Abercrombie & Fitch Co. Reports Third Quarter Fiscal 2024 Results
Abercrombie & Fitch reported strong Q3 fiscal 2024 results with record net sales of $1.2 billion, up 14% year-over-year, and comparable sales growth of 16%. Operating income increased 30% to $179 million, with operating margin expanding to 14.8%. The company saw broad-based growth across regions: Americas (+14%), EMEA (+15%), and APAC (+32%). Abercrombie brands grew 15% while Hollister brands increased 14%. Based on Q3 performance, the company raised its full-year outlook, projecting net sales growth of 14-15% and operating margin around 15%. The company also repurchased 924,000 shares for $130 million year-to-date.
Abercrombie & Fitch ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2024, con vendite nette record di 1,2 miliardi di dollari, in aumento del 14% rispetto all'anno precedente, e una crescita delle vendite comparabili del 16%. L'utile operativo è aumentato del 30%, raggiungendo 179 milioni di dollari, con un margine operativo che si è espanso al 14,8%. L'azienda ha registrato una crescita diffusa in tutte le regioni: Americhe (+14%), EMEA (+15%) e APAC (+32%). I marchi Abercrombie sono cresciuti del 15%, mentre i marchi Hollister sono aumentati del 14%. Sulla base delle prestazioni del terzo trimestre, l'azienda ha aumentato le previsioni per l'intero anno, prevedendo una crescita delle vendite nette del 14-15% e un margine operativo attorno al 15%. L'azienda ha anche riacquistato 924.000 azioni per 130 milioni di dollari da inizio anno.
Abercrombie & Fitch reportó resultados sólidos en el tercer trimestre del año fiscal 2024, con ventas netas récord de 1.2 mil millones de dólares, un aumento del 14% interanual, y un crecimiento en las ventas comparables del 16%. El ingreso operativo creció un 30% hasta alcanzar los 179 millones de dólares, con un margen operativo que se expandió al 14.8%. La compañía vio un crecimiento generalizado en todas las regiones: Américas (+14%), EMEA (+15%) y APAC (+32%). Los marcas Abercrombie crecieron un 15%, mientras que las marcas Hollister aumentaron un 14%. Basándose en el desempeño del tercer trimestre, la compañía elevó sus proyecciones anuales, esperando un crecimiento de ventas netas del 14-15% y un margen operativo en torno al 15%. La empresa también recompró 924,000 acciones por 130 millones de dólares en lo que va del año.
Abercrombie & Fitch는 2024 회계연도 3분기에 12억 달러의 기록적인 순매출을 보고하며, 전년 대비 14% 증가하고, 비교 가능한 매출 성장률은 16%에 달했습니다. 운영 소득은 30% 증가하여 1억 7900만 달러에 이르고, 운영 마진은 14.8%로 확장되었습니다. 이 회사는 모든 지역에서 폭넓은 성장을 경험했습니다: 미주 (+14%), EMEA (+15%) 및 APAC (+32%). Abercrombie 브랜드는 15% 성장했으며, Hollister 브랜드는 14% 증가했습니다. 3분기 성과를 바탕으로, 회사는 연간 전망을 상향 조정하여 순매출 성장을 14-15%로, 운영 마진을 약 15%로 예상하고 있습니다. 또한, 회사는 올해 들어 1억 3000만 달러에 92만4000주를 재매입했습니다.
Abercrombie & Fitch a rapporté de solides résultats pour le troisième trimestre de l'exercice fiscal 2024, avec des ventes nettes record de 1,2 milliard de dollars, en hausse de 14 % par rapport à l'année précédente, et une croissance des ventes comparables de 16 %. Le bénéfice d'exploitation a augmenté de 30 % pour atteindre 179 millions de dollars, le marge d'exploitation s'élargissant à 14,8 %. L'entreprise a connu une croissance généralisée dans toutes les régions : Amériques (+14 %), EMEA (+15 %) et APAC (+32 %). Les marques Abercrombie ont progressé de 15 %, tandis que les marques Hollister ont augmenté de 14 %. Sur la base des performances du troisième trimestre, l'entreprise a relevé ses prévisions annuelles, projetant une croissance des ventes nettes de 14 à 15 % et une marge d'exploitation d'environ 15 %. L'entreprise a également racheté 924 000 actions pour 130 millions de dollars depuis le début de l'année.
