Item 1. Financial Statements
Item 1. Financial Statements (Unaudited)
Abercrombie & Fitch Co.
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income
(Thousands, except per share amounts)
(Unaudited)
Thirteen Weeks Ended Twenty-Six Weeks Ended
July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Net sales $ 805,091 $ 864,850 $ 1,617,853 $ 1,646,255
Cost of sales, exclusive of depreciation and amortization 339,200 301,365 702,416 587,636
Gross profit 465,891 563,485 915,437 1,058,619
Stores and distribution expense 340,791 325,847 678,334 641,355
Marketing, general and administrative expense 124,168 123,913 246,317 244,860
Flagship store exit benefits — — — —
Asset impairment 2,170 786 5,592 3,450
Other operating expense (income), net 953 ( 1,848 ) ( 2,889 ) ( 3,266 )
Operating (loss) income ( 2,191 ) 114,787 ( 11,917 ) 172,220
Interest expense, net 6,917 11,275 14,224 19,881
(Loss) income before income taxes ( 9,108 ) 103,512 ( 26,141 ) 152,339
Income tax expense (benefit) 5,634 ( 6,944 ) 3,447 ( 823 )
Net (loss) income ( 14,742 ) 110,456 ( 29,588 ) 153,162
Less: Net income attributable to noncontrolling interests 2,092 1,956 3,715 2,894
Net (loss) income attributable to A&F $ ( 16,834 ) $ 108,500 $ ( 33,303 ) $ 150,268
Net (loss) income attributable to A&F per share
Basic $ ( 0.33 ) $ 1.77 $ ( 0.65 ) $ 2.43
Diluted $ ( 0.33 ) $ 1.69 $ ( 0.65 ) $ 2.32
Weighted-average shares outstanding
Basic 50,441 61,428 51,262 61,914
Diluted 50,441 64,136 51,262 64,803
Other comprehensive (loss) income
Foreign currency translation adjustments, net of tax $ ( 4,914 ) $ ( 1,986 ) $ ( 15,317 ) $ ( 3,260 )
Derivative financial instruments, net of tax ( 1,729 ) 2,703 ( 17 ) 5,302
Other comprehensive (loss) income ( 6,643 ) 717 ( 15,334 ) 2,042
Comprehensive (loss) income ( 21,385 ) 111,173 ( 44,922 ) 155,204
Less: Comprehensive income attributable to noncontrolling interests 2,092 1,956 3,715 2,894
Comprehensive (loss) income attributable to A&F $ ( 23,477 ) $ 109,217 $ ( 48,637 ) $ 152,310
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
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Abercrombie & Fitch Co.
Condensed Consolidated Balance Sheets
(Thousands, except par value amounts)
(Unaudited)
July 30, 2022 January 29, 2022
Assets
Current assets:
Cash and equivalents $ 369,957 $ 823,139
Receivables 79,820 69,102
Inventories 708,024 525,864
Other current assets 104,887 89,654
Total current assets 1,262,688 1,507,759
Property and equipment, net 511,181 508,336
Operating lease right-of-use assets 740,627 698,231
Other assets 219,598 225,165
Total assets $ 2,734,094 $ 2,939,491
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 408,297 $ 374,829
Accrued expenses 342,690 395,815
Short-term portion of operating lease liabilities 202,699 222,823
Income taxes payable 5,582 21,773
Total current liabilities 959,268 1,015,240
Long-term liabilities:
Long-term portion of operating lease liabilities 714,265 697,264
Long-term borrowings, net 304,219 303,574
Other liabilities 83,415 86,089
Total long-term liabilities 1,101,899 1,086,927
Stockholders’ equity
Class A Common Stock: $ 0.01 par value: 150,000 shares authorized and 103,300 shares issued for all periods presented
1,033 1,033
Paid-in capital 405,127 413,190
Retained earnings 2,333,867 2,386,156
Accumulated other comprehensive loss, net of tax (“AOCL”) ( 130,040 ) ( 114,706 )
Treasury stock, at average cost: 53,829 and 50,315 shares as of July 30, 2022 and January 29, 2022, respectively
( 1,948,199 ) ( 1,859,583 )
Total Abercrombie & Fitch Co. stockholders’ equity 661,788 826,090
Noncontrolling interests 11,139 11,234
Total stockholders’ equity 672,927 837,324
Total liabilities and stockholders’ equity $ 2,734,094 $ 2,939,491
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
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Abercrombie & Fitch Co.
