What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-26 compared with 2025-03-31 · 275 added, 312 removed, 1058 unchanged (36% of the section changed)

1 unchanged sentence

Abercrombie & Fitch Co.

Consolidated Statements of Operations and Comprehensive Income (Loss)

Consolidated Statements of Operations and Comprehensive Income

(Thousands, except per share amounts)

6 unchanged sentences

725,471 750,485 681,176

Other operating income, net ( 6,632 ) ( 5,873 ) ( 2,674 )

Other operating loss (income), net 3,161 ( 6,632 ) ( 5,873 )

Operating income 699,143 740,820 484,671

15 unchanged sentences

Diluted 48,476 52,971 52,726

Other comprehensive (loss) income

Other comprehensive income (loss)

Foreign currency translation, net of tax $ 20,348 $ ( 7,351 ) $ ( 3,879 )

1 unchanged sentence

( 7,365 ) 4,168 5,438

Other comprehensive (loss) income ( 3,183 ) 1,559 ( 22,821 )

Comprehensive income (loss) 570,833 336,972 ( 12,436 )

Other comprehensive income (loss) 12,983 ( 3,183 ) 1,559

Comprehensive income 527,978 570,833 336,972

Comprehensive income attributable to noncontrolling interests 8,074 7,793 7,290

Comprehensive income (loss) attributable to A&F $ 563,040 $ 329,682 $ ( 20,005 )

Comprehensive income attributable to A&F $ 519,904 $ 563,040 $ 329,682

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

4 unchanged sentences

(Thousands, except par value amounts)

February 1, 2025 February 3, 2024

January 31, 2026 February 1, 2025

Current assets:

1 unchanged sentence

Marketable securities

25,036 116,221

Receivables 146,757 105,324

15 unchanged sentences

Long-term portion of operating lease liabilities 926,830 740,013

Long-term portion of borrowings, net — 222,119

Other liabilities 88,633 81,607

7 unchanged sentences

Treasury stock, at average cost:

53,565 and 52,800 shares at February 1, 2025 and February 3, 2024, respectively

58,295 and 53,565 shares at January 31, 2026 and February 1, 2025, respectively

( 2,590,446 ) ( 2,145,890 )

19 unchanged sentences

Net income — — — 7,290 328,123 — — — 335,413

Purchase of common stock ( 4,770 ) — — — — — 4,770 ( 125,775 ) ( 125,775 )

Share-based compensation issuances and exercises 1,498 — ( 34,768 ) — ( 53,309 ) — ( 1,498 ) 58,592 ( 29,485 )

4 unchanged sentences

— — — ( 4,191 ) — — — — ( 4,191 )

Balance, January 28, 2023 49,002 $ 1,033 $ 416,255 $ 11,728 $ 2,368,815 $ ( 137,527 ) 54,298 $ ( 1,953,735 ) $ 706,569

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 — — — 7,793 566,223 — — — 574,016

Purchase of common stock (1)

( 1,615 ) — — — — — 1,615 ( 231,031 ) ( 231,031 )

Share-based compensation issuances and exercises 850 — ( 37,364 ) — ( 13,128 ) — ( 850 ) ( 19,716 ) ( 70,208 )

14 unchanged sentences

— — — ( 7,253 ) — — — — ( 7,253 )

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

(1) Includes excise tax on share repurchases

Balance, January 31, 2026 45,005 $ 1,033 $ 421,662 $ 16,516 $ 3,697,814 $ ( 126,168 ) 58,295 $ ( 2,590,446 ) $ 1,420,411

(1) Includes commissions and excise tax on share repurchases

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

6 unchanged sentences

Net income $ 514,995 $ 574,016 $ 335,413

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

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

Depreciation and amortization 155,021 153,773 141,104

2 unchanged sentences

Loss on disposal 3,218 3,440 6,408

(Benefit) provision for deferred income taxes ( 12,278 ) ( 4,743 ) 11,500

Provision (benefit) for deferred income taxes 41,378 ( 12,278 ) ( 4,743 )

Share-based compensation 39,048 38,667 40,122

Loss (gain) on extinguishment of debt 1,114 1,975 ( 52 )

Loss on extinguishment of debt — 1,114 1,975

Changes in assets and liabilities

5 unchanged sentences

Other liabilities ( 3,876 ) ( 13,418 ) ( 6,897 )

Net cash provided by (used for) operating activities 710,376 653,422 ( 2,343 )

Net cash provided by operating activities 619,142 710,376 653,422

Investing activities

2 unchanged sentences

Proceeds from maturities of marketable securities

114,800 24,800 —

Purchases of property and equipment ( 240,774 ) ( 182,903 ) ( 157,797 )

Proceeds from the sale of property and equipment — — 615

Withdrawal of funds from Rabbi Trust assets — — 12,000

Net cash used for investing activities ( 150,774 ) ( 297,703 ) ( 157,182 )

2 unchanged sentences

— ( 223,331 ) ( 77,972 )

Payment of debt modification costs and fees

( 3,291 ) ( 180 ) ( 181 )

Purchases of common stock ( 451,224 ) ( 229,807 ) —

11 unchanged sentences

Excise tax liability accrued on share repurchases

4,000 1,224 —

Operating lease right-of-use assets additions, net of terminations, impairments and other reductions 438,776 365,813 155,184

2 unchanged sentences

Cash paid for income taxes 191,051 217,654 120,448

Cash paid for excise tax on share repurchases 1,224 — —

Cash received from income tax refunds 1,265 502 1,843

8 unchanged sentences

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INTERCHANGE FEE SETTLEMENT

REVENUE RECOGNITION

8 unchanged sentences

CONTINGENCIES

SUBSEQUENT EVEN TS

Abercrombie & Fitch Co.

9 unchanged sentences

and Asia-Pacific (“APAC”).

Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company’s segments, and therefore are included as a reconciling item between segment and total operating income (loss).

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.

3 unchanged sentences

The accompanying 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 an Emirati business venture and in a Kuwaiti business venture with Majid al Futtaim Lifestyle L.L.C.

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”).

1 unchanged sentence

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 Consolidated Statements of Operations and Comprehensive Income (Loss) and the NCI portion of stockholders equity presented as NCI on the Consolidated Balance Sheets.

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 Consolidated Statements of Operations and Comprehensive Income and the NCI portion of stockholders’ equity presented as NCI on the Consolidated Balance Sheets.

The Company’s fiscal year ends on the Saturday closest to January 31.

4 unchanged sentences

Fiscal 2022 January 28, 2023 52

Fiscal 2023 February 3, 2024 53

1 unchanged sentence

Fiscal 2025 January 31, 2026 52

Fiscal 2026 January 30, 2027 52

Use of estimates

6 unchanged sentences

Abercrombie & Fitch Co.

Reclassifications

In prior periods, the Company included stores and distribution expense and marketing, general and administrative expense as individual expense categories on the Consolidated Statements of Operations and Comprehensive Income (Loss).

Stores & distribution expense was recaptioned as selling expense, while marketing, general and administrative expense was recaptioned as general and administrative expense.

In conjunction with these changes, all marketing expenses, including amounts previously presented in marketing, general and administrative expense, were moved into selling expense, while certain management and IT costs were moved out of stores and distribution expense and into general and administrative expense.

The net changes associated with these reclassifications results in selling expense that is $ 38.3 million and $ 35.0 million lower than the stores and distribution expense that was previously presented for Fiscal 2023 and Fiscal 2022, respectively, and in general and administrative expense that is $ 38.3 million and $ 35.0 million higher than the marketing, general, and administrative expense that was previously presented for Fiscal 2023 and Fiscal 2022, respectively.

Refer to selling expense and general and administrative expense below for details regarding the composition of these expenses categories.

There were no changes to operating income (loss) or net income (loss).

Prior period amounts have been reclassified to conform to the current fiscal year’s presentation.

Cash and equivalents

A summary of cash and equivalents on the Consolidated Balance Sheets follows:

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

(in thousands) January 31, 2026 February 1, 2025

$ 398,663 $ 467,642

7 unchanged sentences

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

(in thousands) Location February 1, 2025 February 3, 2024 January 28, 2023

(in thousands) Location January 31, 2026 February 1, 2025 February 3, 2024

Cash and equivalents Cash and equivalents $ 759,540 $ 772,727 $ 900,884

16 unchanged sentences

Income tax receivables represent refunds of certain tax payments along with net operating loss and credit carryback claims for which the Company expects to receive refunds within the next 12 months.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

Inventories on the Consolidated Balance Sheets are valued at the lower of cost and net realizable value on a weighted-average cost basis.

