SEC Filing | Abercrombie & Fitch Co.

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anf-20220302

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 2, 2022


Abercrombie & Fitch Co.
(Exact name of registrant as specified in its charter)


Delaware						1-12107	31-1469076
(State or other jurisdiction of incorporation or organization)						(Commission File Number)	(I.R.S. Employer Identification No.)

6301 Fitch Path	,	New Albany	,	Ohio			43054
(Address of principal executive offices)							(Zip Code)

Registrant’s telephone number, including area code:					(614)	283-6500


Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.01 Par Value

ANF

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On March 2, 2022, Abercrombie & Fitch Co. (the “Company”) issued a news release (the “Release”) reporting the Company’s unaudited financial results for the fourth quarter and fiscal year ended January 29, 2022. A copy of the Release is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

In conjunction with the Release, the Company also made available additional unaudited quarterly financial information for each of the quarters in the fiscal years ended January 29, 2022 and January 30, 2021, along with additional financial information for the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018. The additional financial information is included as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

In conjunction with the Release, the Company also made available an investor presentation of results for the fourth quarter and fiscal year ended January 29, 2022. The presentation, which is available under the “Investors” section of the Company’s website, located at corporate.abercrombie.com, is included as Exhibit 99.3 to this Current Report on Form 8-K and is incorporated herein by reference. Information on the Company’s website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission.

The Company’s management conducted a conference call on March 2, 2022 to review the Company’s financial results for the fourth quarter and fiscal year ended January 29, 2022. A copy of the transcript of the conference call is included as Exhibit 99.4 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(a) through (c) Not applicable

(d) Exhibits:

The following exhibits are included with this Current Report on Form 8-K:


Exhibit No.						Description
99.1						News release issued by Abercrombie & Fitch Co. on March 2, 2022

99.2						Additional unaudited financial information made available by Abercrombie & Fitch Co. on March 2, 2022

99.3						Investor presentation of results for the fourth quarter and fiscal year ended January 29, 2022 made available by Abercrombie & Fitch Co. on March 2, 2022

99.4						Transcript of conference call held by management of Abercrombie & Fitch Co. on March 2, 2022

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	Abercrombie & Fitch Co.

Dated: March 3, 2022	By:	/s/ Scott Lipesky
		Scott Lipesky
		Executive Vice President and Chief Financial Officer

Document

ABERCROMBIE & FITCH CO. REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

•Fourth quarter and full year operating margin of 8.4% and 9.2% on a reported basis, respectively, and 8.6% and 9.6% on an adjusted non-GAAP basis, the highest in over a decade.

•Fourth quarter and full year net income per diluted share of $1.12 and $4.20, respectively on a reported basis and $1.14 and $4.35, respectively on an adjusted non-GAAP basis.

•Repurchased $142 million, or 4.1 million shares in the fourth quarter for a total of $377 million, or 10.2 million shares in Fiscal 2021; contributing to a 15% reduction in shares outstanding from Fiscal 2020.

New Albany, Ohio, March 2, 2022: Abercrombie & Fitch Co. (NYSE: ANF) today announced results for the fourth quarter and fiscal year ended January 29, 2022. These compare to results for the fourth quarter and fiscal year ended January 30, 2021. Descriptions of the use of non-GAAP financial measures and reconciliations of GAAP and non-GAAP financial measures accompany this release.

Fran Horowitz, Chief Executive Officer, said, “2021 is a testament to the fundamental changes we have made to strengthen our foundation and improve our profitability. For the year, we delivered: Net sales of $3.7 billion with 47% digital penetration; a double-digit AUR growth rate; reported and adjusted operating income of $343 million and $355 million, respectively, roughly 330% above 2019 levels; and a 9.6% adjusted operating margin, our highest in over a decade. In addition, by returning cash to shareholders through share repurchases, we reduced our ending share count by 15%.”

“We are pleased with our recent performance. Following inventory receipt delays that impacted the peak holiday selling period, sales trends initially improved as product began to arrive. While mid-January was impacted by the Omicron surge, sales rebounded in late January as cases fell and new assortments set. Momentum has continued quarter-to-date, with an acceleration in the sales trend from total fourth quarter levels. Importantly, response to early spring assortments has been strong, and we do not anticipate significant inventory supply issues for the remainder of the quarter.”

“Looking ahead, we will continue to thoughtfully manage the business to support long-term growth leveraging our multi-year investments in systems, processes and tools across digital, technology and data and analytics. We look forward to sharing more details on our three-year plan at our June Investor Day.”

Details related to net income (loss) per diluted share for the fourth quarter and full year are as follows:


	Fourth Quarter				Full Year
	2021		2020		2021		2020 (1)
GAAP	$	1.12	$	1.27	$	4.20	$	(1.82)
Excluded items, net of tax effect (2)	(0.03)		(0.23)		(0.15)		(1.10)
Adjusted non-GAAP	$	1.14	$	1.50	$	4.35	$	(0.73)
Impact from changes in foreign currency exchange rates (3)	—		(0.01)		—		0.01
Adjusted non-GAAP constant currency	$	1.14	$	1.51	$	4.35	$	(0.74)

(1)Net loss per diluted share for the full year of fiscal 2020 includes adverse tax impacts of $101 million, or $1.61 per diluted share, related to valuation allowances on deferred tax assets and other tax charges as a result of the COVID-19 pandemic.

(2)Excluded items consist of pre-tax store asset impairment charges and the tax effect of pre-tax excluded items.

(3)The estimated impact from foreign currency is calculated by applying current period exchange rates to prior year results using a 26% tax rate.

A summary of results for the fourth quarter ended January 29, 2022:

•Net sales of $1.2 billion up 4% as compared to last year and down 2% as compared to pre-COVID, 2019 fourth quarter net sales.

•Digital net sales of $556 million or 48% of total net sales as compared to $475 million or 40% in the fourth quarter of 2019.

•Gross profit rate of 58.3%, down approximately 220 basis points as compared to last year and up 10 basis points as compared to 2019. Compared to 2019, higher average unit retail offset the adverse impact of approximately 700 basis points related to higher freight costs.

•Operating expense, excluding other operating income, was up 3% as compared to last year and up 3% compared to 2019. The year-over-year increase reflects an increase in payroll and marketing expenses partially offset by a decrease in store occupancy. Operating expense as a percentage of sales decreased to 50.2% from 50.5% last year and increased from 47.9% as compared to 2019.

•Operating income of $98 million and $100 million on a reported and adjusted non-GAAP basis, respectively, as compared to $116 million and $131 million last year, on a reported and adjusted non-GAAP basis, respectively.

•Net income per diluted share of $1.12 and $1.14 on a reported and adjusted non-GAAP basis, respectively, as compared to net income per diluted share last year of $1.27 and $1.50 on a reported and adjusted non-GAAP basis, respectively.

A summary of results for the full year ended January 29, 2022:

•Net sales of $3.7 billion up 19% as compared to last year and up 2% as compared to pre-COVID 2019 full year net sales.

•Digital net sales of $1.7 billion or 47% of total net sales as compared to $1.2 billion or 33% in fiscal 2019.

•Gross profit rate of 62.3%, up approximately 180 basis points as compared to last year and up 290 basis points as compared to 2019. Compared to 2019, higher AUR fully offset the adverse impact of approximately 370 basis points related to higher freight costs.

•Operating expense, excluding other operating income, was up 3% as compared to last year and down 5% compared to 2019. Operating expense as a percentage of sales decreased to 53.3% from 61.3% last year and from 57.5% as compared to 2019.

•Operating income of $343 million and $355 million on a reported and adjusted non-GAAP basis, respectively. This compares to operating (loss) income last year of $(20) million and $52 million on a reported and adjusted non-GAAP basis, respectively.

•Net income per diluted share of $4.20 and $4.35 on a reported and adjusted non-GAAP basis, respectively, as compared to net loss per diluted share last year of $(1.82) and $(0.73) on a reported and adjusted non-GAAP basis, respectively.

•Generated positive operating cash flows of $274 million during the full year ended January 29, 2022, ending the year with liquidity of approximately $1.1 billion.


Net Sales

Net sales by brand and region for the fourth quarter and full year are as follows:


	Fourth Quarter
(in thousands)	2021		2020		2019		1 YR % Change	2 YR % Change
Net sales by brand:
Hollister (1)	$	668,777	$	655,424	$	710,540	2%	(6)%
Abercrombie (2)	492,576		466,620		474,011		6%	4%
Total company	$	1,161,353	$	1,122,044	$	1,184,551	4%	(2)%
Net sales by region: (3)	2021		2020		2019		1 YR % Change	2 YR % Change
United States	$	841,687	$	788,056	$	814,079	7%	3%
EMEA	226,074		235,286		255,639		(4)%	(12)%
APAC	46,212		58,868		76,059		(21)%	(39)%
Other (4)	47,380		39,834		38,774		19%	22%
International	319,666		333,988		370,472		(4)%	(14)%
Total company	$	1,161,353	$	1,122,044	$	1,184,551	4%	(2)%


	Full Year
(in thousands)	2021		2020		2019		1 YR % Change	2 YR % Change
Net sales by brand:
Hollister (1)	$	2,147,979	$	1,834,349	$	2,158,514	17%	0%
Abercrombie (2)	1,564,789		1,291,035		1,464,559		21%	7%
Total company	$	3,712,768	$	3,125,384	$	3,623,073	19%	2%
Net sales by region: (3)	2021		2020		2019		1 YR % Change	2 YR % Change
United States	$	2,652,158	$	2,127,403	$	2,410,802	25%	10%
EMEA	755,072		709,451		822,202		6%	(8)%
APAC	171,701		176,636		264,895		(3)%	(35)%
Other (4)	133,837		111,894		125,174		20%	7%
International	1,060,610		997,981		$	1,212,271	6%	(13)%
Total company	$	3,712,768	$	3,125,384	$	3,623,073	19%	2%

(1) Hollister includes the Hollister, Gilly Hicks and Social Tourist brands.

(2) Abercrombie includes the Abercrombie & Fitch and abercrombie kids brands.

(3) Net sales by geographic area are presented by attributing revenues to an individual country on the basis of the country in which the merchandise was sold for in-store purchases and on the basis of the shipping location provided by customers for digital orders.

(4) Other includes all sales that do not fall within the United States, EMEA, or APAC regions.


Financial Position and Liquidity

As of January 29, 2022 the company had:

•Cash and equivalents of $823 million as compared to $1,105 million last year driven primarily by share repurchases.

•Inventories of $526 million, an increase of approximately 30% over last year due to higher inventory in-transit and increased freight costs. Units on hand were approximately flat to last year.

•Long-term gross borrowings under the company's senior secured notes of $308 million (the "Senior Secured Notes") which mature in July 2025 and bear interest at a rate of 8.75% per annum.

•Borrowing available under the senior-secured asset-based revolving credit facility (the "ABL Facility") of $248 million.

•Liquidity, comprised of cash and equivalents and borrowing available under the ABL Facility, of approximately $1.1 billion. This compares to liquidity of $1.3 billion as of January 30, 2021.


Cash Flow and Capital Allocation

Details related to the company's cash flows for the full year ended January 29, 2022 are as follows:

•Net cash provided by operating activities of $274 million.

•Net cash used for investing activities of $97 million. Capital expenditures were $97 million in fiscal 2021 as compared to $102 million in fiscal 2020.

•Net cash used for financing activities of $447 million, reflecting $377 million of share repurchases and $47 million purchase of its senior notes.

The company repurchased approximately 4.1 million shares during the fourth quarter and 10.2 million for the full year, returning $377 million to shareholders through share repurchases, and has $358 million remaining on the share repurchase authorization established in November 2021.

During the second quarter of fiscal 2021, the company spent $47 million to purchase $42.3 million at par value of its senior secured notes. During the first quarter of fiscal 2021, the company paid $64 million to settle all remaining obligations related to the SoHo Hollister flagship store in New York City, which reduced the company’s operating lease liabilities by $65 million and eliminated future interest expense related to this obligation.

Depreciation and amortization was $144 million for fiscal 2021 as compared to $166 million in fiscal 2020.


Fiscal 2022 Full Year Outlook

For fiscal 2022, the company expects:

•Net sales to be up 2 to 4% from $3.7 billion in 2021 with the U.S. continuing to outperform EMEA and APAC. We expect the increase to be driven by growth in both comparable sales and store count.

•Gross profit rate to be down around 200 basis points as compared to the fiscal 2021 rate of 62.3%, with 300-400 basis points of cost inflation partially offset by higher average unit retail.

•Operating expense, excluding other operating income, to be up in a range similar to sales of up 2 to 4% to fiscal 2021 adjusted non-GAAP operating expenses of $1.97 billion, which excluded $12 million in impairment charges.

•Effective tax rate to be in the high 20s.

•Capital expenditures of approximately $150 million.


Fiscal 2022 First Quarter Outlook

For the first quarter of fiscal 2022, the company expects:

•Net sales to be up low-single-digits to fiscal first quarter 2021 level of $781 million.

•Gross profit rate to be down around 400 basis points to fiscal 2021 rate of 63.4% reflecting $65 million of incremental freight costs compared to fiscal first quarter 2021, partially offset by improved average unit retail.

•Operating expense, excluding other operating income, to be up around 6% to fiscal 2021 adjusted non-GAAP operating expenses of $436 million, which excluded $3 million in impairment charges, with approximately half of the increase due to lapping COVID-related rent abatements and government assistance recognized in fiscal first quarter 2021.


Conference Call

Today at 8:30 AM, ET, the company will conduct a conference call. To listen to the conference call, dial (800) 458-4121 or go to corporate.abercrombie.com. The international call-in number is (323) 794-2093. This call will be recorded and made available by dialing the replay number (888) 203-1112 or the international number (719) 457-0820 followed by the conference ID number 1753535 or through corporate.abercrombie.com. A presentation of fourth quarter and full year results will be available in the “Investors” section at corporate.abercrombie.com at approximately 7:30 AM, ET, today.


