Abercrombie & Fitch Co. (NYSE: ANF) today announced results for
the fourth quarter and fiscal year ended January 29, 2022.
These compare to results for the fourth quarter and fiscal year
ended January 30, 2021. 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,
“2021 is a testament to the fundamental changes we have made to
strengthen our foundation and improve our profitability. For the
year, we delivered: Net sales of $3.7 billion with 47% digital
penetration; a double-digit AUR growth rate; reported and adjusted
operating income of $343 million and $355 million, respectively,
roughly 330% above 2019 levels; and a 9.6% adjusted operating
margin, our highest in over a decade. In addition, by returning
cash to shareholders through share repurchases, we reduced our
ending share count by 15%.”
“We are pleased with our recent performance.
Following inventory receipt delays that impacted the peak holiday
selling period, sales trends initially improved as product began to
arrive. While mid-January was impacted by the Omicron surge, sales
rebounded in late January as cases fell and new assortments set.
Momentum has continued quarter-to-date, with an acceleration in the
sales trend from total fourth quarter levels. Importantly, response
to early spring assortments has been strong, and we do not
anticipate significant inventory supply issues for the remainder of
the quarter.”
“Looking ahead, we will continue to thoughtfully
manage the business to support long-term growth leveraging our
multi-year investments in systems, processes and tools across
digital, technology and data and analytics. We look forward to
sharing more details on our three-year plan at our June Investor
Day.”
Details related to net income (loss) per diluted
share for the fourth quarter and full year are as follows:
|
|
Fourth Quarter |
|
Full Year |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
2020
(1) |
GAAP |
|
$ |
1.12 |
|
|
$ |
1.27 |
|
|
$ |
4.20 |
|
|
$ |
(1.82 |
) |
Excluded items, net of tax effect (2) |
|
|
(0.03 |
) |
|
|
(0.23 |
) |
|
|
(0.15 |
) |
|
|
(1.10 |
) |
Adjusted non-GAAP |
|
$ |
1.14 |
|
|
$ |
1.50 |
|
|
$ |
4.35 |
|
|
$ |
(0.73 |
) |
Impact from changes in foreign currency exchange rates (3) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
0.01 |
|
Adjusted non-GAAP constant currency |
|
$ |
1.14 |
|
|
$ |
1.51 |
|
|
$ |
4.35 |
|
|
$ |
(0.74 |
) |
(1) Net loss per diluted share for the
full year of fiscal 2020 includes adverse tax impacts of $101
million, or $1.61 per diluted share, related to valuation
allowances on deferred tax assets and other tax charges as a result
of the COVID-19 pandemic.(2) Excluded items consist of
pre-tax store asset impairment charges and the tax effect of
pre-tax excluded items.(3) 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 29, 2022:
- Net
sales of $1.2 billion up 4% as compared to last year and
down 2% as compared to pre-COVID, 2019 fourth quarter net
sales.
- Digital net
sales of $556 million or 48% of total net sales as
compared to $475 million or 40% in the fourth quarter of 2019.
- Gross
profit rate of 58.3%, down approximately 220 basis points
as compared to last year and up 10 basis points as compared to
2019. Compared to 2019, higher average unit retail offset the
adverse impact of approximately 700 basis points related to higher
freight costs.
- Operating
expense, excluding other operating income, was up 3% as
compared to last year and up 3% compared to 2019. The
year-over-year increase reflects an increase in payroll and
marketing expenses partially offset by a decrease in store
occupancy. Operating expense as a percentage of sales decreased to
50.2% from 50.5% last year and increased from 47.9% as compared to
2019.
- Operating
income of $98 million and $100 million on a reported and
adjusted non-GAAP basis, respectively, as compared to $116 million
and $131 million last year, on a reported and adjusted non-GAAP
basis, respectively.
- Net income
per diluted share of $1.12 and $1.14 on a reported and
adjusted non-GAAP basis, respectively, as compared to net income
per diluted share last year of $1.27 and $1.50 on a reported and
adjusted non-GAAP basis, respectively.
A summary of results for the full year ended
January 29, 2022:
- Net
sales of $3.7 billion up 19% as compared to last year and
up 2% as compared to pre-COVID 2019 full year net sales.
- Digital net
sales of $1.7 billion or 47% of total net sales as
compared to $1.2 billion or 33% in fiscal 2019.
- Gross
profit rate of 62.3%, up approximately 180 basis points as
compared to last year and up 290 basis points as compared to 2019.
Compared to 2019, higher AUR fully offset the adverse impact of
approximately 370 basis points related to higher freight
costs.
- Operating
expense, excluding other operating income, was up 3% as
compared to last year and down 5% compared to 2019. Operating
expense as a percentage of sales decreased to 53.3% from 61.3% last
year and from 57.5% as compared to 2019.
