ABERCROMBIE & FITCH CO /DE/ 10-Q

Item 1. Financial Statements (Unaudited) Abercrombie & Fitch Co. Condensed Consolidated Statements of Operations and Comprehensive Income (Thousands, except per share amounts) (Unaudited) 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 Cost of sales, exclusive of depreciation and amortization 451,590 397,712 868,723 740,985 Selling expense 375,356 382,557 775,293 742,575 General and administrative expense 175,325 178,147 350,250 367,695 Other operating (income) loss, net ( 369 ) ( 67 ) 3,414 ( 2,025 ) Operating income 206,658 175,625 308,191 305,474 Interest expense 620 5,189 1,281 10,969 Interest income ( 3,094 ) ( 10,392 ) ( 10,538 ) ( 21,195 ) Interest income, net ( 2,474 ) ( 5,203 ) ( 9,257 ) ( 10,226 ) Income before income taxes 209,132 180,828 317,448 315,700 Income tax expense 65,744 45,449 92,321 65,243 Net income 143,388 135,379 225,127 250,457 Less: Net income attributable to noncontrolling interests 2,005 2,211 3,331 3,439 Net income attributable to A&F $ 141,383 $ 133,168 $ 221,796 $ 247,018 Net income per share attributable to A&F Basic $ 2.97 $ 2.60 $ 4.58 $ 4.84 Diluted $ 2.91 $ 2.50 $ 4.47 $ 4.64 Weighted-average shares outstanding Basic 47,550 51,246 48,382 51,069 Diluted 48,551 53,279 49,592 53,277 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 income 3,201 2,291 1,323 977 Comprehensive income 146,589 137,670 226,450 251,434 Less: Comprehensive income attributable to noncontrolling interests 2,005 2,211 3,331 3,439 Comprehensive income attributable to A&F $ 144,584 $ 135,459 $ 223,119 $ 247,995 The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Abercrombie & Fitch Co. 3 2025 2Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Condensed Consolidated Balance Sheets (Thousands, except par value amounts) (Unaudited) August 2, 2025 February 1, 2025 Assets Current assets: Cash and equivalents $ 572,730 $ 772,727 Marketable securities 30,795 116,221 Receivables 174,000 105,324 Inventories 592,966 575,005 Other current assets 118,624 104,154 Total current assets 1,489,115 1,673,431 Property and equipment, net 638,590 575,773 Operating lease right-of-use assets 933,559 803,121 Other assets 240,677 247,562 Total assets $ 3,301,941 $ 3,299,887 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 368,051 $ 364,532 Accrued expenses 429,616 504,922 Short-term portion of operating lease liabilities 223,020 211,600 Income taxes payable 17,354 45,890 Total current liabilities 1,038,041 1,126,944 Long-term liabilities: Long-term portion of operating lease liabilities 876,461 740,013 Other liabilities 80,235 81,607 Total long-term liabilities 956,696 821,620 Stockholders’ equity Class A Common Stock: $ 0.01 par value: 150,000 shares authorized and 103,300 shares issued for all periods presented 1,033 1,033 Paid-in capital 404,883 422,912 Retained earnings 3,414,033 3,196,724 Accumulated other comprehensive loss, net of tax (“AOCL”) ( 137,828 ) ( 139,151 ) Treasury stock, at average cost: 56,233 and 53,565 shares as of August 2, 2025 and February 1, 2025, respectively ( 2,389,866 ) ( 2,145,890 ) Total Abercrombie & Fitch Co. stockholders’ equity 1,292,255 1,335,628 Noncontrolling interests 14,949 15,695 Total stockholders’ equity 1,307,204 1,351,323 Total liabilities and stockholders’ equity $ 3,301,941 $ 3,299,887 The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Abercrombie & Fitch Co. 4 2025 2Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Condensed Consolidated Statements of Stockholders’ Equity (Thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended August 2, 2025 Common Stock Paid-in capital Non-controlling interests Retained earnings AOCL Treasury stock Total stockholders’ equity Shares outstanding Par value Shares At average cost 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’ equity Shares outstanding Par value Shares At average cost 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. 