What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-06-07 compared with 2023-12-04 · 180 added, 252 removed, 286 unchanged (60% of the section changed)

10 unchanged sentences

• risks related to changes in global economic and financial conditions, including inflation, and the resulting impact on consumer spending generally and on our operating results, financial condition, and expense management, and our ability to adequately mitigate the impact;

• risks related to geopolitical conflict, armed conflict, the conflicts between Russia and Ukraine or Israel and Hamas and the possible expansion of conflict in the surrounding areas , acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience;

• risks related to geopolitical conflict, armed conflict, such as the conflicts between Russia and Ukraine or Israel and Hamas and the possible expansion of conflict in the surrounding areas , including the impact of such conflicts on international trade, supplier delivery or increased freight costs, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience;

• risks related to natural disasters and other unforeseen catastrophic events;

4 unchanged sentences

• risks related to fluctuations in our tax obligations and effective tax rate, including as a result of earnings and losses generated from our international operations;

• risks related to our ability to execute on our strategic and growth initiatives, including those outlined in our Always Forward Plan;

• risks related to international operations, including changes in the economic or political conditions where we sell or source our products or changes in import tariffs or trade restrictions;

• risks and uncertainty related to adverse public health developments, such as the COVID-19 pandemic;

• risks related to our ability to execute on, and maintain the success of, our strategic and growth initiatives, including those outlined in our 2025 Always Forward Plan;

• risks related to global operations, including changes in the economic or political conditions where we sell or source our products or changes in import tariffs or trade restrictions;

• risks and uncertainty related to adverse public health developments;

• risks related to cybersecurity threats and privacy or data security breaches;

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Except as may be required by applicable law, the Company assumes no obligation to publicly update or revise its forward-looking statements, including any financial targets and estimates, whether as a result of new information, future events, or otherwise.

As used herein, “Abercrombie & Fitch Co.,” “the Company,” “we,” “us,” “our,” and similar terms include Abercrombie & Fitch Co.

and its subsidiaries, unless the context indicates otherwise.

Abercrombie & Fitch Co.

4 unchanged sentences

• Current Trends and Outlook .

A discussion related to certain of the Company’s focus areas for the current fiscal year and discussion of certain risks and challenges, as well as a summary of the Company’s performance for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022.

• Results of Operations .

An analysis of certain components of the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022.

An analysis of certain components of the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the thirteen weeks ended May 4, 2024 and April 29, 2023.

• Liquidity and Capital Resources .

A discussion of the Company’s financial condition, changes in financial condition and liquidity as of October 28, 2023, which includes (i) an analysis of financial condition as compared to January 28, 2023;

(ii) an analysis of changes in cash flows for the thirty-nine weeks ended October 28, 2023, as compared to the thirty-nine weeks ended October 29, 2022;

A discussion of the Company’s financial condition, changes in financial condition and liquidity as of May 4, 2024, which includes (i) an analysis of financial condition as compared to February 3, 2024;

(ii) an analysis of changes in cash flows for the thirteen weeks ended May 4, 2024, as compared to the thirteen weeks ended April 29, 2023;

and (iii) an analysis of liquidity, including availability under the Company’s ABL Facility, the Company’s share repurchase program, and outstanding debt and covenant compliance.

10 unchanged sentences

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, as indicated in our Always Forward Plan, the Company reorganized its structure and now manages its business on a geographic basis, consisting of three reportable segments:

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.

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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

Historically, the Company’s operations have been seasonal in nature and consist of two principal selling seasons:

4 unchanged sentences

Focus areas for fiscal 2024

The Company remains committed to, and confident in, its long-term vision of being a digitally-led global omnichannel apparel retailer and continues to evaluate opportunities to make progress toward initiatives that support this vision as outlined in its Always Forward Plan.

The Always Forward Plan, which outlines the Company’s long-term strategic goals, including growing shareholder value, is anchored on three strategic growth principles, which are to:

• Execute focused brand growth plans;

In June of Fiscal 2022, we announced our 2025 Always Forward Plan, which outlines our long-term strategy and goals, including growing shareholder value.

The 2025 Always Forward Plan is anchored on our strategic growth principles, which are to:

• Execute focused growth plans;

• Accelerate an enterprise-wide digital revolution;

• Operate with financial discipline

The following focus areas for Fiscal 2023 serve as a framework for the Company achieving sustainable growth and progressing toward the Always Forward Plan:

• Execute focused brand growth plans for Abercrombie brands and Hollister brands by:

The 2025 Always Forward Plan growth principles serve as a framework for the Company achieving sustainable and profitable growth and profitability in Fiscal 2024.

Below are some additional details specific to Fiscal 2024 objectives within the 2025 Always Forward Plan:

Execute focused growth plans by:

• driving sales growth across regions and brands primarily through marketing and store investment.

• using our playbooks globally to align the brands’ products, voices, and experiences with customers, both digitally and in-store;

• Accelerate an enterprise-wide digital revolution

• Progress on current phase of our modernization efforts around key data platforms;

• Continue to progress on our multi-year enterprise resource planning (“ERP”) transformation and cloud migration journey;

• Improve our digital and app experience across key parts of the customer journey

• using testing and chase strategies to deliver compelling assortments and product collections across genders.

Accelerate an enterprise-wide digital revolution to improve the customer and associate experience by:

• continuing to progress on our multi-year enterprise resource planning (“ERP”) transformation and cloud migration journey;

• investing in digital and technology to improve experiences across key parts of the customer journey while delivering a consistent omnichannel experience.