The Company reduces the carrying value of inventory through a lower of cost and net realizable value adjustment, the impact of which is reflected in cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income (Loss).

The lower of cost and net realizable value adjustment is based on the Company’s consideration of multiple factors and assumptions including demand forecasts, current sales volumes, expected sell-off activity, composition and aging of inventory, historical recoverability experience and risk of obsolescence from changes in economic conditions or customer preferences.

1 unchanged sentence

The Company performs physical inventories on a periodic basis and adjusts the gross inventory balance and shrink estimate accordingly.

Refer to Note 6, “ INVENTORIES .”

The Company’s global sourcing of merchandise is generally negotiated, contracted, and settled in U.S.

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

Other current assets

12 unchanged sentences

Leasehold improvements are amortized over either their respective lease terms or their service lives, whichever is shorter.

The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income on the Consolidated Statements of Operations and Comprehensive Income (Loss).

Maintenance and repairs are charged to expense as incurred.

7 unchanged sentences

As the rates implicit in the Company’s leases are not readily determinable, the Company uses its incremental borrowing rate, based on the local economic environment and the duration of the lease term, for the initial measurement of the operating lease right-of-use asset and liability.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

The measurement of operating lease right-of-use assets and liabilities includes amounts related to:

6 unchanged sentences

• Costs expected to be incurred to return a leased asset to its original condition, also referred to as asset retirement obligations, which are classified within other liabilities on the Consolidated Balance Sheets;

• Variable payments related to operating lease components, such as contingent rent payments made by the Company based on performance, the expense of which is recognized in the period incurred on the Consolidated Statements of Operations and Comprehensive Income (Loss);

• Variable payments related to nonlease components, such as taxes, insurance, and maintenance costs, the expense of which is recognized in the period incurred in the Consolidated Statements of Operations and Comprehensive Income (Loss);

• Leases not related to Company-operated retail stores with an initial term of 12 months or less, the expense of which is recognized in the period incurred in the Consolidated Statements of Operations and Comprehensive Income (Loss).

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

Certain of the Company’s operating leases include options to extend the lease or to terminate the lease.

1 unchanged sentence

Generally, the Company’s options to extend its operating leases are at the Company’s sole discretion and at the time of lease commencement are not reasonably certain of being exercised.

There may be instances in which a lease is being renewed on a month-to-month basis and, in these instances, the Company will recognize lease expense in the period incurred in the Consolidated Statements of Operations and Comprehensive Income (Loss) until a new agreement has been executed.

Upon the signing of the renewal agreement, the Company recognizes an asset for the right to use the leased asset and a liability based on the present value of remaining lease payments over the lease term.

1 unchanged sentence

Amortization and interest expense related to previously impaired operating lease right-of-use assets are calculated on a front-loaded pattern.

Depending on the nature of the operating lease, amortization and interest expense are primarily recorded within selling expense, or general and administrative expense, on the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company’s operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

7 unchanged sentences

The key assumption used in developing these projected cash flows used in the recoverability test is estimated sales growth rate.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

If the sum of the estimated future undiscounted cash flows attributable to an asset group is less than its carrying amount, and it is determined that the carrying amount of the asset group is not recoverable, management determines if there is an impairment loss by comparing the carrying amount of the asset group to its fair value.

Fair value of an asset group measured on a non-recurring basis is based on the highest and best use of the asset group, often using a discounted cash flow model that utilizes Level 3 fair value inputs.

The key assumptions used in the Company’s fair value analyses are estimated sales growth rate and comparable market rents.

The key assumption used in the Company’s fair value analysis is comparable market rents.

An impairment loss is recognized based on the excess of the carrying amount of the asset group over its fair value.

1 unchanged sentence

Other assets on the Consolidated Balance Sheets consist primarily of the Company’s trust-owned life insurance policies held in the irrevocable rabbi trust (the “Rabbi Trust”), deferred tax assets, long-term deposits, intellectual property, long-term restricted cash and equivalents, long-term supplies, certain costs incurred to develop internal-use computer software during the application development stage and various other assets.

The Company defers costs incurred with the implementation of a cloud computing arrangement (“CCA”) that is a service contract.

The deferred implementation costs of cloud computing arrangements are amortized on a straight-line basis over the term of the cloud computing arrangement, generally ranging from 1 to 5 years, in general and administrative expenses on Consolidated Statements of Operations and Comprehensive Income (Loss).

The eligible implementation costs incurred of a cloud computing arrangement are included in other assets on the Consolidated Balance Sheets, and in operating cash flows of the Consolidated statements of cash flows.

The deferred CCA implementation costs were $ 73.3 million and $ 49.9 million, net of accumulated amortization of $ 25.5 million and $ 12.2 million for the years ended February 1, 2025 and February 3, 2024, respectively.

The Rabbi Trust includes amounts, restricted in their use, to meet funding obligations to participants in the Abercrombie & Fitch Co.

1 unchanged sentence

Nonqualified Savings and Supplemental Retirement Plan II and the Supplemental Executive Retirement Plan.

The Rabbi Trust assets primarily consist of trust-owned life insurance policies which are recorded at cash surrender value and are included in other assets on the Consolidated Balance Sheets.

The change in cash surrender value of the life insurance policies in the Rabbi Trust is recorded in interest expense, net on the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Rabbi Trust assets are included in other assets on the Consolidated Balance Sheets.

The change in cash surrender value of the life insurance policies in the Rabbi Trust is recorded in interest expense, net on the Consolidated Statements of Operations and Comprehensive Income.

The Company defers costs incurred with the implementation of a cloud computing arrangement (“CCA”) that is a service contract.

The eligible implementation costs incurred of a cloud

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

computing arrangement are included in other assets on the Consolidated Balance Sheets, and in operating cash flows of the Consolidated statements of cash flows.

The deferred CCA implementation costs were $ 103.2 million and $ 73.3 million with accumulated amortization of $ 42.4 million and $ 25.5 million for the years ended January 31, 2026 and February 1, 2025, respectively.

Refer to Note 6, “ INVESTMENTS .”

9 unchanged sentences

The agreement with the financial institution does not require the Company to provide assets pledged as security or other forms of guarantees for the SCF program.

As of February 1, 2025 and February 3, 2024, $ 88.4 million and $ 72.4 million of SCF program liabilities were recorded in accounts payable in the Consolidated Balance Sheets, respectively, and reflected as a cash flow from operating activities in the Consolidated Statements of Cash Flows when settled.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

As of January 31, 2026 and February 1, 2025, $ 75.3 million and $ 88.4 million of SCF program liabilities were recorded in accounts payable in the Consolidated Balance Sheets, respectively, and reflected as a cash flow from operating activities in the Consolidated Statements of Cash Flows when settled.

The following table provides activity in the SCF program for Fiscal 2025:

16 unchanged sentences

The Company’s effective tax rate includes the impact of reserve provisions and changes to reserves on uncertain tax positions that are not more likely than not to be sustained upon examination as well as related interest and penalties.

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

A number of years may elapse before a particular matter, for which the Company has established a reserve, is audited and finally resolved.

3 unchanged sentences

Favorable resolution would be recognized as a reduction to the Company’s effective tax rate in the period of resolution.

The Company recognizes accrued interest and penalties related to uncertain tax positions as a component of income tax expense on the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company recognizes accrued interest and penalties related to uncertain tax positions as a component of income tax expense on the Consolidated Statements of Operations and Comprehensive Income.

Refer to Note 12, “ INCOME TAXES .”

7 unchanged sentences

Subsequently, assets and liabilities associated with foreign currency transactions are remeasured into the entity’s functional currency using historical exchange rates when remeasuring nonmonetary assets and liabilities and current exchange rates when remeasuring monetary assets and liabilities.

Gains and losses resulting from the remeasurement of monetary assets and liabilities are included in other operating income, net, whereas translation adjustments and gains and losses associated with measuring inter-company loans of a long-term investment nature are reported as an element of other comprehensive income (loss).

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

Derivative instruments

6 unchanged sentences

For derivative instruments that either do not qualify for hedge accounting or are not designated as hedges, all changes in the fair value of the derivative instrument are recognized in earnings.

For qualifying cash flow hedges, the change in the fair value of the derivative instrument is recorded as a component of other comprehensive income (loss) (“OCI”) and recognized in earnings when the hedged cash flows affect earnings.

For qualifying cash flow hedges, the change in the fair value of the derivative instrument is recorded as a component of OCI and recognized in earnings when the hedged cash flows affect earnings.

