A&F(ANF) - 2026 Q1 - Quarterly Results

Financial Performance - Record first quarter net sales of $1.1 billion, up 8% from last year, exceeding expectations[6] - Hollister brands achieved a growth of 22%, while Abercrombie brands saw a decline of 4% in net sales[3] - Operating margin decreased to 9.3% from 12.7% last year, with earnings per share of$ 1.59 compared to $2.14 last year[7] - The Americas segment reported net sales of$ 874.8 million, up 7%, while EMEA and APAC segments grew by 12% and 5%, respectively[5] - Net sales for the thirteen weeks ended May 3, 2025, were $1,097,311, representing an 8% increase from$ 1,020,730 in the same period last year[20] - Operating income decreased to $101,533, down 21.7% from$ 129,849, with an operating margin of 9.3% compared to 12.7% in the prior year[20] - Net income attributable to Abercrombie & Fitch was $80,413, a decline of 29.3% from$ 113,850, resulting in a diluted net income per share of $1.59, down from$ 2.14[20] - The company’s EBITDA for the thirteen weeks ended May 3, 2025, was $140,109, representing 12.8% of net sales, down from$ 167,538 or 16.4% in the prior year[29] Cash Flow and Liquidity - Cash and equivalents decreased to $511 million from$ 864 million a year ago, with total liquidity of approximately $940 million[10] - Net cash used for financing activities was$ 235 million, primarily reflecting share repurchases[10] - The company reported a net cash used for operating activities of $(4,000), a significant decrease from$ 95,010 in the prior year[35] - The company experienced a net decrease in cash and equivalents of $261,870, compared to a decrease of$ 37,684 in the same period last year[35] Capital Expenditures and Outlook - Capital expenditures for fiscal 2025 are projected to be around $200 million, with approximately 40 net store openings planned[11] - Fiscal 2025 outlook expects net sales growth in the range of 3% to 6%, with an operating margin of 12.5% to 13.5%[11] - Estimated impact from tariffs on imports is approximately$ 50 million, or 100 basis points as a percent of net sales[11] Assets and Inventory - Total current assets decreased to $1,374,170 from$ 1,509,583, with cash and equivalents dropping to $510,563 from$ 864,195[32] - Total assets as of May 3, 2025, were $3,096,176, down from$ 3,299,887 at the beginning of the year[32] - The company’s inventories increased to $542,059 from$ 449,267 year-over-year[32] Interest Expense - Interest expense significantly decreased to $661 from$ 5,780 in the prior year, while interest income, net, was $(6,783) compared to$ (5,023) last year[20] Share Repurchase - The company repurchased 2.6 million shares for approximately $200 million, representing a 5% reduction in shares outstanding[8]