Company Analysis of Polo Ralph Lauren Corp. versus Abercrombie & Fitch (financial ratios, ERR/RRR, beta, companies profiles and financial statements)

1. Financial Analysis
VS

2. Industry Overview
Sector: Services Sector: Consumer Goods
Industry: Apparel Stores Industry: Textile – Apparel Clothing
Market Cap.: $5.17bn $12.08bn
Market Cap.: $12.08bn
Specialty Retailer: X 2.3 Premium Lifestyle Products:
Casual Sportswear Apparel Clothing Apparel
Personal Care Products Accessories
Accessories Fragrances
Home Furnishing
Targets:
Targets:
Men, Women & Kids
Men, Women & Kids
Mainly Teenagers

3. Past Year’s Major Event
Closing of Ruehl division
Recession / Expensive Clothes Prices
$58M Pretax Loss for Ruehl in 2008
A&F refused lowering prices during 2009 first months
 Overall sales -28% in May yoy (-33% for Ruehl)

4. Current Economic Situation
“U.S. retail sales climb
4.2% in February
beating expectations
for a 3.6% rise yoy”
LATimes.com
+4.2%

5. Market Share
Market Share compared to S&P 2009 Teens Buying Behavior in
500's Overall Revenues Clothing Industry ($bn)
12.2
8,000
7,000 Teens Income
6,000 Teens Buying Behavior
(Spending in Clothing)
5,000 91.1
2008 (for
Q.2, Q.3, & Q.4)
4,000
2009 (for Teens Spendings as % of 2009
Q.1, Q.2, & Q.3)
3,000
Overall Retail Clothing Industry
12.2 Revenue
2,000
Teens Buying Behavior
(Spending in Clothing)
1,000
Overall Retail Clothing
0 Industry (Revenue)
S&P 500 ($bn) Abercrombie & Polo Ralph
Fitch Co. Lauren Co. 150

6. Stores Location by Continent
Europe, Polo Ralph Lauren
Abercrombie & Fitch
1.4% Europe, Asia, 1.3
Asia, 0.1 49.5% %
%
North North
America, America,
98.5% 49.2%

7. EUR/USD Weekly
Fiscal Year 2009
Open: 1.2962 Close: 1.4141

8. Revenue By Area
2009
International
International
8%
United States Europe; Asia;
30.5%
/ Canada 21.1% 9.2%
69.5%
Other
Regions
0.1%
United
States; 92%

9. Revenue By Segment
2009
Licensing, 4
%
Retail, 45% Wholesale,
51%
Retail
100%

10. Stores, Sales, Sales per Store &
Sales per Square Foot
10,000
8,918 8,940
9,000
4,000
3 3,484.1
484.1 8,000 +63,7%
3,500
22,928.6
928.6 7,000
3,000
6,000
2,500 4,823.7 4,795.5
4 823.7 4 795.5
5,000
2008
2,000 2008 4,000 2009
1,500 2009
3,000
1,097 1,096
1,000 2,000
449.0 373.2
500 1,000
3.2 2.7 0.54 0.54 115.1 114.2
0 0
Stores Sales ($M) Sales per Sales per Stores Sales Sales per Store Sales per
Store ($M) Square Foot ($M) Square Foot
($) ($)
X 2.3
Abercombie & Fitch Polo Ralph Lauren

11. Top Competitors
GAP Inc:
• Market Cap: $14.14bn
American Eagle Outfitters, Inc:
• Market Cap: $3.15 bn
J. Crew Group, Inc:
• Market Cap: $2.79 bn

12. Top Competitors (Cont’d)
Phillips-Van Heusen Corp.:
• Market Cap: $3.97bn x 3 = RL
Jones Apparel Group:
• Market Cap: $1.21 bn
LIZ Claiborne Inc:
• Market Cap: $472.37 M x 25.5 = RL

13. State of the Industry
• Gap • Calvin Klein
• Calvin Klein • Diesel
• DKNY • Quicksilver
Clothing
Accessories
Apparel
Home
Fragrances
Furnishing
• Hermès • Haverty Furniture
• Cartier Companies
• Chanel • Pier 1 Imports
• Williams-Sonoma

14. Beta Analysis
+95.59%
+141.18
S&P500 Sector
%
Industry
ANF: β=0.68
β= 1.33 +14.29% β= 0.95
RL: β=0.86
+54.65%
+23.31%
+76.74%
ANF RL
β= 1.64 β= 1.52
+7.89%

15. Similar Marketing Strategies
 High Competition:
 Constant changes in products
 Constant design renewal (fashion perpetuity)
 Quality, design, brand, and image-focusing:
 products quality
 long-term similarity in design, style
 advertising similarity (magazines, e-marketing)
 seasonal marketing campaigns (Spring & Fall)
 large products availability
 corporate image
 brand affiliation
 Price segmentation:
 Ralph Lauren and Abercrombie & Fitch can both be competitors (or not)
according to the prices they practice onto the market

16. Product Differentiation
Home Line
Men’s, Women’s, & Kid’s Clothes Men’s Clothes
Fragrances
Watches
Accessories Fragrances Women’s
&
Kid’s
Clothes

17. Teen Market
 Establish fashion and overall trends and express specific lifestyles
 A representation of present/future society
 Big buying potential = discretionary income
 Spend household’s money / Influence households’ buying behaviors
 Importance of physical appearance
 Constancy (even progression) of teens’ spendings thanks to constancy
(even progression) of received ‘’income’’
 Constancy on same-targets spending (the 3 C’s)

18. Different Marketing Strategies
vs.
Similarity among time Continual
trademarks’ own styles
, keeping the
same style among time
Prices, styles, and consumer-focusing
Consumer-confidence focusing
Lowering the importance of Among trademarks diversification
advertising and basing its
marketing strategy Ambiance-similarity between
products, lifestyles, and shops
Keeping Ralph Lauren’s and
Less consumer-targeting among products
Much and shops design and lifestyles
product, style, and lifestyle orientations
through only 4
trademarks Advertising diversification
Through famous magazines &
fashion shows

