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 Thirty-Nine Weeks Ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Net sales $ 1,290,619 $ 1,208,966 $ 3,596,490 $ 3,363,670 Cost of sales, exclusive of depreciation and amortization 483,670 422,034 1,352,393 1,163,019 Selling expense 459,548 420,990 1,234,841 1,163,565 General and administrative expense 193,402 188,246 543,652 555,941 Other operating (income) loss, net ( 1,022 ) ( 1,586 ) 2,392 ( 3,611 ) Operating income 155,021 179,282 463,212 484,756 Interest expense 550 569 1,831 11,538 Interest income ( 6,491 ) ( 9,302 ) ( 17,029 ) ( 30,497 ) Interest income, net ( 5,941 ) ( 8,733 ) ( 15,198 ) ( 18,959 ) Income before income taxes 160,962 188,015 478,410 503,715 Income tax expense 45,862 54,151 138,183 119,394 Net income 115,100 133,864 340,227 384,321 Less: Net income attributable to noncontrolling interests 2,105 1,885 5,436 5,324 Net income attributable to A&F $ 112,995 $ 131,979 $ 334,791 $ 378,997 Net income per share attributable to A&F Basic $ 2.41 $ 2.59 $ 6.99 $ 7.43 Diluted $ 2.36 $ 2.50 $ 6.83 $ 7.13 Weighted-average shares outstanding Basic 46,842 50,951 47,869 51,030 Diluted 47,881 52,869 49,022 53,141 Other comprehensive income Foreign currency translation adjustments, net of tax $ ( 620 ) $ 84 $ 12,195 $ 1,688 Derivative financial instruments, net of tax 5,418 1,461 ( 6,074 ) 834 Other comprehensive income 4,798 1,545 6,121 2,522 Comprehensive income 119,898 135,409 346,348 386,843 Less: Comprehensive income attributable to noncontrolling interests 2,105 1,885 5,436 5,324 Comprehensive income attributable to A&F $ 117,793 $ 133,524 $ 340,912 $ 381,519 The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Abercrombie & Fitch Co. 3 2025 3Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Condensed Consolidated Balance Sheets (Thousands, except par value amounts) (Unaudited) November 1, 2025 February 1, 2025 Assets Current assets: Cash and equivalents $ 605,783 $ 772,727 Marketable securities 25,255 116,221 Receivables 131,741 105,324 Inventories 730,453 575,005 Other current assets 116,303 104,154 Total current assets 1,609,535 1,673,431 Property and equipment, net 661,646 575,773 Operating lease right-of-use assets 965,919 803,121 Other assets 242,818 247,562 Total assets $ 3,479,918 $ 3,299,887 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 461,528 $ 364,532 Accrued expenses 458,075 504,922 Short-term portion of operating lease liabilities 225,847 211,600 Income taxes payable 17,557 45,890 Total current liabilities 1,163,007 1,126,944 Long-term liabilities: Long-term portion of operating lease liabilities 905,041 740,013 Other liabilities 80,460 81,607 Total long-term liabilities 985,501 821,620 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 412,813 422,912 Retained earnings 3,525,907 3,196,724 Accumulated other comprehensive loss, net of tax (“AOCL”) ( 133,030 ) ( 139,151 ) Treasury stock, at average cost: 57,444 and 53,565 shares as of November 1, 2025 and February 1, 2025, respectively ( 2,489,880 ) ( 2,145,890 ) Total Abercrombie & Fitch Co. stockholders’ equity 1,316,843 1,335,628 Noncontrolling interests 14,567 15,695 Total stockholders’ equity 1,331,410 1,351,323 Total liabilities and stockholders’ equity $ 3,479,918 $ 3,299,887 The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Abercrombie & Fitch Co. 4 2025 3Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Condensed Consolidated Statements of Stockholders’ Equity (Thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended November 1, 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, August 2, 2025 47,067 $ 1,033 $ 404,883 $ 14,949 $ 3,414,033 $ ( 137,828 ) 56,233 $ ( 2,389,866 ) $ 1,307,204 Net income 2,105 112,995 115,100 Purchase of Common Stock (1) ( 1,250 ) 1,250 ( 100,961 ) ( 100,961 ) Share-based compensation issuances and exercises 39 ( 1,177 ) ( 1,121 ) ( 39 ) 947 ( 1,351 ) Share-based compensation expense 9,107 9,107 Derivative financial