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- Company delivers fourth quarter net sales growth of 21%, led by 35% growth in
Abercrombie brands - Full year net sales of
$4.28 billion , up 16% to 2022, driven by comparable sales up 13% - Full year net sales growth across regions and brands; Abercrombie brands comparable sales up 23%
- Full year operating margin of 11.3%, highest in fifteen years and up 880 basis points to full year 2022
Following several years of transformation across our brands, people and operating model, fiscal 2023 was a defining year for our company. In the first full year of our Always Forward Plan, we executed our playbook, delivering the right product, voice and experience across regions and brands to our global customers. Abercrombie brands finished an exceptional year with 27% net sales growth over 2022, reflecting a strong 10% compound annual growth rate from fiscal 2019. Hollister brands completed a return to sales growth of 6% over fiscal 2022, reconnecting with teen customers. Operationally, we fueled sales growth using our well-developed inventory chase capabilities while funding critical long-term investments in our people, stores and key technology platforms. Compared to 2022, we grew annual net sales 16%, improved gross profit rate by 600 basis points and delivered an operating margin of 11.3%, our highest in 15 years and above our 2025 Always Forward Plan operating margin target.
We entered fiscal 2024 in a position of strength with momentum across our brand portfolio. The success of our playbook gives us confidence that we can now shift more of our focus to expanding our global customer base. This year, our goal is to deliver sustainable, profitable growth while making the necessary investments to build and support our longer-term ambition of
Details related to net income per diluted share for the fourth quarter and full year are as follows:
Fourth Quarter | Full Year | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
GAAP | $ | 2.97 | $ | 0.75 | $ | 6.22 | $ | 0.05 | ||||||
Excluded items, net of tax effect (1) | — | (0.07 | ) | (0.06 | ) | (0.20 | ) | |||||||
Adjusted non-GAAP | $ | 2.97 | $ | 0.81 | $ | 6.28 | $ | 0.25 | ||||||
Impact from changes in foreign currency exchange rates (2) | — | 0.07 | — | (0.13 | ) | |||||||||
Adjusted non-GAAP constant currency | $ | 2.97 | $ | 0.88 | $ | 6.28 | $ | 0.12 | ||||||
(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
$1.5 billion up 21% as compared to last year on a reported basis and 21% on a constant currency basis. The additional week in fiscal 2023 benefited fourth quarter net sales by approximately$50 million , or 430 basis points. - Comparable sales up 16%.
- Gross profit rate of 62.9%, up 720 basis points as compared to last year. The year-over-year increase was primarily driven by 430 basis points of higher average unit retail and 290 basis points associated with lower freight and raw material costs.
- Operating expense, excluding other operating income, net, was up 19% as compared to last year, with the increase driven by higher incentive compensation, marketing, inflation, the 53rd reporting week and digital and technology expenses. Operating expense as a percentage of sales decreased to 47.6% from 48.3% last year.
- Operating income of
$223 million as compared to$87 million and$92 million last year, on a reported and adjusted non-GAAP basis, respectively. - Net income per diluted share of
$2.97 as compared to net income per diluted share last year of$0.75 and$0.81 on a reported and adjusted non-GAAP basis, respectively.
A summary of results for the full year ended
- Net sales of
$4.3 billion up 16% as compared to last year on a reported basis and up 16% on a constant currency basis. The additional week in fiscal 2023 benefited net sales by approximately$50 million , or 140 basis points. - Comparable sales up 13%.
- Gross profit rate of 62.9%, up approximately 600 basis points as compared to last year. The year-over-year increase was primarily driven by 340 basis points of higher average unit retail and 300 basis points from the combination of lower freight costs and higher raw materials. Results were partially offset by 30 basis points from the adverse impact of exchange rates.
- Operating expense, excluding other operating income, net, was up 10% as compared to last year with increases in incentive compensation, inflation, marketing, the 53rd reporting week and digital and technology expenses. Operating expense as a percentage of sales decreased to 51.7% from 54.5% last year.
- Operating income of
$485 million and$489 million on a reported and adjusted non-GAAP basis, respectively. This compares to operating income last year of$93 million and$107 million on a reported and adjusted non-GAAP basis, respectively. - Net income per diluted share of
$6.22 and$6.28 on a reported and adjusted non-GAAP basis, respectively, as compared to net income per diluted share last year of$0.05 and$0.25 on a reported and adjusted non-GAAP basis, respectively.
