falsedesktopANF2020-10-31000101884020000094{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Delaware\t\t\t\t31-1469076\n(State or other jurisdiction of incorporation or organization)\t\t\t\t(I.R.S. Employer Identification No.)\n6301 Fitch Path\tNew Albany\tOhio\t\t43054\n(Address of principal executive offices)\t\t\t\t(Zip Code)\nRegistrant's telephone number including area code:\t\t\t(614)\t283-6500\n", "q10k_tbl_1": "PART I. FINANCIAL INFORMATION\t\t\nItem 1.\tFinancial Statements (Unaudited)\t\n\tCondensed Consolidated Statements of Operations and Comprehensive Income (Loss)\t3\n\tCondensed Consolidated Balance Sheets\t4\n\tCondensed Consolidated Statements of Stockholders' Equity\t5\n\tCondensed Consolidated Statements of Cash Flows\t7\n\tIndex for Notes to Condensed Consolidated Financial Statements\t8\n\tNotes to Condensed Consolidated Financial Statements\t9\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t25\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t44\nItem 4.\tControls and Procedures\t45\nPART II. OTHER INFORMATION\t\t\nItem 1.\tLegal Proceedings\t46\nItem 1A.\tRisk Factors\t46\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t47\nItem 6.\tExhibits\t48\n\tSignatures\t49\n", "q10k_tbl_2": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nNet sales\t819653\t863472\t2003340\t2438522\nCost of sales exclusive of depreciation and amortization\t295220\t344541\t791154\t976868\nGross profit\t524433\t518931\t1212186\t1461654\nStores and distribution expense\t346263\t377697\t978757\t1110656\nMarketing general and administrative expense\t121000\t114075\t326509\t341716\nFlagship store exit (benefits) charges\t(8063)\t285\t(12490)\t47023\nAsset impairment exclusive of flagship store exit charges\t6329\t12610\t57340\t14987\nOther operating loss (income) net\t288\t(215)\t(1562)\t(465)\nOperating income (loss)\t58616\t14479\t(136368)\t(52263)\nInterest expense net\t8808\t2922\t19277\t4908\nIncome (loss) before income taxes\t49808\t11557\t(155645)\t(57171)\nIncome tax expense (benefit)\t5779\t3987\t38565\t(16931)\nNet income (loss)\t44029\t7570\t(194210)\t(40240)\nLess: Net income attributable to noncontrolling interests\t1758\t1047\t2203\t3534\nNet income (loss) attributable to A&F\t42271\t6523\t(196413)\t(43774)\nNet income (loss) per share attributable to A&F\t\t\t\t\nBasic\t0.68\t0.10\t(3.14)\t(0.67)\nDiluted\t0.66\t0.10\t(3.14)\t(0.67)\nWeighted-average shares outstanding\t\t\t\t\nBasic\t62558\t63099\t62541\t64932\nDiluted\t63877\t63911\t62541\t64932\nOther comprehensive (loss) income\t\t\t\t\nForeign currency translation net of tax\t2142\t1355\t5477\t(5219)\nDerivative financial instruments net of tax\t(5234)\t(3654)\t1224\t(574)\nOther comprehensive (loss) income\t(3092)\t(2299)\t6701\t(5793)\nComprehensive income (loss)\t40937\t5271\t(187509)\t(46033)\nLess: Comprehensive income attributable to noncontrolling interests\t1758\t1047\t2203\t3534\nComprehensive income (loss) attributable to A&F\t39179\t4224\t(189712)\t(49567)\n", "q10k_tbl_3": "\tOctober 31 2020\tFebruary 1 2020\nAssets\t\t\nCurrent assets:\t\t\nCash and equivalents\t812881\t671267\nReceivables\t89074\t80251\nInventories\t545548\t434326\nOther current assets\t73776\t78905\nTotal current assets\t1521279\t1264749\nProperty and equipment net\t593932\t665290\nOperating lease right-of-use assets\t955781\t1230954\nOther assets\t205970\t388672\nTotal assets\t3276962\t3549665\nLiabilities and stockholders' equity\t\t\nCurrent liabilities:\t\t\nAccounts payable\t334775\t219919\nAccrued expenses\t356370\t302214\nShort-term portion of operating lease liabilities\t255775\t282829\nIncome taxes payable\t6663\t10392\nTotal current liabilities\t953583\t815354\nLong-term liabilities:\t\t\nLong-term portion of operating lease liabilities\t1010051\t1252634\nLong-term borrowings net\t343559\t231963\nOther liabilities\t110965\t178536\nTotal long-term liabilities\t1464575\t1663133\nStockholders' equity\t\t\nClass A Common Stock - $0.01 par value: 150000 shares authorized and 103300 shares issued for all periods presented\t1033\t1033\nPaid-in capital\t396505\t404983\nRetained earnings\t2067521\t2313745\nAccumulated other comprehensive loss net of tax (\"AOCL\")\t(102185)\t(108886)\nTreasury stock at average cost: 40916 and 40514 shares as of October 31 2020 and February 1 2020 respectively\t(1513495)\t(1552065)\nTotal Abercrombie & Fitch Co. stockholders' equity\t849379\t1058810\nNoncontrolling interests\t9425\t12368\nTotal stockholders' equity\t858804\t1071178\nTotal liabilities and stockholders' equity\t3276962\t3549665\n", "q10k_tbl_4": "\tThirteen Weeks Ended October 31 2020\t\t\t\t\t\t\t\t\n\tCommon Stock\t\tPaid-in capital\tNon-controlling interests\tRetained earnings\tAOCL\tTreasury stock\t\tTotal stockholders' equity\n\tShares outstanding\tPar value\tShares\tAt average cost\nBalance August 1 2020\t62365\t1033\t392272\t7929\t2025911\t(99093)\t40935\t(1514442)\t813610\nNet income\t0\t0\t0\t1758\t42271\t0\t0\t0\t44029\nShare-based compensation issuances and exercises\t19\t0\t(436)\t0\t(661)\t0\t(19)\t947\t(150)\nShare-based compensation expense\t0\t0\t4669\t0\t0\t0\t0\t0\t4669\nDerivative financial instruments net of tax\t0\t0\t0\t0\t0\t(5234)\t0\t0\t(5234)\nForeign currency translation adjustments net of tax\t0\t0\t0\t0\t0\t2142\t0\t0\t2142\nDistributions to noncontrolling interests net\t0\t0\t0\t(262)\t0\t0\t0\t0\t(262)\nEnding balance at October 31 2020\t62384\t1033\t396505\t9425\t2067521\t(102185)\t40916\t(1513495)\t858804\n\tThirteen Weeks Ended November 2 2019\t\t\t\t\t\t\t\t\n\tCommon Stock\t\tPaid-in capital\tNon-controlling interests\tRetained earnings\tAOCL\tTreasury stock\t\tTotal stockholders' equity\n\tShares outstanding\tPar value\tShares\tAt average cost\nBalance August 3 2019\t63146\t1033\t394694\t11318\t2251032\t(105946)\t40154\t(1548836)\t1003295\nNet income\t0\t0\t0\t1047\t6523\t0\t0\t0\t7570\nPurchase of Common Stock\t(412)\t0\t0\t0\t0\t0\t412\t(5730)\t(5730)\nDividends ($0.20 per share)\t0\t0\t0\t0\t(12574)\t0\t0\t0\t(12574)\nShare-based compensation issuances and exercises\t23\t0\t(509)\t0\t(831)\t0\t(23)\t1159\t(181)\nShare-based compensation expense\t0\t0\t5796\t0\t0\t0\t0\t0\t5796\nDerivative financial instruments net of tax\t0\t0\t0\t0\t0\t(3654)\t0\t0\t(3654)\nForeign currency translation adjustments net of tax\t0\t0\t0\t0\t0\t1355\t0\t0\t1355\nDistributions to noncontrolling interests net\t0\t0\t0\t(1511)\t0\t0\t0\t0\t(1511)\nEnding balance at November 2 2019\t62757\t1033\t399981\t10854\t2244150\t(108245)\t40543\t(1553407)\t994366\n", "q10k_tbl_5": "\tThirty-nine Weeks Ended October 31 2020\t\t\t\t\t\t\t\t\n\tCommon Stock\t\tPaid-in capital\tNon-controlling interests\tRetained earnings\tAOCL\tTreasury stock\t\tTotal stockholders' equity\n\tShares outstanding\tPar value\tShares\tAt average cost\nBalance February 1 2020\t62786\t1033\t404983\t12368\t2313745\t(108886)\t40514\t(1552065)\t1071178\nNet