UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 13, 2020
(Exact Name of Registrant as Specified in Its Charter) | |||
(State or Other Jurisdiction of Incorporation) | |||
(Commission File Number) | (IRS Employer Identification No.) | ||
(Address of Principal Executive Offices) | (Zip Code) | ||
(614 ) 415-7000
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.
L Brands, Inc. (the "Company") is filing this Current Report on Form 8-K to provide reconciliations of certain historical financial information from its prior segment reporting structure to the new segment reporting structure described below.
In the third quarter of 2020, the Company changed its segment reporting structure as a result of leadership changes, actions taken and the ongoing efforts to separate Victoria’s Secret and Bath & Body Works into separate businesses. Going forward, the Company will have two reportable segments: Victoria’s Secret and Bath & Body Works. Accordingly, the Company will no longer report a Victoria’s Secret and Bath & Body Works International segment as these businesses are now included with their respective brand. Additionally, the Victoria’s Secret and Bath & Body Works segments now include sourcing and production functions (formerly known as Mast) and certain other corporate functions that directly support each brand. These functions were previously included within the Other category.
The Company has provided a reconciliation of net sales and operating income (loss) from the previous reporting structure to the new reporting structure for fiscal years 2018 and 2019, and year-to-date 2020 through the second quarter attached hereto as Exhibit 99.1.
The Company has also provided a reconciliation of comparable sales, net sales and operating income (loss) from the previous reporting structure to the new reporting structure for each quarterly period within fiscal years 2018 and 2019, and year-to-date 2020 through the second quarter attached hereto as Exhibit 99.2.
In addition to results provided in accordance with U.S. GAAP, the Company has provided operating income (loss) on an adjusted non-GAAP basis which removes certain special items. The Company believes that these special items are not indicative of its ongoing operations due to their size and nature. The Company uses adjusted non-GAAP financial information as key performance measures of results of operations for the purpose of evaluating performance internally. These adjusted non-GAAP measurements are not intended to replace the presentation of financial results in accordance with U.S. GAAP. Instead, the Company believes that the presentation of adjusted non-GAAP financial information provides additional information to investors to facilitate the comparison of past and present operations. Further, the Company's definition of adjusted non-GAAP financial information may differ from similarly titled measures used by other companies. The special items shown on the attached exhibits are consistent with those previously reported in each respective fiscal period. For additional information regarding the special items, please refer to the Company's periodic filings on Form 10-K and Form 10-Q.
Item 9.01. Financial Statements and Exhibits.
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
L Brands, Inc. | |||
Date: | November 13, 2020 | By: | /s/ STUART B. BURGDOERFER |
Stuart B. Burgdoerfer | |||
Executive Vice President and Chief Financial Officer | |||
EXHIBIT 99.1 L BRANDS, INC. AND SUBSIDIARIES RESULTS BY SEGMENT YEAR-TO-DATE Q2 2020 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting were made: - The Victoria's Secret and Bath & Body Works International segment results are now reported in their respective brand segment. - The Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and certain other corporate functions that directly support a specific brand are now reported in their respective brand segment. Net Sales Historical Segment Presentation Segment Reclasses Recasted Segment Presentation Add-back: Adjustments for Victoria's Secret Bath & Body Works Other Adjustments for Actual Special Items Adjusted International 1 International 2 Category 3 Adjusted Special Items Actual Victoria's Secret$ 1,799,082 $ - $ 1,799,082 $ 117,020 $ - $ 43,839 $ 1,959,941 $ - $ 1,959,941 Bath & Body Works 1,909,350 - 1,909,350 - 28,365 76,019 2,013,734 - 2,013,734 Victoria's Secret and Bath & Body Works International 145,385 - 145,385 (117,020) (28,365) - - - - Other 4 119,858 - 119,858 - - (119,858) - - - L Brands$ 3,973,675 $ - $ 3,973,675 $ - $ - $ - $ 3,973,675 $ - $ 3,973,675 Operating Income (Loss) Historical Segment Presentation Segment Reclasses Recasted Segment Presentation Add-back: Adjustments for Victoria's Secret Bath & Body Works Other Adjustments for Actual Special Items Adjusted International 1 International 2 Category 3 Adjusted Special Items Actual Victoria's Secret$ (440,363) $ 198,320 $ (242,043) $ (62,293) $ - $ (38,021) $ (342,355) $ (228,902) $ (571,257) Bath & Body Works 394,716 5,307 400,023 - 14,135 10,177 424,335 (11,654) 412,681 Victoria's Secret and Bath & Body Works International (53,923) 5,765 (48,158) 62,293 (14,135) - - - - Other 4 (174,089) 49,081 (125,008) - - 27,844 (97,166) (17,917) (115,082) L Brands$ (273,659) $ 258,473 $ (15,186) $ - $ - $ - $ (15,186) $ (258,473) $ (273,659) Notes: 1. Combines Victoria's Secret International with Victoria's Secret North America. 2. Combines Bath & Body Works International with Bath & Body Works North America. 3. Combines Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and other home office costs with the respective brand segment. 4. Remaining Net Sales and Operating Income (Loss) for Other relates to corporate unallocated costs. As previously disclosed in our periodic filings on Form 10-K and Form 10-Q, the "Adjustments for Special Items" column includes the following: ˙ An $172 million charge related to the impairment of Victoria’s Secret store and lease assets in North America and a $42 million charge related to the impairment of Victoria’s Secret store and lease assets outside of North America. ˙ An $81 million charge related to headcount reductions as a result of restructuring actions. ˙ A $36 million gain related to the closure and termination of our lease and the related liability for the Victoria’s Secret Hong Kong flagship store.
