Abercrombie & Fitch Company · NYSE:ANF

Abercrombie & Fitch — William Blair Investor Conference 2015

18 slides from Abercrombie & Fitch's conference presentation, Jun 11, 2015

  1. Slide 1: William Blair Investor Conference June 10, 2015

    WILLIAM BLAIR INVESTOR CONFERENCE JUNE 1O, 2015

  2. 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

  3. Slide 3: Q1 Financial Results | Adjusted P&L Summary

    Q1 FINANCIAL RESULTS | ADJUSTED P&L SUMMARY* 3 * The Adjusted P&L Summary for the current and prior period is presented on a non-GAAP basis, excluding asset impairment, lease termination, store closure, profit improvement initiative, corporate governance and Gilly Hicks restructuring charges. Refer

  4. Slide 4: Financial Results | Comparable Sales

    FINANCIAL RESULTS | COMPARABLE SALES* 4 TOTAL COMPANY -8% -10% GEOGRAPHIC: US -7% -6% INTERNATIONAL -9% -17% BRAND: ABERCROMBIE (1) -9% -8% HOLLISTER -6% -11% 36.7% 63.3% Q1 15 GEOGRAPHIC SALES MIX INTERNATIONAL U.S. * Comparable sale are calculated on a constant currency basis and exclude Gilly Hic

  5. Slide 5: Strategic priorities: customer centricity, brand positioning, assortments, channels

    STRATEGIC ACTIONS • CUSTOMER CENTRICITY • BRAND POSITIONING • COMPELLING AND DIFFERENTIATED ASSORTMENTS • CHANNEL OPTIMIZATION AND BRAND REACH • CONTINUOUS PROFIT IMPROVEMENT • ORGANIZATION 5

  6. Slide 6: Customer Centricity: store experience and new store formats

    STRATEGIC ACTIONS | CUSTOMER CENTRICITY • STORE EXPERIENCE – MORE INVITING AND EASIER SHOPPING EXPERIENCE • NEW STORE FORMATS – HOLLISTER STORE FRONT 6

  7. Slide 7: Customer Centricity: Hollister new layout prototypes

    STRATEGIC ACTIONS | CUSTOMER CENTRICITY HOLLISTER • NEW LAYOUT PROTOTYPES (OPENED) – POLARIS – COLUMBUS, OH – MAYFAIR – MILWAUKEE, WI – WEST TOWN – KNOXVILLE, TN • FUTURE NEW LAYOUT PROTOTYPES – BREA – BREA, CA (JUNE 13) – FREEHOLD RACEWAY – FREEHOLD, NJ (JUNE 20) 7

  8. Slide 8: Customer Centricity: seamless experience across channels

    STRATEGIC ACTIONS | CUSTOMER CENTRICITY 8 Polaris Fashion Place, Columbus, OH • SEAMLESS EXPERIENCE ACROSS ALL CHANNELS • SITE ENHANCEMENTS AND MOBILE OPTIMIZATION • OMNICHANNEL CAPABILITIES ORDER IN STORE All U.S. SHIP FROM STORE 70% of U.S. CLICK AND COLLECT U.K. END OF Q2 2015 END OF 2015 NOW SHI

  9. Slide 9: Customer Centricity summary

    STRATEGIC ACTIONS | CUSTOMER CENTRICITY 9 • STORE EXPERIENCE • NEW STORE FORMATS • CONSISTENT EXPERIENCE ACROSS PLATFORMS AND CHANNELS • SIMPLER AND CLEARER PRICING • STORE MANAGEMENT INCENTIVE AND TRAINING PLAN

  10. Slide 10: Compelling Assortment

    STRATEGIC ACTIONS | COMPELLING ASSORTMENT • BALANCING FASHION RELEVANCE, QUALITY AND VALUE • BUILDING TAILORED ASSORTMENTS BY CHANNEL • BALANCING CATEGORY OFFERINGS 10

  11. Slide 11: Compelling Assortment: sizes and fits

    STRATEGIC ACTIONS | COMPELLING ASSORTMENT • EXTENDING SIZE RANGES AND EVOLVING FITS • ENHANCING EXISTING PROCESSES 11

  12. Slide 12: Channel Optimization/Brand Reach: selective international growth

    STRATEGIC ACTIONS | CHANNEL OPTIMIZATION/BRAND REACH • SELECTIVE INTERNATIONAL GROWTH • OUTLETS 12 360 Mall, Kuwait City FIRST QUARTER INTERNATIONAL OPENINGS • Hollister – Dubai Mall, Dubai, UAE • A&F – 360 Mall, Kuwait City, Kuwait • Hollister – Lalaport Fujimi, Fujimi, Japan Dubai Mall, Dubai

  13. Slide 13: Channel Optimization/Brand Reach: franchising, wholesaling, licensing

    STRATEGIC ACTIONS | CHANNEL OPTIMIZATION/BRAND REACH 13 • HOL - GUADALAJARA, MEXICO • A&F - LATE SUMMER 2015 FRANCHISING • ASOS • OTHER PARTNERS WHOLESALING • INTERPARFUMS LICENSING

  14. Slide 14: Channel Optimization/Brand Reach: U.S. store closures

    STRATEGIC ACTIONS | CHANNEL OPTIMIZATION/BRAND REACH • CUMULATIVE CLOSURES SINCE 2010 OF APPROXIMATELY 275 U.S. STORES • EXPECT TO CLOSE APPROXIMATELY 60 STORES IN FISCAL 2015 • NEARLY 70% OF U.S. LEASES EXPIRE BY THE END OF 2017 • CONTINUED STRONG INTERNATIONAL PRODUCTIVITY 14 64 134 178 223 274 27

  15. Slide 15: 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 15 21% 34% 45% IT/ DTC NEW STORES STORE ENHANCEMENTS FISCAL 2015 CAPITA

  16. Slide 16: Organization

    STRATEGIC ACTIONS | ORGANIZATION • BRANDED ORGANIZATION COMPLETED IN FIRST QUARTER • CLEAR MEASUREMENT AND ACCOUNTABILITY AT THE BRAND LEVEL • SUPPLEMENTED DESIGN, MERCHANDISING AND PLANNING TEAMS 16

  17. Slide 17: Full Year Outlook

    FULL YEAR 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 • GROSS MARGIN RATE FLAT TO SLIGHTLY UP • OPERATING EXPENSES NOW TO BE DOWN APPROXIMATELY $40 MILLION COMPA

  18. Slide 18: Slide 18

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