19. Different Marketing Approaches
Low Higher average
Much higher importance given
to
(less
sophisticated in design)
Larger consumer
Smaller consumer targeting Larger of
trademarks
Very
(only 2.55% of A&F Bigger
stores are located outside the (8,940 doors around the world)
United States)

20. WHAT’S UP INSIDE OUR
COMPANIES?

21. Quarterly Loading of Sales and Income
Abercrombie & Fitch: Quarterly Sales as Percent of Year Sales Polo Ralph Lauren : Quarterly Sales as Percent of Year Sales
35% 32% 30%
27% 28% 28%
28% 24% 25% 25%
30% 25%
26% 25% 22%
24% 21%
25% 23% 22%
21% 20%
20%
2009 15% 2009
15%
2008 2008
10%
10%
5% 5%
Spread+11% Spread+7%
0% 0%
Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3
Abercrombie & Fitch: Quarterly Net Income as Percent of Polo Ralph Lauren: Quarterly Net Income as Percent of Year
Year Net Income Net Income
25000% 30% 45%
20000% 28% 18467% 40%
25% 40% 37%
15000% 25% 25%
15091% 35%
10000% 22%
20% 30% 26%
5000% 24% 23% 23%
25%
0% 2009 2009
15% 20% 16%
-5000% Q1 Q2 Q3 Q4 2008
-10407% 15% 11%
-10000% 2008
10% 10%
-15000%
5%
-20000% -23050% 5%
0%
-25000%
Q4 Q1 Q2 Q3
-30000% 0%

22. Comparative Income Statement
Horizontal Analysis X1.7
Abercrombie & Fitch Polo Ralph Lauren
($ Millions)
2009 % Change 2008 2009 % Change 2008
Net Sales 2,928.6 -15.9% 3,484.1 4,795.5 -0.6% 4,823.7
Licensing Revenue - - - 183.4 -6.0% 195.2
NET REVENUE 2.92,928.6
BN -15.9% 3.5 BN 54,978.9
3,484.1 BN -0.8% 5 BN
5,018.9
CGS 1,045.0 9.4 %
-9.4% 1,153.0 2,079.8 9.4 %
-9.1% 2,288.2
GROSS PROFIT 1.9 1,883.6 -20% 2.3 BN 2.9 BN 6.2 % 2.7 BN
BN -19.2% 2,331.1 2,899.1 6.2% 2,730.7
Selling, General & Administrative Expense 1,761.5 -2.8% 1,812.9 2,000.0 7.2% 1,865.0
Advertising Expense 17.7 -38%
-38.3% 28.7 157.0 -8.2% 171.0
Other Operating Income, Net -13.5 54.2% -8.8 - - -
Amortization of intangible assets - - - 21.7 7.4% 20.2
Impairment of assets - - - 6.6 -88%
-88.1% 55.4
Restructuring charges - - - 6.9 -70.8% 23.6
OPERATING INCOME 117 M -76% 498498.3 706706.9 19 %
117.9 -76.3% M M 18.7% 595595.5
M
Interest and other income, net 86%
-1.6 86.0% -11.4 44%
-12.4 -43.6% -22.0
Foreign Currency Gains (losses) - - - 237%
2.2 -237.5% -1.6
Interest Expense - - - 22.2 -16.5% 26.6
Equity in income (loss) of equity-method investees - - - 5.6 12.0% 5.0
INCOME BEFORE INCOME TAXES 120M -76% 510M 690M 17.3%
119.5 -76.6% 509.7 689.3 17% 587.5
587 M
Provision for Income Taxes X40% 40.6 -79.9% 201.5 209.8 15.6% 181.5
NET INCOME FROM CONTINUING OPERATIONS 78.953 -74.4% 308.2 0.0 - 0.0
79 M
NET LOSS FROM DISCONTINUED OPERATIONS (Net of000
X2 taxes) -78.7 M -119.1%
-78.699 -35.9 0.0 - 0.0
NET INCOME 0.2M -99% 272M 479479.5 18.1%
0.254 -99.9% 272.3 M 18% 406 M
406.0

23. Comparative Income Statement
Vertical Analysis
Abercrombie & Fitch Polo Ralph Lauren
$ Millions
2009 %V 2008 %V 2009 %V 2008 %V
Net Sales 2,928.6 100.0% 3,484.1 100% 4,795.5 100.0% 4,823.7 100%
Licensing Revenue - - - - 183.4 3.8% 195.2 4%
NET REVENUE 3BN
2,928.6 100.0% 3.5BN
3,484.1 100% 5BN
4,978.9 103.8% 5BN
5,018.9 104%
CGS 1,045.0 35.7% 1,153.0 33% 2,079.8 43.4% 2,288.2 47%
GROSS PROFIT 64%
1,883.6 64.3% 2,331.1 67%
67% 60%
2,899.1 60.5% 2,730.7 57%
57%
Selling, General & Administrative Expense 1,761.5 60.1% 1,812.9 52% 2,000.0 41.7% 1,865.0 39%
Advertising Expense 17.7 0.6% 28.7 1% 157.0 3.3% 171.0 4%
Other Operating Income, Net -13.5 0.5% -8.8 0% - - -
Amortization of intangible assets - - - - 21.7 0.5% 20.2 0%
Impairment of assets - - - - 6.6 0.1% 55.4 1%
Restructuring charges - - - - 6.9 0.1% 23.6 0%
OPERATING INCOME 117.9 4%
4.0% 498.3 14%
14% 706.9 15%
14.7% 595.5 12%
12%
Interest and other income, net -1.6 -0.1% -11.4 0% -12.4 -0.3% -22.0 0%
Foreign Currency Gains (losses) - - - - 2.2 0.0% -1.6 0%
Interest Expense - - - - 22.2 0.5% 26.6 1%
Equity in income (loss) of equity-method investees - - - - 5.6 0.1% 5.0 0%
INCOME BEFORE INCOME TAXES 119.5 4.1%
4.1% 509.7 15%
15% 689.3 14.5%
14.4% 587.5 12%
12%
Provision for Income Taxes 40.6 1.4% 201.5 6% 209.8 4.4% 181.5 4%
NET INCOME FROM CONTINUING OPERATIONS 78.953 2.7% 308.2 9% 0.0 0.0% 0.0 0%
NET LOSS FROM DISCONTINUED OPERATIONS (Net of taxes) -78.699 -2.7% -35.9 -1% 0.0 0.0% 0.0 0%
NET INCOME 0.254 0.0% 272.3 8% 479.5 10%
10.0% 406.0 8%
0% 8% 8%

