What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-06-07 compared with 2023-12-04 · 199 added, 253 removed, 457 unchanged (50% of the section changed)

1 unchanged sentence

Abercrombie & Fitch Co.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

Condensed Consolidated Statements of Operations and Comprehensive Income

(Thousands, except per share amounts)

Thirteen Weeks Ended Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

Thirteen Weeks Ended

May 4, 2024 April 29, 2023

Net sales $ 1,020,730 $ 835,994

3 unchanged sentences

Marketing, general and administrative expense 177,880 142,631

Asset impairment — 3,744 4,436 9,336

Other operating loss (income), net 1,256 ( 1,005 ) ( 4,332 ) ( 3,894 )

Other operating income, net ( 1,958 ) ( 2,894 )

Operating income 129,849 34,008

Interest expense, net 671 7,295 5,211 21,519

Income (loss) before income taxes 137,349 10,248 256,659 ( 15,893 )

Interest expense 5,780 7,458

Interest income ( 10,803 ) ( 4,015 )

Interest (income) expense, net ( 5,023 ) 3,443

Income before income taxes 134,872 30,565

Income tax expense 19,794 12,718

Net income (loss) 97,732 ( 718 ) 174,310 ( 30,306 )

Net income 115,078 17,847

Net income attributable to noncontrolling interests 1,228 1,276

Net income (loss) attributable to A&F $ 96,211 $ ( 2,214 ) $ 169,676 $ ( 35,517 )

Net income (loss) per share attributable to A&F

Net income attributable to A&F $ 113,850 $ 16,571

Net income per share attributable to A&F

Basic $ 2.24 $ 0.33

3 unchanged sentences

Diluted 53,276 51,467

Other comprehensive income (loss)

Other comprehensive (loss) income

Foreign currency translation adjustments, net of tax $ ( 1,837 ) $ 311

Derivative financial instruments, net of tax 523 405

Other comprehensive income (loss) 2,217 ( 12,227 ) 1,339 ( 27,561 )

Comprehensive income (loss) 99,949 ( 12,945 ) 175,649 ( 57,867 )

Other comprehensive (loss) income ( 1,314 ) 716

Comprehensive income 113,764 18,563

Comprehensive income attributable to noncontrolling interests 1,228 1,276

Comprehensive income (loss) attributable to A&F $ 98,428 $ ( 14,441 ) $ 171,015 $ ( 63,078 )

Comprehensive income attributable to A&F $ 112,536 $ 17,287

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

4 unchanged sentences

(Thousands, except par value amounts)

October 28, 2023 January 28, 2023

May 4, 2024 February 3, 2024

Current assets:

28 unchanged sentences

Treasury stock, at average cost:

52,899 and 54,298 shares as of October 28, 2023 and January 28, 2023, respectively

52,198 and 52,800 shares as of May 4, 2024 and February 3, 2024, respectively

( 1,931,054 ) ( 1,895,143 )

10 unchanged sentences

(Thousands, except per share amounts)

Thirteen Weeks Ended October 28, 2023

Thirteen Weeks Ended May 4, 2024

Common Stock Paid-in

4 unchanged sentences

value Shares At average

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

Balance, February 3, 2024 50,500 $ 1,033 $ 421,609 $ 14,827 $ 2,643,629 $ ( 135,968 ) 52,800 $ ( 1,895,143 ) $ 1,049,987

Net income — — — 1,228 113,850 — — — 115,078

Share-based compensation issuances and exercises 260 — ( 6,567 ) — ( 10,022 ) — ( 260 ) 6,279 ( 10,310 )

Share-based compensation expense — — 9,684 — — — — — 9,684

Derivative financial instruments, net of tax — — — — — 7,259 — — 7,259

Foreign currency translation adjustments, net of tax — — — — — ( 5,042 ) — — ( 5,042 )

Distributions to noncontrolling interests, net — — — ( 1,994 ) — — — — ( 1,994 )

Ending balance at October 28, 2023 50,401 $ 1,033 $ 413,515 $ 10,005 $ 2,486,221 $ ( 136,188 ) 52,899 $ ( 1,898,473 ) $ 876,113

