NEW ALBANY, Ohio, March 01, 2023 (GLOBE NEWSWIRE) -- Abercrombie & Fitch Co. (NYSE: ANF) today announced results for the fourth quarter and fiscal year ended January 28, 2023. These compare to results for the fourth quarter and fiscal year ended January 29, 2022. Descriptions of the use of non-GAAP financial measures and reconciliations of GAAP and non-GAAP financial measures accompany this release.
Fran Horowitz, Chief Executive Officer, said, “We had a solid finish to the quarter delivering year-over-year, fourth quarter net sales growth of 3% on a reported basis and 5% on a constant currency basis. Results were driven by continued, strong momentum in the Abercrombie & Fitch brand and sequential improvement in Hollister as we continue to stabilize the brand’s performance.
As we look to 2023, we remain cautiously optimistic on consumer demand. Our Abercrombie & Fitch brand continues to be a leader in the industry, and multiple actions we have taken in the Hollister brand are resulting in sequential net sales trend improvement. We are pleased with our inventory levels and each of our brands is in a position to chase. While we expect to see net product cost benefits in 2023, we will continue to tightly manage our expenses, inventory and cash flow to properly balance investing for the long-term while improving profitability as we execute to deliver our 2025 Always Forward Plan.”
Details related to net income per diluted share for the fourth quarter and full year are as follows:
| Fourth Quarter | Full Year | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| GAAP | $ | 0.75 | $ | 1.12 | $ | 0.05 | $ | 4.20 | ||||||||
| Excluded items, net of tax effect (1) | (0.07 | ) | (0.03 | ) | (0.20 | ) | (0.15 | ) | ||||||||
| Adjusted non-GAAP | $ | 0.81 | $ | 1.14 | $ | 0.25 | $ | 4.35 | ||||||||
| Impact from changes in foreign currency exchange rates (2) | — | (0.23 | ) | — | (0.36 | ) | ||||||||||
| Adjusted non-GAAP constant currency | $ | 0.81 | $ | 0.91 | $ | 0.25 | $ | 3.99 | ||||||||
(1) Excluded items consist of pre-tax store and other asset impairment charges and the tax effect of pre-tax excluded items.
(2) The estimated impact from foreign currency is calculated by applying current period exchange rates to prior year results using a 26% tax rate.
A summary of results for the fourth quarter ended January 28, 2023:
A summary of results for the full year ended January 28, 2023:
| Net Sales |
Net sales by brand and region for the fourth quarter and full year are as follows:
| Fourth Quarter | ||||||||||
| (in thousands) | 2022 | 2021 | 1 YR % Change | |||||||
| Net sales by brand: | ||||||||||
| Hollister (1) | $ | 639,376 | $ | 668,777 | (4 | )% | ||||
| Abercrombie (2) | 560,438 | 492,576 | 14 | % | ||||||
| Total company | $ | 1,199,814 | $ | 1,161,353 | 3 | % | ||||
| Net sales by region: (3) | 2022 | 2021 | 1 YR % Change | |||||||
| United States | $ | 920,533 | $ | 841,687 | 9 | % | ||||
| EMEA | 195,253 | 226,074 | (14 | )% | ||||||
| APAC | 36,400 | 46,212 | (21 | )% | ||||||
| Other (4) | 47,628 | 47,380 | 1 | % | ||||||
| International | 279,281 | 319,666 | (13 | )% | ||||||
| Total company | $ | 1,199,814 | $ | 1,161,353 | 3 | % | ||||
| Full Year | ||||||||||
| (in thousands) | 2022 | 2021 | 1 YR % Change | |||||||
| Net sales by brand: | ||||||||||
| Hollister (1) | $ | 1,962,885 | $ | 2,147,979 | (9 | )% | ||||
| Abercrombie (2) | 1,734,866 | 1,564,789 | 11 | % | ||||||
| Total company | $ | 3,697,751 | $ | 3,712,768 | 0 | % | ||||
| Net sales by region: (3) | 2022 | 2021 | 1 YR % Change | |||||||
| United States | $ | 2,758,294 | $ | 2,652,158 | 4 | % | ||||
| EMEA | 665,828 | 755,072 | (12 | )% | ||||||
| APAC | 122,367 | 171,701 | (29 | )% | ||||||
| Other (4) | 151,262 | 133,837 | 13 | % | ||||||
| International | 939,457 | 1,060,610 | (11 | )% | ||||||
| Total company | $ | 3,697,751 | $ | 3,712,768 | 0 | % | ||||
(1) Hollister includes the Hollister, Gilly Hicks and Social Tourist brands.
