Stuart Burgdoerfer EVP & CFO
1
WHO WE ARE
50+ year history of creating, scaling and managing the lifecycle of successful specialty retail concepts
Operating under 3 global brands, in categories with high emotional content: – Victoria's Secret – PINK – Bath & Body Works
Long track record of successfully weathering macro-economic challenges and evolving our brands and portfolio of businesses
Committed to meeting the needs of our customers, associates and communities, while delivering value to shareholders 3 WHERE WE ARE
SHAREHOLDER RETURNS FOR SELECT RETAILERS 1-year Total Return 3-year Total Return 5-year Total Return 10-year Total Return 1 H&M 61.0 1 Home Depot 22.0 1 Home Depot 22.2 1 Home Depot 26.7 2 Target 26.9 2 Best Buy 21.0 2 Best Buy 18.6 2 TJX 21.5 Median of 3 Fast Retailing 22.0 Median of 3 Fast Retailing 20.7 Median of 3 Target 16.1 Median of 3 Fast Retailing 20.1 quartile: 4 Wal-Mart Stores 21.4 quartile: 4 Wal-Mart Stores 19.9 quartile: 4 Fast Retailing 14.9 quartile: 4 Inditex 16.1 21.7% 5 Home Depot 16.7 20.3% 5 Target 19.3 15.5% 5 TJX 14.7 18.1% 5 Foot Locker 15.9 6 Inditex 10.4 6 TJX 14.2 6 Children's Place 11.6 6 Children's Place 11.9 7 TJX 3.0 7 Tiffany & C o. 8.0 7 Wal-Mart Stores 11.4 7 Target 11.7 8 Buckle (13.6) 8 Children's Place 3.2 8 Inditex 6.9 8 Wal-Mart Stores 11.2 Median of 9 Best Buy (16.1) Median of 9 Buckle 0.9 Median of 9 American Eagle 6.9 Median of 9 Tiffany & Co. 11.0 quartile: 10 Walgreen Co. (22.3) quartile: 10 American Eagle (0.2) quartile: 10 Walgreen Co. (1.2) quartile: 10 Best Buy 8.8 (19.2%) 11 Foot Locker (23.7) 0.3% 11 Inditex (2.1) 2.8% 11 Tiffany & Co. (1.4) 9.9% 11 L Brands 8.2 12 Tiffany & Co. (29.5) 12 Abercrombie & Fitch (2.7) 12 H&M (4.9) 12 Giordano 7.4 13 American Eagle (29.5) 13 Ralph Lauren (3.4) 13 Giordano (5.4) 13 Walgreen Co. 6.5 14 Ralph Lauren (31.5) 14 H&M (6.3) 14 Foot Locker (6.4) 14 American Eagle 6.4 Median of 15 Abercrombie & Fitch (32.5) Median of 15 Giordano (10.8) Median of 15 Coach (7.7) Median of 15 Buckle 5.7 quartile: 16 L Brands (33.9) quartile: 16 Gap (11.3) quartile: 16 Buckle (8.8) quartile: 16 Ralph Lauren 4.3 (33.2%) 17 Children's Place (36.3) (11.1%) 17 Walgreen Co. (12.0) (8.3%) 17 Ralph Lauren (10.5) 5.0% 17 H&M 3.6 18 Giordano (39.3) 18 Foot Locker (15.9) 18 Abercrombie & Fitch (15.6) 18 Gap 0.5 19 Esprit Holdings (40.1) 19 Coach (16.1) 19 Gap (16.5) 19 Coach (0.5) 20 Bed Bath & Beyond (42.6) 20 Chico's (31.9) 20 L Brands (19.5) 20 Abercrombie & Fitch (4.9) Median of 21 Gap (45.5) Median of 21 Li & Fung (33.4) Median of 21 Chico's (25.1) Median of 21 Chico's (11.0) quartile: 22 Coach (57.7) quartile: 22 L Brands (36.5) quartile: 22 Bed Bath & Bey ond (30.3) quartile: 22 Bed Bath & Bey ond (11.6) (57.7%) 23 Li & Fung (58.5) (36.5%) 23 Bed Bath & Bey ond (38.8) (30.3%) 23 Li & Fung (32.9) (11.6%) 23 Li & Fung (17.6) 24 Chico's (60.8) 24 Esprit Holdings (44.0) 24 Esprit Holdings (37.6) 24 Esprit Holdings (29.4) 25 Ascena Retail Group (94.5) 25 Ascena Retail Group (68.5) 25 Ascena Retail Group (57.2) 25 Ascena Retail Group (29.4)
Note: Total shareholder return data is current as of 8/30/2019; LB stock price closed at $16.51 4 WHERE WE ARE
Over the last 5 years, enterprise sales growth has been driven by Bath & Body Works, while sales at the Victoria’s Secret segment grew slightly
Revenue % $USD Billions 2014 2018 Inc/(Dec)
Total L Brands $11.5 $13.2 16%
Victoria's Secret Lingerie (Go-Forward) $3.2 $3.3 4% PINK $2.1 $2.8 32% Victoria's Secret Beauty $1.0 $1.1 9% Category Exits* $0.9 $0.1 nm Victoria's Secret $7.2 $7.4 2%
Bath & Body Works $3.3 $4.6 38%
International $0.3 $0.6 81%
Note: Other Segment of L Brands not shown. *Victoria’s Secret category exits include apparel, swim and makeup 5 WHERE WE ARE
Over the last 5 years, enterprise sales and operating income growth has been driven by Bath & Body Works. While sales at the Victoria’s Secret segment grew slightly, operating income has declined substantially.
Sales Operating Income
