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): May 25, 2017

ABERCROMBIE & FITCH CO.

(Exact name of registrant as specified in its charter)

Delaware	1-12107	31-1469076
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		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))

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

Emerging growth company ☐

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

Item 2.02. Results of Operations and Financial Condition.

On May 25, 2017, Abercrombie & Fitch Co. (the “Company”) issued a news release (the “Release”) reporting the Company's unaudited financial results for the first quarter ended April 29, 2017. A copy of the Release is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

In conjunction with the Release, the Company also made available additional unaudited quarterly financial information along with additional financial information for the fiscal years ended January 28, 2017, January 30, 2016, January 31, 2015 and February 1, 2014. The additional financial information is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

In conjunction with the Release, the Company also made available an investor presentation of results for the first quarter ended April 29, 2017. The presentation, which is available under the “Investor Presentations” tab in the “Investors” section of the Company's website, located at www.abercrombie.com, is furnished as Exhibit 99.3 to this Current Report on Form 8-K and is incorporated herein by reference.

The Company's management conducted a conference call on May 25, 2017 to review the Company's financial results for the first quarter ended April 29, 2017. A copy of the transcript of the conference call is furnished as Exhibit 99.4 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(a) through (c) Not applicable

(d) Exhibits:

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

Exhibit No.	Description
99.1	News release issued by Abercrombie & Fitch Co. on May 25, 2017
99.2	Additional unaudited quarterly and fiscal year financial information
99.3	Investor presentation of results for first quarter ended April 29, 2017
99.4	Transcript of conference call held by management of Abercrombie & Fitch Co. on May 25, 2017

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: May 30, 2017	By:	/s/ Joanne C. Crevoiserat
		Joanne C. Crevoiserat
		Executive Vice President, Chief Operating Officer and Chief Financial Officer

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	News release issued by Abercrombie & Fitch Co. on May 25, 2017
99.2	Additional unaudited quarterly and fiscal year financial information
99.3	Investor presentation of results for first quarter ended April 29, 2017
99.4	Transcript of conference call held by management of Abercrombie & Fitch Co. on May 25, 2017

EX-99.1

ABERCROMBIE & FITCH CO. REPORTS FIRST QUARTER RESULTS

Progress on strategic initiatives; 3% net sales growth in Hollister and overall net sales down 4% in an intense promotional environment

New Albany, Ohio, May 25, 2017: Abercrombie & Fitch Co. (NYSE: ANF) today reported a net loss per diluted share of $0.91 for the first quarter ended April 29, 2017.

The net loss per diluted share for the first quarter of fiscal 2017 included the following tax impacts:

• a non-cash income tax charge of $0.14 per diluted share related to a change in share-based compensation accounting standards, as previously announced;

• an adverse impact of approximately $0.05 per diluted share related to a lower than expected core tax rate, which is sensitive at lower levels of full year earnings

Last year, the company reported a net loss per diluted share of $0.59 for the first quarter ended April 30, 2016.

In addition, the company reported an operating loss of $69.9 million for the first quarter, which included the adverse impact from year-over-year changes in foreign currency exchange rates of approximately $5.3 million, compared to an operating loss of $54.9 million last year.

Fran Horowitz, Chief Executive Officer, said:

"We are encouraged by our progress across all brands, particularly in March and April as a whole, in an aggressively promotional environment. We are pleased with the performance of our largest brand, Hollister, as our strategic initiatives continue to deliver. Abercrombie comparable sales were in line with our expectations as we continue to apply the learnings from Hollister's successes. Our focus on closeness to our customers enables us to adapt and execute better and faster, ensuring more consistent delivery of the right product at the right time, with the right brand voice, and through the right brand experience.

While we anticipate the second quarter environment to remain promotional, we expect results to improve further in the second half of the year, as we see returns from our strategic investments in marketing and omnichannel. The international roll-out of full omnichannel capabilities, coupled with insights from multiple customer touchpoints online and in-store, including our rapidly growing loyalty programs, means we are better equipped to anticipate our customers’ needs whenever, wherever and however they choose to engage with our brands. We continue to tightly manage costs and inventory, and focus on execution to position our business for sustainable growth."

First Quarter Sales Results

Net sales for the first quarter of $661.1 million were down4% over last year, with comparable sales for the first quarter down3%.

Fiscal 2017 Comparable Sales Summary (1)
Brand		Geography
	First Quarter		First Quarter
Hollister(2)	3%	United States	(3)%
Abercrombie(3)	(10)%	International	(2)%
Total Company	(3)%	Total Company	(3)%

⁽¹⁾ Comparable sales are calculated on a constant currency basis.

⁽²⁾ Hollister includes the Hollister and Gilly Hicks brands.

⁽³⁾ Abercrombie includes the Abercrombie & Fitch and abercrombie kids brands.

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By brand, net sales for the first quarter increased3% to $374.7 million for Hollister and decreased11% to $286.4 million for Abercrombie versus last year.

By geography, net sales for the first quarter decreased4% to $409.1 million in the U.S. and decreased3% to $252.0 million in international markets versus last year.

Direct-to-consumer sales grew to approximately 27% of total company net sales for the first quarter, compared to approximately 24% of total company net sales last year.

Additional First Quarter Results Commentary

The gross profit rate for the first quarter was 60.3%, 130 basis points lower than last year on a constant currency basis, primarily due to lower average unit retail, partially offset by lower average unit cost.

Stores and distribution expense for the first quarter was $359.9 million, down from $369.1 million last year, primarily due to expense reduction efforts and the realization of savings on lower sales, partially offset by higher direct-to-consumer expense.

Marketing, general and administrative expense for the first quarter was $109.9 million, down from $114.4 million last year, primarily due to expense reduction efforts, partially offset by higher marketing expense.

Asset impairment charges for the first quarter were $0.7 million.

Net other operating income for the first quarter was $1.7 million, compared to $2.9 million last year.

Operating loss for the first quarter was $69.9 million, compared to $54.9 million last year.

The effective tax rate for the first quarter was 18%, reflecting a 31% core tax rate, which remains highly sensitive at lower levels of full year pre-tax earnings, and a discrete non-cash income tax charge of $9.3 million related to a change in share-based compensation accounting standards.

Net loss attributable to Abercrombie & Fitch Co. for the first quarter was $61.7 million, compared to $39.6 million last year.

The company ended the quarter with $421.4 million in cash and cash equivalents, and gross borrowings under the company's term loan agreement of $268.3 million, compared to $491.0 million in cash and cash equivalents and $293.3 million in borrowings last year.

The company ended the quarter with $398.8 million in inventory, a decrease of 8% versus last year.

Other Developments

As previously announced, on May 19, 2017 the Board of Directors declared a quarterly cash dividend of $0.20 per share on the Class A Common Stock of Abercrombie & Fitch Co., payable on June 12, 2017 to stockholders of record at the close of business on June 2, 2017.

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Outlook

For fiscal 2017, the company expects:

• Comparable sales to remain challenging in the second quarter, with trend improvement in the second half of the year

• Continued adverse impact from foreign currency on sales and operating income

• A gross margin rate down slightly to last year's adjusted non-GAAP rate of 61.0%, with continued pressure in the second quarter

• Operating expense to be down at least 3% from last year's adjusted non-GAAP operating expense of $2.025 billion, with approximately 65% of the full year reduction to occur in the second half of the year

• Net income attributable to noncontrolling interests of approximately $4 million

• A weighted average diluted share count of approximately 68 million shares, excluding the effect of potential share buybacks

On a full year basis, the company now expects the effective tax rate to reflect a core tax rate in the low 30s, which remains highly sensitive at lower levels of pre-tax earnings. Additionally, the company expects discrete non-cash income tax charges for the full year of approximately $11 million primarily related to a change in share-based compensation accounting standards.

The company expects capital expenditures to be approximately $100 million for the full year.

The company plans to open seven full-price stores in fiscal 2017, primarily in the U.S. The company also plans to open two new outlet stores. In addition, the company anticipates closing approximately 60 stores in the U.S. during the fiscal year through natural lease expirations.

An investor presentation of first quarter results will be available in the "Investors" section of the company's website at www.abercrombie.com at approximately 8:00 AM, Eastern Daylight Time, today.

