Abercrombie & Fitch 2014 Annual Report Download - page 6

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SEASONAL BUSINESS.
The retail apparel market has two principal selling seasons: the Spring season which includes the first and second fiscal quarters
(“Spring”); and the Fall season which includes the third and fourth fiscal quarters (“Fall”). As is typical in the apparel industry,
the Company experiences its greatest sales activity during the Fall season due to the Back-to-School (August) and Holiday
(November and December) selling periods, particularly in the U.S.
TRADEMARKS.
The Abercrombie & Fitch®, abercrombie®, Hollister®, Gilly Hicks®, “Moose” and “Seagull” trademarks are registered with the
U.S. Patent and Trademark Office and registered or pending with the registries of countries where stores are located or likely to
be located in the future. In addition, these trademarks are either registered, or the Company has applications for registration pending,
with the registries of many of the foreign countries in which the manufacturers of the Company’s products are located. The
Company has also registered, or has applied to register, certain other trademarks in the U.S. and around the world. The Company
believes its products are identified by its trademarks and, therefore, its trademarks are of significant value. Each 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.
OTHER INFORMATION.
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.
COMPETITION.
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, particularly in the U.S. In response to these conditions, the Company has engaged in
promotional activity and increased its focus on operating efficiency while seeking to preserve the value of its brands.
ASSOCIATE RELATIONS.
As of March 26, 2015, the Company employed approximately 65,000 associates, of which approximately 57,000 were part-time
associates, which equates to approximately 6,000 full-time equivalents. On average, the Company employed approximately 18,000
full-time equivalents during Fiscal 2014.
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.
ENVIRONMENTAL MATTERS.
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.