Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q4 2013 Earnings Presentation
16 slides from Abercrombie & Fitch's earnings presentation, Feb 27, 2014
Slide 1: Investor Presentation 2013 Fourth Quarter
1 INVESTOR PRESENTATION 2013 FOURTH 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: Q4 Adjusted P&L Summary
3 Q4 ADJUSTED P&L SUMMARY * 20122013 % OF NET SALES UNAUDITED UNAUDITED % OF NET SALES NET SALES GROSS PROFIT OPERATING EXPENSE OTHER OPERATING INCOME, NET OPERATING INCOME INTEREST EXPENSE, NET INCOME BEFORE TAXES TAX EXPENSE NET INCOME NET INCOME PER DILUTED SHARE WEIGHTED-AVERAGE DILUTED SHARES O
Slide 4: Full Year Adjusted P&L Summary
4 FULL YEAR ADJUSTED P&L SUMMARY * 20122013 % OF NET SALES UNAUDITED UNAUDITED % OF NET SALES NET SALES GROSS PROFIT OPERATING EXPENSE OTHER OPERATING INCOME, NET OPERATING INCOME INTEREST EXPENSE, NET INCOME BEFORE TAXES TAX EXPENSE NET INCOME NET INCOME PER DILUTED SHARE WEIGHTED-AVERAGE DILUTED S
Slide 5: Impairment & Other Charges (Pre-Tax)
Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 FULL YEAR FULL YEAR 2013 2012 $44,708 $43,571 $3,144 $7,407 $46,715 $7,407 $7,590 $3,674 $13,839 $95,869 $43,610 $142,054 $36,792 $7,407 $81,500 $7,407 $2,575- $2,575 GILLY HICKS RESTRUCTURING CHARGES OTHER IMPAIRMENT CHARGES PROFIT IMPROVEMENT INITIATIVE CHARGES TOTAL IMPAIR
Slide 6: Q4 Comparable Sales and Sales Mix
TOTAL COMPANY GEOGRAPHIC US INTERNATIONAL BRAND ABERCROMBIE & FITCH abercrombie kids HOLLISTER TOTAL COMPANY GEOGRAPHIC US INTERNATIONAL BRAND ABERCROMBIE & FITCH abercrombie kids HOLLISTER -8% -8% -9% -6% -8% -10% -11% -11% -11% -10% -5% -14% Q4 COMPARABLE SALES * US 65.6% US 64.6% INTERNATIONAL 34
Slide 7: Operating Income by Segment
(1) Operating Income excludes the charges set out on page 4. A reconciliation between GAAP and non-GAAP results is included as an appendix to the presentation. (2) Operating Income for U.S. Stores and International Stores is reported on an aggregate four-wall basis, and excludes pre-opening costs. A
Slide 8: Share Repurchases
SHARE REPURCHASES 349.7 - - - - - - 2,033.0 $16,305 $46.63 3,300.0 $161,215 $48.85 $48.94 $48.60 $99,501 $104,2833,025.2 $34.47 $56,166 $45.94 $115,806 $321,664 $42.62 1,222.7 2,382.7 7,547.9 SHARES REPURCHASED SHARES REPURCHASEDCOST COST AVERAGE COST AVERAGE COST FY 2013 FY 2012 FIRST QUARTER SECON
Slide 9: International Hollister Store Count - Cumulative Year End
INTERNATIONAL HOLLISTER STORE COUNT - CUMULATIVE YEAR END 2007 3 3 6 9 6 9 12 12 12 26 29 31 77 107 129 11 17 18 5 8 10 8 12 12 1 1 1 2 3 3 1 2 2 2 2 2 4 7 14 3 6 6 2 4 7 2 2 1 1 3 2 1 2 1 19 38 4 3 3 3 10 18 1 1 2008 2009 2010 2012 20132011 CANADA UK GERMANY ITALY SPAIN IRELAND SWEDEN HONG KONG BEL
Slide 10: Q4 Store Openings
Q4 STORE OPENINGS CITY DATECENTERBRAND HOLLISTER HOLLISTER A&F HOLLISTER HOLLISTER HOLLISTER HOLLISTER HOLLISTER HOLLISTER abercrombie kids TOISON D’OR ST LOUIS PREMIUM OUTLET SEATTLE PREMIUM OUTLET EURALILLE IST MALL JAUDE 2 LIJNBAAN LALAPORT SHIN MISATO MALL OF THE EMIRATES GRAPEVINE MILLS OUTLET
Slide 11: Guidance Updates
*Guidance for the full year does not include charges related to the Company’s restructuring plans for the Gilly Hicks brand, other impairment and store closure charges, charges related to the implementation of the Company’s profit improvement initiative, or the effect of share repurchases. COMPARABL
Slide 12: Q4 Store Count Activity
Q4 STORE COUNT ACTIVITY (1) End of Q4 2013 includes eight Gilly Hicks stores, one in the U.S. and seven in Europe. (2) Asia includes Australia and UAE. TOTAL U.S. CANADA EUROPE ASIA(2)ALL BRANDS(1) HOLLISTER CO. A&F abercrombie kids START OF Q4 2013 OPENINGS CLOSINGS END OF Q4 2013 START OF Q4 2013
Slide 13: Appendix: Reconciliation of Q4 Non-GAAP Financial Measures
13 (1) Non-GAAP excluded charges for the fourth quarter include $36.8 million in pre-tax charges related to restructuring of the Gilly Hicks brand, $3.1 million in pre-tax charges related to other store asset impairments, and $3.7 million in pre-tax charges related to the Company’s profit improvemen
Slide 14: Appendix: Reconciliation of Full Year Non-GAAP Financial Measures
14 (1) Non-GAAP excluded charges for the full year include $81.5 million in pre-tax charges related to restructuring of the Gilly Hicks brand, $46.7 million in pre-tax charges related to other store asset impairments, and $13.8 million in pre-tax charges related to the Company’s profit improvement i
Slide 15: Appendix: Q4 2012 Reconciliation of Non-GAAP Financial Measures
(1) The store-related asset impairment charges relate to stores whose asset carrying value exceeded the fair value. For the fourth quarter, the charge was associated with one Abercrombie & Fitch, three abercrombie kids, 12 Hollister and one Gilly Hicks stores. (2) Non-GAAP figures reflect the charge
Slide 16: Appendix: Full Year 2012 Reconciliation of Non-GAAP Financial Measures
(1) The store-related asset impairment charges relate to stores whose asset carrying value exceeded the fair value. For the full year, the charge was associated with one Abercrombie & Fitch, three abercrombie kids, 12 Hollister and one Gilly Hicks stores. (2) Non-GAAP figures reflect the charges not