ANF - Abercrombie & Fitch Co. (ANF) Q4 2024 Earnings Call Transcript

2024-03-06 11:35:30 ET

Abercrombie & Fitch Co. (ANF)

Q4 2024 Earnings Conference Call

March 06, 2024 08:30 AM ET

Company Participants

Mohit Gupta - IR

Fran Horowitz - CEO

Scott Lipesky - CFO, COO

Conference Call Participants

Dana Telsey - Telsey Advisory Group

Corey Tarlowe - Jefferies

Matthew Boss - JP Morgan

Marni Shapiro - The Retail Tracker

Alex Straton - Morgan Stanley

Mauricio Serna - UBS

Kelly Crago - Citi

Janet Kloppenburg - JJK Research

Dylan Carden - William Blair

Presentation

Operator

Good day, and thank you for standing by. Welcome to the Abercrombie & Fitch Fourth Quarter Fiscal Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today Mo Gupta, Vice President of Investor Relations. Please go ahead.

Mohit Gupta

Thank you. Good morning, and welcome to our Fourth Quarter 2023 Earnings Call. Joining me today on the call are Fran Horowitz, Chief Executive Officer and Scott Lipesky, Chief Financial Officer and Chief Operating Officer. Earlier this morning, we issued our fourth-quarter earnings release, which is available on our website at corporate.abercrombie.com under the Investors section. Also available on our website is an investor presentation.

Please keep in mind that we will make certain forward-looking statements on the call. These statements are subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions we mention today. These factors and uncertainties are discussed in our reports and filings with the Securities and Exchange Commission.

In addition, we will be referring to certain non-GAAP financial measures during the call. Additional details and reconciliations of GAAP to adjusted non-GAAP financial measures are included in the release and the investor presentation issued earlier this morning. Finally, references to Abercrombie brands include Abercrombie & Fitch and Abercrombie Kids and references to Hollister brands include Hollister and Gilly Hicks.

With that, I will turn the call over to Fran.

Fran Horowitz

Good morning, and thank you for joining us to discuss our Fourth Quarter and Full Year Results. Since our business update in early January, we had a strong final month of the year leading fourth quarter sales and operating margin above the high end of our outlook. From start to finish, 2023 was a defining year for our company. We saw top-line growth across regions and brands resulting in sales of $4.28 billion, up 15.8% to 2022 and our second-highest annual sales level in our history. On profitability, we achieved an operating margin of 11.3%, our best in 15 years....

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