Thirteen Weeks Ended October 29, 2022

Common Stock Paid-in

capital Non-controlling interests Retained

earnings AOCL Treasury stock Total

stockholders’

outstanding Par

value Shares At average

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

Net income (loss) — — — 1,496 ( 2,214 ) — — — ( 718 )

Purchase of Common Stock ( 119 ) — — — — — 119 ( 15,000 ) ( 15,000 )

4 unchanged sentences

Distributions to noncontrolling interests, net — — — ( 3,771 ) — — — — ( 3,771 )

Ending balance at October 29, 2022 49,000 $ 1,033 $ 411,041 $ 9,834 $ 2,330,730 $ ( 142,267 ) 54,300 $ ( 1,954,306 ) $ 656,065

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

Abercrombie & Fitch Co.

Condensed Consolidated Statements of Stockholders’ Equity

(Thousands, except per share amounts)

Thirty-Nine Weeks Ended October 28, 2023

Ending balance at May 4, 2024 51,102 $ 1,033 $ 400,807 $ 12,284 $ 2,745,382 $ ( 137,282 ) 52,198 $ ( 1,931,054 ) $ 1,091,170

Thirteen Weeks Ended April 29, 2023

Common Stock Paid-in

11 unchanged sentences

Distributions to noncontrolling interests, net — — — ( 3,888 ) — — — — ( 3,888 )

Ending balance at October 28, 2023 50,401 $ 1,033 $ 413,515 $ 10,005 $ 2,486,221 $ ( 136,188 ) 52,899 $ ( 1,898,473 ) $ 876,113

Thirty-Nine Weeks Ended October 29, 2022

Common Stock Paid-in

capital Non-controlling interests Retained

earnings AOCL Treasury stock Total

stockholders’

outstanding Par

value Shares At average

Balance, January 29, 2022 52,985 $ 1,033 $ 413,190 $ 11,234 $ 2,386,156 $ ( 114,706 ) 50,315 $ ( 1,859,583 ) $ 837,324

Net income (loss) — — — 5,211 ( 35,517 ) — — — ( 30,306 )

Purchase of Common Stock ( 4,770 ) — — — 4,770 ( 125,775 ) ( 125,775 )

Share-based compensation issuances and exercises 785 — ( 25,575 ) — ( 19,909 ) — ( 785 ) 31,052 ( 14,432 )

Share-based compensation expense — — 23,426 — — — — — 23,426

Derivative financial instruments, net of tax — — — — — ( 1,223 ) — — ( 1,223 )

Foreign currency translation adjustments, net of tax — — — — — ( 26,338 ) — — ( 26,338 )

Distributions to noncontrolling interests, net — — — ( 6,611 ) — — — — ( 6,611 )

Ending balance at October 29, 2022 49,000 $ 1,033 $ 411,041 $ 9,834 $ 2,330,730 $ ( 142,267 ) 54,300 $ ( 1,954,306 ) $ 656,065

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

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

Abercrombie & Fitch Co.

2 unchanged sentences

Condensed Consolidated Statements of Cash Flows

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

Thirteen Weeks Ended

May 4, 2024 April 29, 2023

Operating activities

Net income (loss) $ 174,310 $ ( 30,306 )

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

Net income $ 115,078 $ 17,847

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

Depreciation and amortization 37,689 36,028

Asset impairment 866 4,436

Loss (gain) on disposal 5,164 ( 198 )

Benefit from deferred income taxes ( 13,620 ) ( 9,585 )

Loss on disposal 811 489

Provision for deferred income taxes 3,064 9,689

Share-based compensation 11,363 8,088

Loss (gain) on extinguishment of debt 1,276 ( 52 )

Loss on extinguishment of debt 168 —

Changes in assets and liabilities:

8 unchanged sentences

Purchases of property and equipment ( 38,886 ) ( 46,391 )

Proceeds from the sale of property and equipment 615 11,891

Withdrawal of funds from Rabbi Trust assets — 12,000

Net cash used for investing activities ( 38,886 ) ( 46,391 )

1 unchanged sentence

Purchase of senior secured notes ( 9,425 ) —

Payment of debt modification costs and fees ( 180 ) ( 181 )