Net sales by segment and brand for the fourth quarter and full year are as follows:
Fourth Quarter | |||||||||
(in thousands) | 2023 | 2022 | 1 YR % Change | Comparable sales (2) | |||||
Net sales by segment: (1) | |||||||||
$ | 1,191,259 | $ | 971,091 | 23% | 17% | ||||
EMEA (4) | 219,050 | 193,400 | 13% | 10% | |||||
APAC (5) | 42,598 | 35,323 | 21% | 21% | |||||
Total company | $ | 1,452,907 | $ | 1,199,814 | 21% | 16% | |||
Net sales by brand: | 2023 | 2022 | 1 YR % Change | Comparable sales (2) | |||||
755,203 | 560,438 | 35% | 28% | ||||||
Hollister (7) | $ | 697,704 | $ | 639,376 | 9% | 6% | |||
Total company | $ | 1,452,907 | $ | 1,199,814 | 21% | 16% |
Full Year | |||||||||
(in thousands) | 2023 | 2022 | 1 YR % Change | Comparable sales (2) | |||||
Net sales by segment: (1) | |||||||||
$ | 3,455,674 | $ | 2,920,157 | 18% | 13% | ||||
EMEA (4) | 687,095 | 658,794 | 4% | 7% | |||||
APAC (5) | 137,908 | 118,800 | 16% | 26% | |||||
Total company | $ | 4,280,677 | $ | 3,697,751 | 16% | 13% | |||
Net sales by brand: | 2023 | 2022 | 1 YR % Change | Comparable sales (2) | |||||
2,201,686 | 1,734,866 | 27% | 23% | ||||||
Hollister (7) | $ | 2,078,991 | $ | 1,962,885 | 6% | 4% | |||
Total company | $ | 4,280,677 | $ | 3,697,751 | 16% | 13% | |||
(1) Net sales by segment are presented by attributing revenues to an individual country on the basis of the segment 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 |
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(4) The EMEA segment includes the results of operations in |
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(5) The APAC segment includes the results of operations in the |
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(6) Abercrombie brands includes |
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(7) Hollister brands includes Hollister and |
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Financial Position and Liquidity |
As of
- Cash and equivalents of
$901 million as compared to$518 million last year. - Inventories of
$469 million , a decrease of approximately 7% over last year. - Long-term gross borrowings under the company's senior secured notes of
$223 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
$299 million . - Liquidity, comprised of cash and equivalents and borrowing available under the ABL Facility, of approximately
$1.2 billion . This compares to liquidity of$0.9 billion as ofJanuary 28, 2023 .
Cash Flow and Capital Allocation |
Details related to the company's cash flows for the full year ended
- Net cash provided by operating activities of
$653 million . - Net cash used for investing activities of
$157 million . - Net cash used for financing activities of
$111 million .
For the full year ended
Depreciation and amortization was
Fiscal 2024 Full Year Outlook |
For fiscal 2024, the company expects:
- Net sales growth in the range of 4% to 6% from
$4.3 billion in fiscal 2023, which includes the adverse impact of approximately$50 million from the 53rd reporting week in fiscal 2023. We expect Abercrombie brands will continue to outperform Hollister brands and theAmericas will continue to lead the regional performance. We also expect the year-over-year growth rate to be higher in the first half of the year, partially due to the calendar shifts from the 53rd week in 2023. - Operating margin to be around 12%, compared to an adjusted operating margin of 11.4% in fiscal 2023. We expect the year-over-year improvement to be driven by a higher gross profit rate.
- Effective tax rate to be in the mid-to-high 20s with the rate being sensitive to the jurisdictional mix and level of income.
- Capital expenditures of approximately
$170 million .
Fiscal 2024 First Quarter Outlook |
For the first quarter of fiscal 2024, the company expects:
- Net sales to be up low double-digits to fiscal first quarter 2023 level of $836 million.
- Operating margin to be in the range of 8% to 10% compared to adjusted operating margin of 4.6% in Q1 2023.
- Effective tax rate to be around 10%, which is lower than the company’s statutory federal income tax rate primarily due to anticipated discrete federal income tax benefits relating to the vesting of share-based compensation, and is sensitive to the Company's actual stock price on the vesting dates.
