Financial Data and Key Metrics Changes - Net sales for Q2 2019 were $841 million, a decrease of 0.2% from the previous year, but up 1% on a constant-currency basis, reflecting a $10 million adverse impact from foreign currency changes [33] - Comparable sales (comps) were flat compared to a 3% increase last year, driven by positive cross-channel traffic but offset by lower conversion rates [33] - Gross profit rate was 59.3%, down 90 basis points from last year, reflecting higher average unit costs (AUC) driven by product mix and slightly lower average unit retail (AUR) [34] Business Line Data and Key Metrics Changes - Abercrombie brand posted flat comps, while Hollister also reported flat comps, compared to 4% and 2% increases respectively in Q2 2018 [33] - The U.S. market achieved a 2% comp, down from 7% last year, while international comps were down 3%, an improvement from a 4% decline last year [34] - Hollister's boys' segment achieved record performance, while girls' segment fell short of expectations, particularly in tops [12][68] Market Data and Key Metrics Changes - The U.S. market, representing approximately two-thirds of revenue, experienced its eighth consecutive quarter of positive comps despite challenges from tourist locations and a competitive environment [9] - In Europe, comp results were consistent with the previous quarter, with weaknesses in the U.K. and Ireland, but improvements in other European markets [9] - Asia saw improvements in China that helped offset weaknesses in Hong Kong [9] Company Strategy and Development Direction - The company is focused on transformation initiatives, including optimizing the global store network, enhancing digital and omni-channel capabilities, and improving customer engagement through loyalty programs [16][30] - The strategy includes closing underperforming flagship stores and opening smaller-format locations with flexible lease terms [23][24] - The company aims to achieve a fiscal 2020 target of doubling its fiscal 2017 adjusted non-GAAP operating margin [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the core U.S. customer but acknowledged an uncertain global macro outlook [16] - The promotional environment was described as heightened, with expectations for continued promotional activity during Back-to-School and holiday seasons [16] - The company anticipates potential global volatility impacting results, particularly in Europe and Asia [42] Other Important Information - The company announced new leadership hires for Europe and Asia to enhance localized execution and customer engagement [31] - The company is committed to environmental, social, and governance (ESG) initiatives, including participation in the UN Global Compact [30] Q&A Session Summary Question: Clarification on flagship store closures and international performance - Management confirmed that most flagship leases are expected to expire naturally and that they are evaluating the financial and qualitative aspects of remaining stores [49] - Management noted slight sequential improvement in international performance and emphasized the importance of new regional teams to enhance local strategies [51] Question: Back-to-school performance and markdown expectations - Management reported a solid start to Back-to-School in the U.S. but acknowledged that international back-to-school timing differs [54] - Management indicated that gross profit rates are expected to decline due to foreign currency impacts and tariffs, with a stable promotional environment anticipated [56] Question: EBIT margin target for 2020 - Management remains focused on achieving the 5.8% EBIT margin target, leveraging store occupancy optimization and investments in key tools [60][62] Question: SG&A outlook and marketing balance - Management highlighted ongoing tight expense control and incremental savings, while also planning to invest in marketing to drive growth [63] Question: Hollister Girls business performance - Management acknowledged challenges in the girls' tops category but noted improvements and agility in the supply chain to address issues quickly [68]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 4, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-12107 ABERCROMBIE & FITCH CO. (Exact name of Registrant as specified in its charter) Delaware 31-1469076 (State or other juris ...

