Abercrombie & Fitch Co. /DE/ has recently released its 10-Q report, providing a detailed overview of its financial performance and operations. The company operates as an omnichannel retailer across various regions, offering a range of apparel, personal care products, and accessories for men, women, and kids under multiple brands. It conducts sales 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 its 10-Q report, Abercrombie & Fitch Co. emphasized the significance of "Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations" as a tool for investors to evaluate the company's operating performance. The report highlighted the use of non-GAAP financial measures to assess the company's performance and expectations for future operating performance, excluding certain items that may not reflect its future operating outlook, such as asset impairment charges.
The report also detailed the company's use of comparable sales to understand year-over-year changes in net sales, excluding revenue other than store and digital sales. Management believes that comparable sales can help investors distinguish the revenue attributable to existing locations from the portion attributable to the opening or closing of stores.
Additionally, Abercrombie & Fitch Co. provided 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. Reconciliations of non-GAAP financial metrics on a constant currency basis to financial measures calculated and presented in accordance with GAAP were also included in the report.
Furthermore, the company presented EBITDA as a supplemental measure used by its executive management to assess performance. This measure was also deemed meaningful for investors and other interested parties 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 report provided a reconciliation of non-GAAP EBITDA to net income for the respective periods, offering a comprehensive view of the company's financial performance for the thirteen weeks ended May 3, 2025, and May 4, 2024. The market has reacted to these announcements by moving the company's shares 4.36% to a price of $82.99. Check out the company's full 10-Q submission here.
