Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Telsey Advisory Group 3rd Annual Fall Consumer Conference 2012
14 slides from Abercrombie & Fitch's conference presentation, Oct 5, 2012
Slide 1: Telsey Advisory Group 3rd Annual Fall Consumer Conference
1 TELSEY ADVISORY GROUP 3rd ANNUAL FALL CONSUMER CONFERENCE OCTOBER 2, 2012
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: Strategic Objective
STRATEGIC OBJECTIVE LEVERAGE THE INTERNATIONAL APPEAL OF OUR ICONIC BRANDS TO BUILD A HIGHLY PROFITABLE, SUSTAINABLE, GLOBAL BUSINESS
Slide 4: International Operations, Capital Allocation, Domestic Store Profitability, Direct-to-Consumer
INTERNATIONAL OPERATIONS CAPITAL ALLOCATION PHILOSOPHY DOMESTIC STORE PROFITABILITY DIRECT-TO-CONSUMER BUSINESS
Slide 5: International Sales Share
INTERNATIONAL SALES SHARE 25% 30% 20% 15% 10% 5% 0% FY08 Q2 FY12 Q2 >30% <10%
Slide 6: Hollister Europe Store Operating Margins
HOLLISTER EUROPE OF STORES ACHIEVING 4-WALL OPERATING MARGINS OF 30% OR GREATER 90% HOLLISTER FLAGSHIP - REGENT STREET
Slide 7: A&F Flagships Europe Store-Level ROI
COMBINED TRAILING TWELVE MONTH STORE-LEVEL ROI >35% A&F FLAGSHIPS - EUROPE A&F FLAGSHIP - BRUSSELS
Slide 8: A&F Flagships Europe 4-Wall Operating Margin
OR HIGHER 4-WALL OPERATING MARGIN IN ALL BUT TWO STORES 25% A&F FLAGSHIPS - EUROPE A&F FLAGSHIP - PARIS
Slide 9: A&F International Openings
A&F INTERNATIONAL OPENINGS TIMING TYPECITY HONG KONG MUNICH DUBLIN AMSTERDAM SEOUL SHANGHAI LONDON FLAGSHIP A&F and kids FLAGSHIP TIER 1 / FLAGSHIP TIER 1 / FLAGSHIP TIER 1 / FLAGSHIP FLAGSHIP kids FLAGSHIP AUGUST 11, 2012 Q3 2012 Q4 2012 Q4 2012 2013 FALL 2013 TBD A&F FLAGSHIP - HONG KONG
Slide 10: Direct-to-Consumer Business
DIRECT-TO-CONSUMER BUSINESS 25% 10 SUCCESSIVE QUARTERS WITH YEAR-OVER-YEAR SALES GROWTH OF AT LEAST
Slide 11: Domestic Store Profitability Initiatives
DOMESTIC STORE PROFITABILITY INITIATIVES MERCHANDISE INITIATIVES INVENTORY OPTIMIZATION INSIGHT & INTELLIGENCE CUSTOMER ENGAGEMENT STORE RATIONALIZATION EXPENSE AND AUC REDUCTION
Slide 12: Capital Allocation Philosophy
HIGH RETURN INTERNATIONAL STORE GROWTH OPERATIONAL INVESTMENTS SHARE REPURCHASES DIVIDENDS CAPITAL ALLOCATION PHILOSOPHY
Slide 13: Use of Cash - Last 6 Quarters
NEW STORES SHARE REPURCHASES OTHER CAPEX(1) DIVIDENDS TOTAL $360.2 $357.8 $155.3 $90.2 $963.5 (1) Other Capex includes maintenance capex, IT, DTC, and DC investments USE OF CASH - LAST 6 QUARTERS $360.2 $357.8 $155.3 $90.2 DIVIDENDS NEW STORES SHARE REPURCHASES OTHER CAPEX(1)
Slide 14: Strategic Objective
STRATEGIC OBJECTIVE LEVERAGE THE INTERNATIONAL APPEAL OF OUR ICONIC BRANDS TO BUILD A HIGHLY PROFITABLE, SUSTAINABLE, GLOBAL BUSINESS
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