$14.0 $13.2 $1.3
$13.0
$2.0 $0.8 $12.0 $0.7 $11.5 $0.7 $0.3 $0.1 $1.4 $11.0 $0.1 $0.1 $0.3 $0.1
$USD in Billions $10.0 $USD in Billions
$9.0
$8.0 2014 VS Category Other Victoria's Victoria's International PINK Bath & Body 2018 2014 Victoria's Secret International Bath & Body Works 2018 Exits* / Segment Secret Secret Works Other Beauty Lingerie*
Note: Operating Income are depicted on a Non-GAAP reported basis. *Victoria’s Secret Lingerie Sales exclude Category exits. Category exits include apparel, swim and makeup. 6 VICTORIA’S SECRET – LEADER IN THE INTIMATES MARKET
Victoria’s Secret has the largest share of the intimates market and maintains a large lead over the next closest competitor
Source: The NPD Group / Consumer Tracking Service 12ME Dec ’18/Women’s Apparel 7 VICTORIA’S SECRET – HIGH BRAND AWARENESS
Victoria’s Secret Social Media Followers (Millions) . Approximately $4 billion in global Lingerie retail sales 100 . More than 400 million store visits per year . Nearly 1 billion website visits per year – More than 68 million Instagram followers 80 – More than 29 million Facebook fans – More than 11 million Twitter followers
60 Victoria’s Secret PINK . Approximately $3 billion in global retail sales – 8 million Instagram followers 40 – 14.5 million Facebook fans – Approximately 13 million PINK Nation members 20 Victoria’s Secret Beauty . Approximately $1.5 billion in global retail sales 0 . 6 of the top 20 fragrances in the U.S. VS PINK Adore Me Aerie Third Love – Bombshell Twitter Facebook Instagram – Tease – Heavenly – Bombshell Seduction – Love – Very Sexy 8 $9,000 25%
WHERE WE ARE: VICTORIA’S SECRET SEGMENT 23% $8,000
21% $7,000 Net Sales & Operating Income ($M's)$7,781 VS Segment $7,672 $7,289 $7,375 $7,207 19% $6,000 $6,884 $6,652
$6,240 17%
$5,000 18.1% $5,576 17.5% 17.7% 17.6% 16.7% 15% $5,112 16.0% $4,888 $4,000 15.5%
13%
$3,000 12.4% 11.9% 11.8% 11%
$2,000 9%
$1,000 6.9% 7% $1,391 $1,271 $1,095 $1,176 $1,153 $1,206 $890 $‐ $906 5% 2008$607 2009$578 2010 2011 2012 2013 2014 2015 2016 2017 2018$512
Net Sales Operating Income Op. Inc % 9 Note: Sales and Operating Income are depicted on a Non-GAAP reported basis. 2012 and 2017 are based on 52 weeks WHERE WE ARE: VICTORIA’S SECRET SEGMENT
Victoria’s Secret Segment (includes PINK) Spring 2019 . Comps down 6%; merchandise margin dollars down low- double digits; operating income down substantially
Fall 2019 . We are forecasting an improved trend in the business versus Spring, driven by a stronger merchandise assortment . Merchandise margin dollar decline forecasted to improve from down in the low-double digit range for Spring to down mid- to high-single digits in the third quarter and flat to down mid-single digits in the fourth quarter
10 FOCUSED FOR GROWTH: IMPROVING VS PERFORMANCE
. Our #1 priority . New leadership driving change . John Mehas – CEO Victoria’s Secret Lingerie . Amy Hauk – CEO PINK . We are: . Repositioning product assortment and marketing . Rebalancing inventory breadth and depth and pricing architecture . Evolving our promotional strategy . Elevating in-store experience . Continuing to invest in digital
11 BATH & BODY WORKS – LEADER IN THE MARKET
One of the largest specialty personal care and home fragrance brands in the world
– Nearly $5 billion in global retail sales – More than 350 million store visits per year – More than 300 million website visits per year – In 2018, Bath & Body Works had ~150 million transactions – 235 stores outside North America with strong customer response
#1 Brand in America for: – Three-wick candles – Electric fragrance diffuser for the home … Wallflower – Body moisturizer (lotion & body cream) – Fine fragrance mist – Men’s body moisturizer – Hand soap – Hand sanitizer
#1 Home Fragrance Retailer in America 12 WHERE WE ARE: BATH & BODY WORKS
13 Note: Sales and Operating Income are depicted on a Non-GAAP reported basis. 2012 and 2017 are based on 52 weeks WHERE WE ARE: BATH & BODY WORKS
