ABERCROMBIE & FITCH CO /DE/ANF
ABERCROMBIE & FITCH CO /DE/ Segments Disclosure
SEGMENT REPORTING
The Company’s reportable segments are based on the financial information the chief operating decision maker (“CODM”) uses to allocate resources and assess performance of its business.
During the second quarter of Fiscal 2023, to leverage the knowledge and experience of our regional teams to better drive brand growth, the Company reorganized its structure and now manages its business on a geographic basis, consisting of three reportable segments: Americas; Europe, the Middle East and Africa (EMEA); and Asia-Pacific (APAC). Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company’s segments, and therefore are included as a reconciling item between segment and total operating income (loss). The Americas reportable segment includes the results of operations in North America and South America. The EMEA reportable segment includes the results of operations in Europe, the Middle East and Africa. The APAC reportable segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. All prior periods presented are recast to conform to the new segment presentation.
The Company’s CODM manages business operations and evaluates the performance of each segment based on the net sales and operating income (loss) of the segment. The CODM considers actual performance relative to expectations, and growth potential to determine the appropriate allocation of resources to each segment.
Net sales by segment are presented by attributing revenues on the basis of the segment that fulfills the order. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributed to the segment. Corporate/other expenses include expenses incurred that are not directly attributed to a reportable segment and primarily relate to corporate or global functions such as design, sourcing, brand management, corporate strategy, information technology, finance, treasury, legal, human resources, and other corporate support services, as well as certain globally managed components of the planning, merchandising, and marketing functions.
The Company reports inventories by segment as that information is used by the CODM in determining allocation of resources to the segments. The Company does not report its other assets by segment as that information is not used by the CODM in assessing segment performance or allocating resources.
The following tables provide the Company’s segment information as of February 1, 2025 and February 3, 2024, and for Fiscal 2024, Fiscal 2023 and Fiscal 2022.
| Fiscal 2024 | ||||||||||||||
Americas (1) | EMEA | APAC | Total | |||||||||||
| Net Sales | $ | 4,027,514 | $ | 770,519 | $ | 150,554 | $ | 4,948,587 | ||||||
Cost of sales, exclusive of depreciation and amortization | 1,436,161 | 285,734 | 52,031 | 1,773,926 | ||||||||||
Store occupancy (2) | 327,458 | 114,664 | 33,545 | 475,667 | ||||||||||
Fulfillment (2) | 403,114 | 83,832 | 19,306 | 506,252 | ||||||||||
Other expense (3) | 650,288 | 176,468 | 57,683 | 884,439 | ||||||||||
| Segment income (loss) | $ | 1,210,493 | $ | 109,821 | $ | (12,011) | $ | 1,308,303 | ||||||
Operating loss not attributed to segments: | ||||||||||||||
Corporate and other unallocated expenses (4) | (567,483) | |||||||||||||
Operating income | $ | 740,820 | ||||||||||||
| Interest expense (income), Net | (27,857) | |||||||||||||
| Income before taxes | $ | 768,677 | ||||||||||||
| Depreciation and amortization | $ | 85,207 | $ | 25,070 | $ | 7,975 | $ | 118,252 | ||||||
| Depreciation and amortization not attributed to segments | 35,521 | |||||||||||||
Total depreciation and amortization | $ | 153,773 | ||||||||||||
| Capital expenditures | $ | 99,571 | $ | 17,764 | $ | 15,240 | $ | 132,575 | ||||||
| Capital expenditures not attributed to segments | 50,328 | |||||||||||||
| Total capital expenditures | $ | 182,903 | ||||||||||||
| Fiscal 2023 | ||||||||||||||
Americas (1) | EMEA | APAC | Total | |||||||||||
| Net Sales | $ | 3,455,674 | $ | 687,095 | $ | 137,908 | $ | 4,280,677 | ||||||
| Cost of sales, exclusive of depreciation and amortization | 1,279,050 | 259,347 | 48,868 | 1,587,265 | ||||||||||
Store occupancy (2) | 312,340 | 120,118 | 30,982 | 463,440 | ||||||||||
Fulfillment (2) | 353,538 | 72,610 | 17,505 | 443,653 | ||||||||||
Other expense (3) | 570,454 | 153,804 | 51,111 | 775,369 | ||||||||||
| Segment income (loss) | $ | 940,292 | $ | 81,216 | $ | (10,558) | $ | 1,010,950 | ||||||
Operating loss not attributed to segments: | ||||||||||||||
Corporate and other unallocated expenses (4) | (526,279) | |||||||||||||
Operating income | $ | 484,671 | ||||||||||||
| Interest expense (income), Net | 372 | |||||||||||||
