What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-12-05 compared with 2025-09-05 · 161 added, 197 removed, 481 unchanged (43% of the section changed)

9 unchanged sentences

“Risk Factors,” in the Company’s Fiscal 2024 Form 10-K and otherwise in our subsequent reports and filings with the SEC, as well as the following:

• risks related to global trade policy, including the impact of the imposition or threat of imposition of new or increased tariffs by the United States or foreign governments, other changes to trade policies or arrangements and continued uncertainties relating to such policies and arrangements, including as a result of litigation and court rulings, or a global trade war;

• risks and uncertainties related to global trade policy and international trade disputes, including the impact of the imposition or threat of imposition of new or increased tariffs by the United States or foreign governments or other changes to trade policies or arrangements;

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

5 unchanged sentences

• risks related to our ability to successfully invest in and execute on our customer, digital and omnichannel initiatives;

• risks related to our ability to successfully execute technology initiatives and partnerships, such as those relating to artificial intelligence technology;

• risks related to our ability to execute on, and maintain the success of, our strategic and growth initiatives;

2 unchanged sentences

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

• risks related to our ability to execute on, and maintain the success of, our strategic and growth initiatives;

• risks and uncertainty related to adverse public health developments;

• risks related to cybersecurity threats and privacy or data security breaches, and the potential loss or disruption of our information technology systems;

• risks and uncertainty related to the implementation of new enterprise resource planning (“ERP”) systems;

• risks related to the continued validity of our trademarks and our ability to protect our intellectual property;

5 unchanged sentences

The forward-looking statements included herein are based on information presently available to the management of the Company.

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

Except as may be required by applicable law, the Company assumes no obligation to publicly update or revise its

Abercrombie & Fitch Co.

2025 3Q Form 10-Q

or otherwise.

forward-looking statements, including any financial targets and estimates, whether as a result of new information, future events, or otherwise.

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

4 unchanged sentences

• Current Trends and Outlook .

A discussion related to certain of the Company’s focus areas for the current fiscal year and a discussion of certain risks and challenges, as well as a summary of the Company’s performance for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024.

A discussion related to certain of the Company’s focus areas for the current fiscal year and a discussion of certain risks and challenges, as well as a summary of the Company’s performance for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024.

• Results of Operations .

An analysis of certain components of the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024.

An analysis of certain components of the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024.

• Liquidity and Capital Resources .

A discussion of the Company’s financial condition, changes in financial condition and liquidity as of August 2, 2025, which includes (i) an analysis of financial condition as compared to February 1, 2025;

(ii) an analysis of changes in cash flows for the twenty-six weeks ended August 2, 2025, as compared to the twenty-six weeks ended August 3, 2024;

A discussion of the Company’s financial condition, changes in financial condition and liquidity as of November 1, 2025, which includes (i) an analysis of financial condition as compared to February 1, 2025;

(ii) an analysis of changes in cash flows for the thirty-nine weeks ended November 1, 2025, as compared to the thirty-nine weeks ended November 2, 2024;

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

42 unchanged sentences

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

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

• continuing to progress on our multi-year ERP system transformation, including through the implementation of our new merchandising and human capital management systems anticipated in the first half of Fiscal 2026, as well as our cloud migration journey;

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

Operate with financial discipline by:

• using our agile inventory model and pricing strategies to position the Company to support customer demand throughout the year;

Abercrombie & Fitch Co.

2025 3Q Form 10-Q

Operate with financial discipline by:

• using our agile inventory model and pricing strategies to position the Company to support customer demand throughout the year;

• maintaining our durable balance sheet and consistent free cash flow profile, underpinned by our disciplined investment philosophy while balancing against macro environment impacts and efficiency efforts.

1 unchanged sentence

Macroeconomic conditions such as a volatile interest rate environment, ongoing inflation, the geopolitical landscape, and foreign exchange rate fluctuations continue to impact the global economy.

In addition, recent changes in legislative and regulatory developments, including enacted and proposed tariffs and other trade policies, have introduced additional uncertainty in the global economy and impacted our business and operations.

In addition, changes in legislative and regulatory developments during the year, including enacted and proposed tariffs and other trade policies, have introduced further uncertainty in the global economy and have impacted our business and operations.

For example, during Fiscal 2025, the U.S.

announced a new universal baseline tariff on all U.S.

imports, plus additional country-specific tariffs for select countries, including the countries from which we source a predominant portion of our merchandise, including Vietnam, Cambodia, and India.

As a result, certain countries have imposed retaliatory tariffs on U.S.

has reached trade agreements with certain countries, however U.S.

tariff rates on imports from certain other countries remained subject to ongoing trade negotiations as of the date of this filing.

It is also possible that further tariffs may be introduced or increased, or that existing tariffs may further change, resulting in continued uncertainty regarding the future of global trade relations.

Additionally, recent court rulings bring additional uncertainty regarding the enforceability of the aforementioned tariffs.

These continued uncertainties could disrupt our ability to procure, and/or result in increases to the cost of merchandise sourced from impacted countries.

Uncertainties regarding tariffs, together with geopolitical tensions, may affect our business and operations or could lead to weakened business conditions for our industry.

With continued uncertainty surrounding the geopolitical and trade environment, we continue to evaluate the impact of tariffs and other trade policies on our business and are continuing to build our playbook of mitigation strategies.

