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Hollister Parent Raises Guidance Based on Strong Sales

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ABERCROMBIE & FITCH CO. UPDATES FOURTH QUARTER OUTLOOK AND ANNOUNCES INVESTOR DAY

New Albany, Ohio, January 22, 2018:  Abercrombie & Fitch Co. (NYSE: ANF) today announced that the company is updating its outlook for the fourth quarter of fiscal 2017, and plans to hold an Investor Day in April 2018.

For the fourth quarter of fiscal 2017, the company now expects:

  • Comparable sales to be up high-single digits, compared to the previous outlook of up low-single digits
  • Net sales to be up low-teens, compared to the previous outlook of up mid- to high-single digits, including benefits from the 53rd week and changes in foreign currency exchange rates
  • A gross profit rate in line with the previous outlook of down approximately 100 basis points from last year's rate of 59.3%
  • Operating expense, including other operating income, to be up slightly from $553.7 million last year, compared to the previous outlook of down approximately 1%, primarily due to volume-related expense on higher than anticipated net sales

The company is currently assessing the impact of the Tax Cuts and Jobs Act of 2017, but expects to recognize a significant income tax charge in the fourth quarter primarily related to the one-time deemed repatriation tax on accumulated foreign earnings.

Fran Horowitz, Chief Executive Officer, said:

"We are pleased by our performance across all brands and channels during the holiday season, with continued strength at Hollister, and the Abercrombie brand on track to deliver positive comparable sales for the quarter. Our customers remain at the center of all we do, and that singular focus has continued to drive both our brands forward."

The company plans to release its fiscal 2017 fourth quarter and full year results on March 7, 2018.

Investor Day

The company will be hosting an Investor Day on April 25, 2018 in New York City, which will include presentations by the company's leadership and a question and answer session; a live webcast will also be available. Further details will be provided at a later date.

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. For 125 years, the iconic Abercrombie & Fitch brand has outfitted innovators, explorers and entrepreneurs. Today, the brand reflects the updated attitude of the 21 to 24-year old customer, while remaining true to its 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 5-14, 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.

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