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

Abercrombie & Fitch Co.
Financial Information
(Unaudited)
(in thousands, except per share data and store data)
										Fiscal 2018															Fiscal 2019
	2015			2016			2017 (1)			Q1			Q2			Q3			Q4			2018			Q1			Q2			Q3			2019
Net sales	$	3,518,680		$	3,326,740		$	3,492,690		$	730,899		$	842,414		$	861,194		$	1,155,602		$	3,590,109		$	733,972		$	841,078		$	863,472		$	2,438,522
Cost of sales, exclusive of depreciation and amortization	1,361,137			1,298,172			1,408,848			288,554			335,519			333,375			472,745			1,430,193			289,882			342,445			344,541			976,868
Gross profit	2,157,543			2,028,568			2,083,842			442,345			506,895			527,819			682,857			2,159,916			444,090			498,633			518,931			1,461,654
Stores and distribution expense	1,604,214			1,562,703			1,540,032			357,347			374,552			371,859			432,458			1,536,216			356,612			376,347			377,697			1,110,656
Marketing, general and administrative expense	470,321			453,202			471,914			124,897			123,883			117,181			118,902			484,863			111,947			115,694			114,075			341,716
Flagship store exit charges	—			15,757			2,393			3,808			—			—			1,998			5,806			1,744			44,994			285			47,023
Restructuring benefit	(1,598		)	—			—			—			—			—			—			—			—			—			—			—
Asset impairment, exclusive of flagship store exit charges	18,209			7,930			14,391			1,056			8,671			656			1,197			11,580			1,662			715			12,610			14,987
Other operating income, net	(6,441		)	(26,212		)	(16,938		)	(2,560		)	(434		)	(1,557		)	(1,364		)	(5,915		)	(617		)	367			(215		)	(465		)
Operating income (loss)	72,838			15,188			72,050			(42,203		)	223			39,680			129,666			127,366			(27,258		)	(39,484		)	14,479			(52,263		)
Interest expense, net	18,248			18,666			16,889			3,018			3,023			2,857			2,101			10,999			616			1,370			2,922			4,908
Income (loss) before income taxes	54,590			(3,478		)	55,161			(45,221		)	(2,800		)	36,823			127,565			116,367			(27,874		)	(40,854		)	11,557			(57,171		)
Income tax expense (benefit)	16,031			(11,196		)	44,636			(3,713		)	24			12,047			29,201			37,559			(9,588		)	(11,330		)	3,987			(16,931		)
Net income (loss)	38,559			7,718			10,525			(41,508		)	(2,824		)	24,776			98,364			78,808			(18,286		)	(29,524		)	7,570			(40,240		)
Less: Net income attributable to noncontrolling interests	2,983			3,762			3,431			953			1,029			857			1,428			4,267			869			1,618			1,047			3,534
Net income (loss) attributable to Abercrombie & Fitch Co.	$	35,576		$	3,956		$	7,094		$	(42,461	)	$	(3,853	)	$	23,919		$	96,936		$	74,541		$	(19,155	)	$	(31,142	)	$	6,523		$	(43,774	)

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										Fiscal 2018															Fiscal 2019
	2015			2016			2017 (1)			Q1			Q2			Q3			Q4			2018			Q1			Q2			Q3			2019
Net income (loss) per share attributable to Abercrombie & Fitch Co.:
Basic	$	0.52		$	0.06		$	0.10		$	(0.62	)	$	(0.06	)	$	0.36		$	1.47		$	1.11		$	(0.29	)	$	(0.48	)	$	0.10		$	(0.67	)
Diluted	$	0.51		$	0.06		$	0.10		$	(0.62	)	$	(0.06	)	$	0.35		$	1.42		$	1.08		$	(0.29	)	$	(0.48	)	$	0.10		$	(0.67	)
Weighted-average shares outstanding:
Basic	68,880			67,878			68,391			68,500			68,008			66,818			66,074			67,350			66,540			65,156			63,099			64,932
Diluted	69,417			68,284			69,403			68,500			68,008			68,308			68,071			69,137			66,540			65,156			63,911			64,932
Hollister comparable sales	0		%	0		%	8		%	6		%	4		%	4		%	6		%	5		%	2		%	0		%	(2		)%	0		%
Abercrombie comparable sales (2)	(6		)%	(11		)%	(2		)%	3		%	2		%	1		%	(2		)%	1		%	1		%	0		%	3		%	1		%
Comparable sales (3)	(3		)%	(5		)%	3		%	5		%	3		%	3		%	3		%	3		%	1		%	0		%	0		%	0		%
Shares outstanding	67,348			67,758			68,195			67,816			66,975			65,843			66,227			66,227			66,637			63,146			62,757			62,757
Number of stores - end of period (4)	932			898			868			869			870			879			861			861			857			863			881			881
Gross square feet - end of period	7,292			7,007			6,710			6,710			6,694			6,719			6,566			6,566			6,503			6,476			6,556			6,556
(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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