5 2025 2Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Condensed Consolidated Statements of Stockholders’ Equity (Thousands, except per share amounts) (Unaudited) Twenty-Six Weeks Ended August 2, 2025 Common Stock Paid-in capital Non-controlling interests Retained earnings AOCL Treasury stock Total stockholders’ equity Shares outstanding Par value Shares At average cost 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 Net income — — — 3,331 221,796 — — — 225,127 Purchase of Common Stock (1) ( 3,248 ) — — — — — 3,248 ( 252,046 ) ( 252,046 ) Share-based compensation issuances and exercises 580 — ( 38,413 ) — ( 4,487 ) — ( 580 ) 8,070 ( 34,830 ) Share-based compensation expense — — 20,384 — — — — — 20,384 Derivative financial instruments, net of tax — — — — — ( 11,492 ) — — ( 11,492 ) Foreign currency translation adjustments, net of tax — — — — — 12,815 — — 12,815 Distribution to noncontrolling interests, net — — — ( 4,077 ) — — — — ( 4,077 ) 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 capital Non-controlling interests Retained earnings AOCL Treasury stock Total stockholders’ equity Shares outstanding Par value Shares At average cost Balance, February 3, 2024 50,500 $ 1,033 $ 421,609 $ 14,827 $ 2,643,629 $ ( 135,968 ) 52,800 $ ( 1,895,143 ) $ 1,049,987 Net income — — — 3,439 247,018 — — — 250,457 Purchase of Common Stock ( 203 ) — — — — — 203 ( 30,000 ) ( 30,000 ) Share-based compensation issuances and exercises 772 — ( 33,912 ) — ( 12,678 ) — ( 772 ) ( 20,635 ) ( 67,225 ) Share-based compensation expense — — 20,596 — — — — — 20,596 Derivative financial instruments, net of tax — — — — — ( 627 ) — — ( 627 ) Foreign currency translation adjustments, net of tax — — — — — 1,604 — — 1,604 Distribution to noncontrolling interests, net — — — ( 3,642 ) — — — — ( 3,642 ) 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. 6 2025 2Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Condensed Consolidated Statements of Cash Flows (Thousands) (Unaudited) 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 provided by operating activities: Depreciation and amortization 76,000 77,044 Amortization of capitalized cloud computing arrangement implementation costs 9,660 8,040 Asset impairment 3,452 1,567 Loss on disposal 1,380 2,170 Provision for (benefit from) deferred income taxes 19,675 ( 4,882 ) Share-based compensation 20,384 20,596 Loss on extinguishment of debt — 1,114 Changes in assets and liabilities: Inventories ( 15,164 ) ( 70,053 ) Accounts payable and accrued expenses ( 102,681 ) 86,000 Operating lease right-of-use assets and liabilities 12,210 ( 5,147 ) Income taxes ( 28,536 ) ( 36,157 ) Other assets ( 103,606 ) ( 71,100 ) Other liabilities ( 5,008 ) 470 Net cash provided by operating activities 112,893 260,119 Investing activities Purchases of marketable securities — ( 15,000 ) Proceeds from maturities of marketable securities 85,000 — Purchases of property and equipment ( 116,943 ) ( 81,649 ) Net cash used for investing activities ( 31,943 ) ( 96,649 ) Financing activities 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 ) Acquisition of Common Stock for tax withholding obligations ( 34,830 ) ( 67,225 ) Other financing activities ( 4,660 ) ( 3,689 ) Net cash used for financing activities ( 290,713 ) ( 326,961 ) Effect of foreign currency exchange rates on cash 9,700 101 Net decrease in cash and equivalents, and restricted cash and equivalents ( 200,063 ) ( 163,390 ) Cash and equivalents, and restricted cash and equivalents, beginning of period 780,395 909,685 Cash and equivalents, and restricted cash and equivalents, end of period $ 580,332 $ 746,295 Supplemental information related to non-cash activities Purchases of property and equipment accrued in accounts payable $ 67,376 $ 46,909 Excise tax liability accrued on share repurchases 2,047 — Operating lease right-of-use assets additions, net of terminations, impairments and other reductions 248,528 174,597 Supplemental information related to cash activities Cash paid for interest — 9,527 Cash paid for income taxes 104,766 108,086 Cash paid for excise tax on share repurchases 1,224 — Cash received from income tax refunds 566 10 Cash paid for amounts included in measurement of operating lease liabilities 150,292 133,673 The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Abercrombie & Fitch Co. 7 2025 2Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Index for Notes to Condensed Consolidated Financial Statements (Unaudited) Page No. Note 1. NATURE OF BUSINESS 9 Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 9 Note 3. INTERCHANGE FEE SETTLEMENT 11 Note 4. REVENUE RECOGNITION 11 Note 5. NET INCOME (LOSS) PER SHARE 12 Note 6. FAIR VALUE 12 Note 7. PROPERTY AND EQUIPMENT, NET 13 Note 8. LEASES 13 Note 9. ASSET IMPAIRMENT 14 Note 10. INCOME TAXES 14 Note 11. BORROWINGS 15 Note 12. SHARE-BASED COMPENSATION 15 Note 13. DERIVATIVE INSTRUMENTS 17 Note 14. ACCUMULATED OTHER COMPREHENSIVE LOSS 18 Note 15. SEGMENT REPORTING 19 Abercrombie & Fitch Co. 8 2025 2Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Notes to Condensed Consolidated Financial Statements (Unaudited) 1. NATURE OF BUSINESS Abercrombie & Fitch Co. (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as the “Company”), is a global, digitally-led omnichannel retailer. The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily through its Company-owned stores and digital channels, as well as through various third-party arrangements. The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; 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. 