What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-09-05 compared with 2025-06-06 · 253 added, 118 removed, 543 unchanged (41% of the section changed)

3 unchanged sentences

(Thousands, except per share amounts)

Thirteen Weeks Ended

May 3, 2025 May 4, 2024

Thirteen Weeks Ended Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

Net sales $ 1,208,560 $ 1,133,974 $ 2,305,871 $ 2,154,704

2 unchanged sentences

General and administrative expense 175,325 178,147 350,250 367,695

Other operating loss (income), net 3,783 ( 1,958 )

Other operating (income) loss, net ( 369 ) ( 67 ) 3,414 ( 2,025 )

Operating income 206,658 175,625 308,191 305,474

13 unchanged sentences

Diluted 48,551 53,279 49,592 53,277

Other comprehensive loss

Other comprehensive income

Foreign currency translation adjustments, net of tax $ 2,153 $ 3,441 $ 12,815 $ 1,604

Derivative financial instruments, net of tax 1,048 ( 1,150 ) ( 11,492 ) ( 627 )

Other comprehensive loss ( 1,878 ) ( 1,314 )

Other comprehensive income 3,201 2,291 1,323 977

Comprehensive income 146,589 137,670 226,450 251,434

7 unchanged sentences

(Thousands, except par value amounts)

May 3, 2025 February 1, 2025

August 2, 2025 February 1, 2025

Current assets:

29 unchanged sentences

Treasury stock, at average cost:

55,657 and 53,565 shares as of May 3, 2025 and February 1, 2025, respectively

56,233 and 53,565 shares as of August 2, 2025 and February 1, 2025, respectively

( 2,389,866 ) ( 2,145,890 )

10 unchanged sentences

(Thousands, except per share amounts)

Thirteen Weeks Ended May 3, 2025

Thirteen Weeks Ended August 2, 2025

Common Stock Paid-in

4 unchanged sentences

value Shares At average

Balance, May 3, 2025 47,643 $ 1,033 $ 396,750 $ 13,468 $ 3,272,657 $ ( 141,029 ) 55,657 $ ( 2,340,285 ) $ 1,202,594

Net income — — — 2,005 141,383 — — — 143,388

Purchase of Common Stock (1)

( 599 ) — — — — — 599 ( 50,480 ) ( 50,480 )

Share-based compensation issuances and exercises 23 — ( 1,660 ) — ( 7 ) — ( 23 ) 899 ( 768 )

Share-based compensation expense — — 9,793 — — — — — 9,793

Derivative financial instruments, net of tax — — — — — 1,048 — — 1,048

Foreign currency translation adjustments, net of tax — — — — — 2,153 — — 2,153

Distribution to noncontrolling interests, net

— — — ( 524 ) — — — — ( 524 )

Ending balance at August 2, 2025 47,067 $ 1,033 $ 404,883 $ 14,949 $ 3,414,033 $ ( 137,828 ) 56,233 $ ( 2,389,866 ) $ 1,307,204

Thirteen Weeks Ended August 3, 2024

Common Stock Paid-in

capital Non-controlling interests Retained

earnings AOCL Treasury stock Total

stockholders’

outstanding Par

value Shares At average

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

Net income — — — 2,211 133,168 — — — 135,379

Purchase of Common Stock ( 84 ) — — — — — 84 ( 15,000 ) ( 15,000 )

Share-based compensation issuances and exercises 51 — ( 1,747 ) — ( 581 ) — ( 51 ) 276 ( 2,052 )

Share-based compensation expense — — 9,233 — — — — — 9,233

Derivative financial instruments, net of tax — — — — — ( 1,150 ) — — ( 1,150 )

Foreign currency translation adjustments, net of tax — — — — — 3,441 — — 3,441

Contribution to noncontrolling interests, net

— — — 129 — — — — 129

Ending balance at August 3, 2024 51,069 $ 1,033 $ 408,293 $ 14,624 $ 2,877,969 $ ( 134,991 ) 52,231 $ ( 1,945,778 ) $ 1,221,150

(1) Includes commissions and excise tax on share repurchases

Abercrombie & Fitch Co.

2025 2Q Form 10-Q

Abercrombie & Fitch Co.

