Cover
Cover - shares | 9 Months Ended | |
Oct. 28, 2023 | Nov. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 28, 2023 | |
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, $0.50 Par Value | |
Trading Symbol | BBWI | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 225,940,592 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000701985 | |
Current Fiscal Year End Date | --02-03 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Income Statement [Abstract] | ||||
Net Sales | $ 1,562 | $ 1,604 | $ 4,517 | $ 4,672 |
Costs of Goods Sold, Buying and Occupancy | (880) | (926) | (2,618) | (2,666) |
Gross Profit | 682 | 678 | 1,899 | 2,006 |
General, Administrative and Store Operating Expenses | (461) | (476) | (1,310) | (1,282) |
Operating Income | 221 | 202 | 589 | 724 |
Interest Expense | (84) | (86) | (259) | (262) |
Other Income | 22 | 3 | 68 | 7 |
Income Before Income Taxes | 159 | 119 | 398 | 469 |
Provision for Income Taxes | 40 | 28 | 99 | 103 |
Net Income | $ 119 | $ 91 | $ 299 | $ 366 |
Net Income per Basic Share (in dollars per share) | $ 0.52 | $ 0.40 | $ 1.31 | $ 1.57 |
Net Income per Dilutive Share (in dollars per share) | $ 0.52 | $ 0.40 | $ 1.31 | $ 1.56 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 119 | $ 91 | $ 299 | $ 366 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Foreign Currency Translation | (4) | (4) | (4) | (4) |
Unrealized Gain on Cash Flow Hedges | 3 | 3 | 2 | 3 |
Reclassification of Cash Flow Hedges to Earnings | (1) | 0 | (1) | 0 |
Total Other Comprehensive Loss, Net of Tax | (2) | (1) | (3) | (1) |
Total Comprehensive Income | $ 117 | $ 90 | $ 296 | $ 365 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Current Assets: | |||
Cash and Cash Equivalents | $ 412 | $ 1,232 | $ 295 |
Accounts Receivable, Net | 197 | 226 | 242 |
Inventories | 1,205 | 709 | 1,269 |
Other | 145 | 99 | 142 |
Total Current Assets | 1,959 | 2,266 | 1,948 |
Property and Equipment, Net | 1,244 | 1,193 | 1,121 |
Operating Lease Assets | 1,067 | 1,050 | 1,074 |
Goodwill | 628 | 628 | 628 |
Trade Name | 165 | 165 | 165 |
Deferred Income Taxes | 35 | 37 | 41 |
Other Assets | 145 | 155 | 156 |
Total Assets | 5,243 | 5,494 | 5,133 |
Current Liabilities: | |||
Accounts Payable | 627 | 455 | 632 |
Accrued Expenses and Other | 590 | 673 | 645 |
Current Operating Lease Liabilities | 192 | 177 | 175 |
Income Taxes | 0 | 74 | 0 |
Total Current Liabilities | 1,409 | 1,379 | 1,452 |
Deferred Income Taxes | 167 | 168 | 158 |
Long-term Debt | 4,497 | 4,862 | 4,860 |
Long-term Operating Lease Liabilities | 1,020 | 1,014 | 1,039 |
Other Long-term Liabilities | 274 | 276 | 232 |
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; 242, 244 and 243 shares issued; 227, 229 and 228 shares outstanding, respectively | 120 | 122 | 122 |
Paid-in Capital | 831 | 817 | 801 |
Accumulated Other Comprehensive Income | 75 | 78 | 79 |
Retained Earnings (Accumulated Deficit) | (2,329) | (2,401) | (2,789) |
Less: Treasury Stock, at Average Cost; 15, 15 and 15 shares, respectively | (822) | (822) | (822) |
Total Shareholders’ Equity (Deficit) | (2,125) | (2,206) | (2,609) |
Noncontrolling Interest | 1 | 1 | 1 |
Total Equity (Deficit) | (2,124) | (2,205) | (2,608) |
Total Liabilities and Equity (Deficit) | $ 5,243 | $ 5,494 | $ 5,133 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in USD per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
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) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 242,000,000 | 244,000,000 | 243,000,000 |
Common Stock, shares outstanding (in shares) | 227,000,000 | 229,000,000 | 228,000,000 |
Treasury stock (in shares) | 15,000,000 | 15,000,000 | 15,000,000 |
CONSOLIDATED STATEMENTS OF TOTA
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Other Share Repurchase Program | Accelerated Share Repurchase Program | Common Stock | Common Stock Other Share Repurchase Program | Common Stock Accelerated Share Repurchase Program | Paid-In Capital | Paid-In Capital Accelerated Share Repurchase Program | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Accelerated Share Repurchase Program | Treasury Stock, at Average Cost | Treasury Stock, at Average Cost Other Share Repurchase Program | Treasury Stock, at Average Cost Accelerated Share Repurchase Program | Noncontrolling Interest |
Ending Balance (in shares) | 254 | ||||||||||||||
Beginning Balance (in shares) at Jan. 29, 2022 | 254 | ||||||||||||||
Beginning Balance at Jan. 29, 2022 | $ (1,517) | $ 134 | $ 893 | $ 80 | $ (1,803) | $ (822) | $ 1 | ||||||||
Net Income | 366 | 366 | |||||||||||||
Other Comprehensive Loss | (1) | (1) | |||||||||||||
Total Comprehensive Income | 365 | (1) | 366 | ||||||||||||
Cash Dividends | (140) | (140) | |||||||||||||
Repurchases of Common Stock (in shares) | (7) | (20) | |||||||||||||
Repurchases of Common Stock | $ (312) | $ (1,000) | $ 0 | $ 0 | $ (312) | $ (1,000) | |||||||||
Treasury Share Retirement | 0 | $ (13) | (87) | (1,212) | 1,312 | ||||||||||
Share-based Compensation and Other (in shares) | 1 | ||||||||||||||
Share-based Compensation and Other | (4) | $ 1 | (5) | ||||||||||||
Ending Balance at Oct. 29, 2022 | (2,608) | $ 122 | 801 | 79 | (2,789) | (822) | 1 | ||||||||
Ending Balance (in shares) | 228 | ||||||||||||||
Beginning Balance (in shares) at Jul. 30, 2022 | 228 | ||||||||||||||
Beginning Balance at Jul. 30, 2022 | (2,662) | $ 122 | 791 | 80 | (2,834) | (822) | 1 | ||||||||
Net Income | 91 | 91 | |||||||||||||
