Kohl's (KSS) 10-Q 1 Sep 22 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 30, 2022	Aug. 26, 2022
Document Information [Line Items]
Entity Registrant Name	KOHL’S CORP
Entity Central Index Key	0000885639
Current Fiscal Year End Date	--01-28
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jul. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		116,638,020
Document Quarterly Report	true
Document Transition Report	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-1630919
Entity File Number	1-11084
Entity Address, Address Line One	N56 W17000 Ridgewood Drive
Entity Address, City or Town	Menomonee Falls
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53051
City Area Code	262
Local Phone Number	703-7000
Common Stock, $.01 par value [Member]
Document Information [Line Items]
Title of each class	Common Stock, $.01 par value
Trading Symbol(s)	KSS
Name of each exchange on which registered	NYSE
Preferred Stock Purchase Rights [Member]
Document Information [Line Items]
Title of each class	Preferred Stock Purchase Rights
No Trading Symbol Flag	true
Name of each exchange on which registered	NYSE

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jul. 30, 2022	Jan. 29, 2022	Jul. 31, 2021
Current assets:
Cash and cash equivalents	$ 222	$ 1,587	$ 2,569
Merchandise inventories	4,034	3,067	2,733
Other	374	369	356
Total current assets	4,630	5,023	5,658
Property and equipment, net	8,228	7,304	7,107
Operating leases	2,296	2,248	2,301
Other assets	469	479	440
Total assets	15,623	15,054	15,506
Current liabilities:
Accounts payable	1,497	1,683	1,495
Accrued liabilities	1,426	1,340	1,554
Borrowings under revolving credit facility	79
Current portion of:
Long-term debt	164
Finance lease and financing obligations	96	118	117
Operating leases	108	145	143
Total current liabilities	3,370	3,286	3,309
Long-term debt	1,747	1,910	1,909
Finance lease and financing obligations	2,830	2,133	1,906
Operating leases	2,568	2,479	2,532
Deferred income taxes	194	206	245
Other long-term liabilities	370	379	386
Shareholders’ equity:
Common stock	4	4	4
Paid-in capital	3,406	3,375	3,349
Treasury stock, at cost	(13,151)	(12,975)	(11,920)
Retained earnings	14,285	14,257	13,786
Total shareholders’ equity	4,544	4,661	5,219
Total liabilities and shareholders’ equity	$ 15,623	$ 15,054	$ 15,506

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Total revenue	$ 4,087	$ 4,447	$ 7,802	$ 8,334
Cost of merchandise sold	2,332	2,426	4,472	4,659
Operating expenses:
Selling, general, and administrative	1,283	1,241	2,576	2,411
Depreciation and amortization	206	210	406	421
Operating income	266	570	348	843
Interest expense, net	77	62	145	129
Loss on extinguishment of debt				201
Income before income taxes	189	508	203	513
Provision for income taxes	46	126	46	117
Net income	$ 143	$ 382	$ 157	$ 396
Net income per share:
Basic	$ 1.13	$ 2.51	$ 1.24	$ 2.58
Diluted	$ 1.11	$ 2.48	$ 1.22	$ 2.55
Net Sales [Member]
Total revenue	$ 3,863	$ 4,223	$ 7,334	$ 7,885
Other Revenue [Member]
Total revenue	$ 224	$ 224	$ 468	$ 449

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common Stock [Member]	Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]
Balance, beginning of period at Jan. 30, 2021		$ 4	$ 3,319	$ (11,595)	$ 13,468
Treasury stock purchases				(301)
Stock-based awards			30	(25)
Net income	$ 396				396
Dividends paid				1	(78)
Balance, end of period at Jul. 31, 2021	$ 5,219	$ 4	3,349	$ (11,920)	13,786
Shares, beginning of period at Jan. 30, 2021		377		(219)
Treasury stock purchases				(6)
Shares, end of period at Jul. 31, 2021	152	377		(225)
Dividends paid per common share	$ 0.50
Balance, beginning of period at May. 01, 2021		$ 4	3,333	$ (11,663)	13,443
Treasury stock purchases				(255)
Stock-based awards			16	(3)
Net income	$ 382				382
Dividends paid				1	(39)
Balance, end of period at Jul. 31, 2021	$ 5,219	$ 4	3,349	$ (11,920)	13,786
Shares, beginning of period at May. 01, 2021		377		(220)
Treasury stock purchases				(5)
Shares, end of period at Jul. 31, 2021	152	377		(225)
Dividends paid per common share	$ 0.25
Balance, beginning of period at Jan. 29, 2022	$ 4,661	$ 4	3,375	$ (12,975)	14,257
Treasury stock purchases				(158)
Stock-based awards			31	(20)
Net income	157				157
Dividends paid				2	(129)
Balance, end of period at Jul. 30, 2022	$ 4,544	$ 4	3,406	$ (13,151)	14,285
Shares, beginning of period at Jan. 29, 2022		377		(246)
Treasury stock purchases				(3)
Shares, end of period at Jul. 30, 2022	128	377		(249)
Dividends paid per common share	$ 1
Balance, beginning of period at Apr. 30, 2022		$ 4	3,395	$ (13,150)	14,207
Stock-based awards			11	(2)
Net income	$ 143				143
Dividends paid				1	(65)
Balance, end of period at Jul. 30, 2022	$ 4,544	$ 4	$ 3,406	$ (13,151)	$ 14,285
Shares, beginning of period at Apr. 30, 2022		377		(249)
Shares, end of period at Jul. 30, 2022	128	377		(249)
Dividends paid per common share	$ 0.50

