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Abercrombie & Fitch

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FY2022 Annual Report · Abercrombie & Fitch
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ANNUAL  REPORT

2022

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(cid:24)(cid:33)(cid:36)(cid:41)(cid:19)(cid:36)(cid:22)(cid:1)(cid:34)(cid:30)(cid:19)(cid:32)

(cid:8) (cid:21)(cid:33)(cid:31)(cid:34)(cid:30)(cid:23)(cid:38)(cid:23)(cid:22)(cid:1)(cid:33)(cid:39)(cid:36)(cid:1)(cid:24)(cid:27)(cid:36)(cid:37)(cid:38)(cid:1)(cid:23)(cid:37)(cid:25)(cid:1)(cid:31)(cid:19)(cid:38)(cid:23)(cid:36)(cid:27)(cid:19)(cid:30)(cid:27)(cid:38)(cid:43)(cid:1)(cid:19)(cid:37)(cid:37)(cid:23)(cid:37)(cid:37)(cid:31)(cid:23)(cid:32)(cid:38)(cid:1)

(cid:8)(cid:71)(cid:60)(cid:64)(cid:56)(cid:63)(cid:60)(cid:65)(cid:56)(cid:1)(cid:66)(cid:69)(cid:58)(cid:52)(cid:65)(cid:60)(cid:77)(cid:56)(cid:55)(cid:1)(cid:53)(cid:76)(cid:1)(cid:32)(cid:60)(cid:70)(cid:54)(cid:52)(cid:63)(cid:1)(cid:50)(cid:56)(cid:52)(cid:69)

(cid:27)(cid:53)(cid:56)(cid:69)(cid:54)(cid:69)(cid:66)(cid:64)(cid:53)(cid:60)(cid:56)(cid:1)(cid:5)(cid:1)(cid:32)(cid:60)(cid:71)(cid:54)(cid:59)(cid:1)(cid:29)(cid:66)(cid:12)

(cid:18)

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(cid:12)(cid:10)(cid:12)(cid:12)(cid:1)(cid:19)(cid:32)(cid:32)(cid:39)(cid:19)(cid:30)(cid:1)(cid:36)(cid:23)(cid:34)(cid:33)(cid:36)(cid:38)

(cid:24)(cid:27)(cid:37)(cid:21)(cid:19)(cid:30)(cid:1)(cid:12)(cid:10)(cid:12)(cid:12)(cid:1)(cid:36)(cid:23)(cid:40)(cid:27)(cid:23)(cid:41)

(cid:20)(cid:36)(cid:19)(cid:32)(cid:22)(cid:1)(cid:34)(cid:33)(cid:37)(cid:27)(cid:38)(cid:27)(cid:33)(cid:32)(cid:27)(cid:32)(cid:25)(cid:1)(cid:19)(cid:32)(cid:22)(cid:1)
(cid:25)(cid:36)(cid:33)(cid:41)(cid:38)(cid:26)

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(cid:67)(cid:66)(cid:71)(cid:56)(cid:65)(cid:71)(cid:60)(cid:52)(cid:63)(cid:1)(cid:57)(cid:66)(cid:69)(cid:1)(cid:56)(cid:52)(cid:54)(cid:59)(cid:1)(cid:66)(cid:57)(cid:1)(cid:66)(cid:72)(cid:69)(cid:1)(cid:53)(cid:69)(cid:52)(cid:65)(cid:55)(cid:70)(cid:12)(cid:2)

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(cid:32)(cid:23)(cid:38)(cid:1)(cid:37)(cid:19)(cid:30)(cid:23)(cid:37)(cid:1)(cid:20)(cid:43)(cid:1)(cid:20)(cid:36)(cid:19)(cid:32)(cid:22)

(cid:12)(cid:10)(cid:12)(cid:12)

(cid:12)(cid:10)(cid:12)(cid:11)

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(cid:1)(cid:50)(cid:1)(cid:3)(cid:1)(cid:5)(cid:11)(cid:6)

(cid:22)(cid:16)(cid:16)(cid:30)
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(cid:26)(cid:33)(cid:30)(cid:30)(cid:27)(cid:37)(cid:38)(cid:23)(cid:36)(cid:1)(cid:5)(cid:12)(cid:6)

(cid:2)(cid:11)(cid:9)(cid:18)(cid:15)(cid:20) (cid:2)(cid:12)(cid:9)(cid:11)(cid:14)(cid:20)

(cid:5)(cid:18)(cid:6)(cid:3)

(cid:19)(cid:20)(cid:23)(cid:36)(cid:21)(cid:36)(cid:33)(cid:31)(cid:20)(cid:27)(cid:23)(cid:1)(cid:5)(cid:13)(cid:6) (cid:2)(cid:11)(cid:9)(cid:16)(cid:13)(cid:20) (cid:2)(cid:11)(cid:9)(cid:14)(cid:15)(cid:20)

(cid:11)(cid:11)(cid:3)

(cid:38)(cid:33)(cid:38)(cid:19)(cid:30)(cid:1)(cid:21)(cid:33)(cid:31)(cid:34)(cid:19)(cid:32)(cid:43)

(cid:2)(cid:13)(cid:9)(cid:16)(cid:10)(cid:20) (cid:2)(cid:13)(cid:9)(cid:16)(cid:11)(cid:20) (cid:45)(cid:3)

(cid:5)(cid:15)(cid:6)(cid:3)

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(cid:12)(cid:3)

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(cid:16)(cid:34)(cid:34)(cid:32)(cid:24)(cid:17)(cid:35)(cid:34)(cid:16)(cid:17)(cid:26)(cid:20)(cid:1)(cid:34)(cid:29)(cid:1)(cid:16)(cid:4)(cid:21)(cid:1)(cid:18)(cid:29)(cid:9)

(cid:25)(cid:19)(cid:19)(cid:34)

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(cid:34)(cid:66)(cid:63)(cid:63)(cid:60)(cid:70)(cid:71)(cid:56)(cid:69)(cid:1)(cid:60)(cid:65)(cid:54)(cid:63)(cid:72)(cid:55)(cid:56)(cid:70)(cid:1)(cid:71)(cid:59)(cid:56)(cid:1)(cid:34)(cid:66)(cid:63)(cid:63)(cid:60)(cid:70)(cid:71)(cid:56)(cid:69)(cid:10)(cid:1)(cid:33)(cid:60)(cid:63)(cid:63)(cid:76)(cid:1)(cid:34)(cid:60)(cid:54)(cid:62)(cid:70)(cid:1)(cid:52)(cid:65)(cid:55)(cid:1)(cid:45)(cid:66)(cid:54)(cid:60)(cid:52)(cid:63)(cid:1)(cid:46)(cid:66)(cid:72)(cid:69)(cid:60)(cid:70)(cid:71)(cid:1)(cid:53)(cid:69)(cid:52)(cid:65)(cid:55)(cid:70)(cid:12)

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(cid:27)(cid:53)(cid:56)(cid:69)(cid:54)(cid:69)(cid:66)(cid:64)(cid:53)(cid:60)(cid:56)(cid:1)(cid:5)(cid:1)(cid:32)(cid:60)(cid:71)(cid:54)(cid:59)(cid:1)(cid:29)(cid:66)(cid:12)

(cid:19)

(cid:16)(cid:14)(cid:16)(cid:16)(cid:1)(cid:27)(cid:65)(cid:65)(cid:72)(cid:52)(cid:63)(cid:1)(cid:44)(cid:56)(cid:67)(cid:66)(cid:69)(cid:71)

2022 ANNUAL REPORT

OUR STAKEHOLDERS

As our corporate purpose states, we are “here for you on the journey to being and becoming who you are.” We are focused on 
creating a sense of belonging and community across our brands. We believe embracing diversity make us all stronger and that our 
associates, customers and those with whom we partner should feel included, respected, supported, and empowered.
We believe that the attraction, retention, and management of qualified talent representing diverse backgrounds, experiences, and 
skill sets, and fostering a diverse, equitable and inclusive work environment is integral to our success in advancing our strategies 
and key business priorities.

In 2022, we continued our robust, inclusion and diversity learning and development opportunities for our associates. We 
also strengthened our ongoing partnerships with organizations that help us have a positive impact on the communities in 
which we do business.  

Finally, with the introduction of the 2025 Always Forward Plan, we have set out a path to build shareholder value in the 
years to come.

OUR ENVIRONMENT

We strive to create a positive impact on our community by advancing sustainability efforts in our global home offices, stores 
network and supply chain through our global social and environmental sustainability programs, some of which have been in place 
for over 20 years. In Fiscal 2019, we became a participant in the United Nations Global Compact (UNGC), the world’s largest 
corporate citizenship and sustainability initiative. As part of our commitment to the UNGC, in Fiscal 2019 we also announced 
sustainability targets which align with the United Nation’s Sustainable Development Goals. In Fiscal 2022, in furtherance of our 
sustainability strategy, we completed our first ESG materiality assessment to help us identify ESG topics most impactful to our 
long-term value creation and most important to our stakeholders. 

OUR SUPPLY CHAIN

Outside of our global store network and global home offices, we are invested in improving our supply chain processes by 
partnering with vendors, suppliers, manufacturers, contractors, subcontractors and their agents (collectively, “Vendors”).  Our 
Vendors are expected to operate in compliance with the laws of their respective countries and all other applicable laws, rules, and 
regulations, and have committed to follow the standards set forth in our Vendor Code of Conduct. Our Vendor Code of Conduct 
details our dedication to employing leading practices in human rights, labor rights, environmental responsibility and workplace 
safety. 

HIGHLIGHTS

• Trained third-party factory workers on anti-human trafficking, gender equality, and health and safety

• Donated over $8M to charitable causes, with the help of our associates, vendor partners and customers

• Volunteered more than 23,000 hours as our global associates remained committed to our communities

• Named one of Fortune’s Best Workplaces in Retail and remained a Great Place to Work-Certified™ organization

• Received a perfect score on the Human Rights Campaign’s 2022 Corporate Equality Index for the sixteenth year in a row, with 

the designation as a one of the Best Places to Work for LGBTQ+ Equality

Abercrombie & Fitch Co.

6

2022 Annual Report

Table of Contents

 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-K 

(Mark One)
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended January 28, 2023 
or

For the transition period from         to

    Commission file number 001-12107 
 Abercrombie & Fitch Co. 

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)

6301 Fitch Path

New Albany

Ohio

(Address of principal executive offices)

31-1469076
(I.R.S. Employer Identification No.)

43054
(Zip Code)

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

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

Title of each class
Class A Common Stock, $0.01 Par Value

Trading Symbol(s)

Name of each exchange on which registered

ANF

New York Stock Exchange

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    x  Yes    ¨  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    ¨  Yes    x  No 

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 
405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 
    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting 
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and 
“emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer

Non-accelerated filer

x
¨

Accelerated filer

Smaller reporting company

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.    ¨

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its 
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting 
firm that prepared or issued its audit report.  x 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included 
in the filing reflect the correction of an error to previously issued financial statements.    ¨

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based 
compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).    ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    ☐  Yes    x    No
Aggregate market value of the registrant’s Class A Common Stock (the only outstanding common equity of the registrant) held by non-affiliates of 
the  registrant  (for  this  purpose,  executive  officers  and  directors  of  the  registrant  are  considered  affiliates)  as  of  July  29,  2022:  $857,460,259. 
Number of shares outstanding of the registrant’s common stock as of March 24, 2023: 49,218,719 shares of Class A Common Stock.

DOCUMENTS INCORPORATED BY REFERENCE:
Portions of the registrant’s definitive proxy statement for the 2023 Annual Meeting of Stockholders, are incorporated by reference into Part III of 
this Annual Report on Form 10-K. The registrant expects to file such definitive proxy statement with the Securities and Exchange Commission 
within 120 days of its fiscal year ended January 28, 2023.

Table of Contents

Table of Contents

Item 1.

Business

Item 1A. Risk Factors

Item 1B. Unresolved Staff Comments

Properties

Legal Proceedings

Mine Safety Disclosures

Item 2.

Item 3.

Item 4.

Item 5.

Item 6.

Item 7.

PART I

PART II

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of 
Equity Securities

[Reserved]

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Item 8.

Financial Statements and Supplementary Data

Consolidated Statements of Operations and Comprehensive (loss) Income 

Consolidated Balance Sheets

Consolidated Statements of Stockholders’ Equity

Consolidated Statements of Cash Flows

Index for Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A. Controls and Procedures

Item 9B. Other Information

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 10. Directors, Executive Officers and Corporate Governance

Item 11.

Executive Compensation

PART III

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder 
Matters

Item 13. Certain Relationships and Related Transactions, and Director Independence

Item 14.

Principal Accountant Fees and Services

Item 15.

Exhibits and Financial Statement Schedules

Item 16.

Form 10-K Summary

PART IV

Index to Exhibits

Signatures

Abercrombie & Fitch Co.

2

2022 Form 10-K

4

12

24

24

24

24

25

26

27

41

42

42

43

44

45

46

47

76

76

76

77

78

79

79

79

79

80

80

81

84

 
Table of Contents

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Annual Report on Form 10-K may constitute forward-looking statements (as such term is defined in the 
Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change based on various 
important  factors,  many  of  which  may  be  beyond  our  control.  Words  such  as  “estimate,”  “project,”  “plan,”  “believe,”  “expect,” 
“anticipate,”  “intend,”  “should,”  “are  confident,”  “will,”  “could”,  “outlook,”  or  the  negative  versions  of  those  words  or  other 
comparable  words  and  similar  expressions  may  identify  forward-looking  statements.  Future  economic  and  industry  trends  that 
could potentially impact revenue and profitability are difficult to predict. Therefore, there can be no assurance that the forward-
looking statements included in this Annual Report on Form 10-K will prove to be accurate. Factors that could cause results to 
differ from those expressed in the forward-looking statements include, but are not limited to, the risks described or referenced in 
“ITEM 1A. RISK FACTORS,” of this Annual Report on Form 10-K and otherwise in our reports and filings with the SEC, as well 
as the following:

•

•

•
•

•
•

•
•

•
•

•
•

•
•
•
•
•

risks related to changes in global economic and financial conditions, including volatility in the financial markets as a 
result of the failure, or rumored failure, of financial institutions, and the resulting impact on consumer confidence and 
consumer spending, as well as other changes in consumer discretionary spending habits;
risks related to recent inflationary pressures with respect to labor and raw materials and global supply chain constraints 

that have, and could continue to, affect freight, transit and other costs;

risks and uncertainty related to the ongoing COVID-19 pandemic and any other adverse public health developments;

risks related to geopolitical conflict, including the on-going hostilities in Ukraine, acts of terrorism, mass casualty events, 

social unrest, civil disturbance or disobedience;

risks related to natural disasters and other unforeseen catastrophic events;

risks  related  to  our  failure  to  engage  our  customers,  anticipate  customer  demand  and  changing  fashion  trends,  and 

manage our inventory;

risks related to our ability to successfully invest in and execute on our customer, digital and omnichannel initiatives;

risks  related  to  the  effects  of  seasonal  fluctuations  on  our  sales  and  our  performance  during  the  back-to-school  and 

holiday selling seasons;

risks related to fluctuations in foreign currency exchange rates; 

risks  related  to  fluctuations  in  our  tax  obligations  and  effective  tax  rate,  including  as  a  result  of  earnings  and  losses 

generated from our international operations;

risks related to our ability to execute on our strategic initiatives, including those outlined in our Always Forward Plan

risks  related  to  international  operations,  including  changes  in  the  economic  or  political  conditions  where  we  sell  or 

source our products or changes in import tariffs or trade restrictions;

risks related to cybersecurity threats and privacy or data security breaches;

risks related to the  potential loss or disruption of our information systems;

risks related to the continued validity of our trademarks and our ability to protect our intellectual property;

risks associated with climate change and other corporate responsibility issues; and

uncertainties  related  to  future  legislation,  regulatory  reform,  policy  changes,  or  interpretive  guidance  on  existing 

legislation.

In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should 
not  be  regarded  as  a  representation  by  us,  or  any  other  person,  that  our  objectives  will  be  achieved.  The  forward-looking 
statements included herein are based on information presently available to our management and speak only as of the date on 
which such statements are made. Except as may be required by applicable law, we assume no obligation to publicly update or 
revise  our  forward-looking  statements,  including  any  financial  targets  and  estimates,  whether  as  a  result  of  new  information, 
future  events,  or  otherwise.  As  used  herein,  “Abercrombie  &  Fitch  Co.,”  “the  Company,”  “we,”  “us,”  “our,”  and  similar  terms 
include Abercrombie & Fitch Co. and its subsidiaries, unless the context indicates otherwise.

Abercrombie & Fitch Co.

3

2022 Form 10-K

 
Table of Contents

PART I

Item 1.  Business

GENERAL

Abercrombie & Fitch Co. (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its 
subsidiaries are referred to as the “Company,” “we,” “us,” and “our”), is a global, digitally-led omnichannel retailer.  The Company 
offers a broad assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily 
through its digital channels and Company-owned stores, as well as through various third-party arrangements.  The Company’s 
two brand-based operating segments are Hollister, which includes the Company’s Hollister, Gilly Hicks and Social Tourist brands, 
and Abercrombie, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands. These five brands share a 
commitment  to  offering  unique  products  of  enduring  quality  and  exceptional  comfort  that  allow  customers  around  the  world  to 
express their own individuality and style. The Company operates primarily in North America, Europe, Middle East and Asia. 

The  Company’s  fiscal  year  ends  on  the  Saturday  closest  to  January  31.  This  typically  results  in  a  fifty-two-week  year,  but 
occasionally gives rise to an additional week, resulting in a fifty-three-week year. Fiscal years are designated in the Consolidated 
Financial Statements and Notes thereto, as well as the remainder of this Annual Report on Form 10-K, by the calendar year in 
which the fiscal year commenced. All references herein to the Company’s fiscal years are as follows:

Fiscal year

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023

Year ended / ending

Number of weeks

January 30, 2021

January 29, 2022

January 28, 2023

February 3, 2024

52

52

52

53

For  additional  information  about  the  Company’s  business,  see “ITEM  7.  MANAGEMENT’S  DISCUSSION  AND  ANALYSIS  OF 
FINANCIAL  CONDITION  AND  RESULTS  OF  OPERATIONS,”  as  well  as  “ITEM  8.  FINANCIAL  STATEMENTS  AND 
SUPPLEMENTARY DATA,” of this Annual Report on Form 10-K. 

Current Economic Environment

The current economic environment remained challenging in Fiscal 2022. The COVID-19 pandemic and its effects on the global 
economy continued to impact the Company’s operations in Fiscal 2022, including through temporary store closures. While trends 
in the severity of new cases of COVID-19 in the U.S. improved throughout Fiscal 2022, caseloads have periodically increased in 
certain global regions, most notably, in the Asia-Pacific Region (“APAC”) in conjunction with the easing of strict lockdowns and 
zero-tolerance policy shutdowns in China. 

In addition, while the direct impacts of the COVID-19 pandemic have shown signs of abatement, the Company has experienced 
various  other  adverse  impacts  in  the  current  economic  environment,  including  supply  chain  disruptions,  inflationary  pressures 
including higher freight and labor costs, labor shortages, and weak store traffic.  

The adverse consequences of the pandemic and of the current economic environment continue to impact the Company and may 
persist for some time.  The Company will continue to assess impacts on its operations and financial condition, and will respond 
as it deems appropriate.

For further information about COVID-19, refer to  “ITEM 1A. RISK FACTORS,” and “ITEM 7. MANAGEMENT’S DISCUSSION 
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS," of this Annual Report on Form 10-K.

Abercrombie & Fitch Co.

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2022 Form 10-K

 
Table of Contents

BRANDS AND SEGMENT INFORMATION

The Company’s brands are as follows:

Brand
Hollister

Gilly Hicks

Social Tourist

Description
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.

At Gilly Hicks, we know that 10 minutes of activity a day can lead to a happier life.  That's why we offer active 
lifestyle products to help Gen Z customers create happiness through movement.  

Social Tourist is the creative vision of Hollister and social media personalities Dixie and Charli D’Amelio. The lifestyle 
brand creates trend-forward apparel that allows brand lovers to experiment with their style, while exploring the 
duality of who they are both on social media and in real life. 

Abercrombie & Fitch

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.

abercrombie kids

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 Company determines its segments after taking into consideration a variety of factors, including its organizational structure 
and  the  basis  that  it  uses  to  allocate  resources  and  assess  performance.  The  Company’s  two  operating  segments  as  of 
January 28, 2023 are brand-based: Hollister, which includes the Company’s Hollister, Gilly Hicks and Social Tourist brands, and 
Abercrombie, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands. These operating segments have 
similar economic characteristics, classes of consumers, products, and production and distribution methods, operate in the same 
regulatory  environments,  and  have  been  aggregated  into  one  reportable  segment.  Additional  information  concerning  the 
Company’s  segment  and  geographic  information  is  contained  in  Note  17,  “SEGMENT  REPORTING”  of  the  Notes  to 
Consolidated  Financial  Statements  included  in  “ITEM  8.  FINANCIAL  STATEMENTS  AND  SUPPLEMENTARY  DATA”  of  this 
Annual Report on Form 10-K.

STRATEGY AND KEY BUSINESS PRIORITIES 

The  Company  remains  committed  to,  and  confident  in,  its  long-term  vision  of  being  a  leading digitally-led  omnichannel  global 
apparel  retailer. The  Company  continues  to  evaluate  opportunities  to  make  progress  toward  initiatives  that  support  this  vision, 
while balancing the near-term challenges and the continued global uncertainty presented by the changing macroeconomic and 
geopolitical environment.

Always Forward Plan

During the second quarter of Fiscal 2022, the Company announced its 2025 Always Forward Plan, which outlines the Company’s 
long-term strategy and goals, including growing shareholder value. The Always Forward Plan is anchored on three strategic 
growth principles, which are to:

•
•
•

Execute focused brand growth plans;
Accelerate an enterprise-wide digital revolution; and
Operate with financial discipline.

The  following  focus  areas  for  Fiscal  2023  serve  as  a  framework  for  the  Company’s  goal  of  achieving  sustainable  long-term 
growth and progressing toward the Always Forward Plan:

•

•

•

Execute brand growth plans

•
•
•

Drive Abercrombie brands through marketing and store investment;
Optimize the Hollister product and brand voice to enable second half growth; and
Support Gilly Hicks growth with an evolved assortment mix

Execute an enterprise-wide digital revolution

•
•
•

Complete the current phase of our modernization efforts around key data platforms;
Continue to progress on our multi-year ERP transformation and cloud migration journey; and 
Improve our digital and app experience across key parts of the customer journey

Operate with financial discipline

• Maintain appropriately lean inventory levels that put Abercrombie and Hollister in a position to chase inventory 

throughout the year; and
Properly balance investments, inflation and efficiency efforts to improve profitability

•

Abercrombie & Fitch Co.

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Table of Contents

OVERVIEW OF OPERATIONS

Omnichannel Initiatives

As  customer  shopping  preferences  continue  to  shift  and  customers  increasingly  shop  across  multiple  channels,  the  Company 
aims  to  create  best-in-class  customer  experiences  and  grow  total  company  profitability  by  delivering  improvements  through  a 
continuous test-and-learn approach. With the impact of the COVID-19 pandemic in Fiscal 2020, the Company experienced an 
acceleration  in  sales  fulfilled  through  digital  channels.  Despite,  this  acceleration  in  the  shift  towards  digital  channels,  stores 
continue  to  be  an  important  part  of  the  customers’  omnichannel  experience  and  the  Company  believes  that  the  customers’ 
experience is improved by its offering of omnichannel capabilities, which include: 

•

•
•

•
•
•

•

Purchase-Online-Pickup-in-Store, allowing customers to purchase merchandise through one of the Company’s websites 
or mobile apps and pick-up the merchandise in store, which often drives incremental in-store sales;
Curbside pickup at a majority of U.S. locations;
Same-day delivery service across its entire U.S. store fleet. Each brand’s website features a “Get It Fast” filter to easily 
find products that are available, or shoppers can choose the same-day delivery option for available items at checkout; 
Order-in-Store, allowing customers to shop the brands’ in-store and online offerings while in-store;
Reserve-in-Store, allowing customers to reserve merchandise online and try it on in-store before purchasing;
Ship-from-Store,  which  allows  the  Company  to  ship  in-store  merchandise  to  customers  and  increases  inventory 
productivity; and 
Cross-channel  returns,  allowing  customers  to  return  merchandise  purchased  through  one  channel  to  a  different 
channel.

The  Company  also  believes  that  its  loyalty  programs,  Hollister  House  Rewards®  and  Abercrombie’s  myAbercrombie®,  are 
important enablers of its omnichannel strategy as the Company aims to seamlessly interact and connect with customers across 
all  touchpoints  through  members-only  offers,  items  and  experiences.  Under  these  programs,  customers  accumulate  points 
primarily  based  on  purchase  activity  and  earn  rewards  as  points  are  converted  at  certain  thresholds.  These  rewards  can  be 
redeemed for merchandise discounts either in-store or online. The loyalty programs continue to provide timely customer insights, 
and the Company believes these programs contribute to higher average transaction value.

Digital Operations

In  order  to  create  a  more  seamless  shopping  experience  for  its  customers,  the  Company  continues  to  invest  in  its  digital 
infrastructure.  The  Company  has  the  capability  to  ship  merchandise  to  customers  in  more  than  110  countries  and  process 
transactions in 26 currencies and through 25 forms of payment globally. The Company operates desktop and mobile websites for 
its brands globally, which are available in various local languages, and four mobile apps. In the third quarter of Fiscal 2022 the 
Company launched Share2PayTM, a new payment feature in the Company’s mobile apps that allows customers to easily share 
their digital shopping bags with a purchaser to complete the purchase. Initially available exclusively in the Hollister mobile app, 
as  of  the  first  quarter  of  Fiscal  2023,  Share2PayTM  is  available  across  each  of  the  Company’s  mobile  apps.  The  Company 
continues  to  develop  its  mobile  capabilities  as  mobile  engagement  continues  to  grow,  with  over  83%  of  the  Company’s  digital 
traffic  generated  from  mobile  devices  in  Fiscal  2022.  In  addition,  in  its  efforts  to  expand  its  international  brand  reach,  the 
Company also partners with certain third-party e-commerce platforms.

Store Operations

The  Company  continues  to  thoughtfully  open  new  stores  and  invest  in  smaller  omni-enabled  store  experiences  that  align  with 
local customer shopping preferences. New store formats are designed to provide the opportunity for higher productivity through a 
smaller footprint. During Fiscal 2022, the Company opened 59 new store locations, remodeled one store location and right-sized 
an additional eight store locations. These stores are designed to be open and inviting, and include accommodating features such 
as  innovative  fitting  rooms  and  omnichannel  capabilities. Also  included  in  our  new  store  openings  for  Fiscal  2022  are  14  Gilly 
Hicks  stand-alone  locations.  These  stores  are  tailored  to  reflect  the  personality  of  each  brand,  with  unique  furniture,  fixtures, 
music and scent adding to a rich brand experience. The Company’s stores continue to play an essential role in creating brand 
awareness  and  serving  as  physical  gateways  to  the  brands.  Stores  also  serve  as  local  hubs  for  online  engagement  as  the 
Company continues to grow its omnichannel capabilities to create seamless shopping experiences. 

The  Company  continues  to  evaluate  and  manage  its  store  fleet  through  its  ongoing global  store  network  optimization  initiative 
and  has  taken  actions  to  optimize  store  productivity  by  remodeling,  right-sizing  or  relocating  stores  to  smaller  square  footage 
locations,  and  closing  legacy  stores. As  part  of  this  initiative,  the  Company  closed  26  stores  during  Fiscal  2022.  The  actions 
taken in Fiscal 2022 continued to transform the Company's operating model and reposition the Company for the future as the 
Company continues to focus on aligning store square footage with digital penetration.

Abercrombie & Fitch Co.

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2022 Form 10-K

Table of Contents

As of  January 28, 2023, all of the retail stores operated by  the Company are located in leased facilities, primarily  in  shopping 
centers. These leases generally have initial terms of between five and ten years. Certain leases also include early termination 
options, which can be exercised under specific conditions. The leases expire at various dates between Fiscal 2023 and Fiscal 
2033.

As of January 28, 2023, the Company operated 762 retail stores as detailed in the table below:

Europe

Asia

Canada

Middle East

International

United States

Total

Hollister (1)

Abercrombie (2)

Total (3)

107 

28 

9 

5 

149 

380 

529 

20 

20 

4 

9 

53 

180 

233 

127 

48 

13 

14 

202 

560 

762 

(1)

(2)

(3)

Includes  the  Hollister  and  Gilly  Hicks  brands.  Locations  with  Gilly  Hicks  carveouts  within  Hollister  stores  are  represented  as  a  single  store  count. 
Excludes 12 international franchise stores and 16 U.S. Company-operated temporary stores as of January 28, 2023.
Includes  Abercrombie  &  Fitch  and  abercrombie  kids  brands.  Locations  with  abercrombie  kids  carveouts  within  Abercrombie  &  Fitch  stores  are 
represented as a single store count. Excludes 23 international franchise stores and three U.S. Company-operated temporary stores as of January 28, 
2023.
This store count excludes one international third-party operated multi-brand outlet store as of January 28, 2023.

For store count and gross square footage by brand and geographic region as of January 28, 2023 and January 29, 2022, refer to 
“ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.”

Third-Party Operations

The  Company  seeks  to  expand  its  international  brand  reach,  create  brand  awareness  and  develop  local  presence  through 
various  wholesale,  franchise,  and  licensing  arrangements.  As  of  January  28,  2023,  the  Company  had  ten  wholesale 
partnerships,  primarily  internationally. As  of  January  28,  2023,  the  Company’s  franchisees  operated  35  international  franchise 
stores across the Company’s brands located in Mexico, Qatar and Saudi Arabia.

SOURCING OF MERCHANDISE INVENTORY

The  Company  works  with  its  network  of  third-party  vendors  to  supply  compelling,  high-quality  product  assortments  to  its 
customers.  These  vendors  are  expected  to  operate  in  compliance  with  the  laws  of  their  respective  countries  and  all  other 
applicable laws, rules, and regulations and have committed to follow the standards set forth in the Company’s Vendor Code of 
Conduct, regarding human rights, labor rights, environmental responsibility and workplace safety.

The Company sourced merchandise through approximately 119 vendors located in 16 countries, including the U.S., during Fiscal 
2022. The  Company’s  largest  vendor  accounted  for  approximately  12%  of  merchandise  sourced  in  Fiscal 2022,  based  on  the 
cost of sourced merchandise. The Company believes its product sourcing is appropriately distributed among vendors. 

Refer  to  Note  5,  “INVENTORIES,”  of  the  Notes  to  Consolidated  Financial  Statements  included  in  “ITEM  8.  FINANCIAL 
STATEMENTS AND SUPPLEMENTARY DATA” of this Annual Report on Form 10-K for a summary of inventory sourced based 
on vendor location and dollar cost of merchandise receipts during Fiscal 2022.

DISTRIBUTION OF MERCHANDISE INVENTORY

The Company’s distribution network is built to deliver inventory to Company-operated and international franchise stores and fulfill 
digital  and  wholesale  orders  with  speed  and  efficiency.  Generally,  merchandise  is  shipped  directly  from  vendors  to  the 
Company’s distribution centers, where it is received and inspected before being shipped to the Company’s stores or its digital or 
wholesale customers.

Abercrombie & Fitch Co.

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2022 Form 10-K

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents

The  Company  relies  on  both  Company-owned  and  third-party  distribution  centers  to  manage  the  receipt,  storage,  sorting, 
packing and distribution of its merchandise. Additional information pertaining to certain of the Company’s distribution centers as 
of January 28, 2023 follows:

Location

New Albany, Ohio (Primarily serves store and digital operations)

New Albany, Ohio (Serves only digital operations)

Bergen op Zoom, Netherlands

Shanghai, China

Goodyear, Arizona (Serves only digital operations)

Company-owned or third-party
Company-owned

Company-owned

Third-party

Third-party

Third-party

The Company primarily used seven contract carriers to ship merchandise and related materials to its North American customers, 
and several contract carriers for its international customers during Fiscal 2022.

COMPETITION

The Company operates in a rapidly evolving and highly competitive retail business environment. Competitors include: individual 
and chain specialty apparel retailers; local, regional, national and international department stores; discount stores; and digitally-
native  brands  and  online-exclusive  businesses. Additionally,  the  Company  competes  for  consumers’  discretionary  spend  with 
businesses in other product and experiential categories such as technology, restaurants, travel and media content. 

The  Company  competes  primarily  on  the  basis  of  differentiating  its  brands  from  those  of  its  competition  through  product, 
providing  higher  quality  and  increased  newness;  brand  voice,  amplifying  and  consolidating  brand  messaging;  and  experience, 
investing in immersive, participatory omnichannel shopping environments.

Operating in a highly competitive industry environment can cause the Company to engage in greater than expected promotional 
activity, which would result in pressure on average unit retail and gross profit. Refer to “ITEM 1A. RISK FACTORS - Our failure to 
operate in a highly competitive and constantly evolving industry could have a material adverse impact on our business” of this 
Annual Report on Form 10-K for further discussion of the potential impacts competition may have on the Company. 

SEASONAL BUSINESS

Historically,  the  Company’s  operations  have  been  seasonal  in  nature  and  consist  of  two  principal  selling  seasons:  the  spring 
season,  which  includes  the  first  and  second  fiscal  quarters  (“Spring”)  and  the  fall  season,  which  includes  the  third  and  fourth 
fiscal quarters (“Fall”). The Company experiences its greatest sales activity during Fall, due to back-to-school and holiday sales 
periods. Refer to “ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS” of this Annual Report on Form 10-K for further discussion.

TRADEMARKS

The trademarks Abercrombie & Fitch®, abercrombie®, Hollister®, Gilly Hicks®, Social Tourist® and the “Moose” and “Seagull” logos 
are  registered  with  the  U.S.  Patent  and  Trademark  Office  and  registered,  or  the  Company  has  applications  for  registration 
pending, with the registries of countries in key markets within the Company’s sales and distribution channels. In addition, these 
trademarks  are  either  registered,  or  the  Company  has  applications  for  registration  pending,  with  the  registries  of  many  of  the 
foreign countries in which the manufacturers of the Company’s products are located. The Company has also registered, or has 
applied to register, certain other trademarks in the U.S. and around the world. The Company believes its products are identified 
by its trademarks and, therefore, its trademarks are of significant value. Each registered trademark has a duration of 10 to 20 
years, depending on the date it was registered, and the country in which it is registered, and is subject to an indefinite number of 
renewals  for  a  like  period  upon  continued  use  and  appropriate  application.  The  Company  intends  to  continue  using  its  core 
trademarks and to timely renew each of its registered trademarks that remain in use.

INFORMATION TECHNOLOGY SYSTEMS

The  Company’s  owned  and  third-party-operated  management  information  technology  systems  consist  of  a  full  range  of  retail, 
merchandising,  human  resource  and  financial  systems.  These  systems  include  applications  related  to  point-of-sale,  digital 
operations, inventory management, supply chain, planning, sourcing, merchandising, payroll, scheduling and financial reporting. 
The  Company  continues  to  invest  in  technology  to  upgrade  its  core  systems  to  enhance  reporting  and  analytics,  create 
efficiencies and to support its digital operations, omnichannel capabilities, customer relationship management tools and loyalty 
programs.

Abercrombie & Fitch Co.

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Table of Contents

WORKING CAPITAL

Refer  to  “ITEM  7.  MANAGEMENT’S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND  RESULTS  OF 
OPERATIONS” of this Annual Report on Form 10-K for a discussion of the Company’s cash requirements and sources of cash 
available for working capital needs and investment opportunities.

HUMAN CAPITAL MANAGEMENT

The  Company  strives  to  create  a  culture  that  not  only  drives  strategic  and  key  business  priorities  forward,  but  is  welcoming, 
inclusive, diverse and encourages associates to create a positive impact in their global communities. The Company believes that 
the  strength  of  its  unique  culture  is  a  competitive  advantage,  and  intends  to  continue  building  upon  that  culture  to  improve 
performance across its business. 

