☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 31-1029810 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(IRS Employer Identification No.) | |||||||
Three Limited Parkway | ||||||||
Columbus, | Ohio | 43230 | ||||||
(Address of principal executive offices) | (Zip Code) | |||||||
(614) | 415-7000 | |||||||
(Registrant's Telephone Number, Including Area Code) | ||||||||
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer |
☐ (Do not check if a smaller reporting company)
|
Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.50 Par Value | LB | The New York Stock Exchange |
Page No. | |||||
Item 1. Financial Statements *
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Item 4. Controls and Procedures
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Item 1. Legal Proceedings
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Item 1A. Risk Factors
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Item 3. Defaults Upon Senior Securities
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Item 4. Mine Safety Disclosures
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Item 5. Other Information
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Item 6. Exhibits
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* | The Company's fiscal year ends on the Saturday nearest to January 31. As used herein, “first quarter of 2021” and “first quarter of 2020” refer to the thirteen-week periods ended May 1, 2021 and May 2, 2020 , respectively. |
First Quarter | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net Sales | $ | 3,024 | $ | 1,654 | |||||||||||||||||||
Costs of Goods Sold, Buying and Occupancy | (1,610) | (1,366) | |||||||||||||||||||||
Gross Profit | 1,414 | 288 | |||||||||||||||||||||
General, Administrative and Store Operating Expenses | (842) | (606) | |||||||||||||||||||||
Operating Income (Loss) | 572 | (318) | |||||||||||||||||||||
Interest Expense | (114) | (97) | |||||||||||||||||||||
Other Income (Loss) | (105) | 3 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 353 | (412) | |||||||||||||||||||||
Provision (Benefit) for Income Taxes | 76 | (115) | |||||||||||||||||||||
Net Income (Loss) | $ | 277 | $ | (297) | |||||||||||||||||||
Net Income (Loss) Per Basic Share | $ | 0.99 | $ | (1.07) | |||||||||||||||||||
Net Income (Loss) Per Dilutive Share | $ | 0.97 | $ | (1.07) | |||||||||||||||||||
Dividends Per Share | $ | — | $ | 0.30 |
First Quarter | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net Income (Loss) | $ | 277 | $ | (297) | |||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax: | |||||||||||||||||||||||
Foreign Currency Translation | 5 | (6) | |||||||||||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | (3) | 5 | |||||||||||||||||||||
Reclassification of Cash Flow Hedges to Earnings | 1 | — | |||||||||||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 3 | (1) | |||||||||||||||||||||
Total Comprehensive Income (Loss) | $ | 280 | $ | (298) |
May 1,
2021 |
January 30,
2021 |
May 2,
2020 |
|||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
ASSETS | |||||||||||||||||
Current Assets: | |||||||||||||||||
Cash and Cash Equivalents | $ | 2,807 | $ | 3,903 | $ | 957 | |||||||||||
Accounts Receivable, Net | 221 | 269 | 229 | ||||||||||||||
Inventories | 1,397 | 1,273 | 1,491 | ||||||||||||||
Other | 187 | 134 | 172 | ||||||||||||||
Total Current Assets | 4,612 | 5,579 | 2,849 | ||||||||||||||
Property and Equipment, Net | 2,030 | 2,095 | 2,299 | ||||||||||||||
Operating Lease Assets | 2,596 | 2,558 | 2,947 | ||||||||||||||
Goodwill | 628 | 628 | 628 | ||||||||||||||
Trade Names | 411 | 411 | 411 | ||||||||||||||
Deferred Income Taxes | 72 | 69 | 84 | ||||||||||||||
Other Assets | 197 | 231 | 221 | ||||||||||||||