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

A&F cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this Press Release or made by management or spokespeople of A&F involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the company's control. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements. The following factors, disclosed in "ITEM 1A. RISK FACTORS" of A&F's Annual Report on Form 10-K for the fiscal year ended January 28, 2017,in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results for Fiscal 2017 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 global economic and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, could have a material adverse effect on our business, results of operations and liquidity; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately could adversely impact our sales levels and profitability; our market share may be negatively impacted by increasing competition and pricing pressures from companies with brands or merchandise competitive with ours; direct-to-consumer sales channels are a significant component of our growth strategy, and the failure to successfully develop our position in these channels could have an adverse impact on our results of operations; our ability to conduct business in international markets may be adversely affected by legal, regulatory, political and economic risks; our inability to successfully implement our strategic plans could have a negative impact on our growth and profitability; our failure to protect our reputation could have a material adverse effect on our brands; our business could suffer if our information technology systems are disrupted or cease to operate effectively; we may be exposed to risks and costs associated with cyber-attacks, credit card fraud and identity theft that would cause us to incur unexpected expenses and reputation loss; fluctuations in foreign currency exchange rates could adversely impact our financial condition and results of operations; changes in the cost, availability and quality of raw materials, labor, transportation and trade relations could cause manufacturing delays and increase our costs; 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 result in lost sales and could increase our costs; 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; we rely on the experience and skills of our senior executive officers, the loss of whom could have a material adverse effect on our business; our reliance on DCs makes us susceptible to disruptions or adverse conditions affecting our supply chain; our litigation exposure could have a material adverse effect on our financial condition and results of operations; our inability or failure to adequately protect our trademarks could have a negative impact on our brand image and limit our ability to penetrate new markets; fluctuations in our tax obligations and effective tax rate may result in volatility in our operating results; extreme weather conditions and the seasonal nature of our business may cause net sales to fluctuate

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and negatively impact our results of operations; our facilities, systems and stores, as well as the facilities and systems of our vendors and manufacturers, are vulnerable to natural disasters, pandemic disease and other unexpected events, any of which could result in an interruption to our business and adversely affect our operating results; the impact of war or acts of terrorism could have a material adverse effect on our operating results and financial condition; changes in the regulatory or compliance landscape could adversely affect our business and results of operations; our Asset-Based Revolving Credit Agreement and our Term Loan Agreement include restrictive covenants that limit our flexibility in operating our business; and, compliance with changing regulations and standards for accounting, corporate governance and public disclosure could adversely affect our business, results of operations and reported financial results.

About Abercrombie & Fitch Co.

Abercrombie & Fitch Co. (NYSE: ANF) is a leading, global specialty retailer of apparel and accessories for Men, Women and Kids through three renowned brands.  The iconic Abercrombie & Fitch brand embodies American casual luxury.  With an updated attitude that reflects the confidence of today’s 20+ consumer, Abercrombie & Fitch remains true to its 125-year heritage of creating expertly crafted products with an effortless, American style.  The Hollister brand epitomizes the liberating and carefree spirit of the endless California summer for the teen market.  abercrombie kids creates smart, playful apparel for children ages 3-14, celebrating the wide-eyed wonder of childhood. The brands share a commitment to offering products of enduring quality and exceptional comfort that allow consumers around the world to express their own individuality and style.

The Company operates approximately 900 stores under these brands across North America, Europe, Asia and the Middle East, as well as the e-commerce sites www.abercrombie.com and www.hollisterco.com.

Today at 8:30 AM, Eastern Daylight Time, the company will conduct a conference call. Management will discuss the company's performance and its plans for the future and will accept questions from participants. To listen to the conference call, dial (877) 857-6176 and ask for the Abercrombie & Fitch Quarterly Call or go to www.abercrombie.com. The international call-in number is (719) 325-4879. This call will be recorded and made available by dialing the replay number (888) 203-1112 or the international number (719) 457-0820 followed by the conference ID number 1371111or through www.abercrombie.com.

Investor Contact:	Media Contact:
Brian Logan	Michael Scheiner
Abercrombie & Fitch	Abercrombie & Fitch
(614) 283-6877	(614) 283-6192
Investor_Relations@abercrombie.com	Public_Relations@abercrombie.com

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Abercrombie & Fitch Co.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
	Thirteen Weeks Ended					Thirteen Weeks Ended
	April 29, 2017			% of Net Sales		April 30, 2016			% of Net Sales
Net sales	$	661,099		100.0	%	$	685,483		100.0	%
Cost of sales, exclusive of depreciation and amortization	262,174			39.7	%	259,762			37.9	%
Gross profit	398,925			60.3	%	425,721			62.1	%
Stores and distribution expense	359,929			54.4	%	369,118			53.8	%
Marketing, general and administrative expense	109,893			16.6	%	114,447			16.7	%
Asset impairment	730			0.1	%	—			—	%
Other operating income, net	(1,686		)	(0.3	)%	(2,933		)	(0.4	)%
Operating loss	(69,941		)	(10.6	)%	(54,911		)	(8.0	)%
Interest expense, net	4,120			0.6	%	4,506			0.7	%
Loss before taxes	(74,061		)	(11.2	)%	(59,417		)	(8.7	)%
Tax benefit	(13,052		)	(2.0	)%	(20,787		)	(3.0	)%
Net loss	(61,009		)	(9.2	)%	(38,630		)	(5.6	)%
Less: Net income attributable to noncontrolling interests	691			0.1	%	957			0.1	%
Net loss attributable to Abercrombie & Fitch Co.	$	(61,700	)	(9.3	)%	$	(39,587	)	(5.8	)%
Net loss per share attributable to Abercrombie & Fitch Co.:
Basic	$	(0.91	)			$	(0.59	)
Diluted	$	(0.91	)			$	(0.59	)
Weighted-average shares outstanding:
Basic	68,073					67,625
Diluted	68,073					67,625

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Abercrombie & Fitch Co.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
	April 29, 2017		January 28, 2017		April 30, 2016
ASSETS
Current assets:
Cash and equivalents	$	421,441	$	547,189	$	490,975
Receivables	90,346		93,384		61,690
Inventories, net	398,750		399,795		435,663
Other current assets	91,565		98,932		106,200
Total current assets	1,002,102		1,139,300		1,094,528
Property and equipment, net	806,057		824,738		886,346
Other assets	349,806		331,719		363,308
TOTAL ASSETS	$	2,157,965	$	2,295,757	$	2,344,182
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	147,531	$	187,017	$	157,024
Accrued expenses	248,915		273,044		294,303
Short-term portion of deferred lease credits	19,522		20,076		23,298
Income taxes payable	5,264		5,863		2,287
Short-term portion of borrowings, net	—		—		733
Total current liabilities	421,232		486,000		477,645
Long-term liabilities:
Long-term portion of deferred lease credits	$	75,886	$	76,321	$	87,492
Long-term portion of borrowings, net	263,353		262,992		285,882
Leasehold financing obligations	47,120		46,397		50,733
Other liabilities	169,588		172,008		187,635
Total long-term liabilities	555,947		557,718		611,742
Total Abercrombie & Fitch Co. stockholders' equity	1,171,972		1,243,435		1,249,656
Noncontrolling interests	8,814		8,604		5,139
Total stockholders' equity	1,180,786		1,252,039		1,254,795
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,157,965	$	2,295,757	$	2,344,182

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REPORTING AND USE OF GAAP AND NON-GAAP MEASURES

The company believes that the non-GAAP financial measures presented in this news release are useful to investors as they supplement investors' understanding of underlying business trends, comparability across periods and provide the ability to measure the company’s operating performance. Management used these non-GAAP financial measures during the periods presented to assess the company's performance, to make decisions about how to allocate resources and to develop expectations for future operating performance. The company provides certain financial information on a constant currency basis. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share effect from foreign currency is calculated using a 35% tax rate. In addition, the company provides comparable sales which is defined as the aggregate of: (1) year-over-year sales for stores that have been open as the same brand at least one year and whose square footage has not been expanded or reduced by more than 20% within the past year, with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of currency fluctuation, and (2) year-over-year direct-to-consumer sales with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of currency fluctuation. Non-GAAP financial measures should be used supplemental to, not as an alternative to, the company's GAAP financial results, and may not be the same as similar measures presented by other companies.

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Abercrombie & Fitch Co.

Store Count Activity

Thirteen Weeks Ended April 29, 2017
	Abercrombie (1)(2)				Hollister (3)			Total
	United States		International		United States		International	United States		International
January 28, 2017	311		44		398		145	709		189
New	2		—		1		—	3		—
Closed	(5	)	(1	)	(2	)	—	(7	)	(1	)
April 29, 2017	308		43		397		145	705		188

⁽¹⁾ Includes Abercrombie & Fitch and abercrombie kids brands.

⁽²⁾ Excludes three international franchise stores as of April 29, 2017 and excludes one international franchise store as of January 28, 2017.

⁽³⁾ Excludes five international franchise stores as of April 29, 2017 and excludes three international franchise stores as of January 28, 2017.