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying Condensed Consolidated Financial Statements include historical financial statements of, and transactions applicable to, the Company and reflect its financial position, results of operations and cash flows. The Company has interests in Emirati and Kuwaiti business ventures with Majid al Futtaim Lifestyle L.L.C. (“MAF”), each of which meets the definition of a variable interest entity (“VIE”). The purpose of the business ventures with MAF is to operate stores in the United Arab Emirates and Kuwait. The Company is deemed to be the primary beneficiary of these VIEs; therefore, the Company has consolidated the operating results, assets and liabilities of these VIEs, with the noncontrolling interests’ (“NCI”) portions of net income presented as net income attributable to NCI on the Condensed Consolidated Statements of Operations and Comprehensive Income and the NCI portion of stockholders’ equity presented as NCI on the Condensed Consolidated Balance Sheets. Fiscal year The Company’s fiscal year ends on the Saturday closest to January 31. This typically results in a fifty-two week year, but occasionally gives rise to an additional week, resulting in a fifty-three week year. Fiscal years are designated in the Condensed Consolidated Financial Statements and notes, as well as the remainder of this Quarterly Report on Form 10-Q, by the calendar year in which the fiscal year commences. All references herein to the Company’s fiscal years are as follows: Fiscal year Year ended/ending Number of weeks Fiscal 2024 February 1, 2025 52 Fiscal 2025 January 31, 2026 52 Fiscal 2026 January 30, 2027 52 Interim 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”). The February 1, 2025 consolidated balance sheet data, included herein, were derived from audited consolidated financial statements, but do not include all disclosures required by accounting principles generally accepted in the U.S. (“GAAP”). In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments (which are of a normal recurring nature) necessary to state fairly, in all material respects, the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for Fiscal 2025. Abercrombie & Fitch Co. 9 2025 2Q Form 10-Q Table of Contents Use of estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Due to the inherent uncertainty involved with estimates, actual results may differ. Additionally, these estimates and assumptions may change as a result of the impact of global economic conditions such as the uncertainty regarding a slowing economy, volatility in interest rates, continued inflation, fluctuation in foreign exchange rates, the imposition of, and changes to, tariffs by the U.S. government and certain trading partners, and geopolitical concerns, all of which could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Recent accounting pronouncements The Company reviews recent accounting pronouncements on a quarterly basis and has excluded discussion of those not applicable to the Company and those that did not have, or are not expected to have, a material impact on the Company’s consolidated financial statements. The following table provides a brief description of certain accounting pronouncements the Company has not yet adopted and that could affect the Company’s financial statements. Accounting Standards Update (ASU) Description Effect on the financial statements or other significant matters ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures The update requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The update is effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Other than the new disclosure requirements, the adoption of this guidance will not have a significant impact on the Company’s consolidated financial statements. ASU 2024-03 - Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ASU 2025-01 - Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date The update requires a disaggregated disclosure of