 View printer-friendly version |
| << Back |
Achieves best third quarter operating income and operating margin since 2012
Announces Board of Director’s approval of
“The start of the holiday season has been promising. Customers have come out early to shop and have been responding well to assortments. We continue to actively manage through ongoing supply chain constraints, including production and delivery delays and elevated costs, and are confident that we have the product, marketing voice and omnichannel experience to surprise and delight new and existing customers throughout the fourth quarter.”
Details related to net income per diluted share for the third quarter are as follows:
| 2021 | 2020 | |||||||
| GAAP | $ | 0.77 | $ | 0.66 | ||||
| Excluded items, net of tax effect (1) | (0.09 | ) | (0.09 | ) | ||||
| Adjusted non-GAAP | $ | 0.86 | $ | 0.76 | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (0.05 | ) | |||||
| Adjusted non-GAAP constant currency | $ | 0.86 | $ | 0.71 | ||||
(1) Excluded items consist of pre-tax store 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 third quarter ended
- Net sales of
$905 million , up 10% as compared to last year and up 5% as compared to pre-COVID 2019 third quarter net sales. - Digital net sales of
$413 million increased 8% as compared to last year and increased 55% as compared to pre-COVID 2019 third quarter digital net sales. - Gross profit rate of 63.7%, down approximately 30 basis points as compared to last year and up approximately 360 basis points as compared to 2019. The year-over-year decline is driven by approximately 300 basis points of higher average unit cost from freight inflation and efforts to offset supply chain issues, almost fully offset by higher average unit retail on lower promotions.
- Operating expense, excluding other operating income, net, was up 8% compared to last year and remained flat as compared to 2019. The year-over-year increase reflects an increase in marketing expenses and payroll and a decrease in store occupancy. Operating expense as a percentage of sales decreased to 55.8% from 56.8% last year and from 58.4% as compared to 2019.
- Operating income of
$73 million and$79 million on a reported and adjusted non-GAAP basis, respectively, as compared to operating income of$59 million and$65 million last year, on a reported and adjusted non-GAAP basis, respectively. - Net income per diluted share of
$0.77 and$0.86 on a reported and adjusted non-GAAP basis, respectively, as compared to net income per diluted share last year of$0.66 and$0.76 on a reported and adjusted non-GAAP basis, respectively.
Net sales by brand and region for the third quarter are as follows:
| (in thousands) | 2021 | 2020 | 2019 | 1 YR % Change | 2 YR % Change | ||||||||||
| Net sales by brand: | |||||||||||||||
| Hollister (1) | $ | 522,311 | $ | 476,665 | $ | 514,772 | 10% | 1% | |||||||
| 382,849 | 342,988 | 348,700 | 12% | 10% | |||||||||||
| Total company | $ | 905,160 | $ | 819,653 | $ | 863,472 | 10% | 5% | |||||||
| Net sales by region: (3) | 2021 | 2020 | 2019 | 1 YR % Change | 2 YR % Change | ||||||||||
| $ | 654,858 | $ | 557,814 | $ | 583,593 | 17% | 12% | ||||||||
| EMEA | 179,156 | 190,214 | 191,977 | (6)% | (7)% | ||||||||||
| APAC | 38,215 | 43,618 | 55,910 | (12)% | (32)% | ||||||||||
| Other (4) | 32,931 | 28,007 | 31,992 | 18% | 3% | ||||||||||
| International | $ | 250,302 | $ | 261,839 | $ | 279,879 | (4)% | (11)% | |||||||
| Total company | $ | 905,160 | $ | 819,653 | $ | 863,472 | 10% | 5% | |||||||
(1) Hollister includes the Hollister,
(2) Abercrombie includes the
(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
$0.9 billion . This compares to cash and equivalents of$1.1 billion and$0.8 billion as ofJanuary 30, 2021 andOctober 31, 2020 , respectively. - Inventories of
$544 million , steady compared toOctober 31, 2020 . - Long-term gross borrowings under the company’s senior secured notes of
$308 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
$271 million . - Liquidity, comprised of cash and equivalents and borrowing available under the ABL Facility, of approximately
$1.1 billion . This compares to liquidity of$1.3 billion and$1.2 billion as ofJanuary 30, 2021 andOctober 31, 2020 , respectively.
| Cash Flow and Capital Allocation |
Details related to the company’s cash flows for the year-to-date period ended
- Net cash provided by operating activities of
$131 million . - Net cash used for investing activities of
$62 million . - Net cash used for financing activities of
$304 million .
