UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K Table of Contents (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 28, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-12107 Abercrombie & Fitch Co. (Exact name of registrant as specified in its charter) | Delaware | | | 31-1469076 | | ...

Financial Data and Key Metrics Changes - The company achieved a 9.6% adjusted annual operating margin, the highest in over a decade, significantly above the 5.8% target set in 2018 [5][16] - Full-year net sales reached $3.7 billion, up 2% compared to 2019, driven by record high digital sales [29] - Adjusted earnings per share were $4.35, the highest since 2007 [16][30] Business Line Data and Key Metrics Changes - Hollister's net sales increased by 2% compared to 2020, while Abercrombie's net sales rose by 6% [25] - The gross profit rate for the full year was 62.3%, up 290 basis points compared to 2019 [29] - The company experienced a 19% sales growth from fiscal 2020 and a 2% growth from fiscal 2019 [16] Market Data and Key Metrics Changes - U.S. sales increased by 7%, while international sales decreased by 4% compared to the previous year [25] - The company noted stronger trends in the U.S. compared to EMEA and APAC regions, which faced ongoing COVID-related disruptions [26] Company Strategy and Development Direction - The company is transitioning to a net store opener for the first time since 2008, planning to open at least 50 new omni-enabled experiences in 2022 [10][32] - The focus remains on optimizing the global store network and enhancing digital capabilities, with a significant investment in marketing and digital fulfillment [5][11] - The company aims to maintain a disciplined approach to store openings, ensuring the right size, location, and economics [52] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the international business as COVID restrictions ease, while acknowledging potential headwinds from inflation and supply chain issues [23][33] - The company plans to offset freight and raw material inflation through higher average unit retail prices and reduced promotional activity [34][64] - Management highlighted strong customer engagement and a healthy target customer base, indicating readiness for growth despite near-term challenges [23][37] Other Important Information - The company repurchased 10.2 million shares for $377 million, reducing total shares outstanding by 15% [17][32] - The corporate culture has been enhanced, with recognition as one of Fortune's best places to work in retail [15] Q&A Session Summary Question: Can you provide more detail on sales guidance by geography or concept? - Management expects U.S. to outperform international regions, with both Abercrombie and Hollister contributing to growth, though Abercrombie is likely to outperform Hollister slightly [40] Question: What is the outlook for Gilly Hicks and its growth potential? - Gilly Hicks has seen strong acceptance and is expanding with new stores planned in the UK and Germany, with a focus on a test-and-learn culture [44][45] Question: How do you see the digital business evolving alongside store openings? - Digital sales are expected to continue growing, with both digital and store channels being important for the omni business strategy [51] Question: What are the freight assumptions for the year and their impact on margins? - Freight costs are expected to impact margins by 300 to 400 basis points, with hopes for moderation later in the year [61] Question: Will there be a return to promotions in 2022? - The company aims to hold AUR gains and reduce promotional activity, focusing on delivering great products and maintaining inventory control [64]

Financial Data and Key Metrics Changes - For Q3 2022, the company reported net sales of $880 million, down 3% compared to the previous year on a reported basis, but flat on a constant currency basis [22] - The gross profit rate decreased to 59.2% from 63.7% the previous year, impacted by adverse exchange rates and higher product costs [24] - Operating income was approximately $21 million, significantly lower than $79 million in the previous year, with net income per diluted share dropping to $0.01 from $0.86 [26][27] Business Line Data and Key Metrics Changes - Abercrombie brands, including Kids, saw net sales grow 10% compared to 2021, and 13% on a constant currency basis, while Hollister's sales declined 12% or 9% on a constant currency basis [22][23] - Abercrombie adults achieved its best Q3 sales since 2014, with women's assortments delivering the highest Q3 sales levels since 2007 [8][9] - Hollister's performance improved slightly, but the brand continues to face challenges with lower conversion rates and basket sizes compared to 2021 [11][12] Market Data and Key Metrics Changes - Net sales increased 3% in the U.S. but declined 18% internationally, with EMEA