Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q2 2017 Earnings Presentation
12 slides from Abercrombie & Fitch's earnings presentation, Aug 25, 2017
Slide 1: Investor Presentation 2017 Second Quarter
INVESTOR PRESENTATION 2017 SECOND 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: Q2 P&L Summary
3 Q2 P&L SUMMARY 2017 % OF NET SALES 2016 % OF NET SALES NET SALES $779,321 100.0% $783,160 100.0% GROSS PROFIT 460,895 59.1% 477,107 60.9% OPERATING EXPENSE 484,783 62.2% 500,992 64.0% OTHER OPERATING INCOME, NET (2,799) (0.4)% (13,080) (1.7)% OPERATING LOSS (21,089) (2.7)% (10,805) (1.4)% INTEREST
Slide 4: Q2 Adjusted P&L Summary
4 Q2 ADJUSTED P&L SUMMARY* * The Q2 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 $779,321 100.0% $783,160 100.0% GROSS PROFIT 460,895 5
Slide 5: Excluded Items (Pre-Tax)
5 EXCLUDED ITEMS (PRE-TAX) 2017 Q1 Q2 YEAR TO DATE ASSET IMPAIRMENT $— $6,135 $6,135 TOTAL $— $6,135 $6,135 2016 Q1 Q2 YEAR TO DATE CLAIMS SETTLEMENT BENEFITS $— $(12,282) $(12,282) ASSET IMPAIRMENT — 6,356 6,356 TOTAL $— $(5,926) $(5,926)
Slide 6: Q2 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. Q2 2017 COMPARABLE SALES* Q1 Q2 YTD TOTAL COMPANY (3)% (1)% (2)% BRAND: HOLLISTER 3% 5% 4% ABERCROMBIE (1) (10)
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 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 (2)% 0% 1% 3
Slide 8: Q2 2017 Sales Mix
8 * Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. Q2 2017 SALES MIX* INTERNATIONAL 39.7% UNITED STATES 60.3% INTERNATIONAL 39.0% UNITED STATES 61.0% HOLLISTER 57.3% ABERCROMBIE 42.7% HOLLISTER 57.0% ABERCROMBIE 43.0% Q2 YTD BRAN D GEOGRAPH Y
Slide 9: Q2 Adjusted Operating Expense
9 Q2 ADJUSTED OPERATING EXPENSE* * Q2 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: Q2 Store Count Activity
10 Q2 STORE COUNT ACTIVITY (1) Excludes five international franchise stores as of July 29, 2017 and April 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 a
Slide 11: Outlook for Fiscal 2017
11 OUTLOOK FOR FISCAL 2017, THE COMPANY EXPECTS: • COMPARABLE SALES TO BE APPROXIMATELY FLAT, AND FLAT TO UP SLIGHTLY IN THE SECOND HALF OF THE YEAR • FOREIGN CURRENCY TO BE A SLIGHT BENEFIT TO SALES AND OPERATING INCOME • A GROSS PROFIT RATE DOWN COMPARED TO LAST YEAR'S RATE OF 61.0%, AND APPROXIMA
Slide 12: Abercrombie – Est. 1892
EST. 1892 Abercrombie