If the cash flow hedge relationship is terminated, the derivative instrument gains or losses that are deferred in OCI will be recognized in earnings when the hedged cash flows occur.

7 unchanged sentences

The conversion of the inventory to cost of sales, exclusive of depreciation and amortization, will result in the reclassification of related derivative gains and losses that are reported in AOCL on the Consolidated Balance Sheets into earnings.

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

The Company also uses foreign currency exchange forward contracts to hedge certain foreign-currency-denominated net monetary assets and liabilities, such as cash balances, receivables and payables.

6 unchanged sentences

A summary of the Company’s Class A Common Stock, $ 0.01 par value, and Class B Common Stock, $ 0.01 par value, follows:

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

(in thousands) January 31, 2026 February 1, 2025

Class A Common Stock

4 unchanged sentences

Shares authorized 106,400 106,400

(1) No shares were issued or outstanding as of each of February 1, 2025 and February 3, 2024 .

(1) No shares were issued or outstanding as of each of January 31, 2026 and February 1, 2025 .

Holders of Class A Common Stock generally have identical rights to holders of Class B Common Stock, except holders of Class A Common Stock are entitled to one vote per share while holders of Class B Common Stock are entitled to three votes per share on all matters submitted to a vote of stockholders.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

Revenue recognition

12 unchanged sentences

Revenue from the Company’s franchise and license arrangements, primarily royalties earned upon the sale of merchandise, is generally recognized at the time merchandise is sold to the franchisees’ retail customers or to the licensees’ wholesale customers.

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

The Company does not include tax amounts collected from customers on behalf of third parties, including sales and indirect taxes, in net sales.

All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income (Loss).

All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income.

For a discussion of the disaggregation of revenue, refer to Note 18, “ SEGMENT REPORTING .

Cost of sales, exclusive of depreciation and amortization

Cost of sales, exclusive of depreciation and amortization on the Consolidated Statements of Operations and Comprehensive Income (Loss), primarily consists of cost incurred to ready inventory for sale, including product costs, freight, and import costs, as well as provisions for reserves for shrink and lower of cost and net realizable value.

Gains and losses associated with the effective portion of designated foreign currency exchange forward contracts related to the hedging of intercompany inventory transactions are also recognized in cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income (Loss).

Cost of sales, exclusive of depreciation and amortization on the Consolidated Statements of Operations and Comprehensive Income, primarily consists of cost incurred to ready inventory for sale, including product costs, freight, and import costs, as well as provisions for reserves for shrink and lower of cost and net realizable value.

The Company’s cost of sales, exclusive of depreciation and amortization, and consequently gross profit, may not be comparable to those of other retailers, as inclusion of certain costs vary across the industry.

1 unchanged sentence

Selling expense

Selling expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) is comprised of stores, fulfillment and marketing expenses.

Selling expense on the Consolidated Statements of Operations and Comprehensive Income is comprised of stores, fulfillment and marketing expenses.

Stores expenses include non-management employee compensation;

9 unchanged sentences

Marketing expenses include costs associated with the Company’s marketing and advertising activities.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

A summary of shipping and handling costs, which includes costs incurred to store, move and prepare product for shipment and costs incurred to physically move product to our customers across channels, follows:

9 unchanged sentences

General and administrative expense

General and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) primarily consists of:

General and administrative expense on the Consolidated Statements of Operations and Comprehensive Income primarily consists of:

home office and support functions including;

6 unchanged sentences

and travel expenses.

Other Operating Income, Net

Other operating income, net on the Consolidated Statements of Operations and Comprehensive Income (Loss) primarily consists of gains and losses resulting from foreign-currency-denominated transactions.

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

Other Operating Loss (Income), Net

Other operating loss (income), net on the Consolidated Statements of Operations and Comprehensive Income primarily consists of gains and losses resulting from foreign-currency-denominated transactions.

A summary of foreign-currency-denominated transaction gains (losses), including those related to derivative instruments, follows:

(in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023

Foreign-currency-denominated transaction gains (losses) $ 2,665 $ 1,936 $ ( 1,626 )

Foreign-currency-denominated transaction (losses) gains $ ( 7,325 ) $ 2,665 $ 1,936

Interest expense and interest income

2 unchanged sentences

Share-based compensation

The Company issues shares of Class A Common Stock, $ 0.01 par value (the “Common Stock”) from treasury stock upon exercise of stock appreciation rights and vesting of restricted stock units, including those converted from performance share awards.

As of February 1, 2025, the Company had sufficient treasury stock available to settle restricted stock units and stock appreciation rights outstanding.

Settlement of stock awards in Common Stock also requires that the Company have sufficient shares available in stockholder-approved plans at the applicable time.

The Company issues shares of Class A Common Stock, $ 0.01 par value (the “Common Stock”) from treasury stock upon vesting of restricted stock units, including those converted from performance share awards.

As of January 31, 2026, the Company had sufficient treasury stock available to settle restricted stock units outstanding.

Settlement of stock awards in Common Stock also requires that the Company have sufficient shares available under stockholder-approved plans at the applicable time.

In the event there are not sufficient shares of Common Stock available to be issued under the Abercrombie & Fitch Co.

3 unchanged sentences

As long as the awards are required to be classified as a liability, the change in fair value would be recognized in current period expense based on the requisite service period rendered.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

Fair value of both service-based and performance-based restricted stock units is calculated using the market price of the underlying Common Stock on the date of grant reduced for anticipated dividend payments on unvested shares.

3 unchanged sentences

For awards with performance-based or market-based vesting requirements, the number of shares that ultimately vest can vary from 0% to 200% of target depending on the level of achievement of performance criteria.

The Company estimates the fair value of stock appreciation rights using the Black-Scholes option-pricing model, which requires the Company to estimate the expected term of the stock appreciation rights and expected future stock price volatility over the expected term.

Estimates of expected terms, which represent the expected periods of time the Company believes stock appreciation rights will be outstanding, are based on historical experience.

Estimates of expected future stock price volatility are based on the volatility of the Common Stock price for the most recent historical period equal to the expected term of the stock appreciation rights, as appropriate.

The Company calculates the volatility as the annualized standard deviation of the differences in the natural logarithms of the weekly closing price of the Common Stock, adjusted for stock splits and dividends.

Service-based restricted stock units are expensed on a straight-line basis over the award’s requisite service period.

2 unchanged sentences

Market-based restricted stock units without graded vesting features are expensed on a straight-line basis over the award’s requisite service period.

Compensation expense for stock appreciation rights is recognized on a straight-line basis over the award’s requisite service period.

The Company adjusts share-based compensation expense on a quarterly basis for actual forfeitures.

For awards that are expected to result in a tax deduction, a deferred tax asset is recorded in the period in which share-based compensation expense is recognized.

A current tax deduction arises upon the issuance of restricted stock units and performance share awards or the exercise of stock options and stock appreciation rights and is principally measured at the award’s intrinsic value.

A current tax deduction arises upon the issuance of restricted stock units and performance share awards and is principally measured at the award’s intrinsic value.

If the tax deduction differs from the recorded deferred tax asset, the excess tax benefit or deficit associated with the tax deduction is recognized within income tax expense.

Refer to Note 14, “ SHARE-BASED COMPENSATION .”

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

Net Income per share attributable to A&F

9 unchanged sentences

Anti-dilutive shares (1)

220 541 2,233

(1) Reflects the total number of shares related to outstanding share-based compensation awards that have been excluded from the computation of net income (loss) per diluted share because the impact would have been anti-dilutive.

Unvested contingently issuable shares related to restricted stock units with performance-based and market-based vesting conditions can achieve up to 200% of their target vesting amount and are reflected at the maximum vesting amount less any dilutive portion.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

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 not expected to have a material impact on the Company’s consolidated financial statements.

The following table provides a brief description of certain recent accounting pronouncements that the Company has adopted or that could affect the Company’s financial statements.

The following table summarizes recently issued accounting standards that are applicable to the Company.

Certain other standards issued by the Financial Accounting Standards Board have been excluded because they are not applicable or are not expected to have a material impact on the Company’s consolidated financial statements

Accounting Standards Update (ASU) Description Date of adoption Effect on the financial statements or other significant matters

Standards adopted

ASU 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50):

Disclosure of Supplier Finance Program Obligations

The update relates to disclosure requirements for buyers in supplier finance programs.

The amendments in the update require that a buyer disclose qualitative and quantitative information about their supplier finance programs.

Interim and annual requirements include disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a roll-forward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs.

This update is effective for annual periods beginning after December 15, 2022, and interim periods within those fiscal years, except for the requirement to disclose roll-forward information, which is effective for fiscal years beginning after December 15, 2023.

