========== ==========
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)