<PAGE>   1


                                                                    EXHIBIT 10.3

                             ABERCROMBIE & FITCH CO.
                   1996 STOCK PLAN FOR NON-ASSOCIATE DIRECTORS
                               (1998 RESTATEMENT)
                [REFLECTS AMENDMENTS THROUGH DECEMBER 7, 1999 AND
              TWO-FOR-ONE STOCK SPLIT DISTRIBUTED JUNE 15, 1999 TO
                     STOCKHOLDERS OF RECORD ON MAY 25, 1999]



1.       PURPOSE

         The purpose of the Abercrombie & Fitch Co. 1996 Stock Plan for
Non-Associate Directors (1998 Restatement) (the "Plan") is to promote the
interests of Abercrombie & Fitch Co. (the "Company") and its stockholders by
increasing the proprietary interest of non-associate directors in the growth and
performance of the Company by granting such directors options to purchase shares
of Class A Common Stock, par value $.01 per share (the "Shares") of the Company
and by awarding Shares to such directors in respect of a portion of the Retainer
(as defined in Section 6(b)) payable to such directors.

2.       ADMINISTRATION

         The Plan shall be administered by the Company's Board of Directors (the
"Board"). Subject to the provisions of the Plan, the Board shall be authorized
to interpret the Plan, to establish, amend, and rescind any rules and
regulations relating to the Plan and to make all determinations necessary or
advisable for the administration of the Plan; provided, however, that the Board
shall have no discretion with respect to the selection of directors to receive
options, the number of Shares subject to any such options, the purchase price
thereunder or the timing of grants of options under the Plan. The determinations
of the Board in the administration of the Plan, as described herein, shall be
final and conclusive. The Secretary of the Company shall be authorized to
implement the Plan in accordance with its terms and to take such actions of a
ministerial nature as shall be necessary to effectuate the intent and purposes
thereof. The validity, construction and effect of the Plan and any rules and
regulations relating to the Plan shall be determined in accordance with the laws
of the State of Delaware.

3.       ELIGIBILITY

         The class of individuals eligible to receive grants of options and
awards of Shares in respect of the Retainer under the Plan shall be directors of
the Company who are not associates of the Company or its affiliates ("Eligible
Directors"). Any holder of an option or Shares granted hereunder shall
hereinafter be referred to as a "Participant".

4.       SHARES SUBJECT TO THE PLAN

         Subject to adjustment as provided in Section 7, an aggregate of 364,000
Shares shall be available for issuance under the Plan. The Shares deliverable
upon the exercise of options or in respect of the Retainer may be made available
from authorized but unissued Shares or treasury Shares. If any option granted
under the Plan shall terminate for any reason without having been exercised, the
Shares subject to, but not delivered under, such option shall be available for
issuance under the Plan.

5.       GRANT, TERMS AND CONDITIONS OF OPTIONS

         (a) On the date an Eligible Director is first elected to the Board,
such Eligible Director shall be granted an option to purchase 10,000 Shares,
provided, however, in respect of the first election to the Board of Eligible
Directors prior to the Effective Date, such option shall be granted on the
Effective Date.

         (b) Each Eligible Director on the first business day of a fiscal year
of the Company beginning after the Effective Date (as defined in Section 11),
will be granted on such a day an option to purchase 2,000 Shares.


<PAGE>   2

         (c) The options granted will be nonstatutory stock options not intended
to qualify under Section 422 of the Internal Revenue Code of 1986, as amended
(the "Code") and shall have the following terms and conditions:

                  (i) Price. The purchase price per Share deliverable upon the
         exercise of each option shall be 100% of the Fair Market Value per
         Share on the date the option is granted. For purposes of the Plan, Fair
         Market Value shall be the closing price of the Shares as reported on
         the principal exchange on which the Shares are listed for the date in
         question, or if there were no sales on such date, the most recent prior
         date on which there were sales.

                  (ii) Payment. Options may be exercised only upon payment of
         the purchase price thereof in full. Such payment shall be made in cash.

                  (iii) Exercisability and Term of Options. Options shall become
         exercisable in four equal annual installments commencing on the first
         anniversary of the date of grant, provided the holder of such Option is
         an Eligible Director on such anniversary, and shall be exercisable
         until the earlier of ten years from the date of grant and the
         expiration of the one year period provided in paragraph (iv) below.

                  (iv) Termination of Service as Eligible Director. Upon
         termination of a Participant's service as a director of the Company for
         any reason, all outstanding options held by such Eligible Director, to
         the extent then exercisable, shall be exercisable in whole or in part
         for a period of one year from the date upon which the Participant
         ceases to be a Director, provided that in no event shall the options be
         exercisable beyond the period provided for in paragraph (iii) above.

                  (v) Nontransferability of Options. No option may be assigned,
         alienated, pledged, attached, sold or otherwise transferred or
         encumbered by a Participant otherwise than by will or the laws of
         descent and distribution, and during the lifetime of the Participant to
         whom an option is granted it may be exercised only by the Participant
         or by the Participant's guardian or legal representative.
         Notwithstanding the foregoing, options may be transferred pursuant to a
         qualified domestic relations order.

                  (vi) Option Agreement. Each option granted hereunder shall be
         evidenced by an agreement with the Company which shall contain the
         terms and provisions set forth herein and shall otherwise be consistent
         with the provisions of the Plan.

         (d) Death of Eligible Director. Notwithstanding the provisions of
paragraphs (iii) and (iv) of Section 5(c) of this Plan, if an Eligible Director
shall die while serving as a director of the Company, all outstanding options
held by such Eligible Director (whether or not then exercisable by their terms)
shall become immediately exercisable in full by the Eligible Director's estate
or by the person who acquires the right to exercise such options upon the
Eligible Director's death by bequest or inheritance. Such exercise may occur at
any time within one year after the date of the Eligible Director's death
provided that in no event shall the options of a deceased Eligible Director be
exercisable beyond the period provided for in paragraph (iii) of Section 5(c) of
this Plan.