January 29, 2023 The Company adopted this guidance by enhancing supply chain financing disclosures to include roll-forward activity.

Refer to Note 2, “ S UMMARY OF SIGNIFICANT ACCOUNTING PO LICIES .

ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures The update modifies the disclosure/presentation requirements of reportable segments.

The amendments in the update require the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit and loss.

The amendments also require disclosure of all other segment items by reportable segment and a description of its composition.

Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

February 1, 2025

The Company adopted this guidance by enhancing segment reporting footnote disclosures to include significant segment expenses.

Refer to Note 17, “ SEGMENT REPORTING .

Standards not yet adopted

ASU 2023-09, Income Taxes (Topic 740):

4 unchanged sentences

Early adoption is permitted.

Other than the new disclosure requirements, the adoption of this guidance will not have a significant impact on the Company's consolidated financial statements.

January 31, 2026

The Company adopted this guidance on a retrospective basis by enhancing income tax footnote disclosures to include the effective tax rate reconciliation and income taxes paid.

Refer to Note 12, “ INCOME TAXES .”

Standards not yet adopted

ASU 2024-03 - Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

4 unchanged sentences

The amendments in this update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses.

The update is effective for fiscal years beginning after December 15, 2026 and interim period periods within annual reporting periods beginning after December 15, 2027.

The update is effective for fiscal years beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

Other than the new disclosure requirements, the adoption of this guidance will not have a significant impact on the Company’s consolidated financial statements.

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.

Abercrombie & Fitch Co.

1 unchanged sentence

Abercrombie & Fitch Co.

INTERCHANGE FEE SETTLEMENT

Litigation settlement

In 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 Consolidated Statements of Operations and Comprehensive Income for Fiscal 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.

REVENUE RECOGNITION

Disaggregation of revenue

All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income (Loss).

All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income.

For information regarding the disaggregation of revenue, refer to Note 18, “ SEGMENT REPORTING .

Contract liabilities

The following table details certain contract liabilities representing unearned revenue as of February 1, 2025, February 3, 2024 and January 28, 2023:

(in thousands) February 1, 2025 February 3, 2024 January 28, 2023

The following table details certain contract liabilities representing unearned revenue as of January 31, 2026, February 1, 2025 and February 3, 2024:

(in thousands) January 31, 2026 February 1, 2025 February 3, 2024

Gift card liability (1)

1 unchanged sentence

Loyalty programs liability 36,878 32,199 27,937

(1) Includes $ 19.8 million and $ 20.0 million of revenue recognized during Fiscal 2024 and Fiscal 2023, respectively, that was included in the gift card liability at the beginning of February 3, 2024 and January 28, 2023, respectively.

(1) Includes $ 24.2 million,$ 19.8 million and $20.0 million of revenue recognized during Fiscal 2025, Fiscal 2024 and Fiscal 2023 , 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 Fiscal 2025, Fiscal 2024, and Fiscal 2023:

16 unchanged sentences

T he three levels of the hierarchy and the distribution of the Company’s assets and liabilities that are measured at fair value on a recurring basis, were as follows:

Assets and Liabilities at Fair Value as of February 1, 2025

Assets and Liabilities at Fair Value as of January 31, 2026

(in thousands) Level 1 Level 2 Level 3 Total

2 unchanged sentences

Derivative instruments (2)

— 4,315 — 4,315

Rabbi Trust assets (3)

3 unchanged sentences

Total assets $ 346,021 $ 75,531 $ — $ 421,552

Derivative instruments (2)

$ — $ 2,336 $ — $ 2,336

Total liabilities measured at fair value $ — $ 2,336 $ — $ 2,336

Assets and Liabilities at Fair Value as of February 1, 2025

8 unchanged sentences

3,070 1,496 — 4,566

Total assets $ 354,620 $ 82,008 $ — $ 436,628

Derivative instruments (2)

$ — $ 539 $ — $ 539

Total liabilities $ — $ 539 $ — $ 539

Total assets measured at fair value $ 308,306 $ 60,745 $ — $ 369,051

(1) Level 1 assets consisted of investments in money market funds and U.S.

1 unchanged sentence

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.

(2) Level 2 assets and liabilities consisted of foreign currency exchange forward contracts.

(3) Level 1 assets consisted of investments in money market funds.

2 unchanged sentences

• 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 valued at cost, approximating fair value, due to the short-term nature of these investments and;

• Time deposits with original maturities of three months or less, which were valued at cost, approximating fair value, due to the short-term nature of these investments;

• 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.

1 unchanged sentence

Held-to-maturity securities consist primarily of time deposits with maturities less than one year, which are valued at amortized cost, approximating fair value.

Fair Value of Long-term Borrowings

The Company’s borrowings were carried at historical cost in the accompanying Condensed Consolidated Balance Sheet as of February 3, 2024.

On July 15, 2024 (the “Redemption Date”), Abercrombie & Fitch Management Co.

(“A&F Management”) redeemed all of its outstanding senior secured notes at par value, which had a fixed 8.75 % interest rate and were scheduled to mature on July 15, 2025 (the “Senior Secured Notes”).

As of the Redemption Date, the Senior Secured Notes were no longer deemed outstanding.

Abercrombie & Fitch Co.

2 unchanged sentences

Investments consisted of:

February 1, 2025 February 3, 2024

January 31, 2026 February 1, 2025

(in thousands)

15 unchanged sentences

Inventories consisted of:

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

(in thousands) January 31, 2026 February 1, 2025

Inventories at original cost $ 636,288 $ 603,602

2 unchanged sentences

$ 601,218 $ 575,005

(1) Included $ 115.0 million and $ 103.5 million of inventory in transit, merchandise owned by the Company that has not yet been received at a Company DC, as of February 1, 2025 and February 3, 2024, respectively.

(1) Included $ 111.7 million and $ 115.0 million of inventory in transit, merchandise owned by the Company that has not yet been received at a Company DC, as of January 31, 2026 and February 1, 2025, respectively.

A summary of the Company’s vendors based on location and the percentage of cost of merchandise receipts during Fiscal 2025, Fiscal 2024 and Fiscal 2023 follows:

5 unchanged sentences

(1) Calculated as the cost of merchandise receipts from all vendors within a country during the respective fiscal year divided by cost of total merchandise receipts during the respective fiscal year .

(2) Only a portion of the Company’s total merchandise sourced from China is subject to the additional U.S.

tariffs on imported consumer goods that were effective beginning in Fiscal 2019.

The Company estimates approximately 5 %, 7 %, and 9 % of total merchandise receipts were directly imported to the United States from China in Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively.

(2) No country included within this category sourced more than 10% of total merchandise receipts during any fiscal year presented above .

5 unchanged sentences

Property and equipment, net consisted of:

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

(in thousands) January 31, 2026 February 1, 2025

Land $ 28,599 $ 28,599

11 unchanged sentences

Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net ,” for discussion regarding significant accounting policies related to the Company’s property and equipment, net.

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

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 Fiscal 2025, Fiscal 2024 and Fiscal 2023:

8 unchanged sentences

Total operating lease cost $ 503,137 $ 453,131 $ 414,939

(1) Includes amortization and interest expense associated with operating lease right-of-use assets and the impact from remeasurement of operating lease liabilities.

(1) Includes amortization and interest expense associated with operating lease right-of-use assets.

(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 10, “ ASSET IMPAIRMENT ,” for details related to operating lease right-of-use asset impairment charges.

The following table provides the weighted-average remaining lease term of the Company’s operating leases and the weighted-average discount rate used to calculate the Company’s operating lease liabilities as of February 1, 2025 and February 3, 2024:

February 1, 2025 February 3, 2024

January 31, 2026 February 1, 2025

Weighted-average remaining lease term (years) 5.5 4.9

3 unchanged sentences

Abercrombie & Fitch Co.

The following table provides a maturity analysis of the Company’s operating lease liabilities, based on undiscounted cash flows, as of February 1, 2025:

(in thousands) February 1, 2025

The following table provides a maturity analysis of the Company’s operating lease liabilities, based on undiscounted cash flows, as of January 31, 2026:

(in thousands) January 31, 2026

Fiscal 2026 $ 312,271

7 unchanged sentences

Present value of operating lease liabilities $ 1,168,095

During Fiscal 2020, the Company entered into a sublease agreement with a third party for the remaining lease term of one of its European Abercrombie & Fitch flagship store locations upon its closure.

As of February 1, 2025, future minimum tenant operating lease payments remaining under this sublease were $ 11.1 million with a remaining sublease term of 2.8 years.