Total Assets | $ | 10,546 | $ | 11,571 | $ | 9,439 | |||||||||||
LIABILITIES AND EQUITY (DEFICIT) | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Accounts Payable | $ | 735 | $ | 683 | $ | 715 | |||||||||||
Accrued Expenses and Other | 1,292 | 1,457 | 826 | ||||||||||||||
Current Debt | — | — | 468 | ||||||||||||||
Current Operating Lease Liabilities | 504 | 594 | 590 | ||||||||||||||
Income Taxes | 149 | 92 | 84 | ||||||||||||||
Total Current Liabilities | 2,680 | 2,826 | 2,683 | ||||||||||||||
Deferred Income Taxes | 245 | 234 | 198 | ||||||||||||||
Long-term Debt | 5,344 | 6,366 | 5,034 | ||||||||||||||
Long-term Operating Lease Liabilities | 2,504 | 2,495 | 2,945 | ||||||||||||||
Other Long-term Liabilities | 306 | 311 | 437 | ||||||||||||||
Shareholders’ Equity (Deficit): | |||||||||||||||||
Preferred Stock - $1.00 par value; 10 shares authorized; none issued
|
— | — | — | ||||||||||||||
Common Stock - $0.50 par value; 1,000 shares authorized; 288, 286 and 286 shares issued; 277, 278 and 278 shares outstanding, respectively
|
144 | 143 | 143 | ||||||||||||||
Paid-in Capital | 903 | 891 | 865 | ||||||||||||||
Accumulated Other Comprehensive Income | 86 | 83 | 51 | ||||||||||||||
Retained Earnings (Accumulated Deficit) | (1,144) | (1,421) | (2,562) | ||||||||||||||
Less: Treasury Stock, at Average Cost; 11, 8 and 8 shares, respectively
|
(523) | (358) | (358) | ||||||||||||||
Total L Brands, Inc. Shareholders’ Equity (Deficit) | (534) | (662) | (1,861) | ||||||||||||||
Noncontrolling Interest | 1 | 1 | 3 | ||||||||||||||
Total Equity (Deficit) | (533) | (661) | (1,858) | ||||||||||||||
Total Liabilities and Equity (Deficit) | $ | 10,546 | $ | 11,571 | $ | 9,439 |
Common Stock |
Paid-In
Capital |
Accumulated
Other Comprehensive Income |
Retained
Earnings (Accumulated Deficit) |
Treasury
Stock, at Average Cost |
Noncontrolling Interest | Total Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||
Shares
Outstanding |
Par
Value |
||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 30, 2021 | 278 | $ | 143 | $ | 891 | $ | 83 | $ | (1,421) | $ | (358) | $ | 1 | $ | (661) | ||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | 277 | — | — | 277 | |||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income | — | — | — | 3 | — | — | — | 3 | |||||||||||||||||||||||||||||||||||||||
Total Comprehensive Income | — | — | — | 3 | 277 | — | — | 280 | |||||||||||||||||||||||||||||||||||||||
Repurchases of Common Stock | (3) | — | — | — | — | (165) | — | (165) | |||||||||||||||||||||||||||||||||||||||
Share-based Compensation and Other | 2 | 1 | 12 | — | — | — | — | 13 | |||||||||||||||||||||||||||||||||||||||
Balance, May 1, 2021 | 277 | $ | 144 | $ | 903 | $ | 86 | $ | (1,144) | $ | (523) | $ | 1 | $ | (533) |
Common Stock |
Paid-In
Capital |
Accumulated
Other Comprehensive Income |
Retained
Earnings (Accumulated Deficit) |
Treasury
Stock, at Average Cost |
Noncontrolling Interest | Total Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||
Shares
Outstanding |
Par
Value |
||||||||||||||||||||||||||||||||||||||||||||||
Balance, February 1, 2020 | 277 | $ | 142 | $ | 847 | $ | 52 | $ | (2,182) | $ | (358) | $ | 4 | $ | (1,495) | ||||||||||||||||||||||||||||||||
Net Loss | — | — | — | — | (297) | — | — | (297) | |||||||||||||||||||||||||||||||||||||||
Other Comprehensive Loss | — | — | — | (1) | — | — | — | (1) | |||||||||||||||||||||||||||||||||||||||
Total Comprehensive Loss | — | — | — | (1) | (297) | — | — | (298) | |||||||||||||||||||||||||||||||||||||||
Cash Dividends ($0.30 per share)
|
— | — | — | — | (83) | — | — | (83) | |||||||||||||||||||||||||||||||||||||||
Share-based Compensation and Other | 1 | 1 | 18 | — | — | — | (1) | 18 | |||||||||||||||||||||||||||||||||||||||