Bath & Body Works
Spring 2019 . Comps up 10%; operating income up 15%
Fall 2019 . Lapping tougher comp and margin comparisons . On a one-year basis: a more moderate view of comps and merchandise margin dollar gains versus Spring . On a two-year basis: comp and merchandise margin dollar increases that are similar to the Spring result
14 FOCUSED FOR GROWTH: BATH & BODY WORKS
Beauty and Home are excellent categories with strong market growth
Growth opportunities in our core segments of fragrant body care, home fragrance and soaps, as well as emerging categories
Continued opportunity for White Barn store remodels, with strong returns
Continued investment in fulfillment capacity to support Direct business growth
Enhancing close connection to our customers
15 WHERE WE ARE: INTERNATIONAL
Franchise business is highly profitable; operating income decline driven by losses in the U.K. and China
2014 2018 2014 – 2018 CAGR
Total VS & BBW International Segment ($ US millions)
Store Count 394 753 18%
Retail Sales¹ $790 $1,507 18%
L Brands Recognized Revenue $336 $605 16%
Operating Income (Loss)² $78 ($7) NM
1Represents total retail sales from company-owned and partner-owned stores; partner-owned sales may be unaudited and/or non-GAAP. ²Operating Income results are non-GAAP. 16 FOCUSED FOR GROWTH: INTERNATIONAL
Franchise: • Excellent execution of our brands • Improvement opportunity for Victoria’s Secret driven by changes in domestic business • Continued opportunity for store and digital expansion Company-owned businesses: United Kingdom: • Significant erosion in VS UK business over the past three years • Performance is consistent with North American market and further compounded by challenges in UK economy • We are determined to get the UK to breakeven by focusing on the fundamentals China • Enormous potential still on the horizon • Having entered 19 markets and prototyped 7 formats, we’ve learned a lot • We will now rationalize our go-forward formats and focus on a path to profitability
Digital • We anticipate accelerated growth enabled by planned infrastructure upgrades: • Re-platforming our e-commerce site • Enabling European fulfillment
17 WHERE WE ARE: LARGE, PROFITABLE AND GROWING DIGITAL BUSINESS
Total L Brands: $2.5 Billion; 20+% Operating Income Rate We have made and will continue to make substantial investments in our digital businesses to support growth
Digital Sales (Go‐Forward) and Penetration 2014 ‐ 2018 $2,500 22.0%
20.0% $2,000 Penetration 18.0%
$1,500 16.0%
14.0% $1,000 12.0% Sales ($US) in Millions
$500 10.0% 2014 2015 2016 20171 2018
% Sales Growth 18% 29% 13% 18% 21%
1 Digital Sales Digital Penetration 2017 is based on 52 weeks. 18 WHERE WE ARE: STRONG CENTRALIZED CAPABILITIES
We have strong enterprise capabilities through Mast: . Make – Close relationships with suppliers – Speed sourcing . Move – Transportation and logistics . Enable – Technology
19 WHERE WE ARE: RECENT ACTIONS POSITION US FOR LONG-TERM SUCCESS
1. Appointed new talented leadership – John Mehas, CEO of Victoria’s Secret Lingerie – Amy Hauk, CEO of Victoria’s Secret PINK
2. Closed Henri Bendel
3. Sold La Senza
4. Significant investments in digital
5. Reduced regular dividend by half to normalize the payout and free up capital to reduce debt levels
6. Delivering growth and strong performance at Bath & Body Works
Focusing resources on core categories to enhance performance, accelerate growth and drive value
20 WHERE WE ARE: FINANCIAL OUTLOOK
Total L Brands Earnings Guidance Third Quarter . Comps down low-single digits to up slightly . Gross margin rate down to last year . SG&A rate up to last year . EPS ($0.05) to $0.05 August . Total company year-over-year merchandise margin $ decline similar to the second quarter result. Improvement in PINK merchandise margin $ decline somewhat offset by a deceleration in Lingerie. Bath & Body Works continued to post strong results. Fourth Quarter . Comps up 1% to 4% . Gross margin rate down to last year . SG&A rate about flat . EPS $1.95 to $2.15 21 WHERE WE’RE GOING: FOCUSED FOR GROWTH
