What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-09-01 compared with 2023-06-06 · 262 added, 161 removed, 427 unchanged (50% of the section changed)

3 unchanged sentences

(Thousands, except per share amounts)

Thirteen Weeks Ended

April 29, 2023 April 30, 2022

Thirteen Weeks Ended Twenty-Six Weeks Ended

July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Net sales $ 935,345 $ 805,091 $ 1,771,339 $ 1,617,853

4 unchanged sentences

Asset impairment — 2,170 4,436 5,592

Other operating income, net ( 2,894 ) ( 3,842 )

Other operating (income) loss, net ( 2,694 ) 953 ( 5,588 ) ( 2,889 )

Operating income (loss) 89,842 ( 2,191 ) 123,850 ( 11,917 )

1 unchanged sentence

Income (loss) before income taxes 88,745 ( 9,108 ) 119,310 ( 26,141 )

Income tax expense (benefit) 12,718 ( 2,187 )

Income tax expense 30,014 5,634 42,732 3,447

Net income (loss) 58,731 ( 14,742 ) 76,578 ( 29,588 )

7 unchanged sentences

Diluted 51,548 50,441 51,535 51,262

Other comprehensive income (loss)

Other comprehensive loss

Foreign currency translation adjustments, net of tax $ ( 3,836 ) $ ( 4,914 ) $ ( 3,525 ) $ ( 15,317 )

Derivative financial instruments, net of tax 2,242 ( 1,729 ) 2,647 ( 17 )

Other comprehensive income (loss) 716 ( 8,691 )

Other comprehensive loss ( 1,594 ) ( 6,643 ) ( 878 ) ( 15,334 )

Comprehensive income (loss) 57,137 ( 21,385 ) 75,700 ( 44,922 )

7 unchanged sentences

(Thousands, except par value amounts)

April 29, 2023 January 28, 2023

July 29, 2023 January 28, 2023

Current assets:

28 unchanged sentences

Treasury stock, at average cost:

53,238 and 54,298 shares as of April 29, 2023 and January 28, 2023, respectively

53,159 and 54,298 shares as of July 29, 2023 and January 28, 2023, respectively

( 1,904,752 ) ( 1,953,735 )

10 unchanged sentences

(Thousands, except per share amounts)

Thirteen Weeks Ended April 29, 2023

Thirteen Weeks Ended July 29, 2023

Common Stock Paid-in

4 unchanged sentences

value Shares At average

Balance, April 29, 2023 50,062 $ 1,033 $ 400,699 $ 9,116 $ 2,344,522 $ ( 136,811 ) 53,238 $ ( 1,907,586 ) $ 710,973

Net income — — — 1,837 56,894 — — — 58,731

Share-based compensation issuances and exercises 79 — ( 1,860 ) — ( 1,384 ) — ( 79 ) 2,834 ( 410 )

Share-based compensation expense — — 11,559 — — — — — 11,559

Derivative financial instruments, net of tax — — — — — 2,242 — — 2,242

Foreign currency translation adjustments, net of tax — — — — — ( 3,836 ) — — ( 3,836 )

Distributions to noncontrolling interests, net — — — ( 475 ) — — — — ( 475 )

Ending balance at July 29, 2023 50,141 $ 1,033 $ 410,398 $ 10,478 $ 2,400,032 $ ( 138,405 ) 53,159 $ ( 1,904,752 ) $ 778,784

Thirteen Weeks Ended July 30, 2022

Common Stock Paid-in

capital Non-controlling interests Retained

earnings AOCL Treasury stock Total

stockholders’

outstanding Par

value Shares At average

Balance, April 30, 2022 50,442 $ 1,033 $ 398,412 $ 9,444 $ 2,350,807 $ ( 123,397 ) 52,858 $ ( 1,931,494 ) $ 704,805

Net income (loss) — — — 2,092 ( 16,834 ) — — — ( 14,742 )

Purchase of Common Stock ( 1,000 ) — — — 1,000 ( 17,775 ) ( 17,775 )

Share-based compensation issuances and exercises 29 — ( 1,045 ) — ( 106 ) — ( 29 ) 1,070 ( 81 )

Share-based compensation expense — — 7,760 — — — — — 7,760

Derivative financial instruments, net of tax — — — — — ( 1,729 ) — — ( 1,729 )

Foreign currency translation adjustments, net of tax — — — — — ( 4,914 ) — — ( 4,914 )

Distributions to noncontrolling interests, net — — — ( 397 ) — — — — ( 397 )

Ending balance at July 30, 2022 49,471 $ 1,033 $ 405,127 $ 11,139 $ 2,333,867 $ ( 130,040 ) 53,829 $ ( 1,948,199 ) $ 672,927

Abercrombie & Fitch Co.

2023 2Q Form 10-Q

Abercrombie & Fitch Co.

Condensed Consolidated Statements of Stockholders’ Equity

(Thousands, except per share amounts)

Twenty-Six Weeks Ended July 29, 2023

Common Stock Paid-in

capital Non-controlling interests Retained

earnings AOCL Treasury stock Total

stockholders’

outstanding Par

value Shares At average

Balance, January 28, 2023 49,002 $ 1,033 $ 416,255 $ 11,728 $ 2,368,815 $ ( 137,527 ) 54,298 $ ( 1,953,735 ) $ 706,569

5 unchanged sentences

Distributions to noncontrolling interests, net — — — ( 4,363 ) — — — — ( 4,363 )

Ending balance at April 29, 2023 50,062 $ 1,033 $ 400,699 $ 9,116 $ 2,344,522 $ ( 136,811 ) 53,238 $ ( 1,907,586 ) $ 710,973

Thirteen Weeks Ended April 30, 2022

Ending balance at July 29, 2023 50,141 $ 1,033 $ 410,398 $ 10,478 $ 2,400,032 $ ( 138,405 ) 53,159 $ ( 1,904,752 ) $ 778,784

Twenty-Six Weeks Ended July 30, 2022

Common Stock Paid-in

12 unchanged sentences

Distributions to noncontrolling interests, net — — — ( 3,810 ) — — — — ( 3,810 )

Ending balance at April 30, 2022 50,442 $ 1,033 $ 398,412 $ 9,444 $ 2,350,807 $ ( 123,397 ) 52,858 $ ( 1,931,494 ) $ 704,805

Ending balance at July 30, 2022 49,471 $ 1,033 $ 405,127 $ 11,139 $ 2,333,867 $ ( 130,040 ) 53,829 $ ( 1,948,199 ) $ 672,927

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

Abercrombie & Fitch Co.

2 unchanged sentences

Condensed Consolidated Statements of Cash Flows

Thirteen Weeks Ended

April 29, 2023 April 30, 2022

Twenty-Six Weeks Ended

July 29, 2023 July 30, 2022

Operating activities

Net income (loss) $ 76,578 $ ( 29,588 )

Adjustments to reconcile net income (loss) to net cash used for operating activities:

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 72,411 65,543

1 unchanged sentence

Loss (gain) on disposal 1,622 ( 1,083 )

Provision for (benefit from) deferred income taxes 9,689 ( 5,853 )

Benefit from deferred income taxes ( 822 ) ( 1,629 )

Share-based compensation 19,647 16,116

6 unchanged sentences

Other liabilities ( 3,514 ) 698

Net cash used for operating activities ( 560 ) ( 217,787 )

Net cash provided by (used for) operating activities 216,328 ( 259,733 )

Investing activities

3 unchanged sentences

Financing activities

Payment of debt modification costs and fees ( 17 ) —

Purchases of Common Stock — ( 117,775 )

2 unchanged sentences

Effect of foreign currency exchange rates on cash ( 3,672 ) ( 7,567 )

Net decrease in cash and equivalents, and restricted cash and equivalents ( 70,905 ) ( 355,890 )

Net increase (decrease) in cash and equivalents, and restricted cash and equivalents 99,534 ( 454,334 )

Cash and equivalents, and restricted cash and equivalents, beginning of period 527,569 834,368

4 unchanged sentences

Supplemental information related to cash activities

Cash paid for interest 13,108 13,463

Cash paid for income taxes 16,565 24,566

9 unchanged sentences

REVENUE RECOGNITION

NET INCOME (L OSS) PER SHARE

NET INCOME (LOSS) PER SHARE

PROPERTY AND EQUIPMENT, NET

4 unchanged sentences

SEGMENT REPORTING

SUBSEQUENT EVENTS

Abercrombie & Fitch Co.

6 unchanged sentences

The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily through its digital channels and Company-owned stores, as well as through various third-party arrangements.

The Company’s two brand-based operating segments are Abercrombie, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands, and Hollister, which includes the Company’s Hollister, Gilly Hicks, and Social Tourist brands.

During the second quarter of Fiscal 2023, to leverage the knowledge and experience of our regional teams to better drive brand growth, the Company reorganized its structure and now manages its business on a geographic basis, consisting of three reportable segments:

Europe, the Middle East and Africa (EMEA);

and Asia-Pacific (APAC).

Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company’s segments, and therefore are included as a reconciling item between segment and total operating income (loss).

There was no impact on consolidated net sales, operating income (loss) or net income (loss) per share as a result of these changes.

All prior periods presented are recast to conform to the new segment presentation.

The Company’s brands include Abercrombie brands, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands, and Hollister brands, which includes the Company’s Hollister, Gilly Hicks, and Social Tourist brands.

These brands share a commitment to offering unique products of enduring quality and exceptional comfort that allow customers around the world to express their own individuality and style.

The Company operates primarily in North America, Europe, Middle East, and Asia.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1 unchanged sentence

The accompanying Condensed Consolidated Financial Statements include historical financial statements of, and transactions applicable to, the Company and reflect its financial position, results of operations and cash flows.

The Company has interests in an Emirati business venture, in a Kuwaiti business venture with Majid al Futtaim Fashion L.L.C.

The Company has interests in Emirati and Kuwaiti business ventures with Majid al Futtaim Fashion L.L.C.

(“MAF”) and in a United States of America (the “U.S.”) business venture with Dixar L.L.C.

4 unchanged sentences

The Company’s fiscal year ends on the Saturday closest to January 31.

This typically results in a fifty-two week year, but occasionally gives rise to an additional week, resulting in a fifty-three week year.

This typically results in a fifty-two week year, but occasionally gives rise to an additional week, resulting in a fifty-three week year, as will be the case in Fiscal 2023.

Fiscal years are designated in the Condensed Consolidated Financial Statements and notes, as well as the remainder of this Quarterly Report on Form 10-Q, by the calendar year in which the fiscal year commences.

5 unchanged sentences

Interim financial statements

The Condensed Consolidated Financial Statements as of April 29, 2023, and for the thirteen week periods ended April 29, 2023 and April 30, 2022, are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim consolidated financial statements.

