Abercrombie & Fitch Co. | ||
(Exact name of registrant as specified in its charter) |
Delaware | 1-12107 | 31-1469076 | ||||||||||||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||||||||
6301 Fitch Path | New Albany | Ohio | 43054 | |||||||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant’s telephone number, including area code: | (614) | 283-6500 |
Not Applicable | ||
(Former name or former address, if changed since last report) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A Common Stock, $0.01 Par Value | ANF | New York Stock Exchange |
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
99.4 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Abercrombie & Fitch Co. | |||||||||||
Dated: May 30, 2024 |
By: | /s/ Scott D. Lipesky | |||||||||
Scott D. Lipesky | |||||||||||
Executive Vice President, Chief Financial Officer and Chief Operating Officer |
2024 | 2023 | |||||||||||||
GAAP | $ | 2.14 | $ | 0.32 | ||||||||||
Excluded items, net of tax effect (1) |
— | (0.06) | ||||||||||||
Adjusted non-GAAP | $ | 2.14 | $ | 0.39 | ||||||||||
Impact from changes in foreign currency exchange rates (2) |
— | — | ||||||||||||
Adjusted non-GAAP constant currency | $ | 2.14 | $ | 0.39 |
Net Sales |
(in thousands) | 2024 | 2023 | 1 YR % Change | Comparable sales (2) |
|||||||||||||||||||
Net sales by segment: (1) |
|||||||||||||||||||||||
Americas (3) |
$ | 820,121 | $ | 665,423 | 23% | 21% | |||||||||||||||||
EMEA (4) |
164,778 | 138,106 | 19% | 23% | |||||||||||||||||||
APAC (5) |
35,831 | 32,465 | 10% | 22% | |||||||||||||||||||
Total company | $ | 1,020,730 | $ | 835,994 | 22% | 21% | |||||||||||||||||
2024 | 2023 | 1 YR % Change | Comparable sales (2) |
||||||||||||||||||||
Net sales by brand: | |||||||||||||||||||||||
Abercrombie (6) |
571,513 | 436,044 | 31% | 29% | |||||||||||||||||||
Hollister (7) |
$ | 449,217 | $ | 399,950 | 12% | 13% | |||||||||||||||||
Total company | $ | 1,020,730 | $ | 835,994 | 22% | 21% |
Financial Position and Liquidity |
Cash Flow and Capital Allocation |
Fiscal 2024 Full Year Outlook |
Q1 |
Q2 | Q3 | Q4 | Fiscal 2024 |
|||||||||||||
Net sales impact (in millions) |
$+10M | $+30M | $-10M | $-80M | $-50M | ||||||||||||
Basis point impact |
+120 bps | +320 bps | -90 bps | -550 bps | -120 bps |
Fiscal 2024 Second Quarter Outlook |
Conference Call |
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 |
Other Information |
About Abercrombie & Fitch Co. |
Investor Contact: | Media Contact: | |||||||
Mo Gupta | Kate Wagner | |||||||
Abercrombie & Fitch Co. | Abercrombie & Fitch Co. | |||||||
(614) 283-6751 | (614) 283-6192 | |||||||
Investor_Relations@anfcorp.com | Public_Relations@anfcorp.com |
Abercrombie & Fitch Co. | |||||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Thirteen Weeks Ended | Thirteen Weeks Ended | ||||||||||||||||||||||
May 4, 2024 | % of Net Sales |
April 29, 2023 | % of Net Sales |
||||||||||||||||||||
Net sales | $ | 1,020,730 | 100.0 | % | $ | 835,994 | 100.0 | % | |||||||||||||||
Cost of sales, exclusive of depreciation and amortization | 343,273 | 33.6 | % | 326,200 | 39.0 | % | |||||||||||||||||
Gross profit | 677,457 | 66.4 | % | 509,794 | 61.0 | % | |||||||||||||||||
Stores and distribution expense | 371,686 | 36.4 | % | 336,049 | 40.2 | % | |||||||||||||||||
Marketing, general and administrative expense | 177,880 | 17.4 | % | 142,631 | 17.1 | % | |||||||||||||||||
