Financial Analysis

BORROWINGS ABL Facility The Amended and Restated Credit Agreement, as amended, of Abercrombie & Fitch Management Co. (A&F Management), a wholly-owned indirect subsidiary of A&F, provides for a senior secured asset-based revolving credit facility of up to $500 million (the ABL Facility), which matures on August 2, 2029. The terms of the Companys ABL Facility have remained unchanged from those disclosed in Note 13, BORROWINGS , of the Notes to Consolidated Financial Statements contained in Item 8. Financial Statements and Supplementary Data of the Fiscal 2025 Form 10-K. The Company did not have any borrowings outstanding under the ABL Facility as of May 2, 2026 or as of January 31, 2026. As of May 2, 2026, availability under the ABL Facility was $499.5 million, net of $0.5 million in outstanding stand-by letters of credit. As the Company must maintain excess availability equal to the greater of 10% of the loan cap or $36 million under the ABL Facility, borrowing capacity available to the Company under the ABL Facility was $449.5 million as of May 2, 2026. Representations, warranties and covenants The agreements related to the ABL Facility contain various representations, warranties and restrictive covenants that, among other things and subject to specified exceptions, restrict the ability of A&F and its subsidiaries to: grant or incur liens; incur, assume or guarantee additional indebtedness; sell or otherwise dispose of assets, including capital stock of subsid …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table details recognized revenue associated with the Companys gift card program and loyalty programs for the thirteen weeks ended May 2, 2026 and May 3, 2025: Thirteen Weeks Ended (in thousands) May 2, 2026 May 3, 2025 Revenue associated with gift card redemptions and gift card breakage $ 31,477 $ 30,900 Revenue associated with reward redemptions and breakage related to the Companys loyalty programs 15,751 15,312 …

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SHARE-BASED COMPENSATION Financial statement impact The following table provides share-based compensation expense and the related income tax impacts for the thirteen weeks ended May 2, 2026 and May 3, 2025: Thirteen Weeks Ended (in thousands) May 2, 2026 May 3, 2025 Share-based compensation expense $ 12,075 $ 10,591 Income tax benefits associated with share-based compensation expense recognized 1,661 1,398 The following table provides discrete income tax benefits and charges related to share-based compensation awards during the thirteen weeks ended May 2, 2026 and May 3, 2025: Thirteen Weeks Ended (in thousands) May 2, 2026 May 3, 2025 Income tax discrete benefits realized for tax deductions related to the issuance of shares $ 3,559 $ 4,591 The following table provides the amount of employee tax withheld by the Company upon the issuance of shares associated with restricted stock units vesting for the thirteen weeks ended May 2, 2026 and May 3, 2025: Thirteen Weeks Ended (in thousands) May 2, 2026 May 3, 2025 Employee tax withheld upon issuance of shares (1) $ 38,433 $ 34,062 (1) Classified within financing activities on the Condensed Consolidated Statements of Cash Flows. Restricted stock units The following table provides the summarized activity for restricted stock units for the thirteen weeks ended May 2, 2026: Service-based Restricted Stock Units Performance-based Restricted Stock Units Market-based Restricted Stock Units Number of Underlying Shares Weighted- Average Gran …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized based on a three-level hierarchy. The three levels of inputs to measure fair value are as follows: Level 1inputs are unadjusted quoted prices for identical assets or liabilities that are available in active markets that the Company can access at the measurement date. Level 2inputs are other than quoted market prices included within Level 1 that are observable for assets or liabilities, directly or indirectly. Level 3inputs to the valuation methodology are unobservable. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. The following table provides the three levels of the hierarchy and the distribution of the Companys assets measured at fair value on a recurring basis, as of May 2, 2026 and January 31, 2026: Assets and Liabilities at Fair Value as of May 2, 2026 (in thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1) $ 189,156 $ 11,187 $ $ 200,343 Derivative instruments (2) 367 367 Rabbi Trust assets (3) 1,164 55,844 57,008 Restricted cash equivalents (1) 3,087 629 3,716 Total assets $ 193,407 $ 68,027 $ $ 261,434 Liabilities: Derivative instruments (2) $ $ 988 $ $ 988 Total liabilities $ $ 988 $ $ 988 Assets and Liabilities at Fair Value as of January 31, 2 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The quarterly provision for income taxes is based on the current estimate of the annual effective income tax rate and the tax effect of discrete items occurring during the quarter. The Companys quarterly provision and the estimate of the annual effective tax rate are subject to significant variation due to several factors. These factors include variability in the pre-tax jurisdictional mix of earnings, changes in how the Company does business including entering into new businesses or geographies, changes in foreign currency exchange rates, changes in laws, regulations, interpretations and administrative practices, relative changes in expenses or losses for which tax benefits are not recognized and the impact of discrete items. In addition, jurisdictions where the Company anticipates an ordinary loss for the fiscal year for which the Company does not anticipate future tax benefits are excluded from the overall computation of estimated annual effective tax rate and no tax benefits are recognized in the period related to losses in such jurisdictions. The impact of these items on the effective tax rate will be greater at lower levels of pre-tax earnings. Impact of valuation allowances During the thirteen weeks ended May 2, 2026, the Company did not recognize income tax benefits on $24.9 million of pretax losses, primarily in Switzerland, resulting in adverse tax impacts of $3.9 million. As of May 2, 2026, the Company had foreign net deferred tax assets of approximate …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company is a party to leases related to its Company-operated retail stores, as well as for certain of its distribution centers, office space, information technology and equipment. The following table provides a summary of the Companys operating lease costs for the thirteen weeks ended May 2, 2026 and May 3, 2025: Thirteen Weeks Ended (in thousands) May 2, 2026 May 3, 2025 Single lease cost (1) $ 82,422 $ 69,847 Variable lease cost (2) 47,349 48,575 Operating lease right-of-use asset impairment (3) 668 449 Sublease income (1,067) (988) Total operating lease cost $ 129,372 $ 117,883 (1) Includes amortization and interest expense associated with operating lease right-of-use assets and the impact from remeasurement of operating lease liabilities. (2) Includes variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs. (3) Refer to Note 8, ASSET IMPAIRMENT , for details related to operating lease right-of-use asset impairment charges. The Company had minimum commitments related to operating lease contracts that have not yet commenced, primarily for certain Company-operated retail stores, of approximately $53.1 million as of May 2, 2026. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent accounting pronouncements The Company reviews recent accounting pronouncements on a quarterly basis and has excluded discussion of those not applicable to the Company and those that did not have, or are not expected to have, a material impact on the Companys consolidated financial statements. The following table provides a brief description of certain accounting pronouncements the Company has not yet adopted and that could affect the Companys financial statements. Accounting Standards Update (ASU) Description Effect on the financial statements or other significant matters ASU 2024-03 - Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ASU 2025-01 - Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date The updates require a disaggregated disclosure of income statement expenses. The amendments in this update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The updates are effective for fiscal years beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. Other than the new disclosure requirements, the adoption of this guidance will not have a significant impact on the Companys consolidated financial statements. ASU 2025-06 - IntangiblesGoodwill a …