The Condensed Consolidated Financial Statements as of July 29, 2023, and for the thirteen and twenty-six week periods ended July 29, 2023 and July 30, 2022, are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim consolidated financial statements.

Accordingly, the Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto contained in A&F’s Annual Report on Form 10-K for Fiscal 2022 filed with the SEC on March 27, 2023 (the “Fiscal 2022 Form 10-K”).

The January 28, 2023 consolidated balance sheet data, included herein, were derived from audited consolidated financial statements, but do not include all disclosures required by accounting principles generally accepted in the U.S.

In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments (which are of a normal recurring nature) necessary to state fairly, in all material respects, the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for Fiscal 2023.

Abercrombie & Fitch Co.

2023 2Q Form 10-Q

Use of estimates

1 unchanged sentence

Due to the inherent uncertainty involved with estimates, actual results may differ.

Additionally, these estimates and assumptions may change as a result of the impact of global economic conditions, such as the uncertainty regarding a slowing economy, rising interest rates, continued inflation, fluctuation in foreign exchange rates, and the ongoing conflict in Ukraine, and result in material impacts to the Company’s consolidated financial statements in future reporting periods.

Additionally, these estimates and assumptions may change as a result of the impact of conditions affecting the global economy, such as the uncertainty regarding the economy, rising interest rates, continued inflation, fluctuation in foreign exchange rates, and the ongoing conflict in Ukraine, and result in material impacts to the Company’s consolidated financial statements in future reporting periods.

Recent accounting pronouncements

11 unchanged sentences

Supply Chain Finance Program

On January 29, 2023, the Company adopted the changes to the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) described in Accounting Standards Update (“ASU”) No.

ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50):

Disclosure of Supplier Finance Program Obligations, which enhances the transparency of supplier finance programs and requires certain disclosures for a buyer in a supplier finance program.

Under the supply chain finance (“SCF”) program, which is administered by a third party, the Company’s vendors, at their sole discretion, are given the opportunity to sell receivables from the Company to a participating financial institution at a discount that leverages the Company’s credit profile.

2 unchanged sentences

The Company’s responsibility is limited to making payment on the terms originally negotiated by the Company with each vendor, regardless of whether the vendor sells its receivable to a financial institution.

If a vendor chooses to participate in the SCF program, the Company pays the financial institution the stated amount of confirmed merchandise invoices on the stated maturity date, which is 75 days from the invoice date.

The agreement with the financial institution does not require the Company to provide assets pledged as security or other forms of guarantees for the SCF program.

As of April 29, 2023 and January 28, 2023, $ 58.1 million and $ 68.4 million of SCF program liabilities were recorded in “Accounts payable” in the Condensed Consolidated Balance Sheet, respectively, and reflected as a cash flow from operating activities in the Condensed Consolidated Statements of Cash Flows when settled.

As of July 29, 2023 and January 28, 2023, $ 79.8 million and $ 68.4 million of SCF program liabilities were recorded in accounts payable in the Condensed Consolidated Balance Sheet, respectively, and reflected as a cash flow from operating activities in the Condensed Consolidated Statements of Cash Flows when settled.

Abercrombie & Fitch Co.

2 unchanged sentences

The following table provides a reconciliation of cash and equivalents and restricted cash and equivalents to the amounts shown on the Condensed Consolidated Statements of Cash Flows:

(in thousands) Location April 29, 2023 January 28, 2023 April 30, 2022 January 29, 2022

(in thousands) Location July 29, 2023 January 28, 2023 July 30, 2022 January 29, 2022

Cash and equivalents Cash and equivalents $ 617,339 $ 517,602 $ 369,957 $ 823,139

6 unchanged sentences

Contract liabilities

The following table details certain contract liabilities representing unearned revenue as of April 29, 2023, January 28, 2023, April 30, 2022 and January 29, 2022:

(in thousands) April 29, 2023 January 28, 2023 ⁽¹⁾ April 30, 2022 January 29, 2022 ⁽¹⁾

The following table details certain contract liabilities representing unearned revenue as of July 29, 2023, January 28, 2023, July 30, 2022 and January 29, 2022:

(in thousands) July 29, 2023 January 28, 2023 ⁽¹⁾ July 30, 2022 January 29, 2022 ⁽¹⁾

Gift card liability (1)

1 unchanged sentence

Loyalty programs liability 23,969 25,640 21,525 22,757

(1) Includes $ 13.4 million and $ 12.1 million of revenue recognized during the thirteen weeks ended April 29, 2023 and April 30, 2022, respectively, that was included in the gift card liability at the beginning of January 28, 2023 and January 29, 2022, respectively .

The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for the thirteen weeks ended April 29, 2023 and April 30, 2022:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

(1) Includes $ 26.4 million and $ 23.9 million of revenue recognized during the twenty-six weeks ended July 29, 2023 and July 30, 2022, respectively, that was included in the gift card liability at the beginning of January 28, 2023 and January 29, 2022, respectively.

The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Revenue associated with gift card redemptions and gift card breakage $ 24,426 $ 22,652 $ 48,650 $ 45,653

1 unchanged sentence

NET INCOME (LOSS) PER SHARE

Net income (loss) per basic and diluted share attributable to A&F is computed based on the weighted-average number of outstanding shares of Class A Common Stock (“Common Stock”).