Therefore,  the  Company  believes  that  the  attraction,  retention,  and  management  of  qualified  talent  representing  diverse 
backgrounds, experiences, and skill sets - and fostering a diverse, equitable and inclusive work environment - are integral to its 
success.   Highlights of our key human capital management programs and efforts include the following:  

•

•

•

•

•

•

•

Living a corporate purpose of “Being here for you on the journey to being and becoming who you are.”  The 
Company’s corporate purpose was developed after conducting listening sessions with its associates and its customers, 
and by weaving in key themes from each of the brand purposes. 
Offering competitive compensation and benefits, to help the Company attract, motivate, and retain the key talent 
necessary to achieve outstanding business and financial results. The Company’s compensation offerings includes cash-
based and equity-based incentive awards in order to align the interests of associates and stockholders, and in the 
second half of Fiscal 2021, the Company expanded the pool of associates eligible to receive cash-based incentive 
awards by extending eligibility to additional associates across various job levels. In addition, the Company continues to 
evolve its approach to work flexibility, including supporting remote work arrangements for key roles and “work from 
anywhere days and weeks” for our corporate home office associates where feasible. We also support our associates 
and their families beyond our competitive compensation and comprehensive benefits offerings, providing eligible 
associates with paid parental leave in the United States and internationally based on local law, and in 2022 we started 
offering adoption and fertility support benefits for eligible associates globally.
Improving  associate  engagement  through  open  communication  channels  with  a  focus  on  development.  The 
Company  regularly  holds  all-company  meetings  to  communicate  with  its  associates.  The  Company  also  collects 
feedback through various engagement surveys to better understand associate experience and drive improvements, with 
the most recent organization-wide survey conducted in August 2022. 
Fostering  associate  development  by  providing  a  wide  variety  of  growth  and  development  opportunities  throughout 
associates’  careers.   This  includes  stretch  assignments,  internal  career  pathing,  self-awareness  exercises,  and  active 
coaching. The Company also uses leadership standards to help associates identify the core behaviors essential for their 
career growth, as well as personal growth, on their journey at the Company. In Fiscal 2022, the Company launched the 
internal job board, which empowers associates to apply for open roles and/or to seek advancement opportunities within 
the Company.
Embracing  inclusion  and  diversity  in  all  forms,  including  gender,  race,  ethnicity,  disability,  nationality,  religion,  age, 
veteran  status,  LGBTQIA+  status,  and  other  factors.  The  Company  continuously  reviews  metrics  including 
representation, retention, pay, and promotion among associates from diverse backgrounds, including those in leadership 
positions. The Company also encourages associates to enhance their understanding of inclusion and diversity through 
participating  in  the  Company’s  various  associate  resource  groups,  which  allow  associates  from  different  business 
functions around the world to have discussions, attend activities, and receive materials focused on allyship, community, 
celebration,  and  education.  Additionally,  the  Company  invests  in  inclusion  and  diversity  learning  and  development 
opportunities  for  associates  on  topics  including  bias,  allyship,  and  advocacy,  conducting  roundtable  discussions, 
trainings and workshops. 
Encouraging  community  involvement  of  its  associates  by  promoting  various  charitable,  philanthropic,  and  social 
awareness  programs,  which  the  Company  believes  fosters  a  collaborative  and  rewarding  work  environment.  The 
Company provides support to global organizations in the form of cash donations, volunteerism and in-kind support.  In 
partnership with its vendor partners, customers and associates, the Company is proud to support community partners 
serving youth, teens, and young adults with a focus on mental health and wellness, empowerment, and inclusion and 
diversity. The Company offers its associates a paid volunteer day each year for eligible volunteer work. 
Focusing on the health and safety of its associates by investing in various wellness programs that are designed to 
enhance the physical, financial, and mental well-being of its associates globally. The Company provides benefits-eligible 
associates and their families with access to free and confidential counseling through our Employee Assistance Program, 
as  well  as  free  access  to  Headspace,  a  mediation  and  mindfulness  app.  The  Company  also  provides  regular 
programming on financial planning and mental health. 

Abercrombie & Fitch Co.

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Associates

The Company employed approximately 29,600 associates globally as of January 28, 2023, of whom approximately 22,400 were 
part-time  associates.  As  of  January  28,  2023,  the  Company  employed  approximately  22,400  associates  in  the  U.S.,  and 
employed approximately 7,200 associates outside of the U.S. The Company employs temporary, seasonal associates at times, 
particularly during Fall, when it experiences its greatest sales activity due to back-to-school and holiday sales periods.  

The proportion of associates represented by works councils and unions is not significant and is generally limited to associates in 
the Company’s European stores. 

Board Oversight

A&F’s Board of  Directors (the “Board of Directors”)  and  its committees oversee human capital issues. The Compensation  and 
Human  Capital  Committee  of  the  Board  of  Directors  oversees  the  Company’s  overall  compensation  structure,  policies  and 
programs, as well as administration of our cash-based and equity-based performance award programs. Members of the Board of 
Directors also review succession plans for the Company’s executive officers and discuss with senior leadership the Company’s 
human capital management strategies, programs, policies and practices, including those relating to organizational structure and 
key reporting relationships, along with development of strategies and practices relating to recruitment, retention and development 
of  the  Company’s  associates  as  needed. Additionally,  the  Environmental,  Social  and  Governance  Committee  of  the  Board  of 
Directors oversees the Company’s strategies, policies and practices regarding social issues and trends, including inclusion and 
diversity initiatives, health and safety, and philanthropy and community investment matters. 

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

The Company’s executive officers serve at the pleasure of the Board of Directors. Set forth below is certain information regarding 
the executive officers of the Company as of March 24, 2023:

Fran Horowitz, Chief Executive Officer and Director 

Age: 59

Executive Roles:

• Chief Executive Officer, Principal Executive Officer and Director (February 2017 to present) 
• Former  President  and  Chief  Merchandising  Officer  for  all  brands  of  the  Company  (December  2015  to  February 
2017),  former  member  of  the  Office  of  the  Chairman  of  the  Company  (December  2014  to  February  2017)  and 
former Brand President of Hollister (October 2014 to December 2015)

• Former President of Ann Taylor Loft, a division of Ascena Retail Group, Inc., the parent company of specialty retail 

fashion brands in North America (October 2013 to October 2014)

• Formerly held various roles at Express, Inc., a specialty apparel and accessories retailer of women’s and men’s 
merchandise (February 2005 to November 2012), including Executive Vice President of Women’s Merchandising 
and Design (May 2010 to November 2012) 

• Formerly held various merchandising roles at Bloomingdale’s and various positions at Bergdorf Goodman, Bonwit 

Teller and Saks Fifth Avenue

Other Leadership Roles:

• Member of the Board of Directors of Conagra Brands, Inc. (NYSE: CAG), one of North America’s leading branded 

food companies (July 2021 to present)

• Member  of  the  Board  of  Directors  of  SeriousFun  Children’s  Network,  Inc.,  a  non-profit  corporation  that  provides 
specially-adapted  camp  experiences  for  children  with  serious  illnesses  and  their  families,  free  of  charge  (since 
March 2017)

• Member  of  the  Board  of  Directors  of  Chief  Executives  for  Corporate  Purpose  (CECP),  a  CEO-led  coalition  that 

helps companies transform their social strategy by providing customized resources (October 2019 to present)

Scott D. Lipesky, Executive Vice President and Chief Financial Officer

Age: 48

Executive Roles:

• Executive  Vice  President  and  Chief  Financial  Officer  of  the  Company,  as  well  as  Principal  Financial  Officer  and 

Principal Accounting Officer of the Company (April 2021 to present)

• Senior  Vice  President  and  Chief  Financial  Officer  of  the  Company,  as  well  as  Principal  Financial  Officer  and 

Principal Accounting Officer of the Company (October 2017 to April 2021)

• Prior to rejoining the Company, formerly served as Chief Financial Officer of American Signature, Inc., a privately-

held home furnishings company (October 2016 to October 2017)

• Formerly held various leadership roles and finance positions with the Company (November 2007 to October 2016) 
including: Chief Financial Officer, Hollister Brand (September 2014 to October 2016); Vice President, Merchandise 
Finance  (March  2013  to  September  2014);  Vice  President,  Financial  Planning  and Analysis  (November  2012  to 
March 2013); and Senior Director, Financial Planning and Analysis (November 2010 to November 2012) 

• Former Corporate Finance Director with FTI Consulting Inc., a global financial services advisory firm
• Former Director of Corporate Business Development with The Goodyear Tire & Rubber Company
• Formerly held position as a Certified Public Accountant with PricewaterhouseCoopers LLP

Abercrombie & Fitch Co.

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Kristin Scott, President, Global Brands 

Age: 55

Executive Roles:

• President, Global Brands of the Company (November 2018 to present) 
• Former Brand President of Hollister (August 2016 to November 2018)
• Formerly held senior positions at Victoria’s Secret, a specialty retailer of women’s intimate and other apparel which 
sells  products  at  Victoria’s  Secret  stores  and  online  (December  2007  to  April  2016),  including:  Executive  Vice 
President,  General  Merchandise  Manager  (March  2013  to  April  2016);  Senior  Vice  President,  General 
Merchandise Manager (March 2009 to March 2013); and Senior Vice President, General Merchandise Manager - 
Stores (December 2007 to March 2009)

• Formerly held various planning and merchandising positions at Gap Inc., Target, and Marshall Fields

Samir Desai, Executive Vice President, Chief Digital Technology Officer

Age: 42

Executive Roles:

• Executive Vice President and Chief Digital and Technology Officer of the Company (July 2021 to present) 

• Formerly held various leadership and technology positions at Equinox Group, a luxury fitness company that 

operates several lifestyle brands (October 2005 to June 2021), including:  Chief Technology Officer (April 2016 to 
June 2021), Vice President, Technology (April 2013 to April 2016), Senior Director Technology (April 2011 to April 
2013), Director Technology (October 2005 to April 2011)

• Formerly held technology roles at Intertex Apparel Group, a manufacturer and importer of branded and private 

label apparel (July 2002 to October 2005), including Director, Information Technology

Gregory J. Henchel, Executive Vice President, General Counsel and Corporate Secretary

Age: 55

Executive Roles:

• Executive Vice President, General Counsel and Corporate Secretary of the Company (October 2021 to present)
• Senior Vice President, General Counsel and Corporate Secretary of the Company (October 2018 to October 2021) 
• Former Executive Vice President, Chief Legal Officer and Secretary of HSN, Inc., a $3+ billion multi-channel 

retailer (February 2010 to December 2017)

• Former Senior Vice President and General Counsel of Tween Brands, Inc., a specialty retailer (October 2005 to 

February 2010) and Secretary (August 2008 to February 2010)

• Formerly held various roles at Cardinal Health, Inc., a global medical device, pharmaceutical and healthcare 

technology company, including Assistant General Counsel  (2001 to October 2005), and Senior Litigation Counsel 
(May 1998 to 2001)

• Formerly held position as a litigation associate with the law firm of Jones Day (September 1993 to May 1998)

GOVERNMENT REGULATIONS

As  a  global  organization,  the  Company  is  subject  to  the  laws  and  regulations  of  the  U.S.  and  multiple  foreign  jurisdictions  in 
which  it  operates.  These  laws  and  regulations  include,  but  are  not  limited  to:  trade,  transportation  and  logistic  laws,  including 
tariffs and import and export regulations; tax laws and regulations; product and consumer safety laws; anti-bribery and corruption 
laws; employment and labor laws; antitrust or competition laws; data privacy laws; and environmental regulations.

Inflation Reduction Act of 2022

On August  16,  2022,  the  Inflation  Reduction Act  was  signed  into  law,  with  tax  provisions  primarily  focused  on  implementing  a 
15%  corporate  minimum  tax  on  global  adjusted  financial  statement  income,  expected  to  become  applicable  to  the  Company 
beginning  in  Fiscal  2023,    and  a  1%  excise  tax  on  share  repurchases  in  tax  years  beginning  after  December  31,  2022.  The 
Company does not currently expect that the Inflation Reduction Act will have a material impact on its income taxes.

Laws and regulations have had, and may continue to have, a material impact on the Company’s operations as described further 
within  “ITEM  7.  MANAGEMENT’S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND  RESULTS  OF 
OPERATIONS" of this Annual Report on Form 10-K. 

Refer to “ITEM 1A. RISK FACTORS,” of this Annual Report on Form 10-K for a discussion of the potential impacts regulatory 
matters may have on the Company in the future, including those related to environmental matters. Compliance with government 
laws and regulations has not had a material effect on the Company’s capital expenditures, earnings or competitive position.

Abercrombie & Fitch Co.

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OTHER INFORMATION

A&F makes available free of charge on its website, corporate.abercrombie.com, under the “Investors – Financials/SEC Filings” 
section, its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those 
reports filed or furnished pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended (the 
“Exchange  Act”),  as  soon  as  reasonably  practicable  after  A&F  electronically  files  such  material  with,  or  furnishes  it  to,  the 
Securities and Exchange Commission (the “SEC”). A&F also makes available free of charge in the same section of its website its 
definitive  proxy  materials  filed  pursuant  to  Section  14  of  the  Exchange  Act,  as  soon  as  reasonably  practicable  after  A&F 
electronically files such proxy materials with the SEC. The SEC maintains a website that contains electronic filings by A&F and 
other issuers at www.sec.gov.

A&F  has  included  certain  of  its  website  addresses  throughout  this  filing  as  textual  references  only.  Information  on  the  A&F 
websites shall not be deemed incorporated by reference into, and do not form any part of, this Annual report on Form 10-K or 
any other report or document that A&F files with or furnishes to the SEC.

Item 1A. Risk Factors

Investing  in  our  securities  involves  risk.  The  following  risk  factors  should  be  read  carefully  in  connection  with  evaluating  our 
business and the forward-looking statements contained in this Annual Report on Form 10-K. Any of these risk factors could lead 
to  material  adverse  effects  on  our  business,  operating  results  and  financial  condition.  Additional  risks  and  uncertainties  not 
currently known to us or that we currently do not view as material may also become materially adverse our business in future 
periods or if circumstances change.

MACROECONOMIC AND INDUSTRY RISKS.

Changes in global economic and financial conditions could have a material adverse impact on our business.

Uncertainty as to the state of the global economy and global financial condition could have an adverse effect on our operating 
results  and  business.    Our  business  is  subject  to  factors  that  affect  worldwide  economic  conditions,  including  rising  inflation 
(which  has  occurred  and  is  occurring),  unemployment  levels,  consumer  credit  availability,  consumer  debt  levels,  reductions  in 
consumer net worth based on declines in the financial, residential real estate and mortgage markets, recent bank failures,  sales 
and  personal  income  tax  rates,  fuel  and  energy  prices,  global  food  supplies,  interest  rates,  consumer  confidence  in  future 
economic and political conditions, consumer perceptions of personal well-being and security, the value of the U.S. dollar versus 
foreign currencies, geopolitical conflicts, and other macroeconomic factors. Actual events involving limited liquidity, defaults, non-
performance or other adverse developments that affect financial institutions or other companies in the financial services industry 
or the financial services industry generally, or concerns or rumors about any events of these kinds, have in the past and may in 
the  future  lead  to  market-wide  liquidity  problems  and  volatility,  such  as  the  events  in  March  2023  wherein  certain  financial 
institutions were placed into receivership. Changes in global economic and financial conditions could impact our ability to fund 
growth and our ability to access external financing in the credit and capital markets.

The  economic  conditions  and  factors  described  above  could  adversely  impact  our  results  of  operations,  liquidity  and  capital 
resources, and may exacerbate other risks within this section of “ITEM 1A. RISK FACTORS”. 

Consumer  confidence  and  spending  could  be  materially  impacted  by  economic  conditions,  which  could  adversely  impact  our 
results of operations.

Our  business  depends  on  consumer  demand  for  our  merchandise.  Consumer  confidence  and  discretionary  spending  habits, 
including purchases of our merchandise, can be adversely impacted by recessionary periods, inflation and other macroeconomic 
conditions  adversely  impacting  levels  of  disposable  income.  We  may  not  be  able  to  accurately  anticipate  or  predict  consumer 
demand and behavior, such as taste and purchasing trends, in response to adverse economic conditions, which could result in  
lower sales, excess inventories and increased mark-downs, all of which could negatively impact our ability to achieve or maintain 
profitability. In the event that the U.S. and global economy worsens, or if there is a decline in consumer spending levels or other 
unfavorable  conditions,  we  could  experience  lower  than  expected  revenues,  which  could  force  us  to  delay  or  slow  the 
implementation of our growth strategies and adversely impact our results of operations.

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  success  largely  depends  on  our  ability  to  anticipate  and  gauge  the  fashion  preferences  of  our  customers  and  provide 
merchandise  that  satisfies  constantly  shifting  demands  in  a  timely  manner.  Because  we  may  enter  into  agreements  for  the 
manufacture  and  purchase  of  merchandise  well  in  advance  of  the  applicable  selling  season,  we  are  vulnerable  to  changes  in 
consumer preferences and demand, pricing shifts, and the sub-optimal selection and timing of merchandise purchases. 

Abercrombie & Fitch Co.

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Moreover,  there  can  be  no  assurance  that  we  will  continue  to  anticipate  consumer  demands  and  accurately  plan  inventory 
successfully in the future. Changing consumer preferences and fashion trends, and our ability to anticipate, identify and respond 
to them, could adversely impact our sales. Inventory levels for certain merchandise styles no longer considered to be “on trend” 
may  increase,  leading  to  higher  markdowns  to  sell  through  excess  inventory  and,  therefore,  lower  than  planned  margins. 
Conversely, if we underestimate consumer demand for our merchandise, or if our manufacturers fail to supply quality products in 
a timely manner, we may experience inventory shortages, which may negatively impact customer relationships, diminish brand 
loyalty and result in lost sales. 

We could also be at a competitive disadvantage if we are unable to leverage data analytics to retrieve timely, customer insights 
to appropriately respond to customer demands and improve customer engagement. Any of these events could significantly harm 
our operating results and financial condition.

We  are  also  vulnerable  to  factors  affecting  inventory  flow  that  are  outside  our  control,  such  as  natural  disasters  or  other 
unforeseen events that may significantly impact anticipated customer demand. If we are not able to adjust appropriately to such 
factors,  our  inventory  management  may  be  negatively  affected,  which  could  adversely  impact  our  performance  and  our 
reputation.

Our failure to operate effectively in a highly competitive and constantly evolving industry could have a material adverse impact on 
our business.

The  sale  of  apparel,  personal  care  products  and  accessories  for  men,  women  and  kids  is  a  highly  competitive  business  with 
numerous  participants,  including  individual  and  chain  specialty  apparel  retailers,  local,  regional,  national  and  international 
department stores, discount stores and online-exclusive businesses. Proliferation of the digital channel within the last few years 
has  encouraged  the  entry  of  many  new  competitors  and  an  increase  in  competition  from  established  companies.  These 
increases in competition could reduce our ability to retain and grow sales, resulting in an adverse impact to our operating results 
and business.

We face a variety of challenges in the highly competitive and constantly evolving retail industry, including:

Anticipating and quickly responding to changing consumer shopping preferences better than our competitors;

•
• Maintaining favorable brand recognition;
•

•

•

•

•

Effectively  marketing  our  products  to  consumers  across  diverse  demographic  markets,  including  through  social  media 
platforms  which  have  become  increasingly  important  in  order  to  stay  connected  to  our  customers,  as  our  digital  sales 
penetration has increased.
Retaining  customers,  including  our  loyalty  club  members,  and  the  resulting  increased  marketing  costs  to  acquire  new 
customers;
Developing innovative, high-quality merchandise in styles that appeal to consumers and in ways that favorably distinguish 
us from our competitors; 
Countering  the  aggressive  pricing  and  promotional  activities  of  many  of  our  competitors  without  diminishing  the 
aspirational nature of our brands and brand equity; and
Identifying and assessing disruptive innovation, by existing or new competitors, that could alter the competitive landscape 
by: improving the customer experience and heightening customer expectations; transforming supply chain and corporate 
operations  through  digital  technologies  and  artificial  intelligence;  and  enhancing  management  decision-making  through 
use of data analytics to develop new, consumer insights. 

In  addition,  in  order  to  compete  in  this  highly  competitive  and  constantly  evolving  industry,  at  times,  we  may  launch  and/or 
acquire  new  brands  to  expand  our  portfolio.  This  could  result  in  significant  financial  and  operational  investments  that  do  not 
provide  the  anticipated  benefits  or  desired  rates  of  return  and  there  can  be  no  guarantee  that  pursuing  these  investments  will 
result in improved operating results.

In light of the competitive challenges we face, we may not be able to compete successfully in the future. 

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

In the past, the impact of war, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience and the 
associated  heightened  security  measures  taken  in  response  to  these  events  have  disrupted  commerce.  Further  events  of  this 
nature,  domestic  or  abroad,  including  international  and  domestic  unrest  and  the  ongoing  conflict  in  Ukraine,  may  disrupt 
commerce  and  undermine  consumer  confidence  and  consumer  spending  by  causing  a  decline  in  traffic,  store  closures  and  a 
decrease in digital demand adversely affecting our operating results.

Furthermore, the existence or threat of any other unforeseen interruption of commerce, could negatively impact our business by 
interfering with the availability of raw materials or our ability to obtain merchandise from foreign manufacturers. With a substantial 
portion of our merchandise being imported from foreign countries, failure to obtain merchandise from our foreign manufacturers 
or  substitute  other  manufacturers,  at  similar  costs  and  in  a  timely  manner,  could  adversely  affect  our  operating  results  and 
financial condition.

Abercrombie & Fitch Co.

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Fluctuations in foreign currency exchange rates and our ability to mitigate the effects of such volatility and our ability to mitigate 
the effects of such volatility could have a material adverse impact on our business.

Due  to  our  international  operations,  we  are  exposed  to  foreign  currency  exchange  rate  risk  with  respect  to  our  sales,  profits, 
assets  and  liabilities  denominated  in  currencies  other  than  the  U.S.  dollar.  In  addition,  certain  of  our  subsidiaries  transact  in 
currencies other than their functional currency, including intercompany transactions, which results in foreign currency transaction 
gains or losses. Furthermore, we purchase substantially all of our inventory in U.S. dollars. As a result, our sales, gross profit and 
gross profit rate from international operations will be negatively impacted during periods of a strengthened U.S. dollar relative to 
the functional currencies of our foreign subsidiaries. Additionally, changes in the effectiveness of our hedging instruments may 
negatively impact our ability to mitigate the risks associated with fluctuations in foreign currency exchange rates. For example, 
changes in inventory purchase assumptions have resulted in changes in the effectiveness to certain of our hedging instruments, 
and we could see similar impacts in future periods.

Fluctuations  in  foreign  currency  exchange  rates  could  adversely  impact  consumer  spending,  delay  or  prevent  successful 
penetration into new markets or adversely affect the profitability of our international operations. Certain events, such as the on-
going  conflict  in  Ukraine,  the  ongoing  impact  of  the  COVID-19  pandemic,  and  uncertainty  with  respect  to  trade  policies,  tariffs 
and government regulations and actions affecting trade between the U.S. and other countries, have increased global economic 
and political uncertainty in recent years and could result in volatility of foreign currency exchange rates as these events develop. 

Pandemics,  epidemics,  or  other  public  health  crises  such  as  the  COVID-19  pandemic  may  continue  to  materially  adversely 
impact and cause disruption to our business.

The COVID-19 pandemic has had a material adverse effect on our business, including our financial performance and condition, 
operating results and cash flows, and may continue to materially adversely impact and cause disruption to our business in the 
future.  Adverse  impacts  of  the  COVID-19  pandemic  experienced  by  the  Company  to  date  include  supply  chain  disruptions, 
inflationary pressures including higher freight and labor costs, labor shortages, weak store traffic, temporary store closures and 
reclosures of factories in certain regions. Despite the availability of COVID-19 vaccines, the pandemic continues to evolve, with 
resurgences and outbreaks occurring in various parts of the world, including those resulting from variants of the virus.

A  pandemic  or  other  public  health  crisis,  including  the  emergence  of  new  COVID-19  variants,  poses  the  risk  that  we  or  our 
employees, customers, vendors and manufacturers may be prevented from conducting business activities for an indefinite period 
of time, including due to the spread of the disease or shutdowns requested or mandated by governmental authorities. The impact 
of  regulations  imposed  in  the  future  in  response  to  the  COVID-19  pandemic  or  other  public  health  crises,  could,  among  other 
things, require that we close our stores or distribution centers or otherwise make it difficult or impossible to operate our business. 

Other  factors  that  would  negatively  impact  our  ability  to  successfully  operate  during  the  ongoing  COVID-19  pandemic  include, 
but are not limited to:   

•
•
•

•

•

•

•

Our ability to keep our stores open if there is a re-emergence or increase in infection rate;  
Our ability to attract customers to our stores, given the risks, or perceived risks, of gathering in public places;   
Supply  chain  delays  due  to  closed  factories,  reduced  workforces,  scarcity  of  raw  materials  and  scrutiny,  as  well  as 
carrier constraints due to an increase in digital sales;  
Delays  in,  or  our  ability  to  complete,  planned  store  openings  on  the  expected  terms  or  timing,  or  at  all  based  on 
shortages in labor and materials and delays in the production and delivery of materials; 
Associates, whether our own or those of our third-party vendors, working offsite through work from home arrangements 
may  rely  on  residential  communication  networks  and  internet  providers  and  may  be  more  susceptible  to  service 
interruptions  and  cyberattacks,  and,  this  could  result  in  an  increase  in  phishing  and  other  scams,  fraud,  money 
laundering, theft and other criminal activity;  
Our  ability  to  preserve  liquidity  to  be  able  to  take  advantage  of  market  conditions  during  periods  of  temporary  store 
closures; and 
Difficulty  accessing debt and equity capital on attractive  terms, or at all, and a severe disruption and instability in the 
global financial markets or deterioration in credit and financing conditions may affect our access to capital necessary to 
fund business operations or address maturing liabilities.  

The factors described above may exacerbate other risks within this section of “ITEM 1A. RISK FACTORS”. Any future outbreak 
of any other highly infectious or contagious disease could also 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.

Abercrombie & Fitch Co.

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Our stores are primarily located in shopping malls and other shopping centers. Our sales at these stores, as well as sales at our 
flagship locations, are partially dependent upon the volume of traffic in those shopping centers and the surrounding area which, 
for  some  centers,  has  been  in  decline.  Our  stores  may  benefit  from  the  ability  of  a  shopping  center’s  other  tenants  and  area 
attractions  to  generate  consumer  traffic  in  the  vicinity  of  our  stores  and  the  continuing  popularity  of  the  shopping  center.  We 
cannot control the loss of a significant tenant in a shopping mall or area attraction, the development of new shopping malls in the 
U.S. or around the world, the availability or cost of appropriate locations or the success of individual shopping malls and there is 
competition with other retailers for prominent locations. 

Prior to the onset of the COVID-19 pandemic, the retail industry generally was facing declines in shopping mall traffic, and if the 
popularity  of  shopping  malls  declines  among  our  customers,  our  sales  may  decline,  and  it  may  be  appropriate  to  exit  leases 
earlier than originally anticipated.  

While  U.S.  Company-operated  stores  have  been  fully  reopened  for  in-store  service  following  widespread  temporary  store 
closures due to the COVID-19 pandemic, we may see additional temporary closures in certain geographic areas as outbreaks of 
COVID-19  cases  could  continue  to  occur  and  localized  responses  remain  unpredictable.  Furthermore,  declines  in  store  traffic 
beyond our current expectations could result in additional impairment charges. While we were successful in obtaining certain rent 
abatements and landlord concessions of rent payable as a result of COVID-19 store closures, we may be limited in our ability to 
obtain rent abatements or landlord concessions of rent otherwise payable going forward. 

All  of  these  factors  may  impact  our  ability  to  meet  our  productivity  or  our  growth  objectives  for  our  stores  and  could  have  a 
material adverse impact on our financial condition or results of operations. Part of our future growth is dependent on our ability to 
operate  stores  in  desirable  locations,  with  capital  investment  and  lease  costs  providing  the  opportunity  to  earn  a  reasonable 
return. We cannot be sure when or whether such desirable locations will become available at reasonable costs.

The  impact  of  natural  disasters,  negative  climate  patterns,  public  health  crises,  political  crises  and  other  unexpected  and 
catastrophic  events  could  result  in  interruptions  to  our  operations,  as  well  as  to  the  operations  of  our  third-party  partners,  and 
have a material adverse impact on our business.

Our retail stores, corporate offices, distribution centers, infrastructure projects and digital operations, as well as the operations of 
our  vendors  and  manufacturers,  are  vulnerable  to  disruption  from  natural  disasters,  such  as  hurricanes,  tornadoes,  floods, 
earthquakes, extreme cold events and other adverse weather events; negative climate patterns, such as those in domestic and 
global  water-stressed  regions;  public  health  crises,  such  as  pandemics  and  epidemics  (including  the  ongoing  COVID-19 
pandemic);  political  crises,  such  as  terrorists  attacks,  war,  labor,  unrest  and  other  political  instability;  significant  power 
interruptions or outages; and other unexpected, catastrophic events. These events could disrupt the operations of our corporate 
offices, global stores and supply chain and those of our third-party partners, including our vendors and manufacturers. In addition 
to immediate impacts on global operations, these events could result in a reduction in the availability and quality of raw materials 
used to manufacture our merchandise, delays in merchandise fulfillment and deliveries, loss of customers and revenues due to 
store closures and inability to respond to customer demand, increased costs to meet consumer demand (which we may not be 
able to pass on to customers), reduced consumer confidence or changes in consumers’ discretionary spending habits.

Historically,  our  operations  have  been  seasonal,  and  natural  disasters  or  unseasonable  weather  conditions,  may  diminish 
demand for our seasonal merchandise and could also influence consumer preferences and fashion trends, consumer traffic and 
shopping habits. In addition, to the extent natural disasters cause physical losses to our stores, distribution centers or offices, we 
may incur costs that exceed our applicable insurance coverage for any necessary repairs to damages or business disruption.

STRATEGIC RISKS.

Our failure to successfully execute on our Always Forward Plan.

In 2022 we introduced our Always Forward Plan as our long-term strategic plan, as described in “ITEM 1. BUSINESS.” Our 
ability to successfully execute on our Always Forward Plan is subject to various risks and uncertainties as described herein. 

We believe that our Always Forward Plan will lead to long-term revenue growth and increased profitability, however, there is no 
assurance  regarding  the  extent  to  which  we  will  realize  the  anticipated  objectives,  if  at  all,  or  regarding  the  timing  of  such 
anticipated benefits. Our failure to realize the anticipated objectives, which may be due to our inability to execute on the various 
elements  of  our  Always  Forward  Plan,  changes  in  consumer  demand,  competition,  macroeconomic  conditions  (including 
inflation), retention of key talent, and other risks described herein, could have a material adverse effect on our business. 

If the execution of our Always Forward Plan is not successful, or we do not realize the objectives to the extent or in the timeline 
that we anticipate, our financial condition and reputation could be adversely affected. 

Failure  to  continue  to  successfully  manage  the  complexities  of  our  customers’  omnichannel  shopping  experience,  or  failure  to 
continue  to  successfully  invest  in  customer,  digital  and  omnichannel  initiatives  could  have  a  material  adverse  impact  on  our 
business.

Abercrombie & Fitch Co.

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As omnichannel retailing continues to evolve, our customers increasingly interact with our brands through a variety of media and 
expect seamless integration across all touchpoints. As our success depends on our ability to effectively manage the complexities 
of  our  customers’  omnichannel  shopping  experience,  including  our  ability  to  respond  to  shifting  consumer  traffic  patterns  and 
engage our customers, we have made significant investments and operational changes to develop our digital and omnichannel 
capabilities globally, including the development of localized fulfillment, shipping and customer service operations, investments in 
digital media to attract new customers and the rollout of omnichannel capabilities listed in “ITEM 1. BUSINESS.” 

While we must keep up to date with  technology trends in the retail environment in order to manage our successful omnichannel 
shopping  experience,  it  is  possible  these  initiatives  may  not  provide  the  anticipated  benefits  or  desired  rates  of  return.  For 
example,  we  could  be  at  a  competitive  disadvantage  if  we  are  unable  to  leverage  data  analytics  to  retrieve  timely,  customer 
insights  to  appropriately  respond  to  customer  demands  and  improve  customer  engagement  across  channels  or  if  innovative 
digital products and features we develop are not utilized or received by customers as anticipated.

In  addition,  digital  operations  are  subject  to  numerous  risks,  including  reliance  on  third-party  computer  hardware/software  and 
service  providers,  data  breaches,  the  increased  rate  of  merchandise  returns,  violations  of  evolving  laws  and  regulations, 
including  those  relating  to  online  privacy,  credit  card  fraud,  telecommunication  failures,  electronic  break-ins  and  similar 
compromises,  and  disruption  of  internet  service.  Changes  in  foreign  governmental  regulations  may  also  negatively  impact  our 
ability to deliver product to our customers. Failure to successfully respond to these risks may adversely affect sales as well as 
damage the reputation of our brands.

Our failure to optimize our global store network could have a material adverse impact on our business.

With  the  evolution  of  digital  and  omnichannel  capabilities,  customer  expectations  have  shifted  and  there  has  been  greater 
pressure  for  a  seamless  omnichannel  experience  across  all  channels.    As  a  result,  global  store  network  optimization  is  an 
important part of our business and failure to optimize our global store network could have an adverse impact on our results of 
operations. 

The ability to open new stores experiences and modify existing leases requires partnership with our landlords. If our partnerships 
with our landlords were to deteriorate, this could adversely affect the pace of opening new store experiences and/or lead to an 
increase  in  store  closures.  In  addition,  if  there  is  an  increase  in  events  such  as  landlord  bankruptcies,  or  mall  foreclosures, 
competition  between  retailers  could  increase  for  remaining  suitable  store  locations.  Pursuing  the  wrong  opportunities  and  any 
delays,  cost  increases,  disruptions  or  other  uncertainties  related  to  those  opportunities  could  adversely  affect  our  results  of 
operations. If our investments in new stores or remodeling and right-sizing existing stores do not achieve appropriate returns, our 
financial condition and results of operations could be adversely affected.

Although  we  attempt  to  open  new  stores  in  prominent  locations,  it  is  possible  that  locations  which  were  prominent  when  we 
opened our stores may lose favor over time. 

Our inability to effectively conduct business in international markets, including as a result of legal, tax, regulatory, political and 
economic risks could have a material adverse impact on our business.

We operate on a global basis and are subject to risks associated with international operations that could have a material adverse 
effect on our reputation, business and results of operations if we fail to address them.

Such risks include, but are not limited to, the following:

•

•

addressing the different operational requirements present in each country in which we operate, including those related to 
employment and labor, transportation, logistics, real estate, lease provisions and local reporting or legal requirements;
supporting  global  growth  by  successfully  implementing  local  customer  and  product-facing  teams  and  certain  corporate 
support functions at our regional headquarters located in Shanghai, China and London, United Kingdom;
hiring, training and retaining qualified personnel;

•
• maintaining good labor relations with individual associates and groups of associates;
•

avoiding work stoppages or other labor-related issues in our European stores, where some associates are represented 
by workers’ councils and unions;
retaining acceptance from foreign customers;

•
• managing inventory effectively to meet the needs of existing stores on a timely basis; 
•
•
•
• managing foreign currency exchange rate risks effectively;
•

political, civil and social unrest, such as the ongoing conflict in Ukraine and escalating China-Taiwan tensions;
government regulations affecting trade between the U.S. and other countries, including tariffs and customs laws; 
tax rate volatility and our ability to realize tax benefits resulting from non-U.S. operations;  

substantial investments of time and resources in our global operations may not result in achievement of acceptable levels 
of returns; for example, we recently have experienced year-over-year declines in revenues from our international 
operations; and 
continued and sustained declines in our international revenues could lead to store closures, restructuring costs, and 
impairment losses, all of which could adversely impact our business, profitability, and results of operations.

•

Abercrombie & Fitch Co.

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We are subject to domestic laws related to international operations, including the Foreign Corrupt Practices Act, in addition to the 
laws of the foreign countries in which we operate. If any of our overseas operations, or our associates or agents, violate such 
laws, we could become subject to sanctions or other penalties that could negatively affect our reputation, business and operating 
results. 

Our  failure  to  appropriately  address  Environmental,  Social,  and  Governance  (ESG)  matters  could  have  a  material  adverse 
impact on our reputation and, as a result, our business.

There is an increased focus from certain government regulators, investors, customers, associates, business partners and other 
stakeholders concerning ESG matters. 

The expectations related to ESG matters are rapidly evolving, and, from time to time, we announce certain initiatives and goals, 
related  to  ESG  matters,  such  as  those  through  our  participation  in  the  United  Nations  Global  Compact.  We  could  fail,  or  be 
perceived to fail to act responsibly, in our ESG efforts, or we could fail in accurately reporting our progress on such initiatives and 
goals. In addition, we could be criticized for the speed of adoption of such initiatives or goals, or the scope of such initiatives or 
goals. As a result, we could suffer negative publicity and our reputation could be adversely impacted, which in turn could have a 
negative impact on investor perception and our products' acceptance by consumers. This may also impact our ability to attract 
and retain talent to compete in the marketplace.

There  is  also  uncertainty  regarding  potential  laws,  regulations,  and  policies  related  to  ESG  and  global  environmental 
sustainability  matters,  including  disclosure  obligations  and  reporting  on  such  matters.  Changes  in  the  legal  or  regulatory 
environment  affecting  ESG  disclosure,  responsible  sourcing,  supply  chain  transparency,  or  environmental  protection,  among 
others, including regulations to limit carbon dioxide and other greenhouse gas emissions, to discourage the use of plastic or to 
limit or to impose additional costs on commercial water use may result in increased costs for us and our business partners, all of 
which may negatively impact our results of operations, financial condition and cash flows.

OPERATIONAL RISKS.

Failure to protect our reputation could have a material adverse impact on our business.

Our ability to maintain our reputation is critical and public perception about our products or operations, whether justified or not, 
could impair our reputation, involve us in litigation, damage our brands and have a material adverse impact on our business. 

Events that could jeopardize our reputation, include, but are not limited to, the following:

• We fail to maintain high standards for merchandise quality and integrity;
• We fall victim to a cyber-attack, resulting in customer data being compromised;
• We fail to comply with ethical, social, product, labor, health and safety, legal, accounting or environmental standards, or 

•
•

•

•
•

related political considerations;
Our associates’ actions don’t align with our values and fail to comply with our Code of Business Conduct and Ethics;
Third parties with which we have a business relationship, including our brand representatives and influencer network, 
fail to represent our brands in a manner consistent with our brand image or act in a way that harms their reputation; 
Third-party vendors fail to comply with our Vendor Code of Conduct or any third parties with which we have a business 
relationship with fail to represent our brands in a manner consistent with our brand image;
Unfavorable media publicity and consumer perception of our products, operations, brand or experience; and
Our  position  or  perceived  lack  of  position  on  ESG,  public  policy  or  other  similar  issues  and  any  perceived  lack  of 
transparency about those matters.

In addition, in recent years there has been an increase in media platforms, particularly, social media and our use of social media 
platforms is an important element of our omnichannel marketing efforts. For example, we maintain various social media accounts 
for  our  brands,  including  Instagram,  TikTok,  Facebook,  Twitter  and  Pinterest  accounts.  Negative  publicity  or  actions  taken  by 
individuals that we partner with, such as brand representatives, influencers or our associates, that fail to represent our brands in 
a manner consistent with our brand image or act in a way that harms their reputation, whether through our social media accounts 
or their own, could harm our brand reputation and materially impact our business. Social media also allows for anyone to provide 
public feedback, which could influence perceptions of our brands and reduce demand for our merchandise. 