(2) Abercrombie includes the Abercrombie & Fitch and abercrombie kids brands.
(3) Net sales by geographic area are presented by attributing revenues to an individual country on the basis of the country in which the merchandise was sold for in-store purchases and on the basis of the shipping location provided by customers for digital orders.
(4) Other includes all sales that do not fall within the United States, EMEA, or APAC regions, which are derived primarily in Canada.
| Financial Position and Liquidity |
As of January 28, 2023 the company had:
| Cash Flow and Capital Allocation |
Details related to the company's cash flows for the full year ended January 28, 2023 are as follows:
There were no share repurchases during the fourth quarter. For the full year ended January 28, 2023, the company repurchased approximately 4.8 million shares for approximately $126 million. The company has $232 million remaining on the share repurchase authorization established in November 2021.
For the full year ended January 28, 2023 the company purchased $8 million at a slight discount to par of its senior secured notes on the open market.
Depreciation and amortization was $132 million for fiscal 2022 as compared to $144 million in fiscal 2021.
| Fiscal 2023 Full Year Outlook |
For fiscal 2023, the company expects:
| Fiscal 2023 First Quarter Outlook |
For the first quarter of fiscal 2023, the company expects:
| Conference Call |
Today at 8:30 AM, ET, the company will conduct a conference call and provide additional details around its quarterly and full year results. To access the call by phone, participants will need to register at the following URL address to obtain a dial-in number and passcode.
https://register.vevent.com/register/BI6b447d172a9a4b7082fa7218276c42f5
A presentation of fourth quarter and full year results will be available in the “Investors” section at corporate.abercrombie.com at approximately 7:30 AM ET, today. Important information may be disseminated initially or exclusively via the website; investors should consult the site to access this information.
| Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 |
This Press Release and related statements by management or spokespeople of Abercrombie & Fitch Co. (A&F) contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements, including, without limitation, statements regarding our first quarter and annual fiscal 2023 results, relate to our current assumptions, projections and expectations about our business and future events. Any such forward-looking statements involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the company’s control. The inclusion of such information should not be regarded as a representation by the company, or any other person, that the objectives of the company will be achieved. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “should,” “are confident,” “will,” “could,” “outlook,” and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we assume no obligation to publicly update or revise any forward-looking statements, including any financial targets or estimates, whether as a result of new information, future events, or otherwise. Factors that may cause results to differ from those expressed in our forward-looking statements include, but are not limited to, the factors disclosed in Part I, Item 1A. “Risk Factors” of the company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2022, and otherwise in our reports and filings with the Securities and Exchange Commission, as well as the following factors: risks related to changes in global economic and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits; risks related to recent inflationary pressures with respect to labor and raw materials and global supply chain constraints that have, and could continue, to affect freight, transit, and other costs; risks and uncertainty related to the COVID‐19 pandemic and any other adverse public health developments; risks related to geopolitical conflict, including the on-going hostilities in Ukraine, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience; risks related to our failure to engage our customers, anticipate customer demand and changing fashion trends, and manage our inventory commensurately; risks related to our failure to operate effectively in a highly competitive and constantly evolving industry; risks related to our ability to execute on our strategic initiatives, including our Always Forward Plan; risks related to fluctuations in foreign currency exchange rates; risks related to fluctuations in our tax obligations and effective tax rate, including as a result of earnings and losses generated from our international operations, may result in volatility in our results of operations; risks associated with corporate responsibility issues; risks related to cybersecurity threats and privacy or data security breaches; and the potential loss or disruption to our information systems.
| Other Information |
This document includes certain adjusted non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Additional details about non-GAAP financial measures and a reconciliation of GAAP financial measures to non-GAAP financial measures can be found in the "Reporting and Use of GAAP and Non-GAAP Measures" section. Sub-totals and totals may not foot due to rounding. Net income (loss) and net income (loss) per share financial measures included herein are attributable to Abercrombie & Fitch Co., excluding net income attributable to noncontrolling interests.
As used in this document, unless otherwise defined "Hollister" refers to the company's Hollister, Gilly Hicks, and Social Tourist brands and "Abercrombie" refers to the company's Abercrombie & Fitch and abercrombie kids brands.
| About Abercrombie & Fitch Co. |
Abercrombie & Fitch Co. (NYSE: ANF) is a leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids through five renowned brands. The iconic Abercrombie & Fitch brand was born in 1892 and aims to make every day feel as exceptional as the start of a long weekend. abercrombie kids sees the world through kids’ eyes, where play is life and every day is an opportunity to be anything and better anything. The Hollister brand believes in liberating the spirit of an endless summer inside everyone and making teens feel celebrated and comfortable in their own skin. Gilly Hicks, offering active lifestyle products, is designed to create happiness through movement. Social Tourist, the creative vision of Hollister and social media personalities, Dixie and Charli D’Amelio, offers trend forward apparel that allows teens to experiment with their style, while exploring the duality of who they are both on social media and in real life.