Current mitigation strategies include evaluating supply chain footprint changes, negotiating with our supply chain vendors, pursuing operating expense reductions and determining ways to increase average unit retail (“AUR”) primarily through lower promotions and lower clearance selling.

imports, plus additional country-specific tariffs for select countries, including the countries from which we source a predominant portion of our merchandise.

In response to U.S.-imposed tariffs, certain countries have imposed retaliatory tariffs on U.S.

has reached trade agreements with certain countries.

However, U.S.

tariff rates on imports from other countries and other reciprocal tariffs have remained in effect and are subject to ongoing trade negotiations as of the date of this filing.

It is also possible that further tariffs may be introduced, increased, or that existing tariffs may further change, including as a result of pending court rulings.

These continued uncertainties regarding the future impact of tariffs and global trade relations could lead to weakened business conditions for our industry and could adversely impact our ability to procure, and/or result in increases to the cost of merchandise sourced from impacted countries.

We continue to evaluate the impact of tariffs and other trade policies on our business and we are continuing to build and execute against our playbook of mitigation strategies.

Current mitigation strategies include evaluating supply chain footprint changes, negotiating with our supply chain vendors, pursuing operating expense reductions and determining ways to increase average unit retail (“AUR”) including through lower promotions, lower clearance selling and targeted ticket increases starting post-holiday.

Assuming the estimated impact from the tariffs on goods imported into the U.S.

based on with trade policies as of August 25, 2025, and factoring in certain planned mitigation strategies, we expect to incur approximately $90 million of net tariff expense, or 170 basis points as a percent of net sales, which will correspondingly negatively impact our operating profit in Fiscal 2025.

based on trade policies in effect as of November 21, 2025, and factoring in certain planned mitigation strategies, we expect to incur approximately $90 million of net tariff expense, or 170 basis points as a percent of net sales, which will correspondingly negatively impact our operating profit in Fiscal 2025.

Further, in periods of perceived or actual unfavorable economic conditions, consumers may reallocate available discretionary spending or determine that they have fewer funds available for discretionary spending, which may also adversely impact demand for our products.

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

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

Global events and supply chain disruptions

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The global supply chain also continues to be negatively impacted by various factors, including disruptions in major maritime routes, higher operational costs, and increased competition for supply chain availability due to uncertainty regarding tariffs and trade policy.

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

During times of supply chain disruption, the Company may elect to pull forward product calendars which limits the effectiveness of our inventory chase model.

Further mitigating actions may be needed and could result in higher freight costs in the near-term and beyond.

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

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The Company continues to use data to inform its focus on aligning store square footage with digital penetration, and has delivered new store experiences across brands during Fiscal 2025 .

Through the end of the second fiscal quarter, the Company opened 26 new stores, remodeled 16 stores and right-sized five store, while closing eight stores.

Through the end of the third fiscal quarter, the Company opened 48 new stores, remodeled 24 stores and right-sized eight stores, while closing 10 stores.

As part of this focus, the Company’s store investment plan includes delivering approximately 40 net store openings during Fiscal 2025 consisting of opening approximately 60 new stores, while closing approximately 20 stores, pending negotiations with our landlord partners.

Additionally, the Company expects approximately 40 remodels and rightsizes, during Fiscal 2025 , pending negotiations with our landlord partners.

Additionally, the Company expects approximately 40 remodels and right-sizes, during Fiscal 2025 , pending negotiations with our landlord partners.

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

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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.

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

Abercrombie & Fitch Co.

10 unchanged sentences

Summary of results

The following provides a summary of results for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024:

The following provides a summary of results for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024:

GAAP Non-GAAP (1)

Thirteen Weeks Ended August 2, 2025

August 3, 2024

August 2, 2025

August 3, 2024

Thirteen Weeks Ended November 1, 2025

November 2, 2024

November 1, 2025

November 2, 2024

Net sales (in thousands)

9 unchanged sentences

Net income per share attributable to A&F 2.36 2.50

Twenty-Six Weeks Ended

Net sales $ 2,305,871 $ 2,154,704

Thirty-Nine Weeks Ended

Net sales (in thousands)

$ 3,596,490 $ 3,363,670

Change in net sales 7 % 19 %

Comparable sales (2)

Operating income $ 308,191 $ 305,474 $ 269,617

Operating income (in thousands)

$ 463,212 $ 484,756 $ 424,638

Operating income margin

12.9 % 14.4 % 11.8 %

Net income attributable to A&F $ 221,796 $ 247,018 $ 193,171

Net income attributable to A&F (in thousands)

$ 334,791 $ 378,997 $ 306,046

Net income per share attributable to A&F 6.83 7.13 6.24

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

Certain components of the Company’s Condensed Consolidated Balance Sheets as of August 2, 2025 and February 1, 2025 were as follows:

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

Certain components of the Company’s Condensed Consolidated Balance Sheets as of November 1, 2025 and February 1, 2025 were as follows:

(in thousands) November 1, 2025 February 1, 2025

Cash and equivalents $ 605,783 $ 772,727

1 unchanged sentence

Inventories 730,453 575,005

Certain components of the Company’s Condensed Consolidated Statements of Cash Flows for the twenty-six-week periods ended August 2, 2025 and August 3, 2024 were as follows:

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

Certain components of the Company’s Condensed Consolidated Statements of Cash Flows for the thirty-nine-week periods ended November 1, 2025 and November 2, 2024 were as follows:

(in thousands) November 1, 2025 November 2, 2024

Net cash provided by operating activities $ 313,000 $ 402,756

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Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order.