The Company had minimum commitments related to operating lease contracts that have not yet commenced, primarily for its Company-operated retail stores, of approximately $ 135.0 million as of February 1, 2025.

The Company had minimum commitments related to operating lease contracts that have not yet commenced, primarily for its Company-operated retail stores, of approximately $ 62.4 million as of January 31, 2026.

ASSET IMPAIRMENT

2 unchanged sentences

Operating lease right-of-use asset impairment (1)

$ 4,955 $ 5,470 $ 1,441

Property and equipment asset impairment (1) (2)

5,607 6,126 6,848

Intangible asset impairment (3)

Total asset impairment $ 11,484 $ 11,596 $ 8,289

$ 11,596 $ 8,289 $ 14,031

(1) Amounts for Fiscal 2024 and Fiscal 2023 only include store asset impairment.

Amounts for Fiscal 2022 include store asset impairment of $4.8 million and other asset impairment of $3.0 million.

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

(1) Included in Selling expense on the Consolidated Statements of Operations and Comprehensive Income

(2) Amounts presented represent store asset impairment.

(3) Included in General and administrative expense on the Consolidated Statements of Operations and Comprehensive Income.

Asset impairment charges for Fiscal 2025 were related to certain of the Company’s store assets, primarily in the Americas, EMEA and APAC segments.

The impairment charges for Fiscal 2025 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 87.2 million, including $ 66.6 million related to operating lease right-of-use assets.

The increase in the carrying amount of assets primarily relates to stores in our APAC segment.

Asset impairment charges for Fiscal 2024 were related to certain of the Company’s store assets, primarily in the APAC segment.

2 unchanged sentences

The impairment charges for Fiscal 2023 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 28.1 million, including $ 23.7 million related to operating lease right-of-use assets.

Asset impairment charges for Fiscal 2022 were related to certain of the Company’s assets including stores across segments, brands and store formats and other assets.

The impairment charges for Fiscal 2022 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 39.7 million, including $ 37.0 million related to operating lease right-of-use assets.

Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long-lived Asset Impairment ,” for discussion regarding significant accounting policies related to impairment of the Company’s long-lived assets.

4 unchanged sentences

Accrued expenses consisted of:

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

(in thousands) January 31, 2026 February 1, 2025

Accrued payroll and related costs (1)

$ 61,583 $ 92,504

Accrued real estate costs

84,241 92,238

Accrued marketing

3 unchanged sentences

(1) Accrued payroll and related costs include salaries, incentive compensation, benefits, withholdings and other payroll-related costs.

(2) Other primarily includes the Company’s gift card and loyalty programs liabilities, accrued taxes, accrued rent and expenses incurred but not yet paid primarily related to outside services associated with store and home office operations, construction in progress and costs related to the Company’s DCs and digital operations.

(2) Other primarily includes the Company’s gift card and loyalty programs liabilities, accrued taxes, expenses incurred but not yet paid primarily related to outside services associated with store and home office operations, and costs related to the Company’s DCs and digital operations.

Refer to Note 4, “ REVENUE RECOGNITION .”

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 of 2017, 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 and other tax benefits during Fiscal 2025

During Fiscal 2025, the Company did not recognize income tax benefits on $ 74.9 million of pre-tax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 11.9 million.

As of February 1, 2025, the Company had foreign net deferred tax assets of approximately $ 35.7 million, including $ 8.2 million, $ 5.4 million, and $ 13.4 million in China, Japan, and the United Kingdom, respectively.

As of January 31, 2026, the Company had foreign net deferred tax assets of approximately $ 35.1 million, including $ 13.2 million, and $ 11.7 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.

3 unchanged sentences

During Fiscal 2024, the Company did not recognize income tax benefits on $ 53.8 million of pre-tax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 8.2 million.

As of February 3, 2024, the Company had foreign net deferred tax assets of approximately $ 36.7 million, including $ 7.6 million, $ 7.5 million, and $ 12.6 million in China, Japan, and the United Kingdom, respectively.

As of February 1, 2025, the Company had foreign net deferred tax assets of approximately $ 35.7 million, including $ 13.4 million and $ 8.2 million in the United Kingdom and China, respectively.

Impact of valuation allowances and other tax charges during Fiscal 2023

During Fiscal 2023, the Company did not recognize income tax benefits on $ 103.0 million of pre-tax losses, primarily in Switzerland, resulting in adverse tax impacts of $ 15.6 million.

As of January 28, 2023, the Company had foreign net deferred tax assets of approximately $ 43.8 million, including $ 8.0 million, $ 9.1 million, and $ 15.6 million in China, Japan, and the United Kingdom, respectively.

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

Components of income taxes

6 unchanged sentences

federal income tax return.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

Income tax expense consisted of:

9 unchanged sentences

Income tax expense $ 205,777 $ 194,661 $ 148,886

The Company’s earnings and profits from its foreign subsidiaries could be repatriated to the U.S., without incurring additional federal income tax.

The Company’s earnings and profits from its foreign subsidiaries could be repatriated to the U.S.

without incurring additional federal income tax.

The Company determined that the balance of the Company’s undistributed earnings and profits from its foreign subsidiaries as of February 2, 2019, are considered indefinitely reinvested outside of the U.S., and if these funds were to be repatriated to the U.S., the Company would expect to incur an insignificant amount of state income taxes and foreign withholding taxes.

2 unchanged sentences

Fiscal 2025 Fiscal 2024 Fiscal 2023

Federal income tax rate 21.0 % 21.0 % 21.0 %

State income tax, net of U.S.

federal income tax effect 4.5 4.9 12.4

Foreign taxation of non-U.S.

operations 1.4 1.4 16.2

Federal statutory tax rate

$ 151,362 21.0 % $ 161,422 21.0 % $ 101,703 21.0 %

State and local income taxes, net of Federal income tax effect (1)

33,331 4.6 31,234 4.0 23,983 5.0

Foreign tax effects

Statutory tax rate difference 9,164 1.3 6,955 0.9 12,765 2.6

Changes in valuation allowances 5,444 0.7 4,135 0.5 7,589 1.6

Other 53 — 142 — ( 194 ) —

Other foreign jurisdictions 8,096 1.1 2,741 0.4 2,184 0.4

Tax credits ( 2,229 ) ( 0.3 ) ( 1,922 ) ( 0.2 ) ( 3,300 ) ( 0.7 )

Nontaxable or nondeductible items

Internal Revenue Code Section 162(m) 3,592 0.5 5,429 0.7 6,005 1.2

Net change in valuation allowances 0.6 3.4 30.7

Additional U.S.

taxation of non-U.S.

operations 0.1 0.1 1.3

Credit for increasing research activities ( 0.1 ) ( 0.5 ) ( 2.5 )

Audit and other adjustments to prior years' accruals, net ( 0.2 ) ( 0.2 ) 5.9

Net income attributable to noncontrolling interests ( 0.2 ) ( 0.3 ) ( 2.4 )

Tax benefit recognized on share-based compensation expense (2)

Share-based payment awards ( 5,059 ) ( 0.7 ) ( 17,833 ) ( 2.3 ) ( 1,843 ) ( 0.4 )

Other ( 101 ) — 282 — ( 151 ) —

Changes in unrecognized tax benefits

1,422 0.2 2,177 0.3 589 0.1

Other items, net — — ( 0.1 )

Total 25.3 % 30.7 % 84.5 %

branch operations in Puerto Rico were subject to tax at the full U.S.

As a result, income from these operations do not create reconciling items.

(2) Refer to Note 13, “ SHARE-BASED COMPENSATION ,” for details on discrete income tax benefits and charges related to share-based compensation awards during Fiscal 2024, Fiscal 2023, and Fiscal 2022.

Other adjustments

702 0.1 ( 101 ) — ( 444 ) ( 0.1 )

Effective tax rate

$ 205,777 28.5 % $ 194,661 25.3 % $ 148,886 30.7 %

(1) State and local taxes in California, New York, New Jersey, and New Albany, Ohio made up the majority (greater than 50%) of the tax effect in this category.

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

For certain years, the impact of various tax items on the Company's effective tax rate were amplified on a percentage basis at lower levels of consolidated pre-tax income (loss) in absolute dollars.

