Victoria's Secret & Co.VSCO

Victoria's Secret & Co. Leases Disclosure

10-KFiled Mar 20, 20262 min read
Leases
The following table provides the components of lease cost for operating leases for 2025, 2024 and 2023:
202520242023
(in millions)
Operating Lease Costs$414 $410 $393 
Variable Lease Costs102 90 92 
Short-term Lease Costs11 13 14 
Total Lease Cost$527 $513 $499 
The following table provides future maturities of operating lease liabilities as of January 31, 2026:
Fiscal Year(in millions)
2026$411 
2027357 
2028305 
2029268 
2030250 
Thereafter801 
Total Lease Payments$2,392 
Less: Interest(521)
Present Value of Operating Lease Liabilities$1,871 
As of January 31, 2026, the Company had additional operating lease commitments that have not yet commenced of approximately $59 million.
The following table provides the weighted-average remaining lease term and discount rate for operating leases with lease liabilities as of January 31, 2026 and February 1, 2025:
January 31,
2026		February 1,
2025
Weighted-Average Remaining Lease Term (years)7.27.2
Weighted-Average Discount Rate6.8%6.8%
The Company paid $422 million in 2025, $416 million in 2024 and $406 million in 2023 for operating lease liabilities recorded on the Consolidated Balance Sheets. These payments are included within the Operating Activities section of the Consolidated Statement of Cash Flows.
In 2025, 2024 and 2023, the Company obtained $434 million, $437 million and $392 million, respectively, of additional lease assets as a result of new operating lease obligations.
Asset Retirement Obligations
The Company has asset retirement obligations primarily related to certain China joint venture-operated international stores that contractually obligate the Company to remove leasehold improvements at the end of a lease. The Company’s liabilities for asset retirement obligations totaled $12 million as of January 31, 2026 and $9 million as of February 1, 2025. These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets.

Historical Timeline

Fiscal YearFiled
2026Mar 20, 2026Showing above
2025Mar 21, 2025
2024Mar 22, 2024
2023Mar 17, 2023
2022Mar 18, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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