Abercrombie & Fitch hat im dritten Quartal des Geschäftsjahres 2024 starke Ergebnisse mit rekordhohen Nettoumsätzen von 1,2 Milliarden Dollar gemeldet, was einem Anstieg von 14% im Vergleich zum Vorjahr entspricht, und einem vergleichbaren Umsatzwachstum von 16%. Das operative Ergebnis stieg um 30% auf 179 Millionen Dollar, während sich die operative Marge auf 14,8% erweiterte. Das Unternehmen verzeichnete ein breites Wachstum in allen Regionen: Amerika (+14%), EMEA (+15%) und APAC (+32%). Die Marken Abercrombie wuchsen um 15%, während die Marken Hollister um 14% zunahmen. Basierend auf den Ergebnissen des dritten Quartals hat das Unternehmen seine Jahresprognose angehoben und rechnet mit einem Nettoumsatzwachstum von 14-15% und einer operativen Marge von etwa 15%. Das Unternehmen hat auch 924.000 Aktien im Wert von 130 Millionen Dollar im laufenden Jahr zurückgekauft.
- Record Q3 net sales of $1.2 billion, up 14% YoY
- Operating income increased 30% to $179 million
- Strong comparable sales growth of 16%
- Operating margin expanded 170 basis points to 14.8%
- Raised full-year guidance for sales and operating margin
- Double-digit growth across all regions (Americas +14%, EMEA +15%, APAC +32%)
- Inventory levels increased to $693 million from $595 million YoY
- Cash and equivalents decreased to $683 million from $901 million since February 2024
Insights
The Q3 results showcase exceptional performance with
The broad-based growth across all regions highlights ANF's successful global strategy. The Americas'
- Record third quarter net sales of
$1.2 billion , up14% from last year with comparable sales of16% - Broad-based net sales growth across regions and brands, with Abercrombie brands growth of
15% and Hollister brands growth of14% - Operating margin expands 170 basis points to
14.8% , with third quarter operating income increasing30% to$179 million - Year-to-date, repurchased 924,000 shares for
$130 million , representing1.8% of shares outstanding at February 3, 2024 - Increases full year outlook to net sales growth of
14% to15% and operating margin around15%
NEW ALBANY, Ohio, Nov. 26, 2024 (GLOBE NEWSWIRE) -- Abercrombie & Fitch Co. (NYSE: ANF) today announced results for the third quarter ended November 2, 2024. These compare to results for the third quarter ended October 28, 2023. 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, “For the sixth consecutive quarter, our global team delivered double-digit net sales growth. This great sales performance led to better-than-expected results on both the top and bottom lines. With broad-based growth across regions and brands, we continue to execute at a high level, leveraging our regional playbooks and operating model. Each of our regions grew double-digits in the quarter, with the Americas growing
Based on our third quarter outperformance and outlook for the fourth quarter, we are increasing our full year outlook on sales and expect to be around the high end of the operating margin range shared last quarter. Our teams are engaged and ready to deliver for our customers this holiday season with the goal of achieving sustainable, profitable growth firmly in our sights.”
Details related to reported net income per diluted share and adjusted net income per diluted share for the third quarter are as follows:
| 2024 | 2023 | |||||
| GAAP | $ | 2.50 | $ | 1.83 | ||
| Impact from changes in foreign currency exchange rates (1) | — | 0.07 | ||||
| Adjusted non-GAAP constant currency | $ | 2.50 | $ | 1.90 |
| (1) | The estimated impact from foreign currency is calculated by applying current period exchange rates to prior year results using a | |
A summary of results for the third quarter ended November 2, 2024 as compared to the third quarter ended October 28, 2023:
- Net sales of
$1.2 billion , up14% as compared to last year on a reported basis and up14% on a constant currency basis. - Comparable sales of
16% . - Gross profit rate of
65.1% , up approximately 20 basis points as compared to last year. - Operating expense, excluding other operating (income) loss, net, of
$609 million for the quarter as compared to$546 million last year. Operating expense, excluding other operating (income) loss, net, as a percent of sales improved to50.4% from51.7% last year. - Operating income of
$179 million as compared to operating income last year of$138 million . - Net income per diluted share of
$2.50 as compared to net income per diluted share last year of$1.83 .
