8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported): February 23, 2007 (February 21, 2007)

ABERCROMBIE & FITCH CO.

(Exact name of registrant as specified in its charter)

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

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

(614) 283-6500

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition.

     On February 21, 2007, Abercrombie & Fitch Co. (the “Registrant”) issued a news release (the “Release”) reporting the Registrant’s unaudited financial results for the fourteen weeks (quarterly period) ended February 3, 2007. A copy of the Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

     The Registrant also made available in conjunction with the release additional quarterly financial information as of and for the quarterly period ended February 3, 2007 and as of and for the quarterly periods during the fiscal years ended February 3, 2007, January 28, 2006, January 29, 2005 and January 31, 2004. The additional quarterly financial information is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

     The Registrant’s management conducted a conference call on February 21, 2007, at approximately 4:30 p.m., Eastern Time, to review the Registrant’s financial results for the fourteen weeks ended February 3, 2007 and the fifty-three weeks (fiscal year) ended February 3, 2007. Additionally, the Registrant’s management addressed plans for the first half of the fiscal year ending February 2, 2008 on the conference call. A copy of the transcript of the conference call is furnished as Exhibit 99.3 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 8.01. Other Events.

     In the Release, the Registrant also announced that its Board of Directors had declared a quarterly cash dividend of $0.175 per share in respect of the Registrant’s Class A Common Stock. The dividend was declared on February 21, 2007 and is payable on March 27, 2007 to stockholders of record on March 6, 2007.

Item 9.01. Financial Statements and Exhibits.

(a) through (c) Not applicable

(d) Exhibits:

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

Exhibit No.	Description
99.1	News Release issued by Abercrombie & Fitch Co. on February 21, 2007
99.2	Additional Quarterly Financial Information made available by Abercrombie & Fitch Co. in conjunction with News Release on February 21, 2007
99.3	Transcript of conference call held by management of Abercrombie & Fitch Co. on February 21, 2007

SIGNATURE

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

	ABERCROMBIE & FITCH CO.
Dated: February 23, 2007	By:	/s/ Michael W. Kramer
		Michael W. Kramer
		Executive Vice President and Chief Financial Officer

INDEX TO EXHIBITS

Current Report on Form 8-K
Dated February 23, 2007

Abercrombie & Fitch Co.

Exhibit No.	Description
99.1	News Release issued by Abercrombie & Fitch Co. on February 21, 2007
99.2	Additional Quarterly Financial Information made available by Abercrombie & Fitch Co. in conjunction with News Release on February 21, 2007
99.3	Transcript of conference call held by management of Abercrombie & Fitch Co. on February 21, 2007

EX-99.1

EXHIBIT 99.1

ABERCROMBIE & FITCH REPORTS RECORD FOURTH QUARTER
AND FISCAL YEAR-END RESULTS;

FOURTH QUARTER NET INCOME INCREASES TO $198.2 MILLION;

FOURTH QUARTER NET INCOME PER DILUTED SHARE INCREASES TO $2.14;

FISCAL 2006 NET INCOME INCREASES 26% TO $422.2 MILLION;

FISCAL 2006 NET INCOME PER DILUTED SHARE INCREASES 25% TO $4.59;

BOARD OF DIRECTORS DECLARES QUARTERLY DIVIDEND OF $0.175;

COMPANY PROVIDES OUTLOOK FOR FIRST HALF OF FISCAL 2007

New Albany, Ohio, February 21, 2007: Abercrombie & Fitch Co. (NYSE: ANF) today reported unaudited results which reflected net income of $198.2 million and net income per diluted share of $2.14 for the fourteen weeks ended February 3, 2007, a 20% increase over net income of $164.6 million and a 19% increase over $1.80 per diluted share for the thirteen week period ended January 28, 2006.

The Company also reported net income of $422.2 million and net income per diluted share of $4.59 for the fifty-three week fiscal year ended February 3, 2007, a 26% increase over net income of $334.0 million and a 25% increase over $3.66 per diluted share for the fifty-two week fiscal year ended January 28, 2006.

Fourth Quarter Highlights

• Total Company net sales increased 18% to $1.139 billion; comparable store sales declined 3%, versus a 28% increase for the fourth quarter of Fiscal 2005

• Abercrombie & Fitch net sales increased 6% to $504.0 million; Abercrombie & Fitch comparable store sales decreased 6%, versus an 18% increase for the fourth quarter of Fiscal 2005

• abercrombie net sales increased 19% to $144.5 million; abercrombie comparable store sales increased 2%, versus a 59% increase for the fourth quarter of Fiscal 2005

• Hollister Co. net sales increased 33% to $476.8 million; Hollister Co. comparable store sales were flat to last year, versus a 34% increase for the fourth quarter of Fiscal 2005

• RUEHL net sales increased 89% to $13.4 million; RUEHL comparable store sales increased 6%, versus an 18% increase for the fourth quarter of Fiscal 2005

• Net income for the fourth quarter increased 20% to $198.2 million from $164.6 million in Fiscal 2005

• Net income per diluted share increased 19% to $2.14 in the fourth quarter of Fiscal 2006 from $1.80 in Fiscal 2005

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said:

“This was an excellent year for Abercrombie & Fitch, capped off by a solid fourth quarter. Our strong performance demonstrates the proper positioning of our brands and strength of our business model. Investments made in our brands and business continue to pay off in the form of high quality sales and earnings growth. We are confident that this deliberate strategy will continue to provide top-line expansion over the long term resulting in more leveraged growth.”

Fourth Quarter and Fiscal Year 2006 Financial Results

Net sales for the fourteen weeks ended February 3, 2007 increased 18% to $1.139 billion from $961.4 million for the thirteen weeks ended January 28, 2006. Total Company direct-to-consumer net sales increased 58% to $74.8 million for the fourteen week period ended February 3, 2007, compared to the thirteen week period ended January 28, 2006. The fiscal 2006 retail calendar includes a fifty-third week; fourth quarter comps are compared to the fourteen week period ended February 4, 2006. Total Company fourth quarter comparable store sales decreased 3% for the corresponding fourteen week period ended February 4, 2006. For the fifty-three week fiscal year ended February 3, 2007, the Company reported a net sales increase of 19% to $3.318 billion from $2.785 billion for the fifty-two week period ended January 28, 2006. Total Company direct-to-consumer net sales increased 42% to $174.1 million for the fifty-three week period ended February 3, 2007, compared to the fifty-two week period ended January 28, 2006. The fiscal 2006 retail calendar includes a fifty-third week; full year Fiscal 2006 comps are compared to the fifty-three week period ended February 4, 2006. Fiscal 2006 comparable store sales increased 2%.

The gross profit rate for the quarter was 66.4%, decreasing 10 basis points compared to last year. The decline in gross profit rate was primarily due to higher shrink and a slightly higher markdown rate versus last year. For Fiscal 2006, the gross profit rate was 66.6% versus 66.5% last year, an increase of 10 basis points.

Stores and Distribution expense for the quarter, as a percentage of sales, increased 20 basis points to 30.7% from 30.5%. The increase in rate versus last year primarily resulted from increased distribution center and direct-to-consumer expenses, partially offset by decreased store expenses as a percentage of sales. For Fiscal 2006, stores and distribution expense, as a percentage of sales, decreased 10 basis points to 35.8% versus 35.9% last year.

Marketing, General and Administrative expense (MG&A) for the quarter, as a percentage of sales, increased 50 basis points to 8.9% from 8.4%. The increase in rate was primarily attributed to an increase in home office payroll and consulting expenses as a percentage of sales. For Fiscal 2006, MG&A expense was 11.3% of sales, flat to last year’s rate of 11.3%.

Operating income for the fourth quarter increased 15% to $308.8 million compared to $267.5 million last year. For Fiscal 2006, operating income was $658.1 million versus $542.7 million last year, an increase of 21%.

The effective tax rate for the fourth quarter was 36.8% compared to 39.0% for the 2005 comparable period. The decrease in the effective tax rate relates to an increase in tax-exempt income over the prior year comparable period, favorable settlements of certain tax audits and favorable changes in estimates of potential outcomes of certain state tax matters. The Company expects the full year Fiscal 2007 effective tax rate to be approximately 39%.

Net income for the fourth quarter increased 20% to $198.2 million compared to $164.6 million last year. Net income per diluted share increased 19% to $2.14 compared to $1.80 per diluted share for the fourth quarter of Fiscal 2005. Net income for Fiscal 2006 increased 26% to $422.2 million compared to $334.0 million last year. For Fiscal 2006, net income per diluted share increased 25% to $4.59 versus $3.66 last year.

