Cover
Cover - shares | 3 Months Ended | |
May 04, 2024 | May 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 04, 2024 | |
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, $0.50 Par Value | |
Trading Symbol | BBWI | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 223,231,399 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000701985 | |
Current Fiscal Year End Date | --02-01 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Income Statement [Abstract] | ||
Net Sales | $ 1,384 | $ 1,396 |
Costs of Goods Sold, Buying and Occupancy | (778) | (800) |
Gross Profit | 606 | 596 |
General, Administrative and Store Operating Expenses | (419) | (415) |
Operating Income | 187 | 181 |
Interest Expense | (82) | (89) |
Other Income | 13 | 20 |
Income Before Income Taxes | 118 | 112 |
Provision for Income Taxes | 31 | 31 |
Net Income | $ 87 | $ 81 |
Net Income per Basic Share (in dollars per share) | $ 0.39 | $ 0.36 |
Net Income per Dilutive Share (in dollars per share) | $ 0.38 | $ 0.35 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 87 | $ 81 |
Other Comprehensive Income (Loss), Net of Tax: | ||
Foreign Currency Translation | (2) | (2) |
Unrealized Gain on Cash Flow Hedges | 1 | 1 |
Total Other Comprehensive Loss, Net of Tax | (1) | (1) |
Total Comprehensive Income | $ 86 | $ 80 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Current Assets: | |||
Cash and Cash Equivalents | $ 855 | $ 1,084 | $ 1,046 |
Accounts Receivable, Net | 121 | 224 | 145 |
Inventories | 814 | 710 | 771 |
Other | 127 | 97 | 118 |
Total Current Assets | 1,917 | 2,115 | 2,080 |
Property and Equipment, Net | 1,183 | 1,220 | 1,223 |
Operating Lease Assets | 1,047 | 1,056 | 1,072 |
Goodwill | 628 | 628 | 628 |
Trade Name | 165 | 165 | 165 |
Deferred Income Taxes | 143 | 144 | 37 |
Other Assets | 138 | 135 | 158 |
Total Assets | 5,221 | 5,463 | 5,363 |
Current Liabilities: | |||
Accounts Payable | 403 | 380 | 426 |
Accrued Expenses and Other | 489 | 608 | 585 |
Current Operating Lease Liabilities | 186 | 181 | 165 |
Income Taxes | 143 | 120 | 101 |
Total Current Liabilities | 1,221 | 1,289 | 1,277 |
Deferred Income Taxes | 147 | 147 | 168 |
Long-term Debt | 4,282 | 4,388 | 4,781 |
Long-term Operating Lease Liabilities | 990 | 1,004 | 1,032 |
Other Long-term Liabilities | 257 | 261 | 275 |
Shareholders’ Equity (Deficit): | |||
Preferred Stock - $1.00 par value; 10 shares authorized; none issued | 0 | 0 | 0 |
Common Stock - $0.00 par value; 1,000 shares authorized; 238, 240 and 244 shares issued; 223, 225 and 229 shares outstanding, respectively | 119 | 120 | 122 |
Paid-in Capital | 841 | 838 | 818 |
Accumulated Other Comprehensive Income | 74 | 75 | 77 |
Retained Earnings (Accumulated Deficit) | (1,889) | (1,838) | (2,366) |
Less: Treasury Stock, at Average Cost; 15, 15 and 15 shares, respectively | (822) | (822) | (822) |
Total Shareholders’ Equity (Deficit) | (1,677) | (1,627) | (2,171) |
Noncontrolling Interest | 1 | 1 | 1 |
Total Equity (Deficit) | (1,676) | (1,626) | (2,170) |
Total Liabilities and Equity (Deficit) | $ 5,221 | $ 5,463 | $ 5,363 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
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) | 238,000,000 | 240,000,000 | 244,000,000 |
Common Stock, shares outstanding (in shares) | 223,000,000 | 225,000,000 | 229,000,000 |
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 | Common Stock | Common Stock Other Share Repurchase Program | Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated Deficit) | Treasury Stock, at Average Cost | Treasury Stock, at Average Cost Other Share Repurchase Program | Noncontrolling Interest |
Ending Balance (in shares) | 229 | |||||||||
Beginning Balance (in shares) at Jan. 28, 2023 | 229 | |||||||||
Beginning Balance at Jan. 28, 2023 | $ (2,205) | $ 122 | $ 817 | $ 78 | $ (2,401) | $ (822) | $ 1 | |||
Net Income | 81 | 81 | ||||||||
Other Comprehensive Loss | (1) | (1) | ||||||||
Total Comprehensive Income | 80 | (1) | 81 | |||||||
Cash Dividends | (46) | $ 0 | 0 | 0 | (46) | 0 | 0 | |||
Share-based Compensation and Other (in shares) | 0 | |||||||||
Share-based Compensation and Other | 1 | $ 0 | 1 | |||||||
Ending Balance at Apr. 29, 2023 | $ (2,170) | $ 122 | 818 | 77 | (2,366) | (822) | 1 | |||
Ending Balance (in shares) | 229 | 229 | ||||||||
Ending Balance (in shares) | 225 | 225 | ||||||||
Beginning Balance (in shares) at Feb. 03, 2024 | 225 | 225 | ||||||||
Beginning Balance at Feb. 03, 2024 | $ (1,626) | $ 120 | 838 | 75 | (1,838) | (822) | 1 | |||
Net Income | 87 | 87 | ||||||||
Other Comprehensive Loss | (1) | (1) | ||||||||
Total Comprehensive Income | 86 | (1) | 87 | |||||||
Cash Dividends | (45) | (45) | ||||||||
Repurchases of Common Stock (in shares) | (2) | |||||||||
Repurchases of Common Stock | $ (99) | $ (99) | ||||||||
