ABERCROMBIE & FITCH CO /DE/
For the period ended Feb 1, 2025. Filed Mar 31, 2025.
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FY2025 · Filed Mar 31, 2025
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DERIVATIVE INSTRUMENTS
- DERIVATIVE INSTRUMENTS
As of February 1, 2025, 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 | $72,219 |
| British pound | 79,206 |
| Canadian dollar | 26,186 |
(1)Amounts reported are the U.S. Dollar notional amounts outstanding as of February 1, 2025.
The fair value of derivative instruments is determined 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 Consolidated Balance Sheets as of February 1, 2025, and February 3, 2024 were as follows:
| (in thousands) | Location | February 1, 2025 | February 3, 2024 | Location | February 1, 2025 | February 3, 2024 |
|---|---|---|---|---|---|---|
| Derivatives designated as cash flow hedging instruments | Other current assets | $4,315 | $1,090 | Accrued expenses | $— | $539 |
| Derivatives not designated as hedging instruments | Other current assets | — | 2 | Accrued expenses | — | — |
| Total | $4,315 | $1,092 | $— | $539 |
Refer to Note 4, “FAIR VALUE,” for further discussion of the determination of the fair value of derivative instruments. Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow hedging instruments for Fiscal 2024, Fiscal 2023 and Fiscal 2022 follows:
| (in thousands) | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
|---|---|---|---|
| Gain recognized in AOCL (1) | $6,473 | $3,618 | $2,844 |
| Gain(loss) reclassified from AOCL into cost of sales, exclusive of depreciation and amortization (2) | 2,113 | (1,846) | 13,781 |
(1)Amount represents the change in fair value of derivative instruments.
(2)Amount represents gain reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income (Loss) when the hedged item affected earnings, which was when merchandise was converted to cost of sales, exclusive of depreciation and amortization.
Substantially all of the unrealized gains or losses related to foreign currency exchange forward contracts designated as cash flow hedging instruments as of February 1, 2025 will be recognized within the Consolidated Statements of Operations and Comprehensive Income (Loss) over the next 12 months.
Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for Fiscal 2024, Fiscal 2023 and Fiscal 2022 follows:
| (in thousands) | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
|---|---|---|---|
| Gain(loss) recognized in other operating income, net | $370 | $(1,206) | $1,226 |
Refer to Note 2,“SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative Instruments,” for discussion regarding significant accounting policies related to the Company’s derivative instruments.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.