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021
Operating activities
Net income	$ 157	$ 396
Adjustments to reconcile net income to net cash (Used in) provided by operating activities:
Depreciation and amortization	406	421
Share-based compensation	26	25
Deferred income taxes	(12)	(57)
Loss on extinguishment of debt		201
Non-cash lease expense	56	74
Other non-cash expense	5	9
Changes in operating assets and liabilities:
Merchandise inventories	(964)	(138)
Other current and long-term assets	(29)	590
Accounts payable	(185)	19
Accrued and other long-term liabilities	51	228
Operating lease liabilities	(57)	(76)
Net cash (used in) provided by operating activities	(546)	1,692
Investing activities
Acquisition of property and equipment	(548)	(191)
Proceeds from sale of real estate	4	4
Net cash used in investing activities	(544)	(187)
Financing activities
Proceeds from issuance of debt		500
Net borrowings under revolving credit facility	79
Deferred financing costs		(5)
Treasury stock purchases	(158)	(301)
Shares withheld for taxes on vested restricted shares	(20)	(25)
Dividends paid	(127)	(77)
Reduction of long-term borrowings		(1,044)
Premium paid on redemption of debt		(192)
Finance lease and financing obligation payments	(55)	(65)
Proceeds from financing obligations	5	4
Proceeds from stock option exercises	1	1
Other		(3)
Net cash used in provided by financing activities	(275)	(1,207)
Net (decrease) increase in cash and cash equivalents	(1,365)	298
Cash and cash equivalents at beginning of period	1,587	2,271
Cash and cash equivalents at end of period	222	2,569
Supplemental information
Interest paid, net of capitalized interest	137	128
Income taxes paid	$ 49	$ 43

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for fiscal year end Consolidated Financial Statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the Consolidated Financial Statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended January 29, 2022 (Commission File No. 1-11084) as filed with the Securities and Exchange Commission. Due to the seasonality of the business of Kohl’s Corporation (the “Company,” “Kohl’s,” “we,” “our,” or “us”), results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. We operate as a single business unit. Recent Accounting Pronouncements We do not expect that any recently issued accounting pronouncements will have a material impact on our Consolidated Financial Statements.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jul. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	2. Revenue Recognition The following table summarizes net sales by line of business: Three Months Ended Six Months Ended (Dollars in Millions) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Women's $ 1,239 $ 1,344 $ 2,316 $ 2,461 Men's 865 942 1,575 1,629 Home 502 609 1,027 1,243 Accessories 458 403 848 771 Children's 414 463 825 931 Footwear 385 462 743 850 Net Sales $ 3,863 $ 4,223 $ 7,334 $ 7,885 Unredeemed gift cards and merchandise return card liabilities totaled $ 294 million as of July 30, 2022, $ 353 million as of January 29, 2022, and $ 281 million as of July 31, 2021. In the second quarter of 2022 and 2021, net sales recognized from gift cards redeemed in the current period and issued in prior years totaled $ 39 million and $ 38 million, respectively. Year to date 2022 and 2021, net sales of $ 113 million and $ 110 million, respectively, were recognized during the current period from gift cards redeemed during the current year and issued in prior years.

Debt

Debt	6 Months Ended
	Jul. 30, 2022
Debt Disclosure [Abstract]
Debt	3. Debt B orrowings under the revolving credit facility, recorded as short-term debt, has $ 79 million outstanding as of July 30, 2022. No amounts were outstanding at January 29, 2022 or July 31, 2021. Long-term debt, which excludes borrowings on the revolving credit facility, consists of the following unsecured debt: Outstanding Maturity (Dollars in Millions) Effective Rate Coupon Rate July 30, January 29, July 31, 2023 3.25 % 3.25 % $ 164 $ 164 $ 164 2023 4.78 % 4.75 % 111 111 111 2025 9.50 % 9.50 % 113 113 113 2025 4.25 % 4.25 % 353 353 353 2029 7.36 % 7.25 % 42 42 42 2031 3.40 % 3.38 % 500 500 500 2033 6.05 % 6.00 % 112 112 112 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 427 427 Outstanding unsecured senior debt 1,923 1,923 1,923 Unamortized debt discounts and deferred financing costs ( 12 ) ( 13 ) ( 14 ) Current portion of unsecured senior debt ( 164 ) — — Long-term unsecured senior debt $ 1,747 $ 1,910 $ 1,909 Effective interest rate 4.89 % 4.89 % 4.89 % Our unsecured senior long-term debt is classified as Level 1, financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our unsecured senior debt was $ 1.7 billion at July 30, 2022, $ 2.0 billion at January 29, 2022, and $ 2.2 billion at July 31, 2021. Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of July 30, 2022, we were in compliance with all covenants of the various debt agreements.