24. One-Day Comparative Income
Statement
Abercrombie & Fitch Polo Ralph Lauren
($ Millions)
2009 % Sales 2009 % Sales
Net Sales 8.14 100.0% 13.32 100.0%
Licensing Revenue - - 0.51 3.8%
8.14 100.0% 13.83 103.8%
=
NET REVENUE
CGS 2.90 35.7% 5.78 43.4%
GROSS PROFIT 5.23 64.3%
64% 8.05 60.5%
60%
Selling, General & Administrative Expense 4.94 60.8% 5.99 45.0%
Advertising Expense 0.05 0.6% 0.44 3.3%
Other Operating Income, Net -0.04 -0.5% - -
Amortization of intangible assets - - 0.06 0.5%X3
Impairment of assets - - 0.02 0.1%
Restructuring charges - - 0.02 0.1%
OPERATING INCOME 0.33 4%
4.0% 1.96 15%
14.7%
Interest and other income, net 0.00 -0.1% -0.03 -0.3%
Foreign Currency Gains (losses) - - 0.01 0.0%
Interest Expense - - 0.06 0.5% X3.5
Equity in income (loss) of equity-method investees - - 0.02 0.1%
INCOME BEFORE INCOME TAXES 0.33 4.1%
4.1% 1.91 14.5%
14.4%
Provision for Income Taxes 0.11 1.4% 0.58 4.4%
NET INCOME FROM CONTINUING OPERATIONS 0.22 2.7% 0.00 0.0%
NET LOSS FROM DISCONTINUED OPERATIONS (Net of taxes) -0.22 -2.7% 0.00 0.0%
NET INCOME 0.00 0%
0.0% 1.33 10%
10.0%

25. Balance Sheet: Assets
Abercrombie & Fitch Polo Ralph Lauren
($ Millions) January 30, January 31, April 3, March 28,
%H % H2 % V %H % H2 % V
2010 2009 2010 2009
ASSETS
CURRENT ASSETS:
Cash and Equivalents $ 680.1 24%
24% $ 522.1 18% 30%
30% $ 563.1 12% 11% 17%
$ 481.2 11% 17%
Short-term Investments 32.4 1% - - - 584.1
584.1 13% 338.7 8% 72%
72%
Cash & Equivalents: Cash & Equivalents:-20%
Receivables, net of allowances 90.9 3%
-Bigger Cash53.1 2% 71%
Position 71% 381.9 8% 474.9 11% -20%
ST Investments:
-Net Increase yoy
Inventories 310.6 11%Comfort Investors-17%
 372.4 13% 504.0 11% 525.1 12% -4%
A/R: A/R:of Cash to invest 1%
-Lot
Deferred Tax Assets 44.6 2%
-98.5% North43.4 2% 3%
Inventories: America
103.0 2% 101.8 2%
Muni. Bonds (Tax free)
-Increased Cash Collection
Other Current Assets 77.3 -Econ. Situation 3% -5%
3% 80.9 139.7 3% 135.0 3% 3%
-Lowered Prices In June -Lower Wholesales
TOTAL CURRENT ASSETS 1,235.8 44% 1,072.0 38% 15% 2,275.8 49% 2,056.7 47% 11%
-Ruehl Loss
Property And Equipment, Net 1,244.0 44% 49% -11%
1,398.7 49% -11% 697.2 15% 651.6 15% 7%
Non-current Investments 141.8 5% 229.1 8% -38% 75.5 2% 154%
29.7 1% 154%
Deferred Tax Assets - P&E:
0% - 0% 0% 101.9 2% 102.8 2% -1%
-Ruehl Stores Closure 0% NC Investments:
Goodwill - 0% - NC Investments:
0% 986.6 21% 22%
966.4 22% 2%
-Depreciation-More cash -Lot of Cash to invest 
Intangible assets, net - 0% - 0% 0% 363.2 8%
Goodwill: 348.9 8% 4%
-Investors Confidence Muni. Bonds (Tax free)
Other Assets 200.2 7% 148.4 5% 35% 148.7 3% 200.4 5% -26%
-Continuous Acquisitions
TOTAL ASSETS $ 2,821.9 100% $ 2,848.2 100% -1% $ 4,648.9 100% $ 4,356.5 100% 7%
 Growth