income statement expenses. The amendments in this update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The update is effective for fiscal years beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. Other than the new disclosure requirements, the adoption of this guidance will not have a significant impact on the Company’s consolidated financial statements. Condensed Consolidated Statements of Cash Flows reconciliation The following table provides a reconciliation of cash and equivalents and restricted cash and equivalents to the amounts shown on the Condensed Consolidated Statements of Cash Flows: (in thousands) Location 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 Restricted cash and equivalents Other assets 7,602 7,668 7,893 8,801 Cash and equivalents and restricted cash and equivalents $ 580,332 $ 780,395 $ 746,295 $ 909,685 Abercrombie & Fitch Co. 10 2025 2Q Form 10-Q Table of Contents Supply Chain Finance Program Under the supply chain finance (“SCF”) program, which is administered by a third party, the Company’s vendors, at their sole discretion, are given the opportunity to sell receivables from the Company to a participating financial institution at a discount that leverages the Company’s credit profile. The commercial terms negotiated by the Company with its vendors are consistent, irrespective of whether a vendor participates in the SCF program. A participating vendor has the option to be paid by the financial institution earlier than the original invoice due date. The Company’s responsibility is limited to making payment on the terms originally negotiated by the Company with each vendor, regardless of whether the vendor sells its receivable to a financial institution. If a vendor chooses to participate in the SCF program, the Company pays the financial institution the stated amount of confirmed merchandise invoices on the stated maturity date, which is typically 60 days from the invoice date. The agreement with the financial institution does not require the Company to provide assets pledged as security or other forms of guarantees for the SCF program. As of 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. 3. 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. 4. REVENUE RECOGNITION Disaggregation of revenue All revenues are recognized in net sales in the Condensed Consolidated Statements of Operations and Comprehensive Income. For information regarding the disaggregation of revenue, refer to Note 15, “ SEGMENT REPORTING . ” Contract liabilities 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) $ 35,363 $ 45,364 $ 39,914 $ 41,144 Loyalty programs liability 34,695 32,199 29,535 27,937 (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 Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs 17,008 14,712 32,320 28,670 Abercrombie & Fitch Co. 11 2025 2Q Form 10-Q Table of Contents 5. NET INCOME PER SHARE Net income per basic and diluted share attributable to A&F is computed based on the weighted-average number of outstanding shares of A&F’s Class A Common Stock, $0.01 par value (“Common Stock”). The following table provides additional information pertaining to net income per share attributable to A&F for the thirteen 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 Weighted-average treasury shares ( 55,750 ) ( 52,054 ) ( 54,918 ) ( 52,231 ) Weighted-average — basic shares 47,550 51,246 48,382 51,069 Dilutive effect of share-based compensation awards 1,001 2,033 1,210 2,208 Weighted-average — diluted shares 48,551 53,279 49,592 53,277 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 be achieved from zero up to 200% of their target vesting amount and are reflected at the maximum vesting amount less any dilutive portion. 6. FAIR VALUE 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. The inputs used to measure fair value are prioritized based on a three-level hierarchy. The three levels of inputs to measure fair value are as follows: • Level 1—inputs are unadjusted quoted prices for identical assets or liabilities that are available in active markets that the Company can access at the measurement date. • Level 2—inputs are other than quoted market prices included within Level 1 that are observable for assets or liabilities, directly or indirectly. • Level 3—inputs to the valuation methodology are unobservable. 