Condensed Consolidated Statements of Stockholders’ Equity
(Thousands, except per share amounts)
(Unaudited)
Thirteen Weeks Ended July 30, 2022
Common Stock Paid-in
capital Non-controlling interests Retained
earnings AOCL Treasury stock Total
stockholders’
equity
Shares
outstanding Par
value Shares At average
cost
Balance, April 30, 2022 50,442 $ 1,033 $ 398,412 $ 9,444 $ 2,350,807 $ ( 123,397 ) 52,858 $ ( 1,931,494 ) $ 704,805
Net loss — — — 2,092 ( 16,834 ) — — — ( 14,742 )
Purchase of Common Stock ( 1,000 ) — — — — — 1,000 ( 17,775 ) ( 17,775 )
Share-based compensation issuances and exercises 29 — ( 1,045 ) — ( 106 ) — ( 29 ) 1,070 ( 81 )
Share-based compensation expense — — 7,760 — — — — — 7,760
Derivative financial instruments, net of tax — — — — — ( 1,729 ) — — ( 1,729 )
Foreign currency translation adjustments, net of tax — — — — — ( 4,914 ) — — ( 4,914 )
Distributions to noncontrolling interests, net — — — ( 397 ) — — — — ( 397 )
Ending balance at July 30, 2022 49,471 $ 1,033 $ 405,127 $ 11,139 $ 2,333,867 $ ( 130,040 ) 53,829 $ ( 1,948,199 ) $ 672,927
Thirteen Weeks Ended July 31, 2021
Common Stock Paid-in
capital Non-controlling interests Retained
earnings AOCL Treasury stock Total
stockholders’
equity
Shares
outstanding Par
value Shares At average
cost
Balance, May 1, 2021 61,935 $ 1,033 $ 395,277 $ 8,776 $ 2,169,748 $ ( 100,982 ) 41,365 $ ( 1,523,902 ) $ 949,950
Net income — — — 1,956 108,500 — — — 110,456
Purchase of Common Stock ( 2,374 ) — — — 2,374 ( 100,000 ) ( 100,000 )
Share-based compensation issuances and exercises 130 — ( 1,873 ) — ( 3,239 ) — ( 130 ) 4,800 ( 312 )
Share-based compensation expense — — 6,487 — — — — — 6,487
Derivative financial instruments, net of tax — — — — — 2,703 — — 2,703
Foreign currency translation adjustments, net of tax — — — — — ( 1,986 ) — — ( 1,986 )
Distributions to noncontrolling interests, net — — — ( 365 ) — — — — ( 365 )
Ending balance at July 31, 2021 59,691 $ 1,033 $ 399,891 $ 10,367 $ 2,275,009 $ ( 100,265 ) 43,609 $ ( 1,619,102 ) $ 966,933
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
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Abercrombie & Fitch Co.
Condensed Consolidated Statements of Stockholders’ Equity
(Thousands, except per share amounts)
(Unaudited)
Twenty-Six Weeks Ended July 30, 2022
Common Stock Paid-in
capital Non-controlling interests Retained
earnings AOCL Treasury stock Total
stockholders’
equity
Shares
outstanding Par
value Shares At average
cost
Balance, January 29, 2022 52,985 $ 1,033 $ 413,190 $ 11,234 $ 2,386,156 $ ( 114,706 ) 50,315 $ ( 1,859,583 ) $ 837,324
Net loss — — — 3,715 ( 33,303 ) — — — ( 29,588 )
Purchase of Common Stock ( 4,260 ) — — — — — 4,260 ( 117,775 ) ( 117,775 )
Share-based compensation issuances and exercises 746 — ( 24,179 ) — ( 18,986 ) — ( 746 ) 29,159 ( 14,006 )
Share-based compensation expense — — 16,116 — — — — — 16,116
Derivative financial instruments, net of tax — — — — — ( 17 ) — — ( 17 )
Foreign currency translation adjustments, net of tax — — — — — ( 15,317 ) — — ( 15,317 )
Distributions to noncontrolling interests, net — — — ( 3,810 ) — — — — ( 3,810 )
Ending balance at July 30, 2022 49,471 $ 1,033 $ 405,127 $ 11,139 $ 2,333,867 $ ( 130,040 ) 53,829 $ ( 1,948,199 ) $ 672,927
Twenty-Six Weeks Ended July 31, 2021
Common Stock Paid-in
capital Non-controlling interests Retained
earnings AOCL Treasury stock Total
stockholders’
equity
Shares
outstanding Par
value Shares At average
cost
Balance, January 30, 2021 62,399 $ 1,033 $ 401,283 $ 12,684 $ 2,149,470 $ ( 102,307 ) 40,901 $ ( 1,512,851 ) $ 949,312
Net income — — — 2,894 150,268 — — — 153,162
Purchase of Common Stock ( 3,451 ) — — — 3,451 ( 135,249 ) ( 135,249 )
Share-based compensation issuances and exercises 743 — ( 16,329 ) — ( 24,729 ) — ( 743 ) 28,998 ( 12,060 )
Share-based compensation expense — — 14,937 — — — — — 14,937
Derivative financial instruments, net of tax — — — — — 5,302 — — 5,302
Foreign currency translation adjustments, net of tax — — — — — ( 3,260 ) — — ( 3,260 )
Distributions to noncontrolling interests, net — — — ( 5,211 ) — — — — ( 5,211 )
Ending balance at July 31, 2021 59,691 $ 1,033 $ 399,891 $ 10,367 $ 2,275,009 $ ( 100,265 ) 43,609 $ ( 1,619,102 ) $ 966,933
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
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Abercrombie & Fitch Co.