| Net Sales |
Net sales by segment and brand for the third quarter are as follows:
| (in thousands) | 2024 | 2023 | 1 YR % Change | Comparable sales (2) | |||||
| Net sales by segment: (1) | |||||||||
| Americas (3) | $ | 986,449 | $ | 867,566 | |||||
| EMEA (4) | 181,592 | 157,976 | |||||||
| APAC (5) | 40,925 | 30,889 | |||||||
| Total company | $ | 1,208,966 | $ | 1,056,431 | 14% | 16% | |||
| 2024 | 2023 | 1 YR % Change | Comparable sales (2) | ||||||
| Net sales by brand: | |||||||||
| Abercrombie (6) | $ | 629,835 | $ | 547,728 | |||||
| Hollister (7) | 579,131 | 508,703 | |||||||
| Total company | $ | 1,208,966 | $ | 1,056,431 | 14% | 16% | |||
| (1) | Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order. | |
| (2) | Comparable sales are calculated on a constant currency basis. Refer to "REPORTING AND USE OF GAAP AND NON-GAAP MEASURES," for further discussion. | |
| (3) | The Americas segment includes the results of operations in North America and South America. | |
| (4) | The EMEA segment includes the results of operations in Europe, the Middle East and Africa. | |
| (5) | The APAC segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. | |
| (6) | For purposes of the above table, Abercrombie includes Abercrombie & Fitch and abercrombie kids. | |
| (7) | For purposes of the above table, Hollister includes Hollister and Gilly Hicks. | |
| Financial Position and Liquidity |
As of November 2, 2024 the company had:
- Cash and equivalents of
$683 million compared to cash and equivalents of$901 million and$649 million as of February 3, 2024 and October 28, 2023, respectively. - Current investments which are included in other current assets, of
$56 million as of November 2, 2024. - Inventories of
$693 million compared to inventories of$469 million and$595 million as of February 3, 2024 and October 28, 2023, respectively. - No long-term gross borrowings as all of the company’s outstanding
8.75% senior secured notes due July 2025 (the “Senior Secured Notes”) were redeemed with cash on hand in the second quarter of 2024. - Borrowing capacity of
$500 million under the senior-secured asset-based revolving credit facility (the “ABL Facility”) with net borrowing available of$450 million after minimum excess availability requirement. - Liquidity, comprised of cash and equivalents and borrowing available under the ABL Facility, of approximately
$1.1 billion . This compares to liquidity of$1.2 billion and$1.0 billion as of February 3, 2024 and October 28, 2023, respectively.
| Cash Flow and Capital Allocation |
Details related to the company’s cash flows for the year-to-date period ended November 2, 2024 are as follows:
- Net cash provided by operating activities of
$403 million . - Net cash used for investing activities of
$187 million , primarily reflecting capital expenditures and purchases of marketable securities. - Net cash used for financing activities of
$433 million , primarily reflecting the repurchase and redemption of all its outstanding Senior Secured Notes and share repurchases.
During the third quarter of 2024, the company repurchased 720,687 shares for approximately
Depreciation and amortization was
| Fiscal 2024 Outlook |
| The following outlook replaces all previous full year guidance. For fiscal 2024, the company now expects: | ||
| Current Full Year Outlook | Previous Full Year Outlook (1) | |
| Net sales | in the range of | in the range of |
| Operating margin | around | in the range of |
| Effective tax rate | mid-20s (4) | mid-20s |
| Capital expenditures | ~ | ~ |
| Real estate activity (all approximate) | ~20 net store openings | ~20 net store openings |
| 60 openings, 40 closures | 60 openings, 40 closures | |
| 60 remodels and right-sizes | 60 remodels and right-sizes | |
| Fourth Quarter Outlook | ||
| Net sales | in the range of | |
| Operating margin | around | |
| Effective tax rate | high-20s (4) | |
| (1) | Released August 28, 2024 | |
| (2) | The current outlook includes a 120 basis point adverse impact from the loss of the extra week in 2023. Additionally, the Americas will continue to lead the regional performance and we expect that Abercrombie brands will continue to outperform Hollister brands as well as a slight adverse impact from foreign currency. | |
