Abercrombie & Fitch Co. (NYSE: ANF) today announced results for
the second quarter ended July 29, 2023. These compare to
results for the second quarter ended July 30, 2022.
Descriptions of the use of non-GAAP financial measures and
reconciliations of GAAP and non-GAAP financial measures accompany
this release.
Fran Horowitz, Chief Executive Officer, said, “Our net sales and
operating margin exceeded our expectations as global growth
accelerated throughout the second quarter. We continue to see
strong customer receptivity of our brands and product, led by 26%
net sales growth in Abercrombie brands. To date, our efforts to
evolve Hollister brands’ positioning and assortment are paying off,
achieving a return to net sales growth at positive 8% for the
quarter. Both brands saw gross profit rate improvement on higher
average unit retail and lower freight costs. Operating leverage
from sales growth and gross profit rate performance contributed to
an operating margin of 9.6%, a significant expansion from second
quarter of 2022. These strong results showcase the power of our
playbook and our team’s ability to align product, voice, and
experience to meet our customers’ needs. Operationally, we are
strategically managing inventory, leveraging chase capabilities to
support demand, and driving efficiency across our business.
While the macro environment remains dynamic, our first half
results give us confidence to stay on offense for the second half.
Consistent with our Always Forward Plan, we are continuing to open
stores and make critical long-term investments in digital and
technology that will keep our brands in position to exceed our
customers’ expectations.”
Details related to reported net income (loss) per diluted share
and adjusted net income (loss) per diluted share for the second
quarter are as follows:
|
|
|
2023 |
|
|
2022 |
|
GAAP |
|
$ |
1.10 |
|
$ |
(0.33 |
) |
Excluded items, net of tax
effect (1) |
|
|
— |
|
|
(0.03 |
) |
Adjusted non-GAAP |
|
$ |
1.10 |
|
$ |
(0.30 |
) |
Impact from changes in foreign
currency exchange rates (2) |
|
|
— |
|
|
(0.02 |
) |
Adjusted non-GAAP constant
currency |
|
$ |
1.10 |
|
$ |
(0.32 |
) |
(1) Excluded items consist of pre-tax
store asset impairment charges in the prior year.
(2) The estimated impact from foreign
currency is calculated by applying current period exchange rates to
prior year results using a 26% tax rate.
A summary of results for the second
quarter ended July 29, 2023 as compared to the second
quarter ended July 30, 2022:
- Net
sales of $935 million, up 16% as compared to last year on
a reported basis and up 16% on a constant currency basis.
-
Positive total company comparable
sales of 13%.
- Gross
profit rate of 62.5%, up approximately 460 basis points as
compared to last year. The year-over-year improvement was primarily
driven by a benefit of 400 basis points from year-over-year AUR
growth and 340 basis points from lower freight costs partially
offset by 180 basis points from higher cotton and raw material
costs and 60 basis points from the adverse impact from foreign
currency.
- Operating
expense, excluding other operating income, net, up
$30 million or 6% compared to last year, driven by increases
in incentive compensation, store occupancy and technology expenses.
Operating expense as a percentage of sales decreased to 53.2% from
58.0% last year.
-
Operating income of $90 million
on a reported basis as compared to operating loss of $2 million and
$0 million last year, on a reported and adjusted non-GAAP basis,
respectively.
-
Net income per diluted
share of $1.10 on a reported basis as compared to net loss
per diluted share last year of $0.33 and $0.30 on a reported and
adjusted non-GAAP basis, respectively.
Segment reorganization on geographic basis |
During the second quarter of 2023, to drive
ongoing brand growth and leverage the knowledge and experience of
its regional teams, the company reorganized its structure and now
manages its business on a geographic basis, consisting of three
reportable segments: Americas, Europe, the Middle East and Africa
(EMEA) and Asia-Pacific (APAC). There were no changes on the
consolidated results of operations. All prior periods presented are
recast to conform to this classification.
