ABERCROMBIE & FITCH CO /DE/ 10-K

Item 8. Financial Statements and Supplementary Data Abercrombie & Fitch Co. Consolidated Statements of Operations and Comprehensive Income (Thousands, except per share amounts) Fiscal 2025 Fiscal 2024 Fiscal 2023 Net sales $ 5,266,292 $ 4,948,587 $ 4,280,677 Cost of sales, exclusive of depreciation and amortization 2,028,884 1,773,926 1,587,265 Selling expense 1,809,633 1,689,988 1,533,438 General and administrative expense 725,471 750,485 681,176 Other operating loss (income), net 3,161 ( 6,632 ) ( 5,873 ) Operating income 699,143 740,820 484,671 Interest expense 2,375 12,077 30,352 Interest income ( 24,004 ) ( 39,934 ) ( 29,980 ) Interest (income) expense, net ( 21,629 ) ( 27,857 ) 372 Income before income taxes 720,772 768,677 484,299 Income tax expense 205,777 194,661 148,886 Net income 514,995 574,016 335,413 Less: Net income attributable to noncontrolling interests 8,074 7,793 7,290 Net income attributable to A&F $ 506,921 $ 566,223 $ 328,123 Net income per share attributable to A&F Basic $ 10.71 $ 11.14 $ 6.53 Diluted $ 10.46 $ 10.69 $ 6.22 Weighted-average shares outstanding Basic 47,319 50,839 50,250 Diluted 48,476 52,971 52,726 Other comprehensive income (loss) Foreign currency translation, net of tax $ 20,348 $ ( 7,351 ) $ ( 3,879 ) Derivative financial instruments, net of tax ( 7,365 ) 4,168 5,438 Other comprehensive income (loss) 12,983 ( 3,183 ) 1,559 Comprehensive income 527,978 570,833 336,972 Less: Comprehensive income attributable to noncontrolling interests 8,074 7,793 7,290 Comprehensive income attributable to A&F $ 519,904 $ 563,040 $ 329,682 The accompanying Notes are an integral part of these Consolidated Financial Statements. Abercrombie & Fitch Co. 46 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Consolidated Balance Sheets (Thousands, except par value amounts) January 31, 2026 February 1, 2025 Assets Current assets: Cash and equivalents $ 759,540 $ 772,727 Marketable securities 25,036 116,221 Receivables 146,757 105,324 Inventories 601,218 575,005 Other current assets 117,913 104,154 Total current assets 1,650,464 1,673,431 Property and equipment, net 674,079 575,773 Operating lease right-of-use assets 997,399 803,121 Other assets 219,932 247,562 Total assets $ 3,541,874 $ 3,299,887 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 377,465 $ 364,532 Accrued expenses 465,549 504,922 Short-term portion of operating lease liabilities 241,265 211,600 Income taxes payable 21,721 45,890 Total current liabilities 1,106,000 1,126,944 Long-term liabilities: Long-term portion of operating lease liabilities 926,830 740,013 Other liabilities 88,633 81,607 Total long-term liabilities 1,015,463 821,620 Stockholders’ equity Class A Common Stock - $ 0.01 par value: 150,000 shares authorized and 103,300 shares issued for all periods presented 1,033 1,033 Paid-in capital 421,662 422,912 Retained earnings 3,697,814 3,196,724 Accumulated other comprehensive loss, net of tax (“AOCL”) ( 126,168 ) ( 139,151 ) Treasury stock, at average cost: 58,295 and 53,565 shares at January 31, 2026 and February 1, 2025, respectively ( 2,590,446 ) ( 2,145,890 ) Total Abercrombie & Fitch Co. stockholders’ equity 1,403,895 1,335,628 Noncontrolling interests 16,516 15,695 Total stockholders’ equity 1,420,411 1,351,323 Total liabilities and stockholders’ equity $ 3,541,874 $ 3,299,887 The accompanying Notes are an integral part of these Consolidated Financial Statements. Abercrombie & Fitch Co. 47 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Consolidated Statements of Stockholders’ Equity (Thousands, except per share amounts) Common Stock Paid-in capital Non-controlling interests Retained earnings AOCL Treasury stock Total stockholders’ equity Shares outstanding Par value Shares At average cost Balance, January 28, 2023 49,002 $ 1,033 $ 416,255 $ 11,728 $ 2,368,815 $ ( 137,527 ) 54,298 $ ( 1,953,735 ) $ 706,569 Net income — — — 7,290 328,123 — — — 335,413 Share-based compensation issuances and exercises 1,498 — ( 34,768 ) — ( 53,309 ) — ( 1,498 ) 58,592 ( 29,485 ) Share-based compensation expense — — 40,122 — — — — — 40,122 Derivative financial instruments, net of tax — — — — — 5,438 — — 5,438 Foreign currency translation adjustments, net of tax — — — — — ( 3,879 ) — — ( 3,879 ) Distribution to noncontrolling interests, net — — — ( 4,191 ) — — — — ( 4,191 ) 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 ) Share-based compensation expense — — 38,667 — — — — — 38,667 Derivative financial instruments, net of tax — — — — — 4,168 — — 4,168 Foreign currency translation adjustments, net of tax — — — — — ( 7,351 ) — — ( 7,351 ) Distribution to noncontrolling interests, net — — — ( 6,925 ) — — — — ( 6,925 ) Balance, February 1, 2025 49,735 $ 1,033 $ 422,912 $ 15,695 $ 3,196,724 $ ( 139,151 ) 53,565 $ ( 2,145,890 ) $ 1,351,323 Net income — — — 8,074 506,921 — — — 514,995 Purchase of common stock (1) ( 5,365 ) — — — — — 5,365 ( 454,000 ) ( 454,000 ) Share-based compensation issuances and exercises 635 — ( 40,298 ) — ( 5,831 ) — ( 635 ) 9,444 ( 36,685 ) Share-based compensation expense — — 39,048 — — — — — 39,048 Derivative financial instruments, net of tax — — — — — ( 7,365 ) — — ( 7,365 ) Foreign currency translation adjustments, net of tax — — — — — 20,348 — — 20,348 Distribution to noncontrolling interests, net — — — ( 7,253 ) — — — — ( 7,253 ) 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. Abercrombie & Fitch Co. 48 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Consolidated Statements of Cash Flows (Thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Operating activities Net income $ 514,995 $ 574,016 $ 335,413 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 155,021 153,773 141,104 Amortization of capitalized cloud computing arrangement implementation costs 19,338 15,572 10,796 Asset impairment 11,484 11,596 8,289 Loss on disposal 3,218 3,440 6,408 Provision (benefit) for deferred income taxes 41,378 ( 12,278 ) ( 4,743 ) Share-based compensation 39,048 38,667 40,122 Loss on extinguishment of debt — 1,114 1,975 Changes in assets and liabilities Inventories ( 22,058 ) ( 106,874 ) 35,043 Accounts payable and accrued expenses ( 45,128 ) 129,262 82,925 Operating lease right-of use assets and liabilities 12,240 ( 3,288 ) ( 55,646 ) Income taxes ( 24,169 ) ( 9,845 ) 35,806 Other assets ( 82,349 ) ( 71,361 ) 22,827 Other liabilities ( 3,876 ) ( 13,418 ) ( 6,897 ) Net cash provided by operating activities 619,142 710,376 653,422 Investing activities Purchases of marketable securities ( 24,800 ) ( 139,600 ) — 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 Net cash used for investing activities ( 150,774 ) ( 297,703 ) ( 157,182 ) Financing activities Repayment/redemption of senior secured notes — ( 223,331 ) ( 77,972 ) Purchases of common stock ( 451,224 ) ( 229,807 ) — Acquisition of Common stock for tax withholding obligations ( 36,685 ) ( 70,208 ) ( 29,485 ) Other financing activities ( 7,478 ) ( 11,531 ) ( 3,744 ) Net cash used for financing activities ( 495,387 ) ( 534,877 ) ( 111,201 ) Effect of foreign currency exchange rates on cash 13,540 ( 7,086 ) ( 2,923 ) Net (decrease) increase in cash and equivalents, and restricted cash and equivalents ( 13,479 ) ( 129,290 ) 382,116 Cash and equivalents, and restricted cash and equivalents, beginning of period 780,395 909,685 527,569 Cash and equivalents, and restricted cash and equivalents, end of period $ 766,916 $ 780,395 $ 909,685 Supplemental information related to non-cash activities Purchases of property and equipment accrued in accounts payable $ 56,620 $ 48,856 $ 35,568 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 Supplemental information related to cash activities Cash paid for interest — 9,527 24,891 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 Cash paid for amounts included in measurement of operating lease liabilities, net of abatements 313,575 278,229 296,834 The accompanying Notes are an integral part of these Consolidated Financial Statements. Abercrombie & Fitch Co. 49 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Index for Notes to Consolidated Financial Statements Page No. Note 1. NATURE OF BUSINESS 51 Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 51 Note 3. INTERCHANGE FEE SETTLEMENT 61 Note 4. REVENUE RECOGNITION 61 Note 5. FAIR VALUE 62 Note 6. INVESTMENTS 63 Note 7. INVENTORIES 63 Note 8. PROPERTY AND EQUIPMENT, NET 64 Note 9. LEASES 64 Note 10. ASSET IMPAIRMENT 65 Note 11. ACCRUED EXPENSES 66 Note 12. INCOME TAXES 66 Note 13. BORROWINGS 69 Note 14. SHARE-BASED COMPENSATION 70 Note 15. DERIVATIVE INSTRUMENTS 73 Note 16. ACCUMULATED OTHER COMPREHENSIVE LOSS 74 Note 17. SAVINGS AND RETIREMENT PLANS 75 Note 18. SEGMENT REPORTING 75 Note 19. CONTINGENCIES 78 Note 20. SUBSEQUENT EVEN TS 78 Abercrombie & Fitch Co. 50 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Notes to Consolidated Financial Statements 1. NATURE OF BUSINESS Abercrombie & Fitch Co. (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as the “Company”), is a global, digitally-led, omnichannel retailer. The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily through its Company-owned stores and digital channels, as well as through various third-party arrangements. The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company’s segments and therefore are included as a reconciling item between segment and total operating income. The Company’s brand families include Abercrombie brands and Hollister brands. These brands share a commitment to offering unique products of enduring quality and exceptional comfort that allow customers around the world to express their own individuality and style. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying Consolidated Financial Statements include historical financial statements of, and transactions applicable to, the Company and reflect its financial position, results of operations and cash flows. The Company has interests in Emirati and Kuwaiti business ventures with Majid al Futtaim Lifestyle L.L.C. (“MAF”), each of which meets the definition of a variable interest entity (“VIE”). The purpose of the business ventures with MAF is to operate stores in the United Arab Emirates and Kuwait. The Company is deemed to be the primary beneficiary of these VIEs; therefore, the Company has consolidated the operating results, assets and liabilities of these VIEs, with the noncontrolling interests’ (“NCI”) portions of net income presented as net income attributable to NCI on the Consolidated Statements of Operations and Comprehensive Income and the NCI portion of stockholders’ equity presented as NCI on the Consolidated Balance Sheets. Fiscal year The Company’s fiscal year ends on the Saturday closest to January 31. This typically results in a fifty-two week year, but occasionally gives rise to an additional week, resulting in a fifty-three week year, as was the case in Fiscal 2023. Fiscal years are designated in the Consolidated Financial Statements and notes by the calendar year in which the fiscal year commences. All references herein to the Company’s fiscal years are as follows: Fiscal year Year ended/ ending Number of weeks Fiscal 2022 January 28, 2023 52 Fiscal 2023 February 3, 2024 53 Fiscal 2024 February 1, 2025 52 Fiscal 2025 January 31, 2026 52 Fiscal 2026 January 30, 2027 52 Use of estimates The preparation of financial statements, in conformity with U.S. generally accepted accounting principles (“GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Due to the inherent uncertainty involved with estimates, actual results may differ. Additionally, these estimates and assumptions may change as a result of the impact of global economic conditions such as the uncertainty regarding a slowing economy, volatile interest rates, continued inflation, fluctuation in foreign exchange rates, and geopolitical concerns, all of which could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Abercrombie & Fitch Co. 51 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Cash and equivalents A summary of cash and equivalents on the Consolidated Balance Sheets follows: (in thousands) January 31, 2026 February 1, 2025 Cash (1) $ 398,663 $ 467,642 Cash equivalents: (2) Time deposits 19,109 1,013 Money market funds 341,768 304,072 Cash and equivalents $ 759,540 $ 772,727 (1) Primarily consists of amounts on deposit with financial institutions. (2) Investments with original maturities of less than three months. Consolidated Statements of Cash Flows reconciliation The following table provides a reconciliation of cash and equivalents and restricted cash and equivalents to the amounts shown on the Consolidated Statements of Cash Flows: (in thousands) Location January 31, 2026 February 1, 2025 February 3, 2024 Cash and equivalents Cash and equivalents $ 759,540 $ 772,727 $ 900,884 Restricted cash and equivalents (1) Other assets 7,376 7,668 8,801 Cash and equivalents and restricted cash and equivalents $ 766,916 $ 780,395 $ 909,685 (1) Restricted cash and equivalents primarily consist of amounts on deposit with banks that are used as collateral for customary non-debt banking commitments and deposits into trust accounts to conform to standard insurance security requirements. Marketable securities Marketable securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and recorded at amortized cost. Marketable securities consist of short-term investments of time deposits with original maturities greater than three months and with maturities within one year as of balance sheet date. Interest income is recognized when earned. Cash inflows and outflows related to the sale and purchase of marketable securities are classified as investing activities on the Consolidated Statements of Cash Flows. Refer to Note 6, “ INVESTMENTS .” Receivables Receivables on the Consolidated Balance Sheets primarily include credit card receivables, lessor construction allowance and lease incentive receivables, value added tax (“VAT”) receivables and trade receivables or refunds. As part of the normal course of business, the Company has approximately three to four days of proceeds from sales transactions outstanding with its third-party credit card vendors at any point. The Company classifies these outstanding balances as credit card receivables. Lessor construction allowances are recorded for certain store lease agreements for improvements completed by the Company. VAT receivables are payments the Company has made on purchases of goods that will be recovered as those goods are sold. Trade receivables are amounts billed by the Company to wholesale, franchise and licensing partners in the ordinary course of business. 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. Inventories 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. 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. Additionally, as part of inventory valuation, inventory shrinkage estimates based on historical trends from actual physical inventories are made each quarter that reduce the inventory value for lost or stolen items. The Company performs physical inventories on a periodic basis and adjusts the gross inventory balance and shrink estimate accordingly. The Company’s global sourcing of merchandise is generally negotiated, contracted, and settled in U.S. Dollars. Abercrombie & Fitch Co. 52 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Other current assets Other current assets on the Consolidated Balance Sheets consist of: prepaid expenses including those related to rent, information technology maintenance and taxes; current store supplies; derivative contracts and other. Property and equipment, net Depreciation of property and equipment is computed for financial reporting purposes on a straight-line basis using the following service lives: Category of property and equipment Service lives Information technology 3 - 7 years Furniture, fixtures and equipment 3 - 10 years Leasehold improvements 1 - 15 years Other property and equipment 5 years Buildings 30 years 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. Maintenance and repairs are charged to expense as incurred. Major remodels and improvements that extend the service lives of the related assets are capitalized. The Company capitalizes certain direct costs associated with the development and purchase of internal-use software within property and equipment and other assets. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, generally not exceeding seven years. Refer to Note 8, “ PROPERTY AND EQUIPMENT, NET .” Leases The Company determines if an arrangement is an operating lease at inception. For new operating leases, the Company recognizes an asset for the right to use a leased asset and a liability based on the present value of remaining lease payments over the lease term on the lease commencement date. The commencement date for new leases is when the lessor makes the leased asset available for use by the Company, typically the possession date. 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. The measurement of operating lease right-of-use assets and liabilities includes amounts related to: • Lease payments made prior to the lease commencement date; • Incentives from landlords received by the Company for signing a lease, including construction allowances or deferred lease credits paid to the Company by landlords towards construction and tenant improvement costs, which are presented as a reduction to the right-of-use asset recorded; • Fixed payments related to operating lease components, such as rent escalation payments scheduled at the lease commencement date; • Fixed payments related to nonlease components, such as taxes, insurance, and maintenance costs; and • Unamortized initial direct costs incurred in conjunction with securing a lease, including key money, which are amounts paid directly to a landlord in exchange for securing the lease, and leasehold acquisition costs, which are amounts paid to parties other than the landlord, such as an existing tenant, to secure the desired lease. The measurement of operating lease right-of-use assets and liabilities excludes amounts related to: • 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; • 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; and • 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. Abercrombie & Fitch Co. 53 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Certain of the Company’s operating leases include options to extend the lease or to terminate the lease. The Company assesses these operating leases and, depending on the facts and circumstances, may or may not include these options in the measurement of the Company’s operating lease right-of-use assets and liabilities. 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 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. Amortization and interest expense related to operating lease right-of-use assets and liabilities are generally calculated on a straight-line basis over the lease term. 