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REVENUE RECOGNITION Disaggregation of revenue All revenues are recognized in net sales in the Condensed Consolidated Statements of Operations and Comprehensive Income. For information regarding the disaggregation of revenue, refer to Note 14, SEGMENT REPORTING . Contract liabilities The following table details certain contract liabilities representing unearned revenue as of May 2, 2026, January 31, 2026, May 3, 2025, and February 1, 2025: (in thousands) May 2, 2026 January 31, 2026 May 3, 2025 February 1, 2025 Gift card liability (1) $ 40,218 $ 48,057 $ 39,391 $ 45,364 Loyalty programs liability 34,311 36,878 33,065 32,199 (1) Includes $13.4 million and $9.6 million of revenue recognized during the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively, that was included in the gift card liability at the beginning of January 31, 2026 and February 1, 2025, respectively. The following table details recognized revenue associated with the Companys gift card program and loyalty programs for the thirteen weeks ended May 2, 2026 and May 3, 2025: Thirteen Weeks Ended (in thousands) May 2, 2026 May 3, 2025 Revenue associated with gift card redemptions and gift card breakage $ 31,477 $ 30,900 Revenue associated with reward redemptions and breakage related to the Companys loyalty programs 15,751 15,312 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING The Companys reportable segments are based on the financial information the chief operating decision maker (CODM) uses to allocate resources and assess performance of its business. The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; EMEA; and APAC. Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Companys segments, and therefore are included as a reconciling item between segment and total operating income. The Americas reportable segment includes the results of operations in North America and South America. The EMEA reportable segment includes the results of operations in Europe, the Middle East and Africa. The APAC reportable segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The group comprised of the Companys (i) Chief Executive Officer, (ii) Chief Operating Officer, and (iii) Chief Financial Officer functions as the Companys CODM. The Companys CODM manages business operations and evaluates the performance of each segment based on the net sales and operating income (loss) of the segment. The CODM considers actual performance relative to expectations and growth potential to dete …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying Condensed Consolidated Financial Statements include historical financial statements of, and transactions applicable to, the Company and reflect its financial position, results of operations and cash flows. The Company has interests in Emirati and Kuwaiti business ventures with Majid al Futtaim Lifestyle L.L.C. (MAF), each of which meets the definition of a variable interest entity (VIE). The purpose of the business ventures with MAF is to operate stores in the United Arab Emirates and Kuwait. The Company is deemed to be the primary beneficiary of these VIEs; therefore, the Company has consolidated the operating results, assets and liabilities of these VIEs, with the noncontrolling interests (NCI) portions of net income presented as net income attributable to NCI on the Condensed Consolidated Statements of Operations and Comprehensive Income and the NCI portion of stockholders equity presented as NCI on the Condensed Consolidated Balance Sheets. Fiscal year The Companys fiscal year ends on the Saturday closest to January 31. This typically results in a fifty-two week year, but occasionally gives rise to an additional week, resulting in a fifty-three week year. Fiscal years are designated in the Condensed Consolidated Financial Statements and notes, as well as the remainder of this Quarterly Report on Form 10-Q, by the calendar year in which the fiscal year commences. All references herein t …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing