v3.26.1
Segment Reporting (Tables)
 6 Months Ended
Aug. 01, 2026
Segment Reporting [Abstract]  
Segment Reporting
The following table presents information for segment profit and significant expenses:
13 Weeks Ended26 Weeks Ended
($ in millions)August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Net sales$3,651 $3,725 $7,148 $7,188 
Cost of goods sold (1)1,245 1,725 2,850 3,279 
Occupancy expenses (2)477 464 952 925 
Operating expenses (3)1,253 1,244 2,225 2,432 
Operating income
$676 $292 $1,121 $552 
__________
(1)For the 13 and 26 weeks ended August 1, 2026, cost of goods sold includes approximately $417 million of net IEEPA tariff recoveries, consisting of approximately $512 million of tariff refunds, partially offset by a commitment of appreciation of approximately $95 million for certain vendors.
(2)Occupancy expenses include lease and other occupancy related cost, depreciation, and amortization related to our store operations, distribution centers, information technology, and certain corporate functions.
(3)Operating expenses primarily include payroll and benefits expenses, advertising expenses, information technology expenses and maintenance costs, and other administrative expenses. For the 26 weeks ended August 1, 2026, operating expenses include a gain of $313 million related to a credit card interchange fee litigation settlement, net of legal fees, and a $50 million charitable contribution made concurrently.