Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q2 2025 Earnings Presentation
33 slides from Abercrombie & Fitch's earnings presentation, Aug 27, 2025
Slide 1: Investor Presentation: Second Quarter 2025
INVESTOR PRESENTATION: SECOND QUARTER 2025
Slide 2: Table of Contents
TABLE OF CONTENTS Safe Harbor and Other Information 3 Company Overview 5 Q2 2025 Results 15 Appendix 22 2
Slide 3: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation contains forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements, including, without limitation, statements regarding our third qu
Slide 4: Reporting and Use of GAAP and Non-GAAP Measures
REPORTING AND USE OF GAAP AND NON-GAAP MEASURES The following presentation includes certain adjusted non-GAAP financial measures. Additional details about non-GAAP financial measures and a reconciliation of GAAP financial measures to non-GAAP financial measures is included in the Appendix to this pr
Slide 5: Global, digitally-led, omnichannel apparel and accessories retailer
Abercrombie & Fitch Co. is a global, digitally-led, omnichannel apparel and accessories retailer catering to kids through millennials with assortments curated for their specific lifestyle needs Our corporate purpose of 'We are here for you on the journey to being and becoming who you are' fuels our
Slide 6: Our Foundation
OUR FOUNDATION Built on a decade of transformation, and strengthening as we grow: • Two healthy, customer-driven brand families with distinct and large addressable markets; • Successful, regionally relevant brand playbooks, designed to attract, engage, retain, and scale long-term customer relationsh
Slide 7: Sustainable, Profitable Growth
SUSTAINABLE, PROFITABLE GROWTH WELL-BUILT FOUNDATION YIELDS STRONG RESULTS Net Sales Operating Income (Loss) (in $ billions) (in $ millions) EXPECT 13.0% TO EXPECT 13.5% $4.9 5% TO 7% $741 MARGIN (1) GROWTH (1) COVID CLOSURE $4.3 IMPACT $3.6 $3.6 $3.7 $3.7 $485 $3.1 $343 COVID $127 CLOSURE $93 $70 I
Slide 8: Company Overview
COMPANY OVERVIEW 8
Slide 9: Abercrombie Brands: New York Denim Experience, NFL Collection
PRODUCT VOICE NFL COLLECTION NEW YORK OFFICIAL FASHION PARTNER DENIM EXPERIENCE CUSTOMER EXPERIENCE GLOBAL NET SALES NET SALES BY CHANNEL TARGETING +10% $2.56B (FY 2024) GROWTH CAGR $2.20B MILLENNIALS $1.73B $1.46B $1.56B $1.29B ~ 40% ~ POST GRAD STORES 60% DIGITAL LOVES TO TRAVEL FASHION OBSESSED 2
Slide 10: Hollister Brands: Collegiate Graphics Shop, Lollapalooza
PRODUCT VOICE COLLEGIATE LOLLAPALOOZA GRAPHICS SHOP AFTERSHOWS CUSTOMER EXPERIENCE GLOBAL NET SALES NET SALES BY BACK TO GROWTH CHANNEL +15% (FY 2024) TARGETING Y/Y GEN Z TEEN $2.39B $2.16B $2.15B $1.96B $2.08B $1.83B 30% ~ COMING INTO THEIR OWN ~ 70% DIGITAL COMFORT OBSESSED STORES VALUE VERSATILIT
Slide 11: Always Forward Plan: Key Objectives
ALWAYS FORWARD PLAN KEY OBJECTIVES: 1 GLOBAL BRAND GROWTH EXECUTE 2 ENTERPRISE-WIDE DIGITAL ACCELERATE REVOLUTION 3 FINANCIAL DISCIPLINE OPERATE WITH COMPANY OVERVIEW 11
Slide 12: Global Brand Growth
1 GLOBAL BRAND GROWTH PRODUCT VOICE EXPERIENCE COLLECTIONS & DIGITAL CUSTOMER GEOGRAPHIC EXTENSIONS ACQUISITION EXPANSION • Graphics Licensing • Influencer Channel • Localized Physical/Digital • Activewear • Social Commerce Experiences • A&F Best Dressed Guest (Instagram, TikTok, WeChat) • Fuel Regi
Slide 13: Enterprise-Wide Digital Revolution
