Bath & Body Works, Inc.
For the period ended Aug 2, 2025. Filed Aug 28, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 2, 2025 · Filed Aug 28, 2025
BBWI$21.36-3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-03; filed 2025-05-29.
0000701985-25-000021
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-02; filed 2025-08-28.
0000701985-25-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 127 current paragraphs.
52 unchanged; 41 reworded; 27 added; 4 removed; 1 previous and 7 current paragraphs rearranged.
Tables are not compared: 14 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
We expect consumers to remain cautious and value-seeking, with intentional purchasing behavior that prioritizes personal well-being and convenience, while spending selectively. We believe that our brand, stores, loyalty members, passionate store associates and a predominantly U.S. based vertically integrated supply chain form a strong foundation, and our investments in recent years have strengthened this foundation. In order to deliver durable and profitable growth and drive long-term shareholder value, we are taking swift action in the short-term while we actively shape our long-term strategy by making strategic moves that resonate with both current and future customers. We are focused on elevating our owned digital platform to meet the expectations of today’s consumers by enhancing functionality and storytelling, which we believe will boost brand equity and direct channel sales. We are also amplifying our efficacy message by more clearly communicating claims and modernizing packaging to better reflect key product attributes, such as efficacy, safety, and emotional benefits, especially to younger and ingredient-conscious consumers, reinforcing the value of our products. Finally, we are focused on putting our product in the path of the consumer by strategically and thoughtfully exploring new forms of distribution beyond the owned channels we currently sell through to reach and engage new and younger consumers and drive brand discovery.
Current report
Adjusted Financial Information
Current report
In addition to our results provided in accordance with GAAP above and throughout this Quarterly Report on Form 10-Q, provided below are non-GAAP measures that presents Operating Income, Net Income and Net Income Per Diluted Share for the second quarters of and year-to-date 2025 and 2024 on an adjusted basis to remove certain items. We believe that these items are not indicative of our operations due to their size and nature.
Current report
We use adjusted financial information as key performance measures for the purpose of evaluating performance internally. These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Instead, we believe that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. Further, our definitions of adjusted financial information may differ from similarly titled measures used by other companies.
Current report
The table below reconciles our GAAP financial measures to our non-GAAP financial measures:
Current report
(a)In the second quarter of 2025, we recognized pre-tax costs of $15 million (after-tax costs of $14 million) due to the transition of certain members of the leadership team, primarily related to severance benefits.
Current report
(b)In the second quarter of 2024, we sold our investments in Easton Town Center and Easton Gateway, resulting in an aggregate pre-tax gain of $39 million (after-tax gain of $25 million). For additional information, see Note 1, “Description of Business and Basis of Presentation” included in Part I, Item 1. Financial Statements.
Current report
(c)In the second quarter of 2024, we recognized a $44 million tax benefit related to the release of a valuation allowance on a deferred tax asset.
Current report
Second Quarter of 2025 Compared to the Second Quarter of 2024
Current report
For the second quarter of 2025, our Other Income, Net was $6 million, compared to $47 million in the second quarter of 2024. In the second quarter of 2024, Other Income, Net included an aggregate $39 million pre-tax gain on sales of certain Easton investments as well as a $2 million pre-tax loss on extinguishment of debt. The remaining decrease is primarily due to lower interest income on invested cash in the second quarter of 2025.
Current report
For the second quarter of 2025, our effective tax rate was 32.3% compared to 0.9% in the second quarter of 2024. The 2025 second quarter rate was higher than our combined estimated federal and state statutory rates largely due to the transition of certain members of the leadership team, primarily related to severance benefits. The 2024 second quarter rate was lower than our combined estimated federal and state statutory rates primarily due to the sales of Easton investments during the quarter, which resulted in the release of a valuation allowance on a deferred tax asset.
Current report
Results of Operations
Current report
Year-to-Date 2025 Compared to Year-to-Date 2024
Current report
For year-to-date 2025, Operating Income decreased $3 million to $367 million, from $370 million year-to-date 2024, and the Operating Income rate (expressed as a percentage of Net Sales) decreased to 12.3% from 12.7%. The drivers of the year-to-date Operating Income results are discussed in the following sections.