- Operating
income of $343 million and $355 million on a reported and
adjusted non-GAAP basis, respectively. This compares to operating
(loss) income last year of $(20) million and $52 million on a
reported and adjusted non-GAAP basis, respectively.
- Net income
per diluted share of $4.20 and $4.35 on a reported and
adjusted non-GAAP basis, respectively, as compared to net loss per
diluted share last year of $(1.82) and $(0.73) on a reported and
adjusted non-GAAP basis, respectively.
- Generated
positive operating cash flows of $274 million during the
full year ended January 29, 2022, ending the year with
liquidity of approximately $1.1 billion.
Net sales by brand and region
for the fourth quarter and full year are as follows:
|
Fourth Quarter |
|
|
(in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
|
1 YR % Change |
|
2 YR % Change |
Net sales by brand: |
|
|
|
|
|
|
|
|
|
Hollister (1) |
$ |
668,777 |
|
|
$ |
655,424 |
|
|
$ |
710,540 |
|
|
2% |
|
(6)% |
Abercrombie (2) |
|
492,576 |
|
|
|
466,620 |
|
|
|
474,011 |
|
|
6% |
|
4% |
Total company |
$ |
1,161,353 |
|
|
$ |
1,122,044 |
|
|
$ |
1,184,551 |
|
|
4% |
|
(2)% |
Net sales by region: (3) |
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
|
1 YR % Change |
|
2 YR % Change |
United States |
$ |
841,687 |
|
|
$ |
788,056 |
|
|
$ |
814,079 |
|
|
7% |
|
3% |
EMEA |
|
226,074 |
|
|
|
235,286 |
|
|
|
255,639 |
|
|
(4)% |
|
(12)% |
APAC |
|
46,212 |
|
|
|
58,868 |
|
|
|
76,059 |
|
|
(21)% |
|
(39)% |
Other (4) |
|
47,380 |
|
|
|
39,834 |
|
|
|
38,774 |
|
|
19% |
|
22% |
International |
|
319,666 |
|
|
|
333,988 |
|
|
|
370,472 |
|
|
(4)% |
|
(14)% |
Total company |
$ |
1,161,353 |
|
|
$ |
1,122,044 |
|
|
$ |
1,184,551 |
|
|
4% |
|
(2)% |
|
Full Year |
|
|
(in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
|
1 YR % Change |
|
2 YR % Change |
Net sales by brand: |
|
|
|
|
|
|
|
|
|
Hollister (1) |
$ |
2,147,979 |
|
|
$ |
1,834,349 |
|
|
$ |
2,158,514 |
|
|
17% |
|
0% |
Abercrombie (2) |
|
1,564,789 |
|
|
|
1,291,035 |
|
|
|
1,464,559 |
|
|
21% |
|
7% |
Total company |
$ |
3,712,768 |
|
|
$ |
3,125,384 |
|
|
$ |
3,623,073 |
|
|
19% |
|
2% |
Net sales by region: (3) |
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
|
1 YR % Change |
|
2 YR % Change |
United States |
$ |
2,652,158 |
|
|
$ |
2,127,403 |
|
|
$ |
2,410,802 |
|
|
25% |
|
10% |
EMEA |
|
755,072 |
|
|
|
709,451 |
|
|
|
822,202 |
|
|
6% |
|
(8)% |
APAC |
|
171,701 |
|
|
|
176,636 |
|
|
|
264,895 |
|
|
(3)% |
|
(35)% |
Other (4) |
|
133,837 |
|
|
|
111,894 |
|
|
|
125,174 |
|
|
20% |
|
7% |
International |
|
1,060,610 |
|
|
|
997,981 |
|
|
$ |
1,212,271 |
|
|
6% |
|
(13)% |
Total company |
$ |
3,712,768 |
|
|
$ |
3,125,384 |
|
|
$ |
3,623,073 |
|
|
19% |
|
2% |
(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.
Financial Position and Liquidity |
As of January 29, 2022 the company had:
- Cash and
equivalents of $823 million as compared to $1,105 million
last year driven primarily by share repurchases.
-
Inventories of $526 million, an increase of
approximately 30% over last year due to higher inventory in-transit
and increased freight costs. Units on hand were approximately flat
to last year.
- Long-term
gross borrowings under the company's senior secured notes
of $308 million (the "Senior Secured Notes") which mature in July
2025 and bear interest at a rate of 8.75% per annum.
-
Borrowing available under the
senior-secured asset-based revolving credit facility (the "ABL
Facility") of $248 million.
-
Liquidity, comprised of cash and equivalents and
borrowing available under the ABL Facility, of approximately $1.1
billion. This compares to liquidity of $1.3 billion as of
January 30, 2021.
Cash Flow and Capital Allocation |
Details related to the company's cash flows for
the full year ended January 29, 2022 are as follows:
- Net cash
provided by operating activities of $274 million.