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EX-99.2

Abercrombie & Fitch Co.
Financial Information
(Unaudited)
(in thousands, except per share data and store data)
										Fiscal 2016															Fiscal 2017
	2013			2014			2015			Q1			Q2			Q3			Q4			2016			Q1
Net sales	$	4,116,897		$	3,744,030		$	3,518,680		$	685,483		$	783,160		$	821,734		$	1,036,363		$	3,326,740		$	661,099
Cost of sales, exclusive of depreciation and amortization	1,541,462			1,430,460			1,361,137			259,762			306,053			310,995			421,362			1,298,172			262,174
Gross profit	2,575,435			2,313,570			2,157,543			425,721			477,107			510,739			615,001			2,028,568			398,925
Stores and distribution expense	1,907,687			1,703,051			1,604,214			369,118			382,917			389,609			439,816			1,578,460			359,929
Marketing, general and administrative expense	481,784			458,820			470,321			114,447			111,719			105,307			121,729			453,202			109,893
Restructuring charge (benefit)	81,500			8,431			(1,598		)	—			—			—			—			—			—
Asset impairment	46,715			44,988			18,209			—			6,356			—			1,574			7,930			730
Other operating income, net	(23,074		)	(15,239		)	(6,441		)	(2,933		)	(13,080		)	(822		)	(9,377		)	(26,212		)	(1,686		)
Operating income (loss)	80,823			113,519			72,838			(54,911		)	(10,805		)	19,645			61,259			15,188			(69,941		)
Interest expense, net	7,546			14,365			18,248			4,506			4,741			4,609			4,810			18,666			4,120
Income (loss) before taxes	73,277			99,154			54,590			(59,417		)	(15,546		)	15,036			56,449			(3,478		)	(74,061		)
Tax expense (benefit)	18,649			47,333			16,031			(20,787		)	(3,515		)	6,762			6,344			(11,196		)	(13,052		)
Net income (loss)	54,628			51,821			38,559			(38,630		)	(12,031		)	8,274			50,105			7,718			(61,009		)
Less: Net income attributable to noncontrolling interests	—			—			2,983			957			1,098			393			1,314			3,762			691
Net income (loss) attributable to Abercrombie & Fitch Co.	$	54,628		$	51,821		$	35,576		$	(39,587	)	$	(13,129	)	$	7,881		$	48,791		$	3,956		$	(61,700	)

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										Fiscal 2016															Fiscal 2017
	2013			2014			2015			Q1			Q2			Q3			Q4			2016			Q1
Net income (loss) per share attributable to Abercrombie & Fitch Co.:
Basic	$	0.71		$	0.72		$	0.52		$	(0.59	)	$	(0.19	)	$	0.12		$	0.72		$	0.06		$	(0.91	)
Diluted	$	0.69		$	0.71		$	0.51		$	(0.59	)	$	(0.19	)	$	0.12		$	0.71		$	0.06		$	(0.91	)
Weighted-average shares outstanding:
Basic	77,157			71,785			68,880			67,625			67,944			67,975			67,970			67,878			68,073
Diluted	78,666			72,937			69,417			67,625			67,944			68,277			68,299			68,284			68,073
Abercrombie comparable sales (1)				(5		)%	(6		)%	(8		)%	(7		)%	(14		)%	(13		)%	(11		)%	(10		)%
Hollister comparable sales (1)	(14		)%	(10		)%	—		%	—		%	(2		)%	—		%	1		%	—		%	3		%
Comparable sales (2)	(11		)%	(8		)%	(3		)%	(4		)%	(4		)%	(6		)%	(5		)%	(5		)%	(3		)%
Shares outstanding	76,402			69,352			67,348			67,605			67,666			67,683			67,758			67,758			68,012
Number of stores - end of period (3)	1,006			969			932			925			926			930			898			898			893
Gross square feet - end of period	7,736			7,517			7,292			7,209			7,209			7,219			7,007			7,007			6,939
(1) Abercrombie includes the Company's Abercrombie & Fitch and abercrombie kids brands. Hollister includes the Company's Hollister and Gilly Hicks brands.
(2) Comparable sales are calculated on a constant currency basis.
(3)Prior period store counts have been restated to count multi-brand outlet stores as a single store.

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EX-99.3

INVESTOR PRESENTATION 2017 FIRST QUARTER

2 SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 A&F cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this presentation or made by management or spokespeople of A&F involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the company's control. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we assume no obligation to publicly update or revise our forward-looking statements. The factors disclosed in "ITEM 1A. RISK FACTORS" of A&F's Annual Report on Form 10-K for the fiscal year ended January 28, 2017 in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results for the 2017 fiscal year and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this presentation or otherwise made by management. OTHER INFORMATION The following presentation includes certain adjusted non-GAAP financial measures. Additional details about non-GAAP financial measures are included in the news release issued by the company on May 25, 2017, which is available in the "Investors" section of the company's website, located at www.abercrombie.com. As used in the presentation, "GAAP" refers to accounting principles generally accepted in the United States of America. All dollar and share amounts are in 000’s unless otherwise stated. Sub-totals and totals may not foot due to rounding. Net loss and net loss per share financial measures included herein are attributable to Abercrombie & Fitch Co., excluding net income attributable to noncontrolling interests.

3 Q1 P&L SUMMARY 2017 % OF NET SALES 2016 % OF NET SALES NET SALES $661,099 100.0% $685,483 100.0% GROSS PROFIT 398,925 60.3% 425,721 62.1% OPERATING EXPENSE 470,552 71.2% 483,565 70.5% OTHER OPERATING INCOME, NET (1,686) (0.3)% (2,933) (0.4)% OPERATING LOSS (69,941) (10.6)% (54,911) (8.0)% INTEREST EXPENSE, NET 4,120 0.6% 4,506 0.7% LOSS BEFORE TAXES (74,061) (11.2)% (59,417) (8.7)% TAX BENEFIT (13,052) (2.0)% (20,787) (3.0)% NET LOSS $(61,700) (9.3)% $(39,587) (5.8)% NET LOSS PER SHARE BASIC $(0.91) $(0.59) DILUTED $(0.91) $(0.59) WEIGHTED-AVERAGE SHARES OUTSTANDING BASIC 68,073 67,625 DILUTED 68,073 67,625

4 * Hollister includes the company's Hollister and Gilly Hicks brands. Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. (1) Comparable sales are calculated on a constant currency basis. Sales include store and DTC sales. Q1 2017 SALES* INTERNATIONAL 38.1% UNITED STATES 61.9% HOLLISTER 56.7% ABERCROMBIE 43.3% Q1 SALES MIX BRAN D GEOGRAPH Y COMPARABLE SALES (1) Q1 TOTAL COMPANY (3)% BRAND: HOLLISTER 3% ABERCROMBIE (10)% GEOGRAPHY: UNITED STATES (3)% INTERNATIONAL (2)%

5 * Comparable sales are calculated on a constant currency basis. Sales include store and DTC sales. (1) Hollister includes the company's Hollister and Gilly Hicks brands. (1) Abercrombie includes the company's Abercrombie & Fitch and abercrombie kids brands. COMPARABLE SALES TREND BY BRAND* HOLLISTER ABERCROMBIE TOTAL COMPANY Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 0% (2)% 0% 1% 3% (8)% (7)% (14)% (13)% (10)% (4)% (4)% (6)% (5)% (3)% 2% (4)% (6)% (2)% 0% (12)% (14)% COMPARABLE SALE S (1) (10)% (8)% 4% (2)

6 Q1 OPERATING EXPENSE (1) Includes rent, other landlord charges, utilities, depreciation and other occupancy expense. (2) Includes selling payroll, store management and support, other store expense, direct-to-consumer expense, and distribution center costs. 2017 % OF NET SALES 2016 % OF NET SALES STORE OCCUPANCY (1) $166,822 25.2% $174,771 25.5% ALL OTHER (2) 193,107 29.2% 194,347 28.4% STORES AND DISTRIBUTION 359,929 54.4% 369,118 53.8% MARKETING, GENERAL & ADMINISTRATIVE 109,893 16.6% 114,447 16.7% ASSET IMPAIRMENT 730 0.1% — —% OTHER OPERATING INCOME, NET (1,686) (0.3)% (2,933) (0.4)% TOTAL $468,866 70.9% $480,632 70.1%

7 DILUTED EPS WALK (1) The effect from foreign currency, calculated on a constant currency basis, is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share effect from foreign currency is calculated using a 35% tax rate. (2) The effect is calculated by applying the year-over-year change in the company's effective tax rate, excluding the impact of the change in share-based compensation accounting standards, to the company's current quarter loss before taxes. Q1 2016 $(0.59) CORE OPERATIONS (0.08) FOREIGN CURRENCY EXCHANGE RATE IMPACT (1) (0.05) CHANGE IN SHARE-BASED COMPENSATION ACCOUNTING STANDARDS (0.14) TAX RATE (2) (0.05) Q1 2017 $(0.91)

8 Q1 STORE OPENINGS BRAND CENTER CITY DATE DOMESTI C A&F Polaris Fashion Place Columbus, OH 2/17/17 Hollister Ka Makana Ali'i West Oahu, HI 3/17/17 OUTLE T A&F Outlet Shoppes at Laredo Laredo, TX 3/16/17

9 Q1 STORE COUNT ACTIVITY (1) 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 three international franchise store as of April 29, 2017 and excludes one international franchise store as of January 28, 2017. (2) Excludes five international franchise stores as of April 29, 2017 and excludes three international franchise stores as of January 28, 2017. (3) Includes 45 stores in Asia and 8 stores in the Middle East. ALL BRANDS TOTAL U.S. CANADA EUROPE REST OF WORLD (3) START OF Q1 2017 898 709 18 117 54 OPENINGS 3 3 — — — CLOSINGS (8) (7) — — (1) END OF Q1 2017 893 705 18 117 53 ABERCROMBIE (1) START OF Q1 2017 355 311 7 17 20 OPENINGS 2 2 — — — CLOSINGS (6) (5) — — (1) END OF Q1 2017 351 308 7 17 19 HOLLISTER (2) START OF Q1 2017 543 398 11 100 34 OPENINGS 1 1 — — — CLOSINGS (2) (2) — — — END OF Q1 2017 542 397 11 100 34

10 OUTLOOK FOR FISCAL 2017, THE COMPANY EXPECTS: • COMPARABLE SALES TO REMAIN CHALLENGING IN THE SECOND QUARTER, WITH TREND IMPROVEMENT IN THE SECOND HALF OF THE YEAR • CONTINUED ADVERSE IMPACT FROM FOREIGN CURRENCY ON SALES AND OPERATING INCOME • A GROSS MARGIN RATE DOWN SLIGHTLY TO LAST YEAR'S ADJUSTED NON-GAAP RATE OF 61.0%, WITH CONTINUED PRESSURE IN THE SECOND QUARTER • OPERATING EXPENSE TO BE DOWN AT LEAST 3% FROM LAST YEAR'S ADJUSTED NON-GAAP OPERATING EXPENSE OF $2.025 BILLION, WITH APPROXIMATELY 65% OF THE FULL YEAR REDUCTION TO OCCUR IN THE SECOND HALF OF THE YEAR • NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS OF APPROXIMATELY $4 MILLION • A WEIGHTED AVERAGE DILUTED SHARE COUNT OF APPROXIMATELY 68 MILLION SHARES, EXCLUDING THE EFFECT OF POTENTIAL SHARE BUYBACKS THE EFFECTIVE TAX RATE TO REFLECT A CORE TAX RATE IN THE LOW 30S, WHICH REMAINS HIGHLY SENSITIVE AT LOWER LEVELS OF PRE-TAX EARNINGS. ADDITIONALLY, THE COMPANY EXPECTS DISCRETE NON-CASH INCOME TAX CHARGES FOR THE FULL YEAR OF APPROXIMATELY $11 MILLION PRIMARILY RELATED TO A CHANGE IN SHARE-BASED COMPENSATION ACCOUNTING STANDARDS. FULL YEAR CAPITAL EXPENDITURES TO BE APPROXIMATELY $100 MILLION

EX-99.4

THOMSON REUTERS STREETEVENTS EDITED TRANSCRIPT ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call EVENT DATE/TIME: MAY 25, 2017 / 12:30PM GMT OVERVIEW: Co. reported 1Q17 net sales of $661m, operating loss of $70m and net loss per diluted share of $0.91. THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

C O R P O R A T E P A R T I C I P A N T S Brian P. Logan Abercrombie & Fitch Co. - VP of Finance and Controller Fran Horowitz Abercrombie & Fitch Co. - CEO and Director Joanne C. Crevoiserat Abercrombie & Fitch Co. - CFO, COO and EVP of Finance C O N F E R E N C E C A L L P A R T I C I P A N T S Courtney Ann Willson Cowen and Company, LLC, Research Division - Associate Douglas Drummond Wolfe Research, LLC - Research Analyst Janet Kloppenburg Julie Kim Kate Bridget Fitzsimons RBC Capital Markets, LLC, Research Division - Associate VP Lauren Elizabeth Cassel Morgan Stanley, Research Division - Research Associate Luke Chamberlain Hatton FBR Capital Markets & Co., Research Division - Associate Mark R. Altschwager Robert W. Baird & Co. Incorporated, Research Division - Senior Research Analyst Marni Shapiro The Retail Tracker - Co-Founder Samantha M. Lanman Oppenheimer & Co. Inc., Research Division - Associate Stephen Albert BofA Merrill Lynch, Research Division - Research Analyst Tiffany Ann Kanaga Deutsche Bank AG, Research Division - Research Associate P R E S E N T A T I O N Operator Good day, everyone, and welcome to the Abercrombie & Fitch First Quarter Fiscal Year 2017 Earnings Call. Today's conference is being recorded. (Operator Instructions) Now at this time, I'd like to turn the conference over to Brian Logan. Mr. Logan, please go ahead. Brian P. Logan - Abercrombie & Fitch Co. - VP of Finance and Controller Thank you. Good morning, and welcome to our first quarter earnings call. Earlier this morning, we released our first quarter sales and earnings, income statement, balance sheet, store opening and closing summary and an updated financial history. Please feel free to reference these materials, which are available on our website. Also available on our website is an investor presentation, which we will be referring to in our comments during this call. Joining me today are Fran Horowitz, Chief Executive Officer; and Joanne Crevoiserat, Chief Operating Officer and Chief Financial Officer. 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. In addition, we will be referring to certain non-GAAP financial member -- measures during the call. Additional details are included in the release issued earlier this morning. 2 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

With that, I hand the call over to Fran, who will provide color around current performance and an update on our strategic initiatives. Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director Thank you, Brian, and good morning, everyone. Our overall results for the first quarter were largely in line with our plans. A continued challenging promotional environment, saw a tougher-than-expected February, a strong Easter peak led to an improved March and April as a whole. Progress has been made, although we are far from satisfied. There's still much work to be done. And we continue to focus on aggressive execution of our plans, in what we expect will be a continued promotional and generally challenging retail environment in the second quarter. Our largest brand, Hollister, built some momentum from its now solid base, to deliver a 3% increase in comp sales, as we leverage customer insights from our loyalty program and in-store research to engage with and respond to customers. At Abercrombie, top line results were in line with our expectations. We continue to apply learnings from the Hollister evolution and improve fundamental processes around assortment architecture and planning, and work through the tail of the assortment architecture issues we identified last quarter and referenced on our last call. The tail has taken a little longer to work through than we would have liked, and there will be some residual carryover into the second quarter that will weigh on gross margin. So we'd still characterize Abercrombie as a work in progress. The foundations for its revitalization are being put in place. With strong leadership and the brand's new positioning and purpose work almost complete, we're optimistic about the prospects for the storied brand, which has outfitted presidents, pioneers, adventurers and explorers, and celebrates its 125th birthday later this year. Before we turn to our brand level progress this quarter, I'll provide an overview on the progress we're making across the business as a whole, underpinning our continuing confidence in our strategy and the team's ability to execute against it. Store traffic headwinds and a promotional environment remains an industry challenge, so we remain focused on inspiring customers, innovating and developing leaders to strengthen our brands and adapt to the evolving landscape. We've previously spoken about meeting our customers whenever, wherever and however they choose to engage with our brands. That means omnichannel must truly be seamless and frictionless, allowing customers to start in one medium, migrate to another and engage with the brand in complete sales across platforms and locations. Understanding a fundamental shift in retail was underway, we were early to invest in building our direct-to-consumer infrastructure. It is paying off with DTC now accounting for 27% of sales, up from 24% in the prior year period. We have now rounded out our omnichannel capabilities. We have fully integrated abercrombie and kids websites. We're optimized for mobile, including apps, payment and tracking across multiple social media platforms. We offer popins and in-store reservation and online in-store returns. And we have a fast-growing, highly engaging loyalty programs. This full omnichannel offering has been successfully rolled out in the U.S., Canada and the U.K. across both brands. We are now planning to roll it out internationally, including local language app throughout the remainder of 2017. On a related note, Total Retail, in conjunction with Radial, recently conducted its first-ever ranking of 100 publicly traded retailers that have omnichannel capabilities. The survey showed Abercrombie & Fitch is in an excellent position, tied for fourth place overall. In a constantly evolving environment, we are confident we have invested in the right foundation and capabilities to allow us to stay ahead of the curve and to deliver the frictionless omnichannel experience that consumers demand. Loyalty programs have been a particularly important customer trust point for us, with successful rollouts across the Hollister and Abercrombie brands providing timely customer insights, driving customer engagement and a meaningfully higher average level of customer spend. It is clear to us there is an important relationship between our physical stores and our digital presence. The presence of the stores still acts as an important gateway to the brand, both as a physical store presence, but also as a local brand hub for online engagement. And the direct interplay between the two, such as order-in-store, popins and reserve in-store. This understanding shapes how we think about total store footprint to make broader regional perspective in our overall CapEx spending. Joanne will speak more on that in a moment. 3 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