Purchases of Common Stock ( 15,000 ) —

Acquisition of Common stock for tax withholding obligations

( 65,173 ) ( 18,359 )

Other financing activities ( 3,353 ) ( 3,597 )

1 unchanged sentence

Effect of foreign currency exchange rates on cash ( 857 ) ( 1,998 )

Net increase (decrease) in cash and equivalents, and restricted cash and equivalents 130,559 ( 567,362 )

Net decrease in cash and equivalents, and restricted cash and equivalents ( 37,684 ) ( 70,905 )

Cash and equivalents, and restricted cash and equivalents, beginning of period 909,685 527,569

29 unchanged sentences

Abercrombie & Fitch Co.

(“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as “Abercrombie & Fitch” or the “Company”), is a global, digitally-led omnichannel retailer.

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.

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:

(“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as the “Company”), is a global, digitally-led omnichannel retailer.

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

The Company 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) 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 Abercrombie & Fitch and abercrombie kids, and Hollister brands, which includes Hollister, Gilly Hicks, and Social Tourist.

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

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.

5 unchanged sentences

(“Dixar”), each of which meets the definition of a variable interest entity (“VIE”).

The purpose of the business ventures with MAF is to operate stores in the United Arab Emirates and Kuwait and the purpose of the business venture with Dixar is to hold the intellectual property related to Social Tourist.

The Company is deemed to be the primary beneficiary of these VIEs;

therefore, the Company has consolidated the operating results, assets and liabilities of these VIEs, with the noncontrolling interests’ (“NCI”) portions of net income (loss) presented as net income attributable to NCI on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and the NCI portion of stockholders’ equity presented as NCI on the Condensed Consolidated Balance Sheets.

therefore, the Company has consolidated the operating results, assets and liabilities of these VIEs, with the noncontrolling interests’ (“NCI”) portions of net income presented as net income attributable to NCI on the Condensed Consolidated Statements of Operations and Comprehensive Income and the NCI portion of stockholders’ equity presented as NCI on the Condensed Consolidated Balance Sheets.

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, as will be the case in Fiscal 2023.

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

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.

1 unchanged sentence

Fiscal year Year ended/ending Number of weeks

Fiscal 2022 January 28, 2023 52

Fiscal 2023 February 3, 2024 53

Fiscal 2024 February 1, 2025 52

Fiscal 2025 January 31, 2026 52

Interim financial statements

The Condensed Consolidated Financial Statements as of October 28, 2023, and for the thirteen and thirty-nine week periods ended October 28, 2023 and October 29, 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.

The Condensed Consolidated Financial Statements as of May 4, 2024, and for the thirteen week periods ended May 4, 2024 and April 29, 2023, 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 2023 filed with the SEC on April 1, 2024 (the “Fiscal 2023 Form 10-K”).

The February 3, 2024 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 2024.

Abercrombie & Fitch Co.

2024 1Q 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 conditions affecting the global economy, such as the uncertainty regarding the economy, rising interest rates, continued inflation, fluctuation in foreign exchange rates, and geopolitical conflict, armed conflict, the conflicts between Russia and Ukraine or Israel and Hamas, 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 global economic conditions such as the uncertainty regarding a slowing economy, rising interest rates, continued inflation, fluctuation in foreign exchange rates, the ongoing conflicts between Russia and Ukraine or Israel and Hamas which could result in material impacts to the Company’s consolidated financial statements in future reporting periods.

Recent accounting pronouncements

1 unchanged sentence

The following table provides a brief description of certain accounting pronouncements that the company has adopted.

Accounting Standards Update (ASU) Description Date of adoption Effect on the financial statements or other significant matters

Standards adopted

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

Disclosure of Supplier Finance Program Obligations

The update relates to disclosure requirements for buyers in supplier finance programs.

The amendments in the update require that a buyer disclose qualitative and quantitative information about their supplier finance programs.

Interim and annual requirements include disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a roll-forward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs.

This update is effective for annual periods beginning after December 15, 2022, and interim periods within those fiscal years, except for the requirement to disclose roll-forward information, which is effective for fiscal years beginning after December 15, 2023.