The company repurchased approximately 2.7 million shares during the third quarter and has returned
During the second quarter of fiscal 2021, the company spent
Depreciation and amortization was
| Conference Call |
Today at
| Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 |
A&F cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this Press Release or made by management or spokespeople of A&F involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the company’s control. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “should,” “are confident,” and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements. The following factors, in addition to those disclosed in “ITEM 1A. RISK FACTORS” of A&F’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021, in some cases have affected, and in the future could affect, A&F’s financial performance and could cause actual results for fiscal 2021 and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this Press Release or otherwise made by management: COVID‐19 has and may continue to materially adversely impact and cause disruption to our business; changes in global economic and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits could have a material adverse impact on our business; failure to engage our customers, anticipate customer demand and changing fashion trends, and manage our inventory commensurately could have a material adverse impact on our business; our failure to operate effectively in a highly competitive and constantly evolving industry could have a material adverse impact on our business; fluctuations in foreign currency exchange rates could have a material adverse impact on our business; our ability to attract customers to our stores depends, in part, on the success of the shopping malls or area attractions that our stores are located in or around; the impact of war, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience could have a material adverse impact on our business; the impact of extreme weather, infectious disease outbreaks, including COVID-19, and other unexpected events could result in an interruption to our business, as well as to the operations of our third-party partners, and have a material adverse impact on our business; failure to successfully develop an omnichannel shopping experience, a significant component of our growth strategy, or failure to successfully invest in customer, digital and omnichannel initiatives could have a material adverse impact on our business; our failure to optimize our global store network could have a material adverse impact on our business; our failure to execute our international growth strategy successfully and inability to conduct business in international markets as a result of legal, tax, regulatory, political and economic risks could have a material adverse impact on our business; our failure to appropriately address emerging environmental, social and governance matters could have a material adverse impact on our reputation and, as a result, our business; failure to protect our reputation could have a material adverse impact on our business; if our information technology systems are disrupted or cease to operate effectively, it could have a material adverse impact on our business; we may be exposed to risks and costs associated with cyber-attacks, data protection, credit card fraud and identity theft that could have a material adverse impact on our business; our reliance on our distribution centers makes us susceptible to disruptions or adverse conditions affecting our supply chain; changes in the cost, availability and quality of raw materials, labor, transportation, and trade relations could have a material adverse impact on our business; we depend upon independent third parties for the manufacture and delivery of all our merchandise, and a disruption of the manufacture or delivery of our merchandise could have a material adverse impact on our business; we rely on the experience and skills of our executive officers and associates, and the failure to attract or retain this talent, effectively manage succession, and establish a diverse workforce could have a material adverse impact on our business; in the past, we have identified a material weakness in our internal control over financial reporting and may identify additional material weaknesses in the future. If we fail to establish and maintain effective internal control over financial reporting, our ability to accurately and timely report our financial results could be adversely affected; fluctuations in our tax obligations and effective tax rate may result in volatility in our results of operations could have a material adverse impact on our business; our litigation exposure, or any securities litigation and shareholder activism, could have a material adverse impact on our business; failure to adequately protect our trademarks could have a negative impact on our brand image and limit our ability to penetrate new markets which could have a material adverse impact on our business; changes in the regulatory or compliance landscape could have a material adverse impact on our business; and the agreements related to our senior secured asset-based revolving credit facility and our senior secured notes include restrictive covenants that limit our flexibility in operating our business and our inability to obtain credit on reasonable terms in the future could have an adverse impact on our business.