The Company’s net sales by reportable segment for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024 were as follows:

The Company’s net sales by reportable segment for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024 were as follows:

Thirteen Weeks Ended

(in thousands, except ratios) August 2, 2025 August 3, 2024 $ Change % Change Comparable

(in thousands, except ratios) November 1, 2025 November 2, 2024 $ Change % Change Comparable

Americas $ 1,057,448 $ 986,449 $ 70,999 7 % 4 %

2 unchanged sentences

Total $ 1,290,619 $ 1,208,966 $ 81,653 7 3

Twenty-Six Weeks Ended

(in thousands, except ratios) August 2, 2025 August 3, 2024 $ Change % Change Comparable

Thirty-Nine Weeks Ended

(in thousands, except ratios) November 1, 2025 November 2, 2024 $ Change % Change Comparable

Americas $ 2,906,452 $ 2,707,794 $ 198,658 7 % 5 %

4 unchanged sentences

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

For the second quarter of Fiscal 2025, net sales increased 7%, as compared to the second quarter of Fiscal 2024.

The increase was primarily attributable to high-single digit unit volume growth, with increases in company owned and operated stores digital channels and net new stores, partially offset by reduced AUR.

The year-over-year increase in net sales reflects positive comparable sales of 3%, as compared to the second quarter of Fiscal 2024.

On a geographic basis for the second quarter of Fiscal 2025:

For the third quarter of Fiscal 2025, net sales increased 7%, as compared to the third quarter of Fiscal 2024.

The increase was primarily attributable to mid-single-digit unit volume growth, with an increase in comparable company owned and operated stores, digital channels, net new owned and operated stores and low-single-digit AUR growth.

The year-over-year increase in net sales reflects positive comparable sales of 3%, as compared to the third quarter of Fiscal 2024.

On a geographic basis for the third quarter of Fiscal 2025:

• Net sales growth in the Americas region of 7% and 4% on a comparable basis.

The increase was attributable to low-double digit unit volume growth, with increases in company owned and operated stores and digital channels and net new owned and operated stores.

• Net sales decline in the EMEA region of (1)% and (5)% on a comparable basis.

The decrease was attributable to lower comparable AUR from increased promotional activity, partially offset by low single-digit unit volume growth, with increases in company owned and operated stores and digital channels, new stores and favorable foreign currency.

• Net sales growth in the APAC region of 12% and 1% on a comparable basis.

Sales growth was led by low single-digit unit volume growth, with increases in owned and operated store and digital channels and new owned and operated stores.

The increase was attributable to mid-single-digit unit volume growth, with increases in comparable company owned and operated stores, digital channels and net new owned and operated stores.

• Net sales growth in the EMEA region of 7% and 2% on a comparable basis.

The increase was attributable to low-double-digit AUR growth and favorable foreign currency, partially offset by mid-single-digit unit volume decline, with decreases in comparable company owned and operated stores and digital channels.

• Net sales decline in the APAC region of (6)% and (12)% on a comparable basis.

The decline was led by low-double-digit unit volume decline, with decreases in comparable owned and operated store and digital channels, partially offset by mid-single-digit AUR growth.

For the year-to-date period of Fiscal 2025 , net sales increased 7%, as compared to the year-to-date period of Fiscal 2024.

The increase was primarily attributable to high-single digit growth unit volume growth, with increases in company owned and operated stores and digital channels.

The increase was primarily attributable to high-single-digit unit volume growth, with increases in comparable company owned and operated stores, digital channels and net new owned and operated stores.

The year-over-year increase in net sales reflects positive comparable sales of 4%, as compared to the year-to-date period of Fiscal 2024.

1 unchanged sentence

• Net sales growth in the Americas region of 7% and 5% on a comparable basis.

Sales growth was led by high single-digit unit volume growth, with increases in company owned and operated stores and digital channels and net new owned and operated stores.

The increase was led by high-single-digit unit volume growth, with increases in comparable company owned and operated stores, digital channels and net new owned and operated stores.

• Net sales growth in the EMEA region of 6% and flat on a comparable basis.

The increase was attributable to new store sales, low single-digit unit volume growth with an increase in in digital channels, and foreign currency partially offset by lower AUR.

The increase was attributable to mid-single digit AUR growth, favorable foreign currency and an increase in sales volume in net new stores, offset by relatively flat unit growth.

• Net sales growth in the APAC region of 3% and 2% on a comparable sales basis.

The increase was attributable to new store sales and low-single digit unit volume growth, with an increase in digital, partially offset by a decrease in owned and operated stores.

The increase was attributable to mid-single digit AUR growth, a high-single digit increase in digital channels, partially offset by a decrease in comparable owned and operated stores.

Sales growth was negatively impacted by low-single digit unit volume decline with declines in comparable owned and operated stores, partially offset by growth in digital channels.

Abercrombie & Fitch Co.