| (3) | The current outlook expects the year-over-year improvement to be driven by a higher gross profit rate and operating expense leverage. | |
| (4) | The current outlook assumes the rate being sensitive to the jurisdictional mix and level of income. | |
| (5) | This outlook includes a 550 basis point adverse impact from the loss of the extra week in 2023 as well as an estimated 100 basis point adverse impact from foreign currency. | |
The following table illustrates the expected quarterly and full year net sales and related basis point impact of the calendar shift and loss of one selling week in fiscal 2024 compared to fiscal 2023:
| Q1 | Q2 | Q3 | Q4 | Fiscal 2024 | |||||||
| Net sales increase (decrease) (in millions) | |||||||||||
| Basis point increase (decrease) | 120 | 320 | (90) | (550) | (120) | ||||||
| Conference Call |
Today at 8:30 a.m. ET, the company will conduct a conference call and provide additional details around its quarterly results and its outlook for the fourth quarter. 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/BI094e834e8d9145d28bf9a9ee46d90fa3
A presentation of third quarter results will be available in the “Investors” section at corporate.abercrombie.com at approximately 7:30 a.m. 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 fourth quarter and annual fiscal 2024 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,” “goal,” “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 February 3, 2024, and in our subsequent 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, including inflation, and the resulting impact on consumer spending generally and on our operating results, financial condition, and expense management, and our ability to adequately mitigate the impact; risks related to the geopolitical landscape and conflicts, such as the recent attacks on marine vessels in the Red Sea, and the potential escalation of such conflicts and the impact of such conflicts on international trade, supplier delivery or increased freight costs, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience; risks related to natural disasters and other unforeseen catastrophic events; risks related to our failure to engage our customers, anticipate customer demand, expectations, and changing fashion trends, and manage our inventory and product delivery; risks related to our failure to operate effectively in a highly competitive and constantly evolving industry; risks related to our ability to execute on, and maintain the success of, our strategic and growth initiatives, including those outlined in 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 global operations, may result in volatility in our results of operations; risks related to global operations, including changes in the economic or political conditions where we sell or source our products or changes in import tariffs or trade restrictions, including implications related to the change in administration as a result of the 2024 U.S. presidential election; risks and uncertainty related to adverse public health developments; risks associated with climate change and other corporate responsibility issues; risks related to reputational harm to the company, its officers, and directors; risks related to actual or threatened litigation; 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 and net income 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, "Abercrombie brands" refers to Abercrombie & Fitch and abercrombie kids and "Hollister brands" refers to Hollister and Gilly Hicks. Additionally, references to "Americas" includes North America and South America, "EMEA" includes Europe, the Middle East and Africa and "APAC" includes the Asia-Pacific region, including Asia and Oceania.
| About Abercrombie & Fitch Co. |
Abercrombie & Fitch Co. (NYSE: ANF) is a global, digitally led, omnichannel specialty retailer of apparel and accessories catering to kids through millennials with assortments curated for their specific lifestyle needs.
The company operates a family of brands, including Abercrombie & Fitch and Hollister, each sharing a commitment to offer products of enduring quality and exceptional comfort that support global customers on their journey to being and becoming who they are. 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 abercrombie.com, abercrombiekids.com, and HollisterCo.com.