L BRANDS, INC. AND SUBSIDIARIES RESULTS BY SEGMENT FISCAL YEAR 2019 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting were made: - The Victoria's Secret and Bath & Body Works International segment results are now reported in their respective brand segment. - The Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and certain other corporate functions that directly support a specific brand are now reported in their respective brand segment. Net Sales Historical Segment Presentation Segment Reclasses Recasted Segment Presentation Add-back: Adjustments for Victoria's Secret Bath & Body Works Other Adjustments for Actual Special Items Adjusted International 1 International 2 Category 3 Adjusted Special Items Actual Victoria's Secret$ 6,804,516 $ - $ 6,804,516 $ 536,216 $ - $ 168,042 $ 7,508,774 $ - $ 7,508,774 Bath & Body Works 5,170,493 - 5,170,493 - 63,752 121,420 5,355,665 - 5,355,665 Victoria's Secret and Bath & Body Works International 599,967 - 599,967 (536,216) (63,752) - - - - Other 4 339,259 - 339,259 - - (289,462) 49,797 - 49,797 L Brands$ 12,914,236 $ - $ 12,914,236 $ - $ - $ - $ 12,914,236 $ - $ 12,914,236 Operating Income (Loss) Historical Segment Presentation Segment Reclasses Recasted Segment Presentation Add-back: Adjustments for Victoria's Secret Bath & Body Works Other Adjustments for Actual Special Items Adjusted International 1 International 2 Category 3 Adjusted Special Items Actual Victoria's Secret$ (616,057) $ 730,706 $ 114,649 $ (26,784) $ - $ 103,086 $ 190,951 $ (972,493) $ (781,542) Bath & Body Works 1,191,270 - 1,191,270 - 32,956 (451) 1,223,775 - 1,223,775 Victoria's Secret and Bath & Body Works International (235,615) 241,787 6,172 26,784 (32,956) - - - - Other 4 (81,153) - (81,153) - - (102,634) (183,787) - (183,787) L Brands$ 258,446 $ 972,493 $ 1,230,939 $ - $ - $ - $ 1,230,939 $ (972,493) $ 258,446 Notes: 1. Combines Victoria's Secret International with Victoria's Secret North America. 2. Combines Bath & Body Works International with Bath & Body Works North America. 3. Combines Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and other home office costs with the respective brand segment. 4. Remaining Net Sales and Operating Income (Loss) for Other relates to corporate unallocated costs, Henri Bendel and La Senza. As previously disclosed in our periodic filings on Form 10-K and Form 10-Q, the "Adjustments for Special Items" column includes the following: ˙ A $720 million charge related to the impairment of Victoria’s Secret goodwill ($690 million related to Victoria's Secret North America and $30 million related to Victoria's Secret International). ˙ A $211 million charge related to the impairment of Victoria’s Secret store and lease assets outside of North America and a $41 million charge related to the impairment of Victoria’s Secret store and lease assets in North America.
