==========    ========== 
Net Loss Per Diluted Share Attributable 
 to Victoria's Secret & Co.               $     (0.36)  $     (0.93) 
                                           ==========    ========== 
Weighted Average Shares Outstanding (1)        78,335        77,627 
                                           ==========    ========== 
 
(1) - Reported Weighted Average Shares Outstanding 
 in 2024 and 2023 reflect basic shares due to the Net 
 Loss. 
 
 
                       VICTORIA'S SECRET & CO. 
                    NON-GAAP FINANCIAL INFORMATION 
                             (Unaudited) 
               (In thousands, except per share amounts) 
In addition to our results provided in accordance 
 with GAAP, provided below are non-GAAP financial measures 
 that present operating income (loss), net income (loss) 
 attributable to Victoria's Secret & Co. and net income 
 (loss) per diluted share attributable to Victoria's 
 Secret & Co. on an adjusted basis, which remove certain 
 non-recurring, infrequent or unusual items that we 
 believe are not indicative of the results of our ongoing 
 operations due to their size and nature. The intangible 
 asset amortization excluded from these non-GAAP financial 
 measures is excluded because the amortization, unlike 
 the related revenue, is not affected by operations 
 of any particular period unless an intangible asset 
 becomes impaired or the estimated useful life of an 
 intangible asset is revised. We use adjusted financial 
 information as key performance measures of our results 
 of operations for the purpose of evaluating performance 
 internally. These non-GAAP measurements 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 definition of non-GAAP financial measures may 
 differ from similarly titled measures used by other 
 companies. The table below reconciles the most directly 
 comparable GAAP financial measure to each non-GAAP 
 financial measure. 
                            Third Quarter            Year-to-Date 
                       -----------------------  ---------------------- 
                         2024       2023          2024       2023 
Reconciliation of 
Reported to Adjusted 
Operating Income 
(Loss) 
--------------------- 
Reported Operating 
 Income (Loss) - 
 GAAP                  $(46,676)  $(67,120)     $ 41,916   $(12,800) 
Adore Me 
 Acquisition-related 
 Items (a)                 (186)       574           524     26,261 
Amortization of 
 Intangible Assets 
 (b)                      6,284      6,284        18,852     18,852 
Restructuring Charges 
 (c)                     12,548          -        12,548     11,125 
Adjusted Operating 
 Income (Loss)         $(28,030)  $(60,262)     $ 73,840   $ 43,438 
                        =======    =======       =======    ======= 
 
Reconciliation of Reported to Adjusted Net 
Income (Loss) Attributable to Victoria's 
Secret & Co. 
---------------------------------------------- 
Reported Net Loss 
 Attributable to 
 Victoria's Secret & 
 Co. - GAAP            $(56,227)  $(71,184)     $(28,067)  $(71,887) 
Adore Me 
 Acquisition-related 
 Items (a)                1,400      1,669         4,300     29,546 
Amortization of 
 Intangible Assets 
 (b)                      6,284      6,284        18,852     18,852 
Restructuring Charges 
 (c)                     12,548          -        12,548     11,125 
Tax Effect of 
 Adjusted Items          (3,473)    (3,029)       (6,533)   (13,134) 
Adjusted Net Income 
 (Loss) Attributable 
 to Victoria's Secret 
 & Co.                 $(39,468)  $(66,260)     $  1,100   $(25,498) 
                        =======    =======       =======    ======= 
Reconciliation of Reported to Adjusted Net Income 
 (Loss) Per Diluted Share Attributable to Victoria's 
 Secret & Co. 
--------------------------------------------------------- 
Reported Net Loss Per 
 Diluted Share 
 Attributable to 
 Victoria's Secret & 
 Co. - GAAP            $  (0.71)  $  (0.92)     $  (0.36)  $  (0.93) 
Adore Me 
 Acquisition-related 
 Items (a)                 0.02          -          0.06       0.31 
Amortization of 
 Intangible Assets 
 (b)                       0.06       0.06          0.17       0.18 
Restructuring Charges 
 (c)                       0.13          -          0.13       0.11 
Adjusted Net Income 
 (Loss) Per Diluted 
 Share Attributable 
 to Victoria's Secret 
 & Co.                 $  (0.50)  $  (0.86)     $   0.01   $  (0.33) 
                        =======    =======       =======    ======= 
 
(a)                   In the third quarter of 2024 and 2023, we 
                       recognized pre-tax expense of $1.4 million and 
                       $1.7 million (expense of $1.5 million and $0.3 
                       million net of tax benefit of $0.1 million and 
                       tax expense of $1.4 million, respectively) 
                       related to the financial impact of purchase 
                       accounting items related to the acquisition of 
                       Adore Me. These items include income of $0.2 
                       million and $5.9 million, respectively, in 
                       general, administrative and store operating 
                       expense and interest expense of $1.6 million 
                       and $1.1 million, respectively. Additionally, 
                       expense of $6.5 million is in costs of goods 
                       sold in the third quarter of 2023. Year-to-date 
                       2024 and 2023, we recognized pre-tax expense of 
                       $4.3 million and $29.5 million ($4.6 million 
                       and $24.0 million net of tax benefit of $0.3 
                       million and tax expense of $5.5 million, 
                       respectively) related to the financial impact 
                       of purchase accounting items related to the 
                       acquisition of Adore Me. These items include 
                       expense of $0.5 million and $4.5 million, 
                       respectively, in general, administrative and 
                       store operating expense and interest expense of 
                       $3.8 million and $3.3 million, respectively. 
                       Additionally, expense of $21.7 million is in 
                       costs of goods sold year-to-date 2023. 
(b)                   In both the third quarter of 2024 and 2023, we 
                       recognized amortization expense of $6.3 million 
                       ($4.7 million net of tax expense of $1.6 
                       million) in general, administrative and store 
                       operating expense related to the acquisition of 
                       Adore Me. Year-to-date in both 2024 and 2023, 
                       we recognized amortization expense of $18.9 
                       million ($14.0 million net of tax expense of 
                       $4.9 million) in general, administrative and 
                       store operating expense related to the 
                       acquisition of Adore Me. 
(c)                   In the third quarter of 2024, we recognized a 
                       pre-tax charge of $12.5 million ($10.6 million 
                       net of tax expense of $1.9 million) in general, 
                       administrative and store operating expense 
                       related to the appointment of a new CEO and the 
                       elimination of two executive officer roles to 
                       streamline our executive leadership team. In 
                       the first quarter of 2023, we recognized a 
                       pre-tax charge of $11.1 million ($8.4 million 
                       net of tax expense of $2.7 million), $7.8 
                       million in general, administrative and store 
                       operating expense and $3.3 million in buying 
                       and occupancy expense, related to restructuring 
                       activities to reorganize and improve our 
                       organizational structure. 
 

(END) Dow Jones Newswires

December 05, 2024 16:15 ET (21:15 GMT)