- Net cash
used for investing activities of $97 million. Capital
expenditures were $97 million in fiscal 2021 as compared to $102
million in fiscal 2020.
- Net cash
used for financing activities of $447 million, reflecting
$377 million of share repurchases and $47 million purchase of its
senior notes.
The company repurchased approximately
4.1 million shares during the fourth quarter and
10.2 million for the full year, returning $377 million to
shareholders through share repurchases, and has $358 million
remaining on the share repurchase authorization established in
November 2021.
During the second quarter of fiscal 2021, the
company spent $47 million to purchase $42.3 million at par value of
its senior secured notes. During the first quarter of fiscal 2021,
the company paid $64 million to settle all remaining obligations
related to the SoHo Hollister flagship store in New York City,
which reduced the company’s operating lease liabilities by $65
million and eliminated future interest expense related to this
obligation.
Depreciation and amortization was $144 million
for fiscal 2021 as compared to $166 million in fiscal 2020.
Fiscal 2022 Full Year Outlook |
For fiscal 2022, the company expects:
- Net
sales to be up 2 to 4% from $3.7 billion in 2021 with the
U.S. continuing to outperform EMEA and APAC. We expect
the increase to be driven by growth in both comparable sales and
store count.
- Gross
profit rate to be down around 200 basis points as compared
to the fiscal 2021 rate of 62.3%, with 300-400 basis points of cost
inflation partially offset by higher average unit retail.
- Operating
expense, excluding other operating income, to be up in a
range similar to sales of up 2 to 4% to fiscal 2021 adjusted
non-GAAP operating expenses of $1.97 billion, which excluded $12
million in impairment charges.
- Effective tax
rate to be in the high 20s.
-
Capital expenditures of approximately $150
million.
Fiscal 2022 First Quarter Outlook |
For the first quarter of fiscal 2022, the
company expects:
- Net
sales to be up low-single-digits to fiscal first quarter
2021 level of $781 million.
- Gross
profit rate to be down around 400 basis points to fiscal
2021 rate of 63.4% reflecting $65 million of incremental freight
costs compared to fiscal first quarter 2021, partially offset by
improved average unit retail.
- Operating
expense, excluding other operating income, to be up around
6% to fiscal 2021 adjusted non-GAAP operating expenses of $436
million, which excluded $3 million in impairment charges, with
approximately half of the increase due to lapping COVID-related
rent abatements and government assistance recognized in fiscal
first quarter 2021.
Today at 8:30 AM, ET, the company will conduct a
conference call. To listen to the conference call, dial (800)
458-4121 or go to corporate.abercrombie.com. The international
call-in number is (323) 794-2093. This call will be recorded and
made available by dialing the replay number (888) 203-1112 or the
international number (719) 457-0820 followed by the conference ID
number 1753535 or through corporate.abercrombie.com. 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.
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 Press Release or
made by management or spokespeople of A&F involve risks and
uncertainties and are subject to change based on various important
factors, many of which may be beyond the company’s control. Words
such as “estimate,” “project,” “plan,” “believe,” “expect,”
“anticipate,” “intend,” “should,” “are confident,”and similar
expressions may identify forward-looking statements. Except as may
be required by applicable law, we undertake no obligation to
publicly update or revise any forward-looking statements. The
following factors, in addition to those disclosed in “ITEM 1A. RISK
FACTORS” of A&F’s Annual Report on Form 10-K for the fiscal
year ended January 30, 2021, and in A&F’s subsequently filed
quarterly reports on Form 10-Q, in some cases have affected, and in
the future could affect, A&F’s financial performance and could
cause actual results for fiscal 2021 and beyond to differ
materially from those expressed or implied in any of the
forward-looking statements included in this Press Release or
otherwise made by management: COVID-19 has and may continue to
materially adversely impact and cause disruption to our business;
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