Other Comprehensive Loss | (1) | (1) | |||||||||||||
Total Comprehensive Income | 90 | (1) | 91 | ||||||||||||
Cash Dividends | (46) | $ 0 | 0 | 0 | (46) | 0 | 0 | ||||||||
Share-based Compensation and Other (in shares) | 0 | ||||||||||||||
Share-based Compensation and Other | 10 | $ 0 | 10 | ||||||||||||
Ending Balance at Oct. 29, 2022 | $ (2,608) | $ 122 | 801 | 79 | (2,789) | (822) | 1 | ||||||||
Ending Balance (in shares) | 228 | 228 | |||||||||||||
Ending Balance (in shares) | 229 | 229 | |||||||||||||
Beginning Balance (in shares) at Jan. 28, 2023 | 229 | 229 | |||||||||||||
Beginning Balance at Jan. 28, 2023 | $ (2,205) | $ 122 | 817 | 78 | (2,401) | (822) | 1 | ||||||||
Net Income | 299 | 299 | |||||||||||||
Other Comprehensive Loss | (3) | (3) | 0 | ||||||||||||
Total Comprehensive Income | 296 | (3) | 299 | ||||||||||||
Cash Dividends | (137) | (137) | |||||||||||||
Repurchases of Common Stock (in shares) | (3) | ||||||||||||||
Repurchases of Common Stock | (100) | (100) | |||||||||||||
Treasury Share Retirement | 0 | $ (2) | (8) | (90) | 100 | ||||||||||
Share-based Compensation and Other (in shares) | 1 | ||||||||||||||
Share-based Compensation and Other | 22 | $ 0 | 22 | ||||||||||||
Ending Balance at Oct. 28, 2023 | (2,124) | $ 120 | 831 | 75 | (2,329) | (822) | 1 | ||||||||
Ending Balance (in shares) | 228 | ||||||||||||||
Beginning Balance (in shares) at Jul. 29, 2023 | 228 | ||||||||||||||
Beginning Balance at Jul. 29, 2023 | (2,154) | $ 121 | 827 | 77 | (2,358) | (822) | 1 | ||||||||
Net Income | 119 | 119 | |||||||||||||
Other Comprehensive Loss | (2) | (2) | |||||||||||||
Total Comprehensive Income | 117 | (2) | 119 | ||||||||||||
Cash Dividends | (45) | (45) | |||||||||||||
Repurchases of Common Stock (in shares) | (1) | ||||||||||||||
Repurchases of Common Stock | $ (50) | $ (50) | |||||||||||||
Treasury Share Retirement | 0 | $ (1) | (4) | 0 | (45) | 50 | |||||||||
Share-based Compensation and Other (in shares) | 0 | ||||||||||||||
Share-based Compensation and Other | 8 | $ 0 | 8 | ||||||||||||
Ending Balance at Oct. 28, 2023 | $ (2,124) | $ 120 | $ 831 | $ 75 | $ (2,329) | $ (822) | $ 1 | ||||||||
Ending Balance (in shares) | 227 | 227 |
CONSOLIDATED STATEMENTS OF TO_2
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Cash dividends (in USD per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 |
Total Comprehensive Income | $ 117 | $ 90 | $ 296 | $ 365 | ||||
Net Income | $ 119 | $ 91 | $ 299 | $ 366 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 28, 2023 | Oct. 28, 2023 | Oct. 29, 2022 | |
Operating Activities: | |||
Net Income | $ 119 | $ 299 | $ 366 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Depreciation of Long-lived Assets | 70 | 199 | 162 |
Gain on Extinguishment of Debt | (12) | (28) | 0 |
Share-based Compensation Expense | 29 | 26 | |
Changes in Assets and Liabilities: | |||
Accounts Receivable | 29 | (3) | |
Inventories | (499) | (563) | |
Accounts Payable, Accrued Expenses and Other | 117 | 185 | |
Income Taxes Payable | (114) | (57) | |
Other Assets and Liabilities | (4) | (49) | |
Net Cash Provided by Operating Activities | 28 | 67 | |
Investing Activities: | |||
Capital Expenditures | (250) | (252) | |
Other Investing Activities | 11 | 0 | |
Net Cash Used for Investing Activities | (239) | (252) | |
Financing Activities: | |||
Payments of Long-term Debt | (161) | (343) | 0 |
Repurchases of Common Stock | (99) | (1,312) | |
Dividends Paid | (45) | (137) | (140) |
Tax Payments Related to Share-based Awards | (10) | (32) | |
Other Financing Activities | (20) | (15) | |
Net Cash Used for Financing Activities | (609) | (1,499) | |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | |
Net Decrease in Cash and Cash Equivalents | (820) | (1,684) | |
Cash and Cash Equivalents, Beginning of Year | 1,232 | 1,979 | |
Cash and Cash Equivalents, End of Period | $ 412 | $ 412 | $ 295 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Bath & Body Works, Inc. (the “Company”) is a global omnichannel retailer focused on personal care and home fragrance. The Company sells merchandise through its retail stores in the United States of America (“U.S.”) and Canada, and through its websites and other channels, under the Bath & Body Works, White Barn and other brand names. The Company’s international business is conducted through franchise, license and wholesale partners. The Company operates as and reports a single segment. Fiscal Year The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “third quarter of 2023” and “third quarter of 2022” refer to the thirteen-week periods ended October 28, 2023 and October 29, 2022, respectively. “Year-to-date 2023” and “year-to-date 2022” refer to the thirty-nine-week periods ended October 28, 2023 and October 29, 2022, respectively. The Company utilizes the retail calendar for reporting. As a result, the Company’s fiscal 2023 will include 53 weeks, with the fourth quarter representing the 14-week period ending February 3, 2024. 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. Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended October 28, 2023 and October 29, 2022 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2022 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 The Company’s operations are seasonal in nature and consist of two principal selling seasons: Spring (the first and second quarters) and Fall (the third and fourth quarters). Historically, the Company's sales are higher during the fourth quarter of the fiscal year due to seasonal and holiday-related sales patterns. Due to the seasonal variations in the retail industry, the results of operations for the interim periods are not necessarily indicative of the results expected for the full fiscal year. Derivative Financial Instruments The Company’s Canadian dollar denominated earnings are subject to exchange rate risk as substantially all the Company’s 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 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 composed 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. Easton Investments 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 $127 million as of October 28, 2023, $124 million as of January 28, 2023 and $125 million as of October 29, 2022, 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. 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 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. 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 year-to-date 2023 that had a material impact on its consolidated results of operations, financial position or cash flows. In addition, as of December 1, 2023, there were no new accounting standards that the Company has not yet adopted that are expected to have a material impact on its consolidated results of operations, financial position or cash flows. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 28, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Revenue Recognition Accounts receivable, net from revenue-generating activities were $84 million as of October 28, 2023, $79 million as of January 28, 2023 and $103 million as of October 29, 2022. These 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 rewards 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 $163 million as of October 28, 2023, $195 million as of January 28, 2023 and $147 million as of October 29, 2022. The Company recognized $123 million as revenue year-to-date 2023 from amounts recorded as deferred revenue at the beginning of the Company’s fiscal year. The following table provides a disaggregation of Net Sales for the third quarters of and year-to-date 2023 and 2022: Third Quarter Year-to-Date 2023 2022 2023 2022 (in millions) Stores - U.S. and Canada $ 1,168 $ 1,178 $ 3,345 $ 3,398 Direct - U.S. and Canada 317 345 926 1,030 International (a) 77 81 246 244 Total Net Sales $ 1,562 $ 1,604 $ 4,517 $ 4,672 _______________ (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 $161 million and $160 million for the third quarters of 2023 and 2022, respectively, and $468 million and $462 million for year-to-date 2023 and 2022, respectively. |
Net Income Per Share and Shareh
Net Income Per Share and Shareholders’ Equity (Deficit) | 9 Months Ended |
Oct. 28, 2023 | |
Net Income Per Share and Shareholders’ Equity (Deficit) [Abstract] | |
Earnings Per Share and Shareholders’ Equity (Deficit) | Net Income Per Share and Shareholders’ Equity (Deficit) Net Income Per Share Net Income per Basic Share is computed based on the weighted-average number of common shares outstanding. Net Income per Diluted Share includes the weighted-average effect of dilutive restricted share 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 Net Income per Basic and Diluted Share for the third quarters of and year-to-date 2023 and 2022: Third Quarter Year-to-Date 2023 2022 2023 2022 (in millions) Common Shares 242 243 243 248 Treasury Shares (15) (15) (15) (15) Basic Shares 227 228 228 233 Effect of Dilutive Awards 1 1 1 2 Diluted Shares 228 229 229 235 Anti-dilutive Awards (a) — 1 1 1 _______________ (a) These awards were excluded from the calculation of Net Income per Diluted Share because their inclusion would have been anti-dilutive. Common Stock Repurchases 2022 Share Repurchase Program In February 2022, the Company’s Board of Directors authorized a $1.5 billion share repurchase program (the “February 2022 Program”). Under the February 2022 Program, the Company repurchased the following shares of its common stock during year-to-date 2023: Repurchase Program Amount Authorized Shares Amount Average Stock Price (in millions) (in thousands) (in millions) February 2022 $ 1,500 2,765 $ 100 $ 36.16 The February 2022 Program had $88 million of remaining authority as of October 28, 2023. There were share repurchases of $1 million reflected in Accounts Payable on the October 28, 2023 Consolidated Balance Sheet. Subsequent to October 28, 2023 through December 1, 2023, the Company repurchased an additional 569 thousand shares of its common stock for $17 million under the February 2022 Program. Common Stock Retirement Shares of common stock repurchased under the February 2022 Program are retired and cancelled upon repurchase. As a result, the Company retired the 2,765 thousand shares repurchased under the February 2022 Program during year-to-date 2023, which resulted in reductions of $2 million in the par value of Common Stock, $8 million in Paid-in Capital and $90 million in Retained Earnings (Accumulated Deficit). Dividends The Company paid the following dividends during year-to-date 2023 and 2022: Ordinary Dividends Total Paid (per share) (in millions) 2023 First Quarter $ 0.20 $ 46 Second Quarter 0.20 46 Third Quarter 0.20 45 Total $ 0.60 $ 137 2022 First Quarter $ 0.20 $ 48 Second Quarter 0.20 46 Third Quarter 0.20 46 Total $ 0.60 $ 140 In November 2023, the Company declared the fourth quarter 2023 ordinary dividend of $0.20 per share payable on December 1, 2023 to stockholders of record at the close of business on November 17, 2023. |
Inventories