Condensed Consolidated Statements of Stockholders’ Equity

(Thousands, except per share amounts)

Twenty-Six Weeks Ended August 2, 2025

Common Stock Paid-in

capital Non-controlling interests Retained

earnings AOCL Treasury stock Total

stockholders’

outstanding Par

value Shares At average

Balance, February 1, 2025 49,735 $ 1,033 $ 422,912 $ 15,695 $ 3,196,724 $ ( 139,151 ) 53,565 $ ( 2,145,890 ) $ 1,351,323

8 unchanged sentences

— — — ( 4,077 ) — — — — ( 4,077 )

Ending balance at May 3, 2025 47,643 $ 1,033 $ 396,750 $ 13,468 $ 3,272,657 $ ( 141,029 ) 55,657 $ ( 2,340,285 ) $ 1,202,594

Thirteen Weeks Ended May 4, 2024

Ending balance at August 2, 2025 47,067 $ 1,033 $ 404,883 $ 14,949 $ 3,414,033 $ ( 137,828 ) 56,233 $ ( 2,389,866 ) $ 1,307,204

Twenty-Six Weeks Ended August 3, 2024

Common Stock Paid-in

13 unchanged sentences

— — — ( 3,642 ) — — — — ( 3,642 )

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

Ending balance at August 3, 2024 51,069 $ 1,033 $ 408,293 $ 14,624 $ 2,877,969 $ ( 134,991 ) 52,231 $ ( 1,945,778 ) $ 1,221,150

(1) Includes commissions and excise tax on share repurchases

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

Abercrombie & Fitch Co.

2 unchanged sentences

Condensed Consolidated Statements of Cash Flows

Thirteen Weeks Ended

May 3, 2025 May 4, 2024

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Operating activities

Net income $ 225,127 $ 250,457

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

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 76,000 77,044

2 unchanged sentences

Loss on disposal 1,380 2,170

Provision for deferred income taxes 9,549 3,064

Provision for (benefit from) deferred income taxes 19,675 ( 4,882 )

Share-based compensation 20,384 20,596

7 unchanged sentences

Other liabilities ( 5,008 ) 470

Net cash (used for) provided by operating activities ( 4,000 ) 95,010

Net cash provided by operating activities 112,893 260,119

Investing activities

Purchases of marketable securities

Proceeds from maturities of marketable securities

3 unchanged sentences

Repayment/redemption of senior secured notes

— ( 223,331 )

Payment of debt modification costs and fees — ( 2,716 )

Purchases of Common Stock ( 251,223 ) ( 30,000 )

15 unchanged sentences

Cash paid for income taxes 104,766 108,086

Cash paid for excise tax on share repurchases

Cash received from income tax refunds 566 10

8 unchanged sentences

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INTERCHANGE FEE SETTLEMENT

REVENUE RECOGNITION

18 unchanged sentences

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.

The Company’s brands include Abercrombie brands and Hollister brands.

The Company’s brand families include Abercrombie brands and Hollister brands.

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

16 unchanged sentences

Interim financial statements

The Condensed Consolidated Financial Statements as of May 3, 2025, and for the thirteen week periods ended May 3, 2025 and May 4, 2024, are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim consolidated financial statements.

The Condensed Consolidated Financial Statements as of August 2, 2025, and for the thirteen and twenty-six week periods ended August 2, 2025 and August 3, 2024, 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 2024 filed with the SEC on March 31, 2025 (the “Fiscal 2024 Form 10-K”).

29 unchanged sentences

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

(in thousands) Location May 3, 2025 February 1, 2025 May 4, 2024 February 3, 2024

(in thousands) Location August 2, 2025 February 1, 2025 August 3, 2024 February 3, 2024

Cash and equivalents Cash and equivalents $ 572,730 $ 772,727 $ 738,402 $ 900,884

11 unchanged sentences

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 3, 2025 and February 1, 2025, $ 43.8 million and $ 88.4 million of SCF program liabilities were recorded in accounts payable in the Condensed Consolidated Balance Sheets, respectively.

As of August 2, 2025 and February 1, 2025, $ 78.2 million and $ 88.4 million of SCF program liabilities were recorded in accounts payable in the Condensed Consolidated Balance Sheets, respectively.