26. Balance Sheet: Liabilities
Abercrombie & Fitch Polo Ralph Lauren
($ Millions)
January 30, 2010 % H January 31, 2009 % H2 % V April 3, 2010 % H March 28, 2009 % H2 % V
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES:
Account Payable $ 150.1 5% $ 149.8 5% 0% $ 149.8 3% $ 165.9 4% -10%
Accrued Expenses 246.3 9% 241.2 8% 2% 559.7 12% 472.3 11% 19%
Deferred Lease Credits 43.6 2% 42.4 1% 3% 0.0 A/P:
0% 0.0 0% -
Income Tax Payable 9.4 0% -43%
16.5 1% -43% 37.8 Special Inventory Mgmt
1% 35.9 1% 5%
TOTAL CURRENT LIABILITIES 449.4 16% 449.8 16% 0% 747.3 16% 674.1 15% 11%
Working Cap. = Income Tax Payable: Working Cap. =
Working Cap. = Working Cap. =
LONG-TERM LIABILITIES:
$786.5 Very Low Income
$622.2 $1,528.5 $1,382.6
Deferred Income Tax 47.1 2% 34.1 1% 38%
38% 126.0 3% 154.8 4% -19%
Deferred Lease Credits 212.1 8% 212.0 7% 0% 0.0 0% 0.0 0% -
Long-Term Debt 71.2 Deferred
3% Income4% -29%
100.0 Tax:
-29% 282.1 Deferred
6% Income Tax:
406.4 9% -31%
+26.4% +10.6%
Other non-current Liabilities 214.2 Payable Later 206.7 7%
8% 4% 376.9 Payable later
8% 386.1 9% -2%
LT Debt:
TOTAL LONG-TERM LIABILITIES $ 544.6 19% $ 552.8 19% -1% $ 785.0 17%
-EUR Debt (€90.8M -17%
$ 947.3 22%
SHAREHOLDER'S EQUITY:
Additional paid-in-capital $ 339.5 12% $ 328.5 12% 3%
Add. Paid In Capital: : 2009)12%
repurchased, July
Treasury Stocks 25%
$ 1,243.8 27% $ 1,108.4
Accumulated Other Comprehensive Loss, Share Price Growth
Buyback  Stock price ↑
-9.0 0% -22.7 -1% -60% 154.0 3% 126.8 3% 21%
Income
Retained Earnings 2,183.7 77% Other Comp. Loss:
77%
Acc. 2,244.9 79% -3% 2,915.3 Other Comp. Income:
Acc. 63%
63% 2,465.5 57% 18%
57%
Common Stocks 1.0 0% 1.0 0% 0% 1.2 0% 1.1 0% 9%
Treasury Stocks RE: -Derivatives -706.2 -25% -3%
-687.3 -24%
-Forex :Hedges -966.7 -22%
RE
-1,197.7 -26% 24%
TOTAL SHAREHOLDERS’ EQUITY
-Forex
-Conservative
1,827.9 65% Policy
1,845.6 65% -1%
-A-f-Sale Invest.
-Conservative Policy 14%
3,116.6 67% 2,735.1 63%
TOTAL LIABILITIES AND SHAREHOLDERS’ -To buy treasury stocks
$ 2,821.9 100% $ 2,848.2 100% -1% $ 4,648.9 100% $ 4,356.5 100% 7%
EQUITY

27. Long-term Debt
Improving
($ Millions)
Abercrombie & Fitch Polo Ralph Lauren
2009 2008 2007 2006 2005 2009 2008 2007 2006 2005
Cash 522 649 530 462 50.68 820 626 564 286 344
Equity 64.80 63.03 62.51 55.60 49.66 62.78 54.74 62.13 66.33 61.46
Lt debt 3.5 0 0 0 0 9.33 10.83 10.61 0 10.67
Beta 1.68 1.57
LT Debt to Equity Ratio 5.4%
5.4% 0.0% 0.0% 0.0% 0.0% 14.9%
14.9% 19.8% 17.1% 0.0% 17.4%
($ Millions) American Eagle Outfitters, Inc. (AEO). Gap
2009 2008 2007 2006 2005 2009 2008 2007 2006 2005
Cash 484 620 827 752 131 1.715 1.901 2.6 2.987 2,035
Equity 71.75 71.77 71.31 71.97 74.48 58.00 54.53 60.56 61.50 49.12
Lt debt 0 0 0 0 0 0 0.64 2.20 5.82 18.77
Beta 1.18 1.18
LT Debt to Equity Ratio 0%
0.0% 0.0% 0.0% 0.0% 0.0% 0%
0.0% 1.2% 3.6% 9.5% 38.2%

28. 10-Year Revenue
Abercrombie & Fitch Polo Ralph Lauren
$500 $500
$450 $450
+201% +714%
$400 $400
-99.8%
$350 $350
$300 $300
$250 $250
$200 $200
$150 $150
$100 $100
$50 $50
$0 $0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

29. Comparative Cash Flow
ANF 2009 RL 2009 ANF 2009 RL 2009
Net Income 0.25 479.50 Investing Activities
Operating Activities: Short Term Investment -32.36 -245.40
Depreciation Expense 238.75 181.20 Property and Equipment -84.12 -226.80
A/R -37.76 93.00 Non-Current Investment 87.29 -45.80
Inventories 61.78 21.10 Deferred Tax Asset 0.00 0.90
Deferred Tax Assets -1.16 -1.20 Goodwill 0.00 -20.20
Other Current Assets 89.6% 3.65 -4.70 Intangible Assets 0.00 -14.30
A/P 0.38 -16.10 Other Assets -51.77 51.70
Accrued Expense 5.06 87.40 Long-Term Debt -28.787 -124.3
Deferred Lease Credit 1.31 0.00 Other non-current Liabilities 7.427 -9.2
Income Tax Payable -7.10 1.90 Net Cash From Investing Activities -102.32 -633.40
Deferred Income Taxes 13.1 -28.8
Net Cash From Operating Financing Activities
Activities 278.2 813.30 Additional Paid-in Capital
278.22 813.3 10.97 135.40
Accumulated Other Compr. Gain 13.71 27.20
Common Stocks 0.00 0.10
Free Cash-Flow: Free Cash-Flow: Treasury Stocks 18.91 -231.00
-$100.8M $313.5M
Dividends -61.50 -29.70
Net Cash From Financial Activities -17.92 -98.00
Cash Available After Net increase in Cash 157.99 81.90
Assets Maintenance Cash at Beginning 522.12 481.20
Cash at End 680.11 563.10