Current report
Net Sales
Current report
The following table provides Net Sales for year-to-date 2025 in comparison to year-to-date 2024:
Current report
Gross Profit
Current report
For year-to-date 2025, our Gross Profit increased $54 million compared to year-to-date 2024, to $1,287 million, and our Gross Profit rate (expressed as a percentage of Net Sales) increased to 43.3% from 42.4% year-to-date 2024. Gross Profit dollars increased due to higher Net Sales as well as merchandise margin rate improvement, driven by strategic pricing and strong cost management partially offset by the impact from tariffs.
Current report
The following table provides detail for our General, Administrative and Store Operating Expenses for year-to-date 2025 compared to year-to-date 2024:
Current report
For year-to-date 2025, our General, Administrative and Store Operating Expenses increased $57 million compared to year-to-date 2024, to $920 million, and the rate (expressed as a percentage of Net Sales) increased to 30.9% from 29.6% year-to-date 2024. Selling Expenses increased primarily due to higher payroll related costs, mainly driven by investments in wages and new stores, and higher healthcare costs. General and Administrative Expenses increased primarily due to $15 million of costs related to the transition of certain members of the leadership team, primarily related to severance benefits, as well as associate wages.
Current report
Other Income and Expenses
Current report
Interest Expense
Current report
Other Income, Net
Current report
For year-to-date 2025, our Other Income, Net was $13 million, compared to $61 million for year-to-date 2024. In year-to-date 2024, Other Income, Net included an aggregate $39 million pre-tax gain on sales of certain Easton investments as well as a $3 million pre-tax loss on extinguishment of debt. The remaining decrease is primarily due to lower interest income on invested cash in year-to-date 2025.
Current report
Provision for Income Taxes
Current report
Cash paid for interest was $143 million and $152 million for year-to-date 2025 and 2024, respectively.
Current report
(c)Includes amounts due to non-Guarantor subsidiaries of $25 million as of August 2, 2025.
Removed paragraphs (4)
Previous report
We believe our strategy and actions position the Company to achieve sustainable, profitable growth and to drive long-term shareholder value. We believe our continued innovation across our core categories supported by compelling marketing and enhanced technology, building on innovation platforms we launched in 2024 and extending our reach through adjacencies and international expansion, will continue to accelerate Net Sales growth over the long term. Amid a challenging macroeconomic backdrop, we have remained disciplined and decisive in our actions which is evidenced in our current performance.
Previous report
First Quarter of 2025 Compared to the First Quarter of 2024
Previous report
(b)Results include royalties associated with franchised stores and wholesale sales.
Previous report
For the first quarter of 2025, our Other Income, Net was $8 million, compared to $13 million in the first quarter of 2024. The decrease was primarily due to lower interest income on invested cash in the first quarter of 2025.
Reworded paragraphs (41)
Previous wording
In the first quarter of 2025, consolidated Net Sales were $1,424 million, which increased $40 million, or 2.9%, compared to the first quarter of 2024. Total North American Net Sales increased $34 million, primarily due to increases in transactions and average dollar sales, and International Net Sales increased $6 million. Our first quarter Operating Income was $209 million, which increased $22 million, or 11.7%, compared to the first quarter of 2024, and our Operating Income rate (expressed as a percentage of Net Sales) increased to 14.7% from 13.5%. The Operating Income rate increase was primarily due to a higher Gross Profit rate, partially offset by an increase in General, Administrative and Store Operating Expenses.
Current wording
In the second quarter of 2025, total Net Sales were $1,549 million, which increased $23 million, or 1.5%, compared to the second quarter of 2024. Total North American Net Sales increased $26 million, primarily due to modest increases in transactions and average dollar sales, partially offset by a $3 million decline in International Net Sales. Our second quarter Operating Income was $157 million, which decreased $26 million, or 13.9%, compared to the second quarter of 2024, and our Operating Income rate (expressed as a percentage of Net Sales) decreased to 10.2% from 12.0%. The Operating Income rate decrease was primarily due to higher General, Administrative and Store Operating Expenses driven by leadership transition costs, partially offset by an increase in the Gross Profit rate.