could have a material adverse impact on our business; failure to
engage our customers, anticipate customer demand and changing
fashion trends, and manage our inventory commensurately could have
a material adverse impact on our business; our failure to operate
effectively in a highly competitive and constantly evolving
industry could have a material adverse impact on our business;
fluctuations in foreign currency exchange rates could have a
material adverse impact on our business; our ability to attract
customers to our stores depends, in part, on the success of the
shopping malls or area attractions that our stores are located in
or around; the impact of war, acts of terrorism, mass casualty
events, social unrest, civil disturbance or disobedience could have
a material adverse impact on our business; the impact of extreme
weather, infectious disease outbreaks, including COVID-19, and
other unexpected events could result in an interruption to our
business, as well as to the operations of our third-party partners,
and have a material adverse impact on our business; failure to
successfully develop an omnichannel shopping experience, a
significant component of our growth strategy, or failure to
successfully invest in customer, digital and omnichannel
initiatives could have a material adverse impact on our business;
our failure to optimize our global store network could have a
material adverse impact on our business; our failure to execute our
international growth strategy successfully and inability to conduct
business in international markets as a result of legal, tax,
regulatory, political and economic risks could have a material
adverse impact on our business; our failure to appropriately
address emerging environmental, social and governance matters could
have a material adverse impact on our reputation and, as a result,
our business; failure to protect our reputation could have a
material adverse impact on our business; if our information
technology systems are disrupted or cease to operate effectively,
it could have a material adverse impact on our business; we may be
exposed to risks and costs associated with cyber-attacks, data
protection, credit card fraud and identity theft that could have a
material adverse impact on our business; our reliance on our
distribution centers makes us susceptible to disruptions or adverse
conditions affecting our supply chain; changes in the cost,
availability and quality of raw materials, labor, transportation,
and trade relations could have a material adverse impact on our
business; we depend upon independent third parties for the
manufacture and delivery of all our merchandise, and a disruption
of the manufacture or delivery of our merchandise could have a
material adverse impact on our business; we rely on the experience
and skills of our executive officers and associates, and the
failure to attract or retain this talent, effectively manage
succession, and establish a diverse workforce could have a material
adverse impact on our business; in the past, we have identified a
material weakness in our internal control over financial reporting
and may identify additional material weaknesses in the future. If
we fail to establish and maintain effective internal control over
financial reporting, our ability to accurately and timely report
our financial results could be adversely affected; fluctuations in
our tax obligations and effective tax rate may result in volatility
in our results of operations could have a material adverse impact
on our business; our litigation exposure, or any securities
litigation and shareholder activism, could have a material adverse
impact on our business; failure to adequately protect our
trademarks could have a negative impact on our brand image and
limit our ability to penetrate new markets which could have a
material adverse impact on our business; changes in the regulatory
or compliance landscape could have a material adverse impact on our
business; and the agreements related to our senior secured
asset-based revolving credit facility and our senior secured notes
include restrictive covenants that limit our flexibility in
operating our business and our inability to obtain credit on
reasonable terms in the future could have an adverse impact on our
business.
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. As used in the presentation,