30. Comparative 10-Year Cash Flow
$900 $818.0
$800
$700
$582.0
$600
$491.0
$500 $426.0 $454.0 $414.0
$400 Free Cash Flow USD
$293.0 $282.0
$300 $233.0 $241.0 Operating cash flow
$200.0 $183.0 $197.0 $179.0
$200 $151.0 $123.0
$107.0
$100
$0
-$100 -$2.0
2001 2003 2005 2007 2009
$900
$796.0 $774.0
$800
$695.0
$700 $612.0 $589.0
$600
$449.0 $478.0
$500
$382.0 Free Cash Flow USD
$400
$294.0 $269.0 $291.0
$300 $206.0 $211.0$208.0
$170.0 Operating cash flow
$200
$100.0 $88.0
$100
$0
-$100 -$5.0
2001 2003 2005 2007 2009

31. DOL / DFL / DTL
4.67 -29.54
-0.59
6.09
1.31 0.02

32. Lease Financing
1,200 900
800
1,000
700
800 600
500
600
400
400 300
200
200
100
0 0
Operating Leases ($M)
Operating Leases ($M)
Capital Leases ($M)

33. Leasehold Improvements ($M)
1,143.7
2008
643.3
1,205.3
2009
700.0
0 200 400 600 800 1,000 1,200 1,400

34. Capital Financing with Lease as a
Percentage of Total Assets
12.0%
11.1%
10.1%
10.0%
8.0%
6.3%
6.0% 5.6%
4.0%
2.0%
0.0%
2008 2009 2008 2009

35. Individual Ratios
2 Years – Abercrombie & Fitch
2009 2008 Better / Worse
Liquidity
Quick: Current 2.75 2.38 Better
Inv. -17% Quick 2.06 1.56 Better
Profitability
Profitability: ROA 0.01% -51% 9.56% Worse
ROE 0.01% 14.75% Worse
NI ≈ 0 ROS 0.01% 7.81% Worse
A/R Turnover: Turnover
A/R +71% Receivables Turnover 32.23 65.60
+69%
Worse
32.23 65.60
Asset Turnover 1.04 1.22 Worse
Inventory Turnover 9.43 9.36 Better
Leverage
Leverage: TIE 0.00 +5.68 days 0.00 -
D/A 35.22% 35.20% Worse
TA/TL/TE Constant D/E 54.38% 54.32% Worse 6 Better
DSO: Cash Management +2.49 days
DSO 11.17
11.17 5.49
5.49 Worse
A/R ↑ ICD 38.19 38.48 Better
+ 81% 13 Worse
APD: APD 18.46 15.47 Worse
CCC 30.90
30.90 28.50
28.50 Worse
+2.99 days
Market Cap.: Dividends
Market Cap. $2.72 Billion
2.72Bn $1.50 Billion
1.50Bn Better
Out. Shares ↑ EPS $3.05 $5.20 Worse
Shares Price ↑ Payout Ratio 23%
23% 13%
13% Better
Productivity
Sales/Employee $36,608 $43,551 Worse
Ni/Employee $3 $3,403 Worse

36. Individual Ratios
2 Years – Polo Ralph Lauren
2009 2008 Better / Worse
Liquidity
Quick: Current 3.05 +11% 3.05 No Change
Inv. -4% Quick 2.37 +4% 2.27 Better
Profitability: Profitability +19%
NI +18% ROA 10.31% 9.32% Better
ROE 15.39% +24% 14.84% Better
-10.2%
ROS 10.00% 8.42% Better
Turnover +85%
A/R Turn.: Receivables Turnover 12.56
12.56 +19% 10.16
10.16 Better
Asset Turn.:
A/R -20% Asset Turnover 2.11
2.11 2.35
2.35 Worse
+11%
CA↑  STI
D/A: Inventory 9.51 9.19 Better
TIE: Leverage -17%
More Debt FinancingTIE 31.84
31.84 26.82
26.82 Better
EBIT ↑ 31.84 26.82
D/A 32.96% 37.22% Worse
D/E 49.17
49.17% 59.28
59.28% Better 15 Better
Cash Management
DSO 28.67 35.44 Better
ICD 37.84 39.19 Better
+94%
APD 11.25 12.38 Better 4 Worse
CCC 55.26 62.25 Better
Dividends
Market Cap. 8.47Bn
$8.47 Billion 4.36Bn
$4.36 Billion Better
EPS $4.01 $3.99 Better
Payout Ratio 17% 18% Worse
Productivity
-0.6%
Sales/Employee (M) $ 252,395 $ 253,879 Worse
Ni/Employee (M) $ 25,237 +18% $ 21,368 Better

37. Comparative Ratios - 2009
ANF RL
Liquidity
Current 2.75 W 3.05 B
Quick 2.06 W 2.37 B
Profitability
ROA 0.01% W 10.31% B
ROE 0.01% W 15.39% B
ROS 0.01% W 10.00% B
Turnover
Receivables Turnover 32.23 B 12.56 W
Asset Turnover 1.04 W 2.11 B
Inventory Turnover 9.43 W 9.51 B
17 Worse
Leverage
TIE 0.00 B 31.84 W
D/A 35.22% W 32.96% B
D/E 54.38% W 49.17% B
Cash Management
DSO 11.17 W 28.67 B 17 Better
ICD 38.19 W 37.84 B
APD 18.46 W 11.25 B
CCC 30.90 W 55.26 B
Market Value
Market Cap. $5.17 Billion W $12.08 Billion B
EPS 3.05 W 4.01 B
Payout Ratio 23% B 17% W
Productivity
Sales/Employee $ 154,138 W $ 252,395 B
Ni/Employee $ 13 W $ 25,237 B