Other operating income, net | (1,958) | (0.2) | % | (2,894) | (0.3) | % | |||||||||||||||||
Operating income | 129,849 | 12.7 | % | 34,008 | 4.1 | % | |||||||||||||||||
Interest expense | 5,780 | 0.6 | % | 7,458 | 0.9 | % | |||||||||||||||||
Interest income | (10,803) | (1.1) | % | (4,015) | (0.5) | % | |||||||||||||||||
Interest (income) expense, net | (5,023) | (0.5) | % | 3,443 | 0.4 | % | |||||||||||||||||
Income before income taxes | 134,872 | 13.2 | % | 30,565 | 3.7 | % | |||||||||||||||||
Income tax expense | 19,794 | 1.9 | % | 12,718 | 1.5 | % | |||||||||||||||||
Net income | 115,078 | 11.3 | % | 17,847 | 2.1 | % | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | 1,228 | 0.1 | % | 1,276 | 0.2 | % | |||||||||||||||||
Net income attributable to A&F | $ | 113,850 | 11.2 | % | $ | 16,571 | 2.0 | % | |||||||||||||||
Net income per share attributable to A&F | |||||||||||||||||||||||
Basic | $ | 2.24 | $ | 0.33 | |||||||||||||||||||
Diluted | $ | 2.14 | $ | 0.32 | |||||||||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||||
Basic | 50,893 | 49,574 | |||||||||||||||||||||
Diluted | 53,276 | 51,467 | |||||||||||||||||||||
Abercrombie & Fitch Co. | |||||||||||||||||
Reconciliation of Constant Currency Financial Measures | |||||||||||||||||
Thirteen Weeks Ended May 4, 2024 and April 29, 2023 | |||||||||||||||||
(in thousands, except percentage and basis point changes and per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
2024 | 2023 | % Change | |||||||||||||||
Net sales | |||||||||||||||||
GAAP (1) |
$ | 1,020,730 | $ | 835,994 | 22% | ||||||||||||
Impact from changes in foreign currency exchange rates (2) |
— | (551) | —% | ||||||||||||||
Net sales on a constant currency basis | $ | 1,020,730 | $ | 835,443 | 22% | ||||||||||||
Gross profit | 2024 | 2023 | BPS Change (3) |
||||||||||||||
GAAP (1) |
$ | 677,457 | $ | 509,794 | 540 | ||||||||||||
Impact from changes in foreign currency exchange rates (2) |
— | 930 | (10) | ||||||||||||||
Gross profit on a constant currency basis | $ | 677,457 | $ | 510,724 | 530 | ||||||||||||
Operating income | 2024 | 2023 | BPS Change (3) |
||||||||||||||
GAAP (1) |
$ | 129,849 | $ | 34,008 | 860 | ||||||||||||
Excluded items (4) |
— | (4,436) | 50 | ||||||||||||||
Adjusted non-GAAP | $ | 129,849 | $ | 38,444 | 810 | ||||||||||||
Impact from changes in foreign currency exchange rates (2) |
— | 463 | (10) | ||||||||||||||
Adjusted non-GAAP constant currency basis | $ | 129,849 | $ | 38,907 | 800 | ||||||||||||
Net income attributable to A&F | 2024 | 2023 | $ Change | ||||||||||||||
GAAP (1) |
$ | 2.14 | $ | 0.32 | $1.82 | ||||||||||||
Excluded items, net of tax (4) |
— | (0.06) | 0.06 | ||||||||||||||
Adjusted non-GAAP | $ | 2.14 | $ | 0.39 | $1.75 | ||||||||||||
Impact from changes in foreign currency exchange rates (2) |
— | — | — | ||||||||||||||
Adjusted non-GAAP constant currency basis | $ | 2.14 | $ | 0.39 | $1.75 |
Abercrombie & Fitch Co. | ||||||||||||||||||||||||||
Reconciliation of Constant Currency Net Sales by Geography and Brand | ||||||||||||||||||||||||||
Thirteen Weeks Ended May 4, 2024 and April 29, 2023 | ||||||||||||||||||||||||||
(in thousands, except percentage changes) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
2024 | 2023 | GAAP % Change |
Non-GAAP Constant Currency Basis % Change |
|||||||||||||||||||||||
GAAP | GAAP |
Impact From Changes In