Operate with financial discipline by:

• actively managing inventory levels and positioning Abercrombie brands and Hollister brands to chase inventory as appropriate throughout the year;

• funding our growth strategies while properly balancing investments, impacts of inflation and efficiency efforts.

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

• Operate with financial discipline

• Maintain appropriately lean inventory levels that put Abercrombie and Hollister in a position to chase inventory throughout the year;

• Properly balance investments, inflation and efficiency efforts to improve profitability

Current macroeconomic conditions and impact of inflation

Macroeconomic conditions, including inflation, higher interest rates, foreign exchange rate fluctuations, and declines in consumer discretionary spending continue to negatively impact our business.

Macroeconomic conditions, including inflation, higher interest rates, the geopolitical landscape, political uncertainty including elections in several countries, foreign exchange rate fluctuations, and declines in consumer discretionary spending continue to negatively impact the global economy.

In periods of perceived or actual unfavorable economic conditions, consumers may reallocate available discretionary spending, which may adversely impact demand for our products.

Supply chain disruptions

Previously, the Company experienced inflationary pressures with respect to labor, cotton, freight and other raw materials and other costs, which has negatively impacted expenses and margins.

While freight costs have decreased and supply chain constraints are waning, there continues to be inflationary pressures with respect to cotton and other raw materials, as well as other operating costs.

The Company may be unsuccessful in passing these increased costs on to its customers through higher average unit retail (“AUR”).

Continued inflationary pressures could further impact expenses and have a long-term impact on the Company because increasing costs may impact its ability to maintain satisfactory margins.

The Company continues to experience pricing volatility with respect to cotton, raw materials and freight costs.

While cotton and raw material costs have decreased from prior year-end levels, freight costs have recently been increasing.

Continued inflationary pressures and pricing volatility could further impact expenses and have a long-term impact on the Company because increasing costs may impact its ability to maintain satisfactory margins.

Global events and supply chain disruptions

As a global multi-brand omnichannel specialty retailer, with operations in North America, Europe, the Middle East, and Asia, among other regions, management is mindful of macroeconomic risks, global challenges and the changing global geopolitical environment, including the ongoing armed conflicts between Russia and Ukraine or Israel and Hamas, and conflict in the surrounding areas, which could adversely impact certain areas of the business.

Starting in late Fiscal 2023, disruptions to ocean vessels in the Red Sea resulted in delayed deliveries to the EMEA region.

Such disruptions have also increased freight costs, which may impact the Company through the remainder of Fiscal 2024.

The Company has taken certain mitigating actions in response to these events, including increasing air freight usage where appropriate and prioritizing critical orders earlier to allow for longer lead times.

Further mitigating actions may be needed, particularly if there is prolonged or escalating conflict in the Red Sea.

Management continues to monitor global events and assess the potential impacts that these events and similar events may have on the business in future periods.

Although management also develops and updates contingency plans to assist in mitigating potential impacts, it is possible that the Company’s preparations for such events are not adequate to mitigate their impact, and that these events could further adversely affect its business and results of operations.

Global store network optimization

The Company has a goal of finding the right size, right location and right economics for omni-enabled stores that cater to local customers.

The Company continues to use data to inform its focus on aligning store square footage with digital penetration, and during the year-to-date period of Fiscal 2023, the Company opened 24 new stores, while closing 21 stores.

As part of this focus, the Company expects store count to remain steady with approximately 35 new stores, while closing approximately 35 stores, during Fiscal 2023, pending negotiations with our landlord partners.

The Company continues to use data to inform its focus on aligning store square footage with digital penetration, and during the year-to-date period of Fiscal 2024, the Company opened 1 new store, while closing 13 stores.

As part of this focus, the Company has updated and increased its store investment plan to include approximately 60 new stores, while closing approximately 40 stores, during Fiscal 2024, pending negotiations with our landlord partners.

Future closures could be completed through natural lease expirations, while certain other leases include early termination options that can be exercised under specific conditions.

The Company may also elect to exit or modify other leases, and could incur charges related to these actions.

Impact of global events and uncertainty

As we are a global multi-brand omnichannel specialty retailer, with operations in the Americas, EMEA, and APAC, among other regions, management is mindful of macroeconomic risks, global challenges and the changing global geopolitical environment, including t he ongoing conflicts between Russia and Ukraine, the conflict between Israel and Hamas and the possible expansion of conflict in the surrounding areas that could adversely impact certain areas of the business.

As a result, management continues to monitor global events.

The Company continues to assess the potential impacts these events and similar events may have on the business in future periods and continues to develop and update contingency plans to assist in mitigating potential impacts.

It is possible that the Company’s preparations for such events are not adequate to mitigate their impact, and that these events could further adversely affect its business and results of operations.

Pillar Two Model Rules

In 2021, the Organization for Economic Cooperation and Development (“OECD”) released Pillar Two Global Anti-Base Erosion model rules (“Pillar Two Rules”), designed to ensure large corporations are taxed at a minimum rate of 15% in all countries of operation.

Although the U.S.

has not yet enacted legislation implementing Pillar Two Rules, other countries where the Company does business, including the U.K.

and Germany, have enacted legislation implementing Pillar Two Rules which are effective from January 1, 2024.

The implementation of the Pillar Two Rules in each jurisdiction in which it operates did not have a material impact on the Company’s effective tax rate.

The Company will continue to evaluate the impact as additional jurisdictions implement legislation and provide further guidance.