Additional information pertaining to net income (loss) per share attributable to A&F follows:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

Net income (loss) per basic and diluted share attributable to A&F is computed based on the weighted-average number of outstanding shares of A&F’s Class A Common Stock, $0.01 par value (“Common Stock”).

The following table provides additional information pertaining to net income (loss) per share attributable to A&F for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Shares of Common Stock issued 103,300 103,300 103,300 103,300

4 unchanged sentences

Anti-dilutive shares (1)

1,453 4,209 1,779 4,245

(1) Reflects the total number of shares related to outstanding share-based compensation awards that have been excluded from the computation of net income (loss) per diluted share because the impact would have been anti-dilutive.

9 unchanged sentences

The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

The three levels of the hierarchy and the distribution of the Company’s assets measured at fair value on a recurring basis, as of April 29, 2023 and January 28, 2023, were as follows:

Assets and Liabilities at Fair Value as of April 29, 2023

The following table provides the three levels of the hierarchy and the distribution of the Company’s assets measured at fair value on a recurring basis, as of July 29, 2023 and January 28, 2023:

Assets and Liabilities at Fair Value as of July 29, 2023

(in thousands) Level 1 Level 2 Level 3 Total

26 unchanged sentences

Level 2 assets consisted of time deposits.

(2) Level 2 assets consisted primarily of foreign currency exchange forward contracts.

(2) Level 2 assets and liabilities consisted primarily of foreign currency exchange forward contracts.

(3) Level 1 assets consisted of investments in money market funds.

6 unchanged sentences

The Company’s borrowings under its senior secured notes, which have a fixed 8.75 % interest rate and mature on July 15, 2025 (the “Senior Secured Notes”), are carried at historical cost in the accompanying Condensed Consolidated Balance Sheets.

The carrying amount and fair value of the Company’s long-term gross borrowings were as follows:

(in thousands) April 29, 2023 January 28, 2023

The following table provides the carrying amount and fair value of the Company’s long-term gross borrowings as of July 29, 2023 and January 28, 2023:

(in thousands) July 29, 2023 January 28, 2023

Gross borrowings outstanding, carrying amount $ 299,730 $ 299,730

Gross borrowings outstanding, fair value (1)

304,226 304,975

(1) Classified as Level 2 measurements within the fair value hierarchy.

Abercrombie & Fitch Co.

1 unchanged sentence

PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of:

(in thousands) April 29, 2023 January 28, 2023

The following table provides property and equipment, net as of July 29, 2023 and January 28, 2023:

(in thousands) July 29, 2023 January 28, 2023

Property and equipment, at cost $ 2,497,947 $ 2,517,862

1 unchanged sentence

Property and equipment, net $ 553,680 $ 551,585

R efer to Note 8, “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during the thirteen weeks ended April 29, 2023 and April 30, 2022.

R efer to Note 8, “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022.

The Company is a party to leases related to its Company-operated retail stores as well as for certain of its distribution centers, office space, information technology and equipment.

The following table provides a summary of the Company’s operating lease costs for the thirteen weeks ended April 29, 2023 and April 30, 2022:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

The following table provides a summary of the Company’s operating lease costs for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Single lease cost (1)

3 unchanged sentences

Operating lease right-of-use asset impairment (3)

— 1,573 1,414 3,488

Sublease income (4)

2 unchanged sentences

(1) Included amortization and interest expense associated with operating lease right-of-use assets and the impact from remeasurement of operating lease liabilities.

(2) Includes variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs, as well as the benefit of $ 0.1 million of rent abatements during the thirteen weeks ended April 29, 2023, respectively, related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract.

The benefit related to rent abatements recognized during the thirteen weeks ended April 30, 2022 was $ 1.7 million.

(2) Includes variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs, as well as the benefit of $ 1.0 million and $ 1.1 million of rent abatements during the thirteen and twenty-six weeks ended July 29, 2023, respectively, related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract.

The benefit related to rent abatements recognized during the thirteen and twenty-six weeks ended July 30, 2022 was $ 0.9 million and $ 2.6 million, respectively.

(3) Refer to Note 8, “ ASSET IMPAIRMENT ,” for details related to operating lease right-of-use asset impairment charges.

1 unchanged sentence

Financial Statements and Supplementary Data” of the Fiscal 2022 Form 10-K.

Sublease income is recognized in other operating income, net on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company had minimum commitments related to operating lease contracts that have not yet commenced, primarily for certain Company-operated retail stores, of approximately $ 11.5 million as of April 29, 2023.

Sublease income is recognized in other operating (income) loss, net on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Abercrombie & Fitch Co.

2023 2Q Form 10-Q

ASSET IMPAIRMENT

Asset impairment charges for the thirteen weeks ended April 29, 2023 and April 30, 2022 were as follows:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

The following table provides asset impairment charges for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Operating lease right-of-use asset impairment $ — $ 1,573 $ 1,414 $ 3,488

1 unchanged sentence

Total asset impairment $ — $ 2,170 $ 4,436 $ 5,592

Asset impairment charges for the thirteen weeks ended April 29, 2023 and April 30, 2022 related to certain of the Company’s assets including stores across brands, geographies and store formats.

The store impairment charges for the thirteen weeks ended April 29, 2023 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 12.4 million, including $ 8.8 million related to operating lease right-of-use assets.

Abercrombie & Fitch Co.

2023 1Q Form 10-Q

Asset impairment charges for the thirteen weeks ended July 30, 2022 and twenty-six weeks ended July 29, 2023 and July 30, 2022 related to certain of the Company’s assets including stores across certain brands, geographies and store formats.