Treasury Share Retirement | 0 | $ (1) | (5) | 0 | (93) | 99 | ||||
Share-based Compensation and Other (in shares) | 0 | |||||||||
Share-based Compensation and Other | 8 | $ 0 | 8 | |||||||
Ending Balance at May. 04, 2024 | $ (1,676) | $ 119 | $ 841 | $ 74 | $ (1,889) | $ (822) | $ 1 | |||
Ending Balance (in shares) | 223 | 223 |
CONSOLIDATED STATEMENTS OF TO_2
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in USD per share) | $ 0.20 | $ 0.20 |
Total Comprehensive Income | $ 86 | $ 80 |
Net Income | $ 87 | $ 81 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Operating Activities: | ||
Net Income | $ 87 | $ 81 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation of Long-lived Assets | 71 | 63 |
Loss (Gain) on Extinguishment of Debt | 1 | (7) |
Share-based Compensation Expense | 12 | 7 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | 103 | 81 |
Inventories | (105) | (63) |
Accounts Payable, Accrued Expenses and Other | (101) | (113) |
Income Taxes Payable | 25 | 23 |
Other Assets and Liabilities | (17) | (28) |
Net Cash Provided by Operating Activities | 76 | 44 |
Investing Activities: | ||
Capital Expenditures | (46) | (93) |
Other Investing Activities | 0 | (1) |
Net Cash Used for Investing Activities | (46) | (94) |
Financing Activities: | ||
Payments for Long-term Debt | (110) | (74) |
Repurchases of Common Stock | (96) | 0 |
Dividends Paid | (45) | (46) |
Tax Payments Related to Share-based Awards | (7) | (8) |
Other Financing Activities | (1) | (7) |
Net Cash Used for Financing Activities | (259) | (135) |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | (1) |
Net Decrease in Cash and Cash Equivalents | (229) | (186) |
Cash and Cash Equivalents, Beginning of Year | 1,084 | 1,232 |
Cash and Cash Equivalents, End of Period | $ 855 | $ 1,046 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
May 04, 2024 | |
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, “first quarter of 2024” and “first quarter of 2023” refer to the thirteen-week periods ended May 4, 2024 and April 29, 2023, 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. Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended May 4, 2024 and April 29, 2023 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 2023 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 highest 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 it 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 it 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 $121 million as of May 4, 2024, $120 million as of February 3, 2024 and $126 million as of April 29, 2023, are recorded in Other Assets on the Consolidated Balance Sheets. As of May 4, 2024, the Company’s Easton investments included equity interests in Easton Town Center, LLC (“ETC”) and Easton Gateway, LLC (“EG”), entities that own and develop commercial entertainment and shopping centers. On May 10, 2024, the Company sold its entire interest in the business associated with EG and received cash proceeds of $23 million at closing (the “EG Transaction”). The Company’s investment in ETC is accounted for using the equity method of accounting. The Company has a majority financial interest in ETC, but an unaffiliated member manages it, and certain significant decisions regarding ETC require the consent of unaffiliated members in addition to the Company. Prior to the closing of the EG Transaction, the Company also accounted for its investment in EG using the equity method of accounting. 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 In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures , that expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance, and applies to companies with a single reportable segment. The standard is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , that requires enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this standard on its disclosures. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
May 04, 2024 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Revenue Recognition Accounts receivable, net from revenue-generating activities were $74 million as of May 4, 2024, $84 million as of February 3, 2024 and $79 million as of April 29, 2023. 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 $178 million as of May 4, 2024, $198 million as of February 3, 2024 and $171 million as of April 29, 2023. The Company recognized $71 million as revenue during the first quarter of 2024 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 first quarters of 2024 and 2023: First Quarter 2024 2023 (in millions) Stores - U.S. and Canada (a) $ 1,065 $ 1,034 Direct - U.S. and Canada 261 280 International (b) 58 82 Total Net Sales $ 1,384 $ 1,396 _______________ (a) Results include fulfilled buy online-pick up in store orders. (b) Results include royalties associated with franchised stores and wholesale sales. |