The brands share a commitment to offering products of enduring quality and exceptional comfort that allow consumers around the world to express their own individuality and style. Abercrombie & Fitch Co. operates approximately 770 stores under these brands across North America, Europe, Asia and the Middle East, as well as the e-commerce sites www.abercrombie.com, www.abercrombiekids.com, www.hollisterco.com, www.gillyhicks.com and www.socialtourist.com.
| Investor Contact: | Media Contact: | |
| Mohit Gupta | Kate Wagner | |
| Abercrombie & Fitch Co. | Abercrombie & Fitch Co. | |
| (614) 283-6751 | (614) 283-6192 | |
| Investor_Relations@anfcorp.com | Public_Relations@anfcorp.com |
| Abercrombie & Fitch Co. | |||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| (Unaudited) | |||||||||||||
| Thirteen Weeks Ended | Thirteen Weeks Ended | ||||||||||||
| January 28, 2023 | % of Net Sales | January 29, 2022 | % of Net Sales | ||||||||||
| Net sales | $ | 1,199,814 | 100.0 | % | $ | 1,161,353 | 100.0 | % | |||||
| Cost of sales, exclusive of depreciation and amortization | 531,529 | 44.3 | % | 484,221 | 41.7 | % | |||||||
| Gross profit | 668,285 | 55.7 | % | 677,132 | 58.3 | % | |||||||
| Stores and distribution expense | 437,264 | 36.4 | % | 435,153 | 37.5 | % | |||||||
| Marketing, general and administrative expense | 138,084 | 11.5 | % | 145,686 | 12.5 | % | |||||||
| Asset impairment | 4,695 | 0.4 | % | 1,901 | 0.2 | % | |||||||
| Other operating expense (income), net | 1,220 | 0.1 | % | (3,741 | ) | (0.3 | )% | ||||||
| Operating income | 87,022 | 7.3 | % | 98,133 | 8.4 | % | |||||||
| Interest expense, net | 4,113 | 0.3 | % | 6,959 | 0.6 | % | |||||||
| Income before income taxes | 82,909 | 6.9 | % | 91,174 | 7.9 | % | |||||||
| Income tax expense | 42,218 | 3.5 | % | 23,348 | 2.0 | % | |||||||
| Net income | 40,691 | 3.4 | % | 67,826 | 5.8 | % | |||||||
| Less: Net income attributable to noncontrolling interests | 2,358 | 0.2 | % | 2,317 | 0.2 | % | |||||||
| Net income attributable to A&F | $ | 38,333 | 3.2 | % | $ | 65,509 | 5.6 | % | |||||
| Net income per share attributable to A&F | |||||||||||||
| Basic | $ | 0.78 | $ | 1.18 | |||||||||
| Diluted | $ | 0.75 | $ | 1.12 | |||||||||
| Weighted-average shares outstanding: | |||||||||||||
| Basic | 49,216 | 55,740 | |||||||||||
| Diluted | 51,217 | 58,700 | |||||||||||
| Abercrombie & Fitch Co. | |||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| (Unaudited) | |||||||||||||
| Fifty-Two Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||
| January 28, 2023 | % of Net Sales | January 29, 2022 | % of Net Sales | ||||||||||
| Net sales | $ | 3,697,751 | 100.0 | % | $ | 3,712,768 | 100.0 | % | |||||
| Cost of sales, exclusive of depreciation and amortization | 1,593,213 | 43.1 | % | 1,400,773 | 37.7 | % | |||||||
| Gross profit | 2,104,538 | 56.9 | % | 2,311,995 | 62.3 | % | |||||||
| Stores and distribution expense | 1,482,931 | 40.1 | % | 1,428,323 | 38.5 | % | |||||||
| Marketing, general and administrative expense | 517,602 | 14.0 | % | 536,815 | 14.5 | % | |||||||
| Asset impairment | 14,031 | 0.4 | % | 12,100 | 0.3 | % | |||||||
| Other operating income, net | (2,674 | ) | (0.1 | )% | (8,327 | ) | (0.2 | )% | |||||
| Operating income | 92,648 | 2.5 | % | 343,084 | 9.2 | % | |||||||
| Interest expense, net | 25,632 | 0.7 | % | 34,110 | 0.9 | % | |||||||
| Income before income taxes | 67,016 | 1.8 | % | 308,974 | 8.3 | % | |||||||
| Income tax expense | 56,631 | 1.5 | % | 38,908 | 1.0 | % | |||||||
| Net income | 10,385 | 0.3 | % | 270,066 | 7.3 | % | |||||||
| Less: Net income attributable to noncontrolling interests | 7,569 | 0.2 | % | 7,056 | 0.2 | % | |||||||
| Net income attributable to A&F | $ | 2,816 | 0.1 | % | $ | 263,010 | 7.1 | % | |||||
| Net income per share attributable to A&F | |||||||||||||
| Basic | $ | 0.06 | $ | 4.41 | |||||||||
| Diluted | $ | 0.05 | $ | 4.20 | |||||||||