Conference Call |
Today at
https://register.vevent.com/register/BI9f8a4719461042eabb81da04d4f562e1
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 and net income per share financial measures included herein are attributable to
As used in this document, unless otherwise defined "Hollister brands" refers to Hollister and
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) | ||||||||||||
Fourteen Weeks Ended | Thirteen Weeks Ended | |||||||||||
% of |
% of |
|||||||||||
Net sales | $ | 1,452,907 | 100.0 | % | $ | 1,199,814 | 100.0 | % | ||||
Cost of sales, exclusive of depreciation and amortization | 539,338 | 37.1 | % | 531,529 | 44.3 | % | ||||||
Gross profit | 913,569 | 62.9 | % | 668,285 | 55.7 | % | ||||||
Stores and distribution expense | 499,075 | 34.4 | % | 441,959 | 36.8 | % | ||||||
Marketing, general and administrative expense | 193,234 | 13.3 | % | 138,084 | 11.5 | % | ||||||
Other operating (income) expense, net | (1,541 | ) | (0.1) | % | 1,220 | 0.1 | % | |||||
Operating income | 222,801 | 15.3 | % | 87,022 | 7.3 | % | ||||||
Interest (income) expense, net | (4,839 | ) | (0.3) | % | 4,113 | 0.3 | % | |||||
Income before income taxes | 227,640 | 15.7 | % | 82,909 | 6.9 | % | ||||||
Income tax expense | 66,537 | 4.6 | % | 42,218 | 3.5 | % | ||||||
Net income | 161,103 | 11.1 | % | 40,691 | 3.4 | % | ||||||
Less: Net income attributable to noncontrolling interests | 2,656 | 0.2 | % | 2,358 | 0.2 | % | ||||||
Net income attributable to A&F | $ | 158,447 | 10.9 | % | $ | 38,333 | 3.2 | % | ||||
Net income per share attributable to A&F | ||||||||||||
Basic | $ | 3.13 | $ | 0.78 | ||||||||
Diluted | $ | 2.97 | $ | 0.75 | ||||||||
Weighted-average shares outstanding: | ||||||||||||
Basic | 50,559 | 49,216 | ||||||||||
Diluted | 53,399 | 51,217 |
Condensed Consolidated Statements of Operations | |||||||||||||
(in thousands, except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
Fifty-Three Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||
% of |
% of |
||||||||||||
Net sales | $ | 4,280,677 | 100.0 | % | $ | 3,697,751 | 100.0 | % | |||||
Cost of sales, exclusive of depreciation and amortization | 1,587,265 | 37.1 | % | 1,593,213 | 43.1 | % | |||||||
Gross profit | 2,693,412 | 62.9 | % | 2,104,538 | 56.9 | % | |||||||
Stores and distribution expense | 1,571,737 | 36.7 | % | 1,496,962 | 40.5 | % | |||||||
Marketing, general and administrative expense | 642,877 | 15.0 | % | 517,602 | 14.0 | % | |||||||
Other operating income, net | (5,873 | ) | (0.1) | % | (2,674 | ) | (0.1) | % | |||||
Operating income | 484,671 | 11.3 | % | 92,648 | 2.5 | % | |||||||
Interest expense, net | 372 | 0.0 | % | 25,632 | 0.7 | % | |||||||
Income before income taxes | 484,299 | 11.3 | % | 67,016 | 1.8 | % | |||||||
Income tax expense | 148,886 | 3.5 | % | 56,631 | 1.5 | % | |||||||
Net income | 335,413 | 7.8 | % | 10,385 | 0.3 | % | |||||||
Less: Net income attributable to noncontrolling interests | 7,290 | 0.2 | % | 7,569 | 0.2 | % | |||||||
Net income attributable to A&F | $ | 328,123 | 7.7 | % | $ | 2,816 | 0.1 | % | |||||
Net income per share attributable to A&F | |||||||||||||
Basic | $ | 6.53 | $ | 0.06 | |||||||||
Diluted | $ | 6.22 | $ | 0.05 | |||||||||
Weighted-average shares outstanding: | |||||||||||||
Basic | 50,250 | 50,307 | |||||||||||
Diluted | 52,726 | 52,327 | |||||||||||
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.