For a discussion of material risks that have the potential to cause our actual results to differ materially from our expectations, refer to Part I, “Item 1A.

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Summary of results

A summary of results for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022 was as follows:

A summary of results for the thirteen weeks ended May 4, 2024 and April 29, 2023 was as follows:

GAAP Non-GAAP (1)

(in thousands, except change in net sales, comparable sales, gross profit rate, operating income margin and per share amounts)

October 28, 2023

October 29, 2022

October 28, 2023

October 29, 2022

Thirteen Weeks Ended

Net sales $ 1,056,431 $ 880,084

Change in net sales 20.0 % (2.8) %

Comparable sales (2)

Gross profit rate 64.9 % 59.2 %

Operating income $ 138,020 $ 17,543 $ 138,020 $ 21,287

Operating income margin

Thirteen Weeks Ended May 4, 2024

April 29, 2023

Net sales (in thousands)

$ 1,020,730 $ 835,994

Net income (loss) attributable to A&F $ 96,211 $ (2,214) $ 96,211 $ 554

Net income (loss) per share attributable to A&F 1.83 (0.04) 1.83 0.01

Thirty-Nine Weeks Ended

Net sales $ 2,827,770 $ 2,497,937

Change in net sales 22.1 % 2.9 %

1 unchanged sentence

Gross profit rate 66.4 % 61.0 %

Operating income $ 261,870 $ 5,626 $ 266,306 $ 14,962

Operating income (in thousands)

$ 129,849 $ 34,008 $ 129,849 $ 38,444

Operating income margin

12.7 % 4.1 % 12.7 % 4.6 %

Net income (loss) attributable to A&F.

Net income attributable to A&F (in thousands)

$ 113,850 $ 16,571 $ 113,850 $ 19,820

Net income (loss) per share attributable to A&F 3.25 (0.70) 3.32 (0.57)

Net income per share attributable to A&F 2.14 0.32 2.14 0.39

(1) Discussion as to why the Company believes that these non-GAAP financial measures are useful to investors and a reconciliation of the non-GAAP measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are provided below under “ NON-GAAP FINANCIAL MEASURES .”

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Refer to the discussion below in “ NON-GAAP FINANCIAL MEASURES ,” for further details on the comparable sales calculation.

In light of store closures related to COVID-19, comparable sales for periods prior to Fiscal 2023 included in the Company’s Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q are not disclosed.

Certain components of the Company’s Condensed Consolidated Balance Sheets as of October 28, 2023 and January 28, 2023 were as follows:

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

Certain components of the Company’s Condensed Consolidated Balance Sheets as of May 4, 2024 and February 3, 2024 were as follows:

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

Cash and equivalents $ 864,195 $ 900,884

Gross long-term borrowings outstanding, carrying amount 249,730 299,730

Inventories 449,267 469,466

Certain components of the Company’s Condensed Consolidated Statements of Cash Flows for the thirty-nine week periods ended October 28, 2023 and October 29, 2022 were as follows:

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

Gross long-term borrowings outstanding, carrying amount 213,906 223,214

Certain components of the Company’s Condensed Consolidated Statements of Cash Flows for the thirteen week periods ended May 4, 2024 and April 29, 2023 were as follows:

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

Net cash provided by (used for) operating activities $ 95,010 $ (560)

1 unchanged sentence

Net cash used for financing activities (92,951) (21,956)

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

RESULTS OF OPERATIONS

1 unchanged sentence

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

The Company’s net sales by reportable segment for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022 were as follows:

The Company’s net sales by reportable segment for the thirteen weeks ended May 4, 2024 and April 29, 2023 were as follows:

Thirteen Weeks Ended

(in thousands, except ratios) October 28, 2023 October 29, 2022 $ Change % Change Comparable

Americas $ 867,566 $ 713,860 $ 153,706 22 % 16 %

EMEA 157,976 138,840 19,136 14 15

APAC 30,889 27,384 3,505 13 32

Total $ 1,056,431 $ 880,084 $ 176,347 20 16

Thirty-Nine Weeks Ended

(in thousands, except ratios) October 28, 2023 October 29, 2022 $ Change % Change Comparable

(in thousands, except ratios) May 4, 2024 April 29, 2023 $ Change % Change Comparable

Americas $ 820,121 $ 665,423 $ 154,698 23 % 21 %

4 unchanged sentences

Refer to “ NON-GAAP FINANCIAL MEASURES, ” for further details on the comparable sales calculation.

For the third quarter of Fiscal 2023, net sales increased 20%, as compared to the third quarter of Fiscal 2022, primarily due to an increase in units sold and AUR.

The year-over-year increase in net sales reflects a positive comparable sales of 16%, as compared to the third quarter of Fiscal 2022, with growth in the Americas, EMEA and APAC segments.

For the year-to-date period of Fiscal 2023, net sales increased 13%, as compared to the year-to-date period of Fiscal 2022, primarily due to an increase in AUR.

The year-over-year increase in net sales reflects positive comparable sales of 11%, as compared to the year-to-date period of Fiscal 2022, with comparable sales growth in the Americas, EMEA and APAC segments.

The Company’s net sales by brand for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022 were as follows:

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

For the first quarter of Fiscal 2024, net sales increased 22%, as compared to the first quarter of Fiscal 2023, primarily due to broad-based net sales growth across segments, mainly driven by a higher AUR as a result of lower promotional activity.