5 unchanged sentences

operations on the Company's effective income tax rate was related to the Company's jurisdictional mix driven primarily by the Company’s operations within Switzerland.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

Components of deferred income tax assets and deferred income tax liabilities

The effect of temporary differences that gives rise to deferred income tax assets (liabilities) were as follows:

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

The effect of temporary differences that give rise to deferred income tax assets (liabilities) were as follows:

(in thousands) January 31, 2026 February 1, 2025

Deferred income tax assets:

7 unchanged sentences

Property and equipment and intangibles — 1,129

Rent 509 1,874

Other 2,758 5,480

7 unchanged sentences

subsidiaries ( 1,465 ) ( 1,400 )

offset to foreign deferred tax assets, excluding intangibles, foreign step-up in basis (1)

( 125 ) ( 187 )

Property and equipment and intangibles ( 35,197 ) —

2 unchanged sentences

Net deferred income tax assets $ 39,700 $ 79,327

$ 79,327 $ 67,221

(1) This table does not reflect deferred taxes classified within AOCL.

As of February 1, 2025 and February 3, 2024, AOCL included deferred tax liabilities of $1.0 million and deferred tax liabilities of $0.1 million, respectively.

As of February 1, 2025, the Company had deferred tax assets related to foreign and state NOL and credit carryforwards of $ 91.9 million and $ 0.1 million, respectively, that could be utilized to reduce future years’ tax liabilities.

As of January 31, 2026, the Company had deferred tax assets related to foreign and state NOL and credit carryforwards of $ 111.2 million and $ 0.6 million, respectively, that could be utilized to reduce future years’ tax liabilities.

If not utilized, a portion of the foreign NOL carryforwards will begin to expire in Fiscal 2026 and a portion of state NOL carryforwards will begin to expire in Fiscal 2034.

Some foreign NOLs have an indefinite carryforward period.

As of February 1, 2025, the Company did not have any deferred tax assets related to federal NOL and credit carryforwards that could be utilized to reduce future years’ tax liabilities.

As of January 31, 2026, the Company did not have any deferred tax assets related to federal NOL and credit carryforwards that could be utilized to reduce future years’ tax liabilities.

The valuation allowances for Fiscal 2025 and 2024 were $ 184.8 million and $ 151.8 million, respectively.

The valuation allowances as of Fiscal 2025 have been established against deferred tax assets, primarily in Switzerland.

All valuation allowances have been reflected through the Consolidated Statements of Operations and Comprehensive Income (Loss).

All valuation allowances have been reflected through the Consolidated Statements of Operations and Comprehensive Income.

The valuation allowances will remain until there is sufficient positive evidence to release them, such positive evidence would include having positive income within the jurisdiction.

3 unchanged sentences

Refer to Note 14, “ SHARE-BASED COMPENSATION ,” for details on income tax benefits and charges related to share-based compensation awards during Fiscal 2025, Fiscal 2024 and Fiscal 2023.

The Company intends to continue to invest all of the earnings of foreign subsidiaries, as well as its capital in these subsidiaries outside of the U.S., and the Company does not expect to incur any significant additional taxes related to such amounts.

Abercrombie & Fitch Co.

1 unchanged sentence

Abercrombie & Fitch Co.

The amount of uncertain tax positions as of February 1, 2025, February 3, 2024 and January 28, 2023, which would impact the Company’s effective tax rate if recognized and a reconciliation of the beginning and ending amounts of uncertain tax positions, excluding accrued interest and penalties, are as follows:

Net cash paid (refunds received) for income taxes consisted of the following:

(in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023

Uncertain tax positions, beginning of the year $ 2,751 $ 2,293 $ 1,114

Gross addition for tax positions of the current year 611 572 339

Gross addition for tax positions of prior years 1,725 75 907

Reductions of tax positions of prior years for:

Lapses of applicable statutes of limitations ( 155 ) ( 70 ) ( 66 )

Settlements during the period ( 350 ) ( 119 ) ( 1 )

Uncertain tax positions, end of year $ 4,582 $ 2,751 $ 2,293

$ 136,869 $ 160,554 $ 84,791

State and local jurisdictions

38,310 43,413 29,132

14,607 13,185 4,682

Net cash paid (refunds received) for income taxes

$ 189,786 $ 217,152 $ 118,605

The IRS is currently conducting an examination of the Company’s U.S.

5 unchanged sentences

The Company believes that some of these audits and negotiations will conclude within the next 12 months and that it is reasonably possible the amount of uncertain income tax positions, including interest, may change by an immaterial amount due to settlement of audits and expiration of statues of limitations.

The Company does not expect material adjustments to the total amount of uncertain tax positions within the next 12 months, but the outcome of tax matters is uncertain and unforeseen results can occur.

Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes ,” for discussion regarding significant accounting policies related to the Company’s income taxes.

Senior Secured Notes

On July 15, 2024 (the “Redemption Date”), A&F redeemed all of its outstanding 8.75 % Senior Secured Notes due July 15, 2025 , which had an aggregate principal amount of $ 214 million, at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest to, but excluding, the Redemption Date, and incurred a $ 0.9 million loss on extinguishment of debt, recognized in interest expense on the Condensed Consolidated Statements of Operations and Comprehensive Income.

For the year-to-date period through the Redemption Date, A&F Management repurchased $ 9.3 million in the open market and redeemed $ 214 million of its Senior Secured Notes and incurred a loss on extinguishment of debt of $ 1.1 million.

As of the Redemption Date, the 8.75 % Senior Secured Notes were no longer deemed outstanding and interest on the 8.75 % Senior Secured Notes ceased to accrue.

On August 2, 2024, A&F, as parent and a guarantor, A&F Management, as lead borrower, and certain of A&F’s direct and indirect wholly-owned subsidiaries, as additional borrowers and guarantors, entered into the Second Amendment to the Amended and Restated Credit Agreement (the “Second Amendment”), together with the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent for the lenders.

The Second Amendment amended the Amended and Restated Credit Agreement, dated as of April 29, 2021 (the “ABL Credit Agreement”), to, among other things (as described in greater detail below), provide for a $ 500 million senior secured asset-based revolving credit facility (the “ABL Facility”).

The Company incurred customary fees and expenses in connection with the entry into the Second Amendment.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

The Second Amendment amended the ABL Credit Agreement to, among other things:

• increase the aggregate commitments thereunder from $ 400 million to $ 500 million;

• establish a $100 million sub-facility for the benefit of Abfico Netherlands Distribution B.V.

On August 2, 2024, A&F, as parent and a guarantor, Abercrombie & Fitch Management Co.

(“A&F Management”), as lead borrower, and certain of A&F’s direct and indirect wholly-owned subsidiaries, as additional borrowers and guarantors, entered into the Second Amendment to the Amended and Restated Credit Agreement (as amended, the “ABL Credit Agreement”).

The ABL Credit Agreement provides for a $ 500 million senior secured asset-based revolving credit facility (the “ABL Facility”), and a $100 million sub-facility for the benefit of Abfico Netherlands Distribution B.V.

(“Abfico”) and AFH Stores UK Limited (“AFH UK”) that is (i) secured by a first priority security interest in all assets (subject to specified exclusions) of each of Abfico and AFH UK, (ii) guaranteed by A&F and certain of its domestic direct and indirect wholly-owned subsidiaries, and (iii) subject to a borrowing base as described therein.

• extend the maturity date from April 29, 2026 to August 2, 2029;

• increase the letter of credit sub-limit from $ 50 million to $ 62.5 million;

• decrease the swing line availability from $ 50 million to $ 30 million;

• decrease the unused line fee from a variable rate of 25 basis points to 37.5 basis points to a flat rate of 25 basis points;

• increase pricing of the interest rate margin applicable to borrowings as follows:

◦ from 1.25 % to 1.50 % when average availability is greater than or equal to 50% of the Loan Cap (as defined in the Second Amendment);

◦ from 1.50 % to 1.75 % when average availability is less than 50% of the Loan Cap.

Borrowing under the ABL Facility bears interest at the Secured Overnight Financing Rate (“SOFR”) rate plus a margin of 1.50 % to 1.75 % per annum as determined in accordance with the provisions of the ABL Credit Agreement.

The ABL Facility also contains an unused line fee of 25 basis points per annum.

Customary agency fees and letter of credit fees are also payable in respect of the ABL Facility.

The ABL Facility is subject to a borrowing base, consisting primarily of inventory located in the U.S., the United Kingdom and the Netherlands, with a letter of credit sub-limit of $ 62.5 million, a swing line loan sub-limit of $ 30 million, and an accordion feature allowing A&F to increase the revolving commitment by up to $ 150 million subject to specified conditions.

The ABL Facility is available for working capital, capital expenditures, and other general corporate purposes.

As of February 1, 2025, availability under the ABL Facility was $ 500 million, net of $ 0.4 million in outstanding stand-by letters of credit.

