This summary is based on the fourth quarter fiscal 2005 earnings call conducted by Abercrombie & Fitch Co. (ANF: chart) on February 14, 2006.

Management:

- Director IR and Corporate Communications: Tom Lennox
- Chief Financial Officer: Mike Kramer
- Chairman, Chief Executive Officer: Mike Jeffries

Key Investors Issues:

- Net sales were $961.4 million, increasing 40% from $687.3 million in 2004.
- Income increased 58% to a $164.6 million or $1.80 a share versus a $104.3 million or $1.15 a share in the prior year.
- The Board declared a quarterly dividend of $17.5 per share.

Full Year Highlights:

- Net sales were $2.785 billion versus $2.021 billion last year, an increase of 38%.
- Comparable store sales increased 26% in fiscal 2005.
- Net income increased 54% to $334 million or $3.66 a share versus $216.4 million or $2.28 a share last year.

Fourth Quarter Highlights:

Net sales were $961.4 million, increasing 40% from $687.3 million in the comparable period with comparable store sales up 28%.

- In the adult business, Abercrombie & Fitch, comparable store sales increased 18%, men''s comps increased by mid-teens, women''s increased by high-teens.
- In the kids business, Abercrombie comps increased 59% with boys comps increasing by mid 30s and girls increasing by high 60s.
- Hollister, same-store sales increased 34% compared to last year with Dudes comp increasing by low 30%.
- On a regional basis, the business was consistent with each region generating comparable store sales, increases greater than 25%.

Gross profit rate was 66.5%, 20 basis points higher than last year''s rate of 66.3%, reflecting an improved shrink rate and initial markup with little changed in the markdown rate versus last year.

- The firm ended the period with inventories up 59% per gross square foot at a cost versus last year.
- Going forward, it expects increases in inventory levels to continue to moderate, ending the first quarter of 2006 with a slightly lower increase per foot at cost when compared to the fourth quarter of fiscal 2005.
- Stores and distribution expense decreased 210 basis points to 30.5% versus 32.6% last year, attributable to the ability to leverage fixed cost due to significant comparable store sales increases, partially offset by increase store management and loss prevention programs.
- Marketing General and Administrative expenses decreased to 120 basis points as a percentage of sales, to 8.4% from 9.6% last year due to leveraging of marketing expense and home office payroll, partially offset by increased legal expense.

Net income increased 58% to a $164.6 million or $1.80 a share versus a $104.3 million or $1.15 a share in the prior year on revenue growth.

- During the fiscal 2005, the firm repurchased 1.8 million shares in the open market as part of the previously authorized share repurchase program, with 5.7 million shares remaining under the existing repurchase authorization.
- The Board declared the quarterly dividend of $17.5 per share payable on March 21, 2006 to shareholders of record as of February 28, 2006.
- It opened 6 Abercrombie & Fitch stores, 2 Abercrombie Kids stores, 17 Hollister stores and 2 RUEHL stores, ending the year with a total of 361 Abercrombie & Fitch stores, 164 Abercrombie Kids stores, 318 Hollister stores and 8 RUEHL stores.

Business Highlights:

- The adult business Abercrombie & Fitch achieved the comparable store sales increase, demonstrating excellent growth for matured business.
- The business was consistently strong throughout the year, with both the men’s and women’s businesses performing very well.
- With limited opportunity to see here additional domestic model locations, expanding the ANF business would be driven by opening select flagship locations combined with international expansion.
- The firm opened 3 Hollister stores in Canada and these stores are also exceeding expectations with productivity above that of the average US Hollister stores. At this point, we are only half way to Hollister’s domestic store potential.

Fiscal 2006 Outlook:

- It plans to open approximately 12 new Abercrombie & Fitch stores, 19 new Abercrombie Kids stores, 64 new Hollister stores, and 8 new RUEHL stores, total square foot each is expected to grow by 11% in fiscal 2006.
- Planned capital expenditures would be between $405 million and $415 million, approximately $216 million of this amount is allocated to new store construction, remodels, conversions and improvements to existing stores.
- Net income for the first half of fiscal 2006 is expected to be in the range of $1.23 to a $1.28.

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?