Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q3 2012 Earnings Presentation
15 slides from Abercrombie & Fitch's earnings presentation, Nov 19, 2012
Slide 1: Investor Presentation 2012 Third Quarter
1 INVESTOR PRESENTATION 2012 THIRD 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: Q3 P&L Summary
3 Q3 P&L SUMMARY 20112012 % OF NET SALES UNAUDITED UNAUDITED % OF NET SALES NET SALES COST OF GOODS SOLD GROSS PROFIT OPERATING EXPENSE OTHER OPERATING INCOME, NET OPERATING INCOME INTEREST EXPENSE, NET INCOME BEFORE TAXES TAX EXPENSE NET INCOME NET INCOME PER SHARE BASIC DILUTED WEIGHTED-AVERAGE SH
Slide 4: Sales Analysis Versus Prior Year
TOTAL SALES TOTAL US SALES TOTAL INTERNATIONAL SALES DTC SALES COMPARABLE STORES SALES: TOTAL COMPANY ABERCROMBIE & FITCH abercrombie kids HOLLISTER +9% 0% +37% +20% -3% -4% -3% -1% TOTAL SALES TOTAL US SALES TOTAL INTERNATIONAL SALES DTC SALES COMPARABLE STORES SALES: TOTAL COMPANY ABERCROMBIE & FI
Slide 5: U.S. Chain Store + U.S. DTC Sales Comps
U.S. CHAIN STORE + U.S. DTC SALES LIKES 17% 13% 12% 16% 4% 7% 7% 7% 1% 8% 8% Q2 Q2 Q2Q4 2010 *U.S. CHAIN INCLUDES OUTLET AND EXCLUDES FLAGSHIP AND TOURIST STORES 2011 2012 Q4Q1 Q1 Q1Q3 Q3 Q3 4
Slide 6: Third Quarter Growth Contribution
(1) Represents the impact of converting prior year sales at current year rates (2) New stores, net of closures; plus net effect of third party sell-off revenue $1,075,856 (7,883) -0.7% (22,033) -2.0% 25,808 2.4% 9.1%97,901 $1,169,649 8.7% THIRD QUARTER GROWTH CONTRIBUTION % 2011 NET SALES FOREIGN EX
Slide 7: Operating Expense
2012 % OF NET SALES 2011 % OF NET SALESTHIRD QUARTER $189,492 $177,81216.2% 16.5% (30) (10) (40) 50 10 307,450 283,87126.3% 26.4% 496,942 461,68342.5% 42.9% 123,381 107,84410.5% 10.0% $620,323 $569,52753.0% 52.9% STORE OCCUPANCY (1) ALL OTHER (2) STORES & DISTRIBUTION MARKETING, GENERAL & ADMINISTRA
Slide 8: Operating Income by Segment
(1) Operating Income for U.S. Stores and International Stores is reported on an aggregate four-wall basis, excludes store pre-opening costs and is adjusted for period-end markdown reserves. (2) Store Pre-Opening Costs include pre-opening rent, payroll, travel and other expenses. (3) All Other includ
Slide 9: Share Repurchases
SHARE REPURCHASES 3,300.0 3,025.2 $161,215 $104,283 $48.85 $34.47 428.8 $25,469 $59.40 - $41.97 19,894 - $64,399 $8,835 $67.78 $58.90 $97,903 $48.53 $265,498 $196,606 $55.44 - 2,017.3 6,325.2 3,546.2 950.1 150.0 SHARES REPURCHASED SHARES REPURCHASEDCOST COST AVERAGE COST AVERAGE COST FY 2012 FY 2011
Slide 10: International Hollister Store Count - Cumulative
INTERNATIONAL HOLLISTER STORE COUNT - CUMULATIVE YEAR END Q3 END 2007 3 3 6 9 6 9 12 12 26 29 77 101 11 17 5 8 8 11 1 1 2 3 1 2 2 2 4 6 3 5 2 3 1 1 19 38 4 3 3 3 10 18 1 1 2008 2009 2010 20122011HOLLISTER CANADA UK GERMANY ITALY SPAIN IRELAND SWEDEN HONG KONG BELGIUM FRANCE AUSTRIA CHINA S. KOREA NE
Slide 11: Q3 International Store Openings
Q3 INTERNATIONAL STORE OPENINGS CITY DATECENTERBRAND A&F A&F / KIDS HOLLISTER HOLLISTER HOLLISTER HOLLISTER HOLLISTER HOLLISTER HOLLISTER HOLLISTER HOLLISTER PEDDER STREET SENDLINGER STRASSE I GIGLI HYSAN PLACE IFC SEOUL PRINCESSHAY ENTRE DEUX SHOPPING CITY SUD PUERTO VENECIA SO OUEST EMPORIA HONG K
Slide 12: Abercrombie & Fitch Openings
ABERCROMBIE & FITCH OPENINGS DUBLIN AMSTERDAM SEOUL SHANGHAI LONDON NOVEMBER 1, 2012 DECEMBER, 2012 FALL 2013 FALL 2013 TBD TIER 1 / FLAGSHIP TIER 1 / FLAGSHIP TIER 1 / FLAGSHIP FLAGSHIP kids FLAGSHIP TIMING TYPECITY 11
Slide 13: 2012 Guidance Updates
FOURTH QUARTER: MID SINGLE DIGIT PERCENTAGE DECREASE IN COMPARABLE STORE SALES SLIGHTLY HIGHER GROSS MARGIN RATE RELATIVE TO THE YEAR-TO-DATE RATE EXPENSE DELEVERAGE SLIGHTLY GREATER THAN THE YEAR-TO-DATE DELEVERAGE FULL YEAR: TAX RATE: APPROXIMATELY 37% WEIGHTED AVERAGE SHARE COUNT: APPROXIMATELY 8
Slide 14: Q3 Store Count Activity
Q3 STORE COUNT ACTIVITY * End of Q3 2012 includes 25 Gilly Hicks stores, 18 in the U.S. and seven in Europe. TOTAL U.S. CANADA EUROPE ASIAALL BRANDS* HOLLISTER CO. A&F abercrombie kids START OF Q3 2012 OPENINGS CLOSINGS END OF Q3 2012 START OF Q3 2012 OPENINGS CLOSINGS END OF Q3 2012 START OF Q3 201
Slide 15: Strategic Initiatives
STRATEGIC INITIATIVES MERCHANDISING INITIATIVES INVENTORY OPTIMIZATION INSIGHT & INTELLIGENCE CUSTOMER ENGAGEMENT AUC REDUCTION EXPENSE REDUCTION U.S. STORE CLOSURES 14