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

Mar 07, 2018 • 08:30 am ET

Previous

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

Share
Close

Loading Event

Loading Transcript

Q & A
Executive
Brian P. Logan

Thank you. (Operator Instructions) And our first question comes from Paul Lejuez with Citi. Please go ahead.

Analyst
Paul Lawrence Lejuez

Hey, thanks guys. Just curious, what you're seeing in terms of the similarities and the differences on the efforts to turnaround the A&F brand versus Hollister. And then just a quick one. The performance of the flagship stores, curious, if you saw a similar improvement in those stores versus the rest of the A&F brand. Thanks.

Executive
Fran Horowitz

Good morning Paul, it's Fran. We are very excited about the progress that we made actually in both brands this year. Hollister had a very, very strong year, and A&F showed progress throughout the year, culminating in positive comps in the fourth quarter for the first time in several, several years. What we are seeing is the closer that we get to the customer, the opportunity to have our product, our voice and experience come together is working. As far as Abercrombie goes specifically, we saw lots of nice category opportunities. We saw growth across both genders, and we saw broad-based improvement across channels as well.

In the fourth quarter, we saw positive traffic and conversion growth. Those were all early indicators of what we saw at Hollister, as that opportunity -- as that journey started to happen as well. And truly, it's just a real focus on our playbook and a rigorous execution of that. And tremendous thanks to the team, to the amount of time they're spending in the stores and spending time with our customer and really understanding what they're looking for.

Analyst
Paul Lawrence Lejuez

Then the store -- was store traffic positive at A&F?

Executive
Joanne C. Crevoiserat

North America was. As I pick up the flagship comment, we did see improvement in trends in our international business, particularly our flagship stores in the A&F brand. So the traffic trends improved but remained negative. We continue to see positive conversion in those locations. We've embarked on a number of efforts to improve the performance of those stores, including making more with the traffic that we do have. We've tailored the assortments better in those locations. We've invested in the experience to allow us to drive conversion, and our focus is to integrate the digital and physical business in those markets. We've rolled out omni-channel to our international markets in 2017 and also have rolled out our loyalty programs with a focus on driving a more local, loyal customer in those stores.

Analyst
Paul Lawrence Lejuez

Great. Thank you. Good luck.

Executive
Joanne C. Crevoiserat

Thank you.

Operator
Operator

Thank you. Our next question comes from Tiffany Kanaga with Deutsche Bank.

Analyst
Tiffany Ann Kanaga

Hi, thanks for taking our question. Would you please discuss the cadence of comp sales by month in the quarter, if you can? And whether you're seeing your good fourth quarter performance extend into the first quarter at the same pace? Can we expect positive comps throughout the year as you're currently planning it? Thank you.

Executive
Joanne C. Crevoiserat

Thanks Tiffany. Yes, we were very excited to show the progress in the fourth quarter with positive comps in both brands. We don't typically comment