2 ENTERPRISE-WIDE DIGITAL REVOLUTION WOW THEM – investments in people, systems, and processes to improve the end-to-end customer experience • Modernize Foundation (Retail ERP, Data Infrastructure) • Consistent Omnichannel experience (Digital and In-Store) • Powerful, Modern Loyalty Program KNOW THEM
Slide 14: Financial Discipline
3 FINANCIAL DISCIPLINE AGILE COST STRUCTURE; SIGNIFICANT OPERATING MARGIN IMPROVEMENT WHILE INVESTING 2022 2023 2024 Net Sales growth across both NET SALES $3.7B $4.3B $4.9B units and average unit retail (100%) (AUR) on lower promotions COST OF SALES (1) 43.1% 37.1% 35.8% Cost of Sales improvement f
Slide 15: Q2 Update
GLOBAL SALES GROWTH NET SALES $1.2B +7% Y/Y 2025 Q2 UPDATE "We delivered record +19%Y/Y EMEA second quarter net sales, exceeding our expectations. (1)%Y/Y We entered the second half APAC of 2025 on offense. We are AMERICAS +12%Y/Y increasing our full year net sales outlook, reflecting our +8%Y/Y str
Slide 16: 2025 Q2 Net Sales: Results by Segment
2025 Q2 NET SALES RESULTS BY SEGMENT Americas Net Sales EMEA Net Sales APAC Net Sales (in $ millions) (in $ millions) (in $ millions) $1,320 +8% Y/Y (1)% $986 $974 Y/Y $901 $875 $224 +12% $200 $197 Y/Y $182 $185 $41 $41 $37 $37 $33 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2
Slide 17: 2025 Q2 Net Sales: Results by Brand
2025 Q2 NET SALES RESULTS BY BRAND Total Company Net Sales Abercrombie Brands Net Sales Hollister Brands Net Sales (in $ millions) (in $ millions) (in $ millions) +7% $1,585 Y/Y +19% $1,209 $1,209 (5)% $812 Y/Y $1,134 $1,097 $773 Y/Y $630 $657 $582 $548 $552 $552 $579 $549 Q2 2024 Q3 2024 Q4 2024 Q1
Slide 18: 2025 Q2 Operating Income / Net Income per Diluted Share
2025 Q2 OPERATING INCOME/ NET INCOME PER DILUTED SHARE Operating Income Net Income per Diluted Share (in $ millions) ABOVE MARGIN ABOVE OUTLOOK OUTLOOK OF 12-13% $2.10 TO $256 $2.30 $3.57 $207 $176 $179 $2.91 $2.50 $2.50 $102 $1.59 OPERATING 15.5% 14.8% 16.2% 9.3% 17.1% MARGIN Q2 2024 Q3 2024 Q4 202
Slide 19: Fiscal 2025 Outlook
PREVIOUS FULL YEAR OUTLOOK (1) 2025 FISCAL OUTLOOK The following outlook replaces all previous full year guidance. For fiscal 2025, the company now expects: FY 2025 CURRENT FULL YEAR OUTLOOK (1) (2) PREVIOUS FULL YEAR OUTLOOK (3) NET SALES GROWTH IN THE RANGE OF 5% TO 7% GROWTH IN THE RANGE OF 3% TO
Slide 20: 2025 Q2 Financial Position
2025 Q2 FINANCIAL POSITION CASH & EQUIVALENTS • $573M as compared to $738M last year Cash and Equivalents MARKETABLE SECURITIES • Current investments of $31M, compared to $116M at February 1, 2025, due to $85M of maturities INCLUDES IMPACT $773M OF ~$50M $738M IN SHARE INVENTORIES REPURCHASES $683M
Slide 21: Share Repurchases
SHARE REPURCHASES Since the start of 2022, the Company has repurchased approximately 10 million shares for approximately $606 million. The Company has $1.1 billion remaining under its current share repurchase authorization, announced in March 2025. SHARE REPURCHASES (1) NUMBER OF AVERAGE ENDING SHAR
Slide 22: Appendix
APPENDIX 22
Slide 23: Net Sales and Comparable Sales Growth History by Region
2025 Q2 NET SALES GROWTH AND COMPARABLE SALES GROWTH HISTORY BY REGION Americas EMEA APAC NET SALES GROWTH Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2025 7% 8% 12% (1)% 5% 12% 2024 23% 23% 14% 11% 17% 19% 16% 15% 2% 12% 10% 3% 32% (4)% 9% 2023 (3) 19% 22% 23% 18% 4% 14% 13% 4% 18% 13% 21% 16% Ame