| Weighted-average shares outstanding: | |||||||||||||
| Basic | 50,307 | 59,597 | |||||||||||
| Diluted | 52,327 | 62,636 | |||||||||||
Reporting and Use of GAAP and Non-GAAP Measures
The company believes that each of the non-GAAP financial measures presented are useful to investors as they provide a measure of the company’s operating performance excluding the effect of certain items which the company believes do not reflect its future operating outlook, such as asset impairment charges, therefore supplementing investors’ understanding of comparability of operations across periods. Management used these non-GAAP financial measures during the periods presented to assess the company’s performance and to develop expectations for future operating performance. Non-GAAP financial measures should be used supplemental to, and not as an alternative to, the company’s GAAP financial results, and may not be calculated in the same manner as similar measures presented by other companies.
In addition, at times the company provides comparable sales, defined as the percentage year-over-year change in the aggregate of: (1) sales for stores that have been open as the same brand at least one year and whose square footage has not been expanded or reduced by more than 20% within the past year, with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of foreign currency rate fluctuation, and (2) digital net sales with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of foreign currency rate fluctuation. In light of store closures related to COVID-19, the Company has not disclosed comparable sales for Fiscal 2022.
The company also provides certain financial information on a constant currency basis to enhance investors’ understanding of underlying business trends and operating performance, by removing the impact of foreign currency exchange rate fluctuations. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share effect from foreign currency is calculated using a 26% tax rate.
| Abercrombie & Fitch Co. | |||||||||||
| Schedule of Non-GAAP Financial Measures | |||||||||||
| Thirteen Weeks Ended January 28, 2023 | |||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| GAAP (1) | Excluded items | Adjusted non-GAAP | |||||||||
| Asset impairment (2) | $ | 4,695 | $ | 4,695 | $ | — | |||||
| Operating income | 87,022 | (4,695 | ) | 91,717 | |||||||
| Income before income taxes | 82,909 | (4,695 | ) | 87,604 | |||||||
| Income tax expense (3) | 42,218 | (1,297 | ) | 43,515 | |||||||
| Net income attributable to A&F | $ | 38,333 | $ | (3,398 | ) | $ | 41,731 | ||||
| Net income per diluted share attributable to A&F | $ | 0.75 | $ | (0.07 | ) | $ | 0.81 | ||||
| Diluted weighted-average shares outstanding: | 51,217 | 51,217 | |||||||||
(1) “GAAP” refers to accounting principles generally accepted in the United States of America.
(2) Excluded items consist of pre-tax store and other asset impairment charges of $4.7 million.
(3) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.
| Abercrombie & Fitch Co. | |||||||||||
| Schedule of Non-GAAP Financial Measures | |||||||||||
| Thirteen Weeks Ended January 29, 2022 | |||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| GAAP (1) | Excluded items | Adjusted non-GAAP | |||||||||
| Asset impairment (2) | $ | 1,901 | $ | 1,901 | $ | — | |||||
| Operating income | 98,133 | (1,901 | ) | 100,034 | |||||||
| Income before income taxes (2) | 91,174 | (1,901 | ) | 93,075 | |||||||
| Income tax expense (3) | 23,348 | (373 | ) | 23,721 | |||||||
| Net income attributable to A&F | $ | 65,509 | $ | (1,528 | ) | $ | 67,037 | ||||
| Net income per diluted share attributable to A&F | $ | 1.12 | $ | (0.03 | ) | $ | 1.14 | ||||
| Diluted weighted-average shares outstanding: | 58,700 | 58,700 | |||||||||
(1) “GAAP” refers to accounting principles generally accepted in the United States of America.
(2) Excluded items consist of pre-tax store asset impairment charges of $1.9 million.