Condensed Consolidated Statements of Cash Flows
(Thousands)
(Unaudited)
Twenty-Six Weeks Ended
July 30, 2022 July 31, 2021
Operating activities
Net (loss) income $ ( 29,588 ) $ 153,162
Adjustments to reconcile net (loss) income to net cash (used for) provided by operating activities:
Depreciation and amortization 65,543 72,249
Asset impairment 5,592 3,450
(Gain) loss on disposal ( 1,083 ) 2,188
Benefit for deferred income taxes ( 1,629 ) ( 21,187 )
Share-based compensation 16,116 14,937
Loss on extinguishment of debt — 5,347
Changes in assets and liabilities:
Inventories ( 184,657 ) ( 11,849 )
Accounts payable and accrued expenses ( 34,013 ) ( 63,562 )
Operating lease right-of-use assets and liabilities ( 41,122 ) ( 93,040 )
Income taxes ( 17,154 ) 1,379
Other assets ( 38,436 ) ( 11,575 )
Other liabilities 698 ( 1,554 )
Net cash (used for) provided by operating activities ( 259,733 ) 49,945
Investing activities
Purchases of property and equipment ( 59,582 ) ( 35,269 )
Proceeds from the sale of property and equipment 7,972 —
Net cash used for investing activities ( 51,610 ) ( 35,269 )
Financing activities
Purchase of senior secured notes — ( 46,969 )
Payment of debt issuance or modification costs and fees — ( 1,837 )
Purchases of Common Stock ( 117,775 ) ( 135,249 )
Other financing activities ( 17,649 ) ( 16,192 )
Net cash used for financing activities ( 135,424 ) ( 200,247 )
Effect of foreign currency exchange rates on cash ( 7,567 ) ( 2,547 )
Net decrease in cash and equivalents, and restricted cash and equivalents ( 454,334 ) ( 188,118 )
Cash and equivalents, and restricted cash and equivalents, beginning of period 834,368 1,124,157
Cash and equivalents, and restricted cash and equivalents, end of period $ 380,034 $ 936,039
Supplemental information related to non-cash activities
Purchases of property and equipment not yet paid at end of period $ 50,133 $ 35,789
Operating lease right-of-use assets additions, net of terminations, impairments and other reductions 139,751 17,159
Supplemental information related to cash activities
Cash paid for interest 13,463 14,950
Cash paid for income taxes 24,566 24,132
Cash received from income tax refunds 139 570
Cash paid for amounts included in measurement of operating lease liabilities, net of abatements 159,423 230,836
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
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Abercrombie & Fitch Co.
Index for Notes to Condensed Consolidated Financial Statements (Unaudited)
Page No.
Note 1.
NATURE OF BUSINESS
9
Note 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9
Note 3.
REVENUE RECOGNITION
10
Note 4.
NET (LOSS) INCOME PER SHARE
11
Note 5.
FAIR VALUE
11
Note 6.
PROPERTY AND EQUIPMENT, NET
12
Note 7.
LEASES
12
Note 8.
ASSET IMPAIRMENT
13
Note 9.
INCOME TAXES
13
Note 10.
BORROWINGS
14
Note 11.
SHARE-BASED COMPENSATION
15
Note 12.
DERIVATIVE INSTRUMENTS
16
Note 13.
ACCUMULATED OTHER COMPREHENSIVE LOSS
18
Note 14.
SEGMENT REPORTING
19
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Abercrombie & Fitch Co.
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, digitally-led omnichannel retailer. The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily through its digital channels and Company-owned stores, as well as through various third-party arrangements. The Company’s two brand-based operating segments are Hollister, which includes the Company’s Hollister, Gilly Hicks and Social Tourist brands, and Abercrombie, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands. These five 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 operates primarily in North America, Europe and Asia.
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”) and in a United States of America (the “U.S.”) business venture with Dixar L.L.C. (“Dixar”), each of which meets the definition of a variable interest entity (“VIE”). The purpose of the business ventures with MAF is to operate stores in the United Arab Emirates and Kuwait and the purpose of the business venture with Dixar is to hold the intellectual property related to the Social Tourist brand. 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 the noncontrolling interests’ (“NCI”) portions of net income presented as net income attributable to NCI on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income and the NCI portion of stockholders’ 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/ ending Number of weeks
Fiscal 2021 January 29, 2022 52
Fiscal 2022 January 28, 2023 52
Fiscal 2023 February 3, 2024 53
Interim financial statements
The Condensed Consolidated Financial Statements as of July 30, 2022, and for the thirteen and twenty-six week periods ended July 30, 2022 and July 31, 2021, are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim consolidated financial statements. 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 2021 filed with the SEC on March 28, 2022 (the “Fiscal 2021 Form 10-K”). The January 29, 2022 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 U.S. (“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 2022.
During the first quarter of 2022, the Company reclassified Flagship store exit benefits into Stores and distribution expense on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. There were no changes to Operating (loss) income or Net (loss) income. Prior period amounts have been reclassified to conform to current year’s presentation.
