Abercrombie & Fitch Co. /DE/ has recently released its 10-Q report, providing an insight into the company's financial performance. The company operates as an omnichannel retailer, offering a wide range of apparel, personal care products, and accessories for men, women, and kids under various brands. It sells its products through stores, wholesale, franchise, licensing arrangements, and e-commerce platforms. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio.
In the 10-Q report, Item 2, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," the company highlights the use of non-GAAP financial measures to assess its performance and develop expectations for future operating performance. It emphasizes the importance of comparable sales, which are defined as the year-over-year percentage change in net sales for stores and digital sales. Management uses this metric to understand the drivers of year-over-year changes in net sales and believes it can assist investors in distinguishing the revenue attributable to existing locations from the portion attributable to the opening or closing of stores.
Additionally, the report provides financial information on a constant currency basis to enhance investors' understanding of underlying business trends and operating performance by removing the impact of foreign currency exchange rate fluctuations. The company also presents EBITDA (earnings before interest, taxes, depreciation, and amortization) as a supplemental measure used by executive management to assess its performance and believes it provides meaningful information for investors to compute the company's core financial performance over multiple periods and with other companies.
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 3, 2025, and May 4, 2024. These reconciliations provide a clear comparison between the company's reported financial results and the adjusted non-GAAP measures, offering investors a comprehensive view of the company's financial performance.
The market has reacted to these announcements by moving the company's shares 4.36% to a price of $82.99. For more information, read the company's full 10-Q submission here.
