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 2019															Fiscal 2020
	2016			2017 (1)			2018			Q1			Q2			Q3			Q4			2019			Q1			Q2			2020
Net sales	$	3,326,740		$	3,492,690		$	3,590,109		$	733,972		$	841,078		$	863,472		$	1,184,551		$	3,623,073		$	485,359		$	698,328		$	1,183,687
Cost of sales, exclusive of depreciation and amortization	1,298,172			1,408,848			1,430,193			289,882			342,445			344,541			495,287			1,472,155			221,214			274,720			495,934
Gross profit	2,028,568			2,083,842			2,159,916			444,090			498,633			518,931			689,264			2,150,918			264,145			423,608			687,753
Stores and distribution expense	1,562,703			1,540,032			1,536,216			356,612			376,347			377,697			440,587			1,551,243			322,124			310,370			632,494
Marketing, general and administrative expense	453,202			471,914			484,863			111,947			115,694			114,075			122,899			464,615			108,257			97,252			205,509
Flagship store exit charges (benefits)	15,757			2,393			5,806			1,744			44,994			285			234			47,257			(543		)	(3,884		)	(4,427		)
Asset impairment, exclusive of flagship store exit charges	7,930			14,391			11,580			1,662			715			12,610			4,148			19,135			42,928			8,083			51,011
Other operating (income) loss, net	(26,212		)	(16,938		)	(5,915		)	(617		)	367			(215		)	(935		)	(1,400		)	506			(2,356		)	(1,850		)
Operating income (loss)	15,188			72,050			127,366			(27,258		)	(39,484		)	14,479			122,331			70,068			(209,127		)	14,143			(194,984		)
Interest expense, net	18,666			16,889			10,999			616			1,370			2,922			2,829			7,737			3,371			7,098			10,469
(Loss) income before income taxes	(3,478		)	55,161			116,367			(27,874		)	(40,854		)	11,557			119,502			62,331			(212,498		)	7,045			(205,453		)
Income tax (benefit) expense	(11,196		)	44,636			37,559			(9,588		)	(11,330		)	3,987			34,302			17,371			31,533			1,253			32,786
Net income (loss)	7,718			10,525			78,808			(18,286		)	(29,524		)	7,570			85,200			44,960			(244,031		)	5,792			(238,239		)
Less: Net income attributable to noncontrolling interests	3,762			3,431			4,267			869			1,618			1,047			2,068			5,602			117			328			445
Net income (loss) attributable to Abercrombie & Fitch Co.	$	3,956		$	7,094		$	74,541		$	(19,155	)	$	(31,142	)	$	6,523		$	83,132		$	39,358		$	(244,148	)	$	5,464		$	(238,684	)

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										Fiscal 2019															Fiscal 2020
	2016			2017 (1)			2018			Q1			Q2			Q3			Q4			2019			Q1			Q2		2020
Net income (loss) per share attributable to Abercrombie & Fitch Co.:
Basic	$	0.06		$	0.10		$	1.11		$	(0.29	)	$	(0.48	)	$	0.10		$	1.32		$	0.61		$	(3.90	)	$	0.09	$	(3.82	)
Diluted	$	0.06		$	0.10		$	1.08		$	(0.29	)	$	(0.48	)	$	0.10		$	1.29		$	0.60		$	(3.90	)	$	0.09	$	(3.82	)
Weighted-average shares outstanding:
Basic	67,878			68,391			67,350			66,540			65,156			63,099			62,916			64,428			62,541			62,527		62,543
Diluted	68,284			69,403			69,137			66,540			65,156			63,911			64,198			65,778			62,541			63,286		62,543
Hollister comparable sales (2)	0		%	8		%	5		%	2		%	0		%	(2		)%	(2		)%	(1		)%	Not provided			Not provided		Not provided
Abercrombie comparable sales (2) (3)	(11		)%	(2		)%	1		%	1		%	0		%	3		%	8		%	3		%	Not provided			Not provided		Not provided
Comparable sales (2)	(5		)%	3		%	3		%	1		%	0		%	0		%	1		%	1		%	Not provided			Not provided		Not provided
Shares outstanding	67,758			68,195			66,227			66,637			63,146			62,757			62,786			62,786			62,284			62,400		62,400
Number of stores - end of period	898			868			861			857			863			881			854			854			849			850		850
Gross square feet - end of period	7,007			6,710			6,566			6,503			6,476			6,556			6,303			6,303			6,265			6,277		6,277
(1) Fiscal 2017 was a fifty-three week year.
(2) Comparable sales are calculated on a constant currency basis and exclude revenue other than store and online sales. The Company did not provide comparable sales results for fiscal 2020 due to widespread temporary store closures as a result of COVID-19.
(3) Abercrombie includes the Company's Abercrombie & Fitch and abercrombie kids brands.

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