ADDED
Form 10-K Summary 85 Index to Exhibits 86 Signatures 89 Abercrombie Fitch Co.
The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; EMEA; and APAC.
has worked to successfully transform its brands, business and culture, while delivering on its financial commitments.
As the Company looks forward, it s focused on evaluating opportunities that continue to deliver sustainable, profitable growth.
The Company expects to: Deliver Consistent Global Growth Across Brands by investing in owned-and-operated channels with the expectation of continued net sales growth, including through net new store openings, digital fulfillment, and marketing.
Expand Channels and Categories by increasing net sales growth in new and select markets through the use of franchise, wholesale, and licensing partnerships.
The Company also plans to expand into new, adjacent product categories that resonate with each brand s target customer.
Execute a Multifaceted Strategy that includes evaluating sourcing footprint, adjusting pricing or promotions, and expense reduction initiatives to stabilize product and operating costs in attempt to meaningfully mitigate external cost pressure, including near-term tariff impacts.
Enhance and Modernize our Key Systems and Leverage Technology to support operational productivity and to improve the customer journey.
Execute Financial Discipline to maintain double-digit operating margins and expand net income per diluted share.
REMOVED
Form 10-K Summary 86 Index to Exhibits 87 Signatures 90 Abercrombie Fitch Co.
The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; Europe, the Middle East and Africa (EMEA); and Asia-Pacific (APAC).
Foundation for Growth The Company introduced the Always Forward Plan in June of Fiscal 2022.
The Always Forward Plan is anchored on our strategic growth principles, which are to: Execute focused growth plans; Accelerate an enterprise-wide digital revolution; and Operate with financial discipline While the Company has significantly outperformed certain financial targets set forth in the Always Forward Plan, the growth principles continue to serve as a framework for the Company achieving sustainable and profitable growth and profitability.
Execute focused growth plans by: driving sales growth across regions and brand families primarily through marketing and store investments in our owned and operating channels, while pursuing new geographies and markets via franchise, wholesale and licensing partnerships; using our regionally relevant brand playbooks globally to align the brands products, voices, and experiences with customers, both digitally and in-store; and using testing and chase strategies to deliver compelling assortments and product collections across genders.
Accelerate an enterprise-wide digital revolution to improve the customer and associate experience by: continuing to progress on our multi-year enterprise resource planning ( ERP ) transformation and cloud migration journey; and investing in digital and technology to improve experiences across key parts of the customer journey while delivering a consistent omnichannel experience.
Operate with financial discipline by: using our agile inventory model and pricing strategies to position the Company to support customer demand throughout the year; and maintaining our durable balance sheet and consistent free cash flow profile, underpinned by our disciplined investment philosophy while balancing against macro environment impacts and efficiency efforts.
Over the past several years, the Company experienced an acceleration in sales fulfilled through digital channels, and continues to see a majority of sales through digital channels for the Abercrombie Fitch brand.
Despite, this acceleration in the shift towards digital channels, stores continue to comprise a majority of sales for the Hollister brand s customer.
These features allow our customers ease of access to shop the brands in-store and online offerings and create a seamless transition between omnichannel capabilities.