Balance, May 2, 2020 | 278 | $ | 143 | $ | 865 | $ | 51 | $ | (2,562) | $ | (358) | $ | 3 | $ | (1,858) |
Year-to-Date | |||||||||||
2021 | 2020 | ||||||||||
Operating Activities: | |||||||||||
Net Income (Loss) | $ | 277 | $ | (297) | |||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used for) Operating Activities: | |||||||||||
Depreciation of Long-lived Assets | 129 | 139 | |||||||||
Loss on Extinguishment of Debt | 105 | — | |||||||||
Victoria's Secret Asset Impairments | — | 97 | |||||||||
Share-based Compensation Expense | 15 | 20 | |||||||||
Deferred Income Taxes | 10 | (25) | |||||||||
Changes in Assets and Liabilities: | |||||||||||
Accounts Receivable | 49 | 77 | |||||||||
Inventories | (123) | (208) | |||||||||
Accounts Payable, Accrued Expenses and Other | (163) | (155) | |||||||||
Income Taxes Payable | 57 | (56) | |||||||||
Other Assets and Liabilities | (107) | 66 | |||||||||
Net Cash Provided by (Used for) Operating Activities | 249 | (342) | |||||||||
Investing Activities: | |||||||||||
Capital Expenditures | (65) | (55) | |||||||||
Other Investing Activities | 9 | (5) | |||||||||
Net Cash Used for Investing Activities | (56) | (60) | |||||||||
Financing Activities: | |||||||||||
Payments of Long-term Debt | (1,130) | — | |||||||||
Borrowing from Credit Agreement | — | 950 | |||||||||
Repayment of Credit Agreement | — | (950) | |||||||||
Borrowings from Foreign Facilities | — | 23 | |||||||||
Repayments of Foreign Facilities | — | (69) | |||||||||
Repurchases of Common Stock | (155) | — | |||||||||
Dividends Paid | — | (83) | |||||||||
Tax Payments related to Share-based Awards | (33) | (5) | |||||||||
Proceeds from Stock Option Exercises | 30 | — | |||||||||
Other Financing Activities | (3) | (4) | |||||||||
Net Cash Used for Financing Activities | (1,291) | (138) | |||||||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents and Restricted Cash | 2 | (2) | |||||||||
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (1,096) | (542) | |||||||||
Cash and Cash Equivalents and Restricted Cash, Beginning of Period | 3,933 | 1,499 | |||||||||
Cash and Cash Equivalents and Restricted Cash, End of Period | $ | 2,837 | $ | 957 |
First Quarter | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Bath & Body Works Stores - U.S. and Canada | $ | 1,051 | $ | 424 | |||||||||||||||||||
Bath & Body Works Direct | 349 | 289 | |||||||||||||||||||||
Bath & Body Works International (a) | 70 | 47 | |||||||||||||||||||||
Total Bath & Body Works | 1,470 | 760 | |||||||||||||||||||||
Victoria’s Secret Stores - U.S. and Canada | 933 | 514 | |||||||||||||||||||||
Victoria’s Secret Direct | 521 | 308 | |||||||||||||||||||||
Victoria’s Secret International (b) | 100 | 72 | |||||||||||||||||||||
Total Victoria’s Secret | 1,554 | 894 | |||||||||||||||||||||
Total Net Sales | $ | 3,024 | $ | 1,654 |
First Quarter | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Common Shares | 288 | 285 | |||||||||||||||||||||
Treasury Shares | (9) | (8) | |||||||||||||||||||||
Basic Shares | 279 | 277 | |||||||||||||||||||||
Effect of Dilutive Restricted Stock and Options | 5 | — | |||||||||||||||||||||
Diluted Shares | 284 | 277 | |||||||||||||||||||||
Anti-dilutive Options and Awards (a) | 1 | 12 |
Repurchase Program |
Amount
Authorized |
Shares
Repurchased |
Amount
Repurchased |
Average Stock Price | ||||||||||||||||||||||||||||
(in millions) | (in thousands) | (in millions) | ||||||||||||||||||||||||||||||
March 2021 | $ | 500 | 2,608 | $ | 165 | $ | 63.31 |
Ordinary Dividends | Total Paid | |||||||||||||||||||||||||
(per share) | (in millions) | |||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||
First Quarter | $ | — | $ | — | ||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||
First Quarter | $ | 0.30 | $ | 83 | ||||||||||||||||||||||