Net Income Per Share and Shareh
Net Income Per Share and Shareholders’ Equity (Deficit) | 3 Months Ended |
May 04, 2024 | |
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 first quarters of 2024 and 2023: First Quarter 2024 2023 (in millions) Common Shares 240 244 Treasury Shares (15) (15) Basic Shares 225 229 Effect of Dilutive Awards 1 1 Diluted Shares 226 230 Anti-dilutive Awards (a) 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 (the “Board”) authorized a $1.5 billion share repurchase program (the “February 2022 Program”). The Company did not repurchase any shares of its common stock under the February 2022 Program during the first quarter of 2023. Under the February 2022 Program, the Company repurchased the following shares of its common stock during the first quarter of 2024: Repurchase Program Shares Amount Average Stock Price (in thousands) (in millions) February 2022 842 $ 39 $ 46.08 The February 2022 Program had no remaining authority as of May 4, 2024. There were share repurchases of $1 million reflected in Accounts Payable on the February 3, 2024 Consolidated Balance Sheet. 2024 Share Repurchase Program In January 2024, the Board authorized a new $500 million share repurchase program (the “January 2024 Program”). Under the January 2024 Program, the Company repurchased the following shares of its common stock during the first quarter of 2024: Repurchase Program Shares Amount Average Stock Price (in thousands) (in millions) January 2024 1,329 $ 60 $ 45.32 The January 2024 Program had $440 million of remaining authority as of May 4, 2024. There were share repurchases of $5 million reflected in Accounts Payable on the May 4, 2024 Consolidated Balance Sheet. Common Stock Retirement Shares of common stock repurchased under the February 2022 and January 2024 Programs are retired and cancelled upon repurchase. As a result, the Company retired the 2.171 million shares repurchased during the first quarter of 2024, which resulted in reductions of $1 million in the par value of Common Stock, $5 million in Paid-in Capital and $93 million in Retained Earnings (Accumulated Deficit). Dividends The Company paid the following dividends during the first quarters of 2024 and 2023: Ordinary Dividends Total Paid (per share) (in millions) 2024 First Quarter $ 0.20 $ 45 2023 First Quarter $ 0.20 $ 46 In May 2024, the Company declared its second quarter 2024 ordinary dividend of $0.20 per share payable on June 21, 2024 to stockholders of record at the close of business on June 7, 2024. |
Inventories
Inventories | 3 Months Ended |
May 04, 2024 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The following table provides details of Inventories as of May 4, 2024, February 3, 2024 and April 29, 2023: May 4, February 3, April 29, (in millions) Finished Goods Merchandise $ 673 $ 558 $ 611 Raw Materials and Merchandise Components 141 152 160 Total Inventories $ 814 $ 710 $ 771 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 |
May 04, 2024 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-lived Assets The following table provides details of Property and Equipment, Net as of May 4, 2024, February 3, 2024 and April 29, 2023: May 4, February 3, April 29, (in millions) Property and Equipment, at Cost $ 3,129 $ 3,123 $ 2,993 Accumulated Depreciation and Amortization (1,946) (1,903) (1,770) Property and Equipment, Net $ 1,183 $ 1,220 $ 1,223 |
Income Taxes
Income Taxes | 3 Months Ended |
May 04, 2024 | |
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 2024, the Company’s effective tax rate was 26.8% compared to 27.7% in the first quarter of 2023. The 2024 and 2023 first quarter rates are higher than the Company’s combined estimated federal and state statutory rates primarily due to accrued interest expense related to unrecognized tax benefits. |
Long-term Debt and Borrowing Fa
Long-term Debt and Borrowing Facilities | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024, February 3, 2024 and April 29, 2023: May 4, February 3, April 29, (in millions) Senior Debt with Subsidiary Guarantee $314 million, 9.375% Fixed Interest Rate Notes due July 2025 (“2025 Notes”) $ 313 $ 313 $ 312 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) 287 287 284 $451 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 450 460 498 $493 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”) 485 492 491 $900 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”) 893 930 990 $806 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 800 806 979 $575 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 571 608 638 Total Senior Debt with Subsidiary Guarantee 3,799 3,896 4,192 Senior Debt $284 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) 