Net sales by segment and brand
for the second quarter are as follows:
Net sales by
segment: (1) |
|
2023 |
|
|
2022 |
|
1 YR % Change |
|
Comparable sales (2) |
Americas |
$ |
731,427 |
|
$ |
613,244 |
|
19 |
% |
|
14 |
% |
EMEA |
|
171,962 |
|
|
164,827 |
|
4 |
% |
|
6 |
% |
APAC |
|
31,956 |
|
|
27,020 |
|
18 |
% |
|
26 |
% |
Total
company |
$ |
935,345 |
|
$ |
805,091 |
|
16 |
% |
|
13 |
% |
|
|
|
|
|
|
|
|
(in thousands) |
|
2023 |
|
|
2022 |
|
1 YR % Change |
|
Comparable sales (2) |
Net sales by
brand: |
|
|
|
|
|
|
|
Abercrombie (3) |
|
462,711 |
|
|
368,157 |
|
26 |
% |
|
23 |
% |
Hollister (4) |
$ |
472,634 |
|
$ |
436,934 |
|
8 |
% |
|
5 |
% |
Total
company |
$ |
935,345 |
|
$ |
805,091 |
|
16 |
% |
|
13 |
% |
(1) Net sales by segment are
presented by attributing revenues to an individual country on the
basis of the country in which the merchandise was sold for in-store
purchases and on the basis of the shipping location provided by
customers for digital orders.
(2) Comparable sales are
calculated on a constant currency basis. Refer to "REPORTING AND
USE OF GAAP AND NON-GAAP MEASURES," for further discussion.
(3) For purposes of the above
table, Abercrombie includes the Abercrombie & Fitch and
abercrombie kids brands.
(4) For purposes of the above
table, Hollister includes the Hollister, Gilly Hicks and Social
Tourist brands.
Financial Position and Liquidity |
As of July 29, 2023 the company had:
- Cash and
equivalents of $617 million. This compares to cash and
equivalents of $518 million and $370 million as of January 28,
2023 and July 30, 2022, respectively.
-
Inventories of $493 million, a decrease of 30%
compared to July 30, 2022.
- Long-term
gross borrowings under the company’s senior secured notes
of $300 million (the “Senior Secured Notes”) which mature in
July 2025 and bear interest at a rate of 8.75% per annum.
- Borrowing
available under the senior-secured asset-based revolving
credit facility (the “ABL Facility”) of $357 million.
-
Liquidity, comprised of cash and equivalents and
borrowing available under the ABL Facility, of approximately $974
million. This compares to liquidity of $866 million and $729
million as of January 28, 2023 and July 30, 2022,
respectively.
Cash Flow and Capital Allocation |
Details related to the company’s cash flows for
the year-to-date period ended July 29, 2023 are as
follows:
- Net
cash provided by operating
activities of $216 million.
- Net
cash used for investing
activities of $90 million.
- Net
cash used for financing
activities of $23 million.
Depreciation and amortization was $72 million
for the year-to-date period ended July 29, 2023.
Fiscal 2023 Full Year
Outlook |
The following outlook replaces all previous full
year guidance. For fiscal 2023, the company now expects:
- Net
sales growth of around 10% from $3.7 billion in 2022. This
is an increase to the previous outlook of up 2% to 4%. The current
outlook assumes that Abercrombie brands will continue to outperform
Hollister brands. Also, fiscal 2023 includes a 53rd week for
reporting purposes, along with net store expansion. The 53rd week
is estimated to add approximately $45 million to total net
sales in the fourth quarter and full year of 2023.
- Operating
margin to be in the range of 8% to 9%. This range improves
from the previous outlook of 5% to 6%. The current outlook includes
a benefit of around 250 basis points from full year 2022 levels on
expected net improvement in freight and raw material costs, and
modest operating expense leverage with sales growth expected to
more than offset higher expenses from the combination of inflation
and increased investments for the 2025 Always Forward Plan
initiatives, including an upgrade of our retail merchandising ERP
system.
- Effective
tax rate to be in the low-to-mid 30s. This replaces the
previous outlook of high-30s. The current outlook assumes the
continued inability to realize benefits on certain expected tax
losses incurred outside of the U.S., although to a lesser extent
than the prior outlook provided.
- Capital
expenditures of approximately $160 million.
