Earnings (Loss) Per Share and Shareholders' Equity

3 Months Ended

May 02, 2026

Earnings Per Share [Abstract]

Earnings (Loss) Per Share and Shareholders' Equity

Net Income (Loss) Per Share and Shareholders’ Equity

Net Income (Loss) Per Share

Net income (loss) per basic share is computed based on the weighted-average number of common shares outstanding during the period. Net income (loss) per diluted share includes the weighted-average effect of dilutive restricted stock units, performance share units and options (collectively, “Dilutive Awards”) on the weighted-average shares outstanding.

The following table provides the weighted-average shares utilized for the calculation of basic and diluted net income (loss) per share for the first quarter of 2026 and 2025:

	First Quarter
	2026	2025
	(in millions)
Common Shares	81	79
Treasury Shares	—	—
Basic Shares	81	79
Effect of Dilutive Awards (a)	4	—
Diluted Shares	85	79
Anti-dilutive Awards (a)	—	6

 _______________

(a)For the first quarter of 2026, shares underlying certain restricted stock units, performance share units and options were excluded from the calculation of net income per diluted share because their inclusion would have been anti-dilutive. For the first quarter of 2025, shares underlying outstanding restricted stock units, performance share units and options were excluded from the calculation of net loss per diluted share as a result of the Company’s net loss for the period.

Shareholders’ Equity

March 2024 Share Repurchase Program

In March 2024, the Board of Directors of the Company (the “Board”) approved a share repurchase program (“March 2024 Share Repurchase Program”), authorizing the repurchase of up to $250 million of the Company’s common stock, subject to market conditions and other factors, through open market, accelerated share repurchase or privately negotiated transactions, including pursuant to one or more Rule 10b5-1 trading plans. The March 2024 Share Repurchase Program is open-ended in term and will continue until exhausted.

The Company repurchased the following shares of its common stock under the March 2024 Share Repurchase Program during the first quarter of 2026:

	Amount Authorized		Shares Repurchased	Amount Repurchased		Average Stock Price
	(in millions)		(in thousands)	(in millions)
March 2024 Share Repurchase Program	$	250	2,208	$	100	$	45.27

Shares repurchased under the March 2024 Share Repurchase Program were retired upon repurchase. As a result, in the first quarter of 2026 the Company retired 2.2 million shares repurchased under the March 2024 Share Repurchase Program, which resulted in reductions of less than $1 million in the par value of Common Stock, $9 million in Paid-in Capital and $91 million in Retained Earnings.

As of May 2, 2026, the Company was authorized to repurchase up to $150 million of the Company’s common stock under the March 2024 Share Repurchase Program.

Rights Plan

In May 2025, the Board approved the adoption of a limited-duration shareholder rights plan (“Rights Plan”) intended to protect the best interests of all Company shareholders. The Rights Plan had a one-year term and expired pursuant to its terms at the close of business on May 18, 2026.