Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q4 2024 Earnings Presentation
31 slides from Abercrombie & Fitch's earnings presentation, Mar 5, 2025
Slide 1: Investor Presentation: Fourth Quarter 2024
INVESTOR PRESENTATION: FOURTH QUARTER 2024
Slide 2: Table of Contents
TABLE OF CONTENTS Safe Harbor and Other Information 3 Company Overview 5 Q4 2024 and Full Year Results 15 Appendix 22 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 and related statements by management or spokespeople of A&F contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements, inclu
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 EXPECT 3% TO 5% 14% TO $4.9 GROWTH $741 15% COVID MARGIN CLOSURE IMPACT $4.3 $3.6 $3.6 $3.7 $3.7 $485 $3.1 $343 COVID CLOSURE IMPACT $127 $93 $70 $(20)
Slide 8: Company Overview
COMPANY OVERVIEW 8
Slide 9: Abercrombie Brands
PRODUCT VOICE NFL COLLECTION CUSTOMER EXPERIENCE GLOBAL NET SALES NET SALES BY CHANNEL TARGETING >10% (FY 2024) GROWTH CAGR $2.56B MILLENNIALS $2.20B $1.73B $1.46B $1.56B ~ 40% POST GRAD $1.29B STORES ~ 60% DIGITAL LOVES TO TRAVEL FASHION OBSESSED DIGITALLY-LED 278 STORES GLOBALLY FY 2019 FY 2020 FY
Slide 10: Hollister Brands
PRODUCT VOICE GRAPHICS SHOP CUSTOMER EXPERIENCE GLOBAL NET SALES NET SALES BY TARGETING CHANNEL GEN Z TEEN BACK TO GROWTH +15% (FY 2024) Y/Y W/ MILLENNIAL PARENTS $2.39B $2.16B $1.83B $2.15B $1.96B $2.08B ~ 30% DIGITAL COMING INTO THEIR OWN 70% ~ STORES COMFORT OBSESSED 511 VALUE VERSATILITY STORES
Slide 11: Always Forward Plan
ALWAYS FORWARD PLAN KEY OBJECTIVES: EXECUTE 1 GLOBAL BRAND GROWTH ACCELERATE 2 ENTERPRISE-WIDE DIGITAL REVOLUTION OPERATE WITH 3 FINANCIAL DISCIPLINE 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; SEEK EFFICIENCIES WHILE INVESTING Net Sales growth across both units 2022 2023 2024 and average unit retail (AUR) on lower promotions NET SALES $3.7B $4.3B $4.9B (100%) COST OF SALES (1) 43.1% 37.1% 35.8% Cost of Sales improvement from 2022 on lower freig
Slide 15: Full Year Update
GLOBAL SALES GROWTH FY 2024 NET SALES $4.95B +16% Y/Y 2024 FULL YEAR UPDATE +16%Y/Y “In fiscal 2024, we once EMEA again delivered on our commitments to our global +12%Y/Y customers and shareholders. APAC We entered the fiscal year AMERICAS +9%Y/Y with the goal of achieving +17%Y/Y sustainable, profi
Slide 16: 2024 Q4 Net Sales Results by Segment
2024 Q4 NET SALES RESULTS BY SEGMENT Americas Net Sales EMEA Net Sales APAC Net Sales (in $ millions) +11% (in $ millions) (in $ millions) Y/Y $1,320 $1,191 +2% $986 Y/Y $901 $820 $224 $219 (4)% $200 $182 Y/Y $165 $43 $41 $41 $36 $33 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3
Slide 17: 2024 Q4 Net Sales Results by Brand
2024 Q4 NET SALES RESULTS BY BRAND Total Company Net Sales Abercrombie Brands Net Sales Hollister Brands Net Sales (in $ millions) (in $ millions) (in $ millions) +9% Y/Y $1,585 +16% $1,453 +2% Y/Y Y/Y $1,209 $812 $1,134 $755 $773 $1,021 $698 $630 $579 $572 $582 $552 $449 Q4 2023 Q1 2024 Q2 2024 Q3
Slide 18: 2024 Q4 Operating Income / Net Income per Diluted Share
2024 Q4 OPERATING INCOME/ NET INCOME PER DILUTED SHARE Operating Income Net Income per Diluted Share (in $ millions) +20% +14.9% Y/Y Y/Y $3.57 $256 $2.97 $223 $2.50 $2.50 $176 $179 $2.14 $130 OPERATING 15.3% 12.7% 15.5% 14.8% 16.2% MARGIN Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 20
Slide 19: 2024 Q4 Financial Position
2024 Q4 FINANCIAL POSITION CASH & EQUIVALENTS • $773M as compared to $901M last year Cash and Equivalents MARKETABLE SECURITIES $901M • Current investments of $116M $864M INVENTORIES $773M $738M • $575M, up 22% from last year $683M • Units up mid-single digits, costs higher on elevated freight, more