2007 Outlook

The Company expects net income per diluted share for the first half of Fiscal 2007 to be in the range of $1.47 to $1.52, representing between 10% and 13% earnings growth over the first half of Fiscal 2006. Due to the impact of the Company’s London pre-opening store costs, along with the difficult comparisons to last year’s tax rate favorability, diluted earnings per share growth in the first quarter of 2007 is expected to be in the mid-single digit range. The low end of the earnings guidance reflects a flat comparable store sales scenario for the first half of Fiscal 2007.

The Company plans total capital expenditures for Fiscal 2007 to be between $360 million and $370 million with approximately $220 million of this amount allocated to new store construction and store remodels. Approximately $60 million is allocated to “refresh” improvements and other brand enhancing investments planned for existing stores with the balance related to home office, information technology, and direct-to-consumer infrastructure investments.

For Fiscal 2007, the Company expects to increase gross square-footage by approximately 12%, primarily through the addition of six new Abercrombie & Fitch stores, 67 new Hollister Co. stores, 27 new abercrombie stores, and ten new RUEHL stores. The Company also intends to introduce its next concept in January 2008 with the opening of three stores.

Dividend Declared

The Board of Directors declared a quarterly cash dividend of $0.175 per share on the Class A Common Stock of Abercrombie & Fitch Co. payable on March 27, 2007 to shareholders of record at the close of business on March 6, 2007.

London Flagship Store

On March 22, 2007, the Company plans to open its first European location, a flagship store in London, at 7 Burlington Gardens. The Company will hold a security analyst tour of the store on March 20, 2007. Analysts interested in attending the event should contact Jill Swansegar, Investor Relations and Communications Coordinator at (614) 283-6751 or via email at jill_swansegar@abercrombie.com.

The Company operated 357 Abercrombie & Fitch stores, 177 abercrombie stores, 390 Hollister Co. stores, and 14 RUEHL stores in the United States at the end of Fiscal 2006. The Company also operated three Abercrombie & Fitch stores and three Hollister Co. stores in Canada. The Company operates e-commerce websites at www.abercrombie.com, www.abercrombiekids.com, and www.hollisterco.com.

Today at 4:30 PM, Eastern Time, the Company will conduct a conference call. Management will discuss the Company’s performance, its plans for the future and will accept questions from participants. To listen to the live conference call, dial (800) 811-0667 or internationally at (913) 981-4901. To listen via the internet, go to www.abercrombie.com, select the Investors page and click on Calendar of Events. Replays of the call will be available shortly after its completion. The audio replay can be accessed for two weeks following the reporting date by calling (888) 203-1112 or internationally at (719) 457-0820 followed by the conference ID number 6004097 or for 12 months by visiting the Company’s website at www.abercrombie.com.

# # # #

For further information, call: Thomas D. Lennox
Vice President, Corporate Communications
(614) 283-6751

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

A&F cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this Press Release or made by management of A&F involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the Company’s control. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” and similar expressions may identify forward-looking statements. The following factors, in addition to those included in the disclosure under the heading “FORWARD-LOOKING STATEMENTS AND RISK FACTORS” in “ITEM 1A. RISK FACTORS” of A&F’s Annual Report on Form 10-K for the fiscal year ended January 28, 2006, in some cases have affected and in the future could affect the Company’s financial performance and could cause actual results for the 2007 fiscal year and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this Press Release or otherwise made by management: changes in consumer spending patterns and consumer preferences; the effects of political and economic events and conditions domestically and in foreign jurisdictions in which the Company operates, including, but not limited to, acts of terrorism or war; the impact of competition and pricing; changes in weather patterns; postal rate increases and changes; paper and printing costs; market price of key raw materials; ability to source product from its global supplier base; political stability; currency and exchange risks and changes in existing or potential duties, tariffs or quotas; availability of suitable store locations at appropriate terms; ability to develop new merchandise; ability to hire, train and retain associates; and the outcome of pending litigation. Future economic and industry trends that could potentially impact revenue and profitability are difficult to predict. Therefore, there can be no assurance that the forward-looking statements included in this Press Release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other person, that the objectives of the Company will be achieved. The forward-looking statements herein are based on information presently available to the management of the Company. Except as may be required by applicable law, the Company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Fourteen Weeks Ended February 3, 2007 and Thirteen Weeks Ended January 28, 2006
(in thousands except per share data)

	ACTUAL						ACTUAL
	2006			% of Sales			2005			% of Sales
Net Sales	$	1,138,744			100.0	%	$	961,392			100.0	%
Cost of Goods Sold		383,109			33.6	%		321,974			33.5	%
Gross Profit		755,635			66.4	%		639,418			66.5	%
Total Stores and Distribution Expense		349,770			30.7	%		293,488			30.5	%
Total Marketing, General and Administrative Expense		101,623			8.9	%		80,783			8.4	%
Other Operating Income, Net		(4,592	)		-0.4	%		(2,341	)		-0.2	%
Operating Income		308,834			27.1	%		267,488			27.8	%
Interest Income, Net		(4,714	)		-0.4	%		(2,376	)		-0.2	%
Income Before Income Taxes		313,548			27.5	%		269,864			28.1	%
Income Tax Expense		115,356			10.1	%		105,240			10.9	%
Effective Rate		36.8	%					39.0	%
Net Income	$	198,192			17.4	%	$	164,624			17.1	%
Net Income Per Share:
Basic	$	2.25					$	1.88
Diluted	$	2.14					$	1.80
Weighted-Average Shares Outstanding:
Basic		88,159						87,647
Diluted		92,572						91,275

Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Fifty-Three Weeks Ended February 3, 2007 and Fifty-Two Weeks Ended January 28, 2006
(in thousands except per share data)

	ACTUAL						ACTUAL
	2006			% of Sales			2005			% of Sales
Net Sales	$	3,318,158			100.0	%	$	2,784,711			100.0	%
Cost of Goods Sold		1,109,152			33.4	%		933,295			33.5	%
Gross Profit		2,209,006			66.6	%		1,851,416			66.5	%
Total Stores and Distribution Expense		1,187,071			35.8	%		1,000,755			35.9	%
Total Marketing, General and Administrative Expense		373,828			11.3	%		313,457			11.3	%
Other Operating Income, Net		(9,983	)		-0.3	%		(5,534	)		-0.2	%
Operating Income		658,090			19.8	%		542,738			19.5	%
Interest Income, Net		(13,896	)		-0.4	%		(6,672	)		-0.2	%
Income Before Income Taxes		671,986			20.3	%		549,410			19.7	%
Income Tax Expense		249,800			7.5	%		215,426			7.7	%
Effective Rate		37.2	%					39.2	%
Net Income	$	422,186			12.7	%	$	333,984			12.0	%
Net Income Per Share:
Basic	$	4.79					$	3.83
Diluted	$	4.59					$	3.66
Weighted Average Shares Outstanding
Basic		88,052						87,161
Diluted		92,010						91,221

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

	(unaudited)
	February 3, 2007		January 28, 2006
ASSETS
Current Assets Cash and Equivalents	$	81,959	$	50,687
Marketable Securities		447,793		411,167
Receivables		43,240		41,855
Inventories		427,447		362,536
Deferred Income Taxes		33,196		29,654
Other Current Assets		58,469		51,185
Total Current Assets		1,092,104		947,084
Property and Equipment, Net		1,092,282		813,603
Other Assets		63,707		29,031
Total Assets	$	2,248,093	$	1,789,718
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts Payable and Outstanding Checks	$	128,310	$	145,313
Accrued Expenses		260,219		215,034
Deferred Lease Credits		35,423		31,727
Income Taxes Payable		86,675		99,480
Total Current Liabilities		510,627		491,554
Long-Term Liabilities
Deferred Income Taxes		30,394		38,496
Deferred Lease Credits		203,943		191,225
Other Liabilities		97,806		73,326
Total Long-Term Liabilities		332,143		303,047
Total Shareholders’ Equity		1,405,323		995,117
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,248,093	$	1,789,718

EX-99.2

EXHIBIT 99.2

ABERCROMBIE & FITCH
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, RATIOS AND STORE DATA)