38. Reuters Ratio
Abercrombie Polo Ralph % Difference
% Difference Sector % Difference
& Fitch Lauren ANF/RL
Valuation Ratios
P/E Ratio 44.60 560%
560% 7.97 261%
261% 20.81 214% 214%
P/E High 35.40 83% 42.81 55% 23.66 150%
P/E Low 5.17 50% 10.42 106% 11.05 47%
Price to Sales 1.59 162% 0.98 226% 2.21 72%
Price to Book 2.81 426% 0.66 547% 3.61 78%
Price to Tangible
Book 2.80
350%
350% 0.80
760%
760% 6.08 46%
217%
Price to Cash
Flow 14.93 407% 3.67 420% 15.41 97%
Price to Free Cash
Flow 52.14
420%
420% 12.41
255%
255% 31.62 165%
165%
Dividends
Payout Ratio 51.80 620%
620% 8.36 117%
86% 7.15 724% 724%
Financial Strength
Quick Ratio 1.57 291%
291% 0.54 424%
424% 2.29 69% 146%
Current Ratio 2.51 369% 0.68 466% 3.17 79%
LT Debt to Equity 4.42 410%
24% 18.15 225%
44% 8.06 55% 182%
Total Debt to
739% 405% 182%
Equity 4.42 14% 32.68 25% 8.06 55%
Interest Coverage N/A - 0.17 23 971%
23 971% 40.75 N/A

39. Reuters Ratio (Cont’d)
%
Abercrombie & % %
Sector Polo Ralph Lauren Difference
Fitch Difference Difference
ANF/RL
Profitability Ratios
Gross Margin 63.76 797%
797% 8.00 740%
740% 59.19 108% 108%
Gross Margin (5 Yr. Avg) 66.46 277%
277% 23.99 230%
230% 55.09 121% 121%
EBITD Margin 12.61 - - - 19.57 64% 155%
EBITD Margin (5 Yr. Avg) 21.14 207%
207% 10.22 169%
169% 17.29 122% 122%
Operating Margin 5.61 -357%
-357% -1.57 -1029%
-1029% 16.15 35% 288%
Operating Margin (5 Yr. Avg) 16.24 309%
309% 5.26 259%
259% 13.63 119% 119%
Pre-Tax Margin 5.51 -353%
-353% -1.56 -1014%
-1014% 15.82 35%
Pre-Tax Margin (5 Yr. Avg) 16.57 326% 5.08 263% 13.38 124%
Net Profit Margin 3.65 -169%
-169% -2.16 -506%
-506% 10.92 33% 302%
Net Profit Margin (5 Yr. Avg) 10.27 302%
302% 3.40 259%
259% 8.80 117% 117%
Effective Tax Rate 33.78 295% 11.44 271% 30.95 109%
Effective Tax Rate (5 Yr. Avg) 38.00 117% 32.59 105% 34.26 111%
Efficiency
Revenue/Employee $ 361,708 3% $11,580,092 3% $ 293,184 123%
Net Income/Employee $ 13,191 3% $404,449 8% $ 32,026 41%
Receivable Turnover 41.67 513%
513% 8.13 228%
228% 18.54 225% 225%
Inventory Turnover 2.75 102%
102% 2.69 136%
136% 3.66 75% 133%
Asset Turnover 1.14 633%
633% 0.18 639%
639% 1.15 99% SAME
Management Effectiveness
Return on Assets 4.17 673%
673% 0.62 2032%
2032% 12.60 33% 302%
Return on Assets (5 Yr. Avg) 14.40 429%
429% 3.36 312%
312% 10.47 138% 138%
Return on Investment 5.08 564%
564% 0.90 1667%
1667% 15.00 34% 296%
Return on Investment (5 Yr. Avg) 18.24 308%
308% 5.92 220%
220% 13.02 140% 140%
Return on Equity 6.55 372%
372% 1.76 1065%
1065% 18.75 35% 286%
Return on Equity (5 Yr. Avg) 23.39 254%
254% 9.20 184%
184% 16.92 138% 138%

40. 10-Year Profitability
Abercrombie & Fitch: Gross Margin Polo Ralph Lauren: Gross Margin
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
50% 25%
45%
40% 20%
35%
30% 15%
ROA (%) ROA (%)
25%
ROE (%) ROE (%)
20% 10%
ROS (%) ROS (%)
15%
10% 5%
5%
0% 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

41. 10-Year Financial Health
2.5 2.5
-24% +21%
-36% -23%
2 2
Financial
1.5 Financial 1.5 Leverage
Leverage
Debt/Equity Debt/Equity
1 1
0.5 0.5
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
3 3.5
+45% -44% +74% -21%
2.5 3
+96% -53% +97% +87%
2
2.5 -36%
Current
2
Current Ratio
1.5 Ratio
1.5 Quick
1 Quick -22% Ratio
Ratio 1
-42%
0.5 0.5
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

42. 10-Year Efficiency
Days Inventory DSO Payable Period CCC
140
120
100
80 Post-crisis
60
40 Pre-crisis
20
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Days Inventory DSO Payable Period CCC
160
140
120
100
80
60
40
20
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

43. 10-Year Efficiency (Cont’d)
8 200
7 180
160
6
140
5 Inventory Turnover
120
4 100 Asset Turnover
3 80
Receivables
60
2 Turnover
40
1 20
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
14
12
10
8
Receivables Turnover
6 Inventory Turnover
Asset Turnover
4
2
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

