INVESTOR PRESENTATION: FOURTH QUARTER 2025 TABLE OF CONTENTS Safe Harbor and Other Information 3 Company Overview 5 Q4 2025 and Full Year Results 11 Appendix 18 2 SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation and related statements by management or spokespeople of A&F contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements, including, without limitation, statements regarding ou ...

Core Viewpoint - Abercrombie & Fitch reported increased sales in its fiscal fourth quarter and provided guidance for continued growth in the upcoming year [1] Group 1 - The company experienced higher sales during the fiscal fourth quarter [1] - Guidance indicates that growth is expected to continue over the next year [1]

Core Insights - Abercrombie & Fitch reported better-than-expected quarterly earnings and revenue, indicating strong performance in the retail sector [1] Financial Performance - The company achieved quarterly earnings that surpassed analysts' expectations, reflecting effective cost management and sales strategies [1] - Revenue figures also exceeded forecasts, showcasing robust demand for Abercrombie & Fitch's products [1] Market Reaction - The positive earnings report is likely to boost investor confidence in Abercrombie & Fitch, potentially leading to an increase in stock price [1] - Analysts may revise their forecasts and ratings based on the company's strong performance, impacting market perceptions [1]

Group 1 - Abercrombie & Fitch forecasts annual profit significantly above Wall Street expectations, driven by strong demand for its Hollister brand [1] - The company expects annual net income per share to be between $10.20 and $11, with the midpoint exceeding analysts' expectations of $10.36 [1]

Financial Performance - Record fourth quarter net sales of $1.67 billion, a 5% increase year-over-year, with comparable sales growth of 1%[6] - Full year net sales reached $5.27 billion, up 6% from the previous year, with comparable sales growth of 3%[6] - Operating margin for the full year was 13.3%, down from 15.0% the previous year, with net income per diluted share of $10.46[7] - Net sales for the thirteen weeks ended January 31, 2026, were $1,669,802, representing a 5.3% increase from $1,584,917 for the same period in 2025[23] - Operating income for the fifty-two weeks ended January 31, 2026, was $699,143, which is 13.3% of net sales, down from $740,820 or 15.0% of net sales in the previous year[25] - Net income attributable to Abercrombie & Fitch Co. for the fifty-two weeks ended January 31, 2026, was $506,921, a decrease of 10.5% from $566,223 in the prior year[25] - The company reported a diluted net income per share of $10.46 for the fifty-two weeks ended January 31, 2026, compared to $10.69 for the same period in 2025[25] - Net sales for 2025 reached $5,266,292, a 6% increase from $4,948,587 in 2024[37] - Operating income for 2025 was $699,143, down 170 basis points from $740,820 in 2024[37] - Net income per diluted share for 2025 was $10.46, a decrease of $0.23 from $10.69 in 2024[37] - Adjusted non-GAAP net income per diluted share for 2025 was $9.86, down $0.83 from $10.69 in 2024[37] Shareholder Actions - The company repurchased 5.4 million shares for $450 million, representing 11% of shares outstanding at the beginning of the year[4] Future Outlook - For fiscal 2026, the company expects net sales growth of 3% to 5% and operating margin between 12.0% and 12.5%[6] - The company plans to open approximately 55 new stores and remodel 70 locations in fiscal 2026[12] - Future outlook includes a focus on enhancing digital and omnichannel initiatives to drive customer engagement and sales growth[19] Segment Performance - The Americas segment reported fourth quarter net sales of $1.38 billion, a 5% increase, while EMEA and APAC segments grew by 8% and 9% respectively[8] - Hollister brand achieved record full year net sales growth of 15%, while Abercrombie brand saw a decline of 1%[6] Cash and Assets - Cash and equivalents as of January 31, 2026, totaled $760 million, slightly down from $773 million the previous year[9] - Total assets increased to $3,541,874 in January 2026 from $3,299,887 in February 2025[43] - Cash and equivalents at the end of the period were $766,916, a decrease from $780,395 at the beginning of the period[46] - Net cash provided by operating activities for the fifty-two weeks ended January 31, 2026, was $619,142, compared to $710,376 in the prior year[46] Cost and Expenses - Cost of sales for the thirteen weeks ended January 31, 2026, was $676,491, accounting for 40.5% of net sales, compared to 38.5% in the previous year[23] - Selling expenses for the thirteen weeks ended January 31, 2026, were $574,792, which is 34.4% of net sales, up from 33.2% in the prior year[23] Store Operations - The company operates approximately 830 stores globally and has a strong digital presence through its e-commerce sites[20] - The company opened 62 new stores while permanently closing 22, resulting in a total of 889 stores as of January 31, 2026[48] Non-GAAP Measures - Abercrombie & Fitch Co. utilizes non-GAAP financial measures to provide a clearer picture of its operating performance, with adjusted net income attributable to A&F at $478,039 for the fifty-two weeks ended January 31, 2026[32] - The company emphasizes the importance of constant currency measures to better understand underlying business trends, excluding the impact of foreign currency fluctuations[29] EBITDA - EBITDA for the fifty-two weeks ended January 31, 2026, was $854,164, representing 16.2% of net sales[41] - Adjusted EBITDA for the same period was $815,590, accounting for 15.5% of net sales[41] Tariff Impact - Estimated impact of new tariffs is projected to affect net sales by approximately 290 basis points in Q1 and 70 basis points for the full year[15]