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. The Company’s operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. In addition, the Company does not have any sublease arrangements with any related party. Refer to Note 9, “ LEASES .” Long-lived asset impairment For the purposes of asset impairment, 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. On at least a quarterly basis, management reviews the Company’s asset groups for indicators of impairment, which include, but are not limited to, material declines in operational performance, a history of losses, an expectation of future losses, adverse market conditions, store closure or relocation decisions, and any other events or changes in circumstances that would indicate the carrying amount of an asset group might not be recoverable. If an asset group displays an indicator of impairment, it is tested for recoverability by comparing the sum of the estimated future undiscounted cash flows attributable to the asset group to the carrying amount of the asset group. This recoverability test requires management to make assumptions and judgments related, but not limited, to management’s expectations for future cash flows from operating the store. The key assumption used in developing these projected cash flows used in the recoverability test is estimated sales growth rate. 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 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. Refer to Note 10, “ ASSET IMPAIRMENT .” Other assets 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 Rabbi Trust includes amounts, restricted in their use, to meet funding obligations to participants in the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan I, the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan II and the Supplemental Executive Retirement Plan. 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 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. The eligible implementation costs incurred of a cloud Abercrombie & Fitch Co. 54 2025 Form 10-K Table of Contents 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 .” Intellectual property Intellectual property primarily includes trademark assets associated with the Company’s international operations, consisting of finite-lived and indefinite-lived intangible assets. The Company’s finite-lived intangible assets are amortized over a useful life of 10 to 20 years. Supply Chain Finance Program Under the supply chain finance (“SCF”) program, which is administered by a third party, the Company’s vendors, at their sole discretion, are given the opportunity to sell receivables from the Company to a participating financial institution at a discount that leverages the Company’s credit profile. The commercial terms negotiated by the Company with its vendors are consistent, irrespective of whether a vendor participates in the SCF program. A participating vendor has the option to be paid by the financial institution earlier than the original invoice due date. The Company’s responsibility is limited to making payment on the terms originally negotiated by the Company with each vendor, regardless of whether the vendor sells its receivable to a financial institution. If a vendor chooses to participate in the SCF program, the Company pays the financial institution the stated amount of confirmed merchandise invoices on the stated maturity date, which is typically 60 days from the invoice date. The agreement with the financial institution does not require the Company to provide assets pledged as security or other forms of guarantees for the SCF program. As of 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: (in thousands) Fiscal 2025 Confirmed obligations outstanding at the beginning of the period $ 88,389 Invoices confirmed during the period 503,980 Confirmed invoices paid during the period ( 517,022 ) Confirmed obligations outstanding at the end of the period $ 75,347 Income taxes Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are recognized based on the difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using current enacted tax rates in effect for the years in which those temporary differences are expected to reverse. Inherent in the determination of the Company’s income tax liability and related deferred income tax balances are certain judgments and interpretations of enacted tax law and published guidance with respect to applicability to the Company’s operations. The Company is subject to audit by taxing authorities, usually several years after tax returns have been filed, and the taxing authorities may have differing interpretations of tax laws. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records tax expense or benefit that does not relate to ordinary income in the current fiscal year discretely in the period in which it occurs. Examples of such types of discrete items include, but are not limited to: changes in estimates of the outcome of tax matters related to prior years, assessments of valuation allowances, return-to-provision adjustments, tax-exempt income, the settlement of tax audits and changes in tax legislation and/or regulations. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. 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. 55 2025 Form 10-K Table of Contents 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. The number of years with open tax audits varies depending on the tax jurisdiction. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, the Company believes that its reserves reflect the probable outcome of known tax contingencies. Unfavorable settlement of any particular issue may require use of the Company’s cash. 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. Refer to Note 12, “ INCOME TAXES .” Foreign currency translation and transactions The functional currencies of the Company’s foreign subsidiaries are generally the currencies of the environments in which each subsidiary primarily generates and expends cash, which is often the local currency of the country in which each subsidiary operates. The financial statements of the Company’s foreign subsidiaries with functional currencies other than the U.S. Dollar are translated into U.S. Dollars (the Company’s reporting currency) as follows: assets and liabilities are translated at the exchange rate prevailing at the balance sheet date, equity accounts are translated at historical exchange rates, and revenues and expenses are translated at the monthly average exchange rate for the period. Foreign currency transactions, which are transactions denominated in a currency other than the entity’s functional currency, are initially measured in the functional currency of the recording entity using the exchange rate in effect at that date. 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) (“OCI”). Derivative instruments The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivative instruments, primarily forward contracts, to manage the financial impacts of these exposures. The Company does not use forward contracts to engage in currency speculation and does not enter into derivative financial instruments for trading purposes. In order to qualify for hedge accounting treatment, a derivative instrument must be considered highly effective at offsetting changes in either the hedged item’s cash flows or fair value. Additionally, the hedge relationship must be documented to include the risk management objective and strategy, the hedging instrument, the hedged item, the risk exposure, and how hedge effectiveness will be assessed prospectively and retrospectively. The extent to which a hedging instrument has been, and is expected to continue to be, effective at offsetting changes in fair value or cash flows is assessed and documented at least quarterly. If the underlying hedged item is no longer probable of occurring, hedge accounting is discontinued. 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 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. However, for cash flow hedges that are terminated because the forecasted transaction is not expected to occur in the original specified time period, or a two-month period thereafter, the derivative instrument gains or losses are immediately recognized in earnings. The Company uses derivative instruments, primarily forward contracts designated as cash flow hedges, to hedge the foreign currency exchange rate exposure associated with forecasted foreign-currency-denominated intercompany inventory transactions with foreign subsidiaries before inventory is sold to third parties. Fluctuations in exchange rates will either increase or decrease the Company’s intercompany equivalent cash flows and affect the Company’s U.S. Dollar earnings. Gains or losses on the foreign currency exchange forward contracts that are used to hedge these exposures are expected to partially offset this variability. Foreign currency exchange forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed upon settlement date. These forward contracts typically have a maximum term of twelve months. 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. 