283 293 346 $201 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 200 199 243 Total Senior Debt 483 492 589 Total Long-term Debt $ 4,282 $ 4,388 $ 4,781 Repurchases of Notes During the first quarter of 2024, the Company repurchased in the open market and extinguished $109 million principal amount of its outstanding senior notes. The aggregate repurchase price for these notes was $110 million, resulting in a pre-tax loss of $1 million, including the write-off of unamortized issuance costs. This loss is included in Other Income in the first quarter of 2024 Consolidated Statement of Income. During the first quarter of 2023, the Company repurchased in the open market and extinguished $84 million principal amount of its outstanding senior notes. The aggregate repurchase price for these notes was $76 million, resulting in a pre-tax gain of $7 million, including the write-off of unamortized issuance costs. This gain is included in Other Income in the first quarter of 2023 Consolidated Statement of Income. There were $2 million of repurchases reflected in Accounts Payable on the April 29, 2023 Consolidated Balance Sheet. The following table provides details of the outstanding principal amount of senior notes repurchased and extinguished during the first quarters of 2024 and 2023: First Quarter 2024 2023 (in millions) 2025 Notes $ — $ 6 2028 Notes 10 — 2029 Notes 7 — 2030 Notes 38 2 2033 Notes 10 3 2035 Notes 6 14 2036 Notes 38 57 2037 Notes — 2 Total $ 109 $ 84 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 May 4, 2024, the Company’s borrowing base was $656 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 $10 million of outstanding letters of credit as of May 4, 2024 that reduced its availability under the ABL Facility. As of May 4, 2024, the Company’s availability under the ABL Facility was $646 million. As of May 4, 2024, 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 Secured Overnight Financing Rate plus 1.25% and a credit spread adjustment of 0.10% per annum. The interest rate on Canadian dollar-denominated borrowings is presently set to the Canadian Dollar Offered Rate plus 1.25% per annum. Due to the phase-out of the Canadian Dollar Offered Rate, Canadian dollar-denominated borrowings outstanding on or after June 30, 2024 will accrue at the Canadian Prime Rate plus 0.25% 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 May 4, 2024, the Company was not required to maintain this ratio. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024, February 3, 2024 and April 29, 2023: May 4, February 3, April 29, (in millions) Principal Value $ 4,321 $ 4,430 $ 4,831 Fair Value, Estimated (a) 4,351 4,456 4,589 _______________ (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 | 3 Months Ended |
May 04, 2024 | |
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 from time to time may 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 $258 million as of May 4, 2024 related to lease payments under the current terms of noncancelable leases, primarily related to office space, expiring at various dates through 2037. These obligations include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the disposition of these businesses. The Company’s reserves related to these obligations were not significant for any period presented. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Pay vs Performance Disclosure | ||
Net Income | $ 87 | $ 81 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
May 04, 2024 | |
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) | 3 Months Ended |
May 04, 2024 | |
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 |
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 May 4, 2024 and April 29, 2023 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 2023 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 highest 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 it 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 it 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 | 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 $121 million as of May 4, 2024, $120 million as of February 3, 2024 and $126 million as of April 29, 2023, are recorded in Other Assets on the Consolidated Balance Sheets. As of May 4, 2024, the Company’s Easton investments included equity interests in Easton Town Center, LLC (“ETC”) and Easton Gateway, LLC (“EG”), entities that own and develop commercial entertainment and shopping centers. On May 10, 2024, the Company sold its entire interest in the business associated with EG and received cash proceeds of $23 million at closing (the “EG Transaction”). The Company’s investment in ETC is accounted for using the equity method of accounting. The Company has a majority financial interest in ETC, but an unaffiliated member manages it, and certain significant decisions regarding ETC require the consent of unaffiliated members in addition to the Company. Prior to the closing of the EG Transaction, the Company also accounted for its investment in EG using the equity method of accounting. 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 In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures , that expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance, and applies to companies with a single reportable segment. The standard is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , that requires enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this standard on its disclosures. |
