v3.26.1
Segment Reporting (Tables)
 3 Months Ended
May 02, 2026
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information
The following table illustrates significant segment expenses that were regularly provided to the CODM for the first quarters of 2026 and 2025:
First Quarter
20262025
 (in millions)
Net Sales$1,378 $1,424 
Adjusted Cost of Goods Sold(521)(509)
Buying and Occupancy(269)(269)
Adjusted Selling Expenses (256)(256)
Adjusted Marketing Expenses (51)(49)
Adjusted General and Administrative Expenses(130)(132)
Adjusted Operating Income151 209 
Interchange Fee Settlements (a)88 — 
Business Transformation Activities (b)(8)— 
Reported Operating Income$231 $209 
 ________________
(a)In the first quarter of 2026, the Company received $88 million, net of legal fees, related to favorable settlements of payment card interchange fee litigation. The gain was recognized as a reduction to Selling Expenses and was excluded from the Adjusted Operating Income details provided to the CODM.
(b)In the first quarter of 2026, the Company recognized aggregate pre-tax costs of $8 million, resulting from business transformation activities in connection with the Consumer First Formula, of which $1 million, $2 million and $5 million, were excluded from the Cost of Goods Sold, Marketing Expenses and General and Administrative Expenses, respectively, in the Adjusted Operating Income details provided to the CODM.