Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q2 2014 Earnings Presentation
16 slides from Abercrombie & Fitch's earnings presentation, Aug 28, 2014
Slide 1: Investor Presentation 2014 Second Quarter
INVESTOR PRESENTATION 2014 SECOND 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: Q2 Adjusted P&L Summary
Q2 ADJUSTED P&L SUMMARY * 2013 2014 % OF NET SALES % OF NET SALES NET SALES GROSS PROFIT OPERATING EXPENSE OTHER OPERATING INCOME, NET OPERATING INCOME INTEREST EXPENSE, NET INCOME BEFORE TAXES TAX PROVISION NET INCOME NET INCOME PER SHARE BASIC DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING BASIC DILU
Slide 4: Excluded Charges (Pre-Tax)
Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 YEAR TO DATE FULL YEAR 2014 2013 5,025 13,8392,575 $44,708 $36,792 3,674 3,144 $43,610 7,590 43,571 $95,869$2,575 3,061 1,964 6,903 46,715 6,903 - $17,981 $142,054 $15,598 $2,383 $6,052 $81,500 $5,633 $419 -- GILLY HICKS RESTRUCTURING CHARGES PROFIT IMPROVEMENT INITIATIVE CHA
Slide 5: Q2 Comparable Sales
TOTAL COMPANY GEOGRAPHIC: U.S. INTERNATIONAL BRAND: ABERCROMBIE & FITCH abercrombie kids HOLLISTER CO. - 7% - 5% - 9% - 1% - 6% - 10% Q2 COMPARABLE SALES * 61.3% U.S. 38.7% INTERNATIONAL GEOGRAPHIC SALES MIXQ2 * Includes comparable store and DTC sales 5
Slide 6: YTD Comparable Sales
TOTAL COMPANY GEOGRAPHIC: U.S. INTERNATIONAL BRAND: ABERCROMBIE & FITCH abercrombie kids HOLLISTER CO. - 6% - 5% - 7% - 1% - 6% - 9% YTD COMPARABLE SALES * 61.3% U.S. 38.7% INTERNATIONAL GEOGRAPHIC SALES MIXYTD * Includes comparable store and DTC sales 6
Slide 7: Q2 Adjusted Operating Expense
Q2 ADJUSTED OPERATING EXPENSE* 20132014 % OF NET SALESSECOND QUARTER % OF NET SALES bps(3) STORE OCCUPANCY (1) ALL OTHER (2) STORES AND DISTRIBUTION MARKETING, GENERAL & ADMINISTRATIVE TOTAL 279,273 471,722 115,071 $190,786 $192,449 234,270 425,056 110,314 $535,370 $586,793 20.3% 110 29.5% (320) 49.
Slide 8: Q2 Operating Income by Channel
* 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. (1) Operating Income for U.S. Stores and International Stores is reported on an aggregate four-wall basis, and excludes pre-opening costs. Als
Slide 9: Q2 Share Repurchases
Q2 SHARE REPURCHASES 3,825.7 1,459.4 - - $150,000 $60,000 - - $39.21 $41.11 - - 349.7 $16,305 $46.63 $39.73 $99,501 $48.94 $210,000 $115,806 $48.605,285.1 2,382.7 2,033.0 SHARES REPURCHASED SHARES REPURCHASEDCOST COST AVERAGE COST AVERAGE COST FY 2014 FY 2013 FIRST QUARTER SECOND QUARTER THIRD QUART
Slide 10: Cumulative Store Count - International Hollister
CUMULATIVE STORE COUNT - INTERNATIONAL HOLLISTER YEAR END 2007 3 3 6 9 6 9 12 12 12 12 26 29 31 31 77 107 129 131 11 17 18 18 5 8 10 10 8 12 12 12 1 1 1 1 2 3 3 3 1 2 2 2 2 2 2 2 4 7 14 14 3 6 6 6 2 4 7 8 2 2 2 1 1 3 3 2 2 1 1 2 3 1 1 19 38 4 3 3 3 10 18 1 1 2008 2009 2010 2012 2013 Q2 20142011 CANA
Slide 11: Full Year Guidance Updates
*Guidance for the full year does not include charges related to the Gilly Hicks restructuring, other potential impairment and store closure charges, the Company’s profit improvement initiative, certain corporate governance matters, or the effect of any additional share repurchases. FULL YEAR DILUTED
Slide 12: Q2 Store Count Activity
Q2 STORE COUNT ACTIVITY * Asia includes Australia and UAE. TOTAL U.S. CANADA EUROPE ASIA *ALL BRANDS HOLLISTER CO. A&F abercrombie kids START OF Q2 2014 OPENINGS CLOSINGS END OF Q2 2014 START OF Q2 2014 OPENINGS CLOSINGS END OF Q2 2014 START OF Q2 2014 OPENINGS CLOSINGS END OF Q2 2014 START OF Q2 20
Slide 13: Reconciliation of Q2 2014 Non-GAAP Financial Measures
(1) Excluded charges for the second quarter include pre-tax charges of $2.0 million related to the Company’s profit improvement initiative and $0.4 million related to restructuring of the Gilly Hicks brand. (2) Prior period excluded charges, in the first quarter, for a benefit in the effective tax r
Slide 14: Reconciliation of 2014 YTD Non-GAAP Financial Measures
(1) Excluded charges for the year to date period include pre-tax charges of $6.9 million for legal, advisory and other charges related to certain corporate governance matters, $6.1 million related to restructuring of the Gilly Hicks brand, and $5.0 million related to the Company’s profit improvement
Slide 15: Appendix: Reconciliation of Q2 2013 Non-GAAP Financial Measures
15 APPENDIX: RECONCILIATION OF Q2 2013 NON-GAAP FINANCIAL MEASURES (1) Excluded charges for the second quarter include pre-tax charges of $2.6 million related to the Company’s profit improvement initiative. (2) Non-GAAP financial measures should not be used as alternatives to net loss and net loss p
Slide 16: Appendix: Reconciliation of 2013 YTD Non-GAAP Financial Measures
(1) Excluded charges for the year to date period include pre-tax charges of $2.6 million related to the Company’s profit improvement initiative. (2) Non-GAAP financial measures should not be used as alternatives to net loss and net loss per basic and diluted share and are also not intended to supers