PERIOD	2003							2004							2005							2006
																						(53 week year)
	(% Change)				(Total)			(% Change)				(Total)			(% Change)				(Total)			(% Change)				(Total)
1. Sales	(Comp Stores)				(% Change)			(Comp Stores)				(% Change)			(Comp Stores)				(% Change)			(Comp Stores)				(% Change)
1st Qtr		-6	%	346,722		11	%		0	%	411,930		19	%		19	%	546,810		33	%		6	%	657,271		20	%
2nd Qtr		-8	%	355,719		8	%		-5	%	401,346		13	%		30	%	571,591		42	%		0	%	658,696		15	%
3rd Qtr		-9	%	444,979		6	%		1	%	520,724		17	%		25	%	704,918		35	%		5	%	863,448		22	%
4th Qtr		-11	%	560,389		5	%		9	%	687,254		23	%		28	%	961,392		40	%		-3	%	1,138,744		18	%
Year		-9	%	1,707,810		7	%		2	%	2,021,253		18	%		26	%	2,784,711		38	%		2	%	3,318,158		19	%
6 Mos		-7	%	702,441		9	%		-3	%	813,276		16	%		24	%	1,118,401		38	%		3	%	1,315,967		18	%
9 Mos		-8	%	1,147,421		8	%		-1	%	1,333,999		16	%		24	%	1,823,319		37	%		4	%	2,179,415		20	%
2. Cost of Goods Sold					(% of Sales)							(% of Sales)							(% of Sales)							(% of Sales)
1st Qtr				130,243		37.6	%				144,006		35.0	%				189,558		34.7	%				227,355		34.6	%
2nd Qtr				122,068		34.3	%				120,429		30.0	%				181,931		31.8	%				203,438		30.9	%
3rd Qtr				167,328		37.6	%				184,107		35.4	%				239,832		34.0	%				295,250		34.2	%
4th Qtr				205,001		36.6	%				231,487		33.7	%				321,974		33.5	%				383,109		33.6	%
Year				624,640		36.6	%				680,029		33.6	%				933,295		33.5	%				1,109,152		33.4	%
6 Mos				252,311		35.9	%				264,435		32.5	%				371,489		33.2	%				430,793		32.7	%
9 Mos				419,639		36.6	%				448,542		33.6	%				611,321		33.5	%				726,043		33.3	%
3. Gross Profit					(% of Sales)							(% of Sales)							(% of Sales)							(% of Sales)
1st Qtr				216,479		62.4	%				267,924		65.0	%				357,252		65.3	%				429,915		65.4	%
2nd Qtr				233,651		65.7	%				280,917		70.0	%				389,660		68.2	%				455,258		69.1	%
3rd Qtr				277,651		62.4	%				336,617		64.6	%				465,086		66.0	%				568,198		65.8	%
4th Qtr				355,388		63.4	%				455,767		66.3	%				639,418		66.5	%				755,635		66.4	%
Year				1,083,169		63.4	%				1,341,225		66.4	%				1,851,416		66.5	%				2,209,006		66.6	%
6 Mos				450,130		64.1	%				548,841		67.5	%				746,912		66.8	%				885,173		67.3	%
9 Mos				727,781		63.4	%				885,457		66.4	%				1,211,998		66.5	%				1,453,372		66.7	%

__________

Q4 2006 results are based on 14-week quarter

ABERCROMBIE & FITCH
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, RATIOS AND STORE DATA)

PERIOD	2003						2004						2005						2006
																			(53 week year)
4. Total Stores and Distribution Expense				(% of Sales)						(% of Sales)						(% of Sales)						(% of Sales)
1st Qtr		137,747			39.7	%		165,515			40.2	%		222,223			40.6	%		258,352			39.3	%
2nd Qtr		139,732			39.3	%		160,515			40.0	%		232,097			40.6	%		270,494			41.1	%
3rd Qtr		155,937			35.0	%		188,381			36.2	%		252,947			35.9	%		308,456			35.7	%
4th Qtr		163,999			29.3	%		223,833			32.6	%		293,488			30.5	%		349,770			30.7	%
Year		597,416			35.0	%		738,244			36.5	%		1,000,755			35.9	%		1,187,071			35.8	%
6 Mos		277,479			39.5	%		326,030			40.1	%		454,320			40.6	%		528,846			40.2	%
9 Mos		433,417			37.8	%		514,411			38.6	%		707,267			38.8	%		837,302			38.4	%
5. Total Marketing, General and Administrative Expense				(% of Sales)						(% of Sales)						(% of Sales)						(% of Sales)
1st Qtr		38,238			11.0	%		55,784			13.5	%		67,146			12.3	%		89,699			13.6	%
2nd Qtr		38,932			10.9	%		51,703			12.9	%		67,884			11.9	%		85,340			13.0	%
3rd Qtr		41,323			9.3	%		86,273			16.6	%		97,644			13.9	%		97,167			11.3	%
4th Qtr		37,060			6.6	%		66,076			9.6	%		80,783			8.4	%		101,623			8.9	%
Year		155,553			9.1	%		259,836			12.9	%		313,457			11.3	%		373,828			11.3	%
6 Mos		77,170			11.0	%		107,488			13.2	%		135,030			12.1	%		175,039			13.3	%
9 Mos		118,493			10.3	%		193,760			14.5	%		232,674			12.8	%		272,206			12.5	%
6. Other Operating Income, Net				(% of Sales)						(% of Sales)						(% of Sales)						(% of Sales)
1st Qtr		(186	)		-0.1	%		(95	)		0.0	%		(406	)		-0.1	%		(2,121	)		-0.3	%
2nd Qtr		(147	)		0.0	%		(63	)		0.0	%		(1,408	)		-0.2	%		(3,005	)		-0.5	%
3rd Qtr		(187	)		0.0	%		(15	)		0.0	%		(1,379	)		-0.2	%		(266	)		0.0	%
4th Qtr		(459	)		-0.1	%		(4,317	)		-0.6	%		(2,341	)		-0.2	%		(4,592	)		-0.4	%
Year		(979	)		-0.1	%		(4,490	)		-0.2	%		(5,534	)		-0.2	%		(9,983	)		-0.3	%
6 Mos		(333	)		0.0	%		(158	)		0.0	%		(1,814	)		-0.2	%		(5,126	)		-0.4	%
9 Mos		(520	)		0.0	%		(174	)		0.0	%		(3,193	)		-0.2	%		(5,392	)		-0.2	%

__________

Q4 2006 results are based on 14-week quarter

ABERCROMBIE & FITCH
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, RATIOS AND STORE DATA)

PERIOD	2003						2004						2005						2006
																			(53 week year)
7. Operating Income				(% of Sales)						(% of Sales)						(% of Sales)						(% of Sales)
1st Qtr		40,680			11.7	%		46,720			11.3	%		68,289			12.5	%		83,985			12.8	%
2nd Qtr		55,134			15.5	%		68,762			17.1	%		91,087			15.9	%		102,429			15.6	%
3rd Qtr		80,578			18.1	%		61,978			11.9	%		115,874			16.4	%		162,841			18.9	%
4th Qtr		154,788			27.6	%		170,175			24.8	%		267,488			27.8	%		308,834			27.1	%
Year		331,179			19.4	%		347,635			17.2	%		542,738			19.5	%		658,090			19.8	%
6 Mos		95,814			13.6	%		115,483			14.2	%		159,376			14.3	%		186,415			14.2	%
9 Mos		176,392			15.4	%		177,460			13.3	%		275,250			15.1	%		349,256			16.0	%
8. Interest Income, Net				(% of Sales)						(% of Sales)						(% of Sales)						(% of Sales)
1st Qtr		(991	)		-0.3	%		(985	)		-0.2	%		(1,220	)		-0.2	%		(3,166	)		-0.5	%
2nd Qtr		(861	)		-0.2	%		(1,358	)		-0.3	%		(1,560	)		-0.3	%		(2,765	)		-0.4	%
3rd Qtr		(757	)		-0.2	%		(1,574	)		-0.3	%		(1,516	)		-0.2	%		(3,252	)		-0.4	%
4th Qtr		(1,099	)		-0.2	%		(1,299	)		-0.2	%		(2,376	)		-0.2	%		(4,714	)		-0.4	%
Year		(3,708	)		-0.2	%		(5,216	)		-0.3	%		(6,672	)		-0.2	%		(13,896	)		-0.4	%
6 Mos		(1,852	)		-0.3	%		(2,343	)		-0.3	%		(2,780	)		-0.2	%		(5,931	)		-0.5	%
9 Mos		(2,609	)		-0.2	%		(3,919	)		-0.3	%		(4,296	)		-0.2	%		(9,183	)		-0.4	%
9. Pre-tax Income				(% of Sales)						(% of Sales)						(% of Sales)						(% of Sales)
1st Qtr		41,671			12.0	%		47,707			11.6	%		69,509			12.7	%		87,151			13.3	%
2nd Qtr		55,995			15.7	%		70,120			17.5	%		92,647			16.2	%		105,194			16.0	%
3rd Qtr		81,335			18.3	%		63,552			12.2	%		117,390			16.7	%		166,093			19.2	%
4th Qtr		155,887			27.8	%		171,474			25.0	%		269,864			28.1	%		313,548			27.5	%
Year		334,887			19.6	%		352,853			17.5	%		549,410			19.7	%		671,986			20.3	%
6 Mos		97,666			13.9	%		117,827			14.5	%		162,156			14.5	%		192,346			14.6	%
9 Mos		179,001			15.6	%		181,379			13.6	%		279,546			15.3	%		358,439			16.4	%