Previous wording
For additional information related to our first quarter 2025 financial performance, see “Results of Operations.”
Current wording
For additional information related to our second quarter 2025 financial performance, see “Results of Operations.”
Previous wording
We expect consumers to continue value-seeking behavior and consumer sentiment to remain volatile as the broad-based tariffs imposed by the U.S. government, and threatened or imposed retaliatory measures by other countries, have increased macroeconomic uncertainty in global markets. We are actively monitoring the changes in shifting trade policies and related market disruptions and are leveraging our predominately U.S.-based supply chain to take proactive measures to mitigate global trade policy shifts and to offset our tariff exposure over time. Building on our current performance, proactive tariff mitigation strategies, and our strong, predominately U.S.-based supply chain, we believe we are well-positioned to absorb the impacts of tariffs currently in effect and levied. Continued changes in trade policies and disruptions could have substantial impacts on the global economy and may magnify the impact of the risks to our business described in our Annual Report on Form 10-K.
Current wording
We expect consumer sentiment to remain volatile as the broad-based tariffs imposed by the U.S. government, and threatened or imposed retaliatory measures by other countries, have increased macroeconomic uncertainty in global markets and we are actively monitoring the changes in shifting trade policies and related market disruptions. We believe our vertically integrated, predominantly U.S. based supply chain positions us well to compete in the current environment and to absorb the impacts of tariffs at the existing levels in the current year. We also believe we have the ability to further mitigate these costs over time through strategic sourcing, operational efficiencies, and other targeted initiatives. Continued changes in trade policies and disruptions could have substantial impacts on the global economy and may magnify the impact of the risks to our business described in our Annual Report on Form 10-K.
Previous wording
The following table compares Company-operated U.S. store data for the first quarters of 2025 and 2024:
Current wording
The following table compares Company-operated U.S. store data for the second quarters of and year-to-date 2025 and 2024:
Previous wording
The following table represents Company-operated store activity for the first quarter of 2025:
Current wording
The following table represents Company-operated store activity for year-to-date 2025:
Previous wording
The following table represents Partner-operated store activity for the first quarter of 2025:
Current wording
The following table represents Partner-operated store activity for year-to-date 2025:
Previous wording
The following table provides Net Sales for the first quarter of 2025 in comparison to the first quarter of 2024:
Current wording
The following table provides Net Sales for the second quarter of 2025 in comparison to the second quarter of 2024:
Previous wording
For the first quarter of 2025, total Net Sales were $1,424 million and increased $40 million, or 2.9%, compared to the first quarter of 2024. Stores Net Sales increased $45 million, or 4.3%, primarily driven by an increase in transactions due to an increase in BOPIS fulfilled orders (which are recognized as store Net Sales) and new store growth, and an increase in average dollar sales. Direct Net Sales decreased $11 million, or 4.3%, driven by a decline in fulfilled orders, which was primarily due to our customers continuing to select our BOPIS option, partially offset by an increase in average order size. International Net Sales increased $6 million, or 10.1%, driven by timing of product shipments to our partners.
Current wording
For the second quarter of 2025, total Net Sales were $1,549 million and increased $23 million, or 1.5%, compared to the second quarter of 2024. Stores Net Sales increased $56 million, or 4.9%, primarily driven by an increase in transactions due to an increase in BOPIS fulfilled orders (which are recognized as store Net Sales) and new store growth, and an increase in average dollar sales. Direct Net Sales decreased $30 million, or 10.1%, driven by a decline in fulfilled orders, which was primarily due to our customers continuing to select our BOPIS option, partially offset by an increase in average order size. International Net Sales decreased $3 million, or 2.9%.
Previous wording
For the first quarter of 2025, our Gross Profit increased $40 million to $646 million, and our Gross Profit rate (expressed as a percentage of Net Sales) increased to 45.4%, from 43.8% in the first quarter of 2024. Gross Profit dollars increased due to higher Net Sales and a 100 basis point improvement in the merchandise margin rate, which was primarily driven by strategic pricing and strong cost management. Category mix shifts drove both lower average unit retails and average unit costs during the quarter.