56 2025 Form 10-K Table of Contents 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. Fluctuations in foreign currency exchange rates result in transaction gains and losses being recorded in earnings as monetary assets and liabilities are remeasured at the spot exchange rate at the Company’s fiscal month-end or upon settlement. The Company has chosen not to apply hedge accounting to these foreign currency exchange forward contracts because there are no differences in the timing of gain or loss recognition on the hedging instruments and the hedged items. The Company presents its derivative assets and derivative liabilities at their gross fair values within other current assets and accrued liabilities, respectively, on the Consolidated Balance Sheets. However, the Company’s derivative instruments allow net settlements under certain conditions. Refer to Note 15, “ DERIVATIVE INSTRUMENTS . ” Stockholders’ equity 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) January 31, 2026 February 1, 2025 Class A Common Stock Shares authorized 150,000 150,000 Shares issued 103,300 103,300 Shares outstanding 45,005 49,735 Class B Common Stock (1) Shares authorized 106,400 106,400 (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. Revenue recognition The Company recognizes revenue from product sales when control of the good is transferred to the customer, generally upon pick up at, or shipment from, a Company location. Revenue is recorded net of estimated returns, associate discounts, promotions and other similar customer incentives. The Company estimates reserves for sales returns based on historical experience among other factors. The sales return reserve is classified in accrued expenses with a corresponding asset related to the projected returned merchandise recorded in inventory on the Consolidated Balance Sheets. The Company accounts for gift cards sold to customers by recognizing an unearned revenue liability at the time of sale, which is recognized as net sales when redeemed by the customer or when the Company has determined the likelihood of redemption to be remote, referred to as gift card breakage. Gift card breakage is recognized proportionally with gift card redemptions in net sales. Gift cards sold to customers do not expire or lose value over periods of inactivity and the Company is not required by law to escheat the value of unredeemed gift cards to the jurisdictions in which it operates. The Company also maintains loyalty programs, which primarily provide customers with the opportunity to earn points toward future merchandise discount rewards with qualifying purchases. The Company accounts for expected future reward redemptions by recognizing an unearned revenue liability as customers accumulate points, which remains until revenue is recognized at the earlier of redemption or expiration. Unearned revenue liabilities related to the Company’s gift card program and loyalty programs are classified in accrued expenses on the Consolidated Balance Sheets and are typically recognized as revenue within a 12-month period. For additional details on the Company’s unearned revenue liabilities related to the Company’s gift card and loyalty programs, refer to Note 4, “ REVENUE RECOGNITION .” The Company also recognizes revenue under wholesale arrangements when control passes to the wholesale partner, which is generally upon shipment. 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. 57 2025 Form 10-K Table of Contents 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. 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, 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. 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. Some retailers include all costs related to buying, design and distribution operations in cost of sales, while others may include either all or a portion of these costs in selling, general and administrative expenses. Selling expense 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; costs associated with operating stores including occupancy costs; including lease costs; utilities and other landlord expenses; depreciation and amortization; repairs and maintenance. Fulfillment costs primarily consists of costs related to the Company’s digital operations; shipping and handling costs; non-management employee compensation; and distribution center (“DC”) expenses. Marketing expenses include costs associated with the Company’s marketing and advertising activities. 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: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Shipping and handling costs $ 404,225 $ 410,004 $ 362,545 Marketing costs consist primarily of paid media advertising, direct digital advertising, including e-mail distribution, digital content and in-store photography and signage. Marketing costs related specifically to digital operations are expensed as incurred and the production of in-store photography and signage is expensed when the marketing campaign commences. All other marketing costs are expensed as incurred. A summary of marketing costs follows: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Marketing costs $ 308,293 $ 270,598 $ 217,276 General and administrative expense General and administrative expense on the Consolidated Statements of Operations and Comprehensive Income primarily consists of: home office and support functions including; store management and DC management compensation; information technology; outside services, such as legal and consulting; depreciation, primarily related to IT and other home office assets; amortization related to trademark assets; costs to design and develop the Company’s merchandise; relocation; recruiting; and travel expenses. Abercrombie & Fitch Co. 58 2025 Form 10-K Table of Contents 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 (losses) gains $ ( 7,325 ) $ 2,665 $ 1,936 Interest expense and interest income Interest expense primarily consists of interest expense on the Company’s long-term borrowings outstanding. Interest income primarily consists of interest income earned on the Company’s investments and cash holdings and realized gains from the Rabbi Trust assets. Share-based compensation 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. 2016 Long-Term Incentive Plan for Directors (as amended effective May 20, 2020, the “2016 Directors LTIP”) and the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Associates (as amended effective June 8, 2023, the “2016 Associates LTIP”), or under a successor or replacement plan at each reporting date as of which share-based compensation awards remain outstanding, the Company may be required to designate some portion of the outstanding awards to be settled in cash, which would result in liability classification of such awards. The fair value of liability-classified awards would be re-measured each reporting date until such awards no longer remain outstanding or until sufficient shares of Common Stock become available to be issued under the existing plans or under a successor or replacement plan. 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. 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. In determining fair value, the Company does not take into account performance-based vesting requirements. Performance-based vesting requirements are taken into account in determining the number of awards expected to vest. For market-based restricted stock units, fair value is calculated using a Monte Carlo simulation with the number of shares that ultimately vest dependent on the Company’s total stockholder return measured against the total stockholder return of a select group of peer companies over a three-year period. 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. Service-based restricted stock units are expensed on a straight-line basis over the award’s requisite service period. Performance-based restricted stock units subject to graded vesting are expensed on an accelerated attribution basis. Performance share award expense is primarily recognized in the performance period of the award’s requisite service period. Market-based restricted stock units without graded vesting features are expensed 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 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. 59 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Net Income per share attributable to A&F Net income per basic and diluted share attributable to A&F is computed based on the weighted-average number of outstanding shares of Common Stock. Additional information pertaining to net income per share attributable to A&F follows: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Shares of Common Stock issued 103,300 103,300 103,300 Weighted-average treasury shares ( 55,981 ) ( 52,461 ) ( 53,050 ) Weighted-average — basic shares 47,319 50,839 50,250 Dilutive effect of share-based compensation awards 1,157 2,132 2,476 Weighted-average — diluted shares 48,476 52,971 52,726 Anti-dilutive shares (1) 249 220 541 (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. Recent accounting pronouncements 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 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. For public business entities (PBEs), the requirement will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. 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): Disaggregation of Income Statement Expenses ASU 2025-01 - Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date The update requires a disaggregated disclosure of income statement expenses. The amendments in this update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The update is effective for fiscal years beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. Other than the new disclosure requirements, the adoption of this guidance will not have a significant impact on the Company’s consolidated financial statements. 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. 60 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 3. 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. 