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 or made by management or spokespeople 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,” “should,” “are confident,”and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements. The following factors, in addition to those disclosed in “ITEM 1A. RISK FACTORS” of A&F’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021, and in A&F’s subsequently filed quarterly reports on Form 10-Q, in some cases have affected, and in the future could affect, A&F’s financial performance and could cause actual results for fiscal 2021 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: COVID-19 has and may continue to materially adversely impact and cause disruption to our business; changes in global economic and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits could have a material adverse impact on our business; failure to engage our customers, anticipate customer demand and changing fashion trends, and manage our inventory commensurately could have a material adverse impact on our business; our failure to operate effectively in a highly competitive and constantly evolving industry could have a material adverse impact on our business; fluctuations in foreign currency exchange rates could have a material adverse impact on our business; our ability to attract customers to our stores depends, in part, on the success of the shopping malls or area attractions that our stores are located in or around; the impact of war, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience could have a material adverse impact on our business; the impact of extreme weather, infectious disease outbreaks, including COVID-19, and other unexpected events could result in an interruption to our business, as well as to the operations of our third-party partners, and have a material adverse impact on our business; failure to successfully develop an omnichannel shopping experience, a significant component of our growth strategy, or failure to successfully invest in customer, digital and omnichannel initiatives could have a material adverse impact on our business; our failure to optimize our global store network could have a material adverse impact on our business; our failure to execute our international growth strategy successfully and inability to conduct business in international markets as a result of legal, tax, regulatory, political and economic risks could have a material adverse impact on our business; our failure to appropriately address emerging environmental, social and governance matters could have a material adverse impact on our reputation and, as a result, our business; failure to protect our reputation could have a material adverse impact on our business; if our information technology systems are disrupted or cease to operate effectively, it could have a material adverse impact on our business; we may be exposed to risks and costs associated with cyber-attacks, data protection, credit card fraud and identity theft that could have a material adverse impact on our business; our reliance on our distribution centers makes us susceptible to disruptions or adverse conditions affecting our supply chain; changes in the cost, availability and quality of raw materials, labor, transportation, and trade relations could have a material adverse impact on our business; we depend upon independent third parties for the manufacture and delivery of all our merchandise, and a disruption of the manufacture or delivery of our merchandise could have a material adverse impact on our business; we rely on the experience and skills of our executive officers and associates, and the failure to attract or retain this talent, effectively manage succession, and establish a diverse workforce could have a material adverse impact on our business; in the past, we have identified a material weakness in our internal control over financial reporting and may identify additional material weaknesses in the future. If we fail to establish and maintain effective internal control over financial reporting, our ability to accurately and timely report our financial results could be adversely affected; fluctuations in our tax obligations and effective tax rate may result in volatility in our results of operations could have a material adverse impact on our business; our litigation exposure, or any securities litigation and shareholder activism, could have a material adverse impact on our business; failure to adequately protect our trademarks could have a negative impact on our brand image and limit our ability to penetrate new markets which could have a material adverse impact on our business; changes in the regulatory or compliance landscape could have a material adverse impact on our business; and the agreements related to our senior secured asset-based revolving credit facility and our senior secured notes include restrictive covenants that limit our flexibility in operating our business and our inability to obtain credit on reasonable terms in the future could have an adverse impact on our business.


Other Information

This document includes certain adjusted non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Additional details about non-GAAP financial measures and a reconciliation of GAAP financial measures to non-GAAP financial measures can be found in the "Reporting and Use of GAAP and Non-GAAP Measures" section. As used in the presentation, "Hollister" refers to the company's Hollister, Gilly Hicks, and Social Tourist brands and "Abercrombie" refers to the company's Abercrombie & Fitch and abercrombie kids brands. Sub-totals and totals may not foot due to rounding. Net income (loss) and net income (loss) per share financial measures included herein are attributable to Abercrombie & Fitch Co., excluding net income attributable to noncontrolling interests.


About Abercrombie & Fitch Co.

Abercrombie & Fitch Co. (NYSE: ANF) is a leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids through five renowned brands. The iconic Abercrombie & Fitch brand was born in 1892 and aims to make every day feel as exceptional as the start of a long weekend. abercrombie kids sees the world through kids’ eyes, where play is life and every day is an opportunity to be anything and better anything. The Hollister brand believes in liberating the spirit of an endless summer inside everyone and making teens feel celebrated and comfortable in their own skin. Gilly Hicks, offering intimates, loungewear and sleepwear, is designed to give all Gen Z customers their daily dose of happy. Social Tourist, the creative vision of Hollister and social media personalities, Dixie and Charli D’Amelio, offers trend forward apparel that allows teens to experiment with their style, while exploring the duality of who they are both on social media and in real life.

The brands share a commitment to offering products of enduring quality and exceptional comfort that allow consumers around the world to express their own individuality and style. Abercrombie & Fitch Co. operates approximately 720 stores under these brands across North America, Europe, Asia and the Middle East, as well as the e-commerce sites www.abercrombie.com, www.abercrombiekids.com, www.hollisterco.com, www.gillyhicks.com and www.socialtourist.com.


Investor Contact:						Media Contact:

Pamela Quintiliano						Mackenzie Gusweiler
Abercrombie & Fitch Co.						Abercrombie & Fitch Co.
(614) 283-6751						(614) 283-6192
Investor_Relations@anfcorp.com						Public_Relations@anfcorp.com


Abercrombie & Fitch Co.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)

	Thirteen Weeks Ended				Thirteen Weeks Ended
	January 29, 2022		% of Net Sales		January 30, 2021		% of Net Sales
Net sales	$	1,161,353	100.0	%	$	1,122,044	100.0	%
Cost of sales, exclusive of depreciation and amortization	484,221		41.7	%	443,025		39.5	%
Gross profit	677,132		58.3	%	679,019		60.5	%
Stores and distribution expense	435,129		37.5	%	412,827		36.8	%
Marketing, general and administrative expense	145,686		12.5	%	137,334		12.2	%
Flagship store exit charges	24		0.0	%	854		0.1	%
Asset impairment, exclusive of flagship store exit charges	1,901		0.2	%	15,597		1.4	%
Other operating income, net	(3,741)		(0.3)	%	(3,492)		(0.3)	%
Operating income	98,133		8.4	%	115,899		10.3	%
Interest expense, net	6,959		0.6	%	8,997		0.8	%
Income before income taxes	91,174		7.9	%	106,902		9.5	%
Income tax expense	23,348		2.0	%	21,646		1.9	%
Net income	67,826		5.8	%	85,256		7.6	%
Less: Net income attributable to noncontrolling interests	2,317		0.2	%	2,864		0.3	%
Net income attributable to Abercrombie & Fitch Co.	$	65,509	5.6	%	$	82,392	7.3	%

Net income per share attributable to Abercrombie & Fitch Co.:
Basic	$	1.18			$	1.32
Diluted	$	1.12			$	1.27

Weighted-average shares outstanding:
Basic	55,740				62,581
Diluted	58,700				64,788


Abercrombie & Fitch Co.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)

	Fifty-Two Weeks Ended				Fifty-Two Weeks Ended
	January 29, 2022		% of Net Sales		January 30, 2021		% of Net Sales
Net sales	$	3,712,768	100.0	%	$	3,125,384	100.0	%
Cost of sales, exclusive of depreciation and amortization	1,400,773		37.7	%	1,234,179		39.5	%
Gross profit	2,311,995		62.3	%	1,891,205		60.5	%
Stores and distribution expense	1,429,476		38.5	%	1,391,584		44.5	%
Marketing, general and administrative expense	536,815		14.5	%	463,843		14.8	%
Flagship store exit (benefit) charges	(1,153)		0.0	%	(11,636)		(0.4)	%
Asset impairment, exclusive of flagship store exit charges	12,100		0.3	%	72,937		2.3	%
Other operating income, net	(8,327)		(0.2)	%	(5,054)		(0.2)	%
Operating income (loss)	343,084		9.2	%	(20,469)		(0.7)	%
Interest expense, net	34,110		0.9	%	28,274		0.9	%
Income (loss) before income taxes	308,974		8.3	%	(48,743)		(1.6)	%
Income tax expense	38,908		1.0	%	60,211		1.9	%
Net income (loss)	270,066		7.3	%	(108,954)		(3.5)	%
Less: Net income attributable to noncontrolling interests	7,056		0.2	%	5,067		0.2	%
Net income (loss) attributable to Abercrombie & Fitch Co.	$	263,010	7.1	%	$	(114,021)	(3.6)	%

Net income (loss) per share attributable to Abercrombie & Fitch Co.:
Basic	$	4.41			$	(1.82)
Diluted	$	4.20			$	(1.82)

Weighted-average shares outstanding:
Basic	59,597				62,551
Diluted	62,636				62,551

Reporting and Use of GAAP and Non-GAAP Measures

The company believes that each of the non-GAAP financial measures presented are useful to investors as they provide a measure of the company’s operating performance excluding the effect of certain items which the company believes do not reflect its future operating outlook, such as asset impairment charges primarily attributable to the COVID-19 pandemic or related to the company’s flagship stores, therefore supplementing investors’ understanding of comparability of operations across periods. Management used these non-GAAP financial measures during the periods presented to assess the company’s performance and to develop expectations for future operating performance. Non-GAAP financial measures should be used supplemental to, and not as an alternative to, the company’s GAAP financial results, and may not be calculated in the same manner as similar measures presented by other companies.

In addition, at times the company provides comparable sales, defined as the percentage year-over-year change in the aggregate of: (1) sales for stores that have been open as the same brand at least one year and whose square footage has not been expanded or reduced by more than 20% within the past year, with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of foreign currency rate fluctuation, and (2) digital net sales with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of foreign currency rate fluctuation. In light of store closures related to COVID-19, the Company has not disclosed comparable sales for Fiscal 2021.

The company also provides certain financial information on a constant currency basis to enhance investors’ understanding of underlying business trends and operating performance, by removing the impact of foreign currency exchange rate fluctuations. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share effect from foreign currency is calculated using a 26% tax rate.


Abercrombie & Fitch Co.
Schedule of Non-GAAP Financial Measures
Thirteen Weeks Ended January 29, 2022
(in thousands, except per share data)
(Unaudited)

	GAAP (1)		Excluded items		Adjusted non-GAAP
Asset impairment, exclusive of flagship store exit charges (2)	$	1,901	$	1,901	$	—
Operating income	98,133		(1,901)		100,034
Income before income taxes	91,174		(1,901)		93,075
Income tax expense (3)	23,348		(373)		23,721
Net income attributable to Abercrombie & Fitch Co.	$	65,509	$	(1,528)	$	67,037

Net income per diluted share attributable to Abercrombie & Fitch Co.	$	1.12	$	(0.03)	$	1.14
Diluted weighted-average shares outstanding:	58,700				58,700

(1)“GAAP” refers to accounting principles generally accepted in the United States of America.

(2)Excluded items consist of pre-tax store asset impairment charges of $1.9 million.

(3)The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.


Abercrombie & Fitch Co.
Schedule of Non-GAAP Financial Measures
Thirteen Weeks Ended January 30, 2021
(in thousands, except per share data)
(Unaudited)

	GAAP (1)		Excluded items		Adjusted non-GAAP
Asset impairment, exclusive of flagship store exit charges (2)	$	15,597	$	15,597	$	—
Operating income	115,899		(15,597)		131,496
Income before income taxes (2)	106,902		(15,597)		122,499
Income tax expense (3)	21,646		(664)		22,310
Net income attributable to Abercrombie & Fitch Co.	$	82,392	$	(14,933)	$	97,325

Net income per diluted share attributable to Abercrombie & Fitch Co.	$	1.27	$	(0.23)	$	1.50
Diluted weighted-average shares outstanding:	64,788				64,788

(1)“GAAP” refers to accounting principles generally accepted in the United States of America.

(2)Excluded items consist of pre-tax store asset impairment charges of $15.6 million related to certain of the company’s flagship stores.

(3)The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.


Abercrombie & Fitch Co.
Schedule of Non-GAAP Financial Measures
Fifty-Two Weeks Ended January 29, 2022
(in thousands, except per share data)
(Unaudited)

	GAAP (1)		Excluded items		Adjusted non-GAAP
Asset impairment, exclusive of flagship store exit charges (2)	$	12,100	$	12,100	$	—
Operating income	343,084		(12,100)		355,184
Income before income taxes	308,974		(12,100)		321,074
Income tax expense (3)	38,908		(2,421)		41,329
Net income attributable to Abercrombie & Fitch Co.	$	263,010	$	(9,679)	$	272,689

Net loss per diluted share attributable to Abercrombie & Fitch Co.	$	4.20	$	(0.15)	$	4.35
Diluted weighted-average shares outstanding:	62,636				62,636

(1)“GAAP” refers to accounting principles generally accepted in the United States of America.

(2)Excluded items consist of pre-tax store asset impairment charges of $12.1 million.

(3)The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.


Abercrombie & Fitch Co.
Schedule of Non-GAAP Financial Measures
Fifty-Two Weeks Ended January 30, 2021
(in thousands, except per share data)
(Unaudited)

	GAAP (1)		Excluded Items		Adjusted Non-GAAP
Asset impairment, exclusive of flagship store exit charges (2)	$	72,937	$	72,937	$	—
Operating (loss) income	(20,469)		(72,937)		52,468
(Loss) income before income taxes	(48,743)		(72,937)		24,194
Income tax expense (3)	60,211		(4,299)		64,510
Net (loss) income attributable to Abercrombie & Fitch Co.	$	(114,021)	$	(68,638)	$	(45,383)

Net (loss) income per diluted share attributable to Abercrombie & Fitch Co.	$	(1.82)	$	(1.10)	$	(0.73)
Diluted weighted-average shares outstanding:	62,551				62,551

(1) “GAAP” refers to accounting principles generally accepted in the United States of America.

(2) Excluded items consist of pre-tax store asset impairment charges of $72.9 million, which are principally the result of the impact of COVID-19 on store cash flows related to certain of the company's flagship stores.

(3) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.


Abercrombie & Fitch Co.
Reconciliation of Constant Currency Financial Measures
Thirteen Weeks Ended January 29, 2022
(in thousands, except percentage and basis point changes and per share data)
(Unaudited)

Net sales	2021		2020		% Change
GAAP (1)	$	1,161,353	$	1,122,044	4%
Impact from changes in foreign currency exchange rates (2)	—		(6,591)		(1)%
Net sales on a constant currency basis	$	1,161,353	$	1,115,453	4%
Gross profit	2021		2020		BPS Change (3)
GAAP (1)	$	677,132	$	679,019	(220)
Impact from changes in foreign currency exchange rates (2)	—		(3,996)		0
Gross profit on a constant currency basis	$	677,132	$	675,023	(220)
Operating income	2021		2020		BPS Change (3)
GAAP (1)	$	98,133	$	115,899	(190)
Excluded items (4)	(1,901)		(15,597)		120
Adjusted non-GAAP	$	100,034	$	131,496	(310)
Impact from changes in foreign currency exchange rates (2)	—		151		(10)
Adjusted non-GAAP constant currency basis	$	100,034	$	131,647	(320)
Net income per diluted share attributable to Abercrombie & Fitch Co.	2021		2020		$ Change
GAAP (1)	$	1.12	$	1.27	$(0.15)
Excluded items, net of tax (4)	(0.03)		(0.23)		0.20
Adjusted non-GAAP	$	1.14	$	1.50	$(0.36)
Impact from changes in foreign currency exchange rates (2)	—		(0.01)		0.01
Adjusted non-GAAP on a constant currency basis	$	1.14	$	1.51	$(0.37)

(1) “GAAP” refers to accounting principles generally accepted in the United States of America.

(2) The estimated impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share estimated impact from foreign currency is calculated using a 26% tax rate.

(3) The estimated basis point change has been rounded based on the percentage change.

(4) Excluded items consist of pre-tax asset store impairment charges of $1.9 million and $15.6 million for the current year and prior year, respectively.


