Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 28, 2023 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 (St ...

Financial Data and Key Metrics Changes - For Q3 2023, net sales increased by 20% year-over-year, reaching $1.056 billion, with a comparable sales growth of 16% [15][21] - The operating margin improved to 13.1%, an increase of over 1,100 basis points compared to Q3 2022, driven by a gross profit rate expansion of 570 basis points [5][19] - Year-to-date net sales were up 13% compared to the previous year, with an operating margin of 9.3%, which is over 900 basis points better than 2022 [5][21] Business Line Data and Key Metrics Changes - Abercrombie brands achieved a 30% sales increase year-over-year, marking the 11th consecutive quarter of growth, while Hollister brands grew by 11% [8][16] - Hollister's women's business led the growth, particularly in non-denim bottoms, while Abercrombie's growth was balanced across genders and regions [6][9] Market Data and Key Metrics Changes - The Americas region saw a 16% growth in comparable sales, EMEA grew by 15%, and APAC experienced a significant 32% growth [11][16] - Localization efforts in EMEA and APAC contributed positively to sales performance, particularly in the U.K. and Germany [12][16] Company Strategy and Development Direction - The company is focused on maintaining momentum into Q4 2023, with strategic positioning across brands and regions to capitalize on holiday sales [5][13] - Increased marketing investments are planned for Q4 to enhance customer acquisition and retention, despite a challenging macro environment [13][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver growth across brands and regions, emphasizing the importance of customer focus and execution of their playbook [13][21] - The company anticipates a low double-digit sales growth for Q4 2023, with expectations for an operating margin between 12% to 14% [21][22] Other Important Information - The company ended Q3 with cash of $649 million and liquidity of approximately $1 billion, indicating a strong balance sheet [19][20] - Inventory levels are significantly improved compared to last year, allowing for strategic promotional opportunities during the holiday season [6][18] Q&A Session Summary Question: What were the key drivers behind the growth in Hollister and how do you plan for promotions in Q4? - Management noted that women's categories, particularly non-denim bottoms, drove growth, and they are prepared for a competitive promotional environment in Q4 based on internal selling data [25][27] Question: What surprised you about Abercrombie's growth this quarter? - Management highlighted balanced growth across brands, genders, and regions, attributing success to a well-executed playbook and strong customer engagement [32][33] Question: How sustainable is the gross margin seen this quarter? - Management indicated that strong AURs and lean inventory levels contributed to the high gross margin, and they are focused on maintaining these levels moving forward [35][36] Question: What are the growth opportunities for Hollister internationally? - Management acknowledged the slow recovery post-COVID but noted positive trends in traffic and sales, particularly in localized markets like the U.K. and Germany [52][55] Question: What is the outlook for store growth next year? - Management confirmed plans to continue opening neighborhood stores, with a focus on testing and learning from customer responses [43][44]

