Abercrombie & Fitch raises full year EPS guidance

Total comparable sales for the nine weeks ended January 4, 2014, including direct-to-consumer sales, decreased 6% with comparable U.S. sales decreasing 4% and comparable international sales decreasing 10%. Total direct-to-consumer comparable sales increased 25%. Comparable sales are compared to the nine-week period ended January 5, 2013.

Based on higher than expected sales for the fourth quarter-to-date and ongoing cost reduction efforts, the Company now expects full year adjusted non-GAAP earnings per diluted share to be in the range of $1.55 to $1.65, compared to prior guidance of $1.40 to $1.50. This updated projection assumes January comparable sales below the quarter-to-date trend reflecting a stronger prior year comparable sales base.

The guidance for the full year does not include charges related to the Company's restructuring plans for the Gilly Hicks brand, other impairment and store closure charges, or charges related to the implementation of the Company's profit improvement initiative.

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said, “Given the challenging and promotional retail environment, we are pleased that our quarter-to-date performance has exceeded expectations. Our direct-to-consumer business was particularly strong, reaching a record level of approximately 25% of total sales in December, and we also saw sequential improvement in comparable store sales.

In addition, fall season carryover inventory levels are well controlled as we move into the new season. We continue to focus on execution against our long-term strategic plans, which we believe will drive meaningful improvements in our business in 2014 and beyond."

About Abercrombie & Fitch Co.

Abercrombie & Fitch Co. is a leading global specialty retailer of high-quality, casual apparel for men, women and kids with an active, youthful lifestyle under its Abercrombie & Fitch, abercrombie, Hollister and Gilly Hicks brands. The Company currently operates 890 stores in the United States and 166 stores across Canada, Europe, Asia and Australia.

Abercrombie & Fitch