Abercrombie & Fitch Co.

03/26/2026 | Press release | Distributed by Public on 03/26/2026 15:20

Annual Report for Fiscal Year Ending 1/31, 2025 (Form 10-K)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") generally discusses our results of operations for Fiscal 2025 and Fiscal 2024 and provides comparisons between such fiscal years. For discussion and comparison of Fiscal 2024 and Fiscal 2023, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for Fiscal 2024, filed with the SEC on March 31, 2025. This MD&A should be read together with the Company's audited Consolidated Financial Statements and notes thereto included in this Annual Report on Form 10-K in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA," to which all references to Notes in MD&A are made.
INTRODUCTION
MD&A is provided as a supplement to the accompanying Consolidated Financial Statements and notes thereto to help provide an understanding of the Company's results of operations, financial condition, and liquidity. MD&A is organized as follows:
•Overview. A general description of the Company's business and certain segment information, and an overview of key performance indicators reviewed by management in assessing the Company's results.
•Current Trends and Outlook. A discussion of the Company's long-term plans for growth and a summary of the Company's performance over recent years, primarily Fiscal 2025 and Fiscal 2024.
•Results of Operations. An analysis of certain components of the Company's Consolidated Statements of Operations and Comprehensive Income for Fiscal 2025 as compared to Fiscal 2024.
•Liquidity and Capital Resources. A discussion of the Company's financial condition, changes in financial condition and liquidity as of January 31, 2026, which includes (i) an analysis of changes in cash flows for Fiscal 2025 as compared to Fiscal 2024, (ii) an analysis of liquidity, including availability under the Company's credit facility, and outstanding debt and covenant compliance and (iii) a summary of contractual and other obligations as of January 31, 2026.
•Recent Accounting Pronouncements. The recent accounting pronouncements the Company has adopted or is currently evaluating, including the dates of adoption or expected dates of adoption, as applicable, and anticipated effects on the Company's audited Consolidated Financial Statements, are included in Note 2 "SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES."
•Critical Accounting Estimates. A discussion of the accounting estimates considered to be important to the Company's results of operations and financial condition, which typically require significant judgment and estimation on the part of the Company's management in their application.
•Non-GAAP Financial Measures. MD&A provides a discussion of certain financial measures that have been determined to not be presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). This section includes certain reconciliations between GAAP and non-GAAP financial measures and additional details on non-GAAP financial measures, including information as to why the Company believes the non-GAAP financial measures provided within MD&A are useful to investors.
Abercrombie & Fitch Co.
2025 Form 10-K
OVERVIEW
Business summary
The Company is a global, digitally-led, omnichannel retailer. The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily through its Company-owned stores and digital channels, as well as through various third-party arrangements.
The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; EMEA; and APAC. Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company's segments and therefore are included as a reconciling item between segment and total operating income.
The Company's brand families include Abercrombie brands and Hollister brands. These brands share a commitment to offering unique products of enduring quality and exceptional comfort that allow customers around the world to express their own individuality and style.
The Company's fiscal year ends on the Saturday closest to January 31. This typically results in a fifty-two-week year, but occasionally gives rise to an additional week, resulting in a fifty-three-week year, as was the case in Fiscal 2023. All references herein to the Company's fiscal years are as follows:
Fiscal year Year ended/ ending Number of weeks
Fiscal 2023 February 3, 2024 53
Fiscal 2024 February 1, 2025 52
Fiscal 2025 January 31, 2026 52
Fiscal 2026 January 30, 2027 52
Seasonality
Historically, the Company's operations have been seasonal in nature and consist of two principal selling seasons: the spring season, which includes the first and second fiscal quarters ("Spring") and the fall season, which includes the third and fourth fiscal quarters ("Fall"). Due to the seasonal nature of the retail apparel industry, the results of operations for any current period are not necessarily indicative of the results expected for the full fiscal year, and the Company could have significant fluctuations in certain asset and liability accounts. The Company historically experiences its greatest sales activity during the Fall season due to back-to-school and holiday sales periods, respectively.
Key Performance Indicators
The following measurements are among the key performance indicators reviewed by the Company's management in assessing the Company's results:
•Net sales and comparable sales by region and brand;
•Cost of sales, exclusive of depreciation and amortization, as a percentage of net sales;
•Gross profit and gross profit rate;
•Selling expense as a percentage of net sales;
•General and administrative expense as a percentage of net sales;
•Operating income, including by segment, and operating income as a percentage of net sales ("operating margin");
•Earnings before interest, taxes, depreciation and amortization ("EBITDA")
•Net income and net income attributable to A&F;
•Net income per diluted share attributable to A&F;
•Cash flow and liquidity measures, such as the Company's working capital, operating cash flow, and free cash flow;
•Inventory metrics, such as inventory turnover;
•Return on invested capital and return on equity;
•Transactional metrics, such as traffic and conversion, performance across key product categories, AUR, average unit cost ("AUC"), average units per transaction and average transaction values, return rates, shrink; and
•Customer-centric metrics such as customer retention and acquisition, and certain metrics related to the loyalty programs.
While not all of these metrics are disclosed publicly by the Company due to the proprietary nature of the information, the Company discusses many of these metrics within this MD&A.
Abercrombie & Fitch Co.
2025 Form 10-K
CURRENT TRENDS AND OUTLOOK
Focus areas for Fiscal 2026
Over the last several years, A&F Co. has worked to successfully transform its brands, business and culture, while delivering on its financial commitments. As the Company looks forward, it's focused on evaluating opportunities that continue to deliver sustainable, profitable growth. The Company expects to:
•Deliver Consistent Global Growth Across Brandsby investing in owned-and-operated channels with the expectation of continued net sales growth, including through net new store openings, digital fulfillment, and marketing.
•Expand Channels and Categoriesby increasing net sales growth in new and select markets through the use of franchise, wholesale, and licensing partnerships. The Company also plans to expand into new, adjacent product categories that resonate with each brand's target customer.
•Execute a Multifaceted Strategy that includes evaluating sourcing footprint, adjusting pricing or promotions, and expense reduction initiatives to stabilize product and operating costs in attempt to meaningfully mitigate external cost pressure, including near-term tariff impacts.
•Enhance and Modernize our Key Systems and Leverage Technologyto support operational productivity and to improve the customer journey.