instruments, net of tax 5,418 5,418 Foreign currency translation adjustments, net of tax ( 620 ) ( 620 ) Distribution to noncontrolling interests, net ( 2,487 ) ( 2,487 ) Ending balance at November 1, 2025 45,856 $ 1,033 $ 412,813 $ 14,567 $ 3,525,907 $ ( 133,030 ) 57,444 $ ( 2,489,880 ) $ 1,331,410 Thirteen Weeks Ended November 2, 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, August 3, 2024 51,069 $ 1,033 $ 408,293 $ 14,624 $ 2,877,969 $ ( 134,991 ) 52,231 $ ( 1,945,778 ) $ 1,221,150 Net income 1,885 131,979 133,864 Purchase of Common Stock ( 720 ) 720 ( 100,056 ) ( 100,056 ) Share-based compensation issuances and exercises 22 ( 1,180 ) ( 284 ) ( 22 ) ( 924 ) ( 2,388 ) Share-based compensation expense 9,527 9,527 Derivative financial instruments, net of tax 1,461 1,461 Foreign currency translation adjustments, net of tax 84 84 Distribution to noncontrolling interests, net ( 3,182 ) ( 3,182 ) Ending balance at November 2, 2024 50,371 $ 1,033 $ 416,640 $ 13,327 $ 3,009,664 $ ( 133,446 ) 52,929 $ ( 2,046,758 ) $ 1,260,460 (1) Includes commissions and excise tax on share repurchases Abercrombie & Fitch Co. 5 2025 3Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Condensed Consolidated Statements of Stockholders’ Equity (Thousands, except per share amounts) (Unaudited) Thirty-Nine Weeks Ended November 1, 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 5,436 334,791 340,227 Purchase of Common Stock (1) ( 4,498 ) 4,498 ( 353,007 ) ( 353,007 ) Share-based compensation issuances and exercises 619 ( 39,590 ) ( 5,608 ) ( 619 ) 9,017 ( 36,181 ) Share-based compensation expense 29,491 29,491 Derivative financial instruments, net of tax ( 6,074 ) ( 6,074 ) Foreign currency translation adjustments, net of tax 12,195 12,195 Distribution to noncontrolling interests, net ( 6,564 ) ( 6,564 ) Ending balance at November 1, 2025 45,856 $ 1,033 $ 412,813 $ 14,567 $ 3,525,907 $ ( 133,030 ) 57,444 $ ( 2,489,880 ) $ 1,331,410 Thirty-Nine Weeks Ended November 2, 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 5,324 378,997 384,321 Purchase of Common Stock ( 923 ) 923 ( 130,056 ) ( 130,056 ) Share-based compensation issuances and exercises 794 ( 35,092 ) ( 12,962 ) ( 794 ) ( 21,559 ) ( 69,613 ) Share-based compensation expense 30,123 30,123 Derivative financial instruments, net of tax 834 834 Foreign currency translation adjustments, net of tax 1,688 1,688 Distribution to noncontrolling interests, net ( 6,824 ) ( 6,824 ) Ending balance at November 2, 2024 50,371 $ 1,033 $ 416,640 $ 13,327 $ 3,009,664 $ ( 133,446 ) 52,929 $ ( 2,046,758 ) $ 1,260,460 (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 3Q Form 10-Q Table of Contents Abercrombie & Fitch Co. Condensed Consolidated Statements of Cash Flows (Thousands) (Unaudited) Thirty-Nine Weeks Ended November 1, 2025 November 2, 2024 Operating activities Net income $ 340,227 $ 384,321 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 114,566 116,610 Amortization of capitalized cloud computing arrangement implementation costs 15,126 11,317 Asset impairment 5,724 7,066 Loss on disposal 2,414 2,585 Provision for (benefit from) deferred income taxes 17,245 ( 9,881 ) Share-based compensation 29,491 30,123 Loss on extinguishment of debt — 1,114 Changes in assets and liabilities: Inventories ( 153,051 ) ( 222,929 ) Accounts payable and accrued expenses 28,717 184,604 Operating lease right-of-use assets and liabilities 10,618 ( 2,194 ) Income taxes ( 28,333 ) ( 19,429 ) Other assets ( 63,940 ) ( 81,740 ) Other liabilities ( 5,804 ) 1,189 Net cash provided by operating activities 313,000 402,756 Investing activities Purchases of marketable securities ( 15,000 ) ( 55,000 ) Proceeds from maturities of marketable securities 105,000 — Purchases of property and equipment ( 185,212 ) ( 132,040 ) Net cash used for investing activities ( 95,212 ) ( 187,040 ) Financing activities Repayment/redemption of senior secured notes — ( 223,331 ) Payment of debt modification costs and