__________

Q4 2006 results are based on 14-week quarter

ABERCROMBIE & FITCH
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, RATIOS AND STORE DATA)

PERIOD	2003						2004						2005						2006
																			(53 week year)
10. Taxes				(Tax Rate)						(Tax Rate)						(Tax Rate)						(Tax Rate)
1st Qtr			15,886		38.1	%			18,390		38.5	%			29,150		41.9	%			30,911		35.5	%
2nd Qtr			21,467		38.3	%			27,232		38.8	%			35,246		38.0	%			39,472		37.5	%
3rd Qtr			31,401		38.6	%			23,641		37.2	%			45,790		39.0	%			64,062		38.6	%
4th Qtr			61,304		39.3	%			67,214		39.2	%			105,240		39.0	%			115,356		36.8	%
Year			130,057		38.8	%			136,477		38.7	%			215,426		39.2	%			249,800		37.2	%
6 Mos			37,353		38.2	%			45,622		38.7	%			64,396		39.7	%			70,383		36.6	%
9 Mos			68,754		38.4	%			69,263		38.2	%			110,186		39.4	%			134,445		37.5	%
11. Net Income				(% of Sales)						(% of Sales)						(% of Sales)						(% of Sales)
1st Qtr			25,785		7.4	%			29,317		7.1	%			40,359		7.4	%			56,240		8.6	%
2nd Qtr			34,528		9.7	%			42,888		10.7	%			57,401		10.0	%			65,722		10.0	%
3rd Qtr			49,934		11.2	%			39,911		7.7	%			71,600		10.2	%			102,031		11.8	%
4th Qtr			94,583		16.9	%			104,260		15.2	%			164,624		17.1	%			198,192		17.4	%
Year			204,829		12.0	%			216,376		10.7	%			333,984		12.0	%			422,186		12.7	%
6 Mos			60,313		8.6	%			72,205		8.9	%			97,760		8.7	%			121,963		9.3	%
9 Mos			110,247		9.6	%			112,116		8.4	%			169,360		9.3	%			223,994		10.3	%
12. Net Income				(% Increase)						(% Increase)						(% Increase)						(% Increase)
1st Qtr			25,785		11.6	%			29,317		13.7	%			40,359		37.7	%			56,240		39.3	%
2nd Qtr			34,528		12.0	%			42,888		24.2	%			57,401		33.8	%			65,722		14.5	%
3rd Qtr			49,934		5.6	%			39,911		-20.1	%			71,600		79.4	%			102,031		42.5	%
4th Qtr			94,583		1.1	%			104,260		10.2	%			164,624		57.9	%			198,192		20.4	%
Year			204,829		5.2	%			216,376		5.6	%			333,984		54.4	%			422,186		26.4	%
6 Mos			60,313		11.8	%			72,205		19.7	%			97,760		35.4	%			121,963		24.8	%
9 Mos			110,247		8.9	%			112,116		1.7	%			169,360		51.1	%			223,994		32.3	%
13. Net Income per Diluted Share				(% Increase)						(% Increase)						(% Increase)						(% Increase)
1st Qtr		$	0.26		13.0	%		$	0.30		15.4	%		$	0.45		50.0	%		$	0.62		37.8	%
2nd Qtr		$	0.34		13.3	%		$	0.44		29.4	%		$	0.63		43.2	%		$	0.72		14.4	%
3rd Qtr		$	0.50		6.4	%		$	0.42		-16.0	%		$	0.79		88.1	%		$	1.11		40.5	%
4th Qtr		$	0.97		3.2	%		$	1.15		18.6	%		$	1.80		56.5	%		$	2.14		18.9	%
Year		$	2.06		6.2	%		$	2.28		10.7	%		$	3.66		60.5	%		$	4.59		25.4	%
6 Mos		$	0.60		13.2	%		$	0.74		23.3	%		$	1.07		44.6	%		$	1.34		25.2	%
9 Mos		$	1.10		10.0	%		$	1.16		5.5	%		$	1.87		61.2	%		$	2.44		30.5	%

__________

Q4 2006 results are based on 14-week quarter

ABERCROMBIE & FITCH
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, RATIOS AND STORE DATA)

PERIOD	2003					2004					2005					2006
																(53 week year)
14. Weighted-Average Shares Outstanding (Diluted)
1st Qtr		99,835					96,872					89,800					91,327
2nd Qtr		100,128					97,590					91,501					91,178
3rd Qtr		99,102					95,351					90,458					92,146
4th Qtr		97,839					90,750					91,275					92,572
Year		99,580					95,110					91,221					92,010
6 Mos		100,542					97,118					90,946					91,274
9 Mos		100,095					96,522					90,422					91,675
15. Actual Shares Outstanding — End of Period
1st Qtr		98,004					94,788					86,324					87,958
2nd Qtr		96,438					95,773					88,707					88,038
3rd Qtr		96,326					90,556					87,606					88,192
4th Qtr		94,607					86,040					87,726					88,300
16. Number of Stores — End of Period			(% Increase)					(% Increase)					(% Increase)					(% Increase)
1st Qtr		602		18.7	%		706		17.3	%		783		10.9	%		846		8.0	%
2nd Qtr		625		17.3	%		727		16.3	%		804		10.6	%		880		9.5	%
3rd Qtr		651		16.3	%		764		17.4	%		820		7.3	%		912		11.2	%
4th Qtr		700		17.3	%		788		12.6	%		851		8.0	%		944		10.9	%
17. Gross Square Feet — End of Period			(% Increase)					(% Increase)					(% Increase)					(% Increase)
1st Qtr		4,392		16.4	%		5,065		15.3	%		5,573		10.0	%		5,974		7.2	%
2nd Qtr		4,538		15.3	%		5,192		14.4	%		5,674		9.3	%		6,220		9.6	%
3rd Qtr		4,709		14.6	%		5,439		15.5	%		5,789		6.4	%		6,441		11.3	%
4th Qtr		5,021		15.2	%		5,591		11.4	%		6,025		7.8	%		6,694		11.1	%

__________

Q4 2006 results are based on 14-week quarter

EX-99.3

EXHIBIT 99.3

Final Transcript

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Conference Call Transcript

ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

Event Date/Time: Feb. 21. 2007 / 4:30PM ET

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

CORPORATE PARTICIPANTS

Tom Lennox
Abercrombie & Fitch Co. — VP Corporate Communications

Mike Jeffries
Abercrombie & Fitch Co. — Chairman and CEO

Mike Kramer
Abercrombie & Fitch Co. — CFO, PAO and SVP

CONFERENCE CALL PARTICIPANTS

Dana Cohen
Bank of America Securities — Analyst

Jeff Klinefelter
Piper Jaffray — Analyst

Randal Konik
Bear Stearns — Analyst

Jennifer Black
Jennifer Black Associates — Analyst

Brian Tunick
JPMorgan — Analyst

Lorraine Maikis
Merrill Lynch — Analyst

Janet Kloppenburg
JJK Research — Analyst

Jeff Black
Lehman Brothers — Analyst

Margaret Mager
Goldman Sachs — Analyst

Stacy Pak
Prudential Securities — Analyst

Dana Telsey
Telsey Advisory Group — Analyst

Barbara Wyckoff
Buckingham Research — Analyst

PRESENTATION

Operator

Good day, everyone, and welcome to the Abercrombie & Fitch first quarter earnings results conference. [OPERATOR INSTRUCTIONS]. At this time, I would like to turn the conference over to Mr. Tom Lennox, please go ahead, sir.

Tom Lennox - Abercrombie & Fitch Co. — VP Corporate Communications

Good afternoon, and welcome to our fourth quarter and 2006 fiscal year end conference call. After the market closed, we publicly released the quarterly sales and earnings release, balance sheet, income statement and an updated financial history. If you haven’t seen these materials, they

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Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

are available on our Website. This call is being taped and can be replayed by dialing 888-203-1112. You will need to reference the conference ID number 6004097. You may also access the replay through the Internet at abercrombie.com.

With me today are Mike Jeffries, Chairman and Chief Executive Officer, Mike Kramer; Mike Kramer, Chief Financial Officer; Mike Nuzzo, Vice President of Finance; and Brian Logan, the Company’s Controller. Today’s earnings call will be limited to one hour. After our prepared comments, we will be available to take your questions for as long as time permits. Please limit yourself to one question so that we can speak with as many callers as possible.

Before we begin, I remind you that any forward-looking statements we may make today are subject to the Safe Harbor statement found in our SEC filings. Now to Mike Jeffries.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Good afternoon. Our fourth quarter results capped another excellent year for Abercrombie & Fitch. The Company’s strong performance demonstrates the proper positioning of our brands and the strength of our business model. Investments we make in our brands and business continue to pay off in the form of high quality sales and earnings growth. This is a strategy that we will continue to employ in 2007.

Before Mike Kramer gives us the financial results, I will spend a few minutes discussing our investment strategy, which we believe will enable us to drive and support the Company’s future top line and bottom line growth. The first area of investment is new concepts and the expansion of our existing brands to new markets in order to drive sales growth. Our newest brand, RUEHL, performed well in 2006, exhibiting strong trends in many areas. From a productivity standpoint, the average RUEHL store generated over $3.2 million in sales in fiscal 2006.

Transactions per store increased 55% over the prior year and the brand generated a 14% comparable store increase for the year. Clearly, we are building a customer base. From a gross margin standpoint, RUEHL’s initial markup improved dramatically, up 22% versus last year. We also reduced the markdown rate and are improving inventory turns. We are targeting gross margin parity with our other brands by the end of 2007. We are also benefiting from prior experiences with the initial store model and have lowered store construction costs by reducing overall store size. Going from a two level to a one level format and strategically sourcing fixtures and materials.

As with the other brands, we are adjusting in-store payroll levels. Most importantly, we feel these changes do not compromise brand standards. We continue to focus on prime real estate, recently opening RUEHL stores in Roosevelt Field and Aventura Mall, with locations like Fashion Show in Las Vegas and Natick Mall in Boston, slated to open in 2007. Overall, the goal remains for RUEHL to be profitable by the end of 2007.

As noted in our press release, we are planning to introduce our next new concept in January 2008, with seven stores opening by March 2008. The business has been in the development phase for two years. We invested $7.5 million in 2006 in home office startup activities and expect to invest from $12 to $15 million in 2007. We are very excited about this business and believe it has huge potential.

We are also investing in our international growth. As you recall, our long-term strategy called for international expansion in a very cautious way. This approach is paying off. For example, our investment in Canada last year is already showing significant returns. The six Canadian stores continue to generate approximately three times more sales per square foot than our average U.S. store. And are generating more than three times the four-wall profit of the average U.S. store. We are exploring kids store expansion into Canada in 2007, while future target markets for all brands include Vancouver and Calgary.

Our next major international focus is the U.K. with a planned opening of our London flagship Abercrombie & Fitch store on March 2, 2007. We believe that this store has the potential to generate sales per square foot similar to the Fifth Avenue flagship. Its location will be a draw for both local and tourist customers.

In addition, the growing iconic status of Hollister, combined with its success in Canada and international Web sales, has given us the confidence to accelerate its international rollout. Finally, we are aggressively pursuing real estate in both Tokyo and key European markets for the next phase of international expansion for A&F and Hollister.

In addition to new concepts in international growth, we continue to reinvest in our existing domestic store base to grow sales productivity. Instead of letting stores wear down, which would require a full remodel in the future, we continuously refresh to ensure the excellent condition of our fleet. Since store experience is a key brand attribute, we feel this approach is critical for long-term success.

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Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

In fiscal 2006, we invested $40 million to refresh existing A&F, Abercrombie and Hollister stores. And in fiscal 2007, we plan to continue this initiative by investing an additional $60 million. In fiscal 2008 and beyond, this expenditure level should decrease since 2006 and 2007 refresh efforts incorporate a level of catchup investment. Our investment in home office infrastructure will support growth and generate operating efficiencies.

In 2006 we opened our second distribution center, which has capacity to accommodate the addition of approximately 800 new stores. The distribution center, located on our campus, will service all Hollister stores as well as our Fifth concept. This year we anticipate UPH leverage and quicker DC to store response time.

In 2006, we also opened an on-campus merchandise research and development center, known as the innovation design center or IDC. It employs a dedicated team and uses over 100 wash quality assurance lab and graphic machines. The center produces graphic and wash samples for quick approval, while final designs can be packaged as recipes for vendor production. The IDC saves time and expense in the development process, enabling us to reduce time to market for the latest fashion trends. Serving as a lab for the production of graphics, destroy techniques and colors, we can be more fashion-forward while limiting the competition’s ability to copy us.

And finally, you are already aware of investments in technology, which Mike Kramer will elaborate on later. I can tell you that we are not just making up for past underinvestment in IT but using technology to make a significant long-term impact on operations. In 2006, we invested approximately $400 million in capital expenditures and approximately $50 million in expense dollars in growth initiatives. We did this while growing earnings and expanding operating margin to 19.8% on a 2% comparable store sales increase.

These results were posted on top of a 2005 performance that was very challenging to build upon. We managed the bottom line tightly to ensure the proper balance between investment and earnings goals. In 2007, we will continue this approach. Making strategic investments that help drive long-term growth, while maintaining the bottom line discipline that has helped us meet earnings goals quarter after quarter.

Although we expect progress from our efforts in 2007, we anticipate a greater impact on operational performance in 2008 and beyond. I am excited about these prospects. With this overview, I will now turn the presentation over to Mike Kramer to discuss our financial results.

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

Thanks, Mike. Good afternoon. Fiscal 2006 fourth quarter net sales for the 14 weeks ended February 3, 2007 increased 18% to $1.139 billion from $961.4 million for the 13 weeks ended January 28, 2006. As our press release states, the fiscal 2006 retail calendar includes a 53rd week. Fourth quarter comps are compared to the 14 week period ended February 4, 2006. Total Company comparable store sales declined 3% in the fourth quarter.

By region, comps were strongest in the New York and Mid-Atlantic region and weakest in the West region. For the 53 weeks fiscal year ended February 3, 2007, net sales increased 19%, reaching $3.318 billion versus $2.785 billion for the 52 week period ended January 28, 2006. Comparable store sales increased 2% in fiscal 2006. Fiscal 2006 direct to consumer net sales increased 42% over fiscal 2005. The fourth quarter gross profit rate was 66.4%, 10 basis points lower compared to last year.

The decline in gross profit rate was primarily due to higher strength and a slightly higher markdown rate versus last year. For fiscal 2006, the gross profit rate was 66.6% versus 66.5% last year, an increase of 10 basis points versus last year. We ended the fourth quarter with inventories up 6% per gross square foot at cost versus last year, in line with the guidance provided on our third quarter conference call. When we estimated that year-end inventory would be flat to slightly positive on a per square foot at cost basis.

Going forward, we expect to end the first quarter of 2007 with inventory flat to slightly positive on a per square foot at cost basis, compared to the first quarter of 2006. Stores and distribution expense for the quarter, as a percentage of sales, increased 20 basis points to 30.7%, versus 30.5% last year. The increase in rate versus last year resulted from increased distribution center expenses, primarily attributed to the startup of our second DC and direct to consumer expenses, which increased due to higher Internet sales as a percentage of total sales. These increases were partially offset by decreased store expenses as a percentage of sales.

Payroll was higher as a percentage of sales due primarily to management salary increases, minimum wage increases and additional floor coverage to address stores with shrink concerns. However, other variable expenses were tightly managed and allowed us to achieve overall leverage in this area. For the year, stores and distribution expense, as a percentage of sales, decreased 10 basis points to 35.8%, versus 35.9% last year. The decrease in rate versus last year resulted from the Company’s ability to leverage store expenses on a 2% comparable store sales increase.

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

For the fourth quarter, marketing general and administrative expense increased 50 basis points, as a percentage of sales, to 8.9% from 8.4% last year. The increase in rate versus last year resulted from an increase in home office payroll and consulting expenses as a percentage of sales. The increased expense in this area is driven by strategic investment in key areas like IT, planning, brand protection and sourcing. For the year, MG&A expense was 11.3% of sales, flat to last year. For the fourth quarter, operating income increased 15% to $308.8 million, compared to $267.5 million last year. For the year, operating income was $658.1 million, versus $542.7 million last year, an increase of 21%.

The effective tax rate for the fourth quarter was 36.8%, compared to 39% for the 2005 comparable period. The decrease in the effective tax rate relates to an increase in tax exempt income over the prior year comparable period, favorable settlements of certain tax audits and favorable changes in estimates of potential outcomes of certain state tax matters. Net income for the fourth quarter increased 20% to $198.2 million, versus $164.6 million last year. Fiscal 2006 net income increased 26% to $422.2 million, versus $334 million last year. Fourth quarter net income per diluted share increased 19% to $2.14 versus $1.80 last year.