Abercrombie & Fitch Co.
Reconciliation of Constant Currency Financial Measures
Fifty-two Weeks Ended January 30, 2021
(in thousands, except percentage and basis point changes and per share data)
(Unaudited)

Net sales	2021		2020		% Change
GAAP (1)	$	3,712,768	$	3,125,384	19%
Impact from changes in foreign currency exchange rates (2)	—		25,927		1%
Net sales on a constant currency basis	$	3,712,768	$	3,151,311	18%
Gross profit	2021		2020		BPS Change (3)
GAAP (1)	$	2,311,995	$	1,891,205	180
Impact from changes in foreign currency exchange rates (2)	—		13,865		0
Gross profit on a constant currency basis	$	2,311,995	$	1,905,070	180
Operating income (loss)	2021		2020		BPS Change (3)
GAAP (1)	$	343,084	$	(20,469)	990
Excluded items (4)	(12,100)		(72,937)		200
Adjusted non-GAAP	$	355,184	$	52,468	790
Impact from changes in foreign currency exchange rates (2)	—		(1,399)		10
Adjusted non-GAAP on a constant currency basis	$	355,184	$	51,069	800
Net income (loss) per diluted share attributable to Abercrombie & Fitch Co.	2021		2020		$ Change
GAAP (1)	$	4.20	$	(1.82)	$6.02
Excluded items, net of tax (4)	(0.15)		(1.10)		0.95
Adjusted non-GAAP	$	4.35	$	(0.73)	$5.08
Impact from changes in foreign currency exchange rates (2)	—		0.01		(0.01)
Adjusted non-GAAP on a constant currency basis	$	4.35	$	(0.74)	$5.09

(1) “GAAP” refers to accounting principles generally accepted in the United States of America.

(3) The estimated basis point change has been rounded based on the percentage change.

(4) Excluded items consist of pre-tax asset store impairment charges of $12.1 million and $72.9 million for the current year and prior year, respectively.


Abercrombie & Fitch Co.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)

	January 29, 2022		January 30, 2021
Assets
Current assets:
Cash and equivalents	$	823,139	$	1,104,862
Receivables	69,102		83,857
Inventories	525,864		404,053
Other current assets	89,654		68,857
Total current assets	1,507,759		1,661,629
Property and equipment, net	508,336		550,587
Operating lease right-of-use assets	698,231		893,989
Other assets	225,165		208,697
Total assets	$	2,939,491	$	3,314,902
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	374,829	$	289,396
Accrued expenses	395,815		396,365
Short-term portion of operating lease liabilities	222,823		248,846
Income taxes payable	21,773		24,792
Total current liabilities	1,015,240		959,399
Long-term liabilities:
Long-term portion of operating lease liabilities	$	697,264	$	957,588
Long-term borrowings, net	303,574		343,910
Other liabilities	86,089		104,693
Total long-term liabilities	1,086,927		1,406,191
Total Abercrombie & Fitch Co. stockholders’ equity	826,090		936,628
Noncontrolling interests	11,234		12,684
Total stockholders’ equity	837,324		949,312
Total liabilities and stockholders’ equity	$	2,939,491	$	3,314,902


Abercrombie & Fitch Co.
Condensed Consolidated Statements of Cash Flows
(in thousands, except per share data)
(Unaudited)


	Fifty-Two Weeks Ended
	January 29, 2022		January 30, 2021
Operating activities
Net cash provided by operating activities	$	273,997	$	404,918

Investing activities
Purchases of property and equipment	$	(96,979)	$	(101,910)
Withdrawal of Rabbi Trust assets	—		50,000
Net cash used for investing activities	$	(96,979)	$	(51,910)

Financing activities
Proceeds from issuance of senior secured notes	$	—	$	350,000
Proceeds from borrowings under the asset-based senior secured credit facility	—		210,000
Repayment of term loan facility borrowings	—		(233,250)
Repayment of borrowings under the asset-based senior secured credit facility	—		(210,000)
Purchase of senior secured notes	(46,969)		—
Payment of debt issuance costs and fees	(2,016)		(7,318)
Purchases of common stock	(377,290)		(15,172)
Dividends paid	—		(12,556)
Other financing activities	(20,623)		(11,987)
Net cash (used for) provided by financing activities	$	(446,898)	$	69,717

Effect of foreign currency exchange rates on cash	$	(19,909)	$	9,168
Net increase (decrease) in cash and equivalents, and restricted cash and equivalents	$	(289,789)	$	431,893
Cash and equivalents, and restricted cash and equivalents, beginning of period	$	1,124,157	$	692,264
Cash and equivalents, and restricted cash and equivalents, end of period	$	834,368	$	1,124,157

Abercrombie & Fitch Co.

Store Count Activity


	Thirteen Weeks Ended January 29, 2022
	Hollister (1)		Abercrombie (2)		Total Company (3)
	United States	International	United States	International	United States	International	Total
October 30, 2021	355	151	181	48	536	199	735
New	1	7	1	6	2	13	15
Permanently closed	(5)	(4)	(9)	(3)	(14)	(7)	(21)
January 29, 2022	351	154	173	51	524	205	729

	Fifty-Two Weeks Ended January 29, 2022
	Hollister (1)		Abercrombie (2)		Total Company (3)
	United States	International	United States	International	United States	International	Total
January 30, 2021	347	150	190	48	537	198	735
New	10	12	7	9	17	21	38
Permanently closed	(6)	(8)	(24)	(6)	(30)	(14)	(44)
January 29, 2022	351	154	173	51	524	205	729

(1)Hollister includes the company’s Hollister and Gilly Hicks brands. Locations with Gilly Hicks carveouts within Hollister stores are represented as a single store count. Excludes 9 international franchise stores as of January 29, 2022, 10 international franchise stores as of October 30, 2021, and 9 international franchise stores as of January 30, 2021. Excludes 14 Company-operated temporary stores as of each of January 29, 2022 and October 30, 2021, and 12 Company-operated temporary stores as of January 30, 2021.

(2)Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. Locations with abercrombie kids carveouts within Abercrombie & Fitch stores are represented as a single store count. Excludes 14 international franchise stores as of January 29, 2022, 13 international franchise stores as of and October 30, 2021, and 10 international franchise stores as of January 30, 2021. Excludes five Company-operated temporary stores as of January 29, 2022 , four temporary stores as of October 30, 2021, and two Company-operated temporary stores as of January 30, 2021.

(3)This store count excludes one international third-party operated multi-brand outlet store as of each of January 29, 2022, October 30, 2021, and January 30, 2021

Document


Abercrombie & Fitch Co.
Financial Information
(Unaudited)
(in thousands, except per share data, store data, and comparable sales data)

							Fiscal 2020										Fiscal 2021
	2017 (1)		2018		2019		Q1		Q2		Q3		Q4		2020		Q1		Q2		Q3		Q4		2021
Net sales	$	3,492,690	$	3,590,109	$	3,623,073	$	485,359	$	698,328	$	819,653	$	1,122,044	$	3,125,384	$	781,405	$	864,850	$	905,160	$	1,161,353	$	3,712,768

Cost of sales, exclusive of depreciation and amortization	1,408,848		1,430,193		1,472,155		221,214		274,720		295,220		443,025		1,234,179		286,271		301,365		328,916		484,221		1,400,773

Gross profit	2,083,842		2,159,916		2,150,918		264,145		423,608		524,433		679,019		1,891,205		495,134		563,485		576,244		677,132		2,311,995

Stores and distribution expense	1,540,032		1,536,216		1,551,243		322,124		310,370		346,263		412,827		1,391,584		316,608		325,935		351,804		435,129		1,429,476

Marketing, general and administrative expense	471,914		484,863		464,615		108,257		97,252		121,000		137,334		463,843		120,947		123,913		146,269		145,686		536,815

Flagship store exit charges (benefits)	2,393		5,806		47,257		(543)		(3,884)		(8,063)		854		(11,636)		(1,100)		(88)		11		24		(1,153)

Asset impairment, exclusive of flagship store exit charges	14,391		11,580		19,135		42,928		8,083		6,329		15,597		72,937		2,664		786		6,749		1,901		12,100

Other operating (income) loss, net	(16,938)		(5,915)		(1,400)		506		(2,356)		288		(3,492)		(5,054)		(1,418)		(1,848)		(1,320)		(3,741)		(8,327)

Operating income (loss)	72,050		127,366		70,068		(209,127)		14,143		58,616		115,899		(20,469)		57,433		114,787		72,731		98,133		343,084

Interest expense, net	16,889		10,999		7,737		3,371		7,098		8,808		8,997		28,274		8,606		11,275		7,270		6,959		34,110

Income (loss) before income taxes	55,161		116,367		62,331		(212,498)		7,045		49,808		106,902		(48,743)		48,827		103,512		65,461		91,174		308,974

Income tax expense (benefit)	44,636		37,559		17,371		31,533		1,253		5,779		21,646		60,211		6,121		(6,944)		16,383		23,348		38,908

Net income (loss)	10,525		78,808		44,960		(244,031)		5,792		44,029		85,256		(108,954)		42,706		110,456		49,078		67,826		270,066

Less: Net income attributable to noncontrolling interests	3,431		4,267		5,602		117		328		1,758		2,864		5,067		938		1,956		1,845		2,317		7,056

Net income (loss) attributable to Abercrombie & Fitch Co.	$	7,094	$	74,541	$	39,358	$	(244,148)	$	5,464	$	42,271	$	82,392	$	(114,021)	$	41,768	$	108,500	$	47,233	$	65,509	$	263,010


										Fiscal 2020										Fiscal 2021
	2017 (1)			2018			2019			Q1		Q2		Q3		Q4		2020		Q1		Q2		Q3		Q4		2021




Net income (loss) per share attributable to Abercrombie & Fitch Co.:
Basic	$	0.10		$	1.11		$	0.61		$	(3.90)	$	0.09	$	0.68	$	1.32	$	(1.82)	$	0.67	$	1.77	$	0.80	$	1.18	$	4.41
Diluted	$	0.10		$	1.08		$	0.60		$	(3.90)	$	0.09	$	0.66	$	1.27	$	(1.82)	$	0.64	$	1.69	$	0.77	$	1.12	$	4.20

Weighted-average shares outstanding:
Basic	68,391			67,350			64,428			62,541		62,527		62,558		62,581		62,551		62,380		61,428		58,796		55,740		59,597
Diluted	69,403			69,137			65,778			62,541		63,286		63,877		64,788		62,551		65,305		64,136		61,465		58,700		62,636

Hollister comparable sales (2) (3)	8		%	5		%	(1)		%	Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided

Abercrombie comparable sales (2) (4)	(2)		%	1		%	3		%	Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided

Comparable sales (2)	3		%	3		%	1		%	Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided		Not provided

Shares outstanding	68,195			66,227			62,786			62,284		62,365		62,384		62,399		62,399		61,935		59,692		57,037		52,985		52,985

Number of stores - end of period	868			861			857			853		854		853		735		735		731		733		735		729		729

Gross square feet - end of period	6,710			6,566			6,314			6,285		6,296		6,235		5,232		5,232		5,189		5,150		5,159		5,052		5,052


(1) Fiscal 2017 was a fifty-three week year.
(2) Comparable sales are calculated on a constant currency basis and exclude revenue other than store and online sales. The Company did not provide comparable sales results for fiscal 2020 or fiscal 2021 due to widespread temporary store closures as a result of COVID-19.
(3) Hollister includes the Company's Hollister, Gilly Hicks, and Social Tourist brands.
(4) Abercrombie includes the Company's Abercrombie & Fitch and abercrombie kids brands.

q42021investorpresentati

INVESTOR PRESENTATION: FOURTH QUARTER 2021

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 presentation or made by management or spokespeople 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," "should," "are confident," and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we assume no obligation to publicly update or revise our forward-looking statements. Risks and uncertainties related to the duration and impact of the COVID-19 pandemic on the company and the factors disclosed in "ITEM 1A. RISK FACTORS" of A&F's Annual Report on Form 10-K for the fiscal year ended January 30, 2021, and in A&F's subsequently filed quarterly reports on Form 10-Q, in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results for the 2021 fiscal year and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this presentation or otherwise made by management. OTHER INFORMATION The following presentation includes certain adjusted non-GAAP financial measures. Additional details about non-GAAP financial measures and a reconciliation of GAAP financial measures to non-GAAP financial measures is included in the news release issued by the company on March 2, 2022 which is available in the "Investors" section of the company's website, located at corporate.abercrombie.com. As used in the presentation, "GAAP" refers to accounting principles generally accepted in the United States of America. As used in the presentation, "Hollister" refers to the company's Hollister, Gilly Hicks, and Social Tourist brands and "Abercrombie" refers to the company's Abercrombie & Fitch and abercrombie kids brands. Sub-totals and totals may not foot due to rounding. Net income (loss) and net income (loss) per share financial measures included herein are attributable to Abercrombie & Fitch Co., excluding net income attributable to noncontrolling interests. 2

Safe Harbor and Other Information 2 Company Overview 4 Focus Areas 7 Digital Evolution 11 Global Store Network Optimization 13 Q4 2021 and Full Year Results 17 Financial Position, Liquidity & Capital Allocation 25 Appendix 31 TABLE OF CONTENTS

4 COMPANY OVERVIEW

5 COMPANY OVERVIEWOUR FIVE GLOBAL BRANDS A global specialty retailer of quality, comfortable, made-to- play favorites, abercrombie kids sees the world through kids’ eyes, where play is life and every day is an opportunity to be anything and better everything. The quintessential apparel brand of the global teen consumer, Hollister Co. believes in liberating the spirit of an endless summer inside everyone. At Hollister, summer isn’t just a season, it’s a state of mind. Hollister creates carefree style designed to make all teens feel celebrated and comfortable in their own skin, so they can live in a summer mindset all year long, whatever the season. Abercrombie & Fitch believes that every day should feel as exceptional as the start of the long weekend. Since 1892, the brand has been a specialty retailer of quality apparel, outerwear and fragrance - designed to inspire our global customers to feel confident, be comfortable and face their Fierce. Hollister also carries a lifestyle brand, Gilly Hicks. At Gilly Hicks, we know everyone has their own unique happy place. We exist to help you find yours. Gilly Hicks focuses on underwear, loungewear and activewear designed to give all Gen Z customers their daily dose of happy. Social Tourist is the creative vision of Hollister, the teen brand liberating the spirit of an endless summer, and social media personalities Dixie and Charli D’Amelio. The lifestyle brand creates trend forward apparel that allows teens to experiment with their style, while exploring the duality of who they are both on social media and in real life.