fees — ( 3,273 ) Purchases of Common Stock ( 351,224 ) ( 129,807 ) Acquisition of Common Stock for tax withholding obligations ( 36,181 ) ( 69,613 ) Other financing activities ( 7,149 ) ( 6,546 ) Net cash used for financing activities ( 394,554 ) ( 432,570 ) Effect of foreign currency exchange rates on cash 8,930 ( 1,834 ) Net decrease in cash and equivalents, and restricted cash and equivalents ( 167,836 ) ( 218,688 ) 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 $ 612,559 $ 690,997 Supplemental information related to non-cash activities Purchases of property and equipment accrued in accounts payable $ 60,460 $ 57,005 Excise tax liability accrued on share repurchases 3,007 250 Operating lease right-of-use assets additions, net of terminations, impairments and other reductions 345,947 291,289 Supplemental information related to cash activities Cash paid for interest — 9,527 Cash paid for income taxes 152,735 147,733 Cash paid for excise tax on share repurchases 1,224 — Cash received from income tax refunds 746 448 Cash paid for amounts included in measurement of operating lease liabilities 230,898 206,413 The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Abercrombie & Fitch Co. 7 2025 3Q 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 3Q 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 November 1, 2025, and for the thirteen and thirty-nine week periods ended November 1, 2025 and November 2, 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 3Q 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 an 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 updates require 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 updates are 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 impact on the Company’s consolidated financial statements. ASU 2025-06 - Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software The update removes all references to project stages and clarifies that costs may begin to be capitalized once management has authorized the project and it is probable that the project will be completed and the software will be used to perform the function intended. The update specifies disclosure of capitalized internal-use software balance and accumulated amortization at the balance sheet date, the amortization for the period and a general description of the method used in computing amortization. The update is effective for annual periods beginning after December 15, 2027 and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements and accompanying notes 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 November 1, 2025 February 1, 2025 November 2, 2024 February 3, 2024 Cash and equivalents Cash and equivalents $ 605,783 $ 772,727 $ 683,089 $ 900,884 Restricted cash and equivalents Other assets 6,776 7,668 7,908 8,801 Cash and equivalents and restricted cash and equivalents $ 612,559 $ 780,395 $ 690,997 $ 909,685 Abercrombie & Fitch Co. 10 2025 3Q 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 November 1, 2025 and February 1, 2025, $ 61.7 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 for the thirty-nine weeks ended November 1, 2025. 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 November 1, 2025, February 1, 2025, November 2, 2024, and February 3, 2024: (in thousands) November 1, 2025 February 1, 2025 November 2, 2024 February 3, 2024 Gift card liability (1) $ 33,082 $ 45,364 $ 39,096 $ 41,144 Loyalty programs liability 35,895 32,199 30,648 27,937 (1) Includes $ 21.2 million and $ 17.7 million of revenue recognized during the thirty-nine weeks ended November 1, 2025 and November 2, 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 thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Revenue associated with gift card redemptions and gift card breakage $ 25,733 $ 32,680 $ 85,376 $ 96,172 Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs 19,454 16,697 51,774 45,367 Abercrombie & Fitch Co. 11 2025 3Q 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 thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Shares of Common Stock issued 103,300 103,300 103,300 103,300 Weighted-average treasury shares ( 56,458 ) ( 52,349 ) ( 55,431 ) ( 52,270 ) Weighted-average — basic shares 46,842 50,951 47,869 51,030 Dilutive effect of share-based compensation awards 1,039 1,918 1,153 2,111 Weighted-average — diluted shares 47,881 52,869 49,022 53,141 Anti-dilutive shares (1) 584 250 600 329 (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 November 1, 2025 and February 1, 2025: Assets and Liabilities at Fair Value as of November 1, 2025 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1) $ 208,976 $ 23,730 $ — $ 232,706 Derivative instruments (2) — 2,050 — 2,050 Rabbi Trust assets (3) 1,164 55,047 — 56,211 Restricted cash equivalents (1) 3,074 630 — 3,704 Total assets $ 213,214 $ 81,457 $ — $ 294,671 Liabilities: Derivative instruments (2) $ — $ 2,719 $ — $ 2,719 Total liabilities $ — $ 2,719 $ — $ 2,719 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 3Q 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 November 1, 2025 and February 1, 2025: (in thousands) November 1, 2025 February 1, 2025 Property and equipment, at cost $ 2,795,078 $ 2,605,871 Less: Accumulated depreciation and amortization ( 2,133,432 ) ( 2,030,098 ) Property and equipment, net $ 661,646 $ 575,773 Refer to Note 9, “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 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 thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Single lease cost (1) $ 80,059 $ 69,167 $ 226,641 $ 193,310 Variable lease cost (2) 47,994 45,715 142,498 137,081 Operating lease right-of-use asset impairment (3) 1,331 233 2,403 1,043 Sublease income ( 1,064 ) ( 1,003 ) ( 3,100 ) ( 2,973 ) Total operating lease cost $ 128,320 $ 114,112 $ 368,442 $ 328,461 (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 $ 119.4 million as of November 1, 2025. Abercrombie & Fitch Co. 13 2025 3Q Form 10-Q Table of Contents 9. ASSET IMPAIRMENT The following table provides asset impairment charges for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Operating lease right-of-use asset impairment $ 1,331 $ 233 $ 2,403 $ 1,043 Property and equipment asset impairment 940 5,266 2,398 6,023 Intangible asset impairment — — 922 — Total asset impairment $ 2,271 $ 5,499 $ 5,723 $ 7,066 Asset impairment charges for the thirty-nine weeks ended November 1, 2025 and November 2, 2024 related to certain of the Company’s store assets, in the Americas, EMEA and APAC segments. The store impairment charges for the thirty-nine weeks ended November 1, 2025 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 11.4 million, including $ 9.6 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 Company’s consolidated financial statements and disclosures. Impact of valuation allowances During the thirteen and thirty-nine weeks ended November 1, 2025, the Company did not recognize income tax benefits on $ 21.0 million and $ 52.8 million, respectively, of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 3.2 million and $ 8.1 million, respectively. During the thirty-nine weeks ended November 1, 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 November 1, 2025, the Company had foreign net deferred tax assets of approximately $ 40.3 million, including $ 15.5 million and $ 11.4 million in the United Kingdom and China, 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 thirty-nine weeks ended November 2, 2024, the Company did not recognize income tax benefits on $ 7.7 million and $ 22.3 million, respectively, of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 1.2 million and $ 3.4 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 thirty-nine weeks ended November 1, 2025 and November 2, 2024. Abercrombie & Fitch Co. 14 2025 3Q 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 November 1, 2025 or as of February 1, 2025. As of November 1, 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 