Damage  to  our  reputation  and  loss  of  consumer  confidence  for  these  or  any  other  reasons  could  lead  to  adverse  consumer 
actions, including boycotts, have negative impacts on investor perception and could impact our ability to attract and retain the 
talent necessary to compete in the marketplace, all of which could have a material adverse impact on our business, as well as 
require additional resources to rebuild our reputation.

If our information technology systems are disrupted or cease to operate effectively, it could have a material adverse impact on 
our business.

Abercrombie & Fitch Co.

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We  rely  heavily  on  our  information  technology  systems  in  both  our  customer-facing  and  corporate  operations  to:  operate  our 
websites  and  mobile  apps;  record  and  process  transactions;  respond  to  customer  inquiries;  manage  inventory;  purchase,  sell 
and  ship  merchandise  on  a  timely  basis;  maintain  cost-efficient  operations;  create  a  customer  relationship  management 
database  through  our  loyalty  programs;  and  complete  other  customer-facing  and  business  objectives.  Given  the  significant 
number  of  transactions  that  are  completed  annually,  it  is  vital  to  maintain  constant  operation  of  our  computer  hardware, 
telecommunication  systems  and  software  systems,  and  maintain  data  security.  Despite  efforts  to  prevent  such  an  occurrence, 
our  information  technology  systems  may  be  vulnerable,  from  time  to  time,  to  damage  or  interruption  from  computer  viruses, 
power  interruptions  or  outages  or  other  system  failures,  third-party  intrusions,  inadvertent  or  intentional  breaches  by  our 
associates  or  third-party  service  providers,  and  other  technical  malfunctions.  If  our  systems  are  damaged,  fail  to  function 
properly, or are obsolete in comparison to those of our competition, we may have to make monetary investments to repairs or 
replace the systems and we could endure delays in our operations. We have made and expect to continue to make significant 
monetary  investments  and  devote  significant  attention  to  modernizing  our  core  systems,  and  the  effectiveness  of  these 
investments can be less predictable than others and may fail to provide the expected benefits. 

We  regularly  evaluate  our  information  technology  systems  and  requirements  to  ensure  appropriate  functionality  and  use  in 
response to business demands. For example, we have started a multi-year process of upgrading our merchandising enterprise 
resource planning ("ERP") system. We are aware of the inherent risks associated with replacing and modifying these systems, 
including inaccurate system information, system disruptions and user acceptance and understanding. Any material disruption or 
slowdown  of  our  systems,  including  a  disruption  or  slowdown  caused  by  our  failure  to  successfully  upgrade  or  replace  our 
systems  could  impact  our  ability  to  effectively  manage  and  maintain  our  inventory,  to  ship  products  to  customers  on  a  timely 
basis,  and  may  cause  information  to  be  lost  or  delayed,  including  data  related  to  customer  orders.  Such  a  loss  or  delay, 
especially if the disruption or slowdown occurred during our peak selling seasons, could have a material adverse effect on our 
results of operations. In addition the upgrading of our ERP system requires significant financial and operational investments, and 
such investments may not provide the anticipated benefits or desired rates of returns.

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.

In the standard course of business, we receive and maintain confidential information about customers, associates and other third 
parties. In addition, third parties also receive and maintain certain confidential information. The protection of this information is  
critical  to  our  business  and  subjects  us  to  numerous  laws,  rules  and  regulations  domestically  and  in  foreign  jurisdictions. The 
retail industry in particular has been the target of many cyber-attacks and it is possible that an individual or group could defeat 
our  security  measures,  or  those  of  a  third-party  service  provider,  and  access  confidential  information  about  our  business, 
customers and associates. Further, like other companies in the retail industry, during the ordinary course of business, we and our 
vendors  have  in  the  past  experienced,  and  we  expect  to  continue  to  experience,  cyber-attacks  of  varying  degrees  and  types, 
including phishing, and other attempts to breach, or gain unauthorized access to, our systems. To date, cyber attacks have not 
had a material impact on our operations, but we cannot provide assurance that cyber attacks will not have a material impact in 
the future.

We have experienced, and expect to continue to experience increased costs associated with protecting confidential information 
through  the  implementation  of  security  technologies,  processes  and  procedures,  including  training  programs  for  associates  to 
raise  awareness  about  phishing,  malware  and  other  cyber  risks,  especially  as  we  implement  new  technologies,  such  as  new 
payment capabilities or updates to our mobile apps and websites. Additionally, the techniques and sophistication used to conduct 
cyber-attacks and breaches of information technology systems change frequently and increase in complexity and are often not 
recognized  until  such  attacks  are  launched  or  have  been  in  place  for  a  period  of  time.  We  may  not  have  the  resources  or 
technical sophistication to anticipate, prevent, or immediately identify and remediate cyber-attacks.

Furthermore,  the  global  regulatory  environment  is  increasingly  complex  and  demanding  with  frequent  new  and  changing 
requirements  surrounding  information  security  and  privacy,  including  new  regulations  applicable  to  public  companies  in  the 
United  States,  China’s  Cybersecurity  Law,  the  California  Consumer  Privacy  Act,  and  the  European  Union’s  General  Data 
Protection  Regulation.  We  may  incur  significant  costs  related  to  compliance  with  these  laws  and  failure  to  comply  with  these 
regulatory standards, and others, could have a material adverse impact on our business.

We have also implemented a flexible work policy allowing most of our corporate associates to work remotely, from time to time, 
as  have  certain  of  our  third-party  vendors.  Offsite  working  by  associates,  which  requires  increased  use  of  public  internet 
connection, and use of office equipment off premises may make our business more vulnerable to cybersecurity breach attempts, 
phishing and other scams, fraud, money laundering, theft and other criminal activity.

If  we,  or  a  third-party  partner,  were  to  fall  victim  to  a  successful  cyber-attack  or  suffer  intentional  or  unintentional  data  and 
security  breaches  by  associates  or  third-parties,  it  could  have  a  material  adverse  impact  on  our  business,  especially  an  event 
that  compromises  customer  data  or  results  in  the  unauthorized  release  of  confidential  business  or  customer  information.  In 
addition,  if  we  are  unable  to  avert  a  denial  of  service  attack  that  renders  our  website  inoperable,  it  could  result  in  negative 
consequences, such as lost sales and customer dissatisfaction. Additional negative consequences that could result from these 
and similar events may include, but are not limited to:

Abercrombie & Fitch Co.

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•

•

•

•

•
•
•

remediation costs, such as liability for stolen assets or information, potential legal settlements to affected parties, repairs 
of  system  damage,  and  incentives  to  customers  or  business  partners  in  an  effort  to  maintain  relationships  after  an 
attack;
increased  cybersecurity  protection  costs,  which  may  include  the  costs  of  making  organizational  changes,  deploying 
additional personnel and protection technologies, training associates, and engaging third party experts and consultants;
lost revenues resulting from the unauthorized use of proprietary information or the failure to retain or attract customers 
following an attack;
litigation  and  legal  risks,  including  costs  of  litigation  and  regulatory,  fines,  penalties  or  actions  by  domestic  or 
international governmental authorities;
increased insurance premiums, or the ability to obtain insurance on commercially reasonable terms;
reputational damage that adversely affects customer or investor confidence; and
damage to the Company’s competitiveness, stock price, and long-term shareholder value.

Although we maintain cybersecurity insurance, there can be no assurance that it will be sufficient for a specific cyber incident, or 
that insurance proceeds will be paid to us in a timely fashion. 

Our reliance on our distribution centers makes us susceptible to disruptions or adverse conditions affecting our supply chain.

Our  distribution  center  operations  are  susceptible  to  local  and  regional  factors,  such  as  system  failures,  accidents,  labor 
disputes,  economic  and  weather  conditions,  natural  disasters,  significant  power  interruptions  or  outages,  demographic  and 
population changes, and other unforeseen events and circumstances. We rely on our distribution centers to manage the receipt, 
storage,  sorting,  packing  and  distribution  of  our  merchandise.  If  our  distribution  centers  are  not  adequate  to  support  our 
operations,  including  as  a  result  of  capacity  constraints  in  response  to  an  increase  in  digital  sales,  the  increased  rate  of 
merchandise returns, we could experience adverse impacts such as shipping delays and or customer dissatisfaction. In addition, 
if  our  distribution  operations  were  disrupted  due  to,  for  example,  labor  shortages,  natural  disasters  or  power  interruptions  or 
outages,  and  we  were  unable  to  relocate  operations  or  find  other  property  adequate  for  conducting  business,  our  ability  to 
replace  inventory  in  our  stores  and  process  digital  and  third-party  orders  could  be  interrupted,  potentially  resulting  in  adverse 
impacts to sales or increased costs. Refer to “ITEM 1. BUSINESS,” for a listing of certain distribution centers on which we rely.

Changes in the cost, availability and quality of raw materials, transportation and labor, including changes due to trade relations 
could have a material adverse impact on our business.

Changes in the cost, availability and quality of the fabrics or other raw materials used to manufacture our merchandise could 
have a material adverse effect on our cost of sales, or our ability to meet customer demand. The prices for such fabrics depend 
largely on the market prices for the raw materials used to produce them, particularly cotton. The price and availability of such raw 
materials may fluctuate significantly, depending on many factors, including crop yields, weather patterns and other unforeseen 
events. For example, significant inflationary pressures have and may continue to impact the cost of labor, cotton and other raw 
materials. Increased global uncertainty has also impacted and may in the future impact the cost, availability and quality of the 
fabrics or other raw materials used to manufacture our merchandise, and compliance with sanctions, customs trade orders and 
sourcing laws, such as those issued by the U.S. government related to the ongoing conflict in Ukraine and entities and 
individuals connected to China’s Xinjiang Uyghur Autonomous Region, could impact the price of cotton in the marketplace and 
the global supply chain.

Fluctuations  in  the  cost  of  transportation  could  also  have  a  material  adverse  effect  on  our  cost  of  sales  and  ability  to  meet 
customer  demand.  We  primarily  use  seven  contract  carriers  to  ship  merchandise  and  related  materials  to  our  North American 
customers,  and  several  contract  carriers  for  our  international  customers.  If  the  shipping  operations  of  these  third  parties  were 
disrupted, and we are unable to respond in a quick and efficient manner, our ability to replace inventory in our stores and process 
digital  and  third-party  orders  could  be  interrupted,  potentially  resulting  in  adverse  impacts  to  sales  or  increased  costs. 
Furthermore, we are susceptible to increases in fuel costs which may increase the cost of distribution. If we are not able to pass 
this cost on to our customers, our financial condition and results of operations could be adversely affected.

In  addition,  we  have  experienced  increasing  wage  pressures  in  recent  years  related  to  the  cost  of  labor  at  our  third-party 
manufacturers, at our distribution centers and at our stores. For example, recent government initiatives in the U.S. or changes to 
existing laws, such as the adoption and implementation of national, state, or local government proposals relating to increases in 
minimum wage rates, may increase our costs of doing business and adversely affect our results of operations. We may not be 
able to pass all or a portion of higher labor costs on to our customers, which could adversely affect our gross margin and results 
of operations.

Abercrombie & Fitch Co.

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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 do not own or operate any manufacturing facilities. As a result, the continued success of our operations is tied to our timely 
receipt  of  quality  merchandise  from  third-party  manufacturers.  We  source  the  majority  of  our  merchandise  outside  of  the  U.S. 
through arrangements with approximately 119 vendors, primarily located in southeast Asia. Political, social or economic instability 
in the regions in which our manufacturers are located could cause disruptions in trade, including exports to the U.S. In addition, 
the inability of vendors to access liquidity, or the insolvency of vendors, could lead to their failure to deliver merchandise to us. A 
manufacturer’s  inability  to  ship  orders  in  a  timely  manner  or  meet  our  quality  standards  could  cause  delays  in  responding  to 
consumer demand and negatively affect consumer confidence or negatively impact our competitive position, any of which could 
have a material adverse effect on our financial condition and results of operations. 

All  factories  that  we  partner  with  are  contractually  required  to  adhere  to  the  Company’s  Vendor  Code  of  Conduct,  go  through 
social  audits  which  include  on-site  walk-throughs  to  appraise  the  physical  working  conditions  and  health  and  safety  practices, 
and review payroll and age documentation. If these factories are unwilling or not able to meet the standards set forth within the 
Company’s  Vendor  Code  of  Conduct,  it  could  limit  the  options  available  to  us  and  could  result  in  an  increase  of  costs  of 
manufacturing, which we may not be able to pass on to our customers.

Other events that could disrupt the timely delivery of our merchandise include new trade law provisions or regulations, reliance 
on a limited number of shipping carriers and associated alliances, weather events, significant labor disputes, port congestion and 
other unexpected events, such as COVID-19.

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.

Our  ability  to  succeed  may  be  adversely  impacted  if  we  are  not  able  to  attract,  retain  and  develop  talent  and  future  leaders, 
including  our  executive  officers.  We  believe  that  the  attraction,  retention  and  management  of  qualified  talent  is  integral  to  our 
success  in  advancing  our  strategies  and  key  business  priorities  and  avoiding  disruptions  in  our  business.  We  rely  on  our 
associates  across  the  organization,  including  those  at  our  corporate  offices,  stores  and  distribution  centers,  as  well  as  their 
experience and expertise in the retail business.  

Our  executive  officers  closely  supervise  all  aspects  of  our  operations,  have  substantial  experience  and  expertise  in  the  retail 
business and have an integral role in the growth and success of our brands. If we were to lose the benefit of the involvement of 
our executive officers or other personnel, without adequate succession plans, our business could be adversely affected. 

In  addition,  if  we  are  unable  to  attract  and  retain  talent  at  the  associate  level,  our  business  could  be  adversely  impacted. 
Competition  for  such  qualified  talent  is  intense,  and  we  cannot  be  sure  that  we  will  be  able  to  attract,  retain  and  develop  a 
sufficient number of qualified individuals in future periods. In addition, we cannot guarantee that we will be able to find adequate 
temporary  or  seasonal  personnel  to  staff  our  operations  when  needed.  For  example,  as  automation,  artificial  intelligence  and 
similar  technological  advancements  continue  to  evolve,  we  may  need  to  compete  for  talent  that  is  familiar  with  these 
advancements in technologies in order to compete effectively with our industry peers. If we are not successful in these efforts, 
our business may be adversely affected. 

If  we  are  not  successful  in  these  efforts  or  fail  to  successfully  execute  against  the  key  human  capital  management  initiatives 
discussed in “ITEM 1. BUSINESS,” our business could be adversely impacted.

If we identify a material weakness in our internal control over financial reporting, fail to remediate a material weakness, or 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.

The  effectiveness  of  any  controls  or  procedures  is  subject  to  certain  inherent  limitations,  and  as  a  result,  there  can  be  no 
assurance  that  our  controls  and  procedures  will  prevent  or  detect  misstatements.  Even  an  effective  system  of  internal  control 
over  financial  reporting  will  provide  only  reasonable,  not  absolute,  assurance  with  respect  to  financial  statement  preparation. 
Also,  projections  of  any  evaluations  of  effectiveness  to  future  periods  are  subject  to  the  risk  that  controls  may  become 
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

If we fail to remediate a material weakness, or are otherwise unable to maintain effective internal control over financial reporting, 
management  could  be  required  to  expend  significant  resources.  Additionally,  we  could  fail  to  meet  our  public  reporting 
requirements  on  a  timely  basis,  and  be  subject  to  fines,  penalties,  investigations  or  judgements,  all  of  which  could  negatively 
affect investor confidence and adversely impact our stock price. 

Abercrombie & Fitch Co.

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LEGAL, TAX, REGULATORY AND COMPLIANCE RISKS.

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.

We are subject to income taxes in many U.S. and foreign jurisdictions. In addition, our products are subject to import and excise 
duties  and/or  sales,  consumption  or  value-added  taxes  (“VAT”)  in  many  jurisdictions.  We  record  tax  expense  based  on  our 
estimates of future payments, which include reserves for estimates of probable settlements of foreign and domestic tax audits. At 
any time, many tax years are subject to audit by various taxing jurisdictions. The results of these audits and negotiations with 
taxing authorities may affect the ultimate settlement of these issues. As a result, we expect that throughout the year, there could 
be ongoing variability in our quarterly tax rates as taxable events occur and exposures are evaluated. In addition, our effective 
tax rate in any given financial reporting period may be materially impacted by changes in the mix and level of earnings or losses 
by taxing jurisdictions or by changes to existing accounting rules or regulations. Fluctuations in duties could also have a material 
impact on our financial condition, results of operations or cash flows. 

In some international markets, we are required to hold and submit VAT to the appropriate local tax authorities. Failure to correctly 
calculate or submit the appropriate amounts could subject us to substantial fines and penalties that could have an adverse effect 
on our financial condition, results of operations or cash flows. 

The Organization for Economic Co-operation and Development, along with members of its inclusive framework, have through the 
Base  Erosion  and  Profit  Shifting  project,  proposed  changes  to  numerous  long-standing  tax  principles.  These  proposals,  if 
finalized  and  adopted  by  the  associated  countries,  will  likely  increase  tax  complexity,  and  may  both  create  uncertainty  and 
adversely affect our provision for income taxes.

In the past, tax law has been enacted, domestically and abroad, impacting our current or future tax structure and effective tax 
rate, such as the Inflation Reduction Act in the U.S. Tax law may be enacted in the future, domestically or abroad, that impacts 
our current or future tax structure and effective tax rate.

Litigation and any future stockholder activism, could have a material adverse impact on our business.

We,  along  with  third  parties  we  do  business  with,  are  involved,  from  time  to  time,  in  litigation  arising  in  the  ordinary  course  of 
business.  Litigation  matters  may  include,  but  are  not  limited  to,  contract  disputes,  employment-related  actions,  labor  relations, 
commercial litigation, intellectual property rights, product safety, environmental matters and shareholder actions. 

Litigation, in general, may be expensive and disruptive. We cannot predict with certainty the outcomes of these legal proceedings 
and  other  contingencies,  and  the  costs  incurred  in  litigation  can  be  substantial,  regardless  of  the  outcome.  Substantial 
unanticipated verdicts, fines and rulings do sometimes occur.  As a result, we could, from time to time, incur judgments, enter into 
settlements or revise our expectations regarding the outcome of certain matters, and such developments could have a material 
adverse effect on our results of operations in the period in which the amounts are accrued and/or our cash flows in the period in 
which the amounts are paid.  The outcome of some of these legal proceedings and other contingencies could require us to take, 
or refrain from taking, actions which could negatively affect our operations and, depending on the nature of the allegations, could 
negatively  impact  our  reputation. Additionally,  defending  against  these  legal  proceedings  may  involve  significant  expense  and 
diversion of management’s attention and resources.

Stockholder activism, which could take many forms or arise in a variety of situations, remains popular with many public investors. 
Due  to  the  potential  volatility  of  our  stock  price  and  for  a  variety  of  other  reasons,  we  may  become  the  target  of  securities 
litigation or stockholder activism. Responding to stockholder activists campaigns may involve significant expense and diversion 
of management’s attention and resources without yielding any improvement in our results of operations or financial condition.

Failure to adequately protect our trademarks or otherwise defend intellectual property 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.

We believe our core trademarks, Abercrombie & Fitch®, abercrombie®, Hollister®, Gilly Hicks®, Social Tourist® and the “Moose” 
and  “Seagull”  logos,  are  essential  to  the  effective  implementation  of  our  strategy.  We  have  obtained  or  applied  for  federal 
registration of these trademarks with the U.S. Patent and Trademark Office and the registries of countries in key markets within 
the  Company’s  sales  and  distribution  channels.  In  addition,  these  trademarks  are  either  registered,  or  the  Company  has 
applications  for  registration  pending,  with  the  registries  of  many  of  the  foreign  countries  in  which  the  manufacturers  of  the 
Company’s products are located. There can be no assurance that we will obtain registrations that have been applied for or that 
the registrations we obtain will prevent the imitation of our products or infringement of our intellectual property rights by others. 
Although brand security initiatives are in place, we cannot guarantee that our efforts against the counterfeiting of our brands will 
be successful. If a third party copies our products in a manner that projects lesser quality or carries a negative connotation, our 
brand image could be materially adversely affected.

Abercrombie & Fitch Co.

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Because we have not yet registered all of our trademarks in all categories, or in all foreign countries in which we source or offer 
our merchandise now, or may in the future, our international expansion and our merchandising of products using these marks 
could be limited. The pending applications for international registration of various trademarks could be challenged or rejected in 
those  countries  because  third  parties  of  whom  we  are  not  currently  aware  have  already  registered  similar  marks  in  those 
countries.  Accordingly,  it  may  be  possible,  in  those  foreign  countries  where  the  status  of  various  applications  is  pending  or 
unclear,  for  a  third-party  owner  of  the  national  trademark  registration  for  a  similar  mark  to  prohibit  the  manufacture,  sale  or 
exportation of branded goods in or from that country. Failure to register our trademarks or purchase or license the right to use our 
trademarks or logos in these jurisdictions could limit our ability to obtain supplies from, or manufacture in, less costly markets or 
penetrate new markets should our business plan include selling our merchandise in those non-U.S. jurisdictions.

Additionally, if a third party claims to have licensing rights with respect to merchandise we have produced or purchased from a 
vendor,  we  may  be  obligated  to  remove  this  merchandise  from  our  inventory  offering  and  incur  related  costs,  and  could  be 
subject  to  liability  under  various  civil  and  criminal  causes  of  action,  including  actions  to  recover  unpaid  royalties  and  other 
damages. 

Changes in the regulatory or compliance landscape could have a material adverse impact on our business.

We are subject to numerous domestic and foreign laws and regulations, including those related to customs, truth-in-advertising, 
securities,  consumer  protection,  general  privacy,  health  information  privacy,  identity  theft,  online  privacy,  general  employment, 
employee health and safety, minimum wages, unsolicited commercial communication and zoning and occupancy laws, as well as 
ordinances  that  regulate  retailers  generally  and/or  govern  the  importation,  intellectual  property,  promotion  and  sale  of 
merchandise and the operation of retail stores, digital operations and distribution centers. If these laws and regulations were to 
change,  or  were  violated  by  our  management,  associates,  suppliers,  vendors  or  other  parties  with  whom  we  do  business,  the 
costs of certain merchandise could increase, or we could experience delays in shipments of our merchandise, be subject to fines 
or  penalties,  temporary  or  permanent  store  closures,  or  increased  regulatory  scrutiny  or  suffer  reputational  harm,  which  could 
reduce demand for our merchandise and adversely affect our business and results of operations. Any changes in regulations, the 
imposition  of  additional  regulations,  or  the  enactment  of  any  new  or  more  stringent  legislation  including  the  areas  referenced 
above, could adversely affect our business and results of operations. 

Laws  and  regulations  at  the  local,  state,  federal  and  various  international  levels  frequently  change,  and  the  ultimate  cost  of 
compliance cannot be precisely estimated. Changes in the legal or regulatory environment affecting responsible sourcing, supply 
chain  transparency,  or  environmental  protection,  among  others,  may  result  in  increased  compliance  costs  for  us  and  our 
business  partners.  Additionally,  we  may  face  regulatory  challenges  in  complying  with  applicable  global  sanctions  and  trade 
regulations  and  reputational  challenges  with  our  consumers  and  other  stakeholders  if  we  are  unable  to  sufficiently  verify  the 
origins of material sourced for the manufacture of our products.

In  addition,  we  are  subject  to  a  variety  of  regulatory  and  reporting  requirements,  including,  but  not  limited  to,  those  related  to 
corporate governance and public disclosure. Stockholder activism, the current political environment, financial reform legislation, 
government  intervention  and  regulatory  reform  may  lead  to  substantial  new  regulations  and  disclosure  obligations.  New 
requirements  or  changes  in  current  regulatory  reporting  requirements  may  introduce  additional  complexities,  lead  to  additional 
compliance costs, divert management’s time and attention from strategic business activities, and could have a significant effect 
on our reported results for the affected periods. Failure to comply with such regulations could result in fines, penalties, or lawsuits 
and could have a material adverse impact on our business.

The  agreements  related  to  A&F  Management’s  senior  secured  asset-based  revolving  credit  facility  and  senior  secured  notes 
include  restrictive  covenants  that  limit  our  flexibility  in  operating  our  business  and  our  inability  to  obtain  additional  credit  on 
reasonable terms in the future could have an adverse impact on our business.

The  Amended  and  Restated  Credit  Agreement  (the  “Amended  and  Restated  Credit  Agreement”)  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  $400  million  (the  “ABL  Facility”),  which  matures  on April  29,  2026. A&F  Management’s  senior 
secured  notes  (the  “Senior  Secured  Notes””)  have  a  fixed  8.75%  interest  rate  and  mature  on  July  15,  2025. The  agreements 
related  to  the ABL  Facility  and  the  Senior  Secured  Notes  contain  restrictive  covenants  that,  subject  to  specified  exemptions, 
restrict,  among  other  things,  the  ability  of  the  Company  and  its  subsidiaries  to:  incur,  assume  or  guarantee  additional 
indebtedness; grant or incur liens; sell or otherwise dispose of assets, including capital stock of subsidiaries; make investments 
in certain subsidiaries; pay dividends or make distributions on our capital stock; redeem or repurchase capital stock; change the 
nature  of  our  business;  and  consolidate  or  merge  with  or  into,  or  sell  substantially  all  of  the  assets  of  the  Company  or A&F 
Management to another entity. 

Abercrombie & Fitch Co.

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2022 Form 10-K

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If an event of default under either related agreement occurs, any outstanding obligations under the Senior Secured Notes and 
the ABL  Facility  could  be  declared  immediately  due  and  payable  or  the  lenders  or  noteholders  could  foreclose  on  or  exercise 
other remedies with respect to the assets securing the indebtedness under the Senior Secured Notes and the ABL Facility. In 
addition,  there  is  no  assurance  that  we  would  have  the  cash  resources  available  to  repay  such  accelerated  obligations. 
Moreover, the Senior Secured Notes and ABL Facility are secured by certain of our real property, inventory, intellectual property, 
general intangibles and receivables, among other things, and lenders may exercise remedies against the collateral in an event of 
default. 

We  have,  and  expect  to  continue  to  have,  a  level  of  indebtedness.  In  addition,  we  may,  from  time  to  time,  incur  additional 
indebtedness.  We  may  need  to  refinance  all  or  a  portion  of  our  existing  indebtedness  before  maturity,  including  the  Senior 
Secured  Notes,  and  any  indebtedness  under  the  ABL  Facility.  There  can  be  no  assurance  that  we  would  be  able  to  obtain 
sufficient funds to enable us to repay or refinance our debt obligations on commercially reasonable terms, or at all. Changes in 
market conditions could potentially impact the size and terms of a replacement facility or facilities in the future. The inability to 
obtain credit on commercially reasonable terms in the future could adversely impact our liquidity and results of operations as well 
as limit our ability to take advantage of business opportunities that may arise. 

Abercrombie & Fitch Co.

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2022 Form 10-K

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Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

The Company’s global headquarters are located on a campus-like setting in New Albany, Ohio, which is owned by the Company. 
The  Company’s  global  headquarters  also  include  company-owned  distribution  centers  that  support  distribution  to  all  domestic 
stores and the majority of domestic digital orders.  The Company also leases property for its regional headquarters located in 
London,  United  Kingdom  and  Shanghai,  China.  In  addition,  the  Company  owns  or  leases  facilities  both  domestically  and 
internationally to support the Company’s operations, such as its distribution centers and various support centers.

The  Company  does  not  believe  any  individual  regional  headquarters,  third-party  distribution  center  or  support  center  lease  is 
material  as,  if  necessary  or  desirable  to  relocate  an  operation,  other  suitable  property  could  be  found.  These  properties  are 
utilized  by  both  of  the  Company’s  operating  segments  and  are  currently  suitable  and  adequate  for  conducting  the  Company’s 
business.

As  of  January  28,  2023,  the  Company  operated  762  retail  stores  across  its  brands.  The  Company  does  not  believe  that  any 
individual store lease is material; however, certain geographic areas may have a higher concentration of store locations. 

Item 3. Legal Proceedings

For  information  regarding  legal  proceedings,  see  Note  18  “CONTINGENCIES”  to  the  Consolidated  Financial  Statements 
included in this Annual report on Form 10-K. The Company’s accrued charges for certain legal contingencies are classified within 
accrued  expenses  on 
in  “ITEM  8.  FINANCIAL  STATEMENTS  AND 
the  Consolidated  Balance  Sheets 
SUPPLEMENTARY DATA,” of this Annual Report on Form 10-K. 

included 

In addition, pursuant to Item 103(c)(3)(iii) of Regulation S-K under the Exchange Act, the Company is required to disclose certain 
information about environmental proceedings to which a governmental authority is a party if the Company reasonably believes 
such proceedings may result in monetary sanctions, exclusive of interest and costs, above a stated threshold. The Company has 
elected to apply a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required.

Item 4. Mine Safety Disclosures

Not applicable.

Abercrombie & Fitch Co.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder 
Matters and Issuer Purchases of Equity Securities

Market Information and Holders

A&F’s Class A Common Stock, $0.01 par value (“Common Stock”) is traded on the New York Stock Exchange under the symbol 
“ANF.” As of March 24, 2023, there were approximately 2,600 stockholders of record. However, when including investors holding 
shares  of  Common  Stock  in  broker  accounts  under  street  name,  A&F  estimates  that  there  were  approximately  38,000 
stockholders.

Performance Graph

The following graph shows the changes, over the five-year period ended January 28, 2023 (the last day of A&F’s Fiscal 2022) in 
the  value  of  $100  invested  in  (i)  shares  of  Common  Stock;  (ii)  Standard  &  Poor’s  500  Stock  Index  (the  “S&P  500”);  and 
(iii)  Standard  &  Poor’s  Apparel  Retail  Composite  Index  (the  “S&P  Apparel  Retail”),  including  reinvestment  of  dividends.  The 
plotted points represent the closing price on the last trading day of the fiscal year indicated.

PERFORMANCE GRAPH (1)
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among A&F, the S&P 500 Index and the S&P Apparel Retail Index

A&F

S&P 500

S&P Apparel Retail

02/03/18

02/02/19

02/01/20

01/30/21

01/29/22

01/28/23

$  100.00  $  107.93  $ 

86.44  $  123.98  $  196.10  $  146.77 

100.00 

100.00 

99.93 

113.06 

121.46 

131.73 

142.39 

143.75 

172.28 

159.17 

160.83 

190.20 

* 

(1)  

$100 invested on February 03, 2018, including reinvestment of dividends.
Copyright© 2023 Standard & Poor’s, a division of S&P Global. All rights reserved.

This performance graph shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or to the liabilities of 
Section 18 of the Exchange Act, except to the extent that A&F specifically requests that the performance graph be treated as soliciting material or 
specifically incorporates it by reference into a filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.

Abercrombie & Fitch Co.

25

2022 Form 10-K

Abercrombie & Fitch Co.S&P 500S&P Apparel Retail02/03/1802/02/1902/01/2001/30/2101/29/2201/28/23$0$50$100$150$200$250 
 
 
 
 
 
 
 
 
 
 
 
 
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Equity Securities

The following table provides information regarding the purchase of shares of Common Stock made by or on behalf of A&F or any 
“affiliated  purchaser”  as  defined  in  Rule  10b-18(a)(3)  under  the  Exchange Act  during  each  fiscal  month  of  the  thirteen  weeks 
ended January 28, 2023:

Total

(1)

(2)

(3)

Period (fiscal month)
October 30, 2022 through November 26, 2022

November 27, 2022 through December 31, 2022

January 1, 2023 through January 28, 2023

Total Number of 
Shares 
Purchased (1)

Average Price 
Paid per Share

—  $ 

1,444 

— 

1,444 

— 

18.86 

— 
18.86 

Total Number of Shares 
Purchased as Part of 
Publicly Announced 
Plans or Programs (2)

Maximum Number of 
Shares (or Approximate 
Dollar Value) that May 
Yet Be Purchased Under 
the Plans or Programs (3)

—  $ 

— 

— 

— 

232,184,768 

232,184,768 

232,184,768 

232,184,768 

An  aggregate  of  1,444  shares  of  A&F’s  Common  Stock  purchased  during  the  thirteen  weeks  ended  January  28,  2023  were  withheld  for  tax
payments due upon the vesting of employee restricted stock units and exercise of employee stock appreciation rights.
On November 23, 2021, we announced that the Board of Directors approved a new $500 million share repurchase authorization, replacing the prior
2021 share repurchase authorization of 10.0 million shares, which had approximately 3.9 million shares remaining available
The  number  shown  represents,  as  of  the  end  of  each  period,  the  approximate  dollar  value  of  Common  Stock  that  may  yet  be  purchased  under
A&F’s  publicly  announced  stock  repurchase  authorization  described  in  footnote  2  above.  The  shares  may  be  purchased,  from  time  to  time,
depending on business and market conditions.

Dividends

In  May  2020,  the  Company  announced  that  it  had suspended  its  dividend  program  in  order  to  preserve  liquidity  and  maintain 
financial flexibility in light of the COVID-19 pandemic. The Company’s dividend program remains suspended. The Company may 
in  the  future  review  its  dividend  program  to  determine,  in  light  of  facts  and  circumstances  at  that  time,  whether  and  when  to 
reinstate. Any dividends are declared at the discretion of the Board of Directors. The Board of Directors reviews and establishes 
a dividend amount, if at all, based on A&F’s financial condition, results of operations, capital requirements, current and projected 
cash  flows,  business  prospects  and  other  factors  and  any  restrictions  under  the  Company’s  agreements  related  to  the  Senior 
Secured  Notes  and  the  ABL  Facility.  There  can  be  no  assurance  that  the  Company  will  pay  dividends  in  the  future  or, 
if dividends are paid, that they will be in amounts similar to past dividends.

Item 6. [Reserved]

Abercrombie & Fitch Co.

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Item 7.  Management’s Discussion and Analysis of Financial Condition 
and Results of Operations

The  following  Management’s  Discussion  and  Analysis  of  Financial  Condition  and  Results  of  Operations  (“MD&A”)  generally 
discusses our results of operations for Fiscal 2022 and Fiscal 2021 and provides comparisons between such fiscal years.  For 
discussion and comparison of Fiscal 2021 and Fiscal 2020, see “Management’s Discussion and Analysis of Financial Condition 
and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for Fiscal 2021, filed with the SEC on March 28, 
2022.   This  MD&A  should  be  read  together  with  the  Company’s  audited  Consolidated  Financial  Statements  and  notes  thereto 
included in this Annual Report on Form 10-K in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA,” to which 
all references to Notes in MD&A are made.

INTRODUCTION

MD&A is provided as a supplement to the accompanying Consolidated Financial Statements and notes thereto to help provide 
an understanding of the Company’s results of operations, financial condition, and liquidity. MD&A is organized as follows:

•

•

•

•

•

•

•

Overview.  A general description of the Company’s business and certain segment information, and an overview of key 
performance indicators reviewed by management in assessing the Company’s results.

Current  Trends  and  Outlook.    A  discussion  of  the  Company’s  long-term  plans  for  growth  and  a  summary  of  the 
Company’s performance over recent years, primarily Fiscal 2022 and Fiscal 2021. 

Results  of  Operations.   An  analysis  of  certain  components  of  the  Company’s Consolidated  Statements  of  Operations 
and Comprehensive (Loss) Income for Fiscal 2022 as compared to Fiscal 2021.

Liquidity and Capital Resources.  A discussion of the Company’s financial condition, changes in financial condition and 
liquidity as of January 28, 2023, which includes (i) an analysis of changes in cash flows for Fiscal 2022 as compared to 
Fiscal 2021, (ii) an analysis of liquidity, including availability under the Company’s credit facility, and outstanding debt 
and covenant compliance and (iii) a summary of contractual and other obligations as of January 28, 2023. 

Recent Accounting Pronouncements.  The recent accounting pronouncements the Company has adopted or is currently 
evaluating, including the dates of adoption or expected dates of adoption, as applicable, and anticipated effects on the 
Company’s  audited  Consolidated  Financial  Statements,  are  included  in  Note  2  “SUMMARY  OF  SIGNIFICANT 
ACCOUNTING POLICIES.”

Critical Accounting Estimates.  A discussion of the accounting estimates considered to be important to the Company’s 
results of operations and financial condition, which typically require significant judgment and estimation on the part of 
the Company’s management in their application. 

Non-GAAP Financial Measures.  MD&A provides a discussion of certain financial measures that have been determined 
to  not  be  presented  in  accordance  with  accounting  principles  generally  accepted  in  the  U.S.  (“GAAP”).  This  section 
includes certain reconciliations between GAAP and non-GAAP financial measures and additional details on non-GAAP 
financial measures, including information as to why the Company believes the non-GAAP financial measures provided 
within MD&A are useful to investors. 

Abercrombie & Fitch Co.

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OVERVIEW

Business Summary

The Company is a global, digitally-led omnichannel retailer.  The Company offers a broad assortment of apparel, personal care 
products and accessories for men, women and kids, which are sold primarily through its digital channels and Company-owned 
stores, as well as through various third-party arrangements.  The Company’s two brand-based operating segments are Hollister, 
which includes the Company’s Hollister, Gilly Hicks and Social Tourist brands, and Abercrombie, which includes the Company’s 
Abercrombie  &  Fitch  and  abercrombie  kids  brands.  These  five  brands  share  a  commitment  to  offering  unique  products  of 
enduring quality and exceptional comfort that allow customers around the world to express their own individuality and style. The 
Company operates primarily in North America, Europe, Middle East and Asia.