Leases

Leases	6 Months Ended
	Jul. 30, 2022
Leases [Abstract]
Leases	4. Leases We lease certain property and equipment used in our operations. Some of our store leases include additional rental payments based on a percentage of sales over contractual levels or which are adjusted periodically for inflation. Our typical store lease has an initial term of 20 to 25 years and four to eight five-year renewal options. Lease assets represent our right to use an underlying asset for the lease term. Lease assets are recognized at commencement date based on the value of the lease liability and are adjusted for any lease payments made to the lessor at or before commencement date, minus any lease incentives received and any initial direct costs incurred by the lessee. Lease liabilities represent our contractual obligation to make lease payments. At the commencement date, the lease liabilities equal the present value of minimum lease payments over the lease term. As the implicit interest rate is not readily identifiable in our leases, we estimate our collateralized borrowing rate to calculate the present value of lease payments. Leases with a term of 12 months or less are excluded from the balance; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and non-lease components for new and modified leases. During the first half of 2022, we opened 340 Sephora shop-in-shops within our Kohl's stores and now have a total of 540 open as of the end of the second quarter. We plan to open an additional 60 shop-in-shops during the remainder of 2022, as well as at least 250 more shops in 2023. We are also working with Sephora to have a Sephora presence in the remaining approximately 300 stores. Due to the investments we are making in the shop-in-shops, we reassessed our lease term when construction began as these assets will have significant economic value to us when the lease term becomes exercisable. The impact of these assessments resulted in additional lease term, additional lease assets and liabilities, and, in some cases, changes to the classification. The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in Millions) Classification July 30, January 29, July 31, Assets Operating leases Operating leases $ 2,296 $ 2,248 $ 2,301 Finance leases Property and equipment, net 2,114 1,442 1,226 Total operating and finance leases 4,410 3,690 3,527 Liabilities Current Operating leases Current portion of operating leases 108 145 143 Finance leases Current portion of finance leases and financing obligations 78 87 83 Noncurrent Operating leases Operating leases 2,568 2,479 2,532 Finance leases Finance leases and financing obligations 2,381 1,688 1,457 Total operating and finance leases $ 5,135 $ 4,399 $ 4,215 Consolidated Statement of Operations Three Months Ended Six Months Ended (Dollars in Millions) Classification July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Operating leases Selling, general, and administrative $ 64 $ 79 $ 133 $ 156 Finance leases Amortization of leased assets Depreciation and amortization 32 23 61 43 Interest on leased assets Interest expense, net 36 27 68 52 Total operating and finance leases $ 132 $ 129 $ 262 $ 251 Consolidated Statement of Cash Flows Six Months Ended (Dollars in Millions) July 30, 2022 July 31, 2021 Cash paid for amounts included in the measurement of leased liabilities Operating cash flows from operating leases $ 135 $ 165 Operating cash flows from finance leases 65 52 Financing cash flows from finance leases 44 47 The following table summarizes future lease payments by fiscal year: July 30, 2022 (Dollars in millions) Operating Leases Finance Leases Total 2022 $ 124 $ 94 $ 218 2023 251 218 469 2024 233 210 443 2025 227 205 432 2026 223 205 428 After 2026 3,617 3,722 7,339 Total lease payments $ 4,675 $ 4,654 $ 9,329 Amount representing interest ( 1,999 ) ( 2,195 ) ( 4,194 ) Lease liabilities $ 2,676 $ 2,459 $ 5,135 The following table summarizes weighted-average remaining lease term and discount rate: July 30, 2022 January 29, 2022 Weighted-average remaining term (years) Operating leases 20 20 Finance leases 21 20 Weighted-average discount rate Operating leases 6 % 6 % Finance leases 6 % 7 % Other lease information is as follows: Six Months Ended (Dollars in Millions) July 30, 2022 July 31, 2021 Property and equipment acquired (disposed) through exchange of: Finance lease liabilities $ 730 $ 569 Operating lease liabilities 114 ( 29 ) Financing Obligations The following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in millions) Classification July 30, January 29, July 31, Assets Financing obligations Property and equipment, net $ 52 $ 55 $ 60 Liabilities Current Current portion of finance leases and financing obligations 18 31 34 Noncurrent Finance leases and financing obligations 449 445 449 Total financing obligations $ 467 $ 476 $ 483 Consolidated Statement of Operations Three Months Ended Six Months Ended (Dollars in Millions) Classification July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Amortization of financing obligation assets Depreciation and amortization 2 3 4 5 Interest on financing obligations Interest expense, net 15 10 27 19 Total financing obligations $ 17 $ 13 $ 31 $ 24 Consolidated Statement of Cash Flows Six Months Ended (Dollars in Millions) July 30, 2022 July 31, 2021 Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 26 $ 19 Financing cash flows from financing obligations 11 18 Proceeds from financing obligations 5 4 The following table summarizes future financing obligation payments by fiscal year: July 30, 2022 (Dollars in millions) Financing Obligations 2022 $ 37 2023 78 2024 77 2025 75 2026 74 After 2026 957 Total lease payments $ 1,298 Non-cash gain on future sale of property 167 Amount representing interest ( 998 ) Financing obligation liability $ 467 The following table summarizes the weighted-average remaining term and discount rate for financing obligations: July 30, 2022 January 29, 2022 Weighted-average remaining term (years) 14 10 Weighted-average discount rate 13 % 9 %

