Abercrombie & Fitch (ANF) Q4 2025 Earnings Call March 05, 2025 04:32 PM ET Company Participants Mohit Gupta - VP - Investor RelationsFran Horowitz - CEORobert Ball - SVP & CFODana Telsey - CEO and Chief Research OfficerScott Lipesky - EVP & COOCorey Tarlowe - SVP - Equity ResearchPaul Lejuez - Managing DirectorMarni Shapiro - Managing PartnerMauricio Serna - Executive DirectorJanet Kloppenburg - President Conference Call Participants Matthew Boss - Equity Research AnalystAlex Straton - Analyst Operator Good ...

Core Insights - Ross Stores, Inc. reported mixed results for Q4 fiscal 2024, with earnings surpassing estimates but sales missing expectations [1][3][4] - The company experienced a year-over-year increase in net sales, but earnings declined compared to the previous year [1][3] Financial Performance - Earnings per share (EPS) for Q4 was $1.79, exceeding the Zacks Consensus Estimate of $1.65, but down 1.6% from $1.82 in Q4 fiscal 2023 [3] - Total sales reached $5.91 billion, a 3% increase year-over-year, but fell short of the Zacks Consensus Estimate of $5.95 billion [4] - Comparable store sales (comps) grew by 3%, surpassing the expected increase of 2.4% [4] Cost and Profitability - Cost of goods sold (COGS) was $4.3 billion, up 0.7% year-over-year, representing 73.5% of sales, an increase of 80 basis points from the previous year [5] - Gross profit decreased by 4.7% year-over-year to $1.569 billion, with gross margin contracting 80 basis points to 26.5% [6] - Operating income rose 1.8% year-over-year to $731 million, with an operating margin of 12.4%, remaining flat year-over-year [7] Shareholder Returns - The company ended fiscal 2024 with cash and cash equivalents of $4.7 billion and long-term debt of $1.5 billion [10] - Ross Stores repurchased 1.7 million shares for $262 million in Q4, totaling 7.3 million shares for $1.05 billion in fiscal 2024 [11] - A 10% increase in the quarterly cash dividend to 40.5 cents per share was approved, payable on March 31, 2025 [12] Future Outlook - Sales trends softened in early 2025 due to unseasonable weather and macroeconomic volatility, leading to a cautious business forecast [13] - For Q1 fiscal 2025, the company anticipates comps to decline between 3% and flat, with EPS expected to be in the range of $1.33 to $1.47 [14] - For the fiscal year ending January 31, 2026, EPS is projected to be between $5.95 and $6.55 [15]