The store impairment charges for the twenty-six weeks ended July 29, 2023 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 6.1 million, including $ 3.2 million related to operating lease right-of-use assets.

The quarterly provision for income taxes is based on the current estimate of the annual effective income tax rate and the tax effect of discrete items occurring during the quarter.

3 unchanged sentences

The impact of these items on the effective tax rate will be greater at lower levels of pre-tax earnings.

Impact of valuation allowances and other tax charges

During the thirteen weeks ended April 29, 2023, the Company did not recognize income tax benefits on $ 20.3 million of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 3.1 million.

As of April 29, 2023, the Company had net deferred tax assets of approximately $ 9.8 million, $ 8.5 million, and $ 15.4 million in China, Japan and United Kingdom, respectively.

Impact of valuation allowances

During the thirteen and twenty-six weeks ended July 29, 2023, the Company did not recognize income tax benefits on $ 22.7 million and $ 43.0 million, respectively, of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 3.4 million and $6.5 million, respectively.

As of July 29, 2023, the Company had net deferred tax assets of approximately $ 11.2 million, $ 8.3 million, and $ 16.6 million in China, Japan and the United Kingdom, respectively.

While the Company believes that these net deferred tax assets are more-likely-than-not to be realized, it is not a certainty, as the Company continues to evaluate and respond to emerging situations.

1 unchanged sentence

Additional valuation allowances would result in additional tax expense.

During the thirteen weeks ended April 30, 2022, the Company did not recognize income tax benefits on $ 13.4 million of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 2.4 million.

As of April 30, 2022, there were approximately $ 11.4 million, $ 10.4 million, and $ 17.9 million of net deferred tax assets in China, Japan, and the United Kingdom, respectively.

During the thirteen and twenty-six weeks ended July 30, 2022, the Company did not recognize income tax benefits on $ 26.4 million and $ 39.8 million, respectively, of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 4.8 million and $ 7.2 million, respectively.

As of January 28, 2023, there were approximately $ 8.0 million, $ 9.1 million, and $ 15.6 million of net deferred tax assets in China, Japan, and the United Kingdom, respectively.

Share-based compensation

Refer to Note 11, “ SHARE-BASED COMPENSATION ,” for details on income tax benefits and charges related to share-based compensation awards during the thirteen weeks ended April 29, 2023 and April 30, 2022.

Details on the Company’s long-term borrowings, net, as of April 29, 2023 and January 28, 2023 are as follows:

(in thousands) April 29, 2023 January 28, 2023

Refer to Note 11, “ SHARE-BASED COMPENSATION ,” for details on income tax benefits and charges related to share-based compensation awards during the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022.

Abercrombie & Fitch Co.

2023 2Q Form 10-Q

The following table provides details on the Company’s long-term borrowings, net, as of July 29, 2023 and January 28, 2023 :

(in thousands) July 29, 2023 January 28, 2023

Long-term portion of borrowings, gross at carrying amount $ 299,730 $ 299,730

3 unchanged sentences

The terms of the Senior Secured Notes have remained unchanged from those disclosed in Note 12, “BORROWINGS,” of the Notes to Consolidated Financial Statements contained in “Item 8.

Financial Statements and Supplementary Data” of on the Fiscal 2022 Form 10-K.

Financial Statements and Supplementary Data” of the Fiscal 2022 Form 10-K.

The terms of the Company’s senior secured revolving credit facility of up to $ 400.0 million (the “ABL Facility”) have remained unchanged from those disclosed in Note 12, “ BORROWINGS ,” of the Notes to Consolidated Financial Statements contained in “Item 8.

Financial Statements and Supplementary Dat a ” of the Fiscal 2022 Form 10-K.

The Company did not have any borrowings outstanding under the ABL Facility as of April 29, 2023 or as of January 28, 2023.

As of April 29, 2023, availability under the ABL Facility was $ 345.4 million, net of $ 0.6 million in outstanding stand-by letters of credit.

As the Company must maintain excess availability equal to the greater of 10% of the loan cap or $30 million under the ABL Facility, borrowing capacity available to the Company under the ABL Facility was $ 310.8 million as of April 29, 2023.

Abercrombie & Fitch Co.

2023 1Q Form 10-Q

Financial Statements and Supplementary Data” of the Fiscal 2022 Form 10-K.

The Company did not have any borrowings outstanding under the ABL Facility as of July 29, 2023 or as of January 28, 2023.

As of July 29, 2023, availability under the ABL Facility was $ 396.7 million, net of $ 0.4 million in outstanding stand-by letters of credit.

Representations, warranties and covenants

6 unchanged sentences

change the nature of their business;

and consolidate or merge with or into, or sell substantially all of the assets of the Company or A&F Management to another entity.

and consolidate or merge with or into, or sell substantially all of the assets of the Company or Abercrombie & Fitch Management Co.

(“A&F Management”) to another entity.

The Senior Secured Notes are guaranteed on a senior secured basis, jointly and severally, by A&F and each of the existing and future wholly-owned domestic restricted subsidiaries of A&F that guarantee or will guarantee A&F Management’s Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) or certain future capital markets indebtedness.

Certain of the agreements related to the Senior Secured Notes and the ABL Facility also contain certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance and providing additional guarantees and collateral in certain circumstances.

The Company was in compliance with all debt covenants under these agreements as of April 29, 2023.