| Investor Contact: | Media Contact: | |
| Mo 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 | ||||||||||||
| November 2, 2024 | % of Net Sales | October 28, 2023 | % of Net Sales | ||||||||||
| Net sales | $ | 1,208,966 | 100.0 | % | $ | 1,056,431 | 100.0 | % | |||||
| Cost of sales, exclusive of depreciation and amortization | 422,034 | 34.9 | % | 370,762 | 35.1 | % | |||||||
| Gross profit | 786,932 | 65.1 | % | 685,669 | 64.9 | % | |||||||
| Stores and distribution expense | 419,235 | 34.7 | % | 383,883 | 36.3 | % | |||||||
| Marketing, general and administrative expense | 190,001 | 15.7 | % | 162,510 | 15.4 | % | |||||||
| Other operating (income) loss, net | (1,586 | ) | (0.1 | )% | 1,256 | 0.1 | % | ||||||
| Operating income | 179,282 | 14.8 | % | 138,020 | 13.1 | % | |||||||
| Interest expense | 569 | — | % | 8,568 | 0.8 | % | |||||||
| Interest income | (9,302 | ) | (0.8 | )% | (7,897 | ) | (0.7 | )% | |||||
| Interest (income) expense, net | (8,733 | ) | (0.7 | )% | 671 | 0.1 | % | ||||||
| Income before income taxes | 188,015 | 15.6 | % | 137,349 | 13.0 | % | |||||||
| Income tax expense | 54,151 | 4.5 | % | 39,617 | 3.8 | % | |||||||
| Net income | 133,864 | 11.1 | % | 97,732 | 9.3 | % | |||||||
| Less: Net income attributable to noncontrolling interests | 1,885 | 0.2 | % | 1,521 | 0.1 | % | |||||||
| Net income attributable to A&F | $ | 131,979 | 10.9 | % | $ | 96,211 | 9.1 | % | |||||
| Net income per share attributable to A&F | |||||||||||||
| Basic | $ | 2.59 | $ | 1.91 | |||||||||
| Diluted | $ | 2.50 | $ | 1.83 | |||||||||
| Weighted-average shares outstanding: | |||||||||||||
| Basic | 50,951 | 50,504 | |||||||||||
| Diluted | 52,869 | 52,624 | |||||||||||
| Abercrombie & Fitch Co. | |||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| (Unaudited) | |||||||||||||
| Thirty-Nine Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||
| November 2, 2024 | % of Net Sales | October 28, 2023 | % of Net Sales | ||||||||||
| Net sales | $ | 3,363,670 | 100.0 | % | $ | 2,827,770 | 100.0 | % | |||||
| Cost of sales, exclusive of depreciation and amortization | 1,163,019 | 34.6 | % | 1,047,927 | 37.1 | % | |||||||
| Gross profit | 2,200,651 | 65.4 | % | 1,779,843 | 62.9 | % | |||||||
| Stores and distribution expense | 1,181,154 | 35.1 | % | 1,072,662 | 37.9 | % | |||||||
| Marketing, general and administrative expense | 538,352 | 16.0 | % | 449,643 | 15.9 | % | |||||||
| Other operating income, net | (3,611 | ) | (0.1 | )% | (4,332 | ) | (0.2 | )% | |||||
| Operating income | 484,756 | 14.4 | % | 261,870 | 9.3 | % | |||||||
| Interest expense | 11,538 | 0.3 | % | 23,661 | 0.8 | % | |||||||
| Interest income | (30,497 | ) | (0.9 | )% | (18,450 | ) | (0.7 | )% | |||||
| Interest (income) expense, net | (18,959 | ) | (0.6 | )% | 5,211 | 0.2 | % | ||||||
| Income before income taxes | 503,715 | 15.0 | % | 256,659 | 9.1 | % | |||||||
| Income tax expense | 119,394 | 3.5 | % | 82,349 | 2.9 | % | |||||||
| Net income | 384,321 | 11.4 | % | 174,310 | 6.2 | % | |||||||
| Less: Net income attributable to noncontrolling interests | 5,324 | 0.2 | % | 4,634 | 0.2 | % | |||||||
| Net income attributable to A&F | $ | 378,997 | 11.3 | % | $ | 169,676 | 6.0 | % | |||||
| Net income per share attributable to A&F | |||||||||||||
| Basic | $ | 7.43 | $ | 3.38 | |||||||||
| Diluted | $ | 7.13 | $ | 3.25 | |||||||||
| Weighted-average shares outstanding: | |||||||||||||
| Basic | 51,030 | 50,138 | |||||||||||
| Diluted | 53,141 | 52,154 | |||||||||||
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.
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
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
In addition, the company provides EBITDA and Adjusted EBITDA as supplemental measures used by the company's executive management to assess the company's performance. We also believe these supplemental performance measures are meaningful information for investors and other interested parties to use in computing the company's core financial performance over multiple periods and with other companies by excluding the impact of differences in tax jurisdictions, debt service levels and capital investment.