Fiscal 2023
Third Quarter Outlook |
For the third quarter of fiscal 2023, the company expects:
- Net
sales growth to be up low double-digits compared to fiscal
third quarter 2022 level of $880 million. Included in this outlook
is the expected benefit of approximately 140 basis points from
foreign currency.
- Operating
margin to be in the range of 8% to 10% compared to an
adjusted operating margin of 2.4% in Q3 2022. We expect the
year-over-year improvement to be driven by a higher gross profit
rate on lower freight costs and higher AURs and modest operating
expense leverage on higher sales.
- Effective
tax rate to be in the mid-30s. This outlook assumes the
continued inability to realize benefits on certain expected tax
losses incurred outside of the U.S.
Today at 8:30 a.m. ET, the company will conduct
a conference call and provide additional details around its
quarterly results and its outlook for the third quarter. To access
the call by phone, participants will need to register at the
following URL address to obtain a dial-in number and passcode:
https://register.vevent.com/register/BI00b7584485ee47f98eca556c6ffce3e8
A presentation of second quarter results will be
available in the “Investors” section at corporate.abercrombie.com
at approximately 7:30 a.m. ET, today. Important information may be
disseminated initially or exclusively via the website; investors
should consult the site to access this information.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995 |
This Press Release and related statements by management or
spokespeople of Abercrombie & Fitch Co. (A&F) contain
forward-looking statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995). These statements,
including, without limitation, statements regarding our third
quarter and annual fiscal 2023 results, relate to our current
assumptions, projections and expectations about our business and
future events. Any such forward-looking statements involve risks
and uncertainties and are subject to change based on various
important factors, many of which may be beyond the company’s
control. The inclusion of such information should not be regarded
as a representation by the company, or any other person, that the
objectives of the company will be achieved. Words such as
“estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,”
“intend,” “should,” “are confident,” “will,” “could,” “outlook,”
and similar expressions may identify forward-looking statements.
Except as may be required by applicable law, we assume no
obligation to publicly update or revise any forward-looking
statements, including any financial targets or estimates, whether
as a result of new information, future events, or otherwise.
Factors that may cause results to differ from those expressed in
our forward-looking statements include, but are not limited to, the
factors disclosed in Part I, Item 1A. “Risk Factors” of the
company’s Annual Report on Form 10-K for the fiscal year
ended January 28, 2023, and otherwise in our reports and
filings with the Securities and Exchange Commission, as well as the
following factors: risks related to changes in global economic and
financial conditions, and the resulting impact on consumer
confidence and consumer spending, as well as other changes in
consumer discretionary spending habits; risks related to continued
inflationary pressures with respect to labor and raw materials and
global supply chain constraints that have, and could continue, to
affect freight, transit, and other costs; risks related to
geopolitical conflict, including ongoing geopolitical challenges
between the United States and China, the ongoing hostilities in
Ukraine, acts of terrorism, mass casualty events, social unrest,
civil disturbance or disobedience; risks related to our failure to
engage our customers, anticipate customer demand and changing
fashion trends, and manage our inventory; risks related to our
failure to operate effectively in a highly competitive and
constantly evolving industry; risks related to our ability to
execute on our strategic and growth initiatives, including those
outlined in our Always Forward Plan; risks related to fluctuations
in foreign currency exchange rates; risks related to fluctuations
in our tax obligations and effective tax rate, including as a
result of earnings and losses generated from our international
operations, may result in volatility in our results of operations;
risks and uncertainty related to adverse public health
developments, such as the COVID‐19 pandemic; risks associated with
corporate responsibility issues; risks related to cybersecurity
threats and privacy or data security breaches; and the potential
loss or disruption to our information systems.
This document includes certain adjusted non-GAAP
financial measures where management believes it to be helpful in
understanding the company's results of operations or financial
position. Additional details about non-GAAP financial measures and
a reconciliation of GAAP financial measures to non-GAAP financial
measures can be found in the "Reporting and Use of GAAP and
Non-GAAP Measures" section. Sub-totals and totals may not foot due
to rounding. Net income (loss) and net income (loss) per share
financial measures included herein are attributable to Abercrombie
& Fitch Co., excluding net income attributable to
noncontrolling interests.