Our experience has shown that we are able to create inviting spaces, often on smaller footprints that encourage brand engagement and product trial, and drive conversion. Our first A&F prototype store is demonstrating improved productivity on a smaller footprint. This is an approach we'll be extending to our prototype rollout this year. For example, we have one A&F location identified where we expect the prototype will be able to deliver similar or greater in-store sales and profit in less than half of the floor space than the store it's replacing. Still on the physical store side of things, we continue to work with partners with deep retail expertise that can act as our regional guides, partner and steward of our brand in growth markets. That includes partners such as Grupo Axo in Mexico and Majid Al Futtaim Fashion, or MAFF, in the Middle East. In the first quarter, MAFF opened 4 new stores under franchise in Qatar, and we look forward to further openings in the region with them during 2017. We also seek to build partnerships and collaboration wherever they can enhance our ability to engage with customers authentically and at scale, while maintaining the integrity of our brand. We have been early and enthusiastic adopters of social media to engage with our customers. Our close partnership with Snapchat and Instagram have given us access to alpha and beta programs. These have led to our Geofilters and initiatives being some of the most successful on those platforms, resulting in high levels of brand engagement and additional opportunities to drive engagement around specific points in the calendar, both traditional and nontraditional, which is Valentine's Day and April Fools' Day. We've struck an innovative content partnership with AwesomenessTV, specialists in mobile video content specifically designed to engage with our teen Hollister audience. This initial year-long partnership incorporates multiple experiential touch points, including music, concerts and opportunities for comprehensive, yet unobtrusive, product placement around a specially commissioned series called This is Summer. The series premiered last weekend on its YouTube channel, which has more than 5 million subscribers, and it is off to a strong start. During the quarter, we also launched the Hollister surf game designed on the Rovio gaming platform. Designed for mobile phone play, it's also accessible through our Instagram, Facebook and Snapchat assets. With more than 27 million impressions across the platform and significantly longer average viewing time, results far exceeded our expectations and Rovio's. These types of initiatives are important drivers of brand consideration and engagement, and speak to the multifaceted customer journey for our core teen Hollister demographic as well as our 20-something Abercrombie demographic. Our wholesale partnerships allow us to maintain brand control, provide a platform for expanding our reach in certain markets and explore their potential without having to make additional immediate physical infrastructure investments. In the first quarter, Hollister and Abercrombie products started to be offered through our partnership with leading e-commerce platform, Zalora. This move generated significant buzz in market and provides a platform for Zalora's more than 600 million customers across Southeast Asia to engage with our brands. Our ongoing process of learning continues to inform our people, processes and products. We can adapt and execute better and faster, ensuring more consistent delivery of the right product at the right time with the right brand voice and with the right brand experience. While the market remains challenging and the process of revitalizing an iconic brand is no simple task, we have the right people and processes in place to allow us to continue to make progress and be successful for the long term. Now turning to the specifics of how we did at a brand level. Our largest brand, Hollister, we characterized it as stabilized last quarter. We've now started to capitalize on that stability and deliver growth. We made top line progress, following a strong performance in our core categories of denim, fleece and outerwear, where we saw double-digit growth. We also set a record for the most jeans sold in any first quarter in the brand's history. Our emerging growth categories, which include intimates and swim, more than doubled. It's clear that our marketing strategies focused on these core and emerging growth categories and comprising a mix of in-store, email and social in driving meaningful improvement in engagement, conversion, and most importantly, sales. 4 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

We remain focused on staying close to our customers. In order to understand and adapt to their needs, the insights from our voice of customer and CRM programs continue to provide valuable insights. And our Club Cali loyalty program also has an important role to play. It continues to add about 250,000 members a month and ended the quarter with more than 5.7 million members. In addition to helping us understand customer preferences and trends, members spend on average significantly more than nonmembers. Our team is also active with testing in-store, which means we can respond swiftly and lean in when the real-time data points to an opportunity. For example, we were able to successfully chase about 30% orders, including a significant amount of swimwear to impact our spring season. As you'll recall, our customers' feedback were the driver to our relaunch of Gilly Hicks last quarter. After a phased product introduction in 2016, the product is now set in all stores around the world. We've seen continued positive reaction to its reintroduction and have a much better sense of its potential for growth. We plan to test this aggressively throughout the remainder of 2017 with dedicated space carve-outs being added to 5 domestic U.S. stores and 15 international stores. Now turning to Abercrombie. The brand performed as we expected in a tough promotional environment and with the team still working through the architecture and planning-related issue so called out last quarter. As I mentioned earlier, this was the key internal contributor to the pressure on gross margin in the first quarter. With increased depth of volume inventory investment in top 30 items and ongoing reduction in the number of SKUs, our assortment now has more focus. This process has taken somewhat longer than expected to work through, and the team continues to work methodically through the whole assortment. With more focus and balance with each new floorset, we are building foundations for sustainable long-term improvements. We saw our core focus categories increase as a percentage of total sales, with positive comps in sweaters and pants across genders. We also saw meaningful improvement in our target growth categories, such as swim and dresses, which outpaced overall growth. Similarly, the investments in architecture and assortment on the kids brand is paying off. Our closeness to the customer continues to serve us well in our revitalization journey. The multiple customer and business touch points online and in-store allow us to react and respond swiftly when we see an opportunity. Overall, our ability to respond to learnings and chase into new assortments enabled us to chase approximately 20% of orders. As the impact of the learnings take hold, we expect to be able to further improve the scale and efficacy of our chase ability. Our prototype store continues to deliver transferable scalable learnings and useful feedback through our various customer touch points and systems as well as direct customer feedback, and we look forward to the rollout of another 6 prototypes throughout the course of 2017, and continued learning and evolution through those experiences. Our loyalty program, the A&F Club, had a strong start to its rollout in the first quarter, incorporating learnings from the Hollister Club Cali program. By the end of the quarter, it had more than 1.7 million members signed up, and we're adding approximately 200,000 new members every month. We are encouraged by its performance, which is driving excitement and engagement with our customer. It is ahead of Hollister's strong performance on the most relevant KPIs over that initial period, namely customer enrollment and identification. Overall, we've made some solid foundational progress at Abercrombie benefiting from our targeted architecture changes and supported by strategic inventory investments. We saw outperformance in sweaters, pants and swim across genders during the quarter. However, the full impact of some of the merchandising improvements we continue to make will be fully realized later in the year. On the marketing front, we hired a new CMO, Will Smith. In addition to driving improvement and the execution of our basic marketing, blocking and tackling, Will has been focused on sharpening the Abercrombie & Fitch brand positioning and purpose, and developing a supporting campaign. We'll be sharing more on that in the coming quarters. Overall, I am encouraged by the progress that has been made. In a still challenging and heavily promotional retail environment, we are making meaningful improvements to our business and showing progress across a range of financial and nonfinancial metrics. We continue to maintain a disciplined approach to our cost structure, with a balanced focus between dealing with short-term realities and driving towards our long-term ambition. I remain confident in our strategic direction and our team's ability to execute on our plans. 5 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

