This game is not roll to hit D&D type. This is an action game, where being hit is tied to standing where the enemy swung their weapon.
armor reduces damage taken, but it is ALWAYS better to move out of the way as much as you can. (ok, ok, the rocks thrown by dwarves in max level armor are not worth dodging at 0.2 damage each, but you get the drift).
Max armor reduces damage a ton. Only a couple of enemy do any damage at all in fully upgraded padded... lox, berzerkers, multi-star furbys, multi star wolves all do a fair bit of damage. Most everything else, you may not realize you were being hit.