L BRANDS, INC. AND SUBSIDIARIES RESULTS BY SEGMENT FISCAL YEAR 2018 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting were made: - The Victoria's Secret and Bath & Body Works International segment results are now reported in their respective brand segment. - The Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and certain other corporate functions that directly support a specific brand are now reported in their respective brand segment. Net Sales Historical Segment Presentation Segment Reclasses Recasted Segment Presentation Add-back: Adjustments for Victoria's Secret Bath & Body Works Other Adjustments for Actual Special Items Adjusted International 1 International 2 Category 3 Adjusted Special Items Actual Victoria's Secret$ 7,374,864 $ - $ 7,374,864 $ 552,399 $ - $ 175,494 $ 8,102,758 $ - $ 8,102,758 Bath & Body Works 4,631,020 - 4,631,020 - 52,885 91,628 4,775,532 - 4,775,532 Victoria's Secret and Bath & Body Works International 605,284 - 605,284 (552,399) (52,885) - - - - Other 4 625,710 - 625,710 - - (267,122) 358,589 - 358,589 L Brands$ 13,236,878 $ - $ 13,236,878 $ - $ - $ - $ 13,236,878 $ - $ 13,236,878 Operating Income (Loss) Historical Segment Presentation Segment Reclasses Recasted Segment Presentation Add-back: Adjustments for Victoria's Secret Bath & Body Works Other Adjustments for Actual Special Items Adjusted International 1 International 2 Category 3 Adjusted Special Items Actual Victoria's Secret$ 462,288 $ 50,120 $ 512,408 $ (33,422) $ - $ 119,673 $ 598,661 $ (80,878) $ 517,783 Bath & Body Works 1,077,454 - 1,077,454 - 26,845 (1,211) 1,103,086 - 1,103,086 Victoria's Secret and Bath & Body Works International (37,335) 30,758 (6,577) 33,422 (26,845) - - - - Other 4 (265,620) 119,552 (146,068) - - (118,462) (264,530) (119,552) (384,082) L Brands$ 1,236,787 $ 200,430 $ 1,437,217 $ - $ - $ - $ 1,437,217 $ (200,430) $ 1,236,787 Notes: 1. Combines Victoria's Secret International with Victoria's Secret North America. 2. Combines Bath & Body Works International with Bath & Body Works North America. 3. Combines Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and other home office costs with the respective brand segment. 4. Remaining Net Sales and Operating Income (Loss) for Other relates to corporate unallocated costs, Henri Bendel and La Senza. As previously disclosed in our periodic filings on Form 10-K and Form 10-Q, the "Adjustments for Special Items" column includes the following: A $99 million loss on the sale of La Senza to an affiliate of Regent LP. ˙ A $50 million charge related to the impairment of Victoria’s Secret store assets in North America and a $31 million charge related to the impairment of Victoria’s Secret store assets outside of North America. ˙ $20 million of Henri Bendel closure costs. ˙
EXHIBIT 99.2 L BRANDS, INC. AND SUBSIDIARIES RESULTS BY SEGMENT FISCAL YEAR 2020 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting were made: - The Victoria's Secret and Bath & Body Works International segment results are now reported in their respective brand segment. - The Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and certain other corporate functions that directly support a specific brand are now reported in their respective brand segment. May 2, 2020 August 1, 2020 YTD August 1, 2020 As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted Bath & Body Works Comparable Store Sales 20% - 20% 87% - 87% 54% - 54% Comparable Sales 41% - 41% 123% - 123% 84% - 84% Net Sales $ 712,662 $ 47,940 $ 760,602 $ 1,196,688 $ 56,444 $ 1,253,132 $ 1,909,350 $ 104,384 $ 2,013,734 Operating Income (Loss) $ 69,093 $ 6,634 $ 75,727 $ 325,624 $ 11,329 $ 336,953 $ 394,716 $ 17,965 $ 412,681 % of Sales 9.7% 0.3% 10.0% 27.2% -0.3% 26.9% 20.7% -0.2% 20.5% Victoria's Secret Comparable Store Sales -15% -3% -18% -10% -2% -12% -13% -3% -16% Comparable Sales -13% -2% -15% 28% -4% 24% 6% -3% 3% Net Sales $ 821,542 $ 72,065 $ 893,607 $ 977,540 $ 88,794 $ 1,066,334 $ 1,799,082 $ 160,859 $ 1,959,941 Operating Income (Loss) $ (299,967) $ (53,888) $ (353,855) $ (140,396) $ (77,006) $ (217,402) $ (440,363) $ (130,894) $ (571,257) % of Sales -36.5% -3.1% -39.6% -14.4% -6.0% -20.4% -24.5% -4.6% -29.1% Victoria's Secret and Bath & Body Works International Comparable Store Sales -52% 52% - -28% 28% - -40% 40% - Comparable Sales -44% 44% - -22% 22% - -33% 33% - Net Sales $ 65,464 $ (65,464) $ - $ 79,922 $ (79,922) $ - $ 145,385 $ (145,385) $ - Operating Income (Loss) $ (35,264) $ 35,264 $ - $ (18,659) $ 18,659 $ - $ (53,923) $ 53,923 $ - % of Sales -53.9% 53.9% - -23.3% 23.3% - -37.1% 37.1% - Other Comparable Store Sales - - - - - - - - - Comparable Sales - - - - - - - - - Net Sales $ 54,541 $ (54,541) $ - $ 65,316 $ (65,316) $ - $ 119,858 $ (119,858) $ - Operating Income (Loss) $ (51,560) $ 11,989 $ (39,571) $ (122,529) $ 47,016 $ (75,513) $ (174,089) $ 59,007 $ (115,082) % of Sales -94.5% 94.5% 0.0% -187.6% 187.6% 0.0% -145.2% 145.2% 0.0% Total L Brands Comparable Store Sales -5% - -5% 33% - 33% 12% - 12% Comparable Sales 4% - 4% 63% - 63% 32% - 32% Net Sales $ 1,654,209 $ - $ 1,654,209 $ 2,319,466 $ - $ 2,319,466 $ 3,973,675 $ - $ 3,973,675 Operating Income (Loss) $ (317,698) $ - $ (317,698) $ 44,040 $ - $ 44,040 $ (273,659) $ - $ (273,659) % of Sales -19.2% - -19.2% 1.9% - 1.9% -6.9% - -6.9%
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED RESULTS BY SEGMENT FISCAL YEAR 2020 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting were made: - The Victoria's Secret and Bath & Body Works International segment results are now reported in their respective brand segment. - The Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and certain other corporate functions that directly support a specific brand are now reported in their respective brand segment. May 2, 2020 August 1, 2020 YTD August 1, 2020 Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted Bath & Body Works Comparable Store Sales 20% - 20% 87% - 87% 54% - 54% Comparable Sales 41% - 41% 123% - 123% 84% - 84% Net Sales $ 712,662 $ 47,940 $ 760,602 $ 1,196,688 $ 56,444 $ 1,253,132 $ 1,909,350 $ 104,384 $ 2,013,734 Operating Income (Loss) $ 69,093 $ 6,634 $ 75,727 $ 330,931 $ 17,676 $ 348,607 $ 400,023 $ 24,312 424,335 % of Sales 9.7% 0.3% 10.0% 27.7% 0.1% 27.8% 21.0% 0.1% 21.1% Victoria's Secret Comparable Store Sales -15% -3% -18% -10% -2% -12% -13% -3% -16% Comparable Sales -13% -2% -15% 28% -4% 24% 6% -3% 3% Net Sales $ 821,542 $ 72,065 $ 893,607 $ 977,540 $ 88,794 $ 1,066,334 $ 1,799,082 $ 160,859 $ 1,959,941 Operating Income (Loss) $ (203,123) $ (53,888) $ (257,011) $ (38,920) $ (46,424) $ (85,344) $ (242,043) $ (100,312) $ (342,355) % of Sales -24.7% -4.1% -28.8% -4.0% -4.0% -8.0% -13.5% -4.0% -17.5% Victoria's Secret and Bath & Body Works International Comparable Store Sales -52% 52% - -28% 28% - -40% 40% - Comparable Sales -44% 44% - -22% 22% - -33% 33% - Net Sales $ 65,464 $ (65,464) $ - $ 79,922 $ (79,922) $ - $ 145,385 $ (145,385) $ - Operating Income (Loss) $ (35,264) $ 35,264 $ - $ (12,894) $ 12,894 $ - $ (48,158) $ 48,158 $ - % of Sales -53.9% 53.9% - -16.1% 16.1% - -33.1% 33.1% - Other Comparable Store Sales - - - - - - - - - Comparable Sales - - - - - - - - - Net Sales $ 54,541 $ (54,541) $ - $ 65,316 $ (65,316) $ - $ 119,858 $ (119,858) $ - Operating Income (Loss) $ (51,560) $ 11,989 $ (39,571) $ (73,448) $ 15,852 $ (57,596) $ (125,008) $ 27,842 $ (97,166) % of Sales -94.5% 94.5% 0.0% -112.5% 112.5% 0.0% -104.3% 104.3% 0.0% Total L Brands Comparable Store Sales -5% - -5% 33% - 33% 12% - 12% Comparable Sales 4% - 4% 63% - 63% 32% - 32% Net Sales $ 1,654,209 $ - $ 1,654,209 $ 2,319,466 $ - $ 2,319,466 $ 3,973,675 $ - $ 3,973,675 Operating Income (Loss) $ (220,854) $ - $ (220,854) $ 205,669 $ - $ 205,669 $ (15,186) $ - $ (15,186) % of Sales -13.4% - -13.4% 8.9% - 8.9% -0.4% - -0.4%
L BRANDS, INC. AND SUBSIDIARIES RESULTS BY SEGMENT FISCAL YEAR 2019 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting were made: - The Victoria's Secret and Bath & Body Works International segment are now reported in their respective brand segment. - The Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and certain other corporate functions that directly support a specific brand are now reported in their respective brand segment. May 4, 2019 August 3, 2019 November 2, 2019 February 1, 2020 Full Year February 1, 2020 As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted Bath & Body Works Comparable Store Sales 7% - 7% 4% - 4% 5% - 5% 5% - 5% 5% - 5% Comparable Sales 13% - 13% 8% - 8% 9% - 9% 10% - 10% 10% - 10% Net Sales $ 870,734 $ 48,262 $ 918,996 $ 1,060,864 $ 45,896 $ 1,106,760 $ 1,064,146 $ 34,815 $ 1,098,961 $ 2,174,750 $ 56,197 $ 2,230,947 $ 5,170,493 $ 185,172 $ 5,355,665 Operating Income (Loss) $ 154,851 $ 12,870 $ 167,721 $ 180,234 $ 3,334 $ 183,568 $ 195,579 $ 13,181 $ 208,760 $ 660,606 $ 3,120 $ 663,726 $ 1,191,270 $ 32,505 $ 1,223,775 % of Sales 17.8% 0.5% 18.3% 17.0% -0.4% 16.6% 18.4% 0.6% 19.0% 30.4% -0.6% 29.8% 23.0% -0.1% 22.9% Victoria's Secret Comparable Store Sales -7% -1% -8% -9% - -9% -8% -1% -9% -10% -1% -11% -9% - -9% Comparable Sales -5% - -5% -6% - -6% -7% -1% -8% -10% - -10% -7% -1% -8% Net Sales $ 1,510,852 $ 159,551 $ 1,670,403 $ 1,605,632 $ 179,060 $ 1,784,692 $ 1,412,215 $ 165,271 $ 1,577,486 $ 2,275,817 $ 200,377 $ 2,476,194 $ 6,804,516 $ 704,258 $ 7,508,774 Operating Income (Loss) $ 32,720 $ (753) $ 31,967 $ 16,565 $ 18,811 $ 35,376 $ (122,202) $ (195,336) $ (317,538) $ (543,141) $ 11,794 $ (531,347) $ (616,057) $ (165,485) $ (781,542) % of Sales 2.2% -0.3% 1.9% 1.0% 1.0% 2.0% -8.7% -11.4% -20.1% -23.9% 2.4% -21.5% -9.1% -1.3% -10.4% Victoria's Secret and Bath & Body Works International Comparable Store Sales -10% 10% - -13% 13% - -19% 19% - -18% 18% - -16% 16% - Comparable Sales -5% 5% - -8% 8% - -18% 18% - -18% 18% - -13% 13% - Net Sales $ 134,955 $ (134,955) $ - $ 154,561 $ (154,561) $ - $ 133,349 $ (133,349) $ - $ 177,102 $ (177,102) $ - $ 599,967 $ (599,967) $ - Operating Income (Loss) $ (4,011) $ 4,011 $ - $ (1,280) $ 1,280 $ - $ (215,055) $ 215,055 $ - $ (15,270) $ 15,270 $ - $ (235,615) $ 235,615 $ - % of Sales -3.0% 3.0% - -0.8% 0.8% - -161.3% 161.3% - -8.6% 8.6% - -39.3% 39.3% - Other Comparable Store Sales - - - - - - - - - - - - - - - Comparable Sales - - - - - - - - - - - - - - - Net Sales $ 112,268 $ (72,857) $ 39,411 $ 80,481 $ (70,395) $ 10,086 $ 67,037 $ (66,737) $ 300 $ 79,472 $ (79,472) $ - $ 339,259 $ (289,462) $ 49,797 Operating Income (Loss) $ (30,216) $ (16,125) $ (46,341) $ (20,919) $ (23,424) $ (44,343) $ (9,537) $ (32,899) $ (42,436) $ (20,481) $ (30,185) $ (50,666) $ (81,153) $ (102,634) $ (183,787) % of Sales -26.9% -90.7% -117.6% -26.0% -413.7% -439.7% -14.2% -14131.1% -14145.3% -25.8% 25.8% 0.0% -23.9% -345.2% -369.1% Total L Brands Comparable Store Sales -3% - -3% -4% - -4% -3% - -3% -4% - -4% -3% - -3% Comparable Sales 0% - 0% -1% - -1% -2% - -2% -2% - -2% -1% - -1% Net Sales $ 2,628,809 $ - $ 2,628,809 $ 2,901,538 $ - $ 2,901,538 $ 2,676,747 $ - $ 2,676,747 $ 4,707,141 $ - $ 4,707,141 $ 12,914,236 $ - $ 12,914,236 Operating Income (Loss) $ 153,345 $ - $ 153,345 $ 174,601 $ - $ 174,601 $ (151,214) $ - $ (151,214) $ 81,714 $ - $ 81,714 $ 258,446 $ - $ 258,446 % of Sales 5.8% - 5.8% 6.0% - 6.0% -5.6% - -5.6% 1.7% - 1.7% 2.0% - 2.0%
