Abercrombie & Fitch 1998 Annual Report Download

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Table of contents

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    Abercrombie & Fitch

  • Page 3
    ... 13 Management's Discussion and Analysis 14 Consolidated Statements of Income 19 Consolidated Statements of Shareholders' Equity 19 Consolidated Balance Sheets 20 Consolidated Statements of Cash Flows 21 Notes to Consolidated Financial Statements 22 Report of Independent Accountants 30 Corporate...

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    ... home office and stores are filled with our target customers- Abercrombie & Fitch merchandisers, designers and marketing teams are filled with fresh-faced, just-out-of-school kids from select universities around the country. Market research isn't forecasts and focus groups. We go to college campuses...

  • Page 6
    ...agenda for the break of the new millennium, with strategies designed to fortify the longevity and power of the A&F label. The value of the Abercrombie & Fitch lifestyle to our customers has never been more real-and will make 1999 our most successful year ever. Michael S. Jeffries Chairman and Chief...

  • Page 7
    ... Outstanding Other Financial Information Total Assets Return on Average Assets Capital Expenditures Long-Term Debt Shareholders' Equity (Deficit) Comparable Store Sales Increase Retail Sales per Average Gross Square Foot Stores and Associates at End of Year Total Number of Stores Open Gross Square...

  • Page 8
    ... of year Opened Closed End of year and remodeled stores. Comparable store sales increases were strong in both the men's and the women's businesses as both were driven by a very strong knit business. Additionally, fourth quarter 1997 net sales included results from the first Holiday issue of...

  • Page 9
    ... the fourth quarter of 1998 and 1997 of compensation expense associated with restricted stock grants awarded to key executives of the Company. General, administrative and store operating expenses for the year, expressed as a percentage of net sales, were 21.7%, 22.4% and 23.2% in 1998, 1997 and 1996...

  • Page 10
    ...-of-sale equipment, merchandise and non-merchandise procurement and business and accounting management. In order to address the Year 2000 issue the Company has developed a Year 2000 plan that focuses on three areas: IT systems, facilities and distribution equipment and vendor relations. The plan...

  • Page 11
    ... arise, the Company's contingency planning will focus on minimizing any significant disruptions by committing resources to respond to specific problems that may arise. At the present time, the Company is not aware of any Year 2000 issues that it expects might materially affect its products, services...

  • Page 12
    ...skills of employees and independent contractors, the representations and preparedness of third parties, the failure of vendors to deliver merchandise or perform services required by the Company and the collateral effects of the Year 2000 issues on the Company's business partners and customers. While...

  • Page 13
    ... Paid-In Capital 43,000 - $305 $(22,927) - $(22,622) Transfer of Equity to Debt ($50,000 Long-Term Debt and $32,000 Short-Term Borrowings) Cash Dividend to The Limited Prior to Initial Public Offering Sale of Common Stock in Initial Public Offering Net Income Other Balance, February 1, 1997...

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    Abercrombie & Fitch Co. CONSOLIDATED BALANCE SHEETS (Thousands) Assets Current Assets January 30, 1999 January 31, 1998 Cash and Equivalents Accounts Receivable Inventories Store Supplies Receivable from The Limited Other Total Current Assets Property and Equipment, Net Deferred Income Taxes ...

  • Page 15
    ... Assets and Liabilities Inventories Accounts Payable and Accrued Expenses Income Taxes Other Assets and Liabilities Net Cash Provided by Operating Activities Cash Used for Investing Activities Capital Expenditures Financing Activities Settlement of Balance with The Limited Increase (Decrease) in...

  • Page 16
    ...completion of a tax-free exchange offer (the "Exchange Offer") on May 19, 1998, to establish the Company as an independent company. In the Exchange Offer, The Limited accepted 47,075,052 shares of its common stock that were exchanged at a ratio of .86 of a share of Abercrombie & Fitch stock for each...

  • Page 17
    ... At January 30, 1999, there were photographs or publications first appear. Catalogue and advertising costs amounted to $24.9 million in 1998, $13.7 million in 1997 and $4.1 million in 1996. STORE PREOPENING EXPENSES Preopening expenses related to new store openings are charged to operations as...

  • Page 18
    ... landlord charges Compensation and benefits Catalogue and advertising costs Interest Taxes, other than income Other Total 1998 $13,368 9,800 8,701 - 3,634 28,379 $63,882 1997 $08,105 8,357 4,012 986 1,827 11,856 $35,143 4. LEASED FACILITIES AND COMMITMENTS Annual store rent is comprised of a fixed...

  • Page 19
    ... A common stock at a price of $43.125 per share. 8. RELATED PARTY TRANSACTIONS Prior to the Exchange Offer, transactions between the Company and The Limited and its subsidiaries and affiliates principally consisted of the following: Merchandise purchases Real estate management and leasing Capital...

  • Page 20
    ..., 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 were charged directly to the Company. All...

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    ... Gryphon purchases Capital expenditures Inbound and outbound transportation Corporate charges Store leases and other occupancy, net Distribution center, IT and home office expenses Centrally managed benefits Interest charges, net 1998 $20,176 3,199 2,280 2,671 561 2,217 1,524 4 $32,632 1997 $089,892...

  • Page 22
    Abercrombie & Fitch Co. compensation expense related only to those grants made subsequent to the Company's initial public offering. Stock Options Outstanding at January 30, 1999 Options Outstanding Weighted Average Range of Remaining Exercise Number Contractual Prices Outstanding Life $13-$25 $26-$...

  • Page 23
    ... is a summary of the Company's market price on the New York Stock Exchange ("ANF") for the fiscal years ending 1998 and 1997: Market Price High 1998 Fiscal Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 1997 Fiscal Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter $3411⁄16 $271⁄4 $201...

  • Page 24
    ... with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures...

  • Page 25
    ... 2500, Jersey City, New Jersey 07303 INFORMATION REQUESTS Please call (614) 577-6751 or write Lonnie Fogel, Director of Investor Relations & Corporate Communications at the Corporate Offices address listed above. ABERCROMBIE & FITCH Initial Public Offering: September 26, 1996 Number of Associates...

  • Page 26
    ...President - Chief Financial Officer DAVID L. LEINO Vice President - Director of Stores CHARLES W . MARTIN Vice President - Men's Design and New Business Development LESLEE K. O'NEILL Vice President - Merchandise Control Design: Shahid & Company Photography: Bruce Weber Printing: Superior Graphics...