4. REVENUE RECOGNITION Disaggregation of revenue 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 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) $ 48,057 $ 45,364 $ 41,144 Loyalty programs liability 36,878 32,199 27,937 (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: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Revenue associated with gift card redemptions and gift card breakage $ 129,342 $ 141,380 $ 112,749 Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs 74,850 65,776 56,406 Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition ,” for discussion regarding significant accounting policies related to the Company’s revenue recognition. Abercrombie & Fitch Co. 61 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 5. FAIR VALUE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized based on a three-level hierarchy. The three levels of inputs to measure fair value are as follows: • Level 1—inputs are unadjusted quoted prices for identical assets or liabilities that are available in active markets that the Company can access at the measurement date. • Level 2—inputs are other than quoted market prices included within Level 1 that are observable for assets or liabilities, directly or indirectly. • Level 3—inputs to the valuation methodology are unobservable. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. 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 January 31, 2026 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1) $ 341,768 $ 19,109 $ — $ 360,877 Derivative instruments (2) — 350 — 350 Rabbi Trust assets (3) 1,164 55,443 — 56,607 Restricted cash equivalents (1) 3,089 629 — 3,718 Total assets $ 346,021 $ 75,531 $ — $ 421,552 Liabilities: 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 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1) $ 304,072 $ 1,013 $ — $ 305,085 Derivative instruments (2) — 4,315 — 4,315 Rabbi Trust assets (3) 1,164 53,921 — 55,085 Restricted cash equivalents (1) 3,070 1,496 — 4,566 Total assets measured at fair value $ 308,306 $ 60,745 $ — $ 369,051 (1) Level 1 assets consisted of investments in money market funds and U.S. treasury bills. Level 2 assets consisted of time deposits with original maturities of less than three months. (2) Level 2 assets and liabilities consisted of foreign currency exchange forward contracts. (3) Level 1 assets consisted of investments in money market funds. Level 2 assets consisted of trust-owned life insurance policies. The Company’s Level 2 assets and liabilities consisted of: • Trust-owned life insurance policies, which were valued using the cash surrender value of the life insurance policies; • Time deposits with original maturities of three months or less, which were valued at cost, approximating fair value, due to the short-term nature of these investments; and • Derivative instruments, primarily foreign currency exchange forward contracts, which were valued using quoted market prices of the same or similar instruments, adjusted for counterparty risk. The Company also holds certain investments that are not measured at fair value on a recurring basis on the Consolidated Balance Sheets, including held-to-maturity securities. Held-to-maturity securities consist primarily of time deposits with maturities less than one year, which are valued at amortized cost, approximating fair value. Abercrombie & Fitch Co. 62 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 6. INVESTMENTS Investments consisted of: January 31, 2026 February 1, 2025 (in thousands) Investments Marketable securities Time deposits $ 25,036 $ 116,221 Total Marketable securities $ 25,036 $ 116,221 Rabbi Trust assets (1) Trust-owned life insurance policies (at cash surrender value) $ 55,443 $ 53,921 Money market funds 1,164 1,164 Total Rabbi Trust assets $ 56,607 $ 55,085 (1) Rabbi Trust assets are included in Other assets on the Consolidated Balance Sheets and are restricted as to their use. Realized gains resulting from the change in cash surrender value and benefits paid pursuant to the trust-owned life insurance policies of the Rabbi Trust assets for Fiscal 2025, Fiscal 2024 and Fiscal 2023 were as follows: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Realized gains related to Rabbi Trust assets $ 1,523 $ 1,400 $ 1,978 Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ,” for further discussion related to the Company’s Marketable securities and Rabbi Trust assets. 7. INVENTORIES Inventories consisted of: (in thousands) January 31, 2026 February 1, 2025 Inventories at original cost $ 636,288 $ 603,602 Less: Lower of cost and net realizable value adjustment ( 35,070 ) ( 28,597 ) Inventories (1) $ 601,218 $ 575,005 (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: % of Total Company Merchandise Receipts (1) Location Fiscal 2025 Fiscal 2024 Fiscal 2023 Vietnam 37 % 35 % 34 % Cambodia 26 22 19 India 11 12 12 Other (2) 26 31 35 Total 100 % 100 % 100 % (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) No country included within this category sourced more than 10% of total merchandise receipts during any fiscal year presented above . Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories ,” for discussion regarding significant accounting policies related to the Company’s inventories. Abercrombie & Fitch Co. 63 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 8. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of: (in thousands) January 31, 2026 February 1, 2025 Land $ 28,599 $ 28,599 Buildings 239,070 238,131 Furniture, fixtures and equipment 695,651 657,849 Information technology 861,499 796,163 Leasehold improvements 906,791 842,824 Construction in progress 82,995 41,166 Other 1,139 1,139 Total 2,815,744 2,605,871 Less: Accumulated depreciation ( 2,141,665 ) ( 2,030,098 ) Property and equipment, net $ 674,079 $ 575,773 Depreciation expense for Fiscal 2025, Fiscal 2024 and Fiscal 2023 was $ 152.6 million, $ 150.8 million and $ 138.5 million, respectively. Refer to Note 10, “ ASSET IMPAIRMENT ,” for details related to property and equipment impairment charges incurred during Fiscal 2025, Fiscal 2024 and Fiscal 2023. 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. 9. LEASES The Company is a party to leases related to its Company-operated retail stores, as well as for certain of its distribution centers, office space, information technology and equipment. The following table provides a summary of the Company’s operating lease costs for Fiscal 2025, Fiscal 2024 and Fiscal 2023: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Single lease cost (1) $ 310,152 $ 264,794 $ 248,567 Variable lease cost (2) 192,195 186,795 168,881 Operating lease right-of-use asset impairment (3) 4,955 5,470 1,440 Sublease income ( 4,165 ) ( 3,928 ) ( 3,949 ) Total operating lease cost $ 503,137 $ 453,131 $ 414,939 (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 January 31, 2026 and February 1, 2025: January 31, 2026 February 1, 2025 Weighted-average remaining lease term (years) 5.5 4.9 Weighted-average discount rate 6.9 % 6.8 % Abercrombie & Fitch Co. 64 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 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 Fiscal 2027 286,893 Fiscal 2028 240,341 Fiscal 2029 184,138 Fiscal 2030 117,833 Fiscal 2031 and thereafter 280,752 Total undiscounted operating lease payments 1,422,228 Less: Imputed interest ( 254,133 ) Present value of operating lease liabilities $ 1,168,095 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. 10. ASSET IMPAIRMENT The following table provides additional details related to long-lived asset impairment charges: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 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) 922 — — Total asset impairment $ 11,484 $ 11,596 $ 8,289 (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. The impairment charges for Fiscal 2024 reduced the then carrying amount of the impaired stores’ assets to their fair value of approximately $ 8.2 million, including $ 7.3 million related to operating lease right-of-use assets. Asset impairment charges for Fiscal 2023 were related to certain of the Company’s store assets, primarily in the Americas and EMEA segments. 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. 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. Abercrombie & Fitch Co. 65 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 11. ACCRUED EXPENSES Accrued expenses consisted of: (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 71,649 77,509 Other (2) 248,076 242,671 Accrued expenses $ 465,549 $ 504,922 (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, 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 .” 