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) | 3 Months Ended |
May 04, 2024 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue | The following table provides a disaggregation of Net Sales for the first quarters of 2024 and 2023: First Quarter 2024 2023 (in millions) Stores - U.S. and Canada (a) $ 1,065 $ 1,034 Direct - U.S. and Canada 261 280 International (b) 58 82 Total Net Sales $ 1,384 $ 1,396 _______________ (a) Results include fulfilled buy online-pick up in store orders. (b) 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) | 3 Months Ended |
May 04, 2024 | |
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 first quarters of 2024 and 2023: First Quarter 2024 2023 (in millions) Common Shares 240 244 Treasury Shares (15) (15) Basic Shares 225 229 Effect of Dilutive Awards 1 1 Diluted Shares 226 230 Anti-dilutive Awards (a) 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 the first quarter of 2024: Repurchase Program Shares Amount Average Stock Price (in thousands) (in millions) February 2022 842 $ 39 $ 46.08 Repurchase Program Shares Amount Average Stock Price (in thousands) (in millions) January 2024 1,329 $ 60 $ 45.32 |
Schedule of Dividends Paid | The Company paid the following dividends during the first quarters of 2024 and 2023: Ordinary Dividends Total Paid (per share) (in millions) 2024 First Quarter $ 0.20 $ 45 2023 First Quarter $ 0.20 $ 46 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
May 04, 2024 | |
Inventory, Net [Abstract] | |
Summary of Inventories | The following table provides details of Inventories as of May 4, 2024, February 3, 2024 and April 29, 2023: May 4, February 3, April 29, (in millions) Finished Goods Merchandise $ 673 $ 558 $ 611 Raw Materials and Merchandise Components 141 152 160 Total Inventories $ 814 $ 710 $ 771 |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 3 Months Ended |
May 04, 2024 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property And Equipment, Net | The following table provides details of Property and Equipment, Net as of May 4, 2024, February 3, 2024 and April 29, 2023: May 4, February 3, April 29, (in millions) Property and Equipment, at Cost $ 3,129 $ 3,123 $ 2,993 Accumulated Depreciation and Amortization (1,946) (1,903) (1,770) Property and Equipment, Net $ 1,183 $ 1,220 $ 1,223 |
Long-term Debt and Borrowing _2
Long-term Debt and Borrowing Facilities (Tables) | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024, February 3, 2024 and April 29, 2023: May 4, February 3, April 29, (in millions) Senior Debt with Subsidiary Guarantee $314 million, 9.375% Fixed Interest Rate Notes due July 2025 (“2025 Notes”) $ 313 $ 313 $ 312 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) 287 287 284 $451 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 450 460 498 $493 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”) 485 492 491 $900 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”) 893 930 990 $806 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 800 806 979 $575 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 571 608 638 Total Senior Debt with Subsidiary Guarantee 3,799 3,896 4,192 Senior Debt $284 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) 283 293 346 $201 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 200 199 243 Total Senior Debt 483 492 589 Total Long-term Debt $ 4,282 $ 4,388 $ 4,781 |
Schedule of Long-Term Debt Repurchases | The following table provides details of the outstanding principal amount of senior notes repurchased and extinguished during the first quarters of 2024 and 2023: First Quarter 2024 2023 (in millions) 2025 Notes $ — $ 6 2028 Notes 10 — 2029 Notes 7 — 2030 Notes 38 2 2033 Notes 10 3 2035 Notes 6 14 2036 Notes 38 57 2037 Notes — 2 Total $ 109 $ 84 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024, February 3, 2024 and April 29, 2023: May 4, February 3, April 29, (in millions) Principal Value $ 4,321 $ 4,430 $ 4,831 Fair Value, Estimated (a) 4,351 4,456 4,589 _______________ (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) $ in Millions | May 10, 2024 USD ($) | May 04, 2024 USD ($) season | Feb. 03, 2024 USD ($) | Apr. 29, 2023 USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Easton Investments, Including Carrying Value of Related Equity Method Investments | $ 121 | $ 120 | $ 126 | |