Financial Data and Key Metrics Changes - Total URBN sales grew by 9%, reaching a Q4 record of $1.6 billion, with record fourth-quarter sales from four of the five brands [11][12] - Gross profit increased by 17% to $528 million, with the gross profit rate improving by over 200 basis points to 32.3% [13][14] - Operating income rose by 54% to $125 million, while net income increased by 49% to $98 million or $1.04 per diluted share [15][42] Business Line Data and Key Metrics Changes - Anthropologie achieved an 8% Retail segment comp, with double-digit increases in the digital channel and mid-single-digit increases in the store channel [16][19] - Free People saw total retail and wholesale segment sales increase by 13%, driven by an 8% Retail segment comp and a 27% increase in wholesale revenues [19][21] - Urban Outfitters recorded a 3% decline in Retail segment comp, with improvements in merchandise margin rate due to lower markdowns [23][24] Market Data and Key Metrics Changes - The Wholesale segment experienced a 26% revenue increase, primarily due to full-price sales at Free People [12] - Nuuly added over 20,000 average active subscribers, ending the quarter with 300,000 average active subscribers, leading to a 56% increase in brand revenue [29][30] Company Strategy and Development Direction - The company plans to open approximately 58 new stores and close about 19 stores during fiscal year 2026, focusing on retail store expansion and technology investments [38][39] - Management emphasized a renewed focus on growth for Urban Outfitters, with strategies to improve customer acquisition and drive profitable full-priced sales [25][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2026, expecting mid-single-digit sales growth driven by low single-digit retail segment comps [32][33] - The company noted that customer demand remains consistent, with strong performance in key categories and a positive outlook for spring assortments [44][103] Other Important Information - The company ended FY25 with slightly elevated inventory levels, planning to increase product turns in the coming year [36] - Capital expenditures for FY26 are planned at approximately $240 million, with a focus on retail store expansion and technology investments [37] Q&A Session Summary Question: Did you hit the goal to improve IMU by 500 basis points? - Management acknowledged progress but fell short of the goal, indicating continued efforts for improvement [54] Question: Can you discuss the mix of branded versus private brands? - Urban Outfitters is focusing on growing national brands, while Anthropologie has achieved 70% owned brand penetration in women's apparel [60][61] Question: What notable trends across categories do you see emerging this year? - Management noted strong sales in bottoms, outerwear, and activewear, with expectations for low to mid-single-digit comps across brands [66][67] Question: What is the status of Urban Outfitters' transformation strategy? - Management reported good progress on the five pillars of transformation, focusing on customer engagement and improved product assortment [73][78] Question: What are the real estate plans for Anthropologie and Urban Outfitters? - Anthropologie plans to ramp up store growth due to brand momentum, while Urban Outfitters is rationalizing its footprint to improve profitability [90][94] Question: What is the outlook for Urban Outfitters' profitability? - Management indicated that Urban Outfitters needs to return to positive comps to leverage occupancy costs and improve profitability [142] Question: What is the long-term revenue potential for Urban Outfitters? - Management is optimistic about Urban Outfitters' revenue growth potential, emphasizing the need for continued improvement in product assortment and customer engagement [146]

Summary of The Buckle (BKE) Update - February 05, 2025 Company Overview - The Buckle operates retail stores across 42 states, currently managing 440 stores, a decrease from 444 stores as of February 06, 2024 [4] Key Financial Metrics - Comparable store sales for the four-week period ended February 01, 2025, increased by 4.4% compared to the same period in the previous year [1] - Total net sales for the four-week fiscal month decreased by 18% to $59.5 million, down from $72.6 million in the prior year [1] - Men's sales decreased by 2.5% for the same four-week period [1] Sales Composition - Men's business represented approximately 46.5% of total sales, down from 50.5% in the prior year [2] - Women's business saw a 14% increase in sales, representing approximately 53.5% of total sales, up from 49.5% [2] - Accessory sales increased by approximately 10%, while footwear sales decreased by about 7.5% [3] Pricing and Transaction Metrics - Overall price points for men's products increased by about 0.5%, while women's price points rose by approximately 4.5% [2] - Average accessory price points decreased by about 1%, and average footwear price points increased by about 2.5% [3] - Units per transaction (UPT) decreased by approximately 3%, while average transaction value saw a slight increase compared to the prior year [3] Forward-Looking Statements - The company does not provide guidance on current sales or project results for the next quarter, citing material risks and uncertainties that may affect future performance [4]

Table of Contents As Filed with Securities and Exchange Commission on September 18, 2023 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 DIGITAL BRANDS GROUP, INC. (Exact name of registrant as specified in its charter) (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number) 1400 Lavaca Street Austin, TX 78701 (209) 651-0172 (Address and telephone number of registrant's principal ...

