Fair Value of Financial Instruments (Tables)

9 Months Ended

Nov. 01, 2025

Schedule of Fair Value of Financial Instruments

The following table provides a summary of the principal value and estimated fair value of the Company’s outstanding debt as of November 1, 2025, February 1, 2025 and November 2, 2024:


	November 1, 2025		February 1, 2025		November 2, 2024
	(in millions)
Principal Value	$	984	$	987	$	988
Fair Value, Estimated (a)	960		940		916

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(a)The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC 820, Fair Value Measurement. The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange.

Fair Value, Liabilities Measured on Recurring Basis

The following table provides a summary of the Company’s contingent consideration recognized at fair value related to the Adore Me acquisition as of November 1, 2025, February 1, 2025, November 2, 2024 and February 3, 2024 (in millions):


Balance Sheet Location	Measurement Level	November 1, 2025		February 1, 2025		November 2, 2024		February 3, 2024
Accrued Expenses and Other	Level 3	$	4	$	—	$	64	$	74
Other Long-term Liabilities	Level 3	—		—		—		18

Prior to February 1, 2025, the estimated fair value of the contingent consideration was valued using a Scenario-Based method and a Monte Carlo simulation which utilize inputs including discount rates, estimated probability of achievement of certain milestones, forecasted revenues, forecasted EBITDA and volatility rates. These are considered Level 3 inputs in accordance with ASC 820, Fair Value Measurement. Changes in the fair value of the contingent consideration are recorded within General, Administrative and Store Operating Expenses in the Consolidated Statements of Loss. For additional information regarding the contingent consideration, see Note 2, “Acquisition.”