| Income before taxes | $ | 484,299 | ||||||||||||
| Depreciation and amortization | $ | 73,779 | $ | 26,782 | $ | 5,921 | $ | 106,482 | ||||||
| Depreciation and amortization not attributed to segments | 34,622 | |||||||||||||
Total depreciation and amortization | $ | 141,104 | ||||||||||||
| Capital expenditures | $ | 78,062 | $ | 26,019 | $ | 4,331 | $ | 108,412 | ||||||
| Capital expenditures not attributed to segments | 49,385 | |||||||||||||
| Total capital expenditures | $ | 157,797 | ||||||||||||
| Fiscal 2022 | ||||||||||||||
Americas (1) | EMEA | APAC | Total | |||||||||||
| Net Sales | $ | 2,920,157 | $ | 658,794 | $ | 118,800 | $ | 3,697,751 | ||||||
| Cost of sales, exclusive of depreciation and amortization | 1,262,429 | 287,618 | 43,166 | 1,593,213 | ||||||||||
Store occupancy (2) | 299,678 | 105,868 | 39,831 | 445,377 | ||||||||||
Fulfillment (2) | 356,506 | 69,466 | 18,563 | 444,535 | ||||||||||
Other expense (3) | 518,099 | 150,657 | 46,347 | 715,103 | ||||||||||
| Segment income (loss) | $ | 483,445 | $ | 45,185 | $ | (29,107) | $ | 499,523 | ||||||
Operating loss not attributed to segments: | ||||||||||||||
Corporate and other unallocated expenses (4) | (406,875) | |||||||||||||
Operating income | $ | 92,648 | ||||||||||||
| Interest expense (income), Net | 25,632 | |||||||||||||
| Income before taxes | $ | 67,016 | ||||||||||||
| Depreciation and amortization | 75,231 | 21,497 | 8,123 | $ | 104,851 | |||||||||
| Depreciation and amortization not attributed to segments | 27,392 | |||||||||||||
| Total depreciation and amortization | $ | 132,243 | ||||||||||||
| Capital expenditures | 102,030 | 32,206 | 1,249 | $ | 135,485 | |||||||||
| Capital expenditures not attributed to segments | 29,081 | |||||||||||||
| Total capital expenditures | $ | 164,566 | ||||||||||||
(1)Includes the U.S., Canada, and Latin America. Net sales in the U.S. were $3.8 billion, $3.3 billion, and $2.8 billion in Fiscal 2024, Fiscal 2023, and Fiscal 2022, respectively.
(2)Included in selling expense on the Consolidated Statements of Operations and Comprehensive Income (Loss).
(3)Other expense includes store payroll, other direct store controllable and marketing expenses included in selling expense, as well as allocated and support related expenses included in general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss).
(4)Corporate and other unallocated expenses represent corporate overhead expenses that have not been allocated to any segment.
| (in thousands) | February 1, 2025 | February 3, 2024 | January 28, 2023 | ||||||||||||||
Assets | |||||||||||||||||
| Inventories | |||||||||||||||||
| Americas | $ | 463,148 | $ | 372,371 | $ | 404,040 | |||||||||||
| EMEA | 88,728 | 77,125 | 80,447 | ||||||||||||||
| APAC | 23,129 | 19,970 | 21,134 | ||||||||||||||
| Total inventories | $ | 575,005 | $ | 469,466 | $ | 505,621 | |||||||||||
| Assets not attributed to Segments | 2,724,882 | 2,504,767 | 2,207,479 | ||||||||||||||
| Total assets | $ | 3,299,887 | $ | 2,974,233 | $ | 2,713,100 | |||||||||||
The Company’s long-lived assets and intellectual property, which primarily relates to trademark assets associated with the Company’s global operations, by geographic area as of February 1, 2025, February 3, 2024, and January 28, 2023 were as follows:
| (in thousands) | February 1, 2025 | February 3, 2024 | January 28, 2023 | ||||||||||||||
Americas (1) (2) | $ | 991,673 | $ | 897,315 | $ | 929,381 | |||||||||||
EMEA (3) | 292,285 | 288,967 | 317,712 | ||||||||||||||
| APAC | 114,388 | 50,324 | 49,771 | ||||||||||||||
| Total | $ | 1,398,346 | $ | 1,236,606 | $ | 1,296,864 | |||||||||||
(1)Includes the U.S., Canada, and Latin America. Long-lived assets and intellectual property located in the U.S. were $965 million, $880 million, and $911 million as of February 1, 2025, February 3, 2024, and January 28, 2023 respectively.
(2)Includes intellectual property of $2.9 million, $2.9 million, and $3.4 million at February 1, 2025, February 3, 2024, and January 28, 2023, respectively.
(3)Includes intellectual property of $16.6 million, $17.4 million, and $18.3 million at February 1, 2025, February 3, 2024, and January 28, 2023, respectively.
Brand Information
The following table provides additional disaggregated revenue information, which is categorized by brand, for Fiscal 2024, Fiscal 2023 and Fiscal 2022 were as follows:
| (in thousands) | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | ||||||||||||||
Abercrombie | $ | 2,556,434 | $ | 2,201,686 | $ | 1,734,866 | |||||||||||
Hollister | 2,392,153 | 2,078,991 | 1,962,885 | ||||||||||||||
| Total | $ | 4,948,587 | $ | 4,280,677 | $ | 3,697,751 | |||||||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.