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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 coronavirus disease (“COVID-19”) continues to impact the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the duration, spread and emergence of new variants of the virus, the availability and acceptance of effective vaccines, boosters or medical treatments, the impact of COVID-19 on the length or frequency of store closures, and the extent to which COVID-19 impacts worldwide macroeconomic conditions including interest rates, foreign currency exchange rates, and governmental, business and consumer reactions to the pandemic. The Company’s assessment of these, as well as other factors, such as the impact of a slowing economy, rising interest rates and continued inflation, 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 July 30, 2022 January 29, 2022 July 31, 2021 January 30, 2021
Cash and equivalents Cash and equivalents $ 369,957 $ 823,139 $ 921,504 $ 1,104,862
Long-term restricted cash and equivalents Other assets 10,077 11,229 14,268 14,814
Short-term restricted cash and equivalents Other current assets — — 267 4,481
Cash and equivalents and restricted cash and equivalents $ 380,034 $ 834,368 $ 936,039 $ 1,124,157
3. REVENUE RECOGNITION
Disaggregation of revenue
All revenues are recognized in net sales in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income . For information regarding the disaggregation of revenue, refer to Note 14, “ SEGMENT REPORTING . ”
Contract liabilities
The following table details certain contract liabilities representing unearned revenue as of July 30, 2022, January 29, 2022 and July 31, 2021:
(in thousands) July 30, 2022 January 29, 2022 July 31, 2021
Gift card liability $ 35,205 $ 36,984 $ 29,038
Loyalty programs liability 21,525 22,757 20,962
The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Revenue associated with gift card redemptions and gift card breakage $ 22,652 $ 17,353 $ 45,653 $ 33,509
Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs 10,630 9,897 $ 20,811 $ 19,450
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4. NET (LOSS) INCOME PER SHARE
Net (loss) income 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 (loss) income per share attributable to A&F follows:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Shares of Common Stock issued 103,300 103,300 103,300 103,300
Weighted-average treasury shares ( 52,859 ) ( 41,872 ) ( 52,038 ) ( 41,386 )
Weighted-average — basic shares 50,441 61,428 51,262 61,914
Dilutive effect of share-based compensation awards — 2,708 — 2,889
Weighted-average — diluted shares 50,441 64,136 51,262 64,803
Anti-dilutive shares (1)
4,209 1,194 4,245 1,277
(1) Reflects the total number of shares related to outstanding share-based compensation awards that have been excluded from the computation of net (loss) income 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.
5. FAIR VALUE
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 measured at fair value on a recurring basis, as of July 30, 2022 and January 29, 2022, were as follows:
Assets and liabilities at Fair Value as of July 30, 2022
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents (1)
$ 37,389 $ 9,900 $ — $ 47,289
Derivative instruments (2)
— 5,169 — 5,169
Rabbi Trust assets (3)
1 63,001 — 63,002
Restricted cash equivalents (1)
1,584 5,256 — 6,840
Total assets $ 38,974 $ 83,326 $ — $ 122,300
Liabilities:
Derivative instruments (2)
$ — $ 3 $ — $ 3
Total liabilities $ — $ 3 $ — $ 3
Assets at Fair Value as of January 29, 2022
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents (1)
$ 49,309 $ 11,643 $ — $ 60,952
Derivative instruments (2)
— 4,973 — 4,973
Rabbi Trust assets (3)
1 62,272 — 62,273
Restricted cash equivalents (1)
5,391 2,326 — 7,717
Total assets $ 54,701 $ 81,214 $ — $ 135,915
(1) Level 1 assets consisted of investments in money market funds and U.S. treasury bills. Level 2 assets consisted of time deposits.
(2) Level 2 assets consisted primarily of foreign currency exchange forward contracts.
(3) Level 1 assets consisted of investments in money market funds. Level 2 assets consisted of trust-owned life insurance policies.
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The Company’s Level 2 assets consisted of:
• Trust-owned life insurance policies, which were valued using the cash surrender value of the life insurance policies;
• Time deposits, which were valued at cost, approximating fair value, due to the short-term nature of these investments and derivative instruments, primarily foreign currency exchange forward contracts, which were valued using quoted market prices of the same or similar instruments, adjusted for counterparty risk.
Fair value of long-term borrowings
The Company’s borrowings under its senior secured notes, which have a fixed 8.75% interest rate and mature on July 15, 2025 (the “Senior Secured Notes”) are carried at historical cost in the accompanying Condensed Consolidated Balance Sheets. The carrying amount and fair value of the Company’s long-term gross borrowings were as follows:
(in thousands) July 30, 2022 January 29, 2022
Gross borrowings outstanding, carrying amount $ 307,730 $ 307,730
Gross borrowings outstanding, fair value 302,729 327,732
6. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consisted of:
(in thousands) July 30, 2022 January 29, 2022
Property and equipment, at cost $ 2,462,069 $ 2,453,493
Less: Accumulated depreciation and amortization ( 1,950,888 ) ( 1,945,157 )
Property and equipment, net $ 511,181 $ 508,336
Refer to Note 8, “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021.
7. LEASES
The Company is a party to leases related to its Company-operated retail stores as well as for certain of its distribution centers, office space, information technology and equipment.
The following table provides a summary of the Company’s operating lease costs for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Single lease cost (1)
$ 61,953 $ 70,325 $ 119,533 $ 140,077
Variable lease cost (2)
32,520 19,300 65,678 42,466
Operating lease right-of-use asset impairment (3)
1,573 240 3,488 2,704
Sublease income (4)
( 952 ) ( 1,095 ) ( 1,961 ) ( 2,188 )
Total operating lease cost $ 95,094 $ 88,770 $ 186,738 $ 183,059
(1) Included amortization and interest expense associated with operating lease right-of-use assets and the impact from remeasurement of operating lease liabilities.