The year-over-year increase in net sales reflects a positive comparable sales of 21%, as compared to the first quarter of Fiscal 2023, with double-digit comparable sales growth in the Americas, EMEA and APAC segments.

The Company’s net sales by brand for the thirteen weeks ended May 4, 2024 and April 29, 2023 were as follows:

Thirteen Weeks Ended

(in thousands, except ratios) October 28, 2023 October 29, 2022 $ Change % Change Comparable

Abercrombie (2)

$ 547,728 $ 422,332 $ 125,396 30 % 26 %

Hollister (3)

508,703 457,752 50,951 11 7

Total $ 1,056,431 $ 880,084 $ 176,347 20 16

Thirty-Nine Weeks Ended

(in thousands, except ratios) October 28, 2023 October 29, 2022 $ Change % Change Comparable

(in thousands, except ratios) May 4, 2024 April 29, 2023 $ Change % Change Comparable

Abercrombie (2)

6 unchanged sentences

(2) Includes Abercrombie & Fitch and abercrombie kids.

(3) Includes Hollister, Gilly Hicks, and Social Tourist.

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

(3) Includes Hollister and Gilly Hicks.

Cost of sales, exclusive of depreciation and amortization

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Cost of sales, exclusive of depreciation and amortization $ 370,762 35.1 % $ 359,268 40.8 % (570)

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

May 4, 2024 April 29, 2023

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Cost of sales, exclusive of depreciation and amortization $ 343,273 33.6 % $ 326,200 39.0 % (540)

For the third quarter of Fiscal 2023, cost of sales, exclusive of depreciation and amortization, as a percentage of net sales decreased by approximately 570 basis points, as compared to the third quarter of Fiscal 2022.

The year-over-year decrease was primarily driven by a benefit of 250 basis points from year-over-year AUR growth, approximately 200 basis points from lower freight costs, and approximately 200 basis points in lower levels of inventory write downs compared to last year, partially offset by 80 basis points from higher raw material costs.

For the year-to-date period of Fiscal 2023, cost of sales, exclusive of depreciation and amortization, as a percentage of net sales decreased by approximately 540 basis points, as compared to the year-to-date period of Fiscal 2022.

The year-over-year decrease was primarily attributable to a benefit from lower freight costs of approximately 420 basis points and approximately 360 basis points from year-over-year AUR growth.

These benefits were partially offset by approximately 120 basis points from higher raw material costs.

For the first quarter of Fiscal 2024, cost of sales, exclusive of depreciation and amortization, as a percentage of net sales decreased by approximately 540 basis points, as compared to the first quarter of Fiscal 2023.

The year-over-year percentage decline was primarily attributable to lower cotton and raw material costs as well as increased average unit retail.

Year-over-year decreases in the Americas and EMEA region were primarily driven by lower discounts and clearance selling.

The APAC region also benefited from lower raw material costs, partially offset by the impact of changes in foreign currency.

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

Gross profit, exclusive of depreciation and amortization

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Gross profit, exclusive of depreciation and amortization $ 685,669 64.9 % $ 520,816 59.2 % 570

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

May 4, 2024 April 29, 2023

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

2 unchanged sentences

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Stores and distribution expense $ 383,883 36.3 % $ 367,333 41.7 % (540)

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

May 4, 2024 April 29, 2023

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Stores and distribution expense $ 371,686 36.4 % $ 336,049 40.2 % (380)

For the third quarter of Fiscal 2023, stores and distribution expense, as a percentage of net sales decreased, as compared to the third quarter of Fiscal 2022.

The decrease was primarily driven by expense leverage as a result of net sales growth, slightly offset with increases in store occupancy and fulfillment costs as compared to the third quarter of 2022.

For the year-to-date period of Fiscal 2023, stores and distribution expense, as a percentage of net sales decreased, as compared to the year-to-date period of Fiscal 2022.

The decrease was primarily driven by expense leverage as a result of net sales growth, slightly offset by an increase in store occupancy expense compared to the year-to-date period of Fiscal 2022.

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

For the first quarter of Fiscal 2024, stores and distribution expense, as a percentage of net sales decreased, as compared to the first quarter of Fiscal 2023.

The decrease was primarily driven by expense leverage as a result of net sales growth, slightly offset with increases in distribution center and order fulfillment costs as compared to the first quarter of 2023.

Marketing, general and administrative expense

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Marketing, general and administrative expense $ 162,510 15.4 % $ 133,201 15.1 % 30

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

May 4, 2024 April 29, 2023

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Marketing, general and administrative expense $ 177,880 17.4 % $ 142,631 17.1 % 30

For the third quarter of Fiscal 2023, marketing, general and administrative expense, as a percentage of net sales, increased 30 basis points, as compared to the third quarter of Fiscal 2022, primarily driven by an increase in marketing and technology expenses and incentive-based compensation.

For the year-to-date period of Fiscal 2023, marketing, general and administration expense, as a percentage of net sales, increased 70 basis points as compared to the year-to-date period of Fiscal 2022, primarily due to an increase in technology expenses and incentive-based compensation.

Asset impairment

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Asset impairment $ — —% $ 3,744 0.4% (40)

Excluded items:

Asset impairment charges (1)

— — (3,744) (0.4) 40

Adjusted non-GAAP asset impairment (1)

$ — — $ — — —

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) % of Net Sales % of Net Sales BPS Change

Asset impairment $ 4,436 0.2% $ 9,336 0.4% (20)

Excluded items:

Asset impairment charges (1)

(4,436) (0.2) (9,336) (0.4) 20

Adjusted non-GAAP asset impairment (1)

$ — — $ — — —

(1) Refer to “ NON-GAAP FINANCIAL MEASURES ” for further details.