2025 3Q Form 10-Q

The Company’s net sales by brand for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024 were as follows:

The Company’s net sales by brand for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024 were as follows:

Thirteen Weeks Ended

(in thousands, except ratios) August 2, 2025 August 3, 2024 $ Change % Change Comparable

(in thousands, except ratios) November 1, 2025 November 2, 2024 $ Change % Change Comparable

$ 617,345 $ 629,835 $ (12,490) (2) % (7) %

1 unchanged sentence

Total $ 1,290,619 $ 1,208,966 $ 81,653 7 3

Twenty-Six Weeks Ended

(in thousands, except ratios) August 2, 2025 August 3, 2024 $ Change % Change Comparable

Thirty-Nine Weeks Ended

(in thousands, except ratios) November 1, 2025 November 2, 2024 $ Change % Change Comparable

$ 1,717,160 $ 1,783,764 $ (66,604) (4) % (10) %

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Thirteen Weeks Ended

August 2, 2025 August 3, 2024

November 1, 2025 November 2, 2024

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

Cost of sales, exclusive of depreciation and amortization $ 483,670 37.5 % $ 422,034 34.9 % 260

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

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

Cost of sales, exclusive of depreciation and amortization $ 1,352,393 37.6 % $ 1,163,019 34.6 % 300

For the second quarter of Fiscal 2025, cost of sales, exclusive of depreciation and amortization, as a percentage of net sales increased by approximately 230 basis points, as compared to the second quarter of Fiscal 2024.

The percentage increase was primarily attributable to cost of sales deleverage from single-digit AUR decreases driven by volume mix and targeted promotions, and higher average unit cost (“AUC”) partially due to an approximate 40 basis point adverse tariff impact compared to the second quarter of Fiscal 2024 .

For the third quarter of Fiscal 2025, cost of sales, exclusive of depreciation and amortization, as a percentage of net sales increased by approximately 260 basis points, as compared to the third quarter of Fiscal 2024.

The percentage increase was primarily attributable to higher average unit cost (“AUC”) partially due to an approximate 210 basis point adverse tariff impact, with the remaining impact from product mix compared to the third quarter of Fiscal 2024 .

For the year-to-date period of Fiscal 2025, cost of sales, exclusive of depreciation and amortization, as a percentage of net sales increased by approximately 300 basis points, as compared to the year-to-date period of Fiscal 2024.

The percentage increase was primarily attributable to cost of sales deleverage from single-digit AUR decreases driven by volume mix and targeted promotions, and higher AUC primarily related to 120 basis points in higher freight costs and an approximate 20 basis point adverse tariff impact compared to the year-to-date period of Fiscal 2024 .

The percentage increase was primarily attributable to cost of sales deleverage with AUR approximately flat driven by volume mix and targeted promotions, higher AUC primarily related to an approximate 90 basis point adverse tariff impact, and 40 basis points in higher freight costs compared to the year-to-date period of Fiscal 2024 .

Abercrombie & Fitch Co.

2 unchanged sentences

Thirteen Weeks Ended

August 2, 2025 August 3, 2024

November 1, 2025 November 2, 2024

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

Selling expense $ 459,548 35.6 % $ 420,990 34.8 % 80

Excluded item:

Litigation Settlement (1)

42,874 3.5 — — 350

Adjusted non-GAAP selling expense

$ 418,230 34.6 $ 382,557 33.7 90

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

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

6 unchanged sentences

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

For the second quarter of Fiscal 2025, selling expense decreased by $7 million, as compared to the second quarter of Fiscal 2024 .

Selling expense as a percentage of net sales decreased 260 basis points, as compared to the second quarter of Fiscal 2024.

The decrease in rate was primarily driven by expense leverage, including an approximate 350 basis point benefit resulting from the favorable settlement of claims to resolve payment card interchange fee litigation (the “Litigation Settlement”), partially offset by an approximate 90 basis point increase in store occupancy and payrolls costs.

Excluding 350 basis points of benefits related to the Litigation Settlement, adjusted non-GAAP selling expense as a percentage of net sales increased by approximately 90 basis points during the second quarter of Fiscal 2025, as compared to the second quarter of Fiscal 2024 .

For the third quarter of Fiscal 2025, selling expense increased by $39 million, as compared to the third quarter of Fiscal 2024 .

Selling expense as a percentage of net sales increased 80 basis points, as compared to the third quarter of Fiscal 2024.

The increase in rate was primarily driven by expense deleverage, with an approximate 100 basis point increase in marketing and an approximate 40 basis point increase in store occupancy and payrolls costs, partially offset by approximately 80 basis points in fulfillment expense.

For the year-to-date period of Fiscal 2025, selling expense increased by $71 million as compared to the year-to-date period of Fiscal 2024 .

Selling expense as a percentage of net sales decreased 30 basis points as compared to the year-to-date period of Fiscal 2024.

The decrease in rate was primarily driven by expense leverage, including an approximate 190 basis point benefit resulting from the Litigation Settlement, partially offset by an approximate 60 basis point increase in store occupancy and payroll costs and an approximate 40 basis point increase in marketing.

The decrease in rate was primarily driven by expense leverage, including an approximate 120 basis point benefit resulting from the Litigation Settlement and approximately 70 basis points in fulfillment expense, partially offset by an approximate 70 basis point increase in store occupancy and payroll costs and an approximate 60 basis point increase in marketing.

Excluding 120 basis points of benefits related to the Litigation Settlement, adjusted non-GAAP selling expense as a percentage of net sales increased by approximately 90 basis points during the year-to-date period of Fiscal 2025, as compared to the year-to-date period of Fiscal 2024.

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Thirteen Weeks Ended

August 2, 2025 August 3, 2024

November 1, 2025 November 2, 2024

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

1 unchanged sentence

$ 193,402 15.0 % $ 188,246 15.6 % (60)

Excluded item:

Litigation Settlement (1)

(4,300) (0.4) — — (40)

Adjusted non-GAAP general and administrative expense

$ 171,025 14.2 $ 178,147 15.7 (150)

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

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

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

For the second quarter of Fiscal 2025, general and administrative expense decreased by $3 million, as compared to the second quarter of Fiscal 2024 .

