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ABERCROMBIE & FITCH CO . REPORTS FIRST QUARTER RESULTS Achieves best first quarter operating income since 2008 ; Net income per diluted share of $ 0.64 reflects ongoing digital sales strength , gross profit rate expansion and tight expense controls New Albany , Ohio , May 26 , 2021 : Abercrombie & Fitch Co. ( NYSE : ANF ) today announced results for the first quarter ended May 1 , 2021. These compare to results for the first quarter ended May 2 , 2020. Descriptions of the use of non - GAAP financial measures and reconciliations of GAAP and non - GAAP financial measures accompany this release . Fran Horowitz , Chief Executive Officer , " 2021 is off to a strong start . We built on the significant progress we made in 2020 , registering our best first quarter operating income since 2008. The first quarter is evidence that our shift to a digitally - led global business model is working . Total net sales grew 61 % year - over - year , with digital sales up 45 % to 52 % of total sales . Inventories remained tightly controlled and product resonated with both new and existing customers , fueling improved price realization and benefiting gross margin rate , which expanded by 900 basis points . We remained focused on funding key investments in customer facing initiatives and delivered significant first quarter operating leverage . " " Results were well - ahead of first quarter 2019 pre - COVID levels , with net sales 6 % higher , including up 18 % in our largest market , the U.S. , gross margin expansion of 290 basis points and operating margin increasing 1,100 basis points . Sales growth was achieved despite the reduction of 1.3 million gross square feet of store space , or 20 % , compared to the first quarter of 2019. " " Momentum has continued into the second quarter across brands , and early reaction to our newest member of the A & F Co. family , Social Tourist , has been amazing . Our solid foundation and strong liquidity position enables us to be on the offense . We remain focused on profitable topline growth , our ongoing digital evolution and our growth vehicles , including Gilly Hicks , and are committed to thoughtful expense management and global square footage optimization . Although the global landscape remains uncertain , I am excited about the future and more confident than ever in our ability to drive sustainable , long - term operating margin expansion . " Details related to net income ( loss ) per diluted share for the first quarter are as follows : GAAP Excluded items , net of tax effect ( 2 ) Adjusted non - GAAP Impact from changes in foreign currency exchange rates ( ³ ) $ $ 2021 0.64 $ ( 0.03 ) 0.67 $ 1 2020 ( 1 ) ( 3.90 ) ( 0.62 ) ( 3.29 ) ( 0.01 ) ( 3.30 ) Adjusted non - GAAP constant currency $ 0.67 $ ( 1 ) Net loss per diluted share for the first quarter of fiscal 2020 reflects adverse tax impacts of $ 90.9 million , or $ 1.45 per diluted share , related to valuation allowances on deferred tax assets and other tax charges . ( 2 ) Excluded items consist of pre - tax store asset impairment charges and the tax effect of pre - tax excluded items . ( 3 ) The estimated impact from foreign currency is calculated by applying current period exchange rates to prior year results using a 26 % tax rate . A summary of results for the first quarter ended May 1 , 2021 as compared to the first quarter ended May 2 , 2020 : Net sales of $ 781 million , up 61 % as compared to last year and up 6 % as compared to pre - COVID 2019 first quarter net sales . Digital net sales increased 45 % to $ 403 million reflecting robust growth in every month of the quarter . Gross profit rate improved 900 basis points to 63.4 % driven by higher average unit retail on lower promotions . Operating expense , excluding other operating ( income ) loss , net , was down 7 % and up 2 % as compared to last year on a reported and adjusted non - GAAP basis , respectively , reflecting a decrease in store occupancy and increases in payroll and customer - facing expenses . Operating expense as a percentage of sales decreased to 56.2 % and 55.9 % from 97.4 % and 88.6 % on a reported and adjusted non - GAAP basis , respectively . Operating income of $ 57 million and $ 60 million on a reported and adjusted non - GAAP basis , respectively , as compared to operating loss of $ 209 million and $ 166 million last year , on a reported and adjusted non - GAAP basis , respectively . Net income per diluted share of $ 0.64 and $ 0.67 on a reported and adjusted non - GAAP basis , respectively , as compared to net loss per diluted share last year of $ 3.90 and $ 3.29 on a reported and adjusted non - GAAP basis , respectively .