REVENUE RECOGNITION
Disaggregation of revenue

All revenues are recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income. For information regarding the disaggregation of revenue, refer to Note 18, “SEGMENT REPORTING.

Contract liabilities

The following table details certain contract liabilities representing unearned revenue as of January 31, 2026, February 1, 2025 and February 3, 2024:
(in thousands)January 31, 2026February 1, 2025February 3, 2024
Gift card liability (1)
$48,057 $45,364 $41,144 
Loyalty programs liability36,878 32,199 27,937 
(1)Includes $24.2 million,$19.8 million and $20.0 million of revenue recognized during Fiscal 2025, Fiscal 2024 and Fiscal 2023 , respectively, that was included in the gift card liability at the beginning of February 1, 2025 and February 3, 2024, respectively.


The following table details recognized revenue associated with the Company’s gift card program and loyalty programs for Fiscal 2025, Fiscal 2024, and Fiscal 2023:
(in thousands)Fiscal 2025Fiscal 2024Fiscal 2023
Revenue associated with gift card redemptions and gift card breakage
$129,342 $141,380 $112,749 
Revenue associated with reward redemptions and breakage related to the Company’s loyalty programs
74,850 65,776 56,406 

Refer to Note 2, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition,” for discussion regarding significant accounting policies related to the Company’s revenue recognition.
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Historical Timeline

Fiscal YearFiled
2026Mar 26, 2026Showing above
2025Mar 31, 2025
2024Apr 1, 2024
2023Mar 27, 2023
2022Mar 28, 2022
2021Mar 29, 2021
2020Mar 31, 2020

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.