1. Committed to improving performance at Victoria’s Secret Lingerie and Beauty, and PINK
2. Continuing to enhance Bath & Body Works merchandise and market positon
3. Continuing to invest in digital businesses
4. Expanding our core brands internationally
5. Focusing on customer engagement and optimizing the store experience
6. Actively managing our real estate portfolio
7. Increasing cash flow to deleverage and provide liquidity for capital allocation priorities
22 WE CONTINUE TO MANAGE THE BUSINESS WITH DISCIPLINE
. Increasing inventory turns
. Growing expenses slower than sales
. Actively managing real estate portfolio
. Committed to deleveraging
. Increasing cash flow
23 Note: 2017 based on is 52 weeks. INCREASING INVENTORY TURNS
Average dollar turn 0421 0621 2018 2017 2016 2015 2014 3.9 4.1 4.2 4.3 4.4 24 GROWING EXPENSES SLOWER THAN SALES
Expense growth in 2018 was driven by an incremental $100 million investment in increasing hourly wage rates
Sales & SG&A Expense Growth 12%
10%
8%
6%
4%
2%
0%
-2% 2014 2015 2016 2017 2018
Sales SG&A Expenses
Notes: – As a result of the adoption of the revenue recognition standard in 2018, income from the Victoria’s Secret private label credit card, which was historically presented as a reduction to expense, is now presented as revenue. 2014 through 2017 sales and expenses have been recast for this change in presentation. – 2017 is based on 52 weeks. 25 – Catalog expense has been adjusted to be within marketing expense (SG&A) instead of B&O expense where it is reported externally. ACTIVELY MANAGING REAL ESTATE
1. Performance based investment – we adjust investment levels based on performance
2. High sales per foot productivity
3. Strong financial profile – Project IRR’s of ~20% – 99% of stores are cash flow positive
4. Diverse real estate portfolio across venue tiers and types
5. Minimal exposure to vulnerable venues due to strong lease termination rights which provide flexibility
6. Actively managing the store fleet
26 PROFITABLE REAL ESTATE EXPOSURE
Disciplined Execution of Real Estate
. Profitability across all mall types in North America
. 33% of stores are not in malls
. Leases provide significant protection based on occupancy and co-tenancy provisions
. 25% in C malls with above fleet average profit rates and remaining average lease term of less than 3 years
. Minimal exposure in vulnerable venues due to strong lease termination rights which provide flexibility
27 CASH FLOW POSITIVE STORE FLEET
28 STRONG SALES PRODUCTIVITY
Victoria’s Secret Bath & Body Works
$891 $864 $836 $844 $815 $831 $835 $774 $757 $774
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Note: U.S. stores Sales per Selling Square Foot. 2017 is based on 52 weeks. 29 ACTIVELY MANAGING REAL ESTATE
Since 2008: . Opened 888 stores primarily in top tier and off-mall venues . Closed 765 stores primarily in lower tier venues and sold 130 stores in the La Senza fleet
Store Openings
Store Closures
30 ACTIVELY MANAGING REAL ESTATE
We are closing stores more aggressively at Victoria’s Secret, and investing in growth at Bath & Body Works, where we are earning strong returns North America SSF Growth (CAGR)
2013 - 2017 2018 2019F
Victoria’s Secret / PINK
Gross 5% 1% 0%
Net of closures 4% (1%) (3%)
Bath & Body Works
Gross 3% 5% 4%
Net of closures 2% 4% 3%
L Brands1
Gross 4% 2% 2%
Net of closures 3% (3%) (1%)
12018 excludes Henri Bendel and La Senza 31 ACTIVELY MANAGING REAL ESTATE
Victoria’s Secret / Pink North America
. Closed about 10-30 stores annually from 2015 to 2018 (fleet of ~1,200 stores)
. Accelerated store closures in 2019 to about 55 stores and projected to close 40-60 stores in 2020
. About 40% of sales transfer from closed stores to nearby centers and the digital business
. Overall market profitability improves following a store closure
32 PROFITABLE REAL ESTATE INVESTMENTS