| 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 | ||||||||||||
| % of |
% of |
||||||||||||
| Net sales | $ | 905,160 | 100.0 | % | $ | 819,653 | 100.0 | % | |||||
| Cost of sales, exclusive of depreciation and amortization | 328,916 | 36.3 | % | 295,220 | 36.0 | % | |||||||
| Gross profit | 576,244 | 63.7 | % | 524,433 | 64.0 | % | |||||||
| Stores and distribution expense | 351,804 | 38.9 | % | 346,263 | 42.2 | % | |||||||
| Marketing, general and administrative expense | 146,269 | 16.2 | % | 121,000 | 14.8 | % | |||||||
| Flagship store exit benefits (costs) | 11 | 0.0 | % | (8,063 | ) | (1.0 | )% | ||||||
| Asset impairment, exclusive of flagship store exit charges | 6,749 | 0.7 | % | 6,329 | 0.8 | % | |||||||
| Other operating (income) expense, net | (1,320 | ) | (0.1 | )% | 288 | 0.0 | % | ||||||
| Operating income | 72,731 | 8.0 | % | 58,616 | 7.2 | % | |||||||
| Interest expense, net | 7,270 | 0.8 | % | 8,808 | 1.1 | % | |||||||
| Income before income taxes | 65,461 | 7.2 | % | 49,808 | 6.1 | % | |||||||
| Income tax expense | 16,383 | 1.8 | % | 5,779 | 0.7 | % | |||||||
| Net income | 49,078 | 5.4 | % | 44,029 | 5.4 | % | |||||||
| Less: Net income attributable to noncontrolling interests | 1,845 | 0.2 | % | 1,758 | 0.2 | % | |||||||
| Net income attributable to |
$ | 47,233 | 5.2 | % | $ | 42,271 | 5.2 | % | |||||
| Net income per share attributable to |
|||||||||||||
| Basic | $ | 0.80 | $ | 0.68 | |||||||||
| Diluted | $ | 0.77 | $ | 0.66 | |||||||||
| Weighted-average shares outstanding: | |||||||||||||
| Basic | 58,796 | 62,558 | |||||||||||
| Diluted | 61,465 | 63,877 | |||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| (Unaudited) | |||||||||||||
| Thirty-nine Weeks Ended | Thirty-nine Weeks Ended | ||||||||||||
| % of |
% of |
||||||||||||
| Net sales | $ | 2,551,415 | 100.0 | % | $ | 2,003,340 | 100.0 | % | |||||
| Cost of sales, exclusive of depreciation and amortization | 916,552 | 35.9 | % | 791,154 | 39.5 | % | |||||||
| Gross profit | 1,634,863 | 64.1 | % | 1,212,186 | 60.5 | % | |||||||
| Stores and distribution expense | 994,347 | 39.0 | % | 978,757 | 48.9 | % | |||||||
| Marketing, general and administrative expense | 391,129 | 15.3 | % | 326,509 | 16.3 | % | |||||||
| Flagship store exit benefits | (1,177 | ) | 0.0 | % | (12,490 | ) | (0.6 | )% | |||||
| Asset impairment, exclusive of flagship store exit charges | 10,199 | 0.4 | % | 57,340 | 2.9 | % | |||||||
| Other operating income, net | (4,586 | ) | (0.2 | )% | (1,562 | ) | (0.1 | )% | |||||
| Operating income (loss) | 244,951 | 9.6 | % | (136,368 | ) | (6.8 | )% | ||||||
| Interest expense, net | 27,151 | 1.1 | % | 19,277 | 1.0 | % | |||||||
| Income (loss) before income taxes | 217,800 | 8.5 | % | (155,645 | ) | (7.8 | )% | ||||||
| Income tax expense | 15,560 | 0.6 | % | 38,565 | 1.9 | % | |||||||
| Net income (loss) | 202,240 | 7.9 | % | (194,210 | ) | (9.7 | )% | ||||||
| Less: Net income attributable to noncontrolling interests | 4,739 | 0.2 | % | 2,203 | 0.1 | % | |||||||
| Net income (loss) attributable to |
$ | 197,501 | 7.7 | % | $ | (196,413 | ) | (9.8 | )% | ||||
| Net income (loss) per share attributable to |
|||||||||||||
| Basic | $ | 3.24 | $ | (3.14 | ) | ||||||||
| Diluted | $ | 3.10 | $ | (3.14 | ) | ||||||||
| Weighted-average shares outstanding: | |||||||||||||
| Basic | 60,879 | 62,541 | |||||||||||
| Diluted | 63,770 | 62,541 | |||||||||||
Reporting and Use of GAAP and Non-GAAP Measures
The company believes that each of the non-GAAP financial measures presented are useful to investors as they provide a measure of the company’s operating performance excluding the effect of certain items which the company believes do not reflect its future operating outlook, such as asset impairment charges primarily attributable to the COVID-19 pandemic or related to the company’s flagship stores, therefore supplementing investors’ understanding of comparability of operations across periods. Management used these non-GAAP financial measures during the periods presented to assess the company’s performance and to develop expectations for future operating performance. Non-GAAP financial measures should be used supplemental to, and not as an alternative to, the company’s GAAP financial results, and may not be calculated in the same manner as similar measures presented by other companies.
