Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Jefferies Investor Conference 2015
21 slides from Abercrombie & Fitch's conference presentation, Jun 25, 2015
Slide 1: Jefferies Investor Conference June 23, 2015
JEFFERIES INVESTOR CONFERENCE JUNE 23, 2015
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: Strategic Actions
STRATEGIC ACTIONS • BRAND POSITIONING • CUSTOMER CENTRICITY • COMPELLING AND TREND-RIGHT ASSORTMENTS • CHANNEL OPTIMIZATION AND BRAND REACH • CONTINUOUS PROFIT IMPROVEMENT • ORGANIZATION 3
Slide 4: Customer Centricity: Store Experience and New Formats
STRATEGIC ACTIONS | CUSTOMER CENTRICITY 4 • STORE EXPERIENCE • NEW STORE FORMATS • SEAMLESS EXPERIENCE ACROSS PLATFORMS AND CHANNELS • SIMPLER AND CLEARER PRICING • STORE MANAGEMENT INCENTIVE AND TRAINING PLANS
Slide 5: Customer Centricity: Site Enhancements and Omnichannel
STRATEGIC ACTIONS | CUSTOMER CENTRICITY 5 • SITE ENHANCEMENTS AND MOBILE OPTIMIZATION • OMNICHANNEL CAPABILITIES ORDER IN STORE All U.S. END OF Q2 2015 END OF 2015 NOW SHIP FROM STORE 50% of U.S. SHIP FROM STORE 70% of U.S. SHIP FROM STORE U.K. and CANADA CLICK AND COLLECT U.K. RETURN IN STORE EUROP
Slide 6: Brand Reach: Select International Growth
STRATEGIC ACTIONS | BRAND REACH • SELECT INTERNATIONAL GROWTH BRAND LOCATION Hollister Dubai Mall, Dubai, UAE A&F 360 Mall, Kuwait City, Kuwait Hollister Lalaport Fujimi, Fujimi, Japan 6 Dubai Mall, Dubai • OUTLETS BRAND LOCATION A&F Outlet of Savannah, Pooler, GA A&F Edinburgh Premium Outlets, Edin
Slide 7: Brand Reach
STRATEGIC ACTIONS | BRAND REACH 7 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 ASOS ASOS INTER PARFUMS NEW WHOLESALE INTER PARFUMS NEW FRAGRANCES Q4 2014
Slide 8: Channel Optimization
STRATEGIC ACTIONS | CHANNEL OPTIMIZATION • CLOSED OVER 25% OF U.S. STORES SINCE 2010 • EXPECT TO CLOSE APPROXIMATELY 60 STORES IN FISCAL 2015 • NEARLY 70% OF U.S. LEASES EXPIRE BY THE END OF 2017 • CONTINUED STRONG EUROPEAN PRODUCTIVITY AND PROFITABILITY 8 64 134 178 223 274 274 60 0 50 100 150 200
Slide 9: Continuous Profit Improvement
STRATEGIC ACTIONS | CONTINUOUS PROFIT IMPROVEMENT • COMPLETION OF PROFIT IMPROVEMENT INITIATIVE WITH $250 MILLION OF ANNUAL SAVINGS CAPTURED • IMPLEMENTATION OF CONTINUOUS PROFIT IMPROVEMENT • DISCIPLINED AND FOCUSED INVESTMENTS 9 21% 34% 45% IT/ DTC NEW STORES STORE ENHANCEMENTS FISCAL 2015 CAPITAL
Slide 10: Organization
STRATEGIC ACTIONS | ORGANIZATION • BRANDED ORGANIZATION COMPLETED IN FIRST QUARTER • CLEAR MEASUREMENT AND ACCOUNTABILITY AT THE BRAND LEVEL • SUPPLEMENTED DESIGN, MERCHANDISING AND PLANNING TEAMS 10
Slide 11: Hollister
STRATEGIC ACTIONS | HOLLISTER 11
Slide 12: Brand Positioning
STRATEGIC ACTIONS | BRAND POSITIONING 12 • DEFINE THE MODERN BRAND • ALIGN CUSTOMER INTERACTIONS • EVOLVE BRAND MARKETING
Slide 13: Customer Centricity: Store Experience and New Store Formats
STRATEGIC ACTIONS | CUSTOMER CENTRICITY • STORE EXPERIENCE – FAST, EASY AND MORE ENJOYABLE SHOPPING EXPERIENCE • NEW STORE FORMATS – HOLLISTER STORE FRONT – INTERIOR RETRO-FIT PROTOTYPES 13
Slide 14: Customer Centricity: Interior Retro-Fit Prototypes
STRATEGIC ACTIONS | CUSTOMER CENTRICITY INTERIOR RETRO-FIT PROTOTYPES – POLARIS – COLUMBUS, OH – MAYFAIR – MILWAUKEE, WI – WEST TOWN – KNOXVILLE, TN – BREA – BREA, CA – FREEHOLD RACEWAY – FREEHOLD, NJ 14
Slide 15: Customer Centricity: Site Enhancements and Mobile Optimization
STRATEGIC ACTIONS | CUSTOMER CENTRICITY 15 • SITE ENHANCEMENTS AND MOBILE OPTIMIZATION • INTEGRATED CUSTOMER REVIEWS
Slide 16: Customer Centricity
STRATEGIC ACTIONS | CUSTOMER CENTRICITY 16 • STORE EXPERIENCE • NEW STORE FORMATS • SEAMLESSEXPERIENCE ACROSS PLATFORMS AND CHANNELS • SIMPLER AND CLEARER PRICING • STORE MANAGEMENT INCENTIVE AND TRAINING PLANS
Slide 17: Compelling Assortment
STRATEGIC ACTIONS | COMPELLING ASSORTMENT 17 • BALANCING FASHION RELEVANCE, QUALITY AND VALUE • BUILDING TAILORED ASSORTMENTS BY CHANNEL
Slide 18: Compelling Assortment: Category Offerings and Fits
STRATEGIC ACTIONS | COMPELLING ASSORTMENT • BALANCING CATEGORY OFFERINGS • EXTENDING SIZE RANGES AND EVOLVING FITS • ENHANCING EXISTING PROCESSES 18
Slide 19: Strategic Actions Summary
STRATEGIC ACTIONS • BRAND POSITIONING • CUSTOMER CENTRICITY • COMPELLING AND “TREND RIGHT” ASSORTMENTS • CHANNEL OPTIMIZATION AND BRAND REACH • CONTINUOUS PROFIT IMPROVEMENT • ORGANIZATION 19
Slide 20: 2015 Outlook
2015 OUTLOOK* • CONTINUED HEADWINDS FROM FOREIGN CURRENCY EXCHANGE RATES • CONTINUED SEQUENTIAL COMPARABLE SALES IMPROVEMENT INTO THE SECOND QUARTER AND THE SECOND HALF OF THE FISCAL YEAR • ADJUSTED GROSS MARGIN RATE FLAT TO SLIGHTLY UP • ADJUSTED OPERATING EXPENSES NOW TO BE DOWN APPROXIMATELY $40
Slide 21: Slide 21
Abercrombie & Fitch — Jefferies Investor Conference 2015 on 6ix