Current wording
For the second quarter of 2025, our Gross Profit increased $14 million compared to the second quarter of 2024, to $640 million, and our Gross Profit rate (expressed as a percentage of Net Sales) increased to 41.3%, from 41.0% in the second quarter of 2024. Gross Profit dollars increased due to higher Net Sales, and the Gross Profit rate increased due to leverage on Occupancy Expenses largely driven by the exit of a third-party fulfillment center. The second quarter of 2025 merchandise margin rate was flat to the second quarter of 2024, as strategic pricing and strong cost management mitigated the impact from tariffs.
Previous wording
The following table provides detail for our General, Administrative and Store Operating Expenses for the first quarter of 2025 compared to the first quarter of 2024:
Current wording
The following table provides detail for our General, Administrative and Store Operating Expenses for the second quarter of 2025 compared to the second quarter of 2024:
Previous wording
For the first quarter of 2025, our total General, Administrative and Store Operating Expenses increased $18 million to $437 million, and the rate (expressed as a percentage of Net Sales) increased to 30.7% from 30.3% in the first quarter of 2024. Selling Expenses and General and Administrative Expenses both increased primarily due to higher payroll related costs, mainly driven by wage inflation, partially offset by the benefits of our cost optimization work.
Current wording
For the second quarter of 2025, our total General, Administrative and Store Operating Expenses increased $40 million compared to the second quarter of 2024, to $483 million, and the rate (expressed as a percentage of Net Sales) increased to 31.1% from 29.1% in the second quarter of 2024. Selling Expenses increased primarily due to higher payroll related costs, mainly driven by investments in wages and new stores, and higher healthcare costs. General and Administrative Expenses increased primarily due to $15 million of costs related to the transition of certain members of the leadership team, primarily related to severance benefits.
Previous wording
The following table provides the average daily borrowings and average borrowing rates for the first quarters of 2025 and 2024:
Current wording
The following table provides the average daily borrowings and average borrowing rates for the second quarters of 2025 and 2024:
Previous wording
For the first quarter of 2025, our Interest Expense was $71 million, compared to $82 million in the first quarter of 2024. The decrease was due to lower average daily borrowings and borrowing rate, which were driven by the early extinguishment of outstanding notes.
Current wording
For the second quarter of 2025, our Interest Expense was $68 million, compared to $77 million in the second quarter of 2024. The decrease was due to lower average daily borrowings and borrowing rate, which were driven by the early extinguishment of outstanding notes in fiscal year 2024.
Previous wording
Gross Profit rate increased due to the merchandise margin rate improvement as well as leverage on Occupancy Expenses due to Net Sales growth.
Current wording
Gross Profit rate increased due to the merchandise margin rate improvement as well as leverage on Occupancy Expenses largely due to exit of a third-party fulfillment center and Net Sales growth.
Previous wording
The General, Administrative and Store Operating Expense rate increased primarily due to the increase in payroll related costs and incremental investments in marketing.
Current wording
The General, Administrative and Store Operating Expense rate increased primarily due to the increase in payroll related costs, leadership transition costs and higher healthcare costs as well as incremental investments in marketing.
Previous wording
For the first quarter of 2025, our effective tax rate was 28.4% compared to 26.8% in the first quarter of 2024. The 2025 and 2024 first quarter rates were higher than our combined estimated federal and state statutory rates primarily due to accrued interest expense related to unrecognized tax benefits.
Current wording
For year-to-date 2025, our effective tax rate was 29.9% compared to 12.1% for year-to-date 2024. The 2025 year-to-date rate was higher than our combined estimated federal and state statutory rates largely due to accrued interest expense related to unrecognized tax benefits and the transition of certain members of the leadership team, primarily related to severance benefits. The 2024 year-to-date rate was lower than our combined estimated federal and state statutory rates primarily due to the sales of Easton investments, which resulted in the release of a valuation allowance on a deferred tax asset.