January 29, 2023 The Company adopted the changes to the standard under the retrospective method in the first quarter of Fiscal 2023, except for roll-forward information, which is effective for fiscal years beginning after December 15, 2023.

The adoption of this guidance did not have a significant impact on the Company's condensed consolidated financial statements.

Standards not yet adopted

Accounting Standards Update (ASU) Description Effect on the financial statements or other significant matters

ASU 2023-07, Segment Reporting (Topic 280):

5 unchanged sentences

The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements and accompanying notes

ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures

The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

For public business entities (PBEs), the requirement will be effective for annual periods beginning after December 15, 2024.

The guidance will be applied on a prospective basis with the option to apply the standard retrospectively.

Early adoption is permitted.

Other than the new disclosure requirements, the adoption of this guidance will not have a significant impact on the Company's consolidated financial statements.

Condensed Consolidated Statements of Cash Flows reconciliation

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 May 4, 2024 February 3, 2024 April 29, 2023 January 28, 2023

Cash and equivalents Cash and equivalents $ 864,195 $ 900,884 $ 446,952 $ 517,602

Long-term restricted cash and equivalents Other assets 7,807 8,801 9,712 9,967

Cash and equivalents and restricted cash and equivalents $ 872,001 $ 909,685 $ 456,664 $ 527,569

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

Supply Chain Finance Program

4 unchanged sentences

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 typically 75 days from the invoice date.

The agreement

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

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 October 28, 2023 and January 28, 2023, $ 117.3 million and $ 68.4 million of SCF program liabilities were recorded in accounts payable in the Condensed Consolidated Balance Sheets, respectively, and reflected as a cash flow from operating activities in the Condensed Consolidated Statements of Cash Flows when settled.

Condensed Consolidated Statements of Cash Flows reconciliation

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 October 28, 2023 January 28, 2023 October 29, 2022 January 29, 2022

Cash and equivalents Cash and equivalents $ 649,489 $ 517,602 $ 257,332 $ 823,139

Long-term restricted cash and equivalents Other assets 8,639 9,967 9,674 11,229

Cash and equivalents and restricted cash and equivalents $ 658,128 $ 527,569 $ 267,006 $ 834,368

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 May 4, 2024 and February 3, 2024, $ 58.0 million and $ 72.4 million of SCF program liabilities were recorded in accounts payable in the Condensed Consolidated Balance Sheets, respectively, and reflected as a cash flow from operating activities in the Condensed Consolidated Statements of Cash Flows when settled.

The following table provides activity in the SCF program for the thirteen weeks ended May 4, 2024

Thirteen Weeks Ended

(in thousands) May 4, 2024

Confirmed obligations outstanding at the beginning of the period $ 72,376

Invoices confirmed during the period 75,468

Confirmed invoices paid during the period ( 89,816 )

Confirmed obligations outstanding at the end of the period $ 58,028

REVENUE RECOGNITION

Disaggregation of revenue

All revenues are recognized in net sales in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

All revenues are recognized in net sales in the Condensed Consolidated Statements of Operations and Comprehensive Income.

For information regarding the disaggregation of revenue, refer to Note 14, “ SEGMENT REPORTING .

Contract liabilities

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

(in thousands) October 28, 2023 January 28, 2023 October 29, 2022 January 29, 2022

The following table details certain contract liabilities representing unearned revenue as of May 4, 2024, February 3, 2024, April 29, 2023 and January 28, 2023:

(in thousands) May 4, 2024 February 3, 2024 April 29, 2023 January 28, 2023

Gift card liability (1)

1 unchanged sentence

Loyalty programs liability 27,546 27,937 23,552 25,640

(1) Includes $ 15.5 million and $ 14.2 million of revenue recognized during the thirty-nine weeks ended October 28, 2023 and October 29, 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 thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

(1) Includes $ 9.9 million and $ 13.4 million of revenue recognized during the thirteen weeks ended May 4, 2024 and April 29, 2023, respectively, that was included in the gift card liability at the beginning of February 3, 2024 and January 28, 2023, respectively.

The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Revenue associated with gift card redemptions and gift card breakage $ 30,661 $ 24,224

2 unchanged sentences

2024 1Q Form 10-Q

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 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 thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

NET INCOME PER SHARE

Net income 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 per share attributable to A&F for the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Shares of Common Stock issued 103,300 103,300

4 unchanged sentences

Anti-dilutive shares (1)

445 4,199 609 4,285

(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.

