Abercrombie & Fitch Releases 10-Q Report

Abercrombie & Fitch Co. has recently released its 10-Q report, offering an insight into the company's financial condition and operational results. The company, founded in 1892 and headquartered in New Albany, Ohio, operates as an omnichannel retailer, providing a wide range of apparel, personal care products, and accessories for men, women, and kids under its various brands, including Abercrombie & Fitch, abercrombie kids, Hollister, and Gilly Hicks. Abercrombie & Fitch Co. sells its products through stores, wholesale, franchise, licensing arrangements, and e-commerce platforms.

In its "Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations," Abercrombie & Fitch Co. emphasizes the use of non-GAAP financial measures to evaluate the company's operating performance. The company provides comparable sales, which exclude revenue other than store and digital sales, to understand the year-over-year changes in net sales and distinguish revenue attributable to existing locations from that attributable to the opening or closing of stores. Abercrombie & Fitch Co. also discloses financial information on a constant currency basis to remove the impact of foreign currency exchange rate fluctuations, thus enhancing investors' understanding of underlying business trends and operating performance.

The 10-Q report also includes reconciliations of non-GAAP financial metrics on a constant currency basis to financial measures calculated and presented in accordance with GAAP for the thirteen weeks ended May 4, 2024, and April 29, 2023. For example, the report shows that net sales for the thirteen weeks ended May 4, 2024, were $1,020,730, with a 22% change from the prior year, while the gross profit, exclusive of depreciation and amortization expense, was $677,457, representing a 540 basis point change. Additionally, the report provides EBITDA and Adjusted EBITDA as supplemental measures used by the company's executive management to assess its performance, with net income for the thirteen weeks ended May 4, 2024, at $115,078, representing 11.3% of net sales.

Following these announcements, the company's shares moved -0.3%, and are now trading at a price of $175.19. If you want to know more, read the company's complete 10-Q report here.

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