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 | ||||||||||
Fifty-Three Weeks Ended |
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(in thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
GAAP (1) | Excluded items | Adjusted non-GAAP |
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Asset impairment (2) | $ | 4,436 | $ | 4,436 | $ | — | ||||
Operating income | 484,671 | (4,436 | ) | 489,107 | ||||||
Income before income taxes | 484,299 | (4,436 | ) | 488,735 | ||||||
Income tax expense (3) | 148,886 | (1,231 | ) | 150,117 | ||||||
Net income attributable to A&F | $ | 328,123 | $ | (3,205 | ) | $ | 331,328 | |||
Net income per diluted share attributable to A&F | $ | 6.22 | $ | (0.06 | ) | $ | 6.28 | |||
Diluted weighted-average shares outstanding: | 52,726 | 52,726 | ||||||||
(1) “GAAP” refers to accounting principles generally accepted in |
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(2) Excluded items consist of pre-tax store impairment charges of |
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(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 |
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(in thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
GAAP (1) | Excluded Items |
Adjusted Non-GAAP |
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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 |
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(2) Excluded items consist of pre-tax store and other asset asset impairment charges of |
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(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 | ||||||||||
Fourteen Weeks Ended |
||||||||||
(in thousands, except percentage and basis point changes and per share data) | ||||||||||
(Unaudited) | ||||||||||
Net sales | 2023 | 2022 | % Change | |||||||
GAAP (1) | $ | 1,452,907 | $ | 1,199,814 | 21 | % | ||||
Impact from changes in foreign currency exchange rates (2) | — | 5,287 | 0 | % | ||||||
Net sales on a constant currency basis | $ | 1,452,907 | $ | 1,205,101 | 21 | % | ||||
Gross profit | 2023 | 2022 | BPS Change (3) | |||||||
GAAP (1) | $ | 913,569 | $ | 668,285 | 720 | |||||
Impact from changes in foreign currency exchange rates (2) | — | 3,702 | (10 | ) | ||||||
Gross profit on a constant currency basis | $ | 913,569 | $ | 671,987 | 710 | |||||
Operating income | 2023 | 2022 | BPS Change (3) | |||||||
GAAP (1) | $ | 222,801 | $ | 87,022 | 800 | |||||
Excluded items (4) | — | (4,695 | ) | (30 | ) | |||||
Adjusted non-GAAP | $ | 222,801 | $ | 91,717 | 770 | |||||
Impact from changes in foreign currency exchange rates (2) | — | 4,232 | (40 | ) | ||||||
Adjusted non-GAAP constant currency basis | $ | 222,801 | $ | 95,949 | 730 | |||||
Net income per share attributable to A&F | 2023 | 2022 | $ Change | |||||||
GAAP (1) | $ | 2.97 | $ | 0.75 | $ | 2.22 | ||||
Excluded items, net of tax (4) | — | (0.07 | ) | (0.07 | ) | |||||
Adjusted non-GAAP | $ | 2.97 | $ | 0.81 | $ | 2.16 | ||||
Impact from changes in foreign currency exchange rates (2) | — | 0.07 | (0.07 | ) | ||||||
Adjusted non-GAAP on a constant currency basis | $ | 2.97 | $ | 0.88 | $ | 2.09 | ||||
(1) “GAAP” refers to accounting principles generally accepted in |
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(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-Three Weeks Ended |
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(in thousands, except percentage and basis point changes and per share data) | ||||||||||
(Unaudited) | ||||||||||
Net sales | 2023 | 2022 | % Change | |||||||
GAAP (1) | $ | 4,280,677 | $ | 3,697,751 | 16% | |||||
Impact from changes in foreign currency exchange rates (2) | — | 6,500 | 0% | |||||||
Net sales on a constant currency basis | $ | 4,280,677 | $ | 3,704,251 | 16% | |||||
Gross profit | 2023 | 2022 | BPS Change (3) | |||||||
GAAP (1) | $ | 2,693,412 | $ | 2,104,538 | 600 | |||||
Impact from changes in foreign currency exchange rates (2) | — | (8,969 | ) | 30 | ||||||
Gross profit on a constant currency basis | $ | 2,693,412 | $ | 2,095,569 | 630 | |||||
Operating income | 2023 | 2022 | BPS Change (3) | |||||||
GAAP (1) | $ | 484,671 | $ | 92,648 | 880 | |||||
Excluded items (4) | (4,436 | ) | (14,031 | ) | (30) | |||||
Adjusted non-GAAP | $ | 489,107 | $ | 106,679 | 850 | |||||
Impact from changes in foreign currency exchange rates (2) | — | (9,608 | ) | 30 | ||||||
Adjusted non-GAAP on a constant currency basis | $ | 489,107 | $ | 97,071 | 880 | |||||