Core Viewpoint - Abercrombie & Fitch Co. (NYSE: ANF) is positioned for growth with a focus on its Always Forward plan and digital strategy, despite facing some challenges such as tariff expenses [3][6]. Financial Performance - ANF is expected to report earnings per share (EPS) of $3.56 and revenue of approximately $1.67 billion for the upcoming quarter, reflecting a slight 0.3% decline in EPS but a 5.3% increase in revenue compared to the previous year [2][6]. - In the previous earnings announcement, ANF reported an EPS of $2.36, exceeding the consensus estimate of $2.14, and achieved revenue of $1.29 billion, slightly above expectations [4]. - The company has a net margin of 10.07% and a return on equity of 38.01%, indicating strong financial health and operational efficiency [4][6]. Growth Strategy - The Always Forward plan and digital strategy are anticipated to contribute to a 5% sales growth in the fourth quarter [3][6]. - Despite a $90 million tariff expense for fiscal 2025, ANF has consistently surpassed earnings expectations, with an average earnings surprise of 8.2% over the last four quarters [3]. Market Valuation - ANF's financial metrics include a price-to-earnings (P/E) ratio of 8.90 and a price-to-sales ratio of 0.90, reflecting the market's valuation of its earnings and sales [5]. - The company's debt-to-equity ratio of 1.55 and current ratio of 1.38 suggest a balanced approach to financing and liquidity management [5].

Core Viewpoint - Abercrombie & Fitch is expected to report quarterly earnings of $3.56 per share, reflecting a slight decline of 0.3% year-over-year, while revenues are forecasted to increase by 5.3% to $1.67 billion [1] Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.6% over the past 30 days, indicating analysts have reassessed their projections [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue and Sales Projections - Analysts estimate 'Net sales by brand family - Hollister' to reach $880.23 million, an increase of 8.4% from the previous year [5] - The estimate for 'Net sales by brand family - Abercrombie' is projected at $787.46 million, reflecting a 1.9% increase year-over-year [5] Store Metrics - The estimated total number of stores at the end of the period is 829, up from 789 a year ago [5] Comparable Store Sales - The average prediction for 'Comparable store sales - Total - YoY change' is 3.2%, down from 14.0% reported in the same quarter last year [6] - Analysts forecast 'Comparable store sales - Abercrombie - YoY change' at -0.9%, compared to 5.0% in the prior year [6] - For 'Comparable store sales - Hollister - YoY change', the estimate is 7.3%, significantly lower than the 24.0% from the previous year [7] Stock Performance - Over the past month, Abercrombie shares have gained 5.4%, contrasting with a -0.5% change in the Zacks S&P 500 composite [7] - Based on its Zacks Rank 3 (Hold), Abercrombie is expected to perform in line with the overall market in the upcoming period [7]