•Execute Financial Disciplineto maintain double-digit operating margins and expand net income per diluted share.
Current macroeconomic conditions and tariffs
Macroeconomic conditions, such as a volatile interest rate environment, ongoing inflation, the geopolitical landscape, and foreign exchange rate fluctuations, continue to impact the global economy. In addition, changes in trade policy and related uncertainty, including enacted and proposed tariffs affecting countries from which we source a significant portion of our merchandise and raw materials, have created a dynamic and unpredictable trade environment that adversely impacted our business and operations during Fiscal 2025 and continues into Fiscal 2026.
During Fiscal 2025, changes in U.S. trade policy, including the imposition, modification, and rescission of certain tariffs, increased volatility in duties and raw material costs associated with merchandise sourced from certain countries and added complexity to our supply chain and sourcing processes.
On February 20, 2026, the U.S. Supreme Court held that IEEPA did not authorize the imposition of tariffs, striking down the 10% universal baseline tariff, as well as the country-specific tariffs. The Company is involved in litigation seeking refunds of IEEPA tariffs. The outcome and timing of resolution remain uncertain.
While certain tariffs have been struck down, modified, or replaced, other tariffs remain in effect, and additional tariffs have been imposed or proposed during Fiscal 2026. Additional, increased, or modified tariffs may be imposed without warning through various statutes and trade authorities. These changing tariff rates and shifting trade policies have created significant uncertainty for suppliers, consumers, and us. These continued uncertainties regarding the future impact of tariffs and global trade relations could lead to weakened business conditions for our industry and could adversely impact our ability to procure merchandise or result in increases to the cost of merchandise sourced from impacted countries.
The Company continues to evaluate the impact of tariffs and other trade policies on its business and is continuing to execute against our playbook of mitigation strategies. Mitigation strategies have included evaluating supply chain footprint changes, negotiating with our supply chain vendors, pursuing operating expense reductions, and determining ways to increase AUR.
After factoring in certain mitigation strategies, tariffs on goods imported into the U.S. under trade policies in effect through January 31, 2026 negatively impacted operating income by $90 million or 170 basis points as a percent of net sales, during Fiscal 2025. Assuming the estimated impact from the tariffs on goods imported into the U.S., including the impact of a 15% tariff on all U.S. imports (which, for purposes of our outlook, is expected to apply beginning February 24, 2026, and to remain in effect for the entirety of Fiscal 2026), and factoring in certain planned mitigation strategies, we expect to incur approximately $40 million of incremental impact compared to Fiscal 2025, or approximately 70 basis points as a percentage of net sales, which would negatively impact our operating income during Fiscal 2026.
Recently, the global markets have experienced fluctuations in fuel and other energy related costs, which could lead to greater uncertainty regarding the overall economic environment and consumer spending. During periods of perceived or actual unfavorable economic conditions, consumers may reallocate available discretionary spending or determine that they have fewer funds available for discretionary spending, which may adversely impact demand for our products. Continued inflationary pressures could further impact expenses and have a longer-term impact on our ability to maintain satisfactory margins.
Abercrombie & Fitch Co.
2025 Form 10-K
Global events and supply chain disruptions
As a global multi-brand omnichannel specialty retailer, with operations in North America, Europe, the Middle East, and Asia, among other regions, we are exposed to global events and geopolitical developments, including armed conflicts in certain regions, that may adversely impact our operations. In addition to the impacts of tariffs discussed above, global supply chain conditions continue to be affected by other factors, including disruptions in major maritime routes, higher transportation and logistics costs, and increased competition for supply chain capacity due to uncertainty in the global trade environment and ongoing armed conflicts. For example, armed conflicts in the Middle East have contributed to elevated freight rates and longer transit times compared to historical levels, and prolonged or escalating conflicts could result in additional supply chain disruption, including higher energy and transportation costs (such as fuel related charges), shipping delays, or increased costs from using air freight instead of ocean freight to mitigate inventory delays.
Management continues to monitor global events and assess the potential impacts that these and similar events may have on the business in future periods. Although management also develops and updates contingency plans to assist in mitigating potential impacts, it is possible that the Company's preparations for such events are not adequate to mitigate their impact, and that these events could further adversely affect its business and results of operations.
Global store network modernization and growth
The Company has a goal of finding the right size, right location and right economics for omni-enabled stores that cater to local customers. The Company continues to use data to inform its focus on aligning store square footage with digital penetration, and has delivered new store experiences across brands during Fiscal 2025 and Fiscal 2024. Details related to these new Company owned and operated store experiences follow:
Type of new store experience Fiscal 2025 Fiscal 2024
New stores 62
Remodels 47
Right-sizes 11
Total 120 125
During Fiscal 2025, the Company opened 62 new stores, remodeled 47 stores, and right-sized 11 stores, while closing 22 stores. This compares with 65 new stores, 48 remodeled stores, 12 right-sized stores, and 41 closures during Fiscal 2024. Future closures could be completed through natural lease expirations, while certain other leases include early termination options that can be exercised under specific conditions. The Company may also elect to exit or modify other leases, and could incur charges related to these actions.
Additional details related to Company owned and operated store count and gross square footage follow:
Fifty-Two Weeks Ended January 31, 2026
AMERICAS (1)
EMEA (2)
APAC (3)
Total Company
Abercrombie
Hollister
Abercrombie
Hollister
Abercrombie
Hollister
Abercrombie
Hollister
Total (4)
February 1, 2025 215 385 33 100 30 26 278 511 789
New 27 15 4 6 5 5 36 26 62
Permanently closed (3) (4) (1) (5) (4) (5) (8) (14) (22)
January 31, 2026 239 396 36 101 31 26 306 523 829
Gross square footage (in thousands):
February 1, 2025 1,305 2,478 214 769 174 154 1,693 3,401 5,094
January 31, 2026 1,454 2,539 227 748 180 152 1,861 3,439 5,300
(1)The Americas segment includes North America and South America.
(2)The EMEA segment includes Europe, the Middle East and Africa.
(3)The APAC segment includes the Asia-Pacific region, including Asia and Oceania.
(4)This store count excludes temporary and franchise stores.