In addition, at times the company provides comparable sales, defined as the percentage year-over-year change in the aggregate of: (1) sales for stores that have been open as the same brand at least one year and whose square footage has not been expanded or reduced by more than 20% within the past year, with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of foreign currency rate fluctuation, and (2) digital net sales with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of foreign currency rate fluctuation. In light of store closures related to COVID-19, the Company has not disclosed comparable sales for Fiscal 2021.
The company also provides certain financial information on a constant currency basis to enhance investors’ understanding of underlying business trends and operating performance, by removing the impact of foreign currency exchange rate fluctuations. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share effect from foreign currency is calculated using a 26% tax rate.
| 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, exclusive of flagship store exit charges (2) | $ | 6,749 | $ | 6,749 | $ | — | |||||
| Operating income | 72,731 | (6,749 | ) | 79,480 | |||||||
| Income before income taxes | 65,461 | (6,749 | ) | 72,210 | |||||||
| Income tax expense (3) | 16,383 | (1,375 | ) | 17,758 | |||||||
| Net income attributable to |
$ | 47,233 | $ | (5,374 | ) | $ | 52,607 | ||||
| Net income per diluted share attributable to |
$ | 0.77 | $ | (0.09 | ) | $ | 0.86 | ||||
| Diluted weighted-average shares outstanding: | 61,465 | 61,465 | |||||||||
(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 | |||||||||||
| Thirteen Weeks Ended |
|||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| GAAP (1) | Excluded items | Adjusted non-GAAP |
|||||||||
| Asset impairment, exclusive of flagship store exit charges (2) | $ | 6,329 | $ | 6,329 | $ | — | |||||
| Operating income | 58,616 | (6,329 | ) | 64,945 | |||||||
| Income before income taxes | 49,808 | (6,329 | ) | 56,137 | |||||||
| Income tax expense (3) | 5,779 | (369 | ) | 6,148 | |||||||
| Net income attributable to |
$ | 42,271 | $ | (5,960 | ) | $ | 48,231 | ||||
| Net income per diluted share attributable to |
$ | 0.66 | $ | (0.09 | ) | $ | 0.76 | ||||
| Diluted weighted-average shares outstanding: | 63,877 | 63,877 | |||||||||
(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 | |||||||||||
| Thirty-nine Weeks Ended |
|||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| GAAP (1) | Excluded items | Adjusted non-GAAP |
|||||||||
| Asset impairment, exclusive of flagship store exit charges (2) | $ | 10,199 | $ | 10,199 | $ | — | |||||
| Operating income | 244,951 | (10,199 | ) | 255,150 | |||||||
| Income before income taxes | 217,800 | (10,199 | ) | 227,999 | |||||||
| Income tax expense (3) | 15,560 | (2,048 | ) | 17,608 | |||||||
| Net income attributable to |
$ | 197,501 | $ | (8,151 | ) | $ | 205,652 | ||||
| Net income per diluted share attributable to |
$ | 3.10 | $ | (0.13 | ) | $ | 3.22 | ||||
| Diluted weighted-average shares outstanding: | 63,770 | 63,770 | |||||||||
(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 | |||||||||||
| Thirty-nine Weeks Ended |
|||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| GAAP (1) | Excluded items | Adjusted non-GAAP |