May 1,
2021 |
January 30,
2021 |
May 2,
2020 |
|||||||||||||||
(in millions) | |||||||||||||||||
Finished Goods Merchandise | $ | 1,224 | $ | 1,073 | $ | 1,347 | |||||||||||
Raw Materials and Merchandise Components | 173 | 200 | 144 | ||||||||||||||
Total Inventories | $ | 1,397 | $ | 1,273 | $ | 1,491 |
May 1,
2021 |
January 30,
2021 |
May 2,
2020 |
|||||||||||||||
(in millions) | |||||||||||||||||
Property and Equipment, at Cost | $ | 6,189 | $ | 6,204 | $ | 6,177 | |||||||||||
Accumulated Depreciation and Amortization | (4,159) | (4,109) | (3,878) | ||||||||||||||
Property and Equipment, Net | $ | 2,030 | $ | 2,095 | $ | 2,299 |
May 1,
2021 |
January 30,
2021 |
May 2,
2020 |
|||||||||||||||
(in millions) | |||||||||||||||||
Senior Secured Debt with Subsidiary Guarantee | |||||||||||||||||
$750 million, 6.875% Fixed Interest Rate Secured Notes due July 2025 ("2025 Secured Notes")
|
$ | — | $ | 740 | $ | — | |||||||||||
Secured Foreign Facilities | — | — | 107 | ||||||||||||||
Total Senior Secured Debt with Subsidiary Guarantee | $ | — | $ | 740 | $ | 107 | |||||||||||
Senior Debt with Subsidiary Guarantee | |||||||||||||||||
$1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”)
|
$ | — | $ | — | $ | 450 | |||||||||||
$1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”)
|
— | 284 | 858 | ||||||||||||||
$320 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”)
|
319 | 319 | 498 | ||||||||||||||
$500 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes")
|
493 | 493 | — | ||||||||||||||
$297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”)
|
279 | 278 | 276 | ||||||||||||||
$500 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”)
|
497 | 497 | 496 | ||||||||||||||
$500 million, 7.500% Fixed Interest Rate Notes due June 2029 ("2029 Notes")
|
488 | 488 | 487 | ||||||||||||||
$1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes")
|
989 | 988 | — | ||||||||||||||
$1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”)
|
991 | 991 | 991 | ||||||||||||||
$700 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”)
|
694 | 694 | 693 | ||||||||||||||
Total Senior Debt with Subsidiary Guarantee | $ | 4,750 | $ | 5,032 | $ | 4,749 | |||||||||||
Senior Debt | |||||||||||||||||
$350 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”)
|
$ | 348 | $ | 348 | $ | 348 | |||||||||||
$247 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”)
|
246 | 246 | 298 | ||||||||||||||
Total Senior Debt | $ | 594 | $ | 594 | $ | 646 | |||||||||||
Total | $ | 5,344 | $ | 6,366 | $ | 5,502 | |||||||||||
Current Debt | — | — | (468) | ||||||||||||||
Total Long-term Debt, Net of Current Portion | $ | 5,344 | $ | 6,366 | $ | 5,034 |
May 1,
2021 |
January 30,
2021 |
May 2,
2020 |
|||||||||||||||
(in millions) | |||||||||||||||||
Principal Value | $ | 5,414 | $ | 6,449 | $ | 5,458 | |||||||||||
Fair Value, Estimated (a) | 6,389 | 7,243 | 4,151 |
Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income | |||||||||||||||
(in millions) | |||||||||||||||||
Balance as of January 30, 2021 | $ | 85 | $ | (2) | $ | 83 | |||||||||||
Other Comprehensive Income (Loss) Before Reclassifications
|
5 | (4) | 1 | ||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income
|
— | 1 | 1 | ||||||||||||||
Tax Effect
|
— | 1 | 1 | ||||||||||||||
Current-period Other Comprehensive Income (Loss)
|
5 | (2) | 3 | ||||||||||||||
Balance as of May 1, 2021 | $ | 90 | $ | (4) | $ | 86 |
Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income | |||||||||||||||
(in millions) | |||||||||||||||||
Balance as of February 1, 2020 | $ | 52 | $ | — | $ | 52 | |||||||||||
Other Comprehensive Income (Loss) Before Reclassifications
|
(6) | 6 | — | ||||||||||||||
Tax Effect
|
— | (1) | (1) | ||||||||||||||
