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 2017 (1)															Fiscal 2018
	2014			2015			2016			Q1			Q2			Q3			Q4			2017			Q1			Q2			YTD
Net sales	$	3,744,030		$	3,518,680		$	3,326,740		$	661,099		$	779,321		$	859,112		$	1,193,158		$	3,492,690		$	730,899		$	842,414		$	1,573,313
Cost of sales, exclusive of depreciation and amortization	1,430,460			1,361,137			1,298,172			262,174			318,426			332,485			495,763			1,408,848			288,554			335,519			624,073
Gross profit	2,313,570			2,157,543			2,028,568			398,925			460,895			526,627			697,395			2,083,842			442,345			506,895			949,240
Stores and distribution expense	1,703,051			1,604,214			1,578,460			359,929			369,295			375,944			437,257			1,542,425			361,155			374,552			735,707
Marketing, general and administrative expense	458,820			470,321			453,202			109,893			109,353			124,533			128,135			471,914			124,897			123,883			248,780
Restructuring charge (benefit)	8,431			(1,598		)	—			—			—			—			—			—			—			—			—
Asset impairment	44,988			18,209			7,930			730			6,135			3,480			4,046			14,391			1,056			8,671			9,727
Other operating income, net	(15,239		)	(6,441		)	(26,212		)	(1,686		)	(2,799		)	(70		)	(12,383		)	(16,938		)	(2,560		)	(434		)	(2,994		)
Operating income (loss)	113,519			72,838			15,188			(69,941		)	(21,089		)	22,740			140,340			72,050			(42,203		)	223			(41,980		)
Interest expense, net	14,365			18,248			18,666			4,120			4,089			4,571			4,109			16,889			3,018			3,023			6,041
Income (loss) before taxes	99,154			54,590			(3,478		)	(74,061		)	(25,178		)	18,169			136,231			55,161			(45,221		)	(2,800		)	(48,021		)
Tax expense (benefit)	47,333			16,031			(11,196		)	(13,052		)	(10,563		)	7,553			60,698			44,636			(3,713		)	24			(3,689		)
Net income (loss)	51,821			38,559			7,718			(61,009		)	(14,615		)	10,616			75,533			10,525			(41,508		)	(2,824		)	(44,332		)
Less: Net income attributable to noncontrolling interests	—			2,983			3,762			691			876			541			1,323			3,431			953			1,029			1,982
Net income (loss) attributable to Abercrombie & Fitch Co.	$	51,821		$	35,576		$	3,956		$	(61,700	)	$	(15,491	)	$	10,075		$	74,210		$	7,094		$	(42,461	)	$	(3,853	)	$	(46,314	)

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										Fiscal 2017 (1)															Fiscal 2018
	2014			2015			2016			Q1			Q2			Q3			Q4			2017			Q1			Q2			YTD
Net income (loss) per share attributable to Abercrombie & Fitch Co.:
Basic	$	0.72		$	0.52		$	0.06		$	(0.91	)	$	(0.23	)	$	0.15		$	1.08		$	0.10		$	(0.62	)	$	(0.06	)	$	(0.68	)
Diluted	$	0.71		$	0.51		$	0.06		$	(0.91	)	$	(0.23	)	$	0.15		$	1.05		$	0.10		$	(0.62	)	$	(0.06	)	$	(0.68	)
Weighted-average shares outstanding:
Basic	71,785			68,880			67,878			68,073			68,456			68,512			68,523			68,391			68,500			68,008			68,254
Diluted	72,937			69,417			68,284			68,073			68,456			69,425			70,357			69,403			68,500			68,008			68,254
Hollister comparable sales	(10		)%	0		%	0		%	3		%	5		%	8		%	11		%	8		%	6		%	4		%	5		%
Abercrombie comparable sales (2)	(5		)%	(6		)%	(11		)%	(10		)%	(7		)%	(2		)%	5		%	(2		)%	3		%	2		%	2		%
Comparable sales (3)	(8		)%	(3		)%	(5		)%	(3		)%	(1		)%	4		%	9		%	3		%	5		%	3		%	4		%
Shares outstanding	69,352			67,348			67,758			68,012			68,092			68,116			68,195			68,195			67,816			66,975			66,975
Number of stores - end of period (4)	969			932			898			893			891			889			868			868			869			870			870
Gross square feet - end of period	7,517			7,292			7,007			6,939			6,908			6,880			6,710			6,710			6,710			6,694			6,694
(1) Fiscal 2017 was a fifty-three week year.
(2) Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands.
(3) Comparable sales are calculated on a constant currency basis and exclude revenue other than store and online sales. Due to the 53rd week in fiscal 2017, fourth quarter of fiscal 2017 comparable sales are compared to the fourteen week period ended February 4, 2017, first quarter of fiscal 2018 comparable sales are compared to the thirteen week period ended May 6, 2017, and second quarter of fiscal 2018 comparable sales are compared to the thirteen week period ended August 5, 2017.
(4) Prior period store counts have been restated to count multi-brand outlet stores as a single store.

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