Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q1 2011 Earnings Presentation
17 slides from Abercrombie & Fitch's earnings presentation, May 23, 2011
Slide 1: Investor Presentation 2011 First Quarter
Investor Presentation 2011 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 of A&F involve risks and uncertaint
Slide 3: Q1 P&L Summary
Q1 P&L Summary Unaudited Unaudited ot % of anni Net Sales ann Net Sales Net Sales $ 836674 100.0% $687,804 = 100.0% Cost of Goods Sold 293013 __ 35.0% 256,388 37.3% Gross Profit 543,661 65.0% 431416 62.7% Operating Expense 506,752 60.6% 451,042 65.6% Other Operating Income, Het (1,836) 0.2% (31 0.1%
Slide 4: Sales Analysis Versus Prior Year Sales Mix
Sales Analysis Versus Prior Year Sales Mix
Slide 5: Operating Expense
Operating Expense ‘% of %ot 2011 Net Sales 2010 Net Sales _A_ bps First Quarter Store Occupancy « $ 187,340 20.0% = $ 158,657 23.1% (310) AL Other i 231,761 2.1% 195,753 28.5% (80) ‘Stores and Distribution 399,101 41.1% 354,410 51.5% (380) Marketing, General & Administrative 107,651 12.9% 96,632 14.
Slide 6: Inventory Analysis
Inventory Analysis As of As of April 30,2011 _May1,2010_ _% A Inventory on Hand $ 304,108 $= 284,667 + «7% Inventory in Transit 54,263 31,780 + 1% Total Inventory $358,371 = $ 316.447 «+ 13%.
Slide 7: Liquidity
Liquidity As of As of April 30,2011 May 1, 2010 Cash and Cash Equivalents $ 741,823 $ 590,511 Credit Agreement: Borrowings $ 44,309 $ 48,995, Outstanding Letters of Credit _$ 123 $45,600 "Net" Cash Position $697,391 $495,916 ARF I abt | a HCo.
Slide 8: Share Repurchases
Share Repurchases FY 2011 FY 2010 ‘Shares Average Shares Wverage Repurchased Cost Cost Repurchased Cost Cost Fiscal Quarter a 4208 $ 25.489 $ 5940 : - 7 - - : i) : 6681 $ 29,207 $43.65 a4 - 9126 $ 46.951 $ 51.45 TOTAL 428 $ 25469 $ 59.40 15817 $76,158 $48.15 Remaining shares authorized for future re
Slide 9: Q2 Outlook
Q2 Outlook Gross Margin Rate erosion versus 2010 Sales Targeting mid single digit comparable store sales growth Operating Expenses Significantly less expense leverage than Q1 Store Occupancy: Approximately mid $170 millions All Other Stores and Distribution: Modest deleverage compared to last year's
Slide 10: International Hollister Store Count - Cumulative
International Hollister Store Count - Cumulative
Slide 11: Confirmed Flagship Openings
Confirmed Flagship Openings
Slide 12: Appendix: EPS (Unaudited)
Appendix: EPS (Unaudited) Net Income (Loss) Per Share from Continuing Operations Basic Diluted Net Loss Per Share from Discontinued Operations Basic Diluted Net Income (Loss) Per Share Basic Diluted Weighted-Average Shares Outstanding Basic Diluted AF | af | ai 2011 $ 028 $ 0.27 $ 001 $ 0.01 $ 023 $
Slide 13: Appendix: Q1 Store Count Activity Store Count - By Brand and Region
Appendix: Q1 Store Count Activity Store Count - By Brand and Region
Slide 14: Appendix: Accounting for Share-Based Compensation
Appendix: Accounting for Share- Based Compensation
Slide 15: Equity vs. Liability Classified Awards
Equity vs. Liability Classified Awards Equity - fair value is determined and fixed on the date of grant and is expensed over the award's vesting period Liability - For liability classified awards, fair value is determined on the date of grant and re-measured each reporting date thereafter, until the
Slide 16: Liability Accounting Illustration
Liability Accounting Illustration
Slide 17: Amendment and Restatement of 2007 LTIP
Amendment and Restatement of 2007 LTIP Will be asking shareholders to approve an additional 3,000,000 shares at our 2011 Annual Shareholder Meeting Allow for continued granting equity-based compensation to associates Significantly reduce the potential for liability accounting