Abercrombie & Fitch Co. /DE/ recently released its 10-Q report, providing insights into the company's financial performance and operations. 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, including Abercrombie & Fitch, abercrombie kids, Your Personal Best, Hollister, and Gilly Hicks. It conducts its sales through stores, wholesale, franchise, licensing arrangements, and e-commerce platforms.
In its 10-Q report, Abercrombie & Fitch Co. highlighted the usefulness of "Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations" in providing investors with a meaningful basis to evaluate the company’s operating performance. The report emphasizes the importance of non-GAAP financial measures in assessing the company's performance and developing expectations for future operating performance. The company uses comparable sales to understand year-over-year changes in net sales and believes it to be a useful metric for investors in distinguishing existing locations' revenue from the opening or closing of stores.
The 10-Q report also includes financial information on a constant currency basis to enhance 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 for the thirteen and twenty-six weeks ended August 2, 2025, and August 3, 2024, were provided.
Additionally, the report provides 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 and other interested parties to use in computing 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 report includes a reconciliation of non-GAAP EBITDA to net income and the adjustments made in calculating adjusted EBITDA for the thirteen and twenty-six weeks ended August 2, 2025, and August 3, 2024. The market has reacted to these announcements by moving the company's shares 0.98% to a price of $94.40. Check out the company's full 10-Q submission here.
