Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — FY2015 Earnings Presentation
22 slides from Abercrombie & Fitch's earnings presentation, Mar 24, 2016
Slide 1: Abercrombie & Fitch
Abercrombie & Fitch NEW YORK
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 ABE cautions that any forward-looking statements (as such term is defined in the Private Securities Ligation Reform Act of 1995) contained in this ge 3s and are subject toc ased on various important fa cts, bas ye beyon
Slide 3: Comparable Sales
COMPARABLE SALES FISCAL 2015 COMPARABLE SALES BY BRAND* (9)% Qi a2 Q3 4 —@— ABERCROMBIE” —@®— HOLLISTER —@— TOTAL COMPANY ARF | ae | ae
Slide 4: Adjusted P&L Summary
ADJUSTED P&L SUMMARY 2015 sues 2014 sus (MILLIONS) NET SALES $3,519 100% $3,744 100% GROSS PROFIT 2,178 61.9% 2,314 61.8% OPERATING EXPENSE 2,050 58.3% 2,137 57.1% OPERATING INCOME 136 3.9% 192 5.1% NET INCOME $78 2.2% $112 3.0% DILUTED SHARE aie win WEIGHTED-AVERAGE DILUTED SHARE 69.4 729
Slide 5: Strategic Initiatives
STRATEGIC INITIATIVES a > a CUSTOMER BRAND CENTRICITY POSITIONING 7 . J COMPELLING OPTIMIZE ASSORTMENTS BRAND REACH ‘ JS ; JS 4 >) 4 CONTINUOUS OROANE PROFIT TO SUCCEED IMPROVEMENT J
Slide 6: Strategic Initiatives | Customer Centricity
STRATEGIC INITIATIVES | CUSTOMER CENTRICITY EASIER, FASTER MORE ENGAGING SHOPPING EXPERIENCE ARF | aah | ae tell us how we're doing! and receive 10°off your next purchase we'd love to hear your thoughts at www.tellanf.com tomar sets,
Slide 7: Customer Centricity
CUSTOMER CENTRICITY | DRIVING ADDITIONAL STORES IN 2016 ARF | at | ae
Slide 8: Customer Centricity | Digital
CUSTOMER CENTRICITY | DIGITAL DTC/OMNICHANNEL 24% OF TOTAL SALES INCREASING MOBILE PENETRATION ARF aul | ae
Slide 9: Customer Centricity | Omnichannel
CUSTOMER CENTRICITY | OMNICHANNEL SHIP-FROM-STORE >600 US STORES ORDER-IN-STORE ALL US STORES CLICK-AND-COLLECT IN THE UK RESERVE-IN-STORE TESTING IN 6 US MARKETS
Slide 10: Brand Positioning | Customer Engagement
BRAND POSITIONING | CUSTOMER ENGAGEMENT SNAPCHAT INSTAGRAM 18! RETAILER 10 orsce HOLLISTER custom sponsorep LENS RANKED #1 RETAILER (aoweex) 20 MILLION GEOFILTER IMPRESSIONS IN Q4 ABERCROMBIE RANKED #4 RETAILER (apweek) ARF | ae | ae 10
Slide 11: Brand Positioning | Customer Engagement
BRAND POSITIONING | CUSTOMER ENGAGEMENT \ ——— | IN 2016 = | CLUB CALI PILOTED IN 2015 US ROLLOUT ) ARF | aah | ae
Slide 12: Strategic Initiatives | Brand Positioning
STRATEGIC INITIATIVES | BRAND POSITIONING Abercrombie - x Fitch HOLLISTER NEW YORK CALIFORNIA
Slide 13: Strategic Initiatives | Compelling Assortments
STRATEGIC INITIATIVES | COMPELLING ASSORTMENTS strENGTHEN TEAMS « improve core PROCESSES FASHION, QUALITY & VALUE BALANCE BY CATEGORY AND PRICE TIER TAILORED REGIONAL ASSORTMENTS ARF | aah | ae B
Slide 14: Compelling Assortments | Customer Response
COMPELLING ASSORTMENTS | CUSTOMER RESPONSE SIGNIFICANT IMPROVEMENT FEMALE TOPS HIGHER AU R IN THE US INCREASED CONVERSION RATE ACROSS CHANNELS AND GEOGRAPHIES ARF | aah | ae ry
Slide 15: Strategic Initiatives | Optimize Brand Reach
STRATEGIC INITIATIVES | OPTIMIZE BRAND REACH SELECTIVE INTERNATIONAL EXPANSION MEASURED OUTLET GROWTH NEW INTERNATIONAL STORES . 2016: 1 0 ’ 2015: 15 , ARF | aah | ae 5
Slide 16: Optimize Brand Reach | Wholesale / Franchising / Licensing
OPTIMIZE BRAND REACH | WHOLESALE / FRANCHISING / LICENSING WHOLESALE: $10 MILLION LICENSING: FRAGRANCE ARF | aah | ae 16
Slide 17: Channel Optimization | Store Closures
CHANNEL OPTIMIZATION | STORE CLOSURES PROACTIVE US STORE CLOSURES 1/3 OF FLEET SINCE 2010 LEASE FLEXIBILITY 50% OF US LEASES EXPIRE over net TWO YEARS ARF | aah | ae
Slide 18: Strategic Initiatives
STRATEGIC INITIATIVES | ARF | aah | ae BUILDING ON SAVINGS OF STRONG FOCUS ON DRIVING
Slide 19: 2016 Capital Allocation
2016 CAPITAL ALLOCATION IN THE RANGE OF
Slide 20: Strategic Initiatives
STRATEGIC INITIATIVES | STRENGTHENING TALENTED AND EXPERIENCED
Slide 21: 2016 Outlook
2016 OUTLOOK* FOR FISCAL 2016, THE COMPANY EXPECTS: FLAT TO SLIGHTLY POSITIVE COMP SALES CONTINUED ADVERSE EFFECTS FROM FX ON SALES GROSS MARGIN RATE ~FLAT TO LAST YEAR'S ADJUSTED NON-GAAP RATE OF 61.9%, BUT UP ON A CONSTANT CURRENCY BASIS SLIGHT LEVERAGE IN OPERATING EXPENSE RELATIVE TO LAST YEAR'S
Slide 22: Est. 1892
EST. 1892 Abercrombie