6 ~90% 5 FISCAL 2021 DIGITAL SALES WERE ROUGHLY $1.7 BILLION, 47% OF TOTAL NET SALES 24 GLOBAL BRANDS INTERNATIONAL THIRD-PARTY OPERATED STORES COMPANY-OPERATED RETAIL STORES WHOLESALE PARTNERSHIPS, PRIMARILY INTERNATIONAL OF GLOBAL STORE FLEET WITH SHIP-FROM-STORE AND PURCHASE-ONLINE- PICK-UP-IN-STORE CAPABILITIES CAPABILITY TO SHIP TO OVER 110 COUNTRIES 729 29% OF FISCAL 2021 NET SALES WERE DERIVED INTERNATIONALLY Information provided on this slide is as of January 29, 2022 unless otherwise specified. $1.7B THE COMPANY'S PRODUCTS ARE SOLD GLOBALLY, PRIMARILY THROUGH ITS COMPANY-OWNED DIGITAL AND STORE CHANNELS, AS WELL AS THROUGH VARIOUS THIRD-PARTY ARRANGEMENTS 110 9 GLOBAL, DIGITALLY-LED OMNICHANNEL RETAILER COMPANY OVERVIEW

7 FOCUS AREAS

FOCUS AREAS OPTIMIZING OUR GLOBAL STORE NETWORK • Rightsizing store fleet and adapting to the evolving role of the store as customers' shopping preferences shift ENHANCING DIGITAL AND OMNI-CHANNEL CAPABILITIES • Creating best-in-class customer experiences while growing profitably across channels INCREASING THE SPEED AND EFFICIENCY OF OUR CONCEPT-TO-CUSTOMER PRODUCT LIFE CYCLE • Investing in capabilities to position supply chain for greater speed, agility and flexibility • Utilizing data and analytics to offer the right product at the right time and the right price IMPROVING OUR CUSTOMER ENGAGEMENT THROUGH OUR LOYALTY PROGRAMS AND MARKETING OPTIMIZATION • Leveraging data, including our loyalty programs, to engage with customers across channels • Driving more efficient and effective marketing spend 1 2 3 4 THE FOLLOWING TRANSFORMATION INITIATIVES HAVE CREATED THE FOUNDATION TO ALLOW US TO QUICKLY RESPOND TO COVID-19 AND FOCUS ON LONG-TERM SUSTAINABLE GROWTH: OUR PREVIOUSLY-STATED TRANSFORMATION INITIATIVES 8

SUCCESSFULLY EXECUTED TO 2021 FOCUS AREAS ACCELERATING DIGITAL, DATA AND TECHNOLOGY INVESTMENTS TO INCREASE AGILITY AND IMPROVE CUSTOMER EXPERIENCE INCREASING OUR MARKETING INVESTMENTS TO BUILD ON THE MOMENTUM WE SEE ACROSS BRANDS AND GEOGRAPHIES DEDICATING RESOURCES TOWARDS ACCELERATING GROWTH OF GILLY HICKS AND LAUNCHING SOCIAL TOURIST OPTIMIZING SQUARE FOOTAGE WHILE BEING OPPORTUNISTIC IN GLOBAL STORE EXPANSION INTEGRATING ENVIRONMENTAL, SOCIAL AND GOVERNANCE PRACTICES AND STANDARDS THROUGHOUT THE ORGANIZATION FOCUS AREAS WE ENTERED 2021 ON OFFENSE WHILE WORKING TOWARDS RECAPTURING LOST SALES DUE TO COVID-19 9

10 FOCUSING ON THE WELL-BEING OF ASSOCIATES AND CUSTOMERS Implemented a range of health and safety measures with the well-being of the Company’s customers, associates and business partners in mind, including but not limited to ensuring all stores follow local mandates relating to face coverings, social distancing, cleaning measures, reduced operating hours and/or temporary closures OPTIMIZING DIGITAL OPERATIONS • Following recommended cleaning and distancing measures in the company's distribution centers to continue digital operations and mitigate shipping delays • Focusing on a seamless digital checkout experience for customers • Continuing to offer Purchase-Online-Pickup-in-Store, including curbside pickup at a majority of U.S. locations • Working cross-functionally and utilizing Ship-from-Store capabilities to best leverage in-store inventory PRUDENTLY MANAGING CASH FLOWS IN THE NEAR-TERM GIVEN CONTINUED GLOBAL UNCERTAINTY AND TEMPORARY STORE CLOSURES • Partnering with merchandise and non-merchandise vendors in regards to payment terms • Reevaluating budgeted expenses to better align operating costs with expected sales • Tightly managing inventories • Continuing suspension of the company's dividend program, but returning cash to shareholders through share repurchases • Assessing government policy and economic stimulus responses to COVID-19 HOW WE ARE NAVIGATING COVID-19 FOCUS AREAS

DIGITAL EVOLUTION 11

* In fiscal 2021, the company was impacted by the COVID-19 pandemic and experienced widespread temporary store closures, while the company’s digital operations continued to serve the customers during this unprecedented period. INVESTMENTS IN DIGITAL AND OMNICHANNEL CAPABILITIES OF $150M+ FISCAL 2018 - FISCAL 2021 FISCAL 2018 Digital sales penetration of 28%, <$1.0B FISCAL 2021* Digital sales penetration of 47%, $1.7B+ EXPECTED DIGITAL AND OMNICHANNEL INVESTMENTS FOR THE YEAR OF $30M+ FISCAL 2022 DIGITAL EVOLUTIONAGGRESSIVELY INVESTING TO SUPPORT TRANSFORMATION TO A DIGITALLY-LED GLOBAL OMNI- CHANNEL RETAILER 12

13 GLOBAL STORE NETWORK OPTIMIZATION

729 STORES AS OF FY21 NEW STORE OPENINGS & CLOSINGS (1) Store count excludes one international third-party operated multi-brand outlet store as of January 29, 2022. (2) Locations with Gilly Hicks carveouts within Hollister stores are represented as a single store count. Excludes 9 international franchise stores as of January 29, 2022 and January 30, 2021. Excludes 14Company-operated temporary stores as of January 29, 2022 and 12 as of January 30, 2021. (3) Locations with abercrombie kids carveouts within Abercrombie & Fitch stores are represented as a single store count. Excludes 14 international franchise stores as of January 29, 2022, and 10 international franchise stores as of January 30, 2021. Excludes five Company-operated temporary stores as of January 29, 2022 and two as of January 30, 2021. TOTAL COMPANY (1) TOTAL UNITED STATES CANADA EUROPE ASIA MIDDLE EAST END OF Q4 2020 735 537 17 123 46 12 OPENINGS 38 17 — 14 7 — PERMANENT CLOSINGS (44) (30) (1) (10) (3) — END OF Q4 2021 729 524 16 127 50 12 HOLLISTER (2) TOTAL UNITED STATES CANADA EUROPE ASIA MIDDLE EAST END OF Q4 2020 497 347 10 107 27 6 OPENINGS 22 10 — 8 4 — PERMANENT CLOSINGS (14) (6) — (6) (2) — END OF Q4 2021 505 351 10 109 29 6 ABERCROMBIE (3) TOTAL UNITED STATES CANADA EUROPE ASIA MIDDLE EAST END OF Q4 2020 238 190 7 16 19 6 OPENINGS 16 7 — 6 3 — PERMANENT CLOSINGS (30) (24) (1) (4) (1) — END OF Q4 2021 224 173 6 18 21 6 GLOBAL STORE NETWORK OPTIMIZATION HOLLISTER ABERCROMBIE TOTAL COMPANY (in thousands) U.S. INTERNATIONAL U.S. INTERNATIONAL U.S. INTERNATIONAL TOTAL Q4 2020 2,309 1,219 1,311 393 3,620 1,612 5,232 Q4 2021 2,312 1,212 1,161 367 3,473 1,579 5,052 GROSS SQUARE FOOTAGE 14

REMOVED 1.7M GROSS SQUARE FEET GLOBALLY SINCE 2017; EXPECT TO SEE NET STORE OPENINGS IN 2022 Total stores FY17 FY18 FY19 FY20 FY21 * Prior period figures have been revised to reflect a change in classification of certain stores to be consistent with current presentation. GROSS SQUARE FOOTAGE (in thousands) FY17 FY18 FY19 FY20 FY21 6,710 6,566 6,314 5,232 5,052 GLOBAL STORE NETWORK OPTIMIZATION 15

91% OF U.S. STORES LOCATED IN A/B MALLS; CONTINUE TO REPOSITION GLOBAL FLEET * Mall rating based on Green Street Advisors as of March 2022. YTD STORE OPTIMIZATION ACTIVITY Q4 2021 STORE FLEET DETAIL HOLLISTER ABERCROMBIE TOTAL COMPANY # OF STORES % OF FLEET # OF STORES % OF FLEET # OF STORES % OF FLEET LEGACY STORES 185 37% 97 43% 282 39% UPDATED FORMATS 304 60% 86 38% 390 53% OUTLETS 15 3% 37 17% 52 7% FLAGSHIPS 1 —% 4 2% 5 1% TOTAL 505 100% 224 100% 729 100% HOLLISTER ABERCROMBIE TOTAL NEW STORES 22 16 38 REMODELS 2 — 2 RIGHT-SIZES 2 3 5 NEW EXPERIENCES 26 19 45 PERMANENT CLOSURES (14) (30) (44) FLAGSHIP STORE CLOSURES/ LEASE EXPIRATIONS (1) (1) Includes the A&F Singapore and A&F Hamburg, Germany locations. (2) Includes the A&F Amsterdam, Netherlands, the A&F Shanghai, China locations as well as the A&F 5th Avenue, New York City (3) Includes the Hollister 5th Avenue, New York City and the A&F Ginza, Japan locations. (2) Q4 2021 U.S. STORE FLEET * A MALL B MALL C MALL FLAGSHIPS TOTAL # OF STORES 228 245 46 2 521 % OF U.S. FLEET 44% 47% 9% —% 100% (3) GLOBAL STORE NETWORK OPTIMIZATION 16

17 Q4 2021 AND FULL YEAR RESULTS

“2021 is a testament to the fundamental changes we have made to strengthen our foundation and improve our profitability. For the year, we delivered: Net sales of $3.7 billion with 47% digital penetration; a double-digit AUR growth rate; reported and adjusted operating income of $343 million and $355 million, respectively, roughly 330% above 2019 levels; and a 9.6% adjusted operating margin, our highest in over a decade. In addition, by returning cash to shareholders through share repurchases, we reduced our ending share count by 15%.” “We are pleased with our recent performance. Following inventory receipt delays that impacted the peak holiday selling period, sales trends initially improved as product began to arrive. While mid-January was impacted by the Omicron surge, sales rebounded in late January as cases fell and new assortments set. Momentum has continued quarter-to-date, with an acceleration in the sales trend from total fourth quarter levels. Importantly, response to early spring assortments has been strong, and we do not anticipate significant inventory supply issues for the remainder of the quarter.” “Looking ahead, we will continue to thoughtfully manage the business to support long-term growth leveraging our multi-year investments in systems, processes and tools across digital, technology and data and analytics. We look forward to sharing more details on our three-year plan at our June Investor Day.” FRAN HOROWITZ, CHIEF EXECUTIVE OFFICER CEO COMMENTARY Q4 2021 AND FULL YEAR RESULTS 18

Q4 2021 RESULTS SIGNIFICANT ITEMS IMPACTING RESULTS • Net sales for the fourth quarter and full year increased 4% and 19%, respectively, as compared to last year, with full year increases in stores and digital sales. • Gross profit rate for the fourth quarter declined 220 basis points as compared to last year to 58.3%, driven by higher average unit cost from freight inflation partially offset by higher average unit retail on lower promotions. Full year gross margin increased 180 basis points to 62.3% driven by higher average unit retail on lower promotions. • Store occupancy expense for the fourth quarter increased by $9M and for the full year decreased $68M, as compared to last year, with the full year reflecting a decrease in store count and favorable rent negotiations. • Marketing expense for the fourth quarter and full year increased $33M and $89M, respectively, including digital sales marketing, reflecting the company's initiatives to make strategic investments across marketing. • Asset impairment charges for the fourth quarter and full year of $2M and $12M, respectively. (1) Adjusted non-GAAP results exclude the effect of certain items set out of page 32. (2) The estimated impact from foreign currency is calculated by applying current period exchange rates to prior year results using a 26% tax rate. Q4 2021 Q4 2020 FY 2021 FY 2020 GAAP $ 1.12 $ 1.27 $ 4.20 $ (1.82) EXCLUDED ITEMS, NET OF TAX EFFECT (1) (0.03) (0.23) (0.15) (1.10) ADJUSTED NON-GAAP $1.14 $1.50 $4.35 $(0.73) IMPACT FROM FOREIGN CURRENCY EXCHANGE RATES (2) — (0.01) — 0.01 ADJUSTED NON-GAAP ON A CONSTANT CURRENCY BASIS $1.14 $1.51 $4.35 $(0.74) NET INCOME (LOSS) PER SHARE 19

ABERCROMBIE $493M UP 6% TO LAST YEAR 42.4% OF TOTAL NET SALES HOLLISTER $669M UP 2% TO LAST YEAR 57.6% OF TOTAL NET SALES EMEA $226M DOWN 4% TO LAST YEAR 19.5% OF TOTAL NET SALES UNITED STATES $842M UP 7% TO LAST YEAR 72.5% OF TOTAL NET SALES TOTAL COMPANY NET SALES UP 4% TO $1.2B Q4 2021 DIGITAL SALES OF $556M, OR 48% OF TOTAL NET SALES APAC $46M DOWN 21% TO LAST YEAR 4.0% OF TOTAL NET SALES OTHER $47M UP 19% TO LAST YEAR 4.1% OF TOTAL NET SALES NET SALES Q4 2021 RESULTS 20

ABERCROMBIE $1.6B UP 21% TO LAST YEAR 42.1% OF TOTAL NET SALES HOLLISTER $2.1B UP 17% TO LAST YEAR 57.9% OF TOTAL NET SALES EMEA $755M UP 6% TO LAST YEAR 20.3% OF TOTAL NET SALES UNITED STATES $2.7B UP 25% TO LAST YEAR 71.4% OF TOTAL NET SALES TOTAL COMPANY NET SALES UP 19% TO $3.7B FULL YEAR DIGITAL SALES OF ROUGHLY $1.7B, OR 47% OF TOTAL NET SALES APAC $172M DOWN 3% TO LAST YEAR 4.6% OF TOTAL NET SALES OTHER $134M UP 20% TO LAST YEAR 3.6% OF TOTAL NET SALES NET SALES FULL YEAR RESULTS 21

