Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q1 2014 Earnings Presentation
12 slides from Abercrombie & Fitch's earnings presentation, Jun 3, 2014
Slide 1: Investor Presentation 2014 First Quarter
INVESTOR PRESENTATION 2014 FIRST 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: Q1 Adjusted P&L Summary
Q1 ADJUSTED P&L SUMMARY * 2013 2014 % OF NET SALES UNAUDITED UNAUDITED % OF NET SALES NET SALES GROSS PROFIT OPERATING EXPENSE OTHER OPERATING INCOME, NET OPERATING LOSS INTEREST EXPENSE, NET LOSS BEFORE TAXES TAX BENEFIT NET LOSS NET INCOME PER SHARE BASIC AND DILUTED WEIGHTED-AVERAGE SHARES OUTSTA
Slide 4: Excluded Charges (Pre-Tax)
Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 YEAR TO DATE FULL YEAR 2014 2013 $3,061 $13,839$2,575 $44,708 $36,792 $3,674 $3,144 $43,610 $7,591 $43,571 $95,869$2,575 $3,061 $6,903 $46,715 $6,903 $15,598 $142,054 $15,598 $5,633 $81,500 $5,633 -- GILLY HICKS RESTRUCTURING CHARGES PROFIT IMPROVEMENT INITIATIVE CHARGES CORP
Slide 5: Q1 Comparable Sales and Geographic Sales Mix
TOTAL COMPANY GEOGRAPHIC: U.S. INTERNATIONAL BRAND: ABERCROMBIE & FITCH abercrombie kids HOLLISTER CO. - 4% - 4% - 5% - 1% - 6% - 7% Q1 COMPARABLE SALES * 63.8% U.S. 36.2% INTERNATIONAL GEOGRAPHIC SALES MIXQ1 * Includes comparable store and DTC sales 5
Slide 6: Q1 Adjusted Operating Expense
Q1 ADJUSTED OPERATING EXPENSE* 20132014 % OF NET SALESFIRST QUARTER % OF NET SALES bps(3) STORE OCCUPANCY (1) ALL OTHER (2) STORES AND DISTRIBUTION MARKETING, GENERAL & ADMINISTRATIVE TOTAL 259,330 449,125 118,780 $188,721 $189,795 228,086 416,807 114,381 $531,187 $567,905 22.6% 30 30.9% (320) 53.5%
Slide 7: Q1 Operating Income by Segment
* 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 8: Q1 Share Repurchases
Q1 SHARE REPURCHASES 3,825.7 - - $150,000 - - $39.21 - - 349.7 $16,305 $46.63 $39.21 $99,501 $48.94 $150,000 $115,806 $48.603,825.7 2,382.7 2,033.0 SHARES REPURCHASED SHARES REPURCHASEDCOST COST AVERAGE COST AVERAGE COST 2014 2013 FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER TOTAL 8
Slide 9: 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 77 107 129 129 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 7 2 2 2 1 1 3 3 2 2 1 1 2 2 1 1 19 38 4 3 3 3 10 18 1 1 2008 2009 2010 2012 2013 Q1 20142011 CANA
Slide 10: 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, the effect of any additional share repurchases, or the effect of var
Slide 11: Q1 Store Count Activity
Q1 STORE COUNT ACTIVITY (1) End of Q1 2014 includes one Gilly Hicks store in the U.S. (2) Asia includes Australia and UAE. TOTAL U.S. CANADA EUROPE ASIA (2)ALL BRANDS(1) HOLLISTER CO. A&F abercrombie kids START OF Q1 2014 OPENINGS CLOSINGS END OF Q1 2014 START OF Q1 2014 OPENINGS CLOSINGS END OF Q1
Slide 12: GAAP to Adjusted Non-GAAP Reconciliation
(1) Excluded charges for the first quarter include pre-tax charges of $5.6 million related to the restructuring of the Gilly Hicks brand, $3.1 million related to the Company’s profit improvement initiative and $6.9 million for legal, advisory and other charges related to certain corporate governance