ABERCROMBIE FITCH CO DE
For the period ended May 4, 2024. Filed Jun 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 4, 2024 · Filed Jun 7, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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SHARE-BASED COMPENSATION
- SHARE-BASED COMPENSATION
Financial statement impact
The following table provides share-based compensation expense and the related income tax impacts for the thirteen weeks ended May 4, 2024 and April 29, 2023:
| Thirteen Weeks Ended | ||
|---|---|---|
| (in thousands) | May 4, 2024 | April 29, 2023 |
| Share-based compensation expense | $11,363 | $8,088 |
| Income tax benefits associated with share-based compensation expense recognized | 1,278 | 1,005 |
The following table provides discrete income tax benefits and charges related to share-based compensation awards during the thirteen weeks ended May 4, 2024 and April 29, 2023:
| Thirteen Weeks Ended | ||
|---|---|---|
| (in thousands) | May 4, 2024 | April 29, 2023 |
| Income tax discrete benefits realized for tax deductions related to the issuance of shares | $14,554 | $1,117 |
| Income tax discrete charges realized upon cancellation of stock appreciation rights | — | (101) |
| Total income tax discrete benefits related to share-based compensation awards | $14,554 | $1,016 |
The following table provides 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 weeks ended May 4, 2024 and April 29, 2023:
| Thirteen Weeks Ended | ||
|---|---|---|
| (in thousands) | May 4, 2024 | April 29, 2023 |
| Employee tax withheld upon issuance of shares (1) | $65,173 | $18,359 |
(1) Classified within financing activities on the Condensed Consolidated Statements of Cash Flows.
Restricted stock units
The following table provides the summarized activity for restricted stock units for the thirteen weeks ended May 4, 2024:
| Service-based RestrictedStock Units | Performance-based RestrictedStock Units | Market-based RestrictedStock Units | ||||
|---|---|---|---|---|---|---|
| Number of UnderlyingShares | Weighted-Average GrantDate Fair Value | Number of UnderlyingShares | Weighted-Average GrantDate Fair Value | Number of UnderlyingShares | Weighted-Average GrantDate Fair Value | |
| Unvested at February 3, 2024 | 1,886,085 | $27.12 | 521,212 | $30.03 | 260,619 | $43.90 |
| Granted | 226,209 | 120.49 | 53,775 | 120.56 | 26,895 | 180.71 |
| Adjustments for performance achievement | — | — | 150,446 | 32.10 | 75,227 | 50.34 |
| Vested | (757,301) | 24.37 | (300,892) | 32.10 | (150,454) | 50.34 |
| Forfeited | (40,864) | 30.95 | — | — | — | — |
| Unvested at May 4, 2024 (1) | 1,314,129 | $44.71 | 424,541 | $40.76 | 212,287 | $58.95 |
(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 from zero up to 200% of their target vesting amount.
The following table provides the unrecognized compensation cost and the remaining weighted-average period over which these costs are expected to be recognized for restricted stock units as of May 4, 2024:
| Service-based RestrictedStock Units | Performance-based RestrictedStock Units | Market-based RestrictedStock Units | |
|---|---|---|---|
| Unrecognized compensation cost (in thousands) | $53,083 | $20,866 | $8,037 |
| Remaining weighted-average period cost is expected to be recognized (years) | 1.5 | 1.6 | 1.6 |
| Abercrombie & Fitch Co. | 15 | 2024 1Q Form 10-Q |
|---|
The following table provides additional information pertaining to restricted stock units for the thirteen weeks ended May 4, 2024 and April 29, 2023:
| Thirteen Weeks Ended | ||
|---|---|---|
| (in thousands) | May 4, 2024 | April 29, 2023 |
| Service-based restricted stock units: | ||
| Total grant date fair value of awards granted | $27,256 | $23,842 |
| Total grant date fair value of awards vested | 18,455 | 15,560 |
| Performance-based restricted stock units: | ||
| Total grant date fair value of awards granted | 6,483 | 6,300 |
| Total grant date fair value of awards vested | 9,659 | — |
| Market-based restricted stock units: | ||
| Total grant date fair value of awards granted | 4,860 | 4,576 |
| Total grant date fair value of awards vested | 7,574 | 16,040 |
The following table provides the weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the thirteen weeks ended May 4, 2024 and April 29, 2023:
| Thirteen Weeks Ended | ||
|---|---|---|
| May 4, 2024 | April 29, 2023 | |
| Grant date market price | $120.56 | $28.36 |
| Fair value | 180.71 | 41.20 |
| Price volatility | 59% | 63% |
| Expected term (years) | 2.9 | 2.9 |
| Risk-free interest rate | 4.3% | 4.6% |
| Dividend yield | — | — |
| Average volatility of peer companies | 51.8 | 66.0 |
| Average correlation coefficient of peer companies | 0.4866 | 0.5295 |
Stock appreciation rights
The following table provides the summarized stock appreciation rights activity for the thirteen weeks ended May 4, 2024:
| Number ofUnderlyingShares | Weighted-AverageExercise Price | AggregateIntrinsic Value (in thousands) | Weighted-AverageRemainingContractual Life (years) | |
|---|---|---|---|---|
| Outstanding at February 3, 2024 | 25,600 | $29.29 | ||
| Exercised | (25,600) | 29.29 | ||
| Forfeited or expired | — | — | ||
| Outstanding at May 4, 2024 | — | $— | $— | 0.0 |
| Stock appreciation rights exercisable at May 4, 2024 | — | $— | $— | 0.0 |
The following table provides additional information pertaining to stock appreciation rights exercised during the thirteen weeks ended May 4, 2024 and April 29, 2023:
| (in thousands) | May 4, 2024 | April 29, 2023 |
|---|---|---|
| Total grant date fair value of awards exercised | $267 | $64 |
| Abercrombie & Fitch Co. | 16 | 2024 1Q Form 10-Q |
|---|
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.