"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. 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.
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
intimates, loungewear and sleepwear, is designed to give all Gen Z
customers their daily dose of happy. 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 720
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: |
|
|
|
Pamela Quintiliano |
|
Mackenzie Gusweiler |
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 29,2022 |
|
% ofNet Sales |
|
January 30,2021 |
|
% ofNet Sales |
Net sales |
$ |
1,161,353 |
|
|
100.0 |
% |
|
$ |
1,122,044 |
|
|
100.0 |
% |
Cost of sales, exclusive of depreciation and amortization |
|
484,221 |
|
|
41.7 |
% |
|
|
443,025 |
|
|
39.5 |
% |
Gross profit |
|
677,132 |
|
|
58.3 |
% |
|
|
679,019 |
|
|
60.5 |
% |
Stores and distribution expense |
|
435,129 |
|
|
37.5 |
% |
|
|
412,827 |
|
|
36.8 |
% |
Marketing, general and administrative expense |
|
145,686 |
|
|
12.5 |
% |
|
|
137,334 |
|
|
12.2 |
% |
Flagship store exit charges |
|
24 |
|
|
0.0 |
% |
|
|
854 |
|
|
0.1 |
% |
Asset impairment, exclusive of flagship store exit charges |
|
1,901 |
|
|
0.2 |
% |
|
|
15,597 |
|
|
1.4 |
% |
Other operating income, net |
|
(3,741 |
) |
|
(0.3 |
)% |
|
|
(3,492 |
) |
|
(0.3 |
)% |
Operating income |
|
98,133 |
|
|
8.4 |
% |
|
|
115,899 |
|
|
10.3 |
% |
Interest expense, net |
|
6,959 |
|
|
0.6 |
% |
|
|
8,997 |
|
|
0.8 |
% |
Income before income taxes |
|
91,174 |
|
|
7.9 |
% |
|
|
106,902 |
|
|
9.5 |
% |
Income tax expense |
|
23,348 |
|
|
2.0 |
% |
|
|
21,646 |
|
|
1.9 |
% |
Net income |
|
67,826 |
|
|
5.8 |
% |
|
|
85,256 |
|
|
7.6 |
% |
Less: Net income attributable to noncontrolling interests |
|
2,317 |
|
|
0.2 |
% |
|
|
2,864 |
|
|
0.3 |
% |
Net income attributable to Abercrombie & Fitch Co. |
$ |
65,509 |
|
|
5.6 |
% |
|
$ |
82,392 |
|
|
7.3 |
% |
|
|
|
|
|
|
|
|
Net income per share attributable to Abercrombie & Fitch
Co.: |
|
|
|
|
|
|
|
Basic |
$ |
1.18 |
|
|
|
|
$ |
1.32 |
|
|
|
Diluted |
$ |
1.12 |
|
|
|
|
$ |
1.27 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
55,740 |
|
|
|
|
|
62,581 |
|
|
|
Diluted |
|
58,700 |
|
|
|
|
|
64,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Abercrombie & Fitch Co. |
Condensed Consolidated Statements of
Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Fifty-Two Weeks Ended |
|
Fifty-Two Weeks Ended |
|
January 29,2022 |
|
% ofNet Sales |
|
January 30,2021 |
|
% ofNet Sales |
Net sales |
$ |
3,712,768 |
|
|
100.0 |
% |
|
$ |
3,125,384 |
|
|
100.0 |
% |
Cost of sales, exclusive of depreciation and amortization |
|
1,400,773 |
|
|
37.7 |
% |
|
|
1,234,179 |
|
|
39.5 |
% |
Gross profit |
|
2,311,995 |
|
|
62.3 |
% |
|
|
1,891,205 |
|
|
60.5 |
% |
Stores and distribution expense |
|
1,429,476 |
|
|
38.5 |
% |
|
|
1,391,584 |
|
|
44.5 |
% |
Marketing, general and administrative expense |
|
536,815 |
|
|
14.5 |
% |
|
|
463,843 |
|
|
14.8 |
% |
Flagship store exit (benefit) charges |
|
(1,153 |
) |
|
0.0 |
% |
|
|
(11,636 |
) |
|
(0.4 |
)% |
Asset impairment, exclusive of flagship store exit charges |
|
12,100 |
|
|
0.3 |
% |
|
|
72,937 |
|
|
2.3 |
% |
Other operating income, net |
|
(8,327 |
) |
|
(0.2 |
)% |
|
|
(5,054 |
) |
|
(0.2 |
)% |
Operating income (loss) |
|
343,084 |
|
|
9.2 |
% |
|
|
(20,469 |
) |
|
(0.7 |
)% |
Interest expense, net |
|
34,110 |
|
|
0.9 |
% |
|
|
28,274 |
|
|
0.9 |
% |
Income (loss) before income taxes |
|
308,974 |
|
|
8.3 |
% |
|
|
(48,743 |
) |
|
(1.6 |
)% |
Income tax expense |
|
38,908 |
|
|
1.0 |
% |
|
|
60,211 |
|
|
1.9 |
% |
Net income (loss) |
|
270,066 |
|
|
7.3 |
% |
|
|
(108,954 |
) |
|
(3.5 |
)% |
Less: Net income attributable to noncontrolling interests |
|
7,056 |
|
|
0.2 |
% |
|
|
5,067 |
|
|
0.2 |
% |
Net income (loss) attributable to Abercrombie & Fitch Co. |
$ |
263,010 |
|
|
7.1 |
% |
|
$ |
(114,021 |
) |
|
(3.6 |
)% |
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to Abercrombie & Fitch
Co.: |
|
|
|
|
|
|
|
Basic |
$ |
4.41 |
|
|
|
|
$ |
(1.82 |
) |
|
|
Diluted |
$ |
4.20 |
|
|
|
|
$ |
(1.82 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
59,597 |
|
|
|
|
|
62,551 |
|
|
|
Diluted |
|
62,636 |
|
|
|
|
|
62,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 primarily attributable to the COVID-19 pandemic or related
to the company’s flagship stores, 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 2021.