Number of selling seasons | season | 2 | |||
ETC | Subsequent Event | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of equity method investments | $ 23 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 04, 2024 | Apr. 29, 2023 | Feb. 03, 2024 | |
Disaggregation of Revenue [Line Items] | |||
Accounts receivable, after allowance for credit loss | $ 74 | $ 79 | $ 84 |
Deferred revenue | 178 | 171 | $ 198 |
Revenue recognized | 71 | ||
Net Sales | 1,384 | 1,396 | |
Outside of the U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 126 | $ 145 | |
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 | ||
May 04, 2024 | Apr. 29, 2023 | ||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 1,384 | $ 1,396 | |
Stores - U.S. and Canada (a) | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 1,065 | 1,034 | |
Direct - U.S. and Canada | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | 261 | 280 | |
International | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | [1] | $ 58 | $ 82 |
[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 | ||
May 04, 2024 | Apr. 29, 2023 | ||
Net Income Per Share and Shareholders’ Equity (Deficit) [Abstract] | |||
Common Shares (in shares) | 240 | 244 | |
Treasury Shares (in shares) | (15) | (15) | |
Basic Shares (in shares) | 225 | 229 | |
Effect of Dilutive Restricted Stock and Stock Options (in shares) | 1 | 1 | |
Diluted Shares (in shares) | 226 | 230 | |
Anti-dilutive Stock Options and Awards (in shares) | [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, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | |||
May 31, 2024 | May 04, 2024 | Feb. 03, 2024 | Jan. 31, 2024 | Feb. 02, 2022 | |
Accounts Payable | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Payable under repurchase agreements | $ 5 | $ 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 | ||||
Shares Repurchased (in shares) | 842 | ||||
Treasury stock, acquired | $ 39 | ||||
January 2024 Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Amount Authorized | $ 500 | ||||
Shares Repurchased (in shares) | 1,329 | ||||
Treasury stock, acquired | $ 60 | ||||
Remaining authorized repurchase amount | $ 440 |
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 | 3 Months Ended | ||
May 04, 2024 | Jan. 31, 2024 | Feb. 02, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||
Treasury share retirement (in shares) | 2,171 | ||
Paid-In Capital | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Share Retirement | $ 5 | ||
Par Value | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Share Retirement | 1 | ||
Retained Earnings (Accumulated Deficit) | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Share Retirement | $ 93 | ||
February 2022 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares Repurchased (in shares) | 842 | ||
Stock repurchase program, authorized amount | $ 1,500 | ||
Amount Repurchased | $ 39 | ||
Average Stock Price (in USD per share) | $ 46.08 | ||
January 2024 Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares Repurchased (in shares) | 1,329 | ||
Stock repurchase program, authorized amount | $ 500 | ||
Amount Repurchased | $ 60 | ||
Average Stock Price (in USD per share) | $ 45.32 |
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 | |
May 04, 2024 | Apr. 29, 2023 | |
Net Income Per Share and Shareholders’ Equity (Deficit) [Abstract] | ||
Ordinary dividends (in USD per share) | $ 0.20 | $ 0.20 |
Total Paid | $ 45 | $ 46 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Inventory, Net [Abstract] | |||
Finished Goods Merchandise | $ 673 | $ 558 | $ 611 |
Raw Materials and Merchandise Components | 141 | 152 | 160 |
Total Inventories | $ 814 | $ 710 | $ 771 |
Long-Lived Assets - Summary of
Long-Lived Assets - Summary of Property And Equipment, Net (Details) - USD ($) $ in Millions | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Property, Plant and Equipment [Abstract] | |||
Property and Equipment, at Cost | $ 3,129 | $ 3,123 | $ 2,993 |
Accumulated Depreciation and Amortization | (1,946) | (1,903) | (1,770) |
Property and Equipment, Net | $ 1,183 | $ 1,220 | $ 1,223 |
Long-Lived Assets - Narrative (
Long-Lived Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Depreciation | $ 71 | $ 63 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 26.80% | 27.70% |
Income taxes paid | $ 6 | $ 7 |
Long-term Debt and Borrowing _3
Long-term Debt and Borrowing Facilities - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Long-term debt | $ 4,282 | $ 4,388 | $ 4,781 |