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 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 Assets: Cash equivalents (1) $ 168,794 $ 14,195 $ — $ 182,989 Derivative instruments (2) — 714 — 714 Rabbi Trust assets (3) 1,164 54,669 — 55,833 Restricted cash equivalents (1) 3,084 1,499 — 4,583 Total assets $ 173,042 $ 71,077 $ — $ 244,119 Liabilities: Derivative instruments (2) $ — $ 7,110 $ — $ 7,110 Total liabilities $ — $ 7,110 $ — $ 7,110 Assets and Liabilities at Fair Value as of February 1, 2025 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1) $ 304,072 $ 1,013 $ — $ 305,085 Derivative instruments (2) — 4,315 — 4,315 Rabbi Trust assets (3) 1,164 53,921 — 55,085 Restricted cash equivalents (1) 3,070 1,496 — 4,566 Total assets $ 308,306 $ 60,745 $ — $ 369,051 (1) Level 1 assets consisted of investments in money market funds and U.S. treasury bills. Level 2 assets consisted of time deposits with original maturities of less than three months . (2) Level 2 assets and liabilities consisted primarily of foreign currency exchange forward contracts. (3) Level 1 assets consisted of investments in money market funds. Level 2 assets consisted of trust-owned life insurance policies. Abercrombie & Fitch Co. 12 2025 2Q Form 10-Q Table of Contents The Company’s Level 2 assets and liabilities consisted of: • Trust-owned life insurance policies, which were valued using the cash surrender value of the life insurance policies; • Time deposits with original maturities of three months or less, which were recorded at cost, approximating fair value, due to the short-term nature of these investments; and • Derivative instruments, primarily foreign currency exchange forward contracts, which were valued using quoted market prices of the same or similar instruments, adjusted for counterparty risk. The Company also holds certain investments that are not measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets, including held-to-maturity securities. Held-to-maturity securities consist primarily of time deposits with maturities less than one year, which are valued at amortized cost, approximating fair value. 7. PROPERTY AND EQUIPMENT, NET 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 Less: Accumulated depreciation and amortization ( 2,104,798 ) ( 2,030,098 ) Property and equipment, net $ 638,590 $ 575,773 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. 8. LEASES The Company is a party to leases related to its Company-operated retail stores, as well as for certain of its distribution centers, office space, information technology and equipment. The following table provides a summary of the Company’s operating lease costs for the thirteen and 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) $ 76,735 $ 64,163 $ 146,582 $ 124,143 Variable lease cost (2) 45,929 45,197 94,504 91,366 Operating lease right-of-use asset impairment (3) 623 472 1,072 811 Sublease income ( 1,048 ) ( 986 ) ( 2,036 ) ( 1,970 ) Total operating lease cost $ 122,239 $ 108,846 $ 240,122 $ 214,350 (1) Includes amortization and interest expense associated with operating lease right-of-use assets and the impact from remeasurement of operating lease liabilities. (2) Includes variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs. (3) Refer to Note 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 $ 121.6 million as of August 2, 2025. Abercrombie & Fitch Co. 13 2025 2Q Form 10-Q Table of Contents 9. ASSET IMPAIRMENT 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 922 — 922 — Total asset impairment $ 2,773 $ 701 $ 3,452 $ 1,567 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. 10. INCOME TAXES 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. The Company’s quarterly provision and the estimate of the annual effective tax rate are subject to significant variation due to several factors. These factors include variability in the pre-tax jurisdictional mix of earnings, changes in how the Company does business including entering into new businesses or geographies, changes in foreign currency exchange rates, changes in laws, regulations, interpretations and administrative practices, relative changes in expenses or losses for which tax benefits are not recognized and the impact of discrete items. In addition, jurisdictions where the Company anticipates an ordinary loss for the fiscal year for which the Company does not anticipate future tax benefits are excluded from the overall computation of estimated annual effective tax rate and no tax benefits are recognized in the period related to losses in such jurisdictions. 