Abercrombie & Fitch (ANF) 8-K Third Quarter Net Income Per Diluted Share Up 41% to $1.11

EXHIBIT 99.1

ABERCROMBIE & FITCH REPORTS THIRD QUARTER RESULTS;

THIRD QUARTER NET INCOME INCREASED 43%;

THIRD QUARTER NET INCOME PER DILUTED SHARE UP 41% TO $1.11

New Albany, Ohio, November 14, 2006:Abercrombie & Fitch Co. (NYSE: ANF) today reported unaudited results which reflected record third quarter net income of $102.0 million and net income per diluted share of $1.11 for the period ended October 28, 2006.

Third Quarter Developments

• Total Company net sales increased 22% to $863.4 million; comparable store sales increased 5% versus a 25% increase for the third quarter of fiscal 2005

• Abercrombie & Fitch net sales increased 12% to $382.1 million; Abercrombie & Fitch comparable store sales increased by 1%

• abercrombie net sales increased 13% to $109.1 million; abercrombie comparable store sales increased by 8%

• Hollister Co. net sales increased 39% to $364.0 million; Hollister Co. comparable store sales increased by 8%

• RUEHL net sales increased 97% to $8.1 million; RUEHL comparable store sales increased by 20%

• Net income for the third quarter increased 43% to $102.0 million from $71.6 million in fiscal 2005

• Net income per diluted share increased 41% to $1.11 in the third quarter of fiscal 2006 from $0.79 in fiscal 2005

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

“I am pleased with our accomplishments for the third quarter. We performed well from a financial standpoint while enhancing the long term positioning of our brands. Our track record is strong, and our opportunities going forward are exceptional. We will continue to leverage our expertise, invest in our growth potential and, as a result, we expect to continue to deliver strong returns to our shareholders.”

Third Quarter Financial Results

Net sales for the thirteen weeks ended October 28, 2006 increased 22% to $863.4 million from $704.9 million for the thirteen weeks ended October 29, 2005. Total Company comparable store sales increased 5% versus last year.

The gross profit rate for the quarter was 65.8%, down 20 basis points compared to last year. The decline in gross profit rate was primarily due to a higher markdown rate versus last year.

Stores and Distribution expense, as a percentage of sales, decreased 20 basis points to 35.7% from 35.9%. The decrease in rate versus last year resulted primarily from the Company’s ability to leverage store payroll expense, partially offset by increased store maintenance expenses associated with store investment projects.

Marketing, General and Administrative expense, as a percentage of sales, decreased 260 basis points to 11.3% from 13.9%. During the third quarter of 2005, the Company recorded a non-recurring charge of $13.5 million related to an executive severance agreement. The decrease in rate is primarily attributed to decreased home office and marketing expenses.

Operating income for the third quarter increased 41% to $162.8 million compared to $115.9 million last year.

Net income for the third quarter increased 43% to $102.0 million, or $1.11 per diluted share, from $71.6 million, or $0.79 per diluted share, for the third quarter of fiscal 2005.

2006 Outlook

The Company reaffirmed its previously provided earnings guidance for the second-half of fiscal 2006 of net income per diluted share to be in the range of $3.25 to $3.30, including a charge of approximately $0.02 attributable to FAS 123(R). The low end of the second half of fiscal 2006 guidance reflects a flat comparable store sales scenario for the fourth quarter of 2006. Based upon this guidance, the Company expects its net income per diluted share for the year to be in the range of $4.59 to $4.64, including approximately $0.10 attributable to FAS 123(R).

The Company expects total capital expenditures for fiscal 2006 to be between $410 million and $420 million with approximately $260 million of this amount allocated to new store construction, store remodels, conversions and improvements to existing stores, with the remainder related to home office and distribution center investments.

For fiscal 2006, the Company expects to increase gross square-footage by approximately 11% primarily through the addition of approximately 70 new Hollister Co. stores, 19 new abercrombie stores, eight new Abercrombie & Fitch stores and seven new RUEHL stores.

Other Developments

The Board of Directors declared a quarterly cash dividend of $0.175 per share on the Class A Common Stock of Abercrombie & Fitch Co. payable on December 19, 2006 to shareholders of record at the close of business on November 28, 2006.

The Company plans to open its first European location in London in the first quarter of fiscal 2007.

The Company operated 355 Abercrombie & Fitch stores, 171 abercrombie stores, 369 Hollister Co. stores, and 11 RUEHL stores in the United States at the end of the third quarter of 2006. The Company operates three Abercrombie & Fitch stores and three Hollister Co. stores in Canada. The Company operates e-commerce websites at www.abercrombie.com, www.abercrombiekids.com, and www.hollisterco.com.

Today at 4:30 PM, Eastern Time, the Company will conduct a conference call. Management will discuss the Company’s performance, its plans for the future and will accept questions from participants. To listen to the live conference call, dial (800) 811-0667 or internationally at (913) 981-4901. To listen via the internet, go to www.abercrombie.com, select the Investor Relations page and click on Calendar of Events. Replays of the call will be available shortly after its completion. The audio replay can be accessed for two weeks following the reporting date by calling (888) 203-1112 or internationally at (719) 457-0820 followed by the conference ID number 3554646 or for 12 months by visiting the Company’s website at www.abercrombie.com.