For fiscal 2006, net income per diluted share increased 25% to $4.59, versus $3.66 last year. During the quarter, we opened three Abercrombie & Fitch stores, eight Abercrombie stores, 21 Hollister stores and four RUEHL stores. We ended fiscal 2006 with a total of 360 Abercrombie & Fitch stores, 177 Abercrombie stores, 393 Hollister stores and 14 RUEHL stores. For fiscal 2007, we plan to open approximately six new Abercrombie & Fitch stores, 27 new Abercrombie stores, 67 new Hollister stores, and 10 new RUEHL stores.

As discussed, we also plan to introduce our next concept in January 2008 with the opening of three stores. Total square footage is expected to grow by approximately 12% in fiscal 2007. For fiscal 2007, our planned capital expenditures will be between $360 and $370 million. Approximately $220 million of this amount is allocated to new store construction and full store remodels, with an additional $60 million allocated to refreshing our existing store base as follows.

Around $40 million will be spent in A&F and kids on approximately 160 stores for upgrade projects, which include new floors, sound systems and fixture replacement. Approximately $10 million will be spent in A&F to complete the however and new signage project. And $10 million to add video walls to approximately 80 existing Hollister stores and to selectively add fixtures across the chain. In the home office our capital expenditures include approximately $35 million for new office buildings. $10 million for new direct to consumer, distribution and logistics equipment and systems. And around $40 million of IT investment.

As Mike mentioned, we approach IT investment in two ways. Number one, the upgrade of core systems to help run allocation, planning, sourcing and merchandising. These system changes will make us scalable, efficient and more accurate in the production and delivery of product to stores. And, number two, the pursuit of best practice technology that will give us a clear competitive advantage in the sector.

We are exploring long-term solutions and business intelligence, in store wireless applications and Web services, focusing on implementations that maximize payback in terms of sales growth and operating margin. In 2006, we added and developed key talent and leadership within our IT organization that makes me confident that our approach and activities will have a significant impact on the business.

Now, I would like to discuss our financial targets for the first half of fiscal 2007. We expect net income per diluted share for the first half of fiscal 2007 to be in the range of $1.47 to $1.52, representing a 10% to 13% increase on a net income per share basis, compared to last year. Due to the impact of the London preopening store costs, along with difficult comparisons of last year’s tax rate favorability, diluted earnings per share growth in the first quarter of 2007 is expected to be in the mid-single digit range.

The low end of this earnings guidance reflects a flat comparable store sales scenario for the first half of fiscal 2007. Our February sales trend began similar to January trends but is improving as more spring-like weather arrives. Our guidance assumes such continued improvement as we move through the season.

Now, we are available to take your questions. Please limit yourself to one question so that we can speak with as many callers as possible. After everyone has had a chance, we will be happy to take follow-up questions.

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

QUESTION AND ANSWER

Operator

[OPERATOR INSTRUCTIONS]. We’ll go first to Dana Cohen, Bank of America.

Dana Cohen - Bank of America Securities — Analyst

Hi. Good afternoon, guys. Mike, maybe you could just talk a little bit about what you’re seeing with respect to fashion and how you feel about each of the businesses going into the spring?

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

As we look at our business, we continue to have really good results in tops. Female tops business continues very strong, as it has been. And the male business in tops is very strong. The biggest wild card is female bottoms. We have really great success with shorts. And we’re anticipating, that as a percent of our business, that’s going to grow as we develop or we hope to find some warm weather. I believe that that’s going to be the biggest difference in the business.

Our crop business is poor. It’s poor in denim and it’s poor in twill but the short business is excellent. So, as that becomes a bigger percentage of our business, we hope to see improvement there. But the really positive thing about our business is the continued growth of the tops business, in all of our brands and I would say that’s a bird’s eye view.

Operator

We’ll go next to Jeff Klinefelter, Piper Jaffray.

Jeff Klinefelter - Piper Jaffray — Analyst

Yes, thank you, congratulations everyone on a solid year. In terms of the international expansion, Mike and Mike, if you want, just comment a little bit more on how we should think about the economic model. I know it’s just starting and you’re going with one flagship. But they are very different markets in terms of the availability of real estate and the cost of real estate and others have struggled in the past. Can you talk at all about how you think about the IRR at the firm? Is this going to be same sort of investment hurdle rates from a financial perspective and just anything else you can share on what we should anticipate?

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

Yes, in terms of our international expansion business plan, we are anticipating keeping the same hurdle rate. We do understand that there’s going to be a cost increase related to occupancy. We also understand there will be a cost increase related to payroll in certain areas. But we also believe that there will be something to offset that and that is our pricing and what we will be able to price our product as compared to what we’re — you’re actually seeing in U.S. dollars here domestically.

So net/net we’re looking at really no difference from a bottom line perspective, particularly maybe even an increase. So hopefully, that answered your question. In terms of international expansion, and Mike can add to this, that I want to point out something that was called out in terms of our script is the acceleration in terms of Hollister. We’re very excited about Hollister expansion overseas and we believe we’re well-positioned to do that. And we are already — as we’ve been looking for great property for A&F, we are starting to see great property for Hollister as well.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

I think you’ve said it very well.

Operator

We’ll go next to Randal Konik, Bear, Stearns.

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

Randal Konik - Bear Stearns — Analyst

Thank you very much. A question just for Mike Kramer. Can you — you talked a little bit about some of the IT projects underway, planning and allocation etc. Do you have some sort of timeline you could provide us with? And in terms of the spending on that, in the third quarter I think you made some mention of some or your spend on IT, 50% was capitalized, 50% was expensed to P&L. How do you see that ratio playing out in ‘07? And then are you taking any differentiated steps to distribution as you pursue international growth? You’re going to have a distribution center in Europe, per se, etc.?

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

Wow, that’s a long question.

Randal Konik - Bear Stearns — Analyst

I had to fit it in.

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

I’ll see what I can do. In terms of the ratio, CapEx to expense, I don’t see any change to that. Again, we are increasing our CapEx with regards to IT year to year but we’re also increasing our expense as well. I’m glad you asked this question because this is really important for people to understand. In terms of CapEx, in 2006, we spent $26 million. Now, what we’ve done is I’ve tried to break this down to four key categories for people to understand really the movement and strategy related to Abercrombie & Fitch.

Of that $26 million, I’m going to break this down to four categories. One is compliance, one is maintenance, one is innovation, and one is growth. If you take a look at that $26 million in 2006, we spent 10% on compliance, 68% on maintenance, 0% on innovation, 24% on growth. Now, let me be very cautious here, when I say innovation, I am not talking about first-to-market in technology. We are talking about best practice and new technology to us that is proven technology.

So, let’s take that same four categories and look at 2007. We’re again looking at 10% compliance; maintenance would be 24%; innovation, 27%; growth, 39%. To give you a little bit of indication of what falls within the growth category, obviously the new brands, Concept 5, we’re going to enhance direct to consumer, expansion into the U.K., these are all things that we consider growth. In terms of innovation, I’ve talked about wireless technology within our stores for efficiency, storeroom management for efficiency and as we indicated in our script, business intelligence.

So hopefully, that gives somebody — some idea in terms of we’re moving our entire organization from a true spending dollars on maintenance, to trying to minimize our go forward maintenance. And be able to use those same dollars for what we would call items that will help us in the future from an efficiency and a growth perspective. With regards to the DC expansion, we’re still working through our DC strategy with regards to international. Again, some of this is going to be dictated by where these are located. I’m not going to invest significantly in any kind of what I would call capital expense for a distribution center for one store.

And again, we’ve highlighted where we’re going to go from an international perspective but the availability of quality real estate is really going to dictate the cadence of whether it’s located in the U.K. or Japan, from a second store, third store, fourth store. So we’re taking a look at that. And on a short term perspective, from a distribution perspective, we are looking at sourcing a portion of this out. So hopefully, I’ve answered that question.

Operator

We’ll go next to Jennifer Black, Jennifer Black Associates.

Jennifer Black - Jennifer Black Associates — Analyst

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

Good afternoon. I wondered, Mike, if you are happy with your fit specs at all divisions and would you consider adding a size to your division, such as, say, a 14 to Abercrombie and a 13 to Hollister. And I know your skirts don’t go up as high either. Can you comment on this?

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Yes. I’m happy with what we’re sorting at this point. I don’t — as we look at our size selling, it doesn’t indicate that there would be appreciable increase in the business if we added a size. I will say that in female bare tops, our sizing is a little small and we can see that by our outselling larges. We hope to have that corrected for the summer season. But other than that, I’m pleased with where we are.