Previous wording
Liquidity, or access to cash, is an important factor in determining our financial stability. We are committed to maintaining adequate liquidity. Cash generated from our operating activities provides the primary resources to support current operations, growth initiatives, seasonal funding requirements, future common stock and debt repurchases, and capital expenditures. Our cash provided from operations is impacted by our net income and working capital changes. Our net income is impacted by, among other things, sales volume, seasonal sales patterns, success of new product introductions and product and market expansions, profit margins, income taxes and inflationary pressures. Typically, our sales are highest during the fourth quarter of the fiscal year due to seasonal and holiday-related sales patterns. Generally, our need for working capital peaks during the summer and fall months as inventory builds in anticipation of the holiday period. Our cash and cash equivalents held by foreign subsidiaries were $182 million as of May 3, 2025.
Current wording
Liquidity, or access to cash, is an important factor in determining our financial stability. We are committed to maintaining adequate liquidity. Cash generated from our operating activities provides the primary resources to support current operations, growth initiatives, seasonal funding requirements, future common stock and debt repurchases, and capital expenditures. Our cash provided from operations is impacted by our net income and working capital changes. Our net income is impacted by, among other things, sales volume, seasonal sales patterns, success of new product introductions and product and market expansions, profit margins, income taxes and inflationary pressures. Typically, our sales are highest during the fourth quarter of the fiscal year due to seasonal and holiday-related sales patterns. Generally, our need for working capital peaks during the summer and fall months as inventory builds in anticipation of the holiday period. Our cash and cash equivalents held by foreign subsidiaries were $123 million as of August 2, 2025.
Previous wording
During the first quarter of 2025, we repurchased 4.326 million shares of our common stock for $135 million. We may, from time to time, repurchase, or otherwise retire, additional debt or shares of our common stock, as applicable.
Current wording
We repurchased 8.468 million shares of our common stock for $256 million during year-to-date 2025. We may, from time to time, repurchase, or otherwise retire, additional shares of our common stock or debt, as applicable.
Previous wording
The following table provides a summary of our cash flow activity during the first quarters of 2025 and 2024:
Current wording
The following table provides a summary of our cash flow activity during year-to-date 2025 and 2024:
Previous wording
Net cash provided by operating activities in the first quarter of 2025 was $188 million, including net income of $105 million. Net income included depreciation of $64 million and share-based compensation expense of $10 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories and Accounts Receivable.
Current wording
Net cash provided by operating activities for year-to-date 2025 was $145 million, including net income of $169 million. Net income included depreciation of $128 million and share-based compensation expense of $18 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories, Income Taxes Payable and Accounts Receivable, with Inventories also impacted by the higher tariff levels in the current year. Accounts Payable, Accrued Expenses and Other provided a cash flow benefit primarily due to our efforts to improve working capital.
Previous wording
Net cash provided by operating activities in the first quarter of 2024 was $76 million, including net income of $87 million. Net income included depreciation of $71 million and share-based compensation expense of $12 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories, Accounts Receivable and Accounts Payable, Accrued Expenses and Other.
Current wording
Net cash provided by operating activities for year-to-date 2024 was $30 million, including net income of $239 million. Net income included depreciation of $142 million, impacts to deferred income taxes of $102 million, an aggregate pre-tax gain on sales of certain Easton investments of $39 million and share-based compensation expense of $22 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories, Income Taxes Payable, and Accounts Receivable, and the change in Accounts Payable, Accrued Expenses and Other.
Previous wording
Net cash used for investing activities in the first quarter of 2025 was $39 million, primarily related to capital expenditures. The capital expenditures included approximately $25 million related to new off-mall stores and remodels of existing stores and approximately $10 million for various technology projects primarily to support the growth and profitability of our business.
Current wording
Net cash used for investing activities for year-to-date 2025 was $95 million, primarily related to capital expenditures. The capital expenditures included approximately $60 million related to new off-mall stores and remodels of existing stores and approximately $20 million for various technology projects primarily to support the growth and profitability of our business.
Previous wording
Net cash used for financing activities in the first quarter of 2025 was $188 million, primarily consisting of $136 million for share repurchases and dividend payments of $0.20 per share, or $43 million.
Current wording
Net cash used for financing activities during year-to-date 2025 was $362 million, primarily consisting of $254 million for share repurchases and dividend payments of $0.40 per share, or $85 million.
Previous wording
Net cash used for financing activities in the first quarter of 2024 was $259 million, primarily consisting of $110 million for open market debt repurchases, $96 million for share repurchases, dividend payments of $0.20 per share, or $45 million, and $7 million of tax payments related to share-based awards.
