First Quarter Net Income Increases to $62.1 Million;

First Quarter Net Income Per Diluted Share Increases to $0.69;

Board of Directors Declares Quarterly Dividend of $0.175;

Company Reaffirms Seasonal Earnings Guidance

Abercrombie & Fitch Co. (NYSE: ANF) today reported unaudited results which reflected record first quarter net income of $62.1 million and net income per diluted share of $0.69 for the thirteen weeks ended May 3, 2008, a 3% increase over net income of $60.1 million and a 6% increase over net income per diluted share of $0.65 for the thirteen weeks ended May 5, 2007.

    First Quarter Highlights

     -- Total Company net sales increased 8% to $800.2 million; comparable
        store sales decreased 3%

     -- Total direct-to-consumer net sales increased 44% to $62.5 million

     -- Abercrombie & Fitch net sales increased 7% to $357.7 million;
        Abercrombie & Fitch comparable store sales increased 3%

     -- abercrombie net sales increased 8% to $96.2 million; abercrombie
        comparable store sales decreased 7%

     -- Hollister Co. net sales increased 7% to $330.2 million; Hollister
        comparable store sales decreased 8%

     -- RUEHL net sales increased 27% to $13.0 million; RUEHL comparable store
        sales decreased 17%

     -- Net income for the first quarter increased 3% to $62.1 million

     -- Net income per diluted share in the first quarter increased 6% to
        $0.69

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

"Our first quarter financial results demonstrate our ability to effectively position our brands. Despite a tough selling environment, we produced bottom-line growth while still remaining true to the aspirational positioning of our brands. We continue to focus on improving the quality of our product and the emotional store experience, which gives us our competitive advantage and is critical to our long-term sustainability."

First Quarter Financial Results

Net sales for the thirteen weeks ended May 3, 2008 increased 8% to $800.2 million from $742.4 million for the thirteen weeks ended May 5, 2007. Total Company direct-to-consumer net sales increased 44% to $62.5 million for the thirteen week period ended May 3, 2008, compared to the thirteen week period ended May 5, 2007. Total Company comparable store sales decreased 3% for the thirteen weeks ended May 3, 2008.

The gross profit rate for the quarter was 66.8%, up 120 basis points compared to last year. The improvement in gross profit rate was due to a higher initial markup rate and lower shrink rate, partially offset by a higher markdown rate versus last year.

Stores and Distribution expense, as a percentage of sales, increased 120 basis points to 42.7% from 41.5%. The increase in rate versus last year resulted from the inability to leverage fixed expenses due to the comparable store sales decline. Contributing to the unfavorable rate were minimum wage rate increases and pre-opening expenses associated with the Tokyo flagship lease. Partially offsetting the increases was a reduction in variable expenses including payroll hours, which were reduced on a per store basis.

Marketing, General and Administrative expense, as a percentage of sales, increased 100 basis points to 13.1% from 12.1%. The increase in rate versus last year was driven by increases in home office payroll and outside services expense rates, partially offset by decreases in travel expense rate.

Operating income for the first quarter decreased 2% to $90.6 million compared to $92.7 million.

Interest income for the first quarter increased to $7.6 million compared to $3.7 million last year. The increase was attributed to both a higher average investment balance and a higher average interest rate compared to last year.

The effective tax rate for the first quarter was 36.8% compared to 37.7% last year. The rate favorability was primarily attributed to higher tax exempt investment income.

Net income for the first quarter increased 3% to $62.1 million compared to $60.1 million last year.

Net income per diluted share for the first quarter increased 6% to $0.69 compared to $0.65 last year.

2008 Outlook

The Company reaffirmed its previously disclosed earnings guidance which stated it expects net income per diluted share for the first-half of Fiscal 2008 to be in the range of $1.61 to $1.65, representing a 5% to 8% increase in earnings over the first half of Fiscal 2007. The low end of the guidance reflects a negative 2% comparable store sales scenario for the second quarter of Fiscal 2008.

The Company plans total capital expenditures for Fiscal 2008 to now be between $410 million and $415 million with approximately $290 million of this amount allocated to new store construction and store remodels. Approximately $50 million is allocated to "refresh" improvements and other brand enhancing investments planned for existing stores and the balance is allocated to home office, information technology, and direct-to-consumer infrastructure investments.

For Fiscal 2008, the Company now expects to increase gross square-footage by approximately 10%, revised from the previous estimate of 11%. In North America, the Company expects to open 104 new non-flagship stores including three new Abercrombie & Fitch stores, 66 new Hollister Co. stores, 13 new abercrombie stores, six new RUEHL stores and 14 new Gilly Hicks stores and two new outlet stores. The Company also plans to open four new, non-flagship Hollister Co. stores in the United Kingdom in Fiscal 2008.

For more information, visit http://www.abercrombie.com/