Unless otherwise noted, as used in this
document, unless otherwise defined "Abercrombie brands" refers to
the company's Abercrombie & Fitch and abercrombie kids brands
and "Hollister brands" refers to the company's Hollister, Gilly
Hicks, and Social Tourist brands. Additionally, references to
"Americas" includes North America and South America, "EMEA"
includes Europe, the Middle East and Africa and "APAC" includes the
Asia-Pacific region, including Asia and Oceania.
About Abercrombie & Fitch Co. |
Abercrombie & Fitch Co. (NYSE: ANF) is a
leading, global, omnichannel specialty retailer of apparel and
accessories for men, women and kids. The iconic Abercrombie &
Fitch brand was born in 1892 and aims to make every day feel as
exceptional as the start of a long weekend. abercrombie kids sees
the world through kids’ eyes, where play is life and every day is
an opportunity to be anything and better anything. The Hollister
brand believes in liberating the spirit of an endless summer inside
everyone and making teens feel celebrated and comfortable in their
own skin. Gilly Hicks, offering active lifestyle products, is
designed to create happiness through movement. Social Tourist, the
creative vision of Hollister and social media personalities, Dixie
and Charli D’Amelio, offers trend forward apparel that allows teens
to experiment with their style, while exploring the duality of who
they are both on social media and in real life.
The brands share a commitment to offering
products of enduring quality and exceptional comfort that allow
consumers around the world to express their own individuality and
style. Abercrombie & Fitch Co. operates approximately 760
stores under these brands across North America, Europe, Asia and
the Middle East, as well as the e-commerce sites
www.abercrombie.com, www.abercrombiekids.com, www.hollisterco.com,
www.gillyhicks.com and www.socialtourist.com.
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 |
|
July 29, 2023 |
|
% of Net Sales |
|
July 30, 2022 |
|
% of Net Sales |
Net sales |
$ |
935,345 |
|
|
100.0 |
% |
|
$ |
805,091 |
|
|
100.0 |
% |
Cost of sales, exclusive of
depreciation and amortization |
|
350,965 |
|
|
37.5 |
% |
|
|
339,200 |
|
|
42.1 |
% |
Gross profit |
|
584,380 |
|
|
62.5 |
% |
|
|
465,891 |
|
|
57.9 |
% |
Stores and distribution
expense |
|
352,730 |
|
|
37.7 |
% |
|
|
340,791 |
|
|
42.3 |
% |
Marketing, general and
administrative expense |
|
144,502 |
|
|
15.4 |
% |
|
|
124,168 |
|
|
15.4 |
% |
Asset impairment |
|
— |
|
|
— |
% |
|
|
2,170 |
|
|
0.3 |
% |
Other operating (income)
expense, net |
|
(2,694 |
) |
|
(0.3)% |
|
|
953 |
|
|
0.1 |
% |
Operating income (loss) |
|
89,842 |
|
|
9.6 |
% |
|
|
(2,191 |
) |
|
(0.3)% |
Interest expense, net |
|
1,097 |
|
|
0.1 |
% |
|
|
6,917 |
|
|
0.9 |
% |
Income (loss) before income
taxes |
|
88,745 |
|
|
9.5 |
% |
|
|
(9,108 |
) |
|
(1.1)% |
Income tax expense |
|
30,014 |
|
|
3.2 |
% |
|
|
5,634 |
|
|
0.7 |
% |
Net income (loss) |
|
58,731 |
|
|
6.3 |
% |
|
|
(14,742 |
) |
|
(1.8)% |
Less: Net income attributable
to noncontrolling interests |
|
1,837 |
|
|
0.2 |
% |
|
|
2,092 |
|
|
0.3 |
% |
Net income (loss) attributable
to A&F |
$ |
56,894 |
|
|
6.1 |
% |
|
$ |
(16,834 |
) |
|
(2.1)% |
|
|
|
|
|
|
|
|
Net income (loss) per share
attributable to A&F |
|
|
|
|
|
|
|
Basic |
$ |
1.13 |
|
|
|
|
$ |
(0.33 |
) |
|
|
Diluted |
$ |
1.10 |
|
|
|
|