Foreign Currency Exchanges Rates (1)
|
Non-GAAP Constant Currency Basis |
|||||||||||||||||||||||
Net sales by segment: (2) |
||||||||||||||||||||||||||
Americas (3) |
$ | 820,121 | $ | 665,423 | $ | (62) | $ | 665,361 | 23% | 23% | ||||||||||||||||
EMEA (4) |
164,778 | 138,106 | 1,141 | 139,247 | 19% | 18% | ||||||||||||||||||||
APAC (5) |
35,831 | 32,465 | (1,630) | 30,835 | 10% | 16% | ||||||||||||||||||||
Total company | $ | 1,020,730 | $ | 835,994 | $ | (551) | $ | 835,443 | 22% | 22% | ||||||||||||||||
2024 | 2023 | GAAP % Change |
Non-GAAP Constant Currency Basis % Change |
|||||||||||||||||||||||
GAAP | GAAP |
Impact From Changes In
Foreign Currency Exchanges Rates (1)
|
Non-GAAP Constant Currency Basis |
|||||||||||||||||||||||
Net sales by brand: | ||||||||||||||||||||||||||
Abercrombie (6) |
571,513 | 436,044 | (572) | 435,472 | 31% | 31% | ||||||||||||||||||||
Hollister (7) |
$ | 449,217 | $ | 399,950 | $ | 21 | $ | 399,971 | 12% | 12% | ||||||||||||||||
Total company | $ | 1,020,730 | $ | 835,994 | $ | (551) | $ | 835,443 | 22% | 22% |
Abercrombie & Fitch Co. | ||||||||||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA | ||||||||||||||||||||
Thirteen Weeks Ended May 4, 2024 and April 29, 2023 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
2024 | % of Net Sales |
2023 | % of Net Sales |
|||||||||||||||||
Net income | $ | 115,078 | 11.3 | % | $ | 17,847 | 2.1 | % | ||||||||||||
Income tax expense | 19,794 | 1.9 | 12,718 | 1.5 | ||||||||||||||||
Interest (income) expense, net | (5,023) | (0.5) | 3,443 | 0.4 | ||||||||||||||||
Depreciation and amortization |
37,689 | 3.7 | 36,028 | 4.3 | ||||||||||||||||
EBITDA (1) |
$ | 167,538 | 16.4 | % | $ | 70,036 | 8.4 | % | ||||||||||||
Adjustments to EBITDA | ||||||||||||||||||||
Asset impairment | — | — | 4,436 | 0.5 | ||||||||||||||||
Adjusted EBITDA (1) |
$ | 167,538 | 16.4 | % | $ | 74,472 | 8.9 | % | ||||||||||||
Abercrombie & Fitch Co. | |||||||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||||||||
(in thousands) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
May 4, 2024 | February 3, 2024 | April 29, 2023 | |||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and equivalents | $ | 864,195 | $ | 900,884 | $ | 446,952 | |||||||||||
Receivables | 93,605 | 78,346 | 106,149 | ||||||||||||||
Inventories | 449,267 | 469,466 | 447,806 | ||||||||||||||
Other current assets | 102,516 | 88,569 | 107,684 | ||||||||||||||
Total current assets | 1,509,583 | 1,537,265 | 1,108,591 | ||||||||||||||
Property and equipment, net | 540,697 | 538,033 | 550,810 | ||||||||||||||
Operating lease right-of-use assets | 699,471 | 678,256 | 692,699 | ||||||||||||||
Other assets | 220,334 | 220,679 | 205,978 | ||||||||||||||
Total assets | $ | 2,970,085 | $ | 2,974,233 | $ | 2,558,078 | |||||||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 266,925 | $ | 296,976 | $ | 221,587 | |||||||||||
Accrued expenses | 402,786 | 436,655 | 340,331 | ||||||||||||||
Short-term portion of operating lease liabilities | 188,851 | 179,625 | 188,520 | ||||||||||||||
Income taxes payable | 61,137 | 53,564 | 19,023 | ||||||||||||||
Total current liabilities | 919,699 | 966,820 | 769,461 | ||||||||||||||
Long-term liabilities: | |||||||||||||||||
Long-term portion of operating lease liabilities | $ | 656,862 | $ | 646,624 | $ | 682,996 | |||||||||||
Long-term borrowings, net | 213,102 | 222,119 | 297,172 | ||||||||||||||