Victoria’s Secret / PINK and Bath & Body Works real estate investments in the U.S. generate a profit rate of 18% and projected internal rates of return of 24%
Financial Returns1 Victoria’s Bath & Body L Brands Secret Works U.S.
Number of Stores 667 740 1,407 Projected Internal Rate of Return 18% 35% 24% Profit Rate 2 11% 30% 18%
1 As of year-end 2018. Includes store investments since 2012. 2 Calculated as Four-Wall Profit / Sales 33 REAL ESTATE MANAGEMENT DRIVING STRONG RETURNS
PERFORMANCEPERFORMANCE-BASED BASED
12018 ROIC of 13.8% uses the new lower tax rate of 26%. If we used previous years tax rate of 39%, the 2018 ROIC would be 11.2%. 34 COMMITTED TO DELEVERAGING
We are committed to deleveraging as demonstrated by:
. The reduction in our annual dividend by half, and the deployment of the savings toward debt repayment
. The active management of our maturity profile
– In June of 2018 we exchanged $300+ million of 2020 notes for a similar amount of 2027 notes
– In June and July of 2019 we issued $500 million of 2029 notes and used the proceeds and balance sheet cash to retire nearly $800 million in 2020 and 2021 notes
– In August of 2019 we extended the maturity of our $1 billion revolving credit to 2024
We expect additional deleveraging from improving business operating results 35 MANAGING MATURITY PROFILE
Maturities are well-spread out and recent debt issuance and utilization of cash refinanced near-term maturities and decreased total debt by close to $300 million ($ in millions)
$1.8 billion $1.3 billion $2.4 billion
Bonds Revolver MATURITY PROFILE PROVIDES FLEXIBILITY 36 CONTINUING TO GENERATE STRONG CASH FLOW
Recent steps taken to increase cash flow: . Substantially reduced capital expenditures . Closed Henri Bendel and sold La Senza . Reduced dividend
($ in millions) 2014 2015 2016 2017 2018 2019F (2)
Operating Cash Flow(1) $1,877 $2,027 $1,990 $1,406 $1,377 $1,300
Capital Expenditures ($715) ($727) ($990) ($707) ($629) ($550)
Free Cash Flow $1,162 $1,301 $1,000 $699 $748 $750
Regular Dividend ($399) ($587) ($683) ($686) ($666) ($335)
Retained Cash Flow $763 $714 $317 $13 $82 $415
(1)Restated to reflect the required change in presentation related to the new accounting standard for stock-based compensation adopted in 2017 (2)2019F reflects Mid-Range of August 22, 2019 earnings guidance ($2.45 EPS) 37 FOCUSED FOR GROWTH: FINANCIAL OUTLOOK
Long-term Goals Victoria’s Secret Segment . Stabilization and improvement with a longer-term goal of a 10-15% operating margin
Bath & Body Works . Consistent sales and operating income dollar growth in the mid- to high-single digit percent range, with an operating income rate in the low-20’s
International . Franchise financial profile very sound on an overall basis; significant opportunity to reduce operating losses in the U.K. and China
Total L Brands . Consistent growth in sales and operating income dollars in the mid-to high-single digit percent range; operating margin rate in the mid- to high-teens
38 39 APPENDIX
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
This presentation contains certain unaudited “Adjusted” financial information which represents non-GAAP financial measures. The adjusted financial information should not be construed as an alternative to the reported results determined in accordance with generally accepted accounting principles. Further, the Company’s definition of adjusted income information may differ from similarly titled measures used by other companies. While it is not possible to predict future results, management believes the adjusted information is useful for the assessment of the ongoing operations of the Company. The adjusted financial information should be read in conjunction with the Company’s historical financial statements and notes thereto contained in the Company’s quarterly reports on Form 10-Q and annual report on Form 10-K. The following pages contain reconciliations of certain reported results to the adjusted results used in this presentation.