$ |
(0.33 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
50,322 |
|
|
|
|
|
50,441 |
|
|
|
Diluted |
|
51,548 |
|
|
|
|
|
50,441 |
|
|
|
Abercrombie & Fitch Co. |
Condensed Consolidated Statements of
Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Twenty-Six Weeks Ended |
|
Twenty-Six Weeks Ended |
|
July 29, 2023 |
|
% of Net Sales |
|
July 30, 2022 |
|
% of Net Sales |
Net sales |
$ |
1,771,339 |
|
|
100.0 |
% |
|
$ |
1,617,853 |
|
|
100.0 |
% |
Cost of sales, exclusive of
depreciation and amortization |
|
677,165 |
|
|
38.2 |
% |
|
|
702,416 |
|
|
43.4 |
% |
Gross profit |
|
1,094,174 |
|
|
61.8 |
% |
|
|
915,437 |
|
|
56.6 |
% |
Stores and distribution
expense |
|
684,343 |
|
|
38.6 |
% |
|
|
678,334 |
|
|
41.9 |
% |
Marketing, general and
administrative expense |
|
287,133 |
|
|
16.2 |
% |
|
|
246,317 |
|
|
15.2 |
% |
Asset impairment |
|
4,436 |
|
|
0.3 |
% |
|
|
5,592 |
|
|
0.3 |
% |
Other operating income,
net |
|
(5,588 |
) |
|
(0.3) % |
|
|
(2,889 |
) |
|
(0.2) % |
Operating income (loss) |
|
123,850 |
|
|
7.0 |
% |
|
|
(11,917 |
) |
|
(0.7) % |
Interest expense, net |
|
4,540 |
|
|
0.3 |
% |
|
|
14,224 |
|
|
0.9 |
% |
Income (loss) before income
taxes |
|
119,310 |
|
|
6.7 |
% |
|
|
(26,141 |
) |
|
(1.6) % |
Income tax expense |
|
42,732 |
|
|
2.4 |
% |
|
|
3,447 |
|
|
0.2 |
% |
Net income (loss) |
|
76,578 |
|
|
4.3 |
% |
|
|
(29,588 |
) |
|
(1.8) % |
Less: Net income attributable
to noncontrolling interests |
|
3,113 |
|
|
0.2 |
% |
|
|
3,715 |
|
|
0.2 |
% |
Net income (loss) attributable
to A&F. |
$ |
73,465 |
|
|
4.1 |
% |
|
$ |
(33,303 |
) |
|
(2.1) % |
|
|
|
|
|
|
|
|
Net income (loss) per share
attributable to A&F |
|
|
|
|
|
|
|
Basic |
$ |
1.47 |
|
|
|
|
$ |
(0.65 |
) |
|
|
Diluted |
$ |
1.43 |
|
|
|
|
$ |
(0.65 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
49,952 |
|
|
|
|
|
51,262 |
|
|
|
Diluted |
|
51,535 |
|
|
|
|
|
51,262 |
|
|
|
Reporting and Use of GAAP and Non-GAAP
Measures
The company believes that each of the non-GAAP
financial measures presented are useful to investors as they
provide a measure of the company’s operating performance excluding
the effect of certain items which the company believes do not
reflect its future operating outlook, such as asset impairment
charges, therefore supplementing investors’ understanding of
comparability of operations across periods. Management used these
non-GAAP financial measures during the periods presented to assess
the company’s performance and to develop expectations for future
operating performance. Non-GAAP financial measures should be used
supplemental to, and not as an alternative to, the company’s GAAP
financial results, and may not be calculated in the same manner as
similar measures presented by other companies.
In addition, at times the company provides
comparable sales, defined as the percentage year-over-year change
in the aggregate of: (1) sales for stores that have been open as
the same brand at least one year and whose square footage has not
been expanded or reduced by more than 20% within the past year,
with prior year’s net sales converted at the current year’s foreign
currency exchange rate to remove the impact of foreign currency
rate fluctuation, and (2) digital net sales with prior year’s net
sales converted at the current year’s foreign currency exchange
rate to remove the impact of foreign currency rate fluctuation.
