Abercrombie & Fitch Co. /DE/ has recently released its 10-Q report, providing an in-depth look at the company's financial health and performance. 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 brand names. It sells its products through stores, wholesale, franchise, and licensing arrangements, as well as 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" provides a detailed insight into the company's operating performance, excluding the effect of certain items that may not reflect its future outlook. The report also discusses the use of non-GAAP financial measures by management to assess performance and develop expectations for future operating performance. These measures are intended to supplement investors’ understanding of comparability of operations across periods.
One notable metric discussed in the report is comparable sales, which is defined as the year-over-year percentage change in the aggregate of net sales for stores that have been open for at least one year, along with digital net sales. This metric excludes revenue other than store and digital sales and is used to understand the drivers of year-over-year changes in net sales. The report emphasizes that comparable sales can assist investors in distinguishing the portion of the company’s revenue attributable to existing locations from the portion attributable to the opening or closing of stores.
The 10-Q report also 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. 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, are included in the report.
Additionally, the report includes discussions on EBITDA and adjusted EBITDA as supplemental measures used by the company’s executive management to assess performance and provide 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. 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, are also provided in the report.
The market has reacted to these announcements by moving the company's shares 2.02% to a price of $95.37. For the full picture, make sure to review ABERCROMBIE & FITCH CO /DE/'s 10-Q report.