(2) Includes variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs, as well as the benefit of $ 0.9 million and $ 2.6 million of rent abatements during the thirteen and twenty-six weeks ended July 30, 2022, respectively, related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. The benefit related to rent abatements recognized during the thirteen and twenty-six weeks ended July 31, 2021 was $ 5.2 million and $ 13.0 million respectively.
(3) Refer to Note 8, “ ASSET IMPAIRMENT ,” for details related to operating lease right-of-use asset impairment charges.
(4) The terms of the sublease agreement entered into by the Company with a third party during Fiscal 2020 related to one of its previous flagship store locations have not changed materially from that disclosed in Note 8, “LEASES,” of the Notes to Consolidated Financial Statements contained in “Item 8. Financial Statements and Supplementary Data” of the Fiscal 2021 Form 10-K. Sublease income is recognized in other operating (loss) income, net on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.
The Company suspended rent payments for a number of stores that were closed as a result of COVID-19, and has been successful in obtaining certain rent abatements and landlord concessions of rent payable.
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The Company had minimum commitments related to operating lease contracts that have not yet commenced, primarily for its Company-operated retail stores, of approximately $ 25.0 million as of July 30, 2022.
8. ASSET IMPAIRMENT
Asset impairment charges for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021 were as follows:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Operating lease right-of-use asset impairment $ 1,573 $ 240 $ 3,488 $ 2,704
Property and equipment asset impairment 597 546 2,104 746
Total asset impairment $ 2,170 $ 786 $ 5,592 $ 3,450
Asset impairment charges for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021 related to certain of the Company’s stores across brands, geographies and store formats. The impairment charges for the twenty-six weeks ended July 30, 2022 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 16.9 million, including $ 16.1 million related to operating lease right-of-use assets. The impairment charges for the twenty-six weeks ended July 31, 2021 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 9.4 million, including $ 8.8 million related to operating lease right-of-use assets.
9. INCOME TAXES
The quarterly provision for income taxes is based on the current estimate of the annual effective income tax rate and the tax effect of discrete items occurring during the quarter. The Company’s quarterly provision and the estimate of the annual effective tax rate are subject to significant variation due to several factors. These factors include variability in the pre-tax jurisdictional mix of earnings, changes in how the Company does business including entering into new businesses or geographies, changes in foreign currency exchange rates, changes in laws, regulations, interpretations and administrative practices, relative changes in expenses or losses for which tax benefits are not recognized and the impact of discrete items. In addition, jurisdictions where the Company anticipates an ordinary loss for the fiscal year for which the Company does not anticipate future tax benefits are excluded from the overall computation of estimated annual effective tax rate and no tax benefits are recognized in the period related to losses in such jurisdictions. The impact of these items on the effective tax rate will be greater at lower levels of pre-tax earnings.
On August 16, 2022, the Inflation Reduction Act was enacted into U.S. law. The Company does not currently expect that the Inflation Reduction Act will have a material impact on its income taxes.
Impact of valuation allowances and other tax charges
During the thirteen weeks ended July 30, 2022, the Company did not recognize income tax benefits on $ 26.4 million of pretax
losses, primarily in Switzerland, resulting in adverse tax impacts of $ 4.8 million.
During the twenty-six weeks ended July 30, 2022, the Company did not recognize income tax benefits on $ 39.8 million of pre-tax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 7.2 million.
As of July 30, 2022, there were approximately $ 12.1 million of net deferred tax assets in China. The realization of these net deferred tax assets is dependent upon the future generation of sufficient taxable profits in China. During the thirteen weeks ended July 30, 2022, the company recorded a $0.2 million valuation allowance on net operating losses currently not projected to be utilized in future years. While the Company believes that the remaining net deferred tax assets are more-likely-than-not to be realized, it is not a certainty, as the Company continues to evaluate and respond to emerging situations, such as the COVID-19 pandemic. The company is closely monitoring its operations in China. Should circumstances change, the net deferred tax assets may become subject to additional valuation allowances in the future. Additional valuation allowances would result in additional tax expense.
During the thirteen weeks ended July 31, 2021, as a result of the improvement seen in business conditions, the Company recognized $ 23.5 million of discrete tax benefits due to the release of valuation allowances, primarily in the U.S. and Germany, and a discrete tax benefit of $ 3.9 million due to the impact of a statutory rate change in the U.K on the valuation of deferred tax assets. The Company also recognized $ 6.7 million of tax benefits due to the anticipated utilization of deferred tax assets against projected pre-tax income for the full fiscal year, primarily in the U.S. and Germany based on information available, on which a valuation allowance had previously been established.
During the twenty-six weeks ended July 31, 2021, as a result of the improvement seen in business conditions, the Company recognized $ 23.6 million of discrete tax benefits due to the release of valuation allowances, primarily in the U.S. and Germany,
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and a discrete tax benefit of $ 3.9 million due to the impact of a statutory rate change in the U.K on the valuation of deferred tax assets. The Company also recognized $ 10.1 million of tax benefits related to the utilization of deferred tax assets against projected pre-tax income for the full fiscal year, primarily in the U.S. and Germany, based on information available, on which a valuation allowance had previously been established.
