Abercrombie & Fitch 2002 Annual Report Download

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Abercrombie &Fitch
2002
FINANCIAL SUMMARY

Table of contents

  • Page 1
    Abercrombie & Fitch 2002 FINANCIAL SUMMARY

  • Page 2
    Abercrombie & Fitch

  • Page 3
    ... 4 Consolidated Statements of Income 14 Consolidated Balance Sheets 15 Consolidated Statements of Shareholders' Equity 16 Consolidated Statements of Cash Flows 17 Notes to Consolidated Financial Statements 18 Report of Independent Accountants 26 Corporate Information 27 Corporate Officers and Board...

  • Page 4
    ... brightest in the industry, and the strengths and talents of our associates are our biggest assets. We continued to grow our business very rapidly in 2002, opening a total of 112 new stores. We ended the year with 597 stores across all three of our brands. I'm very excited about the progress we have...

  • Page 5
    Abercrombie & Fitch & Fitch brand. Although we have made great progress in recent years, these businesses are still underdeveloped relative to mens and boys. We continue to work very hard in mens and boys, however our biggest volume opportunities are in womens and girls. I see fashion and the ...

  • Page 6
    ... Information Total Assets Return on Average Assets Capital Expenditures Long-Term Debt Shareholders' Equity Return on Average Shareholders' Equity Comparable Store Sales Increase (Decrease) Retail Sales Per Average Gross Square Foot Stores and Associates at End of Year Total Number of Stores Open...

  • Page 7
    ... stores, magazine, catalogue and Web sites Retail sales per average gross square foot Retail sales per average store (thousands) Average store size at year-end (gross square feet) Gross square feet at year-end (thousands) Number of stores and gross square feet by concept: Abercrombie & Fitch: Stores...

  • Page 8
    .... The Company remains on track to add a Hollister e-commerce business for backto-school 2003. The direct business (which includes the Company's catalogue, the A&F Quarterly (a catalogue/magazine) and the Company's Web sites) accounted for 5.0% of net sales in the fourth quarter of 2002 as compared...

  • Page 9
    ... boys. As in the adult business, girls outperformed boys. For the 2001 fiscal year, sales per square foot in Hollister stores were approximately 75% of the sales per square foot in Abercrombie & Fitch stores in the same malls. The Company's catalogue, the A&F Quarterly and the Company's Web sites...

  • Page 10
    ... by marketing costs incurred as part of the promotional strategy implemented during the fourth quarter of 2001. Fourth quarter 2000's general, administrative and store operating expenses were unfavorably affected by one-time expenses related to the move to the new distribution center and home office...

  • Page 11
    ... decrease in net interest income in the year-to-date period was a result of the Company's strategy at the beginning of 2002 to invest cash in tax-free securities due to the decline in short-term market interest rates. Previously, the Company primarily invested in the commercial paper market. The tax...

  • Page 12
    ... year-end. Other uses of cash were directly related to store growth and primarily consisted of increases in capitalized store supplies and prepaid rent related to stores (classified in other current assets). The Company's operations are seasonal in nature and typically peak during the back-to-school...

  • Page 13
    ...operations. Revenue Recognition - The Company recognizes retail sales at the time the customer takes possession of the merchandise and purchases are paid for, primarily with either cash or credit card. Catalogue and e-commerce sales are recorded upon customer receipt of merchandise. Amounts relating...

  • Page 14
    ... various taxing jurisdictions. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other Intangible Assets." The standard was effective February 3, 2002 for the Company. SFAS...

  • Page 15
    ...2002 for the Company. The standard addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The adoption of SFAS No. 144 did not have a material impact on the Company's results of operations or its financial position in 2002. In November 2002, the FASB issued...

  • Page 16
    ... in which the Company operates, including, but not limited to, acts of terrorism or war; the impact of competition and pricing; changes in weather patterns; market price of key raw materials; ability to source product from it global supplier base; political stability; currency and exchange risks and...

  • Page 17
    ... & Fitch 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 Income, Net Income Before Income Taxes Provision for Income Taxes...