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 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. Should circumstances change, the net deferred tax assets may become subject to additional valuation allowances in the future. Additional valuation allowances would result in additional tax expense. 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 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. 14 2025 2Q Form 10-Q Table of Contents 11. BORROWINGS ABL Facility The Amended and Restated Credit Agreement, as amended, of Abercrombie & Fitch Management Co. (“A&F Management”), a wholly-owned indirect subsidiary of A&F, provides for a senior secured asset-based revolving credit facility of up to $ 500 million (the “ABL Facility”), which matures on August 2, 2029. The terms of the Company’s ABL Facility have remained unchanged from those disclosed in Note 12, “ BORROWINGS ,” of the Notes to Consolidated Financial Statements contained in “Item 8. Financial Statements and Supplementary Data” of the Fiscal 2024 Form 10-K. 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. 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 $ 449.5 million as of August 2, 2025. 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 A&F and its subsidiaries to: grant or incur liens; incur, assume or guarantee additional indebtedness; sell or otherwise dispose of assets, including capital stock of subsidiaries; make investments in certain subsidiaries; pay dividends, make distributions or redeem or repurchase capital stock; change the nature of their business; and consolidate or merge with or into, or sell substantially all of the assets of the Company or A&F Management to another entity. 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 August 2, 2025. 12. SHARE-BASED COMPENSATION Financial statement impact 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 1,487 1,240 2,885 2,518 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 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 Employee tax withheld upon issuance of shares (1) $ 768 $ 2,052 $ 34,830 $ 67,225 (1) Classified within financing activities on the Condensed Consolidated Statements of Cash Flows. Abercrombie & Fitch Co. 15 2025 2Q Form 10-Q Table of Contents Restricted stock units The following table provides the summarized activity for restricted stock units for the twenty-six weeks ended August 2, 2025: Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Number of Underlying Shares Weighted- Average Grant Date Fair Value Number of Underlying Shares Weighted- Average Grant Date Fair Value Number of Underlying Shares Weighted- Average Grant Date Fair Value Unvested at February 1, 2025 1,173,185 $ 47.95 424,541 $ 40.76 212,287 $ 58.95 Granted 424,497 78.71 95,309 78.69 47,663 85.88 Adjustments for performance achievement — — 152,539 30.12 87,168 41.38 Vested ( 522,929 ) 42.60 ( 326,867 ) 30.12 ( 174,336 ) 41.38 Forfeited ( 34,962 ) 56.93 ( 2,956 ) 89.06 ( 1,478 ) 109.36 Unvested at August 2, 2025 (1) 1,039,791 $ 63.00 342,566 $ 56.31 171,304 $ 74.95 (1) Unvested shares related to restricted stock units with performance-based and market-based vesting conditions are reflected at 100% of their target vesting amount in the table above. 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 August 2, 2025: Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Unrecognized compensation cost (in thousands) $ 55,180 $ 12,220 $ 7,027 Remaining weighted-average period cost is expected to be recognized (years) 1.3 0.9 1.1 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: Total grant date fair value of awards granted $ 33,412 $ 28,766 Total grant date fair value of awards vested 22,277 20,500 Performance-based restricted stock units: Total grant date fair value of awards granted 7,500 6,483 Total grant date fair value of awards vested 9,845 9,659 Market-based restricted stock units: Total grant date fair value of awards granted 4,093 4,860 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 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 Fair value 85.88 180.71 Price volatility 61 % 59 % Expected term (years) 2.9 2.9 Risk-free interest rate 3.8 % 4.3 % Dividend yield — — Average volatility of peer companies 45.6 51.8 Average correlation coefficient of peer companies 0.4430 0.4866 Abercrombie & Fitch Co. 16 2025 2Q Form 10-Q Table of Contents 13. DERIVATIVE INSTRUMENTS The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivative instruments, primarily forward contracts, to manage the financial impacts of these exposures. The Company does not use