Abercrombie &Fitch CHAIRMAN’S LETTER I’m very pleased with the performance of our business. Despite a very challenging environ- ment in 2002, we once again achieved record sales and income. Our earnings per share increased 18% for the year and we completed our forty-second consecutive quarter of profit improvement. Our operating profit margin, at nearly 20% of sales, remains one of the highest in the industry. Most importantly, in 2002 we maintained and enhanced the quality of our brands. Our success comes from total commitment to the long-term health of our brands and the  bottom line. We continue to target and attract the best and brightest in the industry, and the strengths and talents of our associates are our biggest assets. We continued to grow our business very rapidly in 2002, opening a total of 112 new stores. We ended the year with 597 stores across all three of our brands. I’m very excited about the progress we have made in Hollister, our newest brand.  We opened 60 new stores in 2002, reaching 93 stores at the end of the year. Hollister continues to gain momentum and is clearly one of the most exciting new brands in the industry. In 2002 we achieved significant improvement in Hollister’s sales productivity and gross  margin, and the business is now making a solid profit contribution. For our total business we plan to open 110 new stores in 2003, and at least 70 of the openings will be Hollister stores. We view Hollister as potentially a 600-800 store business. We remain focused on growing the women’s and girl’s businesses in our Abercrombie  1