  • Page 18
    Abercrombie & Fitch CONSOLIDATED BALANCE SHEETS (Thousands) Assets Current Assets February 1, 2003 February 2, 2002 Cash and Equivalents Marketable Securities Receivables Inventories Store Supplies Other Total Current Assets Property and Equipment, Net Other Assets Total Assets Liabilities and ...

  • Page 19
    Abercrombie & Fitch CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Common Stock Treasury Stock, at Average Cost Total Shareholders' Equity (Thousands) Balance, January 29, 2000 Shares Outstanding Par Value Paid-In Capital Retained Earnings Purchase of Treasury Stock Net Income Tax Benefit ...

  • Page 20
    ... in Assets and Liabilities Inventories Accounts Payable and Accrued Expenses Income Taxes Other Assets and Liabilities Net Cash Provided by Operating Activities Investing Activities Capital Expenditures Proceeds from Maturities of Marketable Securities Purchase of Marketable Securities Collection...

  • Page 21
    ...- of average cost or market, on a first-in first-out basis, utilizing the retail 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...

  • Page 22
    ... rates. STOCK-BASED COMPENSATION The Company reports stock- sales at the time the customer takes possession of the merchandise and purchases are paid for, primarily with either cash or credit card. Catalogue and e-commerce sales are recorded upon customer receipt of merchandise. Amounts relating...

  • Page 23
    ... 3, 2002 for the Company. The standard addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The adoption of SFAS No. 144 did not have an impact on the Company's results of operations or its financial position in 2002. In November 2002, the FASB issued...

  • Page 24
    ... for the Company. The standard rescinds FASB Statements No. 4 and 64 that deal with issues relating to the extinguishment of debt. The standard also rescinds FASB Statement No. 44 that deals with intangible assets of motor carriers. The standard modifies FASB Statement No. 13, "Accounting for Leases...

  • Page 25
    ... Income taxes payable included net current deferred tax assets of $6.0 million and $4.9 million at February 1, 2003 and February 2, 2002, respectively. Under a tax sharing arrangement with The Limited, who owned 84.2% of the outstanding Common Stock through May 19, 1998, the Company was responsible...

  • Page 26
    ...for the issuance of trade letters of credit at February 2, 2002. No borrowings were outstanding under the New Credit Agreement at Februar y 1, 2003 or under the Old Credit Agreement at February 2, 2002. 9. RELATED PARTY TRANSACTIONS Shahid & Company, Inc. ments to Shahid & Company, Inc. for expense...

  • Page 27
    ... qualified plan is available to all associates who have complet- Stock and a Distribution Date will occur upon the earlier of 10 ed 1,000 or more hours of service with the Company during business days after a public announcement that a person or certain 12-month periods and attained the age of 21...

  • Page 28
    ...) MARKET PRICE INFORMATION A&F's Class A Common Stock is traded on the New York Stock Exchange under the symbol "ANF." The following is a summary of the high and low sales prices of A&F's Class A Common Stock as reported on the New York Stock Exchange for the 2002 and 2001 fiscal years: Sales Price...

  • Page 29
    ..., the financial position of Abercrombie & Fitch Co. and its subsidiaries at February 1, 2003 and February 2, 2002, and the results of their operations and their cash flows for each of the three years in the period ended February 1, 2003 in conformity with accounting principles generally accepted...

  • Page 30
    ... information, contact: Investor Relations & Corporate Communications Abercrombie & Fitch P .O. Box 182168 Columbus, Ohio 43218 You may also contact us by sending an e-mail to [email protected] or by visiting the Investor Relations section of the Company's Web site. STOCK TRANSFER...

  • Page 31
    ... R. JOHNSON Executive Vice President - Chief Operating Officer DIANE CHANG Senior Vice President - Sourcing Senior Vice President - Stores LESLEE K. O'NEILL Design: Shahid & Company Adobe® Acrobat® PDF : Kinko's On-Site Photography: Bruce Weber Printing: Superior Graphics DAVID L. LEINO Senior...

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