The company also provides certain financial
information on a constant currency basis to enhance investors’
understanding of underlying business trends and operating
performance, by removing the impact of foreign currency exchange
rate fluctuations. The effect from foreign currency, calculated on
a constant currency basis, is determined by applying current year
average exchange rates to prior year results and is net of the
year-over-year impact from hedging. The per diluted share effect
from foreign currency is calculated using a 26% tax rate.
Abercrombie & Fitch Co. |
Schedule of Non-GAAP Financial Measures |
Twenty-Six Weeks Ended July 29, 2023 |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
GAAP (1) |
|
Excluded items |
|
Adjusted non-GAAP |
Asset impairment (2) |
$ |
4,436 |
|
$ |
4,436 |
|
|
$ |
— |
Operating income |
|
123,850 |
|
|
(4,436 |
) |
|
|
128,286 |
Income before income
taxes |
|
119,310 |
|
|
(4,436 |
) |
|
|
123,746 |
Income tax expense (3) |
|
42,732 |
|
|
(1,207 |
) |
|
|
43,939 |
Net income attributable to
A&F |
$ |
73,465 |
|
$ |
(3,229 |
) |
|
$ |
76,694 |
|
|
|
|
|
|
Net income per diluted share
attributable to A&F |
$ |
1.43 |
|
$ |
(0.06 |
) |
|
$ |
1.49 |
Diluted weighted-average
shares outstanding: |
|
51,535 |
|
|
|
|
51,535 |
(1) “GAAP” refers to accounting
principles generally accepted in the United States of America.
(2) Excluded items consist of
pre-tax store impairment charges of $4.4 million.
(3) The tax effect of excluded
items is the difference between the tax provision calculated on a
GAAP basis and an adjusted non-GAAP basis.
Abercrombie & Fitch Co. |
Schedule of Non-GAAP Financial Measures |
Twenty-Six Weeks Ended July 30, 2022 |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
GAAP (1) |
|
Excluded items |
|
Adjusted non-GAAP |
Asset impairment (2) |
$ |
5,592 |
|
|
$ |
5,592 |
|
|
$ |
— |
|
Operating loss |
|
(11,917 |
) |
|
|
(5,592 |
) |
|
|
(6,325 |
) |
Loss before income taxes |
|
(26,141 |
) |
|
|
(5,592 |
) |
|
|
(20,549 |
) |
Income tax expense (3) |
|
3,447 |
|
|
|
(1,529 |
) |
|
|
4,976 |
|
Net loss attributable to
A&F |
$ |
(33,303 |
) |
|
$ |
(4,063 |
) |
|
$ |
(29,240 |
) |
|
|
|
|
|
|
Net loss per diluted share
attributable to A&F |
$ |
(0.65 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.57 |
) |
Diluted weighted-average
shares outstanding: |
|
51,262 |
|
|
|
|
|
51,262 |
|
(1) “GAAP” refers to accounting
principles generally accepted in the United States of America.
(2) Excluded items consist of
pre-tax store asset impairment charges of $5.6 million.
(3) The tax effect of excluded
items is the difference between the tax provision calculated on a
GAAP basis and an adjusted non-GAAP basis.