Other liabilities | 89,252 | 88,683 | 97,476 | ||||||||||||||
Total long-term liabilities | 959,216 | 957,426 | 1,077,644 | ||||||||||||||
Total Abercrombie & Fitch Co. stockholders’ equity | 1,078,886 | 1,035,160 | 701,857 | ||||||||||||||
Noncontrolling interests | 12,284 | 14,827 | 9,116 | ||||||||||||||
Total stockholders’ equity | 1,091,170 | 1,049,987 | 710,973 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,970,085 | $ | 2,974,233 | $ | 2,558,078 |
Abercrombie & Fitch Co. | |||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||
(in thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
Thirteen Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Operating activities | |||||||||||
Net cash provided by (used for) operating activities | $ | 95,010 | $ | (560) | |||||||
Investing activities | |||||||||||
Purchases of property and equipment | $ | (38,886) | $ | (46,391) | |||||||
Net cash used for investing activities | $ | (38,886) | $ | (46,391) | |||||||
Financing activities | |||||||||||
Purchase of senior secured notes | (9,425) | — | |||||||||
Purchases of common stock | (15,000) | — | |||||||||
Acquisition of common stock for tax withholding obligations | (65,173) | (18,359) | |||||||||
Other financing activities | (3,353) | (3,597) | |||||||||
Net cash used for financing activities | $ | (92,951) | $ | (21,956) | |||||||
Effect of foreign currency exchange rates on cash | $ | (857) | $ | (1,998) | |||||||
Net decrease in cash and equivalents, and restricted cash and equivalents | $ | (37,684) | $ | (70,905) | |||||||
Cash and equivalents, and restricted cash and equivalents, beginning of period | $ | 909,685 | $ | 527,569 | |||||||
Cash and equivalents, and restricted cash and equivalents, end of period | $ | 872,001 | $ | 456,664 |
Abercrombie & Fitch Co. | ||||||||||||||||||||||||||||||||
Financial Information | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
Fiscal 2023 | Fiscal 2024 | |||||||||||||||||||||||||||||||
2022 | Q1 | Q2 | Q3 | Q4 | 2023 | Q1 | ||||||||||||||||||||||||||
Net sales | $ | 3,697,751 | $ | 835,994 | $ | 935,345 | $ | 1,056,431 | $ | 1,452,907 | $ | 4,280,677 | $ | 1,020,730 | ||||||||||||||||||
Cost of sales, exclusive of depreciation and amortization | 1,593,213 | 326,200 | 350,965 | 370,762 | 539,338 | 1,587,265 | 343,273 | |||||||||||||||||||||||||
Gross profit | 2,104,538 | 509,794 | 584,380 | 685,669 | 913,569 | 2,693,412 | 677,457 | |||||||||||||||||||||||||
Stores and distribution expense | 1,496,962 | 336,049 | 352,730 | 383,883 | 499,075 | 1,571,737 | 371,686 | |||||||||||||||||||||||||
Marketing, general and administrative expense | 517,602 | 142,631 | 144,502 | 162,510 | 193,234 | 642,877 | 177,880 | |||||||||||||||||||||||||
Other operating (income) loss, net | (2,674) | (2,894) | (2,694) | 1,256 | (1,541) | (5,873) | (1,958) | |||||||||||||||||||||||||
Operating income | 92,648 | 34,008 | 89,842 | 138,020 | 222,801 | 484,671 | 129,849 | |||||||||||||||||||||||||
Interest expense | 30,236 | 7,458 | 7,635 | 8,568 | 6,691 | 30,352 | 5,780 | |||||||||||||||||||||||||
Interest income | (4,604) | (4,015) | (6,538) | (7,897) | (11,530) | (29,980) | (10,803) | |||||||||||||||||||||||||
Interest (income) expense, net | 25,632 | 3,443 | 1,097 | 671 | (4,839) | 372 | (5,023) | |||||||||||||||||||||||||