12. INCOME TAXES 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 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. Should circumstances change, the net deferred tax assets may become subject to additional valuation allowances in the future. Additional valuation allowances would result in additional tax expense. Impact of valuation allowances and other tax benefits during Fiscal 2024 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 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. Abercrombie & Fitch Co. 66 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Components of income taxes Income before income taxes consisted of: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Domestic (1) $ 754,175 $ 757,835 $ 526,967 Foreign ( 33,403 ) 10,842 ( 42,668 ) Income before income taxes $ 720,772 $ 768,677 $ 484,299 (1) Includes intercompany charges to foreign affiliates for management fees, cost-sharing, royalties and interest and excludes a portion of foreign income that is currently includable on the U.S. federal income tax return. Income tax expense consisted of: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Current: Federal $ 113,733 $ 150,061 $ 113,765 State 38,061 40,942 32,299 Foreign 12,605 15,936 7,565 Total current $ 164,399 $ 206,939 $ 153,629 Deferred: Federal $ 33,145 $ ( 11,664 ) $ ( 9,160 ) State 4,716 ( 834 ) ( 1,196 ) Foreign 3,517 220 5,613 Total deferred 41,378 ( 12,278 ) ( 4,743 ) 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 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. The Company accrues for both state income taxes and foreign withholding taxes with respect to earnings and profits earned after February 2, 2019, in such a manner that these funds may be repatriated without incurring additional tax expense. Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows: Fiscal 2025 Fiscal 2024 Fiscal 2023 Amount % Amount % Amount % U.S. 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 Switzerland 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 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 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. 67 2025 Form 10-K Table of Contents 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. The effective tax rate remains sensitive to jurisdictional mix. The taxation of non-U.S. operations line items in the table above excludes items related to the Company's non-U.S. operations reported separately in the appropriate corresponding line items. For Fiscal 2025, Fiscal 2024, and Fiscal 2023, the impact of taxation of non-U.S. 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. Components of deferred income tax assets and deferred income tax liabilities 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: Operating lease liabilities $ 292,708 $ 241,873 Intangibles, foreign step-up in basis 66,977 58,755 Net operating losses (NOL), tax credit and other carryforwards 111,804 91,995 Accrued expenses and reserves 36,150 35,402 Deferred compensation 18,759 18,275 Inventory 14,069 9,996 Property and equipment and intangibles — 1,129 Other 2,758 5,480 Valuation allowances ( 184,785 ) ( 151,810 ) Total deferred income tax assets $ 358,440 $ 311,095 Deferred income tax liabilities: Operating lease right-of-use assets $ ( 272,314 ) $ ( 223,384 ) Prepaid expenses ( 2,668 ) ( 2,809 ) Store supplies ( 1,866 ) ( 1,835 ) Undistributed profits of non-U.S. subsidiaries ( 1,465 ) ( 1,400 ) Property and equipment and intangibles ( 35,197 ) — Other ( 5,230 ) ( 2,340 ) Total deferred income tax liabilities $ ( 318,740 ) $ ( 231,768 ) Net deferred income tax assets $ 39,700 $ 79,327 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 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. 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. In such case, the Company will record an adjustment in the period in which a determination is made. The Company continues to review the need for valuation allowances on a quarterly basis. Share-based compensation 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. Other 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. 68 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Net cash paid (refunds received) for income taxes consisted of the following: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Federal $ 136,869 $ 160,554 $ 84,791 State and local jurisdictions 38,310 43,413 29,132 Foreign 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. federal income tax returns for Fiscal 2025 and 2024 as part of the IRS’ Compliance Assurance Process program. The IRS examinations for Fiscal 2022 and prior years have been completed. State and foreign returns are generally subject to examination for a period of three to five years after the filing of the respective return. The Company typically has various state and foreign income tax returns in the process of examination, administrative appeals or litigation. The outcome of the examinations is not expected to have a material impact on the Company’s financial statements. 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. Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes ,” for discussion regarding significant accounting policies related to the Company’s income taxes. 13. BORROWINGS 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. 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. ABL Facility 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. 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 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. 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 January 31, 2026. Representations, warranties and covenants The agreements related to the ABL Facility contain various representations, warranties and restrictive covenants that, among other things and subject to specified exceptions, restrict the ability of the Company and its subsidiaries to: grant or incur liens; incur, assume or guarantee additional indebtedness; sell or otherwise dispose of assets, including capital stock of subsidiaries; Abercrombie & Fitch Co. 69 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. make investments in certain subsidiaries; pay dividends, make distributions or redeem or repurchase capital stock; change the nature of their business; and consolidate or merge with or into, or sell substantially all of the assets of the Company or A&F Management to another entity. Certain of the agreements related to the ABL Facility also contain certain affirmative covenants, including reporting requirements, such as delivery of financial statements, certificates and notices of certain events, maintaining insurance and providing additional guarantees and collateral in certain circumstances. The Company was in compliance with all covenants under these agreements as of January 31, 2026. 14. 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; and (ii) the 2016 Associates LTIP, with 10,965,000 shares of Common Stock authorized for issuance, under which the Company is authorized to grant restricted stock, restricted stock units, performance share awards, stock appreciation rights and stock options to associates of the Company. The Company also has outstanding shares from two other share-based compensation plans under which the Company granted restricted stock units, performance share awards, stock appreciation rights and stock options to associates of the Company and restricted stock units, stock options and deferred stock awards to non-associate members of the Board of Directors in prior years. No new shares may be granted under these previously-authorized plans and any outstanding awards continue in effect in accordance with their respective terms. The 2016 Directors LTIP, a stockholder-approved plan, permits the Company to annually grant awards to non-associate directors, subject to the following limits: • For non-associate directors: awards with an aggregate fair market value on the date of the grant of no more than $ 300,000 ; • For the non-associate director occupying the role of Non-Executive Chairperson of the Board (if any): additional awards with an aggregate fair market value on the date of grant of no more than $ 500,000 ; and • For the non-associate director occupying the role of Executive Chairperson of the Board (if any): additional awards with an aggregate fair market value on the date of grant of no more than $ 2,500,000 . Under the 2016 Directors LTIP, restricted stock units are subject to a minimum vesting period ending no sooner than the earlier of (i) the first anniversary of the grant date or (ii) the date of the next regularly scheduled annual meeting of stockholders held after the grant date. Any stock appreciation rights or stock options granted under this plan have the same minimum vesting period requirements as restricted stock units and, in addition, must have a term that does not exceed a period of ten years from the grant date, subject to forfeiture under the terms of the 2016 Directors LTIP. The 2016 Associates LTIP, a stockholder-approved plan, permits the Company to annually grant one or more types of awards covering up to an aggregate for all awards of 1.0 million underlying shares of the Common Stock to any associate of the Company. Under the 2016 Associates LTIP, for restricted stock units that have performance-based vesting, performance must be measured over a period of at least one year and for restricted stock units that do not have performance-based vesting, vesting in full may not occur more quickly than in pro-rata installments over a period of three years from the date of the grant, with the first installment vesting no sooner than the first anniversary of the date of the grant. In addition, any stock options or stock appreciation rights granted under this plan must have a minimum vesting period of one year and a term that does not exceed a period of ten years from the grant date, subject to forfeiture under the terms of the 2016 Associates LTIP. 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. 