(3) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.
| Abercrombie & Fitch Co. | |||||||||||
| Schedule of Non-GAAP Financial Measures | |||||||||||
| Fifty-Two Weeks Ended January 28, 2023 | |||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| GAAP (1) | Excluded items | Adjusted non-GAAP | |||||||||
| Asset impairment (2) | $ | 14,031 | $ | 14,031 | $ | — | |||||
| Operating income | 92,648 | (14,031 | ) | 106,679 | |||||||
| Income before income taxes | 67,016 | (14,031 | ) | 81,047 | |||||||
| Income tax expense (3) | 56,631 | (3,802 | ) | 60,433 | |||||||
| Net income attributable to A&F | $ | 2,816 | $ | (10,229 | ) | $ | 13,045 | ||||
| Net income per diluted share attributable to A&F | $ | 0.05 | $ | (0.20 | ) | $ | 0.25 | ||||
| Diluted weighted-average shares outstanding: | 52,327 | 52,327 | |||||||||
(1) “GAAP” refers to accounting principles generally accepted in the United States of America.
(2) Excluded items consist of pre-tax store and other asset impairment charges of $14.0 million.
(3) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.
| Abercrombie & Fitch Co. | |||||||||||
| Schedule of Non-GAAP Financial Measures | |||||||||||
| Fifty-Two Weeks Ended January 29, 2022 | |||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| GAAP (1) | Excluded Items | Adjusted Non-GAAP | |||||||||
| Asset impairment (2) | $ | 12,100 | $ | 12,100 | $ | — | |||||
| Operating income | 343,084 | (12,100 | ) | 355,184 | |||||||
| Income before income taxes | 308,974 | (12,100 | ) | 321,074 | |||||||
| Income tax expense (3) | 38,908 | (2,421 | ) | 41,329 | |||||||
| Net income attributable to A&F | $ | 263,010 | $ | (9,679 | ) | $ | 272,689 | ||||
| Net income per diluted share attributable to A&F | $ | 4.20 | $ | (0.15 | ) | $ | 4.35 | ||||
| Diluted weighted-average shares outstanding: | 62,636 | 62,636 | |||||||||
(1) “GAAP” refers to accounting principles generally accepted in the United States of America.
(2) Excluded items consist of pre-tax store asset impairment charges of $12.1 million.
(3) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.
| Abercrombie & Fitch Co. | |||||||||
| Reconciliation of Constant Currency Financial Measures | |||||||||
| Thirteen Weeks Ended January 28, 2023 and January 29, 2022 | |||||||||
| (in thousands, except percentage and basis point changes and per share data) | |||||||||
| (Unaudited) | |||||||||
| Net sales | 2022 | 2021 | % Change | ||||||
| GAAP (1) | $ | 1,199,814 | $ | 1,161,353 | 3% | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (23,290 | ) | 2% | |||||
| Net sales on a constant currency basis | $ | 1,199,814 | $ | 1,138,063 | 5% | ||||
| Gross profit | 2022 | 2021 | BPS Change (3) | ||||||
| GAAP (1) | $ | 668,285 | $ | 677,132 | (260) | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (25,027 | ) | 100 | |||||
| Gross profit on a constant currency basis | $ | 668,285 | $ | 652,105 | (160) | ||||
| Operating income | 2022 | 2021 | BPS Change (3) | ||||||
| GAAP (1) | $ | 87,022 | $ | 98,133 | (110) | ||||
| Excluded items (4) | (4,695 | ) | (1,901 | ) | 10 | ||||
| Adjusted non-GAAP | $ | 91,717 | $ | 100,034 | (100) | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (18,145 | ) | 140 | |||||
| Adjusted non-GAAP constant currency basis | $ | 91,717 | $ | 81,889 | 40 | ||||
| Net income per share attributable to A&F | 2022 | 2021 | $ Change | ||||||
| GAAP (1) | $ | 0.75 | $ | 1.12 | $(0.37) | ||||
| Excluded items, net of tax (4) | (0.07 | ) | (0.03 | ) | 0.04 | ||||
| Adjusted non-GAAP | $ | 0.81 | $ | 1.14 | $(0.33) | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (0.23 | ) | 0.23 | |||||
| Adjusted non-GAAP on a constant currency basis | $ | 0.81 | $ | 0.91 | $(0.10) | ||||
(1) “GAAP” refers to accounting principles generally accepted in the United States of America.
(2) The estimated impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share estimated impact from foreign currency is calculated using a 26% tax rate.
(3) The estimated basis point change has been rounded based on the percentage change.