Store Operations - The Company opened 15 new stores and closed 18 stores in the year-to-date period of Fiscal 2023, with a plan to open approximately 35 new stores and close about 30 stores during Fiscal 2023[93]. Financial Performance - Net sales for the thirteen weeks ended July 29, 2023, were $935,345, a 16.2% increase compared to $805,091 for the same period in 2022[98]. - Comparable sales for the same thirteen-week period increased by 13% year-over-year[100]. - Gross profit rate improved to 62.5% for the thirteen weeks ended July 29, 2023, up from 57.9% in the prior year[105]. - Operating income for the thirteen weeks was $89,842, compared to a loss of $2,191 in the same period last year[98]. - Net income attributable to Abercrombie & Fitch for the thirteen weeks was $56,894, a significant recovery from a loss of $16,834 in the prior year[98]. - For the twenty-six weeks ended July 29, 2023, net sales reached $1,771,339, reflecting a 9.5% increase from $1,617,853 in the same period of 2022[100]. - The Americas segment saw a 19% increase in net sales for the thirteen weeks, totaling $731,427[100]. - Cost of sales as a percentage of net sales decreased by approximately 460 basis points to 37.5% for the thirteen weeks ended July 29, 2023[103]. - Marketing, general and administrative expenses remained flat at 15.4% of net sales for the thirteen weeks ended July 29, 2023[108]. - For the twenty-six weeks ended July 29, 2023, adjusted non-GAAP operating income was $128,286 thousand, or 7.2% of net sales, compared to a loss of $6,325 thousand (0.4% of net sales) in the same period last year[112]. - The net income per diluted share attributable to Abercrombie & Fitch for the thirteen weeks ended July 29, 2023, was $1.10, compared to a loss of $0.33 per share in the prior year[118]. - The Company reported a 10% increase in net sales for the twenty-six weeks ended July 29, 2023, totaling $1,771,339 thousand, compared to $1,617,853 thousand for the same period in 2022[143]. Cash Flow and Liquidity - Cash and equivalents increased to $617,339 as of July 29, 2023, up from $517,602 at the beginning of the year[98]. - The Company reported a net cash provided by operating activities of $216.3 million for the twenty-six weeks ended July 29, 2023, compared to a net cash used of $(259.7) million for the same period in the previous year[132]. - As of July 29, 2023, the Company had cash and cash equivalents of $617.3 million, up from $517.6 million at the beginning of Fiscal 2023, indicating a liquidity increase of approximately 19.5%[123]. - The company believes it will have adequate liquidity to fund operating activities for the next 12 months, monitoring financing market conditions for potential amendments to its ABL Facility and Senior Secured Notes[119]. Expenses and Cost Management - Inflationary pressures on labor, cotton, freight, and other raw materials have negatively impacted expenses and margins, with ongoing inflation affecting the ability to maintain satisfactory margins[91]. - The Company emphasizes the importance of balancing investments, inflation, and efficiency efforts to improve profitability[97]. - For the year-to-date period of Fiscal 2023, marketing, general and administration expenses increased by 100 basis points compared to Fiscal 2022, primarily due to higher technology expenses and incentive-based compensation[109]. - Interest expense, net for the thirteen weeks ended July 29, 2023, decreased to $1,097 thousand from $6,917 thousand in the same period last year, reflecting higher interest income due to increased balances and rates on deposits[113]. Strategic Initiatives - The Company is focused on executing brand growth plans, accelerating digital transformation, and operating with financial discipline as part of its Always Forward Plan[90]. - The Company is progressing on its multi-year ERP transformation and cloud migration journey to enhance digital capabilities[90]. - The Company aims to maintain lean inventory levels to allow for flexibility in inventory management throughout the year[97]. - The Company is committed to optimizing the Hollister product and brand voice to drive growth in the second half of Fiscal 2023[90]. Risk Management - The Company continues to monitor macroeconomic risks and global geopolitical challenges, including tensions between the United States and China and the situation in Ukraine, which could impact business operations[95]. - The Company has exposure to foreign currency exchange rate risks due to its international operations, which are generally conducted in currencies other than the U.S. Dollar[149]. - The Company has established a program utilizing foreign currency exchange forward contracts to mitigate risks associated with foreign currency transactions[150]. - A hypothetical 10% devaluation of the U.S. Dollar against foreign currencies would decrease the fair values of derivative contracts by approximately $17.7 million[152]. Capital Expenditures - Total capital expenditures for Fiscal 2023 are expected to be approximately $160 million, with $89.8 million already utilized for capital expenditures year-to-date as of July 29, 2023[122]. Legal and Compliance - The Company is involved in lawsuits and other adversary proceedings, with legal costs generally expensed as incurred[158]. - The Company has not established accruals for certain claims where it is not possible to reasonably estimate the outcome or potential liability[158]. - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the fiscal quarter ended July 29, 2023[156]. - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at a reasonable level of assurance as of July 29, 2023[155].