Stock-Based Awards

Stock-Based Awards	6 Months Ended
	Jul. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Awards	5. Stock-Based Awards The following table summarizes our stock-based awards activity for the six months ended July 30, 2022: Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Shares Weighted Units Weighted Balance - January 29, 2022 12 $ 48.66 2,769 $ 36.17 856 $ 42.74 Granted — — 678 57.47 236 67.18 Exercised/vested ( 12 ) 48.66 ( 987 ) 38.89 — — Forfeited/expired — — ( 105 ) 43.99 ( 218 ) 36.89 Balance - July 30, 2022 — $— 2,355 $ 40.81 874 $ 50.79 In 2019, we issued 1,747,441 stock warrants. The total vested and unvested warrants as of July 30, 2022 were 1,048,465 and 698,976 , respectively.

Contingencies

Contingencies	6 Months Ended
	Jul. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Contingencies	6. Contingencies We are subject to certain legal proceedings and claims arising out of the conduct of our business. In the opinion of management, the outcome of these proceedings and litigation will not have a material adverse impact on our Consolidated Financial Statements.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes The effective income tax rate for the second quarter of 2022 was 24.6 % compared to 24.8 % for the second quarter of 2021. Year to date, the rate is 22.8 % for both the current and prior year periods. The year to date rates reflect the recognition of favorable tax items in the first quarter of both 2022 and 2021.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jul. 30, 2022
Earnings Per Share [Abstract]
Net Income Per Share	8. Net Income Per Share Basic net income per share is net income divided by the average number of common shares outstanding during the period. Diluted net income per share includes incremental shares assumed for share-based awards and stock warrants. Potentially dilutive shares include stock options, unvested restricted stock units and awards, and warrants outstanding during the period, using the treasury stock method. Potentially dilutive shares are excluded from the computations of diluted earnings per share (“EPS”) if their effect would be anti-dilutive. The information required to compute basic and diluted net income per share is as follows: Three Months Ended Six Months Ended (Dollar and Shares in Millions, Except per Share Data) July 30, July 31, July 30, July 31, Numerator—Net income $ 143 $ 382 $ 157 $ 396 Denominator—Weighted-average shares: Basic 127 152 127 153 Dilutive impact 1 2 2 2 Diluted 128 154 129 155 Net income per share: Basic $ 1.13 $ 2.51 $ 1.24 $ 2.58 Diluted $ 1.11 $ 2.48 $ 1.22 $ 2.55 The following potential shares of common stock were excluded from the diluted net income per share calculation because their effect would have been anti-dilutive: Three Months Ended Six Months Ended (Shares in Millions) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Anti-dilutive shares 3 3 3 3

Subsequent Events

Subsequent Events	6 Months Ended
	Jul. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events On August 9, 2022 , the Board of Directors of the Company declared a quarterly cash dividend of $ 0.50 per share. The dividend will be paid on September 21, 2022 to all shareholders of record at the close of business on September 7, 2022 . On August 18, 2022, the Company entered into an accelerated share repurchase agreement ("ASR"), pursuant to its previously announced share repurchase program, with Goldman Sachs & Co. LLC to repurchase approximately $ 500 million of the Company’s common stock. On August 22, 2022, the Company received an initial delivery of approximately 11.8 million shares of common stock, representing approximately 80 % of the total shares that are expected to be repurchased under the ASR. Final settlement of the transactions under the ASR is expected to occur in November 2022.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jul. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements We do not expect that any recently issued accounting pronouncements will have a material impact on our Consolidated Financial Statements.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jul. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Net Sales by Line of Business	The following table summarizes net sales by line of business: Three Months Ended Six Months Ended (Dollars in Millions) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Women's $ 1,239 $ 1,344 $ 2,316 $ 2,461 Men's 865 942 1,575 1,629 Home 502 609 1,027 1,243 Accessories 458 403 848 771 Children's 414 463 825 931 Footwear 385 462 743 850 Net Sales $ 3,863 $ 4,223 $ 7,334 $ 7,885