November 1, 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 November 1, 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 thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Share-based compensation expense $ 9,107 $ 9,527 $ 29,491 $ 30,123 Income tax benefits associated with share-based compensation expense recognized 1,421 1,287 4,306 3,805 The following table provides discrete income tax benefits and charges related to share-based compensation awards during the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Income tax discrete benefits realized for tax deductions related to the issuance of shares $ 841 $ 581 $ 5,679 $ 17,913 The following table provides the amount of employee tax withheld by the Company upon the issuance of shares associated with restricted stock units vesting and the exercise of stock appreciation rights for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Employee tax withheld upon issuance of shares (1) $ 1,351 $ 2,388 $ 36,181 $ 69,613 (1) Classified within financing activities on the Condensed Consolidated Statements of Cash Flows. Abercrombie & Fitch Co. 15 2025 3Q Form 10-Q Table of Contents Restricted stock units The following table provides the summarized activity for restricted stock units for the thirty-nine weeks ended November 1, 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 ( 575,956 ) 40.72 ( 326,867 ) 30.12 ( 174,336 ) 41.38 Forfeited ( 42,409 ) 56.61 ( 2,956 ) 89.06 ( 1,478 ) 109.36 Unvested at November 1, 2025 (1) 979,317 $ 65.27 342,566 $ 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 November 1, 2025: Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Unrecognized compensation cost (in thousands) $ 48,060 $ 9,034 $ 6,016 Remaining weighted-average period cost is expected to be recognized (years) 1.3 0.8 1.0 The following table provides additional information pertaining to restricted stock units for the thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 Service-based restricted stock units: Total grant date fair value of awards granted $ 33,412 $ 29,096 Total grant date fair value of awards vested 23,453 21,679 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 thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirty-Nine Weeks Ended November 1, 2025 November 2, 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 3Q 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 November 1, 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 $ 67,823 British pound 100,978 Canadian dollar 33,660 (1) Amounts reported are the U.S. dollar notional amounts outstanding as of November 1, 2025. As of November 1, 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) British pound $ 9,341 Euro 25,496 (1) Amounts reported are the U.S. Dollar notional amounts outstanding as of November 1, 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 November 1, 2025 and February 1, 2025: (in thousands) Location November 1, 2025 February 1, 2025 Location November 1, 2025 February 1, 2025 Derivatives designated as cash flow hedging instruments Other current assets $ 2,016 $ 4,315 Accrued expenses $ 2,518 $ — Derivatives not designated as hedging instruments Other current assets 34 — Accrued expenses 201 — Total $ 2,050 $ 4,315 $ 2,719 $ — The following table provides information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow hedging instruments for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Gain (loss) recognized in AOCL (1) $ 2,039 $ 1,162 $ ( 10,536 ) $ 1,604 (Loss) gain reclassified from AOCL to cost of sales, exclusive of depreciation and amortization (2) ( 3,561 ) ( 351 ) ( 4,289 ) 659 (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. Abercrombie & Fitch Co. 17 2025 3Q Form 10-Q Table of Contents Substantially all of the unrealized gain will be recognized in costs of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive Income over the next twelve months . The following table provides additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 (Loss) gain, net recognized in other operating (income) loss, net $ ( 205 ) $ 11 $ 479 $ 454 14. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables provide activity in AOCL for the thirteen and thirty-nine weeks ended November 1, 2025: Thirteen Weeks Ended November 1, 2025 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at August 2, 2025 $ ( 131,068 ) $ ( 6,760 ) $ ( 137,828 ) Other comprehensive (loss) income before reclassifications ( 620 ) 2,039 1,419 Reclassified loss from AOCL (1) — 3,561 3,561 Tax effect — ( 182 ) ( 182 ) Other comprehensive (loss) income after reclassifications ( 620 ) 5,418 4,798 Ending balance at November 1, 2025 $ ( 131,688 ) $ ( 1,342 ) $ ( 133,030 ) Thirty-Nine Weeks Ended November 1, 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 12,195 ( 10,536 ) 1,659 Reclassified loss from AOCL (1) — 4,289 4,289 Tax effect — 173 173 Other comprehensive income (loss) after reclassifications 12,195 ( 6,074 ) 6,121 Ending balance at November 1, 2025 $ ( 131,688 ) $ ( 1,342 ) $ ( 133,030 ) (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 thirty-nine weeks ended November 2, 2024: Thirteen Weeks Ended November 2, 2024 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at August 3, 2024 $ ( 134,928 ) $ ( 63 ) $ ( 134,991 ) Other comprehensive income before reclassifications 84 1,162 1,246 Reclassified loss from AOCL (1) — 351 351 Tax effect — ( 52 ) ( 52 ) Other comprehensive income after reclassifications 84 1,461 1,545 Ending balance at November 2, 2024 $ ( 134,844 ) $ 1,398 $ ( 133,446 ) Thirty-Nine Weeks Ended November 2, 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 1,688 1,604 3,292 Reclassified gain from AOCL (1) — ( 659 ) ( 659 ) Tax effect — ( 111 ) ( 111 ) Other comprehensive income after reclassifications 1,688 834 2,522 Ending balance at November 2, 2024 $ ( 134,844 ) $ 1,398 $ ( 133,446 ) (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 3Q 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 November 1, 2025, February 1, 2025 and November 2, 2024, and for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended November 1, 2025 (in thousands) Americas (1) EMEA APAC Total Net sales $ 1,057,448 $ 194,510 $ 38,661 $ 1,290,619 Cost of sales, exclusive of depreciation and amortization 396,031 72,636 15,003 483,670 Store occupancy (2) 93,558 30,779 10,471 134,808 Fulfillment (2) 95,099 21,406 4,616 121,121 Other expense (3) 184,174 48,205 14,877 247,256 Segment income (loss) $ 288,586 $ 21,484 $ ( 6,306 ) $ 303,764 Operating loss not attributed to segments: Corporate and other unallocated expenses (4) ( 148,743 ) Operating income $ 155,021 Interest income, net ( 5,941 ) Income before income taxes $ 160,962 Depreciation and amortization $ 21,762 $ 6,188 $ 1,864 $ 29,814 Depreciation and amortization not attributed to segments 8,752 Total depreciation and amortization $ 38,566 Capital expenditures $ 41,111 $ 13,827 $ 3,923 $ 58,861 Capital expenditures not attributed to segments 9,408 Total capital expenditures $ 68,269 Abercrombie & Fitch Co. 19 2025 3Q Form 10-Q Table of Contents Thirteen Weeks Ended November 2, 2024 (in thousands) Americas (1) EMEA APAC Total Net sales $ 986,449 $ 181,592 $ 40,925 $ 1,208,966 Cost of sales, exclusive of depreciation and amortization 342,077 66,215 13,742 422,034 Store occupancy (2) 82,337 31,129 11,416 124,882 Fulfillment (2) 96,930 20,292 5,045 122,267 Other expense (3) 160,563 42,248 14,903 217,714 Segment income (loss) $ 304,542 $ 21,708 $ ( 4,181 ) $ 322,069 Operating loss not attributed to segments: Corporate and other unallocated expenses (4) ( 142,787 ) Operating income $ 179,282 Interest income, net ( 8,733 ) Income before income taxes $ 188,015 Depreciation and amortization $ 23,181 $ 6,142 $ 2,177 $ 31,500 Depreciation and amortization not attributed to segments 8,066 Total depreciation and amortization $ 39,566 Capital expenditures $ 28,788 $ 4,059 $ 5,231 $ 38,078 