| Abercrombie & Fitch Co. | |||||||
| Reconciliation of Constant Currency Financial Measures | |||||||
| Thirteen Weeks Ended November 2, 2024 and October 28, 2023 | |||||||
| (in thousands, except percentage and basis point changes and per share data) | |||||||
| (Unaudited) | |||||||
| 2024 | 2023 | % Change | |||||
| Net sales | |||||||
| GAAP (1) | $ | 1,208,966 | $ | 1,056,431 | |||
| Impact from changes in foreign currency exchange rates (2) | — | 5,289 | (1) | ||||
| Net sales on a constant currency basis | $ | 1,208,966 | $ | 1,061,720 | |||
| Gross profit | 2024 | 2023 | BPS Change (3) | ||||
| GAAP (1) | $ | 786,932 | $ | 685,669 | 20 | ||
| Impact from changes in foreign currency exchange rates (2) | — | 5,319 | (20) | ||||
| Gross profit on a constant currency basis | $ | 786,932 | $ | 690,988 | 0 | ||
| Operating income | 2024 | 2023 | BPS Change (3) | ||||
| GAAP (1) | $ | 179,282 | $ | 138,020 | 170 | ||
| Impact from changes in foreign currency exchange rates (2) | — | 4,915 | (40) | ||||
| Adjusted non-GAAP constant currency basis | $ | 179,282 | $ | 142,935 | 130 | ||
| Net income attributable to A&F | 2024 | 2023 | $ Change | ||||
| GAAP (1) | $ | 2.50 | $ | 1.83 | |||
| Impact from changes in foreign currency exchange rates (2) | — | 0.07 | (0.07) | ||||
| Adjusted non-GAAP constant currency basis | $ | 2.50 | $ | 1.90 | |||
| (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 | |
| (3) | The estimated basis point change has been rounded based on the percentage change. |
| Abercrombie & Fitch Co. | ||||||||||||||||
| Reconciliation of Constant Currency Net Sales by Geography and Brand | ||||||||||||||||
| Thirteen Weeks Ended November 2, 2024 and October 28, 2023 | ||||||||||||||||
| (in thousands, except percentage changes) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| 2024 | 2023 | 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 segment: (2) | ||||||||||||||||
| Americas (3) | $ | 986,449 | $ | 867,566 | $ | (266 | ) | $ | 867,300 | |||||||
| EMEA (4) | 181,592 | 157,976 | 5,055 | 163,031 | ||||||||||||
| APAC (5) | 40,925 | 30,889 | 500 | 31,389 | ||||||||||||
| Total company | $ | 1,208,966 | $ | 1,056,431 | $ | 5,289 | $ | 1,061,720 | ||||||||
| 2024 | 2023 | 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: | ||||||||||||||||
| Abercrombie (6) | $ | 629,835 | $ | 547,728 | $ | 1,643 | $ | 549,371 | ||||||||
| Hollister (7) | 579,131 | 508,703 | 3,646 | 512,349 | ||||||||||||
| Total company | $ | 1,208,966 | $ | 1,056,431 | $ | 5,289 | $ | 1,061,720 | ||||||||
| (1) | The estimated impact from foreign currency is determined by applying current period exchange rates to prior year results. | |
| (2) | Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order. | |
| (3) | The Americas segment includes the results of operations in North America and South America. | |
| (4) | The EMEA segment includes the results of operations in Europe, the Middle East and Africa. | |
| (5) | The APAC segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. | |
| (6) | For purposes of the above table, Abercrombie includes Abercrombie & Fitch and abercrombie kids. | |
| (7) | For purposes of the above table, Hollister includes Hollister and Gilly Hicks. |
| Abercrombie & Fitch Co. | ||||||||||||
| Reconciliation of EBITDA and Adjusted EBITDA | ||||||||||||
| Thirteen Weeks Ended November 2, 2024 and October 28, 2023 | ||||||||||||
| (in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| 2024 | % of Net Sales | 2023 | % of Net Sales | |||||||||
| Net income | $ | 133,864 | 11.1 | % | $ | 97,732 | 9.3 | % | ||||
| Income tax expense | 54,151 | 4.5 | 39,617 | 3.8 | ||||||||
| Interest (income) expense, net | (8,733 | ) | (0.7 | ) | 671 | 0.1 | ||||||
| Depreciation and amortization | 39,566 | 3.2 | 33,136 | 3.0 | ||||||||
| EBITDA (1) | $ | 218,848 | 18.1 | % | $ | 171,156 | 16.2 | % | ||||
| Abercrombie & Fitch Co. | ||||||||||||
| Schedule of Non-GAAP Financial Measures | ||||||||||||
| Thirty-Nine Weeks Ended November 2, 2024 and October 28, 2023 | ||||||||||||
| (in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| 2024 | % of Net Sales | 2023 | % of Net Sales | |||||||||
| Net income | $ | 384,321 | 11.4 | % | $ | 174,310 | 6.2 | % | ||||
| Income tax expense | 119,394 | 3.5 | 82,349 | 2.9 | ||||||||
| Interest (income) expense, net | (18,959 | ) | (0.6 | ) | 5,211 | 0.2 | ||||||
| Depreciation and amortization | 116,610 | 3.6 | 105,547 | 3.7 | ||||||||
| EBITDA (1) | $ | 601,366 | 17.9 | % | $ | 367,417 | 13.0 | % | ||||
| (1) | EBITDA is a supplemental financial measure that is not defined or prepared in accordance with GAAP. EBITDA is defined as net income before interest, income taxes and depreciation and amortization. |
| Abercrombie & Fitch Co. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| November 2, 2024 | February 3, 2024 | October 28, 2023 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and equivalents | $ | 683,089 | $ | 900,884 | $ | 649,489 | ||
| Receivables | 111,583 | 78,346 | 96,762 | |||||
| Inventories | 692,596 | 469,466 | 595,067 | |||||
| Other current assets | 168,499 | 88,569 | 100,085 | |||||
| Total current assets | 1,655,767 | 1,537,265 | 1,441,403 | |||||
| Property and equipment, net | 570,440 | 538,033 | 546,935 | |||||
| Operating lease right-of-use assets | 798,290 | 678,256 | 682,559 | |||||
| Other assets | 245,375 | 220,679 | 226,749 | |||||
| Total assets | $ | 3,269,872 | $ | 2,974,233 | $ | 2,897,646 | ||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 466,303 | $ | 296,976 | $ | 373,930 | ||
| Accrued expenses | 469,148 | 436,655 | 402,572 | |||||
| Short-term portion of operating lease liabilities | 210,335 | 179,625 | 195,025 | |||||
| Income taxes payable | 36,303 | 53,564 | 55,615 | |||||
| Total current liabilities | 1,182,089 | 966,820 | 1,027,142 | |||||
| Long-term liabilities: | ||||||||
| Long-term portion of operating lease liabilities | $ | 734,918 | $ | 646,624 | $ | 658,923 | ||
| Long-term borrowings, net | — | 222,119 | 248,033 | |||||
| Other liabilities | 92,405 | 88,683 | 87,435 | |||||
| Total long-term liabilities | 827,323 | 957,426 | 994,391 | |||||
| Total Abercrombie & Fitch Co. stockholders’ equity | 1,247,133 | 1,035,160 | 866,108 | |||||
| Noncontrolling interests | 13,327 | 14,827 | 10,005 | |||||
| Total stockholders’ equity | 1,260,460 | 1,049,987 | 876,113 | |||||
| Total liabilities and stockholders’ equity | $ | 3,269,872 | $ | 2,974,233 | $ | 2,897,646 | ||
| Abercrombie & Fitch Co. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (in thousands, except per share data) | |||||||
| (Unaudited) | |||||||
| Thirty-Nine Weeks Ended | |||||||
| November 2, 2024 | October 28, 2023 | ||||||
| Operating activities | |||||||
| Net cash provided by operating activities | $ | 402,756 | $ | 350,142 | |||
| Investing activities | |||||||
| Purchases of marketable securities | $ | (55,000 | ) | $ | — | ||
| Purchases of property and equipment | (132,040 | ) | (128,601 | ) | |||
| Proceeds from sale of property and equipment | — | 615 | |||||
| Net cash used for investing activities | $ | (187,040 | ) | $ | (127,986 | ) | |
| Financing activities | |||||||
| Redemption of senior secured notes | (223,331 | ) | (50,933 | ) | |||
| Payment of debt modification costs and fees | (3,273 | ) | (180 | ) | |||
| Purchases of common stock | (129,807 | ) | — | ||||
| Acquisition of common stock for tax withholding obligations | (69,613 | ) | (29,079 | ) | |||
| Other financing activities | (6,546 | ) | (6,914 | ) | |||
| Net cash used for financing activities | $ | (432,570 | ) | $ | (87,106 | ) | |
| Effect of foreign currency exchange rates on cash | $ | (1,834 | ) | $ | (4,491 | ) | |
| Net (decrease) increase in cash and equivalents, and restricted cash and equivalents | $ | (218,688 | ) | $ | 130,559 | ||
| Cash and equivalents, and restricted cash and equivalents, beginning of period | $ | 909,685 | $ | 527,569 | |||
| Cash and equivalents, and restricted cash and equivalents, end of period | $ | 690,997 | $ | 658,128 | |||
FAQ
What was Abercrombie & Fitch's (ANF) Q3 2024 revenue?
What was ANF's comparable sales growth in Q3 2024?
How much did Abercrombie & Fitch's operating income grow in Q3 2024?
What is ANF's updated sales guidance for fiscal 2024?