loss\t0\t0\t0\t2203\t(196413)\t0\t0\t0\t(194210)\nPurchase of Common Stock\t(1397)\t0\t0\t0\t0\t0\t1397\t(15172)\t(15172)\nDividends ($0.20 per share)\t0\t0\t0\t0\t(12556)\t0\t0\t0\t(12556)\nShare-based compensation issuances and exercises\t995\t0\t(22053)\t0\t(37255)\t0\t(995)\t53742\t(5566)\nShare-based compensation expense\t0\t0\t13575\t0\t0\t0\t0\t0\t13575\nDerivative financial instruments net of tax\t0\t0\t0\t0\t0\t1224\t0\t0\t1224\nForeign currency translation adjustments net of tax\t0\t0\t0\t0\t0\t5477\t0\t0\t5477\nDistributions to noncontrolling interests net\t0\t0\t0\t(5146)\t0\t0\t0\t0\t(5146)\nEnding balance at October 31 2020\t62384\t1033\t396505\t9425\t2067521\t(102185)\t40916\t(1513495)\t858804\n\tThirty-nine Weeks Ended November 2 2019\t\t\t\t\t\t\t\t\n\tCommon Stock\t\tPaid-in capital\tNon-controlling interests\tRetained earnings\tAOCL\tTreasury stock\t\tTotal stockholders' equity\n\tShares outstanding\tPar value\tShares\tAt average cost\nBalance February 2 2019\t66227\t1033\t405379\t9721\t2418544\t(102452)\t37073\t(1513604)\t1218621\nImpact from adoption of the new lease accounting standard\t0\t0\t0\t0\t(75165)\t0\t0\t0\t(75165)\nNet loss\t0\t0\t0\t3534\t(43774)\t0\t0\t0\t(40240)\nPurchase of Common Stock\t(3957)\t0\t0\t0\t0\t0\t3957\t(63542)\t(63542)\nDividends ($0.60 per share)\t0\t0\t0\t0\t(38959)\t0\t0\t0\t(38959)\nShare-based compensation issuances and exercises\t487\t0\t(13862)\t0\t(16496)\t0\t(487)\t23739\t(6619)\nShare-based compensation expense\t0\t0\t8464\t0\t0\t0\t0\t0\t8464\nDerivative financial instruments net of tax\t0\t0\t0\t0\t0\t(574)\t0\t0\t(574)\nForeign currency translation adjustments net of tax\t0\t0\t0\t0\t0\t(5219)\t0\t0\t(5219)\nDistributions to noncontrolling interests net\t0\t0\t0\t(2401)\t0\t0\t0\t0\t(2401)\nEnding balance at November 2 2019\t62757\t1033\t399981\t10854\t2244150\t(108245)\t40543\t(1553407)\t994366\n", "q10k_tbl_6": "\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\nOperating activities\t\t\nNet loss\t(194210)\t(40240)\nAdjustments to reconcile net loss to net cash provided by (used for) operating activities:\t\t\nDepreciation and amortization\t127248\t124910\nAsset impairment\t57340\t18216\nLoss on disposal\t7586\t5326\nProvision for (benefit from) deferred income taxes\t27432\t(20631)\nShare-based compensation\t13575\t8464\nChanges in assets and liabilities:\t\t\nInventories\t(109665)\t(154791)\nAccounts payable and accrued expenses\t186806\t34752\nOperating lease right-of-use assets and liabilities\t(41976)\t42990\nIncome taxes\t(7168)\t(2264)\nOther assets\t30403\t(47138)\nWithdrawal of funds from Rabbi Trust assets\t50000\t0\nOther liabilities\t11523\t(3433)\nNet cash provided by (used for) operating activities\t158894\t(33839)\nInvesting activities\t\t\nPurchases of property and equipment\t(91748)\t(154373)\nNet cash used for investing activities\t(91748)\t(154373)\nFinancing activities\t\t\nProceeds from issuance of senior secured notes\t350000\t0\nProceeds from borrowings under the senior secured asset-based revolving credit facility\t210000\t0\nRepayment of borrowings under the term loan facility\t(233250)\t(10000)\nRepayment of borrowings under the senior secured asset-based revolving credit facility\t(210000)\t0\nPayment of debt issuance costs and fees\t(7151)\t0\nPurchases of Common Stock\t(15172)\t(63542)\nDividends paid\t(12556)\t(38959)\nOther financing activities\t(11742)\t(10407)\nNet cash provided by (used for) financing activities\t70129\t(122908)\nEffect of foreign currency exchange rates on cash\t2269\t(2686)\nNet increase (decrease) in cash and equivalents and restricted cash and equivalents\t139544\t(313806)\nCash and equivalents and restricted cash and equivalents beginning of period\t692264\t745829\nCash and equivalents and restricted cash and equivalents end of period\t831808\t432023\nSupplemental information related to non-cash activities\t\t\nPurchases of property and equipment not yet paid at end of period\t26554\t36951\nOperating lease right-of-use assets additions net of terminations impairments and other reductions\t(41305)\t293281\nSupplemental information related to cash activities\t\t\nCash paid for interest\t9182\t12022\nCash paid for income taxes\t10412\t18697\nCash received from income tax refunds\t4001\t8570\nCash paid for amounts included in measurement of operating lease liabilities\t224827\t311275\n", "q10k_tbl_7": "\t\tPage No.\nNote 1.\tNATURE OF BUSINESS\t9\nNote 2.\tSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\t9\nNote 3.\tIMPACT OF COVID-19\t10\nNote 4.\tREVENUE RECOGNITION\t12\nNote 5.\tNET INCOME (LOSS) PER SHARE\t12\nNote 6.\tFAIR VALUE\t13\nNote 7.\tPROPERTY AND EQUIPMENT NET\t14\nNote 8.\tLEASES\t14\nNote 9.\tASSET IMPAIRMENT\t15\nNote 10.\tRABBI TRUST ASSETS\t15\nNote 11.\tINCOME TAXES\t16\nNote 12.\tBORROWINGS\t16\nNote 13.\tSHARE-BASED COMPENSATION\t18\nNote 14.\tDERIVATIVE INSTRUMENTS\t20\nNote 15.\tACCUMULATED OTHER COMPREHENSIVE LOSS\t22\nNote 16.\tSEGMENT REPORTING\t23\nNote 17.\tFLAGSHIP STORE EXIT (BENEFITS) CHARGES\t24\n", "q10k_tbl_8": "Fiscal year\tYear ended\tNumber of weeks\nFiscal 2019\tFebruary 1 2020\t52\nFiscal 2020\tJanuary 30 2021\t52\n", "q10k_tbl_9": "(in thousands)\tLocation\tOctober 31 2020\tFebruary 1 2020\tNovember 2 2019\tFebruary 2 2019\nCash and equivalents\tCash and equivalents\t812881\t671267\t410775\t723135\nLong-term restricted cash and equivalents\tOther assets\t14633\t18696\t18698\t22694\nShort-term restricted cash and equivalents\tOther current assets\t4294\t2301\t2550\t0\nCash and equivalents and restricted cash and equivalents\t\t831808\t692264\t432023\t745829\n", "q10k_tbl_10": "(in thousands)\tOctober 31 2020\tFebruary 1 2020\tNovember 2 2019\tFebruary 2 2019\nGift card liability\t22910\t28844\t19855\t26062\nLoyalty program liability\t19640\t23051\t21396\t19904\n", "q10k_tbl_11": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nRevenue associated with gift card redemptions and gift card breakage\t11717\t12653\t32792\t40729\nRevenue associated with reward redemptions and breakage related to the Company's loyalty programs\t9686\t9249\t23377\t23795\n", "q10k_tbl_12": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nShares of Common Stock issued\t103300\t103300\t103300\t103300\nWeighted-average treasury shares\t(40742)\t(40201)\t(40759)\t(38368)\nWeighted-average - basic shares\t62558\t63099\t62541\t64932\nDilutive effect of share-based compensation awards\t1319\t812\t0\t0\nWeighted-average - diluted shares\t63877\t63911\t62541\t64932\nAnti-dilutive shares (1)\t1828\t2912\t1988\t1572\n", "q10k_tbl_13": "\tAssets at Fair Value as of October 31 2020\t\t\t\n(in thousands)\tLevel 1\tLevel 2\tLevel 3\tTotal\nAssets:\t\t\t\t\nCash equivalents (1)\t68271\t43596\t0\t111867\nDerivative instruments (2)\t0\t461\t0\t461\nRabbi Trust assets (3)\t1\t60418\t0\t60419\nRestricted