40 APPENDIX
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
2018 (in millions except per share amounts)
Reported Adjustments Adjusted
Net Sales$ 13,237 $ - $ 13,237
Gross Profit 4,899 95 4,993
General, Administrative and Store Operating Expenses 3,563 (7) 3,556
Operating Income 1,237 200 1,437
Earnings Per Share 2.31 0.51 2.82
The "Adjustments" column includes the following: A $99.2 million ($55.1 million net of tax of $44.1 million) loss on the sale of La Senza to an affiliate of ˙ Regent LP. An $80.9 million charge ($72.7 million net of tax of $8.2 million), included in buying and occupancy ˙ expenses, related to the impairment of certain Victoria’s Secret store assets. $20.3 million ($15.0 million net of tax of $5.3 million) of Henri Bendel closure costs, included in buying and ˙ occupancy expenses ($13.8 million) and general, administrative and store operating expenses ($6.5 million). 41 APPENDIX
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
2017 (in millions except per share amounts)
Reported Adjustments Adjusted
Net Sales$ 12,632 $ - $ 12,632
Gross Profit 4,959 - 4,959
General, Administrative and Store Operating Expenses 3,231 - 3,231
Operating Income 1,728 - 1,728
Earnings Per Share 3.42 (0.22) 3.20
The "Adjustments" column includes the following: A $45.0 million pre-tax loss ($28.8 million net of tax of $16.2 million), included in other income (loss), ˙ associated with the early extinguishment of our June 2019 notes. ˙ A $92.2 million tax benefit related to changes in U.S. tax legislation. 42 APPENDIX
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
2016 (in millions except per share amounts)
Reported Adjustments Adjusted
Net Sales$ 12,574 $ - $ 12,574
Gross Profit 5,125 11 5,136
General, Administrative and Store Operating Expenses 3,122 (24) 3,099
Operating Income 2,003 35 2,037
Earnings Per Share 3.98 (0.23) 3.74
The "Adjustments" column includes the following: Pre-tax charges of $34.5 million ($21.4 million net of tax of $13.1 million) related to actions at Victoria’s ˙ Secret, including severance charges, fabric cancellations and the write-off of catalogue paper. A $108.3 million pre-tax gain ($70.2 million net of tax of $38.1 million), included in other income, related ˙ to a $124.4 million cash distribution from Easton Town Center. A $35.8 million pre-tax loss ($22.4 million net of tax of $13.4 million), included in other income, ˙ associated with the early extinguishment of our July 2017 notes. A $41.7 million tax benefit related to the favorable tax settlement of a discrete tax matter. ˙ 43 APPENDIX
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
2015 (in millions except per share amounts)
Reported Adjustments Adjusted
Net Sales$ 12,154 $ - $ 12,154
Gross Profit 5,204 - 5,204
General, Administrative and Store Operating Expenses 3,012 - 3,012
Operating Income 2,192 - 2,192
Earnings Per Share 4.22 (0.23) 3.99
The "Adjustments" column includes the following: A $78.1 million pre-tax gain ($69.0 million net of tax of $9.1 million) included in other income related to ˙ the sale of our remaining interest in the third-party apparel sourcing business.
44