The Company continues to maintain valuation allowances in certain jurisdictions, principally Japan and Switzerland.
Share-based compensation
Refer to Note 11, “ SHARE-BASED COMPENSATION ,” for details on income tax benefits and charges related to share-based compensation awards during the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021.
10. BORROWINGS
Details on the Company’s long-term borrowings, net, as of July 30, 2022 and January 29, 2022 are as follows:
(in thousands) July 30, 2022 January 29, 2022
Long-term portion of borrowings, gross at carrying amount $ 307,730 $ 307,730
Unamortized fees ( 3,511 ) ( 4,156 )
Long-term borrowings, net $ 304,219 $ 303,574
Senior Secured Notes
The terms of the Senior Secured Notes have remained unchanged from those disclosed in Note 13, “BORROWINGS,” of the Notes to Consolidated Financial Statements contained in “Item 8. Financial Statements and Supplementary Data” of on the Fiscal 2021 Form 10-K.
ABL Facility
The terms of the Company’s senior secured revolving credit facility of up to $ 400.0 million (the “ABL Facility”) remained unchanged from those disclosed in Note 13, “BORROWINGS,” of the Notes to Consolidated Financial Statements contained in “Item 8. Financial Statements and Supplementary Dat a ” of the Fiscal 2021 Form 10-K.
The Company did not have any borrowings outstanding under the ABL Facility as of July 30, 2022 or as of January 29, 2022.
As of July 30, 2022, availability under the ABL Facility was $ 399.2 million, net of $ 0.8 million in outstanding stand-by letters of credit. As the Company must maintain excess availability equal to the greater of 10% of the loan cap or $30 million under the ABL Facility, borrowing capacity available to the Company under the ABL Facility was $ 359.2 million as of July 30, 2022.
Representations, warranties and covenants
The agreements related to the Senior Secured Notes and the ABL Facility contain various representations, warranties and restrictive covenants that, among other things and subject to specified exceptions, restrict the ability of the Company and its subsidiaries to: grant or incur liens; incur, assume or guarantee additional indebtedness; sell or otherwise dispose of assets, including capital stock of subsidiaries; make investments in certain subsidiaries; pay dividends, make distributions or redeem or repurchase capital stock; change the nature of their business; and consolidate or merge with or into, or sell substantially all of the assets of the Company or Abercrombie & Fitch Management Co. (“A&F Management”), a wholly-owned indirect subsidiary of A&F, to another entity.
The Senior Secured Notes are guaranteed on a senior secured basis, jointly and severally, by A&F and each of the existing and future wholly-owned domestic restricted subsidiaries of A&F that guarantee or will guarantee A&F Management’s Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) or certain future capital markets indebtedness.
Certain of the agreements related to the Senior Secured Notes and the ABL Facility also contain certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance and providing additional guarantees and collateral in certain circumstances.
The Company was in compliance with all debt covenants under these agreements as of July 30, 2022.
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11. SHARE-BASED COMPENSATION
Financial statement impact
The following table details share-based compensation expense and the related income tax impacts for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Share-based compensation expense $ 7,760 $ 6,487 $ 16,116 $ 14,937
Income tax benefit associated with share-based compensation expense recognized 1,015 1,388 $ 1,980 $ 1,686
The following table details discrete income tax benefits and charges related to share-based compensation awards during the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Income tax discrete (charges) benefits realized for tax deductions related to the issuance of shares $ ( 113 ) $ 826 $ 1,998 $ 4,016
Income tax discrete (charges) benefits realized upon cancellation of stock appreciation rights ( 8 ) — ( 203 ) ( 3 )
Total income tax discrete (charges) benefits related to share-based compensation awards $ ( 121 ) $ 826 $ 1,795 $ 4,013
The following table details the amount of employee tax withheld by the Company upon the issuance of shares associated with restricted stock units vesting and the exercise of stock appreciation rights for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Employee tax withheld upon issuance of shares (1)
$ 312 $ 312 $ 14,006 $ 12,060
(1) Classified within other financing activities on the Condensed Consolidated Statements of Cash Flows.
Restricted stock units
The following table summarizes activity for restricted stock units for the twenty-six weeks ended July 30, 2022:
Service-based Restricted
Stock Units Performance-based Restricted
Stock Units Market-based Restricted
Stock Units
Number of
Underlying
Shares Weighted-
Average Grant
Date Fair Value Number of
Underlying
Shares Weighted-
Average Grant
Date Fair Value Number of
Underlying
Shares Weighted-
Average Grant
Date Fair Value
Unvested at January 29, 2022 2,532,240 $ 17.16 340,149 $ 27.08 680,184 $ 22.81
Granted 913,689 29.74 165,263 32.07 82,635 45.15
Adjustments for performance achievement
— — 5,668 23.05 18,881 36.24
Vested ( 862,855 ) 17.84 ( 194,465 ) 23.05 ( 113,284 ) 36.24
Forfeited ( 38,522 ) 18.79 — — — —
Unvested at July 30, 2022 (1)
2,544,552 $ 21.43 316,615 $ 32.08 668,416 $ 23.67
(1) Unvested shares related to restricted stock units with performance-based and market-based vesting conditions are reflected at 100% of their target vesting amount in the table above. Unvested shares related to restricted stock units with performance-based and market-based vesting conditions can be achieved at up to 200% of their target vesting amount.
