ABERCROMBIE & FITCH CO. UPDATES FOURTH QUARTER OUTLOOK AND ANNOUNCES INVESTOR DAY
January 22 2018 - 8:15AM
New Albany, Ohio,
January 22, 2018: Abercrombie & Fitch Co. (NYSE:
ANF) today announced that the company is updating its outlook for
the fourth quarter of fiscal 2017, and plans to hold an Investor
Day in April 2018.
For the fourth quarter of fiscal
2017, the company now expects:
-
Comparable sales to be up high-single digits,
compared to the previous outlook of up low-single digits
-
Net sales to be up low-teens, compared to the
previous outlook of up mid- to high-single digits, including
benefits from the 53rd week and changes in foreign currency
exchange rates
-
A gross profit rate in line with the previous
outlook of down approximately 100 basis points from last year's
rate of 59.3%
-
Operating expense, including other operating
income, to be up slightly from $553.7 million last year, compared
to the previous outlook of down approximately 1%, primarily due to
volume-related expense on higher than anticipated net sales
The company is currently assessing
the impact of the Tax Cuts and Jobs Act of 2017, but expects to
recognize a significant income tax charge in the fourth quarter
primarily related to the one-time deemed repatriation tax on
accumulated foreign earnings.
Fran Horowitz, Chief Executive
Officer, said:
"We are pleased by our performance
across all brands and channels during the holiday season, with
continued strength at Hollister, and the Abercrombie brand on track
to deliver positive comparable sales for the quarter. Our customers
remain at the center of all we do, and that singular focus has
continued to drive both our brands forward."
The company plans to release its
fiscal 2017 fourth quarter and full year results on March 7,
2018.
Investor Day
The company will be hosting an
Investor Day on April 25, 2018 in New York City, which will include
presentations by the company's leadership and a question and answer
session; a live webcast will also be available. Further details
will be provided at a later date.
SAFE HARBOR STATEMENT UNDER THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
A&F cautions that any
forward-looking statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995) contained in this Press
Release or made by management or spokespeople of A&F involve
risks and uncertainties and are subject to change based on various
important factors, many of which may be beyond the company's
control. Words such as "estimate," "project," "plan," "believe,"
"expect," "anticipate," "intend," and similar expressions may
identify forward-looking statements. Except as may be required by
applicable law, we undertake no obligation to publicly update or
revise any forward-looking statements. The following factors, in
addition to those disclosed in "ITEM 1A. RISK FACTORS" of A&F's
Annual Report on Form 10-K for the fiscal year ended
January 28, 2017 and in A&F's subsequently filed quarterly
reports on Form 10-Q, in some cases have affected, and in the
future could affect, the company's financial performance and could
cause actual results for Fiscal 2017 and beyond to differ
materially from those expressed or implied in any of the
forward-looking statements included in this Press Release or
otherwise made by management: changes in global economic and
financial conditions, and the resulting impact on consumer
confidence and consumer spending, as well as other changes in
consumer discretionary spending habits, could have a material
adverse effect on our business, results of operations and
liquidity; our inability to anticipate customer demand and changing
fashion trends and to manage our inventory commensurately could
adversely impact our sales levels and profitability; our market
share may be negatively impacted by increasing competition and
pricing pressures from companies with brands or merchandise
competitive with ours; direct-to-consumer sales channels are a
significant component of our growth strategy, and the failure to
successfully develop our position in these channels could have an
adverse impact on our results of operations; our ability to conduct
business in international markets may be adversely affected by
legal, regulatory, political and economic risks; our inability to
successfully implement our strategic plans could have a negative
impact on our growth and profitability; our failure to protect our
reputation could have a material adverse effect on our brands; our
business could suffer if our information technology systems are
disrupted or cease to operate effectively; we may be exposed to
risks and costs associated with cyber-attacks, credit card fraud
and identity theft that would cause us to incur unexpected expenses
and reputation loss; fluctuations in foreign currency exchange
rates could adversely impact our financial condition and results of
operations; changes in the cost, availability and quality of raw
materials, labor, transportation and trade relations could cause
manufacturing delays and increase our costs; we depend upon
independent third parties for the manufacture and delivery of all
our merchandise, and a disruption of the manufacture or delivery of
our merchandise could result in lost sales and could increase our
costs; our ability to attract customers to our stores depends, in
part, on the success of the shopping malls or area attractions that
our stores are located in or around; we rely on the experience and
skills of our senior executive officers, the loss of whom could
have a material adverse effect on our business; our reliance on DCs
makes us susceptible to disruptions or adverse conditions affecting
our supply chain; our litigation exposure could have a material
adverse effect on our financial condition and results of
operations; our inability or failure to adequately protect our
trademarks could have a negative impact on our brand image and
limit our ability to penetrate new markets; fluctuations in our tax
obligations and effective tax rate may result in volatility in our
operating results; extreme weather conditions and the seasonal
nature of our business may cause net sales to fluctuate and
negatively impact our results of operations; our facilities,
systems and stores, as well as the facilities and systems of our
vendors and manufacturers, are vulnerable to natural disasters,
pandemic disease and other unexpected events, any of which could
result in an interruption to our business and adversely affect our
operating results; the impact of war or acts of terrorism could
have a material adverse effect on our operating results and
financial condition; changes in the regulatory or compliance
landscape could adversely affect our business and results of
operations; our Asset-Based Revolving Credit Agreement and our Term
Loan Agreement include restrictive covenants that limit our
flexibility in operating our business; and, compliance with
changing regulations and standards for accounting, corporate
governance and public disclosure could adversely affect our
business, results of operations and reported financial results.
About Abercrombie & Fitch
Co.
Abercrombie &
Fitch Co. (NYSE: ANF) is a leading, global specialty retailer of
apparel and accessories for Men, Women and Kids through three
renowned brands. For 125 years, the iconic Abercrombie & Fitch
brand has outfitted innovators, explorers and entrepreneurs. Today,
the brand reflects the updated attitude of the 21 to 24-year old
customer, while remaining true to its heritage of creating expertly
crafted products with an effortless, American style. The Hollister
brand epitomizes the liberating and carefree spirit of the endless
California summer for the teen market. abercrombie kids creates
smart, playful apparel for children ages 5-14, celebrating the
wide-eyed wonder of childhood.
The brands share
a commitment to offering products of enduring quality and
exceptional comfort that allow consumers around the world to
express their own individuality and style. The Company
operates approximately 900 stores under these brands across North
America, Europe, Asia and the Middle East, as well as the
e-commerce sites www.abercrombie.com and
www.hollisterco.com.
Investor Contact: |
|
Media
Contact: |
|
|
|
Brian
Logan |
|
Ian
Bailey |
Abercrombie & Fitch |
|
Abercrombie & Fitch |
(614)
283-6877 |
|
(614)
283-6192 |
Investor_Relations@anfcorp.com |
|
Public_Relations@anfcorp.com |
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Abercrombie & Fitch Co via Globenewswire
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