(4) Excluded items consist of pre-tax asset store impairment charges of $4.7 million and $1.9 million for the current year and prior year, respectively.
| Abercrombie & Fitch Co. | |||||||||
| Reconciliation of Constant Currency Financial Measures | |||||||||
| Fifty-Two Weeks Ended January 28, 2023 and January 29, 2022 | |||||||||
| (in thousands, except percentage and basis point changes and per share data) | |||||||||
| (Unaudited) | |||||||||
| Net sales | 2022 | 2021 | % Change | ||||||
| GAAP (1) | $ | 3,697,751 | $ | 3,712,768 | 0% | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (81,803 | ) | 2% | |||||
| Net sales on a constant currency basis | $ | 3,697,751 | $ | 3,630,965 | 2% | ||||
| Gross profit | 2022 | 2021 | BPS Change (3) | ||||||
| GAAP (1) | $ | 2,104,538 | $ | 2,311,995 | (540) | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (66,846 | ) | 50 | |||||
| Gross profit on a constant currency basis | $ | 2,104,538 | $ | 2,245,149 | (490) | ||||
| Operating income | 2022 | 2021 | BPS Change (3) | ||||||
| GAAP (1) | $ | 92,648 | $ | 343,084 | (670) | ||||
| Excluded items (4) | (14,031 | ) | (12,100 | ) | 0 | ||||
| Adjusted non-GAAP | $ | 106,679 | $ | 355,184 | (670) | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (30,130 | ) | 60 | |||||
| Adjusted non-GAAP on a constant currency basis | $ | 106,679 | $ | 325,054 | (610) | ||||
| Net income per share attributable to A&F | 2022 | 2021 | $ Change | ||||||
| GAAP (1) | $ | 0.05 | $ | 4.20 | $(4.15) | ||||
| Excluded items, net of tax (4) | (0.20 | ) | (0.15 | ) | (0.05) | ||||
| Adjusted non-GAAP | $ | 0.25 | $ | 4.35 | $(4.10) | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (0.36 | ) | 0.36 | |||||
| Adjusted non-GAAP on a constant currency basis | $ | 0.25 | $ | 3.99 | $(3.74) | ||||
(1) “GAAP” refers to accounting principles generally accepted in the United States of America.
(2) The estimated impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share estimated impact from foreign currency is calculated using a 26% tax rate.
(3) The estimated basis point change has been rounded based on the percentage change.
(4) Excluded items consist of pre-tax asset store impairment charges of $14.0 million and $12.1 million for the current year and prior year, respectively.
| Abercrombie & Fitch Co. | |||||||||||||||
| Reconciliation of Constant Currency Net Sales by Brand and Geography | |||||||||||||||
| Thirteen Weeks Ended January 28, 2023 and January 29, 2022 | |||||||||||||||
| (in thousands, except percentage changes) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| 2022 | 2021 | GAAP % Change | Non-GAAP Constant Currency Basis % Change | ||||||||||||
| GAAP | GAAP | Impact From Changes In Foreign Currency Exchanges Rates (1) | Non-GAAP Constant Currency Basis | ||||||||||||
| Net sales by brand: | |||||||||||||||
| Hollister (2) | $ | 639,376 | $ | 668,777 | $ | (15,575 | ) | $ | 653,202 | (4 | )% | (2 | )% | ||
| Abercrombie (3) | 560,438 | 492,576 | (7,715 | ) | 484,861 | 14 | % | 16 | % | ||||||
| Total company | $ | 1,199,814 | $ | 1,161,353 | $ | (23,290 | ) | $ | 1,138,063 | 3 | % | 5 | % | ||
| 2022 | 2021 | GAAP % Change | Non-GAAP Constant Currency Basis % Change | ||||||||||||
| GAAP | GAAP | Impact From Changes In Foreign Currency Exchanges Rates (1) | Non-GAAP Constant Currency Basis | ||||||||||||
| Net sales by region: (4) | |||||||||||||||
| United States | $ | 920,533 | $ | 841,687 | $ | — | $ | 841,687 | 9 | % | 9 | % | |||
| EMEA | 195,253 | 226,074 | (15,839 | ) | 210,235 | (14 | )% | (7 | )% | ||||||
| APAC | 36,400 | 46,212 | (4,600 | ) | 41,612 | (21 | )% | (13 | )% | ||||||
| Other (5) | 47,628 | 47,380 | (2,851 | ) | 44,529 | 1 | % | 7 | % | ||||||
| International | $ | 279,281 | $ | 319,666 | $ | (23,290 | ) | $ | 296,376 | (13 | )% | (6 | )% | ||
| Total company | $ | 1,199,814 | $ | 1,161,353 | $ | (23,290 | ) | $ | 1,138,063 | 3 | % | 5 | % | ||
(1) The estimated impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share estimated impact from foreign currency is calculated using a 26% tax rate.