The following table details unrecognized compensation cost and the remaining weighted-average period over which these costs are expected to be recognized for restricted stock units as of July 30, 2022:
(in thousands) Service-based Restricted
Stock Units Performance-based Restricted
Stock Units Market-based Restricted
Stock Units
Unrecognized compensation cost $ 44,825 $ — $ 17,907
Remaining weighted-average period cost is expected to be recognized (years) 1.3 0.0 1.0
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Additional information pertaining to restricted stock units for the twenty-six weeks ended July 30, 2022 and July 31, 2021 follows:
(in thousands) July 30, 2022 July 31, 2021
Service-based restricted stock units:
Total grant date fair value of awards granted $ 27,173 $ 21,358
Total grant date fair value of awards vested 15,393 12,427
Performance-based restricted stock units:
Total grant date fair value of awards granted 5,300 4,658
Total grant date fair value of awards vested 4,482 —
Market-based restricted stock units:
Total grant date fair value of awards granted 3,731 3,651
Total grant date fair value of awards vested 4,105 3,390
The weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the twenty-six weeks ended July 30, 2022 and July 31, 2021 were as follows:
July 30, 2022 July 31, 2021
Grant date market price $ 32.07 $ 31.78
Fair value 45.15 49.81
Price volatility 66 % 66 %
Expected term (years) 2.9 2.9
Risk-free interest rate 2.3 % 0.3 %
Dividend yield — —
Average volatility of peer companies 72.9 72.0
Average correlation coefficient of peer companies 0.5146 0.4694
Stock appreciation rights
The following table summarizes stock appreciation rights activity for the twenty-six weeks ended July 30, 2022:
Number of
Underlying
Shares Weighted-Average
Exercise Price Aggregate
Intrinsic Value Weighted-Average
Remaining
Contractual Life (years)
Outstanding at January 29, 2022 236,139 $ 32.55
Forfeited or expired ( 37,800 ) 48.72
Outstanding at July 30, 2022
198,339 $ 29.47 $ — 2.4
Stock appreciation rights exercisable at July 30, 2022 198,339 $ 29.47 $ — 2.4
No stock appreciation rights were exercised during the twenty-six weeks ended July 30, 2022 or July 31, 2021.
12. DERIVATIVE INSTRUMENTS
The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivative instruments, primarily forward contracts, to manage the financial impacts of these exposures. The Company does not use forward contracts to engage in currency speculation and does not enter into derivative financial instruments for trading purposes.
The Company uses derivative instruments, primarily foreign currency exchange forward contracts designated as cash flow hedges, to hedge the foreign currency exchange rate exposure associated with forecasted foreign-currency-denominated intercompany inventory sales to foreign subsidiaries and the related settlement of the foreign-currency-denominated intercompany receivables. Fluctuations in foreign currency exchange rates will either increase or decrease the Company’s intercompany equivalent cash flows and affect the Company’s U.S. Dollar earnings. Gains or losses on the foreign currency exchange forward contracts that are used to hedge these exposures are expected to partially offset this variability. Foreign currency exchange forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed upon settlement date. These foreign currency exchange forward contracts typically have a maximum term
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of twelve months. The sale of the inventory to the Company’s customers will result in the reclassification of related derivative gains and losses that are reported in AOCL into earnings.
The Company also uses foreign currency exchange forward contracts to hedge certain foreign-currency-denominated net monetary assets/liabilities. Examples of monetary assets/liabilities include cash balances, receivables and payables. Fluctuations in foreign currency exchange rates result in transaction gains or losses being recorded in earnings, as U.S. GAAP requires that monetary assets/liabilities be remeasured at the spot exchange rate at quarter-end and upon settlement. The Company has chosen not to apply hedge accounting to these instruments because there are no anticipated differences in the timing of gain or loss recognition on the hedging instruments and the hedged items.
As of July 30, 2022, the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge either a portion, or all, of forecasted foreign-currency-denominated intercompany inventory transactions, the resulting settlement of the foreign-currency-denominated intercompany accounts receivable, or both:
(in thousands) Notional Amount (1)
Euro $ 35,470
British pound 18,909
Canadian dollar 5,656
Japanese yen 4,383
(1) Amounts reported are the U.S. Dollar notional amounts outstanding as of July 30, 2022.
The fair value of derivative instruments is valued using quoted market prices of the same or similar instruments, adjusted for counterparty risk. The location and amounts of derivative fair values of foreign currency exchange forward contracts on the Condensed Consolidated Balance Sheets as of July 30, 2022 and January 29, 2022 were as follows:
(in thousands) Location July 30, 2022 January 29, 2022 Location July 30, 2022 January 29, 2022
Derivatives designated as cash flow hedging instruments Other current assets $ 5,169 $ 4,973 Accrued expenses $ 3 $ —
Derivatives not designated as hedging instruments
Other current assets — — Accrued expenses — —
Total
$ 5,169 $ 4,973 $ 3 $ —
Information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow hedging instruments for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021 follows:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Gain recognized in AOCL (1)
$ 2,361 $ 1,084 $ 7,724 $ 2,228
Gain (loss) reclassified from AOCL to cost of sales, exclusive of depreciation and amortization (2)
4,124 ( 1,697 ) $ 7,809 $ ( 3,152 )
(1) Amount represents the change in fair value of derivative instruments.