As the Company must maintain excess availability equal to the greater of 10% of the Loan Cap or $36 million under the ABL Facility, borrowing capacity available to the Company under the ABL Facility was $ 450 million as of February 1, 2025.

The ABL Facility is scheduled to expire on August 2, 2029 and is available for working capital, capital expenditures, and other general corporate purposes.

As of January 31, 2026, availability under the ABL Facility was $ 500 million, net of $ 0.5 million in outstanding stand-by letters of credit.

Representations, warranties and covenants

3 unchanged sentences

sell or otherwise dispose of assets, including capital stock of subsidiaries;

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

make investments in certain subsidiaries;

3 unchanged sentences

Certain of the agreements related to the ABL Facility also contain certain affirmative covenants, including reporting requirements, such as delivery of financial statements, certificates and notices of certain events, maintaining insurance and providing additional guarantees and collateral in certain circumstances.

The Company was in compliance with all covenants under these agreements as of February 1, 2025.

The Company was in compliance with all covenants under these agreements as of January 31, 2026.

SHARE-BASED COMPENSATION

As of February 1, 2025, the Company had two primary share-based compensation plans:

As of January 31, 2026, the Company had two primary share-based compensation plans:

(i) the 2016 Directors LTIP, with 900,000 shares of Common Stock authorized for issuance, under which the Company is authorized to grant restricted stock, restricted stock units, stock appreciation rights, stock options and deferred stock awards to non-associate members of the Board of Directors;

2 unchanged sentences

No new shares may be granted under these previously-authorized plans and any outstanding awards continue in effect in accordance with their respective terms.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

The 2016 Directors LTIP, a stockholder-approved plan, permits the Company to annually grant awards to non-associate directors, subject to the following limits:

11 unchanged sentences

Each of the 2016 Directors LTIP and the 2016 Associates LTIP provides for accelerated vesting of awards if there is a change of control and certain other conditions specified in each plan are met.

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

Financial statement impact

15 unchanged sentences

$ 36,685 $ 70,208 $ 29,485

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

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

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

Restricted Stock Units

16 unchanged sentences

Forfeited ( 66,509 ) 57.68 ( 2,956 ) 89.06 ( 1,478 ) 109.36

Unvested at February 1, 2025 (1)

Unvested at January 31, 2026 (1)

975,804 $ 66.81 342,566 $ 56.31 171,304 $ 74.95

1 unchanged sentence

Unvested shares related to restricted stock units with performance-based and market-based vesting conditions can be achieved at up to 200% of their target vesting amount.

The following table details unrecognized compensation cost and the remaining weighted-average period over which these costs are expected to be recognized for restricted stock units as of February 1, 2025:

(in thousands) Service-based Restricted

3 unchanged sentences

Remaining weighted-average period cost is expected to be recognized (years) 1.2 0.8 0.9

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

Additional information pertaining to restricted stock units for Fiscal 2025, Fiscal 2024 and Fiscal 2023 follows:

13 unchanged sentences

Total intrinsic value of awards vested 13,314 19,836 24,890

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

The weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during Fiscal 2025, Fiscal 2024 and Fiscal 2023 were as follows:

8 unchanged sentences

Average correlation coefficient of peer companies 0.4430 0.4866 0.5295

Stock Appreciation Rights

The following table summarizes stock appreciation rights activity for Fiscal 2024:

Shares Weighted-Average

Exercise Price Aggregate

Intrinsic Value Weighted-Average

Contractual Life (years)

Outstanding at February 3, 2024 25,600 $ 29.29

Exercised ( 25,600 ) 29.29

Forfeited or expired — —

Outstanding at February 1, 2025 — $ — $ — 0.0

Stock appreciation rights exercisable at February 1, 2025 — $ — $ — 0.0

The following table provides additional information pertaining to grant date fair value of awards exercised during Fiscal 2024, Fiscal 2023 and Fiscal 2022:

(in thousands) Fiscal 2024 Fiscal 2023 Fiscal 2022

Total grant date fair value of awards exercised $ 267 $ 1,409 $ —

No stock appreciation rights were exercised during Fiscal 2022.

Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-Based Compensation ,” for discussion regarding significant accounting policies related to share-based compensation.

3 unchanged sentences

DERIVATIVE INSTRUMENTS

As of February 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 inventory transactions, the resulting settlement of the foreign-currency-denominated intercompany accounts receivable, or both:

As of January 31, 2026, 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 inventory transactions, the resulting settlement of the foreign-currency-denominated intercompany accounts receivable, or both:

(in thousands) Notional Amount (1)

2 unchanged sentences

(1) Amounts reported are the U.S.

Dollar notional amounts outstanding as of February 1, 2025.

Dollar notional amounts outstanding as of January 31, 2026.

As of January 31, 2026, foreign currency exchange forward contracts that were entered into to hedge foreign-currency-denominated net monetary assets and liabilities were as follows:

(in thousands) Notional Amount (1)

(1) Amounts reported are the U.S.

Dollar notional amounts outstanding as of January 31, 2026.

The fair value of derivative instruments is determined using quoted market prices of the same or similar instruments, adjusted for counterparty risk.

The location and amounts of derivative fair values of foreign currency exchange forward contracts on the Consolidated Balance Sheets as of February 1, 2025, and February 3, 2024 were as follows:

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

The location and amounts of derivative fair values of foreign currency exchange forward contracts on the Consolidated Balance Sheets as of January 31, 2026, and February 1, 2025 were as follows:

(in thousands) Location January 31, 2026 February 1, 2025 Location January 31, 2026 February 1, 2025

Derivatives designated as cash flow hedging instruments

6 unchanged sentences

(in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023

Gain recognized in AOCL (1)

(Loss) gain recognized in AOCL (1)

$ ( 14,692 ) $ 6,473 $ 3,618

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

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

( 7,012 ) 2,113 ( 1,846 )

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

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

Substantially all of the unrealized gains or losses related to foreign currency exchange forward contracts designated as cash flow hedging instruments as of February 1, 2025 will be recognized within the Consolidated Statements of Operations and Comprehensive Income (Loss) over the next 12 months.

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

Substantially all of the unrealized gains or losses related to foreign currency exchange forward contracts designated as cash flow hedging instruments as of January 31, 2026 will be recognized within the Consolidated Statements of Operations and Comprehensive Income over the next 12 months.

Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for Fiscal 2025, Fiscal 2024 and Fiscal 2023 follows:

11 unchanged sentences

$ ( 143,883 ) $ 4,732 $ ( 139,151 )

Other comprehensive (loss) income before reclassifications ( 7,351 ) 6,473 ( 878 )

Reclassified gain from AOCL (1)

Other comprehensive income (loss) before reclassifications 20,348 ( 14,692 ) 5,656

Reclassified loss from AOCL (1)

— 7,012 7,012

Tax effect — 315 315

Other comprehensive (loss) income after reclassifications ( 7,351 ) 4,168 ( 3,183 )

Ending balance at February 1, 2025

Other comprehensive income (loss) after reclassifications 20,348 ( 7,365 ) 12,983

Ending balance at January 31, 2026

$ ( 123,535 ) $ ( 2,633 ) $ ( 126,168 )

(1) Amount represents gain reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income (Loss).

(1) Amount represents loss reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income.

For Fiscal 2024, the activity in AOCL was as follows:

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

Beginning balance at January 28, 2023

Beginning balance at February 3, 2024

$ ( 136,532 ) $ 564 $ ( 135,968 )

Other comprehensive (loss) income before reclassifications ( 7,351 ) 6,473 ( 878 )

Reclassified loss from AOCL (1)

Reclassified gain from AOCL (1)

— ( 2,113 ) ( 2,113 )

3 unchanged sentences

$ ( 143,883 ) $ 4,732 $ ( 139,151 )

(1) Amount represents loss reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income (Loss).

(1) Amount represents gain reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income.

For Fiscal 2023, the activity in AOCL was as follows:

3 unchanged sentences

Other comprehensive (loss) income before reclassifications ( 3,879 ) 3,618 ( 261 )

Reclassified gain from AOCL (1)

Reclassified loss from AOCL (1)

— 1,846 1,846

Other comprehensive loss after reclassifications ( 11,964 ) ( 10,857 ) ( 22,821 )

Ending balance at January 28, 2023

— ( 26 ) ( 26 )

(1) Amount represents gain reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income (Loss).

Other comprehensive (loss) income after reclassifications ( 3,879 ) 5,438 1,559

Ending balance at February 3, 2024

$ ( 136,532 ) $ 564 $ ( 135,968 )

(1) Amount represents loss reclassified from AOCL to cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income.