Recent tax law changes
On July 4, 2025, House Resolution 1, also known as the OBBBA, was signed into law. The OBBBA includes, among other provisions, changes to U.S. corporate income tax law impacting the taxation of domestic and international business operations, including permanently extending certain expiring provisions of the Tax Cuts and Jobs Act of 2017, restoration of accelerated depreciation on capital expenditures, deductible research and experimental expenditures, and modifications to the international tax framework. The enactment of the OBBBA did not have a material impact on the Company's consolidated financial statements and disclosures.
Abercrombie & Fitch Co.
2025 Form 10-K
For a discussion of material risks that have the potential to cause our actual results to differ materially from our expectations, refer to "ITEM 1A. RISK FACTORS,".
Summary of results
A summary of results for Fiscal 2025 and Fiscal 2024 follows:
GAAP
Non-GAAP (1)
Fiscal 2025 Fiscal 2024 Fiscal 2025 Fiscal 2024
Net sales(in thousands)
$ 5,266,292 $ 4,948,587
Change in net sales from the prior fiscal year 6 % 16 %
Comparable sales (2)
3 % 17 %
Operating income (in thousands)
$ 699,143 $ 740,820 $ 660,569
Operating income margin
13.3 % 15.0 % 12.5 %
Net income attributable to A&F (in thousands)
$ 506,921 $ 566,223 $ 478,039
Net income per diluted share attributable to A&F
$ 10.46 $ 10.69 $ 9.86
(1) Refer to "RESULTS OF OPERATIONS"for details on excluded items. A reconciliation of each non-GAAP financial measure presented in this Annual Report on Form 10-K to the most directly comparable financial measure calculated in accordance with GAAP, as well as a discussion as to why the Company believes that these non-GAAP financial measures are useful to investors, is provided below under "NON-GAAP FINANCIAL MEASURES."
(2) Comparable sales are calculated on a constant currency basis and exclude revenue other than store and digital sales. Refer to the discussion below in "NON-GAAP FINANCIAL MEASURES," for further details on the comparable sales calculation.
Certain components of the Company's Consolidated Balance Sheets as of January 31, 2026 and February 1, 2025 were as follows:
(in thousands) January 31, 2026 February 1, 2025
Cash and equivalents $ 759,540 $ 772,727
Marketable securities
25,036 116,221
Inventories 601,218 575,005
Certain components of the Company's Consolidated Statements of Cash Flows for Fiscal 2025 and Fiscal 2024 were as follows:
(in thousands) Fiscal 2025 Fiscal 2024
Net cash provided by operating activities $ 619,142 $ 710,376
Net cash used for investing activities (150,774) (297,703)
Net cash used for financing activities (495,387) (534,877)
Abercrombie & Fitch Co.
2025 Form 10-K
RESULTS OF OPERATIONS
The estimated basis point ("BPS") change disclosed throughout this Results of Operations has been rounded based on the change in the percentage of net sales.
Net sales
Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order. The Company's net sales by reportable segment for Fiscal 2025 and Fiscal 2024 were as follows:
(in thousands, except ratios)
Fiscal 2025 Fiscal 2024 $ Change % Change
Comparable Sales (1)
By segment:
Americas
$ 4,290,395 $ 4,027,514 $ 262,881 7 % 4 %
EMEA 818,140 770,519 47,621 6 -
APAC 157,757 150,554 7,203 5 (3)
Total
$ 5,266,292 $ 4,948,587 $ 317,705 6 3
(1)Comparable sales are calculated on a constant currency basis. Refer to "NON-GAAP FINANCIAL MEASURES,"for further details on the comparable sales calculation.
For Fiscal 2025, net sales increased 6%, as compared to Fiscal 2024. The increase was primarily attributable to low-single-digit AUR growth and mid-single-digit unit volume growth, with increases in Company owned and operated stores, and digital channels. The year-over-year increase in net sales reflects positive comparable sales of 3%, as compared to Fiscal 2024. On a geographic basis, net sales for Fiscal 2025 were as follows:
•Net sales growth in the Americas region of 7% and 4% on a reported and comparable sales basis, respectively. The increase was led by mid-single-digit unit volume growth, with increases in Company owned and operated stores, and digital channels.
•Net sales growth in the EMEA region of 6% and flat on a reported and comparable sales basis, respectively. The increase on a reported basis was attributable to mid-single-digit AUR growth, favorable foreign currency and an increase in sales volume in net new stores, and third-party channels, offset by relatively flat unit growth.
•Net sales growth in the APAC region of 5% on a reported basis and a decline of (3)% on a comparable sales basis. The increase on a reported basis was attributable to mid-single-digit AUR growth, and low-double-digit increase in digital channels, partially offset by a low-single-digit decline in Company owned and operated stores. Sales growth was negatively impacted by low-single-digit unit volume decline with declines in Company owned and operated stores, partially offset by unit volume growth in digital channels.
The Company's net sales by brand for Fiscal 2025 and Fiscal 2024 were as follows:
(in thousands, except ratios)
Fiscal 2025 Fiscal 2024 $ Change % Change
Comparable Sales (1)
Abercrombie
$ 2,523,662 $ 2,556,434 $ (32,772) (1) % (7) %
Hollister
2,742,630 2,392,153 350,477 15 13
Total
$ 5,266,292 $ 4,948,587 $ 317,705 6 3
(1)Comparable sales are calculated on a constant currency basis. Refer to "NON-GAAP FINANCIAL MEASURES,"for further details on the comparable sales calculation.
Cost of sales, exclusive of depreciation and amortization
Fiscal 2025 Fiscal 2024
(in thousands, except ratios)
% of Net Sales % of Net Sales BPS Change
Cost of sales, exclusive of depreciation and amortization $ 2,028,884 38.5 % $ 1,773,926 35.8 % 270
For Fiscal 2025, cost of sales, exclusive of depreciation and amortization, as a percentage of net sales, increased approximately 270 basis points as compared to Fiscal 2024. The percentage increase was primarily attributable to cost of sales deleverage with higher AUC primarily related to $90 million or 170 basis point adverse net tariff impact and unfavorable product and channel mix, partially offset by a low-single-digit increase in AUR, driven by volume mix and targeted promotions compared to Fiscal 2024.
Abercrombie & Fitch Co.