# # # #

For further information, call:	Thomas D. Lennox
	Vice President, Corporate Communications
	(614) 283-6751

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

A&F cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this Press Release or made by management of A&F involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the Company’s control. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” and similar expressions may identify forward-looking statements. The following factors, in addition to those included in the disclosure under the heading “FORWARD-LOOKING STATEMENTS AND RISK FACTORS” in “ITEM 1A. RISK FACTORS” of A&F’s Annual Report on Form 10-K for the fiscal year ended January 28, 2006, in some cases have affected and in the future could affect the Company’s financial performance and could cause actual results for the 2006 fiscal year and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this Press Release or otherwise made by management: changes in consumer spending patterns and consumer preferences; the effects of political and economic events and conditions domestically and in foreign jurisdictions in which the Company operates, including, but not limited to, acts of terrorism or war; the impact of competition and pricing; changes in weather patterns; postal rate increases and changes; paper and printing costs; market price of key raw materials; ability to source product from its global supplier base; political stability; currency and exchange risks and changes in existing or potential duties, tariffs or quotas; availability of suitable store locations at appropriate terms; ability to develop new merchandise; ability to hire, train and retain associates; and the outcome of pending litigation. Future economic and industry trends that could potentially impact revenue and profitability are difficult to predict. Therefore, there can be no assurance that the forward-looking statements included in this Press Release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other person, that the objectives of the Company will be achieved. The forward-looking statements herein are based on information presently available to the management of the Company. Except as may be required by applicable law, the Company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Thirteen Weeks Ended October 28, 2006 and Thirteen Weeks Ended October 29, 2005
(in thousands except per share data)

	ACTUAL						ACTUAL
	2006			% of Sales			2005			% of Sales
Net Sales	$	863,448			100.0	%	$	704,918			100.0	%
Cost of Goods Sold		295,250			34.2	%		239,832			34.0	%
Gross Profit		568,198			65.8	%		465,086			66.0	%
Total Stores and Distribution Expense		308,456			35.7	%		252,947			35.9	%
Total Marketing, General and Administrative Expense		97,167			11.3	%		97,644			13.9	%
Other Operating Income, Net		(266	)		0.0	%		(1,379	)		-0.2	%
Operating Income		162,841			18.9	%		115,874			16.4	%
Interest Income, Net		(3,252	)		-0.4	%		(1,516	)		-0.2	%
Income Before Income Taxes		166,093			19.2	%		117,390			16.7	%
Income Tax Expense		64,062			7.4	%		45,790			6.5	%
Effective Rate		38.6	%					39.0	%
Net Income	$	102,031			11.8	%	$	71,600			10.2	%
Net Income Per Share:
Basic	$	1.16					$	0.81
Diluted	$	1.11					$	0.79
Weighted-Average Shares Outstanding:
Basic		88,106						87,862
Diluted		92,146						90,458

Abercrombie & Fitch Co.
Condensed Consolidated Statements of Income
(Unaudited)
Thirty-nine Weeks Ended October 28, 2006 and Thirty-nine Weeks Ended October 29, 2005
(in thousands except per share data)

	ACTUAL						ACTUAL
	2006			% of Sales			2005			% of Sales
Net Sales	$	2,179,415			100.0	%	$	1,823,319			100.0	%
Cost of Goods Sold		726,043			33.3	%		611,321			33.5	%
Gross Profit		1,453,372			66.7	%		1,211,998			66.5	%
Total Stores and Distribution Expense		837,302			38.4	%		707,267			38.8	%
Total Marketing, General and Administrative Expense		272,206			12.5	%		232,674			12.8	%
Other Operating Income, Net		(5,392	)		-0.2	%		(3,193	)		-0.2	%
Operating Income		349,256			16.0	%		275,250			15.1	%
Interest Income, Net		(9,183	)		-0.4	%		(4,296	)		-0.2	%
Income Before Income Taxes		358,439			16.4	%		279,546			15.3	%
Income Tax Expense		134,445			6.2	%		110,186			6.0	%
Effective Rate		37.5	%					39.4	%
Net Income	$	223,994			10.3	%	$	169,360			9.3	%
Net Income Per Share:
Basic	$	2.55					$	1.95
Diluted	$	2.44					$	1.87
Weighted Average Shares Outstanding
Basic		87,982						87,002
Diluted		91,675						90,422

Abercrombie & Fitch Co.
Condensed Consolidated Balance Sheets
(in thousands)

	(unaudited)
	October 28, 2006		January 28, 2006
ASSETS
Current Assets
Cash and Equivalents	$	65,466	$	50,687
Marketable Securities		308,906		411,167
Receivables		59,495		41,855
Inventories		431,002		362,536
Deferred Income Taxes		29,692		29,654
Other Current Assets		60,716		51,185
Total Current Assets		955,277		947,084
Property and Equipment, Net		1,058,740		813,603
Other Assets		51,808		29,031
Total Assets	$	2,065,825	$	1,789,718
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts Payable and Outstanding Checks	$	178,700	$	145,313
Accrued Expenses		259,543		215,034
Deferred Lease Credits		35,160		31,727
Income Taxes Payable		50,939		99,480
Total Current Liabilities		524,342		491,554
Long-Term Liabilities
Deferred Income Taxes		28,641		38,496
Deferred Lease Credits		208,373		191,225
Other Liabilities		92,596		73,326
Total Long-Term Liabilities		329,610		303,047
Total Shareholders’ Equity		1,211,873		995,117
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,065,825	$	1,789,718