Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q4 2017 Earnings Presentation
16 slides from Abercrombie & Fitch's earnings presentation, Mar 8, 2018
Slide 1: Investor Presentation 2017 Fourth Quarter
INVESTOR PRESENTATION 2017 FOURTH QUARTER
Slide 2: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
2 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 ri
Slide 3: Q4 P&L Summary
3 Q4 P&L SUMMARY 2017 % OF NET SALES 2016 % OF NET SALES NET SALES $1,193,158 100.0% $1,036,363 100.0% GROSS PROFIT 697,395 58.4% 615,001 59.3% OPERATING EXPENSE 569,438 47.7% 563,119 54.3% OTHER OPERATING INCOME, NET (12,383) (1.0)% (9,377) (0.9)% OPERATING INCOME 140,340 11.8% 61,259 5.9% INTEREST
Slide 4: Q4 Adjusted P&L Summary
4 Q4 ADJUSTED P&L SUMMARY* * The Q4 Adjusted P&L Summary for the current and prior periods is presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out on page 7. 2017 % OF NET SALES 2016 % OF NET SALES NET SALES $1,193,158 100.0% $1,036,363 100.0% GROSS PROFIT 697,39
Slide 5: Full Year P&L Summary
5 FULL YEAR P&L SUMMARY 2017 % OF NET SALES 2016 % OF NET SALES NET SALES $3,492,690 100.0% $3,326,740 100.0% GROSS PROFIT 2,083,842 59.7% 2,028,568 61.0% OPERATING EXPENSE 2,028,730 58.1% 2,039,592 61.3% OTHER OPERATING INCOME, NET (16,938) (0.5)% (26,212) (0.8)% OPERATING INCOME 72,050 2.1% 15,188
Slide 6: Full Year Adjusted P&L Summary
6 FULL YEAR ADJUSTED P&L SUMMARY* * The Full Year Adjusted P&L Summary for the current and prior periods is presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out on page 7. 2017 % OF NET SALES 2016 % OF NET SALES NET SALES $3,492,690 100.0% $3,326,740 100.0% GROSS
Slide 7: Excluded Items
7 EXCLUDED ITEMS 2017 Q1 Q2 Q3 Q4 FULL YEAR LEGAL CHARGES $— $— $11,070 $4,000 $15,070 ASSET IMPAIRMENT — 6,135 3,480 4,046 13,661 PRE-TAX EXCLUDED ITEMS — 6,135 14,550 8,046 28,731 TAX EFFECT (1) — (1,610) (4,117) (5,029) (10,756) TAX CUTS AND JOBS ACT OF 2017 CHARGES — — — 19,936 19,936 TOTAL EXCL
Slide 8: 2017 Comparable Sales
8 * Comparable sales are calculated on a constant currency basis and excludes revenue other than store and online sales. Comparable sales for the 14-week fourth quarter ended February 3, 2018 are compared to the 14 weeks ended February 4, 2017. Comparable sales for the 53-week fiscal year ended Febr
Slide 9: Comparable Sales Trend by Brand
9 * Comparable sales are calculated on a constant currency basis and excludes revenue other than store and online sales. Comparable sales for the 14-week fourth quarter ended February 3, 2018 are compared to the 14 weeks ended February 4, 2017. (1) Abercrombie includes the company's Abercrombie & Fi
Slide 10: 2017 Sales Mix
10* Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. 2017 SALES MIX* Q4 ABERCROMBIE 40.6% HOLLISTER 59.4% FULL YEAR ABERCROMBIE 41.6% HOLLISTER 58.4% BRAN D INTERNATIONAL 35.1% UNITED STATES 64.9% INTERNATIONAL 36.8% UNITED STATES 63.2% GEOGRAPH Y
Slide 11: Q4 Adjusted Operating Expense
11 Q4 ADJUSTED OPERATING EXPENSE * Q4 Adjusted Operating Expense for the current period is presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out on page 7. (1) Includes rent, other landlord charges, utilities, depreciation and other occupancy expense. (2) Includes
Slide 12: Full Year Adjusted Operating Expense
12 FULL YEAR ADJUSTED OPERATING EXPENSE* * Full Year Adjusted Operating Expense for the current and prior periods is presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out on page 7. (1) Includes rent, other landlord charges, utilities, depreciation and other occup
Slide 13: Q4 Store Openings
13 Q4 STORE OPENINGS BRAND CENTER CITY DATE DOMESTI C kids Baybrook Friendswood, TX 11/11/2017 Hollister Kings Plaza Brooklyn, NY 11/17/2017 Hollister Sawgrass Mills Sunrise, FL 11/18/2017 INTERN ATIONA L A&F Harbour City Hong Kong 12/1/2017
Slide 14: Q4 Store Count Activity
14 Q4 STORE COUNT ACTIVITY (1) Excludes five international franchise stores as of February 3, 2018 and October 28, 2017. (2) Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. Locations with abercrombie kids carveouts within Abercrombie & Fitch stores are represented
Slide 15: 2018 Outlook
15 2018 OUTLOOK FOR FISCAL 2018, THE COMPANY EXPECTS: • COMPARABLE SALES TO BE UP LOW-SINGLE DIGITS • NET SALES TO BE UP LOW-SINGLE DIGITS, WITH BENEFITS FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES LARGELY OFFSET BY THE ADVERSE IMPACT FROM THE LOSS OF FISCAL 2017'S ADDITIONAL WEEK • CHANGES IN F
Slide 16: Abercrombie Est. 1892
EST. 1892 Abercrombie