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

Unvested shares related to restricted stock units with performance-based and market-based vesting conditions can achieved from zero up to 200% of their target vesting amount and are reflected at the maximum vesting amount less any dilutive portion.

6 unchanged sentences

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

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 October 28, 2023 and January 28, 2023:

Assets and Liabilities at Fair Value as of October 28, 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 May 4, 2024 and February 3, 2024:

Assets and Liabilities at Fair Value as of May 4, 2024

(in thousands) Level 1 Level 2 Level 3 Total

11 unchanged sentences

Total liabilities $ — $ 117 $ — $ 117

Assets and Liabilities at Fair Value as of January 28, 2023

Assets and Liabilities at Fair Value as of February 3, 2024

(in thousands) Level 1 Level 2 Level 3 Total

2 unchanged sentences

Derivative instruments (2)

— 1,092 — 1,092

Rabbi Trust assets (3)

9 unchanged sentences

Level 2 assets consisted of time deposits.

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

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

1 unchanged sentence

Level 2 assets consisted of trust-owned life insurance policies.

The Company’s Level 2 assets consisted of:

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

The Company’s Level 2 assets and liabilities consisted of:

• Trust-owned life insurance policies, which were valued using the cash surrender value of the life insurance policies;

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

(in thousands) October 28, 2023 January 28, 2023

The following table provides the carrying amount and fair value of the Company’s long-term gross borrowings as of May 4, 2024 and February 3, 2024:

(in thousands) May 4, 2024 February 3, 2024

Gross borrowings outstanding, carrying amount $ 213,906 $ 223,214

3 unchanged sentences

PROPERTY AND EQUIPMENT, NET

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

(in thousands) October 28, 2023 January 28, 2023

The following table provides property and equipment, net as of May 4, 2024 and February 3, 2024:

(in thousands) May 4, 2024 February 3, 2024

Property and equipment, at cost $ 2,529,429 $ 2,509,184

1 unchanged sentence

Property and equipment, net $ 540,697 $ 538,033

R efer to Note 8, “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during the thirty-nine weeks ended October 28, 2023 and thirteen and thirty-nine weeks ended October 29, 2022.

R efer to Note 8, “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during the thirteen weeks ended May 4, 2024 and thirteen weeks ended April 29, 2023.

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 and thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

The following table provides a summary of the Company’s operating lease costs for the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Single lease cost (1)

3 unchanged sentences

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

— 1,205 1,414 4,693

Sublease income

1 unchanged sentence

Total operating lease cost $ 105,504 $ 94,465

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

(1) Includes 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.

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

(4) The terms of the sublease agreement entered into by the Company with a third party during Fiscal 2020 related to one of its previous flagship store locations have not changed materially from that disclosed in Note 7, “LEASES,” of the Notes to Consolidated Financial Statements contained in “Item 8.

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

Sublease income is recognized in other operating loss (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 $ 8.3 million as of October 28, 2023.

Abercrombie & Fitch Co.

1 unchanged sentence

ASSET IMPAIRMENT

The following table provides asset impairment charges for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

The following table provides asset impairment charges for the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Operating lease right-of-use asset impairment $ 339 $ 1,414

1 unchanged sentence

Total asset impairment $ 866 $ 4,436

Asset impairment charges for the thirteen weeks ended October 29, 2022 and thirty-nine weeks ended October 28, 2023 and October 29, 2022 related to certain of the Company’s assets including stores across certain brands, geographies and store formats and other assets.

Asset impairment charges for the thirteen weeks ended May 4, 2024 and April 29, 2023 related to certain of the Company’s store assets.

The store impairment charges for the thirteen weeks ended May 4, 2024 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 8.3 million, including $ 6.7 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.

4 unchanged sentences

Impact of valuation allowances

During the thirteen and thirty-nine weeks ended October 28, 2023, the Company did not recognize income tax benefits on $ 20.0 million and $ 63.0 million, respectively, of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 3.0 million and $ 9.6 million, respectively.