General and administrative expense as a percentage of net sales decreased 120 basis points, as compared to the second quarter of Fiscal 2024.

The decrease in expense rate was primarily driven by a 190 basis point decrease in employee compensation costs, partially offset by approximately 40 basis points in legal fees relating to the Litigation Settlement, and 30 basis points in other administrative expenses.

Excluding 40 basis points of legal fees related to the Litigation Settlement, adjusted non-GAAP general and administrative expense as a percentage of net sales decreased by approximately 150 basis points during the second quarter of Fiscal 2025, as compared to the second quarter of Fiscal 2024 .

For the third quarter of Fiscal 2025, general and administrative expense increased by $5 million, as compared to the third quarter of Fiscal 2024 .

General and administrative expense as a percentage of net sales decreased 60 basis points, as compared to the third quarter of Fiscal 2024.

The decrease in expense rate was primarily driven by a 110 basis point decrease in employee compensation costs, partially offset by an approximate 40 basis point increase in outside services expense.

For the year-to-date period of Fiscal 2025, general and administration expense decreased by $12 million, as compared to the year-to-date period of Fiscal 2024.

General and administrative expense as a percentage of net sales decreased 140 basis points as compared to the year-to-date period of Fiscal 2024.

The decrease in expense rate was primarily driven by an approximate 200 basis point decrease in employee compensation costs, approximately 20 basis points in legal fees relating to the Litigation Settlement, partially offset by approximately 30 basis points in outside services and other administrative expenses.

The decrease in expense rate was primarily driven by an approximate 160 basis point decrease in employee compensation costs and approximately 10 basis points in legal fees relating to the Litigation Settlement, partially offset by approximately 30 basis points in outside services and other administrative expenses.

Excluding 10 basis points of legal fees related to the Litigation Settlement, adjusted non-GAAP general and administrative expense as a percentage of net sales during the year-to-date period of Fiscal 2025, decreased by approximately 150 basis points, as compared to the year-to-date period of Fiscal 2024.

Other operating income, net

Other operating (income) loss, net

Thirteen Weeks Ended

August 2, 2025 August 3, 2024

November 1, 2025 November 2, 2024

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

Other operating income, net $ (1,022) (0.1) % $ (1,586) (0.1) % —

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

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

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Thirteen Weeks Ended

August 2, 2025 August 3, 2024

November 1, 2025 November 2, 2024

(in thousands, except ratios) % of Net sales (1)

5 unchanged sentences

Operating income $ 155,021 12.0 $ 179,282 14.8 (280)

Excluded item:

Litigation Settlement (2)

38,574 3.2 — — 320

Adjusted non-GAAP operating income

$ 168,084 13.9 $ 175,625 15.5 (160)

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

(in thousands, except ratios) % of Net Sales (1)

12 unchanged sentences

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

For the second quarter of Fiscal 2025, operating income increased by $31 million, or 160 basis points, as a percentage of net sales, as compared to the second quarter of Fiscal 2024.

• Operating income for the Americas region increased $45 million, or 230 basis points as a percentage of region net sales, as compared to the second quarter of Fiscal 2024.

The increase as a percent of sales was primarily attributed to a benefit from the Litigation Settlement included in selling expense, partially offset by higher cost of sales, inclusive of tariffs, and deleverage on store occupancy expenses.

• Operating income for the EMEA region decreased $14 million or 670 basis points as a percentage of region net sales, as compared to the second quarter of Fiscal 2024.

The decrease as a percent of sales is primarily attributed to lower comparable AUR and deleverage on stores and distribution center related fulfillment expenses.

• Operating (loss) for the APAC region increased by $3 million or 630 basis points as a percentage of region net sales, as compared to the second quarter of Fiscal 2024.

The decrease as a percent of sales is primarily attributed to deleverage on higher stores and distribution expenses.

Excluding the benefits related to the Litigation Settlement, adjusted non-GAAP operating income as a percentage of net sales decreased by approximately 160 basis points during the second quarter of Fiscal 2025, as compared to the second quarter of Fiscal 2024.

For the year-to-date period of Fiscal 2025, operating income increased by $3 million compared to the year-to-date period of Fiscal 2024.

For the third quarter of Fiscal 2025, operating income decreased by $24 million, or 280 basis points, as a percentage of net sales, as compared to the third quarter of Fiscal 2024.

• Operating income for the Americas region decreased $16 million, or 360 basis points as a percentage of region net sales, as compared to the third quarter of Fiscal 2024.

The decrease as a percent of sales was primarily attributed to higher cost of sales, inclusive of tariffs, and an increase in marketing investments.

• Operating income for the EMEA region decreased $0.2 million or 100 basis points as a percentage of region net sales, as compared to the third quarter of Fiscal 2024.

The decrease as a percent of sales is primarily attributed to higher AUC and deleverage on general and administrative expenses, partially offset by leverage on store occupancy.

• Operating (loss) for the APAC region increased by $2 million or 610 basis points as a percentage of region net sales, as compared to the third quarter of Fiscal 2024.

The decrease as a percent of sales is primarily attributed to deleverage on marketing investments and general and administrative expenses.

For the year-to-date period of Fiscal 2025, operating income decreased by $22 million compared to the year-to-date period of Fiscal 2024.