GAAP NON-GAAP* * Q4 non-GAAP operating expense is presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out of page 32. (1) Includes operating lease costs, other landlord charges, utilities, depreciation and other occupancy expense. (2) Includes selling payroll, store management and support, other store expense, direct-to-consumer expense, digital marketing, and distribution center costs. (3) Rounded based on reported percentages. (in thousands) Q4 2021 % OF NET SALES Q4 2020 % OF NET SALES Δ BPS (3) STORE OCCUPANCY (1) $112,591 9.7% $103,657 9.2% 50 ALL OTHER (2) 322,538 27.8% 309,170 27.6% 20 STORES AND DISTRIBUTION 435,129 37.5% 412,827 36.8% 70 MARKETING, GENERAL & ADMINISTRATIVE 145,686 12.5% 137,334 12.2% 30 FLAGSHIP STORE EXIT CHARGES 24 0.0% 854 0.1% (10) ASSET IMPAIRMENT, EXCLUSIVE OF FLAGSHIP STORE EXIT CHARGES 1,901 0.2% 15,597 1.4% (120) TOTAL $582,740 50.2% $566,612 50.5% (30) (in thousands) Q4 2021 % OF NET SALES Q4 2020 % OF NET SALES Δ BPS (3) STORE OCCUPANCY (1) $112,591 9.7% $103,657 9.2% 50 ALL OTHER (2) 322,538 27.8% 309,170 27.6% 20 STORES AND DISTRIBUTION 435,129 37.5% 412,827 36.8% 70 MARKETING, GENERAL & ADMINISTRATIVE 145,686 12.5% 137,334 12.2% 30 FLAGSHIP STORE EXIT CHARGES 24 0.0% 854 0.1% (10) ASSET IMPAIRMENT, EXCLUSIVE OF FLAGSHIP STORE EXIT CHARGES — 0.0% — 0.0% — TOTAL $580,839 50.0% $551,015 49.1% 90 OPERATING EXPENSE Q4 2021 RESULTS 22

GAAP NON-GAAP* * Non-GAAP operating expense is presented on an adjusted non-GAAP basis, and excludes the effect of certain items set out of page 32. (1) Includes operating lease costs, other landlord charges, utilities, depreciation and other occupancy expense. (2) Includes selling payroll, store management and support, other store expense, direct-to-consumer expense, digital marketing, and distribution center costs. (3) Rounded based on reported percentages. (in thousands) 2021 % OF NET SALES 2020 % OF NET SALES Δ BPS (3) STORE OCCUPANCY (1) $428,764 11.5% $496,269 15.9% (440) ALL OTHER (2) 1,000,712 27.0% 895,315 28.6% (160) STORES AND DISTRIBUTION 1,429,476 38.5% 1,391,584 44.5% (600) MARKETING, GENERAL & ADMINISTRATIVE 536,815 14.5% 463,843 14.8% (30) FLAGSHIP STORE EXIT (BENEFITS) CHARGES (1,153) 0.0% (11,636) (0.4)% 40 ASSET IMPAIRMENT, EXCLUSIVE OF FLAGSHIP STORE EXIT CHARGES 12,100 0.3% 72,937 2.3% (200) TOTAL $1,977,238 53.3% $1,916,728 61.3% (800) (in thousands) 2021 % OF NET SALES 2020 % OF NET SALES Δ BPS (3) STORE OCCUPANCY (1) $428,764 11.5% $496,269 15.9% (440) ALL OTHER (2) 1,000,712 27.0% 895,315 28.6% (160) STORES AND DISTRIBUTION 1,429,476 38.5% 1,391,584 44.5% (600) MARKETING, GENERAL & ADMINISTRATIVE 536,815 14.5% 463,843 14.8% (30) FLAGSHIP STORE EXIT (BENEFITS) CHARGES (1,153) 0.0% (11,636) (0.4)% 40 ASSET IMPAIRMENT, EXCLUSIVE OF FLAGSHIP STORE EXIT CHARGES — 0.0% — 0.0% — TOTAL $1,965,138 52.9% $1,843,791 59.0% (610) OPERATING EXPENSE FULL YEAR RESULTS 23

(1) Gross profit is derived from cost of sales, exclusive of depreciation and amortization. Q4 GAAP FULL YEAR GAAP (in thousands) Q4 2021 % OF NET SALES Q4 2020 % OF NET SALES 2021 % OF NET SALES 2020 % OF NET SALES NET SALES $1,161,353 100.0% $1,122,044 100.0% $3,712,768 100.0% $3,125,384 100.0% GROSS PROFIT (1) 677,132 58.3% 679,019 60.5% 2,311,995 62.3% 1,891,205 60.5% OPERATING EXPENSE 582,740 50.2% 566,612 50.5% 1,977,238 53.3% 1,916,728 61.3% OTHER OPERATING INCOME, NET (3,741) (0.3)% (3,492) (0.3)% (8,327) (0.2)% (5,054) (0.2)% OPERATING INCOME (LOSS) 98,133 8.4% 115,899 10.3% 343,084 9.2% (20,469) (0.7)% INTEREST EXPENSE, NET 6,959 0.6% 8,997 0.8% 34,110 0.9% 28,274 0.9% INCOME (LOSS) BEFORE INCOME TAXES 91,174 7.9% 106,902 9.5% 308,974 8.3% (48,743) (1.6)% INCOME TAX EXPENSE 23,348 2.0% 21,646 1.9% 38,908 1.0% 60,211 1.9% NET INCOME (LOSS) $65,509 5.6% $82,392 7.3% $263,010 7.1% $(114,021) (3.6)% NET INCOME (LOSS) PER SHARE BASIC $1.18 $1.32 $4.41 $(1.82) DILUTED $1.12 $1.27 $4.20 $(1.82) WEIGHTED-AVERAGE SHARES BASIC 55,740 62,581 59,597 62,551 DILUTED 58,700 64,788 62,636 62,551 INCOME STATEMENT Q4 2021 AND FULL YEAR RESULTS 24

25 FINANCIAL POSITION, LIQUIDITY & CAPITAL ALLOCATION

CASH & EQUIVALENTS $823M AS COMPARED TO $1,105M LAST YEAR SHORT-TERM BORROWINGS NO BORROWINGS OUTSTANDING UNDER ABL FACILITY $248M OF BORROWING AVAILABLE UNDER ABL FACILITY GROSS LONG-TERM BORROWINGS $308M OUTSTANDING AS COMPARED TO $350M LAST YEAR INVENTORIES $526M UP 30% FROM LAST YEAR DUE TO HIGHER IN-TRANSIT AND FREIGHT COST;UNITS ON HAND APPROXIMATELY FLAT TO LAST YEAR * Liquidity is comprised of cash and equivalents and borrowing available under the ABL Facility. FINANCIAL POSITION, LIQUIDITY & CAPITAL ALLOCATIONFINANCIAL POSITION AND LIQUIDITY SUMMARY 26

(in thousands) NET CASH PROVIDED BY OPERATING ACTIVITIES CAPITAL EXPENDITURES FREE CASH FLOW (2) FY 2016 $185,169 $140,844 $44,325 FY 2017 $287,658 $107,001 $180,657 FY 2018 $352,933 $152,393 $200,540 FY 2019 $300,685 $202,784 $97,901 FY 2020 $404,918 $101,910 $303,008 FY 2021 $273,997 $96,979 $177,018 (1) Free cash flow is a non-GAAP measure and is computed by subtracting capital expenditures from net cash provided by operating activities, both of which are disclosed in the table above, preceding the measure of free cash flow. FULL YEAR ENDED (in thousands) JANUARY 29, 2022 JANUARY 30, 2021 NET CASH PROVIDED BY OPERATING ACTIVITIES $273,997 $404,918 NET CASH USED FOR INVESTING ACTIVITIES $(96,979) $(51,910) NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES $(446,898) $69,717 CASH FLOW SUMMARY FINANCIAL POSITION, LIQUIDITY & CAPITAL ALLOCATION 27

(in thousands) JANUARY 29, 2022 JANUARY 30, 2021 CASH AND EQUIVALENTS $823,139 $1,104,862 RECEIVABLES 69,102 83,857 INVENTORIES 525,864 404,053 OTHER CURRENT ASSETS 89,654 68,857 TOTAL CURRENT ASSETS $1,507,759 $1,661,629 PROPERTY AND EQUIPMENT, NET 508,336 550,587 OPERATING LEASE RIGHT-OF-USE ASSETS 698,231 893,989 OTHER ASSETS 225,165 208,697 TOTAL ASSETS $2,939,491 $3,314,902 ACCOUNTS PAYABLE $374,829 $289,396 ACCRUED EXPENSES 395,815 396,365 SHORT-TERM PORTION OF OPERATING LEASE LIABILITIES 222,823 248,846 INCOME TAXES PAYABLE 21,773 24,792 TOTAL CURRENT LIABILITIES $1,015,240 $959,399 LONG-TERM PORTION OF OPERATING LEASE LIABILITIES 697,264 957,588 LONG-TERM BORROWINGS, NET 303,574 343,910 OTHER LIABILITIES 86,089 104,693 TOTAL LONG-TERM LIABILITIES $1,086,927 $1,406,191 TOTAL ABERCROMBIE & FITCH CO. STOCKHOLDERS EQUITY 826,090 936,628 NONCONTROLLING INTEREST 11,234 12,684 TOTAL STOCKHOLDERS' EQUITY $837,324 $949,312 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,939,491 $3,314,902 BALANCE SHEET FINANCIAL POSITION, LIQUIDITY & CAPITAL ALLOCATION 28

SHARE REPURCHASES (in thousands, except for average cost) NUMBER OF SHARES COST AVERAGE COST DIVIDENDS TOTAL FY 2016 — $— $— $54,066 $54,066 FY 2017 — $— $— $54,392 $54,392 FY 2018 2,932 $68,670 $23.42 $53,714 $122,384 FY 2019 3,957 $63,542 $16.06 $51,510 $115,052 FY 2020 1,397 $15,172 $10.86 $12,556 $27,728 FY 2021 10,200 $377,290 $36.99 $— $377,290 The Company repurchased approximately 4.1 million shares during the fourth quarter and 10.2 million for the full year, returning $377 million to shareholders through share repurchases, and has $358 million remaining on the share repurchase authorization established in November 2021. (in thousands) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 ENDING SHARES OUTSTANDING 67,758 68,195 66,227 62,786 62,399 52,985 FINANCIAL POSITION, LIQUIDITY & CAPITAL ALLOCATION SHARE REPURCHASES AND DIVIDENDS 29

YEAR TO DATE PERIOD ENDED (in thousands) January 29, 2022 January 30, 2021 NET CASH PROVIDED BY OPERATING ACTIVITIES (1) $273,997 5 9 $404,918 PURCHASES OF PROPERTY AND EQUIPMENT (96,979) (101,910) WITHDRAWAL OF RABBI TRUST ASSETS (1) — 50,000 NET CASH USED FOR INVESTING ACTIVITIES (1) $(96,979) $(51,910) PROCEEDS FROM ISSUANCE OF SENIOR SECURED NOTES — 350,000 PURCHASE OF SENIOR SECURED NOTES (46,969) — PROCEEDS FROM BORROWINGS UNDER THE ABL FACILITY — 210,000 REPAYMENT OF TERM LOAN FACILITY BORROWINGS — (233,250) REPAYMENT OF ABL FACILITY BORROWINGS — (210,000) PAYMENT OF DEBT ISSUANCE COSTS AND FEES (2,016) (7,318) PURCHASES OF COMMON STOCK (377,290) (15,172) DIVIDENDS PAID — (12,556) OTHER FINANCING ACTIVITIES (20,623) (11,987) NET CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES $(446,898) $69,717 EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH (19,909) 9,168 NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS, AND RESTRICTED CASH AND EQUIVALENTS $(289,789) $431,893 CASH AND EQUIVALENTS, AND RESTRICTED CASH AND EQUIVALENTS, BEGINNING OF PERIOD $1,124,157 $692,264 CASH AND EQUIVALENTS, AND RESTRICTED CASH AND EQUIVALENTS, END OF PERIOD $834,368 $1,124,157 FINANCIAL POSITION, LIQUIDITY & CAPITAL ALLOCATION STATEMENT OF CASH FLOWS 30

31 APPENDIX

(in thousands) Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 ASSET IMPAIRMENT $42,928 $8,083 $6,329 $— $57,340 TAX EFFECT (1) (4,432) 1,166 (369) — — TOTAL EXCLUDED ITEMS $38,496 $9,249 $5,960 $— $57,340 (in thousands) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 ASSET IMPAIRMENT $2,664 $786 $6,749 $1,901 $12,100 TAX EFFECT (1) (449) (224) (1,375) (373) (2,421) TOTAL EXCLUDED ITEMS $2,215 $562 $5,374 $1,528 $9,679 (1) The tax effect of excluded items is the difference between the tax provision calculation on a GAAP basis and an adjusted non-GAAP basis. EXCLUDED ITEMS APPENDIX 32

Q4 RECONCILIATION OF ADJUSTED NON-GAAP RESULTS Q4 2021 GAAP EXCLUDED ITEMS Q4 2021 NON-GAAP ASSET IMPAIRMENT, EXCLUSIVE OF FLAGSHIP STORE EXIT CHARGES $1,901 $1,901 $— OPERATING INCOME 98,133 (1,901) 100,034 INCOME BEFORE INCOME TAXES 91,174 (1,901) 93,075 INCOME TAX EXPENSE (1) 23,348 (373) 23,721 NET INCOME $65,509 $(1,528) $67,037 NET INCOME PER DILUTED SHARE $1.12 $(0.03) $1.14 DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING 58,700 58,700 Q4 2020 GAAP EXCLUDED ITEMS Q4 2020 NON-GAAP ASSET IMPAIRMENT, EXCLUSIVE OF FLAGSHIP STORE EXIT CHARGES $15,597 $15,597 $— OPERATING INCOME 115,899 (15,597) 131,496 INCOME BEFORE INCOME TAXES 106,902 (15,597) 122,499 INCOME TAX EXPENSE (1) 21,646 (664) 22,310 NET INCOME $82,392 $(14,933) $97,325 NET INCOME PER DILUTED SHARE $1.27 $(0.23) $1.50 DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING 64,788 64,788 (1) The tax effect of excluded items, calculated as the difference between the tax provision on a GAAP basis and an adjusted non-GAAP basis. APPENDIX 33

FY 2021 GAAP EXCLUDED ITEMS FY 2021 NON-GAAP ASSET IMPAIRMENT, EXCLUSIVE OF FLAGSHIP STORE EXIT CHARGES $12,100 $12,100 $— OPERATING INCOME 343,084 (12,100) 355,184 INCOME BEFORE INCOME TAXES 308,974 (12,100) 321,074 INCOME TAX EXPENSE (1) 38,908 (2,421) 41,329 NET INCOME $263,010 $(9,679) $272,689 NET INCOME PER DILUTED SHARE $4.20 $(0.15) $4.35 DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING 62,636 62,636 (1) The tax effect of excluded items, calculated as the difference between the tax provision on a GAAP basis and an adjusted non-GAAP basis. FY 2020 GAAP EXCLUDED ITEMS FY 2020 NON-GAAP ASSET IMPAIRMENT, EXCLUSIVE OF FLAGSHIP STORE EXIT CHARGES $72,937 $72,937 $— OPERATING (LOSS) INCOME (20,469) (72,937) 52,468 (LOSS) INCOME BEFORE INCOME TAXES (48,743) (72,397) 23,654 INCOME TAX EXPENSE (1) 60,211 (4,299) 64,510 NET LOSS $(114,021) $(68,638) $(45,383) NET LOSS PER DILUTED SHARE $(1.82) $(1.10) $(0.73) DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING 62.551 62.551 FULL YEAR RECONCILIATION OF ADJUSTED NON-GAAP RESULTS APPENDIX 34