Amounts are reflected as cash used for operating activities in the Condensed Consolidated Statements of Cash Flows when settled.

INTERCHANGE FEE SETTLEMENT

Litigation settlement

During the second quarter of Fiscal 2025 , the Company entered into a settlement related to the resolution of a payment card interchange fee litigation in which it was a plaintiff.

The settlement resulted in a $ 39 million net benefit recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income.

The net benefit is comprised of a $ 43 million settlement benefit recorded within selling expense and a $ 4 million settlement-related expense recorded within general and administrative expense.

REVENUE RECOGNITION

3 unchanged sentences

Contract liabilities

The following table details certain contract liabilities representing unearned revenue as of May 3, 2025, February 1, 2025, May 4, 2024 and February 3, 2024:

(in thousands) May 3, 2025 February 1, 2025 May 4, 2024 February 3, 2024

The following table details certain contract liabilities representing unearned revenue as of August 2, 2025, February 1, 2025, August 3, 2024 and February 3, 2024:

(in thousands) August 2, 2025 February 1, 2025 August 3, 2024 February 3, 2024

Gift card liability (1)

1 unchanged sentence

Loyalty programs liability 34,695 32,199 29,535 27,937

(1) Includes $ 9.6 million and $ 9.9 million of revenue recognized during the thirteen weeks ended May 3, 2025 and May 4, 2024, respectively, that was included in the gift card liability at the beginning of February 1, 2025 and February 3, 2024, respectively.

The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for the thirteen weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

(1) Includes $ 18.0 million and $ 14.8 million of revenue recognized during the twenty-six weeks ended August 2, 2025 and August 3, 2024, respectively, that was included in the gift card liability at the beginning of February 1, 2025 and February 3, 2024, respectively.

The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

Revenue associated with gift card redemptions and gift card breakage $ 28,743 $ 32,831 $ 59,643 $ 63,492

4 unchanged sentences

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 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

The following table provides additional information pertaining to net income per share attributable to A&F for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

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

4 unchanged sentences

Anti-dilutive shares (1)

604 204 563 237

(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.

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 and are reflected at the maximum vesting amount less any dilutive portion.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

5 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 May 3, 2025 and February 1, 2025:

Assets and Liabilities at Fair Value as of May 3, 2025

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 August 2, 2025 and February 1, 2025:

Assets and Liabilities at Fair Value as of August 2, 2025

(in thousands) Level 1 Level 2 Level 3 Total

36 unchanged sentences

PROPERTY AND EQUIPMENT, NET

The following table provides property and equipment, net as of May 3, 2025 and February 1, 2025:

(in thousands) May 3, 2025 February 1, 2025

The following table provides property and equipment, net as of August 2, 2025 and February 1, 2025:

(in thousands) August 2, 2025 February 1, 2025

Property and equipment, at cost $ 2,743,388 $ 2,605,871

1 unchanged sentence

Property and equipment, net $ 638,590 $ 575,773

R efer to Note 8, “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during the thirteen ended May 3, 2025 and May 4, 2024.

Refer to Note 9, “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024.

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

The following table provides a summary of the Company’s operating lease costs for the thirteen weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

The following table provides a summary of the Company’s operating lease costs for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

Single lease cost (1)

3 unchanged sentences

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

623 472 1,072 811

Sublease income

4 unchanged sentences

(3) Refer to Note 9, “ ASSET IMPAIRMENT ,” for details related to operating lease right-of-use asset impairment charges.

The Company had minimum commitments related to operating lease contracts that have not yet commenced, primarily for certain Company-operated retail stores, of approximately $ 133.0 million as of May 3, 2025.

Abercrombie & Fitch Co.

2025 2Q Form 10-Q

ASSET IMPAIRMENT

The following table provides asset impairment charges for the thirteen weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

The following table provides asset impairment charges for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

Operating lease right-of-use asset impairment $ 623 $ 471 $ 1,072 $ 810

Property and equipment asset impairment 1,228 230 1,458 757

Intangible asset impairment

Total asset impairment $ 2,773 $ 701 $ 3,452 $ 1,567

Asset impairment charges for the thirteen weeks ended May 3, 2025 and May 4, 2024 related to certain of the Company’s store assets, primarily in the APAC segment.