As a percentage of net sales operating income decreased 150 basis points compared to the year-to-date period of Fiscal 2024.

• Operating income for the Americas increased $3 million and decreased 200 basis points as a percentage of region net sales as compared to the year-to-date period of Fiscal 2024.

The decrease as a percent of sales was primarily attributed to higher cost of sales, inclusive of tariffs, and deleverage on store occupancy expenses, partially offset by a benefit from the Litigation Settlement included in selling expense.

• Operating (loss) for EMEA increased $22 million, or 660 basis points as a percentage of region net sales as compared to the year-to-date period of Fiscal 2024.

The decrease as a percent of sales primarily relates to higher freight costs, marketing and deleverage on distribution center related fulfillment expenses.

The decrease as a percent of sales was primarily attributed to higher cost of sales, inclusive of tariffs, and deleverage on marketing investments, partially offset by leverage in fulfillment expenses and a benefit from the Litigation Settlement included in selling expense.

• Operating income for EMEA decreased $22 million, or 460 basis points as a percentage of region net sales as compared to the year-to-date period of Fiscal 2024.

The decrease as a percent of sales primarily relates to higher freight costs, and deleverage on fulfillment expenses and marketing investments.

• Operating (loss) for APAC increased $9 million, or 760 basis points as a percentage of region net sales, as compared to the year-to-date period of Fiscal 2024.

The decrease as a percent of sales is primarily attributed to deleverage on higher stores and distribution expenses.

The decrease as a percent of sales is primarily attributed to higher cost of sales, and deleverage on store occupancy expenses, partially offset by leverage on general and administrative expenses.

Excluding the benefits related to the Litigation Settlement, adjusted non-GAAP operating income as a percentage of net sales decreased by approximately 260 basis points during the year-to-date period of Fiscal 2025, as compared to the year-to-date period of Fiscal 2024.

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Thirteen Weeks Ended

August 2, 2025 August 3, 2024

November 1, 2025 November 2, 2024

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

2 unchanged sentences

Interest income, net $ (5,941) (0.5) $ (8,733) (0.7) 20

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

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

2 unchanged sentences

Interest income, net $ (15,198) (0.4) $ (18,959) (0.6) 20

For the second quarter of Fiscal 2025, interest income, net decreased $2.7 million, as compared to the second quarter of Fiscal 2024.

The net decrease was a result of a reduction in interest income due to the decrease in balance on time deposits and money market accounts compared to the second quarter of Fiscal 2024.

This was partially offset by lower interest expense in Fiscal 2025 compared to Fiscal 2024 as a result of the redemption of the remaining outstanding balance of the 8.75% Senior Secured Notes on July 15, 2024.

For the third quarter of Fiscal 2025, interest income, net decreased $2.8 million, as compared to the third quarter of Fiscal 2024.

The net decrease was a result of a reduction in interest income due to the decrease in balance on time deposits and money market accounts compared to the third quarter of Fiscal 2024.

For the year-to-date period of Fiscal 2025, interest income, net decreased $3.8 million, as compared to the year-to-date period of Fiscal 2024 .

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Thirteen Weeks Ended

August 2, 2025 August 3, 2024

November 1, 2025 November 2, 2024

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

Income tax expense $ 45,862 28.5 % $ 54,151 28.8 %

Excluded item:

Tax effect of pre-tax excluded items (1)

Adjusted non-GAAP income tax expense $ 55,795 32.7 $ 45,449 25.1

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Income before taxes - GAAP $ 160,962 $ 188,015

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

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

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

The change in the effective tax rate for the second quarter and year-to-date period of Fiscal 2025, as compared with the second quarter and the year-to-date period of Fiscal 2024, is due to jurisdictional mix, a lower tax benefit on share-based compensation compared with the prior year, and the establishment of an additional valuation allowance in Japan.

The change in the effective tax rate for the third quarter and year-to-date period of Fiscal 2025, as compared with the third quarter and the year-to-date period of Fiscal 2024, is due to jurisdictional mix, a lower tax benefit on share-based compensation compared with the prior year, and the establishment of an additional valuation allowance in Japan.

Refer to Note 10, “ INCOME TAXES .”

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Thirteen Weeks Ended

August 2, 2025 August 3, 2024

November 1, 2025 November 2, 2024

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

Net income attributable to A&F $ 112,995 8.8 % $ 131,979 10.9 % (210)

Excluded item, net of tax (1)

(28,625) (2.4) — — (240)

Adjusted non-GAAP net income attributable to A&F

$ 112,758 9.3 $ 133,168 11.7 (240)

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

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

4 unchanged sentences

$ 306,046 8.5 $ 378,997 11.3 (280)

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

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

(1) Excluded items presented above under “Operating income,” and “Income tax expense.” Refer to “ NON-GAAP FINANCIAL MEASURES ” for further details.