Slide 24: Net Sales and Comparable Sales Growth History by Brand
2025 Q2 NET SALES GROWTH AND COMPARABLE SALES GROWTH HISTORY BY BRAND Total Abercrombie Brands Hollister Brands NET SALES GROWTH Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2025 8% 7% (4)% (5)% 22% 19% 2024 22% 21% 14% 9% 16% 31% 26% 15% 2% 16% 12% 17% 14% 16% 15% 2023 3% 16% 20% 21% 16% 14% 26% 30
Slide 25: 2025 Q2 Owned and Operated Store Count
2025 Q2 OWNED AND OPERATED STORE COUNT (1) FY 2023 FY 2024 FY 2025 BRAND Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ABERCROMBIE BRANDS 233 233 239 247 246 255 267 278 281 292 HOLLISTER BRANDS 525 526 526 518 507 502 506 511 512 515 TOTAL STORES 758 759 765 765 753 757 773 789 793 807 FY 2023 FY 2024 FY 2024 REGI
Slide 26: 2025 Q2 Income Statement
2025 Q2 INCOME STATEMENT Thirteen Weeks Ended GAAP % OF % OF (in thousands) Q2 2025 NET SALES Q2 2024 NET SALES NET SALES $1,208,560 100.0% $1,133,974 100.0% (1) COST OF SALES 451,590 37.4% 397,712 35.1% OPERATING EXPENSE 550,681 45.6% 560,704 49.4% OTHER OPERATING INCOME, NET (369) 0.0% (67) 0.0% O
Slide 27: 2025 YTD Income Statement
2025 YTD INCOME STATEMENT Twenty-Six Weeks Ended GAAP % OF % OF (in thousands) YTD 2025 NET SALES YTD 2024 NET SALES NET SALES $2,305,871 100.0% $2,154,704 100.0% (1) COST OF SALES 868,723 37.7% 740,985 34.4% OPERATING EXPENSE 1,125,543 48.8% 1,110,270 51.5% OTHER OPERATING INCOME, NET 3,414 0.1% (2
Slide 28: Balance Sheet
BALANCE SHEET (in thousands) AUGUST 2, 2025 FEBRUARY 1, 2025 AUGUST 3, 2024 CASH AND EQUIVALENTS $572,730 $772,727 $738,402 MARKETABLE SECURITIES 30,795 116,221 15,014 RECEIVABLES 174,000 105,324 115,077 INVENTORIES 592,966 575,005 539,759 OTHER CURRENT ASSETS 118,624 104,154 108,401 TOTAL CURRENT A
Slide 29: Statement of Cash Flows
STATEMENT OF CASH FLOWS YEAR TO DATE PERIOD ENDED (in thousands) AUGUST 2, 2025 AUGUST 3, 2024 NET CASH PROVIDED BY OPERATING ACTIVITIES $112,893 $260,119 PURCHASES OF MARKETABLE SECURITIES — (15,000) PROCEEDS FROM MATURITIES OF MARKETABLE SECURITIES 85,000 — PURCHASES OF PROPERTY AND EQUIPMENT (116
Slide 30: Reconciliation of GAAP to Non-GAAP Results
RECONCILIATION OF GAAP TO NON-GAAP RESULTS STATEMENT OF OPERATIONS Q2 2025 % OF NET EXCLUDED ADJUSTED % OF NET (in thousands) GAAP (1) SALES ITEM (2) NON-GAAP SALES LITIGATION SETTLEMENT $(38,574) $(38,574) OPERATING INCOME 206,658 17.1% 38,574 168,084 13.9% INCOME BEFORE INCOME TAXES 209,132 17.3%
Slide 31: Reconciliation of GAAP to Non-GAAP Results
RECONCILIATION OF GAAP TO NON-GAAP RESULTS STATEMENT OF OPERATIONS YTD 2025 % OF NET EXCLUDED ADJUSTED % OF NET (in thousands) GAAP (1) SALES ITEM (2) NON-GAAP SALES LITIGATION SETTLEMENT $(38,574) $(38,574) OPERATING INCOME 308,191 13.4% 38,574 269,617 11.7% INCOME BEFORE INCOME TAXES 317,448 13.8%
Slide 32: Reconciliation of GAAP to Non-GAAP Results
RECONCILIATION OF GAAP TO NON-GAAP RESULTS STATEMENT OF OPERATIONS NET SALES Q2 2025 Q2 2024 Δ% (1) GAAP $1,208,560 $1,133,974 7% (2) IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES — 10,707 (1)% NON-GAAP CONSTANT CURRENCY BASIS $1,208,560 $1,144,681 6% OPERATING INCOME Q2 2025 Q2 2024 Δ BPS
Slide 33: Abercrombie & Fitch Co.
Abercrombie & Fitch Co.
Abercrombie & Fitch Company — Q2 2025 Earnings Presentation on 6ix