Core Viewpoint - Abercrombie & Fitch Co. (ANF) is set to report its fourth-quarter fiscal 2025 results on March 4, with expected revenues of $1.67 billion, reflecting a 5.3% increase year-over-year, while earnings per share (EPS) are projected to be $3.56, indicating a slight decline of 0.3% from the previous year [1] Group 1: Financial Performance - The consensus estimate for fourth-quarter revenues is $1.67 billion, showing a growth of 5.3% compared to the same quarter last year [1] - The company’s earnings in the last reported quarter exceeded the consensus estimate by 10.3%, with an average earnings surprise of 8.2% over the last four quarters [2] - Management anticipates fourth-quarter net sales growth of around 5%, with EPS expected to be in the range of $3.50-$3.60, and an operating margin of approximately 14% [5][8] Group 2: Business Strategy and Market Position - Abercrombie's performance is likely supported by its Always Forward plan, brand strength, and store optimization efforts, enhancing its agile operating model [3] - The company has reported record quarter-to-date net sales through December, with balanced growth across regions, brands, and channels [4] - The Hollister brand is expected to achieve mid-teens sales growth for fiscal 2025, while the Abercrombie brand anticipates low single-digit sales growth for the fourth quarter [4] Group 3: Cost Pressures and Outlook - The revised outlook for fiscal 2025 includes an anticipated tariff expense of nearly $90 million, which is expected to impact margins despite mitigation efforts [6][8] - The full-year outlook assumes a tariff expense of 170 basis points as a percentage of net sales, alongside concerns regarding inflation and increased investment costs [6] Group 4: Valuation and Stock Performance - Abercrombie is currently trading at a forward 12-month price-to-earnings ratio of 9.52X, which is lower than the industry average of 18.70X [10] - Over the past six months, Abercrombie's shares have increased by 0.6%, compared to a 12.7% growth in the industry [10]

Core Viewpoint - The Supreme Court's decision to strike down President Trump's tariffs has led to a significant increase in retail and apparel stocks, providing a boost to US businesses and manufacturers [1][4][6]. Group 1: Stock Market Reaction - Retail and apparel stocks experienced notable gains, with Victoria's Secret rising by 5.6%, Dollar Tree increasing by 4%, and Abercrombie & Fitch gaining 5.5% [1]. - Other companies like Lululemon and Dick's Sporting Goods also saw smaller increases in their stock prices following the ruling [1]. Group 2: Industry Impact - The National Retail Federation expressed approval of the Supreme Court's decision, emphasizing that tariff imposition should be the prerogative of Congress rather than the president [1]. - David French, an executive from the trade group, highlighted that the ruling provides essential certainty for US businesses and manufacturers, and he expressed hope for potential refunds that could stimulate economic activity [2]. Group 3: Legal Context - The Supreme Court ruled in a 6-3 vote that the International Emergency Economic Powers Act, which was used to impose the tariffs, does not grant the authority to impose such duties [3][6]. - The ruling challenges the previous narrative that foreign countries bore the cost of the tariffs, as a study indicated that US businesses and consumers paid approximately 90% of the tariff costs last year [5].

Core Insights - Lakeside Shopping Centre will welcome Hollister, a brand of Abercrombie & Fitch Co., in 2026, enhancing its retail offerings with quality apparel, accessories, and fragrances [2] - The shopping centre is undergoing a multi-million-pound investment aimed at transforming its interiors and external spaces, positioning itself as a modern retail destination [3] - The addition of Hollister is part of Lakeside's strategy to redefine the retail experience and attract a broader audience, alongside other premium brands [4] Investment and Development - Lakeside Shopping Centre is making significant investments to set new benchmarks in retail excellence, featuring a diverse mix of brands including Hollister, Next, and JD [3] - The centre's transformation includes the introduction of ten lakefront restaurants and leading entertainment operators, enhancing its appeal as a leisure destination [4] Management and Operations - Lakeside Shopping Centre is owned by SGS UK Retail and managed by Pradera Lateral, with leasing agents Smith Young and LM Real Estate facilitating the new store openings [4]