|||||||||
| Asset impairment, exclusive of flagship store exit charges (2) | $ | 57,340 | $ | 57,340 | $ | — | |||||
| Operating loss | (136,368 | ) | (57,340 | ) | (79,028 | ) | |||||
| Loss before income taxes | (155,645 | ) | (57,340 | ) | (98,305 | ) | |||||
| Income tax expense (3) | 38,565 | (3,635 | ) | 42,200 | |||||||
| Net loss attributable to |
$ | (196,413 | ) | $ | (53,705 | ) | $ | (142,708 | ) | ||
| Net loss per diluted share attributable to |
$ | (3.14 | ) | $ | (0.86 | ) | $ | (2.28 | ) | ||
| Diluted weighted-average shares outstanding: | 62,541 | 62,541 | |||||||||
(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) | |||||||||
| 2021 | 2020 | % Change | |||||||
| Net sales | |||||||||
| GAAP (1) | $ | 905,160 | $ | 819,653 | 10% | ||||
| Impact from changes in foreign currency exchange rates (2) | — | 3,540 | —% | ||||||
| Net sales on a constant currency basis | $ | 905,160 | $ | 823,193 | 10% | ||||
| Gross profit | 2021 | 2020 | BPS Change (3) | ||||||
| GAAP (1) | $ | 576,244 | $ | 524,433 | (30) | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (1,702 | ) | 50 | |||||
| Gross profit on a constant currency basis | $ | 576,244 | $ | 522,731 | 20 | ||||
| Operating income | 2021 | 2020 | BPS Change (3) | ||||||
| GAAP (1) | $ | 72,731 | $ | 58,616 | 80 | ||||
| Excluded items (4) | (6,749 | ) | (6,329 | ) | 10 | ||||
| Adjusted non-GAAP | $ | 79,480 | $ | 64,945 | 90 | ||||
| Impact from changes in foreign currency exchange rates (2) | — | (4,067 | ) | 50 | |||||
| Adjusted non-GAAP constant currency basis | $ | 79,480 | $ | 60,878 | 140 | ||||
| Net income per diluted share attributable to |
2021 | 2020 | $ Change | ||||||
| GAAP (1) | $ | 0.77 | $ | 0.66 | |||||
| Excluded items, net of tax (4) | (0.09 | ) | (0.09 | ) | 0.00 | ||||
| Adjusted non-GAAP | $ | 0.86 | $ | 0.76 | |||||
| Impact from changes in foreign currency exchange rates (2) | — | (0.05 | ) | 0.05 | |||||
| Adjusted non-GAAP constant currency basis | $ | 0.86 | $ | 0.71 | |||||
(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 store asset impairment charges of
| Condensed Consolidated Balance Sheets | |||||||||||
| (in thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and equivalents | $ | 865,622 | $ | 1,104,862 | $ | 812,881 | |||||
| Receivables | 83,447 | 83,857 | 89,074 | ||||||||
| Inventories | 543,713 | 404,053 | 545,548 | ||||||||
| Other current assets | 111,423 | 68,857 | 73,776 | ||||||||
| Total current assets | 1,604,205 | 1,661,629 | 1,521,279 | ||||||||
| Property and equipment, net | 516,176 | 550,587 | 593,932 | ||||||||
| Operating lease right-of-use assets | 762,641 | 893,989 | 955,781 | ||||||||
| Other assets | 229,512 | 208,697 | 205,970 | ||||||||
| Total assets | $ | 3,112,534 | $ | 3,314,902 | $ | 3,276,962 | |||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 424,560 | $ | 289,396 | $ | 334,775 | |||||
| Accrued expenses | 355,149 | 396,365 | 356,370 | ||||||||
| Short-term portion of operating lease liabilities | 209,812 | 248,846 | 255,775 | ||||||||
| Income taxes payable | 39,900 | 24,792 | 6,663 | ||||||||
| Total current liabilities | 1,029,421 | 959,399 | 953,583 | ||||||||
| Long-term liabilities: | |||||||||||
| Long-term portion of operating lease liabilities | $ | 764,346 | $ | 957,588 | $ | 1,010,051 | |||||