Operator

We’ll go next to Brian Tunick, JPMorgan.

Brian Tunick - JPMorgan — Analyst

Two quick ones. Just one about the other income line, maybe just talk a little more about what’s happening there? And then secondly, I’m intrigued about Canada. Mike, your comments about how profitable it is. When can we see Hollisters there and what exactly is causing the four-wall returns to be I think you said triple the U.S. returns?

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

Let me speak to the other income. The $4.5 million in other income, the majority of that relates to income related to gift card breakage. Roughly $3.5 million of that is related to that. Your question in terms of profitability in Canada, keep in mind, the average footprint of our stores in Canada are similar if not exact to our stores in the United States. We do have a high fixed costs there but given the fact that the sales productivity is three times, that just means that you’re flowing an extraordinary amount to the bottom line because I only have a 5% to 7% variable expense structure.

So having said that, therein lies the profitability we’re seeing with regards to Canada. The pricing is not that much different in terms of our Canadian business. With regards to Hollister, we already have three Hollister stores in Canada and they’re doing very, very well. And as we indicated, that gives us a lot of confidence with regards to the iconic nature of the brand outside of the United States, as well as just in terms of volume, what we could possibly do, coupled with the Internet sales internationally outside of this continent. Hopefully, I answered everything.

Operator

We’ll go next to Lorraine Maikis, Merrill Lynch.

Lorraine Maikis - Merrill Lynch — Analyst

Do you plan to use your free cash flow to buy back stock this year and is that in your guidance?

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

The quick answer to that is the same answer that we’ve given you in the past, that we’re going to take a look at our cash flow needs from a CapEx perspective, the availability based on our window. And any excess cash over the $350 limit that our CEO has demanded, we will definitely get back into the market. And I would say that if there was any particular buy back, that yes, it would be built into the forward-looking guidance.

Operator

We’ll go next to Janet Kloppenburg, JJK Research.

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

Janet Kloppenburg - JJK Research — Analyst

Good afternoon and congratulations on a great year. Couple questions. I know that the RUEHL is adjusted to break even or add to profitability maybe in ‘07. The investment in Concept 5 is going up. Can you tell me how that will net out in terms of the effect on the bottom line? And Mike, with a similar level of comp in ‘07, as you delivered in ‘06, can you leverage your store expense line? And are we to assume that Hollister will grow, expand internationally in ‘07? And my last question is if Mike could just talk about the outlook for the denim business in both the first half and second half of ‘07? Thank you.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Okay. That’s a great list. Kramer, do you want to start with investments and we’ll go from there?

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

In terms of our RUEHL profit in ‘07 we have not indicated in terms of dollar amount. What we’ve indicated is is that we are on our glide path to profitability in the later part of this year, 2007.

Janet Kloppenburg - JJK Research — Analyst

Mike, if you combine that with — if you look at what your projection is versus what you’re investing in Concept 5, will we net out at a loss on both concepts?

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

The answer to that question is yes.

Janet Kloppenburg - JJK Research — Analyst

Okay.

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

But I’m not going to indicate how much. I want to elaborate something on this, is that in terms of Concept 5, we started invested significantly in C5 in advance of — if you take a look at the business model for — with regards to RUEHL. I anticipate to be more profitable out of the gate than we were with regards to RUEHL when we started opening our store base there. We’ve been able to have time to look at cost reengineering. We’ve been able to have time to really scope this out so that we actually can start out of the gate in a better situation with C5 than we did RUEHL. But as always, there’s costs associated with startup of a new concept.

Can we leverage S&D in 2007? The answer to that is we’re going to do a little flip-flop on you guys this year. Last year we leveraged stores and distribution and we didn’t in MG&A. This year you’re going to see leverage in MG&A. In fact, what we’re hoping to do is hold our dollars per quarter on an MG&A flat for the entire year.

How can we do this? One is, is we’re still investing. We’re still going to hire people. We’re not going to hire people at the rate that we have done in the past. But some of our investment in terms of technology is starting to pay off in terms of efficiency. And it will allow us to reallocate resources as well.

In terms of stores and distribution, again, we’ve said that we will leverage stores and distribution on a flat to moderate comp. However, there’s some fixed costs that have been added to the plate this year. One of them is the minimum wage, which I have indicated is roughly around $6 million a season. And that’s the biggest hurdle in terms of — we also have small amount of preopening and those kind of things. But the largest impact is payroll related, minimum wage and the increase to our managers, as we have indicated in the past. Because we want to try to retain the talent out there as much as we can and be more competitive.

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Let me go to question three, which is; Will there be a Hollister international store in 2007? The answer is no. We’re anticipating the first would be in 2008. We are developing a flagship Hollister concept that will play in the U.S. and internationally.

We have obviously been very successful with the flagship concept in A&F from two points of view. One, in terms of the return. And two, that it stretches us to make improvements in the fleet that we design into the flagship. So, I’m very excited about that prospect. So expect to see that starting in 2008, from a domestic and an international point of view. So no expansion in Hollister in 2007.

The fourth part of your question was denim. I anticipate that the women’s and men’s denim business will continue negative for the first half of this year. In women’s, the negative is arising from a crop business that is not good. In women’s, I anticipate a total increase second half in women’s denim and kind of a flat performance in men’s denim. That’s what we’re projecting and I feel pretty comfortable with that. Thanks, Janet.

Operator

We’ll go next to Stacy Pak, Prudential.

Stacy Pak - Prudential Securities — Analyst

Great. Hi. Can you hear me?

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Hi, Stacy. Yes.

Stacy Pak - Prudential Securities — Analyst

Hi. Okay. A couple things. One is Mike, can you tell us what you expect or hope to get out of the these new allocation planning and storage systems that you’re putting in place? And address whether the investments you’re making in systems and these growth initiatives you’ve been talking about should hit — negatively impact the operating margin over time? Whether the operating margin should be maintained or increased? And if you can quantify, if there’s a change there? And then second of all, I’d like to you clarify what you said at the beginning of the call on comp. I think what you said is you started out similar to January, which I believe was like -6, and now you’re improving. So should we be looking for a positive comp in February or kind of where are you going with that? And then third, Mike Jeffries, I was hoping you could comment sort of why on the comps, why you haven’t been able to come through with a stronger comp? Do you think there’s an issue with newness? Do you think the sales per square foot are simply too high? Or do you think it’s the weather, which clearly there’s been an impact? Thanks.

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

I’ll start off with regards to what do we anticipate in terms of our investment in allocation, planning and sourcing. Well, one is we want to have a very cohesive supply chain. And not only are we looking at efforts to basically increase our time to market, which enables us much more flexibility. It also hopefully, will be quicker to market and therefore, maybe negatively impact in terms of the competition in terms of copying us. But in terms of also accuracy. We also expect efficiency with regards to having, I would say, much more simpler systems to be able to diminish the amount of time needed for training. And therefore, become much more productive with regards to our staffing in the entire supply chain.

The second question with regard to comps, I’m not going to tell you where I’m expecting. What we tried to do is kind of give you guidance in terms of it. And I think that in essence it alluded to somewhat the weather. I’m really glad that you asked this question. And Mike, can actually elaborate on this further. But mother nature wasn’t good to us in Q4. And I actually got comments from a lot of you with regards to prior to Christmas and in terms of the unseasonably warm weather and then last two weeks of January being very, very frigid. But what I want to say and then I’ll turn it over to Mike, is I’m so proud of this organization in terms of how we ended the quarter in terms of our carryover, in terms of our margin, in terms of Q4, given the fact that mother nature was not cooperative this year.

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Okay. And let me tackle the total comp issue, Stacy. I think we obviously are at a very high level of productivity in our brands. I don’t foresee huge increases in our future because we are highly productive and consistently productive.

Having said that, I think we can get comp store increases at a better rate than we experienced fourth quarter. Clearly, fourth quarter had some problems that were created by — you’ve never heard me talk about weather, but it was a perfectly dreadful scenario for our business from a weather point of view. We were also up against big denim figures that over time we’ll mitigate. And I answered January in terms of how I saw that going and where I see the female bottoms business going, which has been the biggest drag on the business. I think if shorts turn out to be what we think they’re going to be, it will make an impact on the business in terms of comps.

There is also another factor that I would like to discuss. And that is that the business that trended off the most in terms of trend was Hollister female tops. We did that to ourselves. What we did was to convert that brand to a soft sensor system that replaced hard tags. And we mentioned in the narrative that our shrink was higher than last year. The place where it was — where it really impacted the business, was in Hollister, Betty’s women’s tops. And the point was, our shrink was so high that it affected the volume levels.