44. Dupont Equation
Abercrombie & Fitch Polo Ralph Lauren
($ Millions) ($ Millions)
2009 2008 2009 2008
Net Income 0.25 272.26 Net Income 479.50 406.00
Sales 2,928.63 3,484.06 Sales 4,978.90 5,018.90
Total Assets 2,821.87 2,848.18 Total Assets 4,648.90 4,356.50
Owner's Equity 1,827.92 1,845.58 Owner's Equity 3,116.60 2,735.10
ROS x TAT x EM = ROE
NI/SALES SALES/TA TA/Stockholders' Equity NI/Stockholders' Equity
2008 7,81 1,22 1,54 14,8
ANF 2009 0 1,04 1,54 0,0
Change -100% -15% 0% -100%
2008 8,09 1,15 1,59 14,8
RL 2009 9,63 1,07 1,49 15,4
Change 19% -7% -6% 4%

45. DuPont Equation Analysis
Abercrombie & Fitch Polo Ralph Lauren
NI : -100% NI : +19% Sales : -0.7%
Ratios VariationsSales : -15.9%
Status Ratios Variations Status
ROS Worse TAT :ROS
-7% Better
TA : +7%
TAT : -15% TA : -1%
TAT Worse EM :TAT
-6% Worse
OE : +13.95%
EM : 1.54 => 0%
EM ROE : - 100% Worse EM ROE : +4% Better
ROE Worse ROE Better

46. Capital Expenditures
$M (except %) Long-Lived Assets Sales Sales % to Long-Lived Assets Change in Sales % Assets
Segments 2009 2008 2009 2008 2009 2008 % Millions of $
United States 1,138 1,372 2,566 3,220 225.5% 234.7% -3.9% -44.7
International 194
194 8080 363 264
363 264 187.1%
187.1% 330.0%
330.0% -43.3%
-43.3% -84.0
Total 1,332 1,452 2,929 3,484 219.9% 239.9% -8.4% -111.3
+142.5% +37.5% -1429 bps
$M (except %) Long-Lived Assets Sales Sales % to Long-Lives Assets Change in Sales % Assets
Segments +25.4%
2009 2008 2009 2008 2009 2008 % Millions of $
United States &
441.6 452.8 3,462.3 3,589.3 784.0% 792.7% -1.1% -4.8
Canada
Europe 166.4 132.7
166.4 132.7 1,052.6 1,028.4 632.6% 775.0% -18.4% -30.6
+29.4%
Asia 84.1 60.9
84.1 60.9 459.7 392.6 546.6% 644.7% -15.2% -12.8
Other regions 5.1 5.2 4.3 8.6 84.3% 165.4% -49.0% -2.5
Total 697.2 651.6 4,978.9 5,018.9 714.1% 770.2% -7.3% -50.8
+38.0%

47. ONCE UPON A TIME ON THE STOCK
MARKET…

48. Comparative Stock Prices
Over 1 Year
S&P500 Driven
RL: $250M Buyback

49. Correlation Coefficients
Over 2 Years
S&P500 ANF RL AEO Gap
S&P 500 100%
ANF 75.58% 100%
RL 68.82% 56.85% 100%
AEO 54.51% 39.85% 59.79% 100%
Gap 59.46% 71.83% 62.02% 47.69% 100%

50. ERR / RRR
Required Rate of Return (%) The Security Market Line (SML)
45.0%
ERR1
Growth 42% to 36% ERR3
40.0% P0= $ 57 ERR2
35.0%
BUY Div. $0.70 ERR4
30.0%
25.0%
ERR1 SML
ERR3
ANF
20.0% Growth 22% to 13%
RL
P0= $ 124
15.0% Div.: $0.125 ERR2
ERR4
10.0%
5.0%
SELL
0.0%
0 0.5 1 1.5 2 2.5 Risk, β

51. Analyst Estimates
(Yahoo)
35
analysts Current Last Two Months Three Months
Month Month Ago Ago
Strong Buy 11
11 11 11 9
Buy 9
9 8 7 8
Hold 14
14 15 15 14
Underperform 0 0 0 0
Sell 0 0 0 1
15
analysts
Current Last Two Months Three Months
Month Month Ago Ago
Strong Buy 1 1 0 1
Buy 6
6 6 6 6
Hold 7
7 7 8 8
Underperform 1 2 2 2
Sell 0 0 0 0

52. Analyst Estimates (Cont’d)
(Morningstar)
ANF Industry RL
5 Y Growth 20.3%
20.3% 15.4 9%
9%
Forward P/E 14.3
14.3 - 19
19.0
Earning Yield 2.3% 2.3
Dividend Yield 1.2
Cash Return 3.5
S&P500 Earning Yield 6.2
S&P500 Dividen Yield 2.1
30-Year T-Bond Yield 4.6
0 2 4 6 8
Earning Yield 4.9% 4.9
Dividend Yield 0.3
Cash Return 3.9
S&P500 Earning Yield 6.2
S&P500 Dividen Yield 2.1
30-Year T-Bond Yield 4.6
0 2 4 6 8

53. Dividend History
“Since 2003, the Company has
maintained a regular quarterly cash
“A quarterly dividend of $0.175 per
dividend program on its common stock.
share, was paid in
March, June, September and On November 4, 2009,
December of Fiscal 2007, Fiscal the Company’s Board of Directors
approved an increase to the Company’s
2008 and Fiscal 2009. A&F expects
quarterly cash dividend on its common
to continue to pay a
stock from $0.05 per
dividend, subject to the Board of
Directors’ review of the Company’s share to $0.10 per share.
cash position and results of Approximately $30 million was
recorded as a reduction to retained
operations.”
earnings during Fiscal 2010 in
connection
with the Company’s dividends.”

