v3.25.1
Note 3 - Segment Information - Sales and Division Operating Results for Reportable Segments (Details) - USD ($)
$ in Millions
 3 Months Ended
May 03, 2025
May 04, 2024
Total revenue $ 1,794 $ 1,879
Cost of merchandise (1) [1] 1,037 1,086
Occupancy and buyers' compensation (2) [2] 243 249
Store employee wages (3) [3] 198 205
Marketing expenses (4) [4] 41 47
Technology expenses (5) [5] 67 70
Other division expenses, net (6) [6] 181 179
Division profit 27 43
Less: Impairment and other (7) [7] 276 14
Less: Corporate expense (8) [8] 22 11
(Loss) income from operations (271) 18
Interest expense, net (2) (1)
Other income (expense), net [9] 3 (4)
(Loss) income before income taxes (270) 13
Sales Revenue [Member]    
Total revenue 1,788 1,874
Product and Service, Other [Member]    
Total revenue $ 6 $ 5
[1] Cost of merchandise consists of inventory costs, freight, distribution costs including related depreciation expense, shipping and handling costs and is recorded net of amounts received from suppliers for damaged product returns, markdown allowances, and volume rebates.
[2] Occupancy and buyers' compensation consists of rent (including fixed common area maintenance charges and other fixed non-lease components), real estate taxes, general maintenance, and utilities, as well as buyers' compensation.
[3] Store employee wages consist of employee salary, overtime, vacation, short-term disability, benefits, bonus/awards and employer payroll taxes. Amount for 2023 does not include expenses incurred during the 53rd week.
[4] Marketing expenses consist of certain advertising expenses, which includes digital and search engine marketing, related professional fees, and other costs to promote our brands, net of reimbursements for cooperative advertising. Amount for 2023 does not include expenses incurred during the 53rd week.
[5] Technology expenses primarily represent software as a service, engineering and operations, infrastructure, professional fees, and other costs to operate our store, e-commerce, supply chain, and corporate functions. Technology expenses exclude costs incurred by the WSS and atmos banners. Amount for 2023 does not include expenses incurred during the 53rd week.
[6] Other division expenses, net represents all other division expenses that are not significant expenses or regularly presented to our CEO. These expenses include depreciation and amortization and other selling, general and administrative expenses, which primarily consist of corporate personnel, certain advertising costs, sales transaction fees, and other store and e-commerce expenses. The 2023 amount includes expenses related to the 53rd week that are not included in the above captions.
[7] See Note 4, Impairment and Other for additional information on these amounts.
[8] Corporate expense consists of unallocated selling, general and administrative expenses, as well as depreciation and amortization related to our corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses, and other items. The allocation of corporate expense to the operating divisions is adjusted annually based upon an internal study.
[9] See Note 5, Other Income (Expense), net for further detail.