q22018investorinfogra078

We are pleased with our second quarter performance, capping off a strong first half of the year. During the second quarter, we delivered both top and bottom line growth, while continuing to invest in the transformation of our business. FRAN HOROWITZ • CHIEF EXECUTIVE OFFICER SECOND QUARTER 2018 NET SALES 110 BPS OF GROSS PROFIT RATE IMPROVEMENT $842.4M 200 BPS +8% OF OPERATING EXPENSE LEVERAGE HOLLISTER ABERCROMBIE $39M CASH RETURNED TO SHAREHOLDERS THROUGH +16% SHARE REPURCHASES AND DIVIDENDS DIRECT-TO-CONSUMER NET SALES INCREASE COMPARABLE SALES* NET INCOME (LOSS) PER DILUTED SHARE TOTAL COMPANY +3% GAAPGAAP NON-GAAPNON-GAAP HCO ANF U.S. INTL Q2 2018 $(0.06) $0.06 +4% +2% +7% -4% Q2 2017 $(0.23) $(0.16) * Excludes the impacts from changes in foreign currency and the calendar shift CONTINUING TO TRANSFORM OUR BUSINESS AND DRIVE OUR BRANDS FORWARD TOTAL COMPANY HOLLISTER ABERCROMBIE 20 MILLION+ LOYALTY PROGRAM RECORD SECOND THIRD CONSECUTIVE MEMBER ACCOUNTS QUARTER SALES IN QUARTER OF POSITIVE ACROSS BRANDS BRAND HISTORY COMPARABLE SALES CONTINUED IMPROVEMENT IN CAPITALIZED ON FASHION TRENDS LEANED INTO BRAND HEALTH THROUGH SPEED TO MARKET AND TRENDS SUCH AS METRICS CUSTOMER CLOSENESS VARSITY AND TRACK CARPE DENIM NEW PARTNERSHIPS IMPROVED CAMPAIGN WITH WITH SBE & JAY Z’S REAL ESTATE ARTISTS KHALID & ROC NATION PRODUCTIVITY NOAH CYRUS UPDATED FASHION, LAUNCHED MULTIPLE FIT, SIZING AND PILOTS RELATED TO LAUNCH OF ASSORTMENT IN ABERCROMBIE KIDS TRANSFORMATION GILLY HICKS INITIATIVES ‘DO ANYTHING’ JEANS NEW STORES YONKERS, NEW YORK ● TROY, MICHIGAN 870 STORES GLOBALLY ● EXCLUDING 13 INTERNATIONAL FRANCHISE STORES CHANGSHA, CHINA ● DUBAI, UNITED ARAB EMIRATES kids brand first international prototype FULL YEAR OUTLOOK NET COMPARABLE GROSS GAAP OPERATING CAPITAL SALES* SALES PROFIT RATE EXPENSE** EXPENDITURES + 2 - 4% + 2 - 4% UP SLIGHTLY + ~ 2.5% $135M - $140M * Including adverse impacts from the loss of fiscal 2017’s 53rd week and benefits from changes in foreign currency exchange rates. ** Including ~$14M of store asset impairment and certain legal charges which will be excluded from non‐GAAP adjusted operating expense. INVESTOR CONTACT MEDIA CONTACT BRIAN LOGAN • INVESTOR_RELATIONS@ANFCORP.COM IAN BAILEY • PUBLIC_RELATIONS@ANFCORP.COM 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 presentation 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 assume no obligation to publicly update or revise our forward‐looking statements. The factors disclosed in "ITEM 1A. RISK FACTORS" of A&F's Annual Report on Form 10‐K for the fiscal year ended February 3, 2018, 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 the 2018 fiscal year and beyond to differ materially from those expressed or implied in any of the forward‐looking statements included in this presentation or otherwise made by management. OTHER INFORMATION This infographic includes certain adjusted non‐GAAP financial measures. Additional details about non‐GAAP financial measures and a reconciliation of GAAP to non‐GAAP financial measures are included in the news release issued by the company on August 30, 2018, which is available in the “Investors” section of the company’s website located at corporate.abercrombie.com. Non‐GAAP financial measures should be used supplemental to, and not as an alternative to, the company's GAAP financial results, and may not be calculated in the same manner as similar measures presented by other companies. As used in the infographic, "Abercrombie" refers to the company's Abercrombie & Fitch and abercrombie kids brands. Net income (loss) per share financial measures included herein are attributable to Abercrombie & Fitch Co., excluding net income attributable to noncontrolling interests.