Net income per share attributable to A&F

Thirteen Weeks Ended

August 2, 2025 August 3, 2024 $ Change

November 1, 2025 November 2, 2024 $ Change

Net income per diluted share attributable to A&F

$ 2.36 $ 2.50 $ (0.14)

Excluded item, net of tax (1) (2)

(0.59) — (0.59)

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

2.32 2.50 (0.18)

Impact from changes in foreign currency exchange rates — (0.03) 0.03

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

Net income per diluted share attributable to A&F on a constant currency basis (2)

$ 2.36 $ 2.47 $ (0.11)

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024 $ Change

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024 $ Change

Net income per diluted share attributable to A&F

13 unchanged sentences

Thirteen Weeks Ended

August 2, 2025 August 3, 2024

November 1, 2025 November 2, 2024

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

1 unchanged sentence

Income tax expense 45,862 3.6 54,151 4.5 (90)

Interest (income) expense, net (2,474) (0.2) (5,203) (0.5) 30

Depreciation and amortization 37,424 3.1 39,355 3.6 (50)

$ 244,082 20.2 $ 214,980 19.0 120

Excluded item:

Litigation Settlement (2)

Interest income, net

(5,941) (0.5) (8,733) (0.7) 20

Adjusted EBITDA (1)

Depreciation and amortization 38,566 3.0 39,566 3.2 (20)

$ 193,587 15.0 $ 218,848 18.1 (310)

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

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

1 unchanged sentence

Income tax expense 138,183 3.8 119,394 3.5 30

Interest (income) expense, net (9,257) (0.4) (10,226) (0.5) 10

Interest income, net

(15,198) (0.4) (18,959) (0.6) 20

Depreciation and amortization 114,566 3.2 116,610 3.6 (40)

29 unchanged sentences

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

For the year-to-date period ended August 2, 2025, the Company invested $116.9 million towards capital expenditures.

For the year-to-date period ended November 1, 2025, the Company invested $185.2 million towards capital expenditures.

Total capital expenditures for Fiscal 2025 are expected to be approximately $225 million.

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

As of August 2, 2025, the Company had cash and cash equivalents of $572.7 million and total liquidity of approximately $1.0 billion, compared with cash and cash equivalents of $772.7 million and total liquidity of approximately $1.2 billion at the beginning of Fiscal 2025 .

As of November 1, 2025, the Company had cash and cash equivalents of $605.8 million and total liquidity of approximately $1.1 billion, compared with cash and cash equivalents of $772.7 million and total liquidity of approximately $1.2 billion at the beginning of Fiscal 2025 .

Share repurchases

1 unchanged sentence

The 2025 Authorization does not have an expiration date.

During the year-to-date period ended August 2, 2025, the Company repurchased approximately 3.2 million shares of its Common Stock pursuant to this share repurchase authorization for approximately $250 million.

As of August 2, 2025, t he Company had $1.1 billion in share repurchases remaining under the 2025 Authorization.

During the year-to-date period ended November 1, 2025, the Company repurchased approximately 4.5 million shares of its Common Stock pursuant to the 2025 Authorization for approximately $350 million.

As of November 1, 2025, t he Company had $950 million in share repurchases remaining under the 2025 Authorization.

Historically, the Company has repurchased shares of its Common Stock from time to time, which repurchases are dependent on excess liquidity, market conditions and business conditions, with the objectives of returning excess cash to shareholders and offsetting dilution from issuances of Common Stock associated with the vesting of restricted stock units.

1 unchanged sentence

The timing and amount of any such repurchases will be determined based on an evaluation of market conditions, the Company’s share price, legal requirements, and other factors.

The Company is not obligated to repurchase any specific amount of shares of its Common Stock.

Abercrombie & Fitch Co.

3 unchanged sentences

The ABL Credit Agreement provides for the ABL Facility, which is a senior secured asset-based revolving credit facility of up to $500 million.

As of August 2, 2025, the Company did not have any borrowings outstanding under the ABL Facility.

Details regarding the remaining borrowing capacity under the ABL Facility as of August 2, 2025 are as follows:

(in thousands) August 2, 2025

As of November 1, 2025, the Company did not have any borrowings outstanding under the ABL Facility.

Details regarding the remaining borrowing capacity under the ABL Facility as of November 1, 2025 are as follows:

(in thousands) November 1, 2025

Loan cap $ 500,000

9 unchanged sentences

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

As of August 2, 2025, $209.1 million of the Company’s $572.7 million of cash and equivalents were held by foreign affiliates.

As of November 1, 2025, $205.8 million of the Company’s $605.8 million of cash and equivalents were held by foreign affiliates.

Refer to Note 10, “ INCOME TAXES .”

Analysis of cash flows

The table below provides certain components of the Company’s Condensed Consolidated Statements of Cash Flows for the twenty-six weeks ended August 2, 2025 and August 3, 2024:

Twenty-Six Weeks Ended

August 2, 2025 August 3, 2024

The table below provides certain components of the Company’s Condensed Consolidated Statements of Cash Flows for the thirty-nine weeks ended November 1, 2025 and November 2, 2024:

Thirty-Nine Weeks Ended

November 1, 2025 November 2, 2024

(in thousands)

6 unchanged sentences

Cash and equivalents, and restricted cash and equivalents, end of period $ 612,559 $ 690,997

Operating activities - During the fiscal year-to-date period ended August 2, 2025, net cash provided by operating activities included an increase in cash outflows related to the timing of merchandise and advertising payables and higher inventory product costs, partially offset by increased cash receipts as a result of the 7% year-over-year increase in net sales.

During the fiscal year-to-date period ended August 3, 2024, net cash provided by operating activities included increased cash receipts as a result of the 22% year-over-year increase in net sales.

Investing activities - During the fiscal year-to-date period ended August 2, 2025, net cash used for investing activities was primarily used for capital expenditures of $117 million, partially offset by the maturity of $85 million of marketable securities.

Net cash used for investing activities for the fiscal year-to-date period ended August 3, 2024 was primarily used for capital expenditures of $81.6 million.