2025 Form 10-K
Selling expense
Fiscal 2025 Fiscal 2024
(in thousands, except ratios)
% of Net Sales % of Net Sales BPS Change
Selling expense
$ 1,809,633 34.4 % $ 1,689,988 34.2 % 20
Excluded item:
Litigation Settlement (1)
42,874 0.8 - - 80
Adjusted non-GAAP selling expense
$ 1,852,507 35.2 $ 1,689,988 34.2 100
(1) Refer to "NON-GAAP FINANCIAL MEASURES," for further details.
For Fiscal 2025, selling expense increased by $120 million compared to Fiscal 2024. Selling expense, as a percentage of net sales increased 20 basis points as compared to Fiscal 2024. The increase in rate was primarily driven by an approximate 80 basis point increase in store occupancy and payroll costs and an approximate 40 basis point increase in marketing, partially offset by an approximate 80 basis point benefit resulting from the Litigation Settlement and approximately a 20 basis point benefit in fulfillment expense. Excluding 80 basis points of benefits related to the Litigation Settlement, adjusted non-GAAP selling expense as a percentage of net sales increased by approximately 100 basis points during Fiscal 2025, as compared to Fiscal 2024.
General and administrative expense
Fiscal 2025 Fiscal 2024
(in thousands, except ratios)
% of Net Sales % of Net Sales BPS Change
General and administrative expense
$ 725,471 13.8 % $ 750,485 15.2 % (140)
Excluded item:
Litigation Settlement (1)
(4,300) (0.1) - - (10)
Adjusted non-GAAP general and administrative expense
$ 721,171 13.7 $ 750,485 15.2 (150)
(1) Refer to "NON-GAAP FINANCIAL MEASURES," for further details.
For Fiscal 2025, general and administrative expense decreased by $25 million compared to Fiscal 2024. General and administrative expense, as a percentage of net sales, decreased 140 basis points as compared to Fiscal 2024. The decrease in expense rate was primarily driven by an approximate 150 basis point decrease in employee compensation costs, partially offset by approximately 10 basis points in legal fees relating to the Litigation Settlement and other administrative expenses. Excluding 10 basis points of legal fees related to the Litigation Settlement, adjusted non-GAAP general and administrative expense as a percentage of net sales during Fiscal 2025, decreased by approximately 150 basis points, as compared to Fiscal 2024.
Other operating loss (income), net
Fiscal 2025 Fiscal 2024
(in thousands, except ratios)
% of Net Sales % of Net Sales BPS Change
Other operating loss (income), net $ 3,161 0.1 % $ (6,632) (0.1) % 20
For Fiscal 2025, other operating loss (income), net, as a percentage of net sales, increased by 20 basis points as compared to Fiscal 2024, primarily due to $7.3 million foreign currency losses recognized in Fiscal 2025 compared to $2.7 million in foreign currency gains in Fiscal 2024 .
Abercrombie & Fitch Co.
2025 Form 10-K
Operating income
Fiscal 2025 Fiscal 2024
(in thousands, except ratios)
% of Net Sales(1)
% of Net Sales(1)
BPS Change
Americas $ 1,187,253 27.7 % $ 1,210,493 30.1 % (240)
EMEA 91,514 11.2 109,821 14.3 (310)
APAC (27,597) (17.5) (12,011) (8.0) (950)
Operating loss not attributed to segments (552,027) (567,483)
Operating income $ 699,143 13.3 $ 740,820 15.0 (170)
Excluded item:
Litigation Settlement (2)
38,574 0.7 - - 70
Adjusted non-GAAP operating income $ 660,569 12.5 $ 740,820 15.0 (250)
(1) Segment operating income as a percentage of net sales is calculated by attributing the segment's operating income with the respective net sales in the segment.
(2) Refer to "NON-GAAP FINANCIAL MEASURES," for further details.
For Fiscal 2025, operating income decreased by $42 million or 170 basis points, as a percentage of net sales, as compared to Fiscal 2024.
•Operating income for the Americas decreased $23 million and decreased 240 basis points as a percentage of segment net sales as compared to Fiscal 2024. The decrease as a percent of sales was primarily attributed to higher cost of sales, inclusive of tariffs, and deleverage on marketing investments, partially offset by leverage in fulfillment expenses and a benefit from the Litigation Settlement included in selling expense.
•Operating income for EMEA decreased $18 million or 310 basis points as a percentage of segment net sales as compared to Fiscal 2024. The decrease as a percent of sales primarily related to deleverage on fulfillment expenses and marketing investments.
•Operating (loss) for APAC increased $16 million or 950 basis points as a percentage of segment net sales as compared to Fiscal 2024. The increase as a percent of sales is primarily attributed to higher cost of sales, and deleverage on store occupancy expenses, partially offset by leverage on general and administrative expenses.
•Operating (loss) not attributed to segments decreased primarily related to a decrease in employee compensation costs, partially offset by increases in other administrative expenses and foreign currency losses.
Excluding the benefits related to the Litigation Settlement, adjusted non-GAAP operating income as a percentage of net sales decreased by approximately 250 basis points during Fiscal 2025, as compared to Fiscal 2024.
Interest (income) expense, net
Fiscal 2025 Fiscal 2024
(in thousands, except ratios)
% of Net Sales % of Net Sales BPS Change
Interest expense $ 2,375 - % $ 12,077 0.2 % (20)
Interest income (24,004) (0.5) (39,934) (0.8) 30
Interest (income) expense, net $ (21,629) (0.4) $ (27,857) (0.6) 20
For Fiscal 2025, interest (income) expense, net, decreased $6.2 million, as compared to Fiscal 2024. The net decrease was a result of a reduction in interest income due to the decrease in balance of time deposits and money market accounts compared to Fiscal 2024. This was partially offset by lower interest expense in Fiscal 2025 compared to Fiscal 2024 as a result of the redemption of the remaining outstanding balance of the 8.75% Senior Secured Notes on July 15, 2024.
Income tax expense
Fiscal 2025 Fiscal 2024
(in thousands, except ratios) Effective Tax Rate Effective Tax Rate
Income tax expense $ 205,777 28.5 % $ 194,661 25.3 %
Excluded items:
Tax effect of pre-tax excluded items (1)
(9,692) -
Adjusted non-GAAP income tax expense $ 196,085 28.7 $ 194,661 25.3
(1) The tax effect of pre-tax excluded items is the difference between the tax provision calculation on a GAAP basis and on an adjusted non-GAAP basis. Refer to "NON-GAAP FINANCIAL MEASURES" for details of pre-tax excluded items.
