Abercrombie & Fitch Co. reported GAAP net income per diluted share of $0.85 for the fourth quarter ended January 30, 2016, compared to $0.63 for Q4 last year.
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Excluding certain items, the company reported adjusted non-GAAP net income per diluted share of $1.08 for the fourth quarter, compared to $1.15 for the fourth quarter last year.
In addition, the company reported GAAP net income per diluted share of $0.51 for the full year, compared to $0.71 for the full year last year.
Excluding certain items, the company reported adjusted non-GAAP net income per diluted share of $1.12 for the full year, compared to $1.54 for the full year last year.
Adjusted non-GAAP net income per diluted share for the fourth quarter and full year were adversely impacted by approximately $0.23 and $0.67, respectively, related to changes in foreign currency exchange rates compared to the prior year.
The gross profit rate for the fourth quarter was 60.8%. Excluding certain items, the adjusted gross profit rate for the fourth quarter was 60.7% and included a 100 basis point improvement over last year on a constant currency basis, primarily due to higher average unit retails.
Stores and distribution expense for the fourth quarter was $430.4 million, down from $445.6 million last year primarily due to benefits from changes in foreign currency exchange rates and expense reduction efforts, partially offset by higher direct-to-consumer expense. Excluding certain items last year, adjusted stores and distribution expense decreased $11.2 million.
Marketing, general and administrative expense for the fourth quarter was $125.2 million, up from $119.2 million last year primarily due to higher compensation related expense, including a severance charge of $5.3 million. Excluding certain items last year, adjusted marketing, general and administrative expense increased $11.3 million.
Abercrombie & Fitch Co. restructuring charges of $2.4 million and asset impairment charges of $28.3 million for the fourth quarter last year are excluded from adjusted results.
The gross profit rate for the full year was 61.3%. Excluding certain items, the adjusted gross profit rate for the full year was 61.9% and included a 120 basis point improvement over last year on a constant currency basis primarily due to higher average unit retails coupled with lower average unit cost.
Abercrombie & Fitch Co. stores and distribution expense for the full year was $1.604 billion, down from $1.703 billion last year primarily due to benefits from changes in foreign currency exchange rates and expense reduction efforts, partially offset by higher direct-to-consumer expense. Excluding certain items, adjusted stores and distribution expense decreased $97.2 million.
Marketing, general and administrative expense for the full year was $470.3 million, up from $458.8 million last year primarily due to higher compensation related expense, including a severance charge of $5.3 million. Excluding certain items, adjusted marketing, general and administrative expense increased $10.4 million.
Restructuring benefits for the full year were $1.6 million, compared to restructuring charges last year of $8.4 million, and asset impairment charges for the full year were $18.2 million, compared to $45.0 million last year. Both were excluded from adjusted results. ■