A&F(ANF) - 2025 Q4 - Annual Results

Financial Performance - Company reported fourth quarter net sales of $1.58 billion, up 9% year-over-year, with comparable sales growth of 14%[5] - Full year net sales reached $4.95 billion, a 16% increase compared to 2023, driven by 17% comparable sales growth across regions and brands[5] - Operating margin for the full year improved to 15.0%, up 370 basis points from the previous year, with net income per diluted share of $10.69, reflecting a 72% growth[5] - Operating income for the full year was $741 million, compared to $485 million in the previous year, reflecting strong operational performance[6] - Net sales for the thirteen weeks ended February 1, 2025, were $1,584,917 thousand, representing a 9% increase from $1,452,907 thousand for the fourteen weeks ended February 3, 2024[23] - Operating income for the same period was $256,064 thousand, which is 16.2% of net sales, compared to $222,801 thousand or 15.3% of net sales in the prior year[23] - Net income attributable to Abercrombie & Fitch Co. for the thirteen weeks was $187,226 thousand, up from $158,447 thousand, reflecting an increase of 18.2%[23] - The diluted net income per share attributable to Abercrombie & Fitch Co. increased to $3.57 from $2.97, marking a 20.2% rise[23] - For the fifty-two weeks ended February 1, 2025, net sales reached $4,948,587 thousand, a 15.6% increase from $4,280,677 thousand for the fifty-three weeks ended February 3, 2024[25] - Operating income for the fifty-two weeks was $740,820 thousand, which is 15.0% of net sales, compared to $484,671 thousand or 11.3% of net sales in the previous year[25] - Net income attributable to Abercrombie & Fitch Co. for the fifty-two weeks was $566,223 thousand, significantly higher than $328,123 thousand, indicating a 72.5% increase[25] - The company reported a diluted net income per share of $10.69 for the fifty-two weeks, up from $6.22, representing a 71.1% increase[25] - Net sales for 2024 reached $4,948.6 million, a 16% increase from $4,280.7 million in 2023[34] - Operating income for 2024 was $740.8 million, up from $484.7 million in 2023, reflecting a 370 basis point improvement[34] - Net income per share attributable to A&F increased to $10.69 in 2024, compared to $6.22 in 2023, a $4.47 increase[34] - Total company EBITDA for 2024 was $894.6 million, representing 18.1% of net sales, up from $625.8 million or 14.6% in 2023[43] Sales and Segment Performance - The Americas segment saw a 17% increase in net sales for the full year, totaling $4.03 billion, while EMEA and APAC segments grew by 12% and 9%, respectively[7] - The Americas segment reported net sales of $1,319.7 million in 2024, an 11% increase from $1,191.3 million in 2023[36] - Hollister brand net sales grew by 16% to $812.2 million in 2024, compared to $697.7 million in 2023[36] Share Repurchase and Future Expectations - Company announced a new $1.3 billion share repurchase authorization, with expectations to repurchase $400 million in shares during 2025[12] - For fiscal 2025, the company expects net sales growth in the range of 3% to 5% and operating margin between 14% and 15%[13] - The company plans approximately 40 net store openings and 60 total openings with 20 closures in fiscal 2025[13] Cash and Liquidity - Cash and equivalents as of February 1, 2025, were $773 million, down from $901 million the previous year, with liquidity totaling approximately $1.2 billion[8] - The company repurchased 1.6 million shares for $230 million in fiscal 2024, representing a 3% reduction in shares outstanding[9] - Total assets increased to $3,299.9 million as of February 1, 2025, compared to $2,974.2 million on February 3, 2024[46] - Current liabilities rose to $1,126.9 million in 2025, up from $966.8 million in 2024[46] - The company reported a cash and equivalents balance of $772.7 million as of February 1, 2025, down from $900.9 million in 2024[46] - Cash and equivalents at the end of the period decreased to $780,395 from $909,685, a decline of approximately 14.2%[49] - The effect of foreign currency exchange rates on cash resulted in a decrease of $7,086, compared to a decrease of $2,923 in the previous year[49] - The net decrease in cash and equivalents was $129,290, contrasting with an increase of $382,116 in the prior year[49] Expense Management - Selling expenses as a percentage of net sales decreased to 34.2% for the fifty-two weeks ended February 1, 2025, down from 35.8% in the previous year[25] - The company has reassessed its expense classification, now presenting selling and general administrative expenses more reflectively of its current operating structure[17] Store Count and Operations - The total store count increased to 789, up from 765, with 65 new stores opened and 41 permanently closed[51] - The Americas segment saw an increase in Abercrombie stores from 194 to 215, while Hollister stores remained stable at 385[51] - The EMEA segment's Abercrombie stores increased from 29 to 33, while Hollister stores decreased from 108 to 100[51] - The APAC segment's Abercrombie stores increased from 24 to 30, while Hollister stores remained at 26[51]