Inventories | 9 Months Ended |
Oct. 28, 2023 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The following table provides details of Inventories as of October 28, 2023, January 28, 2023 and October 29, 2022: October 28, January 28, October 29, (in millions) Finished Goods Merchandise $ 1,035 $ 538 $ 1,066 Raw Materials and Merchandise Components 170 171 203 Total Inventories $ 1,205 $ 709 $ 1,269 Inventories are principally valued at the lower of cost or net realizable value, on an average cost basis. |
Long-Lived Assets
Long-Lived Assets | 9 Months Ended |
Oct. 28, 2023 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-Lived Assets The following table provides details of Property and Equipment, Net as of October 28, 2023, January 28, 2023 and October 29, 2022: October 28, January 28, October 29, (in millions) Property and Equipment, at Cost $ 3,121 $ 2,915 $ 2,809 Accumulated Depreciation and Amortization (1,877) (1,722) (1,688) Property and Equipment, Net $ 1,244 $ 1,193 $ 1,121 Depreciation expense was $70 million and $56 million for the third quarters of 2023 and 2022, respectively. Depreciation expense was $199 million and $162 million for year-to-date 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 28, 2023 | |
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 third quarter of 2023, the Company’s effective tax rate was 25.3% compared to 23.3% in the third quarter of 2022. The 2023 third quarter rate was consistent with the Company’s combined estimated federal and state statutory rates. The 2022 third quarter rate was lower than the Company’s combined estimated federal and state statutory rates primarily due to the resolution of certain tax matters during the quarter. For year-to-date 2023, the Company’s effective tax rate was 24.9% compared to 21.9% for year-to-date 2022. The 2023 year-to-date rate was consistent with the Company’s combined estimated federal and state statutory rates. The 2022 year-to-date rate was lower than the Company’s combined estimated federal and state statutory rates primarily due to the resolution of certain tax matters during the period. Income taxes paid were $45 million and $18 million for the third quarters of 2023 and 2022, respectively. Income taxes paid were $213 million and $170 million for year-to-date 2023 and 2022, respectively. |
Long-term Debt and Borrowing Fa
Long-term Debt and Borrowing Facilities | 9 Months Ended |
Oct. 28, 2023 | |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
Long-term Debt and Borrowing Facilities | Long-term Debt and Borrowing Facility The following table provides the Company’s outstanding Long-term Debt balance, net of unamortized debt issuance costs and discounts, as of October 28, 2023, January 28, 2023 and October 29, 2022: October 28, January 28, October 29, (in millions) Senior Debt with Subsidiary Guarantee $314 million, 9.375% Fixed Interest Rate Notes due July 2025 (“2025 Notes”) $ 312 $ 317 $ 317 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) 286 283 283 $486 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 483 498 497 $500 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”) 492 491 490 $958 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”) 950 991 991 $861 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 855 993 993 $614 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 609 694 694 Total Senior Debt with Subsidiary Guarantee $ 3,987 $ 4,267 $ 4,265 Senior Debt $311 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 310 $ 349 $ 349 $201 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 200 246 246 Total Senior Debt 510 595 595 Total Long-term Debt $ 4,497 $ 4,862 $ 4,860 Repurchases of Notes During the third quarter of and year-to-date 2023, the Company repurchased in the open market and extinguished $174 million and $373 million principal amounts of its outstanding senior notes, respectively. The aggregate repurchase prices for these notes were $161 million and $343 million for the third quarter of and year-to-date 2023, respectively, resulting in pre-tax gains of $12 million and $28 million, net of the write-off of unamortized issuance costs, during the third quarter of and year-to-date 2023, respectively. These gains are included in Other Income in the 2023 Consolidated Statements of Income. The following table provides details of the outstanding principal amount of senior notes repurchased and extinguished during the third quarter of and year-to-date 2023: Third Quarter Year-to-Date (in millions) 2025 Notes $ — $ 6 2028 Notes 14 14 2030 Notes 35 42 2033 Notes 31 39 2035 Notes 78 139 2036 Notes 3 86 2037 Notes 13 47 Total $ 174 $ 373 Subsequent to October 28, 2023 through December 1, 2023, the Company repurchased in the open market and extinguished $93 million principal amount of its outstanding senior notes for an aggregate repurchase price of $86 million. 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. In the second quarter of 2023, the Company amended its ABL Facility to replace the London Interbank Offer Rate (“LIBOR”) based rate with a Secured Overnight Financing Rate (“SOFR”) based rate as the interest rate benchmark on U.S. dollar borrowings. This amendment made no other material changes to the terms of the ABL Facility. 