EX-99 3 l04104bexv99.txt EXHIBIT 99 ABERCROMBIE & FITCH REPORTS THIRD QUARTER EPS GROWTH OF 6% NEW ALBANY, Ohio / November 11, 2003 - Abercrombie & Fitch (NYSE: ANF) today reported that earnings per share on a fully diluted basis for the third quarter ended November 1, 2003 rose 6% to $0.51 versus $0.48 for the comparable period last year. Net sales for the thirteen weeks ended November 1, 2003 increased 6% to $445.0 million from $419.3 million for the thirteen weeks ended November 2, 2002. Comparable store sales decreased 9% in the quarter. Net income for the quarter increased 6% to $50.5 million compared to net income of $47.7 million for the third quarter of fiscal 2002. Mike Jeffries, Chairman and Chief Executive Officer, said, "Given the very difficult sales environment, I am pleased with our financial performance for the third quarter. Although I am optimistic about our Holiday assortment, it is very difficult at this point to predict the level of demand for the fourth quarter. However, if the third quarter sales trend continues, we are comfortable that we can report flat EPS versus last year for the fourth quarter." Abercrombie & Fitch operated a total of 651 stores at the end of the third quarter, including 170 abercrombie stores and 129 Hollister Co. stores. The Company operates e-commerce websites at www.abercrombie.com, www.abercrombiekids.com, www.hollisterco.com and publishes the A&F Quarterly. Today at 4:30 p.m. the Company will conduct a conference call. Management will discuss the Company's performance, its plans for the future and will accept questions from participants. To listen to the conference call, dial (800) 428-6675 or internationally at (706) 634-1917. To listen via the internet, go to www.abercrombie.com, select the Investor Relations page and click on Calendar of Events. Replays of the call will be available shortly after its completion. The audio replay can be accessed for two weeks following the reporting date by calling (800) 642-1687 or internationally at (706) 645-9291 followed by the conference ID number 6756018; or for 12 months by visiting the Company's website at www.abercrombie.com. # # # # For further information, call: Thomas D. Lennox Director, Investor Relations and Corporate Communications (614) 283-6751 SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this Release, the Company's Form 10-K or made by management of the Company involve risks and uncertainties, and are subject to change based on various important factors. The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: changes in consumer spending patterns, consumer preferences and overall economic conditions, the impact of competition and pricing, changes in weather patterns, political stability, currency and exchange risks and changes in existing or potential duties, tariffs or quotas, postal rate increases and charges, paper and printing costs, availability of suitable store locations at appropriate terms, ability to develop new merchandise and ability to hire and train associates. Abercrombie & Fitch Co. Condensed Consolidated Balance Sheets (in thousands)
(unaudited) ASSETS November 1, 2003 February 1, 2003 ------ ---------------- ---------------- Current Assets Cash and Equivalents $ 431,603 $ 420,063 Marketable Securities -- 10,000 Receivables 4,597 10,572 Inventories 212,291 143,306 Store Supplies 28,990 25,671 Other 23,246 19,770 ---------- ---------- Total Current Assets 700,727 629,382 Property and Equipment, Net 458,950 392,941 Other Assets 596 725 ---------- ---------- TOTAL ASSETS $1,160,273 $1,023,048 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Current Liabilities Accounts Payable $ 106,925 $ 79,291 Accrued Expenses 156,091 119,526 Income Taxes Payable 26,426 40,879 ---------- ---------- Total Current Liabilities 289,442 239,696 ---------- ---------- Long-Term Liabilities Debt -- -- Deferred Income Taxes 30,505 20,781 Other Long-Term Liabilities 19,253 13,044 ---------- ---------- Total Long-Term Liabilities 49,758 33,825 ---------- ---------- Total Shareholders' Equity 821,073 749,527 ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,160,273 $1,023,048 ========== ==========
Abercrombie & Fitch Co. Condensed Consolidated Statements of Income (Unaudited) Thirteen Weeks Ended November 1, 2003 and Thirteen Weeks Ended November 2, 2002 (in thousands except per share data)
ACTUAL ACTUAL ---------------------------- --------------------------- 2003 % of Sales 2002 % of Sales --------- ---------- --------- ---------- Net Sales $ 444,979 100.0% $ 419,329 100.0% --------- ----- --------- ----- Gross Income 183,865 41.3% 166,736 39.8% Gen'l, Admin. & Store Oper. Exp 102,415 23.0% 90,304 21.5% --------- ----- --------- ----- Operating Income 81,450 18.3% 76,432 18.2% Interest Income, Net (757) -0.2% (866) -0.2% --------- ----- --------- ----- Income Before Income Taxes 82,207 18.5% 77,298 18.4% Income Tax Expense 31,750 7.1% 29,610 7.1% Effective Rate 38.6% 38.3% --------- --------- Net Income $ 50,457 11.3% $ 47,688 11.4% ========= ===== ========= ===== Net Income Per Share: Basic $ 0.52 $ 0.49 Diluted $ 0.51 $ 0.48
Abercrombie & Fitch Co. Condensed Consolidated Statements of Income (Unaudited) Thirty-nine Weeks Ended November 1, 2003 and Thirty-nine Weeks Ended November 2, 2002 (in thousands except per share data)
ACTUAL ACTUAL ---------------------------- --------------------------- 2003 % of Sales 2002 % of Sales --------- ---------- --------- ---------- Net Sales $ 1,147,421 100.0% $ 1,061,274 100.0% ----------- ----- ----------- ----- Gross Income 456,386 39.8% 413,040 38.9% Gen'l, Admin. & Store Oper. Exp 279,030 24.3% 250,049 23.6% ----------- ----- ----------- ----- Operating Income 177,356 15.5% 162,991 15.4% Interest Income, Net (2,610) -0.2% (2,468) -0.2% ----------- ----- ----------- ----- Income Before Income Taxes 179,966 15.7% 165,459 15.6% Income Tax Expense 69,140 6.0% 63,340 6.0% Effective Rate 38.4% 38.3% ----------- ----------- Net Income $ 110,826 9.7% $ 102,119 9.6% =========== ===== =========== ===== Net Income Per Share: Basic $ 1.14 $ 1.04 Diluted $ 1.11 $ 1.01