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NEW ALBANY, Ohio, Feb. 8 /PRNewswire-FirstCall/ -- Abercrombie & Fitch Co. (NYSE: ANF) announced today that a derivative lawsuit was filed against the Company and certain present and former directors of the Board in the Delaware Court of Chancery asserting claims concerning the compensation arrangements involving Michael S. Jeffries, the Company's Chairman and Chief Executive Officer. The shareholder filing the suit owns approximately 2,000 shares of the company's common stock.
The Company stated that its Board has established a committee of independent directors that is reviewing the subject matter of the lawsuit.
Mr. Jeffries, who has been the Company's Chairman since May 1998 and its Chief Executive Officer since February 1992, is widely regarded as one of the country's most successful retailing executives and as an innovative creator and builder of highly recognized apparel and accessory brands.
The Company further noted that from January 30, 2003, the date of its employment agreement with Mr. Jeffries, through February 8, 2005, the date of the filing of the lawsuit, the value of the Company's shares has increased by more than 100% and its total stock market value has increased from $2.6 billion to more than $4.5 billion.
The Company operates 356 Abercrombie & Fitch stores, 171 Abercrombie stores, 256 Hollister Co. stores and 4 RUEHL stores as of January 31, 2005. The Company operates e-commerce websites at http://www.abercrombie.com , http://www.abercrombiekids.com , and http://www.hollisterco.com .
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
A&F cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this Press Release, A&F's Form 10-K or made by management of A&F involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the Company's control. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," and similar expressions may identify forward-looking statements. The following factors, in addition to those included in the disclosure under the heading "RISK FACTORS" in "ITEM 1. BUSINESS" of A&F's Annual Report on Form 10-K for the fiscal year ended January 31, 2004, in some cases have affected and in the future could affect the Company's financial performance and could cause actual results for the 2004 fiscal year and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this Press Release or otherwise made by management: changes in consumer spending patterns and consumer preferences; the effects of political and economic events and conditions domestically and in foreign jurisdictions in which the Company operates, including, but not limited to, acts of terrorism or war; the impact of competition and pricing; changes in weather patterns; postal rate increases and changes; paper and printing costs; market price of key raw materials; ability to source product from its global supplier base; political stability; currency and exchange risks and changes in existing or potential duties, tariffs or quotas; availability of suitable store locations at appropriate terms; ability to develop new merchandise; and ability to hire, train and retain associates, and the outcome of pending litigation. Future economic and industry trends that could potentially impact revenue and profitability are difficult to predict. Therefore, there can be no assurance that the forward-looking statements included in this Press Release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other person, that the objectives of the Company will be achieved. The forward-looking statements herein are based on information presently available to the management of the Company. Except as may be required by applicable law, the Company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
CONTACT: Nancy Berg
Abercrombie & Fitch
614-283-6845
SOURCE Abercrombie & Fitch Co.