70 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Financial statement impact The following table details share-based compensation expense and the related income tax benefit for Fiscal 2025, Fiscal 2024 and Fiscal 2023: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Share-based compensation expense $ 39,048 $ 38,667 $ 40,122 Income tax benefit associated with share-based compensation expense recognized during the period 5,727 5,117 4,350 The following table details discrete income tax benefits and charges related to share-based compensation awards during Fiscal 2025, Fiscal 2024 and Fiscal 2023: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Income tax discrete benefits realized for tax deductions related to the issuance of shares during the period $ 6,084 $ 19,474 $ 2,709 Income tax discrete charges realized upon cancellation of stock appreciation rights during the period — — ( 101 ) Total income tax discrete benefits related to share-based compensation awards $ 6,084 $ 19,474 $ 2,608 The following table details the amount of employee tax withheld by the Company upon the issuance of shares associated with restricted stock units vesting and the exercise of stock appreciation rights for the Fiscal 2025, Fiscal 2024 and Fiscal 2023: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Employee tax withheld upon issuance of shares (1) $ 36,685 $ 70,208 $ 29,485 (1) Classified within financing activities on the Consolidated Statements of Cash Flows. Restricted Stock Units The following table summarizes activity for restricted stock units for Fiscal 2025: Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Number of Underlying Shares Weighted- Average Grant Date Fair Value Number of Underlying Shares (1) Weighted- Average Grant Date Fair Value Number of Underlying Shares (1) Weighted- Average Grant Date Fair Value Unvested at February 1, 2025 1,173,185 $ 47.95 424,541 $ 40.76 212,287 $ 58.95 Granted 455,782 80.08 95,309 78.69 47,663 85.88 Change due to performance criteria achievement — — 152,539 30.12 87,168 41.38 Vested ( 586,654 ) 40.62 ( 326,867 ) 30.12 ( 174,336 ) 41.38 Forfeited ( 66,509 ) 57.68 ( 2,956 ) 89.06 ( 1,478 ) 109.36 Unvested at January 31, 2026 (1) 975,804 $ 66.81 342,566 $ 56.31 171,304 $ 74.95 (1) Unvested shares related to restricted stock units with performance-based and market-based vesting conditions are reflected at 100 % of their target vesting amount in the table above. Unvested shares related to restricted stock units with performance-based and market-based vesting conditions can be achieved 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 January 31, 2026: (in thousands) Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Unrecognized compensation cost $ 43,243 $ 7,043 $ 4,989 Remaining weighted-average period cost is expected to be recognized (years) 1.2 0.8 0.9 Abercrombie & Fitch Co. 71 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Additional information pertaining to restricted stock units for Fiscal 2025, Fiscal 2024 and Fiscal 2023 follows: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Service-based restricted stock units: Total grant date fair value of awards granted $ 36,499 $ 29,702 $ 26,237 Total grant date fair value of awards vested 23,830 21,935 23,326 Total intrinsic value of awards vested 48,396 115,768 44,110 Performance-based restricted stock units: Total grant date fair value of awards granted 7,500 6,483 6,300 Total grant date fair value of awards vested 9,845 9,659 — Total intrinsic value of awards vested 24,963 39,670 — Market-based restricted stock units: Total grant date fair value of awards granted 4,093 4,860 4,576 Total grant date fair value of awards vested 7,214 7,574 16,040 Total intrinsic value of awards vested 13,314 19,836 24,890 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: Fiscal 2025 Fiscal 2024 Fiscal 2023 Grant date market price $ 78.69 $ 120.56 $ 28.36 Fair value 85.88 180.71 41.20 Assumptions: Price volatility 61 % 59 % 63 % Expected term (years) 2.9 2.9 2.9 Risk-free interest rate 3.8 % 4.3 % 4.6 % Dividend yield — — — Average volatility of peer companies 45.6 % 51.8 % 66.0 % Average correlation coefficient of peer companies 0.4430 0.4866 0.5295 Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-Based Compensation ,” for discussion regarding significant accounting policies related to share-based compensation. Abercrombie & Fitch Co. 72 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 15. DERIVATIVE INSTRUMENTS 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) Euro $ 62,050 British pound 64,302 Canadian dollar 29,766 (1) Amounts reported are the U.S. 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) Chinese RMB $ 1,338 Euro 24,131 (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 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 Other current assets $ 24 $ 4,315 Accrued expenses $ 2,336 $ — Derivatives not designated as hedging instruments Other current assets 326 — Accrued expenses — — Total $ 350 $ 4,315 $ 2,336 $ — Refer to Note 5, “ FAIR VALUE , ” for further discussion of the determination of the fair value of derivative instruments. Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow hedging instruments for Fiscal 2025, Fiscal 2024 and Fiscal 2023 follows: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 (Loss) gain recognized in AOCL (1) $ ( 14,692 ) $ 6,473 $ 3,618 (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 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: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Gain(loss) recognized in other operating income, net $ 686 $ 370 $ ( 1,206 ) Refer to Note 2, “ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative Instruments ,” for discussion regarding significant accounting policies related to the Company’s derivative instruments. Abercrombie & Fitch Co. 73 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 16. ACCUMULATED OTHER COMPREHENSIVE LOSS For Fiscal 2025, the activity in AOCL was as follows: Fiscal 2025 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at February 1, 2025 $ ( 143,883 ) $ 4,732 $ ( 139,151 ) Other comprehensive income (loss) before reclassifications 20,348 ( 14,692 ) 5,656 Reclassified loss from AOCL (1) — 7,012 7,012 Tax effect — 315 315 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 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: Fiscal 2024 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at February 3, 2024 $ ( 136,532 ) $ 564 $ ( 135,968 ) Other comprehensive (loss) income before reclassifications ( 7,351 ) 6,473 ( 878 ) Reclassified gain from AOCL (1) — ( 2,113 ) ( 2,113 ) Tax effect — ( 192 ) ( 192 ) Other comprehensive (loss) income after reclassifications ( 7,351 ) 4,168 ( 3,183 ) Ending balance at February 1, 2025 $ ( 143,883 ) $ 4,732 $ ( 139,151 ) (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: Fiscal 2023 (in thousands) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Derivative Financial Instruments Total Beginning balance at January 28, 2023 $ ( 132,653 ) $ ( 4,874 ) $ ( 137,527 ) Other comprehensive (loss) income before reclassifications ( 3,879 ) 3,618 ( 261 ) Reclassified loss from AOCL (1) — 1,846 1,846 Tax effect — ( 26 ) ( 26 ) 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. 74 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 17. SAVINGS AND RETIREMENT PLANS The Company maintains the Abercrombie & Fitch Co. Savings and Retirement Plan, a qualified plan. All U.S. associates are eligible to participate in this plan if they are at least 21 years of age. In addition, the Company maintains the Abercrombie & Fitch Nonqualified Savings and Supplemental Retirement Plan, comprised of two sub-plans (Plan I and Plan II). Plan I contains contributions made through December 31, 2004, while Plan II contains contributions made on and after January 1, 2005. Participation in these plans is based on service and compensation. The Company’s contributions to these plans are based on a percentage of associates’ eligible annual compensation. 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. 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. 18. SEGMENT REPORTING The Company’s reportable segments are based on the financial information the chief operating decision maker (“CODM”) uses to allocate resources and assess performance of its business. The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; Europe, the Middle East and Africa (EMEA); and Asia-Pacific (APAC). Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company’s segments, and therefore are included as a reconciling item between segment and total operating income (loss). The Americas reportable segment includes the results of operations in North America and South America. The EMEA reportable segment includes the results of operations in Europe, the Middle East and Africa. The APAC reportable segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The group comprised of the Company’s (i) Chief Executive Officer, (ii) Chief Operating Officer, and (iii) Chief Financial Officer functions as the Company’s CODM. The Company’s CODM manages business operations and evaluates the performance of each segment based on the net sales and operating income (loss) of the segment. The CODM considers actual performance relative to expectations, and growth potential to determine the appropriate allocation of resources to each segment. Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributed to the segment. Corporate/other expenses include expenses incurred that are not directly attributed to a reportable segment and primarily relate to corporate or global functions such as design, sourcing, brand management, corporate strategy, information technology, finance, treasury, legal, human resources, and other corporate support services, as well as certain globally managed components of the planning, merchandising, and marketing functions. The Company reports inventories by segment as that information is used by the CODM in determining allocation of resources to the segments. The Company does not report its other assets by segment as that information is not used by the CODM in assessing segment performance or allocating resources. Abercrombie & Fitch Co. 75 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. 