Capital expenditures not attributed to segments 12,313 Total capital expenditures $ 50,391 (1) Includes the U.S., Canada, and Latin America. Net sales in the U.S. were $ 1.0 billion and $ 0.9 billion for the thirteen weeks ended November 1, 2025 and November 2, 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. Thirty-Nine Weeks Ended November 1, 2025 (in thousands) Americas (1) EMEA APAC Total Net sales $ 2,906,452 $ 576,756 $ 113,282 $ 3,596,490 Cost of sales, exclusive of depreciation and amortization 1,086,523 223,634 42,236 1,352,393 Store occupancy (2) 268,614 89,859 33,078 391,551 Fulfillment (2) 248,853 67,749 14,450 331,052 Other expense (3) 467,087 133,466 40,201 640,754 Segment income (loss) $ 835,375 $ 62,048 $ ( 16,683 ) $ 880,740 Operating loss not attributed to segments: Corporate and other unallocated expenses (4) ( 417,528 ) Operating income $ 463,212 Interest income, net ( 15,198 ) Income before income taxes $ 478,410 Depreciation and amortization $ 65,021 $ 17,696 $ 5,731 $ 88,448 Depreciation and amortization not attributed to segments 26,118 Total depreciation and amortization $ 114,566 Capital expenditures $ 113,107 $ 30,733 $ 12,784 $ 156,624 Capital expenditures not attributed to segments 28,588 Total capital expenditures $ 185,212 Abercrombie & Fitch Co. 20 2025 3Q Form 10-Q Table of Contents Thirty-Nine Weeks Ended November 2, 2024 (in thousands) Americas (1) EMEA APAC Total Net sales $ 2,707,794 $ 546,052 $ 109,824 $ 3,363,670 Cost of sales, exclusive of depreciation and amortization 929,867 195,891 37,261 1,163,019 Store occupancy (2) 243,066 86,724 26,875 356,665 Fulfillment (2) 260,742 57,650 13,054 331,446 Other expense (3) 442,110 121,538 40,382 604,030 Segment income (loss) $ 832,009 $ 84,249 $ ( 7,748 ) $ 908,510 Operating loss not attributed to segments: Corporate and other unallocated expenses (4) ( 423,754 ) Operating income $ 484,756 Interest income, net ( 18,959 ) Income before income taxes $ 503,715 Depreciation and amortization $ 64,258 $ 19,560 $ 6,113 $ 89,931 Depreciation and amortization not attributed to segments 26,679 Total depreciation and amortization $ 116,610 Capital expenditures $ 74,209 $ 9,951 $ 10,375 $ 94,535 Capital expenditures not attributed to segments 37,505 Total capital expenditures $ 132,040 (1) Includes the U.S., Canada, and Latin America. Net sales in the U.S. were $2.8 billion and $2.6 billion for the thirty-nine weeks ended November 1, 2025 and November 2, 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) November 1, 2025 February 1, 2025 November 2, 2024 Inventories Americas $ 596,180 $ 463,148 $ 569,713 EMEA 106,225 88,728 98,842 APAC 28,048 23,129 24,041 Total inventories $ 730,453 $ 575,005 $ 692,596 Assets not attributed to segments 2,749,465 2,724,882 2,577,276 Total assets $ 3,479,918 $ 3,299,887 $ 3,269,872 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 November 1, 2025, February 1, 2025 and November 2, 2024 were as follows: (in thousands) November 1, 2025 February 1, 2025 November 2, 2024 Americas (1) (2) $ 1,152,915 $ 991,673 $ 1,011,067 EMEA (3) 366,759 292,285 278,878 APAC 125,782 114,388 98,459 Total $ 1,645,456 $ 1,398,346 $ 1,388,404 (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 $ 982 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively. (2) Includes intellectual property of $ 2.9 million, $ 2.9 million, and $ 2.9 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively. (3) Includes intellectual property of $ 15.0 million, $ 16.6 million, and $ 16.8 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively. Brand Information The following table provides additional disaggregated revenue information, which is categorized by brand, for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Abercrombie $ 617,345 $ 629,835 $ 1,717,160 $ 1,783,764 Hollister 673,274 579,131 1,879,330 1,579,906 Total $ 1,290,619 $ 1,208,966 $ 3,596,490 $ 3,363,670 Abercrombie & Fitch Co. 21 2025 3Q Form 10-Q Table of Contents