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In a year with significant inflation and global macroeconomic disruption, our teams leveraged our agile operating model to redirect expense and inventory investments. These efforts helped drive sequential sales improvement in the last two quarters, while progressing on key growth initiatives across digital, technology and stores. For the year, we achieved net sales of
As we look to 2023, we remain cautiously optimistic on consumer demand. Our
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
- Net sales of
$1.2 billion up 3% as compared to last year on a reported basis and 5% on a constant currency basis. - Gross profit rate of 55.7%, down 260 basis points as compared to last year. The year-over-year decrease was primarily driven by 160 basis points of higher product costs with higher cotton costs and inventory reserves more than offsetting lower freight costs and 100 basis points from the adverse impact of exchange rates.
- Operating expense, excluding other operating income, net, was down slightly as compared to last year, with decreases in marketing and incentive-based compensation, offset by higher inflation and digital and technology investments. Operating expense as a percentage of sales decreased to 48.3% from 50.2% last year.
- Operating income of
$87 million and$92 million on a reported and adjusted non-GAAP basis, respectively, as compared to$98 million and$100 million last year, on a reported and adjusted non-GAAP basis, respectively. - Net income per diluted share of
$0.75 and$0.81 on a reported and adjusted non-GAAP basis, respectively, as compared to net income per diluted share last year of$1.12 and$1.14 on a reported and adjusted non-GAAP basis, respectively.
A summary of results for the full year ended
- Net sales of
$3.7 billion which was approximately flat as compared to last year on a reported basis and up 2% on a constant currency basis. - Gross profit rate of 56.9%, down approximately 540 basis points as compared to last year. The year-over-year decrease was primarily driven by 520 basis points of higher freight and raw material costs and 40 basis points from the adverse impact of exchange rates partially offset by higher average unit retail.
- Operating expense, excluding other operating income, net, was up 2% as compared to last year with increases in inflation, digital investments and higher digital fulfillment expenses, partially offset by decreases in marketing and incentive-based compensation. Operating expense as a percentage of sales increased to 54.5% from 53.3% last year.
- Operating income of
$93 million and$107 million on a reported and adjusted non-GAAP basis, respectively. This compares to operating income last year of$343 million and$355 million on a reported and adjusted non-GAAP basis, respectively. - Net income per diluted share of
$0.05 and$0.25 on a reported and adjusted non-GAAP basis, respectively, as compared to net income per diluted share last year of$4.20 and$4.35 on a reported and adjusted non-GAAP basis, respectively.
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 | )% | ||||
560,438 | 492,576 | 14 | % | |||||||
Total company | $ | 1,199,814 | $ | 1,161,353 | 3 | % | ||||
Net sales by region: (3) | 2022 | 2021 | 1 YR % Change | |||||||
$ | 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 | )% | ||||
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 | |||||||
$ | 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,
(2)
(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
Financial Position and Liquidity |
As of
- Cash and equivalents of
$518 million as compared to$823 million last year driven primarily by capital investments and share repurchases. - Inventories of
$506 million , a decrease of approximately 4% over last year as we fully lapped the late receipts experienced in 2021 due to supply chain delays and significant production delays inVietnam . - Long-term gross borrowings under the company's senior secured notes of
$300 million (the "Senior Secured Notes") which mature inJuly 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
$348 million . - Liquidity, comprised of cash and equivalents and borrowing available under the ABL Facility, of approximately
$0.9 billion . This compares to liquidity of$1.1 billion as ofJanuary 29, 2022 .
Cash Flow and Capital Allocation |
Details related to the company's cash flows for the full year ended
- Net cash used for operating activities of
$2 million . - Net cash used for investing activities of
$141 million , reflecting$165 million in capital expenditures of which approximately half was invested in digital and technology and half primarily in stores. This was partially offset by$12 million in proceeds from the withdrawal of rabbi trust assets and$12 million from from proceeds from the sale of property and equipment. - Net cash used for financing activities of
$155 million , reflecting$126 million of share repurchases and$8 million purchase of its senior notes.
There were no share repurchases during the fourth quarter. For the full year ended
For the full year ended
Depreciation and amortization was
Fiscal 2023 Full Year Outlook |
For fiscal 2023, the company expects:
- Net sales growth in the range of 1 to 3% from
$3.7 billion in 2022 with the expectation thatAbercrombie will continue to outperform Hollister and theU.S. will continue to outperform International. We expect growth to be weighted to the second half of the year, driven primarily by the inclusion of a 53rd week for reporting purposes, along with net store expansion. The 53rd week is estimated to to add approximately$45 million to total net sales in 2023. - Operating margin to be in a range of 4 to 5%, which includes a benefit of around 200 basis points from full year 2022 levels on expected net improvement in freight and raw material costs, partially offset by modest operating margin deleverage from the combination of inflation and increased operating expense investment for the 2025 Always Forward Plan initiatives, including an upgrade of our retail merchandising ERP system.
- Effective tax rate to be in the mid-40s with continued inability to realize benefits on certain, expected tax losses incurred outside of the
U.S.