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 October 28, 2023, the Company’s borrowing base was $1.169 billion, and it had no borrowings outstanding under the ABL Facility. The ABL Facility supports the Company’s letter of credit program. The Company had $10 million of outstanding letters of credit as of October 28, 2023 that reduced its availability under the ABL Facility. As of October 28, 2023, the Company’s availability under the ABL Facility was $740 million. As of October 28, 2023, the ABL Facility fees related to committed and unutilized amounts were 0.30% 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 Term SOFR plus 1.25% and a credit spread adjustment of 0.10% per annum. The interest rate on outstanding Canadian dollar-denominated borrowings was the Canadian Dollar Offered Rate plus 1.25% per annum. The ABL Facility requires the Company to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00 during an event of default or any period commencing on any day when specified excess availability is less than the greater of (i) $70 million or (ii) 10% of the maximum borrowing amount. As of October 28, 2023, the Company was not required to maintain this ratio. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 28, 2023 | |
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 the Company’s outstanding Long-term Debt as of October 28, 2023, January 28, 2023 and October 29, 2022: October 28, January 28, October 29, (in millions) Principal Value $ 4,542 $ 4,915 $ 4,915 Fair Value, Estimated (a) 4,122 4,707 4,367 _______________ (a) The estimated fair value of the Company’s Long-term Debt is based on reported transaction prices, which are considered Level 2 inputs in accordance with Accounting Standards Codification 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 the Company’s Accounts Receivable, Accounts Payable and Accrued Expenses approximate their fair values because of their short maturities. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 28, 2023 | |
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 in the ordinary course of business. Actions filed against the Company may from time to time include commercial, tort, intellectual property, tax, customer, employment, wage and hour, data privacy, securities, anti-corruption 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. Lease Guarantees In connection with the spin-off of Victoria’s Secret & Co. and the disposal of a certain other business, the Company had remaining contingent obligations of $267 million as of October 28, 2023 related to lease payments under the current terms of noncancelable leases, primarily related to office space, expiring at various dates through 2037. These obligations include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the disposition of these businesses. The Company’s reserves related to these obligations were not significant for any period presented. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income | $ 119 | $ 91 | $ 299 | $ 366 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Oct. 28, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business and B_2
Description of Business and Basis of Presentation (Policy) | 9 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Bath & Body Works, Inc. (the “Company”) is a global omnichannel retailer focused on personal care and home fragrance. The Company sells merchandise through its retail stores in the United States of America (“U.S.”) and Canada, and through its websites and other channels, under the Bath & Body Works, White Barn and other brand names. The Company’s international business is conducted through franchise, license and wholesale partners. The Company operates as and reports a single segment. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “third quarter of 2023” and “third quarter of 2022” refer to the thirteen-week periods ended October 28, 2023 and October 29, 2022, respectively. “Year-to-date 2023” and “year-to-date 2022” refer to the thirty-nine-week periods ended October 28, 2023 and October 29, 2022, respectively. The Company utilizes the retail calendar for reporting. As a result, the Company’s fiscal 2023 will include 53 weeks, with the fourth quarter representing the 14-week period ending February 3, 2024. |
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. |
Interim Financial Statements | Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended October 28, 2023 and October 29, 2022 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2022 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 The Company’s operations are seasonal in nature and consist of two principal selling seasons: Spring (the first and second quarters) and Fall (the third and fourth quarters). Historically, the Company's sales are higher during the fourth quarter of the fiscal year due to seasonal and holiday-related sales patterns. Due to the seasonal variations in the retail industry, the results of operations for the interim periods are not necessarily indicative of the results expected for the full fiscal year. |
Derivative Financial Instruments | Derivative Financial Instruments The Company’s Canadian dollar denominated earnings are subject to exchange rate risk as substantially all the Company’s 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 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 composed 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. |
Equity Method Investments | Easton Investments 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 $127 million as of October 28, 2023, $124 million as of January 28, 2023 and $125 million as of October 29, 2022, 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. 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 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. |