cash equivalents (4)\t6670\t7918\t0\t14588\nTotal assets\t74942\t112393\t0\t187335\nLiabilities:\t\t\t\t\nDerivative instruments (2)\t0\t367\t0\t367\nTotal liabilities\t0\t367\t0\t367\n", "q10k_tbl_14": "\tAssets and Liabilities at Fair Value as of February 1 2020\t\t\t\n(in thousands)\tLevel 1\tLevel 2\tLevel 3\tTotal\nAssets:\t\t\t\t\nCash equivalents (1)\t225\t58447\t0\t58672\nDerivative instruments (2)\t0\t1969\t0\t1969\nRabbi Trust assets (3)\t1\t109048\t0\t109049\nRestricted cash equivalents (4)\t9765\t4601\t0\t14366\nTotal assets\t9991\t174065\t0\t184056\nLiabilities:\t\t\t\t\nDerivative instruments (2)\t0\t1460\t0\t1460\nTotal liabilities\t0\t1460\t0\t1460\n", "q10k_tbl_15": "(in thousands)\tOctober 31 2020\tFebruary 1 2020\nGross borrowings outstanding carrying amount\t350000\t233250\nGross borrowings outstanding fair value\t374063\t233979\n", "q10k_tbl_16": "(in thousands)\tOctober 31 2020\tFebruary 1 2020\nProperty and equipment at cost\t2741167\t2744967\nLess: Accumulated depreciation and amortization\t(2147235)\t(2079677)\nProperty and equipment net\t593932\t665290\n", "q10k_tbl_17": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nSingle lease cost (1)\t83743\t104726\t264932\t318270\nVariable lease cost (2)\t14428\t25990\t61763\t129073\nOperating lease right-of-use asset impairment (3)\t3979\t9047\t44397\t12636\nTotal operating lease cost\t102150\t139763\t371092\t459979\n", "q10k_tbl_18": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nOperating lease right-of-use asset impairment (1)\t3979\t9047\t44397\t12636\nProperty and equipment asset impairment\t2350\t3563\t12943\t5580\nTotal asset impairment\t6329\t12610\t57340\t18216\n", "q10k_tbl_19": "(in thousands)\tOctober 31 2020\tFebruary 1 2020\nTrust-owned life insurance policies (at cash surrender value)\t60418\t109048\nMoney market funds\t1\t1\nRabbi Trust assets\t60419\t109049\n", "q10k_tbl_20": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nRealized gains related to Rabbi Trust assets\t391\t805\t1369\t2394\n", "q10k_tbl_21": "(in thousands)\tOctober 31 2020\tFebruary 1 2020\nLong-term portion of borrowings gross at carrying amount\t350000\t233250\nUnamortized fees\t(6441)\t(932)\nUnamortized discount\t0\t(355)\nLong-term borrowings net\t343559\t231963\n", "q10k_tbl_22": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nShare-based compensation expense\t4669\t5796\t13575\t8464\nIncome tax benefit associated with share-based compensation expense recognized (1)\t0\t1211\t0\t1566\n", "q10k_tbl_23": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nIncome tax discrete benefits realized for tax deductions related to the issuance of shares (1)\t0\t6\t0\t1175\nIncome tax discrete charges realized upon cancellation of stock appreciation rights (1)\t0\t(447)\t0\t(611)\nTotal income tax discrete (charges) benefits related to share-based compensation awards\t0\t(441)\t0\t564\n", "q10k_tbl_24": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nEmployee tax withheld upon issuance of shares (1)\t150\t181\t5566\t6619\n", "q10k_tbl_25": "\tService-based Restricted Stock Units\t\tPerformance-based Restricted Stock Units\t\tMarket-based Restricted Stock Units\t\n\tNumber of Underlying Shares (1)\tWeighted- Average Grant Date Fair Value\tNumber of Underlying Shares\tWeighted- Average Grant Date Fair Value\tNumber of Underlying Shares\tWeighted- Average Grant Date Fair Value\nUnvested at February 1 2020\t1676831\t18.68\t747056\t15.11\t421784\t23.05\nGranted\t2280194\t8.57\t0\t0\t519905\t16.24\nAdjustments for performance achievement\t0\t0\t38381\t11.37\t134122\t11.79\nVested\t(790429)\t17.42\t(481304)\t9.63\t(350447)\t11.79\nForfeited\t(107795)\t13.83\t(6917)\t22.80\t(3485)\t35.61\nUnvested at October 31 2020 (2)\t3058801\t11.63\t297216\t22.43\t721879\t21.46\n", "q10k_tbl_26": "(in thousands)\tOctober 31 2020\tNovember 2 2019\nService-based restricted stock units:\t\t\nTotal grant date fair value of awards granted\t19541\t16175\nTotal grant date fair value of awards vested\t13769\t13087\nPerformance-based restricted stock units:\t\t\nTotal grant date fair value of awards granted\t0\t5379\nTotal grant date fair value of awards vested\t4635\t0\nMarket-based restricted stock units:\t\t\nTotal grant date fair value of awards granted\t8443\t4176\nTotal grant date fair value of awards vested\t4132\t511\n", "q10k_tbl_27": "\tOctober 31 2020\tNovember 2 2019\nGrant date market price\t12.31\t25.34\nFair value\t16.24\t36.24\nAssumptions:\t\t\nPrice volatility\t67%\t57%\nExpected term (years)\t2.4\t2.9\nRisk-free interest rate\t0.2%\t2.2%\nDividend yield\t-%\t3.2%\nAverage volatility of peer companies\t66.0%\t40.0%\nAverage correlation coefficient of peer companies\t0.4967\t0.2407\n", "q10k_tbl_28": "\tNumber of Underlying Shares\tWeighted-Average Exercise Price\tAggregate Intrinsic Value\tWeighted-Average Remaining Contractual Life (years)\nOutstanding at February 1 2020\t796725\t40.06\t\t\nGranted\t0\t0\t\t\nExercised\t0\t0\t\t\nForfeited or expired\t(382225)\t47.87\t\t\nOutstanding at August 1 2020\t414500\t32.86\t0\t3.2\nStock appreciation rights exercisable at October 31 2020\t414500\t32.86\t0\t3.2\nStock appreciation rights expected to become exercisable in the future as of October 31 2020\t0\t0\t0\t0.0\n", "q10k_tbl_29": "(in thousands)\tLocation\tOctober 31 2020\tFebruary 1 2020\tLocation\tOctober 31 2020\tFebruary 1 2020\nDerivatives designated as cash flow hedging instruments\tOther current assets\t461\t1869\tAccrued expenses\t367\t1377\nDerivatives not designated as hedging instruments\tOther current assets\t0\t100\tAccrued expenses\t0\t83\nTotal\t\t461\t1969\t\t367\t1460\n", "q10k_tbl_30": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nGain (loss) recognized in AOCL (1)\t93\t(1136)\t12328\t5918\nGain reclassified from AOCL into cost of sales exclusive of depreciation and amortization (2)\t5327\t2541\t11104\t6845\n", "q10k_tbl_31": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\n(Loss) gain recognized in other operating (income) loss net\t0\t(1023)\t742\t157\n", "q10k_tbl_32": "\tThirteen Weeks Ended October 31 2020\t\t\n(in thousands)\tForeign Currency Translation Adjustment\tUnrealized Gain (Loss) on Derivative Financial Instruments\tTotal\nBeginning balance at August 1 2020\t(106632)\t7539\t(99093)\nOther comprehensive income before reclassifications\t2142\t93\t2235\nReclassified gain from accumulated other comprehensive loss (1)\t0\t(5327)\t(5327)\nOther comprehensive income (loss) after reclassifications (2)\t2142\t(5234)\t(3092)\nEnding balance at October 31 2020\t(104490)\t2305\t(102185)\n\tThirty-nine Weeks Ended October 31 2020\t\t\n(in thousands)\tForeign Currency Translation Adjustment\tUnrealized Gain (Loss) on Derivative Financial Instruments\tTotal\nBeginning balance at February 1 2020\t(109967)\t1081\t(108886)\nOther comprehensive income before