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. Fiscal 2025 (in thousands) Americas (1) EMEA APAC Total Net Sales $ 4,290,395 $ 818,140 $ 157,757 $ 5,266,292 Cost of sales, exclusive of depreciation and amortization 1,648,847 320,557 59,480 2,028,884 Store occupancy (2) 362,255 122,036 48,820 533,111 Fulfillment (2) 400,501 95,771 20,527 516,799 Other expense (3) 691,539 188,262 56,527 936,328 Segment income (loss) $ 1,187,253 $ 91,514 $ ( 27,597 ) $ 1,251,170 Operating loss not attributed to segments: Corporate and other unallocated expenses (4) ( 552,027 ) Operating income $ 699,143 Interest expense (income), Net ( 21,629 ) Income before income taxes $ 720,772 Depreciation and amortization $ 87,630 $ 24,166 $ 7,931 $ 119,727 Depreciation and amortization not attributed to segments 35,294 Total depreciation and amortization $ 155,021 Capital expenditures $ 144,316 $ 41,985 $ 15,629 $ 201,930 Capital expenditures not attributed to segments 38,844 Total capital expenditures $ 240,774 Fiscal 2024 (in thousands) Americas (1) EMEA APAC Total Net Sales $ 4,027,514 $ 770,519 $ 150,554 $ 4,948,587 Cost of sales, exclusive of depreciation and amortization 1,436,161 285,734 52,031 1,773,926 Store occupancy (2) 327,458 114,664 33,545 475,667 Fulfillment (2) 403,114 83,832 19,306 506,252 Other expense (3) 650,288 176,468 57,683 884,439 Segment income (loss) $ 1,210,493 $ 109,821 $ ( 12,011 ) $ 1,308,303 Operating loss not attributed to segments: Corporate and other unallocated expenses (4) ( 567,483 ) Operating income $ 740,820 Interest expense (income), Net ( 27,857 ) Income before income taxes $ 768,677 Depreciation and amortization $ 85,207 $ 25,070 $ 7,975 $ 118,252 Depreciation and amortization not attributed to segments 35,521 Total depreciation and amortization $ 153,773 Capital expenditures $ 99,571 $ 17,764 $ 15,240 $ 132,575 Capital expenditures not attributed to segments 50,328 Total capital expenditures $ 182,903 Abercrombie & Fitch Co. 76 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Fiscal 2023 (in thousands) Americas (1) EMEA APAC Total Net Sales $ 3,455,674 $ 687,095 $ 137,908 $ 4,280,677 Cost of sales, exclusive of depreciation and amortization 1,279,050 259,347 48,868 1,587,265 Store occupancy (2) 312,340 120,118 30,982 463,440 Fulfillment (2) 353,538 72,610 17,505 443,653 Other expense (3) 570,454 153,804 51,111 775,369 Segment income (loss) $ 940,292 $ 81,216 $ ( 10,558 ) $ 1,010,950 Operating loss not attributed to segments: Corporate and other unallocated expenses (4) ( 526,279 ) Operating income $ 484,671 Interest expense (income), Net 372 Income before income taxes $ 484,299 Depreciation and amortization $ 73,779 $ 26,782 $ 5,921 $ 106,482 Depreciation and amortization not attributed to segments 34,622 Total depreciation and amortization $ 141,104 Capital expenditures $ 78,062 $ 26,019 $ 4,331 $ 108,412 Capital expenditures not attributed to segments 49,385 Total capital expenditures $ 157,797 (1) Includes the U.S., Canada, and Latin America. Net sales in the U.S. 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. (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. (4) Corporate and other unallocated expenses represent corporate overhead expenses that have not been allocated to any segment. (in thousands) January 31, 2026 February 1, 2025 February 3, 2024 Assets Inventories Americas $ 480,078 $ 463,148 $ 372,371 EMEA 94,292 88,728 77,125 APAC 26,848 23,129 19,970 Total inventories $ 601,218 $ 575,005 $ 469,466 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 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) $ 1,165,532 $ 991,673 $ 897,315 EMEA (3) 398,189 292,285 288,967 APAC 125,433 114,388 50,324 Total $ 1,689,154 $ 1,398,346 $ 1,236,606 (1) Includes the U.S., Canada, and Latin America. Long-lived assets and intellectual property located in the U.S. were $ 1.1 billion, $ 965 million, and $ 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. 77 2025 Form 10-K Table of Contents Abercrombie & Fitch Co. Brand information The following table provides additional disaggregated revenue information, which is categorized by brand, for Fiscal 2025 , Fiscal 2024 and Fiscal 2023 were as follows: (in thousands) Fiscal 2025 Fiscal 2024 Fiscal 2023 Abercrombie $ 2,523,662 $ 2,556,434 $ 2,201,686 Hollister 2,742,630 2,392,153 2,078,991 Total $ 5,266,292 $ 4,948,587 $ 4,280,677 19. CONTINGENCIES The Company and its affiliates are defendants in lawsuits and other adversary proceedings that may range from individual actions involving a single plaintiff to class action lawsuits. The Company’s legal costs incurred in connection with the resolution of claims and lawsuits are generally expensed as incurred, and the Company establishes estimated liabilities for the outcome of litigation where losses are deemed probable and the amount of loss, or range of loss, is reasonably estimable. The Company also determines estimates of reasonably possible losses or ranges of reasonably possible losses in excess of related accrued liabilities, if any, when it has determined that a loss is reasonably possible and it is able to determine such estimates. Based on currently available information, the Company cannot estimate a range of reasonably possible losses in excess of the accrued charges for legal contingencies. In addition, the Company has not established accruals for certain claims and legal proceedings pending against the Company where it is not possible to reasonably estimate the outcome or potential liability, and the Company cannot estimate a range of reasonably possible losses for these legal matters. Actual liabilities may differ from the amounts recorded, due to uncertainties regarding final settlement agreement negotiations, court approvals and the terms of any approval by the courts, and there can be no assurance that final resolution of legal matters will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s assessment of the current exposure could change in the event of the discovery of additional facts. 20. 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. Tariffs 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. 78 2025 Form 10-K Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Abercrombie & Fitch Co. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Abercrombie & Fitch Co. 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 The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Abercrombie & Fitch Co. 79 2025 Form 10-K Table of Contents Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Impairment of Long-Lived Assets – Stores 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. On at least a quarterly basis, management reviews the Company’s asset groups for indicators of impairment, which include, but are not limited to, material declines in operational performance, a history of losses, an expectation of future losses, adverse market conditions, store closure or relocation decisions, and any other events or changes in circumstances that would indicate the carrying amount of an asset group might not be recoverable. If an asset group displays an indicator of impairment, it is tested for recoverability by comparing the sum of the estimated future undiscounted cash flows attributable to the asset group to the carrying amount of the asset group. This recoverability test requires management to make assumptions and judgments related, but not limited, to management’s expectations for future cash flows from operating the store. The key assumption used in developing these projected cash flows used in the recoverability test is estimated sales growth rate. 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 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. 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. These procedures included testing the effectiveness of controls relating to management’s store impairment assessments, including controls over the recoverability test and fair value estimate of the asset groups. These procedures also included, among others (i) testing management’s process for 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; (ii) evaluating the appropriateness of the models used by management in estimating the fair value of the asset groups; (iii) testing the completeness and accuracy of underlying data used in the models; and (iv) evaluating the reasonableness of the significant assumptions used by management related to estimated sales growth rate when developing the future undiscounted cash flows and comparable market rents when estimating the fair value. Evaluating management’s assumptions involved evaluating whether the assumptions used by management were reasonable considering the current and past performance of the asset groups as it relates to estimated sales growth rate, the consistency with evidence obtained in other areas of the audit as it relates to estimated sales growth rate, and the consistency with external market data as it relates to estimated sales growth rate and comparable market rents. /s/ PricewaterhouseCoopers LLP Columbus, Ohio March 26, 2026 We have served as the Company’s auditor since 1996. Abercrombie & Fitch Co. 80 2025 Form 10-K Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.