Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — William Blair 34th Annual Growth Stock Conference 2014
12 slides from Abercrombie & Fitch's conference presentation, Jun 12, 2014
Slide 1: William Blair 34th Annual Growth Stock Conference, June 11, 2014
WILLIAM BLAIR 34TH ANNUAL GROWTH STOCK CONFERENCE JUNE 11, 2014
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: First Quarter Adjusted P&L Summary
FIRST QUARTER ADJUSTED P&L SUMMARY 2014 2013 % NET SALES $822,428 $838,769 -2% GROSS PROFIT $511,659 $553,166 -8% GROSS PROFIT RATE 62.2% 65.9% OPERATING EXPENSE $531,187 $567,905 -6% OTHER OPERATING INCOME, NET -$3,620 -$818 OPERATING LOSS -$15,908 -$13,921 OPERATING MARGIN -1.9% -1.7% NET LOSS -$1
Slide 4: U.S. Chain Store + DTC Comparable Sales
U.S. CHAIN STORE + DTC COMPARABLE SALES* 17% 13% 12% 16% 4% 7% 7% 7% 1% 8% 8% 1% -15% -11% -6% -14% Q2 Q2 Q2 Q2Q4 2010 2011 2012 2013 Q4 Q4 Q4Q1 -20% -15% -10% -5% 5% 10% 15% 20% 0% Q1 Q1 Q1Q3 Q3 Q3 Q3 *U.S. CHAIN INCLUDES OUTLET STORES AND EXCLUEDS FLAGSHIP AND TOURIST STORES Q1 2014 -2%
Slide 5: Financial Objective
FINANCIAL OBJECTIVE OPERATING MARGIN EXPANSION DISCIPLINED CAPITAL ALLOCATION SIGNIFICANT ROIC IMPROVEMENT
Slide 6: Operating Margin Expansion
OPERATING MARGIN EXPANSION INCREASING DTC PENETRATION PROFITABLE INTERNATIONAL GROWTH IMPROVING PRODUCTIVITY IN U.S. STORES REDUCING EXPENSES EXPANDING OPERATING MARGIN
Slide 7: Hollister Storefront Remodel
HOLLISTER STOREFRONT REMODEL PORCH STOREFRONT NEW VIDEO STOREFRONT
Slide 8: Video - Hollister Store Fronts
VIDEO 1 ‐ Hollister Store Fronts
Slide 9: Operating Margin Expansion
OPERATING MARGIN EXPANSION INCREASING DTC PENETRATION PROFITABLE INTERNATIONAL GROWTH IMPROVING PRODUCTIVITY IN U.S. STORES REDUCING EXPENSES EXPANDING OPERATING MARGIN
Slide 10: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION MINIMUM 30% ROI HURDLE PRIORITIZING DTC AND IT INVESTMENTS SHORT - TERM CAPITAL ALLOCATION MAINTAIN CAPEX AT ~$200M PER YEAR RETURNING CASH TO SHAREHOLDERS
Slide 11: Full Year Guidance
FULL YEAR GUIDANCE FULL YEAR DILUTED EARNINGS PER SHARE IN THE RANGE OF $2.15 - $2.35 FULL YEAR TOTAL COMPARABLE SALES IN THE RANGE OF DOWN 3% - 4% GROSS MARGIN RATE DOWN SLIGHTLY TO FISCAL 2013 FULL YEAR TAX RATE OF APPROXIMATELY 35% WEIGHTED AVERAGE SHARE COUNT OF APPROXIMATELY 74.5 MILLION SHARES
Slide 12: Abercrombie & Fitch brands
Abercrombi ae ILLY HICK ae wtitch abercrombie GILT HICKS HOLLISTER ALIFORNI,
Abercrombie & Fitch — William Blair 34th Annual Growth Stock Conference 2014 on 6ix