Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q1 2018 Earnings Presentation
14 slides from Abercrombie & Fitch's earnings presentation, Jun 4, 2018
Slide 1: Investor Presentation 2018 First Quarter
INVESTOR PRESENTATION 2018 FIRST QUARTER
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: Q1 P&L Summary
Q1 P&L SUMMARY 2018 % OF NET SALES 2017 % OF NET SALES NET SALES $730,899 100.0% $661,099 100.0% GROSS PROFIT 442,345 60.5% 398,925 60.3% OPERATING EXPENSE 487,108 66.6% 470,552 71.2% OTHER OPERATING INCOME, NET (2,560) (0.4)% (1,686) (0.3)% OPERATING LOSS (42,203) (5.8)% (69,941) (10.6)% INTEREST E
Slide 4: Q1 Adjusted P&L Summary
Q1 ADJUSTED P&L SUMMARY 2018 (1) % OF NET SALES 2017 % OF NET SALES NET SALES $730,899 100.0% $661,099 100.0% GROSS PROFIT 442,345 60.5% 398,925 60.3% OPERATING EXPENSE 481,508 65.9% 470,552 71.2% OTHER OPERATING INCOME, NET (2,560) (0.4)% (1,686) (0.3)% OPERATING LOSS (36,603) (5.0)% (69,941) (10.6
Slide 5: Q1 Non-GAAP Reconciliation
Q1 NON-GAAP RECONCILIATION GAAP EXCLUDED NON-GAAP 2018 ITEMS 2018 MARKETING, GENERAL & ADMINISTRATIVE (1) $124,897 $5,600 $119,297 OPERATING LOSS (42,203) (5,600) (36,603) LOSS BEFORE TAXES (45,221) (5,600) (39,621) TAX BENEFIT (2) (3,713) (1,541) (2,172) NET LOSS $(42,461) $(4,059) $(38,402) NET LO
Slide 6: Q1 2018 Sales
Q1 2018 SALES* BRAND COMPARABLE SALES (1) TOTAL COMPANY 5% ABERCROMBIE 42.0% HOLLISTER BRAND: 58.0% HOLLISTER 6% ABERCROMBIE 3% GEOGRAPHY GEOGRAPHY: INTERNATIONAL UNITED STATES 8% 38.6% UNITED STATES INTERNATIONAL 0% 61.4% * Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids
Slide 7: Comparable Sales Trend by Brand
COMPARABLE SALES TREND BY BRAND* 12% 11% 10% 8% 8% 9% 6% 5% 6% 5% 4% 5% 3% 4% 3% 2% 0% (2)% (1)% (3)% (2)% (4)% (6)% (8)% (7)% (10)% (10)% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 HOLLISTER ABERCROMBIE (1) TOTAL COMPANY * Comparable sales are calculated on a constant currency basis and exclude revenue other th
Slide 8: Q1 Operating Expense
Q1 OPERATING EXPENSE GAAP % OF NET NON-GAAP % OF NET GAAP % OF NET GAAP NON-GAAP 2018 SALES 2018 (1) SALES 2017 SALES Δ bps (2) Δ bps (2) STORE OCCUPANCY (3) $162,214 22.2% $162,214 22.2% $166,822 25.2% (300) (300) ALL OTHER (4) 198,941 27.2% 198,941 27.2% 193,107 29.2% (200) (200) STORES AND DISTRI
Slide 9: Q1 Share Repurchases
Q1 SHARE REPURCHASES 2018 2017 SHARES COST AVERAGE SHARES COST AVERAGE REPURCHASED COST REPURCHASED COST Q1 778.2 $18,670 $23.99 — — — 9
Slide 10: Q1 Store Openings
Q1 STORE OPENINGS BRAND CENTER CITY DATE Hollister Opry Mills Nashville, TN 3/30/2018 U.S. 10
Slide 11: Q1 Store Count Activity
Q1 STORE COUNT ACTIVITY UNITED MIDDLE ALL BRANDS TOTAL STATES CANADA EUROPE ASIA EAST START OF Q1 2018 868 679 18 117 46 8 NEW 1 1 — — — — CLOSED — — — — — — END OF Q1 2018 869 680 18 117 46 8 HOLLISTER (1) START OF Q1 2018 538 394 11 100 28 5 NEW 1 1 — — — — CLOSED — — — — — — END OF Q1 2018 539 39
Slide 12: Outlook for Fiscal 2018
OUTLOOK FOR FISCAL 2018, THE COMPANY NOW EXPECTS: • COMPARABLE SALES TO BE UP IN THE RANGE OF 2% TO 4% • NET SALES TO BE UP IN THE RANGE OF 2% TO 4%, WITH NET SALES IN THE SECOND QUARTER TO BE UP HIGH-SINGLE DIGITS, INCLUDING BENEFITS FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES AND THE CALENDAR
Slide 13: Full Year Outlook
FULL YEAR OUTLOOK PREVIOUS OUTLOOK CURRENT OUTLOOK NET SALES (1) UP LOW-SINGLE DIGITS UP 2% TO 4% COMPARABLE SALES (2) UP LOW-SINGLE DIGITS UP 2% TO 4% GROSS PROFIT (3) UP SLIGHTLY UP SLIGHTLY OPERATING EXPENSE (4) UP APPROXIMATELY 1% UP APPROXIMATELY 2% WEIGHTED AVERAGE DILUTED SHARES APPROXIMATELY
Slide 14: New York
Abercrombie & Fitch NEW YORK