And with that, I will hand it over to Joanne. Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Thanks, Fran, and good morning, everyone. As Fran mentioned, our overall results for the quarter were largely in line with our expectations coming into the quarter. We delivered sequential quarterly top line improvement across all brands in a highly promotional environment. We continue to make progress on our strategic initiatives and are focused on tightly managing the business in a difficult environment. I'll briefly walk you through our first quarter results, then update our full year outlook. Starting with the first quarter, net sales were $661 million, down 4% from last year with foreign currency adversely impacted sales by approximately $12 million or 170 basis points. Comp sales for the quarter were down 3% with broad improvement from last quarter delivered across all brands, geographies and channels. While traffic remained a headwind, the trend improved from last quarter, and conversion trends remained positive. As shown on Page 4 of the Investor Presentation, by geography, comp sales for the quarter were down 3% in the U.S. and down 2% in international markets. By brand, comp sales for the quarter were up 3% for Hollister and down 10% for Abercrombie. Hollister continued to capitalize on momentum, delivering positive comp sales in both the U.S. and international markets for the quarter. Abercrombie also made progress, with comp sales improving from last quarter across both geographies and channels. In addition, comp sales in our flagship and tourist stores improved from last quarter despite continued traffic headwind. The investments made in store training and CapEx focused on enhancing the customers' in-store experience are starting to pay off as conversion trends improved from last quarter. As Fran mentioned, we continue to leverage the early and continuing investments we've made in mobile, omnichannel and fulfillment capabilities, with our DTC business delivering another quarter of solid growth in both the U.S. and international markets. For the quarter, the direct-to-consumer business grew to 27% of total sales compared to 24% of total sales last year. Gross margin for the quarter was 60.3%, 130 basis points lower than last year on a constant currency basis, as the reduction in average unit cost was more than offset by lower average unit retail. While we expected gross margin to be pressured during the quarter as we contended with steep traffic headwinds early on and also worked through the assortment issues identified last quarter, the competitive environment resulted in more promotional activity than planned. We expect gross margin will continue to be pressured into the second quarter as we work through the tail of the assortment issues and as the competitive environment remains promotional. Moving to operating expense, we are on track to deliver at least $100 million in expense reductions that we announced last quarter. A portion of this, as you recall, will be reinvested to support revenue-driving activities. During the quarter, stores and distribution expense decreased $9 million, and marketing, general and administrative expense decreased $5 million, which was net of incremental investments in marketing and in direct-to-consumer and omnichannel capabilities to drive growth. Operating loss for the quarter was $70 million compared to $55 million last year, which included the adverse effect from FX of approximately $5 million. The effective tax rate for the quarter was 18%, significantly lower than statutory rates, primarily due to a discrete noncash income tax charge of $9 million related to a change in share-based compensation accounting standards, as we announced last quarter. For further clarification, this charge is primarily related to awards that expired unexercised during the quarter, which, under previous guidance, would have been recorded to additional paid-in capital on the balance sheet. In addition, the core tax rate was 31%, slightly lower than expected coming into the quarter, and continues to be highly sensitive at lower level of estimated full year earnings. Net loss per diluted share was $0.91 compared to $0.59 last year and included the adverse effect from FX of approximately $0.05 net of hedging. In addition, the tax items I just mentioned adversely impacted net loss per diluted share for the quarter by approximately $0.19. 6 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

Turning to the balance sheet. We ended the quarter with cash of $421 million compared to $491 million last year, and gross borrowings outstanding of $268 million compared to $293 million last year. Additionally, we continue to tightly manage inventory, ending the quarter with total inventory down 8% compared to last year. Overall, inventory levels and content are well balanced. Going forward, we expect to continue to drive incremental improvement in inventory productivity, but expect it to be more in line with sales performance. Details of our store openings and closings for the quarter are included on Page 8 and 9 of the Investor Presentation. At the end of the quarter, we operated 705 stores in the U.S. and 188 stores across Canada, Europe, Asia and the Middle East. With regard to our outlook for the balance of the year, we expect comp sales to remain challenging in the second quarter, with trend improvement expected in the second half of the year as our strategic investments in marketing and loyalty programs, omnichannel capabilities and the store experience gain traction. In addition, we expect the gross margin rate for the full year to now be down slightly to fiscal 2016's adjusted non-GAAP rate of 61%. We expect the gross margin rate to remain pressured in the second quarter. However, we expect margin rate growth in the second half of the year driven by lower average unit costs on stabilized average unit retails as the merchandising improvements we are making take hold. After providing for reinvestment in growth-driving activities, we expect the operating expense to be down at least 3% from last year's adjusted non-GAAP operating expense of $2 billion. We expect the net year-over-year savings to be weighted toward the second half of the year as we lap key investments and actions taken last year. Operating efficiency continues to be a focus across the entire organization. And we will continue to pursue additional expense savings opportunities throughout the year. We expect the full year effective tax rate to reflect the core tax rate in the low 30s, which remains highly sensitive at lower levels of pretax earnings. Additionally, we expect the effective tax rate to reflect the full year impact from discrete noncash income tax charges of approximately $11 million. This is due to the previously referenced change in share-based compensation accounting standards, the majority of which is reflected in our first quarter results. As we look at our ongoing channel optimization program, we are focused on allocating our resources to better serve our customers wherever they choose to shop. For the past several years, we have been actively managing our channel mix and store fleet to address shifts in customer shopping preferences. And we are making strategic decisions with a focus on driving greater productivity in this changing environment. These decisions may result in a variety of potential actions. On the brick-and-mortar side, these actions include remodeling, relocating, downsizing or closing store locations as well as investing in select new store openings. On the digital front, actions include further investments in web and mobile experiences, omnichannel capabilities and further enhancing CRM capabilities. With respect to capital allocation, we expect capital expenditures to be approximately $100 million for the full year, as we focus on projects that are aligned with our strategic priorities and provide the highest return. For 2017, this includes approximately $70 million for store updates and new stores, and approximately $20 million to support the continued global rollout of omnichannel and CRM capabilities. For the year, we expect to close approximately 60 stores in the U.S. through natural lease expirations and to complete approximately 40 Hollister remodels, about 10 of which will include a downsizing of an existing location. We expect to complete 7 new A&F prototype stores, 4 of which will include a downsizing of an existing location. And we expect to open 7 full-priced stores, including 6 in the U.S. and 1 in international markets as well as 2 outlet stores. Importantly, with about 50% of our U.S. leases expiring by the end of fiscal 2018, we continue to have significant lease flexibility as we move forward, to drive the right balance and an engaging experience for our customers in an evolving omnichannel environment. 7 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

The dividend also remains an important element of our capital allocation philosophy. Last week, we announced that our Board of Directors approved the $0.20 quarterly dividend. We have a strong balance sheet and a disciplined approach to managing capital and operating expense. We continue to expect to generate the cash necessary to invest in the business, meet our debt obligations and maintain the dividend. As we did in the first quarter, we will continue to tightly manage the business, positioning our resources behind our strategic priorities to drive both bottom line improvements, while funding top line growth initiatives. Now I'll turn the call back over to Fran for some closing remarks. Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director Thank you, Joanne. As I said earlier, we made meaningful progress this past quarter, but we are far from satisfied. We are focused on continual improvement on the basics, delivering excellence on all aspects of our execution with a view to inspiring customers, innovating throughout all aspects of our business and developing our leaders to help drive our future success. We will deepen our customer connections. We'll be ever more engaging storytellers, activating new campaigns and exploring innovative new ways to engage customers. We will be present wherever our customers are, continuing to build on our omnichannel capabilities, develop partnerships and create new store experiences to engage customers whenever, wherever and however they choose to connect with our brands. And we will continue to run a tight ship from a financial management perspective. I remain confident in our strategic direction and our team's ability to execute on our plans. And I would like to thank all our teams for their energy, passion and dedication to continuing to move our brands forward. Now I will turn the call back to Brian. Brian P. Logan - Abercrombie & Fitch Co. - VP of Finance and Controller Thanks, Fran. That concludes our prepared comments. With respect to preliminary discussions we have had with interested parties regarding a potential transaction with the company, we will not be providing any commentary during this call, nor do we plan to comment until those discussions are complete. At this time, we will be happy to take your questions. (Operator Instructions) Thank you. Q U E S T I O N S A N D A N S W E R S Operator (Operator Instructions) First we'll go to Simeon Siegel with Nomura. Julie Kim This is Julie Kim on for Simeon. It was mentioned that comps are expected to continue to be challenged next quarter, but improved in the back half. Could you provide detail by brand and geography, and if that back half improvement means less negative or getting to positive comps? Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director Sure. It's Fran. So yes, we expect in the second quarter for the environment to remain competitive and promotional, as we mentioned. As we head into the back half of the year, with our strong team and improved processes in place, we do expect that our execution this year in the back half, 8 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