Current wording
Net cash used for financing activities for year-to-date 2024 was $560 million, primarily consisting of $248 million for share repurchases, $202 million for open market debt repurchases, dividend payments of $0.40 per share, or $90 million and $15 million of tax payments related to share-based awards.
Previous wording
Under the authority of our Board of Directors, we repurchased shares of our common stock under the following repurchase programs during the first quarters of 2025 and 2024:
Current wording
Under the authority of our Board of Directors, we repurchased shares of our common stock under the following repurchase programs during year-to-date 2025 and 2024:
Previous wording
The January 2024 Program had $139 million of remaining authority as of February 1, 2025. There were share repurchases of $1 million as of February 1, 2025 and $5 million as of May 4, 2024 reflected in Accounts Payable on the Consolidated Balance Sheets.
Current wording
The January 2024 Program had $139 million of remaining authority as of February 1, 2025. There were share repurchases of $1 million as of February 1, 2025 and $2 million as of August 3, 2024 reflected in Accounts Payable on the Consolidated Balance Sheets.
Previous wording
On February 27, 2025, we cancelled the remaining $121 million authorization available under the January 2024 Program and began repurchasing shares under the January 2025 Program. The January 2025 Program had $382 million of remaining authority as of May 3, 2025.
Current wording
On February 27, 2025, we cancelled the remaining $121 million authorization available under the January 2024 Program and began repurchasing shares under the January 2025 Program. There were share repurchases of $3 million as of August 2, 2025 reflected in Accounts Payable on the Consolidated Balance Sheet. The January 2025 Program had $262 million of remaining authority as of August 2, 2025.
Previous wording
We paid the following dividends during the first quarters of 2025 and 2024:
Current wording
We paid the following dividends during the first and second quarters of 2025 and 2024:
Previous wording
In May 2025, we declared our second quarter 2025 ordinary dividend of $0.20 per share payable on June 20, 2025 to shareholders of record at the close of business on June 6, 2025.
Current wording
In August 2025, we declared our third quarter 2025 ordinary dividend of $0.20 per share payable on September 5, 2025 to shareholders of record at the close of business on August 22, 2025.
Previous wording
We did not repurchase any outstanding senior notes during the first quarter of 2025.
Current wording
We did not repurchase any outstanding senior notes during the second quarter of and year-to-date 2025.
Previous wording
During the first quarter of 2024, we repurchased in the open market and extinguished $109 million principal amount of our 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, Net in the first quarter of 2024 Consolidated Statement of Income.
Current wording
During the second quarter of and year-to-date 2024, we repurchased in the open market and extinguished $91 million and $200 million principal amounts of our outstanding senior notes, respectively. The aggregate repurchase price for these notes was $92 million and $202 million for the second quarter of and year-to-date 2024, respectively, resulting in pre-tax losses of $2 million and $3 million, including the write-off of unamortized issuance costs, during the second quarter of and year-to-date 2024, respectively. These losses are included in Other Income, Net in the 2024 Consolidated Statements of Income.
Previous wording
The following table provides details of the outstanding principal amounts of senior notes repurchased and extinguished during the first quarter of and the full year 2024:
Current wording
The following table provides details of the outstanding principal amounts of senior notes repurchased and extinguished during the second quarter, year-to-date and full year of 2024:
Previous wording
We and certain of our 100% owned subsidiaries guarantee and pledge collateral to secure the ABL Facility. The ABL Facility, which allows borrowings and letters of credit in U.S. dollars, has aggregate commitments of $750 million and, as of May 3, 2025, had an expiration date in August 2026.
Current wording
We and certain of our 100% owned subsidiaries guarantee and pledge collateral to secure the ABL Facility. The ABL Facility, which allows borrowings and letters of credit in U.S. and Canadian dollars, has aggregate commitments of $750 million.
Previous wording
Subsequent to May 3, 2025, we entered into an amendment and restatement of the ABL Facility, which removed the interest rate credit spread adjustment of 0.10%, extended the expiration date from August 2026 to May 2030 and included other technical amendments.
