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Abercrombie & Fitch On Track To Deliver Top-line Growth For FY18 - Quick Facts

Abercrombie & Fitch Co. (ANF) announced, for fiscal 2018, the company expects: net sales to be up in the range of 2% to 4%, including the adverse effect from the loss of fiscal 2017's 53rd week of approximately $40 million, partially offset by a benefit from foreign currency exchange rates of approximately $10 million. Comparable sales are to be up in the range of 2% to 4%. The company projects gross profit rate to be up slightly from the fiscal 2017 rate of 59.7%.

Abercrombie & Fitch expects to deliver approximately 70 new stores in fiscal 2018 through new store prototypes, remodeled stores and right-sizes. The company now expects to close up to 40 stores by year-end, primarily in the U.S., down from its previous expectations of closing up to 60 stores.

For the fourth quarter, the company expects: net sales to be down mid single digits, including the adverse effect from the calendar shift and the loss of fiscal 2017's 53rd week of approximately $60 million and the adverse effect from changes in foreign currency exchange rates of approximately $15 million. Comparable sales to be up low single digits. A gross profit rate to be flat to up slightly from the prior year rate of 58.4%.

For the third-quarter, excluding certain items, the company reported adjusted non-GAAP net income per diluted share of $0.33, compared to $0.30 last year. Year-over-year changes in foreign currency exchange rates, net of hedging, was a benefit of approximately $0.05 per diluted share. Gross profit rate was 61.3%, flat to last year, and down approximately 40 basis points on a constant currency basis, net of hedging.

Third-quarter net sales increased to $861 million, despite adverse impacts from the calendar shift and foreign currency. Comparable sales growth was 3%, for the quarter.

Fran Horowitz, CEO, said: "We delivered 3% comparable sales growth on top of 4% last year, with continued gross profit rate stabilization. Our strong U.S omnichannel business, and 16% global digital sales growth, confirm that our playbooks are working. As expected, we had a solid start to the holiday season, demonstrating the effectiveness of our continued focus on the customer. We are well-positioned to deliver top-line growth, gross profit rate expansion and operating expense leverage for the full year."

Separately, Abercrombie & Fitch Co. announced that Kristin Scott, currently Brand President of Hollister Co., has been appointed President, Global Brands, effective immediately. Also, the company has announced it has eliminated the individual brand president positions and that Stacia Andersen, Brand President of Abercrombie & Fitch and abercrombie kids, will be leaving the company.

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