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED RESULTS BY SEGMENT FISCAL YEAR 2019 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting were made: - The Victoria's Secret and Bath & Body Works International segment results are now reported in their respective brand segment. - The Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and certain other corporate functions that directly support a specific brand are now reported in their respective brand segment. May 4, 2019 August 3, 2019 November 2, 2019 February 1, 2020 Full Year February 1, 2020 Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted Bath & Body Works Comparable Store Sales 7% - 7% 4% - 4% 5% - 5% 5% - 5% 5% - 5% Comparable Sales 13% - 13% 8% - 8% 9% - 9% 10% - 10% 10% - 10% Net Sales $ 870,734 $ 48,262 $ 918,996 $ 1,060,864 $ 45,896 $ 1,106,760 $ 1,064,146 $ 34,815 $ 1,098,961 $ 2,174,750 $ 56,197 $ 2,230,947 $ 5,170,493 $ 185,172 $ 5,355,665 Operating Income (Loss) $ 154,851 $ 12,870 $ 167,721 $ 180,234 $ 3,334 $ 183,568 $ 195,579 $ 13,181 $ 208,760 $ 660,606 $ 3,120 $ 663,726 $ 1,191,270 $ 32,505 $ 1,223,775 % of Sales 17.8% 0.5% 18.3% 17.0% -0.4% 16.6% 18.4% 0.6% 19.0% 30.4% -0.6% 29.8% 23.0% -0.1% 22.9% Victoria's Secret Comparable Store Sales -7% -1% -8% -9% - -9% -8% -1% -9% -10% -1% -11% -9% - -9% Comparable Sales -5% - -5% -6% - -6% -7% -1% -8% -10% - -10% -7% -1% -8% Net Sales $ 1,510,852 $ 159,551 $ 1,670,403 $ 1,605,632 $ 179,060 $ 1,784,692 $ 1,412,215 $ 165,271 $ 1,577,486 $ 2,275,817 $ 200,377 $ 2,476,194 $ 6,804,516 $ 704,258 $ 7,508,774 Operating Income (Loss) $ 32,720 $ (753) $ 31,967 $ 16,565 $ 18,811 $ 35,376 $ (81,072) $ 11,067 $ (70,005) $ 146,435 $ 47,178 $ 193,613 $ 114,649 $ 76,302 $ 190,951 % of Sales 2.2% -0.3% 1.9% 1.0% 1.0% 2.0% -5.7% 1.3% -4.4% 6.4% 1.4% 7.8% 1.7% 0.8% 2.5% Victoria's Secret and Bath & Body Works International Comparable Store Sales -10% 10% - -13% 13% - -19% 19% - -18% 18% - -16% 16% - Comparable Sales -5% 5% - -8% 8% - -18% 18% - -18% 18% - -13% 13% - Net Sales $ 134,955 $ (134,955) $ - $ 154,561 $ (154,561) $ - $ 133,349 $ (133,349) $ - $ 177,102 $ (177,102) $ - $ 599,967 $ (599,967) $ - Operating Income (Loss) $ (4,011) $ 4,011 $ - $ (1,280) $ 1,280 $ - $ (8,653) $ 8,653 $ - $ 20,114 $ (20,114) $ - $ 6,172 $ (6,172) $ - % of Sales -3.0% -3.0% - -0.8% -0.8% - -6.5% -6.5% - 11.4% 11.4% - 1.0% 1.0% - Other Comparable Store Sales - - - - - - - - - - - - - - - Comparable Sales - - - - - - - - - - - - - - - Net Sales $ 112,268 $ (72,857) $ 39,411 $ 80,481 $ (70,395) $ 10,086 $ 67,037 $ (66,737) $ 300 $ 79,472 $ (79,472) $ - $ 339,259 $ (289,462) $ 49,797 Operating Income (Loss) $ (30,216) $ (16,125) $ (46,341) $ (20,919) $ (23,424) $ (44,343) $ (9,537) $ (32,899) $ (42,436) $ (20,481) $ (30,185) $ (50,666) $ (81,153) $ (102,634) $ (183,787) % of Sales -26.9% -90.7% -117.6% -26.0% -413.7% -439.7% -14.2% -14131.1% -14145.3% -25.8% 25.8% 0.0% -23.9% -345.2% -369.1% Total L Brands Comparable Store Sales -3% - -3% -4% - -4% -3% - -3% -4% - -4% -3% - -3% Comparable Sales 0% - 0% -1% - -1% -2% - -2% -2% - -2% -1% - -1% Net Sales $ 2,628,809 $ - $ 2,628,809 $ 2,901,538 $ - $ 2,901,538 $ 2,676,747 $ - $ 2,676,747 $ 4,707,141 $ - $ 4,707,141 $ 12,914,236 $ - $ 12,914,236 Operating Income (Loss) $ 153,345 $ - $ 153,345 $ 174,601 $ - $ 174,601 $ 96,318 $ - $ 96,318 $ 806,674 $ - $ 806,674 $ 1,230,939 $ - $ 1,230,939 % of Sales 5.8% - 5.8% 6.0% - 6.0% 3.6% - 3.6% 17.1% - 17.1% 9.5% - 9.5%