54. DPS vs. Competitors
2009
0.7 0.2
0.2
0.45 0.15
0.4 0.23
0 0.2 0.4 0.6 0.8 0 0.2 0.4 0.6 0.8

55. 6-year DPS Evolution
Abercrombie & Fitch Polo Ralph Lauren 5-year
Polo Ralph Lauren
0.8 Annual Growth Rates
0.7 0.7 0.7 0.7 0.7 0.7
0.6 0.6
Dividend
8.45%
8,45%
0.5
0.4
Correlation Coefficient ≈ 1
0.3 0.3
0,3
0.2 0.2 0.2 0.2 0.2 0.2 8.54%
Revenue 8,54%
0.1
0
2005 2006 2007 2008 2009 2010 0% 2% 4% 6% 8% 10%

56. Treasury Stocks
(2 Years Comparison)
2009 2008
(Millions) # Shares
# Shares $ % $ (Millions) %
(Thousands)
Outstanding
87.99 90.5 85.2% 87.64 89.0 84.8%
Shares
Treasury Stocks 15 687 14.8% 16 706 15.2%
Total 103 100.0% 103 100.0%
14.8%
15.2%
Outstanding Shares
Treasury Stocks
84.8%
85.2%
2008
2009

57. Treasury Stocks
(2 Years Comparison) (Cont’d)
2009 2008
(Millions) # Shares
# Shares $ % $ (Millions) %
(Thousands)
Outstanding
98.2 1 83.4% 99.2 1 85.8%
Shares
Treasury Stocks 19.6 1.2 16.6% 16.4 1 14.2%
Total 118 100.0% 116 100.0%
16.6%
14.2%
Outstanding Shares
Treasury Stocks
85.8%
2008 83.4%
2009

58. FURTHER INVESTIGATIONS

59. Abercrombie & Fitch’s Employee
Savings Plan
Code Section 401(k) feature retirement savings plan
All US associates eligible (low participation rate)
‘’ The Company offers a life insurance benefit for all full-time employees equal to 2-times
base salary. For Vice Presidents and above, the death benefit is set at four-times base salary. ‘’
The Company’s contributions are based on a percentage of associates’ eligible annual
compensation.
‘’ Allows executive officers to defer a portion of their compensation over-and-above the
Internal Revenue Service ‘’
‘’ For Vice Presidents and above, the Company offers a life insurance benefit set at 4-times
base salary. ‘’
Matching and Retirement Contributions
Allows participants the opportunity to save and invest their own money as a
percentage of their pay

60. Abercrombie & Fitch
Chief Executive Officer Supplemental Executive
Retirement Plan (SERP)

61. Polo Ralph Lauren
Employee Benefit Plans
Profit Sharing Retirement Savings Plans
(Non-Qualified) Supplemental Retirement Plan
amended for Fiscal 2009  $18M to affected participants during 1st Q. 2010

62. Polo Ralph Lauren
Employee Benefit Plans (cont’d)
Deferred Compensation Plans
$3M Fiscal 2009 + Fiscal 2010
Union Pension Plan

63. Risks
Abercrombie & Fitch

64. Risks
Polo Ralph Lauren
The loss of the services
Financial instability
Economic crisis’ effects
exclusive relationship with certain customers

65. Insider/Institutional Trading
Percentage and Names
Abercrombie & Fitch Polo Ralph Lauren
Breakdown Breakdown
% of Shares Held by All Insider and 5% % of Shares Held by All Insider and 5%
Owners: 5% Owners: 0%
% of Shares Held by Institutional & Mutual % of Shares Held by Institutional & Mutual
Fund Owners: 100% Fund Owners: 104%
% of Float Held by Institutional & Mutual Fund % of Float Held by Institutional & Mutual
Owners: 106% Fund Owners: 104%
Number of Institutions Holding Shares: 309 Number of Institutions Holding Shares: 304
Top Institutional Holders % Out Top Institutional Holders % Out
FMR LLC 11.05 FMR LLC 10.99
Columbia Wanger Asset Management, L.P. 6.49 Jennison Associates LLC 9.19
Vanguard Group, Inc. (The) 4.99 Lone Pine Capital, LLC 5.31
Bank of New York Mellon Corporation 4.13 Vanguard Group, Inc. (The) 4.98
Pennant Capital Management, LLC 3.83 Wells Fargo & Company 4.76
State Street Corporation 3.83 State Street Corporation 3.51
Massachusetts Financial Services Co - Other 3.82 Artisan Partners Limited Partnership 3.3
Orbis Holdings Ltd 3.33 Goldman Sachs Group Inc 3.02
Maverick Capital Ltd. 2.54 Franklin Resources, Inc 2.56
BlackRock Institutional Trust Company, N.A. 2.46 BlackRock Institutional Trust Company, N.A. 2.41

66. Zones of Discrimination:
Z > 2.6 -“Safe” Zone
Altman Z Score 1.1 < Z < 2.6 -“Grey” Zone
Z < 1.1 -“Distress” Zone
+64,74%
+477%
-76,55% +17.33%
ANF RL
In Millions ($), except Share Prices
2009 2008 2009 2008
EBIT 119.5 119.5 509.6
+212% 509.6 689.3
689.30 587.5
587.50
Total Assets 2,821.9
2,821.9 2,848.2 4,648.9
4,648.90 4,356.50
Net Sales 2,928.6 3,484.1 4,795.50 4,823.70
Weighted Shares Outstanding 88.0 87.6 98.20 99.20
Share Price $ 30.9 $ 17.1 $ 86.24 $ 43.95
Market Capitalization 2,715.2
2,715.2 1,495.1 8,468.77
8,468.77 4,359.84
Current Assets 1,235.8 1,072.0 2,275.80 2,056.70
Current Liabilities 449.4 +1.88449.8 747.30 674.10
Long-Term Liabilities 544.6 552.8 +0.27
785.00 947.30
Total Liabilities 993.9 1,002.6 1,532.30 1,621.40
Retained Earnings 2,183.7 2,244.9 2,915.30 2,465.50
Working Capital 786.5 622.2 1,528.50 1,382.60
Z Score 4.23 4.23 4.07 4.07 6.11
6.11 4.34
4.34