NEW ALBANY, Ohio, April 06, 2020 (GLOBE NEWSWIRE) Abercrombie & Fitch Co. (NYSE: ANF) today announced further updates in response to the continued spread of COVID-19.

The company’s online stores remain open globally, and the majority of stores in the APAC region are open.

In North America and the EMEA region, stores remain closed. The current environment has resulted in significantly reduced demand, requiring fewer resources to support the business. As a result, the company is furloughing its North America and EMEA region store associates beginning April 12, during which time they will continue to receive enrolled benefits. The company will fund 100% of the health premiums for eligible associates impacted by these measures.

Additionally, the company will be implementing a temporary reduction in work schedule and corresponding reduction in pay for approximately 15% of its corporate associates globally, who are not able to operate at full capacity in this current business climate. The company will make every effort to bring its stores associates back to work, and its corporate associates back to a full schedule, as soon as possible.

The company is also initiating a range of other measures to increase financial flexibility and maintain agility during this challenging period. These measures include temporary reductions in its leadership team’s salaries ranging from 10% to 33% from the Vice President level upwards, including all named executive officers and the Chief Executive Officer. The company's Board of Directors' cash retainer will also temporarily be reduced by 50%, and the company has cancelled all spring merit raises and promotions.

Fran Horowitz, Chief Executive Officer, said: “We entered this unprecedented period with healthy liquidity. Given the evolving environment, we are undertaking a range of additional expense management actions to further strengthen our financial position. These are never easy decisions to make, but we believe they are necessary as we manage through this period of uncertainty. We are committed to preserving our team’s ability to respond quickly to the rapidly evolving conditions, while serving the needs of all of our stakeholders, and positioning us to return to growth after the COVID-19 pandemic.”

As previously disclosed, as of February 1, 2020, the company had $671 million in cash and cash equivalents and in March 2020, as a precautionary measure, it has also:

• Drawn down $210 million under its senior secured asset-based revolving credit facility
• Withdrawn excess funds from its Rabbi Trust, providing approximately $50 million of additional cash
• Determined it will not undertake any share buybacks for the foreseeable future

The company continues to monitor the situation closely and will provide updates as appropriate.

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. Abercrombie & Fitch believes that every day should feel as exceptional as the start of the long weekend. Since 1892, the brand has been a specialty retailer of quality apparel, outerwear and fragrance - designed to inspire our global customers to feel confident, be comfortable and face their Fierce. The quintessential retail brand of the global teen consumer, Hollister Co. believes in liberating the spirit of an endless summer inside everyone. At Hollister, summer isn’t just a season, it’s a state of mind. Hollister creates carefree style designed to make all teens feel celebrated and comfortable in their own skin, so they can live in a summer mindset all year long, whatever the season. A global specialty retailer of quality, comfortable, made-to-play favorites, abercrombie kids sees the world through kids’ eyes, where play is life and every day is an opportunity to be anything and better everything.

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 over 850 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