Slide 20: Share Repurchases
SHARE REPURCHASES New $1.3 billion share repurchase authorization, which replaces prior share repurchase program authorized by the board in November 2021. Since the start of 2021, the Company has repurchased approximately 17 million shares for approximately $733 million. SHARE REPURCHASES (in thousa
Slide 21: 2025 Fiscal Outlook
2025 FISCAL OUTLOOK For fiscal 2025, the company expects: Q1 2025 Q1 OUTLOOK NET SALES GROWTH IN THE RANGE OF 4% TO 6% (1) OPERATING MARGIN IN THE RANGE OF 8% TO 9% (2) EFFECTIVE TAX AROUND 25% (3) (4) NET INCOME PER DILUTED SHARE IN THE RANGE OF $1.25 TO $1.45 (4) SHARE REPURCHASES $100 MILLION (3)
Slide 22: Appendix
APPENDIX | ee Se =
Slide 23: Income Statement
INCOME STATEMENT Q4 GAAP FULL YEAR GAAP % OF % OF % OF % OF (in thousands) Q4 2024 NET SALES Q4 2023 NET SALES 2024 NET SALES 2023 NET SALES NET SALES $1,584,917 100.0% $1,452,907 100.0% $4,948,587 100.0% $4,280,677 100.0% (1) COST OF SALES 610,907 38.5% 539,338 37.1% 1,773,926 35.8% 1,587,265 37.1%
Slide 24: Balance Sheet
BALANCE SHEET (in thousands) FEBRUARY 1, 2025 FEBRUARY 3, 2024 CASH AND EQUIVALENTS $772,727 $900,884 MARKETABLE SECURITIES 116,221 — RECEIVABLES 105,324 78,346 INVENTORIES 575,005 469,466 OTHER CURRENT ASSETS 104,154 88,569 TOTAL CURRENT ASSETS $1,673,431 $1,537,265 PROPERTY AND EQUIPMENT, NET 575,
Slide 25: Statement of Cash Flows
STATEMENT OF CASH FLOWS YEAR TO DATE PERIOD ENDED (in thousands) FEBRUARY 1, 2025 FEBRUARY 3, 2024 NET CASH PROVIDED BY OPERATING ACTIVITIES $710,376 $653,422 PURCHASES OF MARKETABLE SECURITIES (139,600) — PROCEEDS FROM MATURITIES OF MARKETABLE SECURITIES 24,800 — PURCHASES OF PROPERTY AND EQUIPMENT
Slide 26: Full Year Reconciliation of GAAP to Non-GAAP Results
FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP RESULTS STATEMENT OF OPERATIONS FY 2024 EXCLUDED FY 2024 GAAP ITEMS NON-GAAP ASSET IMPAIRMENT $— $— $— OPERATING INCOME 740,820 — 740,820 INCOME BEFORE INCOME TAXES 768,677 — 768,677 (1) INCOME TAX EXPENSE 194,661 — 194,661 NET INCOME $566,223 $— $566,223
Slide 27: Q4 Reconciliation of Constant Currency Results
Q4 RECONCILIATION OF CONSTANT CURRENCY RESULTS NET SALES Q4 2024 Q4 2023 Δ% GAAP $1,584,917 $1,452,907 9% IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — (6,138) 0% NON-GAAP CONSTANT CURRENCY BASIS $1,584,917 $1,446,769 10% OPERATING INCOME Q4 2024 Q4 2023 Δ BPS (2) GAAP $256,064 $222,8
Slide 28: Full Year Reconciliation of Constant Currency Results
FULL YEAR RECONCILIATION OF CONSTANT CURRENCY RESULTS NET SALES FY 2024 FY 2023 Δ% GAAP $4,948,587 $4,280,677 16% IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — (3,769) 0% NON-GAAP CONSTANT CURRENCY BASIS $4,948,587 $4,276,908 16% OPERATING (LOSS) INCOME FY 2024 FY 2023 Δ BPS (2) GAAP
Slide 29: Q4 Reconciliation of GAAP to Non-GAAP Results
Q4 RECONCILIATION OF GAAP TO NON-GAAP RESULTS NET SALES BY BRAND AND GEOGRAPHY Q4 2023 NON-GAAP IMPACT FROM CONSTANT CHANGES IN NON-GAAP CURRENCY FOREIGN CURRENCY CONSTANT GAAP BASIS (in thousands) Q4 2024 GAAP EXCHANGE RATES (1) CURRENCY BASIS Δ% Δ% NET SALES BY REGION: (2) AMERICAS $ 1,319,720 $ 1
Slide 30: Full Year Reconciliation of GAAP to Non-GAAP Results
FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP RESULTS NET SALES BY BRAND AND GEOGRAPHY FY 2023 NON-GAAP IMPACT FROM CONSTANT CHANGES IN NON-GAAP CURRENCY FOREIGN CURRENCY CONSTANT GAAP BASIS (in thousands) FY 2024 GAAP EXCHANGE RATES (1) CURRENCY BASIS Δ% Δ% NET SALES BY REGION: (2) AMERICAS $ 4,027,
Slide 31: Abercrombie & Fitch Co.
Abercrombie & Fitch Co.
Abercrombie & Fitch Company — Q4 2024 Earnings Presentation on 6ix