Financial Data and Key Metrics Changes - Net sales for Q1 2019 were $734 million, slightly up from the previous year, with a $16 million adverse impact from foreign currency changes [21][22] - Comparable sales (comps) increased by 1% on top of a 5% increase last year, marking the seventh consecutive quarter of positive comps [21][22] - Adjusted operating loss improved to $27 million from a loss of $37 million last year, with an adjusted operating loss margin improvement of 130 basis points [25][26] Business Line Data and Key Metrics Changes - Hollister posted a 2% comp on top of a 6% increase last year, while Abercrombie returned to positive comps with a 1% increase on top of a 3% increase last year [22][10] - Hollister achieved record first-quarter sales in jeans, pants, outerwear, and sweaters, while Abercrombie saw significant sales growth in women's tops and dresses, with dresses recording the highest first-quarter sales ever [9][10] Market Data and Key Metrics Changes - U.S. comps were up 4%, while international comps were down 4%, with Europe showing sequential improvement and Asia experiencing weakness due to internal missteps [22][23] - The company plans to reduce its reliance on China for sourcing, aiming to decrease merchandise sourced from China to below 20% this year [18] Company Strategy and Development Direction - The company is focused on optimizing its global store network, with plans to close three flagship locations and transition to smaller, more omnichannel spaces [14][15] - Digital sales grew to 30% of revenues, up from 27% last year, with ongoing double-digit growth in online purchase pickup in-store [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. consumer's health, despite challenges in mall traffic and a competitive environment [19] - The company anticipates continued sales growth and is optimistic about its summer assortments, which build on successful product trends from Q1 [20][19] Other Important Information - The company adopted a new lease accounting standard, resulting in an increase of approximately $1.2 billion in total assets and liabilities [28] - The company expects net sales growth of 2% to 4% for fiscal 2019, with comparable sales projected to be up in the low-single-digit range [29] Q&A Session All Questions and Answers Question: Can you provide more detail on the higher OpEx planned in the closing of the flagship stores? - The $45 million charge for flagship closures is the key driver of the change in the OpEx outlook for the full year, adding about 220 basis points to the operating expense outlook [36] Question: How much of the flat comp guidance in Q2 is driven by the competitive set versus inventory levels? - Management noted that while there has been some weakness in mall traffic, they remain confident in their assortments for Q2, with inventory levels being comfortable [40][41] Question: Can you elaborate on the gross margin outlook and the international business performance? - Management indicated that the international business was mixed, with Europe improving and Asia facing challenges due to internal issues and external factors like trade tensions [46][47] Question: What is the expected impact of flagship closures on revenue and operating margin? - The flagship business is a drag on both top and bottom lines, but the closures are expected to lead to incremental improvements over time [38][53] Question: How does the company plan to achieve its 2020 targets? - The path to 2020 involves topline growth, modest gross margin expansion, and operating expense leverage, with ongoing transformation initiatives being critical to achieving these goals [60][61]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 2, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-12107 ABERCROMBIE & FITCH CO. (Exact name of registrant as specified in its charter) Delaware 31-1469076 (State or o ...

Financial Data and Key Metrics Changes - Total net sales for Q4 2018 were $1.2 billion, a decline of 3% from the previous year, impacted by a calendar shift and foreign currency changes [26][27] - Comparable sales increased by 3%, marking the sixth consecutive quarter of positive comps [26][27] - Gross profit rate rose to 59.1%, up 70 basis points from last year [28] - For the full year 2018, net sales were $3.6 billion, up 3%, with a gross profit rate of 60.2%, an increase of 50 basis points from the previous year [31][32] Business Line Data and Key Metrics Changes - Hollister achieved a 6% comp in Q4, while Abercrombie experienced a negative 2% comp, primarily due to challenges in women's tops and dresses [9][11][27] - The loyalty program for Hollister nearly doubled to over 18 million member accounts, while Abercrombie's loyalty program grew to almost 10 million accounts [10][12] Market Data and Key Metrics Changes - Positive comp sales of 5% were recorded in the U.S., while international comps were negative 2%, showing sequential improvement from Q3 [27] - Digital sales accounted for approximately 36% of total sales, up from 34% in Q4 of the previous year [28] Company Strategy and Development Direction - The company is focused on four key transformation initiatives: optimizing the store network, enhancing digital and omnichannel capabilities, increasing efficiency and speed-to-market, and improving customer engagement [15][19][24] - The strategy includes closing underperforming stores while investing in new store experiences and digital capabilities [16][18][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2020 EBIT margin targets, with expectations for net sales growth and gross profit rate expansion [33][34] - The company is closely monitoring the impact of potential tariffs on apparel sourced from China and is diversifying production to mitigate risks [23][34] Other Important Information - The company plans to increase capital investments to approximately $200 million in 2019, focusing on store and digital investments [35] - The loyalty programs are seen as a significant asset, with plans to leverage data for personalized customer engagement [73] Q&A Session Summary Question: Size and performance of Gilly Hicks - Gilly Hicks is currently carried in all stores globally, with positive product acceptance and plans for additional carveouts and side-by-sides in 2019 [39][40][41] Question: Q1 outlook and trends - The Q1 outlook is for comp sales to be flat to up 2%, with management noting strong customer engagement and inventory management [43][45] Question: Performance of A&F kids and brand ambassador programs - The kids' business showed solid performance, and the brand ambassador program is evolving to better connect with consumers [46][47] Question: Comp cadence and tourism performance - Comp sales in Q4 were positive, but tourism has been challenging, particularly in the U.S. [49][50] Question: International comps and product issues - Abercrombie performed better in the U.S. than internationally, with ongoing efforts to address product challenges in women's tops and dresses [51][52][53] Question: Real estate profitability and store closures - The majority of the store fleet is profitable, with ongoing evaluations for potential closures and improvements in store performance [58][59] Question: Freight and wage expenses outlook - Wage inflation is expected due to competitive market conditions, and freight costs are anticipated to rise as well [66][67] Question: Actions to improve Abercrombie women's assortment - The company is optimistic about improvements in the women's assortment and expects positive comps as they refine their offerings [70][71] Question: Loyalty programs and payment capabilities - Loyalty programs have grown significantly, and the company is exploring various payment options to cater to customer preferences [72][74]