Current-period Other Comprehensive Income (Loss)
|
(6) | 5 | (1) | ||||||||||||||
Balance as of May 2, 2020 | $ | 46 | $ | 5 | $ | 51 |
Bath & Body
Works |
Victoria’s
Secret |
Other | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
2021 | |||||||||||||||||||||||
First Quarter: | |||||||||||||||||||||||
Net Sales | $ | 1,470 | $ | 1,554 | $ | — | $ | 3,024 | |||||||||||||||
Operating Income (Loss) | 380 | 245 | (53) | 572 | |||||||||||||||||||
2020 | |||||||||||||||||||||||
First Quarter: | |||||||||||||||||||||||
Net Sales | $ | 760 | $ | 894 | $ | — | $ | 1,654 | |||||||||||||||
Operating Income (Loss) (a) | 76 | (354) | (40) | (318) | |||||||||||||||||||
First Quarter | |||||||||||||||||||||||
(in millions, except per share amounts) | 2021 | 2020 | |||||||||||||||||||||
Detail of Special Items - Income (Expense) | |||||||||||||||||||||||
Victoria's Secret Asset Impairment (a) | $ | — | $ | (97) | |||||||||||||||||||
Special Items included in Operating Income (Loss) | — | (97) | |||||||||||||||||||||
Loss on Extinguishment of Debt (b) | (105) | — | |||||||||||||||||||||
Special Items included in Other Income (Loss) | (105) | — | |||||||||||||||||||||
Tax Benefit from the Resolution of Certain Tax Matters (c) | — | 50 | |||||||||||||||||||||
Tax Effect of Special Items included in Operating Income (Loss) and Other Income (Loss) | 25 | 25 | |||||||||||||||||||||
Special Items included in Net Income (Loss) | $ | (80) | $ | (22) | |||||||||||||||||||
Reconciliation of Reported Operating Income (Loss) to Adjusted Operating Income (Loss) | |||||||||||||||||||||||
Reported Operating Income (Loss) | $ | 572 | $ | (318) | |||||||||||||||||||
Special Items included in Operating Income (Loss) | — | 97 | |||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | 572 | $ | (221) | |||||||||||||||||||
Reconciliation of Reported Net Income (Loss) to Adjusted Net Income (Loss) | |||||||||||||||||||||||
Reported Net Income (Loss) | $ | 277 | $ | (297) | |||||||||||||||||||
Special Items included in Net Income (Loss) | 80 | 22 | |||||||||||||||||||||
Adjusted Net Income (Loss) | $ | 357 | $ | (275) | |||||||||||||||||||
Reconciliation of Reported Earnings (Loss) Per Diluted Share to Adjusted Earnings (Loss) Per Diluted Share | |||||||||||||||||||||||
Reported Earnings (Loss) Per Diluted Share | $ | 0.97 | $ | (1.07) | |||||||||||||||||||
Special Items included in Earnings (Loss) Per Diluted Share | 0.28 | 0.08 | |||||||||||||||||||||
Adjusted Earnings (Loss) Per Diluted Share | $ | 1.25 | $ | (0.99) |
First Quarter | |||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | |||||||||||||||||||||||||||||||||
Sales per Average Selling Square Foot (a) | |||||||||||||||||||||||||||||||||||
Bath & Body Works U.S. | $ | 229 | $ | 93 | 146 | % | |||||||||||||||||||||||||||||
Victoria’s Secret U.S. | 154 | 71 | 117 | % | |||||||||||||||||||||||||||||||
Sales per Average Store (in thousands) (a) | |||||||||||||||||||||||||||||||||||
Bath & Body Works U.S. | $ | 610 | $ | 245 | 149 | % | |||||||||||||||||||||||||||||
Victoria’s Secret U.S. | 1,064 | 464 | 129 | % | |||||||||||||||||||||||||||||||
Average Store Size (selling square feet) | |||||||||||||||||||||||||||||||||||
Bath & Body Works U.S. | 2,672 | 2,633 | 1 | % | |||||||||||||||||||||||||||||||
Victoria’s Secret U.S. | 6,885 | 6,587 | 5 | % | |||||||||||||||||||||||||||||||
Total Selling Square Feet (in thousands) | |||||||||||||||||||||||||||||||||||
Bath & Body Works U.S. | 4,406 | 4,305 | 2 | % | |||||||||||||||||||||||||||||||
Victoria’s Secret U.S. | 5,790 | 6,804 | (15 | %) |
Stores at | Stores at | ||||||||||||||||||||||
January 30, 2021 | Opened | Closed | May 1, 2021 | ||||||||||||||||||||
Bath & Body Works U.S. | 1,633 | 21 | (5) | 1,649 | |||||||||||||||||||