The Company’s fiscal year ends on the Saturday closest to January 31. All references herein to the Company’s fiscal years are 
as follows:

Fiscal year

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023

Seasonality

Year ended/ ending

Number of weeks

January 30, 2021

January 29, 2022

January 28, 2023

February 3, 2024

52

52

52

53

Due  to  the  seasonal  nature  of  the  retail  apparel  industry,  the  results  of  operations  for  any  interim  period  are  not  necessarily 
indicative of the results expected for the full fiscal year and the Company could experience significant fluctuations in certain asset 
and liability accounts. The Company experiences its greatest sales activity during Fall, due to back-to-school and holiday sales 
periods, respectively. 

Key Performance Indicators

The following measurements are among the key performance indicators reviewed by the Company’s management in assessing 
the Company’s results:

Changes in net sales and comparable sales;
Gross profit and gross profit rate;
Cost of sales, exclusive of depreciation and amortization, as a percentage of net sales;
Stores and distribution expense as a percentage of net sales;

•
•
•
•
• Marketing, general and administrative expense as a percentage of net sales;
•
•
•
•
•
•
•

Operating income and operating income as a percentage of net sales (“operating margin”);
Net income and net income attributable to A&F;
Cash flow and liquidity measures, such as the Company’s  working capital, operating cash flow, and free cash flow;
Inventory metrics, such as inventory turnover;
Return on invested capital and return on equity;
Store metrics, such as net sales per gross square foot, and store four-wall operating margins; 
Digital  and  omnichannel  metrics,  such  as  total  shipping  expense  as  a  percentage  of  digital  sales,  and  certain  metrics 
related to our purchase-online-pickup-in-store and order-in-store programs;
Transactional  metrics,  such  as  traffic  and  conversion,  performance  across  key  product  categories,  average  unit  retail 
(“AUR’), average unit cost (“AUC”), average units per transaction and average transaction values, return rates; and
Customer-centric metrics such as customer satisfaction, customer retention and acquisition, and certain metrics related 
to the loyalty programs.

•

•

While  not  all  of  these  metrics  are  disclosed  publicly  by  the  Company  due  to  the  proprietary  nature  of  the  information,  the 
Company discusses many of these metrics within this MD&A.

Abercrombie & Fitch Co.

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CURRENT TRENDS AND OUTLOOK

Focus Areas for Fiscal 2023

The  Company  remains  committed  to,  and  confident  in,  its  long-term  vision  of  being  a  digitally-led  global  omnichannel  apparel 
retailer and continues to evaluate opportunities to make progress toward initiatives that support this vision.

During the second quarter of Fiscal 2022, the Company announced its Always Forward Plan, which outlines the Company’s long-
term strategy and goals, including growing shareholder value. The Always Forward Plan is anchored on three strategic growth 
principles, which are to:

•
•
•

Execute focused brand growth plans;
Accelerate an enterprise-wide digital revolution; and
Operate with financial discipline.

The following focus areas for Fiscal 2023 serve as a framework for the Company achieving sustainable growth and progressing 
toward the Always Forward Plan:

•

•

•

Execute brand growth plans

•
•
•

Drive Abercrombie brands through marketing and store investment;
Optimize the Hollister product and brand voice to enable second half growth; and
Support Gilly Hicks growth with an evolved assortment mix

Accelerate an enterprise-wide digital revolution

•
•
•

Complete current phase of our modernization efforts around key data platforms;
Continue to progress on our multi-year ERP transformation and cloud migration journey; and 
Improve our digital and app experience across key parts of the customer journey

Operate with financial discipline

• Maintain appropriately lean inventory levels that put Abercrombie and Hollister in a position to chase inventory 

throughout the year; and
Properly balance investments, inflation and efficiency efforts to improve profitability

•

Supply Chain Disruptions, Impact of Inflation and COVID-19

The current economic environment remained challenging in Fiscal 2022. The COVID-19 pandemic and its effects on the global 
economy continued to impact the Company’s operations in Fiscal 2022, including through temporary store closures. While trends 
in the severity of new cases of COVID-19 in the U.S. improved throughout Fiscal 2022, caseloads have periodically increased in 
certain  global  regions,  most  notably,  in  the APAC  region  in  conjunction  with  the  easing  of  strict  lockdowns  and  zero-tolerance 
policy shutdowns in China. 

In addition, while the direct impacts of the COVID-19 pandemic have shown signs of abatement, the Company has experienced 
various  other  adverse  impacts  in  the  current  economic  environment,  including  supply  chain  disruptions,  inflationary  pressures 
including higher freight and labor costs, labor shortages, and weak store traffic.  

During  the  latter  half  of  Fiscal  2021,  the  Company  increased  its  air  freight  usage  in  response  to  inventory  delays  imposed  by 
temporary  factory  closures  in  Vietnam.  This  disruption  and  the  associated  increased  costs  adversely  impacted  the  Company 
through Fiscal 2022. To mitigate supply chain constraints and higher freight rates, the Company took certain mitigating actions in 
early Fiscal 2022 that included scheduling earlier inventory receipts to allow for longer lead times, expanding its number of freight 
vendors,  and  reducing  air  freight  usage  where  appropriate.  Freight  costs  began  to  stabilize  in  the  latter  half  of  Fiscal  2022 
compared with the elevated air freight rates and usage in 2021. While freight costs are stabilizing and supply chain constraints 
are waning, further mitigating actions may be needed in Fiscal 2023, particularly if supply chain constraints and/or transportation 
delays begin to reappear. 

The Company has also experienced significant inflationary pressures with respect to labor, cotton and other raw materials and 
other costs. Inflation can have a long-term impact on the Company because increasing costs may impact its ability to maintain 
satisfactory margins. The Company may be unsuccessful in passing these increased costs on to the customer through higher 
AUR. Furthermore, increases in inflation may not be matched by growth in consumer income, which also could have a negative 
impact on discretionary spending.  In periods of perceived or actual unfavorable economic conditions, consumers may reallocate 
available discretionary spending, which may adversely impact demand for our products.

The adverse consequences of the pandemic and of the current economic environment continue to impact the Company and may 
persist for some time.  The Company will continue to assess impacts on its operations and financial condition, and will respond 
as it deems appropriate.

For  further  information  about  how  changes  in  global  economic  and  financial  conditions  as  well  as  continued  impacts  from 
COVID-19 could impact our operations, refer to  “ITEM 1A. RISK FACTORS,” of this Annual Report on Form 10-K.

Abercrombie & Fitch Co.

29

2022 Form 10-K

Table of Contents

Inflation Reduction Act of 2022

On August  16,  2022,  the  Inflation  Reduction Act  was  signed  into  law,  with  tax  provisions  primarily  focused  on  implementing  a 
15%  corporate  minimum  tax  on  global  adjusted  financial  statement  income,  expected  to  become  applicable  to  the  Company 
beginning  in  Fiscal  2023,  and  a  1%  excise  tax  on  share  repurchases  in  tax  years  beginning  after  December  31,  2022.  The 
Company does not currently expect that the Inflation Reduction Act will have a material impact on its income taxes.

Global Store Network Optimization

The Company has a goal of opening smaller, omni-enabled stores that cater to local customers. The Company continues to use 
data  to  inform  its  focus  on  aligning  store  square  footage  with  digital  penetration  and  the  Company  delivered  new  store 
experiences across brands during Fiscal 2022 and Fiscal 2021. Details related to these new store experiences follow:

Type of new store experience

Fiscal 2022

Fiscal 2021

New stores

Remodels

Right-sizes

Total

59

1

8

68

38

2

5

45

For the first time in more than a decade, the Company was a net store opener for the year.  During Fiscal 2022, the Company 
opened  59  new  stores,  while  closing  26  stores.  Future  closures  could  be  completed  through  natural  lease  expirations,  while 
certain other leases include early termination options that can be exercised under specific conditions. The Company may also 
elect to exit or modify other leases, and could incur charges related to these actions. 

The  actions  taken  in  Fiscal  2022,  combined  with  ongoing  digital  sales  growth,  are  expected  to  continue  to  transform  the 
Company's operating model and position the Company for the future.

Additional details related to store count and gross square footage follow:

Hollister (1)

Abercrombie (2)

United States

International

United States

International

United States

Total Company (3)
International

Total

Number of stores:

January 29, 2022

New

Closed

January 28, 2023

351 

33 

(4) 

380 

154 

5 

(10) 

149 

173 

13 

(6) 

180 

Gross square footage (in thousands):

January 29, 2022

January 28, 2023

2,312 

2,425 

1,212 

1,154 

1,161 

1,152 

51 

8 

(6) 

53 

367 

337 

524 

46 

(10) 

560 

205 

13 

(16) 

202 

729 

59 

(26) 

762 

3,473 

3,577 

1,579 

1,491 

5,052 

5,068 

(1)

(2)

(3)

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  12  and  9  international  franchise  stores  as  of  January  28,  2023  and  January  29,  2022, 
respectively. Excludes 16 Company-operated temporary stores as of January 28, 2023 and 14 Company-operated temporary stores as of 
January 29, 2022. 
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 23 international franchise stores as of January 28, 2023 and 
14 international franchise stores as of January 29, 2022. Excludes three Company-operated temporary stores as of January 28, 2023 and 
five Company-operated temporary stores as of January 29, 2022.
This store count excludes one international third-party operated multi-brand outlet store as of January 28, 2023.

Impact of Global Events and Uncertainty

As a global multi-brand omnichannel specialty retailer, with operations in North America, Europe and Asia, among other regions 
management is mindful of macroeconomic risks, global challenges and the changing global geopolitical environment, including 
the ongoing conflict in Ukraine, which could adversely impact certain areas of the business. As a result management continues to 
monitor global events. The Company continues to assess the potential impacts that these events and similar events may have 
on the business in future periods and continues to develop and update contingency plans to assist in mitigating potential impacts. 
It is possible that the Company’s preparations for such events are not adequate to mitigate their impact, and that these events 
could further adversely affect its business and results of operations. For a discussion of material risks that have the potential to 
cause actual results to differ materially from expectations, refer to “ITEM 1A. RISK FACTORS,” included in this Annual Report on 
Form 10-K.

Abercrombie & Fitch Co.

30

2022 Form 10-K

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents

Summary of Results

A summary of results for Fiscal 2022 and Fiscal 2021 follows: 

(in thousands, except change in net sales, gross profit rate, operating 
income margin and per share amounts)

Fiscal 2022

Fiscal 2021

Fiscal 2022

Fiscal 2021

GAAP

Non-GAAP (1)

Net sales

Change in net sales from the prior fiscal year
Gross profit rate (2)

Operating income

Operating income margin
Net income attributable to A&F (3)
Net income per diluted share attributable to A&F (3)

$  3,697,751 

$  3,712,768 

 — %

 56.9 %

 19 %

 62.3 %

$ 

$ 

$ 

92,648 

$ 

343,084 

$ 

106,679 

$ 

355,184 

 2.5 %

 9.2 %

 2.9 %

 9.6 %

2,816 

0.05 

$ 

$ 

263,010 

4.20 

$ 

$ 

13,045 

0.25 

$ 

$ 

272,689 

4.35 

(1)

Refer to “RESULTS OF OPERATIONS” for details on excluded items. A reconciliation of each non-GAAP financial measure presented in this Annual 
Report on Form 10-K to the most directly comparable financial measure calculated in accordance with GAAP, as well as a discussion as to why the 
Company believes that these non-GAAP financial measures are useful to investors, is provided below under “NON-GAAP FINANCIAL MEASURES.”

(2)  Gross profit is derived from cost of sales, exclusive of depreciation and amortization.
(3)

Fiscal 2021 results include $42.5 million of tax benefits due to the release of valuation allowances as a result of the improvement seen in business 
conditions.  Refer to Note 11, “INCOME TAXES.”

Certain  components  of  the  Company’s  Consolidated  Balance  Sheets  as  of  January  28,  2023  and  January  29,  2022  and 
Consolidated Statements of Cash Flows for Fiscal 2022 and Fiscal 2021 were as follows:

(in thousands)

Balance Sheets data

Cash and equivalents

Gross borrowings outstanding, carrying amount

Inventories

Statements of Cash Flows data

Net cash (used for) provided by operating activities

Net cash used for investing activities
Net cash used for financing activities

January 28, 2023

January 29, 2022

$ 

$ 

517,602  $ 

299,730 

505,621 

Fiscal 2022

(2,343)  $ 

(140,675) 

(155,329) 

823,139 

307,730 

525,864 

Fiscal 2021
277,782 

(96,979) 

(446,898) 

Abercrombie & Fitch Co.

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2022 Form 10-K

 
 
 
 
 
 
 
 
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RESULTS OF OPERATIONS

The  estimated  basis  point  (“BPS”)  changes  disclosed  throughout  this  Results  of  Operations  have  been  rounded  based  on  the 
change in the percentage of net sales.

Net Sales

The Company’s net sales by operating segment for Fiscal 2022 and Fiscal 2021 were as follows: 

(in thousands)

Hollister

Abercrombie

Total Company

Fiscal 2022

Fiscal 2021

$ Change % Change

$  1,962,885  $  2,147,979  $ 

(185,094) 

  1,734,866 

  1,564,789 

170,077 

$  3,697,751  $  3,712,768  $ 

(15,017) 

(9)%

11%

0%

Net sales by geographic area are presented by attributing revenues on the basis of the country in which the merchandise was 
sold  for  in-store  purchases  and  the  shipping  location  provided  by  customers  for  digital  orders.  The  Company’s  net  sales  by 
geographic area for Fiscal 2022 and Fiscal 2021 were as follows:

(in thousands)

United States

EMEA

APAC
Other (1)

International

Total Company

Fiscal 2022

Fiscal 2021

$ Change % Change

$  2,758,294  $  2,652,158  $  106,136 

665,828 

122,367 

151,262 

755,072 

171,701 

133,837 

(89,244) 

(49,334) 

17,425 

4%

(12)%

(29)%

13%

$  939,457  $  1,060,610  $ 

(121,153) 

(11)%

$  3,697,751  $  3,712,768  $ 

(15,017) 

0%

(1) Other includes all sales that do not fall within the United States, EMEA, or APAC regions, which are derived primarily in Canada.

For Fiscal 2022, net sales were essentially flat as compared to Fiscal 2021, with a year-over year increase in AUR, offset by the 
adverse impact of foreign currency exchange rates. While sales in the United States grew 4% compared to Fiscal 2021, this was 
more than offset by an 11% decline in International, with continued softness in the APAC and EMEA regions.

Cost of Sales, Exclusive of Depreciation and Amortization 

(in thousands)

Fiscal 2022

Fiscal 2021

% of Net 
Sales

% of Net 
Sales

Cost of sales, exclusive of depreciation and amortization

$  1,593,213 

43.1%

$  1,400,773 

37.7%

BPS 
Change

540

For Fiscal 2022, cost of sales, exclusive of depreciation and amortization, as a percentage of net sales increased approximately 
540  basis  points  as  compared  to  Fiscal  2021. The  year-over-year increase  was  primarily  driven  by 520  basis  points  of  higher 
freight and raw material costs and 40 basis points from the adverse impact of exchange rates, partially offset by higher average 
unit retail.

Gross Profit, Exclusive of Depreciation and Amortization

Gross profit, exclusive of depreciation and amortization

$  2,104,538 

56.9%

$  2,311,995 

62.3%

Fiscal 2022

Fiscal 2021

% of Net 
Sales

% of Net 
Sales

BPS 
Change

(540)

Abercrombie & Fitch Co.

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2022 Form 10-K

 
 
 
 
 
 
 
 
 
 
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Stores and Distribution Expense

(in thousands)

Stores and distribution expense

Fiscal 2022

Fiscal 2021

% of Net 
Sales

% of Net 
Sales

$  1,482,931 

40.1%

$  1,428,323 

38.5%

BPS 
Change

160

For  Fiscal  2022,  stores  and  distribution  expense  increased  4%  as  compared  to  Fiscal  2021,  primarily  driven  by  a  $40  million 
increase  in  digital  fulfillment  expense,  reflecting  higher  shipping  and  handling  and  other  fulfillment  expenses,  including  costs 
associated with a new third-party fulfillment facility in the United States.

Marketing, General and Administrative Expense

(in thousands)

Fiscal 2022

Fiscal 2021

% of Net 
Sales

% of Net 
Sales

Marketing, general and administrative expense

$  517,602 

14.0%

$  536,815 

14.5%

BPS 
Change

(50)

For Fiscal 2022, marketing, general and administrative expense decreased 4% as compared to Fiscal 2021, primarily driven by a 
$26  million  reduction  in  marketing  and  advertising  expenses,  as  well  as  $26  million  in  lower  incentive-based  compensation.  
These  amounts  were  partially  offset  by  $23  million  in  higher  payroll  and  $6  million  in  higher  consulting  and  information 
technology expense. 

Asset Impairment

(in thousands)

Asset impairment

Excluded items:

Fiscal 2022

Fiscal 2021

% of Net 
Sales

% of Net 
Sales

$ 

14,031 

0.4%

$ 

12,100 

0.3%

Asset impairment charges (1)

(14,031) 

(0.4)%

(12,100) 

(0.3)%

Adjusted non-GAAP asset impairment, exclusive of flagship store 

exit charges

(1)  Refer to “NON-GAAP FINANCIAL MEASURES,” for further details.

$ 

— 

0.0%

$ 

— 

0.0%

Refer to Note 8, “ASSET IMPAIRMENT,” for further discussion. 

BPS 
Change

10

(10)

—

Other Operating Income, Net

(in thousands)

Other operating income, net

Fiscal 2022

Fiscal 2021

% of Net 
Sales

% of Net 
Sales

$ 

2,674 

0.1%

$ 

8,327 

0.2%

BPS 
Change

(10)

For  Fiscal  2022,  other  operating  income,  net,  decreased  as  compared  to  Fiscal  2021,  primarily  due  to  $5.9  million  foreign 
currency losses recognized in Fiscal 2022.

Operating Income

(in thousands)

Operating income

Excluded items:

Fiscal 2022

Fiscal 2021

% of Net 
Sales

% of Net 
Sales

$ 

92,648 

2.5%

$  343,084 

9.2%

Asset impairment charges (1)

Adjusted non-GAAP operating income

14,031 

$  106,679 

0.4%

2.9%

12,100 

$  355,184 

0.3%

9.6%

(1)  Refer to “NON-GAAP FINANCIAL MEASURES,” for further details.

BPS 
Change

(670)

10

(670)

Abercrombie & Fitch Co.

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Interest Expense, Net

(in thousands)

Interest expense

Interest income

Interest expense, net

Fiscal 2022

Fiscal 2021

% of Net 
Sales

% of Net 
Sales

BPS 
Change

$ 

30,236 

0.8%

$ 

37,958 

1.0%

(4,604) 

(0.1)%

(3,848) 

(0.1)%

$ 

25,632 

0.7%

$ 

34,110 

0.9%

(20)

—

(20)

For Fiscal 2022, interest expense, net, decreased 25% primarily driven by lower interest paid on a lower average outstanding 
balance in Fiscal 2022 resulting from current year and prior year debt repurchases, as compared to Fiscal 2021.

Income Tax Expense

(in thousands, except ratios)

Income tax expense

Excluded items:

Tax effect of pre-tax excluded items (1)

Adjusted non-GAAP income tax expense

Fiscal 2022

Fiscal 2021

Effective Tax 
Rate

Effective Tax 
Rate

$ 

56,631 

84.5%

$ 

38,908 

12.6%

3,802 

60,433 

$ 

74.6%

$ 

2,421 

41,329 

12.9%

(1)  Refer to “Operating Income” for details of pre-tax excluded items. The tax effect of pre-tax excluded items is the difference between the tax provision 

calculation on a GAAP basis and an adjusted non-GAAP basis. Refer to “NON-GAAP FINANCIAL MEASURES” for further details.

During  Fiscal  2022,  the  Company  did  not  recognize  income  tax  benefits  on  $136.5  million  of  pre-tax  losses,  primarily  in 
Switzerland, resulting in adverse tax impacts of $20.0 million.  The primary driver relates to lower sales volume, higher AUC and 
overall expense deleverage within the APAC and EMEA regions.      

During Fiscal 2021, as a result of the improvement seen in business conditions, the Company recognized $42.5 million of tax 
benefits due to the release of valuation allowances, primarily in the U.S. and Germany, and a discrete tax benefit of $3.9 million 
due  to  a  rate  change  in  the  U.K.  The  Company  did  not  recognize  income  tax  benefits  on  $25.3  million  of  pre-tax  losses 
generated in Fiscal 2021, primarily in Switzerland, resulting in adverse tax impacts of $4.6 million

Refer  to  Note  11,  “INCOME  TAXES,”  for  further  discussion  on  factors  that  impacted  the  effective  tax  rate  in  Fiscal  2022  and 
Fiscal 2021.

Net Income Attributable to A&F

(in thousands)

Net income attributable to A&F
Excluded items, net of tax (1)

Adjusted non-GAAP net income attributable to A&F (2)

Fiscal 2022

Fiscal 2021

% of Net 
Sales

0.1%

0.3%

0.4%

$ 

2,816 

10,229 

$ 

13,045 

% of Net 
Sales

BPS 
Change

$  263,010 

9,679 

$  272,689 

7.1%

0.3%

7.3%

(700)

—

(690)

(1) 

Excludes items presented above under “Operating Income,” and “Income Tax Expense.”

Net Income Per Diluted Share Attributable to A&F

Net income per diluted share attributable to A&F

Excluded items, net of tax (1)

Adjusted non-GAAP net income per diluted share attributable to A&F

Impact from changes in foreign currency exchange rates

Fiscal 2022

Fiscal 2021

$ Change

$ 

$ 

0.05  $ 

0.20 

0.25  $ 

4.20 

0.15 

4.35 

$(4.15)

0.05

$(4.10)

— 

(0.36) 

0.36

Adjusted non-GAAP net income per diluted share attributable to A&F on a constant currency basis(2) $ 

0.25  $ 

3.99 

$(3.74)

(1)  Excludes items presented above under “Operating Income,” and “Income Tax Expense.”
(2)  Refer to “NON-GAAP FINANCIAL MEASURES,” for further details.

Abercrombie & Fitch Co.

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LIQUIDITY AND CAPITAL RESOURCES

Overview

The  Company’s  capital  allocation  strategy,  priorities  and  investments  are  reviewed  by  the  Board  of  Directors  considering  both 
liquidity and valuation factors. The Company believes that it will have adequate liquidity to fund operating activities over the next 
twelve  months.  The  Company  monitors  financing  market  conditions  and  may  in  the  future  determine  whether  and  when  to 
amend, modify, or restructure its ABL Facility and/or Senior Secured Notes. For a discussion of the Company’s share repurchase 
activity and suspended dividend program, please see below under “Share repurchases and dividends.”

Primary Sources and Uses of Cash

The Company’s business has two principal selling seasons: Spring and Fall. The Company experiences its greatest sales activity 
during  Fall,  due  to  back-to-school  and  holiday  sales  periods.  The  Company  relies  on  excess  operating  cash  flows,  which  are 
largely generated in Fall, to fund operations throughout the year and to reinvest in the business to support future growth. The 
Company also has the ABL Facility available as a source of additional funding, which is described further below under “Credit 
Facility and Senior Secured Notes”.

Over the next twelve months, the Company expects its primary cash requirements to be directed towards prioritizing investments 
in  the  business,  including  the  modernization  of  our  retail  merchandising  systems,  and  continuing  to  fund  operating  activities, 
including  the  acquisition  of  inventory,  and  obligations  related  to  compensation,  marketing,  leases  and  any  lease  buyouts  or 
modifications it may exercise, taxes and other operating activities. 

The Company evaluates opportunities for investments in the business that are in line with initiatives that position the business for 
sustainable long-term growth that align with its strategic pillars as described within “ITEM 1. BUSINESS - STRATEGY AND KEY 
BUSINESS PRIORITIES”. Examples of potential investment opportunities include, but are not limited to, new store experiences , 
and continued investments in its digital and omnichannel initiatives. Historically, the Company has utilized cash flow generated 
from operations to fund any discretionary capital expenditures, which have been prioritized towards new store experiences, as 
well  as  digital  and  omnichannel  investments,  information  technology,  and  other  projects.  For  Fiscal 2022,  the  Company  used 
$164.6  million  towards  capital  expenditures,  up  from  $97.0  million  of  capital  expenditures  in  Fiscal  2021.  Total  capital 
expenditures for Fiscal 2023 are expected to be approximately $160 million.

Share Repurchases and Dividends

In  November  2021,  the  Board  of  Directors  approved  a  $500  million  share  repurchase  authorization,  replacing  the  prior  2021 
share  repurchase  authorization  of  10.0  million  shares,  which  had  approximately  3.9  million  shares  remaining  available.  During 
Fiscal 2022, the Company repurchased 4.8 million shares for approximately $126 million. 

Historically, the Company has repurchased shares of its Common Stock, from time to time, dependent on market and business 
conditions, with the objectives of returning excess cash to shareholders and offsetting dilution from issuances of Common Stock 
associated  with  the  exercise  of  employee  stock  appreciation  rights  and  the  vesting  of  restricted  stock  units.    Shares  may  be 
repurchased  in  the  open  market,  including  pursuant  to  any  trading  plans  established  in  accordance  with  Rule  10b5-1  of  the 
Exchange Act,  through  privately  negotiated  transactions  or  other  transactions  or  by  a  combination  of  such  methods.  Refer  to 
“ITEM  5.  MARKET  FOR  REGISTRANT’S  COMMON  EQUITY,  RELATED  STOCKHOLDER  MATTERS  AND  ISSUER 
PURCHASES OF EQUITY SECURITIES” of this Annual Report on Form 10-K for the amount remaining available for repurchase 
under the Company’s publicly announced stock repurchase authorization. 

In  May  2020,  the  Company  announced  that  it  had suspended  its  dividend  program  in  order  to  preserve  liquidity  and  maintain 
financial flexibility in light of the COVID-19 pandemic. The Company may in the future review its dividend program to determine, 
in light of facts and circumstances at that time, whether and when to reinstate. Any dividends are declared at the discretion of the 
Board  of  Directors.  The  Board  of  Directors  reviews  and  establishes  a  dividend  amount,  if  at  all,  based  on  A&F’s  financial 
condition,  results  of  operations,  capital  requirements,  current  and  projected  cash  flows,  business  prospects  and  other  factors, 
including any restrictions under the Company’s agreements related to the Senior Secured Notes and the ABL Facility. There can 
be  no  assurance  that  the  Company  will  declare  and  pay  dividends  in  the  future  or,  if  dividends  are  paid,  that  they  will  be  in 
amounts similar to past dividends.

Abercrombie & Fitch Co.

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Credit Facility and Senior Secured Notes

During Fiscal 2022, A&F Management purchased $8.0 million of outstanding Senior Secured Notes and incurred a $0.1 million 
gain  on  extinguishment  of  debt,  recognized  in  interest  expense,  net  on  the  Consolidated  Statements  of  Operations  and 
Comprehensive  (Loss)  Income.  As  of  January  28,  2023,  the  Company  had  $299.7  million  of  gross  indebtedness  outstanding 
under the Senior Secured Notes. 

In  addition,  the Amended  and  Restated  Credit Agreement  continues  to  provide  for  the ABL  Facility,  which  is  a  senior  secured 
asset-based revolving credit facility of up to $400 million.  On March 15, 2023, the Company entered into the First Amendment to 
the Amended and Restated Credit Agreement to eliminate LIBO rate based loans and to use the current market definitions with 
respect to the Secured Overnight Financing Rate (“SOFR”)”, as well as to make other conforming changes.

The Company did not have any borrowings outstanding under the ABL Facility as of January 28, 2023 or as of January 29, 2022.

Details regarding the remaining borrowing capacity under the ABL Facility as of January 28, 2023 follow:

(in thousands)
Loan cap

Less: Outstanding stand-by letters of credit

Borrowing capacity
Less: Minimum excess availability (1) 
Borrowing capacity available

January 28, 2023

387,425 

(602) 

386,823 

(38,743) 

348,080 

$ 

$ 

(1)  The Company must maintain excess availability equal to the greater of 10% of the loan cap or $30 million under the ABL Facility.

Refer to  Note 12, “BORROWINGS,” for additional information.

Income Taxes

The  Company’s  earnings  and  profits  from  its  foreign  subsidiaries could  be  repatriated  to  the  U.S.,  without  incurring  additional 
U.S. federal income tax. The Company determined that the balance of the Company’s undistributed earnings and profits from its 
foreign subsidiaries as of February 2, 2019 are considered indefinitely reinvested outside of the U.S., and if these funds were to 
be  repatriated  to  the  U.S.,  the  Company  would  expect  to  incur  an  insignificant  amount  of  state  income  taxes  and  foreign 
withholding taxes. The Company accrues for both state income taxes and foreign withholding taxes with respect to earnings and 
profits  earned  after  February  2,  2019,  in  such  a  manner  that  these  funds  may  be  repatriated  without  incurring  additional  tax 
expense.

As of January 28, 2023, $226.5 million of the Company’s $517.6 million of cash and equivalents were held by foreign affiliates. 

Refer to Note 11, “INCOME TAXES,” for additional details regarding the impact certain events related to the Company’s income 
taxes had on the Company’s Consolidated Financial Statements.

Analysis of Cash Flows

The  table  below  provides  certain  components  of  the  Company’s  Consolidated  Statements  of  Cash  Flows  for Fiscal  2022  and 
Fiscal 2021: 

(in thousands)
Cash and equivalents, and restricted cash and equivalents, beginning of period

Fiscal 2022

$ 

834,368  $ 

Fiscal 2021
1,124,157 

Net cash (used for) provided by operating activities

Net cash used for investing activities

Net cash used for financing activities

Effects of foreign currency exchange rate changes on cash

Net decrease in cash and equivalents, and restricted cash and equivalents

Cash and equivalents, and restricted cash and equivalents, end of period

(2,343) 

(140,675) 

(155,329) 

(8,452) 

$ 
$ 

(306,799)  $ 
527,569  $ 

277,782 

(96,979) 

(446,898) 

(23,694) 

(289,789) 
834,368 

Operating activities - For Fiscal 2022 net cash used for operating activities included the acquisition of inventory and increased 
payments  to  vendors,  including  additional  rent  payments  made  during  the  period  due  to  fiscal  calendar  shifting  relative  to 
monthly rent due dates. 

Investing  activities  - For  Fiscal  2022,  net  cash  used  for  investing  activities  was  primarily  attributable  to  capital  expenditures  of 
$164.6 million, partially offset by the proceeds from the withdrawal of $12.0 million of excess funds from Rabbi Trust assets and 
the  sale  of  property  and  equipment  of  $11.9  million,  as  compared  to  net  cash  used  for  investing  activities  of  $97.0  million  in 
Fiscal 2021, primarily attributable to capital expenditures.

Abercrombie & Fitch Co.

36

2022 Form 10-K

 
 
 
 
 
 
 
 
 
 
 
Table of Contents

Financing  activities  -  For  Fiscal  2022,  net  cash  used  for  financing  activities  primarily  consisted  of  the  repurchase  of 
approximately 4.8 million shares of Common Stock in the open market with a market value of approximately $126 million, as well 
as the purchase of $8.0 million of outstanding Senior Secured Notes at a slight discount to par. For Fiscal 2021, net cash used 
for financing activities primarily consisted of the repurchase of approximately 10.2 million shares of Common Stock in the open 
market with a market value of approximately $377 million. In addition, the Company purchased $42.3 million of its outstanding 
Senior Secured Notes at a premium of $4.7 million.

Contractual Obligations

As of January 28, 2023, the Company’s contractual obligations were as follows: 

(in thousands)
Operating lease obligations (1)
Purchase obligations (2)
Long-term debt obligations (3)
Other obligations (4)

Total

Less than 1 year

1-3 years

3-5 years

More than 5 years

$ 

1,084,674  $ 

263,666  $ 

379,625  $ 

270,251  $ 

171,132 

Payments due by period

233,623 

299,730 

158,992 

194,248 

— 

50,053 

26,353 

299,730 

61,320 

4,222 

— 

20,745 

8,800 

— 

26,874 

206,806 

Total

$ 

1,777,019  $ 

507,967  $ 

767,028  $ 

295,218  $ 

(1)

(2)

(3)

(4)

Operating  lease  obligations  consist  of  the  Company’s  future  undiscounted  operating  lease  payments,  including  future  fixed  lease  payments 
associated with closed flagship stores. Operating lease obligations do not include 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. 
Total variable lease cost was $150.9 million in Fiscal 2022. Refer to Note 2, “SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases,” and 
Note 7, “LEASES,” for further discussion. 

Purchase obligations primarily consist of non-cancelable purchase orders for merchandise to be delivered during Fiscal 2023 and commitments for 
fabric expected to be used during upcoming seasons. In addition, purchase obligations include agreements to purchase goods or services, including, 
but not limited to, information technology, digital and marketing contracts, as well as estimated obligations related to the Company’s 13-year, 100% 
renewable energy supply agreement for its global home office and Company-owned distribution centers.

Long-term debt obligations consist of principal payments under the Senior Secured Notes. Refer to Note 12, “BORROWINGS,” for further discussion.

Other  obligations  consists  of:  interest  payments  related  to  the  Senior  Secured  Notes  assuming  normally  scheduled  principal  payments;  estimated 
asset retirement obligations; known and scheduled payments related to the Company’s deferred compensation and supplemental retirement plans; 
tax payments associated with the provisional, mandatory one-time deemed repatriation tax on accumulated foreign earnings, net payable over eight 
years pursuant to the The Tax Cuts and Jobs Act; and minimum contractual obligations related to leases signed but not yet commenced, primarily 
related to the Company’s stores. Refer to Note 7, “LEASES,” Note 11, “INCOME TAXES,” Note 12, “BORROWINGS,” and Note 16, “SAVINGS AND 
RETIREMENT PLANS,” for further discussion. 

Due  to  uncertainty  as  to  the  amounts  and  timing  of  future  payments,  tax  related  to  uncertain  tax  positions,  including  accrued 
interest and penalties, of $2.5 million as of January 28, 2023 is excluded from the contractual obligations table. Deferred taxes 
are also excluded in the contractual obligations table. For further discussion, refer to Note 11, “INCOME TAXES.” 

As  of  January  28,  2023,  the  Company  had  recorded  $3.8  million  and  $41.3  million  of  obligations  related  to  its  deferred 
compensation and supplemental retirement plans in accrued expenses and other liabilities on the Consolidated Balance Sheet, 
respectively. Amounts  payable  with  known  payment  dates  of  $15.4  million  have  been  classified  in  the  contractual  obligations 
table based on those scheduled payment dates. However, it is not reasonably practicable to estimate the timing and amounts for 
the remainder of these obligations, therefore, those amounts have been excluded in the contractual obligations table.

A&F had historically paid quarterly dividends on Common Stock prior to the suspension of the dividend program in May 2020. 
Because the dividend program remains suspended and the payment of future dividends is subject to determination and approval 
by the Board of Directors, there are no amounts included in the contractual obligations table related to dividends. 

RECENT ACCOUNTING PRONOUNCEMENTS

The Company describes its significant accounting policies in Note 2, “SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 
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 Company’s consolidated financial statements.

Abercrombie & Fitch Co.

37

2022 Form 10-K

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents

CRITICAL ACCOUNTING ESTIMATES

The  Company’s  discussion  and  analysis  of  its  financial  condition  and  results  of  operations  are  based  upon  the  Company’s 
consolidated financial statements which have been prepared in accordance with GAAP. The preparation of these consolidated 
financial statements requires the Company to make estimates and assumptions that affect the reported amounts. Since actual 
results  may  differ  from  those  estimates,  the  Company  revises  its  estimates  and  assumptions  as  new  information  becomes 
available. Note 2, “SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,” describes the significant accounting policies and 
methods used in the preparation of the Company’s consolidated financial statements. The estimates and assumptions discussed 
below  include  those  that  the  Company  believes  are  the  most  critical  to  the  portrayal  of  the  Company’s  financial  condition  and 
results of operations. 
Policy
Inventory Valuation
The Company reviews inventories on a quarterly basis. The Company reduces the 
inventory  valuation  when  the  carrying  cost  of  specific  inventory  items  on  hand 
exceeds the amount expected to be realized from the ultimate sale or disposal of 
the goods, through a lower of cost and net realizable value (“LCNRV”) adjustment.

The  Company  does  not  expect  material  changes  to  the 
underlying  assumptions  used  to  measure  the  LCNRV 
estimate as of January 28, 2023. However, actual results 
could  vary  from  estimates  and  could  significantly  impact 
the  ending  inventory  valuation  at  cost,  as  well  as  gross 
profit.

Effect if Actual Results Differ from Assumptions

The LCNRV adjustment reduces inventory to its net realizable value based on the 
Company’s  consideration  of  multiple  factors  and  assumptions,    expected  sell-off 
activity, composition and aging of inventory, historical recoverability experience and 
risk  of  obsolescence 
in  economic  conditions  or  customer 
preferences.

from  changes 

Income Taxes

The  provision  for  income  taxes  is  determined  using  the  asset  and  liability 
approach.  Tax  laws  often  require  items  to  be  included  in  tax  filings  at  different 
times  than  the  items  are  being  reflected  in  the  financial  statements.  A  current 
liability is recognized for the estimated taxes payable for the current year. Deferred 
taxes represent the future tax consequences expected to occur when the reported 
amounts  of  assets  and  liabilities  are  recovered  or  paid.  Deferred  taxes  are 
adjusted for enacted changes in tax rates and tax laws. Valuation allowances are 
recorded  to  reduce  deferred  tax  assets  when  it  is  more  likely  than  not  that  a  tax 
benefit will not be realized.

lease  right-of-use  assets, 

Long-lived Assets
Long-lived  assets,  primarily  operating 
leasehold 
improvements,  furniture,  fixtures  and  equipment,  are  tested  for  recoverability 
whenever events or changes in circumstances indicate that the carrying amount of 
the  long-lived  asset  group  might  not  be  recoverable.  These  include,  but  are  not 
limited  to,  material  declines  in  operational  performance,  a  history  of  losses,  an 
expectation  of  future  losses,  adverse  market  conditions  and  store  closure  or 
relocation  decisions.  On  at  least  a  quarterly  basis,  the  Company  reviews  for 
indicators  of  impairment  at  the  individual  store  level,  the  lowest  level  for  which 
cash flows are identifiable.

