The unaudited financial results for the thirteen weeks ended May 2, 2009 do not include a non-cash impairment charge, that is currently being determined and is to be recorded in respect of the first quarter, associated with a strategic review of the Ruehl business as further described in this press release. The impairment charge will be reflected in the condensed consolidated financial statements filed with Abercrombie & Fitch Co.'s Quarterly Report on Form 10-Q for the fiscal quarter ended May 2, 2009.

   First Quarter Sales Highlights   --  Total Company net sales decreased 24% to $612.1 million; comparable       store sales decreased 30%   --  Total direct-to-consumer net sales decreased 21% to $49.1 million   --  Abercrombie & Fitch net sales of $264.7 million; Abercrombie & Fitch       comparable store sales decreased 26%   --  abercrombie net sales of $69.1 million; abercrombie comparable store       sales decreased 33%   --  Hollister Co. net sales of $262.4 million; Hollister Co. comparable       store sales decreased 32%    --  RUEHL net sales of $10.4 million; RUEHL comparable store sales       decreased 34%   

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said:

"The first quarter was clearly a difficult one for us. With a challenging economic environment, the consumer continues to show a reluctance to spend on premium brands; a price consciousness dictating shopping habits unlike anything I have ever seen. We believe this is a temporary phenomenon but will approach the current conditions with a conservative mindset until we see a clear improvement. This year will be a transitional year for us as we continue to focus our efforts on laying the groundwork for our long term success and prosperity by protecting our brands, preserving cash and pursuing our international growth opportunities."

First Quarter 2009 Financial Results

Net sales for the thirteen weeks ended May 2, 2009 decreased 24% to $612.1 million from $800.2 million for the thirteen weeks ended May 3, 2008. Total Company direct-to-consumer net sales decreased 21% to $49.1 million for the thirteen week period ended May 2, 2009, compared to the thirteen week period ended May 3, 2008. Total Company first quarter comparable store sales decreased 30%.

The gross profit rate for the quarter was 63.3%, 350 basis points lower than last year's first quarter. The decrease in gross profit rate was attributable to a higher markdown rate for this year's first quarter.

Stores and distribution expense, as a percentage of sales, increased to 55.8% from 42.7%, before taking into account the non-cash impairment charge currently being determined in connection with the strategic review of the Ruehl business. Although the Company was able to achieve savings in store payroll, direct to consumer and other variable expenses, the reduction in those expenses was less than the rate of the sales decline and not enough to offset increases in rent, depreciation and other occupancy costs. The increase in rent, depreciation and other occupancy costs was primarily attributable to new store openings during 2008 and an increase in pre-opening rent expense. Stores and distribution expense for the first quarter, before taking into account the non-cash impairment charge, was $341.9 million compared to $341.8 million during the same period last year.

Marketing, general and administrative expense for the first quarter was $89.5 million compared to $104.7 million during the same period last year, before taking into account the non-cash impairment charge currently being determined in connection with the strategic review of the Ruehl business. The reduction in marketing, general and administrative expense includes savings related to employee compensation and benefits, travel, outside services and marketing.

Net interest income for the first quarter decreased to $1.4 million compared to $7.6 million during the same period last year. The decrease was primarily attributable to a lower average rate of return on investments compared to last year.

The effective tax rate for the first quarter was a benefit of 34.7% compared to an expense of 36.8% for the same period last year, before taking into account the non-cash impairment charge currently being determined in connection with the strategic review of the Ruehl business.

The Company ended the first quarter with $463.7 million in cash and cash equivalents, and outstanding debt and letters of credit of $143.0 million.

Other Developments

The Company announced today that it is conducting a strategic review of its Ruehl operation, the outcome of which has not been determined at this time. However, based on this review and on the requirements of Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company has determined that it is appropriate to record a non-cash impairment charge for the fiscal quarter ended May 2, 2009. The amount of this charge is in the process of being determined and is not reflected in the accompanying condensed consolidated financial statements for the fiscal quarter ended May 2, 2009, but will be reflected in the condensed consolidated financial statements included in Abercrombie & Fitch Co.'s Quarterly Report on Form 10-Q for the fiscal quarter ended May 2, 2009 to be filed with the Securities and Exchange Commission on or before June 11, 2009. The maximum amount of the charge is approximately $55 million before taxes, representing the current net book value of long-lived assets associated with Ruehl operations.