Abercrombie & Fitch Co. has recently released its 10-Q report, providing a detailed look into its financial performance and operations. The company operates as an omnichannel retailer, offering a range of apparel, personal care products, and accessories for men, women, and kids under various brands. It operates through stores, wholesale, franchise, licensing arrangements, and e-commerce platforms.
The "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section in the 10-Q provides insights into the company's operating performance, excluding the effect of certain items that may not reflect its future outlook, such as asset impairment charges. Management used non-GAAP financial measures to assess the company’s performance and develop expectations for future operating performance. The report also discusses comparable sales, which is the year-over-year percentage change in net sales for existing stores and digital sales, excluding other revenue.
The 10-Q also includes financial information on a constant currency basis, which removes the impact of foreign currency exchange rate fluctuations. This allows for a better understanding of underlying business trends and operating performance. The report provides reconciliations of non-GAAP financial metrics on a constant currency basis to financial measures calculated and presented in accordance with GAAP for specific periods.
Additionally, the report presents EBITDA and Adjusted EBITDA as supplemental measures used by the company's executive management to assess performance. These measures are considered meaningful information for investors to compute the company's core financial performance over multiple periods and with other companies by excluding the impact of differences in tax jurisdictions, debt service levels, and capital investment. The 10-Q provides reconciliations of non-GAAP EBITDA and adjusted EBITDA to financial measures calculated and presented in accordance with GAAP for specific periods. As a result of these announcements, the company's shares have moved 0.9% on the market, and are now trading at a price of $151.35. For more information, read the company's full 10-Q submission here.