Bath & Body Works Canada | 103 | — | — | 103 | |||||||||||||||||||
Total Bath & Body Works | 1,736 | 21 | (5) | 1,752 | |||||||||||||||||||
Victoria’s Secret U.S. | 846 | — | (5) | 841 | |||||||||||||||||||
Victoria’s Secret Canada | 25 | 1 | — | 26 | |||||||||||||||||||
Victoria's Secret Beauty and Accessories Greater China | 36 | 1 | (1) | 36 | |||||||||||||||||||
Victoria's Secret Greater China | 26 | — | — | 26 | |||||||||||||||||||
Total Victoria's Secret | 933 | 2 | (6) | 929 | |||||||||||||||||||
Total L Brands Stores | 2,669 | 23 | (11) | 2,681 |
Stores at | Stores at | ||||||||||||||||||||||
February 1, 2020 | Opened | Closed | May 2, 2020 | ||||||||||||||||||||
Bath & Body Works U.S. | 1,637 | 3 | (5) | 1,635 | |||||||||||||||||||
Bath & Body Works Canada | 102 | — | — | 102 | |||||||||||||||||||
Total Bath & Body Works | 1,739 | 3 | (5) | 1,737 | |||||||||||||||||||
Victoria’s Secret U.S. | 1,053 | 1 | (21) | 1,033 | |||||||||||||||||||
Victoria’s Secret Canada | 38 | — | (1) | 37 | |||||||||||||||||||
Victoria's Secret U.K. / Ireland | 26 | — | — | 26 | |||||||||||||||||||
Victoria's Secret Beauty and Accessories Greater China | 41 | — | (1) | 40 | |||||||||||||||||||
Victoria's Secret Greater China | 23 | 1 | — | 24 | |||||||||||||||||||
Total Victoria's Secret | 1,181 | 2 | (23) | 1,160 | |||||||||||||||||||
Total L Brands Stores | 2,920 | 5 | (28) | 2,897 |
Stores at | Stores at | ||||||||||||||||||||||
January 30, 2021 | Opened | Closed | May 1, 2021 | ||||||||||||||||||||
Bath & Body Works | 288 | 14 | (3) | 299 | |||||||||||||||||||
Victoria’s Secret Beauty & Accessories | 338 | 2 | (3) | 337 | |||||||||||||||||||
Victoria's Secret | 120 | 1 | — | 121 | |||||||||||||||||||
Total | 746 | 17 | (6) | 757 |
Stores at | Stores at | ||||||||||||||||||||||
February 1, 2020 | Opened | Closed | May 2, 2020 | ||||||||||||||||||||
Bath & Body Works | 278 | 6 | (1) | 283 | |||||||||||||||||||
Victoria’s Secret Beauty & Accessories | 360 | — | (7) | 353 | |||||||||||||||||||
Victoria's Secret | 84 | 2 | — | 86 | |||||||||||||||||||
Total | 722 | 8 | (8) | 722 |
Operating Income (Loss) Rate | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
First Quarter | (in millions) | ||||||||||||||||||||||
Bath & Body Works | $ | 380 | $ | 76 | 25.9 | % | 10.0 | % | |||||||||||||||
Victoria’s Secret | 245 | (354) | 15.7 | % | (39.6 | %) | |||||||||||||||||
Other (a) | (53) | (40) | — | % | — | % | |||||||||||||||||
Total Operating Income (Loss) | $ | 572 | $ | (318) | 18.9 | % | (19.2 | %) |
2021 | 2020 | % Change | |||||||||||||||
First Quarter | (in millions) | ||||||||||||||||
Bath & Body Works Stores - U.S. and Canada | $ | 1,051 | $ | 424 | 148 | % | |||||||||||
Bath & Body Works Direct | 349 | 289 | 21 | % | |||||||||||||
Bath & Body Works International (a) | 70 | 47 | 46 | % | |||||||||||||
Total Bath & Body Works | 1,470 | 760 | 93 | % | |||||||||||||
Victoria’s Secret Stores - U.S. and Canada | 933 | 514 | 82 | % | |||||||||||||
Victoria’s Secret Direct | 521 | 308 | 69 | % | |||||||||||||
Victoria’s Secret International (b) | 100 | 72 | 39 | % | |||||||||||||
Total Victoria’s Secret | 1,554 | 894 | 74 | % | |||||||||||||
Total Net Sales | $ | 3,024 | $ | 1,654 | 83 | % |
Bath &
Body Works |
Victoria’s
Secret |
Total | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
2020 Net Sales | $ | 760 | $ | 894 | $ | 1,654 | |||||||||||||||||
Comparable Store Sales | 49 | 12 | 61 | ||||||||||||||||||||
Sales Associated with New, Closed and Non-comparable Remodeled Stores, Net (a) | 577 | 401 | 978 | ||||||||||||||||||||
Direct Channels | 60 | 212 | 272 | ||||||||||||||||||||
Private Label Credit Card
|
— | 3 | 3 | ||||||||||||||||||||
International Wholesale, Royalty and Other
|