With Subsidiary Guarantee | $314 million, 9.375% Fixed Interest Rate Notes due July 2025 (“2025 Notes”) | |||
Debt Instrument, Notional Amount | $ 314 | ||
Fixed interest rate | 9.375% | ||
Long-term debt | $ 313 | 313 | 312 |
With Subsidiary Guarantee | $297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) | |||
Debt Instrument, Notional Amount | $ 297 | ||
Fixed interest rate | 6.694% | ||
Long-term debt | $ 287 | 287 | 284 |
With Subsidiary Guarantee | $451 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) | |||
Debt Instrument, Notional Amount | $ 451 | ||
Fixed interest rate | 5.25% | ||
Long-term debt | $ 450 | 460 | 498 |
With Subsidiary Guarantee | $493 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”) | |||
Debt Instrument, Notional Amount | $ 493 | ||
Fixed interest rate | 7.50% | ||
Long-term debt | $ 485 | 492 | 491 |
With Subsidiary Guarantee | $900 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”) | |||
Debt Instrument, Notional Amount | $ 900 | ||
Fixed interest rate | 6.625% | ||
Long-term debt | $ 893 | 930 | 990 |
With Subsidiary Guarantee | $806 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) | |||
Debt Instrument, Notional Amount | $ 806 | ||
Fixed interest rate | 6.875% | ||
Long-term debt | $ 800 | 806 | 979 |
With Subsidiary Guarantee | $575 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) | |||
Debt Instrument, Notional Amount | $ 575 | ||
Fixed interest rate | 6.75% | ||
Long-term debt | $ 571 | 608 | 638 |
With Subsidiary Guarantee | Total Senior Debt with Subsidiary Guarantee | |||
Long-term debt | 3,799 | 3,896 | 4,192 |
Without Subsidiary Guarantee | |||
Long-term debt | 483 | 492 | 589 |
Without Subsidiary Guarantee | $284 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) | |||
Debt Instrument, Notional Amount | $ 284 | ||
Fixed interest rate | 6.95% | ||
Long-term debt | $ 283 | 293 | 346 |
Without Subsidiary Guarantee | $201 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) | |||
Debt Instrument, Notional Amount | $ 201 | ||
Fixed interest rate | 7.60% | ||
Long-term debt | $ 200 | $ 199 | $ 243 |
Long-term Debt and Borrowing _4
Long-term Debt and Borrowing Facilities - Repurchase of Notes (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Debt Instrument [Line Items] | ||
Debt instrument, redeemed amount | $ 109 | $ 84 |
Repayment of debt | 110 | 74 |
Loss (Gain) on Extinguishment of Debt | $ 1 | (7) |
Aggregate purchase price of debt extinguishment | 76 | |
Repayments of debt reflected in accounts payable | $ 2 |
Long-term Debt and Borrowing _5
Long-term Debt and Borrowing Facilities Schedule of Repurchases of Notes (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | $ 109 | $ 84 |
$314 million, 9.375% Fixed Interest Rate Notes due July 2025 (“2025 Notes”) | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 0 | 6 |
$900 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”) | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 38 | 2 |
$284 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 10 | 3 |
$493 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”) | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 7 | 0 |
$806 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 6 | 14 |
$575 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 38 | 57 |
$201 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | 0 | 2 |
$451 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) | ||
Schedule of Long-Term Debt Repurchases [Line Items] | ||
Debt instrument, redeemed amount | $ 10 | $ 0 |
Long-term Debt and Borrowing _6
Long-term Debt and Borrowing Facilities - Asset-Backed Revolving Credit Facility (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | May 04, 2024 | |
Certain Company Owned Subsidiaries | ||
Ownership percentage | 100% | |
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 | $ 646,000,000 | |
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 | $ 656,000,000 | |
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% | |
Revolving Credit Facility | Revolving Credit Facility Expiring August 2026 | Canadian Prime Rate Spread | Subsequent Event | ||
Debt instrument, basis spread on variable rate | 0.25% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Long-Term Debt, Disclosure (Details) - USD ($) $ in Millions | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 | |
Principal Value | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt, fair value disclosure | $ 4,321 | $ 4,430 | $ 4,831 | |
Estimate of Fair Value Measurement | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt, fair value disclosure | [1] | $ 4,351 | $ 4,456 | $ 4,589 |
[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 | May 04, 2024 USD ($) |
Lease Agreements | |
Lease guarantees remaining after disposition of certain businesses | $ 258 |