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jul. 30, 2022
Debt Disclosure [Abstract]
Components of Long-term Debt	Long-term debt, which excludes borrowings on the revolving credit facility, consists of the following unsecured debt: Outstanding Maturity (Dollars in Millions) Effective Rate Coupon Rate July 30, January 29, July 31, 2023 3.25 % 3.25 % $ 164 $ 164 $ 164 2023 4.78 % 4.75 % 111 111 111 2025 9.50 % 9.50 % 113 113 113 2025 4.25 % 4.25 % 353 353 353 2029 7.36 % 7.25 % 42 42 42 2031 3.40 % 3.38 % 500 500 500 2033 6.05 % 6.00 % 112 112 112 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 427 427 Outstanding unsecured senior debt 1,923 1,923 1,923 Unamortized debt discounts and deferred financing costs ( 12 ) ( 13 ) ( 14 ) Current portion of unsecured senior debt ( 164 ) — — Long-term unsecured senior debt $ 1,747 $ 1,910 $ 1,909 Effective interest rate 4.89 % 4.89 % 4.89 %

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 30, 2022
Leases [Abstract]
Summary of Operating and Finance Leases	The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in Millions) Classification July 30, January 29, July 31, Assets Operating leases Operating leases $ 2,296 $ 2,248 $ 2,301 Finance leases Property and equipment, net 2,114 1,442 1,226 Total operating and finance leases 4,410 3,690 3,527 Liabilities Current Operating leases Current portion of operating leases 108 145 143 Finance leases Current portion of finance leases and financing obligations 78 87 83 Noncurrent Operating leases Operating leases 2,568 2,479 2,532 Finance leases Finance leases and financing obligations 2,381 1,688 1,457 Total operating and finance leases $ 5,135 $ 4,399 $ 4,215 Consolidated Statement of Operations Three Months Ended Six Months Ended (Dollars in Millions) Classification July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Operating leases Selling, general, and administrative $ 64 $ 79 $ 133 $ 156 Finance leases Amortization of leased assets Depreciation and amortization 32 23 61 43 Interest on leased assets Interest expense, net 36 27 68 52 Total operating and finance leases $ 132 $ 129 $ 262 $ 251 Consolidated Statement of Cash Flows Six Months Ended (Dollars in Millions) July 30, 2022 July 31, 2021 Cash paid for amounts included in the measurement of leased liabilities Operating cash flows from operating leases $ 135 $ 165 Operating cash flows from finance leases 65 52 Financing cash flows from finance leases 44 47
Summary of Future Lease Payments	The following table summarizes future lease payments by fiscal year: July 30, 2022 (Dollars in millions) Operating Leases Finance Leases Total 2022 $ 124 $ 94 $ 218 2023 251 218 469 2024 233 210 443 2025 227 205 432 2026 223 205 428 After 2026 3,617 3,722 7,339 Total lease payments $ 4,675 $ 4,654 $ 9,329 Amount representing interest ( 1,999 ) ( 2,195 ) ( 4,194 ) Lease liabilities $ 2,676 $ 2,459 $ 5,135
Summary of Weighted-Average Remaining Lease Term and Discount Rates	The following table summarizes weighted-average remaining lease term and discount rate: July 30, 2022 January 29, 2022 Weighted-average remaining term (years) Operating leases 20 20 Finance leases 21 20 Weighted-average discount rate Operating leases 6 % 6 % Finance leases 6 % 7 %
Summary of Other Lease Information	Other lease information is as follows: Six Months Ended (Dollars in Millions) July 30, 2022 July 31, 2021 Property and equipment acquired (disposed) through exchange of: Finance lease liabilities $ 730 $ 569 Operating lease liabilities 114 ( 29 )
Summary of Financing Obligations	The following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in millions) Classification July 30, January 29, July 31, Assets Financing obligations Property and equipment, net $ 52 $ 55 $ 60 Liabilities Current Current portion of finance leases and financing obligations 18 31 34 Noncurrent Finance leases and financing obligations 449 445 449 Total financing obligations $ 467 $ 476 $ 483 Consolidated Statement of Operations Three Months Ended Six Months Ended (Dollars in Millions) Classification July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Amortization of financing obligation assets Depreciation and amortization 2 3 4 5 Interest on financing obligations Interest expense, net 15 10 27 19 Total financing obligations $ 17 $ 13 $ 31 $ 24 Consolidated Statement of Cash Flows Six Months Ended (Dollars in Millions) July 30, 2022 July 31, 2021 Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 26 $ 19 Financing cash flows from financing obligations 11 18 Proceeds from financing obligations 5 4
Summary of Future Financing Obligation Payments	The following table summarizes future financing obligation payments by fiscal year: July 30, 2022 (Dollars in millions) Financing Obligations 2022 $ 37 2023 78 2024 77 2025 75 2026 74 After 2026 957 Total lease payments $ 1,298 Non-cash gain on future sale of property 167 Amount representing interest ( 998 ) Financing obligation liability $ 467
Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations	The following table summarizes the weighted-average remaining term and discount rate for financing obligations: July 30, 2022 January 29, 2022 Weighted-average remaining term (years) 14 10 Weighted-average discount rate 13 % 9 %