reclassifications\t5477\t12328\t17805\nReclassified gain from accumulated other comprehensive loss (1)\t0\t(11104)\t(11104)\nOther comprehensive income after reclassifications (2)\t5477\t1224\t6701\nEnding balance at October 31 2020\t(104490)\t2305\t(102185)\n", "q10k_tbl_33": "\tThirteen Weeks Ended November 2 2019\t\t\n(in thousands)\tForeign Currency Translation Adjustment\tUnrealized Gain (Loss) on Derivative Financial Instruments\tTotal\nBeginning balance at August 3 2019\t(111461)\t5515\t(105946)\nOther comprehensive (loss) income before reclassifications\t1355\t(1136)\t219\nReclassified gain from accumulated other comprehensive loss (1)\t0\t(2541)\t(2541)\nTax effect\t0\t23\t23\nOther comprehensive income (loss) after reclassifications\t1355\t(3654)\t(2299)\nEnding balance at November 2 2019\t(110106)\t1861\t(108245)\n\tThirty-nine Weeks Ended November 2 2019\t\t\n(in thousands)\tForeign Currency Translation Adjustment\tUnrealized Gain (Loss) on Derivative Financial Instruments\tTotal\nBeginning balance at February 2 2019\t(104887)\t2435\t(102452)\nOther comprehensive (loss) income before reclassifications\t(5219)\t5918\t699\nReclassified gain from accumulated other comprehensive loss (1)\t0\t(6845)\t(6845)\nTax effect\t0\t353\t353\nOther comprehensive (loss) income after reclassifications\t(5219)\t(574)\t(5793)\nEnding balance at November 2 2019\t(110106)\t1861\t(108245)\n", "q10k_tbl_34": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nHollister\t476665\t514772\t1178925\t1447975\nAbercrombie\t342988\t348700\t824415\t990547\nTotal\t819653\t863472\t2003340\t2438522\n", "q10k_tbl_35": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nU.S.\t557814\t583593\t1339347\t1596723\nEMEA\t190214\t191977\t474165\t566563\nAPAC\t43618\t55910\t117768\t188836\nOther\t28007\t31992\t72060\t86400\nInternational\t261839\t279879\t663993\t841799\nTotal\t819653\t863472\t2003340\t2438522\n", "q10k_tbl_36": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nOperating lease cost\t(1729)\t0\t(6959)\t46716\nGain on lease assignment\t(5237)\t0\t(5237)\t0\nAsset disposals and other store-closure costs (1)\t(405)\t0\t(3610)\t(1687)\nEmployee severance and other employee transition costs\t(692)\t285\t3316\t1994\nTotal flagship store exit (benefits) charges\t(8063)\t285\t(12490)\t47023\n", "q10k_tbl_37": "Fiscal year\tYear ended\tNumber of weeks\nFiscal 2018\tFebruary 2 2019\t52\nFiscal 2019\tFebruary 1 2020\t52\nFiscal 2020\tJanuary 30 2021\t52\n", "q10k_tbl_38": "Brand (1)\tFlagship location\tTiming of store closure\nAbercrombie & Fitch\tPedder Street Hong Kong Special Administrative Region China\tFirst quarter of Fiscal 2017\nAbercrombie & Fitch\tCopenhagen Denmark\tFirst quarter of Fiscal 2019\nHollister\tSoHo New York City U.S.\tSecond quarter of Fiscal 2019\nAbercrombie\tMilan Italy\tFourth quarter of Fiscal 2019\nabercrombie kids (2)\tLondon United Kingdom\tFourth quarter of Fiscal 2019\nAbercrombie\tDusseldorf Germany\tThird quarter of Fiscal 2020\n", "q10k_tbl_39": "\tHollister (1)\t\tAbercrombie (2)\t\tTotal Company\t\t\n\tU.S.\tInternational\tU.S.\tInternational\tU.S.\tInternational\tTotal\nNumber of stores:\t\t\t\t\t\t\t\nFebruary 1 2020\t391\t155\t256\t52\t647\t207\t854\nNew\t2\t2\t4\t4\t6\t6\t12\nPermanently closed\t(7)\t(3)\t(5)\t(2)\t(12)\t(5)\t(17)\nOctober 31 2020\t386\t154\t255\t54\t641\t208\t849\nGross square footage (in thousands):\t\t\t\t\t\t\t\nOctober 31 2020\t2568\t1257\t1817\t575\t4385\t1832\t6217\n", "q10k_tbl_40": "\tGAAP\t\tNon-GAAP (1)\t\n(in thousands except change in net sales gross profit rate operating margin and per share amounts)\tOctober 31 2020(2)\tNovember 2 2019(3)\tOctober 31 2020(2)\tNovember 2 2019(3)\nThirteen Weeks Ended\t\t\t\t\nNet sales\t819653\t863472\t\t\nChange in net sales\t(5.1)%\t0.3%\t\t\nGross profit rate\t64.0%\t60.1%\t\t\nOperating income\t58616\t14479\t64945\t24947\nOperating income margin\t7.2%\t1.7%\t7.9%\t2.9%\nNet income attributable to A&F\t42271\t6523\t48231\t14506\nNet income per diluted share attributable to A&F\t0.66\t0.10\t0.76\t0.23\nThirty-nine Weeks Ended\t\t\t\t\nNet sales\t2003340\t2438522\t\t\nChange in net sales\t(17.8)%\t0.2%\t\t\nGross profit rate\t60.5%\t59.9%\t\t\nOperating loss\t(136368)\t(52263)\t(79028)\t(41795)\nOperating loss margin\t(6.8)%\t(2.1)%\t(3.9)%\t(1.7)%\nNet loss attributable to A&F\t(196413)\t(43774)\t(142708)\t(35791)\nNet loss per diluted share attributable to A&F\t(3.14)\t(0.67)\t(2.28)\t(0.55)\n", "q10k_tbl_41": "(in thousands)\tOctober 31 2020\tFebruary 1 2020\nCash and equivalents\t812881\t671267\nGross long-term borrowings outstanding carrying amount\t350000\t233250\nInventories\t545548\t434326\n", "q10k_tbl_42": "(in thousands)\tOctober 31 2020\tNovember 2 2019\nNet cash provided by (used for) operating activities\t158894\t(33839)\nNet cash used for investing activities\t(91748)\t(154373)\nNet cash provided by (used for) financing activities\t70129\t(122908)\n", "q10k_tbl_43": "\tThirteen Weeks Ended\t\t\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\t Change\t% Change\nHollister\t476665\t514772\t(38107)\t(7)%\nAbercrombie (1)\t342988\t348700\t(5712)\t(2)%\nTotal\t819653\t863472\t(43819)\t(5)%\n\tThirty-nine Weeks Ended\t\t\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\t Change\t% Change\nHollister\t1178925\t1447975\t(269050)\t(19)%\nAbercrombie (1)\t824415\t990547\t(166132)\t(17)%\nTotal\t2003340\t2438522\t(435182)\t(18)%\n", "q10k_tbl_44": "\tThirteen Weeks Ended\t\t\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\t Change\t% Change\nU.S.\t557814\t583593\t(25779)\t(4)%\nEMEA\t190214\t191977\t(1763)\t(1)%\nAPAC\t43618\t55910\t(12292)\t(22)%\nOther\t28007\t31992\t(3985)\t(12)%\nInternational\t261839\t279879\t(18040)\t(6)%\nTotal\t819653\t863472\t(43819)\t(5)%\n\tThirty-nine Weeks Ended\t\t\t\n(in thousands)\tOctober 31 2020\tNovember 2 2019\t Change\t% Change\nU.S.