The Company was in compliance with all debt covenants under these agreements as of July 29, 2023.

Abercrombie & Fitch Co.

2023 2Q Form 10-Q

SHARE-BASED COMPENSATION

Financial statement impact

The following table details share-based compensation expense and the related income tax impacts for the thirteen weeks ended April 29, 2023 and April 30, 2022:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

The following table provides share-based compensation expense and the related income tax impacts for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Share-based compensation expense $ 11,559 $ 7,760 $ 19,647 $ 16,116

Income tax benefit associated with share-based compensation expense recognized 1,079 1,015 2,083 1,980

The following table details discrete income tax benefits and charges related to share-based compensation awards during the thirteen weeks ended April 29, 2023 and April 30, 2022:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

Income tax discrete benefits realized for tax deductions related to the issuance of shares $ 1,117 $ 2,111

The following table provides discrete income tax benefits and charges related to share-based compensation awards during the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Income tax discrete benefits (charges) realized for tax deductions related to the issuance of shares $ 325 $ ( 113 ) $ 1,442 $ 1,998

Income tax discrete charges realized upon cancellation of stock appreciation rights — ( 8 ) ( 101 ) ( 203 )

Total income tax discrete benefits related to share-based compensation awards $ 1,016 $ 1,916

The following table details 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 April 29, 2023 and April 30, 2022:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

Total income tax discrete benefits (charges) related to share-based compensation awards $ 325 $ ( 121 ) $ 1,341 $ 1,795

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 and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Employee tax withheld upon issuance of shares (1)

1 unchanged sentence

(1) Classified within other financing activities on the Condensed Consolidated Statements of Cash Flows.

Abercrombie & Fitch Co.

2023 1Q Form 10-Q

Restricted stock units

The following table summarizes activity for restricted stock units for the thirteen weeks ended April 29, 2023:

The following table provides the summarized activity for restricted stock units for the twenty-six weeks ended July 29, 2023:

Service-based Restricted

16 unchanged sentences

Forfeited ( 74,456 ) 25.02 ( 7,123 ) — ( 3,562 ) 43.46

Unvested at April 29, 2023 (1)

Unvested at July 29, 2023 (1)

2,363,505 $ 24.65 551,570 $ 30.00 275,798 $ 43.81

1 unchanged sentence

Unvested shares related to restricted stock units with performance-based and market-based vesting conditions can be achieved at up to 200% of their target vesting amount.

The following table details unrecognized compensation cost and the remaining weighted-average period over which these costs are expected to be recognized for restricted stock units as of April 29, 2023:

(in thousands) Service-based Restricted

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 July 29, 2023:

Service-based Restricted

Stock Units Performance-based Restricted

Stock Units Market-based Restricted

Unrecognized compensation cost $ 51,262 $ 8,601 $ 8,085

Unrecognized compensation cost (in thousands)

$ 46,071 $ 14,810 $ 6,969

Remaining weighted-average period cost is expected to be recognized (years) 1.3 1.7 1.7

Additional information pertaining to restricted stock units for the thirteen weeks ended April 29, 2023 and April 30, 2022 follows:

(in thousands) April 29, 2023 April 30, 2022

Abercrombie & Fitch Co.

2023 2Q Form 10-Q

The following table provides additional information pertaining to restricted stock units for the twenty-six weeks ended July 29, 2023 and July 30, 2022:

Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022

Service-based restricted stock units:

7 unchanged sentences

Total grant date fair value of awards vested 16,040 4,105

The weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the thirteen weeks ended April 29, 2023 and April 30, 2022 were as follows:

April 29, 2023 April 30, 2022

The following table provides the weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the twenty-six weeks ended July 29, 2023 and July 30, 2022:

Twenty-Six Weeks Ended

July 29, 2023 July 30, 2022

Grant date market price $ 28.36 $ 32.07

6 unchanged sentences

Average correlation coefficient of peer companies 0.5295 0.5146

Abercrombie & Fitch Co.

2023 1Q Form 10-Q

Stock appreciation rights

The following table summarizes stock appreciation rights activity for the thirteen weeks ended April 29, 2023:

The following table provides the summarized stock appreciation rights activity for the twenty-six weeks ended July 29, 2023:

Shares Weighted-Average

Exercise Price Aggregate

Intrinsic Value Weighted-Average

Intrinsic Value

(in thousands)

Weighted-Average

Contractual Life (years)

2 unchanged sentences

Forfeited or expired ( 23,700 ) 45.69

Outstanding at April 29, 2023

Outstanding at July 29, 2023

153,101 $ 27.47 $ 1,914 1.3

Stock appreciation rights exercisable at April 29, 2023 159,189 $ 27.27 $ 106,556 1.6

No stock appreciation rights were exercised during the thirteen weeks ended April 30, 2022.

Stock appreciation rights exercisable at July 29, 2023 153,101 $ 27.47 $ 1,914 1.3

The following table provides additional information pertaining to stock appreciation rights exercised during the twenty-six weeks ended July 29, 2023:

(in thousands) July 29, 2023

Total grant date fair value of awards exercised $ 115

No stock appreciation rights were exercised during the twenty-six weeks ended July 30, 2022.

Abercrombie & Fitch Co.

2023 2Q Form 10-Q

DERIVATIVE INSTRUMENTS

12 unchanged sentences

The Company has chosen not to apply hedge accounting to these instruments because there are no anticipated differences in the timing of gain or loss recognition on the hedging instruments and the hedged items.