As of October 28, 2023, the Company had foreign net deferred tax assets of approximately $ 47.2 million, including $ 11.3 million, $ 7.8 million, and $ 14.8 million in China, Japan and the United Kingdom, respectively.

During the thirteen weeks ended May 4, 2024, the Company did not recognize income tax benefits on $ 7.6 million of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 1.1 million.

As of May 4, 2024, the Company had foreign net deferred tax assets of approximately $ 38.3 million, including $ 8.1 million, $ 7.4 million, and $ 12.7 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 and thirty-nine weeks ended October 29, 2022, the Company did not recognize income tax benefits on $ 30.0 million and $ 69.7 million, respectively, of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 5.6 million and $ 12.8 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.

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 February 3, 2024, there were approximately $ 7.6 million, $ 7.5 million, and $ 12.6 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 and thirty-nine weeks ended October 28, 2023 and October 29, 2022.

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 May 4, 2024 and April 29, 2023.

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

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

(in thousands) October 28, 2023 January 28, 2023

The following table provides details on the Company’s long-term borrowings, net, as of May 4, 2024 and February 3, 2024 :

(in thousands) May 4, 2024 February 3, 2024

Long-term portion of borrowings, gross at carrying amount $ 213,906 $ 223,214

2 unchanged sentences

Senior Secured Notes

During the thirteen weeks ended October 28, 2023, A&F Management purchased $ 50.0 million of outstanding Senior Secured Notes in the open market and incurred a $ 1.3 million loss on extinguishment of debt, comprised of a premium of $ 0.9 million and the write-off of unamortized fees of $ 0.4 million, recognized in interest expense, net on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

During the thirteen weeks ended May 4, 2024, A&F Management purchased $ 9.3 million of outstanding Senior Secured Notes in the open market and incurred a $ 0.2 million loss on extinguishment of debt, recognized in interest expense on the Condensed Consolidated Statements of Operations and Comprehensive Income.

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.

2 unchanged sentences

Financial Statements and Supplementary Data” of the Fiscal 2023 Form 10-K.

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

As of October 28, 2023, availability under the ABL Facility was $ 399.6 million, net of $ 0.4 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 $ 359.6 million as of October 28, 2023.

The Company did not have any borrowings outstanding under the ABL Facility as of May 4, 2024 or as of February 3, 2024.

As of May 4, 2024, availability under the ABL Facility was $ 325.2 million, net of $ 0.4 million in outstanding stand-by letters of credit.

Representations, warranties and covenants

10 unchanged sentences

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 October 28, 2023.

The Company was in compliance with all debt covenants under these agreements as of May 4, 2024.

Abercrombie & Fitch Co.

2 unchanged sentences

Financial statement impact

The following table provides share-based compensation expense and the related income tax impacts for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

The following table provides share-based compensation expense and the related income tax impacts for the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Share-based compensation expense $ 11,363 $ 8,088

Income tax benefits associated with share-based compensation expense recognized

The following table provides discrete income tax benefits and charges related to share-based compensation awards during the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Income tax discrete benefits realized for tax deductions related to the issuance of shares

$ 14,554 $ 1,117

The following table provides discrete income tax benefits and charges related to share-based compensation awards during the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

Income tax discrete benefits (charges) realized for tax deductions related to the issuance of shares $ 861 $ ( 29 ) $ 2,303 $ 1,970

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

Total income tax discrete benefits (charges) related to share-based compensation awards $ 861 $ ( 39 ) $ 2,202 $ 1,757

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 thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

Total income tax discrete benefits related to share-based compensation awards

$ 14,554 $ 1,016

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Employee tax withheld upon issuance of shares (1)

$ 65,173 $ 18,359

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

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

Restricted stock units

The following table provides the summarized activity for restricted stock units for the thirty-nine weeks ended October 28, 2023:

The following table provides the summarized activity for restricted stock units for the thirteen weeks ended May 4, 2024:

Service-based Restricted

10 unchanged sentences

Date Fair Value

Unvested at January 28, 2023 2,461,395 $ 21.30 336,549 $ 31.08 662,137 $ 23.68

Unvested at February 3, 2024 1,886,085 $ 27.12 521,212 $ 30.03 260,619 $ 43.90

Granted 226,209 120.49 53,775 120.56 26,895 180.71

3 unchanged sentences

Forfeited ( 40,864 ) 30.95 — — — —

Unvested at October 28, 2023 (1)

