A&F(ANF) - 2026 Q4 - Annual Results

Financial Performance - Record fourth quarter net sales of $1.67 billion, a 5% increase year-over-year, with comparable sales growth of 1%[6] - Full year net sales reached $5.27 billion, up 6% from the previous year, with comparable sales growth of 3%[6] - Operating margin for the full year was 13.3%, down from 15.0% the previous year, with net income per diluted share of $10.46[7] - Net sales for the thirteen weeks ended January 31, 2026, were $1,669,802, representing a 5.3% increase from $1,584,917 for the same period in 2025[23] - Operating income for the fifty-two weeks ended January 31, 2026, was $699,143, which is 13.3% of net sales, down from $740,820 or 15.0% of net sales in the previous year[25] - Net income attributable to Abercrombie & Fitch Co. for the fifty-two weeks ended January 31, 2026, was $506,921, a decrease of 10.5% from $566,223 in the prior year[25] - The company reported a diluted net income per share of $10.46 for the fifty-two weeks ended January 31, 2026, compared to $10.69 for the same period in 2025[25] - Net sales for 2025 reached $5,266,292, a 6% increase from $4,948,587 in 2024[37] - Operating income for 2025 was $699,143, down 170 basis points from $740,820 in 2024[37] - Net income per diluted share for 2025 was $10.46, a decrease of $0.23 from $10.69 in 2024[37] - Adjusted non-GAAP net income per diluted share for 2025 was $9.86, down $0.83 from $10.69 in 2024[37] Shareholder Actions - The company repurchased 5.4 million shares for $450 million, representing 11% of shares outstanding at the beginning of the year[4] Future Outlook - For fiscal 2026, the company expects net sales growth of 3% to 5% and operating margin between 12.0% and 12.5%[6] - The company plans to open approximately 55 new stores and remodel 70 locations in fiscal 2026[12] - Future outlook includes a focus on enhancing digital and omnichannel initiatives to drive customer engagement and sales growth[19] Segment Performance - The Americas segment reported fourth quarter net sales of $1.38 billion, a 5% increase, while EMEA and APAC segments grew by 8% and 9% respectively[8] - Hollister brand achieved record full year net sales growth of 15%, while Abercrombie brand saw a decline of 1%[6] Cash and Assets - Cash and equivalents as of January 31, 2026, totaled $760 million, slightly down from $773 million the previous year[9] - Total assets increased to $3,541,874 in January 2026 from $3,299,887 in February 2025[43] - Cash and equivalents at the end of the period were $766,916, a decrease from $780,395 at the beginning of the period[46] - Net cash provided by operating activities for the fifty-two weeks ended January 31, 2026, was $619,142, compared to $710,376 in the prior year[46] Cost and Expenses - Cost of sales for the thirteen weeks ended January 31, 2026, was $676,491, accounting for 40.5% of net sales, compared to 38.5% in the previous year[23] - Selling expenses for the thirteen weeks ended January 31, 2026, were $574,792, which is 34.4% of net sales, up from 33.2% in the prior year[23] Store Operations - The company operates approximately 830 stores globally and has a strong digital presence through its e-commerce sites[20] - The company opened 62 new stores while permanently closing 22, resulting in a total of 889 stores as of January 31, 2026[48] Non-GAAP Measures - Abercrombie & Fitch Co. utilizes non-GAAP financial measures to provide a clearer picture of its operating performance, with adjusted net income attributable to A&F at $478,039 for the fifty-two weeks ended January 31, 2026[32] - The company emphasizes the importance of constant currency measures to better understand underlying business trends, excluding the impact of foreign currency fluctuations[29] EBITDA - EBITDA for the fifty-two weeks ended January 31, 2026, was $854,164, representing 16.2% of net sales[41] - Adjusted EBITDA for the same period was $815,590, accounting for 15.5% of net sales[41] Tariff Impact - Estimated impact of new tariffs is projected to affect net sales by approximately 290 basis points in Q1 and 70 basis points for the full year[15]