Abercrombie & Fitch Co. |
Reconciliation of Constant Currency Financial
Measures |
Thirteen Weeks Ended July 29,
2023 and July 30,
2022 |
(in thousands, except percentage and basis point changes
and per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
% Change |
Net
sales |
|
|
|
|
|
GAAP (1) |
$ |
935,345 |
|
$ |
805,091 |
|
|
|
16 |
% |
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
2,873 |
|
|
|
— |
% |
Net sales on a constant currency basis |
$ |
935,345 |
|
$ |
807,964 |
|
|
|
16 |
% |
|
|
|
|
|
|
Gross
profit |
|
2023 |
|
|
2022 |
|
|
BPS Change (3) |
GAAP (1) |
$ |
584,380 |
|
$ |
465,891 |
|
|
|
460 |
|
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
(2,977 |
) |
|
|
60 |
|
Gross profit on a constant currency basis |
$ |
584,380 |
|
$ |
462,914 |
|
|
|
520 |
|
|
|
|
|
|
|
Operating income
(loss) |
|
2023 |
|
|
2022 |
|
|
BPS Change (3) |
GAAP (1) |
$ |
89,842 |
|
$ |
(2,191 |
) |
|
|
990 |
|
Excluded items (4) |
|
— |
|
|
(2,170 |
) |
|
|
30 |
|
Adjusted non-GAAP |
$ |
89,842 |
|
$ |
(21 |
) |
|
|
960 |
|
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
(971 |
) |
|
|
10 |
|
Adjusted non-GAAP constant currency basis |
$ |
89,842 |
|
$ |
(992 |
) |
|
|
970 |
|
|
|
|
|
|
|
Net income (loss)
attributable to A&F |
|
2023 |
|
|
2022 |
|
|
$ Change |
GAAP (1) |
$ |
1.10 |
|
$ |
(0.33 |
) |
|
$ |
1.43 |
|
Excluded items, net of tax (4) |
|
— |
|
|
(0.03 |
) |
|
|
0.03 |
|
Adjusted non-GAAP |
$ |
1.10 |
|
$ |
(0.30 |
) |
|
$ |
1.40 |
|
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
(0.02 |
) |
|
|
0.02 |
|
Adjusted non-GAAP constant currency basis |
$ |
1.10 |
|
$ |
(0.32 |
) |
|
$ |
1.42 |
|
(1) “GAAP” refers to accounting
principles generally accepted in the United States of America.
(2) The estimated impact from
foreign currency is determined by applying current period exchange
rates to prior year results and is net of the year-over-year impact
from hedging. The per diluted share estimated impact from foreign
currency is calculated using a 26% tax rate.
(3) The estimated basis point
change has been rounded based on the percentage change.
(4) Excluded items consist of
$2.2 million pre-tax store asset impairment charges for the prior
year.
Abercrombie & Fitch Co. |
Reconciliation of Constant Currency Net Sales by Geography
and Brand |
Thirteen Weeks Ended July 29,
2023 and July 30,
2022 |
(in thousands, except percentage changes) |
(Unaudited) |
|
|
2023 |
|
|
2022 |
|
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 |
$ |
731,427 |
|
$ |
613,244 |
$ |
(1,174 |
) |
$ |
612,070 |
|
19 |
% |
19 |
% |
EMEA |
|
171,962 |
|
|
164,827 |
|
5,306 |
|
|
170,133 |
|
4 |
% |
1 |
% |
APAC |
|
31,956 |
|
|
27,020 |
|
(1,259 |
) |
|
25,761 |
|
18 |
% |
24 |
% |
Total
company |
$ |
935,345 |
|
$ |
805,091 |
$ |
2,873 |
|
$ |
807,964 |
|
16 |
% |
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
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 (3) |
|
462,711 |
|
|
368,157 |
|
(71 |
) |
|
368,086 |
|
26 |
% |
26 |
% |
Hollister (4) |
$ |
472,634 |
|
$ |
436,934 |
$ |
2,944 |
|
$ |
439,878 |
|
8 |
% |
7 |
% |
Total
company |
$ |
935,345 |
|
$ |
805,091 |
$ |
2,873 |
|
$ |
807,964 |
|
16 |
% |
16 |
% |
(1) The estimated impact from
foreign currency is determined by applying current period exchange
rates to prior year results and is net of the year-over-year impact
from hedging. The per diluted share estimated impact from foreign
currency is calculated using a 26% tax rate.
(2) Net sales by segment are
presented by attributing revenues to an individual country on the
basis of the country in which the merchandise was sold for in-store
purchases and on the basis of the shipping location provided by
customers for digital orders.
(3) For purposes of the above
table, Abercrombie includes the Abercrombie & Fitch and
abercrombie kids brands.
(4) For purposes of the above
table, Hollister includes the Hollister, Gilly Hicks and Social
Tourist brands.