The store impairment charges for the thirteen weeks ended May 3, 2025 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 2.6 million, including $ 1.7 million related to operating lease right-of-use assets.

Abercrombie & Fitch Co.

2025 1Q Form 10-Q

Asset impairment charges for the twenty-six weeks ended August 2, 2025 and August 3, 2024 related to certain of the Company’s store assets, primarily in the EMEA and APAC segments.

The store impairment charges for the twenty-six weeks ended August 2, 2025 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 7.4 million, including $ 5.9 million related to operating lease right-of-use assets.

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

3 unchanged sentences

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

One Big Beautiful Bill Act

On July 4, 2025, House Resolution 1, also known as the One Big Beautiful Bill Act (“OBBBA”), was signed into law.

The OBBBA includes, among other provisions, changes to U.S.

corporate income tax law impacting the taxation of domestic and international business operations, including permanently extending certain expiring provisions of the Tax Cuts and Jobs Act, restoration of accelerated depreciation on capital expenditures, deductible research and experimental expenditures, and modifications to the international tax framework.

The enactment of the OBBBA did not have a material impact on the consolidated financial statements and disclosures.

Impact of valuation allowances

During the thirteen weeks ended May 3, 2025, the Company did not recognize income tax benefits on $ 10.0 million of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 1.5 million.

As of May 3, 2025, the Company had foreign net deferred tax assets of approximately $ 41.0 million, including $ 9.0 million, $ 5.7 million, and $ 15.8 million in China, Japan and the United Kingdom, respectively.

During the thirteen and twenty-six weeks ended August 2, 2025, the Company did not recognize income tax benefits on $ 21.8 million and $ 31.8 million, respectively, of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 3.4 million and $ 4.9 million, respectively.

During the thirteen and twenty-six weeks ended August 2, 2025, the Company recorded income tax expense of $5.6 million for the establishment of an additional valuation allowance against the remaining net deferred tax assets in Japan.

As of August 2, 2025, the Company had foreign net deferred tax assets of approximately $ 38.3 million, including $ 10.1 million, and $ 15.7 million in China, 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 situations as they emerge.

1 unchanged sentence

Additional valuation allowances would result in additional tax expense.

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.

During the thirteen and twenty-six weeks ended August 3, 2024, the Company did not recognize income tax benefits on $ 7.0 million and $ 14.6 million, respectively, of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 1.1 million and $ 2.2 million, respectively.

As of February 1, 2025, there were approximately $ 8.2 million, $ 5.4 million, and $ 13.4 million of net deferred tax assets in China, Japan, and the United Kingdom, respectively.

Share-based compensation

Refer to Note 11, “ SHARE-BASED COMPENSATION ,” for details on income tax benefits and charges related to share-based compensation awards during the thirteen weeks ended May 3, 2025 and May 4, 2024.

Refer to Note 12, “ SHARE-BASED COMPENSATION ,” for details on income tax benefits and charges related to share-based compensation awards during the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024.

Abercrombie & Fitch Co.

2025 2Q Form 10-Q

The Amended and Restated Credit Agreement, as amended, of Abercrombie & Fitch Management Co.

2 unchanged sentences

Financial Statements and Supplementary Data” of the Fiscal 2024 Form 10-K.

The Company did not have any borrowings outstanding under the ABL Facility as of May 3, 2025 or as of February 1, 2025.

As of May 3, 2025, availability under the ABL Facility was $ 476.9 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 $36 million under the ABL Facility, borrowing capacity available to the Company under the ABL Facility was $ 429.2 million as of May 3, 2025.

The Company did not have any borrowings outstanding under the ABL Facility as of August 2, 2025 or as of February 1, 2025.

As of August 2, 2025, availability under the ABL Facility was $ 499.5 million, net of $ 0.5 million in outstanding stand-by letters of credit.

Representations, warranties and covenants

The agreements related to the ABL Facility contain various representations, warranties and restrictive covenants that, among other things and subject to specified exceptions, restrict the ability of the Company and its subsidiaries to:

grant or incur liens;

6 unchanged sentences

Certain of the agreements related to 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 May 3, 2025.