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 29, 2022 |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
GAAP (1) |
|
Excluded items |
|
Adjusted non-GAAP |
Asset impairment, exclusive of flagship store exit charges (2) |
$ |
1,901 |
|
|
$ |
1,901 |
|
|
$ |
— |
|
Operating income |
|
98,133 |
|
|
|
(1,901 |
) |
|
|
100,034 |
|
Income before income taxes |
|
91,174 |
|
|
|
(1,901 |
) |
|
|
93,075 |
|
Income tax expense (3) |
|
23,348 |
|
|
|
(373 |
) |
|
|
23,721 |
|
Net income attributable to
Abercrombie & Fitch Co. |
$ |
65,509 |
|
|
$ |
(1,528 |
) |
|
$ |
67,037 |
|
|
|
|
|
|
|
Net income per diluted share attributable to Abercrombie &
Fitch Co. |
$ |
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 |
Thirteen Weeks Ended January 30, 2021 |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
GAAP (1) |
|
Excluded items |
|
Adjusted non-GAAP |
Asset impairment, exclusive of flagship store exit charges (2) |
$ |
15,597 |
|
|
$ |
15,597 |
|
|
$ |
— |
|
Operating income |
|
115,899 |
|
|
|
(15,597 |
) |
|
|
131,496 |
|
Income before income taxes (2) |
|
106,902 |
|
|
|
(15,597 |
) |
|
|
122,499 |
|
Income tax expense (3) |
|
21,646 |
|
|
|
(664 |
) |
|
|
22,310 |
|
Net income attributable to
Abercrombie & Fitch Co. |
$ |
82,392 |
|
|
$ |
(14,933 |
) |
|
$ |
97,325 |
|
|
|
|
|
|
|
Net income per diluted share attributable to Abercrombie &
Fitch Co. |
$ |
1.27 |
|
|
$ |
(0.23 |
) |
|
$ |
1.50 |
|
Diluted weighted-average shares outstanding: |
|
64,788 |
|
|
|
|
|
64,788 |
|
(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 $15.6 million related to certain of the
company’s flagship stores.(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, exclusive of flagship store exit charges (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 Abercrombie & Fitch Co. |
$ |
263,010 |
|
|
$ |
(9,679 |
) |
|
$ |
272,689 |
|
|
|
|
|
|
|
Net loss per diluted share attributable to Abercrombie & Fitch
Co. |
$ |
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. |
Schedule of Non-GAAP Financial Measures |
Fifty-Two Weeks Ended January 30, 2021 |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
GAAP (1) |
|
Excluded Items |
|
AdjustedNon-GAAP |
Asset impairment, exclusive of flagship store exit charges (2) |
$ |
72,937 |
|
|
$ |
72,937 |
|
|
$ |
— |
|
Operating (loss) income |
|
(20,469 |
) |
|
|
(72,937 |
) |
|
|
52,468 |
|
(Loss) income before income taxes |
|
(48,743 |
) |
|
|
(72,937 |
) |
|
|
24,194 |
|
Income tax expense (3) |
|
60,211 |
|
|
|
(4,299 |
) |
|
|
64,510 |
|
Net (loss) income attributable to Abercrombie & Fitch Co. |
$ |
(114,021 |
) |
|
$ |
(68,638 |
) |
|
$ |
(45,383 |
) |
|
|
|
|
|
|
Net (loss) income per diluted share attributable to Abercrombie
& Fitch Co. |
$ |
(1.82 |
) |
|
$ |
(1.10 |
) |
|
$ |
(0.73 |
) |
Diluted weighted-average shares outstanding: |
|
62,551 |
|
|
|
|
|
62,551 |
|
(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 $72.9 million, which are principally the
result of the impact of COVID-19 on store cash flows related to
certain of the company's flagship stores.(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 29, 2022 |
(in thousands, except percentage and basis point changes
and per share data) |
(Unaudited) |
|
|
|
|
|
|
Net sales |
|
2021 |
|
|
|
2020 |
|
|
% Change |
GAAP (1) |
$ |
1,161,353 |
|
|
$ |
1,122,044 |
|
|
4% |
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
|
(6,591 |
) |
|
(1)% |
Net sales on a constant currency basis |
$ |
1,161,353 |
|
|
$ |
1,115,453 |
|
|
4% |
Gross profit |
|
2021 |
|
|
|
2020 |
|
|
BPS Change (3) |
GAAP (1) |
$ |
677,132 |
|
|
$ |
679,019 |
|
|
(220) |
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
|
(3,996 |
) |
|
0 |
Gross profit on a constant currency basis |
$ |
677,132 |
|
|
$ |
675,023 |
|
|
(220) |
Operating income |
|
2021 |
|
|
|
2020 |
|
|
BPS Change (3) |
GAAP (1) |
$ |
98,133 |
|
|
$ |
115,899 |
|
|
(190) |
Excluded items (4) |
|
(1,901 |
) |
|
|
(15,597 |
) |
|
120 |
Adjusted non-GAAP |
$ |
100,034 |
|
|
$ |
131,496 |
|
|
(310) |
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
|
151 |
|
|
(10) |
Adjusted non-GAAP constant currency basis |
$ |
100,034 |
|
|
$ |
131,647 |
|
|
(320) |
Net income per diluted share attributable to Abercrombie
& Fitch Co. |
|
2021 |
|
|
|
2020 |
|
|
$ Change |
GAAP (1) |
$ |
1.12 |
|
|
$ |
1.27 |
|
|
$(0.15) |
Excluded items, net of tax (4) |
|
(0.03 |
) |
|
|
(0.23 |
) |
|
0.20 |
Adjusted non-GAAP |
$ |
1.14 |
|
|
$ |
1.50 |
|
|
$(0.36) |
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
|
(0.01 |
) |
|
0.01 |
Adjusted non-GAAP on a constant currency basis |
$ |
1.14 |
|
|
$ |
1.51 |
|
|
$(0.37) |
(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
$1.9 million and $15.6 million for the current year and prior year,
respectively.