Now, this is significant in the business. We have, as of a week ago, converted the stores back to hard tag. But the most dreadful result of the shrink and converted to unit loss per store, it was staggering, was a loss in volume. I think that that has been a significant impact on the business. I think that we can do better than we’ve done for all the reasons that I have mentioned and I think we would. I would not expect wild increases on a comp basis in this business on an ongoing basis. But it’s not necessary to continue to run a highly profitable business.

And the point of our business is our consistency. I really have to say that. We had a lot of factors affect us fourth quarter. We did not alter how we ran the business and we will not. Don’t expect us to. We’ll continue to invest in better product, better stores, better people, to continue this great consistency. Good question. Thanks.

Operator

We’ll go next to Jeff Black, Lehman Brothers.

Jennifer Black - Jennifer Black Associates — Analyst

Yes, thanks. Question for Mike Jeffries. I noticed that kids is getting a significant expansion this year. I’m just wondering if you’re seeing anything different or what you’re seeing different in that business that we didn’t see the last couple of years? And really does it suggest you’re looking at a higher store target for the little A stores? Thanks.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

The answer is yes, we had not been aggressively expanding kids and with the success in kids over the last 1.5 year or two years, it clearly opened up more store locations than we had been contemplating before. We think that we can take that brand to about 250 locations. And we’re embarked upon doing that at this point. Thanks.

Operator

We’ll go next to Margaret Mager, Goldman Sachs.

Margaret Mager - Goldman Sachs — Analyst

Congratulations on a great year. Fantastic. I don’t think most people would have thought could you have done that at the beginning of ‘06. But I wanted to ask about how you managed the inventory. Kramer was just commenting how proud you are that you managed through the fourth quarter, despite the weather to come out with just a very slight increase in the markdown rate and a very good position on the inventory. How are

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

you doing that? And what role do factory outlet stores play, if it’s meaningful at all? And then secondly, could you talk about your sort of non-apparel categories, intimates, accessories, footwear, personal care, how important were they in 4Q and ‘06? And what’s the outlook on those categories at Abercrombie and Hollister? And then gift cards, was it meaningful this season? And just curious, Tokyo, will that open in ‘07? Thanks.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Okay. So, we can — I’ll kick off the inventory. I think what we had demonstrated over time is that we are very good as a Company in flowing merchandise in relation to demand. We are very nimble in that regard. And the factory outlet, the outlet stores, which we don’t have many of are very — play a very insignificant role. We use those for quality — those stores totally for quality problems and we liquidate inventory within our own stores. But it’s — I think if you look historically at our business, one of the key factors in maintaining and growing the gross margin rate that we have over the years has been our ability to flow merchandise essentially, efficiently into the stores. Kramer, would you like to comment on that?

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

Absolutely. As Mike indicated, we are constantly assessing. And our ability in terms of our quickness to market, and our ability to pull and flip triggers with regards to our inventory allows us to be very, very nimble with regards to what we’re reading out there in terms of sales.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Those of you who know me know that I’m pretty involved in that process. In terms of the accessory classification, we grew the accessory business at a greater rate than the total business. We had a good business in sleepwear but it’s not a major business. We had a good business in totes, footwear is not a business that we’re in except for flip-flops and that’s not a fourth quarter business. But it did grow at a better rate than the Company and I anticipate it doing so in the future.

We’re committed to growing that business. If you’re including personal care fragrance as a part of that, that business continues to grow as a percentage of our business, which I think is just a testimony to the strength of our brands. And we’re excited about how that business continues to grow and the profitability of that business. That business is like printing money. We like it very much. Do you want to talk about the gift cards? And I’ll talk about Tokyo.

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

Gift cards, the answer to this question depends on what your definition of meaningful is. Obviously, we love the gift card business. It was up this year over last year in terms of our average store and in terms of total dollars. But I would say that the increase was very small. It was in the single digits.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Okay. Tokyo, and then I want to circle back to one for a second. Tokyo, we will not open this year. We’re actively looking for locations at this point in Tokyo for Abercrombie & Fitch and Hollister. I will be there next week but we are still in the looking stage. That is a very, very slow market in terms of finding locations.

To go back to the inventory flow for one, I just want to add this. Not only were we able to flow inventory in relation to demand, but I think those of you who were looking at the stores saw how we converted to spring. In a time where we were plagued by warm weather pre-Christmas, we were in a spring mode as of Christmas eve, more aggressively than we’ve ever been. And it — that’s a testimony to our ability to flow the right inventory. Thank you for that question, Margaret.

Operator

[OPERATOR INSTRUCTIONS] We’ll go next to Dana Telsey, Telsey Advisory Group.

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

Dana Telsey - Telsey Advisory Group — Analyst

Just want to follow up. Given that you’ve now had experience launching many new concepts, with this Concept 5 that you’re launching, given what you’ve learned from other new concept launches; how will the launch of Concept 5 be different than others, whether it’s in rate of expansion, whether it’s in location, things like that? And Mike, minimum wage impact, what impact do you see from that this year? And both Mikes, in terms of investment spending, where are you relative to where you would like to be, either in store staffing or store maintenance? Thank you.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Okay. Let me address Concept 5. I think we’ve learned a ton about opening new businesses. And the first lesson is that we have not invested properly in the infrastructure of the business in terms of opening prior to opening. We are doing that with Concept 5. We are building a professional staff here, in the store organization. We are hitting the ground running with Concept 5. And I would say if you looked at the Hollister and the RUEHL launches, from my point of view, we look like amateurs in hindsight. So, I think just the amount of planning, structure and investment in human talent is a big difference. And I would hope it’s going to pay off.

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

I’ll take the part in terms of minimum wage. Pending no more legislation, I need to caveat this, we’re taking a look at the impact of minimum wage to the spring season to be $5.7 million and roughly around $6 million for the back half of the year. Again, that’s pending no new legislation. In terms of our investment spending in terms of staffing, I am very, very happy with where we’re at. In terms of staffing in our stores, again, we are constantly — this is an ongoing thing in terms of optimizing our staffing in our stores. I’m very happy with where we’re at.

In terms of maintenance for the stores, I think that we’re in a good strategic position. We know where we’re going with regards to maintaining our fleet. And I think that through Mike’s focused efforts on this over the last year, this is on the forefront and it is no longer an afterthought. As we grow, it’s even more and more important to make sure that our fleet is up to the standards that Mike has set.

In terms of staffing, here at home office, I think that we’re — I’ll speak to the administrative side. I’ll let Mike speak to the creative side of the business. But I think that we’re adequately staffed. Again, as we grow, we’re going to add some headcount. But I think we’re going to be more efficient. And we’re looking at areas where we can cut back on headcount due to efficiencies created by some technology. And when I say cut back, I mean really reallocation of resources. And I’ll let Mike speak to the creative headcount here at home office.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

I think that our budgeted headcount is appropriate. We have design openings in the business, which when we fill those openings I’m going to be very happy with where we are. We’ve made major investments in the creative aspect of our business over time. In design, actual design, also trend or what we would call trend research, testing and focus groups. But I believe that we are currently budgeted to achieve is the proper number.

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

Yes, let me just add to that. To just bring clarity to, I think, the staffing in the past two years, a large portion of that was due to previous underinvestment, both in terms of administrative and the creative side of the business. On average, we added about 400 head count per year. That’s going to drop by half in 2007. So, I think we feel much better where we’re at and it’s no longer, in a lot of cases, paying for past underinvestment. Albeit there is a little bit of that.

Operator

We’ll go next to Barbara Wyckoff, Buckingham Research.

Barbara Wyckoff - Buckingham Research — Analyst

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Final Transcript

Feb. 21. 2007 / 4:30PM ET, ANF — Q4 2006 Abercrombie & Fitch Co. Earnings Conference Call

Thanks for the insight into new initiatives and the thought process behind those initiatives. And I’d add my congratulations on the annual performance. I’ll ask only one question. Can you talk about where Hollister operating margins came in versus the core A&F in 2006? And can you talk about where kids is in sort of the scheme of things also?

Mike Kramer - Abercrombie & Fitch Co. — CFO, PAO and SVP

I’ll speak to that. Mike can add on to that. We’ve not really indicated our operating margin by brand. What we’ve indicated is, is that they’re relatively consistent across the chain or in the family of brands.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

And we work for the same kind of model from merchandise point of view in terms of IMU markdown across the business. We look for parity and we achieve it. But thanks, Barbara.

Tom Lennox - Abercrombie & Fitch Co. — VP Corporate Communications

Is that it.

Operator

Ladies and gentlemen, this conclude’s today’s conference. We appreciate your participation. You may disconnect.

Mike Jeffries - Abercrombie & Fitch Co. — Chairman and CEO

Thank you.

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