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RESULTS OF OPERATIONS Net sales for the fourth quarter of the 2002 fiscal year were $534.5 million, an increase of 15% from $466.6 million for the fourth quarter of 2001. Operating income for the fourth quarter of 2002 was $149.6 million compared to $128.6 million in 2001. A&F recorded its 42nd consecutive com- parable quarter of record earnings as net income increased to $92.8 million in the fourth quarter of 2002 as compared to $79.2 million in 2001. Earnings per diluted share for the fourth quarter of 2002 were $.93, up 19% from $.78 in 2001. 

Net sales for the 2002 fiscal year reached $1.6 billion, an increase of 17% over fiscal 2001 net sales of $1.4 billion. Operating income for the 2002 fiscal year increased 15% to $312.6 million from $271.5 million in 2001. Net income per diluted share was $1.94 for the 2002 fiscal year compared to $1.65 in 2001, an increase of 18%. 

The following data represent the Company’s consolidated statements of income for the last 3 fiscal years expressed as a per- centage of net sales: 

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## MANAGEMENT’S DISCUSSION AND ANALYSIS 

## Abercrombie &Fitch 

FINANCIAL SUMMARY The following summarized financial data compares the 2002 fiscal year to the comparable periods for 2001 and 2000: 

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NET SALES: FOURTH QUARTER 2002 Net sales for the fourth quarter of fiscal 2002 were $534.5 million, up 15% over 2001’s fourth quarter net sales of $466.6 million. Comparable store sales decreased 4% for the quarter. 

By merchandise concept, comparable store sales (“comps”), defined as sales in stores that have been open for at least one year, for the quarter were as follows: Abercrombie & Fitch’s comps declined in the mid-single digits, with womens posting a positive comp and mens a negative comp. Comps for the kids’ business, abercrombie, were similar to the adult business with girls posting a positive comp increase during the quarter and boys a negative comp. Comps in Hollister were positive in double digits. 

