Abercrombie & Fitch (ANF) 8-K Abercrombie & Fitch Co. Reports Second Quarter Results

Abercrombie & Fitch Co.
Financial Information
(Unaudited)
(in thousands, except per share data and store data)
										Fiscal 2016															Fiscal 2017
	2013			2014			2015			Q1			Q2			Q3			Q4			2016			Q1			Q2			YTD
Net sales	$	4,116,897		$	3,744,030		$	3,518,680		$	685,483		$	783,160		$	821,734		$	1,036,363		$	3,326,740		$	661,099		$	779,321		$	1,440,420
Cost of sales, exclusive of depreciation and amortization	1,541,462			1,430,460			1,361,137			259,762			306,053			310,995			421,362			1,298,172			262,174			318,426			580,600
Gross profit	2,575,435			2,313,570			2,157,543			425,721			477,107			510,739			615,001			2,028,568			398,925			460,895			859,820
Stores and distribution expense	1,907,687			1,703,051			1,604,214			369,118			382,917			386,609			439,816			1,578,460			359,929			369,295			729,224
Marketing, general and administrative expense	481,784			458,820			470,321			114,447			111,719			105,307			121,729			453,202			109,893			109,353			219,246
Restructuring charge (benefit)	81,500			8,431			(1,598		)	—			—			—			—			—			—			—			—
Asset impairment	46,715			44,988			18,209			—			6,356			—			1,574			7,930			730			6,135			6,865
Other operating (income) expense, net	(23,074		)	(15,239		)	(6,441		)	(2,933		)	(13,080		)	(822		)	(9,377		)	(26,212		)	(1,686		)	(2,799		)	(4,485		)
Operating income (loss)	80,823			113,519			72,838			(54,911		)	(10,805		)	19,645			61,259			15,188			(69,941		)	(21,089		)	(91,030		)
Interest expense, net	7,546			14,365			18,248			4,506			4,741			4,609			4,810			18,666			4,120			4,089			8,209
Income (loss) before taxes	73,277			99,154			54,590			(59,417		)	(15,546		)	15,036			56,449			(3,478		)	(74,061		)	(25,178		)	(99,239		)
Tax expense (benefit)	18,649			47,333			16,031			(20,787		)	(3,515		)	6,762			6,344			(11,196		)	(13,052		)	(10,563		)	(23,615		)
Net income (loss)	54,628			51,821			38,559			(38,630		)	(12,031		)	8,274			50,105			7,718			(61,009		)	(14,615		)	(75,624		)
Less: Net income attributable to noncontrolling interests	—			—			2,983			957			1,098			393			1,314			3,762			691			876			1,567
Net income (loss) attributable to Abercrombie & Fitch Co.	$	54,628		$	51,821		$	35,576		$	(39,587	)	$	(13,129	)	$	7,881		$	48,791		$	3,956		$	(61,700	)	$	(15,491	)	$	(77,191	)

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										Fiscal 2016															Fiscal 2017
	2013			2014			2015			Q1			Q2			Q3			Q4			2016			Q1			Q2			YTD
Net income (loss) per share attributable to Abercrombie & Fitch Co.:
Basic	$	0.71		$	0.72		$	0.52		$	(0.59	)	$	(0.19	)	$	0.12		$	0.72		$	0.06		$	(0.91	)	$	(0.23	)	$	(1.13	)
Diluted	$	0.69		$	0.71		$	0.51		$	(0.59	)	$	(0.19	)	$	0.12		$	0.71		$	0.06		$	(0.91	)	$	(0.23	)	$	(1.13	)
Weighted-average shares outstanding:
Basic	77,157			71,785			68,880			67,625			67,944			67,975			67,970			67,878			68,073			68,456			68,264
Diluted	78,666			72,937			69,417			67,625			67,944			68,277			68,299			68,284			68,073			68,456			68,264
Hollister comparable sales	(14		)%	(10		)%	—		%	—		%	(2		)%	—		%	1		%	0		%	3		%	5		%	4		%
Abercrombie comparable sales (1)				(5		)%	(6		)%	(8		)%	(7		)%	(14		)%	(13		)%	(11		)%	(10		)%	(7		)%	(8		)%
Comparable sales (2)	(11		)%	(8		)%	(3		)%	(4		)%	(4		)%	(6		)%	(5		)%	(5		)%	(3		)%	(1		)%	(2		)%
Shares outstanding	76,402			69,352			67,348			67,605			67,666			67,683			67,758			67,758			68,012			68,092			68,092
Number of stores - end of period (3)	1,006			969			932			925			926			930			898			898			893			891			891
Gross square feet - end of period	7,736			7,517			7,292			7,209			7,209			7,219			7,007			7,007			6,939			6,908			6,908
(1) Abercrombie includes the Company's Abercrombie & Fitch and abercrombie kids brands.
(2) Comparable sales are calculated on a constant currency basis.
(3) Prior period store counts have been restated to count multi-brand outlet stores as a single store.

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