those strategic initiatives and investments in marketing and omnichannel, training and store environment begin to take hold. We see that evolution happening in the back half of the second quarter and to the second half of the year. Julie Kim Okay. And any quantification there on if you're expecting those comps to be positive or just less negative in the back half? Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes, our outlook -- as we said in our outlook, we expect the trends to improve as we move through the back half of the year. Operator Next, we'll go to Brian Tunick with Royal Bank of Canada. Kate Bridget Fitzsimons - RBC Capital Markets, LLC, Research Division - Associate VP This is Kate on for Brian. I guess, just trying to understand the gross margin outlook here for 2Q. Should we expect pressure similar to what we saw in Q1? And then, I guess, just when we're thinking about the gross margin by brand go-forward, should we continue to expect Hollister to improve, whereas it's the core adult brand that continues to lag? I guess, just how are you thinking about gross margin opportunities by brand go forward? Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director Kate, I'm going to pass that question to Joanne. Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes. As it relates to the gross margin outlook for Q2, Kate, much of the environment, we think, will remain challenging, very similar to Q1. We expect to have AUC benefit in the second quarter and running through the back half of the year. But as we saw in the first quarter, with the challenging environment and the work we're doing on our assortments, we expect AUR pressure to offset the AUC -- any AUC benefits we have in the second quarter. As we move into the back half of the year, from -- we haven't been specific about the brand improvement, but we do expect margin improvement as our assortments become better balanced. As you know, our inventories are well managed, so we expect that as we drive stronger engagement with our customers and better balance of our assortment, we expect to be able to step away from some of the discounting to drive through -- drive our sell-throughs and to stabilize AUR. Operator Next, we'll go to Stephen Albert with Bank of America. Stephen Albert - BofA Merrill Lynch, Research Division - Research Analyst I just wanted to ask about the deleverage impact from increased shipping costs in 1Q and just wanted to confirm that your shipping expenses for your online business, they flow through stores and distribution, not GM, which is somewhat different than how other retailers present it. Correct? 9 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes, I'll jump in. The shipping cost does through -- flow through stores and distribution. All of the DTC variable expenses flows through our stores and distribution lines in our expense reporting. And we do see higher variable cost with that DTC business growth. We have expected to invest in the DTC business, and that has been part of our understanding and our management of our overall P&L as we've entered the year. We did find $100 million worth of savings and are executing against that, and has -- as said, we are reinvesting some of that savings back in to fund our growth, both in marketing and DTC channel. And the shipping cost would be an element of that. Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director And just to underscore, our investment in omni and the fact that we're 100% omni-capable between the U.S., U.K. and Canada is a nice proof point for us because our true omni customer is actually more profitable than a single channel customer. So the teams are focused -- our marketing team is focused on making sure that we leverage that true omni customer. Operator And now we'll move on to Anna Andreeva with Oppenheimer. Samantha M. Lanman - Oppenheimer & Co. Inc., Research Division - Associate This is Sam Lanman on for Anna. I just have a couple of questions on international. The trend improved again sequentially. Can you expand on what drove that? Did you see difference between flagships versus local store improvement? And then additionally, on your store fleet internationally, can you remind us of the timing for those leases coming due? I'm curious if we could see additional store closures, especially at flagships. Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director Let me take the first part of that question. It's Fran. So we've invested in our store training. We've made some CapEx investments and we've also focused on our regional assortments. All 3 of those are beginning to show improvements in our international flag stores to our conversion metric. On the back half of the year, we're actually looking forward to rolling out our domestic loyalty programs internationally. And the success of those as well as our omni-capabilities are in-store for the back half of the year. But I'll turn it over to Joanne for the balance of the question. Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes. In terms of the international store fleet leases, we do have flexibility in the leases, a little bit less flexibility in the flagships than the balance of the fleet. But we do have kick-out clauses that give us flexibility to close stores internationally. And as we've said in the past, our international stores remain very profitable and our flagship stores in the aggregate are profitable. And we wouldn't expect to close many. However, when we have the ability and we have kick outs and it makes financial sense, we're also not shy to close as evidenced by the Pedder Street and Korea decisions we made last year. We have no new closures to announce at this point. Operator And now we move to Janet Kloppenburg with JJK Research. Janet Kloppenburg I wondered, Fran, if you could talk a little bit about the A&F repositioning. I'm wondering if it has more to do with product and pricing architecture or more to do with brand awareness and the repositioning -- awareness of the brand's repositioning. If you could talk a little bit about what you 10 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

think is the more -- greater challenge there and the remedies you have in place to restore a brand following in A&F, that would help a lot. And just at Hollister, when you think about the back half, I think you're thinking that you can promote at a lower cadence than you did in the first thing you're going through in the first half. And I'm just wondering if that has to do with your view on the environment or if there are some merchandising upgrades or marketing that we could expect to drive that. Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director Janet, it's Fran. So let's start with the first part of the question, which is the A&F brand. So A&F is a very strong brand with 125 years of history and heritage. And the current objective really is just to sharpen our focus a bit. We've learned a lot over the past year. We've also added, as you know, our new CMO as well as a new outside agency, and they're helping us to sharpen that focus. I think we've talked a couple of times about the fact that domestically, specifically, 80% of our consumers start to shop with us at the age of 18. And we are focused on the 20-something consumer, but narrowing that focus down to really the early 20s, the 21 to 24 bull's-eyes for that brand. As far as the ticket pricing, I think, specifically last week though, we are well positioned with where our current ticket prices are. But again, just to reiterate, a lot of learnings in Hollister continue to help us make sure that we are moving ahead in Abercrombie where we need to. We've taken recently some focus groups around the country. And we have pressure tested where we're headed for the back half of second quarter and into the fall. And we've been able to adjust from those learnings. So we continually keep ourselves close to the customer and listening to what our opportunities are. Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes. And just to underscore, Janet, you hit on pretty much every aspect of our customer touch points, and we are focused on making progress in all of those touch points. They all matter. It's voice through our marketing, but it's also product and it's also experience. And we've talked a lot about having the right balance in our assortment and the right depth behind the items that matter and making sure that our assortments are relevant to our core customer. And that work continues -- is underway at Abercrombie. We don't expect a big departure from our ticketing structure or our core category structure. But we continue to improve our execution around our assortments. We are making investments to improve the store experience, and Fran touched on all the work that's going on in marketing to shape that Abercrombie go-to-market strategy as we move forward. And I'll just jump in on the Hollister promotional aspect. I think it's across our entire assortment. We do have an opportunity to execute better in the back half. And it's a little bit about stepping away from promotions. It's also about having the depth behind the items to drive the business at the right time. So there's a combination of making sure that the assortment architecture supports the big businesses that we expect to do in the back half of the year, and also making sure that our marketing efforts are tied in. In Hollister, as we've moved through the first quarter, as Fran mentioned, we are having success when we tie that marketing message to our assortment architecture and the in-store experience. We see the customer respond nicely to that, and that's our area of focus and that's our expectation for improvement in the back half. Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director A great example of that, Janet, just to go back on that for a minute, so in the first quarter for Hollister, we sold the most amount of denim in the history of the brand and that was through a great engagement between our inventory, our marketing and our customer engagements. And those are the learnings that we'll continue to apply as we go throughout the year. Operator Next we'll go to Adrienne Yih with Wolfe Research. Douglas Drummond - Wolfe Research, LLC - Research Analyst This is Doug Drummond on Adrienne. I want to focus on DTC. It looks like DTC sales accelerated nicely to a high single-digit growth rate for the quarter. So just -- I'm curious how are you approaching your promotional strategy with respect to online versus brick-and-mortar. And just to clarify some comments earlier, is the DTC portion of the business both gross and margin accretive to the overall mix? 11 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director So yes, Doug. We are -- we were also pleased with our progress in our DTC channels, it's an investment we have made from an omni perspective very early on in our investment history. So the success of that -- the 27% was nice accomplishment for this quarter. We do expect that to continue as we move through the year. Our approach to it, though, is to have a seamless opportunity for our consumer to shop wherever, whenever and however they choose to shop with us. Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes, and I'll just jump in on the margins picture. It is -- the DTC business has a higher variable cost component to it, but a lower fixed cost. And we have laid the foundation to capture that business. As we've seen customer shopping preferences change and shift, we've -- as Fran mentioned, we're early adopters and have made investments to drive that business. We think -- we continue to invest to make that experience frictionless, to improve the engagement of our websites and our interaction on mobile devices, where we're seeing a much, much stronger growth and the customer is continuing to shift on that device. And we have invested in localized fulfillment as well as our localized websites across the globe. We are able to leverage those investments to capture this business. And it is operating margin accretive to the business in total. Operator Our next question comes from Tiffany Kanaga with Deutsche Bank. Tiffany Ann Kanaga - Deutsche Bank AG, Research Division - Research Associate Would you break out in more detail where you're driving the $100 million in expense reduction and, in particular, where you're finding upsides versus the original guidance of the down 3% for the year? And additionally, as I look out beyond this year, do you see incremental opportunity for further reductions without cutting into essential items, and where they could be? Or in other words, where's the right level of SG&A spend for the organization assuming comp stabilization? Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes, we had a lot of success as we came into the year in identifying expense savings. That expense savings, the $100 million, we really found throughout the P&L. So there wasn't one large bucket. It was in a lot of smaller areas. And as an example, in the first quarter, we leveraged our occupancy cost and some of that was rent savings, but some of that was utility savings where we implemented LED lighting in our stores and are able to save some utility cost. So that's just an example. But we have found savings through the -- throughout the P&L. We are reinvesting a portion of that back in to marketing, to support marketing and DTC, as we mentioned earlier. So the net save that's reflected in our results will be net of those reinvestments, as mentioned, that marketing investment sits in the MG&A category, and the DTC investments are in stores and distribution. We do expect to continue to focus on this. Operating efficiency is a focus of our organization. We have embedded an expense savings program throughout our organization. We're getting participation -- strong participation from all levels of the organization in what we call our CPI program. It's a continuous profit improvement program. And we expect to continue to find savings as we move forward, both this year and in the future. Operator Our next question comes from Marni Shapiro with The Retail Tracker. 12 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