Abercrombie & Fitch Co. |
Condensed Consolidated Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
July 29, 2023 |
|
January 28, 2023 |
|
July 30, 2022 |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and equivalents |
$ |
617,339 |
|
$ |
517,602 |
|
$ |
369,957 |
Receivables |
|
112,597 |
|
|
104,506 |
|
|
79,820 |
Inventories |
|
493,479 |
|
|
505,621 |
|
|
708,024 |
Other current assets |
|
87,850 |
|
|
100,289 |
|
|
104,887 |
Total current assets |
|
1,311,265 |
|
|
1,228,018 |
|
|
1,262,688 |
Property and equipment,
net |
|
553,680 |
|
|
551,585 |
|
|
511,181 |
Operating lease right-of-use
assets |
|
714,977 |
|
|
723,550 |
|
|
740,627 |
Other assets |
|
216,792 |
|
|
209,947 |
|
|
219,598 |
Total assets |
$ |
2,796,714 |
|
$ |
2,713,100 |
|
$ |
2,734,094 |
|
|
|
|
|
|
Liabilities and stockholders’
equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
323,197 |
|
$ |
258,895 |
|
$ |
408,297 |
Accrued expenses |
|
375,544 |
|
|
413,303 |
|
|
342,690 |
Short-term portion of operating lease liabilities |
|
191,700 |
|
|
213,979 |
|
|
202,699 |
Income taxes payable |
|
46,039 |
|
|
16,023 |
|
|
5,582 |
Total current liabilities |
|
936,480 |
|
|
902,200 |
|
|
959,268 |
Long-term liabilities: |
|
|
|
|
|
Long-term portion of operating lease liabilities |
$ |
692,046 |
|
$ |
713,361 |
|
$ |
714,265 |
Long-term borrowings, net |
|
297,385 |
|
|
296,852 |
|
|
304,219 |
Other liabilities |
|
92,019 |
|
|
94,118 |
|
|
83,415 |
Total long-term
liabilities |
|
1,081,450 |
|
|
1,104,331 |
|
|
1,101,899 |
Total Abercrombie & Fitch Co. stockholders’ equity |
|
768,306 |
|
|
694,841 |
|
|
661,788 |
Noncontrolling interests |
|
10,478 |
|
|
11,728 |
|
|
11,139 |
Total stockholders’
equity |
|
778,784 |
|
|
706,569 |
|
|
672,927 |
Total liabilities and
stockholders’ equity |
$ |
2,796,714 |
|
$ |
2,713,100 |
|
$ |
2,734,094 |
Abercrombie & Fitch Co. |
Condensed Consolidated Statements of Cash
Flows |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Twenty-Six Weeks Ended |
|
July 29, 2023 |
|
July 30, 2022 |
Operating
activities |
|
|
|
Net cash provided by (used for) operating activities |
$ |
216,328 |
|
|
$ |
(259,733 |
) |
|
|
|
|
Investing
activities |
|
|
|
Purchases of property and equipment |
$ |
(89,780 |
) |
|
$ |
(59,582 |
) |
Proceeds from sale of property and equipment |
|
— |
|
|
|
7,972 |
|
Net cash used for investing
activities |
$ |
(89,780 |
) |
|
$ |
(51,610 |
) |
|
|
|
|
Financing
activities |
|
|
|
Payment of debt modification costs and fees |
|
(17 |
) |
|
|
— |
|
Purchases of common stock |
|
— |
|
|
|
(117,775 |
) |
Other financing activities |
|
(23,325 |
) |
|
|
(17,649 |
) |
Net cash used for financing
activities |
$ |
(23,342 |
) |
|
$ |
(135,424 |
) |
|
|
|
|
Effect of foreign currency
exchange rates on cash |
$ |
(3,672 |
) |
|
$ |
(7,567 |
) |
Net increase (decrease) in
cash and equivalents, and restricted cash and equivalents |
$ |
99,534 |
|
|
$ |
(454,334 |
) |
Cash and equivalents, and
restricted cash and equivalents, beginning of period |
$ |
527,569 |
|
|
$ |
834,368 |
|
Cash and equivalents, and
restricted cash and equivalents, end of period |
$ |
627,103 |
|
|
$ |
380,034 |
|
Abercrombie and Fitch (NYSE:ANF)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Abercrombie and Fitch (NYSE:ANF)
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De Jun 2023 a Jun 2024