Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q3 2016 Earnings Presentation
12 slides from Abercrombie & Fitch's earnings presentation, Nov 18, 2016
Slide 1: Investor Presentation 2016 Third Quarter
INVESTOR PRESENTATION 2016 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 Adjusted P&L Summary
3 Q3 ADJUSTED P&L SUMMARY* * The Q3 Adjusted P&L Summary for the current and prior periods is presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out on page 4. 2016 % OF NET SALES 2015 % OF NET SALES NET SALES $821,734 100.0% $878,572 100.0% GROSS PROFIT 510,739 62
Slide 4: Excluded Items (Pre-Tax)
4 EXCLUDED ITEMS (PRE-TAX) 2016 Q1 Q2 Q3 YEAR TO DATE CLAIMS SETTLEMENT BENEFITS $— $(12,282) $— $(12,282) ASSET IMPAIRMENT — 6,356 — 6,356 INDEMNIFICATION RECOVERY — — (6,000) (6,000) TOTAL $— $(5,926) $(6,000) $(11,926) 2015 Q1 Q2 Q3 YEAR TO DATE INVENTORY WRITE-DOWN (RECOVERY) $26,861 $(2,621) $(
Slide 5: Q3 2016 Comparable Sales
5 * 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 2016 COMPARABLE SALES* Q1 Q2 Q3 YTD TOTAL COMPANY (4)% (4)% (6)% (5)% BRAND: ABERCROMBIE (1) (8)% (7)% (14)%
Slide 6: Q3 2016 Sales Mix
6 * Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. Q3 2016 SALES MIX* INTERNATIONAL 35.3% UNITED STATES 64.7% INTERNATIONAL 37.3% UNITED STATES 62.7% HOLLISTER 56.4% ABERCROMBIE 43.6% HOLLISTER 54.4% ABERCROMBIE 45.6% Q3 YTD BRAN D GEOGRAPH Y
Slide 7: Q3 Adjusted Operating Expense
7 Q3 ADJUSTED OPERATING EXPENSE* * Q3 Adjusted Operating Expense for the current and prior periods is presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out of page 4. (1) Includes rent, other landlord charges, utilities, depreciation and other occupancy expense. (
Slide 8: Share Repurchases
8 SHARE REPURCHASES FY 2016 FY 2015 SHARES REPURCHASED COST AVERAGE COST SHARES REPURCHASED COST AVERAGE COST Q1 — — — — — — Q2 — — — — — — Q3 — — — 2,460.5 $50,029 $20.33 Q4 — — — FULL YEAR — — — 2,460.5 $50,029 $20.33
Slide 9: Q3 Store Openings
9 Q3 STORE OPENINGS BRAND CENTER CITY DATE DOMESTI C Hollister International Market Place Honolulu, HI 9/16/16 Hollister Queens Center Queens, NY 10/28/16 INTERN ATIONA L A&F Deji Plaza Nanjing, China 8/27/16 OUTLE T Hollister Florentia Village Tianjin, China 9/15/16 A&F Opry Mills Nashville, TN 9/3
Slide 10: Q3 Store Count Activity
10 Q3 STORE COUNT ACTIVITY (1) Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. Locations with abercrombie kids carveouts within Abercrombie & Fitch stores are represented as a single store count. Excludes one international franchise store as of October 29, 2016 an
Slide 11: Outlook
11 OUTLOOK* FOR THE FOURTH QUARTER OF FISCAL 2016, THE COMPANY EXPECTS: • COMPARABLE SALES TO BE CHALLENGING, BUT MODESTLY IMPROVED FROM THE THIRD QUARTER • CONTINUED ADVERSE IMPACT FROM FOREIGN CURRENCY ON SALES AND OPERATING INCOME • A GROSS MARGIN RATE DOWN SLIGHTLY TO LAST YEAR'S ADJUSTED NON-GA
Slide 12: Est. 1892 Abercrombie
EST. 1892 Abercrombie