Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q3 2013 Earnings Presentation
13 slides from Abercrombie & Fitch's earnings presentation, Nov 22, 2013
Slide 1: Investor Presentation 2013 Third Quarter
1 INVESTOR PRESENTATION 2013 THIRD QUARTER
Slide 2: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 A&F cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this presentation or made by management or spokespeople of A&F involve risk
Slide 3: Q3 Adjusted P&L Summary
3 Q3 ADJUSTED P&L SUMMARY 20122013(1) % OF NET SALES UNAUDITED UNAUDITED (RESTATED) % OF NET SALES NET SALES GROSS PROFIT OPERATING EXPENSE OTHER OPERATING INCOME, NET OPERATING INCOME INTEREST EXPENSE, NET INCOME BEFORE TAXES TAX EXPENSE NET INCOME NET INCOME PER SHARE BASIC DILUTED WEIGHTED-AVERAG
Slide 4: Impairment & Other Charges (Pre-Tax)
Q1 Q2 Q3 YTD2013 $44,708 $43,571 $43,571 $7,590 $10,165 $95,869 $98,444 $44,708 $2,575 $2,575 GILLY HICKS IMPAIRMENT & OTHER CHARGES OTHER IMPAIRMENT CHARGES PROFIT IMPROVEMENT INITIATIVE CHARGES TOTAL - - - - - - IMPAIRMENT & OTHER CHARGES (PRE-TAX) 3
Slide 5: Q3 Comparable Sales and Sales Mix
TOTAL COMPANY* GEOGRAPHIC* US INTERNATIONAL BRAND* ABERCROMBIE & FITCH ABERCROMBIE KIDS HOLLISTER TOTAL COMPANY* GEOGRAPHIC* US INTERNATIONAL BRAND* ABERCROMBIE & FITCH ABERCROMBIE KIDS HOLLISTER -14% -14% -15% -13% -4% -16% -13% -13% -13% -11% -4% -15% Q3 COMPARABLE SALES US 65.3% US 64.1% INTERNAT
Slide 6: Sales and Operating Income by Segment
(1) Operating Income excludes the charges set out on page 3. A reconciliation between GAAP and non-GAAP results is included as an appendix to the presentation. (2) Operating Income for U.S. Stores and International Stores is reported on an aggregate four-wall basis, and excludes pre-opening costs. A
Slide 7: Q3 Adjusted Operating Expense
2013(1) 2012% OF NET SALES % OF NET SALESTHIRD QUARTER $196,610 $189,49219.0% 16.2% 280 120 400 110 510 283,982 307,45027.5% 26.3% 480,593 496,94246.5% 42.5% 119,799 123,38111.6% 10.5% $600,392 $620,32358.1% 53.0% STORE OCCUPANCY(2) ALL OTHER(3) STORES & DISTRIBUTION MARKETING, GENERAL & ADMINISTRAT
Slide 8: Share Repurchases
SHARE REPURCHASES 349.7 - - - - - -2,033.0 $16,305 $46.63 3,300.0 $161,215 $48.85 $48.94 $48.60 $99,501 $104,2833,025.2 $34.47 $56,166 $45.94 $115,806 $321,664 $42.62 1,222.7 2,382.7 7,547.9 SHARES REPURCHASED SHARES REPURCHASEDCOST COST AVERAGE COST AVERAGE COST FY 2013 FY 2012 FIRST QUARTER SECOND
Slide 9: International Hollister Store Count - Cumulative
INTERNATIONAL HOLLISTER STORE COUNT - CUMULATIVE YEAR END Q3 END 2007 3 3 6 9 6 9 12 12 12 26 29 31 77 107 122 11 17 18 5 8 10 8 12 12 1 1 1 2 3 3 1 2 2 2 2 2 4 7 11 3 6 6 2 4 6 2 2 1 1 2 2 1 1 19 38 4 3 3 3 10 18 1 1 2008 2009 2010 2012 20132011HOLLISTER CANADA UK GERMANY ITALY SPAIN IRELAND SWEDEN
Slide 10: Q3 Store Openings
Q3 STORE OPENINGS CITY DATECENTERBRAND HOLLISTER HOLLISTER HOLLISTER A&F / KIDS HOLLISTER HOLLISTER HOLLISTER A&F PARLY 2 LALAPORT YOKOHAMA OUDE GRACHT SICILIA OUTLET VILLAGE SICILIA OUTLET VILLAGE BEAUGRENELLE ALMA CHEONGDAM-DONG LE CHESNAY, FRANCE YOKOHAMA, JAPAN UTRECHT, NETHERLANDS AGIRA ENNON,
Slide 11: 2013 Guidance Updates
*Guidance for the full year does not include charges related to the Company’s restructuring plans for the Gilly Hicks brand, other impairment and store closure charges, charges related to the implementation of the Company’s profit improvement initiative, or the effect of any additional share repurch
Slide 12: Q3 Store Count Activity
Q3 STORE COUNT ACTIVITY * End of Q3 2013 includes 28 Gilly Hicks stores, 20 in the U.S. and eight in Europe. * Asia includes Australia. TOTAL U.S. CANADA EUROPE ASIAALL BRANDS* HOLLISTER CO. A&F abercrombie kids START OF Q3 2013 OPENINGS CLOSINGS END OF Q3 2013 START OF Q3 2013 OPENINGS CLOSINGS END
Slide 13: GAAP to Non-GAAP Reconciliation
13 (1) The store-related asset impairment charges relate to stores whose asset carrying value exceeded the fair value. For the thirteen week period ended November 2, 2013, the charge was primarily associated with 23 Abercrombie & Fitch, three abercrombie kids and 70 Hollister stores. (2) For the thi