\t1339347\t1596723\t(257376)\t(16)%\nEMEA\t474165\t566563\t(92398)\t(16)%\nAPAC\t117768\t188836\t(71068)\t(38)%\nOther\t72060\t86400\t(14340)\t(17)%\nInternational\t663993\t841799\t(177806)\t(21)%\nTotal\t2003340\t2438522\t(435182)\t(18)%\n", "q10k_tbl_45": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nCost of sales exclusive of depreciation and amortization\t295220\t36.0%\t344541\t39.9%\t(390)\n\tThirty-nine Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nCost of sales exclusive of depreciation and amortization\t791154\t39.5%\t976868\t40.1%\t(60)\n", "q10k_tbl_46": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nGross profit exclusive of depreciation and amortization\t524433\t64.0%\t518931\t60.1%\t390\n\tThirty-nine Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nGross profit exclusive of depreciation and amortization\t1212186\t60.5%\t1461654\t59.9%\t60\n", "q10k_tbl_47": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nStores and distribution expense\t346263\t42.2%\t377697\t43.7%\t(150)\n\tThirty-nine Weeks Ended\t\t\t\t\n\tNovember 2 2019\t\tNovember 3 2018\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nStores and distribution expense\t978757\t48.9%\t1110656\t45.5%\t340\n", "q10k_tbl_48": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nMarketing general and administrative expense\t121000\t14.8%\t114075\t13.2%\t160\n\tThirty-nine Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nMarketing general and administrative expense\t326509\t16.3%\t341716\t14.0%\t230\n", "q10k_tbl_49": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nFlagship store exit (benefits) charges\t(8063)\t(1.0)%\t285\t-%\t(100)\n\tThirty-nine Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nFlagship store exit (benefits) charges\t(12490)\t(0.6)%\t47023\t1.9%\t(250)\n", "q10k_tbl_50": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nAsset impairment exclusive of flagship store exit charges\t6329\t0.8%\t12610\t1.5%\t(70)\nExcluded items:\t\t\t\t\t\nAsset impairment charges (2)\t(6329)\t(0.8)%\t(10468)\t(1.2)%\t40\nAdjusted non-GAAP asset impairment exclusive of flagship store exit charges\t0\t0.0%\t2142\t0.2%\t(20)\n\tThirty-nine Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nAsset impairment exclusive of flagship store exit charges\t57340\t2.9%\t14987\t0.6%\t230\nExcluded items:\t\t\t\t\t\nAsset impairment charges (2)\t(57340)\t(2.9)%\t(10468)\t(0.4)%\t(250)\nAdjusted non-GAAP asset impairment exclusive of flagship store exit charges\t0\t0.0%\t4519\t0.2%\t(20)\n", "q10k_tbl_51": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nOther operating (loss) income net\t(288)\t-%\t215\t-%\t0\n\tThirty-nine Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nOther operating income net\t1562\t0.1%\t465\t-%\t10\n", "q10k_tbl_52": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nOperating income\t58616\t7.2%\t14479\t1.7%\t550\nExcluded items:\t\t\t\t\t\nAsset impairment charges (2)\t6329\t0.8%\t10468\t1.2%\t(40)\nAdjusted non-GAAP operating income\t64945\t7.9%\t24947\t2.9%\t500\n\tThirty-nine Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nOperating loss\t(136368)\t(6.8)%\t(52263)\t(2.1)%\t(470)\nExcluded items:\t\t\t\t\t\nAsset impairment charges (2)\t57340\t2.9%\t10468\t0.4%\t250\nAdjusted non-GAAP operating loss\t(79028)\t(3.9)%\t(41795)\t(1.7)%\t(220)\n", "q10k_tbl_53": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nInterest expense\t9408\t1.1%\t5500\t0.6%\t50\nInterest income\t(600)\t(0.1)%\t(2578)\t(0.3)%\t20\nInterest expense net\t8808\t1.1%\t2922\t0.3%\t80\n\tThirty-nine Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nInterest expense\t22242\t1.1%\t14518\t0.6%\t50\nInterest income\t(2965)\t(0.1)%\t(9610)\t(0.4)%\t30\nInterest expense net\t19277\t1.0%\t4908\t0.2%\t80\n", "q10k_tbl_54": "\tThirteen Weeks Ended\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\n(in thousands except ratios)\t\tEffective Tax Rate\t\tEffective Tax Rate\nIncome tax expense\t5779\t11.6%\t3987\t34.5%\nExcluded items:\t\t\t\t\nTax effect of pre-tax excluded items (1)\t369\t\t2485\t\nAdjusted non-GAAP income tax expense\t6148\t11.0%\t6472\t29.4%\n\tThirty-nine Weeks Ended\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\n(in thousands except ratios)\t\tEffective Tax Rate\t\tEffective Tax Rate\nIncome tax expense (benefit)\t38565\t(24.8)%\t(16931)\t29.6%\nDeduct:\t\t\t\t\nTax effect of pre-tax excluded items (1)\t3635\t\t2485\t\nAdjusted non-GAAP income tax expense (benefit)\t42200\t(42.9)%\t(14446)\t30.9%\n", "q10k_tbl_55": "\tThirteen Weeks Ended\t\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net sales\t\t% of Net sales\tBPS Change (1)\nNet income attributable to A&F\t42271\t5.2%\t6523\t0.8%\t440\nExcluded items net of tax (2)\t5960\t0.7%\t7983\t0.9%\t(20)\nAdjusted non-GAAP net income attributable to A&F\t48231\t5.9%\t14506\t1.7%\t420\n\tThirty-nine Weeks Ended\t\t\t\t\n\tOctober 31 2020 (3)\t\tNovember 2 2019\t\t\n(in thousands)\t\t% of Net Sales\t\t% of Net Sales\tBPS Change (1)\nNet loss attributable to A&F\t(196413)\t(9.8)%\t(43774)\t(1.8)%\t(800)\nExcluded items net of tax (2)\t53705\t2.7%\t7983\t0.3%\t240\nAdjusted non-GAAP net loss attributable to A&F\t(142708)\t(7.1)%\t(35791)\t(1.5)%\t(560)\n", "q10k_tbl_56": "\tThirteen Weeks Ended\t\t\n\tOctober 31 2020\tNovember 2 2019\t Change\nNet income per diluted share attributable to A&F\t0.66\t0.10\t0.56\nExcluded items net of tax (1)\t0.09\t0.12\t(0.03)\nAdjusted non-GAAP net income per diluted share attributable to A&F\t0.76\t0.23\t0.53\nImpact from changes in foreign currency exchange rates\t0\t0.15\t(0.15)\nAdjusted non-GAAP net income per diluted share attributable to A&F on a constant currency basis\t0.76\t0.37\t0.39\n\tThirty-nine Weeks Ended\t\t\n\tOctober 31 2020 (2)\tNovember 2 2019\t Change\nNet loss per diluted share attributable to A&F\t(3.14)\t(0.67)\t(2.47)\nExcluded items net of tax (1)\t0.86\t0.12\t0.74\nAdjusted non-GAAP net loss per diluted share attributable to A&F\t(2.28)\t(0.55)\t(1.73)\nImpact from changes in foreign currency exchange rates\t0\t0.12\t(0.12)\nAdjusted non-GAAP net loss per diluted share attributable to A&F on a constant currency basis\t(2.28)\t(0.43)\t(1.85)\n", "q10k_tbl_57": "(in thousands)\tOctober 31 2020\nBorrowing base\t384544\nLess: Outstanding stand-by letters of credit\t(847)\nBorrowing capacity\t383697\nLess: Minimum excess availability (1)\t(38454)\nActual incremental borrowing available\t345243\n", "q10k_tbl_58": "\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\n(in thousands)\t\t\nCash and equivalents and restricted cash and equivalents beginning of period\t692264\t745829\nNet cash provided by (used for) operating activities\t158894\t(33839)\nNet cash used for investing activities\t(91748)\t(154373)\nNet cash provided by (used for) financing activities\t70129\t(122908)\nEffect of foreign currency exchange rates on cash\t2269\t(2686)\nNet increase (decrease) in cash and equivalents and restricted cash and equivalents\t139544\t(313806)\nCash and equivalents and restricted cash and equivalents end of period\t831808\t432023\n", "q10k_tbl_59": "(in thousands)\tTotal\tFiscal 2020\tFiscal 2021-Fiscal 2023\tFiscal 2024-Fiscal 2025\tFiscal 2026 and thereafter\nInterest payments due by period\t154231\t16418\t91875\t45938\t0\n", "q10k_tbl_60": "Policy\tEffect if Actual Results Differ from Assumptions\nLong-lived Assets\t\nLong-lived assets primarily operating lease right-of-use assets leasehold improvements furniture fixtures and equipment are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset group might not be recoverable. These include but are not limited to material declines in operational performance a history of losses an expectation of future losses adverse market conditions and store closure or relocation decisions. On at least a quarterly basis the Company reviews for indicators of impairment at the