NET SALES Q4 2021 Q4 2020 Δ % GAAP $1,161,353 $1,122,044 4% IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — (6,591) (1)% NON-GAAP CONSTANT CURRENCY BASIS $1,161,353 $1,115,453 4% GROSS PROFIT Q4 2021 Q4 2020 Δ BPS (2) GAAP $677,132 $679,019 (220) IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — (3,996) 0 NON-GAAP CONSTANT CURRENCY BASIS $677,132 $675,023 (220) OPERATING INCOME Q4 2021 Q4 2020 Δ BPS (2) GAAP $98,133 $115,899 (190) EXCLUDED ITEMS (3) (1,901) (15,597) 120 ADJUSTED NON-GAAP $100,034 $131,496 (310) IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — (151) (10) ADJUSTED NON-GAAP CONSTANT CURRENCY BASIS $100,034 $131,647 (320) NET INCOME PER DILUTED SHARE Q4 2021 Q4 2020 Δ $ GAAP $1.12 $1.27 $(0.15) EXCLUDED ITEMS, NET OF TAX (3) (0.03) (0.23) 0.20 ADJUSTED NON-GAAP $1.14 $1.50 $(0.36) IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — (0.01) 0.01 ADJUSTED NON-GAAP CONSTANT CURRENCY BASIS $1.14 $1.51 $(0.37) (1) The impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share impact from foreign currency is calculated using a 26% tax rate. (2) The estimated basis point impact has been rounded based on the percentage change. (3) Excludes the effect of certain items set out on page 32. APPENDIXQ4 RECONCILIATION OF CONSTANT CURRENCY RESULTS 35

NET SALES FY 2021 FY 2020 Δ % GAAP $3,712,768 $3,125,384 19% IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — 25,927 1% NON-GAAP CONSTANT CURRENCY BASIS $3,712,768 $3,151,311 18% GROSS PROFIT FY 2021 FY 2020 Δ BPS (2) GAAP $2,311,995 $1,891,205 180 IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — 13,865 0 NON-GAAP CONSTANT CURRENCY BASIS $2,311,995 $1,905,070 180 OPERATING (LOSS) INCOME FY 2021 FY 2020 Δ BPS (2) GAAP $343,084 $(20,469) 990 EXCLUDED ITEMS (3) (12,100) (72,937) 200 ADJUSTED NON-GAAP $355,184 $52,468 790 IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — 1,399 10 ADJUSTED NON-GAAP CONSTANT CURRENCY BASIS $355,184 $51,069 800 NET (LOSS) INCOME PER DILUTED SHARE FY 2021 FY 2020 Δ $ GAAP $4.20 $(1.82) $6.02 EXCLUDED ITEMS, NET OF TAX (3) (0.15) (1.10) 0.95 ADJUSTED NON-GAAP $4.35 $(0.73) $5.08 IMPACT FROM CHANGES IN FOREIGN CURRENCY EXCHANGE RATES (1) — 0.01 (0.01) ADJUSTED NON-GAAP CONSTANT CURRENCY BASIS $4.35 $(0.74) $5.09 (1) The impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share impact from foreign currency is calculated using a 26% tax rate. (2) The estimated basis point impact has been rounded based on the percentage change. (3) Excludes the effect of certain items set out on page 32. APPENDIXFULL YEAR RECONCILIATION OF CONSTANT CURRENCY RESULTS 36

anf-usq_transcriptx2022x

REFINITIV STREETEVENTS EDITED TRANSCRIPT ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call EVENT DATE/TIME: MARCH 02, 2022 / 1:30PM GMT REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

C O R P O R A T E P A R T I C I P A N T S Fran Horowitz Abercrombie & Fitch Co. - CEO & Director Pamela Nagler Quintiliano Abercrombie & Fitch Co. - VP of IR Scott D. Lipesky Abercrombie & Fitch Co. - Executive VP & CFO C O N F E R E N C E C A L L P A R T I C I P A N T S Corey Tarlowe Jefferies LLC, Research Division - Equity Analyst Dana Lauren Telsey Telsey Advisory Group LLC - CEO & Chief Research Officer Janet Joseph Kloppenburg JJK Research Associates, Inc. - President Kimberly Conroy Greenberger Morgan Stanley, Research Division - MD Marni Shapiro The Retail Tracker - Co-Founder Matthew Robert Boss JPMorgan Chase & Co, Research Division - MD and Senior Analyst Mauricio Serna Vega UBS Investment Bank, Research Division - Analyst Paul Lawrence Lejuez Citigroup Inc., Research Division - MD and Senior Analyst Susan Kay Anderson B. Riley Securities, Inc., Research Division - VP & Analyst P R E S E N T A T I O N Operator Good day, and welcome to the Abercrombie & Fitch Fourth Quarter and Year-End Fiscal Year 2021 Earnings Call. Today's conference is being recorded. (Operator Instructions) At this time, I would like to turn the conference over to Pam Quintiliano. Please go ahead. Pamela Nagler Quintiliano - Abercrombie & Fitch Co. - VP of IR Thank you. Good morning, and welcome to our Fourth Quarter 2021 Earnings Call. Joining me today on the call are Fran Horowitz, Chief Executive Officer; and Scott Lipesky, Chief Financial Officer. Earlier this morning, we issued our fourth quarter earnings release, which is available on our website at corporate.abercrombie.com under the Investors section. Also available on our website is an investor presentation. Please keep in mind that any forward-looking statements made on the call are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions we mention today. A detailed discussion of these factors and uncertainties is contained in the company's filings with the Securities and Exchange Commission. In addition, we will be referring to certain non-GAAP financial measures during the call. Additional details and a reconciliation of GAAP to adjusted non-GAAP financial measures are included in the release issued earlier this morning. With that, I will turn the call over to Fran. Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Good morning, everyone. I am excited to be here today to discuss our fiscal 2021 results and the initiatives that empowered us to achieve a 9.6% adjusted annual operating margin, our highest in over a decade and well above the 5.8% target outlined at our 2018 Investor Day. But first, I'd like to thank our global stores, distribution center and home office teams as well as our partners. Without you, we could not have realized such significant improvements. I'd also like to take a moment to send our thoughts and prayers to all of those impacted by the current situation in Ukraine. 2 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

Now on to our results. First, I'm going to discuss the substantial foundational changes made from fiscal year-end 2018, which anchors to our 2018 Investor Day through 2021 before turning to fourth quarter and full year results and our thoughts on 2022. As a reminder, at our 2018 Investor Day, we discussed the initiatives necessary to stabilize, transform and ultimately accelerate growth. These included: optimizing our global store network, enhancing digital and omni capabilities, increasing the speed and efficiency of our concept to customer life cycle, and improving customer engagement through loyalty programs and marketing optimization. As COVID hit and others were in survival mode, our balance sheet enabled us to double down our initiatives. As a result, today, we are firmly in our growth phase. Let's take a moment to discuss. Starting with global store network optimization. Over the past 3 fiscal years, we have removed 1.5 million gross square feet or 23% out of our base through 228 closures, including 14 flagships. The vast majority of closures were oversized Abercrombies. This has resulted in a reduction in annual store occupancy costs of $197 million or 31% since fiscal 2018. A huge shout-out to our real estate team who has rigorously evaluated every store in our portfolio and the role it plays. But it's important to note that optimizing our footprint has not been solely focused on closures. We continue to reposition each brand while evolving the experience to enhance our suite of omni tools, including: purchase online, pick-up in store; curbside pickup; order in store; ship from store; and same-day delivery. At Abercrombie, which has a significantly higher digital penetration in Hollister, reflecting the shopping preferences of its millennial customer base, we have added 65 new experiences over the past 3 fiscal years. On average, these are roughly 30% to 50% smaller than our heritage stores and better reflect the modern Abercrombie & Fitch through clean and open sight lines and improved functionality that supports the digital nature of our customer. Today, roughly 40% of Abercrombie stores are in an updated format. At Gen Z brand, Hollister, the teen view is going to the malls for social activity. With a newer and more updated store base, the number and size of stores has remained relatively stable over the past 3 years, and our primary focus has been to open up and brighten the storefront and interior. Currently, around 60% of Hollisters are in an updated format. We also have a dedicated Gilly Hicks space in each Hollister globally, including 28 side-by-side locations. Simply put, there has been a fundamental shift in how we think about the purpose of a store. We no longer take a one-size-fits-all approach. With tens of millions of customers in our database, we have quantitative and qualitative data to inform our approach to each market. A great example is our recently opened Abercrombie Southport Chicago store. At roughly 2,300 selling square feet, it's one of our smallest footprints yet, offering only women's products, reflecting known demand in the area, and thus far, we are beating internal expectations. We are excited to have added another highly productive customer-centric store format and we'll continue to explore different opportunities that reflect market-specific nuances. Needless to say, I am thrilled with our progress. We have shuttered underproductive locations and found new ways to meet our customers through enhanced shopping experiences, both in-stores and online. And while closing stores took a meaningful chunk of sales out of our base, it was absolutely the right decision for the longer-term health of our company and our brands. We are ready to move forward, unencumbered by a dated and expensive store base that does not accurately reflect who we are today. While there is no finish line, we have reached a pivotal moment for our company and our brands. We have exited our stabilization phase and are now on a path of growth with a continued focus on the omnichannel brand experience, which includes both stores and digital. In 2022, for the first time since 2008, we expect to see net store openings with a minimum of 50 new omni-enabled experiences, offset by an estimated 30 closures and square footage to be up in the low single-digit range for the year. We will continue to maintain our discipline, surrounding size, location and economics. Ultimately, we believe that stores and digital are complementary brand experiences and that there is the opportunity to further increase digital sales, even as we introduce more store locations. Turning to digital. When COVID accelerated the shift to this channel, the consistent investments we had made over the last several years enabled us to fulfill that demand. Financially, we executed against our long-term plan of reducing occupancy to fund increased digital fulfillment. In fiscal 2021, even as stores reopened, roughly half of our sales were digital versus about 1/3 in 2018. 3 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

Now on to our third area of transformation. Speed. In order to be nimble and stay on top of current and upcoming trends, we refined our design calendar, rebalanced our vendors and expanded countries of origin. This has enabled us to move quicker and further improve the quality of our product. Looking ahead, we will continue to evolve our sourcing and transportation strategies to mitigate inventory risk by further diversifying production, adjusting our product calendar and adding ports and carriers. Last, but certainly not least, let's discuss customer engagement, where the most critical step thus far has been clearly defining the purpose and competitive positioning of each brand. With this lens, our teams have evolved how we stay close to our customer and their ever-changing needs. While there are so many great examples, let's start with Abercrombie's best dressed guest franchise. For those of you who haven't heard, 2022 is predicted to be a record year for weddings. With our "Best Dressed Guest" Collection, we provide outfitting options for all their wedding, shower, bachelor and bachelorette party needs. For our Gen Z customer who's not preparing for wedding season just yet, we collaborated with World Fortnite Champion, Bugha, on gamer training events and associated product. These programs [at both] (added by the company after the call) Abercrombie and Hollister have been highly successful and speak to the innovative ways we are gathering customer insights and executing to them. With the DNA and positioning solidified for each of our brands, our marketing teams are authentically engaging with their respective customers on the channels that are most relevant to them. We continue to unlock and realize the power of social selling through influencers, affiliates and platforms such as TikTok, Instagram, and LikeToKnowIt, or LTK. LTK, one of the top global influencer platforms, recently recognized Abercrombie by including 2 pieces on its 2021 Most Popular Items List, the seamless tank body suit and the asymmetrical snap-up fleece. We also launched a highly successful mini me collaboration for kids with one of LTK's top performers, Sister Studio. Additionally, we have tapped into social selling that is relevant to our teen with social tourists, hosting TikTok's first-ever live fashion show made by Gen Z for Gen Z. As our product voice and experience have clicked, our target customer has noticed. At fiscal year-end 2021, we had roughly 34 million combined growth global followers across brands and social media platforms and approximately 18 million loyalty accounts. And just recently, Abercrombie and Hollister were voted America's Best Loyalty Programs for 2022 by Newsweek and Statista. And here's the punchline. These initiatives have enabled us to increase sales shift investments from occupancy into marketing and digital, while growing our adjusted operating margin by 570 basis points from fiscal year-end 2018. As we've evolved our brands and operating model, we have also been working on our corporate culture. We recently launched our corporate purpose, being here for you on the journey to being and becoming who you are. And we were named one of Fortune's 2021 Best Places to Work in Retail and designated a Best Place to Work for LGBTQ Equality by the Human Rights Campaign Corporate Equality Index for the 16th year in a row. I know I have spoken for quite a while on our transformation initiatives, but it is a critical part of our story and the foundation for how we are going to thrive in the future. Since our 2018 Investor Day, we have become stronger, smarter, faster and more agile with 5 clearly defined and differentiated brands, all of which have global growth opportunity. So focusing on 2021, we achieved the following: 19% sales growth from fiscal 2020 and 2% growth from fiscal 2019; a gross profit rate of 62.3%; 180 basis points above fiscal 2020 and 290 basis points above fiscal 2019, with double-digit AUR growth offsetting 370 basis points of freight cost headwinds compared to fiscal 2019; a 9.6% adjusted operating margin, our best since 2008; and adjusted earnings per share of $4.35, our highest since 2007. And this year, we also became more aggressive with shareholder returns, repurchasing 10.2 million shares for $377 million and reducing total shares outstanding by 15%. We were faced with many unexpected challenges throughout the year but especially in the fourth quarter, with the rise of a new COVID variant, elevated freight costs and major inventory receipt delays to name just a few. For the quarter, total sales were up 4% from [fiscal] (added by the company after the call) 2020 and down 2% from [fiscal] (added by the company after the call) 2019, with U.S. sales up 7% and 3%, respectively. We had significant unexpected inventory receipt delays from late November into December, leaving us unable to fulfill peak holiday demand. Following the delays in the mid-January Omicron peak, we ended the quarter strong as remaining receipts arrived and case counts declined. The fourth quarter marked our seventh consecutive quarter of AUR growth with all brands, regions and channels contributing to improvements on reduced promotions, markdown and clearance activity. 4 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

