Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q3 2017 Earnings Presentation
13 slides from Abercrombie & Fitch's earnings presentation, Nov 20, 2017
Slide 1: Investor Presentation 2017 Third Quarter
INVESTOR PRESENTATION 2017 THIRD QUARTER
Slide 2: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
2 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 ri
Slide 3: Q3 P&L Summary
3 Q3 P&L SUMMARY 2017 % OF NET SALES 2016 % OF NET SALES NET SALES $859,112 100.0% $821,734 100.0% GROSS PROFIT 526,627 61.3% 510,739 62.2% OPERATING EXPENSE 503,957 58.7% 491,916 59.9% OTHER OPERATING INCOME, NET (70) 0.0% (822) (0.1)% OPERATING INCOME 22,740 2.6% 19,645 2.4% INTEREST EXPENSE, NET
Slide 4: Q3 Adjusted P&L Summary
4 Q3 ADJUSTED P&L SUMMARY* * The Q3 Adjusted P&L Summary for the current and prior periods are presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out on page 5. 2017 % OF NET SALES 2016 % OF NET SALES NET SALES $859,112 100.0% $821,734 100.0% GROSS PROFIT 526,627 6
Slide 5: Excluded Items (Pre-Tax)
5 EXCLUDED ITEMS (PRE-TAX) 2017 Q1 Q2 Q3 YEAR TO DATE LEGAL CHARGES $— $— $11,070 $11,070 ASSET IMPAIRMENT — 6,135 3,480 9,615 TOTAL $— $6,135 $14,550 $20,685 2016 Q1 Q2 Q3 YEAR TO DATE CLAIMS SETTLEMENT BENEFITS $— $(12,282) $— $(12,282) ASSET IMPAIRMENT — 6,356 — 6,356 INDEMNIFICATION RECOVERY — —
Slide 6: Q3 2017 Comparable Sales
6 * Comparable sales are calculated on a constant currency basis. Sales include store and DTC sales. (1) Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. Q3 2017 COMPARABLE SALES* Q1 Q2 Q3 YTD TOTAL COMPANY (3)% (1)% 4% 0% BRAND: HOLLISTER 3% 5% 8% 6% ABERCROMBIE (
Slide 7: Comparable Sales Trend by Brand
7 * Comparable sales are calculated on a constant currency basis. Sales include store and DTC sales. (1) Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. COMPARABLE SALES TREND BY BRAND* HOLLISTER ABERCROMBIE TOTAL COMPANY Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 0% 1% 3% 5%
Slide 8: Q3 2017 Sales Mix
8 * Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. Q3 2017 SALES MIX* INTERNATIONAL 35.4% UNITED STATES 64.6% INTERNATIONAL 37.6% UNITED STATES 62.4% HOLLISTER 59.1% ABERCROMBIE 40.9% HOLLISTER 57.8% ABERCROMBIE 42.2% Q3 YTD BRAN D GEOGRAPH Y
Slide 9: Q3 Adjusted Operating Expense
9 Q3 ADJUSTED OPERATING EXPENSE* * Q3 Adjusted Operating Expense for the current and prior periods are presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out of page 5. (1) Includes rent, other landlord charges, utilities, depreciation and other occupancy expense.
Slide 10: Q3 Store Openings
10 Q3 STORE OPENINGS BRAND CENTER CITY DATE DOMESTI C A&F Westfield Century City Los Angeles, CA 8/25/2017 OUTLE T A&F Florentia Village Tianjin, China 9/22/2017
Slide 11: Q3 Store Count Activity
11 Q3 STORE COUNT ACTIVITY (1) Excludes five international franchise stores as of October 28, 2017 and July 29, 2017. (2) Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. Locations with abercrombie kids carveouts within Abercrombie & Fitch stores are represented as
Slide 12: Outlook for the Fourth Quarter of Fiscal 2017
12 OUTLOOK FOR THE FOURTH QUARTER OF FISCAL 2017, THE COMPANY EXPECTS: • COMPARABLE SALES TO BE UP LOW-SINGLE DIGITS, AND NET SALES TO BE UP MID- TO HIGH-SINGLE DIGITS, INCLUDING BENEFITS FROM THE 53RD WEEK AND CHANGES IN FOREIGN CURRENCY EXCHANGE RATES • THE 53RD WEEK TO BENEFIT NET SALES BY APPROX
Slide 13: Abercrombie Est. 1892
EST. 1892 Abercrombie