Abercrombie & Fitch Co.
2025 Form 10-K
The change in the effective tax rate for Fiscal 2025, as compared to Fiscal 2024, is due to jurisdictional mix, a lower tax benefit on share-based compensation compared with the prior year.
During Fiscal 2025 and Fiscal 2024, the Company did not recognize income tax benefits on $74.9 million and $53.8 million, respectively, of pre-tax losses, primarily in Switzerland, resulting in adverse tax impacts of $11.9 million and $8.2 million, respectively. The primary driver relates to expense deleverage within the APAC and EMEA regions.
Refer to Note 12, "INCOME TAXES," for further discussion on factors that impacted the effective tax rate in Fiscal 2025 and Fiscal 2024.
Net income attributable to A&F
Fiscal 2025 Fiscal 2024
(in thousands, except ratios) % of Net Sales % of Net Sales BPS Change
Net income attributable to A&F $ 506,921 9.6 % $ 566,223 11.4 % (180)
Excluded item, net of tax (1)
(28,882) (0.5) - - (50)
Adjusted non-GAAP net income attributable to A&F
$ 478,039 9.1 $ 566,223 11.4 (230)
(1) Excludes items presented above under "Operating income," and "Income tax expense." Refer to "NON-GAAP FINANCIAL MEASURES," for further details.
Net income per diluted share attributable to A&F
Fiscal 2025 Fiscal 2024 $ Change
Net income per diluted share attributable to A&F
$ 10.46 $ 10.69 $ (0.23)
Excluded item, net of tax (1)(2)
(0.60) - (0.60)
Adjusted non-GAAP net income per diluted share attributable to A&F
$ 9.86 $ 10.69 $ (0.83)
Impact from changes in foreign currency exchange rates - (0.09) 0.09
Adjusted non-GAAP net income per diluted share attributable to A&F on a constant currency basis(2)
$ 9.86 $ 10.60 $ (0.74)
(1) Excludes items presented above under "Operating income," and "Income tax expense."
(2) Refer to "NON-GAAP FINANCIAL MEASURES," for further details.
EBITDA and adjusted EBITDA
Fiscal 2025 Fiscal 2024
(in thousands, except ratios) % of Net Sales % of Net Sales BPS Change
Net income $ 514,995 9.8 % $ 574,016 11.6 % (180)
Income tax expense 205,777 3.9 194,661 3.9 -
Interest (income) expense, net
(21,629) (0.4) (27,857) (0.6) 20
Depreciation and amortization 155,021 2.9 153,773 3.2 (30)
EBITDA (1)
$ 854,164 16.2 $ 894,593 18.1 (190)
Excluded item:
Litigation Settlement (2)
(38,574) (0.7) - - (70)
Adjusted EBITDA (1)
$ 815,590 15.5 $ 894,593 18.1 (260)
(1)EBITDA and Adjusted EBITDA are supplemental financial measures that are not defined or prepared in accordance with GAAP. EBITDA is defined as net income before interest, income taxes and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for excluded items.
(2)Refer to "NON-GAAP FINANCIAL MEASURES," for further details.
Abercrombie & Fitch Co.
2025 Form 10-K
LIQUIDITY AND CAPITAL RESOURCES
Overview
The Company's capital allocation strategy and priorities are reviewed by the Board of Directors quarterly, considering both liquidity and valuation factors. The Company believes that it will have adequate liquidity to fund operating activities for the next twelve months. The Company monitors market conditions and may in the future determine whether and when to repurchase shares of its Common Stock. For a discussion of the Company's share repurchase activity, please see below under "Share repurchases."
Primary sources and uses of cash
The Company's business has two principal selling seasons: Spring and Fall. The Company generally experiences its greatest sales activity during the Fall season, due to the back-to-school and holiday sales periods. The Company relies on excess operating cash flows, which are largely generated in Fall, to fund operations throughout the fiscal year and to reinvest in the business to support future growth. The Company alsohas the ABL Facility available as a source of additional funding, which is described further below under "Credit facility."
Over the next twelve months, the Company expects its primary cash requirements to be directed towards prioritizing investments in the business and continuing to fund operating activities, including the acquisition of inventory, obligations related to compensation, marketing, data and technology, leases and any lease buyouts or modifications it may exercise, taxes, and other operating activities. In addition, management continuously evaluates potential opportunities to strategically deploy excess cash and/or deleverage the balance sheet, in consideration on various factors, such as market and business conditions, and the Company's ability to accelerate investments in the business. Such opportunities may include, but are not limited to, share repurchases.
When evaluating opportunities for investments in the business, management considers alignment with initiatives that position the business for sustainable long-term growth and with the Company's strategic pillars as described within "ITEM 1. BUSINESS - STRATEGY AND KEY BUSINESS PRIORITIES," including being opportunistic regarding areas for growth. Examples of potential investment opportunities include, but are not limited to, new store experiences, and investments in the Company's digital and omnichannel initiatives, and investments in supply chain and distribution capabilities. Historically, the Company has utilized free cash flow generated from operations to fund any discretionary capital expenditures, which have been prioritized towards new store experiences, as well as marketing, digital and omnichannel investments, and information technology. For Fiscal 2025, the Company invested $240.8 million towards capital expenditures, up from $182.9 million of capital expenditures in Fiscal 2024. Total capital expenditures for Fiscal 2026 are expected to be in the range of $200 to $225 million.
The Company measures liquidity using total cash and cash equivalents and incremental borrowing available under the ABL Facility. As of January 31, 2026, the Company had cash and cash equivalents of $759.5 million and total liquidity of approximately $1.2 billion, compared with cash and cash equivalents of $772.7 million and total liquidity of approximately $1.2 billion at February 1, 2025.
Share repurchases
In March 2025, the Company announced that the Board of Directors approved a $1.3 billion share repurchase program (the "2025 Authorization"), which replaced the prior share repurchase program of $500 million authorized by the Board of Directors in 2021. The 2025 Authorization does not have an expiration date and may be discontinued at any time. During Fiscal 2025, the Company repurchased approximately 5.4 million shares of its Common Stock for approximately $450 million. As of January 31, 2026, the Company had $850 million in share repurchases remaining under the 2025 Authorization.