Refer to Note 8, “ ASSET IMPAIRMENT .”

Other operating (loss) income, net

For the first quarter of Fiscal 2024, marketing, general and administrative expense, as a percentage of net sales, increased 30 basis points, as compared to the first quarter of Fiscal 2023, primarily driven by an increase in marketing expense and investments in technology and people.

Other operating income, net

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Other operating (loss) income, net $ (1,256) (0.1) % $ 1,005 0.1 % (20)

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

May 4, 2024 April 29, 2023

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Other operating income, net $ 1,958 0.2 % $ 2,894 0.3 % (10)

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

Operating income

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Operating income $ 138,020 13.1 % $ 17,543 2.0 % 1,110

Excluded items:

Asset impairment charges (1)

— — 3,744 0.4 (40)

Adjusted non-GAAP operating income ⁽¹⁾ $ 138,020 13.1 $ 21,287 2.4 1,070

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

May 4, 2024 April 29, 2023

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

5 unchanged sentences

(1) Refer to “ NON-GAAP FINANCIAL MEASURES ” for further details.

Interest expense, net

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

Interest (income) expense, net

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Interest expense $ 8,568 0.8 % $ 7,586 0.9 % (10)

Interest income (7,897) (0.7) (291) (0.1) (60)

Interest expense, net $ 671 0.1 $ 7,295 0.8 (70)

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

May 4, 2024 April 29, 2023

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

1 unchanged sentence

Interest income (10,803) (1.1) (4,015) (0.5) (60)

Interest expense, net $ 5,211 0.2 $ 21,519 0.9 (70)

For the third quarter of Fiscal 2023, interest expense, net decreased $6.6 million, as compared to the third quarter of Fiscal 2022, as a result of lower borrowings in the current quarter due to the purchase of Senior Secured Notes as well as higher interest income due to the increase in balance and rates received on deposits and money market accounts.

For the year-to-date period of Fiscal 2023, interest expense, net decreased $16.3 million, as compared to the year-to-date period of Fiscal 2022, as a result of lower borrowings in the current quarter due to the purchase of Senior Secured Notes as well as higher interest income due to the increase in balance and rates received on deposits and money market accounts.

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

Interest (income) expense, net $ (5,023) (0.5) $ 3,443 0.4 (90)

For the first quarter of Fiscal 2024, interest (income) expense, net decreased $8.5 million, as compared to the first quarter of Fiscal 2023, as a result of lower borrowings due to the purchase of Senior Secured Notes as well as an increase in interest income due to the increase in balance and rates received on deposits and money market accounts.

Income tax expense

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

(in thousands, except ratios) Effective Tax Rate Effective Tax Rate

Income tax expense $ 39,617 28.8 % $ 10,966 107.0 %

Excluded items:

Tax effect of pre-tax excluded items (1)

Adjusted non-GAAP income tax expense ⁽¹⁾ $ 39,617 28.8 $ 11,942 85.3

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

May 4, 2024 April 29, 2023

(in thousands, except ratios) Effective Tax Rate Effective Tax Rate

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Refer to “ Operating income ” and “ NON-GAAP FINANCIAL MEASURES ” for details of pre-tax excluded items.

Compared with Fiscal 2022, the change in the effective tax rates during the third quarter and year-to-date period of Fiscal 2023 is due to higher levels of income offsetting tax losses incurred outside of the U.S., for which no benefit is recognized.

Compared with the first quarter of Fiscal 2023, the change in the effective tax rates during the first quarter of Fiscal 2024 is due to higher levels of pre-tax income offset by a larger tax benefit on share based compensation.

Refer to Note 9, “ INCOME TAXES .”

Net income (loss) attributable to A&F

Net income attributable to A&F

Thirteen Weeks Ended

October 28, 2023 October 29, 2022

May 4, 2024 April 29, 2023

(in thousands) % of Net sales % of Net sales BPS Change

Net income (loss) attributable to A&F $ 96,211 9.1 % $ (2,214) (0.3) % 940

Net income attributable to A&F $ 113,850 11.2 % $ 16,571 2.0 % 920

Excluded items, net of tax (1)

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$ 113,850 11.2 $ 19,820 2.4 880

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

(in thousands) % of Net Sales % of Net Sales BPS Change

Net income (loss) attributable to A&F.

$ 169,676 6.0 % $ (35,517) (1.4) % 740

Excluded items, net of tax (1)

3,229 0.1 6,831 0.3 (20)

Adjusted non-GAAP net income (loss) attributable to A&F (2)

$ 172,905 6.1 $ (28,686) (1.1) 720

(1) Excluded items presented above under “ Operating income ,” and “ Income tax expense ”

2 unchanged sentences

2024 1Q Form 10-Q

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

Net income per share attributable to A&F

Thirteen Weeks Ended

October 28, 2023 October 29, 2022 $ Change

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

May 4, 2024 April 29, 2023 $ Change

Net income per diluted share attributable to A&F

$ 2.14 $ 0.32 $ 1.82

6 unchanged sentences

2.14 0.39 1.75

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022 $ Change

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

$ 3.25 $ (0.70) $ 3.95

Excluded items, net of tax (1)

(1) Excluded items presented above under “ Operating income ,” and “ Income tax expense .

(2) Refer to “ NON-GAAP FINANCIAL MEASURES ” for further details.

EBITDA and adjusted EBITDA

Thirteen Weeks Ended

May 4, 2024 April 29, 2023

(in thousands, except ratios) % of Net sales % of Net sales BPS Change

Net income $ 115,078 11.3 % $ 17,847 2.1 % 920

Income tax expense 19,794 1.9 12,718 1.5 40

Interest (income) expense, net (5,023) (0.5) 3,443 0.4 (90)

Depreciation and amortization 37,689 3.7 36,028 4.4 (70)

$ 167,538 16.4 % $ 70,036 8.4 % 800

Adjusted non-GAAP net income (loss) per diluted share attributable to A&F

Excluded items:

Asset impairment charges (1)

— — 4,436 0.5 (50)

Impact from changes in foreign currency exchange rates — (0.20) 0.20

Adjusted non-GAAP net income (loss) per diluted share attributable to A&F on a constant currency basis (2)

Adjusted EBITDA (1)

$ 167,538 16.4 % $ 74,472 8.9 % 750

(1) Excluded items presented above under “ Operating income ,” and “ Income tax expense .

(2) Refer to “ NON-GAAP FINANCIAL MEASURES ” for further details.

(1) EBITDA and Adjusted EBITDA are supplemental financial measures that are not defined or prepared in accordance with GAAP.

EBITDA is defined as net income before interest, income taxes and depreciation and amortization.

Adjusted EBITDA is EBITDA adjusted for asset impairment.

Abercrombie & Fitch Co.

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The Company’s capital allocation strategy and priorities are reviewed by A&F’s Board of Directors quarterly considering both liquidity and valuation factors.

The Company believes that it will have adequate liquidity to fund operating activities for the next 12 months.

The Company believes that it will have adequate liquidity to fund operating activities for the next twelve months.

The Company monitors financing market conditions and may in the future determine whether and when to amend, modify, repurchase, or restructure its ABL Facility and/or the Senior Secured Notes or repurchase shares of its Common Stock.

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The Company also has the ABL Facility available as a source of additional funding, which is described further below under “ Credit facility and Senior Secured Notes ”.

Over the next twelve months, the Company expects its primary cash requirements to be directed towards prioritizing investments in the business and continuing to fund operating activities, including the acquisition of inventory, and obligations related to compensation, marketing, leases and any lease buyouts or modifications it may exercise, taxes and other operating activities.

Over the next twelve months, the Company expects its primary cash requirements to be directed towards prioritizing investments in the business and continuing to fund operating activities, including the acquisition of inventory, and obligations related to compensation, marketing, data and technology leases and any lease buyouts or modifications it may exercise, taxes and other operating activities.

In addition, the Company continuously evaluates potential opportunities to strategically deploy excess cash and/or deleverage the balance sheet, depending on various factors, such as market and business conditions, including the Company’s ability to accelerate investments in the business.

Such opportunities may include, but are not limited to, purchasing outstanding Senior Secured Notes or share repurchases.

The Company evaluates opportunities for investments in the business that are in line with initiatives that position the business for sustainable long-term growth that align with its strategic pillars as described within Part I, “Item 1.

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Historically, the Company has utilized free cash flow generated from operations to fund any discretionary capital expenditures, which have been prioritized towards new store experiences, as well as digital and omnichannel investments, information technology, and other projects.

For the year-to-date period ended October 28, 2023, the Company used $128.6 million towards capital expenditures.

For the year-to-date period ended May 4, 2024, the Company used $38.9 million towards capital expenditures.

Total capital expenditures for Fiscal 2024 are expected to be approximately $170 million.

The Company measures liquidity using total cash and cash equivalents and incremental borrowing available under the ABL Facility.

As of October 28, 2023, the Company had cash and cash equivalents of $649.5 million and total liquidity of approximately $1.0 billion, compared with cash and cash equivalents of $517.6 million and total liquidity of approximately $865.7 million at the beginning of Fiscal 2023.

This allows the Company to evaluate potential opportunities to strategically deploy excess cash and/or deleverage the balance sheet, depending on various factors, such as market and business conditions, including the Company’s ability to accelerate investments in the business.

Such opportunities include, but are not limited to, returning cash to shareholders through purchasing outstanding Senior Secured Notes or share repurchases.

As of May 4, 2024, the Company had cash and cash equivalents of $864.2 million and total liquidity of approximately $1.2 billion, compared with cash and cash equivalents of $900.9 million and total liquidity of approximately $1.2 billion at the beginning of Fiscal 2024.

Share repurchases and dividends

In November 2021, A&F’s Board of Directors approved a $500 million share repurchase authorization, replacing the prior 2021 share repurchase authorization of 10.0 million shares, which had approximately 3.9 million shares remaining available.

During the year-to-date period ended October 28, 2023, the Company did not repurchase any shares of its common stock pursuant to this share repurchase authorization.

During the year-to-date period ended May 4, 2024, the Company repurchased approximately 0.1 million shares of its common stock pursuant to this share repurchase authorization for approximately $15.0 million.

The Company has $217 million in share repurchase authorization remaining under the authorization approved in November 2021.

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Unregistered Sales of Equity Securities and Use of Proceeds ” of Part II of this Quarterly Report on Form 10-Q for the amount remaining available for purchase under the Company’s publicly announced share repurchase authorization.

In May 2020, the Company announced that it had suspended its dividend program in order to preserve liquidity and maintain financial flexibility in light of COVID-19.

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

The Company’s dividend program is currently suspended in order to preserve liquidity and maintain financial flexibility.

The Company may in the future review its dividend program to determine, in light of facts and circumstances at that time, whether and when to reinstate.

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A&F’s Board of Directors reviews and establishes a dividend amount, if at all, based on A&F’s financial condition, results of operations, capital requirements, current and projected cash flows, business prospects and other factors, including any restrictions under the Company’s agreements related to the Senior Secured Notes and the ABL Facility.

There can be no

Abercrombie & Fitch Co.

2023 3Q Form 10-Q

assurance that the Company will declare and pay dividends in the future or, if dividends are paid, that they will be in amounts similar to past dividends.

There can be no assurance that the Company will declare and pay dividends in the future or, if dividends are paid, that they will be in amounts similar to past dividends.

Credit facility and Senior Secured Notes

As of October 28, 2023, the Company had $249.7 million of gross borrowings outstanding under the 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).

As of May 4, 2024, the Company had $213.9 million of gross borrowings outstanding under the Senior Secured Notes.

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.

In addition, the Amended and Restated Credit Agreement, as amended by the First Amendment (as defined below), provides for the ABL Facility, which is a senior secured asset-based revolving credit facility of up to $400 million.

As of October 28, 2023, the Company did not have any borrowings outstanding under the ABL Facility.

As of May 4, 2024, the Company did not have any borrowings outstanding under the ABL Facility.

The ABL Facility matures on April 29, 2026.

Details regarding the remaining borrowing capacity under the ABL Facility as of October 28, 2023 are as follows:

(in thousands) October 28, 2023

Details regarding the remaining borrowing capacity under the ABL Facility as of May 4, 2024 are as follows:

(in thousands) May 4, 2024

Loan cap $ 325,648

9 unchanged sentences

The Company accrues for both state income taxes and foreign withholding taxes with respect to earnings and profits earned after February 2, 2019, in such a manner that these funds could be repatriated without incurring additional tax expense.

As of October 28, 2023, $213.1 million of the Company’s $649.5 million of cash and equivalents were held by foreign affiliates.

As of May 4, 2024, $249.9 million of the Company’s $864.2 million of cash and equivalents were held by foreign affiliates.

Refer to Note 9, “ INCOME TAXES .”

Analysis of cash flows

The table below provides certain components of the Company’s Condensed Consolidated Statements of Cash Flows for the thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Thirty-Nine Weeks Ended

October 28, 2023 October 29, 2022

The table below provides certain components of the Company’s Condensed Consolidated Statements of Cash Flows for the thirteen weeks ended May 4, 2024 and April 29, 2023:

Thirteen Weeks Ended

May 4, 2024 April 29, 2023

(in thousands)

4 unchanged sentences

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, end of period $ 872,001 $ 456,664

Operating activities - During the year-to-date period ended October 28, 2023, net cash provided by operating activities included increased cash receipts as a result of the 13% year-over-year increase in net sales as well as increased payments to vendors in the fourth quarter of Fiscal 2022 which resulted in lower cash payments in the first quarter of Fiscal 2023.

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

Investing activities - During the year-to-date period ended October 28, 2023, net cash used for investing activities was primarily used for capital expenditures of $128.6 million.

Net cash used for investing activities for the year-to-date period ended October 29, 2022 was primarily used for capital expenditures of $120.3 million, partially offset by the proceeds from the withdrawal of $12.0 million of excess funds by Rabbi Trust assets and the sale of property and equipment of $11.9 million.

Financing activities - During the year-to-date period ended October 28, 2023, net cash used for financing activities included the purchase of $50.0 million of outstanding Senior Secured Notes at a premium of $0.9 million as well as amounts related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards.

During the year-to-date period ended October 29, 2022, net cash used for financing activities included the repurchase of approximately 4.8 million shares of Common Stock with a market value of approximately $125.8 million as well as amounts related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards.

Operating activities - During the year-to-date period ended May 4, 2024, net cash provided by operating activities included increased cash receipts as a result of the 22% year-over-year increase in net sales.

During the year-to-date period ended April 29, 2023, net cash used for operating activities included increased cash receipts as a result of the 3% year-over-year increase in net sales as well as increased payments to vendors in the fourth quarter of Fiscal 2022 which resulted in lower cash payments in the first quarter of Fiscal 2023.

Investing activities - During the year-to-date period ended May 4, 2024, net cash used for investing activities was primarily used for capital expenditures of $38.9 million.

Net cash used for investing activities for the year-to-date period ended April 29, 2023 was primarily used for capital expenditures of $46.4 million.

Financing activities - During the year-to-date period ended May 4, 2024, net cash used for financing activities included $65 million related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards, the purchase of approximately 0.1 million shares of Common Stock with a market value of approximately $15.0 million and the purchase of $9.3 million of outstanding Senior Secured Notes at a premium of $0.1 million.

During the year-to-date period ended April 29, 2023, net cash used for financing activities included amounts related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards.

Contractual obligations

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These contractual obligations impact the Company’s short-term and long-term liquidity and capital resource needs.

There have been no material changes in the Company’s contractual obligations since January 28, 2023, with the exception of those obligations which occurred in the normal course of business (primarily changes in the Company’s merchandise inventory-related purchases and lease obligations, which fluctuate throughout the year as a result of the seasonal nature of the Company’s operations).

