Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q4 2014 Earnings Presentation
15 slides from Abercrombie & Fitch's earnings presentation, Mar 5, 2015
Slide 1: Investor Presentation 2014 Fourth Quarter
INVESTOR PRESENTATION 2014 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
Q4 ADJUSTED P&L SUMMARY* * The Q4 Adjusted P&L Summary for the current and prior period is presented on a non-GAAP basis and excludes the charges set out on page 5. A reconciliation between GAAP and non-GAAP results is included as an appendix to the presentation. 2014 % OF NET SALES 2013 % OF NET SA
Slide 4: Full Year Adjusted P&L Summary
FULL YEAR ADJUSTED P&L SUMMARY* * The Full Year Adjusted P&L Summary for the current and prior period is presented on a non-GAAP basis and excludes the charges set out on page 5. A reconciliation between GAAP and non-GAAP results is included as an appendix to the presentation. 2014 % OF NET SALES 20
Slide 5: Excluded Charges (Pre-Tax)
EXCLUDED CHARGES (PRE-TAX) 2014 Q1 Q2 Q3 Q4 FULL YEAR ASSET IMPAIRMENT, LEASE TERMINATION AND STORE CLOSURE CHARGES — — $18,958 $31,641 $50,599 PROFIT IMPROVEMENT INITIATIVE AND CORPORATE GOVERANCE 9,964 1,964 1,310 718 13,956 GILLY HICKS RESTRUCTURING CHARGES 5,633 419 — 2,378 8,431 CEO TRANSITION
Slide 6: Comparable Sales and Sales Mix
* Comparable store sales are calculated on a constant currency basis and exclude Gilly Hicks. Sales mix includes store and DTC sales. COMPARABLE SALES* Q4 SALES MIX Q4 TOTAL COMPANY -10% GEOGRAPHIC: US -6% INTERNATIONAL -17% BRAND: ABERCROMBIE & FITCH -9% abercrombie kids -6% HOLLISTER CO. -11% INTE
Slide 7: Q4 Adjusted Operating Expense
Q4 ADJUSTED OPERATING EXPENSE* * Q4 adjusted operating expense excludes the charges set out on page 5. A reconciliation between GAAP and non-GAAP results is included as an appendix to the presentation. (1) Includes rent, other landlord charges, utilities, depreciation and other occupancy expense. (2
Slide 8: Q4 Adjusted P&L Analysis
Q4 ADJUSTED P&L ANALYSIS* * Q4 adjusted operating income excludes the charges set out on page 5. 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 basi
Slide 9: Share Repurchases
SHARE REPURCHASES FY 2014 FY 2013 SHARES REPURCHASED COST AVERAGE COST SHARES REPURCHASED COST AVERAGE COST FIRST QUARTER 3,825.7 $150,000 $39.21 349.7 $16,305 $46.63 SECOND QUARTER 1,459.4 $60,000 $41.11 2,033.0 $99,501 $48.94 THIRD QUARTER 2,039.0 $75,038 $36.80 — — — FOURTH QUARTER — — — — — — TO
Slide 10: Q4 Store Openings
Q4 STORE OPENINGS BRAND CENTER CITY DATE Hollister Yas Mall Abu Dhabi, UAE 11/19/2014 A&F Gotemba Premium Outlet Shizuoka, Japan 11/22/2014 A&F Westgate Outlets Glendale, AZ 11/26/2014 Hollister Lalaport Koshein Hyogo, Japan 12/6/2014 A&F Kingston Collection Outlet Kingston, MA 12/6/2014 Hollister T
Slide 11: Q4 Store Count Activity
Q4 STORE COUNT ACTIVITY * Includes Asia, Australia and the Middle East. ALL BRANDS TOTAL U.S. CANADA EUROPE REST OF WORLD* START OF Q4 2014 1,000 834 18 122 26 OPENINGS 8 3 — — 5 CLOSINGS (39) (38) — (1) — END OF Q4 2014 969 799 18 121 31 A&F START OF Q4 2014 282 255 4 16 7 OPENINGS 4 2 — — 2 CLOSIN
Slide 12: Appendix: Reconciliation of Q4 2014 Non-GAAP Financial Measures
APPENDIX: RECONCILIATION OF Q4 2014 NON-GAAP FINANCIAL MEASURES GAAP EXCLUDED CHARGES (1) ADJUSTED NON-GAAP (2) STORES AND DISTRIBUTION EXPENSE $445,629 $3,970 $441,659 MARKETING, GENERAL AND ADMINISTRATIVE EXPENSE 119,225 5,295 113,930 RESTRUCTURING CHARGES 2,378 2,378 — ASSET IMPAIRMENT 28,282 28,
Slide 13: Appendix: Reconciliation of Full Year Non-GAAP Financial Measures
APPENDIX: RECONCILIATION OF FULL YEAR NON-GAAP FINANCIAL MEASURES (1) Excluded charges consist of pre-tax charges of $33.7 million related to the impairment of store assets whose carrying value exceeded fair value, primarily associated with 7 Abercrombie & Fitch stores, 27 abercrombie kids stores an
Slide 14: Appendix: Reconciliation of Q4 2013 Non-GAAP Financial Measures
APPENDIX: RECONCILIATION OF Q4 2013 NON-GAAP FINANCIAL MEASURES (1) Excluded charges consist of pre-tax charges of $36.8 million related to the restructuring of the Gilly Hicks brand, $3.7 million related to the Company's profit improvement initiative, and $3.1 million related to the impairment of s
Slide 15: Appendix: Reconciliation of Full Year 2013 Non-GAAP Financial Measures
APPENDIX: RECONCILIATION OF FULL YEAR 2013 NON-GAAP FINANCIAL MEASURES (1) Excluded charges consist of pre-tax charges of $46.7 million related to the impairment of store assets whose carrying value exceeded fair value, primarily associated with 23 Abercrombie & Fitch stores, 4 abercrombie kids stor