Abercrombie & Fitch (ANF) 8-K Abercrombie & Fitch Co. Reports Fourth Quarter and Full Year 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			Q3			Q4			2018
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		$	861,194		$	1,155,602		$	3,590,109
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			333,375			472,745			1,430,193
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			527,819			682,857			2,159,916
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			371,859			434,456			1,542,022
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			117,181			118,902			484,863
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			656			1,197			11,580
Other operating income, net	(15,239		)	(6,441		)	(26,212		)	(1,686		)	(2,799		)	(70		)	(12,383		)	(16,938		)	(2,560		)	(434		)	(1,557		)	(1,364		)	(5,915		)
Operating income (loss)	113,519			72,838			15,188			(69,941		)	(21,089		)	22,740			140,340			72,050			(42,203		)	223			39,680			129,666			127,366
Interest expense, net	14,365			18,248			18,666			4,120			4,089			4,571			4,109			16,889			3,018			3,023			2,857			2,101			10,999
Income (loss) before income taxes	99,154			54,590			(3,478		)	(74,061		)	(25,178		)	18,169			136,231			55,161			(45,221		)	(2,800		)	36,823			127,565			116,367
Income tax expense (benefit)	47,333			16,031			(11,196		)	(13,052		)	(10,563		)	7,553			60,698			44,636			(3,713		)	24			12,047			29,201			37,559
Net income (loss)	51,821			38,559			7,718			(61,009		)	(14,615		)	10,616			75,533			10,525			(41,508		)	(2,824		)	24,776			98,364			78,808
Less: Net income attributable to noncontrolling interests	—			2,983			3,762			691			876			541			1,323			3,431			953			1,029			857			1,428			4,267
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	)	$	23,919		$	96,936		$	74,541

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										Fiscal 2017 (1)															Fiscal 2018
	2014			2015			2016			Q1			Q2			Q3			Q4			2017			Q1			Q2			Q3			Q4			2018
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	)	$	0.36		$	1.47		$	1.11
Diluted	$	0.71		$	0.51		$	0.06		$	(0.91	)	$	(0.23	)	$	0.15		$	1.05		$	0.10		$	(0.62	)	$	(0.06	)	$	0.35		$	1.42		$	1.08
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			66,818			66,074			67,350
Diluted	72,937			69,417			68,284			68,073			68,456			69,425			70,357			69,403			68,500			68,008			68,308			68,071			69,137
Hollister comparable sales	(10		)%	0		%	0		%	3		%	5		%	8		%	11		%	8		%	6		%	4		%	4		%	6		%	5		%
Abercrombie comparable sales (2)	(5		)%	(6		)%	(11		)%	(10		)%	(7		)%	(2		)%	5		%	(2		)%	3		%	2		%	1		%	(2		)%	1		%
Total company comparable sales (3)	(8		)%	(3		)%	(5		)%	(3		)%	(1		)%	4		%	9		%	3		%	5		%	3		%	3		%	3		%	3		%
Shares outstanding	69,352			67,348			67,758			68,012			68,092			68,116			68,195			68,195			67,816			66,975			65,843			66,227			66,227
Number of stores - end of period (4)	969			932			898			893			891			889			868			868			869			870			879			861			861
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			6,719			6,566			6,566
(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, second quarter of fiscal 2018 comparable sales are compared to the thirteen week period ended August 5, 2017, third quarter of fiscal 2018 comparable sales are compared to the thirteen week period ended November 4, 2017, and fourth quarter of fiscal 2018 comparable sales are compared to the 13 week period ended February 3, 2018.
(4) Prior period store counts have been restated to count multi-brand outlet stores as a single store.

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