Stores  that  display  an  indicator  of  impairment  are  subjected  to  an  impairment 
assessment.  The  Company’s  impairment  assessment  requires  management  to 
make  assumptions  and  judgments  related,  but  not  limited,  to  management’s 
expectations  for  future  operations  and  projected  cash  flows. The  key  assumption 
used  in  the  Company’s  undiscounted  future  store  cash  flow  models  is  estimated 
sales growth rate.

An impairment loss may be recognized when these undiscounted future cash flows 
are  less  than  the  carrying  amount  of  the  asset  group.  In  the  circumstance  of 
impairment, any loss would be measured as the excess of the carrying amount of 
the  asset  group  over  its  fair  value.  Fair  value  of  the  Company’s  store-related 
assets  is  determined  at  the  individual  store  level  based  on  the  highest  and  best 
use  of  the  asset  group.  The  key  assumptions  used  in  the  Company’s  fair  value 
analysis are estimated sales growth and comparable market rents. 

An  increase  or  decrease  in  the  LCNRV  adjustment  of 
10%  would  have  affected  pre-tax  loss  by  approximately 
$3.6 million for Fiscal 2022.

in 

interpretations  used 

The  Company  does  not  expect  material  changes  in  the 
judgments,  assumptions  or 
to 
calculate  the  tax  provision  for  Fiscal  2023.  However, 
changes 
or 
interpretations  may  occur  and  should  those  changes  be 
significant,  they  could  have  a  material  impact  on  the 
Company’s  income  tax  provision. As  of  the  end  of  Fiscal 
2022, the Company had recorded valuation allowances of                                                                                                          
$130.6 million

assumptions 

judgments, 

these 

Store  assets  that  were  tested  for  impairment  as  of 
January 28, 2023 and not impaired, had long-lived assets 
with  a  net  book  value  of  $69.2  million,  which  included 
$54.5  million  of  operating  lease  right-of-use  assets  as  of 
January 28, 2023.

that  were  previously 

Store  assets 
impaired  as  of 
January  28,  2023,  had  a  remaining  net  book  value  of 
$68.4  million,  which  included  $62.3  million  of  operating 
lease right-of-use assets, as of January 28, 2023.

If actual results are not consistent with the estimates and 
assumptions used in assessing impairment or measuring 
impairment losses, there may be a material impact on the 
Company’s financial condition or results of operation.

Abercrombie & Fitch Co.

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2022 Form 10-K

Table of Contents

NON-GAAP FINANCIAL MEASURES

This Annual Report on Form 10-K includes discussion of certain financial measures on both a GAAP and a non-GAAP basis. The 
Company believes that each of the non-GAAP financial measures presented in this “ITEM 7. MANAGEMENT’S DISCUSSION 
AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND  RESULTS  OF  OPERATIONS”  is  useful  to  investors  as  it  provides  a 
meaningful  basis  to  evaluate  the  Company’s  operating  performance  excluding  the  effect  of  certain  items  that  the  Company 
believes do not reflect its future operating outlook, such as certain asset impairment charges, 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. These 
non-GAAP financial measures should be used as a supplement 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.
Excluded Items

The following financial measures are disclosed on a GAAP basis and on an adjusted non-GAAP basis excluding the following 
items, as applicable:

Financial measures (1)
Asset impairment

Operating income (loss)
Income tax expense (2)
Net income (loss) and net income (loss) per share attributable to A&F (2)

Excluded items
Certain asset impairment charges

Certain asset impairment charges

Tax effect of pre-tax excluded items

Pre-tax excluded items and the tax effect of pre-tax excluded items

(1)  Certain of these financial measures are also expressed as a percentage of net sales. 
(2) 

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

Abercrombie & Fitch Co.

39

2022 Form 10-K

Table of Contents

Financial Information on a Constant Currency Basis

The  Company  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. 
Management also uses financial information on a constant currency basis to award employee performance-based compensation. 
The effect from foreign currency exchange rates, calculated on a constant currency basis, is determined by applying the current 
period’s foreign currency exchange rates to the prior year’s results and is net of the year-over-year impact from hedging. The per 
diluted share effect from foreign currency exchange rates is calculated using a 26% effective tax rate. 

A reconciliation of financial metrics on a constant currency basis to GAAP for Fiscal 2022 and Fiscal 2021 is as follows: 

(in thousands, except change in net sales, gross profit rate, operating margin 
and per share data)

Net sales

GAAP

Impact from changes in foreign currency exchange rates

Net sales on a constant currency basis

Gross profit

GAAP 

Impact from changes in foreign currency exchange rates

Gross profit on a constant currency basis

Operating income

GAAP 
Excluded items (2)

Adjusted non-GAAP 

Impact from changes in foreign currency exchange rates

Adjusted non-GAAP on a constant currency basis

Net income per diluted share attributable to A&F

GAAP 
Excluded items, net of tax (2)

Adjusted non-GAAP 

Impact from changes in foreign currency exchange rates

Adjusted non-GAAP on a constant currency basis

Fiscal 2022

Fiscal 2021

% Change

3,697,751  $ 

3,712,768 

— 

(81,803) 

3,697,751  $ 

3,630,965 

0%

2%

2%

Fiscal 2022

Fiscal 2021

BPS Change (1)

2,104,538  $ 

2,311,995 

— 

(66,846) 

2,104,538  $ 

2,245,149 

(540)

40

(490)

Fiscal 2022

Fiscal 2021

BPS Change (1)

92,648  $ 

(14,031) 

106,679  $ 

— 

106,679  $ 

343,084 

(12,100) 

355,184 

(30,130) 

325,054 

(670)

0

(670)

60

(610)

Fiscal 2022

Fiscal 2021

$ Change

0.05  $ 

(0.20) 

0.25  $ 

— 

0.25  $ 

4.20 

(0.15) 

4.35 

(0.36) 

3.99 

$(4.15)

(0.05)

$(4.10)

0.36

$(3.74)

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

The estimated basis point change has been rounded based on the percentage of net sales change.

(1) 
(2)  Refer to “RESULTS OF OPERATIONS,” for details on excluded items. The tax effect of excluded items is calculated as the difference between the 

tax provision on a GAAP basis and an adjusted non-GAAP basis.

Abercrombie & Fitch Co.

40

2022 Form 10-K

 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

INVESTMENT SECURITIES

The  Company  maintains  its  cash  equivalents  in  financial  instruments,  primarily  money  market  funds  and  time  deposits,  with 
original maturities of three months or less. Due to the short-term nature of these instruments, changes in interest rates are not 
expected to materially affect the fair value of these financial instruments.

Refer to Note 9, “RABBI TRUST ASSETS,” of the Notes to Consolidated Financial Statements included in “ITEM 8. FINANCIAL 
STATEMENTS AND SUPPLEMENTARY DATA” of this Annual Report on Form 10-K for a discussion of the Company’s Rabbi 
Trust assets.

INTEREST RATE RISK

Prior to July 2, 2020, our exposure to market risk due to changes in interest rates related primarily to the increase or decrease in 
the amount of interest expense from fluctuations in the LIBO rate, or an alternate base rate associated with the ABL Facility and 
the Company’s prior term loan facility. On July 2, 2020, the Company issued the Senior Secured Notes due in 2025 with a 8.75% 
fixed interest rate per annum and repaid all outstanding borrowings under the ABL Facility and its prior term loan facility, thereby 
eliminating any then existing cash flow market risk due to changes in interest rates. The Senior Secured Notes are exposed to 
interest  rate  risk  that  is  limited  to  changes  in  fair  value.  This  analysis  for  Fiscal  2023  may  differ  from  actual  results  due  to 
potential  changes  in  gross  borrowings  outstanding  under  the  ABL  Facility  and  potential  changes  in  interest  rate  terms  and 
limitations described within the associated credit agreement.

In July 2017, the Financial Conduct Authority (the authority that regulates LIBO rate) announced it intended to stop compelling 
banks to submit rates for the calculation of LIBO rate after 2021. Certain publications of the LIBO rate were phased out at the 
end of 2021 and all LIBO rate publications will cease after June 30, 2023. The transition from the LIBO rate to alternative rates is 
not expected to have a material impact on the Company’s interest expense. On March 15, 2023, the Company entered into the 
First Amendment  to  the Amended  and  Restated  Credit Agreement  to  eliminate  LIBO  rate  based  loans  and  to  use  the  current 
market  definitions  with  respect  to  the  Secured  Overnight  Financing  Rate  (“SOFR”),  as  well  as  to  make  other  conforming 
changes. 

FOREIGN CURRENCY EXCHANGE RATE RISK

A&F’s  international  subsidiaries  generally  operate  with  functional  currencies  other  than  the  U.S.  Dollar.  Since  the  Company’s  
Consolidated Financial Statements are presented in U.S. dollars, the Company must translate all components of these financial 
statements from functional currencies into U.S. dollars at exchange rates in effect during or at the end of the reporting period. 
The  fluctuation  in  the  value  of  the  U.S.  dollar  against  other  currencies  affects  the  reported  amounts  of  revenues,  expenses, 
assets  and  liabilities. The  potential  impact  of  foreign  currency  exchange  rate  fluctuations  increases  as  international  operations 
relative to domestic operations increase.

A&F  and  its  subsidiaries  have  exposure  to  changes  in  foreign  currency  exchange  rates  associated  with  foreign  currency 
transactions and forecasted foreign currency transactions, including the purchase of inventory between subsidiaries and foreign-
currency-denominated  assets  and  liabilities.  The  Company  has  established  a  program  that  primarily  utilizes  foreign  currency 
exchange  forward  contracts  to  partially  offset  the  risks  associated  with  the  effects  of  certain  foreign  currency  transactions  and 
forecasted transactions. Under this program, increases or decreases in foreign currency exchange rate exposures are partially 
offset by gains or losses on foreign currency exchange forward contracts, to mitigate the impact of foreign currency exchange 
gains or losses. The Company does not use forward contracts to engage in currency speculation. Outstanding foreign currency 
exchange forward contracts are recorded at fair value at the end of each fiscal period.

Foreign  currency  exchange  forward  contracts  are  sensitive  to  changes  in  foreign  currency  exchange  rates.  The  Company 
assessed the risk of loss in fair values from the effect of a hypothetical 10% devaluation of the U.S. dollar against the exchange 
rates for foreign currencies under forward contracts. Such a hypothetical devaluation would decrease derivative instrument fair 
values by approximately $15.3 million. As the Company’s foreign currency exchange forward contracts are primarily designated 
as cash flow hedges of forecasted transactions, the hypothetical change in fair values would be expected to be largely offset by 
the  net  change  in  fair  values  of  the  underlying  hedged  items.  Refer  to  Note  14,  “DERIVATIVE  INSTRUMENTS,”  included  in 
“ITEM  8.  FINANCIAL  STATEMENTS AND  SUPPLEMENTARY  DATA”  of  this Annual  Report  on  Form  10-K  for  the  fair  value  of 
outstanding  foreign  currency  exchange  forward  contracts  included  in  other  current  assets  and  accrued  expenses  as  of 
January 28, 2023 and January 29, 2022.

For a detailed discussion of material risk factors that have the potential to cause our actual results to differ materially from our 
expectations, refer to “ITEM 1A. RISK FACTORS,” included in this Annual Report on Form 10-K.

Abercrombie & Fitch Co.

41

2022 Form 10-K

Table of Contents

Item 8. Financial Statements and Supplementary Data

Abercrombie & Fitch Co.
Consolidated Statements of Operations and Comprehensive (Loss) Income
(Thousands, except per share amounts)

Net sales

Cost of sales, exclusive of depreciation and amortization

Gross profit

Stores and distribution expense

Marketing, general and administrative expense

Asset impairment

Other operating Income, net

Operating income (loss)

Interest expense, net

Income (loss) before income taxes

Income tax expense

Net income (loss)

Less: Net income attributable to noncontrolling interests

Net income (loss) attributable to A&F

Net income (loss) per share attributable to A&F

Basic

Diluted

Weighted-average shares outstanding

Basic

Diluted

Other comprehensive (loss) income

Foreign currency translation, net of tax

Derivative financial instruments, net of tax

Other comprehensive (loss) income

Comprehensive (loss) income

Less: Comprehensive income attributable to noncontrolling interests

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

3,697,751  $ 

3,712,768  $ 

3,125,384 

1,593,213 

2,104,538 

1,482,931 

517,602 

14,031 

(2,674) 

92,648 

25,632 

67,016 

56,631 

10,385 

7,569 

1,400,773 

2,311,995 

1,428,323 

536,815 

12,100 

(8,327) 

343,084 

34,110 

308,974 

38,908 

270,066 

7,056 

1,234,179 

1,891,205 

1,379,948 

463,843 

72,937 

(5,054) 

(20,469) 

28,274 

(48,743) 

60,211 

(108,954) 

5,067 

2,816  $ 

263,010  $ 

(114,021) 

0.06  $ 

0.05  $ 

4.41  $ 

4.20  $ 

(1.82) 

(1.82) 

50,307 

52,327 

59,597 

62,636 

62,551 

62,551 

$ 

$ 

$ 

$ 

(11,964)  $ 

(22,917)  $ 

(10,857) 

(22,821) 

(12,436) 

7,569 

10,518 

(12,399) 

257,667 

7,056 

12,195 

(5,616) 

6,579 

(102,375) 

5,067 

Comprehensive (loss) income attributable to A&F

$ 

(20,005)  $ 

250,611  $ 

(107,442) 

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

Abercrombie & Fitch Co.

42

2022 Form 10-K

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents

Abercrombie & Fitch Co.
Consolidated Balance Sheets
(Thousands, except par value amounts)

Assets

Current assets:

Cash and equivalents

Receivables

Inventories

Other current assets

Total current assets

Property and equipment, net

Operating lease right-of-use assets

Other assets

Total assets

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

Accrued expenses

Short-term portion of operating lease liabilities

Income taxes payable

Total current liabilities

Long-term liabilities:

Long-term portion of operating lease liabilities

Long-term portion of borrowings, net

Other liabilities

Total long-term liabilities

Stockholders’ equity

Class A Common Stock - $0.01 par value: 150,000 shares authorized and 103,300 shares issued  

for all periods presented

Paid-in capital

Retained earnings

Accumulated other comprehensive loss, net of tax (“AOCL”)

Treasury stock, at average cost: 54,298 and 50,315 shares at January 28, 2023 and January 29, 

2022, respectively

Total A&F stockholders’ equity

Noncontrolling interests

Total stockholders’ equity

Total liabilities and stockholders’ equity

January 28, 2023

January 29, 2022

$ 

517,602  $ 

104,506 

505,621 

100,289 

823,139 

69,102 

525,864 

89,654 

1,228,018 

1,507,759 

551,585 

723,550 

209,947 

508,336 

698,231 

225,165 

$ 

2,713,100  $ 

2,939,491 

$ 

258,895  $ 

413,303 

213,979 

16,023 

902,200 

713,361 

296,852 

94,118 

374,829 

395,815 

222,823 

21,773 

1,015,240 

697,264 

303,574 

86,089 

1,104,331 

1,086,927 

1,033 

416,255 

2,368,815 

(137,527) 

1,033 

413,190 

2,386,156 

(114,706) 

(1,953,735) 

(1,859,583) 

694,841 

11,728 

706,569 

826,090 

11,234 

837,324 

$ 

2,713,100  $ 

2,939,491 

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

Abercrombie & Fitch Co.

43

2022 Form 10-K

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents

Abercrombie & Fitch Co.
Consolidated Statements of Stockholders’ Equity
(Thousands, except per share amounts)

Common Stock

Shares
outstanding

Par
value

Paid-in
capital

Non-
controlling 
interests

Retained
earnings

Treasury stock

AOCL

Shares

At average
cost

Total
stockholders’
equity

Balance, February 1, 2020

62,786  $ 1,033  $  404,983  $ 

12,368  $  2,313,745  $ 

(108,886)    40,514  $ (1,552,065)  $  1,071,178 

Net income (loss)

Purchase of common stock

Dividends ($0.28 per share)

Share-based compensation 
issuances and exercises

Share-based compensation 
expense

Derivative financial 
instruments, net of tax

Foreign currency translation 
adjustments, net of tax

Distributions to noncontrolling 
interests, net

—   

(1,397)   

—   

—   

—   

—   

—   

—   

—   

5,067   

(114,021)   

—   

—   

—   

(108,954) 

—   

—   

—   

—   

1,397   

(15,172)   

(15,172) 

(12,556)   

—   

—   

—   

(12,556) 

1,010   

—   

(22,382)   

—   

(37,698)   

—   

(1,010)   

54,386   

(5,694) 

—   

—   

18,682   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

18,682 

—   

(5,616)   

—   

—   

(5,616) 

—   

12,195   

—   

—   

12,195 

—   

—   

—   

(4,751)   

—   

—   

—   

—   

(4,751) 

Balance, January 30, 2021

62,399  $ 1,033  $  401,283  $ 

12,684  $  2,149,470  $ 

(102,307)    40,901  $ (1,512,851)  $ 

949,312 

Net income

—   

Purchase of common stock

(10,200)   

—   

—   

—   

—   

7,056   

263,010   

—   

—   

—   

270,066 

—   

—   

—    10,200   

(377,290)   

(377,290) 

Share-based compensation 
issuances and exercises

Share-based compensation 
expense

Derivative financial 
instruments, net of tax

Foreign currency translation 
adjustments, net of tax

Distributions to noncontrolling 
interests, net

786   

—   

(17,397)   

—   

(26,324)   

—   

(786)   

30,558   

(13,163) 

—   

—   

29,304   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

29,304 

—   

10,518   

—   

—   

10,518 

—   

(22,917)   

—   

—   

(22,917) 

—   

—   

—   

(8,506)   

—   

—   

—   

—   

(8,506) 

Balance, January 29, 2022

52,985  $ 1,033  $  413,190  $ 

11,234  $  2,386,156  $ 

(114,706)    50,315  $ (1,859,583)  $ 

837,324 

Net income

Purchase of common stock

Share-based compensation 
issuances and exercises

Share-based compensation 
expense

Derivative financial 
instruments, net of tax

Foreign currency translation 
adjustments, net of tax

Distributions to noncontrolling 
interests, net

—   

(4,770)   

—   

—   

—   

—   

7,569   

2,816   

—   

—   

—   

10,385 

—   

—   

—   

4,770   

(125,775)   

(125,775) 

787   

—   

(25,930)   

—   

(20,157)   

—   

(787)   

31,623   

(14,464) 

—   

—   

28,995   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

—   

28,995 

—   

(10,857)   

—   

—   

(10,857) 

—   

(11,964)   

—   

—   

(11,964) 

—   

—   

—   

(7,075)   

—   

—   

—   

—   

(7,075) 

Balance, January 28, 2023

49,002  $ 1,033  $  416,255  $ 

11,728  $  2,368,815  $ 

(137,527)    54,298  $ (1,953,735)  $ 

706,569 

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

Abercrombie & Fitch Co.

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Operating activities

Net income (loss)

Abercrombie & Fitch Co.
Consolidated Statements of Cash Flows
(Thousands)

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

Depreciation and amortization

Asset impairment

Loss on disposal

Provision (benefit) for deferred income taxes

Share-based compensation

(Gain) loss on extinguishment of debt

Changes in assets and liabilities

Inventories

Accounts payable and accrued expenses

Operating lease right-of use assets and liabilities

Income taxes

Other assets

Other liabilities

Net cash (used for) provided by operating activities

Investing activities

Purchases of property and equipment

Proceeds from the sale of property and equipment

Withdrawal of funds from Rabbi Trust assets

Net cash used for investing activities

Financing activities

Proceeds from issuance of senior secured notes

Proceeds from borrowings under the senior secured asset-based revolving credit facility  
Repayment of borrowings under the term loan facility

Repayment of borrowings under the senior secured asset-based revolving credit facility

Purchase of senior secured notes 

Payment of debt issuance costs and fees

Purchases of common stock

Dividends paid

Other financing activities

Net cash (used for) provided by financing activities

Effect of foreign currency exchange rates on cash

Net (decrease) increase in cash and equivalents, and restricted cash and equivalents

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

10,385  $ 

270,066  $ 

(108,954) 

132,243 

14,031 

552 

11,500 

28,995 

(52) 

144,035 

12,100 

5,020 

(31,922) 

29,304 

5,347 

18,505 

(123,221) 

(115,152) 

(18,495) 

(7,390) 

(86,923) 

9,458 

(2,343) 

77,910 

(93,827) 

(3,086) 

396 

(14,340) 

277,782 

166,281 

72,937 

16,353 

23,986 

18,682 

— 

33,312 

186,747 

(55,700) 

10,753 

38,632 

1,889 

404,918 

(164,566) 

(96,979) 

(101,910) 

11,891 

12,000 

— 

— 

(140,675) 

(96,979) 

— 

— 

— 

— 

— 

— 

— 

— 

(7,862) 

(181) 

(46,969) 

(2,016) 

(125,775) 

(377,290) 

— 

(21,511) 

(155,329) 

(8,452) 

(306,799) 

— 

(20,623) 

(446,898) 

(23,694) 

(289,789) 

— 

50,000 

(51,910) 

350,000 

210,000 

(233,250) 

(210,000) 

— 

(7,318) 

(15,172) 

(12,556) 

(11,987) 

69,717 

9,168 

431,893 

692,264 

Cash and equivalents, and restricted cash and equivalents, beginning of period

834,368 

1,124,157 

Cash and equivalents, and restricted cash and equivalents, end of period

Supplemental information related to non-cash activities

Purchases of property and equipment not yet paid at end of period

Operating lease right-of-use assets additions, net of terminations, impairments and other 
reductions

Supplemental information related to cash activities

Cash paid for interest

Cash paid for income taxes

Cash received from income tax refunds

Cash paid for amounts included in measurement of operating lease liabilities, net of 
abatements received of $3.9 million and  $17.9 million in Fiscal 2022 and 2021, 
respectively

$ 

$ 

$ 

$ 

$ 

$ 

$ 

527,569  $ 

834,368  $ 

1,124,157 

57,313  $ 

29,932  $ 

16,250 

269,430  $ 

29,241  $ 

(38,279) 

26,687  $ 

28,413  $ 

53,011  $ 

74,709  $ 

3,701  $ 

2,292  $ 

26,629 

15,210 

4,650 

263,269  $ 

364,842  $ 

316,992 

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

Abercrombie & Fitch Co.

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Abercrombie & Fitch Co.

Index for Notes to Consolidated Financial Statements 

Note 1.

Note 2.

Note 3.

Note 4.

Note 5.

Note 6.

Note 7.

Note 8.

Note 9.

Note 10.

Note 11.

Note 12.

Note 13.

Note 14.

Note 15.

Note 16.

Note 17.

Note 18.

NATURE OF BUSINESS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REVENUE RECOGNITION

FAIR VALUE

INVENTORIES

PROPERTY AND EQUIPMENT, NET

LEASES

ASSET IMPAIRMENT

RABBI TRUST ASSETS

ACCRUED EXPENSES

INCOME TAXES

BORROWINGS

SHARE-BASED COMPENSATION

DERIVATIVE INSTRUMENTS

ACCUMULATED OTHER COMPREHENSIVE LOSS

SAVINGS AND RETIREMENT PLANS

SEGMENT REPORTING

CONTINGENCIES

Page No.

47

47

56

57

58

59

59

60

61

61

61

65

67

70

71

72

72

73

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Abercrombie & Fitch Co.

Notes to Consolidated Financial Statements

1. NATURE OF BUSINESS

Abercrombie & Fitch Co. (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its 
subsidiaries  are  referred  to  as  “Abercrombie  &  Fitch”  or  the  “Company”),  is  a  global,  digitally-led  omnichannel  retailer.    The 
Company  offers  a  broad  assortment  of  apparel,  personal  care  products  and  accessories  for  men,  women  and  kids,  which  are 
sold primarily through its digital channels and Company-owned stores, as well as through various third-party arrangements.  The 
Company’s  two  brand-based  operating  segments  are  Hollister,  which  includes  the  Company’s  Hollister,  Gilly  Hicks  and  Social 
Tourist brands, and Abercrombie, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands. These five 
brands share a commitment to offering unique products of enduring quality and exceptional comfort that allow customers around 
the world to express their own individuality and style. The Company operates primarily in North America, Europe, Middle East 
and Asia.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying Consolidated Financial Statements include historical financial statements of, and transactions applicable to, 
the Company and reflect its financial position, results of operations and cash flows. 

The  Company  has  interests  in  an  Emirati  business  venture  and  in  a  Kuwaiti  business  venture  with  Majid  al  Futtaim  Fashion 
L.L.C. (“MAF”) and a “U.S.” business venture with Dixar L.L.C. (“Dixar”), 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 and 
the  purpose  of  the  business  venture  with  Dixar  is  to  hold  the  intellectual  property  related  to  the  Social  Tourist  brand.  The 
Company is deemed to be the primary beneficiary of these VIEs; therefore, the Company has consolidated the operating results, 
assets  and  liabilities  of  these  VIEs,  with  the  noncontrolling  interests’  (“NCI”)  portions  of  net  income  presented  as  net  income 
attributable  to  NCI  on  the  Consolidated  Statements  of  Operations  and  Comprehensive  (Loss)  Income  and  the  NCI  portion  of 
stockholders equity presented as NCI on the Consolidated Balance Sheets.

Fiscal Year

The  Company’s  fiscal  year  ends  on  the  Saturday  closest  to  January  31.  This  typically  results  in  a  fifty-two  week  year,  but 
occasionally gives rise to an additional week, resulting in a fifty-three week year. Fiscal years are designated in the Consolidated 
Financial  Statements  and  notes  by  the  calendar  year  in  which  the  fiscal  year  commences.  All  references  herein  to  the 
Company’s fiscal years are as follows:

Fiscal year

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023

Use of Estimates

Year ended/ ending

Number of weeks

February 1, 2020

January 30, 2021

January 29, 2022

January 28, 2023

February 3, 2024

52

52

52

52

53

The  preparation  of  financial  statements,  in  conformity  with  U.S.  generally  accepted  accounting  principles  (“GAAP”),  requires 
management  to  make  estimates  and  assumptions  that  affect  the  reported  amounts  of  assets  and  liabilities  and  disclosure  of 
contingent  assets  and  liabilities  at  the  date  of  the  financial  statements  and  the  reported  amounts  of  net  sales  and  expenses 
during the reporting period. Due to the inherent uncertainty involved with estimates, actual results may differ. Additionally, these 
estimates  and  assumptions  may  change  as  a  result  of  the  impact  of  global  economic  conditions  such  as  the  uncertainty 
regarding a  slowing economy, rising interest rates, continued inflation, fluctuation in foreign exchange rates, the ongoing conflict 
in Ukraine which could result in material impacts to the Company’s consolidated financial statements in future reporting periods.

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Reclassifications

Abercrombie & Fitch Co.

The  Company  reclassified  flagship  store  exit  (benefits)  charges  into  stores  and  distribution  expense  on  the  Consolidated 
Statements of Operations and Comprehensive (Loss) Income. There were no changes to operating income (loss) or net income 
(loss). Prior period amounts have been reclassified to conform to current year’s presentation.

Cash and Equivalents

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

(in thousands)
Cash (1)
Cash equivalents: (2)

Time deposits

Money market funds

Cash and equivalents

(1) Primarily consists of amounts on deposit with financial institutions.
(2)
Investments with original maturities of less than three months.

Consolidated Statements of Cash Flows Reconciliation

January 28, 2023

January 29, 2022

$ 

467,238  $ 

762,187 

— 

50,364 

11,643 

49,309 

$ 

517,602  $ 

823,139 

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

(in thousands)
Cash and equivalents

Long-term restricted cash and equivalents

Short-term restricted cash and equivalents
Restricted cash and equivalents (1)

Cash and equivalents and restricted cash and equivalents

Location

January 28, 2023

January 29, 2022

January 30, 2021

Cash and equivalents

$ 

517,602  $ 

823,139  $ 

1,104,862 

Other assets

Other current assets

9,967 

— 

11,229 

— 

9,967  $ 

11,229  $ 

14,814 

4,481 

19,295 

527,569  $ 

834,368  $ 

1,124,157 

$ 

$ 

(1)  Restricted  cash  and  equivalents  primarily  consists  of  amounts  on  deposit  with  banks  that  are  used  as  collateral  for  customary  non-debt  banking 

commitments and deposits into trust accounts to conform to standard insurance security requirements.

Receivables

Receivables  on  the  Consolidated  Balance  Sheets  primarily  include  credit  card  receivables,  lessor  construction  allowance  and 
lease incentive receivables, value added tax (“VAT”) receivables, trade receivables, income tax receivables and other tax credits 
or refunds.

As part of the normal course of business, the Company has approximately three to four days of proceeds from sales transactions 
outstanding  with  its  third-party  credit  card  vendors  at  any  point. The  Company  classifies  these  outstanding  balances  as  credit 
card receivables. Lessor construction allowances are recorded for certain store lease agreements for improvements completed 
by the Company. VAT receivables are payments the Company has made on purchases of goods that will be recovered as those 
goods  are  sold.  Trade  receivables  are  amounts  billed  by  the  Company  to  wholesale,  franchise  and  licensing  partners  in  the 
ordinary course of business. Income tax receivables represent refunds of certain tax payments along with net operating loss and 
credit carryback claims for which the Company expects to receive refunds within the next 12 months.

Inventories

Inventories on the Consolidated Balance Sheets are valued at the lower of cost and net realizable value on a weighted-average 
cost basis. The Company reduces the carrying value of inventory through a lower of cost and net realizable value adjustment, 
the impact of which is reflected in cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of 
Operations  and  Comprehensive  (Loss)  Income.  The  lower  of  cost  and  net  realizable  value  adjustment  is  based  on  the 
Company’s consideration of multiple factors and assumptions including demand forecasts, current sales volumes, expected sell-
off  activity,  composition  and  aging  of  inventory,  historical  recoverability  experience  and  risk  of  obsolescence  from  changes  in 
economic conditions or customer preferences.

Additionally,  as  part  of  inventory  valuation,  inventory  shrinkage  estimates  based  on  historical  trends  from  actual  physical 
inventories  are  made  each  quarter  that  reduce  the  inventory  value  for  lost  or  stolen  items.  The  Company  performs  physical 
inventories on a periodic basis and adjusts the shrink estimate accordingly. Refer to Note 5, “INVENTORIES.”

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

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Abercrombie & Fitch Co.

Other Current Assets

Other  current  assets  on  the  Consolidated  Balance  Sheets  consist  of:  prepaid  expenses  including  those  related  to  rent, 
information technology maintenance and taxes; current store supplies; derivative contracts; short-term restricted cash and other.

Property and Equipment, Net

Depreciation of property and equipment is computed for financial reporting purposes on a straight-line basis using the following 
service lives:

Category of property and equipment

Information technology

Furniture, fixtures and equipment

Leasehold improvements

Other property and equipment

Buildings

Service lives

3 - 7 years

3 - 15 years

3 - 15 years

3 - 20 years

30 years

Leasehold improvements are amortized over either their respective lease terms or their service lives, whichever is shorter. The 
cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or 
loss included in net income on the Consolidated Statements of Operations and Comprehensive (Loss) Income. Maintenance and 
repairs are charged to expense as incurred. Major remodels and improvements that extend the service lives of the related assets 
are capitalized.

The  Company  capitalizes  certain  direct  costs  associated  with  the  development  and  purchase  of  internal-use  software  within 
property and equipment and other assets. Capitalized costs are amortized on a straight-line basis over the estimated useful lives 
of the software, generally not exceeding seven years.

Refer to Note 6, “PROPERTY AND EQUIPMENT, NET.”

Leases

The  Company  determines  if  an  arrangement  is  an  operating  lease  at  inception.  For  new  operating  leases,  the  Company 
recognizes an asset for the right to use a leased asset and a liability based on the present value of remaining lease payments 
over  the  lease  term  on  the  lease  commencement  date.  The  commencement  date  for  new  leases  is  when  the  lessor  makes 
the leased asset available for use by the Company, typically the possession date. 

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

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

•
•

•

•
•

Lease payments made prior to the lease commencement date; 
Incentives from landlords received by the Company for signing a lease, including construction allowances or deferred 
lease  credits  paid  to  the  Company  by  landlords  towards  construction  and  tenant  improvement  costs,  which  are 
presented as a reduction to the right-of-use asset recorded;
Fixed  payments  related  to  operating  lease  components,  such  as  rent  escalation  payments  scheduled  at  the  lease 
commencement date;
Fixed payments related to nonlease components, such as taxes, insurance, and maintenance costs; and
Unamortized initial direct costs incurred in conjunction with securing a lease, including key money, which are amounts 
paid directly to a landlord in exchange for securing the lease, and leasehold acquisition costs, which are amounts paid 
to parties other than the landlord, such as an existing tenant, to secure the desired lease.

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

•

•

•

Costs  expected  to  be  incurred  to  return  a  leased  asset  to  its  original  condition,  also  referred  to  as  asset  retirement 
obligations, which are classified within other liabilities on the Consolidated Balance Sheets;
Variable  payments  related  to  operating  lease  components,  such  as  contingent  rent  payments  made  by  the  Company 
based on performance, the expense of which is recognized in the period incurred on the Consolidated Statements of 
Operations and Comprehensive (Loss) Income;
Variable payments related to nonlease components, such as taxes, insurance, and maintenance costs, the expense of 
which  is  recognized  in  the  period  incurred  in  the  Consolidated  Statements  of  Operations  and  Comprehensive  (Loss) 
Income; and

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Abercrombie & Fitch Co.

•

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

Certain of the Company’s operating leases include options to extend the lease or to terminate the lease. The Company assesses 
these  operating  leases  and,  depending  on  the  facts  and  circumstances,  may  or  may  not  include  these  options  in  the 
measurement of the Company’s operating lease right-of-use assets and liabilities. Generally, the Company’s options to extend its 
operating  leases  are  at  the  Company’s  sole  discretion  and  at  the  time  of  lease  commencement  are  not  reasonably  certain  of 
being exercised. There may be instances in which a lease is being renewed on a month-to-month basis and, in these instances, 
the  Company  will  recognize  lease  expense  in  the  period  incurred  in  the  Consolidated  Statements  of  Operations  and 
Comprehensive  (Loss)  Income  until  a  new  agreement  has  been  executed.  Upon  the  signing  of  the  renewal  agreement,  the 
Company recognizes an asset for the right to use the leased asset and a liability based on the present value of remaining lease 
payments over the lease term.

Amortization  and  interest  expense  related  to  operating  lease  right-of-use  assets  and  liabilities  are  generally  calculated  on  a 
straight-line basis over the lease term. Amortization and interest expense related to previously impaired operating lease right-of-
use assets are calculated on a front-loaded pattern. Depending on the nature of the operating lease, amortization and interest 
expense are primarily recorded within stores and distribution expense, marketing, or general and administrative expense,  on the 
Consolidated Statements of Operations and Comprehensive (Loss) Income.

The  Company’s  operating  lease  agreements  do  not  contain  any  material  residual  value  guarantees  or  material  restrictive 
covenants. In addition, the Company does not have any sublease arrangements with any related party.

Refer to Note 7, “LEASES.”

Long-lived Asset Impairment

For the purposes of asset impairment, the Company’s long-lived assets, primarily operating lease right-of-use assets, leasehold 
improvements,  furniture,  fixtures  and  equipment,  are  grouped  with  other  assets  and  liabilities  at  the  store  level,  which  is  the 
lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.  On at least 
a  quarterly  basis,  management  reviews  the  Company’s  asset  groups  for  indicators  of  impairment,  which  include,  but  are  not 
limited  to,  material  declines  in  operational  performance,  a  history  of  losses,  an  expectation  of  future  losses,  adverse  market 
conditions,  store  closure  or  relocation  decisions,  and  any  other  events  or  changes  in  circumstances  that  would  indicate  the 
carrying amount of an asset group might not be recoverable.

If an asset group displays an indicator of impairment, it is tested for recoverability by comparing the sum of the estimated future 
undiscounted  cash  flows  attributable  to  the  asset  group  to  the  carrying  amount  of  the  asset  group.    This  recoverability  test 
requires  management  to  make  assumptions  and  judgments  related,  but  not  limited,  to  management’s  expectations  for  future 
cash  flows  from  operating  the  store.  The  key  assumption  used  in  developing  these  projected  cash  flows  used  in  the 
recoverability test is estimated sales growth rate.

If the sum of the estimated future undiscounted cash flows attributable to an asset group is less than its carrying amount, and it is 
determined  that  the  carrying  amount  of  the  asset  group  is  not  recoverable,  management  determines  if  there  is  an  impairment 
loss by comparing the carrying amount of the asset group to its fair value.  Fair value of an asset group  is based on the highest 
and  best  use  of  the  asset  group,  often  using  a  discounted  cash  flow  model  that  utilizes  Level  3  fair  value  inputs.  The  key 
assumptions  used  in  the  Company’s  fair  value  analyses  are  estimated  sales  growth  rate  and  comparable  market  rents.  An 
impairment loss is recognized based on the excess of the carrying amount of the asset group over its fair value.  

Refer to Note 8, “ASSET IMPAIRMENT.”

Other Assets

Other assets on the Consolidated Balance Sheets consist primarily of the Company’s trust-owned life insurance policies held in 
the irrevocable rabbi trust (the “Rabbi Trust”), deferred tax assets, long-term deposits, intellectual property, long-term restricted 
cash and equivalents, long-term supplies and various other assets.

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Rabbi Trust Assets

Abercrombie & Fitch Co.