Stock-Based Awards (Tables)

Stock-Based Awards (Tables)	6 Months Ended
	Jul. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Stock-Based Awards Activity	The following table summarizes our stock-based awards activity for the six months ended July 30, 2022: Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Shares Weighted Units Weighted Balance - January 29, 2022 12 $ 48.66 2,769 $ 36.17 856 $ 42.74 Granted — — 678 57.47 236 67.18 Exercised/vested ( 12 ) 48.66 ( 987 ) 38.89 — — Forfeited/expired — — ( 105 ) 43.99 ( 218 ) 36.89 Balance - July 30, 2022 — $— 2,355 $ 40.81 874 $ 50.79

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jul. 30, 2022
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income Per Share	The information required to compute basic and diluted net income per share is as follows: Three Months Ended Six Months Ended (Dollar and Shares in Millions, Except per Share Data) July 30, July 31, July 30, July 31, Numerator—Net income $ 143 $ 382 $ 157 $ 396 Denominator—Weighted-average shares: Basic 127 152 127 153 Dilutive impact 1 2 2 2 Diluted 128 154 129 155 Net income per share: Basic $ 1.13 $ 2.51 $ 1.24 $ 2.58 Diluted $ 1.11 $ 2.48 $ 1.22 $ 2.55
Schedule of Potential Shares of Common Stock Excluded From the Diluted Net Income Per Share	The following potential shares of common stock were excluded from the diluted net income per share calculation because their effect would have been anti-dilutive: Three Months Ended Six Months Ended (Shares in Millions) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Anti-dilutive shares 3 3 3 3

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Net Sales by Line of Business (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Disaggregation Of Revenue [Line Items]
Total revenue	$ 4,087	$ 4,447	$ 7,802	$ 8,334
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	3,863	4,223	7,334	7,885
Net Sales [Member] | Women's [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	1,239	1,344	2,316	2,461
Net Sales [Member] | Men's [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	865	942	1,575	1,629
Net Sales [Member] | Home [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	502	609	1,027	1,243
Net Sales [Member] | Accessories [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	458	403	848	771
Net Sales [Member] | Children's [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	414	463	825	931
Net Sales [Member] | Footwear [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 385	$ 462	$ 743	$ 850

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021	Jan. 29, 2022
Disaggregation Of Revenue [Line Items]
Rewards Program unredeemed gift cards and merchandise return cards liabilities	$ 294	$ 281	$ 294	$ 281	$ 353
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Revenue recognized	$ 39	$ 38	$ 113	$ 110

Debt - Components of Long-term

Debt - Components of Long-term Debt (Details) - USD ($) $ in Millions	Jul. 30, 2022	Jan. 29, 2022	Jul. 31, 2021
Debt Instrument [Line Items]
Effective interest rate	4.89%	4.89%	4.89%
Outstanding	$ 1,923	$ 1,923	$ 1,923
Unamortized debt discounts and deferred financing costs	(12)	(13)	(14)
Current portion of unsecured senior debt	(164)
Long-term unsecured senior debt	$ 1,747	1,910	1,909
Senior Notes [Member] | Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Effective interest rate	3.25%
Coupon Rate	3.25%
Outstanding	$ 164	164	164
Senior Notes [Member] | Senior Notes 4.78% Due 2023 [Member]
Debt Instrument [Line Items]
Effective interest rate	4.78%
Coupon Rate	4.75%
Outstanding	$ 111	111	111
Senior Notes [Member] | Senior Notes Due 2025 [Member]
Debt Instrument [Line Items]
Effective interest rate	9.50%
Coupon Rate	9.50%
Outstanding	$ 113	113	113
Senior Notes [Member] | Senior Notes 4.25% Due 2025 [Member]
Debt Instrument [Line Items]
Effective interest rate	4.25%
Coupon Rate	4.25%
Outstanding	$ 353	353	353
Senior Notes [Member] | Senior Notes Due 2029 [Member]
Debt Instrument [Line Items]
Effective interest rate	7.36%
Coupon Rate	7.25%
Outstanding	$ 42	42	42
Senior Notes [Member] | Senior Notes Due 2031 [Member]
Debt Instrument [Line Items]
Effective interest rate	3.40%
Coupon Rate	3.38%
Outstanding	$ 500	500	500
Senior Notes [Member] | Senior Notes Due 2033 [Member]
Debt Instrument [Line Items]
Effective interest rate	6.05%
Coupon Rate	6%
Outstanding	$ 112	112	112
Senior Notes [Member] | Senior Notes Due 2037 [Member]
Debt Instrument [Line Items]
Effective interest rate	6.89%
Coupon Rate	6.88%
Outstanding	$ 101	101	101
Senior Notes [Member] | Senior Notes Due 2045 [Member]
Debt Instrument [Line Items]
Effective interest rate	5.57%
Coupon Rate	5.55%
Outstanding	$ 427	$ 427	$ 427