(2) Hollister includes the Hollister, Gilly Hicks and Social Tourist brands.
(3) Abercrombie includes the Abercrombie & Fitch and abercrombie kids brands.
(4) Net sales by geographic area are presented by attributing revenues to an individual country on the basis of the country in which the merchandise was sold for in-store purchases and on the basis of the shipping location provided by customers for digital orders.
(5) Other includes all sales that do not fall within the United States, EMEA, or APAC regions, which are derived primarily in Canada.
| Abercrombie & Fitch Co. | |||||||||||||||
| Reconciliation of Constant Currency Net Sales by Brand and Geography | |||||||||||||||
| Fifty-Two Weeks Ended January 28, 2023 and January 29, 2022 | |||||||||||||||
| (in thousands, except percentage changes) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| 2022 | 2021 | GAAP % Change | Non-GAAP Constant Currency Basis % Change | ||||||||||||
| GAAP | GAAP | Impact From Changes In Foreign Currency Exchanges Rates (1) | Non-GAAP Constant Currency Basis | ||||||||||||
| Net sales by brand: | |||||||||||||||
| Hollister (2) | $ | 1,962,885 | $ | 2,147,979 | $ | (56,855 | ) | $ | 2,091,124 | (9 | )% | (6 | )% | ||
| Abercrombie (3) | 1,734,866 | 1,564,789 | (24,948 | ) | 1,539,841 | 11 | % | 13 | % | ||||||
| Total company | $ | 3,697,751 | $ | 3,712,768 | $ | (81,803 | ) | $ | 3,630,965 | — | % | 2 | % | ||
| 2022 | 2021 | GAAP % Change | Non-GAAP Constant Currency Basis % Change | ||||||||||||
| GAAP | GAAP | Impact From Changes In Foreign Currency Exchanges Rates (1) | Non-GAAP Constant Currency Basis | ||||||||||||
| Net sales by region: (4) | |||||||||||||||
| United States | $ | 2,758,294 | $ | 2,652,158 | $ | — | $ | 2,652,158 | 4 | % | 4 | % | |||
| EMEA | 665,828 | 755,072 | (61,083 | ) | 693,989 | (12 | )% | (4 | )% | ||||||
| APAC | 122,367 | 171,701 | (14,119 | ) | 157,582 | (29 | )% | (22 | )% | ||||||
| Other (5) | 151,262 | 133,837 | (6,601 | ) | 127,236 | 13 | % | 19 | % | ||||||
| International | $ | 939,457 | $ | 1,060,610 | $ | (81,803 | ) | $ | 978,807 | (11 | )% | (4 | )% | ||
| Total company | $ | 3,697,751 | $ | 3,712,768 | $ | (81,803 | ) | $ | 3,630,965 | — | % | 2 | % | ||
(1) The estimated impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share estimated impact from foreign currency is calculated using a 26% tax rate.
(2) Hollister includes the Hollister, Gilly Hicks and Social Tourist brands.
(3) Abercrombie includes the Abercrombie & Fitch and abercrombie kids brands.
(4) Net sales by geographic area are presented by attributing revenues to an individual country on the basis of the country in which the merchandise was sold for in-store purchases and on the basis of the shipping location provided by customers for digital orders.
(5) Other includes all sales that do not fall within the United States, EMEA, or APAC regions, which are derived primarily in Canada.