Marni Shapiro - The Retail Tracker - Co-Founder So I had one clarification. The denim at Hollister, which is very impressive, does that include an acceleration or sales in both men's and women's? And does it include denim shorts as well as long pants? Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director Marni, it's Fran. Yes, it is across both genders. We had a strong performance on both guys and girls. And that is specifically full-length denim, including ankle, but not including shorts. Marni Shapiro - The Retail Tracker - Co-Founder Excellent. And then can I ask a sort of bigger picture question here? In the past, when you would set a new product line, which you've had success with at Hollister, some of these new fashion sets -- the customer would discover it coming into the store and you'd see the conversion immediately. Could you just pull back a little bit and talk a little bit about how is the customer engaging with this new product? Is she discovering it by clicking through your emails? Or is she liking it on Insta? And what kind of response are you seeing to -- for that product, specifically, for these fashion hits to reserve in-store? And is this collectively driving traffic to the store because you're able to support these new fashion hits with all these together? Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director The answer to the question, Marni, it's essentially all of those channels, both social, e-mail, et cetera, are helping to engage our consumer. We learned a lot about connecting our marketing and our inventory investments this past quarter, specifically in Hollister, which helped drive the results -- the top line results that we were pleased with. So a good example of that is we've had a nice swim business for the first quarter. We went out early on e-mail. We talked to the customer early on to make sure that they knew that we were a destination for swim, and that drove their awareness as well as their engagement and conversion. Marni Shapiro - The Retail Tracker - Co-Founder Is -- are you finding a better response when it's a more focused conversation, so swimming a good example versus a branded conversation? Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director Yes, we are. When we marry the marketing and the inventory investment and speak to the customer very specifically, we are absolutely seeing that. Marni Shapiro - The Retail Tracker - Co-Founder And did you mention is it driving the bricks and clicks, the reserve in-store? Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director Yes, it drives the total omni experience. Yes, it drives -- sorry, yes, it drives the entire omni experience, so that whenever -- wherever, whenever and however they choose to shop, it has been driving that opportunity. 13 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance And just the reserve in-store functionality is fairly new. We are -- we have just rolled that out this quarter, so we -- I wouldn't say that, that is one specific lever that the customer is voting they want to use. All of our omnichannel offerings are being leveraged by our customers. I think this underscores our need to make sure we're engaging with our customers where they are. We're finding tremendous response and engagement on Instagram, response from our e-mails. But importantly, to our loyalty program, we have been leveraging the loyalty program, and that's been building momentum in Hollister since middle of last year. And we've successfully leveraged that program to drive traffic to our stores. Operator (Operator Instructions) Next, we'll go to Oliver Chen with Cowen and Company. Courtney Ann Willson - Cowen and Company, LLC, Research Division - Associate It's Courtney Willson on for Oliver today. Just on mobile, you mentioned you're fully optimized. Can you comment on conversion and any traffic trends that you're seeing in mobile? And then in malls that you're located in that had have department store closures, can you talk about the traffic impact there, if any, that you're seeing? Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes, this is Joanne, Courtney. I'll jump in on that. On the mobile phone conversion in total, we are seeing traffic trends continue to grow in mobile. So our customer continues to shift to leverage their mobile phone for not only shopping, but browsing and interacting with the brands through our loyalty programs, through our apps. We have invested in those experiences, and that continues to be a growing importance to our customer. In terms of conversion, actual shopping conversion on the phone, the phone is probably our lowest conversion medium from -- if you sort of measure conversion from the store through the web down to mobile. However, we are seeing very, very strong double-digit increases in conversion as we invest in improvements in our capabilities on mobile. We have made that shopping experience and continue to improve it to make it easier and seamless for the customer to go from viewing and browsing to buying. But they're using their mobile phone for more than just shopping. They're interacting with our brands in a number of different ways on the mobile phones. In terms of the department store closures in malls, I don't have any specific metrics to point to. I would say that we have seen mall traffic declining for some time. And I believe that where some of those stores are dosing, there are -- they are in places where mall traffic has been declining. And in some cases, we have seen improvements where landlords have redeveloped that space to be -- have more engaging dining and entertainment options, and it drives more traffic to the mall overall. So it's a mixed bag, and I don't have any specific traffic patterns I can point to. Operator And now we'll go to Mark Altschwager with Robert W. Baird. Mark R. Altschwager - Robert W. Baird & Co. Incorporated, Research Division - Senior Research Analyst I wanted to follow up on gross margin. Joanne, if you could just maybe talk about some of the drivers to gross margin improvement for the back half of the year. It sounds like there's going to be some overhang in Q2, but is there an expectation that the broader promotional environment is going to improve in the back half? Or is it primarily the corrections on the design and allocation front that you're working on, and any other controllable drivers that you're baking in? 14 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes, the controllable drivers on margin in the back half include AUC benefit, so we continue to expect to have AUC improvement as we move through the back half. And as it relates to the AUR stabilization, it's related to improved execution on our side from having better assortments, weight and depth behind the key items and key ideas, where last year, as we moved through the back half of the year, we disappointed a number of our customers and were out of stock on the key items. Our assortments got -- were broken early, and we had to work through them at deeper levels, and also the way we leverage our loyalty program and marketing. And then the -- from an inventory management standpoint, that also plays a role. And we continue to manage our inventory tightly and expect that we'll be able to drive inventory productivity and better sell-through as we move through the back half of the year. Operator Our next question comes from Kimberly Greenberger with Morgan Stanley. Lauren Elizabeth Cassel - Morgan Stanley, Research Division - Research Associate This is Lauren Cassel on for Kimberly. I think last quarter, you indicated that you were seeing minimal sales recaptured from [primarily] closed stores. Wondering if you have any update there. And then if you could just comment if you're seeing any differences in your comp performance between mall and -- mall locations and then within A, B and C malls. Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes. In terms of sales recapture from closed stores, we monitor and look at that on a long-term basis, so it won't move much quarter-over-quarter. We are very focused on engaging our customers and driving loyalty to be a -- better able to retain customers in locations where stores closed. So that is the genesis and the focus of our efforts as it relates to driving stronger loyalty programs, stronger CRM capabilities behind our loyalty programs, so that we can retain that customer. In terms of comp performance between mall and off-mall locations, most of our locations, chain store locations are on malls. The off-mall locations tend to be our flagship and tourist stores, where we're seeing persistent headwinds in the tourist locations, particularly in international markets. However, we did see some trend improvement in our international and flagship and tourist locations in the first quarter with slight improvement, and we still see traffic headwinds there. So that is the biggest driver of our differences in our comp performance. Operator Now we'll go to Susan Anderson with FBR Capital Markets. Luke Chamberlain Hatton - FBR Capital Markets & Co., Research Division - Associate This is Luke Hatton on for Susan. Just asking about -- going along, sorry, with the department store closures theme and you talked about some rent expense savings. Are you seeing any concessions from landlords? And how does it differ between the A, B and C mall? Joanne C. Crevoiserat - Abercrombie & Fitch Co. - CFO, COO and EVP of Finance Yes, we are very focused on rightsizing our fleet. We talked about it in our prepared remarks. We've seen the customer shift in terms of their shopping preferences. And we're working, and have been working for several years to right size our store footprint. And that includes closing stores in locations -- in certain locations, but it also includes downsizing and remodeling stores to drive productivity and that is our focus. We continue to partner with our landlords on all of those conversations. We have a portfolio of stores with them, and they have a portfolio of malls. And we work 15 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call

to strike the right balance for our business of making sure we have the right footprint in terms of having store locations in the right malls and making sure those stores are productive and the right size. And those conversations are ongoing. Fran Horowitz - Abercrombie & Fitch Co. - CEO and Director I think that was the last question. I just want to thank everybody, again, for participating this morning. I'd like to reiterate that overall, I am encouraged by the progress that has been made in a still challenging and heavily promotional retail environment. We are making meaningful improvements to our business. And we remain confident in our strategic direction and our team's ability to execute our plans. Thank you. D I S C L A I M E R Thomson Reuters reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes. In the conference calls upon which Event Transcripts are based, companies may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks, which are more specifically identified in the companies' most recent SEC filings. Although the companies may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS. IN NO WAY DOES THOMSON REUTERS OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS. ©2017, Thomson Reuters. All Rights Reserved. 10426306-2017-05-26T12:45:27.087 16 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 25, 2017 / 12:30PM, ANF - Q1 2017 Abercrombie & Fitch Co Earnings Call