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 year-to-date 2023 that had a material impact on its consolidated results of operations, financial position or cash flows. In addition, as of December 1, 2023, there were no new accounting standards that the Company has not yet adopted that are expected to have a material impact on its 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue | The following table provides a disaggregation of Net Sales for the third quarters of and year-to-date 2023 and 2022: Third Quarter Year-to-Date 2023 2022 2023 2022 (in millions) Stores - U.S. and Canada $ 1,168 $ 1,178 $ 3,345 $ 3,398 Direct - U.S. and Canada 317 345 926 1,030 International (a) 77 81 246 244 Total Net Sales $ 1,562 $ 1,604 $ 4,517 $ 4,672 _______________ (a) Results include royalties associated with franchised stores and wholesale sales. |
Net Income Per Share and Shar_2
Net Income Per Share and Shareholders’ Equity (Deficit) (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Net Income Per Share and Shareholders’ Equity (Deficit) [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 Net Income per Basic and Diluted Share for the third quarters of and year-to-date 2023 and 2022: Third Quarter Year-to-Date 2023 2022 2023 2022 (in millions) Common Shares 242 243 243 248 Treasury Shares (15) (15) (15) (15) Basic Shares 227 228 228 233 Effect of Dilutive Awards 1 1 1 2 Diluted Shares 228 229 229 235 Anti-dilutive Awards (a) — 1 1 1 _______________ (a) These awards were excluded from the calculation of Net Income per Diluted Share because their inclusion would have been anti-dilutive. |
Schedule of Repurchase of Common Stock | Under the February 2022 Program, the Company repurchased the following shares of its common stock during year-to-date 2023: Repurchase Program Amount Authorized Shares Amount Average Stock Price (in millions) (in thousands) (in millions) February 2022 $ 1,500 2,765 $ 100 $ 36.16 |
Schedule of Dividends Paid | The Company paid the following dividends during year-to-date 2023 and 2022: Ordinary Dividends Total Paid (per share) (in millions) 2023 First Quarter $ 0.20 $ 46 Second Quarter 0.20 46 Third Quarter 0.20 45 Total $ 0.60 $ 137 2022 First Quarter $ 0.20 $ 48 Second Quarter 0.20 46 Third Quarter 0.20 46 Total $ 0.60 $ 140 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Inventory, Net [Abstract] | |
Summary of Inventories | The following table provides details of Inventories as of October 28, 2023, January 28, 2023 and October 29, 2022: October 28, January 28, October 29, (in millions) Finished Goods Merchandise $ 1,035 $ 538 $ 1,066 Raw Materials and Merchandise Components 170 171 203 Total Inventories $ 1,205 $ 709 $ 1,269 |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property And Equipment, Net | The following table provides details of Property and Equipment, Net as of October 28, 2023, January 28, 2023 and October 29, 2022: October 28, January 28, October 29, (in millions) Property and Equipment, at Cost $ 3,121 $ 2,915 $ 2,809 Accumulated Depreciation and Amortization (1,877) (1,722) (1,688) Property and Equipment, Net $ 1,244 $ 1,193 $ 1,121 |
Long-term Debt and Borrowing _2
Long-term Debt and Borrowing Facilities (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
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 October 28, 2023, January 28, 2023 and October 29, 2022: October 28, January 28, October 29, (in millions) Senior Debt with Subsidiary Guarantee $314 million, 9.375% Fixed Interest Rate Notes due July 2025 (“2025 Notes”) $ 312 $ 317 $ 317 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) 286 283 283 $486 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 483 498 497 $500 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”) 492 491 490 $958 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”) 950 991 991 $861 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 855 993 993 $614 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 609 694 694 Total Senior Debt with Subsidiary Guarantee $ 3,987 $ 4,267 $ 4,265 Senior Debt $311 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 310 $ 349 $ 349 $201 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 200 246 246 Total Senior Debt 510 595 595 Total Long-term Debt $ 4,497 $ 4,862 $ 4,860 |
Schedule of Long-Term Debt Repurchases | The following table provides details of the outstanding principal amount of senior notes repurchased and extinguished during the third quarter of and year-to-date 2023: Third Quarter Year-to-Date (in millions) 2025 Notes $ — $ 6 2028 Notes 14 14 2030 Notes 35 42 2033 Notes 31 39 2035 Notes 78 139 2036 Notes 3 86 2037 Notes 13 47 Total $ 174 $ 373 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
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 the Company’s outstanding Long-term Debt as of October 28, 2023, January 28, 2023 and October 29, 2022: October 28, January 28, October 29, (in millions) Principal Value $ 4,542 $ 4,915 $ 4,915 Fair Value, Estimated (a) 4,122 4,707 4,367 _______________ (a) The estimated fair value of the Company’s Long-term Debt is based on reported transaction prices, which are considered Level 2 inputs in accordance with Accounting Standards Codification 820, Fair Value Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Easton Investments, Including Carrying Value of Related Equity Method Investments | $ 127 | $ 124 | $ 125 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | Jan. 28, 2023 | |