Financial Data and Key Metrics Changes - The company reported adjusted earnings per diluted share of $0.28, down from $0.34 in the same quarter last year [21] - Total sales were $545 million, a decrease of 2.4% year-over-year, with a 3% decline on a comparable sales basis [22] - Gross margin was 39.8%, down from 41.4% last year, indicating a normalized margin due to steady inventory flow [23] Business Line Data and Key Metrics Changes - Soma experienced a 2.1% net sales increase, with comparable sales down 0.5%, marking a sequential improvement over the last four quarters [22][5] - Chico's saw a 2.5% decline in comparable sales, while White House Black Market's comparable sales fell 5.7%, both on top of nearly 30% increases on a two-year stack basis [22] - Average dollar sale and units per transaction increased across all brands, offset by a decrease in transaction count [22] Market Data and Key Metrics Changes - The company gained market share among customers aged 45 and older with household incomes over $100,000, with Soma significantly outperforming the market in the same demographic [8] - Total inventory was down 11%, with on-hand inventory down 0.3%, indicating a healthy inventory position entering the second half of the year [9][26] Company Strategy and Development Direction - The company focuses on being customer-led, utilizing stores, digital platforms, and social media to enhance customer experiences and drive long-term growth [10] - The strategic pillars include being product-obsessed, digital-first, and operationally excellent, with ongoing investments in technology and marketing to support growth [20] - The company plans to manage expenses while investing in areas that drive customer growth and store productivity [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the back half of the year, citing positive customer responses to new fall assortments and a healthy inventory position [29] - The company expects total sales for fiscal 2023 to be flat to low single-digit growth compared to last year, with improving trends anticipated in Q3 and Q4 [28][29] - Management highlighted the importance of maintaining a balanced assortment and strategic promotions to navigate the current market environment [73] Other Important Information - The company ended the quarter with $151 million in cash and total liquidity of $386 million, with only $24 million in debt [24][25] - The redesigned loyalty programs have seen nearly 90% enrollment among apparel customers, driving higher units per transaction and average dollar sales [19] Q&A Session Summary Question: Can you expand on inventory and trend changes for Q4 by brand? - Management noted that total inventory was down 11%, with fresh fall inventories up 12%, indicating a healthy position for Q3 [34] Question: What are the factors affecting gross margin? - Management highlighted corporate savings and occupancy costs as key factors, with a moderate gross margin contraction expected for the year [38][39] Question: How are outlet trends progressing? - Management reported a rebound in outlet stores, with positive foot traffic and conversion rates, although digital outlet sales remained soft [42][43] Question: What is the status of customer reactivation? - Management indicated strong reactivation of lapsed customers, with new customer growth up across all brands [44] Question: How is the dress business performing at White House Black Market? - Management acknowledged a sequential improvement in sales, with inventory levels now balanced between fashion and basics [71] Question: Is there a trend back towards casual wear? - Management clarified that the trend is more about proportion changes rather than a strict shift towards casual or dressy styles [75]

Table of Contents WASHINGTON, D.C. 20549 AMENDMENT NO. 3 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Digital Brands Group, Inc. (Exact name of registrant as specified in its charter) As filed with the Securities and Exchange Commission on August 24, 2023 UNITED STATES SECURITIES AND EXCHANGE COMMISSION (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) 1400 Lavaca Street Austin, TX 78701 (209) 651-0172 (Address and ...

TABLE OF CONTENTS As filed with the Securities and Exchange Commission on August 4, 2023 Registration Statement No. 333-272965 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 AMENDMENT NO. 2 TO FORM S-1 Digital Brands Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) Delaware 5699 46-1942864 (I.R.S. Employer Identification Number) 1400 Lavaca Street ...

Table of Contents As filed with the Securities and Exchange Commission on June 27, 2023 Registration Statement No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Digital Brands Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) 1400 Lavaca Street Austin, TX 78701 Delaware 5699 46- ...

UNDER THE SECURITIES ACT OF 1933 DIGITAL BRANDS GROUP, INC. FORM S-1 Table of Contents As Filed with Securities and Exchange Commission on January 30, 2023 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 REGISTRATION STATEMENT (Exact name of registrant as specified in its charter) (Primary Standard Industrial (State or other jurisdiction of incorporation or organization) Classification Code Number) 1400 Lavaca Street Austin, TX 78701 (209) 651-0172 (Address and telephone number of re ...