Victoria's Secret Files Q1 2024 10-Q

Ticker: VSCO · Form: 10-Q · Filed: 2024-06-07T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

Related Tickers: VSCO

TL;DR

VSCO Q1 24 10-Q filed. Financials updated.

AI Summary

Victoria's Secret & Co. filed its 10-Q for the period ending May 4, 2024. The company reported its financial performance and position, including details on its common stock, additional paid-in capital, and retained earnings. The filing covers the first quarter of fiscal year 2024, comparing it to the same period in fiscal year 2023.

Why It Matters

This filing provides investors with the latest financial snapshot of Victoria's Secret & Co., detailing their performance and capital structure as of early May 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is May 4, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on June 7, 2024.

What is the company's Central Index Key (CIK)?

The company's Central Index Key (CIK) is 0001856437.

What is the Standard Industrial Classification (SIC) code for Victoria's Secret & Co.?

The SIC code for Victoria's Secret & Co. is 5621, which corresponds to Women's Clothing Stores.

What fiscal year end does the company report?

The company's fiscal year ends on February 1st.

Filing Stats: 4,783 words · 19 min read · ~16 pages · Grade level 16.3 · Accepted 2024-06-07 07:30:48

Key Financial Figures

Filing Documents

Financial Information

Part I. Financial Information

Financial Statements *

Item 1. Financial Statements * Consolidated Statements of Income (Loss) for the Thirteen-Weeks Ended May 4 , 202 4 and April 29 , 202 3 (Unaudited) 3 Consolidated Statements of Comprehensive Income (Loss) for the Thirteen-Weeks Ended May 4 , 202 4 and April 29, 202 3 (Unaudited) 3 Consolidated Balance Sheets as of May 4 , 202 4 (Unaudited), February 3 , 202 4 and April 29, 202 3 (Unaudited) 4 Consolidated Statements of Equity for the Thirteen-Weeks Ended May 4 , 202 4 and April 29, 202 3 (Unaudited) 5 Consolidated Statements of Cash Flows for the Thirt een -Weeks Ended May 4 , 202 4 and April 29, 202 3 (Unaudited) 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 16

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 27

Controls and Procedures

Item 4. Controls and Procedures 28

Other Information

Part II. Other Information 29

Legal Proceedings

Item 1. Legal Proceedings 29

Risk Factors

Item 1A. Risk Factors 29

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 29

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 29

Other Information

Item 5. Other Information 29

Exhibits

Item 6. Exhibits 30 Signature 31 * Victoria's Secret & Co.'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, and "fiscal year 2024" and "fiscal year 2023" refer to the fifty-two-week period ending February 1, 2025 and the fifty-three-week period ended February 3, 2024, respectively. 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS VICTORIA'S SECRET & CO. CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in millions except per share amounts) (Unaudited) First Quarter 2024 2023 Net Sales $ 1,359 $ 1,407 Costs of Goods Sold, Buying and Occupancy ( 858 ) ( 905 ) Gross Profit 501 502 General, Administrative and Store Operating Expenses ( 475 ) ( 474 ) Operating Income 26 28 Interest Expense ( 22 ) ( 22 ) Other Income 1 — Income Before Income Taxes 5 6 Provision for Income Taxes 8 2 Net Income (Loss) ( 3 ) 4 Less: Net Income Attributable to Noncontrolling Interest 1 3 Net Income (Loss) Attributable to Victoria's Secret & Co. $ ( 4 ) $ 1 Net Income (Loss) Per Basic Share Attributable to Victoria's Secret & Co. $ ( 0.05 ) $ 0.01 Net Income (Loss) Per Diluted Share Attributable to Victoria's Secret & Co. $ ( 0.05 ) $ 0.01 VICTORIA'S SECRET & CO. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) (Unaudited) First Quarter 2024 2023 Net Income (Loss) $ ( 3 ) $ 4 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — ( 1 ) Total Other Comprehensive Loss, Net of Tax — ( 1 ) Total Comprehensive Income (Loss) ( 3 ) 3 Less: Net Income Attributable to Noncontrolling Interest 1 3 Less: Foreign Currency Translation Attributable to Noncontrolling Interest — 1 Comprehensive Loss Attributable to Victoria's Secret & Co. $ ( 4 ) $ ( 1 ) The accompanying Notes are an integral part of these Consolidated Financial Statements. 3 Table of Contents VICTORIA'S SECRET & CO. CONSOLIDATED BALANCE SHEETS (in millions except par value amounts) May 4, 2024 February 3, 2024 April 29, 2023 (Unaudited) (Unaudited) ASSETS Current Assets: Cash and Cash Equivalents $ 105 $ 270 $ 132 Accounts Receivable, Net 152 152 126 Inventories 987 985 1,041 Other 149 126 136 Total Current Assets 1,393 1,533 1,435 Property and Equipment, Net 805 843 834 Operating Lease Assets 1,316 1,351 1,245 Goodwill 367 367 368 Trade Names

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Description of Business Victoria's Secret & Co. (together with its subsidiaries unless the context otherwise requires, the "Company") is a specialty retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK and Adore Me brand names. The Company has approximately 910 stores in the United States ("U.S."), Canada and China as well as its own websites, www.VictoriasSecret.com, www.PINK.com and www.AdoreMe.com, and other digital channels worldwide. Additionally, the Company has more than 470 stores in nearly 70 countries operating under franchise, license and wholesale arrangements. The Company also includes the merchandise sourcing and production function serving the Company and its international partners. The Company operates as a single segment designed to serve customers worldwide seamlessly through stores and digital channels. In the first quarter of 2023, the Company implemented restructuring actions to continue to reorganize and improve its organizational structure. For additional information, see Note 4, "Restructuring Activities." 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, and "fiscal year 2024" and "fiscal year 2023" refer to the fifty-two-week period ending February 1, 2025 and the fifty-three-week period ended February 3, 2024, respectively. Basis of Presentation The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended May 4, 2024 and April 29, 2023 are unaudited. These

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