The Rabbi Trust includes amounts, restricted in their use, to meet funding obligations to participants in the Abercrombie & Fitch 
Co.  Nonqualified  Savings  and  Supplemental  Retirement  Plan  I,  the  Abercrombie  &  Fitch  Co.  Nonqualified  Savings  and 
Supplemental Retirement Plan II and the Supplemental Executive Retirement Plan. The Rabbi Trust assets primarily consist of 
trust-owned  life  insurance  policies  which  are  recorded  at  cash  surrender  value  and  are  included  in  other  assets  on  the 
Consolidated Balance Sheets. The change in cash surrender value of the life insurance policies in the Rabbi Trust is recorded in 
interest expense, net on the Consolidated Statements of Operations and Comprehensive (Loss) Income. 

Refer to Note 9, “RABBI TRUST ASSETS.”

Intellectual Property

Intellectual  property  primarily  includes  trademark  assets  associated  with  the  Company’s  international  operations,  consisting  of 
finite-lived and indefinite-lived intangible assets. The Company’s finite-lived intangible assets are amortized over a useful life of 
10 to 20 years.

Income Taxes

Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are recognized based on the 
difference  between  the  financial  statement  carrying  amounts  of  existing  assets  and  liabilities  and  their  respective  tax  bases. 
Deferred tax assets and liabilities are measured using current enacted tax rates in effect for the years in which those temporary 
differences  are  expected  to  reverse.  Inherent  in  the  determination  of  the  Company’s  income  tax  liability  and  related  deferred 
income  tax  balances  are  certain  judgments  and  interpretations  of  enacted  tax  law  and  published  guidance  with  respect  to 
applicability to the Company’s operations. The Company is subject to audit by taxing authorities, usually several years after tax 
returns  have  been  filed,  and  the  taxing  authorities  may  have  differing  interpretations  of  tax  laws.  Valuation  allowances  are 
established to reduce deferred tax assets to the amount expected to be realized when it is more likely than not that some portion 
or all of the deferred tax assets will not be realized.

The Company records tax expense or benefit that does not relate to ordinary income in the current fiscal year discretely in the 
period in which it occurs. Examples of such types of discrete items include, but are not limited to: changes in estimates of the 
outcome of tax matters related to prior years, assessments of valuation allowances, return-to-provision adjustments, tax-exempt 
income, the settlement of tax audits and changes in tax legislation and/or regulations.

Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon 
examination,  including  resolutions  of  any  related  appeals  or  litigation  processes,  based  on  the  technical  merits.  The  amount 
recognized  is  measured  as  the  largest  amount  of  tax  benefit  that  is  greater  than  50  percent  likely  of  being  realized  upon 
settlement.  The Company’s effective tax rate includes the impact of reserve provisions and changes to reserves on uncertain tax 
positions that are not more likely than not to be sustained upon examination as well as related interest and penalties.

A number of years may elapse before a particular matter, for which the Company has established a reserve, is audited and finally 
resolved. The number of years with open tax audits varies depending on the tax jurisdiction. While it is often difficult to predict the 
final outcome or the timing of resolution of any particular tax matter, the Company believes that its reserves reflect the probable 
outcome  of  known  tax  contingencies.  Unfavorable  settlement  of  any  particular  issue  may  require  use  of  the  Company’s  cash.  
Favorable resolution would be recognized as a reduction to the Company’s effective tax rate in the period of resolution.

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

Refer to Note 11, “INCOME TAXES.”

Foreign Currency Translation and Transactions

The functional currencies of the Company’s foreign subsidiaries are generally the currencies of the environments in which each 
subsidiary  primarily  generates  and  expends  cash,  which  is  often  the  local  currency  of  the  country  in  which  each  subsidiary 
operates. The financial statements of the Company’s foreign subsidiaries with functional currencies other than the U.S. Dollar are 
translated into U.S. Dollars (the Company’s reporting currency), as follows: assets and liabilities are translated at the exchange 
rate  prevailing  at  the  balance  sheet  date,  equity  accounts  are  translated  at  historical  exchange  rates,  and  revenues  and 
expenses are translated at the monthly average exchange rate for the period. 

Abercrombie & Fitch Co.

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Abercrombie & Fitch Co.

Foreign currency transactions, which are transactions denominated in a currency other than the entity’s functional currency, are 
initially measured in the functional currency of the recording entity using the exchange rate in effect at that date.  Subsequently, 
assets  and  liabilities  associated  with  foreign  currency  transactions  are  remeasured  into  the  entity’s  functional  currency  using 
historical exchange rates when remeasuring nonmonetary assets and liabilities and current exchange rates when remeasuring 
monetary assets and liabilities.

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

Derivative Instruments

The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivative instruments, 
primarily forward contracts, to manage the financial impacts of these exposures. The Company does not use forward contracts to 
engage in currency speculation and does not enter into derivative financial instruments for trading purposes.

In  order  to  qualify  for  hedge  accounting  treatment,  a  derivative  instrument  must  be  considered  highly  effective  at  offsetting 
changes in either the hedged item’s cash flows or fair value. Additionally, the hedge relationship must be documented to include 
the  risk  management  objective  and  strategy,  the  hedging  instrument,  the  hedged  item,  the  risk  exposure,  and  how  hedge 
effectiveness  will  be  assessed  prospectively  and  retrospectively.  The  extent  to  which  a  hedging  instrument  has  been,  and  is 
expected  to  continue  to  be,  effective  at  offsetting  changes  in  fair  value  or  cash  flows  is  assessed  and  documented  at  least 
quarterly. If the underlying hedged item is no longer probable of occurring, hedge accounting is discontinued.

For derivative instruments that either do not qualify for hedge accounting or are not designated as hedges, all changes in the fair 
value of the derivative instrument are recognized in earnings. For qualifying cash flow hedges, the change in the fair value of the 
derivative  instrument  is  recorded  as  a  component  of  other  comprehensive  income  (loss)  (“OCI”)  and  recognized  in  earnings 
when the hedged cash flows affect earnings. If the cash flow hedge relationship is terminated, the derivative instrument gains or 
losses that are deferred in OCI will be recognized in earnings when the hedged cash flows occur. However, for cash flow hedges 
that are terminated because the forecasted transaction is not expected to occur in the original specified time period, or a two-
month period thereafter, the derivative instrument gains or losses are immediately recognized in earnings.

The  Company  uses  derivative  instruments,  primarily  forward  contracts  designated  as  cash  flow  hedges,  to  hedge  the  foreign 
currency exchange rate exposure associated with forecasted foreign-currency-denominated intercompany inventory transactions 
with foreign subsidiaries before inventory is sold to third parties. Fluctuations in exchange rates will either increase or decrease 
the  Company’s  intercompany  equivalent  cash  flows  and  affect  the  Company’s  U.S.  Dollar  earnings.  Gains  or  losses  on  the 
foreign  currency  exchange  forward  contracts  that  are  used  to  hedge  these  exposures  are  expected  to  partially  offset  this 
variability. Foreign currency exchange forward contracts represent agreements to exchange the currency of one country for the 
currency  of  another  country  at  an  agreed  upon  settlement  date.  These  forward  contracts  typically  have  a  maximum  term  of 
twelve  months.  The  conversion  of  the  inventory  to  cost  of  sales,  exclusive  of  depreciation  and  amortization,  will  result  in  the 
reclassification  of  related  derivative  gains  and  losses  that  are  reported  in  AOCL  on  the  Consolidated  Balance  Sheets  into 
earnings.

The  Company  also  uses  foreign  currency  exchange  forward  contracts  to  hedge  certain  foreign-currency-denominated  net 
monetary  assets  and  liabilities,  such  as  cash  balances,  receivables  and  payables.  Fluctuations  in  foreign  currency  exchange 
rates result in transaction gains and losses being recorded in earnings as monetary assets and liabilities are remeasured at the 
spot  exchange  rate  at  the  Company’s  fiscal  month-end  or  upon  settlement.  The  Company  has  chosen  not  to  apply  hedge 
accounting to these foreign currency exchange forward contracts because there are no differences in the timing of gain or loss 
recognition on the hedging instruments and the hedged items.

The  Company  presents  its  derivative  assets  and  derivative  liabilities  at  their  gross  fair  values  within  other  current  assets  and 
accrued liabilities, respectively, on the Consolidated Balance Sheets. However, the Company’s derivative instruments allow net 
settlements under certain conditions.

Refer to Note 14, “DERIVATIVE INSTRUMENTS.”

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Stockholders’ Equity

Abercrombie & Fitch Co.

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

(in thousands)
Class A Common Stock

Shares authorized

Shares issued

Shares outstanding
Class B Common Stock (1)

Shares authorized

January 28, 2023

January 29, 2022

150,000 

103,300 

49,002 

150,000 

103,300 

52,985 

106,400 

106,400 

(1) No shares were issued or outstanding as of each of January 28, 2023 and January 29, 2022.

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

Revenue Recognition

The Company recognizes revenue from product sales when control of the good is transferred to the customer, generally upon 
pick up at, or shipment from, a Company location.

The Company provides shipping and handling services to customers in certain transactions under its digital operations. Revenue 
associated  with  the  related  shipping  and  handling  obligations  is  deferred  until  the  obligation  is  fulfilled,  typically  upon  the 
customer’s receipt of the merchandise. The related shipping and handling costs are classified in stores and distribution expense 
on the Consolidated Statements of Operations and Comprehensive (Loss) Income.

Revenue  is  recorded  net  of  estimated  returns,  associate  discounts,  promotions  and  other  similar  customer  incentives.  The 
Company estimates reserves for sales returns based on historical experience among other factors. The sales return reserve is 
classified in accrued expenses with a corresponding asset related to the projected returned merchandise recorded in inventory 
on the Consolidated Balance Sheets.

The Company accounts for gift cards sold to customers by recognizing an unearned revenue liability at the time of sale, which is 
recognized as net sales when redeemed by the customer or when the Company has determined the likelihood of redemption to 
be  remote,  referred  to  as  gift  card  breakage.  Gift  card  breakage  is  recognized  proportionally  with  gift  card  redemptions  in  net 
sales. Gift cards sold to customers do not expire or lose value over periods of inactivity and the Company is not required by law 
to escheat the value of unredeemed gift cards to the jurisdictions in which it operates.

The  Company  also  maintains  loyalty  programs,  which  primarily  provide  customers  with  the  opportunity  to  earn  points  toward 
future merchandise discount rewards with qualifying purchases. The Company accounts for expected future reward redemptions 
by recognizing an unearned revenue liability as customers accumulate points, which remains until revenue is recognized at the 
earlier of redemption or expiration. 

Unearned revenue liabilities related to the Company’s gift card program and loyalty programs are classified in accrued expenses 
on the Consolidated Balance Sheets and are typically recognized as revenue within a 12-month period. 

For  additional  details  on  the  Company’s  unearned  revenue  liabilities  related  to  the  Company’s  gift  card  and  loyalty  programs, 
refer to Note 3, “REVENUE RECOGNITION.”

The Company also recognizes revenue under wholesale arrangements when control passes to the wholesale partner, which is 
generally upon shipment. Revenue from the Company’s franchise and license arrangements, primarily royalties earned upon the 
sale  of  merchandise,  is  generally  recognized  at  the  time  merchandise  is  sold  to  the  franchisees’  retail  customers  or  to  the 
licensees’ wholesale customers.

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

All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive (Loss) Income. For a 
discussion of the disaggregation of revenue, refer to Note 17, “SEGMENT REPORTING.” 

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Cost of Sales, Exclusive of Depreciation and Amortization

Cost  of  sales,  exclusive  of  depreciation  and  amortization  on  the  Consolidated  Statements  of  Operations  and  Comprehensive 
(Loss) Income, primarily consists of cost incurred to ready inventory for sale, including product costs, freight, and import costs, as 
well  as  provisions  for  reserves  for  shrink  and  lower  of  cost  and  net  realizable  value.  Gains  and  losses  associated  with  the 
effective  portion  of  designated  foreign  currency  exchange  forward  contracts  related  to  the  hedging  of  intercompany  inventory 
transactions are also recognized in cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of 
Operations and Comprehensive (Loss) Income.

The Company’s cost of sales, exclusive of depreciation and amortization, and consequently gross profit, may not be comparable 
to those of other retailers, as inclusion of certain costs vary across the industry. Some retailers include all costs related to buying, 
design  and  distribution  operations  in  cost  of  sales,  while  others  may  include  either  all  or  a  portion  of  these  costs  in  selling, 
general and administrative expenses.

Stores and Distribution Expense

Stores  and  distribution  expense  on  the  Consolidated  Statements  of  Operations  and  Comprehensive  (Loss)  Income  primarily 
consists  of:  store  payroll;  store  management;  operating  lease  costs;  utilities  and  other  landlord  expenses;  depreciation  and 
amortization, except for those amounts included in marketing, general and administrative expense; repairs and maintenance and 
other  store  support  functions;  marketing  and  other  costs  related  to  the  Company’s  digital  operations;  shipping  and  handling 
costs; and distribution center (“DC”) expense.

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

(in thousands)
Shipping and handling costs

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

356,280  $ 

306,220  $ 

291,534 

Marketing, General and Administrative Expense

Marketing,  general  and  administrative  expense  on  the  Consolidated  Statements  of  Operations  and  Comprehensive  (Loss) 
Income  primarily  consists  of:  home  office  compensation  and  marketing,  except  for  those  departments  included  in  stores  and 
distribution expense; information technology; outside services, such as legal and consulting; depreciation, primarily related to IT 
and  other  home  office  assets;  amortization  related  to  trademark  assets;  costs  to  design  and  develop  the  Company’s 
merchandise; relocation; recruiting; and travel expenses.

Other Operating Income, Net

Other operating income, net on the Consolidated Statements of Operations and Comprehensive (Loss) Income primarily consists 
of  gains  and  losses  resulting  from  foreign-currency-denominated  transactions.  A  summary  of  foreign-currency-denominated 
transaction (losses) gains, including those related to derivative instruments, follows:

(in thousands)
Foreign-currency-denominated transaction (losses) gains

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

(1,626)  $ 

4,232  $ 

3,933 

Interest Expense, Net

Interest  expense  primarily  consists  of  interest  expense  on  the  Company’s  long-term  borrowings  outstanding.  Interest  income 
primarily consists of interest income earned on the Company’s investments and cash holdings and realized gains from the Rabbi 
Trust assets. 

A summary of interest expense, net follows:

(in thousands)

Interest expense

Interest income

Interest expense, net

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

$ 

30,236  $ 

37,958  $ 

(4,604) 

(3,848) 

25,632  $ 

34,110  $ 

31,726 

(3,452) 

28,274 

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Advertising Costs

Abercrombie & Fitch Co.

Advertising costs consist primarily of paid media advertising, direct digital advertising, including e-mail distribution, digital content 
and in-store photography and signage.

Advertising costs related specifically to digital operations are expensed as incurred and the production of in-store photography 
and signage is expensed when the marketing campaign commences as components of stores and distribution expense. All other 
advertising costs are expensed as incurred as components of marketing, general and administrative expense.

A summary of advertising costs follows:

(in thousands)
Advertising costs

Share-based Compensation

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

189,347  $ 

204,575  $ 

118,537 

The  Company  issues  shares  of  Class  A  Common  Stock,  $0.01  par  value  (the  “Common  Stock”)  from  treasury  stock  upon 
exercise  of  stock  appreciation  rights  and  vesting  of  restricted  stock  units,  including  those  converted  from  performance  share 
awards. As  of January 28, 2023, the Company had  sufficient  treasury stock available to settle restricted stock units and  stock 
appreciation  rights  outstanding.  Settlement  of  stock  awards  in  Common  Stock  also  requires  that  the  Company  have  sufficient 
shares available in stockholder-approved plans at the applicable time.

In  the  event  there  are  not  sufficient  shares  of  Common  Stock  available  to  be  issued  under  the Abercrombie  &  Fitch  Co.  2016 
Long-Term Incentive Plan for Directors (as amended effective May 20, 2020, the “2016 Directors LTIP”) and the Abercrombie & 
Fitch  Co.  2016  Long-Term  Incentive  Plan  for Associates  (as  amended  effective  June  8,  2022,  the  “2016 Associates  LTIP”),  or 
under  a  successor  or  replacement  plan  at  each  reporting  date  as  of  which  share-based  compensation  awards  remain 
outstanding,  the  Company  may  be  required  to  designate  some  portion  of  the  outstanding  awards  to  be  settled  in  cash,  which 
would  result  in  liability  classification  of  such  awards.  The  fair  value  of  liability-classified  awards  would  be  re-measured  each 
reporting date until such awards no longer remain outstanding or until sufficient shares of Common Stock become available to be 
issued under the existing plans or under a successor or replacement plan. As long as the awards are required to be classified as 
a liability, the change in fair value would be recognized in current period expense based on the requisite service period rendered.

Fair  value  of  both  service-based  and  performance-based  restricted  stock  units  is  calculated  using  the  market  price  of  the 
underlying Common Stock on the date of grant reduced for anticipated dividend payments on unvested shares. In determining 
fair  value,  the  Company  does  not  take  into  account  performance-based  vesting  requirements.  Performance-based  vesting 
requirements are taken into account in determining the number of awards expected to vest. For market-based restricted stock 
units,  fair  value  is  calculated  using  a  Monte  Carlo  simulation  with  the  number  of  shares  that  ultimately  vest  dependent  on  the 
Company’s  total  stockholder  return  measured  against  the  total  stockholder  return  of  a  select  group  of  peer  companies  over  a 
three-year  period.  For  awards  with  performance-based  or  market-based  vesting  requirements,  the  number  of  shares  that 
ultimately vest can vary from 0% to 200% of target depending on the level of achievement of performance criteria.

The Company estimates the fair value of stock appreciation rights using the Black-Scholes option-pricing model, which requires 
the Company to estimate the expected term of the stock appreciation rights and expected future stock price volatility over the 
expected  term.  Estimates  of  expected  terms,  which  represent  the  expected  periods  of  time  the  Company  believes  stock 
appreciation rights will be outstanding, are based on historical experience. Estimates of expected future stock price volatility are 
based on the volatility of the Common Stock price for the most recent historical period equal to the expected term of the stock 
appreciation rights, as appropriate. The Company calculates the volatility as the annualized standard deviation of the differences 
in the natural logarithms of the weekly closing price of the Common Stock, adjusted for stock splits and dividends.

Service-based  restricted  stock  units  are  expensed  on  a  straight-line  basis  over  the  award’s  requisite  service  period. 
Performance-based  restricted  stock  units  subject  to  graded  vesting  are  expensed  on  an  accelerated  attribution  basis. 
Performance  share  award  expense  is  primarily  recognized  in  the  performance  period  of  the  award’s  requisite  service  period. 
Market-based  restricted  stock  units  without  graded  vesting  features  are  expensed  on  a  straight-line  basis  over  the  award’s 
requisite  service  period.  Compensation  expense  for  stock  appreciation  rights  is  recognized  on  a  straight-line  basis  over  the 
award’s  requisite  service  period.  The  Company  adjusts  share-based  compensation  expense  on  a  quarterly  basis  for  actual 
forfeitures. 

For awards that are expected to result in a tax deduction, a deferred tax asset is recorded in the period in which share-based 
compensation expense is recognized. A current tax deduction arises upon the issuance of restricted stock units and performance 
share awards or the exercise of stock options and stock appreciation rights and is principally measured at the award’s intrinsic 
value. If the tax deduction differs from the recorded deferred tax asset, the excess tax benefit or deficit associated with the tax 
deduction is recognized within income tax expense.

Refer to Note 13, “SHARE-BASED COMPENSATION.”

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Abercrombie & Fitch Co.

Net Income (Loss) per Share Attributable to A&F

Net  income  (loss)  per  basic  and  diluted  share  attributable  to  A&F  is  computed  based  on  the  weighted-average  number  of 
outstanding  shares  of  Common  Stock.  Additional  information  pertaining  to  net  income  (loss)  per  share  attributable  to  A&F 
follows:

(in thousands)

Shares of Common Stock issued

Weighted-average treasury shares

Weighted-average — basic shares

Dilutive effect of share-based compensation awards

Weighted-average — diluted shares
Anti-dilutive shares (1)

Fiscal 2022

Fiscal 2021

Fiscal 2020

103,300 

(52,993) 

50,307 

2,020 

52,327 

2,233 

103,300 

(43,703) 

59,597 

3,039 

62,636 

1,002 

103,300 

(40,749) 

62,551 

— 

62,551 

3,270 

(1)

Reflects the total number of shares related to outstanding share-based compensation awards that have been excluded from the computation of net 
income (loss) per diluted share because the impact would have been anti-dilutive. Unvested shares related to restricted stock units with performance-
based and market-based vesting conditions can achieve up to 200% of their target vesting amount and are reflected at the maximum vesting amount 
less any dilutive portion.

Recent Accounting Pronouncements 

The  Company  reviews  recent  accounting  pronouncements  on  a  quarterly  basis  and  has  excluded  discussion  of  those  not 
applicable  to  the  Company  and  those  not  expected  to  have  a  material  impact  on  the  Company’s  consolidated  financial 
statements. The following table provides a brief description of certain recent accounting pronouncements that the Company has 
adopted or that could affect the Company’s financial statements.

Accounting Standards Update (ASU)

Description

Standards not yet adopted

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

The  update  related  to  disclosure  requirements  for  buyers  in 
supplier finance programs. The amendments in the update require 
that a buyer disclose qualitative and quantitative information about 
their supplier finance programs. Interim and annual requirements 
include  disclosure  of  outstanding  amounts  under  the  obligations 
as  of  the  end  of  the  reporting  period,  and  annual  requirements 
include a rollforward of those obligations for the annual reporting 
period, as well as a description of payment and other key terms of 
the  programs.  This  update  is  effective  for  annual  periods 
beginning  after  December  15,  2022,  and  interim  periods  within 
those  fiscal  years,  except  for  the  requirement  to  disclose 
rollforward 
fiscal  years 
beginning after December 15, 2023.

information,  which 

is  effective 

for 

Effect on the financial 
statements or other 
significant matters

The  Company 
is  currently 
evaluating  the  impact  that  this 
guidance  will  have  on 
its 
consolidated 
financial 
statements  and  accompanying 
notes

3. REVENUE RECOGNITION

Disaggregation of revenue

All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive (Loss) Income. For 
information regarding the disaggregation of revenue, refer to Note 17, “SEGMENT REPORTING.” 

Contract liabilities

The  following  table  details  certain  contract  liabilities  representing  unearned  revenue  as  of January  28,  2023  and  January  29, 
2022:

(in thousands)

Gift card liability

Loyalty programs liability

January 28, 2023

January 29, 2022

$ 

39,235  $ 

25,640 

36,984 

22,757 

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The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for Fiscal 
2022 and Fiscal 2021:

(in thousands)

Fiscal 2022

Fiscal 2021

Revenue associated with gift card redemptions and gift card breakage

$ 

98,488  $ 

Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs

48,624 

80,088 

45,417 

Refer  to  Note  2,  “SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  Revenue  recognition,”  for  discussion  regarding 
significant accounting policies related to the Company’s revenue recognition.

4. FAIR VALUE

Fair  value  is  the  price  that  would  be  received  to  sell  an  asset  or  paid  to  transfer  a  liability  in  an  orderly  transaction  between 
market  participants  at  the  measurement  date.  The  inputs  used  to  measure  fair  value  are  prioritized  based  on  a  three-level 
hierarchy. The three levels of inputs to measure fair value are as follows:

•

•

•

Level 1—inputs are unadjusted quoted prices for identical assets or liabilities that are available in active markets that 
the Company can access at the measurement date.
Level 2—inputs are other than quoted market prices included within Level 1 that are observable for assets or liabilities, 
directly or indirectly.
Level 3—inputs to the valuation methodology are unobservable.

The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. 

The three levels of the hierarchy and the distribution of the Company’s assets and liabilities that are measured at fair value on a 
recurring basis, were as follows:

(in thousands)

Assets:

Cash equivalents (1)
Derivative instruments (2)
Rabbi Trust assets (3) 
Restricted cash equivalents (1)

Total assets

Liabilities:

Derivative instruments (2)

Total liabilities

(in thousands)

Assets:

Cash equivalents (1)
Derivative instruments (2)
Rabbi Trust assets (3) 
Restricted cash equivalents (1)

Assets and Liabilities at Fair Value as of January 28, 2023

Level 1

Level 2

Level 3

Total

$ 

50,364  $ 

— 

1 

1,690 

—  $ 

32 

51,681 

5,174 

—  $ 

50,364 

— 

— 

— 

32 

51,682 

6,864 

$ 

$ 

$ 

52,055  $ 

56,887  $ 

—  $ 

108,942 

—  $ 

—  $ 

4,986  $ 

4,986  $ 

—  $ 

—  $ 

4,986 

4,986 

Assets and Liabilities at Fair Value as of January 29, 2022

Level 1

Level 2

Level 3

Total

$ 

49,309  $ 

11,643  $ 

—  $ 

— 

1 

5,391 

4,973 

62,272 

2,326 

— 

— 

— 

60,952 

4,973 

62,273 

7,717 

Total assets

$ 

54,701  $ 

81,214  $ 

—  $ 

135,915 

(1)

(2) 

(3) 

Level 1 assets consisted of investments in money market funds and U.S. treasury bills. Level 2 assets consisted of time deposits.
Level 2 assets and liabilities consisted primarily of foreign currency exchange forward contracts.
Level 1 assets consisted of investments in money market funds. Level 2 assets consisted of trust-owned life insurance policies. 

The Company’s Level 2 assets and liabilities consisted of:

•
•

Trust-owned life insurance policies, which were valued using the cash surrender value of the life insurance policies;
Time deposits, which were valued at cost, approximating fair value, due to the short-term nature of these investments; 
and

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•

Derivative instruments, primarily foreign currency exchange forward contracts, which were valued using quoted market 
prices of the same or similar instruments, adjusted for counterparty risk.

Fair Value of Long-term Borrowings

The Company’s borrowings under the Senior Secured Notes are carried at historical cost in the Consolidated Balance Sheets. 
The carrying amount and fair value of the Company’s long-term gross borrowings were as follows:

(in thousands)

Gross borrowings outstanding, carrying amount

Gross borrowings outstanding, fair value

January 28, 2023

January 29, 2022

$ 

299,730  $ 

304,975 

307,730 

327,732 

5. INVENTORIES

Inventories consisted of:

(in thousands)

Inventories at original cost

Less: Lower of cost and net realizable value adjustment
Inventories (1)

January 28, 2023

January 29, 2022

$ 

$ 

541,299  $ 

(35,678) 

505,621  $ 

543,060 

(17,196) 

525,864 

(1) 

Included $93.7 million and $142.7 million of inventory in transit, merchandise owned by the Company that has not yet been received at a Company 
DC, as of January 28, 2023 and January 29, 2022, respectively. 

A summary of the Company’s vendors based on location and the percentage of dollar cost of merchandise receipts during Fiscal 
2022, and Fiscal 2021 follows:

Location

Vietnam

Cambodia
China (2)
Other  (3)
Total

% of Total Company Merchandise 
Receipts (1)

Fiscal 2022

Fiscal 2021

 33 %

 17 

 13 

 37 

 100 %

 36 %

 16 

 14 

 34 

 100 %

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

receipts during the respective fiscal year.

(2)  Only a portion of the Company’s total merchandise sourced from China is subject to the additional U.S. tariffs on imported consumer goods that were 
effective beginning in Fiscal 2019. The Company estimates approximately 9%, 9% and 7% of total merchandise receipts were directly imported to the 
United States from China in Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively.

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

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

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6. PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of:

(in thousands)
Land

Buildings

Furniture, fixtures and equipment

Information technology

Leasehold improvements

Construction in progress

Other

Total

Less: Accumulated depreciation

Property and equipment, net

January 28, 2023

January 29, 2022

$ 

28,599  $ 

232,996 

611,277 

685,539 

888,464 

68,984 

2,003 

28,599 

233,523 

622,912 

643,244 

913,729 

9,483 

2,003 

2,517,862 

(1,966,277) 

2,453,493 

(1,945,157) 

$ 

551,585  $ 

508,336 

Depreciation  expense  for  Fiscal  2022,  Fiscal  2021  and  Fiscal  2020  was  $129.7  million,  $141.4  million  and  $167.2  million, 
respectively. 

Refer to Note 8, “ASSET IMPAIRMENT,” for details related to property and equipment impairment charges incurred during Fiscal 
2022, Fiscal 2021 and Fiscal 2020.

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

7. LEASES

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

The following table provides a summary of the Company’s operating lease costs for Fiscal 2022, Fiscal 2021 and Fiscal 2020:

(in thousands)
Single lease cost (1)
Variable lease cost (2)
Operating lease right-of-use asset impairment (3)
Sublease income

Total operating lease cost

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

246,824  $ 

272,246  $ 

150,909 

6,248 

110,889 

9,509 

(3,826)   

(4,292)   

346,178 

65,310 

57,026 

— 

$ 

400,155  $ 

388,352  $ 

468,514 

(1)

(2)

Includes amortization and interest expense associated with operating lease right-of-use assets and the impact from remeasurement of operating lease 
liabilities.
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,  as  well  as  $3.9  million,  $14.1  million  and  $30.1  million  of  rent 
abatements  in  Fiscal  2022,  Fiscal  2021  and  Fiscal  2020,  respectively,  related  to  the  effects  of  the  COVID-19  pandemic  that  resulted  in  lease 
concessions with total payments required by the modified contract being substantially the same as or less than total payments required by the original 
contract. The total benefit related to rent abatements recognized during Fiscal 2022, Fiscal 2021 and Fiscal 2020 was $3.9 million, $17.9 million and 
$30.7 million, respectively.

(3) Refer to Note 8, “ASSET IMPAIRMENT,” for details related to operating lease right-of-use asset impairment charges.

The following table provides the weighted-average remaining lease term of the Company’s operating leases and the weighted-
average discount rate used to calculate the Company’s operating lease liabilities as of January 28, 2023 and January 29, 2022:

Weighted-average remaining lease term (years)

Weighted-average discount rate

January 28, 2023

January 29, 2022

5.3

 6.3 %

5.3

 5.6 %

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The following table provides a maturity analysis of the Company’s operating lease liabilities, based on undiscounted cash flows, 
as of January 28, 2023:

(in thousands)
Fiscal 2023

Fiscal 2024

Fiscal 2025

Fiscal 2026

Fiscal 2027

Fiscal 2028 and thereafter

Total undiscounted operating lease payments

Less: Imputed interest

Present value of operating lease liabilities

January 28, 2023

$ 

$ 

263,666 

200,487 

179,138 

149,074 

121,177 

171,132 

1,084,674 

(157,334) 

927,340 

The Company had temporarily suspended rent payments for a number of stores that were closed as a result of COVID-19, and 
has had success in obtaining certain rent abatements and landlord concessions of rent payable. 

During Fiscal 2020, the Company entered into a sublease agreement with a third party for the remaining lease term of one of its 
European  Abercrombie  &  Fitch  flagship  store  locations  upon  its  closure.  As  of  January  28,  2023,  the  Company's  subleased 
property had  a remaining lease term of 4.8 years with  the sublease term from February 1, 2021 through November  30,  2027. 
Future minimum tenant operating lease payments remaining under this sublease as of January 28, 2023 were $19.5 million.

The  Company  had  minimum  commitments  related  to  operating  lease  contracts  that  have  not  yet  commenced,  primarily  for  its 
Company-operated retail stores, of approximately $28.3 million as of January 28, 2023. 

8. ASSET IMPAIRMENT

The following table provides additional details related to long-lived asset impairment charges:

(in thousands)

Operating lease right-of-use asset impairment 
Property and equipment asset impairment (1)

Total asset impairment

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

$ 

6,248  $ 

7,783 

9,509  $ 

2,591 

14,031  $ 

12,100  $ 

57,026 

15,911 

72,937 

(1)

 Amounts for Fiscal 2022 include store asset impairment of $4.8 million and other asset impairment of $3.0 million.  Amounts for Fiscal 2021 and Fiscal 
2020 only include store asset impairment.

Asset  impairment  charges  for  Fiscal  2022  were  related  to  certain  of  the  Company’s  assets  including  stores  across  brands, 
geographies and store formats and other assets. The impairment charges for Fiscal 2022 reduced the then carrying amount of 
the  impaired  stores’  assets  to  their  fair  value  of  approximately  $39.7  million,  including  $37.0  million  related  to  operating  lease 
right-of-use assets.

Asset impairment charges for Fiscal 2021 were related to certain of the Company’s stores across brands, geographies and store 
formats. The  impairment  charges  for Fiscal  2021  reduced  the  then  carrying  amount  of  the  impaired  stores’  assets  to  their  fair 
value of approximately $18.1 million, including $15.6 million related to operating lease right-of-use assets.

Asset impairment charges for Fiscal 2020 were principally the result of the impact of COVID-19 and were related to certain of the 
Company’s  stores  across  brands,  geographies  and  store  formats.  The  impairment  charges  for  Fiscal  2020  reduced  the  then 
carrying amount of the impaired stores’ assets to their fair value of approximately $95.0 million, including $87.2 million related to 
operating lease right-of-use assets.

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

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9. RABBI TRUST ASSETS

Investments of Rabbi Trust assets consisted of the following as of January 28, 2023 and January 29, 2022:

(in thousands)
Trust-owned life insurance policies (at cash surrender value)

Money market funds

Rabbi Trust assets

January 28, 2023

January 29, 2022

$ 

$ 

51,681  $ 

62,272 

1 

1 

51,682  $ 

62,273 

Realized  gains  resulting  from  the  change  in  cash  surrender  value  of  the  Rabbi  Trust  assets  for  Fiscal 2022,  Fiscal  2021  and 
Fiscal 2020 were as follows:

(in thousands)

Fiscal 2022

Fiscal 2021

Fiscal 2020

Realized gains related to Rabbi Trust assets

$ 

1,409  $ 

1,483  $ 

1,740 

Refer to Note 2, “SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Rabbi Trust Assets,” for further discussion related to 
the Company’s Rabbi Trust assets.

10. ACCRUED EXPENSES

Accrued expenses consisted of:

(in thousands)
Accrued payroll and related costs (1)

Accrued costs related to the Company’s DCs and digital operations
Other (2)

Accrued expenses

January 28, 2023

January 29, 2022

$ 

$ 

70,815  $ 

38,729 

303,759 

413,303  $ 

90,906 

48,395 

256,514 

395,815 

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

(1) 
(2)  Other primarily includes the Company’s gift card and loyalty programs liabilities, accrued taxes, accrued rent and expenses incurred but not yet paid 
primarily  related  to  outside  services  associated  with  store  and  home  office  operations  and  construction  in  progress.  Refer  to  Note  3,  “REVENUE 
RECOGNITION.”

11. INCOME TAXES

Impact of valuation allowances and other tax benefits during Fiscal 2022

During  Fiscal  2022,  the  Company  did  not  recognize  income  tax  benefits  on  $136.5  million  of  pre-tax  losses,  primarily  in 
Switzerland, resulting in adverse tax impacts of $20.0 million.

As of January 28, 2023, the Company had net deferred tax assets of approximately $8.0 million, $9.1 million, and $15.6 million in 
China, Japan, and the United Kingdom, respectively. In China, while the Company believes  these net deferred tax assets are 
more-likely-than-not  to  be  realized,  it  is  not  a  certainty,  as  the  Company  continues  to  evaluate  and  respond  to  emerging 
situations, such as the COVID-19 pandemic. The company is closely monitoring its operations on China. Should circumstances 
change, the net deferred tax assets may become subject to valuation allowances in the future, which would result in additional 
tax expense. 

Impact of valuation allowances and other tax benefits during Fiscal 2021

During Fiscal 2021, as a result of the improvement seen in business conditions, the Company recognized $42.5 million of tax 
benefits due to the release of valuation allowances, primarily in the U.S. and Germany, and a discrete tax benefit of $3.9 million 
due  to  a  rate  change  in  the  United  Kingdom. The  Company  did  not  recognize  income  tax  benefits  on $25.3  million  of  pre-tax 
losses generated in Fiscal 2021, primarily in Switzerland, resulting in adverse tax impacts of $4.6 million.

As of January 29, 2022, the Company had net deferred tax assets of approximately $9.7 million, $12.2 million, and $20.1 million 
in China, Japan, and the United Kingdom, respectively. 

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Impact of valuation allowances and other tax charges during Fiscal 2020

The Company’s effective tax rate for Fiscal 2020 was impacted by $101.4 million of adverse tax impacts, ultimately giving rise to 
income tax expense on a consolidated pre-tax loss. During Fiscal 2020, due to the significant adverse impacts of COVID-19, the 
Company did not recognize income tax benefits on $203.4 million of pre-tax losses, resulting in an adverse tax impact of $39.5 
million.  The  Company  recognized  charges  of  $61.9  million  related  to  the  establishment  of  valuation  allowances  and  other  tax 
charges  in  certain  jurisdictions  during  Fiscal  2020,  including,  but  not  limited  to,  the  U.S.,  Switzerland,  Germany  and  Japan, 
principally as a result of the significant adverse impacts of COVID-19. 

Components of Income Taxes

Income (loss) before income taxes consisted of:

(in thousands)
Domestic (1)

Foreign

Income (loss) before income taxes

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

$ 

152,608  $ 

283,793  $ 

(85,592) 

25,181 

67,016  $ 

308,974  $ 

(33,417) 

(15,326) 

(48,743) 

(1)

Includes intercompany charges to foreign affiliates for management fees, cost-sharing, royalties and interest and excludes a portion of foreign income 
that is currently includable on the U.S. federal income tax return.

Income tax expense (benefit) consisted of:

(in thousands)
Current:

Federal

State

Foreign

Total current

Deferred:

Federal (1)

State
Foreign (1)

Total deferred

Income tax expense

Fiscal 2022

Fiscal 2021

Fiscal 2020

25,577  $ 

51,321  $ 

10,371 

9,183 

14,061 

5,448 

45,131  $ 

70,830  $ 

9,434 

3,750 

23,041 

36,225 

4,586  $ 

(15,401)  $ 

(73,104) 

$ 

$ 

$ 

122 

6,792 

11,500 

(8,995) 

(7,526) 

(31,922) 

$ 

56,631  $ 

38,908  $ 

8,829 

88,261 

23,986 

60,211 

(1) 

Fiscal 2020 includes federal deferred tax benefit of $79.0 million and foreign deferred tax expense of $88.6 million due to the establishment of an 
additional valuation allowance in Switzerland.