22 | 29 | 51 | ||||||||||||||||||||
Foreign Currency Translation | 2 | 3 | 5 | ||||||||||||||||||||
2021 Net Sales | $ | 1,470 | $ | 1,554 | $ | 3,024 |
First Quarter | 2021 | 2020 | |||||||||
Average daily borrowings (in millions) | $ | 6,191 | $ | 6,077 | |||||||
Average borrowing rate (in percentages) | 7.2 | % | 6.3 | % |
May 1,
2021 |
January 30,
2021 |
May 2,
2020 |
|||||||||||||||
(in millions) | |||||||||||||||||
Net Cash Provided by (Used for) Operating Activities (a) | $ | 249 | $ | 2,039 | $ | (342) | |||||||||||
Capital Expenditures (a) | 65 | 228 | 55 | ||||||||||||||
Working Capital | 1,932 | 2,753 | 166 | ||||||||||||||
Capitalization: | |||||||||||||||||
Long-term Debt | 5,344 | 6,366 | 5,034 | ||||||||||||||
Shareholders’ Equity (Deficit) | (534) | (662) | (1,861) | ||||||||||||||
Total Capitalization | $ | 4,810 | $ | 5,704 | $ | 3,173 | |||||||||||
Amounts Available Under the ABL Facility (b) | $ | — | $ | — | $ | — |
Year-to-Date | |||||||||||
2021 | 2020 | ||||||||||
(in millions) | |||||||||||
Cash and Cash Equivalents and Restricted Cash, Beginning of Period | $ | 3,933 | $ | 1,499 | |||||||
Net Cash Flows Provided by (Used for) Operating Activities | 249 | (342) | |||||||||
Net Cash Flows Used for Investing Activities | (56) | (60) | |||||||||
Net Cash Flows Used For Financing Activities | (1,291) | (138) | |||||||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents and Restricted Cash | 2 | (2) | |||||||||
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (1,096) | (542) | |||||||||
Cash and Cash Equivalents and Restricted Cash, End of Period | $ | 2,837 | $ | 957 |
Repurchase Program |
Amount
Authorized |
Shares
Repurchased |
Amount
Repurchased |
Average Stock Price | ||||||||||||||||||||||||||||
(in millions) | (in thousands) | (in millions) | ||||||||||||||||||||||||||||||
March 2021 | $ | 500 | 2,608 | $ | 165 | $ | 63.31 |
Ordinary Dividends | Total Paid | |||||||||||||||||||||||||
(per share) | (in millions) | |||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||
First Quarter | $ | — | $ | — | ||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||
First Quarter | $ | 0.30 | $ | 83 | ||||||||||||||||||||||
May 1,
2021 |
January 30,
2021 |
May 2,
2020 |
|||||||||||||||
(in millions) | |||||||||||||||||
Senior Secured Debt with Subsidiary Guarantee | |||||||||||||||||
$750 million, 6.875% Fixed Interest Rate Secured Notes due July 2025 ("2025 Secured Notes")
|
$ | — | $ | 740 | $ | — | |||||||||||
Secured Foreign Facilities | — | — | 107 | ||||||||||||||
Total Senior Secured Debt with Subsidiary Guarantee | $ | — | $ | 740 | $ | 107 | |||||||||||
Senior Debt with Subsidiary Guarantee | |||||||||||||||||
$1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”)
|
$ | — | $ | — | $ | 450 | |||||||||||
$1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”)
|
— | 284 | 858 | ||||||||||||||
$320 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”)
|
319 | 319 | 498 | ||||||||||||||
$500 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes")
|
493 | 493 | — | ||||||||||||||
$297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”)
|
279 | 278 | 276 | ||||||||||||||
$500 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”)
|
497 | 497 | 496 | ||||||||||||||
$500 million, 7.500% Fixed Interest Rate Notes due June 2029 ("2029 Notes")
|
488 | 488 | 487 | ||||||||||||||
$1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes")
|
989 | 988 | — | ||||||||||||||
$1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”)
|
991 | 991 | 991 | ||||||||||||||
$700 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”)
|
694 | 694 | 693 | ||||||||||||||
Total Senior Debt with Subsidiary Guarantee | $ | 4,750 | $ | 5,032 | $ | 4,749 | |||||||||||
Senior Debt | |||||||||||||||||