Financial Data and Key Metrics Changes - Total net sales grew 16% in Q2 2023, reaching $935 million, with comparable sales up 13% [16][17] - Operating margin improved to 9.6%, a significant increase from a roughly breakeven quarter last year [6][20] - Gross profit rate for the quarter was 62.5%, compared to 57.9% in 2022, reflecting a 460 basis point improvement [17][18] Business Line Data and Key Metrics Changes - Abercrombie brands saw a net sales increase of 26%, marking the highest second quarter sales since 2011 [5][7] - Hollister brands returned to growth with an 8% sales increase, exceeding internal expectations [10][14] - Both men's and women's segments in Abercrombie brands posted double-digit sales growth, with notable strength in pants and dresses for women and knit tops for men [9][10] Market Data and Key Metrics Changes - The Americas region led with 19% sales growth, while EMEA and APAC regions saw growth of 4% and 18%, respectively [14][17] - Sales growth continued into early August, indicating strong momentum across all regions [8][13] Company Strategy and Development Direction - The company is focused on maintaining tight inventory levels, finishing Q2 with total inventory down 30% year-over-year [6][19] - A regional operating model has been implemented to better support local customers, which is seen as a key growth enabler [15][16] - The company plans to open approximately 35 new stores, remodel 20, and close 30, indicating a net increase in store presence [22][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2023, expecting continued sales growth across brands and regions [25][40] - The company raised its full-year sales growth outlook to around 10%, up from a previous estimate of 2% to 4% [22][25] - Management highlighted the importance of evolving brand positioning and assortment to meet customer needs [12][39] Other Important Information - The company reported a net income per diluted share of $1.10, compared to an adjusted net loss per share of $0.30 last year [21] - Cash at the end of the quarter was $617 million, with liquidity of $974 million [21] Q&A Session Summary Question: What drove the impressive momentum at Abercrombie? - Management noted that the brand is no longer just a jeans and t-shirt brand but has evolved into a lifestyle brand, with strong performance in various categories [28] Question: How is AUR expected to trend in the second half? - Management indicated that there is potential for further AUR growth, particularly in Hollister, as they have reduced promotions and improved product offerings [30][32] Question: What is the outlook for Hollister's performance? - Management expressed confidence in Hollister's growth trajectory, citing improved assortments and customer engagement [39] Question: How is the supply chain performing? - Management reported significant improvements in supply chain stability, allowing for better inventory management and responsiveness to trends [45] Question: What are the marketing strategies for the back half of the year? - The company plans to ramp up marketing efforts, particularly for Hollister, to attract new and lapsed customers [50][51] Question: How is the performance in EMEA and the U.K.? - Management noted that both regions are showing positive signs, with a focus on evolving brand positioning to capture market share [64] Question: What is the operating margin outlook for the brands? - Management indicated that Abercrombie's operating margin is higher than Hollister's, with expectations for continued improvement across both brands [71]

INVESTOR PRESENTATION: TABLE OF CONTENTS Safe Harbor and Other Information 3 Company Overview 4 Q2 2023 Results 14 Appendix 19 ...

Table of Contents For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 29, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-12107 Abercrombie & Fitch Co. (Exact name of Registrant as specified in its charter) Delaware 31-1469076 (Stat ...

INVESTOR PRESENTATION: TABLE OF CONTENTS Safe Harbor and Other Information 3 Company Overview 4 Q1 2023 Results 14 Appendix 19 ...