The  Company’s  earnings  and  profits  from  its  foreign  subsidiaries  could  be  repatriated  to  the  U.S.,  without  incurring  additional 
U.S. federal income tax. The Company determined that the balance of the Company’s undistributed earnings and profits from its 
foreign subsidiaries as of February 2, 2019 are considered indefinitely reinvested outside of the U.S., and if these funds were to 
be  repatriated  to  the  U.S.,  the  Company  would  expect  to  incur  an  insignificant  amount  of  state  income  taxes  and  foreign 
withholding taxes. The Company accrues for both state income taxes and foreign withholding taxes with respect to earnings and 
profits  earned  after  February  2,  2019,  in  such  a  manner  that  these  funds  may  be  repatriated  without  incurring  additional  tax 
expense.

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Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:

U.S. Federal income tax rate

Net change in valuation allowances
Foreign taxation of non-U.S. operations  (1)

State income tax, net of U.S. federal income tax effect

Audit and other adjustments to prior years' accruals, net

Internal Revenue Code Section 162(m)

Additional U.S. taxation of non-U.S.operations
Tax expense (benefit) recognized on share-based compensation expense (2) 

Credit for increasing research activities

Net income attributable to noncontrolling interests

Other items, net

Other statutory tax rate and law changes

Total

Fiscal 2022

Fiscal 2021

Fiscal 2020

 21.0 %

 30.7 

 16.2 

 12.4 

 5.9 

 4.6 

 1.3 

 (2.6) 

 (2.5) 

 (2.4) 

 (0.1) 

 — 

 21.0 %

 (19.7) 

 21.0 %

 (177.2) 

 3.5 

 4.4 

 4.7 

 1.6 

 0.6 

 (1.3) 

 (0.6) 

 (0.5) 

 0.1 

 (1.2) 

 32.7 

 2.6 

 2.6 

 (5.5) 

 (0.2) 

 (7.5) 

 2.6 

 2.2 

 0.9 

 2.3 

 84.5 %

 12.6 %

 (123.5) %

(1)

(2)

U.S.  branch  operations  in  Puerto  Rico  were  subject  to  tax  at  the  full  U.S.  tax  rates.  As  a  result,  income  from  these  operations  do  not  create 
reconciling items..
Refer to Note 13, “SHARE-BASED COMPENSATION,” for details on discrete income tax benefits and charges related to share-based compensation 
awards during Fiscal 2022, Fiscal 2021, and Fiscal 2020.

The  impact  of  various  tax  items  on  the  Company's  effective  tax  rate  were  amplified  on  a  percentage  basis  at  lower  levels  of 
consolidated  pre-tax  income  (loss)  in  absolute  dollars.    The  effective  tax  rate  remains  dependent  on  jurisdictional  mix.    The 
taxation  of  non-U.S.  operations  line  items  in  the  table  above  excludes  items  related  to  the  Company's  non-U.S.  operations 
reported separately in the appropriate corresponding line items.   

For Fiscal 2022, Fiscal 2021 and Fiscal 2020, the impact of taxation of non-U.S. operations on the Company's effective income 
tax rate was related to the Company's jurisdictional mix driven primarily by the Company’s operations within Switzerland.

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Components of Deferred Income Tax Assets and Deferred Income Tax Liabilities

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

(in thousands)
Deferred income tax assets:

Operating lease liabilities
Intangibles, foreign step-up in basis (1)

Net operating losses (NOL), tax credit and other carryforwards

Accrued expenses and reserves

Deferred compensation

Inventory

Rent

Other

Valuation allowances

Total deferred income tax assets

Deferred income tax liabilities:

Operating lease right-of-use assets

Property and equipment and intangibles

Prepaid expenses

Store supplies

Undistributed profits of non-U.S. subsidiaries
Rent
U.S. offset to foreign deferred tax assets, excluding intangibles, foreign step-up in basis (2)

Other

Total deferred income tax liabilities

Net deferred income tax assets (2)

January 28, 2023

January 29, 2022

$ 

237,699  $ 

242,290 

$ 

$ 

61,030 

68,874 

27,435 

16,023 

5,475 

1,502 

946 

64,281 

52,970 

30,026 

16,050 

3,578 

— 

45 

(130,622) 

288,362  $ 

(110,057) 

299,183 

(205,827)  $ 

(14,273) 

(1,634) 

(1,933) 

(1,111) 

— 

(175) 

(428) 

(202,916) 

(10,150) 

(2,451) 

(1,811) 

(1,082) 

(360) 

— 

(30) 

$ 

$ 

(225,381)  $ 

(218,800) 

62,981  $ 

80,383 

(1)

(2)

During  Fiscal  2021  an  agreement  was  reached  with  the  Swiss  taxing  authorities  to  decrease  the  basis  step  up  to  be  amortized  in  the  future  thus 
decreasing  the  deferred  asset  by  $14.8  million.  Because  of  the  valuation  allowance,  there  is  no  impact  on  consolidated  tax  expense  from  this 
agreement.  
This table does not reflect deferred taxes classified within AOCL. As of January 28, 2023 and January 29, 2022, AOCL included deferred tax assets 
of $0.9 million and deferred tax liabilities of $1.1 million, respectively.

As of January 28, 2023, the Company had deferred tax assets related to foreign and state NOL and credit carryforwards of $68.6 
million  and  $0.3  million,  respectively,  that  could  be  utilized  to  reduce  future  years’  tax  liabilities.  If  not  utilized,  a  portion  of  the 
foreign  NOL  carryforwards  will  begin  to  expire  in  2025  and  a  portion  of  state  NOL  carryforwards  will  begin  to  expire  in  2025. 
Some foreign NOLs have an indefinite carryforward period. As of January 28, 2023, the Company did not have any deferred tax 
assets related to federal NOL and credit carryforwards that could be utilized to reduce future years’ tax liabilities.

The  valuation  allowances  for  Fiscal  2022,  2021,  2020  and  2019  was  $130.6  million,  $110.1  million,  $174.3  million  and 
$8.9  million,  respectively.  The  valuation  allowances  as  of  Fiscal  2022    have  been  established  against  deferred  tax  assets, 
primarily  in  Japan  and  Switzerland.  All  valuation  allowances  have  been  reflected  through  the  Consolidated  Statements  of 
Operations and Comprehensive (Loss) Income. The valuation allowances will remain until there is sufficient positive evidence to 
release them, such positive evidence would include having positive income within the jurisdiction. In such case, the Company will 
record an adjustment in the period in which a determination is made. The Company continues to review the need for valuation 
allowances on a quarterly basis.

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Share-based Compensation

Refer  to  Note  13,  “SHARE-BASED  COMPENSATION,”  for  details  on  income  tax  benefits  and  charges  related  to  share-based 
compensation awards during Fiscal 2022, Fiscal 2021 and Fiscal 2020.

Other

The amount of uncertain tax positions as of January 28, 2023, January 29, 2022 and January 30, 2021, which would impact the 
Company’s effective tax rate if recognized and a reconciliation of the beginning and ending amounts of uncertain tax positions, 
excluding accrued interest and penalties, are as follows:

(in thousands)
Uncertain tax positions, beginning of the year

Gross addition for tax positions of the current year

Gross addition (reduction) for tax positions of prior years

Reductions of tax positions of prior years for:

Lapses of applicable statutes of limitations

Settlements during the period

Uncertain tax positions, end of year

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

1,114  $ 

995  $ 

339 

907 

(66) 

(1) 

490 

(136) 

(81) 

(154) 

$ 

2,293  $ 

1,114  $ 

1,794 

235 

395 

(48) 

(1,381) 

995 

The  IRS  is  currently  conducting  an  examination  of  the  Company’s  U.S.  federal  income  tax  returns  for Fiscal  2022  and  Fiscal 
2021 as part of the IRS’ Compliance Assurance Process program. The IRS examinations for Fiscal 2020 and prior years have 
been completed. State and foreign returns are generally subject to examination for a period of three to five years after the filing of 
the  respective  return. The  Company  typically  has  various  state  and  foreign  income  tax  returns  in  the  process  of  examination, 
administrative  appeals  or  litigation.  The  outcome  of  the  examinations  is  not  expected  to  have  a  material  impact  on  the 
Company’s financial statements. The Company believes that some of these audits and negotiations will conclude within the next 
12 months and that it is reasonably possible the amount of uncertain income tax positions, including interest, may change by an 
immaterial amount due to settlement of audits and expiration of statues of limitations.  

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

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

12. BORROWINGS

Details on the Company’s long-term borrowings, net, as of January 28, 2023 and January 29, 2022 are as follows:

(in thousands)

Long-term portion of borrowings, gross at carrying amount

Unamortized fees

Long-term portion of borrowings, net

Senior Secured Notes

January 28, 2023

January 29, 2022

$ 

$ 

299,730  $ 

(2,878) 

296,852  $ 

307,730 

(4,156) 

303,574 

On  July  2,  2020,  Abercrombie  &  Fitch  Management  Co.  (“A&F  Management”),  a  wholly-owned  indirect  subsidiary  of  A&F, 
completed the private offering of $350 million aggregate principal amount of senior secured notes (the “Senior Secured Notes”), 
at an offering price of 100% of the principal amount thereof. The Senior Secured Notes will mature on July 15, 2025 and bear 
interest at a rate of 8.75% per annum, with semi-annual interest payments, which began in January 2021. The Senior Secured 
Notes  were  issued  pursuant  to  an  indenture,  dated  as  of  July  2,  2020,  by  and  among A&F  Management, A&F  and  certain  of 
A&F’s wholly-owned subsidiaries, as guarantors, and U.S. Bank National Association (now known as U.S. Bank Trust National 
Association),  as  trustee,  and  as  collateral  agent. During  Fiscal  2022  and  2021, A&F  Management  purchased $8.0  million  and 
$42.3  million,  respectively,  of  outstanding  Senior  Secured  Notes  and  incurred  $0.1  million  of  gain  and  $5.3  million  of  loss, 
respectively, on extinguishment of debt, recognized in interest expense, net on the Consolidated Statements of Operations and 
Comprehensive (Loss) Income.

The  Company  used  the  net  proceeds  from  the  offering  of  the  Senior  Secured  Notes  to  repay  outstanding  borrowings  and 

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accrued  interest  of  $223.6  million  and  $110.8  million  under  its  prior  term  loan  facility  and  the  ABL  Facility  (defined  below), 
respectively,  with  the  remaining  net  proceeds  used  towards  fees  and  expenses  in  connection  with  such  repayments  and  the 
offering of the Senior Secured Notes.

The  Company  recorded  deferred  financing  fees  associated  with  the  issuance  of  the  Senior  Secured  Notes,  which  are  being 
amortized to interest expense over the contractual term of the Senior Secured Notes.

ABL Facility

On  April  29,  2021,  A&F  Management,  in  A&F  Management’s  capacity  as  the  lead  borrower,  and  the  other  borrowers  and 
guarantors party thereto, amended and restated in its entirety the Credit Agreement, dated as of August 7, 2014, as amended on 
September  10,  2015,  and  on  October  19,  2017  (as  amended  and  restated,  the  “Amended  and  Restated  Credit Agreement”), 
among  A&F  Management,  the  other  borrowers  and  guarantors  party  thereto,  the  lenders  party  thereto,  Wells  Fargo  Bank, 
National Association, as administrative agent for the lenders, and the other parties thereto. 

The  Amended  and  Restated  Credit  Agreement  continues  to  provide  for  a  senior  secured  revolving  credit  facility  of  up  to 
$400.0 million (the “ABL Facility”), and (i) extended the maturity date of the ABL Facility to April 29, 2026; and (ii) modified the 
required fee on undrawn commitments under the ABL Facility from 0.25% per annum to either 0.25% or 0.375% per annum (with 
the ultimate amount dependent on the conditions detailed in the Amended and Restated Credit Agreement).

On  March  15,  2023,  the  Company  entered  into  the  First  Amendment  to  the  Amended  and  Restated  Credit  Agreement  to 
eliminate LIBO rate based loans and to use the current market definitions with respect to the Secured Overnight Financing Rate 
(“SOFR”), as well as to reflect other conforming changes. 

The Company did not have any borrowings outstanding under the ABL Facility as of January 28, 2023 or as of January 29, 2022.

The ABL Facility is subject to a borrowing base, consisting primarily of U.S. inventory, with a letter of credit sub-limit of $50 million 
and  an  accordion  feature  allowing  A&F  to  increase  the  revolving  commitment  by  up  to  $100  million  subject  to  specified 
conditions. The ABL Facility is available for working capital, capital expenditures and other general corporate purposes. 

As of January 28, 2023, the Company had availability under the ABL Facility of $386.8 million, net of $0.6 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 $30 
million  under  the ABL  Facility,  borrowing  capacity  available  to  the  Company  under  the ABL  Facility  was  $348.1  million  as  of 
January 28, 2023.

Obligations under the ABL Facility are unconditionally guaranteed by A&F and certain of A&F’s subsidiaries. The ABL Facility is 
secured  by  a  first-priority  security  interest  in  certain  working  capital  of  the  borrowers  and  guarantors  consisting  of  inventory, 
accounts  receivable  and  certain  other  assets. The ABL  Facility  is  also  secured  by  a  second-priority  security  interest  in  certain 
property  and  assets  of  the  borrowers  and  guarantors,  including  certain  fixed  assets,  intellectual  property,  stock  of  subsidiaries 
and certain after-acquired material real property. 

At the Company’s option, borrowings under the ABL Facility will bear interest at either (a) an adjusted LIBO rate plus a margin of 
1.25% to 1.50% per annum, or (b) an alternate base rate plus a margin of 0.25% to 0.50% per annum. As of January 28, 2023, 
the applicable margins with respect to LIBO rate loans and base rate loans, including swing line loans, under the ABL Facility 
were 1.25% and 0.25% per annum, respectively, and are subject to adjustment each fiscal quarter based on average historical 
availability during the preceding quarter. Following the March 15, 2023 amendment, borrowings under the ABL will bear interest 
using  the  current  market  SOFR  rate.  Customary  agency  fees  and  letter  of  credit  fees  are  also  payable  in  respect  of  the ABL 
Facility.

Representations, Warranties and Covenants

The  agreements  related  to  the  Senior  Secured  Notes  and  the  ABL  Facility  contain  various  representations,  warranties  and 
restrictive  covenants  that,  among  other  things  and  subject  to  specified  exceptions,  restrict  the  ability  of  the  Company  and  its 
subsidiaries  to:  grant  or  incur  liens;  incur,  assume  or  guarantee  additional  indebtedness;  sell  or  otherwise  dispose  of  assets, 
including capital stock of subsidiaries; make investments in certain subsidiaries; pay dividends, make distributions or redeem or 
repurchase capital stock; change the nature of their business; and consolidate or merge with or into, or sell substantially all of the 
assets of the Company or A&F Management to, another entity.

The Senior Secured Notes are guaranteed on a senior secured basis, jointly and severally, by A&F and each of the existing and 
future wholly-owned domestic restricted subsidiaries of A&F that guarantee or will guarantee A&F Management’s ABL Facility or 
certain future capital markets indebtedness.

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The Company was in compliance with all debt covenants under the agreements related to the Senior Secured Notes and the ABL 
Facility as of January 28, 2023.

13. SHARE-BASED COMPENSATION

Plans

As  of  January  28,  2023,  the  Company  had  two  primary  share-based  compensation  plans:  (i)  the  2016  Directors  LTIP,  with 
900,000  shares  of  Common  Stock  authorized  for  issuance,  under  which  the  Company  is  authorized  to  grant  restricted  stock, 
restricted stock units, stock appreciation rights, stock options and deferred stock awards to non-associate members of the Board 
of Directors; and (ii) the 2016 Associates LTIP, with 10,665,000 shares of Common Stock authorized for issuance, under which 
the Company is authorized to grant restricted stock, restricted stock units, performance share awards, stock appreciation rights 
and  stock  options  to  associates  of  the  Company.  The  Company  also  has  outstanding  shares  from  two  other  share-based 
compensation  plans  under  which  the  Company  granted  restricted  stock  units,  performance  share  awards,  stock  appreciation 
rights  and  stock  options  to  associates  of  the  Company  and  restricted  stock  units,  stock  options  and  deferred  stock  awards  to 
non-associate  members  of  the  Board  of  Directors  in  prior  years.  No  new  shares  may  be  granted  under  these  previously-
authorized plans and any outstanding awards continue in effect in accordance with their respective terms.

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

•

•

•

For  non-associate  directors:  awards  with  an  aggregate  fair  market  value  on  the  date  of  the  grant  of  no  more  than 
$300,000;
For the non-associate director occupying the role of Non-Executive Chairperson of the Board (if any): additional awards 
with an aggregate fair market value on the date of grant of no more than $500,000; and
For the non-associate director occupying the role of Executive Chairperson of the Board (if any): additional awards with 
an aggregate fair market value on the date of grant of no more than $2,500,000.

Under the 2016 Directors LTIP, restricted stock units are subject to a minimum vesting period ending no sooner than the earlier of 
(i) the first anniversary of the grant date or (ii) the date of the next regularly scheduled annual meeting of stockholders held after 
the  grant  date. Any  stock  appreciation  rights  or  stock  options  granted  under  this  plan  have  the  same  minimum  vesting  period 
requirements as restricted stock units and, in addition,  must have a term that does not exceed a period of ten years  from  the 
grant date, subject to forfeiture under the terms of the 2016 Directors LTIP.

The 2016 Associates LTIP, a stockholder-approved plan, permits the Company to annually grant one or more types of awards 
covering  up  to  an  aggregate  for  all  awards  of  1.0  million  underlying  shares  of  the  Common  Stock  to  any  associate  of  the 
Company. Under the 2016 Associates LTIP, for restricted stock units that have performance-based vesting, performance must be 
measured over a period of at least one year and for restricted stock units that do not have performance-based vesting, vesting in 
full may not occur more quickly than in pro-rata installments over a period of three years from the date of the grant, with the first 
installment  vesting  no  sooner  than  the  first  anniversary  of  the  date  of  the  grant.  In  addition,  any  stock  options  or  stock 
appreciation rights granted under this plan must have a minimum vesting period of one year and a term that does not exceed a 
period of ten years from the grant date, subject to forfeiture under the terms of the 2016 Associates LTIP.

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

Financial Statement Impact

The following table details share-based compensation expense and the related income tax benefit for Fiscal 2022, Fiscal 2021 
and Fiscal 2020:

(in thousands)

Share-based compensation expense

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

28,995  $ 

29,304  $ 

18,682 

Income tax benefit associated with share-based compensation expense recognized during 

the period (1)

3,515 

3,338 

— 

(1)   No income tax benefit was recognized during Fiscal 2020 due to the establishment of a valuation allowance.

The following table details discrete income tax benefits and charges related to share-based compensation awards during Fiscal 
2022, Fiscal 2021 and Fiscal 2020:

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(in thousands)

Fiscal 2022

Fiscal 2021

Fiscal 2020

Income tax discrete benefits (charges) realized for tax deductions related to the issuance of 

shares during the period

$ 

1,956  $ 

4,198  $ 

(1,719) 

Income tax discrete charges realized upon cancellation of stock appreciation rights during 

the period

(226) 

(204) 

Total income tax discrete benefits (charges) related to share-based compensation awards

$ 

1,730  $ 

3,994  $ 

(1,943) 

(3,662) 

The following table details the amount of employee tax withheld by the Company upon the issuance of shares associated with 
restricted stock units vesting and the exercise of stock appreciation rights for the Fiscal 2022, Fiscal 2021 and Fiscal 2020:

(in thousands)
Employee tax withheld upon issuance of shares (1)

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

14,464  $ 

13,163  $ 

5,694 

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

Restricted Stock Units

The following table summarizes activity for restricted stock units for Fiscal 2022:

Unvested at January 29, 2022

Granted

Change due to performance 
criteria achievement

Vested

Forfeited

Unvested at January 28, 2023 (1)

Service-based Restricted
Stock Units

Performance-based Restricted
Stock Units

Market-based Restricted
Stock Units

Number of 
Underlying
Shares 

Weighted-
Average Grant
Date Fair 
Value

Number of 
Underlying
Shares (1)

Weighted-
Average Grant
Date Fair 
Value

Number of 
Underlying
Shares (1)

Weighted-
Average Grant
Date Fair 
Value

2,532,240  $ 

1,012,916 

— 

(930,944) 

(152,817) 

17.16 

28.51 

— 

18.04 

20.42 

340,149  $ 

185,197 

5,668 

(194,465) 

— 

27.08 

30.24 

23.05 

23.05 

— 

680,184  $ 

92,603 

18,881 

(113,284) 

(16,247) 

22.81 

41.60 

36.24 

36.24 

16.24 

2,461,395  $ 

21.30 

336,549  $ 

31.08 

662,137  $ 

23.68 

(1)  Unvested shares related to restricted stock units with performance-based and market-based vesting conditions are reflected at 100% of their target 
vesting amount in the table above. Unvested shares related to restricted stock units with performance-based and market-based vesting conditions 
can be achieved at up to 200% of their target vesting amount.

The following table details unrecognized compensation cost and the remaining weighted-average period over which these costs 
are expected to be recognized for restricted stock units as of January 28, 2023:

(in thousands)

Service-based Restricted
Stock Units

Performance-based Restricted
Stock Units

Market-based Restricted
Stock Units

Unrecognized compensation cost

$ 

34,026  $ 

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

1.2

3,267  $ 

1.2

4,907 

0.9

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Additional information pertaining to restricted stock units for Fiscal 2022, Fiscal 2021 and Fiscal 2020 follows:

(in thousands)

Service-based restricted stock units:

Total grant date fair value of awards granted

Total grant date fair value of awards vested
Total intrinsic value of awards vested

Performance-based restricted stock units:

Total grant date fair value of awards granted

Total grant date fair value of awards vested

Market-based restricted stock units:

Total grant date fair value of awards granted

Total grant date fair value of awards vested

Total intrinsic value of awards vested

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

28,878  $ 

23,959  $ 

16,794 
28,037 

13,360 
36,507 

5,600 

4,482 

3,852 

4,105 

3,768 

5,059 

— 

3,966 

3,390 

3,335 

19,843 

14,083 
8,147 

— 

4,635 

8,443 

4,132 

3,263 

The  weighted-average  assumptions  used  for  market-based  restricted  stock  units  in  the  Monte  Carlo  simulation  during  Fiscal 
2022, Fiscal 2021 and Fiscal 2020 were as follows:

Grant date market price

Fair value

Assumptions:

Price volatility

Expected term (years)

Risk-free interest rate

Dividend yield

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

30.24 

$ 

31.78 

$ 

41.6 

49.81 

 66 %

2.8

 2.5 %

 — 

 66 %

2.9

 0.3 %

 — 

12.31 

16.24 

 67 %

2.4

 0.2 %

 — 

Average volatility of peer companies

Average correlation coefficient of peer companies

 72.3 %

 72.0 %

 66.0 %

0.515 

0.4694 

0.4967 

Stock Appreciation Rights

The following table summarizes stock appreciation rights activity for Fiscal 2022:

Number of
Underlying
Shares

Weighted-
Average
Exercise Price

Aggregate
Intrinsic Value

Weighted-
Average
Remaining
Contractual Life 
(years)

Outstanding at January 29, 2022

Granted

Exercised

Forfeited or expired

Outstanding at January 28, 2023

Stock appreciation rights exercisable at January 28, 2023

236,139  $ 

— 

(4,350) 

(41,200) 

190,589  $ 

190,589  $ 

32.55 

— 

22.46 

48.06 

29.43  $ 

29.43  $ 

1,262 

1,262 

1.7

1.7

No  stock  appreciation  rights  were  exercised  during  Fiscal  2022  or  Fiscal  2020. The  grant  date  fair  value  of  awards  exercised 
during Fiscal 2021 follows:

(in thousands)

Total grant date fair value of awards exercised

Fiscal 2021

$ 

1,069 

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

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14. DERIVATIVE INSTRUMENTS

As  of  January  28,  2023,  the  Company  had  outstanding  the  following  foreign  currency  exchange  forward  contracts  that  were 
entered into to hedge either a portion, or all, of forecasted  foreign-currency-denominated intercompany inventory transactions, 
the resulting settlement of the foreign-currency-denominated intercompany accounts receivable, or both:

(in thousands)

Euro
British pound

Canadian dollar
Japanese yen

Notional  Amount (1)

$ 

88,401 

59,514 

432 

273 

(1)

Amounts reported are the U.S. Dollar notional amounts outstanding as of January 28, 2023.

The fair value of derivative instruments is determined using quoted market prices of the same or similar instruments, adjusted for 
counterparty  risk.  The  location  and  amounts  of  derivative  fair  values  of  foreign  currency  exchange  forward  contracts  on  the 
Consolidated Balance Sheets as of January 28, 2023 and January 29, 2022 were as follows:

(in thousands)

Location

January 28, 2023

January 29, 2022

Location

January 28, 2023

January 29, 2022

Derivatives designated as cash 
flow hedging instruments

Other current 
assets

$ 

32  $ 

4,973 

Accrued 
expenses

$ 

4,986  $ 

— 

Refer to Note 4, “FAIR VALUE,” for further discussion of the determination of the fair value of derivative instruments. Additional 
information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow 
hedging instruments for Fiscal 2022, Fiscal 2021 and Fiscal 2020 follows:

(in thousands)
Gain recognized in AOCL (1)
Gain reclassified from AOCL into cost of sales, exclusive of depreciation and amortization (2)

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

2,844  $ 

11,987  $ 

13,781 

1,263 

7,619 

13,235 

(1)

(2)

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

Substantially all of the unrealized gains or losses related to foreign currency exchange forward contracts designated as cash flow 
hedging  instruments  as  of  January  28,  2023  will  be  recognized  within  the  Consolidated  Statements  of  Operations  and 
Comprehensive (Loss) Income over the next 12 months. 

Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated 
as hedging instruments for Fiscal 2022, Fiscal 2021 and Fiscal 2020 follows:

(in thousands)

Fiscal 2022

Fiscal 2021

Fiscal 2020

Gain recognized in other operating income, net

$ 

1,226  $ 

1,205  $ 

742 

Refer  to  Note  2,  “SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  Derivative  Instruments,”  for  discussion  regarding 
significant accounting policies related to the Company’s derivative instruments.

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15. ACCUMULATED OTHER COMPREHENSIVE LOSS

For Fiscal 2022, the activity in AOCL was as follows:

(in thousands)

Beginning balance at January 29, 2022

Other comprehensive (loss) income before reclassifications
Reclassified gain from AOCL (1)

Tax effect

Other comprehensive loss after reclassifications

Ending balance at January 28, 2023

Foreign Currency 
Translation Adjustment

Fiscal 2022

Unrealized Gain (Loss) 
on Derivative Financial 
Instruments

$ 

$ 

(120,689)  $ 

(11,964) 

— 

— 

(11,964) 

(132,653)  $ 

5,983  $ 

2,844 

(13,781) 

80 

(10,857) 

(4,874)  $ 

Total

(114,706) 

(9,120) 

(13,781) 

80 

(22,821) 

(137,527) 

(1)

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

For Fiscal 2021, the activity in AOCL was as follows:

(in thousands)

Beginning balance at January 30, 2021

Other comprehensive (loss) income before reclassifications
Reclassified gain from AOCL (1)

Tax effect

Other comprehensive (loss) income after reclassifications

Ending balance at January 29, 2022

Foreign Currency 
Translation Adjustment

Fiscal 2021

Unrealized Gain (Loss) 
on Derivative Financial 
Instruments

$ 

$ 

(97,772)  $ 

(22,917) 

— 

— 

(22,917) 

(120,689)  $ 

(4,535)  $ 

11,987 

(1,263) 

(206) 

10,518 

5,983  $ 

Total

(102,307) 

(10,930) 

(1,263) 

(206) 

(12,399) 

(114,706) 

(1)

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

For Fiscal 2020, the activity in AOCL was as follows:

(in thousands)

Foreign Currency 
Translation Adjustment

Fiscal 2020

Unrealized Gain (Loss) 
on Derivative Financial 
Instruments

Beginning balance at February 1, 2020

$ 

(109,967)  $ 

1,081  $ 

Other comprehensive income before reclassifications
Reclassified gain from AOCL (1)
Tax effect (2)

Other comprehensive income (loss) after reclassifications

Ending balance at January 30, 2021

$ 

12,195 

— 

— 

12,195 

(97,772)  $ 

7,619 

(13,235) 

— 

(5,616) 

Total

(108,886) 

19,814 

(13,235) 

— 

6,579 

(4,535)  $ 

(102,307) 

(1)

(2)

Amount  represents  gain  reclassified  from AOCL  to  cost  of  sales,  exclusive  of  depreciation  and  amortization,  on  the  Consolidated  Statements  of 
Operations and Comprehensive (Loss) Income.
No income tax benefit was recognized during Fiscal 2020 due to the establishment of a valuation allowance.

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16. SAVINGS AND RETIREMENT PLANS

The  Company  maintains  the Abercrombie  &  Fitch  Co.  Savings  and  Retirement  Plan,  a  qualified  plan. All  U.S.  associates  are 
eligible to participate in this plan if they are at least 21 years of age. In addition, the Company maintains the Abercrombie & Fitch 
Nonqualified  Savings  and  Supplemental  Retirement  Plan,  comprised  of  two  sub-plans  (Plan  I  and  Plan  II).  Plan  I  contains 
contributions  made  through  December  31,  2004,  while  Plan  II  contains  contributions  made  on  and  after  January  1,  2005. 
Participation in these plans is based on service and compensation. The Company’s contributions to these plans are based on a 
percentage  of  associates’  eligible  annual  compensation.  The  cost  of  the  Company’s  contributions  to  these  plans  was  $14.7 
million, $15.4 million and $14.1 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively.

In addition, the Company maintains the Supplemental Executive Retirement Plan which provides retirement income to its former 
Chief  Executive  Officer  for  life,  based  on  averaged  compensation  before  retirement,  including  base  salary  and  cash  incentive 
compensation.  As  of  January  28,  2023  and  January  29,  2022,  the  Company  has  recorded  $7.2  million  and  $8.4  million, 
respectively,  in  other  liabilities  on  the  Consolidated  Balance  Sheets  related  to  future  Supplemental  Executive  Retirement  Plan 
distributions.

17. SEGMENT REPORTING

The  Company’s  two  operating  segments  are  brand-based:  Hollister,  which  includes  the  Company’s  Hollister,  Gilly  Hicks  and 
Social  Tourist  brands,  and  Abercrombie,  which  includes  the  Company’s  Abercrombie  &  Fitch  and  abercrombie  kids  brands. 
These  operating  segments  have  similar  economic  characteristics,  classes  of  consumers,  products,  and  production  and 
distribution  methods,  operate  in  the  same  regulatory  environments,  and  have  been  aggregated  into  one  reportable  segment. 
Amounts  shown  below  include  net  sales  from  wholesale,  franchise  and  licensing  operations,  which  are  not  a  significant 
component of total revenue, and are aggregated within their respective operating segment and geographic area. 

The Company’s net sales by operating segment for Fiscal 2022, Fiscal 2021 and Fiscal 2020 were as follows:

(in thousands)
Hollister

Abercrombie

Total

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

$ 

1,962,885  $ 

2,147,979  $ 

1,734,866 

1,564,789 

3,697,751  $ 

3,712,768  $ 

1,834,349 

1,291,035 

3,125,384 

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. The Company’s net sales by geographic area for Fiscal 2022, Fiscal 2021 and Fiscal 2020 were as follows:

(in thousands)
U.S.

EMEA

APAC
Other (1)

Total international

Total

Fiscal 2022

Fiscal 2021

Fiscal 2020

$ 

2,758,294  $ 

2,652,158  $ 

2,127,403 

665,828 

122,367 

151,262 

755,072 

171,701 

133,837 

939,457  $ 

1,060,610  $ 

709,451 

176,636 

111,894 

997,981 

3,697,751  $ 

3,712,768  $ 

3,125,384 

$ 

$ 

 (1)  Other includes all sales that do not fall within the United States, EMEA, or APAC regions, which are derived primarily in Canada.

The  Company’s  long-lived  assets  and  intellectual  property,  which  primarily  relates  to  trademark  assets  associated  with  the 
Company’s international operations, by geographic area as of January 28, 2023 and January 29, 2022 were as follows:

(in thousands)
U.S.

EMEA

APAC
Other (1)

Total international

Total

January 28, 2023

January 29, 2022

$ 

910,696  $ 

317,712 

49,771 

18,685 

386,168  $ 

849,298 

272,348 

83,830 

23,599 

379,777 

$ 

$ 

1,296,864  $ 

1,229,075 

 (1)  Other includes amounts that do not fall within the United States, EMEA, or APAC regions, which are derived primarily in Canada.

Abercrombie & Fitch Co.

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Abercrombie & Fitch Co.

18. CONTINGENCIES

The  Company  is  a  defendant  in  lawsuits  and  other  adversarial  proceedings  arising  in  the  ordinary  course  of  business.  The 
Company’s legal costs incurred in connection with the resolution of claims and lawsuits are generally expensed as incurred, and 
the Company establishes estimated liabilities for the outcome of litigation where losses are deemed probable and the amount of 
loss, or range of loss, is reasonably estimable. The Company also determines estimates of reasonably possible losses or ranges 
of  reasonably  possible  losses  in  excess  of  related  accrued  liabilities,  if  any,  when  it  has  determined  that  a  loss  is  reasonably 
possible and it is able to determine such estimates. Based on currently available information, the Company cannot estimate a 
range of reasonably possible losses in excess of the accrued charges for legal contingencies. In addition, the Company has not 
established  accruals  for  certain  claims  and  legal  proceedings  pending  against  the  Company  where  it  is  not  possible  to 
reasonably estimate the outcome or potential liability, and the Company cannot estimate a range of reasonably possible losses 
for these legal matters.

Actual liabilities may differ from the amounts recorded, due to uncertainties regarding final settlement agreement negotiations, 
court approvals and the terms of any approval by the courts, and there can be no assurance that final resolution of legal matters 
will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s 
assessment of the current exposure could change in the event of the discovery of additional facts.

Abercrombie & Fitch Co.

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Report of Independent Registered Public Accounting Firm 

To the Board of Directors and Stockholders of Abercrombie & Fitch Co. 

Opinions on the Financial Statements and Internal Control over Financial Reporting

We  have  audited  the  accompanying  consolidated  balance  sheets  of  Abercrombie  &  Fitch  Co.  and  its  subsidiaries  (the 
“Company”)  as  of  January  28,  2023  and  January  29,  2022,  and  the  related  consolidated  statements  of  operations  and 
comprehensive  (loss)  income,  of  stockholders’  equity  and  of  cash  flows  for  each  of  the  three  years  in  the  period  ended 
January 28, 2023, including the related notes (collectively referred to as the “consolidated financial statements”). We also have 
audited the Company's internal control over financial reporting as of January 28, 2023, based on criteria established in Internal 
Control  -  Integrated  Framework  (2013)  issued  by  the  Committee  of  Sponsoring  Organizations  of  the  Treadway  Commission 
(COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position 
of the Company as of January 28, 2023 and January 29, 2022, and the results of its operations and its cash flows for each of the 
three  years  in  the  period  ended  January  28,  2023  in  conformity  with  accounting  principles  generally  accepted  in  the  United 
States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial 
reporting as of January 28, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the 
COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control 
over  financial  reporting,  and  for  its  assessment  of  the  effectiveness  of  internal  control  over  financial  reporting,  included  in 
Management’s  Annual  Report  on  Internal  Control  over  Financial  Reporting  appearing  under  Item  9A.  Our  responsibility  is  to 
express  opinions  on  the  Company’s  consolidated  financial  statements  and  on  the  Company's  internal  control  over  financial 
reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board 
(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal 
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the 
audits  to  obtain  reasonable  assurance  about  whether  the  consolidated  financial  statements  are  free  of  material  misstatement, 
whether  due  to  error  or  fraud,  and  whether  effective  internal  control  over  financial  reporting  was  maintained  in  all  material 
respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement 
of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. 
Such  procedures  included  examining,  on  a  test  basis,  evidence  regarding  the  amounts  and  disclosures  in  the  consolidated 
financial  statements.  Our  audits  also  included  evaluating  the  accounting  principles  used  and  significant  estimates  made  by 
management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control 
over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a 
material  weakness  exists,  and  testing  and  evaluating  the  design  and  operating  effectiveness  of  internal  control  based  on  the 
assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We 
believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A  company’s  internal  control  over  financial  reporting  is  a  process  designed  to  provide  reasonable  assurance  regarding  the 
reliability  of  financial  reporting  and  the  preparation  of  financial  statements  for  external  purposes  in  accordance  with  generally 
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that
(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions 
of  the  assets  of  the  company;  (ii)  provide  reasonable  assurance  that  transactions  are  recorded  as  necessary  to  permit 
preparation  of  financial  statements  in  accordance  with  generally  accepted  accounting  principles,  and  that  receipts  and 
expenditures  of  the  company  are  being  made  only  in  accordance  with  authorizations  of  management  and  directors  of  the 
company;  and  (iii)  provide  reasonable  assurance  regarding  prevention  or  timely  detection  of  unauthorized  acquisition,  use,  or 
disposition of the company’s assets that could have a material effect on the financial statements.