forward contracts to engage in currency speculation and does not enter into derivative financial instruments for trading purposes. The Company uses derivative instruments, primarily foreign currency exchange forward contracts designated as cash flow hedges, to hedge the foreign currency exchange rate exposure associated with forecasted foreign-currency-denominated intercompany inventory sales to foreign subsidiaries and the related settlement of the foreign-currency-denominated intercompany receivables. Fluctuations in foreign currency exchange rates will either increase or decrease the Company’s intercompany equivalent cash flows and affect the Company’s U.S. dollar earnings. Gains or losses on the foreign currency exchange forward contracts that are used to hedge these exposures are expected to partially offset this variability. Foreign currency exchange forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed upon settlement date. These foreign currency exchange forward contracts typically have a maximum term of twelve months. The sale of the inventory to the Company’s customers will result in the reclassification of related derivative gains and losses that are reported in AOCL into earnings. The Company also uses foreign currency exchange forward contracts to hedge certain foreign-currency-denominated net monetary assets/liabilities. Examples of monetary assets/liabilities include cash balances, receivables and payables. Fluctuations in foreign currency exchange rates result in transaction gains or losses being recorded in earnings, as GAAP requires that monetary assets/liabilities be remeasured at the spot exchange rate at quarter-end and upon settlement. 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 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) Euro $ 66,284 British pound 88,178 Canadian dollar 35,827 (1) Amounts reported are the U.S. 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) Euro 22,310 (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 August 2, 2025 and 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 $ 714 $ 4,315 Accrued expenses $ 6,848 $ — Derivatives not designated as hedging instruments Other current assets — — Accrued expenses 262 — Total $ 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 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 (Loss) gain recognized in AOCL (1) $ ( 1,239 ) $ ( 587 ) $ ( 12,575 ) $ 442 (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 (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 . Abercrombie & Fitch Co. 17 2025 2Q Form 10-Q Table of Contents The following table provides additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for the thirteen and twenty-six weeks ended 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 Gain (loss) recognized in other operating (income) loss, net $ 318 $ ( 219 ) $ 684 $ 443 14. ACCUMULATED OTHER COMPREHENSIVE LOSS 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) — 728 728 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) — ( 527 ) ( 527 ) Tax effect — ( 36 ) ( 36 ) Other comprehensive income (loss) after reclassifications 3,441 ( 1,150 ) 2,291 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 income before reclassifications 1,604 442 2,046 Reclassified gain from AOCL (1) — ( 1,010 ) ( 1,010 ) Tax effect — ( 59 ) ( 59 ) 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. 18 2025 2Q Form 10-Q Table of Contents 15. SEGMENT REPORTING The Company’s reportable segments are based on the financial information the chief operating decision maker (“CODM”) uses to allocate resources and assess performance of its business. The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; EMEA; and 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. The Americas reportable segment includes the results of operations in North America and South America. The EMEA reportable segment includes the results of operations in Europe, the Middle East and Africa. The APAC reportable segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The group comprised of the Company’s (i) Chief Executive Officer, (ii) Chief Operating Officer, and (iii) Chief Financial Officer functions as the Company’s CODM. The Company’s CODM manages business operations and evaluates the performance of each segment based on the net sales and operating income (loss) of the segment. The CODM considers actual performance relative to expectations and growth potential to determine the appropriate allocation of resources to each segment. Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributed to the segment. Corporate/other expenses include expenses incurred that are not directly attributed to a reportable segment and primarily relate to corporate or global functions such as design, sourcing, brand management, corporate strategy, information technology, finance, treasury, legal, human resources, and other corporate support services, as well as certain globally managed components of the planning, merchandising, and marketing functions. The Company reports inventories by segment as that information is used by the CODM in determining allocation of resources to the segments. The Company does not report its other assets by segment as that information is not used by the CODM in assessing segment performance or allocating resources. The following tables provide the Company’s segment information as of 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) Americas (1) EMEA APAC Total Net sales $ 974,200 $ 197,210 $ 37,150 $ 1,208,560 Cost of sales, exclusive of depreciation and amortization 360,569 77,401 13,620 451,590 Store occupancy (2) 90,136 30,106 12,082 132,324 Fulfillment (2) 68,708 22,857 4,901 96,466 Other expense (3) 134,958 42,316 12,514 189,788 Segment income (loss) $ 319,829 $ 24,530 $ ( 5,967 ) $ 338,392 Operating loss not attributed to segments: Corporate and other unallocated expenses (4) ( 131,734 ) Operating income $ 206,658 Interest income, net ( 2,474 ) Income before income taxes $ 209,132 Depreciation and amortization $ 20,304 $ 5,913 $ 1,829 $ 28,046 Depreciation and amortization not attributed to segments 9,378 Total depreciation and amortization $ 37,424 Capital expenditures $ 41,958 $ 8,877 $ 4,839 $ 55,674 Capital expenditures not attributed to segments 10,505 Total capital expenditures $ 66,179 Abercrombie & Fitch Co. 19 2025 2Q Form 10-Q Table of Contents Thirteen Weeks Ended August 3, 2024 (in thousands) Americas (1) EMEA APAC Total Net sales $ 901,224 $ 199,682 $ 33,068 $ 1,133,974 Cost of sales, exclusive of depreciation and amortization 314,291 71,798 11,623 397,712 Store occupancy (2) 81,848 28,963 7,936 118,747 Fulfillment (2) 83,210 19,462 4,130 106,802 Other expense (3) 146,755 41,419 12,624 200,798 Segment income (loss) $ 275,120 $ 38,040 $ ( 3,245 ) $ 309,915 Operating loss not attributed to segments: Corporate and other unallocated expenses (4) ( 134,290 ) Operating income $ 175,625 Interest income, net ( 5,203 ) Income before income taxes $ 180,828 Depreciation and amortization $ 21,181 $ 7,647 $ 2,472 $ 31,300 Depreciation and amortization not attributed to segments 8,055 Total depreciation and amortization $ 39,355 Capital expenditures $ 24,517 $ 2,679 $ 3,870 $ 31,066 Capital expenditures not attributed to segments 11,697 Total capital expenditures $ 42,763 (1) Includes the U.S., Canada, and Latin America. Net sales in the U.S. 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. (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. Twenty-Six Weeks Ended August 2, 2025 (in thousands) Americas (1) 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) ( 268,785 ) Operating income $ 308,191 Interest income, net ( 9,257 ) Income before income taxes $ 317,448 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. 20 2025 2Q Form 10-Q Table of Contents 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) ( 280,967 ) Operating income $ 305,474 Interest income, net ( 10,226 ) Income before income taxes $ 315,700 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. Assets (in thousands) August 2, 2025 February 1, 2025 August 3, 2024 Inventories Americas $ 482,533 $ 463,148 $ 438,076 EMEA 87,534 88,728 80,418 APAC 22,899 23,129 21,265 Total inventories $ 592,966 $ 575,005 $ 539,759 Assets not attributed to segments 2,708,975 2,724,882 2,509,799 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 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) $ 1,124,462 $ 991,673 $ 1,002,222 EMEA (3) 344,708 292,285 249,522 APAC 121,125 114,388 67,390 Total $ 1,590,295 $ 1,398,346 $ 1,319,134 (1) Includes the U.S., Canada, and Latin America. Long-lived assets and intellectual property located in the U.S. 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 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 Abercrombie $ 551,868 $ 582,416 $ 1,099,815 $ 1,153,929 Hollister 656,692 551,558 1,206,056 1,000,775 Total $ 1,208,560 $ 1,133,974 $ 2,305,871 $ 2,154,704 Abercrombie & Fitch Co. 21 2025 2Q Form 10-Q Table of Contents