Abercrombie & Fitch 2015 Annual Report Download - page 6

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Table of Contents
6
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 24, 2016, the Company employed approximately 49,000 associates, of which approximately 41,000 were part-time
associates, which equates to approximately 5,000 full-time equivalents. On average, the Company employed approximately 16,000
full-time equivalents during Fiscal 2015.
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 the Company's capital expenditures, earnings or competitive position based on information and circumstances
known to us at this time.