Abercrombie & Fitch 1997 Annual Report Download

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Table of contents

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    Abercrombie & Fitch

  • Page 3
    ... 15 Management's Discussion and Analysis 16 Consolidated Statements of Income 20 Consolidated Statements of Shareholders' Equity 20 Consolidated Balance Sheets 21 Consolidated Statements of Cash Flows 22 Notes to the Consolidated Financial Statements 23 Report of Independent Accountants 30 Corporate...

  • Page 4
    ... in-store experience has never been more potent. Every aspect of our stores-the music, the marketing and photos, the clothing and overall aesthetic, even the Brand Representatives who work there-create a fun, exciting atmosphere. We achieved a 21% comparable store sales increase in 1997. Customers...

  • Page 5
    ...strategy designed to prevent dilution of the brand. Our ability to make the Abercrombie lifestyle relevant and meaningful in the lives of our customers comes, in part, from our unique ability to vertically integrate. Unlike many of our competitors, we control every aspect of our brand and can direct...

  • Page 6
    ... A&F brand. That means investing to add quality in our stores, our merchandise and our associates. Our brand has never been stronger. Our focus, strategy and planning are tuned for long-term, consistent growth. As we move forward I can say with absolute confidence and enthusiasm that our future has...

  • Page 7
    Abercrombie & Fitch Co. FINANCIAL SUMMARY (Thousands except per share and per square foot amounts, ratios and store and associate data) Fiscal Year Summary of Operations 1997 $521,617 $201,080 $084,125 16.1% $048,322 9.3% $0000.95 $0000.94 0051,478 $183,238 33% $029,486 $050,000 $058,775 21% $...

  • Page 8
    ...11, 1996, the intercompany cash management account was noninterest bearing; and 3) interest expense on the Company's ongoing capital structure which included interest expense on a $50 million mirror note distributed to The Limited prior to the initial public offering but excluded interest expense on...

  • Page 9
    ...margins (representing gross income before the deduction of buying and occupancy costs) resulting from higher initial markups (IMU) and a lower markdown rate. As a result of improved inventory turnover, fewer markdowns, expressed as a percentage of net sales, were needed in the fourth quarter of 1997...

  • Page 10
    ... Company plans to open 10 to 15 children's stores in 1998. The planned store size is approximately 3,200 selling square feet and the average cost for leasehold improvements, furniture and fixtures will be approximately $470,000. The Company expects that substantially all future capital expenditures...

  • Page 11
    ... and is involved in a program to update computer systems and applications in preparation for the year 2000. The Company will incur internal staff costs as well as outside consulting and other expenditures related to this initiative. Total expenditures related to remediation, testing, conversion...

  • Page 12
    Abercrombie & Fitch Co. CONSOLIDATED STATEMENTS OF INCOME (Thousands except per share amounts) Net Sales Cost of Goods Sold, Occupancy and Buying Costs Gross Income General, Administrative and Store Operating Expenses Operating Income Interest Expense, Net Income Before Income Taxes Provision ...

  • Page 13
    Abercrombie & Fitch Co. CONSOLIDATED BALANCE SHEETS (Thousands) Assets Current Assets January 31, 1998 February 1, 1997 Cash and Equivalents Accounts Receivable Inventories Store Supplies Intercompany Receivable Other Total Current Assets Property and Equipment, Net Deferred Income Taxes Other ...

  • Page 14
    ... Inventories Accounts Payable and Accrued Expenses Income Taxes Other...Company's trademark subsidiary to The Limited, Inc., distribution of the $50 million in long-term debt and the conversion of $8.6 million of intercompany debt into a working capital note. The accompanying Notes are an integral...

  • Page 15
    ... method. STORE SUPPLIES The initial inventory of supplies for new stores including, but not limited to, hangers, signage, security tags and point-of-sale supplies are capitalized at the store opening date. Subsequent shipments are expensed except for new merchandise presentation programs which are...

  • Page 16
    ... Costs related to Dilutive effect of options and restricted shares Diluted shares 467 51,478 11 45,760 - 43,000 the A&F Quarterly, which premiered in 1997, primarily consist of catalogue production and mailing costs and are expensed as incurred. Advertising costs consist of in-store photographs...

  • Page 17
    ... 1996 following (thousands): 1997 Rent and landlord charges Compensation and benefits Catalogue and advertising costs Interest Taxes, other than income Other Total $08,105 $08,357 4,012 986 1,827 11,856 $35,143 1996 $05,624 $04,638 1,449 2,162 1,761 6,754 $22,388 Furniture, fixtures and equipment...

  • Page 18
    ... ("Real Estate Division"). Real Estate Division expenses are allocated to the Company based on a combination of new and remodeled store construction projects and open selling square feet. The Company's store design and construction operations are coordinated centrally by the Store Planning Division...

  • Page 19
    ..., aircraft, tax, treasury, legal, corporate secretary, accounting, auditing, corporate development, risk management, associate benefit plan administration, human resource and compensation, government affairs and public relation services. Identifiable costs are charged directly to the Company. All...

  • Page 20
    ... is approximately 40% owned by The Limited. 9. STOCK OPTIONS AND RESTRICTED STOCK Under the tion expense related only to those grants made subsequent to the Company's initial public offering. A summary of option activity for 1997 and 1996 follows: 1997 Weighted Average Option Price $16.00 18.03 16...

  • Page 21
    ... PRICE INFORMATION The following is a summary of market price since the Company was originally listed on the New York Stock Exchange ("ANF") on September 26, 1996: Market Price High Fiscal Year End 1997 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter $3411⁄16 $271⁄4 $201⁄2 $175⁄8 $2511⁄16...

  • Page 22
    Abercrombie & Fitch Co. REPORT OF INDEPENDENT ACCOUNTANTS TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF ABERCROMBIE & FITCH CO. We have audited the accompanying consolidated balance sheets of Abercrombie & Fitch Co. and subsidiaries as of January 31, 1998 and February 1, 1997 and the related ...

  • Page 23
    ... Chicago Trust Company of New York P .O. Box 2500, Jersey City, New Jersey 07303-2500 INFORMATION REQUESTS Please call (614) 577-6493 or write Lonnie Fogel, Director of Investor Relations & Communications at the Corporate Offices address listed above. ABERCROMBIE & FITCH Initial Public Offering...

  • Page 24
    ...Vice President - Men's Design LESLEE K. O'NEILL Vice President - Merchandise Control BOARD OF DIRECTORS MICHAEL S. JEFFRIES Design: Shahid & Company Photography: Bruce Weber Printing: Superior Graphics Chairman and Chief Executive Officer GEORGE FOOS Management Consultant JOHN A. GOLDEN Limited...