Abercrombie & Fitch 2003 Annual Report Download

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Table of contents

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    Abercrombie & Fitch

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    ... About Market Risk 21 Consolidated Statements of Income 22 Consolidated Balance Sheets 23 Consolidated Statements of Shareholders' Equity 24 Consolidated Statements of Cash F lows 25 Notes to Consolidated Financial Statements 26 Report of Independent Auditors 36 Corporate Information 37...

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    ...buyback expenditure, the opening of 107 new stores and a home office expansion, we continued to increase our cash balance, reaching over $500 million at year-end. Based on this level of financial strength, the Board of Directors approved the initiation of a $0.50 per share annual cash dividend. T he...

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    ...in-store, we have added lifestyle only direct mail and national magazine lifestyle advertising for the Abercrombie & Fitch brand. Our advertising will be young, fun, sexy and continue to represent aspirational college life. We continued to grow our business rapidly in 2003, increasing square footage...

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    ... 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...

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    ... 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...

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    ... 113% of the sales per square foot of Abercrombie & Fitch stores in the same malls. For the 2003 fiscal year, e-commerce sales grew by approximately 39% compared to the 2002 fiscal year. T he Company's catalogue, the A&F Quarterly , and the Company's Web sites represented 5.3% of net sales for the...

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    ... perform well. For the 2002 fiscal year, sales per square foot in Hollister stores were approximately 86% of the sales per square foot of Abercrombie & Fitch stores in the same malls. T he Company's catalogue, the A&F Quarterly and the Company's Web sites represented 4.7% of the 2002 fiscal year net...

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    ... offset by lower bonuses and efficiencies in store operations, distribution center operations and the direct to consumer business. During the fourth quarter of the 2003 fiscal year, store payroll hours were reduced by 2% per average Abercrombie & Fitch adult store and wages, in all three concepts...

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    ... year with 20% fewer labor hours. Costs related to the distribution center, excluding direct shipping costs related to the e-commerce and catalogue sales, included in general, administrative and store operating expenses were $4.9 income for the fourth quarter of the 2003 fiscal year increased to...

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    ... $35 million invested in the completion of the home office expansion, improvements in the distribution center and information technology expenditures for a new point-of-sale system. T his system was completely rolled-out to all stores during the third quarter of the 2003 fiscal year. 17

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    ... to $95.0 million will be for new/ remodel store construction. T he balance of the capital expenditures will primarily relate to home office and distribution center projects and other miscellaneous projects. T he Company intends to add approximately 745,000 gross square feet in the 2004 fiscal year...

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    ... or credit card. Catalogue and e-commerce sales are recorded upon customer receipt of merchandise. Amounts relating to shipping and handling billed to customers in a sale transaction are classified as revenue and the direct shipping costs are classified as cost of goods sold. Employee discounts are...

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    ..., the claims-made insurance policy should be accounted for entirely as a retroactive contract. T his consensus was effective for new insurance contracts entered into beginning with the third quarter of the 2003 fiscal year. T he Company has evaluated the impact of this issue and concluded that there...

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    ... he Company's results of operations â- â- â- â- â- â- â- â- â- â- â- operates, including, but not limited to, acts of terrorism or war; the impact of competition and pricing; changes in weather patterns; postal rate increases and changes; paper and printing costs; market price...

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    Abercrombie & Fitch CONSOL IDAT E D STAT E ME NT S 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 ...

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    ...306 25,671 19,770 629,382 392,941 725 $1,023,048 Current Liabilities Accounts Payable and Outstanding Checks Accrued Expenses Income Taxes Payable Total Current Liabilities Deferred Income Taxes Other Long-Term Liabilities Shareholders' Equity $0 91,364 138,232 50,406 280,002 19,516 28,388 $ 79...

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    Abercrombie & Fitch CONSOL IDAT E D STAT E ME NT S OF SH ARE H OL DE RS' E QU IT Y Common Stock Treasury Stock Total Shareholders' Equity ( Thousands) Shares Outstanding Par Value Paid-In Capital Retained Earnings Shares At Average Cost Balance, February 3, 2001 98,796 (600) - - 677 98,...

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

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    ... excess of fair market rent over contractual rent of existing stores as of the 1988 purchase of the Abercrombie & Fitch business by T he Limited, Inc. (now known as Limited Brands, Inc., "T he Limited") and are being amortized over the lives of the related leases. T he cost of assets sold or retired...

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    ... credit card. Catalogue and e-commerce sales are recorded upon customer receipt of merchandise. Amounts relating to shipping and handling billed to customers in a sale transaction are classified as revenue and the related direct shipping costs are classified as cost of goods sold. Employee discounts...

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    Abercrombie & Fitch intrinsic value method in accordance with Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees." Accordingly , no compensation expense for options has been recognized as all options are granted at fair market value at the grant date. T he Company...

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    ..., the claims-made insurance policy should be accounted for entirely as a retroactive contract. T his consensus was effective for new insurance contracts entered into beginning with the third quarter of fiscal 2003. T he Company has evaluated the impact of this issue and concluded that there...

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    ... Accrued expenses consisted of the follow- ing (thousands): 2003 2002 Accrual for construction in progress Current portion of unredeemed gift card revenue Rent and landlord charges Compensation and benefits Catalogue and advertising costs Legal Store accruals Other Total $31,269 20,417 17,689...

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    ...Credit Agreement contains limitations on indebtedness, liens, sale-leaseback transactions, significant corporate changes including mergers and acquisitions has provided advertising and design services for the Company...stock at the market price on the date of grant. In 2003, associates of the Company ...

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    ...' laws on behalf of purported classes of employees and former employees of the Company alleging that the Company required its associates to wear and pay for a "uniform" in violation of applicable law . Two of the actions have been ordered coordinated. In each case, the plaintiff, on behalf of his or...

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    ... Preferred Stock at an initial exercise price of $250. T he Rights initially will be attached to the shares of Common Stock. T he Rights will separate from the Common Stock and a Distribution Date will occur upon the earlier of 10 business days after a public announcement that a person or group has...

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    ...is traded on the New Y ork Stock Exchange under the symbol " ANF." T he following is a summary of the high and low sales prices of A&F's Class A Common Stock as reported on the New Y ork Stock Exchange for the 2003 and 2002 fiscal years: Sales Price High 2003 Fiscal Year 4th Quarter 3rd Quarter 2nd...

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    Abercrombie & Fitch RE PORT OF INDE PE NDE NT AU DIT ORS T O T H E BOARD OF DIRE CT ORS AND SH ARE H OL DE RS OF ABE RCROMBIE & F IT CH CO.: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, shareholders' equity and cash flows present ...

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    ... Ohio 43054 (614) 283-6500 www .abercrombie.com ANNUAL MEET ING T he Annual Meeting of Shareholders is scheduled for 10:00 A.M., T hursday , May 20, 2004 at Abercrombie & Fitch Headquarters, 6301 Fitch Path, New Albany , Ohio 43054. ST OCK EXCHANGE LIST ING New York Stock Exchange (Trading Symbol...

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    ... JOHN A. GOLDEN President, John A. Golden Associates, Inc. ARCHIE M. GRIF F IN President and Chief Executive Officer, T he Ohio State University Alumni Association, Inc. SET H R. JOHNSON Executive Vice President - Chief Operating Officer JOHN W. KESSLER Chairman, T he New Albany Company EDWARD...

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