|
Abercrombie & Fitch Co. |
Reconciliation of Constant Currency Financial
Measures |
Fifty-two Weeks Ended January 30, 2021 |
(in thousands, except percentage and basis point changes
and per share data) |
(Unaudited) |
|
|
|
|
|
|
Net sales |
|
2021 |
|
|
|
2020 |
|
|
% Change |
GAAP (1) |
$ |
3,712,768 |
|
|
$ |
3,125,384 |
|
|
19% |
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
|
25,927 |
|
|
1% |
Net sales on a constant currency basis |
$ |
3,712,768 |
|
|
$ |
3,151,311 |
|
|
18% |
Gross profit |
|
2021 |
|
|
|
2020 |
|
|
BPS Change (3) |
GAAP (1) |
$ |
2,311,995 |
|
|
$ |
1,891,205 |
|
|
180 |
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
|
13,865 |
|
|
0 |
Gross profit on a constant currency basis |
$ |
2,311,995 |
|
|
$ |
1,905,070 |
|
|
180 |
Operating income (loss) |
|
2021 |
|
|
|
2020 |
|
|
BPS Change (3) |
GAAP (1) |
$ |
343,084 |
|
|
$ |
(20,469 |
) |
|
990 |
Excluded items (4) |
|
(12,100 |
) |
|
|
(72,937 |
) |
|
200 |
Adjusted non-GAAP |
$ |
355,184 |
|
|
$ |
52,468 |
|
|
790 |
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
|
(1,399 |
) |
|
10 |
Adjusted non-GAAP on a constant currency basis |
$ |
355,184 |
|
|
$ |
51,069 |
|
|
800 |
Net income (loss) per diluted share attributable to
Abercrombie & Fitch Co. |
|
2021 |
|
|
|
2020 |
|
|
$ Change |
GAAP (1) |
$ |
4.20 |
|
|
$ |
(1.82 |
) |
|
$6.02 |
Excluded items, net of tax (4) |
|
(0.15 |
) |
|
|
(1.10 |
) |
|
0.95 |
Adjusted non-GAAP |
$ |
4.35 |
|
|
$ |
(0.73 |
) |
|
$5.08 |
Impact from changes in foreign currency exchange rates (2) |
|
— |
|
|
|
0.01 |
|
|
(0.01) |
Adjusted non-GAAP on a constant currency basis |
$ |
4.35 |
|
|
$ |
(0.74 |
) |
|
$5.09 |
(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 $12.1 million and $72.9 million for the
current year and prior year, respectively.
|
Abercrombie & Fitch Co. |
Condensed Consolidated Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
|
|
|
January 29, 2022 |
|
January 30, 2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and equivalents |
$ |
823,139 |
|
|
$ |
1,104,862 |
|
Receivables |
|
69,102 |
|
|
|
83,857 |
|
Inventories |
|
525,864 |
|
|
|
404,053 |
|
Other current assets |
|
89,654 |
|
|
|
68,857 |
|
Total current assets |
|
1,507,759 |
|
|
|
1,661,629 |
|
Property and equipment, net |
|
508,336 |
|
|
|
550,587 |
|
Operating lease right-of-use assets |
|
698,231 |
|
|
|
893,989 |
|
Other assets |
|
225,165 |
|
|
|
208,697 |
|
Total assets |
$ |
2,939,491 |
|
|
$ |
3,314,902 |
|
Liabilities and stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
374,829 |
|
|
$ |
289,396 |
|
Accrued expenses |
|
395,815 |
|
|
|
396,365 |
|
Short-term portion of operating lease liabilities |
|
222,823 |
|
|
|
248,846 |
|
Income taxes payable |
|
21,773 |
|
|
|
24,792 |
|
Total current liabilities |
|
1,015,240 |
|
|
|
959,399 |
|
Long-term liabilities: |
|
|
|
Long-term portion of operating lease liabilities |
$ |
697,264 |
|
|
$ |
957,588 |
|
Long-term borrowings, net |
|
303,574 |
|
|
|
343,910 |
|
Other liabilities |
|
86,089 |
|
|
|
104,693 |
|
Total long-term liabilities |
|
1,086,927 |
|
|
|
1,406,191 |
|
Total Abercrombie & Fitch
Co. stockholders’ equity |
|
826,090 |
|
|
|
936,628 |
|
Noncontrolling interests |
|
11,234 |
|
|
|
12,684 |
|
Total stockholders’ equity |
|
837,324 |
|
|
|
949,312 |
|
Total liabilities and stockholders’ equity |
$ |
2,939,491 |
|
|
$ |
3,314,902 |
|
|
Abercrombie & Fitch Co. |
Condensed Consolidated Statements of Cash
Flows |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
Fifty-Two Weeks Ended |
|
January 29, 2022 |
|
January 30, 2021 |
Operating activities |
|
|
|
Net cash provided by operating activities |
$ |
273,997 |
|
|
$ |
404,918 |
|
|
|
|
|
Investing activities |
|
|
|
Purchases of property and equipment |
$ |