individual store level the lowest level for which cash flows are identifiable. Stores that display an indicator of impairment are subjected to an impairment assessment. The Company's impairment assessment requires management to make assumptions and judgments related but not limited to management's expectations for future operations and projected cash flows. The key assumptions used in the Company's undiscounted future store cash flow models include sales gross profit and to a lesser extent operating expenses. An impairment loss may be recognized when these undiscounted future cash flows are less than the carrying amount of the asset group. In the circumstance of impairment any loss would be measured as the excess of the carrying amount of the asset group over its fair value. Fair value of the Company's store-related assets is determined at the individual store level based on the highest and best use of the asset group. The key assumptions used in the Company's fair value analysis may include discounted future store cash flows and comparable market rents.\tIf actual results are not consistent with the estimates and assumptions used there may be a material impact on the Company's financial condition or results of operation. Store assets that were tested for impairment as of October 31 2020 and not impaired had long-lived assets with a net book value of $132.2 million which included $108.8 million of operating lease right-of-use assets as of October 31 2020. Store assets that were previously impaired as of October 31 2020 had a remaining net book value of $124.8 million which included $114.1 million of operating lease right-of-use assets as of October 31 2020.\n", "q10k_tbl_61": "(in thousands except change in net sales gross profit rate operating margin and per share data)\tThirteen Weeks Ended\t\t\tThirty-nine Weeks Ended\t\t\nNet sales\tOctober 31 2020\tNovember 2 2019\t% Change\tOctober 31 2020\tNovember 2 2019\t% Change\nGAAP\t819653\t863472\t(5)%\t2003340\t2438522\t(18)%\nImpact from changes in foreign currency exchange rates\t0\t11896\t(1)%\t0\t2948\t-%\nNon-GAAP on a constant currency basis\t819653\t875368\t(6)%\t2003340\t2441470\t(18)%\nGross profit exclusive of depreciation and amortization expense\tOctober 31 2020\tNovember 2 2019\tBPS Change (1)\tOctober 31 2020\tNovember 2 2019\tBPS Change (1)\nGAAP\t524433\t518931\t390\t1212186\t1461654\t60\nImpact from changes in foreign currency exchange rates\t0\t14779\t(90)\t0\t7323\t(30)\nNon-GAAP on a constant currency basis\t524433\t533710\t300\t1212186\t1468977\t30\nOperating income (loss)\tOctober 31 2020\tNovember 2 2019\tBPS Change (1)\tOctober 31 2020\tNovember 2 2019\tBPS Change (1)\nGAAP\t58616\t14479\t550\t(136368)\t(41795)\t(470)\nExcluded items (2)\t(6329)\t(10468)\t50\t(57340)\t0\t(250)\nAdjusted non-GAAP\t64945\t24947\t500\t(79028)\t(41795)\t(220)\nImpact from changes in foreign currency exchange rates\t0\t7410\t(80)\t0\t5221\t20\nAdjusted non-GAAP on a constant currency basis\t64945\t32357\t420\t(79028)\t(36574)\t(240)\nNet income (loss) per diluted share attributable to A&F (3)\tOctober 31 2020\tNovember 2 2019\t Change\tOctober 31 2020\tNovember 2 2019\t Change\nGAAP\t0.66\t0.10\t0.56\t(3.14)\t(0.67)\t(2.47)\nExcluded items net of tax (2)\t(0.09)\t(0.12)\t0.03\t(0.86)\t(0.12)\t(0.74)\nAdjusted non-GAAP\t0.76\t0.23\t0.53\t(2.28)\t(0.55)\t(1.73)\nImpact from changes in foreign currency exchange rates\t0\t0.15\t(0.15)\t0\t0.12\t(0.12)\nAdjusted non-GAAP on a constant currency basis\t0.76\t0.37\t0.39\t(2.28)\t(0.43)\t(1.85)\n", "q10k_tbl_62": "Period (fiscal month)\tTotal Number of Shares Purchased (1)\tAverage Price Paid per Share\tTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)\tMaximum Number of Shares that May Yet Be Purchased under the Plans or Programs (3)\nAugust 2 2020 through August 29 2020\t1569\t11.41\t0\t3218058\nAugust 30 2020 through October 3 2020\t5324\t13.58\t0\t3218058\nOctober 4 2020 through October 31 2020\t3594\t16.27\t0\t3218058\nTotal\t10487\t14.18\t0\t3218058\n", "q10k_tbl_63": "Exhibit\tDocument\n3.1\tAmended and Restated Certificate of Incorporation of Abercrombie & Fitch Co. reflecting amendments through the date of this Quarterly Report on Form 10-Q incorporated herein by reference to Exhibit 3.2 to A&F's Quarterly Report on Form 10-Q for the quarterly period ended July 30 2011 (File No. 001-12107). [This document represents the Amended and Restated Certificate of Incorporation of Abercrombie & Fitch Co. in compiled form incorporating all amendments. This compiled document has not been filed with the Delaware Secretary of State.]\n3.2\tAmended and Restated Bylaws of Abercrombie & Fitch Co. reflecting amendments through the date of this Quarterly Report on Form 10-Q incorporated herein by reference to Exhibit 3.10 to A&F's Annual Report on Form 10-K for the fiscal year ended February 3 2018 (File No. 001-12107). [This document represents the Amended and Restated Bylaws of Abercrombie & Fitch Co. in compiled form incorporating all amendments.]\n10.1\tForm of Performance Share Award Agreement used to evidence the grant of performance shares to associates (employees) of Abercrombie & Fitch Co. and its subsidiaries under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Associates on or after August 28 2020.*\n10.2\tForm of Retention Restricted Stock Unit Award Agreement made to be effective as of August 28 2020 between Abercrombie & Fitch Co. and each of Scott Lipesky Kristin Scott and Gregory J. Henchel incorporated herein by reference to Exhibit 10.1 to A&F's Current Report on Form 8-K dated and filed on September 2 2020 (File No. 001-12107).\n31.1\tCertifications by Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*\n31.2\tCertifications by Senior Vice President and Chief Financial Officer (Principal Financial Officer) pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*\n32.1\tCertifications by Chief Executive Officer (who serves as Principal Executive Officer) and Senior Vice President and Chief Financial Officer (who serves as Principal Financial Officer) pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**\n101.INS\tInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its Inline XBRL tags are embedded within the Inline XBRL document.*\n101.SCH\tInline XBRL Taxonomy Extension Schema Document.*\n101.CAL\tInline XBRL Taxonomy Extension Calculation Linkbase Document.*\n101.DEF\tInline XBRL Taxonomy Extension Definition Linkbase Document.*\n101.LAB\tInline XBRL Taxonomy Extension Label Linkbase Document.*\n101.PRE\tInline XBRL Taxonomy Extension Presentation Linkbase Document.*\n104\tCover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101).*\n"}{"bs": "q10k_tbl_3", "is": "q10k_tbl_2", "cf": "q10k_tbl_6"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2020
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-12107
Abercrombie & Fitch Co.