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Jul. 30, 2022	Jan. 29, 2022	Jul. 31, 2021
Debt Instrument [Line Items]
Short-term debt, outstanding	$ 79,000,000	$ 0	$ 0
Unsecured Senior Debt [Member]
Debt Instrument [Line Items]
Unsecured senior debt	$ 1,700,000,000	$ 2,000,000,000	$ 2,200,000,000

Leases - Additional Information

Leases - Additional Information (Details)	6 Months Ended
	Jul. 30, 2022 Shop Store
Lessee, Lease, Description [Line Items]
Number of Sephora shops opened	540
Number of Sephora shops opened during the period	340
Number of Sephora shops to be opened remainder of of 2022	60
Number Of Sephora shops to be opened in 2023	250
Number of Sephora remaining stores | Store	300
Store [Member]
Lessee, Lease, Description [Line Items]
Lease extension term	5 years
Minimum [Member] | Store [Member]
Lessee, Lease, Description [Line Items]
Lease initial term	20 years
Lease renewal term	4 years
Maximum [Member] | Store [Member]
Lessee, Lease, Description [Line Items]
Lease initial term	25 years
Lease renewal term	8 years

Leases - Summary of Operating a

Leases - Summary of Operating and Finance Leases (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021	Jan. 29, 2022
Assets
Operating leases	$ 2,296	$ 2,301	$ 2,296	$ 2,301	$ 2,248
Finance leases	$ 2,114	$ 1,226	$ 2,114	$ 1,226	$ 1,442
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net	Property and equipment, net	Property and equipment, net	Property and equipment, net	Property and equipment, net
Total operating and finance leases	$ 4,410	$ 3,527	$ 4,410	$ 3,527	$ 3,690
Current liabilities:
Operating leases	108	143	108	143	145
Finance leases	$ 78	$ 83	$ 78	$ 83	$ 87
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Finance Lease Liability And Financing Obligation Current	Finance Lease Liability And Financing Obligation Current	Finance Lease Liability And Financing Obligation Current	Finance Lease Liability And Financing Obligation Current	Finance Lease Liability And Financing Obligation Current
Noncurrent
Operating leases	$ 2,568	$ 2,532	$ 2,568	$ 2,532	$ 2,479
Finance leases	$ 2,381	$ 1,457	$ 2,381	$ 1,457	$ 1,688
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Finance Lease Liability And Financing Obligation Noncurrent	Finance Lease Liability And Financing Obligation Noncurrent	Finance Lease Liability And Financing Obligation Noncurrent	Finance Lease Liability And Financing Obligation Noncurrent	Finance Lease Liability And Financing Obligation Noncurrent
Total operating and finance leases	$ 5,135	$ 4,215	$ 5,135	$ 4,215	$ 4,399
Income Statement
Operating leases	64	79	133	156
Finance leases
Amortization of leased assets	32	23	61	43
Interest on leased assets	36	27	68	52
Total operating and finance leases	$ 132	$ 129	262	251
Cash paid for amounts included in the measurement of leased liabilities
Operating cash flows from operating leases			135	165
Operating cash flows from finance leases			65	52
Financing cash flows from finance leases			$ 44	$ 47

Leases - Summary of Future Leas

Leases - Summary of Future Lease Payments (Details) - USD ($) $ in Millions	Jul. 30, 2022	Jan. 29, 2022	Jul. 31, 2021
Operating Leases
Operating Leases, 2022	$ 124
Operating Leases, 2023	251
Operating Leases, 2024	233
Operating Leases, 2025	227
Operating Leases, 2026	223
Operating Leases, After 2026	3,617
Total lease payments, Operating Leases	4,675
Amount representing interest, Operating Leases	(1,999)
Lease liabilities, Operating Leases	2,676
Finance Leases
Finance Leases, 2022	94
Finance Leases, 2023	218
Finance Leases, 2024	210
Finance Leases, 2025	205
Finance Leases, 2026	205
Finance Leases, After 2026	3,722
Total lease payments, Finance Leases	4,654
Amount representing interest, Finance Leases	(2,195)
Lease liabilities, Finance Leases	2,459
Total
2022	218
2023	469
2024	443
2025	432
2026	428
After 2026	7,339
Total lease payments	9,329
Amount representing interest	(4,194)
Lease liabilities	$ 5,135	$ 4,399	$ 4,215

Leases - Summary of Weighted-Av

Leases - Summary of Weighted-Average Remaining Lease Term and Discount Rates (Details)	Jul. 30, 2022	Jan. 29, 2022
Leases [Abstract]
Operating leases, Weighted-average remaining term (years)	20 years	20 years
Finance leases, Weighted-average remaining term (years)	21 years	20 years
Operating leases, Weighted-average discount rate	6%	6%
Finance leases, Weighted-average discount rate	6%	7%

Leases - Summary of Other Lease

Leases - Summary of Other Lease Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021
Property and equipment acquired (disposed) through exchange of:
Finance lease liabilities	$ 730	$ 569
Operating lease liabilities	$ 114	$ 29

Leases - Summary of Financing O

Leases - Summary of Financing Obligations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021	Jan. 29, 2022
Assets
Financing obligations	$ 52	$ 60	$ 52	$ 60	$ 55
Liabilities
Current	18	34	18	34	31
Noncurrent	449	449	449	449	445
Total financing obligations	467	483	467	483	$ 476
Income Statement
Amortization of financing obligation assets	2	3	4	5
Interest on financing obligations	15	10	27	19
Total financing obligations	$ 17	$ 13	31	24
Cash paid for amounts included in the measurement of financing obligations
Operating cash flows from financing obligations			26	19
Financing cash flows from financing obligations			11	18
Proceeds from financing obligations			$ 5	$ 4

Leases - Summary of Future Fina

Leases - Summary of Future Financing Obligation Payments (Details) - USD ($) $ in Millions	Jul. 30, 2022	Jan. 29, 2022	Jul. 31, 2021
Leases [Abstract]
2022	$ 37
2023	78
2024	77
2025	75
2026	74
After 2026	957
Total lease payments	1,298
Non-cash gain on future sale of property	167
Amount representing interest	(998)
Total financing obligations	$ 467	$ 476	$ 483

Leases - Summary of Weighted-_2

Leases - Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations (Details)	6 Months Ended	12 Months Ended
	Jul. 30, 2022	Jan. 29, 2022
Leases [Abstract]
Weighted-average remaining term (years)	14 years	10 years
Weighted-average discount rate	13%	9%

Stock-Based Awards - Summary of

Stock-Based Awards - Summary of Stock-Based Awards Activity (Details) shares in Thousands	6 Months Ended
	Jul. 30, 2022 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Options, Beginning Balance | shares	12
Stock Options, Exercised/vested | shares	(12)
Stock Options, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 48.66
Stock Options, Weighted Average Exercise Price, Exercised/vested | $ / shares	$ 48.66
Nonvested Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	2,769
Stock Awards/ Share Units, Granted | shares	678
Stock Awards/ Share Units, Exercised/vested | shares	(987)
Stock Awards/ Share Units, Forfeited/expired | shares	(105)
Stock Awards/ Share Units, Ending Balance | shares	2,355
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 36.17
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	57.47
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Exercised/vested | $ / shares	38.89
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	43.99
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 40.81
Performance Share Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	856
Stock Awards/ Share Units, Granted | shares	236
Stock Awards/ Share Units, Forfeited/expired | shares	(218)
Stock Awards/ Share Units, Ending Balance | shares	874
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 42.74
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	67.18
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	36.89
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 50.79

Stock-Based Awards - Additional

Stock-Based Awards - Additional Information (Details) - shares	6 Months Ended
	Jul. 30, 2022	Feb. 01, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock warrants, issued		1,747,441
Warrant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vested warrants	1,048,465
Unvested warrants	698,976

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	24.60%	24.80%	22.80%	22.80%

Net Income Per Share - Computat

Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Earnings Per Share [Abstract]
Numerator---Net income	$ 143	$ 382	$ 157	$ 396
Denominator—Weighted-average shares: Basic	127	152	127	153
Dilutive impact	1	2	2	2
Weighted average shares, Diluted	128	154	129	155
Basic	$ 1.13	$ 2.51	$ 1.24	$ 2.58
Diluted	$ 1.11	$ 2.48	$ 1.22	$ 2.55

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Potential Shares of Common Stock Excluded From the Diluted Net Income Per Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Earnings Per Share [Abstract]
Anti-dilutive shares	3	3	3	3

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Aug. 22, 2022	Aug. 18, 2022	Aug. 09, 2022
Subsequent Event [Line Items]
Cash dividend per share			$ 0.50
Cash dividend, declared date			Aug. 09, 2022
Cash dividend to be paid date			Sep. 21, 2022
Cash dividend, record date			Sep. 07, 2022
Accelerated Share Repurchase Agreement [Member] | Common Stock [Member] | Goldman Sachs & Co. LLC [Member]
Subsequent Event [Line Items]
Accelerated share repurchase value		$ 500
Stock repurchase program, percentage of shares expected to be repurchased	80%
Accelerated share repurchase	11.8