Historically, the Company has repurchased shares of its Common Stock from time to time, which repurchases are dependent on excess liquidity, market conditions, and business conditions, with the objectives of returning excess cash to stockholders and offsetting dilution from issuances of Common Stock associated with the vesting of restricted stock units. Shares may be repurchased from time to time in the open market or in private transactions in such manner as may be deemed advisable from time to time (including, without limitation, pursuant to accelerated share repurchase programs, one or more 10b5-1 trading plans, or any other method deemed advisable) and may be discontinued at any time. The timing and amount of any such repurchases will be determined based on an evaluation of market conditions, the Company's share price, legal requirements, and other factors. The Company is not obligated to repurchase any specific amount of shares of its Common Stock. Refer to "ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES" for additional information regarding the Company's publicly announced share repurchase authorization programs.
Abercrombie & Fitch Co.
2025 Form 10-K
Credit facility

On August 2, 2024, A&F, as parent and a guarantor, Abercrombie & Fitch Management Co., as lead borrower, and certain of A&F's direct and indirect wholly-owned subsidiaries, as additional borrowers and guarantors, entered into the Second Amendment to the Amended and Restated Credit Agreement (as amended, the "ABL Credit Agreement"). The ABL Credit Agreement provides for a senior secured asset-based revolving credit facility of up to $500 million (the "ABL Facility"), which matures on August 2, 2029. The ABL Facility is subject to a borrowing base, consisting primarily of inventory located in the U.S., the United Kingdom, and the Netherlands, with a letter of credit sub-limit of $62.5 million, a swing line loan sub-limit of $30 million, and an accordion feature allowing A&F to increase the revolving commitment by up to $150 million subject to specified conditions.
The Company did not have any borrowings outstanding under the ABL Facility as of January 31, 2026 or as of February 1, 2025.
Details regarding the remaining borrowing capacity under the ABL Facility as of January 31, 2026 are as follows:
(in thousands) January 31, 2026
Loan cap $ 500,000
Less: Outstanding stand-by letters of credit (454)
Borrowing capacity 499,546
Less: Minimum excess availability (1)
(50,000)
Borrowing capacity available $ 449,546
(1) Under the ABL Facility, the Company must maintain excess availability equal to the greater of 10% of the loan cap or $36 million.
Refer to Note 13, "BORROWINGS,"for additional information.
Income taxes
The Company's earnings and profits from its foreign subsidiaries could be repatriated to the U.S. without incurring additional federal income tax. The Company determined that the balance of the Company's undistributed earnings and profits from its foreign subsidiaries as of February 2, 2019, are considered indefinitely reinvested outside of the U.S., and if these funds were to be repatriated to the U.S., the Company would expect to incur an insignificant amount of state income taxes and foreign withholding taxes. The Company accrues for both state income taxes and foreign withholding taxes with respect to earnings and profits earned after February 2, 2019, in such a manner that these funds may be repatriated without incurring additional tax expense. As of January 31, 2026, $245.2 million of the Company's $759.5 million of cash and equivalents were held by foreign affiliates.
Refer to Note 12, "INCOME TAXES," for additional details regarding the impact certain events related to the Company's income taxes had on the Company's Consolidated Financial Statements.
Analysis of cash flows
The table below provides certain components of the Company's Consolidated Statements of Cash Flows for Fiscal 2025 and Fiscal 2024:
Fiscal 2025 Fiscal 2024
(in thousands)
Cash and equivalents, and restricted cash and equivalents, beginning of period $ 780,395 $ 909,685
Net cash provided by operating activities 619,142 710,376
Net cash used for investing activities (150,774) (297,703)
Net cash used for financing activities (495,387) (534,877)
Effects of foreign currency exchange rate changes on cash 13,540 (7,086)
Net decrease in cash and equivalents, and restricted cash and equivalents $ (13,479) $ (129,290)
Cash and equivalents, and restricted cash and equivalents, end of period $ 766,916 $ 780,395
Operating activities- For Fiscal 2025, net cash provided by operating activities decreased by $91.2 million, primarily related to $174.4 million from the impact from changes in accounts payable and accrued expenses related to timing of merchandise and advertising payables and decreased incentive compensation payments. The decrease was partially offset by $84.8 million in lower inventory receipts compared to Fiscal 2024 and increased cash receipts as a result of the 6% year-over-year increase in net sales. During Fiscal 2024, net cash provided by operating activities included increased cash receipts as a result of the 16% increase in net sales.
Abercrombie & Fitch Co.
2025 Form 10-K
Investing activities- For Fiscal 2025, net cash used for investing activities decreased by $146.9 million, primarily attributable to capital expenditures of $240.8 million, as well as purchases of $25 million of marketable securities, partially offset by maturities of $115 million of marketable securities. For Fiscal 2024, net cash used for investing activities was primarily attributable to capital expenditures of $182.9 million, as well as purchases of $139.6 million of marketable securities, partially offset by maturities of $24.8 million in marketable securities.
Financing activities- For Fiscal 2025, net cash used for financing activities decreased by $39.5 million, primarily related to the repurchase of approximately 5.4 million shares of Common Stock with a market value of approximately $450 million, and $36.7 million related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards. For Fiscal 2024, net cash used for financing activities included the repurchase of approximately 1.6 million shares of Common Stock with a market value of approximately $229.8 million, the repurchase of $9.3 million in the open market and redemption of $214 million of outstanding 8.75% Senior Secured Notes, and $70.2 million related to shares of Common Stock withheld (repurchased) to cover tax withholdings upon vesting of share-based compensation awards.
Contractual Obligations
As of January 31, 2026, the Company's contractual obligations were as follows:
Payments due by period
(in thousands) Total Less than 1 year 1-3 years 3-5 years More than 5 years
Operating lease obligations (1)
$ 1,422,228 $ 312,271 $ 527,234 $ 301,971 $ 280,752
Purchase obligations (2)
682,403 406,541 195,886 56,464 23,512
Other obligations (3)
116,769 12,150 29,382 29,555 45,682
Total $ 2,221,400 $ 730,962 $ 752,502 $ 387,990 $ 349,946
(1)Operating lease obligations consist of the Company's future undiscounted operating lease payments. Operating lease obligations do not include variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs. Total variable lease cost was $192.2 million in Fiscal 2025. Refer to Note 2, "SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases," and Note 9, "LEASES," for further discussion.