(2) Amount represents gain (loss) reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when the hedged item affects earnings, which is when merchandise is converted to cost of sales, exclusive of depreciation and amortization.
Substantially all of the unrealized gain will be recognized in costs of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income over the next twelve months .
Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021 follows:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Gain (loss) recognized in other operating income, net $ 631 $ 304 $ 1,772 $ ( 164 )
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13. ACCUMULATED OTHER COMPREHENSIVE LOSS
Fo r the thirteen and twenty-six weeks ended July 30, 2022, the activity in AOCL was as follows:
Thirteen Weeks Ended July 30, 2022
(in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total
Beginning balance at April 30, 2022 $ ( 131,092 ) $ 7,695 $ ( 123,397 )
Other comprehensive (loss) income before reclassifications ( 4,914 ) 2,361 ( 2,553 )
Reclassified gain from AOCL (1)
— ( 4,124 ) ( 4,124 )
Tax effect — 34 34
Other comprehensive loss after reclassifications ( 4,914 ) ( 1,729 ) ( 6,643 )
Ending balance at July 30, 2022 $ ( 136,006 ) $ 5,966 $ ( 130,040 )
Twenty-Six Weeks Ended July 30, 2022
(in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total
Beginning balance at January 29, 2022 $ ( 120,689 ) $ 5,983 $ ( 114,706 )
Other comprehensive (loss) income before reclassifications ( 15,317 ) 7,724 ( 7,593 )
Reclassified gain from AOCL (1)
— ( 7,809 ) ( 7,809 )
Tax effect — 68 68
Other comprehensive loss after reclassifications ( 15,317 ) ( 17 ) ( 15,334 )
Ending balance at July 30, 2022 $ ( 136,006 ) $ 5,966 $ ( 130,040 )
(1) Amount represents gain reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.
For the thirteen and twenty-six weeks ended July 31, 2021, the activity in AOCL was as follows:
Thirteen Weeks Ended July 31, 2021
(in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total
Beginning balance at May 1, 2021 $ ( 99,046 ) $ ( 1,936 ) $ ( 100,982 )
Other comprehensive (loss) income before reclassifications ( 1,986 ) 1,084 ( 902 )
Reclassified loss from AOCL (1)
— 1,697 1,697
Tax effect — ( 78 ) ( 78 )
Other comprehensive (loss) income after reclassifications ( 1,986 ) 2,703 717
Ending balance at July 31, 2021 $ ( 101,032 ) $ 767 $ ( 100,265 )
Twenty-Six Weeks Ended July 31, 2021
(in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total
Beginning balance at January 30, 2021 $ ( 97,772 ) $ ( 4,535 ) $ ( 102,307 )
Other comprehensive (loss) income before reclassifications ( 3,260 ) 2,228 ( 1,032 )
Reclassified loss from AOCL (1)
— 3,152 3,152
Tax effect — ( 78 ) ( 78 )
Other comprehensive (loss) income after reclassifications ( 3,260 ) 5,302 2,042
Ending balance at July 31, 2021 $ ( 101,032 ) $ 767 $ ( 100,265 )
(1) Amount represents loss reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.
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14. SEGMENT REPORTING
The Company’s two operating segments are brand-based: Hollister, which includes the Company’s Hollister, Gilly Hicks and Social Tourist brands, and Abercrombie, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands. These operating segments have similar economic characteristics, classes of consumers, products, and production and distribution methods, operate in the same regulatory environments, and have been aggregated into one reportable segment. Amounts shown below include net sales from wholesale, franchise and licensing operations, which are not a significant component of total revenue, and are aggregated within their respective operating segment and geographic area.
The Company’s net sales by operating segment for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021 were as follows:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
Hollister $ 436,934 $ 514,483 $ 865,740 $ 956,891
Abercrombie 368,157 350,367 752,113 689,364
Total $ 805,091 $ 864,850 $ 1,617,853 $ 1,646,255
Net sales by geographic area are presented by attributing revenues to an individual country on the basis of the country in which the merchandise was sold for in-store purchases and on the basis of the shipping location provided by customers for digital and wholesale orders. The Company’s net sales by geographic area for the thirteen and twenty-six weeks ended July 30, 2022 and July 31, 2021 were as follows:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in thousands) July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
U.S. $ 578,086 $ 601,767 $ 1,163,190 $ 1,155,613
EMEA (1)
166,785 190,840 330,749 349,842
APAC (2)
27,778 41,228 57,675 87,274
Other (3)
32,442 31,015 66,239 53,526
International $ 227,005 $ 263,083 $ 454,663 $ 490,642
Total $ 805,091 $ 864,850 $ 1,617,853 $ 1,646,255
(1) Europe, Middle East and Africa (“EMEA”)
(2) Asia-Pacific Region (“APAC”)
(3) Other includes all sales that do not fall within the United States, EMEA, or APAC regions.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.