| Abercrombie & Fitch Co. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| (Unaudited) | |||||||
| January 28, 2023 | January 29, 2022 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and equivalents | $ | 517,602 | $ | 823,139 | |||
| Receivables | 104,506 | 69,102 | |||||
| Inventories | 505,621 | 525,864 | |||||
| Other current assets | 100,289 | 89,654 | |||||
| Total current assets | 1,228,018 | 1,507,759 | |||||
| Property and equipment, net | 551,585 | 508,336 | |||||
| Operating lease right-of-use assets | 723,550 | 698,231 | |||||
| Other assets | 209,947 | 225,165 | |||||
| Total assets | $ | 2,713,100 | $ | 2,939,491 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 258,895 | $ | 374,829 | |||
| Accrued expenses | 413,303 | 395,815 | |||||
| Short-term portion of operating lease liabilities | 213,979 | 222,823 | |||||
| Income taxes payable | 16,023 | 21,773 | |||||
| Total current liabilities | 902,200 | 1,015,240 | |||||
| Long-term liabilities: | |||||||
| Long-term portion of operating lease liabilities | $ | 713,361 | $ | 697,264 | |||
| Long-term borrowings, net | 296,852 | 303,574 | |||||
| Other liabilities | 94,118 | 86,089 | |||||
| Total long-term liabilities | 1,104,331 | 1,086,927 | |||||
| Total Abercrombie & Fitch Co. stockholders’ equity | 694,841 | 826,090 | |||||
| Noncontrolling interests | 11,728 | 11,234 | |||||
| Total stockholders’ equity | 706,569 | 837,324 | |||||
| Total liabilities and stockholders’ equity | $ | 2,713,100 | $ | 2,939,491 | |||
| Abercrombie & Fitch Co. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (in thousands, except per share data) | |||||||
| (Unaudited) | |||||||
| Fifty-Two Weeks Ended | |||||||
| January 28, 2023 | January 29, 2022 | ||||||
| Operating activities | |||||||
| Net cash (used for) provided by operating activities | $ | (2,343 | ) | $ | 277,782 | ||
| Investing activities | |||||||
| Purchases of property and equipment | $ | (164,566 | ) | $ | (96,979 | ) | |
| Proceeds from the sale of property and equipment | 11,891 | — | |||||
| Withdrawal of Rabbi Trust assets | 12,000 | — | |||||
| Net cash used for investing activities | $ | (140,675 | ) | $ | (96,979 | ) | |
| Financing activities | |||||||
| Purchase of senior secured notes | (7,862 | ) | (46,969 | ) | |||
| Payment of debt issuance costs and fees | (181 | ) | (2,016 | ) | |||
| Purchases of common stock | (125,775 | ) | (377,290 | ) | |||
| Other financing activities | (21,511 | ) | (20,623 | ) | |||
| Net cash used for financing activities | $ | (155,329 | ) | $ | (446,898 | ) | |
| Effect of foreign currency exchange rates on cash | $ | (8,452 | ) | $ | (23,694 | ) | |
| Net decrease in cash and equivalents, and restricted cash and equivalents | $ | (306,799 | ) | $ | (289,789 | ) | |
| Cash and equivalents, and restricted cash and equivalents, beginning of period | $ | 834,368 | $ | 1,124,157 | |||
| Cash and equivalents, and restricted cash and equivalents, end of period | $ | 527,569 | $ | 834,368 | |||
Abercrombie & Fitch Co.
Store Count Activity
| Thirteen Weeks Ended January 28, 2023 | ||||||||||||||||||||
| Hollister (1) | Abercrombie (2) | Total Company (3) | ||||||||||||||||||
| United States | International | United States | International | United States | International | Total | ||||||||||||||
| October 29, 2022 | 367 | 156 | 174 | 54 | 541 | 210 | 751 | |||||||||||||
| New | 17 | — | 8 | 3 | 25 | 3 | 28 | |||||||||||||
| Permanently closed | (4 | ) | (7 | ) | (2 | ) | (4 | ) | (6 | ) | (11 | ) | (17 | ) | ||||||
| January 28, 2023 | 380 | 149 | 180 | 53 | 560 | 202 | 762 | |||||||||||||
| Fifty-Two Weeks Ended January 28, 2023 | ||||||||||||||||||||
| Hollister (1) | Abercrombie (2) | Total Company (3) | ||||||||||||||||||
| United States | International | United States | International | United States | International | Total | ||||||||||||||
| January 29, 2022 | 351 | 154 | 173 | 51 | 524 | 205 | 729 | |||||||||||||
| New | 33 | 5 | 13 | 8 | 46 | 13 | 59 | |||||||||||||
| Permanently closed | (4 | ) | (10 | ) | (6 | ) | (6 | ) | (10 | ) | (16 | ) | (26 | ) | ||||||
| January 28, 2023 | 380 | 149 | 180 | 53 | 560 | 202 | 762 | |||||||||||||
(1) Hollister includes the company’s Hollister and Gilly Hicks brands. Locations with Gilly Hicks carveouts within Hollister stores are represented as a single store count. Excludes 12 international franchise stores as of January 28, 2023, 10 international franchise stores as of October 29, 2022, and 9 international franchise stores as of January 29, 2022. Excludes 16 Company-operated temporary stores as of January 28, 2023 and 14 Company-operated temporary stores as of October 29, 2022 and January 29, 2022.
(2) 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 23 international franchise stores as of January 28, 2023, 19 international franchise stores as of October 29, 2022, and 14 international franchise stores as of January 29, 2022. Excludes three Company-operated temporary stores as of January 28, 2023 , four temporary stores as of October 29, 2022, and five Company-operated temporary stores as of January 29, 2022.
(3) This store count excludes one international third-party operated multi-brand outlet store as of each of January 28, 2023, October 29, 2022, and January 29, 2022