There have been no material changes in the Company’s contractual obligations since February 3, 2024, with the exception of those obligations which occurred in the normal course of business (primarily changes in the Company’s merchandise inventory-related purchases and lease obligations, which fluctuate throughout the year as a result of the seasonal nature of the Company’s operations).

RECENT ACCOUNTING PRONOUNCEMENTS

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Comparable sales excludes revenue other than store and digital sales.

Management uses comparable sales to understand the drivers of year-over-year changes in net sales and believes comparable sales is a useful metric as it can assist investors in distinguishing the portion of the Company’s revenue attributable to existing locations from the portion attributable to the opening or closing of stores.

The most directly comparable GAAP financial measure is change in net sales.

Management uses comparable sales to understand the drivers of year-over-year changes in net sales and believes comparable sales can be a useful metric as it can

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

assist investors in distinguishing the portion of the Company’s revenue attributable to existing locations from the portion attributable to the opening or closing of stores.

The most directly comparable GAAP financial measure is change in net sales.

Excluded items

5 unchanged sentences

Tax effect of pre-tax excluded items

Net income (loss) and net income (loss) per share attributable to A&F (2)

Net income and net income per share attributable to A&F (2)

Pre-tax excluded items and the tax effect of pre-tax excluded items

6 unchanged sentences

The per diluted share effect from foreign currency exchange rates is calculated using a 26% effective tax rate.

Reconciliations of non-GAAP financial metrics on a constant currency basis to financial measures calculated and presented in accordance with GAAP for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022 were as follows:

(in thousands, except change in net sales, gross profit rate, operating margin and per share data) Thirteen Weeks Ended Thirty-Nine Weeks Ended

Net sales October 28, 2023 October 29, 2022 % Change October 28, 2023 October 29, 2022 % Change

Reconciliations of non-GAAP financial metrics on a constant currency basis to financial measures calculated and presented in accordance with GAAP for the thirteen weeks ended May 4, 2024 and April 29, 2023 were as follows:

(in thousands, except change in net sales, gross profit rate, operating margin and per share data) Thirteen Weeks Ended

Net sales May 4, 2024 April 29, 2023 % Change

GAAP $ 1,020,730 $ 835,994 22 %

1 unchanged sentence

Non-GAAP on a constant currency basis $ 1,020,730 $ 835,443 22

Gross profit, exclusive of depreciation and amortization expense October 28, 2023 October 29, 2022 BPS Change (1)

October 28, 2023 October 29, 2022 BPS Change (1)

Gross profit, exclusive of depreciation and amortization expense May 4, 2024 April 29, 2023 BPS Change (1)

GAAP $ 677,457 $ 509,794 540

1 unchanged sentence

Non-GAAP on a constant currency basis $ 677,457 $ 510,724 530

Operating income October 28, 2023 October 29, 2022 BPS Change (1)

October 28, 2023 October 29, 2022 BPS Change (1)

Operating income May 4, 2024 April 29, 2023 BPS Change (1)

GAAP $ 129,849 $ 34,008 860

Excluded items (2)

— (3,744) 40 (4,436) (9,336) 30

Adjusted non-GAAP $ 129,849 $ 38,444 810

1 unchanged sentence

Adjusted non-GAAP on a constant currency basis $ 129,849 $ 38,907 800

Net income (loss) per share attributable to A&F October 28, 2023 October 29, 2022 $ Change October 28, 2023 October 29, 2022 $ Change

Net income per share attributable to A&F May 4, 2024 April 29, 2023 $ Change

GAAP $ 2.14 $ 0.32 $ 1.82

5 unchanged sentences

(1) The estimated basis point change has been rounded based on the change in the percentage of net sales.

(2) Excluded items for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022 consisted of pre-tax store asset impairment charges, and pre-tax store asset and other asset impairment charges, respectively and the tax effect of pre-tax excluded items.

(2) Excluded items for the thirteen weeks ended April 29, 2023 consisted of pre-tax store asset impairment charges and the tax effect of pre-tax excluded items.

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

EBITDA and adjusted EBITDA

The company provides EBITDA and Adjusted EBITDA as supplemental measures used by the Company's executive management to assess the Company's performance.

We also believe these supplemental performance measures are meaningful information for investors and other interested parties to use in computing the Company's core financial performance over multiple periods and with other companies by excluding the impact of differences in tax jurisdictions, debt service levels and capital investment.

Reconciliations of non-GAAP EBITDA and adjusted EBITDA to financial measures calculated and presented in accordance with GAAP for the thirteen weeks ended May 4, 2024 and April 29, 2023 were as follows:

Thirteen Weeks Ended

May 4, 2024 % of

Net Sales April 29, 2023 % of

Net income $ 115,078 11.3 % $ 17,847 2.1 %

Income tax expense 19,794 1.9 12,718 1.5

Interest (income) expense, net (5,023) (0.5) 3,443 0.4

Depreciation and amortization 37,689 3.7 36,028 4.4

$ 167,538 16.4 % $ 70,036 8.4 %

Adjustments to EBITDA

Asset impairment (1)

— — 4,436 0.5

Adjusted EBITDA (1)

$ 167,538 16.4 % $ 74,472 8.9 %

(1) EBITDA and Adjusted EBITDA are supplemental financial measures that are not defined or prepared in accordance with GAAP.

EBITDA is defined as net income before interest, income taxes and depreciation and amortization.

Adjusted EBITDA is EBITDA adjusted for asset impairment.

Abercrombie & Fitch Co.

2024 1Q Form 10-Q

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 2. Management’s Discussion and Analysis