$350 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”)
|
$ | 348 | $ | 348 | $ | 348 | |||||||||||
$247 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”)
|
246 | 246 | 298 | ||||||||||||||
Total Senior Debt | $ | 594 | $ | 594 | $ | 646 | |||||||||||
Total | $ | 5,344 | $ | 6,366 | $ | 5,502 | |||||||||||
Current Debt | — | — | (468) | ||||||||||||||
Total Long-term Debt, Net of Current Portion | $ | 5,344 | $ | 6,366 | $ | 5,034 |
Moody’s | S&P | ||||||||||
Corporate | Ba3 | BB- | |||||||||
Senior Unsecured Debt with Subsidiary Guarantee | Ba3 | BB- | |||||||||
Senior Unsecured Debt | B2 | B | |||||||||
Outlook | Stable | Stable |
SUMMARIZED BALANCE SHEETS |
May 1,
2021 |
January 30,
2021 |
|||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets (a) | $ | 6,055 | $ | 6,813 | |||||||
Noncurrent Assets (b) | 4,654 | 4,795 | |||||||||
LIABILITIES | |||||||||||
Current Liabilities (c) | $ | 5,011 | $ | 5,038 | |||||||
Noncurrent Liabilities (d) | 8,377 | 9,433 |
SUMMARIZED STATEMENT OF INCOME | First Quarter | ||||||||||
2021 | |||||||||||
(in millions) | |||||||||||
Net Sales (a) | $ | 2,912 | |||||||||
Gross Profit | 1,345 | ||||||||||
Operating Income | 605 | ||||||||||
Income Before Income Taxes | 451 | ||||||||||
Net Income (b) | 377 |
May 1,
2021 |
January 30,
2021 |
May 2,
2020 |
|||||||||||||||
(in millions) | |||||||||||||||||
Principal Value | $ | 5,414 | $ | 6,449 | $ | 5,458 | |||||||||||
Fair Value, Estimated (a) | 6,389 | 7,243 | 4,151 |
Period |
Total
Number of Shares Purchased (a) |
Average Price
Paid per Share (b) |
Total Number of Shares Purchased as Part of Publicly Announced Programs (c) | Maximum Number of Shares (or Approximate Dollar Value) that May Yet be Purchased Under the Programs (c) | |||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
February 2021 | 9 | $ | 43.74 | — | $ | 78,677 | |||||||||||||||||
March 2021 | 1,702 | 53.00 | 1,167 | 429,612 | |||||||||||||||||||
April 2021 | 1,456 | 65.76 | 1,441 | 334,853 | |||||||||||||||||||
Total | 3,167 | 2,608 |
Exhibits |
|
|||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
15 | ||||||||
22 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
L BRANDS, INC.
|
||||||||
(Registrant) | ||||||||
By: | /s/ STUART B. BURGDOERFER | |||||||
Stuart B. Burgdoerfer
Executive Vice President and Chief Financial Officer * |
[●] | ||
[●] | ||
[●] |
L BRANDS, INC. | PARTICIPANT | |||||||
Michael Morris | [●] | |||||||
Human Capital and Compensation Committee, Chairman |
Entity | Jurisdiction of Incorporation or Organization | ||||
Bath & Body Works, LLC | Delaware | ||||
Bath & Body Works Brand Management, Inc. | Delaware | ||||
Bath & Body Works Direct, Inc. | Delaware | ||||
beautyAvenues, LLC | Delaware | ||||
Direct Factoring, LLC | Nevada | ||||
Intimate Brands Holding, LLC | Delaware | ||||
Intimate Brands, Inc. | Delaware | ||||
L Brands Direct Fulfillment, LLC | Delaware | ||||
L Brands Service Company, LLC | Delaware | ||||
L Brands Store Design & Construction, Inc. | Delaware | ||||
MII Brand Import, LLC | Delaware | ||||
Victoria's Secret Direct Brand Management, LLC | Delaware | ||||
Victoria's Secret Stores Brand Management, LLC | Delaware | ||||
Victoria's Secret Stores, LLC | Delaware |
Entity | Jurisdiction of Incorporation or Organization | ||||
Distribution Land Company, LLC | Delaware |
/s/ ANDREW M. MESLOW | |||||
Andrew M. Meslow | |||||
Chief Executive Officer |
/s/ STUART B. BURGDOERFER | |||||
Stuart B. Burgdoerfer | |||||
Executive Vice President and
Chief Financial Officer |
/s/ ANDREW M. MESLOW | |||||
Andrew M. Meslow | |||||
Chief Executive Officer | |||||
/s/ STUART B. BURGDOERFER | |||||
Stuart B. Burgdoerfer | |||||
Executive Vice President and Chief Financial Officer |