Abercrombie & Fitch Co. Reports Fourth Quarter and Full Year Results

• Company delivers fourth quarter net sales growth of 9%, with comparable sales growth of 14%
• Full year net sales of $4.95 billion, up 16% to 2023, driven by comparable sales of 17% with double-digit comparable sales growth across regions and brands
• Abercrombie brands deliver full year 2024 net sales growth of 16% on comparable sales of 15%, with Hollister brands growing net sales 15% on comparable sales of 19%
• Full year operating margin of 15.0%, up 370 basis points to full year 2023, and net income per diluted share of $10.69, 72% growth from 2023
• Full year share repurchases of $230 million, or 1.6 million shares, representing 3% of shares outstanding at February 3, 2024
• Provides full year 2025 outlook for net sales growth in the range of 3% to 5%, operating margin in the range of 14% to 15%, net income per diluted share in the range of $10.40 to $11.40
• Announces new $1.3 billion share repurchase authorization; expects $400 million in share repurchases for 2025

NEW ALBANY, Ohio, March 05, 2025 (GLOBE NEWSWIRE) -- Abercrombie & Fitch Co. (NYSE: ANF) today announced results for the thirteen week fourth quarter and fifty-two week year ended February 1, 2025. These compare to results for the fourteen week fourth quarter and fifty-three week year ended February 3, 2024. Descriptions of the use of non-GAAP financial measures and reconciliations of GAAP and non-GAAP financial measures accompany this release.

Fran Horowitz, Chief Executive Officer, said, "In fiscal 2024, we once again delivered on our commitments to our global customers and shareholders. We entered the fiscal year with the goal of achieving sustainable, profitable growth on top of a defining fiscal 2023, and our collective effort and focus produced results well beyond our initial expectations. We grew net sales 16% to nearly $5 billion while expanding operating margin to 15%, with operating income and EPS growth of 53% and 72%, respectively.

We enter fiscal 2025 with highly relevant brands, an agile playbook, and a motivated global team driven by a culture of innovation and growth. Our expectation in 2025 is to build on the past two years of outstanding results and again deliver profitable growth while strengthening our brands and operating model.”

Details related to net income per diluted share for the fourth quarter and full year are as follows:

_{⁽¹⁾   Excluded items consist of pre-tax store and other asset impairment charges and the tax effect of pre-tax excluded items.}

_{⁽²⁾   The estimated impact from foreign currency is calculated by applying current period exchange rates to prior year results using a 26% tax rate.}

A summary of results for the fourth quarter ended February 1, 2025:

• Net sales of $1.58 billion up 9% as compared to last year on a reported basis and 10% on a constant currency basis.
• Comparable sales up 14%.
• Operating income of $256 million as compared to operating income of $223 million last year.
• Operating margin as a percent of sales increased to 16.2% from 15.3% last year.
• Net income per diluted share of $3.57 as compared to net income per diluted share last year of $2.97.

A summary of results for the full year ended February 1, 2025:

• Net sales of $4.95 billion up 16% as compared to last year on a reported basis and up 16% on a constant currency basis.
• Comparable sales up 17%.
• Operating income of $741 million on a reported basis, as compared to operating income last year of $485 million and $489 million on a reported and adjusted non-GAAP basis, respectively.
• Operating margin as a percent as sales increased to 15.0% from 11.3% and 11.4% on a reported and adjusted non-GAAP basis, respectively.
• Net income per diluted share of $10.69, as compared to net income per diluted share last year of $6.22 and $6.28 on a reported and adjusted non-GAAP basis, respectively.

Net sales by segment and brand for the fourth quarter and full year are as follows:

_{⁽¹⁾   Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order.}

_{⁽²⁾   Comparable sales are calculated on a constant currency basis. Refer to "REPORTING AND USE OF GAAP AND NON-GAAP MEASURES," for further discussion.}

_{⁽³⁾   The Americas segment includes the results of operations in North America and South America.}

_{⁽⁴⁾   The EMEA segment includes the results of operations in Europe, the Middle East and Africa.}

_{⁽⁵⁾   The APAC segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania.}

Financial Position and Liquidity

As of February 1, 2025 the company had:

• Cash and equivalents of $773 million as compared to $901 million last year.
• Marketable securities of $116 million.
• Inventories of $575 million, an increase of approximately 22% over last year.
• No long-term gross borrowings as all of the company's then-outstanding 8.75% senior secured notes due July 2025 (the "Senior Secured Notes”) were redeemed with cash on hand in the second quarter of 2024.
• Borrowing capacity of $500 million under the senior-secured asset-based revolving credit facility (the "ABL Facility") with net borrowing available of $450 million after minimum excess availability requirement.
• Liquidity, comprised of cash and equivalents and borrowing available under the ABL Facility, of approximately $1.2 billion. This compares to liquidity of $1.2 billion as of February 3, 2024.

Cash Flow and Capital Allocation

Details related to the company's cash flows for the full year ended February 1, 2025 are as follows:

• Net cash provided by operating activities of $710 million.
• Net cash used for investing activities of $298 million.
• Net cash used for financing activities of $535 million.

The company repurchased approximately 0.7 million shares during the fourth quarter and 1.6 million for the full year, returning $230 million to shareholders through share repurchases, a 3% reduction in shares outstanding prior to the vesting impact of stock compensation.

During fiscal 2024, the company repurchased $9.3 million in the open market and completed the redemption of all remaining outstanding Senior Secured Notes, which had an aggregate principal amount of $214 million at the time of the redemption. The Senior Secured Notes were redeemed using cash on hand at par value, plus accrued and unpaid interest.

Depreciation and amortization was $154 million for fiscal 2024 as compared to $141 million in fiscal 2023.

New Share Repurchase Authorization

The company today also announced that the company's Board of Directors authorized a new $1.3 billion stock repurchase program, which replaces the company's prior share repurchase program authorized by the Board in 2021. The new stock repurchase authorization has no expiration date. Purchases by the company under the new share repurchase program may be made from time to time in open market or private transactions in such manner as may be deemed advisable from time to time (including, without limitation, pursuant to one or more 10b5-1 trading plans, accelerated share repurchase programs, and any other method that the company may deem advisable) and may be discontinued at any time.

Fiscal 2025 First Quarter and Full Year Outlook

_{⁽¹⁾   The ou}