(2)Purchase obligations primarily consist of non-cancelable purchase orders for merchandise to be delivered during Fiscal 2026 and commitments for fabric expected to be used during upcoming seasons. In addition, purchase obligations include agreements to purchase goods or services, including, but not limited to, information technology, digital and marketing contracts, as well as estimated obligations related to the Company's 13-year, 100% renewable energy supply agreement for its global home office and Company-owned distribution centers.
(3)Other obligations consist of: estimated asset retirement obligations; known and scheduled payments related to the Company's deferred compensation and supplemental retirement plans; and minimum contractual obligations related to leases signed but not yet commenced, primarily related to the Company's stores. Refer to Note 9, "LEASES," and Note 17, "SAVINGS AND RETIREMENT PLANS," for further discussion.
Due to uncertainty as to the amounts and timing of future payments, tax related to uncertain tax positions, including accrued interest and penalties, of $5.2 million as of January 31, 2026, is excluded from the contractual obligations table. Deferred taxes are also excluded in the contractual obligations table. For further discussion, refer to Note 12, "INCOME TAXES."
As of January 31, 2026, the Company had recorded $4.4 million and $47.0 million of obligations related to its deferred compensation and supplemental retirement plans in accrued expenses and other liabilities on the Consolidated Balance Sheet, respectively. Amounts payable with known payment dates of $18.0 million have been classified in the contractual obligations table based on those scheduled payment dates. However, it is not reasonably practicable to estimate the timing and amounts for the remainder of these obligations; therefore, those amounts have been excluded in the contractual obligations table.
RECENT ACCOUNTING PRONOUNCEMENTS
The Company describes its significant accounting policies in Note 2, "SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent accounting pronouncements." The Company reviews recent accounting pronouncements on a quarterly basis and has excluded discussion of those not applicable to the Company and those that did not have, or are not expected to have, a material impact on the Company's consolidated financial statements.
Abercrombie & Fitch Co.
2025 Form 10-K
CRITICAL ACCOUNTING ESTIMATES
The Company's discussion and analysis of its financial condition and results of operations are based upon the Company's consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires the Company to make estimates and assumptions that affect the reported amounts. Since actual results may differ from those estimates, the Company revises its estimates and assumptions as new information becomes available. Note 2, "SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES," describes the significant accounting policies and methods used in the preparation of the Company's consolidated financial statements. The estimates and assumptions discussed below include those that the Company believes are the most critical to the portrayal of the Company's financial condition and results of operations.
Policy Effect if Actual Results Differ from Assumptions
Inventory Valuation
The Company reviews inventories on a quarterly basis. The Company reduces the inventory valuation when the carrying cost of specific inventory items on hand exceeds the amount expected to be realized from the ultimate sale or disposal of the goods, through a lower of cost and net realizable value ("LCNRV") adjustment.
The LCNRV adjustment reduces inventory to its net realizable value based on the Company's consideration of multiple factors and assumptions, expected sell-off activity, composition and aging of inventory, historical recoverability experience and risk of obsolescence from changes in economic conditions or customer preferences.
The Company does not expect material changes to the underlying assumptions used to measure the LCNRV estimate as of January 31, 2026. However, actual results could vary from estimates and could significantly impact the ending inventory valuation at cost, as well as gross profit.
An increase or decrease in the LCNRV adjustment of 10% would have affected pre-tax income by approximately $3.5 million for Fiscal 2025.
Income Tax Valuation Allowances
The Company records deferred tax assets for deductible temporary differences and tax loss carryforwards. Management evaluates whether it is more likely than not that these deferred tax assets will be realized based on projected future taxable income, tax planning strategies, and reversal of temporary differences. All available evidence, both positive and negative, is considered to determine whether, based upon the weight of the evidence, it is more likely than not that some portion or all the deferred tax assets will not be realized. Greater weight is given to evidence that can be objectively verified such as current and cumulative financial reporting results. A valuation allowance is not required to the extent that, in the Company's judgment, sufficient positive evidence exists to conclude that it is more likely than not that recorded deferred tax assets will be realized. This evaluation requires significant judgment, particularly regarding long term financial projections and the timing of reversals. Any such reversal of a valuation allowance is recorded as a tax benefit in the financial statements. These estimates are considered critical accounting estimates because they involve complex judgments about future events and could materially affect our results of operations.
Changes in the Company's expectations about future taxable income - including those driven by global trade policy and international trade disputes, global economic and financial conditions, changes in consumer demand, supply chain disruptions, or tax law or other regulatory developments - may cause material adjustments to valuation allowances in future periods. Should the Company's actual future taxable income by jurisdiction vary from estimates, it could result in increases or reversals of valuation allowances and impacts on our effective tax rate. As of the end of Fiscal 2025, the Company had recorded valuation allowances of $184.8 million, of which $178.2 million relates to Switzerland.
Long-lived Assets
Long-lived assets, primarily operating lease right-of-use assets, leasehold improvements, furniture, fixtures and equipment, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset group might not be recoverable. These include, but are not limited to, material declines in operational performance, a history of losses, an expectation of future losses, adverse market conditions and store closure or relocation decisions. On at least a quarterly basis, the Company reviews for indicators of impairment at the individual store level, the lowest level for which cash flows are identifiable.

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

An impairment loss may be recognized when these undiscounted future cash flows are less than the carrying amount of the asset group. In the circumstance of impairment, any loss would be measured as the excess of the carrying amount of the asset group over its fair value. Fair value of the Company's store-related assets is determined at the individual store level based on the highest and best use of the asset group. The key assumption used in the Company's fair value analysis is comparable market rents. 		A 10% change in cash flows estimated for impairment purposes would not result in a material amount of additional impairment charges. If actual results are not consistent with the estimates and assumptions used in assessing impairment or measuring impairment losses, there may be a material impact on the Company's financial condition or results of operation.
Abercrombie & Fitch Co.
