Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q1 2025 Earnings Presentation
27 slides from Abercrombie & Fitch's earnings presentation, May 28, 2025
Slide 1: Investor Presentation: First Quarter 2025
INVESTOR PRESENTATION: FIRST QUARTER 2025
Slide 2: Table of Contents
TABLE OF CONTENTS Safe Harbor and Other Information 3 Company Overview 5 Q1 2025 Results 15 Appendix 21 2
Slide 3: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation contains 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 second q
Slide 4: Reporting and Use of GAAP and Non-GAAP Measures
REPORTING AND USE OF GAAP AND NON-GAAP MEASURES The following presentation includes certain adjusted non-GAAP financial measures. Additional details about non-GAAP financial measures and a reconciliation of GAAP financial measures to non-GAAP financial measures is included in the Appendix to this pr
Slide 5: Global, digitally-led, omnichannel apparel and accessories retailer
Abercrombie & Fitch Co. is a global, digitally-led, omnichannel apparel and accessories retailer catering to kids through millennials with assortments curated for their specific lifestyle needs Our corporate purpose of 'We are here for you on the journey to being and becoming who you are' fuels our
Slide 6: Our Foundation
OUR FOUNDATION Built on a decade of transformation, and strengthening as we grow: • Two healthy, customer-driven brand families with distinct and large addressable markets; • Successful, regionally relevant brand playbooks, designed to attract, engage, retain, and scale long-term customer relationsh
Slide 7: Sustainable, Profitable Growth
SUSTAINABLE, PROFITABLE GROWTH WELL-BUILT FOUNDATION YIELDS STRONG RESULTS Net Sales Operating Income (Loss) (in $ billions) (in $ millions) EXPECT 12.5% TO EXPECT $741 13.5% MARGIN $4.9 3% TO 6% COVID GROWTH CLOSURE $4.3 IMPACT $3.7 $3.7 $485 $3.6 $3.6 $3.1 $343 COVID $127 CLOSURE $93 $70 IMPACT $(
Slide 8: Company Overview
COMPANY OVERVIEW 8
Slide 9: Abercrombie Brands: Vacation Shop
PRODUCT VOICE VACATION SHOP CUSTOMER EXPERIENCE GLOBAL NET SALES NET SALES BY CHANNEL TARGETING +10% $2.56B (FY 2024) GROWTH CAGR $2.20B MILLENNIALS $1.73B $1.46B $1.56B $1.29B ~ 40% ~ POST GRAD STORES 60% DIGITAL LOVES TO TRAVEL FASHION OBSESSED 278 FY FY FY FY FY FY STORES 2019 2020 2021 2022 2023
Slide 10: Hollister Brands: Graphics Shop
PRODUCT VOICE GRAPHICS SHOP CUSTOMER EXPERIENCE GLOBAL NET SALES NET SALES BY TARGETING BACK TO GROWTH CHANNEL +15% (FY 2024) GEN Z TEEN Y/Y W/ MILLENNIAL $2.39B PARENTS $2.16B $2.15B $1.96B $2.08B $1.83B 30% ~ COMING INTO THEIR OWN ~ 70% DIGITAL COMFORT OBSESSED STORES 511 VALUE VERSATILITY STORES
Slide 11: Always Forward Plan: Key Objectives
ALWAYS FORWARD PLAN KEY OBJECTIVES: 1 GLOBAL BRAND GROWTH EXECUTE 2 ENTERPRISE-WIDE DIGITAL ACCELERATE REVOLUTION 3 FINANCIAL DISCIPLINE OPERATE WITH COMPANY OVERVIEW 11
Slide 12: Global Brand Growth
1 GLOBAL BRAND GROWTH PRODUCT VOICE EXPERIENCE COLLECTIONS & DIGITAL CUSTOMER GEOGRAPHIC EXTENSIONS ACQUISITION EXPANSION • Graphics Licensing • Influencer Channel • Localized Physical/Digital • Activewear • Social Commerce Experiences • A&F Best Dressed Guest (Instagram, TikTok, WeChat) • Fuel Regi
Slide 13: Enterprise-Wide Digital Revolution
2 ENTERPRISE-WIDE DIGITAL REVOLUTION WOW THEM – investments in people, systems, and processes to improve the end-to-end customer experience • Modernize Foundation (Retail ERP, Data Infrastructure) • Consistent Omnichannel experience (Digital and In-Store) • Powerful, Modern Loyalty Program KNOW THEM
Slide 14: Financial Discipline
3 FINANCIAL DISCIPLINE AGILE COST STRUCTURE; SIGNIFICANT OPERATING MARGIN IMPROVEMENT WHILE INVESTING 2022 2023 2024 Net Sales growth across both NET SALES $3.7B $4.3B $4.9B units and average unit retail (100%) (AUR) on lower promotions COST OF SALES (1) 43.1% 37.1% 35.8% Cost of Sales improvement f