Turning to brand-specific performance. Hollister was the most heavily impacted by inventory receipt delays, store closures and EMEA exposure. Our teams navigated the challenges well and are in good position for the spring season. While there are many fourth quarter product standouts at Hollister, jeans remained one of the best performing categories as girls and guys embraced newer silhouettes. Even though jeans are already a top 3 sales driver on an annual basis, we believe there's opportunity for more growth and look forward to sharing additional detail on our plans as the year progresses. At Gilly Hicks, our customer responded well to underwear and sleep, 2 categories we added newness following the brand relaunch and continued to love our active collection, Gilly Go. Reaction to recently introduced men's product remains strong, and our first Gilly stand-alone store is exceeding internal expectations with additional locations, including in the U.K. and Germany scheduled to open this spring. At our newest brand, Social Tourist, we are learning something new with every collection. It's been an amazing ride curating this social-first brand with the D'Amelio family. We are leaning into Social Tourist's unique positioning, which has helped us find creative ways to engage and attract customers and have applied these learnings to our other brands. At A&F Adults, the young millennial customer continues to rediscover the brand. Elevated fashion content and size inclusivity have been key drivers of success. In the fourth quarter, women's remained on a path of accelerated growth driven by must-win categories, including jeans, where sales more than doubled, and we see additional opportunity as well as dresses, sweaters and knits. Abercrombie brand love is strong with customers and press continuing to support the theme that Abercrombie is back, and we could not agree more. Just last week, we had a soft launch of our active sub-brand, your personal best, and response has been amazing. This is another great example of taking and actioning on customer feedback. At Abercrombie Kids, our play is life mindset continue to drive our product and our comfy dressy assortment for holiday proved to be a standout. Now on to marketing. Over the last few calls, we've discussed increased investments, and I want to take a moment to highlight some of our successes. At Hollister, we owned Black Friday on TikTok with 185 million impressions and a whopping 75% of Gen Z on TikTok seeing an ad for Hollister or Gilly Hicks. We also hosted Hollister's first virtual store in Snapchat, which launched on Black Friday, and they had a total of 30 million impressions and had 8 weeks of storytelling with influencers and affiliates across TikTok and Instagram, including weekly Instagram live shops for holiday. At Abercrombie Adults, Abercrombie & Fitch search volume grew 250% over the last year and 150% in Q4 alone. We had our best social selling quarter ever with triple-digit year-over-year growth, including a record Cyber Week for digital. We are at such an exciting point in our journey and have the foundation firmly in place to accelerate growth. Quarter-to-date, we've had a nice build in sales trend from Q4 levels and have seen a strong early response to our spring assortments. While we face several near-term headwinds, including ongoing COVID unknowns, the lapping of stimulus, supply chain and input cost pressure and the potential impact of geopolitical uncertainty, we believe that our target customer is currently healthy, engaged and hungry for the new fashion content we are offering across brands. Operationally, we are thoughtfully executing to growth. We have the balance sheet to support our long-term strategic view and are committed to profitable global expansion. We look forward to sharing more detail on our 3-year plan at our Investor Day this June. With that, I'm going to turn it over to Scott to discuss our recent results in more detail and our outlook for 2022. Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Thanks, Fran, and good morning. With 2021 coming to a close, we wrapped up a critical multiyear period where we made significant progress in transforming our operating model and improving our profitability profile. Like Fran, I'm extremely proud of how our teams have accelerated our transformation, while navigating a tremendous amount of personal and professional challenges over the past 2 years. Turning to our results. I'll start by covering Q4 and full year 2021 with references to 2020 and 2019, where applicable. I'll finish with thoughts on 2022. For Q4, we delivered net sales of $1.16 billion, up 4% to 2020 and down 2% to 2019. As mentioned in our January business update, we experienced significant unforeseen inventory receipt delays for the peak holiday selling period, primarily impacting Hollister and Gilly Hicks. We are caught up on receipts and do not anticipate significant inventory supply issues for the first quarter. We continue to execute against multiple initiatives to mitigate go-forward inventory disruptions, including updating our product calendar and diversifying our ports, carriers and countries of origin. 5 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

Compared to 2020, net sales were up 2% for Hollister, which includes Gilly Hicks and Social Tourist and 6% for Abercrombie, which includes kids. By region, net sales increased 7% in the U.S. and decreased 4% in our international regions. Compared to 2019, net sales were down 6% at Hollister, up 4% at Abercrombie, up 3% in the U.S. and down 14% internationally. We continued to see stronger trends in the U.S. as compared to EMEA and APAC, where we saw ongoing disruptions from COVID-related lockdowns and restrictions. Our largest market, the U.K., was impacted throughout much of the quarter, while the Netherlands and Austria experienced COVID-related closures. As stores and markets have reopened, sales have rebounded nicely. Moving on to gross profit. Our rate of [58.3%] was down 220 basis points to 2020 and up 10 basis points to 2019. Compared to 2019, we saw approximately $80 million of freight inflation or 700 basis points, up slightly from our previous $75 million estimate. We fully offset these freight headwinds through higher AURs across brands and channels on reduced promotions and markdowns. Excluding these headwinds, the gross profit rate would have been up 710 basis points compared to 2019. I'll now cover the rest of our Q4 results on an adjusted non-GAAP basis. Excluded from our non-GAAP results this quarter are $2 million of pretax asset impairment charges, which adversely impacted results by approximately $0.03. Last year, we excluded $16 million of pretax asset impairment charges, which adversely impacted results by $0.23. Operating expense, excluding other operating income, was $581 million versus $551 million last year and $566 million in 2019. Compared to 2019, operating expense increased by 3% due primarily to investments in marketing, higher digital fulfillment expense and higher incentive-based compensation, partially offset by savings and store-related expenses. Operating income was $100 million compared to $131 million last year and $125 million in 2019. The effective tax rate was approximately 25%. Net income per diluted share was $1.14 compared to $1.50 last year and $1.31 in 2019. Turning to full year 2021 results, which I'll cover on an adjusted non-GAAP basis. Due to the COVID-driven impact on fiscal 2020, I will be using 2019 as the primary comparison year. Full year results exclude approximately $12 million of pretax asset impairment charges primarily attributable to COVID. These charges adversely impacted results by $0.15. In 2019, we excluded $13 million of pretax asset impairment charges, which adversely impacted results by $0.13. For the year, net sales were $3.7 billion, up 2% to 2019 driven by record high digital sales, partially offset by lower store sales. For the year, digital sales penetration was 47%. Gross profit rate was 62.3%, up 290 basis points in 2019. For the full year, freight inflation adversely impacted gross profit rate by approximately 370 basis points. We fully offset this impact through higher AURs on reduced promotions and markdowns. As a reminder, we did not increase ticket prices in 2021. Operating expense, excluding other operating income, was $1.97 billion compared to $2.07 billion in 2019. 2019 results included $47 million of flagship charges primarily related to the exit of our SoHo Hollister flagship. In 2021, we continued to tightly manage expenses, which represented 52.9% of sales, our lowest rate since 2007. Compared to 2019, store occupancy was lower due to store closures and right sizes. This reduction was partially offset by higher digital fulfillment, marketing and incentive-based compensation expenses. Operating income was $355 million or 9.6% of sales, our highest operating margin since 2008. The effective tax rate for the year was 13%. Net income per diluted share was $4.35. Turning to the balance sheet. We ended the year with inventory of $526 million, up 30% to last year. Of the increase, 10 points came from higher end transit due to extended shipping times and around 20 points came from higher freight costs. Units on hand were approximately flat to last year. Moving through 2022. We plan to continue to maintain a disciplined approach to inventories, while optimizing receipt timing with the assumption that the supply chain will remain challenged for the foreseeable future. We exited the year in a strong financial position with cash and cash equivalents of $823 million and total liquidity of approximately $1.1 billion. The cash balance at year-end was $280 million lower than last year as we aggressively returned excess cash to shareholders in the form of share repurchases. In the fourth quarter, we repurchased 4.1 million shares for $142 million, bringing the total for the year to 10.2 million shares for $377 million. At year-end, we had 53 million shares outstanding, down 15% from the beginning of the year. Capital expenditures were $97 million with roughly 1/3 of the spend attributable to stores and the remainder to digital technology and maintenance needs. On the store fleet historically, for the year, 6 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

we closed a total of 44 locations and opened 38, ending the year with 729 stores. We continue to evolve our go-to-market strategy as we increasingly leverage the data and known shopping behaviors of the respective local consumer and are excited about our planned store count growth in 2022. I'll finish up with our thoughts on 2022. In our outlook, we make assumptions on inflation for the year based on our current knowledge. For the full year, we expect net sales to be up 2% to 4% from $3.7 billion in 2021 with the U.S. continuing to outperform EMEA and APAC. We are cautiously optimistic we'll see a trend change in these regions as COVID restrictions continue to abate. As a reminder, our largest international exposure is the U.K., followed by Germany and France. Gross profit rates will be down around 200 basis points to 2021 level of [62.3%]. Compared to 2021, we expect to see 300 to 400 basis points of freight and raw material inflation, weighted towards freight in the first half and raw materials in the second half. Our expectations assume we will offset a portion of these headwinds through higher AURs on a balance of select ticket increases and further reductions in promotional depth and breadth. Operating expense, excluding other operating income, to be up in a range similar to sales of up 2% to 4% to 2021 adjusted non-GAAP level of $1.97 billion. Outside of inflation, expense increases are planned to be focused primarily on improving the digital experience, modernizing technology and opening new stores. Finally, we expect an effective tax rate in the high 20s. Assuming we deliver against these expectations, we expect our full year operating margin to be in the 7% to 8% range. Regarding capital allocation. We expect capital expenditures of approximately $150 million with about half related to digital and technology and half related to stores and maintenance. For excess cash, we plan to continue to focus on share repurchases, pending market conditions and share price. Entering 2022, we have $358 million remaining on the $500 million share repurchase authorization established in November 2021. As Fran mentioned, we are pleased with our quarter-to-date performance. For the first quarter, we expect net sales to be up low single digits to Q1 2021 level of $781 million. Gross profit rate to be down around 400 basis points to 2021 rate of 63.4%, reflecting around $65 million of incremental freight costs compared to Q1 2021, partially offset by improved AUR. Operating expense, excluding other operating income, to be up around 6% to Q1 2021 level of $436 million, with approximately half of the increase due to lapping COVID-related rent abatements and government assistance recognized in Q1 2021. We enter this year in a position of strength and are excited to build on our recent success. While we expect to see high levels of inflation, we have evolved our gross margin and expense structure to a place where we anticipate absorbing a significant amount of this pressure and once again delivering an operating margin, well above pre-pandemic levels. Looking ahead, we plan to utilize our strong balance sheet and cash generation to make ongoing investments in our customer experience and in the modernization of our systems to improve agility, speed and further embed data and analytics in our decision-making. We view these investments, along with our ongoing focus on our customer as critical to enabling long-term global growth across our portfolio of brands. We look forward to discussing these themes as well as our multiyear financial targets in more detail at our Investor Day this June. With that, operator, we are ready for questions. Q U E S T I O N S A N D A N S W E R S Operator (Operator Instructions) Our first question today comes from Paul Lejuez of Citi. 7 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

Paul Lawrence Lejuez - Citigroup Inc., Research Division - MD and Senior Analyst Curious if you can give any more color on the sales guidance in terms of what you assume by geography or concept? Just trying to understand which pieces of the business are likely to outperform versus underperform that top line guidance for both quarter and full year. Any quantification there? And I'm curious if you've seen any recent impact in your European business. Just what everything that's going on over there. Curious how the European customer is responding. And then last, just also curious if you're seeing any change in the promotional cadence out there amongst the competition. Or any signs from your customer that they might be resisting the higher AURs? Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Yes. Paul, good to hear from you. I'll start with the color on the sales guidance. So thinking about the year in total, so up 2% to 4% this year, thinking about that in 2 ways, there'll be a balance of new stores. So that will be a net new store grower this year, which is a great thing for the company. We've been reducing our store count for years and years, and we're at a point now where we are turning that up the other way. So really exciting on that side. And then we'll have a balance of comps. When we think about growth, we expect growth from both of our brands, Abercrombie and Hollister. Likely Hollister will continue -- I'm sorry, Abercrombie will continue to outperform Hollister a bit, but we expect growth by both brands and really the same trends continuing across geos. Expect the U.S. to outperform the international regions. Again, we're cautiously optimistic that the international business will inflect here as we get through the worst of COVID, but time will tell, and we're not going to forecast that until it actually happens. So that's how we're thinking about the sales outlook. And I would say those themes, pretty consistent as you think about Q1. Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Yes. I'll jump in on promotional cadence, Paul. So we look back on '21, what an exciting year for us. To reduce the promotions that we were able to take out of the business in '21 were quite an exciting accomplishment for all of us. So we did see the consumer, to your point, 7 quarters of AUR growth and 4 recent quarters of double-digit AUR growth. So he and she have shown some elasticity that is clearly based on the fact that our product voice and experience are resonating and we are keeping tight control on inventory. We will keep both of those things as part of our strategy as we head into '22, and we'll continue to monitor this customer on a weekly basis, like Scott and I do with the teams. Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Just to close the loop on the EMEA current climate, Paul. A lot going on, obviously, in the European region. It's a horrible situation, what's happening in the Ukraine. We do not have a large exposure to that part of the world in Eastern Europe. And on the Western European side, we're kind of comping the reopening this year versus a pretty shutdown economy last year. So a lot of moving parts there, and our hearts go out to what's happening in that region. Operator And we can now move on to Susan Anderson of B. Riley. Susan Kay Anderson - B. Riley Securities, Inc., Research Division - VP & Analyst I was wondering if maybe you can talk a little bit more about Gilly Hicks on maybe give some color on the size of the brand now, if it's material, and then the growth you're expecting over the next few years in number of stand-alone stores. And potentially other new product categories you can expand into such as like the Gilly Go as we look forward. 8 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Hey, Susan. Love to talk about Gilly. So as you know, we launched Gilly back in July and established a nice new platform for it, which is finding your happy place, which is really resonating with our consumer, and we introduce guys into the brand as well. So starting with that, we carry guys now in our side-by-side, in our freestanding store in Easton and that is resonating nicely and selling nicely. Gilly Go, we added during the pandemic, and that has also been a nice growth vehicle for us. So Gilly had a strong year, excited about the product acceptance that we're seeing, as you mentioned. So we did open up Easton and have seen a nice response to that store. We are a test-and-learn culture here. So what we're learning from that store is enabling us to open up 2 that we named this morning. So we're opening up a store in the U.K. and Germany as well. And we have a few more on the docket. When we get to our Investor Day in June, we're going to give more specificity about Gilly. Susan Kay Anderson - B. Riley Securities, Inc., Research Division - VP & Analyst Okay. Great. And then maybe you could talk about -- have you seen, I guess, it sounds like denim is still very strong, maybe dresses are coming back. But have you seen I guess is everything selling very well, including fashion now? Or have you kind of seen that pendulum swing towards more fashion? And is that what you're expecting for this year for maybe dresses to kind of take the strength and denim is still strong but maybe not as strong as they had been? Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director This is actually -- our denim business and our dress business has been strong for quite a few years now. We even talked back during the real height of the pandemic that we were selling fashion in both denim and dresses. I couldn't tell you exactly where everybody was wearing it too, but we certainly talked about the fact that, that they were both resonating. Today, that continues to be so. We had a strong year in both those categories, in both of our brands for '21. We're still seeing strength in both of them. I mentioned during my script that we are looking at what could be a record year in weddings, and so dresses are resonating in both brands. There's so much fashion and exciting new things happening, particularly in the denim area that the more newness and the more fashion we keep sending out to our consumer, the hungrier and excited they are about the product. So again, just to sum it up, both are strong and expect to continue to see that. Operator We can move on to Dana Telsey of Telsey Group. Dana Lauren Telsey - Telsey Advisory Group LLC - CEO & Chief Research Officer As you think about the digital business, which I believe is around 48% of sales or so, where do you see that going? And now that you're shifting to being a net store opener, how do you see the percentage in the U.S. business malls versus off-mall? And going forward, is your rent expense going forward lower than what it had been in 2019? Or how are you thinking about occupancy cost? Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Dana, good morning. I'll kick this one off. So exciting. Digital business has grown tremendously for us from 1/3, as you said, close to half of our business. As we think about the future of our business, both are important. Digital will grow and stores will grow. That is clearly the magic that makes our omni business. As the stores have reopened, we're actually seeing the channels rebalance a bit. So we haven't declared exactly where we think that's going. But today, at about 50% for both and growth for both is how we see it. 9 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO As we think about on-mall, off-mall, the Southport, the Chicago example we gave is a good one. We're going to continue to evolve our toolkit as it comes to stores and how we approach each market. So more to come there. I think we'll start to see a little bit more off-mall than we've had in our past. Going to the occupancy question, which was the last question. We've been on quite a journey here on occupancy. You've been on that journey with us. Our occupancy dollars are down close to $200 million when you look back a couple of years to that 2019 level. At this point, we're baking that into our outlook for next year. It's a great starting point. Our occupancy dollars will tick up a little bit as we become net openers of stores. But we're not going to lose that discipline that we've had here for the past couple of years. It's got to be the right size at the right location and the right economics. And if we get that, we will sign the deal. And so we don't expect large oversized expensive stores like we've had in the past, but we are going to maintain that discipline going forward. Operator And the next question comes from Matthew Boss of JPMorgan. Matthew Robert Boss - JPMorgan Chase & Co, Research Division - MD and Senior Analyst Great. So Fran, you cited top line acceleration in February relative to the fourth quarter. Could you elaborate on trends that you're seeing across your brands? Any early reception that you're seeing to spring assortments? And then, Scott, what is embedded this year for AUC or freight as we think about shaping the margin structure this year? Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Hey, Matt. So yes, we are excited to see where we are for February. That's coming off of 2 specific things. We talked a lot during ICR about the delayed receipts. Those continue to sell through from our consumers. So excited to see that. And the reception to our early spring receipts have been strong, and that's across brands and genders. Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Yes. On the AUC, as we think about the full year, we're looking at about 300 to 400 basis points impact on margin from AUC. And I'd say that the front half is going to be weighted more towards freight as we lap lower freight last year. The freight really started to spike up in Q3 and Q4 last year. So -- we'll lap that with higher freight this spring. And in the back half, we'll start to see some of that cotton inflation flow through. So in total, we're saying about 300 to 400 basis points from cost increases into AUC. We do expect gross margins to be down approximately 200 basis points. So our expectation is that we will offset a portion of that 300 to 400 basis points freight, and raw material cost headwinds with higher AURs. Operator And our next question comes from Janet Kloppenburg of JJK Research Associates. Janet Joseph Kloppenburg - JJK Research Associates, Inc. - President I'm just wondering about the freight assumptions for the year. I think you said, Scott, that there's $65 million impact in the first quarter. How do you see -- in your 7% to 8% EBIT margin assumptions for this year, how do you see freight for the rest of the year? Is there some opportunity for moderation later in the year? And Fran, it sounds like Abercrombie is -- has really got some strong momentum. And it feels like it's a little bit better 10 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