2025 Form 10-K
NON-GAAP FINANCIAL MEASURES
This Annual Report on Form 10-K includes discussion of certain financial measures on both a GAAP and a non-GAAP basis. The Company believes that each of the non-GAAP financial measures presented in this "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" is useful to investors as it provides a meaningful basis to evaluate the Company's operating performance excluding the effect of certain items that the Company believes may not reflect its future operating outlook, thereby supplementing investors' understanding of comparability of operations across periods. Management used these non-GAAP financial measures during the periods presented to assess the Company's performance and to develop expectations for future operating performance. These non-GAAP financial measures should be used as a supplement to, and not as an alternative to, the Company's GAAP financial results, and may not be calculated in the same manner as similar measures presented by other companies.
Comparable sales
The Company provides comparable sales, defined as the year-over-year percentage change in the aggregate of (1) net sales for stores that have been open as the same brand at least one year and square footage has not been expanded or reduced by more than 20% within the past year, with the prior fiscal year's net sales converted at the current fiscal year's foreign currency exchange rates to remove the impact of foreign currency exchange rate fluctuations, and (2) digital net sales with the prior fiscal year's net sales converted at the current fiscal year's foreign currency exchange rates to remove the impact of foreign currency exchange rate fluctuations. Comparable sales exclude revenue other than store and digital sales. Management uses comparable sales to understand the drivers of year-over-year changes in net sales and believes comparable sales can be a useful metric as it can assist investors in distinguishing the portion of the Company's revenue attributable to existing locations from the portion attributable to the opening or closing of stores. The most directly comparable GAAP financial measure is change in net sales.
Excluded items
The following financial measures are disclosed on a GAAP basis and on an adjusted non-GAAP basis excluding the following items, as applicable:
Financial measures (1)
Excluded items
Selling expense
Settlement of claims to resolve payment card interchange fee litigation
General and administrative expense
Legal fees in connection with settlement of claims to resolve payment card interchange fee litigation
Operating income
Settlement, net of legal fees, of claims to resolve payment card interchange fee litigation
Income tax expense (2)
Tax effect of pre-tax excluded item
Net income and net income per share attributable to A&F (2)
Pre-tax excluded items and the tax effect of pre-tax excluded item
(1) Certain of these financial measures are also expressed as a percentage of net sales.
(2) The tax effect of excluded items is the difference between the tax provision calculation on a GAAP basis and on an adjusted non-GAAP basis.
Abercrombie & Fitch Co.
2025 Form 10-K
Financial information on a constant currency basis
The Company provides certain financial information on a constant currency basis to enhance investors' understanding of underlying business trends and operating performance by removing the impact of foreign currency exchange rate fluctuations. Management also uses financial information on a constant currency basis to award employee performance-based compensation. The effect from foreign currency exchange rates, calculated on a constant currency basis, is determined by applying the current period's foreign currency exchange rates to the prior fiscal year's results and is net of the year-over-year impact from hedging. The per diluted share effect from foreign currency exchange rates is calculated using a 26% effective tax rate.
Reconciliations of non-GAAP financial metrics on a constant currency basis to financial measures calculated and presented in accordance with GAAP for Fiscal 2025 and Fiscal 2024 were as follows:
(in thousands, except change in net sales, operating margin and per share data)
Net sales Fiscal 2025 Fiscal 2024 % Change
GAAP $ 5,266,292 $ 4,948,587 6 %
Impact from changes in foreign currency exchange rates - 33,163 (1)
Net sales on a constant currency basis $ 5,266,292 $ 4,981,750 6
Operating income Fiscal 2025 Fiscal 2024
BPS Change (1)
GAAP $ 699,143 $ 740,820 (170)
Excluded items (2)
(38,574) - (80)
Adjusted non-GAAP $ 660,569 $ 740,820 (250)
Impact from changes in foreign currency exchange rates - (7,099) 30
Adjusted non-GAAP on a constant currency basis $ 660,569 $ 733,721 (220)
Net income per diluted share attributable to A&F Fiscal 2025 Fiscal 2024 $ Change
GAAP $ 10.46 $ 10.69 $ (0.23)
Excluded items, net of tax (2)
(0.60) - (0.60)
Adjusted non-GAAP $ 9.86 $ 10.69 $ (0.83)
Impact from changes in foreign currency exchange rates - (0.09) 0.09
Adjusted non-GAAP on a constant currency basis $ 9.86 $ 10.60 $ (0.74)
(1) The estimated basis point change has been rounded based on the percentage of net sales change.
(2) Refer to "RESULTS OF OPERATIONS," for details on excluded items. The tax effect of excluded items is calculated as the difference between the tax provision on a GAAP basis and an adjusted non-GAAP basis.
EBITDA and adjusted EBITDA
The Company provides EBITDA and adjusted EBITDA as supplemental measures used by the Company's executive management to assess the Company's performance. We also believe that these supplemental performance measures are meaningful information for investors and other interested parties to use in computing the Company's core financial performance over multiple periods and with other companies by excluding the impact of differences in tax jurisdictions, debt service levels and capital investment.
Reconciliations of non-GAAP EBITDA to net income, a financial measure calculated and presented in accordance with GAAP, and the adjustments made in calculating adjusted EBITDA for Fiscal 2025 and Fiscal 2024 were as follows:
Fiscal 2025 Fiscal 2024
(in thousands, except ratios) % of Net Sales % of Net Sales
Net income $ 514,995 9.8 % $ 574,016 11.6 %
Income tax expense 205,777 3.9 194,661 3.9
Interest (income) expense, net (21,629) (0.4) (27,857) (0.6)
Depreciation and amortization 155,021 2.9 153,773 3.2
EBITDA (1)
$ 854,164 16.2 $ 894,593 18.1
Adjustments to EBITDA
Litigation settlement (1)
(38,574) (0.7) - -
Adjusted EBITDA (1)
$ 815,590 15.5 $ 894,593 18.1
(1)EBITDA and adjusted EBITDA are supplemental financial measures that are not defined or prepared in accordance with GAAP. EBITDA is defined as net income before interest, income taxes and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for excluded items.
Refer to "NON-GAAP FINANCIAL MEASURES," for further details.
Abercrombie & Fitch Co.
2025 Form 10-K
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