Slide 15: Q1 Update
GLOBAL SALES GROWTH NET SALES $1.1B +8% Y/Y 2025 Q1 UPDATE "We delivered record first +22%Y/Y quarter net sales with 8% EMEA growth to last year. This was above our expectations and +12%Y/Y was supported by broad- APAC based growth across our AMERICAS +5%Y/Y three regions. As we navigate the current
Slide 16: 2025 Q1 Net Sales Results by Segment
2025 Q1 NET SALES RESULTS BY SEGMENT Americas Net Sales EMEA Net Sales APAC Net Sales (in $ millions) (in $ millions) (in $ millions) $1,320 +7% Y/Y $986 +12% $820 $901 $875 $224 Y/Y +5% $200 Y/Y $182 $185 $165 $41 $41 $37 $36 $33 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 20
Slide 17: 2025 Q1 Net Sales Results by Brand
2025 Q1 NET SALES RESULTS BY BRAND Total Company Net Sales Abercrombie Brands Net Sales Hollister Brands Net Sales (in $ millions) (in $ millions) (in $ millions) $1,585 +8% (4)% +22% Y/Y Y/Y Y/Y $1,209 $812 $1,134 $1,097 $773 $1,021 $630 $579 $572 $582 $548 $552 $549 $449 Q1 2024 Q2 2024 Q3 2024 Q4
Slide 18: 2025 Q1 Operating Income/Net Income per Diluted Share
2025 Q1 OPERATING INCOME/ NET INCOME PER DILUTED SHARE Operating Income Net Income per Diluted Share (in $ millions) ABOVE $256 ABOVE MARGIN OUTLOOK OUTLOOK $3.57 $1.25 TO OF 8-9% $1.45 $176 $179 $2.50 $2.50 $130 $2.14 $102 $1.59 OPERATING 12.7% 15.5% 14.8% 16.2% 9.3% MARGIN Q1 2024 Q2 2024 Q3 2024
Slide 19: 2025 Q1 Financial Position
2025 Q1 FINANCIAL POSITION CASH & EQUIVALENTS Cash and Equivalents • $511M as compared to $864M last year MARKETABLE SECURITIES • Current investments of $97M $864M $773M INCLUDES INVENTORIES $738M IMPACT OF ~$200M • $542M, up 21% from last year $683M IN SHARE • Units up 6%, costs higher primarily fr
Slide 20: 2025 Fiscal Outlook
PREVIOUS FULL YEAR OUTLOOK (1) 2025 FISCAL OUTLOOK The following outlook replaces all previous full year guidance. For fiscal 2025, the company now expects: FY 2025 CURRENT FULL YEAR OUTLOOK (1) PREVIOUS FULL YEAR OUTLOOK (2) NET SALES GROWTH IN THE RANGE OF 3% TO 6% GROWTH IN THE RANGE OF 3% TO 5%
Slide 21: Appendix
APPENDIX 21
Slide 22: 2025 Q1 Income Statement
2025 Q1 INCOME STATEMENT Thirteen Weeks Ended GAAP % OF % OF (in thousands) Q1 2025 NET SALES Q1 2024 NET SALES NET SALES $1,097,311 100.0% $1,020,730 100.0% (1) COST OF SALES 417,133 38.0% 343,273 33.6% OPERATING EXPENSE 574,862 52.4% 549,566 53.8% OTHER OPERATING LOSS (INCOME), NET 3,783 0.3% (1,9
Slide 23: Balance Sheet
BALANCE SHEET (in thousands) MAY 3, 2025 FEBRUARY 1, 2025 MAY 4, 2024 CASH AND EQUIVALENTS $510,563 $772,727 $864,195 MARKETABLE SECURITIES 97,006 116,221 — RECEIVABLES 113,311 105,324 93,605 INVENTORIES 542,059 575,005 449,267 OTHER CURRENT ASSETS 111,231 104,154 102,516 TOTAL CURRENT ASSETS $1,374
Slide 24: Statement of Cash Flows
STATEMENT OF CASH FLOWS YEAR TO DATE PERIOD ENDED (in thousands) MAY 3, 2025 MAY 4, 2024 NET CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES $(4,000) $95,010 PROCEEDS FROM MATURITIES OF MARKETABLE SECURITIES 20,000 — PURCHASES OF PROPERTY AND EQUIPMENT (50,764) (38,886) NET CASH USED FOR INVESTING
Slide 25: Share Repurchases
SHARE REPURCHASES Since the start of 2022, the Company has repurchased approximately 9 million shares for approximately $556 million. The Company has $1.1 billion remaining under its current share repurchase authorization, announced in March 2025. SHARE REPURCHASES (1) NUMBER OF AVERAGE ENDING SHARE
Slide 26: Reconciliation of GAAP to Non-GAAP Results
RECONCILIATION OF GAAP TO NON-GAAP RESULTS STATEMENT OF OPERATIONS NET SALES Q1 2025 Q1 2024 Δ% (1) GAAP $1,097,311 $1,020,730 8% (2) IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES — (208) 0% NON-GAAP CONSTANT CURRENCY BASIS $1,097,311 $1,020,522 8% OPERATING INCOME Q1 2025 Q1 2024 Δ BPS (3)
Slide 27: Abercrombie & Fitch Co.
Abercrombie & Fitch Co.
Abercrombie & Fitch Company — Q1 2025 Earnings Presentation on 6ix