| Long-term borrowings, net | 303,247 | 343,910 | 343,559 | ||||||||
| Other liabilities | 97,191 | 104,693 | 110,965 | ||||||||
| Total long-term liabilities | 1,164,784 | 1,406,191 | 1,464,575 | ||||||||
| Total |
908,934 | 936,628 | 849,379 | ||||||||
| Noncontrolling interests | 9,395 | 12,684 | 9,425 | ||||||||
| Total stockholders’ equity | 918,329 | 949,312 | 858,804 | ||||||||
| Total liabilities and stockholders’ equity | $ | 3,112,534 | $ | 3,314,902 | $ | 3,276,962 | |||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (in thousands, except per share data) | |||||||
| (Unaudited) | |||||||
| Thirty-nine Weeks Ended | |||||||
| Operating activities | |||||||
| Net cash provided by operating activities | $ | 131,287 | $ | 108,894 | |||
| Investing activities | |||||||
| Purchases of property and equipment | $ | (62,223 | ) | $ | (91,748 | ) | |
| Withdrawal of funds from Rabbi Trust assets (1) | — | 50,000 | |||||
| Net cash used for investing activities | $ | (62,223 | ) | $ | (41,748 | ) | |
| Financing activities | |||||||
| Proceeds from issuance of senior secured notes | — | 350,000 | |||||
| Proceeds from borrowings under the asset-based senior secured credit facility | — | 210,000 | |||||
| Repayment of term loan facility borrowings | — | (233,250 | ) | ||||
| Repayment of borrowings under the asset-based senior secured credit facility | — | (210,000 | ) | ||||
| Purchase of senior secured notes | (46,969 | ) | — | ||||
| Payment of debt issuance or modification costs and fees | (2,016 | ) | (7,151 | ) | |||
| Purchases of common stock | (235,249 | ) | (15,172 | ) | |||
| Dividends paid | — | (12,556 | ) | ||||
| Other financing activities | (20,124 | ) | (11,742 | ) | |||
| Net cash (used for) provided by financing activities | $ | (304,358 | ) | $ | 70,129 | ||
| Effect of foreign currency exchange rates on cash | $ | (8,560 | ) | $ | 2,269 | ||
| Net (decrease) increase in cash and equivalents, and restricted cash and equivalents | $ | (243,854 | ) | $ | 139,544 | ||
| Cash and equivalents, and restricted cash and equivalents, beginning of period | $ | 1,124,157 | $ | 692,264 | |||
| Cash and equivalents, and restricted cash and equivalents, end of period | $ | 880,303 | $ | 831,808 | |||
(1) As disclosed in the Form 10-K for the year ended
Store Count
| Thirteen Weeks Ended |
|||||||||||||
| Hollister (1) | |||||||||||||
| International | International | International | Total | ||||||||||
| 355 | 150 | 179 | 49 | 534 | 199 | 733 | |||||||
| New | 1 | 1 | 2 | 1 | 3 | 2 | 5 | ||||||
| Permanently closed | (1) | — | — | (2) | (1) | (2) | (3) | ||||||
| 355 | 151 | 181 | 48 | 536 | 199 | 735 | |||||||
| Thirty-Nine Weeks Ended |
|||||||||||||
| Hollister (1) | |||||||||||||
| International | International | International | Total | ||||||||||
| 347 | 150 | 190 | 48 | 537 | 198 | 735 | |||||||
| New | 9 | 5 | 6 | 3 | 15 | 8 | 23 | ||||||
| Permanently closed | (1) | (4) | (15) | (3) | (16) | (7) | (23) | ||||||
| 355 | 151 | 181 | 48 | 536 | 199 | 735 | |||||||
(1) Hollister includes the company’s Hollister and Gilly Hicks brands. Locations with
(2) Abercrombie includes the company's
(3) This store count excludes one international third-party operated multi-brand outlet store as of each of
Source: Abercrombie & Fitch Management Co.