Current wording
In May 2025, we entered into an amendment and restatement (“Amendment”) of the ABL Facility. The Amendment removed the interest rate credit spread adjustment of 0.10%, extended the expiration date from August 2026 to May 2030 and included certain other technical amendments.
Previous wording
Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on our 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, we are required to repay the outstanding amounts under the ABL Facility to the extent of such excess. As of May 3, 2025, our borrowing base was $639 million, and we had no borrowings outstanding under the ABL Facility.
Current wording
Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on our 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, we are required to repay the outstanding amounts under the ABL Facility to the extent of such excess. As of August 2, 2025, our borrowing base was $683 million, and we had no borrowings outstanding under the ABL Facility.
Previous wording
The ABL Facility supports our letter of credit program. We had $11 million of outstanding letters of credit as of May 3, 2025 that reduced our availability under the ABL Facility. As of May 3, 2025, our availability under the ABL Facility was $628 million.
Current wording
The ABL Facility supports our letter of credit program. We had $9 million of outstanding letters of credit as of August 2, 2025 that reduced our availability under the ABL Facility. As of August 2, 2025, our availability under the ABL Facility was $674 million.
Previous wording
As of May 3, 2025, 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.
Current wording
As of August 2, 2025, 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% per annum. The interest rate on outstanding Canadian dollar-denominated borrowings was the Canadian Overnight Repo Rate Average plus 1.25% per annum.
Previous wording
(a)Includes amounts due from non-Guarantor subsidiaries of $583 million and $572 million as of May 3, 2025 and February 1, 2025, respectively.
Current wording
(a)Includes amounts due from non-Guarantor subsidiaries of $588 million and $572 million as of August 2, 2025 and February 1, 2025, respectively.
Previous wording
(b)Includes amounts due to non-Guarantor subsidiaries of $1.417 billion and $1.421 billion as of May 3, 2025 and February 1, 2025, respectively.
Current wording
(b)Includes amounts due to non-Guarantor subsidiaries of $1.467 billion and $1.421 billion as of August 2, 2025 and February 1, 2025, respectively.
Previous wording
(a)Includes Net Sales of $34 million to non-Guarantor subsidiaries.
Current wording
(a)Includes Net Sales of $72 million to non-Guarantor subsidiaries.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
The General, Administrative and Store Operating Expense rate increased primarily due to the leadership transition costs, increase in payroll related costs, and higher healthcare costs.
Current report — wording carried from elsewhere
(a)Results include fulfilled BOPIS orders.
Current report — wording carried from elsewhere
For year-to-date 2025, Net Sales were $2,974 million and increased $64 million, or 2.2%, compared to year-to-date 2024. Stores Net Sales increased $102 million, or 4.6%, primarily driven by an increase in transactions due to an increase in BOPIS fulfilled orders (which are recognized as store Net Sales) and new store growth, and an increase in average dollar sales. Direct Net Sales decreased $41 million, or 7.4%, driven by a decline in fulfilled orders, which was primarily due to our customers continuing to select our BOPIS option, partially offset by an increase in average order size. International Net Sales increased $3 million, or 2.3%.
Current report — wording carried from elsewhere
General, Administrative and Store Operating Expenses
Current report — wording carried from elsewhere
The following table provides the average daily borrowings and average borrowing rates for year-to-date 2025 and 2024:
Current report — wording carried from elsewhere
For year-to-date 2025, our Interest Expense was $139 million, compared to $159 million for year-to-date 2024. The decrease was due to lower average daily borrowings and borrowing rate, which were driven by the early extinguishment of outstanding notes in fiscal year 2024.
Current report — wording carried from elsewhere
Net cash used for investing activities for year-to-date 2024 was $40 million primarily related to capital expenditures of $101 million, partially offset by aggregate cash proceeds of $50 million related to the sales of certain Easton investments. The capital expenditures included approximately $75 million related to new, primarily off-mall, stores and remodels of existing stores, approximately $15 million for various technology projects primarily to support the growth and profitability of our business and approximately $10 million related to distribution and logistics capabilities.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Net cash used for investing activities in the first quarter of 2024 was $46 million related to capital expenditures. The capital expenditures included approximately $35 million related to new, primarily off-mall stores and remodels of existing stores.