         (e) Total Disability. Notwithstanding the provisions of paragraphs
(iii) and (iv) of Section 5(c) of this Plan, if an Eligible Director's service
as a director of the Company ceases as a result of his becoming totally
disabled, all outstanding options held by such Eligible Director (whether or not
then exercisable by their terms) shall become immediately exercisable in full.
Such exercise may occur at any time within nine months after the Eligible
Director has been determined to be totally disabled; provided that, in no event
shall the options of a totally disabled Eligible Director be exercisable beyond
the period provided for in paragraph (iii) of Section 5(c) of this Plan. An
Eligible Director shall be considered to be totally disabled if he has been
unable, by reason of a medically determinable physical or mental impairment, to
engage in any substantial gainful activity, for a period of 180 days after its
commencement and such condition, in the opinion of a physician selected by the
Company and reasonably acceptable to the Eligible Director or his legal
representative, is total and permanent.

         (f) Change of Control. Upon the occurrence of a Change of Control, all
outstanding options held by Eligible Directors shall be fully exercisable. For
purposes of this Plan, the term "Change of Control" shall mean an occurrence of
a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation


<PAGE>   3



14A issued under the Securities Exchange Act of 1934 (the "Act"). Without
limiting the inclusiveness of the definition in the preceding sentence, a Change
of Control of the Company shall be deemed to have occurred as of the first day
that any one or more of the following conditions is satisfied: (a) any person is
or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of the Company representing 20% or more of
the combined voting power of the Company's then outstanding securities and such
person would be deemed an "Acquiring Person" for purposes of the Rights
Agreement dated as of July 16, 1998, as amended, between the Company and First
Chicago Trust Company of New York (the "Rights Agreement"); or (b) any of the
following occur: (i) any merger or consolidation of the Company, other than a
merger or consolidation in which the voting securities of the Company
immediately prior to the merger or consolidation continue to represent (either
by remaining outstanding or being converted into securities of the surviving
entity) 80% or more of the combined voting power of the Company or surviving
entity immediately after the merger or consolidation with another entity; (ii)
any sale, exchange, lease, mortgage, pledge, transfer or other disposition (in a
single transaction or a series of related transactions) of assets or earning
power aggregating more than 50% of the assets or earning power of the Company on
a consolidated basis; (iii) any complete liquidation or dissolution of the
Company; (iv) any reorganization, reverse stock split or recapitalization of the
Company that would result in a Change of Control as otherwise defined in this
Plan; or (v) any transaction or series of related transactions having, directly
or indirectly, the same effect as any of the foregoing.

6.       GRANT OF SHARES

         (a) From and after the Effective Date, 50% of the Retainer of each
Eligible Director shall be paid in a number of shares equal to the quotient of
(i) 50% of the Retainer divided by (ii) the Fair Market Value on the Retainer
Payment Date. Cash shall be paid to an Eligible Director in lieu of a fractional
Share.

         (b) For purposes of this Plan, "Retainer" shall mean the annual
retainer payable to an Eligible Director (as defined in Section 3) for any
fiscal quarter of the Company, the amount of which Retainer may not be changed
for purposes of this Plan more often than once every six months and "Retainer
Payment Date" shall mean the first business day of the Company's calendar
quarter.

7.       ADJUSTMENT AND CHANGES IN SHARES

         In the event of a stock split, stock dividend, extraordinary cash
dividend, subdivision or combination of the Shares or other change in corporate
structure affecting the Shares, the number of Shares authorized by the Plan
shall be increased or decreased proportionately, as the case may be, and the
number of Shares subject to any outstanding option shall be increased or
decreased proportionately, as the case may be, with appropriate corresponding
adjustment in the purchase price per Share thereunder.

8.       NO RIGHTS OF SHAREHOLDERS

         Neither a Participant or a Participant's legal representative shall be,
or have any of the rights and privileges of, a shareholder of the Company in
respect of any Shares purchasable upon the exercise of any option, in whole or
in part, unless and until certificates for such Shares shall have been issued.

9.       PLAN AMENDMENTS

         The Plan may be amended by the Board as it shall deem advisable or to
conform to any change in any law or regulation applicable thereto; provided,
that the Board may not, without the authorization and approval of shareholders
of the Company: (i) increase the number of Shares which may be purchased
pursuant to options hereunder, either individually or in the aggregate, except
as permitted by Section 7, (ii) change the requirement of Section 5(b) that
option grants be priced at Fair Market Value, except as permitted by Section 7,
or (iii) modify in any respect the class of individuals who constitute Eligible
Directors. The provisions of Sections 3, 5 and/or 6 may not be amended more
often than once every six months, other than to comport with changes in the
Code, the Employee Retirement Income Security Act of 1974, or the rules under
either such statute.


<PAGE>   4

10.      LISTING AND REGISTRATION

         Each Share shall be subject to the requirement that if at any time the
Board shall determine, in its discretion, that the listing, registration or
qualification of the Shares upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting of
such Shares, no such Share may be disposed of unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of
any condition not acceptable to the Board.

11.      EFFECTIVE DATE AND DURATION OF PLAN

         The Plan shall become effective on the date of the approval of the Plan
by the Company's stockholders ("Effective Date"). The Plan shall terminate the
day following the tenth Annual Shareholders Meeting at which Directors are
elected succeeding the Effective Date unless the Plan is extended or terminated
at an earlier date by Shareholders or is terminated by exhaustion of the Shares
available for issuance hereunder.