Financial Data and Key Metrics Changes - Total company sales grew by 3% year-over-year, reaching $836 million, marking the highest first-quarter sales level since 2014 [5][15] - Gross profit rate improved to 61% from 55.3% last year, driven by a 570 basis point increase due to higher average unit retail (AUR) and lower freight costs [17][19] - Operating income was $38 million compared to an operating loss of $6 million last year, with net income per diluted share at $0.39 compared to a net loss per share of $0.27 last year [19][20] Business Line Data and Key Metrics Changes - Abercrombie brands' sales were $436 million, accounting for 52% of total company sales, up 14% year-over-year [7][10] - Hollister brands experienced a sales decline of 7%, consistent with internal expectations, but improved gross profit rate due to lower freight costs and higher AUR [11][12] Market Data and Key Metrics Changes - U.S. sales increased by 9%, with a 4% comparable sales growth, while international sales declined by 12% overall but were flat on a comparable basis [16] - APAC region saw a 22% comp sales growth due to the reopening of China [16][59] Company Strategy and Development Direction - The company is focused on brand growth as part of its 2025 Always Forward Plan, emphasizing digital engagement and financial discipline [12][13] - The strategy includes managing inventory tightly and leveraging customer insights to evolve product assortments [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second quarter and beyond, citing strong first-quarter execution despite macroeconomic challenges [14][20] - The company plans for net sales growth of 2% to 4% for the full year, reflecting an increase from previous guidance [20][21] Other Important Information - Inventory levels were down 20% compared to the previous year, allowing for better management of promotions and costs [18][19] - The company expects to open 35 to 40 new stores while closing 20 to 25, with a focus on the U.S. market [21] Q&A Session Summary Question: Insights on Hollister's performance and back half of the year - Management noted that Hollister met internal expectations for Q1, with a focus on evolving assortments and positive trends in non-denim categories [26][27] Question: Gross margin dynamics and promotional environment - Management highlighted improvements in gross margin due to lower freight costs and better AUR performance, while acknowledging the dynamic promotional environment [28][29] Question: Customer behavior and sales trends for Abercrombie - Management reported strong customer engagement and sales growth, particularly in the women's segment, with positive trends in men's business as well [32][33] Question: Inventory management and chasing capabilities - Management confirmed the ability to chase inventory effectively due to improved supply chain conditions, allowing for a leaner inventory approach [33][41] Question: Fashion trends and AUR growth across brands - Management indicated that both brands experienced AUR growth, with Abercrombie evolving into a lifestyle brand catering to diverse consumer needs [66][67] Question: Operating expenses and inflation impact - Management expects moderate deleverage on operating expenses due to ongoing investments in digital and technology, alongside inflationary pressures [68][69]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K Table of Contents (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 28, 2023 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 | | ...

Financial Data and Key Metrics Changes - The company achieved a 9.6% adjusted annual operating margin, the highest in over a decade, significantly above the 5.8% target set in 2018 [5][16] - Full-year net sales reached $3.7 billion, up 2% compared to 2019, driven by record high digital sales [29] - Adjusted earnings per share were $4.35, the highest since 2007 [16][30] Business Line Data and Key Metrics Changes - Hollister's net sales increased by 2% compared to 2020, while Abercrombie's net sales rose by 6% [25] - The gross profit rate for the full year was 62.3%, up 290 basis points compared to 2019 [29] - The company experienced a 19% sales growth from fiscal 2020 and a 2% growth from fiscal 2019 [16] Market Data and Key Metrics Changes - U.S. sales increased by 7%, while international sales decreased by 4% compared to the previous year [25] - The company noted stronger trends in the U.S. compared to EMEA and APAC regions, which faced ongoing COVID-related disruptions [26] Company Strategy and Development Direction - The company is transitioning to a net store opener for the first time since 2008, planning to open at least 50 new omni-enabled experiences in 2022 [10][32] - The focus remains on optimizing the global store network and enhancing digital capabilities, with a significant investment in marketing and digital fulfillment [5][11] - The company aims to maintain a disciplined approach to store openings, ensuring the right size, location, and economics [52] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the international business as COVID restrictions ease, while acknowledging potential headwinds from inflation and supply chain issues [23][33] - The company plans to offset freight and raw material inflation through higher average unit retail prices and reduced promotional activity [34][64] - Management highlighted strong customer engagement and a healthy target customer base, indicating readiness for growth despite near-term challenges [23][37] Other Important Information - The company repurchased 10.2 million shares for $377 million, reducing total shares outstanding by 15% [17][32] - The corporate culture has been enhanced, with recognition as one of Fortune's best places to work in retail [15] Q&A Session Summary Question: Can you provide more detail on sales guidance by geography or concept? - Management expects U.S. to outperform international regions, with both Abercrombie and Hollister contributing to growth, though Abercrombie is likely to outperform Hollister slightly [40] Question: What is the outlook for Gilly Hicks and its growth potential? - Gilly Hicks has seen strong acceptance and is expanding with new stores planned in the UK and Germany, with a focus on a test-and-learn culture [44][45] Question: How do you see the digital business evolving alongside store openings? - Digital sales are expected to continue growing, with both digital and store channels being important for the omni business strategy [51] Question: What are the freight assumptions for the year and their impact on margins? - Freight costs are expected to impact margins by 300 to 400 basis points, with hopes for moderation later in the year [61] Question: Will there be a return to promotions in 2022? - The company aims to hold AUR gains and reduce promotional activity, focusing on delivering great products and maintaining inventory control [64]