Net income per share attributable to A&F | 2023 | 2022 | $ Change | |||||||
GAAP (1) | $ | 6.22 | $ | 0.05 | $ | 6.17 | ||||
Excluded items, net of tax (4) | (0.06 | ) | (0.20 | ) | (0.14) | |||||
Adjusted non-GAAP | $ | 6.28 | $ | 0.25 | $ | 6.03 | ||||
Impact from changes in foreign currency exchange rates (2) | — | (0.13 | ) | 0.13 | ||||||
Adjusted non-GAAP on a constant currency basis | $ | 6.28 | $ | 0.12 | $ | 6.16 | ||||
(1) “GAAP” refers to accounting principles generally accepted in |
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(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 |
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Fourteen Weeks Ended |
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(in thousands, except percentage changes) | |||||||||||||||
(Unaudited) | |||||||||||||||
2023 | 2022 | GAAP % Change |
Non-GAAP Constant Currency Basis % Change |
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GAAP | GAAP | Impact From Changes In Foreign Currency Exchanges Rates (1) |
Non-GAAP Constant Currency Basis |
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Net sales by segment: (2) | |||||||||||||||
$ | 1,191,259 | $ | 971,091 | $ | (58 | ) | $ | 971,033 | 23 | % | 23 | % | |||
EMEA (4) | 219,050 | 193,400 | 6,374 | 199,774 | 13 | % | 10 | % | |||||||
APAC (5) | 42,598 | 35,323 | (1,029 | ) | 34,294 | 21 | % | 24 | % | ||||||
Total company | $ | 1,452,907 | $ | 1,199,814 | $ | 5,287 | $ | 1,205,101 | 21 | % | 21 | % | |||
2023 | 2022 | GAAP % Change |
Non-GAAP Constant Currency Basis % Change |
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GAAP | GAAP | Impact From Changes In Foreign Currency Exchanges Rates (1) |
Non-GAAP Constant Currency Basis |
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Net sales by brand: | |||||||||||||||
755,203 | 560,438 | 843 | 561,281 | 35 | % | 35 | % | ||||||||
Hollister (7) | $ | 697,704 | $ | 639,376 | $ | 4,444 | $ | 643,820 | 9 | % | 8 | % | |||
Total company | $ | 1,452,907 | $ | 1,199,814 | $ | 5,287 | $ | 1,205,101 | 21 | % | 21 | % | |||
(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. | |||||||||||||||
(2) Net sales by segment are presented by attributing revenues to an individual country on the basis of the segment that fulfills the order. | |||||||||||||||
(3) The |
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(4) The EMEA segment includes the results of operations in |
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(5) The APAC segment includes the results of operations in the |
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(6) Abercrombie brands includes |
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(7) Hollister brands includes Hollister and |
Reconciliation of Constant Currency |
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Fifty-Three Weeks Ended |
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(in thousands, except percentage changes) | |||||||||||||||
(Unaudited) | |||||||||||||||
2023 | 2022 | GAAP % Change |
Non-GAAP Constant Currency Basis % Change |
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GAAP | GAAP | Impact From Changes In Foreign Currency Exchanges Rates (1) |
Non-GAAP Constant Currency Basis |
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Net sales by segment: (2) | |||||||||||||||
$ | 3,455,674 | $ | 2,920,157 | $ | (3,925 | ) | $ | 2,916,232 | 18 | % | 18 | % | |||
EMEA (4) | 687,095 | 658,794 | 15,498 | 674,292 | 4 | % | 2 | % | |||||||
APAC (5) | 137,908 | 118,800 | (5,073 | ) | 113,727 | 16 | % | 21 | % | ||||||
Total company | $ | 4,280,677 | $ | 3,697,751 | $ | 6,500 | $ | 3,704,251 | 16 | % | 16 | % | |||
2023 | 2022 | GAAP % Change |
Non-GAAP Constant Currency Basis % Change |
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GAAP | GAAP | Impact From Changes In Foreign Currency Exchanges Rates (1) |
Non-GAAP Constant Currency Basis |
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Net sales by brand: | |||||||||||||||
$ | 2,201,686 | $ | 1,734,866 | $ | (1,234 | ) | $ | 1,733,632 | 27 | % | 27 | % | |||
Hollister (7) | 2,078,991 | 1,962,885 | 7,734 | 1,970,619 | 6 | % | 5 | % | |||||||
Total company | $ | 4,280,677 | $ | 3,697,751 | $ | 6,500 | $ | 3,704,251 | 16 | % | 16 | % | |||
(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. | |||||||||||||||
(2) Net sales by segment are presented by attributing revenues to an individual country on the basis of the segment that fulfills the order. | |||||||||||||||