Because  of  its  inherent  limitations,  internal  control  over  financial  reporting  may  not  prevent  or  detect  misstatements.  Also, 
projections  of  any  evaluation  of  effectiveness  to  future  periods  are  subject  to  the  risk  that  controls  may  become  inadequate 
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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Critical Audit Matters

The  critical  audit  matter  communicated  below  is  a  matter  arising  from  the  current  period  audit  of  the  consolidated  financial 
statements  that  was  communicated  or  required  to  be  communicated  to  the  audit  committee  and  that  (i)  relates  to  accounts  or 
disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or 
complex  judgments.  The  communication  of  critical  audit  matters  does  not  alter  in  any  way  our  opinion  on  the  consolidated 
financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate 
opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Impairment of Long-Lived Assets – Stores

As described in Notes 2, 6 and 8 to the consolidated financial statements, the Company’s consolidated property and equipment, 
net balance was $551.6 million and consolidated operating lease right-of-use assets balance was $723.6 million as of January 
28, 2023. During the year ended January 28, 2023, the Company recognized long-lived asset store impairment charges of
$11.0 million. The Company’s long-lived assets, primarily operating lease right-of-use assets, leasehold improvements, furniture, 
fixtures  and  equipment,  are  grouped  with  other  assets  and  liabilities  at  the  store  level,  which  is  the  lowest  level  for  which 
identifiable  cash  flows  are  largely  independent  of  the  cash  flows  of  other  assets  and  liabilities.  On  at  least  a  quarterly  basis, 
management  reviews  the  Company’s  asset  groups  for  indicators  of  impairment,  which  include,  but  are  not  limited  to,  material 
declines in operational performance, a history of losses, an expectation of future losses, adverse market conditions, store closure 
or relocation decisions, and any other events or changes in circumstances that would indicate the carrying amount of an asset 
group might not be recoverable. If an asset group displays an indicator of impairment, it is tested for recoverability by comparing 
the  sum  of  the  estimated  future  undiscounted  cash  flows  attributable  to  the  asset  group  to  the  carrying  amount  of  the  asset 
group.  This  recoverability  test  requires  management  to  make  assumptions  and  judgments  related,  but  not  limited,  to 
management’s  expectations  for  future  cash  flows  from  operating  the  store.  The  key  assumption  used  in  developing  these 
projected  cash  flows  used  in  the  recoverability  test  is  estimated  sales  growth  rate.  If  the  sum  of  the  estimated  future 
undiscounted  cash  flows  attributable  to  an  asset  group  is  less  than  its  carrying  amount,  and  it  is  determined  that  the  carrying 
amount of the asset group is not recoverable, management determines if there is an impairment loss by comparing the carrying 
amount of the asset group to its fair value. Fair value of an asset group is based on the highest and best use of the asset group, 
often using a discounted cash flow model that utilizes Level 3 fair value inputs. The key assumptions used in the Company’s fair 
value  analysis  are  estimated  sales  growth  rate  and  comparable  market  rents. An  impairment  loss  is  recognized  based  on  the 
excess of the carrying amount of the asset group over its fair value.

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

Addressing  the  matter  involved  performing  procedures  and  evaluating  audit  evidence  in  connection  with  forming  our  overall 
opinion  on  the  consolidated  financial  statements.  These  procedures  included  testing  the  effectiveness  of  controls  relating  to 
management’s  long-lived  assets  -  stores  recoverability  test  and  determination  of  the  fair  value  of  the  asset  groups.  These 
procedures  also  included,  among  others  (i)  testing  management’s  process  for  developing  the  future  undiscounted  cash  flows 
attributable to an asset group when testing for recoverability and when determining the fair value of the asset groups to measure 
for impairment; (ii) evaluating the appropriateness of the models used by management in determining the fair value of the asset 
groups;  (iii)  testing  the  completeness  and  accuracy  of  underlying  data  used  in  the  models;  and  (iv)  evaluating  the 
reasonableness of the significant assumptions related to estimated sales growth rate when developing the future undiscounted 
cash  flows  and  comparable  market  rents  when  estimating  the  fair  value.  Evaluating  management’s  assumptions  related  to 
estimated sales growth rate and comparable market rents involved evaluating whether the assumptions used by management 
were reasonable considering the current and past performance of the asset groups, the consistency with evidence obtained in 
other areas of the audit as it relates to estimated sales growth rate, and consistency with external market data as it relates to 
estimated  sales  growth  rate  and  comparable  market  rents.  Professionals  with  specialized  skill  and  knowledge  were  used  to 
assist in evaluating of the reasonableness of the comparable market rents significant assumption.

/s/  PricewaterhouseCoopers LLP 
Columbus, Ohio
March 27, 2023 

We have served as the Company’s auditor since 1996. 

Abercrombie & Fitch Co.

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Item 9. Changes in and Disagreements with Accountants on Accounting 
and Financial Disclosure

None.

Item 9A.  Controls and Procedures

DISCLOSURE CONTROLS AND PROCEDURES

A&F maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange 
Act of 1934, as amended (the “Exchange Act”)) that are designed to provide reasonable assurance that information required to 
be disclosed in the reports that A&F files or submits under the Exchange Act is recorded, processed, summarized and reported 
within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to 
A&F’s management, including A&F’s Principal Executive Officer and A&F’s Principal Financial Officer and Principal Accounting 
Officer,  as  appropriate,  to  allow  timely  decisions  regarding  required  disclosure.  Because  of  inherent  limitations,  disclosure 
controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance 
that the objectives of disclosure controls and procedures are met.   

A&F’s  management,  including  the  Chief  Executive  Officer  of A&F  (who  serves  as  Principal  Executive  Officer  of A&F)  and  the 
Executive Vice President and Chief Financial Officer of A&F (who serves as Principal Financial Officer and Principal Accounting 
Officer  of A&F),  evaluated  the  effectiveness  of A&F’s  disclosure  controls  and  procedures  as  of  January  28,  2023.  The  Chief 
Executive  Officer  of  A&F  (in  such  individual’s  capacity  as  the  Principal  Executive  Officer  of  A&F)  and  the  Executive  Vice 
President and Chief Financial Officer of A&F (in such individual’s capacity as the Principal Financial Officer of A&F) concluded 
that A&F’s disclosure controls and procedures were effective at a reasonable level of assurance as of January 28, 2023, the end 
of the period covered by this Annual Report on Form 10-K.  

MANAGEMENT’S  ANNUAL  REPORT  ON 
REPORTING

INTERNAL  CONTROL  OVER  FINANCIAL  

The management of A&F is responsible for establishing and maintaining adequate internal control over financial reporting. A&F’s 
internal  control  over  financial  reporting  (as  defined  in  Rules  13a-15(f)  and  15d-15(f)  under  the  Exchange  Act)  is  a  process 
designed  to  provide  reasonable  assurance  regarding  the  reliability  of  financial  reporting  and  the  preparation  of  financial 
statements for external purposes in accordance with generally accepted accounting principles.

Because  of  its  inherent  limitations,  internal  control  over  financial  reporting  may  not  prevent  or  detect  misstatements.  Also, 
projections  of  any  evaluations  of  effectiveness  to  future  periods  are  subject  to  the  risk  that  controls  may  become  inadequate 
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

With the participation of the Chief Executive Officer of A&F and the Executive Vice President and Chief Financial Officer of A&F, 
management evaluated the effectiveness of A&F’s internal control over financial reporting as of January 28, 2023 using criteria 
established in the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the 
Treadway Commission (“COSO”). Based on the assessment of A&F’s internal control over financial reporting, under the criteria 
described  in  the  preceding  sentence,  management  has  concluded  that,  as  of  January  28,  2023,  A&F’s  internal  control  over 
financial reporting was effective.

The  effectiveness  of  A&F’s  internal  control  over  financial  reporting  as  of  January  28,  2023  has  been  audited  by 
PricewaterhouseCoopers  LLP,  an  independent  registered  public  accounting  firm,  as  stated  in  their  report,  which  is  included  in 
“ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this Annual Report on Form 10-K.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in A&F’s internal control over financial reporting during the quarter ended January 28, 2023 that have 
materially affected, or are reasonably likely to materially affect, A&F’s internal control over financial reporting.

Item 9B.  Other Information

None.

Abercrombie & Fitch Co.

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Item  9C.  Disclosure  Regarding  Foreign  Jurisdictions  that  Prevent 
Inspections

Not applicable.

Abercrombie & Fitch Co.

77

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PART III

Item 10. Directors, Executive Officers and Corporate Governance

DIRECTORS,  EXECUTIVE  OFFICERS  AND  PERSONS  NOMINATED  OR  CHOSEN  TO 
BECOME DIRECTORS OR EXECUTIVE OFFICERS

Information concerning directors will be included under the caption “Proposal 1 — Election of Directors” in A&F’s definitive Proxy 
Statement for the 2023 Annual Meeting of Stockholders (the “2023 Proxy Statement”) and is incorporated by reference herein.  
Information concerning executive officers is included under the caption “INFORMATION ABOUT OUR EXECUTIVE OFFICERS” 
within “ITEM 1. BUSINESS” in this Annual Report on Form 10-K and is incorporated by reference herein.

COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT 

Information  concerning  beneficial  ownership  reporting  compliance  under  Section  16(a)  of  the  Exchange  Act  will  be  included 
under  the  caption  “Ownership  of  our  Shares  —  Delinquent  Section  16(a)  Reports”  in  the  2023  Proxy  Statement  and  is 
incorporated by reference herein.

CODE OF BUSINESS CONDUCT AND ETHICS

The Board of Directors has adopted the Abercrombie & Fitch Co. Code of Business Conduct and Ethics, which applies to all 
associates and directors worldwide and incorporates an additional Code of Ethics applicable to our Chief Executive Officer, our 
Chief Financial Officer, and other designated financial associates. The Code of Business Conduct and Ethics is available on the 
“Corporate Governance” page of the Company’s corporate website at corporate.abercrombie.com.

AUDIT AND FINANCE COMMITTEE

Information concerning the Audit and Finance Committee of the Board of Directors (the “Audit and Finance Committee”) will be 
included under the captions “Corporate Governance — Committees of the Board and Meeting Attendance — Committees of the 
Board” and “Audit and Finance Committee Matters” in the 2023 Proxy Statement and is incorporated by reference herein.

PROCEDURES BY WHICH STOCKHOLDERS MAY RECOMMEND NOMINEES TO THE 
BOARD OF DIRECTORS

Information  concerning  changes  in  the  procedures  by  which  stockholders  of A&F  may  recommend  nominees  to  the  Board  of 
Directors will be included under the captions “Corporate Governance — Director Nominations — Stockholder Recommendations 
for  Director  Candidates,”  “Corporate  Governance  —  Director  Qualifications  and  Consideration  of  Director  Candidates,” 
“Stockholder Proposals for 2023 Annual Meeting” and “Additional Information About Our Annual Meeting and Voting — How do I 
nominate  a  director  using  the  ‘Proxy Access’  provisions  under  the  Company’s  Bylaws?”  in  the  2023  Proxy  Statement  and  is 
incorporated by reference herein. 

Abercrombie & Fitch Co.

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Item 11. Executive Compensation

Information  regarding  executive  compensation  will  be  included  under  the  captions    “Corporate  Governance    —  Board  Role  in 
Risk  Oversight,”  “Compensation  of  Directors,”  “Compensation  Discussion  and  Analysis,”  “Report  of  the  Compensation  and 
Human Capital Committee on Executive Compensation,” and “Executive Compensation Tables” in the 2023 Proxy Statement and 
is incorporated by reference herein.

Item  12.  Security  Ownership  of  Certain  Beneficial  Owners  and 
Management and Related Stockholder Matters

Information concerning the security ownership of certain beneficial owners and management will be included under the caption 
“Ownership of Our Shares” in the 2023 Proxy Statement and is incorporated by reference herein.

Information regarding Common Stock authorized for issuance under A&F’s equity compensation plans will be included under the 
caption “Equity Compensation Plans” in the 2023 Proxy Statement and is incorporated by reference herein.

Item  13.  Certain  Relationships  and  Related  Transactions,  and  Director 
Independence

Information  concerning  relationships  and  transactions  with  related  persons  will  be  included  under  the  caption  “Corporate 
Governance — Director Independence and Related Person Transactions” in the 2023 Proxy Statement and is incorporated by 
reference herein.

Information concerning director independence will be included under the captions “Corporate Governance — Board Leadership 
Structure,”  “Corporate  Governance  —  Committees  of  the  Board  and  Meeting  Attendance,”  and  “Corporate  Governance  — 
Director Independence and Related Person Transactions” in the 2023 Proxy Statement and is incorporated by reference herein.

Item 14. Principal Accountant Fees and Services

Information concerning pre-approval policies and procedures of the Audit and Finance Committee and fees for services rendered 
by the Company’s principal independent registered public accounting firm will be included under the caption “Audit and Finance 
Committee Matters — Audit Fees” in the 2023 Proxy Statement and ins incorporated by reference herein.

Abercrombie & Fitch Co.

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PART IV

Item 15. Exhibits and Financial Statement Schedules

(a) The following documents are filed as a part of this Annual Report on Form 10-K:

(1) Consolidated Financial Statements:

Consolidated  Statements  of  Operations  and  Comprehensive  (Loss)  Income  for  the  fiscal  years  ended 
January 28, 2023, January 29, 2022 and January 30, 2021.

Consolidated Balance Sheets at January 28, 2023 and January 29, 2022.

Consolidated  Statements  of  Stockholders’  Equity  for  the  fiscal  years  ended  January  28,  2023,  January  29, 
2022 and January 30, 2021.

Consolidated Statements of Cash Flows for the fiscal years ended January 28, 2023, January 29, 2022 and 
January 30, 2021.

Notes to Consolidated Financial Statements.

Report of Independent Registered Public Accounting Firm — PricewaterhouseCoopers LLP. (PCAOB ID 238)

(2) Consolidated Financial Statement Schedules:

All financial statement schedules for which provision is made in the applicable accounting regulations of the SEC are 
omitted because the required information is either not applicable or not material.

(3) Exhibits:

The documents listed in the Index to Exhibits that immediately precedes the Signatures page of this Annual Report on 
Form  10-K  are  filed  or  furnished  with  this Annual  Report  on  Form  10-K  as  exhibits  or  incorporated  into  this Annual 
Report  on  Form  10-K  by  reference  as  noted.  Each  management  contract  or  compensatory  plan  or  arrangement  is 
identified as such in the Index to Exhibits.

(b) The documents listed in the Index to Exhibits that immediately precedes the Signatures page of this Annual Report on 
Form  10-K  are  filed  or  furnished  with  this Annual  Report  on  Form  10-K  as  exhibits  or  incorporated  into  this Annual 
Report on Form 10-K by reference.

(c) Financial Statement Schedules
  None

Item 16. Form 10-K Summary

None.

Abercrombie & Fitch Co.

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Index to Exhibits

Exhibit

Document

3.1

3.2

4.1

4.2

4.3

4.4

4.5

10.1*

10.2*

10.3*

10.4*

10.5*

10.6*

10.7*

10.8*

10.9*

10.10*

10.11

10.12

10.13

10.14

Amended and Restated Certificate of Incorporation of A&F, reflecting amendments through the date of this Annual Report on Form 
10-K,  incorporated  herein  by  reference  to  Exhibit  3.2  to  A&F’s  Quarterly  Report  on  Form  10-Q  for  the  quarterly  period  ended 
July  30,  2011  (File  No.  001-12107).  [This  document  represents  the  Amended  and  Restated  Certificate  of  Incorporation  of 
Abercrombie & Fitch Co. in compiled form incorporating all amendments.]

Amended and Restated Bylaws of Abercrombie & Fitch Co. reflecting amendments through the date of this Annual Report on Form 
10-K,  incorporated  herein  by  reference  to  Exhibit  3.1  to A&F's  Current  Report  on  Form  8-K  dated  and  filed  November  22,  2022 
(File No. 001-12107). [This document represents the Amended and Restated Bylaws of Abercrombie & Fitch Co. in compiled form 
incorporating all amendments.]

Agreement to furnish instruments and agreements defining rights of holders of long-term debt.

Description of Abercrombie & Fitch Co.’s Securities Registered under Section 12 of the Securities Exchange Act of 1934.

Indenture, dated as of July 2, 2020, by and among Abercrombie & Fitch Management Co., Abercrombie & Fitch Co., as Parent, the 
other  Guarantors  party  thereto  and  U.S.  Bank  National  Association,  as  Trustee,  Registrar,  Paying  Agent,  and  Notes  Collateral 
Agent, incorporated herein by reference to Exhibit 4.1 to A&F’s Current Report on Form 8-K dated and filed on July 9, 2020 (File 
No. 001-12107).

Form of 8.75% Senior Secured Notes due 2025 (included in Exhibit 4.3), incorporated herein by reference to Exhibit 4.2 (which is 
in turn included in Exhibit 4.1) to A&F’s Current Report on Form 8-K dated and filed on July 9, 2020 (File No. 001-12107).

Intercreditor  Agreement,  dated  as  of  July  2,  2020,  among  Wells  Fargo  Bank,  National  Association,  as  ABL  Agent,  U.S.  Bank 
National Association, as First Lien Notes Collateral Agent, and each other Additional Notes Agent from time to time party thereto, 
incorporated herein by reference to Exhibit 4.5 to A&F’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021 
(File No. 001-12107).

1998 Restatement of the Abercrombie & Fitch Co. 1996 Stock Plan for Non-Associate Directors, incorporated herein by reference 
to Exhibit 10.3 to A&F’s Annual Report on Form 10-K for the fiscal year ended February 1, 2003 (File No. 001-12107).

Amended and Restated Employment Agreement, entered into as of August 15, 2005, by and between A&F and Michael S. Jeffries, 
including  (as  Exhibit  A  thereto)  the  Abercrombie  &  Fitch  Co.  Supplemental  Executive  Retirement  Plan  (Michael  S.  Jeffries), 
effective February 2, 2003, incorporated herein by reference to Exhibit 10.1 to A&F’s Current Report on Form 8-K dated and filed 
August  26,  2005  (File  No.  001-12107).  [NOTE:  Only  the  Abercrombie  &  Fitch  Co.  Supplemental  Executive  Retirement  Plan 
(Michael S. Jeffries) is still in effect.]

Abercrombie & Fitch Co. Directors’ Deferred Compensation Plan (Plan I) (prior to January 1, 2005, known as the Abercrombie & 
Fitch Co. Directors’ Deferred Compensation Plan), as amended and restated May 22, 2003, incorporated herein by reference to 
Exhibit 10.7 to A&F’s Quarterly Report on Form 10-Q for the quarterly period ended May 3, 2003 (File No. 001-12107).
Abercrombie  &  Fitch  Co.  Directors’  Deferred  Compensation  Plan  (Plan  II),  effective  January  1,  2005,  incorporated  herein  by 
reference to Exhibit 10.50 to A&F’s Annual Report on Form 10-K for the fiscal year ended January 31, 2009 (File No. 001-12107).

Abercrombie  &  Fitch  Co.  Nonqualified  Savings  and  Supplemental  Retirement  Plan  I  (prior  to  January  1,  2009,  known  as  the 
Abercrombie  &  Fitch  Nonqualified  Savings  and  Supplemental  Retirement  Plan),  as  amended  and  restated  effective  January  1, 
2001, incorporated herein by reference to Exhibit 10.9 to A&F’s Annual Report on Form 10-K for the fiscal year ended February 1, 
2003 (File No. 001-12107).

First Amendment  to  the Abercrombie  &  Fitch  Co.  Nonqualified  Savings  and  Supplemental  Retirement  Plan  (Plan  I)  (January  1, 
2001 Restatement), effective as of January 1, 2009, incorporated herein by reference to Exhibit 10.13 to A&F’s Quarterly Report 
on Form 10-Q for the quarterly period ended August 2, 2008 (File No. 001-12107).
Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan (Plan II), as amended and restated effective as 
of January 1, 2014, incorporated herein by reference to Exhibit 10.3 to A&F’s Current Report on Form 8-K dated and filed October 
19, 2015 (File No. 001-12107).
First Amendment to the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan (Plan II), dated as of 
October 14, 2015, incorporated herein by reference to Exhibit 10.4 to A&F’s Current Report on Form 8-K dated and filed October 
19, 2015 (File No. 001-12107).
Second Amendment to the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan (Plan II), dated as of 
December 16, 2019, incorporated herein by reference to Exhibit 10.33 to A&F's Annual Report on Form 10-K for the fiscal year 
ended February 1, 2020 (File No. 001-12107).
Trust Agreement, made as of October 16, 2006, between A&F and Wilmington Trust Company, incorporated herein by reference to 
Exhibit 10.1 to A&F’s Current Report on Form 8-K dated and filed October 17, 2006 (File No. 001-12107).

Amended  and  Restated  Credit Agreement,  dated  as  of April  29,  2021,  among Abercrombie  &  Fitch  Management  Co.,  as  Lead 
Borrower; the other Borrowers and Guarantors party thereto; Wells Fargo Bank, National Association, as administrative agent for 
the  lenders,  a  L/C  Issuer  and  Swing  Line  Lender;  the  other  lenders  party  thereto;  Citizens  Business  Capital,  as  a  L/C  Issuer; 
Citizens  Bank,  N.A.,  as  Syndication Agent;  JPMorgan  Chase  Bank,  N.A.,  as  Documentation Agent  and  a  L/C  Issuer;  and  Wells 
Fargo  Bank,  National  Association,  Citizens  Bank,  N.A.  and  JPMorgan  Chase  Bank,  N.A.,  as  Joint  Lead  Arrangers  and  Joint 
Bookrunners,  incorporated  herein  by  reference  to  Exhibit  10.3  to A&F’s  Quarterly  Report  on  Form  10  Q  for  the  quarterly  period 
ended May 1, 2021 (File No. 001 12107).†

First Amendment to Amended and Restated Credit Agreement and First Amendment to Security Agreement, dated as of March 15, 
2023, among Abercrombie & Fitch Management Co., as Lead Borrower; the other Borrowers and Guarantors party thereto, and 
Wells Fargo Bank, National Association, as administrative agent for the Lenders
Guaranty,  dated  as  of  August  7,  2014,  made  by  Abercrombie  &  Fitch  Co.,  as  guarantor,  and  certain  of  its  wholly-owned 
subsidiaries, each as a guarantor, in favor of Wells Fargo Bank, National Association, as administrative agent and collateral agent 
for its own benefit and the benefit of the other Credit Parties, and the Credit Parties, incorporated herein by reference to Exhibit 
10.5 to A&F’s Quarterly Report on Form 10-Q for the quarterly period ended August 2, 2014 (File No. 001-12107).

Security Agreement, dated as of August 7, 2014, made by Abercrombie & Fitch Management Co., as lead borrower for itself and 
the  other  Borrowers,  Abercrombie  &  Fitch  Co.  and  certain  of  its  wholly-owned  subsidiaries,  in  their  respective  capacities  as  a 
guarantor,  and  the  other  borrowers  and  guarantors  from  time  to  time  party  thereto,  in  favor  of  Wells  Fargo  Bank,  National 
Association, as administrative agent and collateral agent for the Credit Parties, incorporated herein by reference to Exhibit 10.7 to 
A&F’s Quarterly Report on Form 10-Q for the quarterly period ended August 2, 2014 (File No. 001-12107).††

Abercrombie & Fitch Co.

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Table of Contents

10.15*

10.16*

10.17*

10.18*

10.19*

10.20*

10.21*

10.22*

10.23*

10.24*

10.25*

10.26*

10.27*

10.28*

10.29*

10.30*

10.31*

10.32*

10.33*

10.34*

10.35*

10.36*

10.37*

10.38*

10.39*

10.40*

Confirmation, Ratification and Amendment of Ancillary Loan Documents, made as of April 29, 2021, among Abercrombie & Fitch 
Co., for itself and as Lead Borrower; the other Borrowers from time to time party thereto; the Guarantors from time to time party 
thereto; and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent , incorporated herein by 
reference to Exhibit 10.19 to A&F’s Annual Report on 10-K for the fiscal year ended January 29, 2022 (File No. 001-12107).†

Retirement Agreement, dated December 8, 2014, between Michael S. Jeffries and A&F, incorporated herein by reference to Exhibit 
10.1 to A&F’s Current Report on Form 8-K dated and filed December 9, 2014 (File No. 001-12107).

Employment Offer, dated October 8, 2014, between Fran Horowitz and A&F, incorporated herein by reference to Exhibit 10.1 to 
A&F’s Current Report on Form 8-K dated and filed October 15, 2014 (File No. 001-12107).

Letter, dated December 16, 2015, between A&F Management and Fran Horowitz setting forth terms of employment as President 
and Chief Merchandising Officer, incorporated herein by reference to Exhibit 10.74 to A&F’s Annual Report on Form 10-K for the 
fiscal year ended January 30, 2016 (File No. 001-12107).

Form  of  Agreement  entered  into  between  A&F  Management  and  Fran  Horowitz  as  of  May  10,  2017,  incorporated  herein  by 
reference to Exhibit 10.1 to A&F’s Current Report on Form 8-K dated and filed May 12, 2017 (File No. 001-12107).

Non-Compete  Amendment  entered  into  between  A&F  Management  and  Fran  Horowitz  as  of  November  5,  2021  (including  a 
schedule  identifying  executive  officers  of A&F  party  to  substantially  identical  Non-Compete Agreements  with A&F  Management, 
incorporated herein by reference to Exhibit 10.1 to A&F’s Quarterly Report on Form 10-Q for the quarterly period ended October 
30, 2021 (File No. 001-12107).
Employment Offer, dated May 6, 2016, between Kristin Scott and A&F, incorporated herein by reference to Exhibit 10.3 to A&F’s 
Current Report on Form 8-K dated and filed May 23, 2016 (File No. 001-12107).

Form of Agreement entered into between A&F Management and Kristin Scott as of May 10, 2017, incorporated herein by reference 
to Exhibit 10.2 to A&F’s Current Report on Form 8-K dated and filed May 12, 2017 (File No. 001-12107).

Employment  Offer,  dated August  17,  2017,  between  Scott  Lipesky  and A&F,  incorporated  herein  by  reference  to  Exhibit  10.1  to 
A&F's Current Report on Form 8-K dated and filed September 6, 2017 (File No. 001-12107).

Form of Agreement entered into between A&F Management and Scott Lipesky as of September 7, 2017, incorporated herein by 
reference  to  Exhibit  10.2  to  A&F's  Quarterly  Report  on  Form  10-Q  for  the  quarterly  period  ended  October  28,  2017  (File  No. 
001-12107).
Employment Offer, dated August 24, 2018, between Gregory J. Henchel and A&F, incorporated herein by reference to Exhibit 10.1 
to A&F's Quarterly Report on Form 10-Q for the quarterly period ended November 3, 2018 (File No. 001-12107).

Agreement  entered  into  between A&F  Management  and  Gregory  J.  Henchel  as  of  September  13,  2018,  incorporated  herein  by 
reference  to  Exhibit  10.2  to A&F's  Quarterly  Report  on  Form  10-Q  for  the  quarterly  period  ended  November  3,  2018  (File  No. 
001-12107).
Form  of  Retention  Restricted  Stock  Unit  Award  Agreement,  effective  as  of  August  28,  2020,  between  A&F  and  each  of  Scott 
Lipesky, Kristin Scott and Gregory J. Henchel, incorporated herein by reference to Exhibit 10.1 to A&F’s Current Report on Form 8-
K dated and filed on September 2, 2020 (File No. 001-12107).
Employment  Offer,  dated  May  20,  2021,  between  Samir  Desai  and  A&F  (including,  as  Exhibit  A,  the  Agreement  entered  into 
between  A&F  Management  and  Samir  Desai  as  of  May  20,  2021),  incorporated  herein  by  reference  to  Exhibit  10.2  to  A&F’s 
Quarterly Report on Form 10-Q for the quarterly period ended July 31, 2021 (File No. 001-12107).
Form of Director and Officer Indemnification Agreement, incorporated herein by reference to Exhibit 10.3 to A&F's Quarterly Report 
on Form 10-Q/A for the quarterly period ended April 29, 2017 (File No. 001-12107).

Abercrombie & Fitch Co. 2005 Long-Term Incentive Plan, incorporated herein by reference to Exhibit 10.1 to A&F’s Current Report 
on Form 8-K dated and filed June 17, 2005 (File No. 001-12107).

Certificate regarding Approval of Amendment of Section 3(b) of the Abercrombie & Fitch Co. 2005 Long-Term Incentive Plan by 
Board  of  Directors  of Abercrombie  &  Fitch  Co.  on August  20,  2014,  incorporated  herein  by  reference  to  Exhibit  10.11  to A&F’s 
Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2016 (File No. 001-12107).
Amended and Restated Abercrombie & Fitch Co. 2007 Long-Term Incentive Plan, incorporated herein by reference to Exhibit 10.1 
to A&F’s Current Report on Form 8-K dated and filed June 17, 2011 (File No. 001-12107).

Certificate regarding Approval of Amendment of Section 3(b) of the Abercrombie & Fitch Co. Amended and Restated 2007 Long-
Term  Incentive  Plan  by  Board  of  Directors  of Abercrombie  &  Fitch  Co.  on August  20,  2014,  incorporated  herein  by  reference  to 
Exhibit 10.12 to A&F’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2016 (File No. 001-12107).
Form of Stock Appreciation Right Agreement used for grants of awards after March 26, 2013 and prior to August 20, 2013 under 
the Abercrombie  &  Fitch  Co.  2005  Long-Term  Incentive  Plan,  incorporated  herein  by  reference  to  Exhibit  10.2  to A&F’s  Current 
Report on Form 8-K dated and filed April 29, 2013 (File No. 001-12107).
Form of Stock Appreciation Right Award Agreement used for grants of awards after August 20, 2013 and prior to June 16, 2016 
under  the Abercrombie  &  Fitch  Co.  2005  Long-Term  Incentive  Plan,  incorporated  herein  by  reference  to  Exhibit  10.9  to A&F’s 
Quarterly Report on Form 10-Q for the quarterly period ended November 2, 2013 (File No. 001-12107).  
Form of Stock Appreciation Right Award Agreement used for grants of awards after August 20, 2013 and prior to June 16, 2016 
under the Amended and Restated Abercrombie & Fitch Co. 2007 Long-Term Incentive Plan, incorporated herein by reference to 
Exhibit 10.2 to A&F’s Quarterly Report on Form 10-Q for the quarterly period ended November 2, 2013 (File No. 001-12107).
Abercrombie  &  Fitch  Co.  2016  Long-Term  Incentive  Plan  for Associates  (as  amended  on  June  8,  2022),  incorporated  herein  by 
reference to Exhibit 10.1 to A&F’s Current Report on Form 8-K dated and filed on June 9, 2022 (File No. 001-12107).

Form of Restricted Stock Unit Award Agreement used to evidence the grant of restricted stock units to associates (employees) of 
Abercrombie & Fitch Co. and its subsidiaries under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Associates on 
and after March 26, 2019 and prior to March 7, 2023, incorporated herein by reference to Exhibit 10.1 to A&F’s Quarterly Report 
on Form 10-Q for the quarterly period ended May 2, 2020 (File No. 001-12107).

Form of Restricted Stock Unit Award Agreement used to evidence the grant of restricted stock units to associates (employees) of 
Abercrombie & Fitch Co. and its subsidiaries under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Associates on 
and after March 7, 2023.
Form of Restricted Stock Unit Award Agreement used to evidence the grant of restricted stock units to non-associate directors of 
A&F  under  the Abercrombie  &  Fitch  Co.  2016  Long-Term  Incentive  Plan  for  Directors  on  and  after  June  16,  2016,  incorporated 
herein by reference to Exhibit 10.10 to A&F’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2016 (File No. 
001-12107).

10.41*

Form of Restricted Stock Unit Award Agreement used to evidence the grant of restricted stock units to non-associate chairperson 
of the board of A&F under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Directors on and after June 16, 2016.

Abercrombie & Fitch Co.

82

2022 Form 10-K

Table of Contents

10.42*

10.43*

10.44*

10.45*

10.46*

10.47*

10.48

21.1

23.1

24.1

31.1

31.2

32.1

101.INS

Form  of  Performance  Share Award Agreement  used  to  evidence  the  grant  of  performance  shares  to  associates  (employees)  of 
A&F and its subsidiaries under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Associates on or after August 28, 
2020 and prior to March 23, 2021, incorporated herein by reference to Exhibit 10.1 to A&F’s Quarterly Report on Form 10-Q for the 
quarterly period ended October 31, 2020 (File No. 001-12107).

Form of Performance Share Award Agreement used to evidence the grant of performance share awards to associates (employees) 
of A&F and its subsidiaries under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Associates on or after March 23, 
2021 and prior to March 24, 2022, incorporated herein by reference to Exhibit 10.2 to A&F’s Quarterly Report on Form 10 Q for the 
quarterly period ended May 1, 2021 (File No. 001-12107).

Form of Performance Share Award Agreement used to evidence the grant of performance share awards to associates (employees) 
of A&F and its subsidiaries under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Associates on or after March 24, 
2022 and prior to March 7, 2023, incorporated herein by reference to Exhibit 10.1 to A&F’s Quarterly Report on Form 10 Q for the 
quarterly period ended April 30, 2022 (File No. 001-12107).

Form of Performance Share Award Agreement used to evidence the grant of performance share awards to associates (employees) 
of A&F and its subsidiaries under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Associates on or after March 7, 
2023.
Amended  and  Restated  Abercrombie  &  Fitch  Co.  Short-Term  Cash  Incentive  Compensation  Performance  Plan,  incorporated 
herein by reference to Exhibit 10.1 to A&F's Current Report on Form 8-K dated and filed March 24, 2021 (File No. 001-12107).

Abercrombie & Fitch Co. Long-Term Cash Incentive Compensation Performance Plan, incorporated herein by reference to Exhibit 
10.2 to A&F's Current Report on Form 8-K dated and filed June 15, 2017 (File No. 001-12107).

Abercrombie  &  Fitch  Co.  Associate  Stock  Purchase  Plan  (October  1,  2007  Restatement,  incorporated  herein  by  reference  to 
Exhibit 10.6 to A&F's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2017 (File No. 001-12107)

List of Subsidiaries of A&F.

Consent of Independent Registered Public Accounting Firm — PricewaterhouseCoopers LLP.

Powers of Attorney.

Certifications  by  Chief  Executive  Officer  (Principal  Executive  Officer)  pursuant  to  Rule  13a-14(a)  or  Rule  15d-14(a)  under  the 
Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certifications  by  Executive  Vice  President  and  Chief  Financial  Officer  (Principal  Financial  Officer)  pursuant  to  Rule  13a-14(a)  or 
Rule  15d-14(a)  under  the  Securities  Exchange Act  of  1934,  as  adopted  pursuant  to  Section  302  of  the  Sarbanes-Oxley Act  of 
2002.
Certifications  by  Chief  Executive  Officer  (Principal  Executive  Officer)  and  Executive  Vice  President  and  Chief  Financial  Officer 
(Principal Financial Officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 
2002.**
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are 
embedded within the Inline XBRL document.

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104

Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 
101).

 *  Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Annual Report on Form 10-K pursuant to 

Item 15(a)(3) and Item 15(b) of this Annual Report on Form 10-K.
These certifications are furnished.

** 
†      Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K.
††  Certain portions of this exhibit have been omitted based upon a request for confidential treatment filed with the SEC. The non-public information 

has been separately filed with the SEC in connection with that request.

Abercrombie & Fitch Co.

83

2022 Form 10-K

Table of Contents

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this 
report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 27, 2023

By:

/s/     Scott D. Lipesky

ABERCROMBIE & FITCH CO.

Scott D. Lipesky
Executive Vice President and Chief Financial Officer
(Principal  Financial  Officer,  Principal  Accounting  Officer  and 
Authorized Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons 
on behalf of the registrant and in the capacities indicated on March 27, 2023.

*

Nigel Travis

Chairperson of the Board and Director

/s/     Fran Horowitz
Fran Horowitz

*

Chief Executive Officer and Director (Principal Executive Officer)

Kerrii B. Anderson

Director

*
Terry L. Burman

Susie Coulter

*

*

Director

Director

Sarah M. Gallagher

Director

*

James A. Goldman

Director

*

Michael E. Greenlees

Director

/s/     Scott D. Lipesky
Scott D. Lipesky

Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal 
Accounting Officer)

*

Helen E. McCluskey

Director

*

Kenneth B. Robinson

Director

Helen Vaid

*

*

Director

* 

The undersigned, by signing his name hereto, does hereby sign this Annual Report on Form 10-K on behalf of each of 
the above-named directors of the Registrant pursuant to powers of attorney executed by such directors, which powers 
of attorney are filed with this Annual Report on Form 10-K as Exhibit 24.1.

By:

/s/     Scott D. Lipesky

Scott D. Lipesky

Attorney-in-fact

Abercrombie & Fitch Co.

84

2022 Form 10-K

 
 
 
 
2022 ANNUAL REPORT

CORPORATE INFORMATION

CORPORATE INFORMATION

Abercrombie & Fitch Co. 
6301 Fitch Path 
New Albany, Ohio 43054 
(614) 283-6500
corporate.abercrombie.com

STOCK EXCHANGE LISTING

New York Stock Exchange, Trading Symbol “ANF”

ANNUAL MEETING

The Annual Meeting of Stockholders scheduled for 10:00 a.m., Eastern Time, on June 8, 2023, will be held as a virtual meeting of 
stockholders, to be conducted exclusively online via live webcast at:

www.virtualshareholdermeeting.com/ANF2023. 

STOCK TRANSFER AGENT, REGISTRAR AND DIVIDEND AGENT

American Stock Transfer & Trust Company, LLC 
6201 15th Avenue 
Brooklyn, New York 11219

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

PricewaterhouseCoopers LLP 
Columbus, Ohio 

INVESTOR RELATIONS 

For further information about Abercrombie & Fitch Co. or additional copies of this report, contact: 

Investor Relations 
Abercrombie & Fitch Co. 
P.O. Box 182168 
Columbus, Ohio 43218 

Investor_Relations@anfcorp.com 

MEDIA RELATIONS 

Media Relations 
Public_Relations@anfcorp.com
(614) 283-6192

Abercrombie & Fitch Co.

7

2022 Annual Report

 
 
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