Abercrombie & Fitch Co.

2025 1Q Form 10-Q

The Company was in compliance with all debt covenants under these agreements as of August 2, 2025.

SHARE-BASED COMPENSATION

Financial statement impact

The following table provides share-based compensation expense and the related income tax impacts for the thirteen weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

The following table provides share-based compensation expense and the related income tax impacts for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

Share-based compensation expense $ 9,793 $ 9,233 $ 20,384 $ 20,596

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 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

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

1,487 1,240 2,885 2,518

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

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

The following table provides discrete income tax benefits and charges related to share-based compensation awards during the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

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

$ 247 $ 2,778 $ 4,838 $ 17,332

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 weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

Employee tax withheld upon issuance of shares (1)

1 unchanged sentence

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

Abercrombie & Fitch Co.

2025 2Q Form 10-Q

Restricted stock units

The following table provides the summarized activity for restricted stock units for the thirteen weeks ended May 3, 2025:

The following table provides the summarized activity for restricted stock units for the twenty-six weeks ended August 2, 2025:

Service-based Restricted

16 unchanged sentences

Forfeited ( 34,962 ) 56.93 ( 2,956 ) 89.06 ( 1,478 ) 109.36

Unvested at May 3, 2025 (1)

Unvested at August 2, 2025 (1)

1,039,791 $ 63.00 342,566 $ 56.31 171,304 $ 74.95

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 May 3, 2025:

Service-based Restricted

4 unchanged sentences

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

Abercrombie & Fitch Co.

2025 1Q Form 10-Q

The following table provides additional information pertaining to restricted stock units for the thirteen weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

The following table provides additional information pertaining to restricted stock units for the twenty-six weeks ended August 2, 2025 and August 3, 2024:

Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024

Service-based restricted stock units:

7 unchanged sentences

Total grant date fair value of awards vested 7,214 7,574

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 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

May 3, 2025 May 4, 2024

The following table provides the weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the twenty-six weeks ended August 2, 2025 and August 3, 2024:

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Grant date market price $ 78.69 $ 120.56

22 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 May 3, 2025, 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 August 2, 2025, 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 May 3, 2025.

dollar notional amounts outstanding as of August 2, 2025.

As of August 2, 2025, the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge foreign-currency-denominated net monetary assets and liabilities:

(in thousands) Notional Amount (1)

(1) Amounts reported are the U.S.

Dollar notional amounts outstanding as of August 2, 2025.

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 May 3, 2025 and February 1, 2025:

(in thousands) Location May 3, 2025 February 1, 2025 Location May 3, 2025 February 1, 2025

(in thousands) Location August 2, 2025 February 1, 2025 Location August 2, 2025 February 1, 2025

Derivatives designated as cash flow hedging instruments Other current assets

4 unchanged sentences

$ 714 $ 4,315 $ 7,110 $ —

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 weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

(Loss) gain recognized in AOCL (1)

$ ( 1,239 ) $ ( 587 ) $ ( 12,575 ) $ 442

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

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

( 2,328 ) 527 ( 728 ) 1,010

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

(2) 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 (Loss) when the hedged item affects earnings, which is when merchandise is converted to cost of sales, exclusive of depreciation and amortization.

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

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

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 weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

Gain recognized in other operating loss (income), net

$ 366 $ 1,868

Abercrombie & Fitch Co.

2025 2Q Form 10-Q

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

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

$ 318 $ ( 219 ) $ 684 $ 443

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables provide activity in AOCL for the thirteen weeks ended May 3, 2025:

Thirteen Weeks Ended May 3, 2025

The following tables provide activity in AOCL for the thirteen and twenty-six weeks ended August 2, 2025:

Thirteen Weeks Ended August 2, 2025

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

Beginning balance at May 3, 2025 $ ( 133,221 ) $ ( 7,808 ) $ ( 141,029 )

Other comprehensive income (loss) before reclassifications 2,153 ( 1,239 ) 914

Reclassified loss from AOCL (1)

— 2,328 2,328

Tax effect — ( 41 ) ( 41 )

Other comprehensive income after reclassifications 2,153 1,048 3,201

Ending balance at August 2, 2025 $ ( 131,068 ) $ ( 6,760 ) $ ( 137,828 )

Twenty-Six Weeks Ended August 2, 2025

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

Beginning balance at February 1, 2025 $ ( 143,883 ) $ 4,732 $ ( 139,151 )

Other comprehensive income (loss) before reclassifications 12,815 ( 12,575 ) 240

Reclassified loss from AOCL (1)

Tax effect — 355 355

Other comprehensive income (loss) after reclassifications 12,815 ( 11,492 ) 1,323

Ending balance at August 2, 2025 $ ( 131,068 ) $ ( 6,760 ) $ ( 137,828 )

(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.

