Abercrombie & Fitch Co. (NYSE:ANF) Q4 2017 Earnings Conference Call - Final Transcript

Mar 07, 2018 • 08:30 am ET


Abercrombie & Fitch Co. (NYSE:ANF) Q4 2017 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Abercrombie & Fitch Fourth Quarter Fiscal Year 2017 Earnings Call. Today's conference is being recorded. (Operator Instructions) At this time, I'd like to turn the conference over to Brian Logan. Mr. Logan, please go ahead.

Brian P. Logan

Thank you. Good morning, and welcome to our 2017 fourth quarter earnings call. Earlier this morning, we released our fourth quarter and full year sales and earnings, income statement, balance sheet, store opening and closing summary and an updated financial history. Please feel free to reference these materials, which are available on our website. Also available on our website is an investor presentation, which we will be referring to in our comments during this call.

Today's earnings call is being recorded, and the replay may be accessed at abercrombie.com under the Investors section. Joining me today are Fran Horowitz, Chief Executive Officer; Joanne Crevoiserat, Chief Operating Officer; and Scott Lipesky, Chief Financial Officer.

Before we begin, I remind you that any forward-looking statements we make today are subject to our safe harbor statement found in our SEC filings. In addition, we will be referring to certain adjusted non-GAAP financial measures during the call. Additional details and a reconciliation of GAAP to non-GAAP financial measures are included in the release issued earlier this morning.

With that, I turn the call over to Fran.

Fran Horowitz

Thanks, Brian. Good morning, everyone, and thank you for joining us today. I am delighted to report another quarter of meaningful progress across all our brands. The continued execution of our strategic plan throughout the year culminated in positive comparable sales in the fourth quarter across brands, channels and geographies and is thus (ph) exceeding our expectations for the business.

Putting our customers at the center of everything we do remains our north star. That is reflected in our people, our processes and our product, and we have seen that continuing to translate into positive overall traffic and conversion trends. Coupled with a well-embedded and disciplined approach to expense management, we delivered on both the top and bottom line, while maintaining strategic investments in marketing, DTC, omnichannel and loyalty.

Looking back over 2017, it has been a year of significant progress, several years in the making, with many important milestones achieved. Some of the year's highlights included, Hollister passed the $2 billion mark in sales, Abercrombie returned to positive comparable sales in the fourth quarter, we saw record digital sales across all brands, we've launched A&F on Tmall to a strong response, we've rolled out the first new A&F prototype stores in 15 years, we've launched the A&F Club loyalty program, we've rolled out loyalty programs in Europe across brands with more than 14 million worldwide members at year's end, we received feedback and insights from more than 1 million customers through focus groups, voice of customer engagement and surveys and our brand health and our customer satisfaction scores improved across brands.

Overall, a busy and productive year. We achieved what we set out to do at the