Income before income taxes | 67,016 | 30,565 | 88,745 | 137,349 | 227,640 | 484,299 | 134,872 | |||||||||||||||||||||||||
Income tax expense | 56,631 | 12,718 | 30,014 | 39,617 | 66,537 | 148,886 | 19,794 | |||||||||||||||||||||||||
Net income | 10,385 | 17,847 | 58,731 | 97,732 | 161,103 | 335,413 | 115,078 | |||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 7,569 | 1,276 | 1,837 | 1,521 | 2,656 | 7,290 | 1,228 | |||||||||||||||||||||||||
Net income attributable to Abercrombie & Fitch Co. | $ | 2,816 | $ | 16,571 | $ | 56,894 | $ | 96,211 | $ | 158,447 | $ | 328,123 | $ | 113,850 | ||||||||||||||||||
Net income per share attributable to Abercrombie & Fitch Co.: | ||||||||||||||||||||||||||||||||
Basic | $0.06 | $0.33 | $1.13 | $1.91 | $3.13 | $6.53 | $2.24 | |||||||||||||||||||||||||
Diluted | $0.05 | $0.32 | $1.10 | $1.83 | $2.97 | $6.22 | $2.14 | |||||||||||||||||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 50,307 | 49,574 | 50,322 | 50,504 | 50,559 | 50,250 | 50,893 | |||||||||||||||||||||||||
Diluted | 52,327 | 51,467 | 51,548 | 52,624 | 53,399 | 52,726 | 53,276 | |||||||||||||||||||||||||
Abercrombie & Fitch Co. | ||||||||||||||||||||||||||||||||
Financial Information | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Fiscal 2023 | Fiscal 2024 | |||||||||||||||||||||||||||||||
2022 | Q1 | Q2 | Q3 | Q4 | 2023 | Q1 | ||||||||||||||||||||||||||
Segment comparable sales (1) |
||||||||||||||||||||||||||||||||
Americas comparable sales (2) (3) |
Not provided | Not provided | 14 | % | 16 | % | 17 | % | 13 | % | 21 | % | ||||||||||||||||||||
EMEA comparable sales (2) (4) |
Not provided | Not provided | 6 | % | 15 | % | 10 | % | 7 | % | 23 | % | ||||||||||||||||||||
APAC comparable sales (2) (5) |
Not provided | Not provided | 26 | % | 32 | % | 21 | % | 26 | % | 22 | % | ||||||||||||||||||||
Comparable sales (2) |
Not provided | 3 | % | 13 | % | 16 | % | 16 | % | 13 | % | 21 | % | |||||||||||||||||||
Branded comparable sales | ||||||||||||||||||||||||||||||||
Abercrombie comparable sales (2) (6) |
Not provided | 14 | % | 23 | % | 26 | % | 28 | % | 23 | % | 29 | % | |||||||||||||||||||
Hollister comparable sales (2) (7) |
Not provided | (6) | % | 5 | % | 7 | % | 6 | % | 4 | % | 13 | % | |||||||||||||||||||
Comparable sales (2) |
Not provided | 3 | % | 13 | % | 16 | % | 16 | % | 13 | % | 21 | % | |||||||||||||||||||
(1) Net sales by segment are presented by attributing revenues to an individual country on the basis of the segment that fulfills the order. | ||||||||||||||||||||||||||||||||
(2) Comparable sales are calculated on a constant currency basis. Refer to "REPORTING AND USE OF GAAP AND NON-GAAP MEASURES," for further discussion. The Company did not provide comparable sales results for fiscal 2022 due to temporary store closures as a result of COVID-19. | ||||||||||||||||||||||||||||||||
(3) The Americas segment includes the results of operations in North America and South America. | ||||||||||||||||||||||||||||||||
(4) The EMEA segment includes the results of operations in Europe, the Middle East and Africa. | ||||||||||||||||||||||||||||||||
(5) The APAC segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. | ||||||||||||||||||||||||||||||||
(6) For purposes of the above table, Abercrombie includes Abercrombie & Fitch and abercrombie kids. | ||||||||||||||||||||||||||||||||
(7) For purposes of the above table, Hollister includes Hollister and Gilly Hicks. |