Abercrombie & Fitch 2011 Annual Report Download - page 8

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registered trademark has a duration of ten to 20 years, depending on the date it was registered, and the
country in which it is registered, and is subject to an indefinite number of renewals for a like period upon
continued use and appropriate application. The Company intends to continue using its core trademarks and
to renew each of its registered trademarks that remain in use.
O
THER
I
NFORMATION
.
Additional information about the Company’s business, including its revenues and profits for the last
three fiscal years and gross square footage of stores, is set forth under “ITEM 7. MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS” of
this Annual Report on Form 10-K.
C
OMPETITION
.
The sale of apparel, accessories and personal care products through stores and direct-to-consumer
channels is a highly competitive business with numerous participants, including individual and chain
fashion specialty stores, as well as regional and national department stores. As the Company continues
expanding internationally, it also faces competition in local markets from established chains, as well as
local specialty stores. Brand recognition, fashion, price, service, store location, selection and quality are the
principal competitive factors in retail store and direct-to-consumer sales.
The competitive challenges facing the Company include anticipating and quickly responding to changing
fashion trends; and maintaining the aspirational positioning of its brands. Furthermore, the Company faces
additional competitive challenges as many retailers continue promotional activities regardless of economic
conditions, particularly in the U.S. In response to these conditions, the Company has engaged in promotional
activity in the U.S. while continuing to focus on preserving the value of its brands.
A
SSOCIATE
R
ELATIONS
.
As of March 16, 2012, the Company employed approximately 90,000 associates. Approximately
80,000 of the Company’s associates were part-time associates.
On average, the Company employed approximately 27,000 full-time equivalents during Fiscal 2011
which included approximately 17,000 full-time equivalents comprised of part-time associates, including
temporary associates hired during peak periods, such as the Back-to-School and Holiday seasons.
The Company believes it maintains a good relationship with its associates. However, in the normal
course of business, the Company is party to lawsuits involving former and current associates. Please see the
discussion in “ITEM 3. LEGAL PROCEEDINGS” in this Annual Report on Form 10-K.
E
NVIRONMENTAL
M
ATTERS
.
Compliance with domestic and international regulations related to environmental matters has not had,
nor is it expected to have, any material effect on capital expenditures, earnings, or the Company’s
competitive position based on information and circumstances known to us at this time.
D
ISCONTINUED
O
PERATIONS
.
On June 16, 2009, A&F’s Board of Directors approved the closure of the Company’s 29 RUEHL
branded stores and related direct-to-consumer operations. The Company completed the closure of the
RUEHL branded stores and related direct-to-consumer operations during the fourth quarter of Fiscal 2009.
5