A&F(US:ANF)2024-05-30 21:20Financial Performance - Net sales reached $1.0 billion, a 22% increase from the previous year, with comparable sales growth of 21%[1] - Abercrombie brands experienced a significant growth of 31%, while Hollister brands grew by 12%[2] - Operating margin improved to 12.7%, an increase of 860 basis points compared to last year[1] - The company raised its full-year net sales growth outlook to approximately 10%, up from a previous estimate of 4% to 6%[10] - Gross profit rate increased to 66.4%, up approximately 540 basis points year-over-year[4] - Operating income for the first quarter was $130 million, compared to $34 million in the same quarter last year[4] - Net sales for the thirteen weeks ended May 4, 2024, reached $1,020,730, a 22% increase compared to $835,994 for the same period in 2023[23] - Gross profit for the same period was $677,457, representing 66.4% of net sales, up from 61.0% or $509,794 in the prior year[23] - Operating income increased significantly to $129,849, or 12.7% of net sales, compared to $34,008, or 4.1% in the previous year[23] - Net income attributable to Abercrombie & Fitch was $113,850, an increase of 587% from $16,571 in the same quarter last year[23] - Adjusted EBITDA for the quarter was $167,538, representing 16.4% of net sales, compared to $74,472 or 8.9% in the prior year[35] Cash and Liquidity - Cash and equivalents stood at $864 million, with total liquidity of approximately $1.2 billion[6] - Cash and equivalents as of May 4, 2024, were $864,195, down from $900,884 at the end of the previous quarter[37] - Cash and equivalents at the end of the period were $872,001 thousand, compared to $456,664 thousand at the same time last year, indicating a substantial increase of approximately 91%[40] - Net cash provided by operating activities was $95,010 thousand, a significant increase from $(560) thousand in the same period last year[40] - Net cash used for investing activities was $38,886 thousand, a decrease from $46,391 thousand year-over-year, showing improved cash management[40] Assets and Liabilities - Total assets as of May 4, 2024, were $2,970,085, slightly down from $2,974,233 at the end of the previous quarter[37] - Total current liabilities decreased to $919,699 thousand from $966,820 thousand year-over-year, reflecting a reduction of approximately 4.8%[38] - Total stockholders' equity increased to $1,091,170 thousand, up from $1,049,987 thousand, representing a growth of about 3.9%[38] - Total liabilities and stockholders' equity remained relatively stable at $2,970,085 thousand, slightly down from $2,974,233 thousand[38] - Total long-term liabilities were $959,216 thousand, remaining stable compared to $957,426 thousand from the previous year[38] Capital Expenditures and Future Outlook - The company plans capital expenditures of around $170 million for fiscal 2024[11] - For Q2 2024, net sales growth is expected to be in the mid-teens compared to $935 million in Q2 2023[12] - The effective tax rate is projected to be in the mid-to-high 20s, sensitive to jurisdictional mix and income levels[11] Segment Performance - The Americas segment reported net sales of $820,121, a 23% increase from $665,423 in the prior year[32] - Abercrombie brand net sales were $571,513, a 31% increase from $436,044 in the previous year[33] Interest and Lease Liabilities - The company reported a decrease in interest expense to $5,780, down from $7,458 in the same period last year[23] - The long-term portion of operating lease liabilities was $656,862 thousand, slightly up from $646,624 thousand, indicating a 0.4% increase[38] - The company acquired common stock for tax withholding obligations amounting to $65,173 thousand, compared to $18,359 thousand in the previous year, reflecting a significant increase[40] - The effect of foreign currency exchange rates on cash resulted in a decrease of $857 thousand, down from $1,998 thousand last year[40]