L BRANDS, INC. AND SUBSIDIARIES RESULTS BY SEGMENT FISCAL YEAR 2018 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting were made: - The Victoria's Secret and Bath & Body Works International segment results are now reported in their respective brand segment. - The Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and certain other corporate functions that directly support a specific brand are now reported in their respective brand segment. May 5, 2018 August 4, 2018 November 3, 2018 February 2, 2019 Full Year February 2, 2019 As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted Bath & Body Works Comparable Store Sales 5% - 5% 7% - 7% 10% - 10% 8% - 8% 8% - 8% Comparable Sales 8% - 8% 10% - 10% 13% - 13% 12% - 12% 11% - 11% Net Sales $ 760,434 $ 27,582 $ 788,016 $ 963,586 $ 38,235 $ 1,001,821 $ 956,202 $ 34,357 $ 990,559 $ 1,950,798 $ 44,337 $ 1,995,135 $ 4,631,020 $ 144,512 $ 4,775,532 Operating Income (Loss) $ 123,660 $ 5,691 $ 129,351 $ 168,766 $ 3,787 $ 172,553 $ 177,845 $ 13,082 $ 190,927 $ 607,183 $ 3,070 $ 610,253 $ 1,077,454 $ 25,632 $ 1,103,086 % of Sales 16.3% 0.1% 16.4% 17.5% -0.3% 17.2% 18.6% 0.7% 19.3% 31.1% -0.5% 30.6% 23.3% -0.2% 23.1% Victoria's Secret Comparable Store Sales -5% - -5% -5% - -5% -6% - -6% -7% - -7% -6% - -6% Comparable Sales 1% -1% 0% -1% - -1% -2% 1% -1% -3% - -3% -2% - -2% Net Sales $ 1,589,427 $ 169,825 $ 1,759,252 $ 1,724,803 $ 172,876 $ 1,897,679 $ 1,528,799 $ 166,907 $ 1,695,706 $ 2,531,836 $ 218,285 $ 2,750,121 $ 7,374,864 $ 727,894 $ 8,102,758 Operating Income (Loss) $ 83,170 $ 6,736 $ 89,906 $ 114,250 $ 8,450 $ 122,700 $ (35,872) $ (19,855) $ (55,727) $ 300,739 $ 60,164 $ 360,903 $ 462,288 $ 55,495 $ 517,783 % of Sales 5.2% -0.1% 5.1% 6.6% -0.1% 6.5% -2.3% -1.0% -3.3% 11.9% 1.2% 13.1% 6.3% 0.1% 6.4% Victoria's Secret and Bath & Body Works International Comparable Store Sales -20% 20% - -14% 14% - -10% 10% - -9% 9% - -13% 13% - Comparable Sales -6% 6% - 2% -2% - -1% 1% - 0% - - -1% 1% - Net Sales $ 135,117 $ (135,117) $ - $ 145,489 $ (145,489) $ - $ 134,004 $ (134,004) $ - $ 190,673 $ (190,673) $ - $ 605,284 $ (605,284) $ - Operating Income (Loss) $ (4,803) $ 4,803 $ - $ (9,392) $ 9,392 $ - $ (41,806) $ 41,806 $ - $ 18,666 $ (18,666) $ - $ (37,335) $ 37,335 $ - % of Sales -3.6% 3.6% - -6.5% 6.5% - -31.2% 31.2% - 9.8% -9.8% - -6.2% 6.2% - Other Comparable Store Sales -1% - -1% -2% - -2% 5% - 5% 8% - 8% 3% - 3% Comparable Sales 3% - 3% 1% - 1% 10% - 10% 13% - 13% 7% - 7% Net Sales $ 140,868 $ (62,291) $ 78,577 $ 149,972 $ (65,623) $ 84,349 $ 155,868 $ (67,259) $ 88,609 $ 179,003 $ (71,949) $ 107,054 $ 625,710 $ (267,121) $ 358,589 Operating Income (Loss) $ (47,220) $ (17,232) $ (64,452) $ (45,488) $ (21,628) $ (67,116) $ (45,772) $ (35,033) $ (80,805) $ (127,141) $ (44,565) $ (171,706) $ (265,620) $ (118,462) $ (384,082) % of Sales -33.5% -48.5% -82.0% -30.3% -49.3% -79.6% -29.4% -61.8% -91.2% -71.0% -89.4% -160.4% -42.5% -64.6% -107.1% Total L Brands Comparable Store Sales -2% - -2% -1% - -1% 0% - 0% -1% - -1% -1% - -1% Comparable Sales 3% - 3% 3% - 3% 4% - 4% 3% - 3% 3% - 3% Net Sales $ 2,625,846 $ - $ 2,625,846 $ 2,983,849 $ - $ 2,983,849 $ 2,774,874 $ - $ 2,774,874 $ 4,852,309 $ - $ 4,852,309 $ 13,236,878 $ - $ 13,236,878 Operating Income (Loss) $ 154,807 $ - $ 154,807 $ 228,137 $ - $ 228,137 $ 54,396 $ - $ 54,396 $ 799,448 $ - $ 799,448 $ 1,236,787 $ - $ 1,236,787 % of Sales 5.9% - 5.9% 7.6% - 7.6% 2.0% - 2.0% 16.5% - 16.5% 9.3% - 9.3%