Disaggregation of Revenue [Line Items] | |||||
Accounts receivable, after allowance for credit loss | $ 84 | $ 103 | $ 84 | $ 103 | $ 79 |
Deferred revenue | 163 | 147 | 163 | 147 | $ 195 |
Revenue recognized | 123 | ||||
Net Sales | 1,562 | 1,604 | 4,517 | 4,672 | |
Outside of the U.S. | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | $ 161 | $ 160 | $ 468 | $ 462 | |
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 | 9 Months Ended | |||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | $ 1,562 | $ 1,604 | $ 4,517 | $ 4,672 | |
Stores - U.S. and Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 1,168 | 1,178 | 3,345 | 3,398 | |
Direct - U.S. and Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 317 | 345 | 926 | 1,030 | |
International | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | [1] | $ 77 | $ 81 | $ 246 | $ 244 |
[1] Results include royalties associated with franchised stores and wholesale sales. |
Net Income Per Share and Shar_3
Net Income 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 | 9 Months Ended | |||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | ||
Net Income Per Share and Shareholders’ Equity (Deficit) [Abstract] | |||||
Common Shares (in shares) | 242 | 243 | 243 | 248 | |
Treasury Shares (in shares) | (15) | (15) | (15) | (15) | |
Basic Shares (in shares) | 227 | 228 | 228 | 233 | |
Effect of Dilutive Restricted Stock and Stock Options (in shares) | 1 | 1 | 1 | 2 | |
Diluted Shares (in shares) | 228 | 229 | 229 | 235 | |
Anti-dilutive Stock Options and Awards (in shares) | [1] | 0 | 1 | 1 | 1 |
[1] These awards were excluded from the calculation of Net Income per Diluted Share because their inclusion would have been anti-dilutive. |
Net Income Per Share and Shar_4
Net Income Per Share and Shareholders’ Equity (Deficit) - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | ||
Dec. 01, 2023 | Nov. 30, 2023 | Oct. 28, 2023 | Feb. 02, 2022 | |
Accounts Payable | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Payable under repurchase agreements | $ 1 | |||
Subsequent Event | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Dividends Per Share (in USD per share) | $ 0.20 | |||
February 2022 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Amount Authorized | $ 1,500 | $ 1,500 | ||
Shares Repurchased (in shares) | 2,765,000 | |||
Treasury stock, acquired | $ 100 | |||
Remaining authorized repurchase amount | $ 88 | |||
February 2022 Repurchase Program | Subsequent Event | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares Repurchased (in shares) | 569,000 | |||
Treasury stock, acquired | $ 17 |
Net Income Per Share and Shar_5
Net Income Per Share and Shareholders’ Equity (Deficit) - Schedule of Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Feb. 02, 2022 | |
Paid-In Capital | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Share Retirement | $ 8 | ||
Par Value | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Share Retirement | 2 | ||
Retained Earnings (Accumulated Deficit) | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Share Retirement | $ 90 | ||
February 2022 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares Repurchased (in shares) | 2,765 | ||
Stock Repurchase Program, Authorized Amount | $ 1,500 | $ 1,500 | |
Treasury Stock, Value, Acquired, Cost Method | $ 100 | ||
Average Stock Price (in USD per share) | $ 36.16 | ||
Treasury share retirement (in shares) | 2,765 | ||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock, Value, Acquired, Cost Method | $ 1,000 | ||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | Paid-In Capital | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock, Value, Acquired, Cost Method | 0 | ||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | Retained Earnings (Accumulated Deficit) | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock, Value, Acquired, Cost Method | $ 0 |
Net Income Per Share and Shar_6
Net Income Per Share and Shareholders’ Equity (Deficit) - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Net Income Per Share and Shareholders’ Equity (Deficit) [Abstract] | ||||||||
Ordinary dividends (in USD per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 |
Total Paid | $ 45 | $ 46 | $ 46 | $ 46 | $ 46 | $ 48 | $ 137 | $ 140 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Inventory, Net [Abstract] | |||
Finished Goods Merchandise | $ 1,035 | $ 538 | $ 1,066 |
Raw Materials and Merchandise Components | 170 | 171 | 203 |
Total Inventories | $ 1,205 | $ 709 | $ 1,269 |
Long-Lived Assets - Summary of
Long-Lived Assets - Summary of Property And Equipment, Net (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Property, Plant and Equipment [Abstract] | |||
Property and Equipment, at Cost | $ 3,121 | $ 2,915 | $ 2,809 |
Accumulated Depreciation and Amortization | (1,877) | (1,722) | (1,688) |
Property and Equipment, Net | $ 1,244 | $ 1,193 | $ 1,121 |
Long-Lived Assets - Narrative (
Long-Lived Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Depreciation | $ 70 | $ 56 | $ 199 | $ 162 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 25.30% | 23.30% | 24.90% | 21.90% |
Income taxes paid | $ 45 | $ 18 | $ 213 | $ 170 |
Long-term Debt and Borrowing _3
Long-term Debt and Borrowing Facilities - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Long-term debt | $ 4,497 | $ 4,862 | $ 4,860 |
With Subsidiary Guarantee | Fixed Rate 9.375% Notes due July 2025 [Member] | |||
Debt Instrument, Notional Amount | $ 314 | ||