(Exact name of Registrant as specified in its charter)
Delaware
31-1469076
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
6301 Fitch Path,
New Albany,
Ohio
43054
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code:
(614)
283-6500
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, $0.01 Par Value
ANF
New York Stock Exchange
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. xYes¨ No
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). xYes¨ No
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).☐Yes xNo
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Notes to Condensed Consolidated Financial Statements (Unaudited)
1. NATURE OF BUSINESS
Abercrombie & Fitch Co. (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as “Abercrombie & Fitch” or the “Company”), is a global multi-brand omnichannel specialty retailer, whose products are sold primarily through its Company-owned store and digital channels, as well as through various third-party wholesale, franchise and licensing arrangements. The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids under the Hollister, Abercrombie & Fitch and abercrombie kids brands. The brands share a commitment to offering unique products of enduring quality and exceptional comfort that allow customers around the world to express their own individuality and style. The Company primarily has operations in North America, Europe and Asia, among other regions.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation
The accompanying Condensed Consolidated Financial Statements include historical financial statements of, and transactions applicable to, the Company and reflect its financial position, results of operations and cash flows.
The Company has interests in an Emirati business venture and in a Kuwaiti business venture with Majid al Futtaim Fashion L.L.C. (“MAF”), each of which meets the definition of a variable interest entity (“VIE”). The Company is deemed to be the primary beneficiary of these VIEs; therefore, the Company has consolidated the operating results, assets and liabilities of these VIEs, with MAF’s portion of net income presented as net income attributable to noncontrolling interests (“NCI”) on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and MAF’s portion of equity presented as NCI on the Condensed Consolidated Balance Sheets.
Fiscal year
The Company’s fiscal year ends on the Saturday closest to January 31. This typically results in a fifty-two week year, but occasionally gives rise to an additional week, resulting in a fifty-three week year. Fiscal years are designated in the Condensed Consolidated Financial Statements and notes, as well as the remainder of this Quarterly Report on Form 10-Q, by the calendar year in which the fiscal year commences. All references herein to the Company’s fiscal years are as follows:
Fiscal year
Year ended
Number of weeks
Fiscal 2019
February 1, 2020
52
Fiscal 2020
January 30, 2021
52
Interim financial statements
The Condensed Consolidated Financial Statements as of October 31, 2020, and for the thirteen and thirty-nine week periods ended October 31, 2020 and November 2, 2019, are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, the Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto contained in A&F’s Annual Report on Form 10-K for Fiscal 2019 filed with the SEC on March 31, 2020. The February 1, 2020 consolidated balance sheet data, included herein, were derived from audited consolidated financial statements, but do not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”).
In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments (which are of a normal recurring nature) necessary to state fairly, in all material respects, the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for Fiscal 2020.
Use of estimates
The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Due to the inherent uncertainty involved with estimates, actual results may differ. The extent to which the current outbreak of coronavirus disease (“COVID-19”) impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of the COVID-19 pandemic and its impact on the length or frequency of store closures, and the extent to
which COVID-19 will impact worldwide macroeconomic conditions including interest rates, the speed of the economic recovery, and governmental, business and consumer reactions to the pandemic. The Company’s assessment of these, as well as other factors, could impact management's estimates and result in material impacts to the Company’s consolidated financial statements in future reporting periods.
Recent accounting pronouncements
The Company reviews recent accounting pronouncements on a quarterly basis and has excluded discussion of those not applicable to the Company and those that did not have, or are not expected to have, a material impact on the Company’s consolidated financial statements.
Condensed Consolidated Statements of Cash Flows reconciliation
The following table provides a reconciliation of cash and equivalents and restricted cash and equivalents to the amounts shown on the Condensed Consolidated Statements of Cash Flows:
(in thousands)
Location
October 31, 2020
February 1, 2020
November 2, 2019
February 2, 2019
Cash and equivalents
Cash and equivalents
$
812,881
$
671,267
$
410,775
$
723,135
Long-term restricted cash and equivalents
Other assets
14,633
18,696
18,698
22,694
Short-term restricted cash and equivalents
Other current assets
4,294
2,301
2,550
—
Cash and equivalents and restricted cash and equivalents
$
831,808
$
692,264
$
432,023
$
745,829
3. IMPACT OF COVID-19
Recent developments
The Company has seen, and may continue to see, material adverse impacts as a result of COVID-19. The extent of future impacts of COVID-19 on the Company’s business, including the duration and impact on overall customer demand, are uncertain as current circumstances are dynamic and depend on future developments, including, but not limited to, the duration and spread of COVID- 19 and the availability and acceptance of an effective vaccine or medical treatments.
In January 2020, the Company began to experience business disruptions in the Asia-Pacific (“APAC”) region as a result of COVID-19. In February 2020, the situation escalated as the scope of COVID-19 worsened beyond the APAC region, with the United States (the “U.S.”) and the Europe, Middle East and Africa (“EMEA”) region experiencing significant outbreaks. In March 2020, the COVID-19 outbreak was declared to be a global pandemic by the World Health Organization. In response to COVID-19, certain governments have imposed travel restrictions and local statutory quarantines and the Company has recommended associates who are able to perform their role remotely continue to do so. The Company is reacting to COVID-19 on a daily basis, including by conforming to local government guidance and monitoring developments in government legislation or other government actions in response to the COVID-19 outbreak. The Company has also implemented a range of precautionary health and safety measures with the well-being of the Company’s customers, associates and business partners in mind.
As a result of COVID-19, in January 2020, the Company temporarily closed the majority of its stores in the APAC region and in March 2020, the Company temporarily closed its stores across brands in North America and the EMEA region. The majority of APAC stores were reopened during March 2020, and the Company began to reopen stores in North America and the EMEA region on a rolling basis in late April 2020. As of October 31, 2020, approximately 97% of Company-operated stores had reopened for in-store service, although many with modified operating hours. The Company plans to follow the guidance of local governments to determine when it can reopen stores that have been closed due to COVID-19 and to evaluate whether further store closures will be necessary.
The Company’s digital operations across brands have continued to serve the Company’s customers during this unprecedented period of temporary store closures as the Company’s distribution centers implemented enhanced cleaning and social distancing measures in order to remain operational. In response to elevated digital demand during this period, the Company has increased its omnichannel capabilities by continuing to offer Purchase-Online-Pickup-in-Store, including curbside pick-up at a majority of U.S. locations, and by utilizing ship-from-store capabilities. In addition, to prepare for the Fiscal 2020 holiday season, the Company has entered into a short-term lease for an additional distribution center and has partnered with incremental carriers.
Impact of COVID-19
The Company has seen, and may continue to see, material reductions in sales across brands and regions as a result of COVID-19. Total net sales decreased approximately 5% and 18% for the thirteen and thirty-nine weeks ended October 31, 2020
as compared to the comparable periods ended November 2, 2019, respectively. The year-over-year decrease in total net sales was primarily driven by temporary widespread store closures and a decline in traffic as compared to the previous year as a result of COVID-19. The year-over-year decline in store sales was partially offset by digital sales growth of approximately 43% and 42% for the thirteen and thirty-nine weeks ended October 31, 2020 as compared to the comparable periods ended November 2, 2019, respectively.