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED RESULTS BY SEGMENT FISCAL YEAR 2018 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting were made: - The Victoria's Secret and Bath & Body Works International segment results are now reported in their respective brand segment. - The Victoria's Secret and Bath & Body Works sourcing and production functions (formerly known as Mast Global) and certain other corporate functions that directly support a specific brand are now reported in their respective brand segment. May 5, 2018 August 4, 2018 November 3, 2018 February 2, 2019 Full Year February 2, 2019 Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted Bath & Body Works Comparable Store Sales 5% - 5% 7% - 7% 10% - 10% 8% - 8% 8% - 8% Comparable Sales 8% - 8% 10% - 10% 13% - 13% 12% - 12% 11% - 11% Net Sales $ 760,434 $ 27,582 $ 788,016 $ 963,586 $ 38,235 $ 1,001,821 $ 956,202 $ 34,357 $ 990,559 $ 1,950,798 $ 44,337 $ 1,995,135 $ 4,631,020 $ 144,512 $ 4,775,532 Operating Income (Loss) $ 123,660 $ 5,691 $ 129,351 $ 168,766 $ 3,787 $ 172,553 $ 177,845 $ 13,082 $ 190,927 $ 607,183 $ 3,070 $ 610,253 $ 1,077,454 $ 25,632 $ 1,103,086 % of Sales 16.3% 0.1% 16.4% 17.5% -0.3% 17.2% 18.6% 0.7% 19.3% 31.1% -0.5% 30.6% 23.3% -0.2% 23.1% Victoria's Secret Comparable Store Sales -5% - -5% -5% - -5% -6% - -6% -7% - -7% -6% - -6% Comparable Sales 1% -1% 0% -1% - -1% -2% 1% -1% -3% - -3% -2% - -2% Net Sales $ 1,589,427 $ 169,825 $ 1,759,252 $ 1,724,803 $ 172,876 $ 1,897,679 $ 1,528,799 $ 166,907 $ 1,695,706 $ 2,531,836 $ 218,285 $ 2,750,121 $ 7,374,864 $ 727,894 $ 8,102,758 Operating Income (Loss) $ 83,170 $ 6,736 $ 89,906 $ 114,250 $ 8,450 $ 122,700 $ 14,248 $ 10,903 $ 25,151 $ 300,739 $ 60,164 $ 360,903 $ 512,408 $ 86,253 $ 598,661 % of Sales 5.2% -0.1% 5.1% 6.6% -0.1% 6.5% 0.9% 0.6% 1.5% 11.9% 1.2% 13.1% 6.9% 0.5% 7.4% Victoria's Secret and Bath & Body Works International Comparable Store Sales -20% 20% - -14% 14% - -10% 10% - -9% 9% - -13% 13% - Comparable Sales -6% 6% - 2% -2% - -1% 1% - 0% - - -1% 1% - Net Sales $ 135,117 $ (135,117) $ - $ 145,489 $ (145,489) $ - $ 134,004 $ (134,004) $ - $ 190,673 $ (190,673) $ - $ 605,284 $ (605,284) $ - Operating Income (Loss) $ (4,803) $ 4,803 $ - $ (9,392) $ 9,392 $ - $ (11,048) $ 11,048 $ - $ 18,666 $ (18,666) $ - $ (6,577) $ 6,577 $ - % of Sales -3.6% 3.6% - -6.5% 6.5% - -8.2% 8.2% - 9.8% -9.8% - -1.1% 1.1% - Other Comparable Store Sales -1% - -1% -2% - -2% 5% - 5% 8% - 8% 3% - 3% Comparable Sales 3% - 3% 1% - 1% 10% - 10% 13% - 13% 7% - 7% Net Sales $ 140,868 $ (62,291) $ 78,577 $ 149,972 $ (65,623) $ 84,349 $ 155,868 $ (67,259) $ 88,609 $ 179,003 $ (71,949) $ 107,054 $ 625,710 $ (267,121) $ 358,589 Operating Income (Loss) $ (47,220) $ (17,232) $ (64,452) $ (45,488) $ (21,628) $ (67,116) $ (25,462) $ (35,033) $ (60,495) $ (27,899) $ (44,565) $ (72,464) $ (146,068) $ (118,462) $ (264,530) % of Sales -33.5% -48.5% -82.0% -30.3% -49.3% -79.6% -16.3% -52.0% -68.3% -15.6% -52.1% -67.7% -23.3% -50.5% -73.8% Total L Brands Comparable Store Sales -2% - -2% -1% - -1% 0% - 0% -1% - -1% -1% - -1% Comparable Sales 3% - 3% 3% - 3% 4% - 4% 3% - 3% 3% - 3% Net Sales $ 2,625,846 $ - $ 2,625,846 $ 2,983,849 $ - $ 2,983,849 $ 2,774,874 $ - $ 2,774,874 $ 4,852,309 $ - $ 4,852,309 $ 13,236,878 $ - $ 13,236,878 Operating Income (Loss) $ 154,807 $ - $ 154,807 $ 228,137 $ - $ 228,137 $ 155,584 $ - $ 155,584 $ 898,689 $ - $ 898,689 $ 1,437,217 $ - $ 1,437,217 % of Sales 5.9% - 5.9% 7.6% - 7.6% 5.6% - 5.6% 18.5% - 18.5% 10.9% - 10.9%