Unvested at May 4, 2024 (1)

1,314,129 $ 44.71 424,541 $ 40.76 212,287 $ 58.95

1 unchanged sentence

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

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 October 28, 2023:

Service-based Restricted

6 unchanged sentences

2024 1Q Form 10-Q

The following table provides additional information pertaining to restricted stock units for the thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022

The following table provides additional information pertaining to restricted stock units for the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Service-based restricted stock units:

7 unchanged sentences

Total grant date fair value of awards vested 7,574 16,040

The following table provides the weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

The following table provides the weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

May 4, 2024 April 29, 2023

Grant date market price $ 120.56 $ 28.36

7 unchanged sentences

Stock appreciation rights

The following table provides the summarized stock appreciation rights activity for the thirty-nine weeks ended October 28, 2023:

The following table provides the summarized stock appreciation rights activity for the thirteen weeks ended May 4, 2024:

Shares Weighted-Average

4 unchanged sentences

Contractual Life (years)

Outstanding at January 28, 2023 190,589 $ 29.43

Outstanding at February 3, 2024 25,600 $ 29.29

Exercised ( 25,600 ) 29.29

Forfeited or expired — —

Outstanding at October 28, 2023

Outstanding at May 4, 2024

— $ — $ — 0.0

Stock appreciation rights exercisable at October 28, 2023 34,200 $ 31.65 $ 926 0.8

The following table provides additional information pertaining to stock appreciation rights exercised during the thirty-nine weeks ended October 28, 2023:

(in thousands) October 28, 2023

Stock appreciation rights exercisable at May 4, 2024 — $ — $ — 0.0

The following table provides additional information pertaining to stock appreciation rights exercised during the thirteen weeks ended May 4, 2024 and April 29, 2023:

(in thousands) May 4, 2024 April 29, 2023

Total grant date fair value of awards exercised $ 267 $ 64

No stock appreciation rights were exercised during the thirty-nine weeks ended October 29, 2022.

Abercrombie & Fitch Co.

14 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 October 28, 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:

As of May 4, 2024, 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)

3 unchanged sentences

(1) Amounts reported are the U.S.

Dollar notional amounts outstanding as of October 28, 2023.

As of October 28, 2023, foreign currency exchange forward contracts that were entered into to hedge foreign-currency-denominated net monetary assets and liabilities were as follows:

Dollar notional amounts outstanding as of May 4, 2024.

As of May 4, 2024, foreign currency exchange forward contracts that were entered into to hedge foreign-currency-denominated net monetary assets and liabilities were as follows:

(in thousands) Notional Amount (1)

United Arab Emirates dirham $ 22,058

British pound $ 12,325

(1) Amounts reported are the U.S.

Dollar notional amounts outstanding as of October 28, 2023 .

Dollar notional amounts outstanding as of May 4, 2024 .

The fair value of derivative instruments is determined using quoted market prices of the same or similar instruments, adjusted for counterparty risk.

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 October 28, 2023 and January 28, 2023:

(in thousands) Location October 28, 2023 January 28, 2023 Location October 28, 2023 January 28, 2023

(in thousands) Location May 4, 2024 February 3, 2024 Location May 4, 2024 February 3, 2024

Derivatives designated as cash flow hedging instruments Other current assets

4 unchanged sentences

$ 1,613 $ 1,092 $ 117 $ 539

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 thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

Gain recognized in AOCL (1)

$ 7,151 $ 2,723 $ 7,202 $ 10,447

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

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Gain (loss) recognized in AOCL (1)

$ 1,029 $ ( 507 )

Gain (loss) reclassified from AOCL to cost of sales, exclusive of depreciation and amortization (2)

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

(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 .

(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.