As of April 29, 2023, 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:

As of July 29, 2023, 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 transactions:

(in thousands) Notional Amount (1)

2 unchanged sentences

Canadian dollar 27,760

Japanese yen —

(1) Amounts reported are the U.S.

Dollar notional amounts outstanding as of April 29, 2023.

Dollar notional amounts outstanding as of July 29, 2023.

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 Condensed Consolidated Balance Sheets as of April 29, 2023 and January 28, 2023 were as follows:

(in thousands) Location April 29, 2023 January 28, 2023 Location April 29, 2023 January 28, 2023

Derivatives designated as cash flow hedging instruments Other current assets $ 7 $ 32 Accrued expenses $ 4,139 $ 4,986

Abercrombie & Fitch Co.

2023 1Q Form 10-Q

Information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow hedging instruments for the thirteen weeks ended April 29, 2023 and April 30, 2022 follows:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

(Loss) gain recognized in AOCL (1)

The following table provides the location and amounts of derivative fair values of foreign currency exchange forward contracts on the Condensed Consolidated Balance Sheets as of July 29, 2023 and January 28, 2023:

(in thousands) Location July 29, 2023 January 28, 2023 Location July 29, 2023 January 28, 2023

Derivatives designated as cash flow hedging instruments other current assets

$ 536 $ 32 accrued expenses

$ 2,312 $ 4,986

The following table provides information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow hedging instruments for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Gain recognized in AOCL (1)

$ 558 $ 2,361 $ 51 $ 7,724

(Loss) gain reclassified from AOCL to cost of sales, exclusive of depreciation and amortization (2)

1 unchanged sentence

(1) Amount represents the change in fair value of derivative instruments.

(2) Amount represents gain (loss) reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when the hedged item affects earnings, which is when merchandise is converted to cost of sales, exclusive of depreciation and amortization.

(2) Amount represents (loss) gain reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when the hedged item affects earnings, which is when merchandise is converted to cost of sales, exclusive of depreciation and amortization.

Substantially all of the unrealized gain will be recognized in costs of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) over the next twelve months .

Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for the thirteen weeks ended April 29, 2023 and April 30, 2022 follows:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

(Gain) loss, net recognized in other operating income, net

The following table provides additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

(Loss) gain, net recognized in other operating (income) loss, net

$ ( 540 ) $ 631 $ ( 1,087 ) $ 1,772

Abercrombie & Fitch Co.

2023 2Q Form 10-Q

ACCUMULATED OTHER COMPREHENSIVE LOSS

Fo r the thirteen weeks ended April 29, 2023, the activity in AOCL was as follows:

Thirteen Weeks Ended April 29, 2023

The following tables provide activity in AOCL fo r the thirteen and twenty-six weeks ended July 29, 2023:

Thirteen Weeks Ended July 29, 2023

(in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total

Beginning balance at April 29, 2023 $ ( 132,342 ) $ ( 4,469 ) $ ( 136,811 )

Other comprehensive (loss) income before reclassifications ( 3,836 ) 558 ( 3,278 )

Reclassified loss from AOCL (1)

— 1,708 1,708

Tax effect — ( 24 ) ( 24 )

Other comprehensive (loss) income after reclassifications ( 3,836 ) 2,242 ( 1,594 )

Ending balance at July 29, 2023 $ ( 136,178 ) $ ( 2,227 ) $ ( 138,405 )

Twenty-Six Weeks Ended July 29, 2023

(in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total

Beginning balance at January 28, 2023 $ ( 132,653 ) $ ( 4,874 ) $ ( 137,527 )

Other comprehensive income (loss) before reclassifications 311 ( 507 ) ( 196 )

Other comprehensive (loss) income before reclassifications ( 3,525 ) 51 ( 3,474 )

Reclassified loss from AOCL (1)

— 2,614 2,614

Tax effect — ( 18 ) ( 18 )

Other comprehensive income after reclassifications 311 405 716

Ending balance at April 29, 2023 $ ( 132,342 ) $ ( 4,469 ) $ ( 136,811 )

Other comprehensive (loss) income after reclassifications ( 3,525 ) 2,647 ( 878 )

Ending balance at July 29, 2023 $ ( 136,178 ) $ ( 2,227 ) $ ( 138,405 )

(1) Amount represents loss reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

For the thirteen weeks ended April 30, 2022, the activity in AOCL was as follows:

Thirteen Weeks Ended April 30, 2022

The following tables provide activity in AOCL for the thirteen and twenty-six weeks ended July 30, 2022:

Thirteen Weeks Ended July 30, 2022

(in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total

Beginning balance at April 30, 2022 $ ( 131,092 ) $ 7,695 $ ( 123,397 )

Other comprehensive (loss) income before reclassifications ( 4,914 ) 2,361 ( 2,553 )

Reclassified gain from AOCL (1)

— ( 4,124 ) ( 4,124 )

Tax effect — 34 34

Other comprehensive loss after reclassifications ( 4,914 ) ( 1,729 ) ( 6,643 )

Ending balance at July 30, 2022 $ ( 136,006 ) $ 5,966 $ ( 130,040 )

Twenty-Six Weeks Ended July 30, 2022

(in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total

Beginning balance at January 29, 2022 $ ( 120,689 ) $ 5,983 $ ( 114,706 )

3 unchanged sentences

Tax effect — 68 68

Other comprehensive (loss) income after reclassifications ( 10,403 ) 1,712 ( 8,691 )

Ending balance at April 30, 2022 $ ( 131,092 ) $ 7,695 $ ( 123,397 )

Other comprehensive loss after reclassifications ( 15,317 ) ( 17 ) ( 15,334 )

Ending balance at July 30, 2022 $ ( 136,006 ) $ 5,966 $ ( 130,040 )

(1) Amount represents loss reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

2 unchanged sentences

SEGMENT REPORTING

The Company’s two operating segments are brand-based:

Abercrombie, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands, and Hollister, which includes the Company’s Hollister, Gilly Hicks, and Social Tourist brands.

