Abercrombie & Fitch Co. Reports First Quarter Results

Abercrombie & Fitch Co. (NYSE:ANF) today reported GAAP net loss per diluted share of $0.62 for the first quarter ended May 5, 2018, compared to GAAP net loss per diluted share of $0.91 for the first quarter ended April 29, 2017. Excluding certain items this year, the company reported adjusted non-GAAP net loss per diluted share of $0.56 for the quarter. Year-over-year changes in foreign currency exchange rates, net of hedging, was a benefit of approximately $0.03 per diluted share.

Fran Horowitz, Chief Executive Officer, said: “We are pleased with our performance across all brands, with the consistent execution of our playbooks delivering a solid quarter of sales growth, and bottom-line improvement. Results exceeded our expectations driven by a 5% increase in comparable sales, gross margin expansion, and 460 basis points of expense leverage. Hollister continued to drive strong sales growth across channels and geographies and Abercrombie built momentum with another quarter of positive comparable sales led by strength in North America.

“Our efforts are focused on transforming our operating model to deliver an improved customer experience, with strategic investments in omnichannel experience, marketing, and tools and technology to strengthen our execution and customer engagement. We are off to a strong start in 2018 and we are committed to delivering top and bottom line growth, as we work towards our goal of being a leading global omnichannel apparel retailer.”

First Quarter Sales
Net sales were $730.9 million, up 11% from last year, with comparable sales up 5%. Changes in foreign currency exchange rates and the calendar shift resulting from the 53rd week in fiscal 2017 benefited first quarter net sales by approximately 4% and 1%, respectively, which do not impact comparable sales.

By brand, net sales increased 13% to $423.6 million for Hollister and increased 7% to $307.3 million for Abercrombie from last year.

By geography, net sales increased 10% to $449.1 million in the U.S. and increased 12% to $281.8 million in international markets from last year.

Direct-to-consumer net sales increased 14% to $200.7 million from last year and were approximately 27% of total net sales for the quarter.

Additional First Quarter Results
The gross profit rate was 60.5%, up 20 basis points from last year, and approximately flat on a constant currency basis, net of hedging.

Net other operating income was $2.6 million, compared to $1.7 million last year, primarily related to foreign currency gains.

Operating loss was $42.2 million, compared to a loss of $69.9 million last year. Excluding certain legal charges this year, adjusted non-GAAP operating loss was $36.6 million.
more detail at: http://corporate.abercrombie.com/investors/newsevents/press-releases

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