than Hollister's. I was just wondering, is that just because productivity levels of being recaptured at A&F? Or do you think that there are some other issues confronting Hollister, perhaps the impact of your having more restrictions than the U.S.? I'd just love to see -- understand your view on the sales momentum of Hollister versus A&F and how we should think about that going forward. Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Okay. So let's start. We'll go backwards, Janet. So starting with A&F, yes, the brand is on fire, and it is so awesome that the brand is back. I'm sure you've been with us for quite a time. Janet Joseph Kloppenburg - JJK Research Associates, Inc. - President Right. It looks amazing. I mean it's just -- it's really quite well done. Yes. Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Thank you. So it's obviously, Hollister got to start much earlier in this journey. And I will tell you that we are actually really excited about our Hollister business. Our U.S. business, specifically, let's focus on that for a minute. Yes, we were 6% ahead of 2019 in the U.S., and Hollister has a different composition to it. So to your point, it's more store-based, it's more international-based. And we do see the delays that we incurred in December and January, a higher penetration on Hollister and on Gilly. So both brands are resonating. A&F trend is a bit stronger than Hollister, but Hollister is still strong, and we're excited. They got their assortment architecture right. Their denim business is terrific. So lots of good things happening in both brands. Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Right, Janet, on the freight, the $65 million that we called out for freight is related to Q1, so year-over-year growth in freight in Q1. Zooming out to the year, getting back to that 300 to 400 basis points is our estimate right now for freight and raw material impact for the year. I think we as well as pretty much everyone that ships product across the ocean, we're all hopeful for some kind of moderation in the back half, but who knows when that might come. We're not planning for it. I think we're all hoping for it. When we think about the operating margins for the year, our sales are up 2% to 4%, expenses will track against that. So call it expense leverage, deleverage, essentially 0. And then we look at that gross margin in the middle. We're expecting around 200 basis points decrease from 2021. So that's really what's driving the expected operating margins down from this year into next year. And we'll see, we're putting a realistic AUR out there. We've had a really strong run on AUR, 7 straight quarters, double-digit for last year. We're expecting more on top of that. But at this point, we're not expecting we would overcome all of that inflation. Operator The next question comes from Kimberly Greenberger of Morgan Stanley. Kimberly Conroy Greenberger - Morgan Stanley, Research Division - MD I wanted to ask about the outlook for gross margin here in 2022. Are you contemplating any return of some promotions either across the industry or in your store? Or do you think you'll be able to hold all of those AUR gains that you got last year and build upon those with the additional price actions in 2022? 11 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Our expectation is that we will be able to hold those gains. Our expectation for the year, I just mentioned, the AUR to be up off of 2021 levels. We are increasing tickets in select places, and we also think we have an opportunity to pull back on some additional promotions. You know better than anyone. I read your tracker. It's very nice. We were promotional all year last year. We are in a promotional business. So what we are trying to do as a company is pull down our promotions. What used to be 40 to 50 are now a 30 and a 20, and we've had great success with that. So what we're going to do, stepping back, looking at the full year, we're going to deliver great products. We're going to keep our inventory in control and that's going to put us in the best control of our promotional calendar. So the short answer is yes. We think we can hold those gains and build on them in 2022. Kimberly Conroy Greenberger - Morgan Stanley, Research Division - MD Okay. Great, Scott and that is a great segue to my second question, which is just on inventory. How should we think about inventory levels throughout the year 2021? Do you expect a similar kind of increase to what we're seeing here at the end of Q4 to be relatively durable over the next 3 quarters? Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Yes. Coming into this year, just breaking apart of that inventory, so we were up 30%, which have seen a lot of that across the industry. There's some interesting things happening out there. In transit, we all know the transportation lag now versus the past. So we're seeing higher in transit this year. And then we're also seeing some of those higher freight costs baked into that inventory level. As we think about the units on hand, our units on hand starting the year were flat to last year. So we're in a really good place, continue to be clean. As we look towards the rest of the year, as we've gone through last year, specifically back-to-school and more into holiday, we lessen business on the table due to some of those late receipts. So we're going to make sure that some of those receipts are here at a better time line than last year. All of the efforts that our supply chain and sourcing team have been making to ensure our receipts are properly timed and placed and received. as we're optimistic that we'll have better on-hand inventories as we start some of these peak quarters and the peak holiday selling period. Operator Our next question comes from Corey Tarlowe of Jefferies. Corey Tarlowe - Jefferies LLC, Research Division - Equity Analyst You had mentioned that, I believe 40% of Abercrombie stores are in updated format. Can you talk about the comp performance of these updated stores versus some of the older stores? Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Hey, Corey. Scott, I'll grab this one. Yes. The performance in these stores has been good, and it's been interesting to read. I'd say it's hard to read during COVID here because of the wild nature of the stores in each region. So going back to 2019 when we were talking about this, the store performance was really strong in these stores. And regardless of the performance, this is a significant step for the brand to modernize the experience in the stores to match what's happening on social and to match what's happening on our sites and our apps, whenever we're marketing. So we will continue to remodel these Abercrombie 12 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

stores. We'll continue to close some of the legacy stores and reposition the new stores. So excited about raising that 40% rates of the modern store experiences because we just love where this brand is and where this brand is going. Corey Tarlowe - Jefferies LLC, Research Division - Equity Analyst Great. And then just a follow-up on stores. How should we be thinking about the idea that you're going to be a net store opener this year after years of closing stores with some flagships still, I believe, remaining to be closed and the continued evolution of digital and the continued expansion of your store fleet? Just any color as it relates to expectations for store growth this year in the context of kind of continued flagship closures and expansion of digital, that would be very helpful. Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Corey, the way to think about this thing a net store opener is that it is an exciting new chapter for us. We have not been a net store opener since 2008. Omni for us equals stores plus digital, and we believe that we have an opportunity to grow both. Our capital is invested in both. As Scott just talked about, I mean, new smaller, more efficient stores for us, which are omni hubs, right, the consumer comes to bring their pop in or do their DTC return or shop for new product is a winning formula for us. So we need to have stores in order to be omni-capable. So the way I would think about it, just to sum it up, is that being a net store opener for us is an exciting new chapter. It talks about the fact that our balance sheet is strong and that we have growth ahead of us. Operator (Operator Instructions) Our next question today comes from Mauricio Serna of UBS. Mauricio Serna Vega - UBS Investment Bank, Research Division - Analyst Great. I wanted to ask about the store -- the new stores. You mentioned you plan to open 50 new stores then close 30. Does that store closure include any flagships? And then you also mentioned about the sales growth expectations being a mix of higher comp store sales and expansion. Could you provide a little bit more details on that breakdown? And lastly, regarding marketing. I mean how much should we think marketing as a percentage of sales should increase this year? I mean is the intention to continue investing at a higher pace than sales growth? Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO All right. Let me click down through these. So let's start with the closures. We will have a couple of flagships run off this year, more than likely pending any kind of short-term extensions. But the estimate on the rest of the closures of around 30 will be across brands. We'll continue to target those malls where landlords not investing and our customers moving away from those centers as well as oversized stores and legacy stores. So part of the great thing about closing stores and then opening more stores is repositioning that fleet. And to the question we just discussed, being able to close legacy stores and open more modernized experience is a great thing for all of our brands. I'll hop to the marketing question. So as a percent of sales, we did increase marketing nicely this year versus 2019. That was funded by those reductions in occupancy, that almost $200 million that we talked about. So really nice to be able to position from a fixed cost to a variable cost, number one, but also give us the best chance to grow and win with our brands. So our marketing as a percent of sales. We feel good where we were in 2021. So we'll probably keep that pretty level as we go forward. On the sales comp, as we -- I missed that middle question. Can you repeat that again? 13 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

Mauricio Serna Vega - UBS Investment Bank, Research Division - Analyst Yes. The sales growth for guidance for the year, I recall you mentioned there's some contribution from comp store sales, but also the store expansion. If we could -- could you give us an idea of how is that balance? Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Yes, sure. I'd say it's a balance, probably down the middle. We'll get some comp growth, half of it and some of it will come from new store expansion. We did close 38 stores last year, 44 stores last year. So we'll see -- we'll lose those sales, and we'll offset that with new store openings this year, so call it about half and half. Mauricio Serna Vega - UBS Investment Bank, Research Division - Analyst And just very quickly, the stores that you're closing, are they bigger than the ones that you're opening like on an individual store basis? Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO More than likely, we have an estimate for the year, not exactly a targeted store list, but we still have a portion of the fleet that is oversized, and we will continue to work through that as quickly as we can. Operator And the next question comes from Marni Shapiro of Retail Tracker. Marni Shapiro - The Retail Tracker - Co-Founder Stores really look fantastic. And congrats on the new launch in activewear. Looks great. Fran, can you talk a little bit about what -- you've talked a little bit about this omni-enabled. But I'm curious from your perspective, what that means to the company. It sounds a little bit like using those stores as a hub. What does that mean for the shopper? Are there also things happening in the stores, the cash rep is still there, for example. Can she scan items? Or what's the long-term thought about the omni? And then I have one follow-up question just on inventory. Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Sure. So kicking off with omni. I mean what is omni to us, Marni? It's our future, right? Having a great omnichannel brand experience for the consumer, so every touch point that he or she comes to the brand on, that they have a seamless consistent experience is our end goal, and that's what we're working to. Scott brought up a little bit about this store we just opened up in Chicago, the Southport store. That speaks to a couple of things. First, it speaks to data and analytics, right, telling us that this consumer, we had a big digital consumer in that market and she needed a place to pop in, right, pop in and (inaudible) online or return our DTC purchases or just come in and shop. So as we continue to build out our data analytics and our omni. Those 2 things come hand in hand, will help us continue to grow the business. Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Yes. But just to add on, when you think about a store, I'd call it maybe 80% of the functionality is going to be similar. But then it's really on the build-out. That other 20%, how do we tailor that market to the local consumer? Depending on the store or the market, we see pop-ins at a much higher rate in some places, and a lot of places, it's smaller. And there's not a lot of digital returns, and it's purely a shopping experience. So what we do is we tweak the store format to match that market. We have all the same functionality in those stores, but it depends on how much space 14 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

we give to those. That functionality, where we put the cash rep, how many fitting rooms we have. So that's and the technology we put in the fitting room. So that's all the work that we're doing and really tailoring that experience for each market. Marni Shapiro - The Retail Tracker - Co-Founder Would it allow you -- I know this is kind of a silly question given how lean inventories are right now. But would it allow you to, longer term, carry less inventory in those stores as well? Scott D. Lipesky - Abercrombie & Fitch Co. - Executive VP & CFO Yes, some cases and in some cases, more. Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Right, exactly. Marni Shapiro - The Retail Tracker - Co-Founder Okay. And then just a follow-up on the inventory. I know Hollister was more severely impacted than Abercrombie. As the inventory start to flow into the stores, was it highly seasonal? Is this something you had to pack away? Or is it something you were able to flow through when the customer responded to the full price anyway? Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director The latter. So what's exciting, Marni, for our business, we don't do a lot of deals -- true seasonal product. We do some mostly probably in our sleepwear category. And so we made those decisions before we bought the product, and we did have to pack away a little bit nothing, nothing significant. But the exciting thing was that we knew [the receipts] that were coming in. We had some testing on them, and the consumer responded accordingly. So we are selling through those nicely as well as our new spring receipts. So both are working. Operator As there are no further questions at this time, I would like to turn the call back to Fran Horowitz for any additional or closing remarks. Fran Horowitz - Abercrombie & Fitch Co. - CEO & Director Just want to thank everyone for joining us today. Operator Ladies and gentlemen, that concludes today's conference call. We thank you for your participation. You may now disconnect. 15 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 02, 2022 / 1:30PM, ANF.N - Q4 2021 Abercrombie & Fitch Co Earnings Call

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