down 22% and APAC down 26% on a reported basis [23] - The company noted significant inflation impacting global consumers, particularly affecting the Hollister customer base [5][6] Company Strategy and Development Direction - The company is focused on three strategic pillars: focused brand growth, digital evolution, and financial discipline, aiming to leverage these for the holiday season [7][20] - Plans to open approximately 60 new stores globally, marking a net store opening for the first time in over a decade, with a focus on enhancing customer experience [15][28] - The company is committed to managing inventory tightly and adjusting forward receipt plans to align with sales trends [20][25] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the holiday season, with sales running consistent with Q3 levels and healthy inventory on hand [21][29] - The company anticipates continued inflationary pressures on consumer demand but expects to see significant relief on product costs in 2023 [31] - Management highlighted the importance of digital transformation and omnichannel experience as pivotal for future growth [30] Other Important Information - The company repurchased 510,000 shares for approximately $8 million during the quarter, with a remaining authorization of approximately $230 million [27][28] - The company expects to see a benefit from lower cotton prices in the latter half of 2023, while freight costs are anticipated to provide a tailwind in Q4 [24][38] Q&A Session Summary Question: Can you expand on the enhancements that you've been making to Hollister and how you expect the brand to unfold in progress going forward? - Management noted sequential improvement in Hollister and emphasized the importance of adjusting inventories and focusing on categories that are performing well [35] Question: How do you see product cost opportunities with supply chain in the first half of '23 compared to the second half? - Management indicated that while cotton prices will remain a pressure in the first half, they expect benefits from lower freight costs throughout the year [38] Question: Can you talk about the health of the inventory going into the holiday? - Management confirmed that 92% of the inventory is current and expressed confidence in the inventory strategy set for the holiday season [42] Question: How do you think about the promotional environment as we head into the holiday? - Management stated that their promotional strategy is based on internal performance rather than competitors, and they expect promotions to be consistent with last year [44] Question: What about A&F men's performance? - Management reported growth in the men's segment, indicating positive consumer response to Abercrombie's offerings [67]

Financial Data and Key Metrics Changes - Total company sales declined 7% year-over-year, down 4% on a constant currency basis [9][26] - Gross profit rate decreased to 57.9% from 65.2% last year, impacted by higher product costs and adverse exchange rates [28] - Net loss per share was $0.30 compared to net income per diluted share of $1.70 last year [30] Business Line Data and Key Metrics Changes - Abercrombie brands, including kids, grew 5% year-over-year, or 7% on a constant currency basis, while Hollister brands declined 15% or 12% on a constant currency basis [26][27] - Abercrombie Adults achieved its best Q2 sales since 2015, with the highest Q2 average unit retail (AUR) since 2005 [9] - Women's category at Abercrombie delivered its best Q2 sales in AUR since 2008, while men's results showed the highest Q2 AUR since 2013 [10] Market Data and Key Metrics Changes - Net sales decreased 4% in the U.S. and declined 14% internationally, with EMEA down 13% and APAC down 33% on a reported basis [27] - In EMEA, strength in the U.K. and Middle East was offset by softness in Western Europe, particularly Germany and France [50] Company Strategy and Development Direction - The company is focused on three strategic principles: brand growth, digital revolution, and financial discipline [6][21] - Plans to open around 60 new stores in 2022, with a focus on smaller formats and updated store designs [17][32] - The company aims to achieve sales of $4.1 billion to $4.3 billion and a sustainable operating margin rate at or above 8% by the end of fiscal 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing inflationary pressures impacting consumer behavior, particularly for the Hollister brand [21][23] - There is cautious optimism regarding the moderation of inflation and product costs in the future [35] - The company is committed to executing its long-term goals despite current challenges [25][35] Other Important Information - Inventory levels increased by 70% year-over-year, with 92% classified as current [14][29] - The company repurchased 1 million shares for approximately $18 million during the quarter [31] Q&A Session Summary Question: How are you planning for inventory levels and product costs? - Management highlighted that 92% of inventory is current, with significant in-transit units due to last year's low inventory levels [38][39] Question: Can you discuss trends in back-to-school shopping? - Abercrombie is seeing growth in key categories like jeans and dresses, while Hollister has shifted from bottoms to tops [42] Question: What is the outlook for the Hollister brand? - Management acknowledged the brand's recent underperformance due to macro pressures and a shift in consumer behavior, but remains confident in its future [48][49] Question: How are you addressing inventory management going forward? - The company plans to reduce receipts and focus on trending categories to ensure inventory turns appropriately [58] Question: What are your thoughts on freight costs and sales progression? - Management is optimistic about freight costs becoming a tailwind and noted consistent strength in Abercrombie sales throughout the quarter [63][65]

Financial Data and Key Metrics Changes - Total company revenues rose 4% year-over-year, exceeding expectations for a low single-digit increase, marking the best Q1 revenues since 2014 [9][22] - Net sales reached $813 million, with Abercrombie brand sales increasing by 13% while Hollister brand sales declined by 3% [22][23] - Gross profit margin decreased to 55.3% from 63.4% last year, primarily due to higher freight costs and promotional activities [23][24] - Operating loss of $6 million compared to an operating income of $60 million last year, with a net loss per share of $0.27 [28] Business Line Data and Key Metrics Changes - Abercrombie adults achieved its best first-quarter sales since 2014, with significant growth in women's denim, dresses, and knits [11][12] - Hollister's North American sales were the second-best since 2012, but international sales remained below pre-pandemic levels, declining 3% overall [15][16] - The launch of the YPB (Your Personal Best) line exceeded expectations, selling out over 25% of SKUs within weeks [12][13] Market Data and Key Metrics Changes - U.S. market sales increased by 6%, while international sales were flat, with EMEA showing improvement due to lifted COVID restrictions [22][23] - APAC faced challenges, particularly in China, due to ongoing COVID-related lockdowns [9][23] - The company noted inflationary pressures affecting consumer confidence, particularly in the U.S. and EMEA regions [19][20] Company Strategy and Development Direction - The company aims to double its operating margin from 2017 levels, having already tripled it as of the latest report [7] - Focus on maintaining inventory levels and managing expenses to offset rising freight and raw material costs while supporting long-term growth strategies [10][20] - Plans to open approximately 60 new stores this year, marking a shift to being a net store opener for the first time in over a decade [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current inflationary environment while focusing on customer engagement and product offerings [21][19] - The outlook for Q2 anticipates low single-digit sales declines, with operating margins expected to be between 3% to 4% [32][33] - The company remains committed to long-term investments in digital capabilities and store experiences despite short-term challenges [34] Other Important Information - The company repurchased approximately 3.3 million shares for $100 million during the quarter, reducing outstanding shares by 19% [28][29] - The company is focused on strategic promotions and maintaining a compelling product offering to drive consumer engagement [20][21] Q&A Session Summary Question: What is the game plan for Hollister and how are you addressing inflationary impacts on demand? - Management acknowledged the expected decline in Hollister sales but noted strong U.S. performance and consumer acceptance of products [35][39] Question: Can you discuss cost-saving initiatives to mitigate margin pressures? - Management indicated a focus on reducing non-customer facing expenses while maintaining key investments in marketing and digital capabilities [40][41] Question: How is the pricing environment across regions and the ability to pass through higher prices? - Management reported successful AUR growth and less promotional activity compared to pre-pandemic levels, indicating a positive pricing environment [44][45] Question: What are the expectations for inventory levels and AUR pressure from competition? - Management expects inventory levels to remain elevated in the near term, with AUR growth continuing despite competitive pressures [46][48] Question: How did sales perform in stores versus digital? - Management noted a return to normalized traffic patterns, with a balanced performance between digital and in-store sales [62][64]