(3) The |
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(4) The EMEA segment includes the results of operations in |
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(5) The APAC segment includes the results of operations in the |
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(6) Abercrombie brands includes |
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(7) Hollister brands includes Hollister and |
Condensed Consolidated Balance Sheets | ||||||
(in thousands) | ||||||
(Unaudited) | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and equivalents | $ | 900,884 | $ | 517,602 | ||
Receivables | 78,346 | 104,506 | ||||
Inventories | 469,466 | 505,621 | ||||
Other current assets | 88,569 | 100,289 | ||||
Total current assets | 1,537,265 | 1,228,018 | ||||
Property and equipment, net | 538,033 | 551,585 | ||||
Operating lease right-of-use assets | 678,256 | 723,550 | ||||
Other assets | 220,679 | 209,947 | ||||
Total assets | $ | 2,974,233 | $ | 2,713,100 | ||
Liabilities and stockholders’ equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 296,976 | $ | 258,895 | ||
Accrued expenses | 436,655 | 413,303 | ||||
Short-term portion of operating lease liabilities | 179,625 | 213,979 | ||||
Income taxes payable | 53,564 | 16,023 | ||||
Total current liabilities | 966,820 | 902,200 | ||||
Long-term liabilities: | ||||||
Long-term portion of operating lease liabilities | $ | 646,624 | $ | 713,361 | ||
Long-term borrowings, net | 222,119 | 296,852 | ||||
Other liabilities | 88,683 | 94,118 | ||||
Total long-term liabilities | 957,426 | 1,104,331 | ||||
Total |
1,035,160 | 694,841 | ||||
Noncontrolling interests | 14,827 | 11,728 | ||||
Total stockholders’ equity | 1,049,987 | 706,569 | ||||
Total liabilities and stockholders’ equity | $ | 2,974,233 | $ | 2,713,100 | ||
Condensed Consolidated Statements of Cash Flows | |||||||
(in thousands, except per share data) | |||||||
(Unaudited) | |||||||
Fifty-Three Weeks Ended | Fifty-Two Weeks Ended | ||||||
Operating activities | |||||||
Net cash provided by (used for) operating activities | $ | 653,422 | $ | (2,343 | ) | ||
Investing activities | |||||||
Purchases of property and equipment | $ | (157,797 | ) | $ | (164,566 | ) | |
Proceeds from the sale of property and equipment | 615 | 11,891 | |||||
Withdrawal of Rabbi Trust assets | — | 12,000 | |||||
Net cash used for investing activities | $ | (157,182 | ) | $ | (140,675 | ) | |
Financing activities | |||||||
Purchase of senior secured notes | (77,972 | ) | (7,862 | ) | |||
Payment of debt issuance costs and fees | (180 | ) | (181 | ) | |||
Purchases of common stock | — | (125,775 | ) | ||||
Other financing activities | (33,049 | ) | (21,511 | ) | |||
Net cash used for financing activities | $ | (111,201 | ) | $ | (155,329 | ) | |
Effect of foreign currency exchange rates on cash | $ | (2,923 | ) | $ | (8,452 | ) | |
Net increase (decrease) in cash and equivalents, and restricted cash and equivalents | $ | 382,116 | $ | (306,799 | ) | ||
Cash and equivalents, and restricted cash and equivalents, beginning of period | $ | 527,569 | $ | 834,368 | |||
Cash and equivalents, and restricted cash and equivalents, end of period | $ | 909,685 | $ | 527,569 | |||
Store Count Activity |
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Fifty-Three Weeks Ended |
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EMEA (2) | APAC (3) | ||||||||||||||||||||||||
Hollister (5) | Hollister (5) | Hollister (5) | Hollister (5) | Total (6) | |||||||||||||||||||||
184 | 389 | 29 | 112 | 20 | 28 | 233 | 529 | 762 | |||||||||||||||||
New | 14 | 7 | 4 | 6 | 4 | — | 22 | 13 | 35 | ||||||||||||||||
Permanently closed | (4 | ) | (12 | ) | (4 | ) | (10 | ) | — | (2 | ) | (8 | ) | (24 | ) | (32 | ) | ||||||||
194 | 384 | 29 | 108 | 24 | 26 | 247 | 518 | 765 | |||||||||||||||||
(1) The |
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(2) The EMEA segment includes the results of operations in |
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(3) The APAC segment includes the results of operations in the |
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(4) Abercrombie brands includes |
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(5) Hollister brands includes Hollister and |
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(6) Store count excludes temporary and international franchise stores. | |||||||||||||||||||||||||
Source: Abercrombie & Fitch Management Co.