Financing activities - During the fiscal year-to-date period ended August 2, 2025, net cash used for financing activities included the purchase of approximately 3.2 million shares of Common Stock with a market value of approximately $251 million and $35 million related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards.

During the fiscal year-to-date period ended August 3, 2024, net cash used for financing activities included

Operating activities - During the fiscal year-to-date period ended November 1, 2025, net cash provided by operating activities included an increase in cash outflows related to the timing of merchandise and advertising payables and higher inventory product costs, partially offset by increased cash receipts as a result of the 7% year-over-year increase in net sales.

During the fiscal year-to-date period ended November 2, 2024, net cash provided by operating activities included increased cash receipts as a result of the 19% year-over-year increase in net sales.

Investing activities - During the fiscal year-to-date period ended November 1, 2025, net cash used for investing activities was primarily used for capital expenditures of $185 million, as well as the purchase of $15.0 million of marketable securities, partially offset by the maturity of $105 million of marketable securities.

Net cash used for investing activities for the fiscal year-to-date period ended November 2, 2024 was primarily used for capital expenditures of $132.0 million, as well as the purchase of $55.0 million of marketable securities.

Abercrombie & Fitch Co.

2025 3Q Form 10-Q

the repurchase of $9.3 million in the open market and redemption of $214.0 million of outstanding Senior Secured Notes, $67 million related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards, and the purchase of approximately 0.2 million shares of Common Stock with a market value of approximately $30 million.

Financing activities - During the fiscal year-to-date period ended November 1, 2025, net cash used for financing activities included the purchase of approximately 4.5 million shares of Common Stock with a market value of approximately $351 million and $36 million related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards.

During the fiscal year-to-date period ended November 2, 2024, net cash used for financing activities included the repurchase of $9.3 million in the open market and redemption of $214.0 million of outstanding Senior Secured Notes, $69.6 million related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards, and the purchase of approximately 0.9 million shares of Common Stock with a market value of approximately $129.8 million.

Contractual obligations

41 unchanged sentences

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

Reconciliations of non-GAAP financial metrics on a constant currency basis to financial measures calculated and presented in accordance with GAAP for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024 were as follows:

Reconciliations of non-GAAP financial metrics on a constant currency basis to financial measures calculated and presented in accordance with GAAP for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024 were as follows:

(in thousands, except change in net sales, operating income margin and per share data)

Thirteen Weeks Ended Twenty-Six Weeks Ended

Net sales August 2, 2025 August 3, 2024 % Change August 2, 2025 August 3, 2024 % Change

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Net sales November 1, 2025 November 2, 2024 % Change November 1, 2025 November 2, 2024 % Change

GAAP $ 1,290,619 $ 1,208,966 7 % $ 3,596,490 $ 3,363,670 7 %

1 unchanged sentence

Non-GAAP on a constant currency basis $ 1,290,619 $ 1,214,800 6 % $ 3,596,490 $ 3,380,004 6 %

Operating income August 2, 2025 August 3, 2024 BPS Change (1)

August 2, 2025 August 3, 2024 BPS Change (1)

Operating income November 1, 2025 November 2, 2024 BPS Change (1)

November 1, 2025 November 2, 2024 BPS Change (1)

GAAP $ 155,021 $ 179,282 (280) $ 463,212 $ 484,756 (150)

4 unchanged sentences

Adjusted non-GAAP on a constant currency basis $ 155,021 $ 177,430 (260) $ 424,638 $ 479,942 (240)

Net income per share attributable to A&F August 2, 2025 August 3, 2024 $ Change August 2, 2025 August 3, 2024 $ Change

Net income per share attributable to A&F November 1, 2025 November 2, 2024 $ Change November 1, 2025 November 2, 2024 $ Change

GAAP $ 2.36 $ 2.50 $ (0.14) $ 6.83 $ 7.13 $ (0.30)

11 unchanged sentences

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

A reconciliation of non-GAAP EBITDA to net income, a financial measure calculated and presented in accordance with GAAP, and the adjustments made in calculating adjusted EBITDA for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024 were as follows:

A reconciliation of non-GAAP EBITDA to net income, a financial measure calculated and presented in accordance with GAAP, and the adjustments made in calculating adjusted EBITDA for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024 were as follows:

Thirteen Weeks Ended

(in thousands, except ratios) August 2, 2025 % of

Net Sales August 3, 2024 % of

(in thousands, except ratios) November 1, 2025 % of

Net Sales November 2, 2024 % of

Net income $ 115,100 8.9 % $ 133,864 11.1 %

4 unchanged sentences

$ 193,587 15.0 $ 218,848 18.1

Adjustments to EBITDA

Litigation Settlement (2)

(38,574) (3.2) — —

Adjusted EBITDA (1)

$ 205,508 17.0 $ 214,980 19.0

Twenty-Six Weeks Ended

(in thousands, except ratios) August 2, 2025 % of

Net Sales August 3, 2024 % of

Thirty-Nine Weeks Ended

(in thousands, except ratios) November 1, 2025 % of

Net Sales November 2, 2024 % of

Net income $ 340,227 9.5 % $ 384,321 11.4 %

Income tax expense 138,183 3.8 119,394 3.5

Interest (income) expense, net (9,257) (0.4) (10,226) (0.5)

Interest income, net

(15,198) (0.4) (18,959) (0.6)

Depreciation and amortization 114,566 3.2 116,610 3.6

12 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 2. Management’s Discussion and Analysis