Fixed interest rate | 9.375% | ||
Long-term debt | $ 312 | 317 | 317 |
With Subsidiary Guarantee | Fixed Rate 6.694% Notes Due January 2027 | |||
Debt Instrument, Notional Amount | $ 297 | ||
Fixed interest rate | 6.694% | ||
Long-term debt | $ 286 | 283 | 283 |
With Subsidiary Guarantee | Fixed Rate 5.25% Notes Due February 2028 | |||
Debt Instrument, Notional Amount | $ 486 | ||
Fixed interest rate | 5.25% | ||
Long-term debt | $ 483 | 498 | 497 |
With Subsidiary Guarantee | Fixed Rate 7.5% Notes Due June 2029 | |||
Debt Instrument, Notional Amount | $ 500 | ||
Fixed interest rate | 7.50% | ||
Long-term debt | $ 492 | 491 | 490 |
With Subsidiary Guarantee | Fixed Rate 6.625% Notes Due October 2030 [Member] | |||
Debt Instrument, Notional Amount | $ 958 | ||
Fixed interest rate | 6.625% | ||
Long-term debt | $ 950 | 991 | 991 |
With Subsidiary Guarantee | Fixed Rate 6.875% Notes Due November 2035 [Member] | |||
Debt Instrument, Notional Amount | $ 861 | ||
Fixed interest rate | 6.875% | ||
Long-term debt | $ 855 | 993 | 993 |
With Subsidiary Guarantee | Fixed Rate 6.75% Notes Due July 2036 [Member] | |||
Debt Instrument, Notional Amount | $ 614 | ||
Fixed interest rate | 6.75% | ||
Long-term debt | $ 609 | 694 | 694 |
With Subsidiary Guarantee | Senior Debt Obligations | |||
Long-term debt | 3,987 | 4,267 | 4,265 |
Without Subsidiary Guarantee | |||
Long-term debt | 510 | 595 | 595 |
Without Subsidiary Guarantee | Fixed Rate 6.95% Debentures Due March 2033 [Member] | |||
Debt Instrument, Notional Amount | $ 311 | ||
Fixed interest rate | 6.95% | ||
Long-term debt | $ 310 | 349 | 349 |
Without Subsidiary Guarantee | Fixed Rate 7.60% Notes Due July 2037 [Member] | |||
Debt Instrument, Notional Amount | $ 201 | ||
Fixed interest rate | 7.60% | ||
Long-term debt | $ 200 | $ 246 | $ 246 |
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 | 9 Months Ended | |
Dec. 01, 2023 | Oct. 28, 2023 | Oct. 28, 2023 | Oct. 29, 2022 | |
Debt Instrument [Line Items] | ||||
Debt instrument, redeemed amount | $ 174 | $ 373 | ||
Repayment of debt | 161 | 343 | $ 0 | |
Gain on repurchase of debt instrument | $ 12 | $ 28 | $ 0 | |
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redeemed amount | $ 93 | |||
Repayment of debt | $ 86 |
Long-term Debt and Borrowing _5
Long-term Debt and Borrowing Facilities Schedule of Repurchases of Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 28, 2023 | Oct. 28, 2023 | |
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | $ 174 | $ 373 |
Fixed Rate 9.375% Notes due July 2025 [Member] | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 0 | 6 |
Fixed Rate 6.625% Notes Due October 2030 [Member] | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 35 | 42 |
Fixed Rate 6.95% Debentures Due March 2033 [Member] | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 31 | 39 |
Fixed Rate 6.875% Notes Due November 2035 [Member] | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 78 | 139 |
Fixed Rate 6.75% Notes Due July 2036 [Member] | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 3 | 86 |
Fixed Rate 7.60% Notes Due July 2037 [Member] | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 13 | 47 |
Fixed Rate 5.25% Notes Due February 2028 | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | $ 14 | $ 14 |
Long-term Debt and Borrowing _6
Long-term Debt and Borrowing Facilities - Asset-Backed Revolving Credit Facility (Details) | 9 Months Ended |
Oct. 28, 2023 USD ($) | |
Letter of Credit | |
Letters of credit outstanding, amount | $ 10,000,000 |
Revolving Credit Facility | Revolving Credit Facility Expiring August 2026 | |
Credit agreement, borrowing capacity | 750,000,000 |
Line of credit, outstanding amount | 0 |
Line of credit facility, remaining borrowing capacity | $ 740,000,000 |
Revolving facility commitment fee percentage, unused capacity | 0.30% |
Revolving facility current credit fees percentage rate, letters of credit | 1.25% |
Revolving facility covenant fixed charge coverage ratio | 1 |
Line of credit financial covenant, maximum borrowing amount | $ 70,000,000 |
Line of credit financial covenant, percentage of maximum borrowing amount | 0.10 |
Line Of Credit Facility Current Borrowing Base | $ 1,169,000,000 |
Revolving Credit Facility | Revolving Credit Facility Expiring August 2026 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt instrument, basis spread on variable rate | 1.25% |
Revolving Credit Facility | Revolving Credit Facility Expiring August 2026 | Credit Spread Adjustment | |
Debt instrument, basis spread on variable rate | 0.10% |
Revolving Credit Facility | Revolving Credit Facility Expiring August 2026 | CDOR Spread | |
Debt instrument, basis spread on variable rate | 1.25% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Long-Term Debt, Disclosure (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | |
Principal Value | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt, fair value disclosure | $ 4,542 | $ 4,915 | $ 4,915 | |
Estimate of Fair Value Measurement | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt, fair value disclosure | [1] | $ 4,122 | $ 4,707 | $ 4,367 |
[1] The estimated fair value of the Company’s Long-term Debt is based on reported transaction prices, which are considered Level 2 inputs in accordance with Accounting Standards Codification 820, Fair Value Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Oct. 28, 2023 USD ($) |
Lease Agreements | |
Lease guarantees remaining after disposition of certain businesses | $ 267 |