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

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 thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

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

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Gain (loss) recognized in other operating income, net

$ 1,868 $ ( 547 )

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables provide activity in AOCL fo r the thirteen and thirty-nine weeks ended October 28, 2023:

Thirteen Weeks Ended October 28, 2023

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

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

Other comprehensive (loss) income before reclassifications ( 5,042 ) 7,151 2,109

Reclassified loss from AOCL (1)

Tax effect — ( 218 ) ( 218 )

Other comprehensive (loss) income after reclassifications ( 5,042 ) 7,259 2,217

Ending balance at October 28, 2023 $ ( 141,220 ) $ 5,032 $ ( 136,188 )

Thirty-Nine Weeks Ended October 28, 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 (loss) income before reclassifications ( 8,567 ) 7,202 ( 1,365 )

Reclassified loss from AOCL (1)

— 2,940 2,940

Tax effect — ( 236 ) ( 236 )

Other comprehensive (loss) income after reclassifications ( 8,567 ) 9,906 1,339

Ending balance at October 28, 2023 $ ( 141,220 ) $ 5,032 $ ( 136,188 )

(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).

The following tables provide activity in AOCL for the thirteen and thirty-nine weeks ended October 29, 2022:

Thirteen Weeks Ended October 29, 2022

The following tables provide activity in AOCL fo r the thirteen weeks ended May 4, 2024:

Thirteen Weeks Ended May 4, 2024

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

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

Beginning balance at February 3, 2024 $ ( 136,532 ) $ 564 $ ( 135,968 )

Other comprehensive (loss) income before reclassifications ( 1,837 ) 1,029 ( 808 )

2 unchanged sentences

Tax effect — ( 23 ) ( 23 )

Other comprehensive loss after reclassifications ( 11,021 ) ( 1,206 ) ( 12,227 )

Ending balance at October 29, 2022 $ ( 147,027 ) $ 4,760 $ ( 142,267 )

Thirty-Nine Weeks Ended October 29, 2022

Other comprehensive (loss) income after reclassifications ( 1,837 ) 523 ( 1,314 )

Ending balance at May 4, 2024 $ ( 138,369 ) $ 1,087 $ ( 137,282 )

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

The following tables provide activity in AOCL for the thirteen weeks ended April 29, 2023:

Thirteen Weeks Ended April 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 (loss) income before reclassifications ( 26,338 ) 10,447 ( 15,891 )

Reclassified gain from AOCL (1)

— ( 11,718 ) ( 11,718 )

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

Reclassified loss from AOCL (1)

Tax effect — 6 6

Other comprehensive loss after reclassifications ( 26,338 ) ( 1,223 ) ( 27,561 )

Ending balance at October 29, 2022 $ ( 147,027 ) $ 4,760 $ ( 142,267 )

(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).

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

Other comprehensive income after reclassifications 311 405 716

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

(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.

SEGMENT REPORTING

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.

The Company manages its business on a geographic basis, consisting of three reportable segments:

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.

8 unchanged sentences

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.

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

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 October 28, 2023 and January 28, 2023, and for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

The following tables provide the Company’s segment information as of May 4, 2024 and February 3, 2024, and for the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Americas $ 820,121 $ 665,423

3 unchanged sentences

Operating Income (Loss)

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Americas $ 252,347 $ 156,445

5 unchanged sentences

Marketing, general and administrative expense ( 145,264 ) ( 119,405 )

Other operating (loss) income, net ( 1,256 ) 1,006 4,328 3,901

Other operating income,net 1,958 2,889

Total operating income $ 129,849 $ 34,008

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

(in thousands) October 28, 2023 January 28, 2023

(in thousands) May 4, 2024 February 3, 2024

Americas $ 361,061 $ 372,371

3 unchanged sentences

Assets not attributed to segments

2,520,818 2,504,767

Total assets $ 2,970,085 $ 2,974,233

Brand Information

The following table provides additional disaggregated revenue information, which is categorized by brand, for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(in thousands) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022

The following table provides additional disaggregated revenue information, which is categorized by brand, for the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

(in thousands) May 4, 2024 April 29, 2023

Abercrombie (1)

$ 571,513 $ 436,044

Hollister (2)

449,217 399,950

Total $ 1,020,730 $ 835,994

(1) Abercrombie brands includes Abercrombie & Fitch and abercrombie kids.

(2) Hollister brands includes Hollister and Gilly Hicks

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