- Capital expenditures of approximately
$160 million .
Fiscal 2023 First Quarter Outlook |
For the first quarter of fiscal 2023, the company expects:
- Net sales to be around flat to fiscal first quarter 2022 level of $813 million.
- Operating margin to be in the range of breakeven to 2% compared to (1)% in Q1 2022 period on expected net improvement in freight and raw material costs, partially offset by modest operating margin deleverage from the combination of inflation and increased operating expense investment for the 2025 Always Forward Plan initiatives, including an upgrade of our retail merchandising ERP system.
- Effective tax rate expected to be volatile in Q1 on expected low levels of income. We expect to incur tax expense regardless of level of taxable income or loss.
Conference Call |
Today at
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
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 |
This Press Release and related statements by management or spokespeople of
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
As used in this document, unless otherwise defined "Hollister" refers to the company's Hollister,
About |
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.
Investor Contact: | Media Contact: | |
(614) 283-6751 | (614) 283-6192 | |
Investor_Relations@anfcorp.com | Public_Relations@anfcorp.com |
Condensed Consolidated Statements of Operations | |||||||||||||
(in thousands, except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
Thirteen Weeks Ended | Thirteen Weeks Ended | ||||||||||||
2023 |
% of Net Sales |
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 |
Condensed Consolidated Statements of Operations | |||||||||||||
(in thousands, except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
Fifty-Two Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||
2023 |
% of Net Sales |
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.
Schedule of Non-GAAP Financial Measures | |||||||||||
Thirteen Weeks Ended |
|||||||||||
(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
(2) Excluded items consist of pre-tax store and other asset impairment charges of
(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.
Schedule of Non-GAAP Financial Measures | |||||||||||
Thirteen Weeks Ended |
|||||||||||
(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
(2) Excluded items consist of pre-tax store asset impairment charges of
(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.
Schedule of Non-GAAP Financial Measures | |||||||||||
Fifty-Two Weeks Ended |
|||||||||||
(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
(2) Excluded items consist of pre-tax store and other asset impairment charges of
(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.
Schedule of Non-GAAP Financial Measures | |||||||||||
Fifty-Two Weeks Ended |
|||||||||||
(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
(2) Excluded items consist of pre-tax store asset impairment charges of
(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.
Reconciliation of Constant Currency Financial Measures | |||||||||
Thirteen Weeks Ended |
|||||||||
(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 | |||||
Excluded items, net of tax (4) | (0.07 | ) | (0.03 | ) | 0.04 | ||||
Adjusted non-GAAP | $ | 0.81 | $ | 1.14 | |||||
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 |
(1) “GAAP” refers to accounting principles generally accepted in
(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
Reconciliation of Constant Currency Financial Measures | |||||||||
Fifty-Two Weeks Ended |
|||||||||
(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 | |||||
Excluded items, net of tax (4) | (0.20 | ) | (0.15 | ) | (0.05) | ||||
Adjusted non-GAAP | $ | 0.25 | $ | 4.35 | |||||
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 |
(1) “GAAP” refers to accounting principles generally accepted in
(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
Reconciliation of Constant Currency |
|||||||||||||||
Thirteen Weeks Ended |
|||||||||||||||
(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 | )% | ||
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) | |||||||||||||||
$ | 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,
(3)
(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
Reconciliation of Constant Currency |
|||||||||||||||
Fifty-Two Weeks Ended |
|||||||||||||||
(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 | )% | ||
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) | |||||||||||||||
$ | 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,
(3)
(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
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
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 |
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 |
Condensed Consolidated Statements of Cash Flows | |||||||
(in thousands, except per share data) | |||||||
(Unaudited) | |||||||
Fifty-Two Weeks Ended | |||||||
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 |
Store Count Activity
Thirteen Weeks Ended |
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Hollister (1) | ||||||||||||||||||||
International | International | International | Total | |||||||||||||||||
367 | 156 | 174 | 54 | 541 | 210 | 751 | ||||||||||||||
New | 17 | — | 8 | 3 | 25 | 3 | 28 | |||||||||||||
Permanently closed | (4 | ) | (7 | ) | (2 | ) | (4 | ) | (6 | ) | (11 | ) | (17 | ) | ||||||
380 | 149 | 180 | 53 | 560 | 202 | 762 | ||||||||||||||
Fifty-Two Weeks Ended |
||||||||||||||||||||
Hollister (1) | ||||||||||||||||||||
International | International | International | Total | |||||||||||||||||
351 | 154 | 173 | 51 | 524 | 205 | 729 | ||||||||||||||
New | 33 | 5 | 13 | 8 | 46 | 13 | 59 | |||||||||||||
Permanently closed | (4 | ) | (10 | ) | (6 | ) | (6 | ) | (10 | ) | (16 | ) | (26 | ) | ||||||
380 | 149 | 180 | 53 | 560 | 202 | 762 |
(1) Hollister includes the company’s Hollister and Gilly Hicks brands. Locations with
(2)
(3) This store count excludes one international third-party operated multi-brand outlet store as of each of

Source: Abercrombie & Fitch Management Co.