Financial Data and Key Metrics Changes - First quarter net sales reached $184.3 million, up 3.9% from $177.4 million in the first quarter of 2024 [12] - Comparable sales grew 5.5%, marking the fourth consecutive quarter of positive growth [4] - Gross profit for the first quarter was $55.3 million, a 6.6% increase compared to $51.9 million in the same quarter last year [15] - Net loss for the first quarter was $14.3 million, or $0.79 per share, compared to a net loss of $16.8 million, or $0.86 per share, in the first quarter of 2024 [16] Business Line Data and Key Metrics Changes - North America net sales were $149.7 million, an increase of 4.9% from 2024, with comparable sales up 7.4% [13] - Other international net sales, which include Europe and Australia, were $34.6 million, down 0.2% from last year, with comparable sales down 2.3% [13][14] - The women's category was the largest positive comping category, while hard goods was the only negative comping category [14] Market Data and Key Metrics Changes - North America comparable sales increased 5.1% during the four-week period ended May 31, 2025, while other international comparable sales decreased 14.8% [20] - The company anticipates total sales for the second quarter to be between $207 million and $214 million, representing a negative 2% to positive 2% change from the prior year [22] Company Strategy and Development Direction - The company is focused on three strategic priorities: accelerating top-line expansion, maintaining profitability, and leveraging financial strength to navigate uncertainty [5][6] - Plans to reduce exposure to China by diversifying the sourcing base, aiming for no individual country to represent more than 20% of goods sourced by 2026 [5][36] - The company expects to open nine new stores in 2025 while closing approximately 20 stores [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the global trade environment and adapting to changing market conditions [4][5] - The company anticipates modest year-over-year growth in product margin in 2025, despite challenges from tariffs and store closures [26] - Management noted that achieving previously mentioned annual expectations for fiscal 2025 remains feasible [26] Other Important Information - The company ended the quarter with $101 million in cash and current marketable securities, with no debt on the balance sheet [9][17] - A new share repurchase plan for up to $15 million was authorized by the Board of Directors [18] Q&A Session Summary Question: Can you walk us through the tariff situation and its impact on COGS? - Management highlighted proactive measures taken to mitigate tariff impacts, including sourcing adjustments and cost management strategies [30][32][36] Question: What is the anticipated product margin growth despite tariff exposure? - Management indicated that they expect to grow product margin modestly through various strategies, including working with brand partners and adjusting pricing [37][39] Question: What is the strategy for improving results in the other international markets? - Management acknowledged the challenges in Europe and emphasized a focus on profitability and cash flow, with plans to drive top-line growth through new product offerings [40][44][46]

Financial Performance - Full Year 2024 - The company's net sales reached $4.9 billion, a 16% year-over-year increase[17, 53] - Operating income was $741 million, with an operating margin of 15%[19, 52] - Net income per diluted share was $1069, a 72% year-over-year increase[56] Financial Performance - Q4 2024 - Net sales totaled $158 billion, a 9% increase compared to Q4 2023[61, 83] - Operating income reached $256 million, resulting in an operating margin of 162%[63] - Net income per diluted share was $357, a 20% increase year-over-year[64] Brand Performance - Full Year 2024 - Abercrombie brands net sales were $256 billion, up 16% year-over-year[27, 98] - Hollister brands net sales were $239 billion, up 15% year-over-year[36, 98] Regional Performance - Full Year 2024 - Americas net sales reached $403 billion, a 17% increase[98] - EMEA net sales were $771 million, a 12% increase[55, 98] - APAC net sales totaled $151 million, a 9% increase[55, 98] Fiscal Year 2025 Outlook - The company anticipates net sales growth of 3% to 5% and an operating margin between 14% and 15%[17, 19, 78] - The company plans to repurchase $400 million in shares[78]