Abercrombie & Fitch in its preliminary unaudited fourth quarter

results reported net income of 173.2 million dollars and net income per diluted share of 2.15 dollars for the fourteen weeks ended February 2, 2013, compared to net income of 19.6 million dollars and net income per diluted share of 0.22 dollar for the thirteen weeks ended January 28, 2012 under the retail method of accounting for inventory. Additionally, the Company reported full year net income of 263.2 million dollars and net income per diluted share of 3.16 dollars for the fifty-three weeks ended February 2, 2013, compared to net income of 127.7 million dollars and net income per diluted share of 1.43 dollars for the fifty-two weeks ended January 28, 2012 under the retail method.

Under the cost method of accounting for inventory, the Company reported net income of 157.2 million dollars and net income per diluted share of 1.95 dollars for the fourteen weeks ended February 2, 2013, compared to restated net income of 45.8 million dollars and restated net income per diluted share of 0.52 dollars for the thirteen weeks ended January 28, 2012. Under the cost method, the Company reported net income of 237.0 million dollars and net income per diluted share of 2.85 dollars for the fifty-three weeks ended February 2, 2013, compared to restated net income of 143.9 million dollars and restated net income per diluted share of 1.61dollars for the fifty-two weeks ended January 28, 2012.

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch, said, “We are very pleased with our results for the fourth quarter. Our record sales were in line with our guidance coming into the quarter, and our earnings significantly exceeded expectations due to a strong gross margin performance for the quarter, allied with continued tight expense control. Despite a challenging US retail environment over the holiday period, our core US chain plus DTC comparable sales remained positive and we saw continued sequential improvement in our international business.”

“We come into 2013 feeling very optimistic that we are well positioned to make continued strong progress over the next few years and to drive our operating margin and return on invested capital higher. Our brands remain incredibly strong and resonant on a global basis. On the front line of our business, our stores organization does a world-class job of presenting those brands to the world, and we are well positioned to reap the benefits from all of the investments we have made in systems over the past couple of years, including continued strong growth in our DTC business,” Jeffries added.

Net sales for the fourteen weeks ended February 2, 2013 increased 11 percent to 1.469 billion dollars from 1.329 billion dollars for the thirteen weeks ended January 28, 2012. Total US sales, including direct-to-consumer sales, increased 1 percent to 976.4 million dollars. Total international sales, including direct-to-consumer sales, increased 34 percent to 492.2 million dollars. Total Company direct-to-consumer sales, including shipping and handling, increased 26 percent to 266.4 million dollars.

By brand, comparable sales, including direct to consumer sales, were flat for Abercrombie & Fitch, increased 4 percent for abercrombie kids, and decreased 2 percent for Hollister Co. Total sales by brand were 541.3 million dollars for Abercrombie & Fitch, 128.7 million dollars for abercrombie kids and 762.7 million dollars for Hollister Co.

Net sales for the fifty-three weeks ended February 2, 2013 increased 8 percent to 4.511 billion dollars from 4.158 billion dollars for the fifty-two weeks ended January 28, 2012. Total US sales, including direct-to-consumer sales, decreased 1 percent to 3.087 billion dollars. Total international sales, including direct-to-consumer sales, increased 36 percent to 1.424 billion dollars. Total Company direct-to-consumer sales, including shipping and handling, increased 27 percent to 700.7 million dollars.

With regards to Fiscal 2013, the U.S. based company projects earnings per share in the range of 3.35 dollars to 3.45 dollars under the cost method of accounting for inventory. In Fiscal 2013, the Company expects to open Abercrombie & Fitch flagship locations in Seoul and Shanghai, as well as approximately 20 international Hollister stores throughout the year. The Company expects to close approximately 40-50 stores in the US during 2013, primarily through natural lease expirations.