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8-K - FORM 8-K - ABERCROMBIE & FITCH CO /DE/ | c94415e8vk.htm |
EX-99.1 - EXHIBIT 99.1 - ABERCROMBIE & FITCH CO /DE/ | c94415exv99w1.htm |
Exhibit 99.2
Abercrombie & Fitch
December 2009 Sales Release
Call Script
December 2009 Sales Release
Call Script
This is Eric Cerny, Manager of Investor Relations for Abercrombie & Fitch. The following is a
summary of our sales results for the fiscal month ended January 2, 2010.
Before I begin, I remind you that any forward-looking statements I may make are subject to the Safe
Harbor Statement found in our SEC filings.
Net sales for the five-week period ended January 2, 2010, were $482.5 million, an 11% decrease from
net sales of $539.2 million for the five-week period ended January 3, 2009. Total Company
direct-to-consumer net merchandise sales were $44.0 million for the five-week period ended January
2, 2010, a 4% decrease from sales for the five-week period ended January 3, 2009. December
comparable store sales decreased 19%.
During fiscal November and December, the Company conducted special events in most of its North
American stores and direct-to-consumer channels in which complimentary gift cards, with a January
30, 2010 expiration, were issued to customers who made purchases above defined amounts. The value
of these gift cards issued but not redeemed has been deducted from
reported sales for the applicable month. The cumulative face value of gift cards issued in
connection with these special events, but not yet redeemed as of the end of fiscal December, was
approximately $22 million.
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Abercrombie & Fitch
December 2009 Sales Release
Call Script
December 2009 Sales Release
Call Script
For returns associated with transactions in which a gift card was issued, the Companys practice to
date has been to honor the gift card, even where the return has resulted in an overall transaction
value below the threshold amount. The Company believes that the value of gift cards issued where a
customer purchased merchandise with the intent to return it and retain the gift card is not
significant. The Company will continue to monitor returns closely through the end of the program.
For the month of December, comparable store sales were considerably stronger in week 5 than the
weeks leading up to Christmas and this trend has continued into January.
By brand, Abercrombie & Fitch comparable store sales were down 13%. Mens comps were down by a high
single digit; womens comps were down by a high-teen. Transactions per average store decreased 5%;
average transaction value decreased 1%. During fiscal December, Abercrombie &
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Abercrombie & Fitch
December 2009 Sales Release
Call Script
December 2009 Sales Release
Call Script
Fitch ran the following special events... Receive a $25 gift card for every $100 purchase in
stores through December 23, 2009; Winter sale and Clearance from December 24, inclusive of 40%
off all denim and fleece December 24, 2009 December 30, 2009; Complimentary shipping for
domestic direct-to-consumer purchases of $175 and above from December 3, 2009 December 6, 2009;
and Receive a $50 gift card for every $200 purchase on-line from December 8, 2009 December 23,
2009.
For abercrombie, comparable store sales were down 15%. Guys comps were down by a low double digit;
girls comps were down by a mid-teen. Transactions per average store decreased 4%; average
transaction value decreased 7%. During fiscal December, abercrombie ran the following special
events... Receive a $25 gift card for every $100 purchase in stores through December 23, 2009;
Winter sale and clearance from December 24, inclusive of 40% off all denim and fleece December
24, 2009 December 30, 2009; Complimentary shipping for domestic direct-to-consumer purchases of
$175 and above from December 3, 2009 December 6, 2009; and Receive a $50 gift card for every
$200 purchase on-line from December 8, 2009 December 23, 2009.
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Abercrombie & Fitch
December 2009 Sales Release
Call Script
December 2009 Sales Release
Call Script
Hollister comparable store sales were down 25%. Dudes comps were down by a mid-teen; Bettys comps
were down by a high twenty. Transactions per average store decreased 4%; average transaction value
decreased 14%. During fiscal December, Hollister ran the following special events... Receive a
$25 gift card for every $75 purchase in stores from December 5, 2009 December 23, 2009; Buy
one top, get the second top 50%off in stores through December 10, 2009; Friends with Benefits 20%
off purchase from December 22, 2009 December 23, 2009; Winter sale and clearance from
December 24, inclusive of 50% off all denim and fleece December 24, 2009 December 30, 2009;
Complimentary shipping for domestic direct-to-consumer purchases of $125 and above from December 3,
2009 December 6, 2009; and Receive a $50 gift card for every $150 purchase on-line from
December 8, 2009 December 23, 2009.
RUEHL comparable store sales were down 1%. Mens comps were up by a low single digit; womens
comps were down by a low single digit. Transactions per average store increased 13%; average
transaction value decreased 9%. During fiscal December, RUEHL began product liquidation as a result
of actions taken to exit the business by the end of fiscal 2009.
Across all brands, average unit retail decreased 14%.
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Abercrombie & Fitch
December 2009 Sales Release
Call Script
December 2009 Sales Release
Call Script
From a merchandise classification standpoint across all brands, wovens and fragrance were stronger
categories for mens, while knits and fleece were weaker categories. For womens, woven shirts and
pants were stronger categories while sweaters and knit tops were weaker categories.
Regionally, comparable store sales were down in all US regions and Canada. Comparable store sales
were positive in the U.K., for both Hollister and Abercrombie & Fitch.
Based on its initial analysis, the Company expects that its fiscal year-end review of long-lived,
store related assets will result in a non-cash impairment charge in the fourth quarter.
The Company will report January sales results on Thursday, February 4, 2010 and fourth quarter
earnings on Tuesday, February 16, 2010.
Thank You.
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