Key questions and answers from the fourth quarter earnings call conducted by Abercrombie & Fitch Co. (ANF: chart) on February 14, 2006.

Jeff Klinefelter: Given the sales gains, and the productivity gains, can you gives us stands for how a split between the comp being driven by number of transactions and AUR increases?

Mike Kramer: We actually did not see an increase in our transaction in our stores as well as our AUR, that is roughly 50-50 split. We believe strongly that the future growth is going to come from transaction growth. We will take some opportunities, pricing changes as we see to that.

John Morris: Comment on the optimistic pricing increase you referred to?

Mike Kramer: In the Abercrombie & Fitch brand as we have seen putting a lot more quality in to a specific product we have taken some prices up as we saw yet there instance the basic follow and going Abercrombie & Fitch the price was raised from $39 to $49 last fall because we just felt so much in to the product.

Kimberly Greenberger: Why are you seeing such an acceleration in the CapEx for 2006?

Mike Kramer: As we have seen tremendous growth in all of our brands and we have to continue to build infrastructure for continued growth as we indicated $260 million is going to be targeted towards store build to remodels.

On top of that there is $80 million that were going to be spend building another distribution center here on our campus in New Albany, Ohio. We are also going to be investing significantly in our IT infrastructure as we continue to grow and see that we need to enhance our business, more importantly we able to drive more efficiency in our business we go forward.

Jeff Black: Can you talk about where you see opportunities for some further expense to leverage?

Mike Kramer: We are going to continue to see some operating margin improvement at the store level, which we have indicated in the past. We are continually focusing on the same areas primarily store payroll and we are continuing to do that.

In terms of MG&A, we probably will not be leveraging MG&A. We are going to continue to invest in the business, we are not going to invest in the business at the rate that we did in the previous spring, but we will be continuing to invest in the business.

One of the areas that we are going to be investing in the business is IT and those investments are in churn, going to churn around, it will be able to drive some efficiencies throughout the organization in terms of headcount.

Joe Teklits: On inventory, can you give us more detail on how clean it is?

Mike Jeffries: They clean last year on an increased volume levels, we think they are extraordinarily fine. So, in terms of seasonal, fashion merchandize, extraordinarily clean, the whole inventory is very clean.

We planned our inventory in different segments. We planned basic Denim as one category, where we have said that our markdown risk is appreciably less then impassion merchandize. Those inventories are extraordinarily well balanced at this point, you will see those inventories will be more efficient with those inventories as we move from this season in December and in this fall.

The fashion basic component of our business is those back up to Denim that Denim inventories as you know we have invested in heavily, we are very happy with those inventories and their levels will in fact moderate as we go through the year.

The second category is fashion basics, which includes polo shirts, applique logo, T-shirts those inventories are up to last year or own plan and its extraordinary clean. Third classification is personal care up to last year business performing very well, extraordinary we clean inventories we have cleaned our any non go forward fragments.

The fourth category is fashion, this is the category that we control very, very tightly, because there is markdown risk in fashion. Fashion, consist of anything that has to markdown within a season, we would consider that to be to include some Denim items.

Mike Krammer: We believe that the increase presentation on our store also added to the sales volume, and the experience within the store. Again as you continue to see on a quarter-by-quarter basis, we indicated on this particular quarter an increase of 59% on a cost basis on a unit basis is in the low 40s when you saw 33% comp coming out of the quarter and as we have also stated we will continue to see moderation in that particular percentage.

Stacy Pak: What is the realistic growth rate for the store and distribution expense in the first quarter?

Mike Kramer:We are actually going to see leverage, but in terms of growth rate, we are going to probably see the consistent cost with regards to the distributions center.

Dana Telsey: Can you talk a little bit about the product process?

Mike Kramer:We will start to see that impact on this year, we can not tell you how great an impact it will be because we are just getting on her feet with that, as you know it’s a really advanced center enables us to be technically superior in the product categories if we go after, and we would hope would, speed up time to market for each of the categories.

Robin Murchison: Can you just remind us about gross of the Canadian market for the various brands?

Mike Jeffries: In terms of 2006, we are targeting another 6 stores. This is something that we were going to go in a very moderate phase. Depending on the success of the stores that we have in a ground today which we have indicated.