Abercrombie & Fitch Company · NYSE:ANF
Abercrombie & Fitch — Q4 2015 Earnings Presentation
16 slides from Abercrombie & Fitch's earnings presentation, Mar 3, 2016
Slide 1: Investor Presentation 2015 Fourth Quarter
INVESTOR PRESENTATION 2015 FOURTH QUARTER
Slide 2: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
2 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 ri
Slide 3: Q4 Adjusted P&L Summary
3 Q4 ADJUSTED P&L SUMMARY* * The Q4 Adjusted P&L Summary for the current and prior periods is presented on a non-GAAP basis and excludes the effect of certain items, set out on page 5, which the company believes do not reflect its future operating outlook. 2015 % OF NET SALES 2014 % OF NET SALES NET
Slide 4: Full Year Adjusted P&L Summary
4 FULL YEAR ADJUSTED P&L SUMMARY* * The Full Year Adjusted P&L Summary for the current and prior periods is presented on a non-GAAP basis and excludes the effect of certain items, set out on page 5, which the company believes do not reflect its future operating outlook. 2015 % OF NET SALES 2014 % OF
Slide 5: Excluded Items (Pre-Tax)
5 EXCLUDED ITEMS (PRE-TAX) 2015 Q1 Q2 Q3 Q4 FULL YEAR INVENTORY WRITE-DOWN (RECOVERY) $26,861 $(2,621) $(2,573) $(1,020) $20,647 LEGAL SETTLEMENT CHARGES — 15,753 — — 15,753 ASSET IMPAIRMENT, STORE FIXTURES, LEASE TERMINATION AND STORE CLOSURE COSTS 10,112 1,394 12,659 2,211 26,376 PROFIT IMPROVEMEN
Slide 6: Fiscal 2015 Comparable Sales by Brand
6 * Comparable sales are calculated on a constant currency basis. Sales include store and DTC sales. (1) Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. FISCAL 2015 COMPARABLE SALES BY BRAND* ABERCROMBIE HOLLISTER TOTAL COMPANY Q1 Q2 Q3 Q4 (9)% (7)% (5)% (2)% (6)%
Slide 7: Fiscal 2015 Comparable Sales by Geography
7 * Comparable sales are calculated on a constant currency basis. Sales include store and DTC sales. FISCAL 2015 COMPARABLE SALES BY GEOGRAPHY* UNITED STATES INTERNATIONAL Q1 Q2 Q3 Q4 (7)% (4)% (3)% (1)% (9)% 1% 6% 0% 5% (5)% (10)% COMPARABLE SALE S
Slide 8: Fiscal 2015 Sales Mix
8 * Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. FISCAL 2015 SALES MIX* Q4 ABERCROMBIE 45.8% HOLLISTER 54.2% FULL YEAR ABERCROMBIE 46.6% HOLLISTER53.4% BRAN D INTERNATIONAL 33.0% UNITED STATES 67.0% INTERNATIONAL 35.1% UNITED STATES 64.9% GEOGRAPH Y
Slide 9: Foreign Currency Exchange Rates
9 * Source: Bloomberg; figures represent the average daily exchange rate by fiscal quarter. FOREIGN CURRENCY EXCHANGE RATES EURO GBP AVERAGE FX RATES* $1.80 $1.70 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 EU RO /G BP TO US D Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 $1.38 $1.36 $1.30 $
Slide 10: Q4 Adjusted Operating Expense
10 Q4 ADJUSTED OPERATING EXPENSE* * Q4 Adjusted Operating Expense for the current and prior periods is presented on a non-GAAP basis and excludes the effect of certain items, set out on page 5, which the company believes do not reflect its future operating outlook. (1) Includes rent, other landlord
Slide 11: Share Repurchases
11 SHARE REPURCHASES FY 2015 FY 2014 SHARES REPURCHASED COST AVERAGE COST SHARES REPURCHASED COST AVERAGE COST Q1 — — — 3,825.7 $150,000 $39.21 Q2 — — — 1,459.4 $60,000 $41.11 Q3 2,460.5 $50,029 $20.33 2,039.0 $75,038 $36.80 Q4 — — — — — — FULL YEAR 2,460.5 $50,029 $20.33 7,324.1 $285,038 $38.92
Slide 12: Q4 Store Openings
12 Q4 STORE OPENINGS BRAND CENTER CITY DATE INTERN ATIONA L A&F Lalaport Expocity Suita, Japan 11/16/2015 Hollister Lalaport Expocity Suita, Japan 11/16/2015 A&F+kids Shanghai IFC Shanghai, China 12/19/2015 A&F+kids Mall of the Emirates Dubai, UAE 12/26/2015 Hollister Deira City Centre Dubai, UAE 12
Slide 13: Q4 Store Count Activity
13 Q4 STORE COUNT ACTIVITY (1) Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. Locations with abercrombie kids carveouts within Abercrombie & Fitch stores are represented as a single store count. Excludes one international franchise store as of January 30, 2016. (
Slide 14: Strategic Initiatives
14 STRATEGIC INITIATIVES CUSTOMER CENTRICITY BRAND POSITIONING COMPELLING ASSORTMENTS CONTINUOUS PROFITIMPROVEMENT OPTIMIZE BRAND REACH ORGANIZE TO WIN
Slide 15: Outlook
15 OUTLOOK* FOR FISCAL 2016, THE COMPANY EXPECTS: • FLAT TO SLIGHTLY POSITIVE COMPARABLE SALES • ADVERSE EFFECTS FROM FOREIGN CURRENCY ON SALES OF APPROXIMATELY $50 MILLION • A GROSS MARGIN RATE APPROXIMATELY FLAT TO LAST YEAR'S ADJUSTED NON-GAAP RATE OF 61.9%, BUT UP ON A CONSTANT CURRENCY BASIS •
Slide 16: Est. 1892 Abercrombie
EST. 1892 Abercrombie