Abercrombie & Fitch Co.

2025 Form 10-K

Abercrombie & Fitch Co.

SAVINGS AND RETIREMENT PLANS

7 unchanged sentences

The cost of the Company’s contributions to these plans was $ 18.7 million, $ 18.0 million and $ 16.9 million for Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively.

Abercrombie & Fitch Co.

2024 Form 10-K

Abercrombie & Fitch Co.

In addition, the Company maintains the Supplemental Executive Retirement Plan, which provides retirement income to its former Chief Executive Officer for life, based on averaged compensation before retirement, including base salary and cash incentive compensation.

As of February 1, 2025 and February 3, 2024, the Company had recorded $ 6.1 million and $ 6.7 million, respectively, in other liabilities on the Consolidated Balance Sheets related to Supplemental Executive Retirement Plan distributions.

In addition, the Company maintains the Supplemental Executive Retirement Plan, which provides retirement income to its former Chief Executive Officer for life, based on average compensation before retirement, including base salary and cash incentive compensation.

As of January 31, 2026 and February 1, 2025, the Company had recorded $ 5.8 million and $ 6.1 million, respectively, in other liabilities on the Consolidated Balance Sheets related to Supplemental Executive Retirement Plan distributions.

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.

During the second quarter of Fiscal 2023, to leverage the knowledge and experience of our regional teams to better drive brand growth, the Company reorganized its structure and now manages its business on a geographic basis, consisting of three reportable segments:

The Company manages its business on a geographic basis, consisting of three reportable segments:

Europe, the Middle East and Africa (EMEA);

6 unchanged sentences

All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance.

All prior periods presented are recast to conform to the new segment presentation.

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.

1 unchanged sentence

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 on the basis of the segment that fulfills the order.

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.

5 unchanged sentences

Abercrombie & Fitch Co.

The following tables provide the Company’s segment information as of February 1, 2025 and February 3, 2024, and for Fiscal 2024, Fiscal 2023 and Fiscal 2022.

The following tables provide the Company’s segment information as of January 31, 2026 and February 1, 2025, and for Fiscal 2025 , Fiscal 2024 and Fiscal 2023.

(in thousands)

EMEA APAC Total

13 unchanged sentences

Interest expense (income), Net ( 21,629 )

Income before taxes $ 768,677

Income before income taxes

Depreciation and amortization $ 87,630 $ 24,166 $ 7,931 $ 119,727

4 unchanged sentences

Total capital expenditures $ 240,774

(in thousands)

EMEA APAC Total

12 unchanged sentences

Interest expense (income), Net ( 27,857 )

Income before taxes $ 484,299

Income before income taxes

Depreciation and amortization $ 85,207 $ 25,070 $ 7,975 $ 118,252

7 unchanged sentences

Abercrombie & Fitch Co.

(in thousands)

EMEA APAC Total

12 unchanged sentences

Interest expense (income), Net 372

Income before taxes $ 67,016

Income before income taxes

Depreciation and amortization $ 73,779 $ 26,782 $ 5,921 $ 106,482

7 unchanged sentences

were $ 4.1 billion, $ 3.8 billion, and $ 3.3 billion in Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively.

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

(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 Consolidated Statements of Operations and Comprehensive Income (Loss).

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

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

(in thousands) February 1, 2025 February 3, 2024 January 28, 2023

(in thousands) January 31, 2026 February 1, 2025 February 3, 2024

Americas $ 480,078 $ 463,148 $ 372,371

3 unchanged sentences

Assets not attributed to segments

2,940,656 2,724,882 2,504,767

Total assets $ 3,541,874 $ 3,299,887 $ 2,974,233

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 February 1, 2025, February 3, 2024, and January 28, 2023 were as follows:

(in thousands) February 1, 2025 February 3, 2024 January 28, 2023

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 January 31, 2026, February 1, 2025, and February 3, 2024 were as follows:

(in thousands) January 31, 2026 February 1, 2025 February 3, 2024

Americas (1) (2)

5 unchanged sentences

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

were $ 965 million, $ 880 million, and $ 911 million as of February 1, 2025, February 3, 2024, and January 28, 2023 respectively.

(2) Includes intellectual property of $ 2.9 million, $ 2.9 million, and $ 3.4 million at February 1, 2025, February 3, 2024, and January 28, 2023, respectively.

(3) Includes intellectual property of $ 16.6 million, $ 17.4 million, and $ 18.3 million at February 1, 2025, February 3, 2024, and January 28, 2023, respectively.

were $ 1.1 billion, $ 965 million, and $ 880 million as of January 31, 2026, February 1, 2025, and February 3, 2024 respectively.

(2) Includes intellectual property of $ 2.9 million at January 31, 2026, February 1, 2025, and February 3, 2024.

(3) Includes intellectual property of $ 14.8 million, $ 16.6 million, and $ 17.4 million at January 31, 2026, February 1, 2025, and February 3, 2024, respectively.

Abercrombie & Fitch Co.

15 unchanged sentences

The Company’s assessment of the current exposure could change in the event of the discovery of additional facts.

SUBSEQUENT EVENTS

Strategic Alternatives for APAC region

Subsequent to the end of Fiscal 2025, the Company announced a review of strategic alternatives for the APAC region.

On February 20, 2026, the U.S.

Supreme Court struck down certain tariffs imposed under the IEEPA.

Following the Supreme Court’s decision, the U.S.

administration announced a new 10% global tariff under Section 122 of the Trade Act of 1974, subject to certain exceptions.

The impact of these decisions on the Company’s results of operations is uncertain, including the potential for tariff refunds associated with IEEPA tariffs previously paid by the Company, changes in tariff levels, or new tariffs.

The Company continues to monitor and evaluate these developments and assess their potential impact on the Company’s business, financial condition, and results of operations.

Abercrombie & Fitch Co.

4 unchanged sentences

We have audited the accompanying consolidated balance sheets of Abercrombie & Fitch Co.

and its subsidiaries (the “Company”) as of February 1, 2025 and February 3, 2024, and the related consolidated statements of operations and comprehensive income (loss), of stockholders’ equity and of cash flows for each of the three years in the period ended February 1, 2025, including the related notes (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of February 1, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of February 1, 2025 and February 3, 2024, and the results of its operations and its cash flows for each of the three years in the period ended February 1, 2025 in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of February 1, 2025 , based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

and its subsidiaries (the “Company”) as of January 31, 2026 and February 1, 2025, and the related consolidated statements of operations and comprehensive income, of stockholders’ equity and of cash flows for each of the three years in the period ended January 31, 2026, including the related notes (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of January 31, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of January 31, 2026 and February 1, 2025, and the results of its operations and its cash flows for each of the three years in the period ended January 31, 2026 in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 31, 2026 , based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

24 unchanged sentences

Impairment of Long-Lived Assets – Stores

As described in Notes 2, 7 and 9 to the consolidated financial statements, the Company’s consolidated property and equipment, net balance was $575.8 million and consolidated operating lease right-of-use assets balance was $803.1 million as of February 1, 2025.

During the year ended February 1, 2025, the Company recognized long-lived asset store impairment charges of $11.6 million.

As described in Notes 2, 8 and 10 to the consolidated financial statements, the Company’s consolidated property and equipment, net balance was $674.1 million and consolidated operating lease right-of-use assets balance was $997.4 million as of January 31, 2026.

During the year ended January 31, 2026, the Company recognized long-lived asset store impairment charges of $11.5 million.

The Company’s long-lived assets, primarily operating lease right-of-use assets, leasehold improvements, furniture, fixtures and equipment, are grouped with other assets and liabilities at the store level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.

4 unchanged sentences

Fair value of an asset group is based on the highest and best use of the asset group, often using a discounted cash flow model that utilizes Level 3 fair value inputs.

The key assumptions used in the Company’s fair value analysis are estimated sales growth rate and comparable market rents.

The key assumption used in the Company’s fair value analysis is comparable market rents.

An impairment loss is recognized based on the excess of the carrying amount of the asset group over its fair value.

and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to estimated sales growth rate when developing the future undiscounted cash flows, and comparable market rents when estimating the fair value.

The principal considerations for our determination that performing procedures relating to the impairment of long-lived assets - stores is a critical audit matter are (i) the significant judgment by management when developing the future undiscounted cash flows attributable to an asset group when testing for recoverability and when estimating the fair value of the asset groups to measure for impairment and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to estimated sales growth rate when developing the future undiscounted cash flows, and comparable market rents when estimating the fair value.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

13 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-K

Item 8. Financial Statements and Supplementary Data