Abercrombie & Fitch Co. /DE/ recently released its 10-Q report, providing a comprehensive overview of its financial condition and operating results. The company, founded in 1892 and headquartered in New Albany, Ohio, operates as an omnichannel retailer offering a wide range of apparel, personal care products, and accessories for men, women, and kids under various brands such as Abercrombie & Fitch, abercrombie kids, Your Personal Best, Hollister, and Gilly Hicks. Its distribution channels include stores, wholesale, franchise, licensing arrangements, and e-commerce platforms.
In the 10-Q report, Abercrombie & Fitch Co. emphasizes the significance 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 highlights the use of non-GAAP financial measures by management to assess performance and develop expectations for future operating performance. These non-GAAP financial measures are used to evaluate the company's performance, excluding certain items that may not reflect its future operating outlook, thereby supplementing investors’ understanding of comparability of operations across periods.
One of the key metrics discussed in the report is comparable sales, defined as the year-over-year percentage change in the aggregate of net sales for stores that have been open as the same brand for at least one year, as well as digital net sales. Abercrombie & Fitch Co. uses comparable sales to understand the drivers of year-over-year changes in net sales and believes it can be a useful metric for 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 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. This 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 and twenty-six weeks ended August 2, 2025, and August 3, 2024.
Furthermore, Abercrombie & Fitch Co. provides EBITDA and adjusted EBITDA as supplemental measures used by the company’s executive management to assess its performance. The report includes a reconciliation of non-GAAP EBITDA to net income, a financial measure calculated and presented in accordance with GAAP, for the thirteen and twenty-six weeks ended August 2, 2025, and August 3, 2024, highlighting the adjustments made in calculating adjusted EBITDA.
Following these announcements, the company's shares moved 2.02%, and are now trading at a price of $95.37. For more information, read the company's full 10-Q submission here.
