PROBLEM

Abercrombie & Fitch Inc. is a very famous retailer of clothing and related accessories. Access Abercrombie & Fitch Company's most recent Annual Report by following these steps: go to www.sec.gov and click on the "Search for Company Filings" under "Filings and Forms (EDGAR)". Click on "Companies and Other Filers" and key in "Abercrombie & Fitch" (don't include the quotes) in the Company Name box. Key in "10-K" (do not use quotes) in the "Form Type" box to the right of the page and click "Retrieve Filings." Click on the most recent 10-K form that was filed with the SEC. Now click on "Document 1" to view Abercrombie & Fitchs' Annual Report for the 2003 fiscal year.

1. Describe the Abercrombie & Fitch markets.
2. What inventory method does Abercrombie & Fitch Inc. use? (Hint: See the notes to the financial statements)
3. Compute Abercrombie & Fitch's gross margin and gross margin ratio for the fiscal year ending Feb 1, 2003.
4. Compute Abercrombie & Fitch's inventory turnover and days' sales in inventory for the fiscal year ending Feb 1, 2003.