Income Taxes (Tables)

12 Months Ended

Feb. 01, 2025

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The following table provides the components of the Company’s Provision for Income Taxes for 2024, 2023 and 2022:

	2024		2023		2022
	(in millions)
Current:
U.S. Federal	$	46	$	19	$	67
U.S. State	17		10		22
Non-U.S.	18		18		18
Total	81		47		107
Deferred:
U.S. Federal	(26)		(14)		(20)
U.S. State	(6)		(2)		(4)
Non-U.S.	3		—		(4)
Total	(29)		(16)		(28)
Provision for Income Taxes	$	52	$	31	$	79

Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate

The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2024, 2023 and 2022:

	2024		2023		2022
Federal Income Tax Rate	21.0	%	21.0	%	21.0	%
State Income Taxes, Net of Federal Income Tax Effect	3.1	%	3.1	%	3.9	%
Foreign Rate Differential	(4.4	%)	(9.1	%)	(3.4	%)
Share-based Compensation	1.7	%	1.1	%	(4.6	%)
U.S. Permanent Items	1.4	%	1.7	%	0.3	%
Adore Me Contingent Compensation	1.0	%	3.3	%	—	%
Impact of Non-U.S. Operations	0.6	%	1.4	%	1.8	%
Uncertain Tax Positions	(0.2	%)	0.7	%	0.2	%
Change in Valuation Allowance	(0.2	%)	(0.9	%)	(0.1	%)
Other Items, Net	(0.4	%)	(0.9	%)	(0.1	%)
Effective Tax Rate	23.6	%	21.4	%	19.0	%

Effect of Temporary Differences that Cause Deferred Income Taxes

The following table provides the effect of temporary differences that cause deferred income taxes as of February 1, 2025 and February 3, 2024. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year.

	February 1, 2025						February 3, 2024
	Assets		Liabilities		Total		Assets		Liabilities		Total
	(in millions)
Loss Carryforwards	$	120	$	—	$	120	$	130	$	—	$	130
Leases	443		(402)		41		359		(319)		40
Deferred Revenue	47		—		47		51		—		51
Accrued Expenses	37		—		37		35		—		35
Share-based Compensation	14		—		14		12		—		12
Trade Name and Other Intangibles	—		(91)		(91)		—		(97)		(97)
Property and Equipment	—		(42)		(42)		—		(57)		(57)
Other	31		(10)		21		26		(11)		15
Valuation Allowance	(136)		—		(136)		(146)		—		(146)
Total Deferred Income Taxes	$	556	$	(545)	$	11	$	467	$	(484)	$	(17)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state and non-U.S. tax jurisdictions for 2024, 2023 and 2022, without interest and penalties:

	2024		2023		2022
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	38	$	31	$	10
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity	9		9		10
Increases to Unrecognized Tax Benefits for Prior Years, Including Acquisitions	—		13		11
Decreases to Unrecognized Tax Benefits for Prior Years	(4)		(15)		—
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	43	$	38	$	31