(96,979 |
) |
|
$ |
(101,910 |
) |
Withdrawal of Rabbi Trust assets |
|
— |
|
|
|
50,000 |
|
Net cash used for investing activities |
$ |
(96,979 |
) |
|
$ |
(51,910 |
) |
|
|
|
|
Financing activities |
|
|
|
Proceeds from issuance of senior secured notes |
$ |
— |
|
|
$ |
350,000 |
|
Proceeds from borrowings under the asset-based senior secured
credit facility |
|
— |
|
|
|
210,000 |
|
Repayment of term loan facility borrowings |
|
— |
|
|
|
(233,250 |
) |
Repayment of borrowings under the asset-based senior secured credit
facility |
|
— |
|
|
|
(210,000 |
) |
Purchase of senior secured notes |
|
(46,969 |
) |
|
|
— |
|
Payment of debt issuance costs and fees |
|
(2,016 |
) |
|
|
(7,318 |
) |
Purchases of common stock |
|
(377,290 |
) |
|
|
(15,172 |
) |
Dividends paid |
|
— |
|
|
|
(12,556 |
) |
Other financing activities |
|
(20,623 |
) |
|
|
(11,987 |
) |
Net cash (used for) provided by financing activities |
$ |
(446,898 |
) |
|
$ |
69,717 |
|
|
|
|
|
Effect of foreign currency exchange rates on cash |
$ |
(19,909 |
) |
|
$ |
9,168 |
|
Net increase (decrease) in cash and equivalents, and restricted
cash and equivalents |
$ |
(289,789 |
) |
|
$ |
431,893 |
|
Cash and equivalents, and restricted cash and equivalents,
beginning of period |
$ |
1,124,157 |
|
|
$ |
692,264 |
|
Cash and equivalents, and restricted cash and equivalents, end of
period |
$ |
834,368 |
|
|
$ |
1,124,157 |
|
|
|
|
|
|
|
|
|
Abercrombie & Fitch
Co.Store Count Activity
|
Thirteen Weeks Ended January 29, 2022 |
|
|
|
Hollister (1) |
|
Abercrombie (2) |
|
Total Company (3) |
|
UnitedStates |
|
International |
|
UnitedStates |
|
International |
|
UnitedStates |
|
International |
|
Total |
October 30, 2021 |
355 |
|
|
151 |
|
|
181 |
|
|
48 |
|
|
536 |
|
|
199 |
|
|
735 |
|
New |
1 |
|
|
7 |
|
|
1 |
|
|
6 |
|
|
2 |
|
|
13 |
|
|
15 |
|
Permanently closed |
(5 |
) |
|
(4 |
) |
|
(9 |
) |
|
(3 |
) |
|
(14 |
) |
|
(7 |
) |
|
(21 |
) |
January 29, 2022 |
351 |
|
|
154 |
|
|
173 |
|
|
51 |
|
|
524 |
|
|
205 |
|
|
729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-Two Weeks Ended January 29, 2022 |
|
|
|
Hollister (1) |
|
Abercrombie (2) |
|
Total Company (3) |
|
UnitedStates |
|
International |
|
UnitedStates |
|
International |
|
UnitedStates |
|
International |
|
Total |
January 30, 2021 |
347 |
|
|
150 |
|
|
190 |
|
|
48 |
|
|
537 |
|
|
198 |
|
|
735 |
|
New |
10 |
|
|
12 |
|
|
7 |
|
|
9 |
|
|
17 |
|
|
21 |
|
|
38 |
|
Permanently closed |
(6 |
) |
|
(8 |
) |
|
(24 |
) |
|
(6 |
) |
|
(30 |
) |
|
(14 |
) |
|
(44 |
) |
January 29, 2022 |
351 |
|
|
154 |
|
|
173 |
|
|
51 |
|
|
524 |
|
|
205 |
|
|
729 |
|
(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 9 international franchise stores as of
January 29, 2022, 10 international franchise stores as of
October 30, 2021, and 9 international franchise stores as of
January 30, 2021. Excludes 14 Company-operated temporary
stores as of each of January 29, 2022 and October 30,
2021, and 12 Company-operated temporary stores as of
January 30, 2021.(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 14
international franchise stores as of January 29, 2022, 13
international franchise stores as of and October 30, 2021, and
10 international franchise stores as of January 30, 2021.
Excludes five Company-operated temporary stores as of
January 29, 2022 , four temporary stores as of
October 30, 2021, and two Company-operated temporary stores as
of January 30, 2021.(3) This store count excludes
one international third-party operated multi-brand outlet store as
of each of January 29, 2022, October 30, 2021, and
January 30, 2021
Abercrombie and Fitch (NYSE:ANF)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Abercrombie and Fitch (NYSE:ANF)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024