Primarily as a result of COVID-19 and the temporary closure of the Company’s stores, the Company recognized $14.8 million of charges to reduce the carrying value of inventory in cost of sales, exclusive of depreciation and amortization on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) during the thirteen weeks ended May 2, 2020.
During the thirty-nine weeks ended October 31, 2020, reductions in revenue have not been offset by proportional decreases in expense, as the Company continued to incur store occupancy costs such as operating lease costs, net of rent abatements agreed upon during the period, depreciation expense, and certain other costs such as compensation, net of government payroll relief, and administrative expenses resulting in a negative effect on the relationship between the Company’s costs and revenues. During this period, the Company suspended rent payments for a significant number of stores that were closed, and continues to engage with its landlords to find a mutually beneficial and agreeable path forward. The Company has elected to account for all qualifying lease concessions, those that are a direct consequence of COVID-19 and that result in revised lease consideration that is substantially the same or less than the original consideration, as if the enforceable rights and obligations associated with the concession existed in the original lease agreement. Rent abatements associated with such concessions are recognized in variable lease cost. Lease concessions granted as part of an agreement that substantially increases the total consideration as a result of the inclusion of additional terms, such as rent payments associated with a lease term extension, are treated as lease modifications. For stores where the Company suspended payments, the Company reclassified related amounts from operating lease liability to accrued expenses in the period during which rent was due, while continuing to recognize operating lease cost in the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss).
On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which among other things, provides refundable employee retention tax credits for wages paid to employees who are unable to work during the COVID-19 outbreak and the deferral of the employer–paid portion of social security taxes. Similar relief programs have also been established throughout the EMEA and APAC regions. Based on the Company's evaluation of the CARES Act and legislation across regions, the Company qualifies for certain payroll tax credits, and such government subsidies have been treated as offsets to the related operating expenses when recognized. During the thirteen and thirty-nine weeks ended October 31, 2020, the Company recognized qualified payroll tax credits reducing payroll expenses by approximately $2.8 million and $14.7 million, respectively, on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), The Company intends to continue to defer qualified payroll and other tax payments as permitted by the CARES Act and other regional legislation.
The Company also recognized asset impairment charges related to the Company’s right-of-use assets and property and equipment of $6.3 million and $57.3 million during the thirteen and thirty-nine weeks ended October 31, 2020, respectively, which were principally the result of the impact of COVID-19 on store cash flows. Refer to Note 9, “ASSET IMPAIRMENT,” for additional information.
In addition, the Company has also experienced other material impacts as a result of COVID-19, such as deferred tax valuation allowances and other tax charges during the thirty-nine weeks ended October 31, 2020, adversely impacting results by $77.4 million. Refer to Note 11, “INCOME TAXES,” for additional information.
Balance sheet, cash flow and liquidity
During the thirty-nine weeks ended October 31, 2020, the Company has taken various actions to preserve liquidity and manage cash flows in order to best position the business for key stakeholders, including (i) partnering with merchandise and non-merchandise vendors in regards to payment terms; (ii) tightly managing inventory receipts to align inventory with expected market demand; (iii) significantly reducing expenses to better align operating costs with sales; and (iv) temporarily suspending its share repurchase program in March 2020 and its dividend program in May 2020. In addition, despite the Company's recent history of partnering with its vendors regarding payment terms, certain payment term extensions were temporary and certain previously deferred payments have since been made. There can be no assurance that the Company will be able to maintain extended payment terms or continue to defer payments, which may result in incremental operating cash outflows in future periods.
As a precautionary measure in response to COVID-19, in March 2020, the Company borrowed $210.0 million under its senior secured asset-based revolving credit facility (the “ABL Facility”) to improve its near-term cash position and withdrew the majority of excess funds from the overfunded Rabbi Trust assets, providing the Company with $50.0 million of additional cash. In July 2020, the Company completed a private offering of $350.0 million aggregate principal amount of senior secured notes (the “Senior Secured Notes”) and used the net proceeds to repay all outstanding borrowings under the Company’s term loan facility (the “Term Loan Facility”), to repay a portion of the outstanding borrowings under the ABL Facility and to pay fees and expenses in connection with such repayments and the offering. Refer to Note 12, “BORROWINGS,” and Note 10, “ RABBI TRUST ASSETS,” for additional information.
As of October 31, 2020, the Company had liquidity of $1.158 billion as compared to $913.8 million as of February 1, 2020, comprised of cash and equivalents and actual incremental borrowing available to the Company under the ABL Facility.
All revenues are recognized in net sales in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). For information regarding the disaggregation of revenue, refer to Note 16, “SEGMENT REPORTING.”
Contract liabilities
The following table details certain contract liabilities representing unearned revenue as of October 31, 2020, February 1, 2020, November 2, 2019 and February 2, 2019:
(in thousands)
October 31, 2020
February 1, 2020
November 2, 2019
February 2, 2019
Gift card liability
$
22,910
$
28,844
$
19,855
$
26,062
Loyalty program liability
$
19,640
$
23,051
$
21,396
$
19,904
The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for the thirteen and thirty-nine weeks ended October 31, 2020 and November 2, 2019:
Thirteen Weeks Ended
Thirty-nine Weeks Ended
(in thousands)
October 31, 2020
November 2, 2019
October 31, 2020
November 2, 2019
Revenue associated with gift card redemptions and gift card breakage
$
11,717
$
12,653
$
32,792
$
40,729
Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs
$
9,686
$
9,249
$
23,377
$
23,795
5. NET INCOME (LOSS) PER SHARE
Net income (loss) per basic and diluted share attributable to A&F is computed based on the weighted-average number of outstanding shares of Class A Common Stock (“Common Stock”). Additional information pertaining to net income (loss) per share attributable to A&F follows:
Thirteen Weeks Ended
Thirty-nine Weeks Ended
(in thousands)
October 31, 2020
November 2, 2019
October 31, 2020
November 2, 2019
Shares of Common Stock issued
103,300
103,300
103,300
103,300
Weighted-average treasury shares
(40,742)
(40,201)
(40,759)
(38,368)
Weighted-average — basic shares
62,558
63,099
62,541
64,932
Dilutive effect of share-based compensation awards
1,319
812
—
—
Weighted-average — diluted shares
63,877
63,911
62,541
64,932
Anti-dilutive shares (1)
1,828
2,912
1,988
1,572
(1)Reflects the total number of shares related to outstanding share-based compensation awards that have been excluded from the computation of net income (loss) per diluted share because the impact would have been anti-dilutive. Unvested shares related to restricted stock units with performance-based and market-based vesting conditions can achieve up to 200% of their target vesting amount and are reflected at the maximum vesting amount less any dilutive portion.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized based on a three-level hierarchy. The three levels of inputs to measure fair value are as follows:
•Level 1—inputs are unadjusted quoted prices for identical assets or liabilities that are available in active markets that the Company can access at the measurement date.
•Level 2—inputs are other than quoted market prices included within Level 1 that are observable for assets or liabilities, directly or indirectly.
•Level 3—inputs to the valuation methodology are unobservable.
The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. The three levels of the hierarchy and the distribution of the Company’s assets and liabilities that are measured at fair value on a recurring basis, as of October 31, 2020 and February 1, 2020 were as follows:
Assets at Fair Value as of October 31, 2020
(in thousands)
Level 1
Level 2
Level 3
Total
Assets:
Cash equivalents (1)
$
68,271
$
43,596
$
—
$
111,867
Derivative instruments (2)
—
461
—
461
Rabbi Trust assets (3)
1
60,418
—
60,419
Restricted cash equivalents (4)
6,670
7,918
—
14,588
Total assets
$
74,942
$
112,393
$
—
$
187,335
Liabilities:
Derivative instruments (2)
$
—
$
367
$
—
$
367
Total liabilities
$
—
$
367
$
—
$
367
Assets and Liabilities at Fair Value as of February 1, 2020