These operating segments have similar economic characteristics, classes of consumers, products, and production and distribution methods, operate in the same regulatory environments, and have been aggregated into one reportable segment.

Amounts shown below include net sales from wholesale, franchise and licensing operations, which are not a significant component of total revenue, and are aggregated within their respective operating segment and geographic area.

The Company’s net sales by operating segment for the thirteen weeks ended April 29, 2023 and April 30, 2022 were as follows:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

The Company's reportable segments are based on the financial information the chief operating decision maker (“CODM”) uses to allocate resources and assess performance of its business.

Europe, the Middle East and Africa (EMEA);

and Asia-Pacific (APAC).

The Americas reportable segment includes the results of operations in North America and South America.

The EMEA reportable segment includes the results of operations in Europe, the Middle East and Africa.

The APAC reportable segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania.

Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory.

All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance.

All prior periods presented are recast to conform to the new segment presentation.

The group comprised of the Company’s (i) Chief Executive Officer and (ii) Chief Financial Officer and Chief Operating Officer functions as the Company’s CODM.

The Company’s CODM manages business operations and evaluates the performance of each segment based on the net sales and operating income (loss) of the segment.

Net sales by segment are presented by attributing revenues on the basis of the segment that fulfills the order.

Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributed to the segment.

Corporate/other expenses include expenses incurred that are not directly attributed to a reportable segment and primarily relate to corporate or global functions such as design, sourcing, brand management, corporate strategy, information technology, finance, treasury, legal, human resources, and other corporate support services, as well as certain globally managed components of the planning, merchandising, and marketing functions.

The Company reports inventories by segment as that information is used by the CODM in determining allocation of resources to the segments.

The Company does not report its other assets by segment as that information is not used by the CODM in assessing segment performance or allocating resources.

The following tables provide the Company’s segment information as of July 29, 2023 and January 28, 2023, and for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Americas $ 731,427 $ 613,244 $ 1,396,850 $ 1,235,205

EMEA 171,962 164,827 310,068 326,554

APAC 31,956 27,020 64,421 56,094

Segment total $ 935,345 $ 805,091 $ 1,771,339 $ 1,617,853

Operating Income (loss)

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Americas $ 177,063 $ 85,836 $ 333,508 $ 172,100

EMEA 29,860 17,545 28,375 26,652

APAC ( 464 ) ( 6,380 ) ( 3,011 ) ( 15,485 )

Segment total $ 206,459 $ 97,001 $ 358,872 $ 183,267

Operating Income (loss) not attributed to Segments:

Stores and distribution expense ( 3,114 ) ( 2,825 ) ( 5,003 ) ( 4,718 )

Marketing, general and administrative expense ( 116,198 ) ( 95,388 ) ( 235,603 ) ( 193,361 )

Other operating loss (income), net 2,695 ( 979 ) 5,584 2,895

Total operating income (loss) $ 89,842 $ ( 2,191 ) $ 123,850 $ ( 11,917 )

Abercrombie & Fitch Co.

2023 2Q Form 10-Q

(in thousands) July 29, 2023 January 28, 2023

Americas $ 403,469 $ 404,040

EMEA 72,827 80,447

APAC 17,183 21,134

Total inventories $ 493,479 $ 505,621

Assets not attributed to Segments 2,303,235 2,207,479

Total assets $ 2,796,714 $ 2,713,100

Brand Information

The following table provides additional disaggregated revenue information, which is categorized by brand, for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022

Abercrombie 462,711 368,157 $ 898,755 $ 752,113

1 unchanged sentence

Total $ 935,345 $ 805,091 $ 1,771,339 $ 1,617,853

Net sales by geographic area are presented by attributing revenues to an individual country on the basis of the country in which the merchandise was sold for in-store purchases and on the basis of the shipping location provided by customers for digital and wholesale orders.

The Company’s net sales by geographic area for the thirteen weeks ended April 29, 2023 and April 30, 2022 were as follows:

Thirteen Weeks Ended

(in thousands) April 29, 2023 April 30, 2022

$ 636,117 $ 585,106

139,258 163,969

33,333 29,897

27,286 33,790

International $ 199,877 $ 227,656

Total $ 835,994 $ 812,762

(1) Europe, Middle East and Africa region (“EMEA”).

(2) Asia-Pacific region (“APAC”).

(3) Other includes all sales that do not fall within the United States, EMEA, or APAC regions, which are derived primarily in Canada.

SUBSEQUENT EVENT

During the second quarter of Fiscal 2023, operating segments were reorganized into three geographic operating segments:

Americas, Asia-Pacific (APAC), and Europe, the Middle East and Africa (EMEA).

Beginning with the second quarter of Fiscal 2023, all periods presented will be recast to conform to this classification.

Abercrombie & Fitch Co.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements