, 2022, as well as the $200 million paid during the first quarter related to those shares. |
Earnings Per Share and Shareh_6
Earnings Per Share and Shareholders’ Equity (Deficit) - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | [1] | |
Earnings Per Share And Shareholders' Equity [Abstract] | |||
Ordinary Dividends | $ 0.20 | ||
Total Paid | $ 48 | $ 0 | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Inventory, Net [Abstract] | |||
Finished Goods Merchandise | $ 627 | $ 521 | $ 503 |
Raw Materials and Merchandise Components | 193 | 188 | 133 |
Total Inventories | $ 820 | $ 709 | $ 636 |
Long-Lived Assets - Summary of
Long-Lived Assets - Summary of Property And Equipment, Net (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Property, Plant and Equipment [Abstract] | |||
Property and Equipment, at Cost | $ 2,669 | $ 2,583 | $ 2,415 |
Accumulated Depreciation and Amortization | (1,610) | (1,574) | (1,421) |
Property and Equipment, Net | $ 1,059 | $ 1,009 | $ 994 |
Long-Lived Assets - Narrative (
Long-Lived Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | ||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Depreciation of Long-Lived Assets | $ 53 | $ 129 | [1] |
Continuing Operations | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Depreciation of Long-Lived Assets | $ 53 | $ 49 | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. |
Equity Investments (Details)
Equity Investments (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Easton Investment | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 126 | $ 126 | $ 120 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 19.40% | 23.70% |
Income taxes paid | $ 8 | $ 10 |
Long-term Debt and Borrowing _3
Long-term Debt and Borrowing Facilities - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Long-term debt | $ 4,856 | $ 4,854 | $ 5,344 |
With Subsidiary Guarantee | Fixed Rate 5.625% Notes Due October 2023 | |||
Long-term debt | 0 | 0 | 319 |
Debt instrument, face amount | $ 500 | ||
Fixed interest rate | 5.625% | ||
With Subsidiary Guarantee | 9.375% Fixed Interest Rate Notes due July 2025 | |||
Long-term debt | $ 317 | 316 | 493 |
Debt instrument, face amount | $ 320 | ||
Fixed interest rate | 9.375% | ||
With Subsidiary Guarantee | Fixed Rate 6.694% Notes Due January 2027 | |||
Long-term debt | $ 281 | 281 | 279 |
Debt instrument, face amount | $ 297 | ||
Fixed interest rate | 6.694% | ||
With Subsidiary Guarantee | Fixed Rate 5.25% Notes Due February 2028 | |||
Long-term debt | $ 497 | 497 | 497 |
Debt instrument, face amount | $ 500 | ||
Fixed interest rate | 5.25% | ||
With Subsidiary Guarantee | Fixed Rate 7.5% Notes Due June 2029 | |||
Long-term debt | $ 490 | 489 | 488 |
Debt instrument, face amount | $ 500 | ||
Fixed interest rate | 7.50% | ||
With Subsidiary Guarantee | Fixed Rate 6.625% Notes Due October 2030 | |||
Long-term debt | $ 990 | 990 | 989 |
Debt instrument, face amount | $ 1,000 | ||
Fixed interest rate | 6.625% | ||
With Subsidiary Guarantee | Fixed Rate 6.875% Notes Due November 2035 | |||
Long-term debt | $ 992 | 992 | 991 |
Debt instrument, face amount | $ 1,000 | ||
Fixed interest rate | 6.875% | ||
With Subsidiary Guarantee | Fixed Rate 6.75% Notes Due July 2036 | |||
Long-term debt | $ 694 | 694 | 694 |
Debt instrument, face amount | $ 700 | ||
Fixed interest rate | 6.75% | ||
With Subsidiary Guarantee | Senior Debt Obligations | |||
Long-term debt | $ 4,261 | 4,259 | 4,750 |
Without Subsidiary Guarantee | |||
Long-term debt | 595 | 595 | 594 |
Without Subsidiary Guarantee | Fixed Rate 6.95% Debentures Due March 2033 | |||
Long-term debt | 349 | 349 | 348 |
Debt instrument, face amount | $ 350 | ||
Fixed interest rate | 6.95% | ||
Without Subsidiary Guarantee | Fixed Rate 7.60% Notes Due July 2037 | |||
Long-term debt | $ 246 | $ 246 | $ 246 |
Debt instrument, face amount | $ 247 | ||
Fixed interest rate | 7.60% |
Long-term Debt and Borrowing _4
Long-term Debt and Borrowing Facilities - Repurchase of Notes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Oct. 30, 2021 | Apr. 30, 2022 | Oct. 30, 2021 | May 01, 2021 | Sep. 30, 2021 | Apr. 30, 2021 | ||
Repayment of debt | $ 0 | $ 1,130 | [1] | ||||
Gain (loss) on repurchase of debt instrument | $ 0 | (105) | [1] | ||||
With Subsidiary Guarantee | |||||||
Gain (loss) on repurchase of debt instrument | $ (89) | (105) | |||||
Gain (loss) on extinguishment of debt, net of tax | $ (68) | $ (80) | |||||
With Subsidiary Guarantee | 2023 Notes and 2025 Notes | |||||||
Debt instrument, repurchase amount | $ 532 | ||||||
With Subsidiary Guarantee | 2023 Notes | |||||||
Debt instrument, repurchased face amount | 270 | ||||||
Debt instrument, redeemed amount | $ 50 | ||||||
Repayment of debt | $ 54 | ||||||
Fixed interest rate | 5.625% | ||||||
With Subsidiary Guarantee | 2025 Notes | |||||||
Debt instrument, repurchased face amount | $ 180 | ||||||
Fixed interest rate | 9.375% | ||||||
With Subsidiary Guarantee | 2022 Notes | |||||||
Debt instrument, repurchased face amount | $ 285 | ||||||
Fixed interest rate | 5.625% | ||||||
With Subsidiary Guarantee | 2025 Secured Notes | |||||||
Debt instrument, repurchased face amount | $ 750 | ||||||
Fixed interest rate | 6.875% | ||||||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the 2021 Consolidated Statement of Cash Flows includes the results of continuing and discontinued operations. |
Long-term Debt and Borrowing _5
Long-term Debt and Borrowing Facilities - Asset-Backed Revolving Credit Facility (Details) $ in Millions | 3 Months Ended | |
Apr. 30, 2022USD ($) | Aug. 31, 2021USD ($) | |
Letter of Credit | ||
Letters of credit outstanding, amount | $ 16 | |
Revolving Credit Facility | Revolving Credit Facility Expiring August 2026 | ||
Credit agreement, borrowing capacity | $ 750 | |
Line of credit facility, current borrowing capacity | 620 | |
Line of credit, outstanding amount | 0 | |
Line of credit facility, remaining borrowing capacity | $ 604 | |
Revolving facility commitment fee percentage, unused capacity | 0.25% | |
Revolving facility current credit fees percentage rate, letters of credit | 1.25% | |
Debt instrument, basis spread on variable rate | 1.25% | |
Revolving facility covenant fixed charge coverage ratio | 1 | |
Line of credit financial covenant, maximum borrowing amount | $ 70 | |
Line of credit financial covenant, percentage of maximum borrowing amount | 0.10 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Long-Term Debt, Disclosure (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 | |
Principal Value | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt, fair value disclosure | $ 4,915 | $ 4,915 | $ 5,414 | |
Estimate of Fair Value Measurement | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt, fair value disclosure | [1] | $ 4,866 | $ 5,493 | $ 6,389 |
[1] | The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices, which are considered Level 2 inputs in accordance with ASC 820, Fair Value Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ 80 | $ 83 |
Other Comprehensive Income Before Reclassifications | 0 | 1 |
Amounts Reclassified from Accumulated Other Comprehensive Income | 0 | 1 |
Tax Effect | 0 | 1 |
Current-period Other Comprehensive Income | 0 | 3 |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 80 | 86 |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 79 | 85 |
Other Comprehensive Income Before Reclassifications | 0 | 5 |
Amounts Reclassified from Accumulated Other Comprehensive Income | 0 | 0 |
Tax Effect | 0 | 0 |
Current-period Other Comprehensive Income | 0 | 5 |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 79 | 90 |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 1 | (2) |
Other Comprehensive Income Before Reclassifications | 0 | (4) |
Amounts Reclassified from Accumulated Other Comprehensive Income | 0 | 1 |
Tax Effect | 0 | 1 |
Current-period Other Comprehensive Income | 0 | (2) |
Accumulated Other Comprehensive Income (Loss), Ending Balance | $ 1 | $ (4) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Aug. 02, 2021 | Apr. 30, 2022 |
Lease Agreements | ||
Lease guarantees remaining after disposition of certain businesses | $ 277 | |
Management And Governance Investment | ||
Long-term investment, commitment | $ 45 | |
Commitment term (at least) | 5 years |
Subsequent Events (Details)
Subsequent Events (Details) - February 2022 Repurchase Program, Accelerated Share Repurchase Program - shares shares in Thousands | Feb. 04, 2022 | May 31, 2022 | Apr. 30, 2022 | [1] |
Subsequent Event [Line Items] | ||||
Shares Repurchased (in shares) | 13,600 | 13,624 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares Repurchased (in shares) | 6,700 | |||
[1] | Repurchased amounts exclude the shares received at final settlement subsequent to April 30, 2022, as well as the $200 million paid during the first quarter related to those shares. |