The following tables provide activity in AOCL for the thirteen and twenty-six weeks ended August 3, 2024:

Thirteen Weeks Ended August 3, 2024

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

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

Other comprehensive income (loss) before reclassifications 3,441 ( 587 ) 2,854

Reclassified gain from AOCL (1)

2 unchanged sentences

Other comprehensive income (loss) after reclassifications 3,441 ( 1,150 ) 2,291

Ending balance at May 3, 2025 $ ( 133,221 ) $ ( 7,808 ) $ ( 141,029 )

(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 May 4, 2024:

Thirteen Weeks Ended May 4, 2024

Ending balance at August 3, 2024 $ ( 134,928 ) $ ( 63 ) $ ( 134,991 )

Twenty-Six Weeks Ended August 3, 2024

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

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

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

Other comprehensive income before reclassifications 1,604 442 2,046

Reclassified gain from AOCL (1)

1 unchanged sentence

Tax effect — ( 59 ) ( 59 )

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

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

Other comprehensive income (loss) after reclassifications 1,604 ( 627 ) 977

Ending balance at August 3, 2024 $ ( 134,928 ) $ ( 63 ) $ ( 134,991 )

(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.

Abercrombie & Fitch Co.

2025 2Q Form 10-Q

SEGMENT REPORTING

15 unchanged sentences

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.

Abercrombie & Fitch Co.

2025 1Q Form 10-Q

The following tables provide the Company’s segment information as of May 3, 2025, February 1, 2025 and May 4, 2024, and for the thirteen weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended May 3, 2025

The following tables provide the Company’s segment information as of August 2, 2025, February 1, 2025 and August 3, 2024, and for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024:

Thirteen Weeks Ended August 2, 2025

(in thousands)

20 unchanged sentences

Total capital expenditures $ 66,179

Thirteen Weeks Ended May 4, 2024

Abercrombie & Fitch Co.

2025 2Q Form 10-Q

Thirteen Weeks Ended August 3, 2024

(in thousands) Americas (1)

22 unchanged sentences

Net sales in the U.S.

were $ 0.8 billion, and $ 0.8 billion for the thirteen weeks ended May 3, 2025 and May 4, 2024, respectively.

were $ 0.9 billion and $ 0.9 billion for the thirteen weeks ended August 2, 2025 and August 3, 2024, respectively.

(2) Included in selling expense on the Condensed Consolidated Statements of Operations and Comprehensive Income.

1 unchanged sentence

(4) Corporate and other unallocated expenses represent corporate overhead expenses that have not been allocated to any segment.

Twenty-Six Weeks Ended August 2, 2025

(in thousands)

EMEA APAC Total

Net sales $ 1,849,004 $ 382,246 $ 74,621 $ 2,305,871

Cost of sales, exclusive of depreciation and amortization 690,492 150,998 27,233 868,723

Store occupancy (2)

175,056 59,080 22,607 256,743

Fulfillment (2)

153,754 46,343 9,834 209,931

Other expense (3)

282,913 85,261 25,324 393,498

Segment income (loss) $ 546,789 $ 40,564 $ ( 10,377 ) $ 576,976

Operating loss not attributed to segments:

Corporate and other unallocated expenses (4)

Operating income $ 308,191

Interest income, net

Income before income taxes

Depreciation and amortization $ 43,259 $ 11,508 $ 3,867 $ 58,634

Depreciation and amortization not attributed to segments 17,366

Total depreciation and amortization $ 76,000

Capital expenditures $ 71,996 $ 16,906 $ 8,861 $ 97,763

Capital expenditures not attributed to segments 19,180

Total capital expenditures $ 116,943

Abercrombie & Fitch Co.

2025 2Q Form 10-Q

(in thousands) May 3, 2025 February 1, 2025 May 4, 2024

Twenty-Six Weeks Ended August 3, 2024

(in thousands) Americas (1)

EMEA APAC Total

Net sales $ 1,721,345 $ 364,460 $ 68,899 $ 2,154,704

Cost of sales, exclusive of depreciation and amortization 587,790 129,676 23,519 740,985

Store occupancy (2)

160,729 55,595 15,459 231,783

Fulfillment (2)

163,812 37,358 8,009 209,179

Other expense (3)

281,547 79,290 25,479 386,316

Segment income (loss) $ 527,467 $ 62,541 $ ( 3,567 ) $ 586,441

Operating loss not attributed to segments:

Corporate and other unallocated expenses (4)

Operating income $ 305,474

Interest income, net

Income before income taxes

Depreciation and amortization $ 41,077 $ 13,418 $ 3,936 $ 58,431

Depreciation and amortization not attributed to segments 18,613

Total depreciation and amortization $ 77,044

Capital expenditures $ 45,421 $ 5,892 $ 5,144 $ 56,457

Capital expenditures not attributed to segments 25,192

Total capital expenditures $ 81,649

(1) Includes the U.S., Canada, and Latin America.

Net sales in the U.S.

were $1.8 billion and $1.6 billion for the twenty-six weeks ended August 2, 2025 and August 3, 2024, respectively.

(2) Included in selling expense on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(3) Other expense includes store payroll, other direct store controllable and marketing expenses included in selling expense, as well as allocated and support related expenses included in general and administrative expense on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(4) Corporate and other unallocated expenses represent corporate overhead expenses that have not been allocated to any segment.

(in thousands) August 2, 2025 February 1, 2025 August 3, 2024

Americas $ 482,533 $ 463,148 $ 438,076

5 unchanged sentences

Total assets $ 3,301,941 $ 3,299,887 $ 3,049,558

The Company’s long-lived assets and intellectual property, which primarily relates to trademark assets associated with the Company’s global operations, by geographic area as of May 3, 2025, February 1, 2025 and May 4, 2024 were as follows:

(in thousands) May 3, 2025 February 1, 2025 May 4, 2024

The Company’s long-lived assets and intellectual property, which primarily relates to trademark assets associated with the Company’s global operations, by geographic area as of August 2, 2025, February 1, 2025 and August 3, 2024 were as follows:

(in thousands) August 2, 2025 February 1, 2025 August 3, 2024

Americas (1) (2)

5 unchanged sentences

Long-lived assets and intellectual property located in the U.S.

were $ 1.0 billion, $ 965 million, and $ 922 million as of May 3, 2025 , February 1, 2025 and May 4, 2024, respectively.

(2) Includes intellectual property of $ 2.9 million, $ 2.9 million, and $ 2.9 million as of May 3, 2025, February 1, 2025 and May 4, 2024, respectively.

(3) Includes intellectual property of $ 16.4 million, $ 16.6 million, and $ 17.2 million as of May 3, 2025, February 1, 2025 and May 4, 2024, respectively.

were $ 1.1 billion, $ 965 million, and $ 971 million as of August 2, 2025, February 1, 2025 and August 3, 2024, respectively.

(2) Includes intellectual property of $ 2.9 million, $ 2.9 million, and $ 2.9 million as of August 2, 2025, February 1, 2025, and August 3, 2024, respectively.

(3) Includes intellectual property of $ 15.2 million, $ 16.6 million, and $ 17.0 million as of August 2, 2025, February 1, 2025, and August 3, 2024, respectively.

Brand Information

The following table provides additional disaggregated revenue information, which is categorized by brand, for the thirteen weeks ended May 3, 2025 and May 4, 2024:

Thirteen Weeks Ended

(in thousands) May 3, 2025 May 4, 2024

The following table provides additional disaggregated revenue information, which is categorized by brand, for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024:

Thirteen Weeks Ended Twenty-Six Weeks Ended

(in thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024

$ 551,868 $ 582,416 $ 1,099,815 $ 1,153,929

4 unchanged sentences

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