Interestingly, this was an 8-1 decision. I suspect they got it right when it comes to the letter of the law.
You're right about what you've posted here, but Abercrombie & Fitch can't make that argument unless they've described the position accordingly. They can probably circumvent this law by changing the job classification from a "sales associate" to a "model." Modeling is one of the few jobs where an employer can engage in blatant discrimination on racial or ethnic grounds, since the models they used are aimed at marketing to specific genders, demographic groups, etc.
Could they do it by having the sales associates wear a uniform that specified no head gear or jewelry?
A&F is outrageously "out there" with its clothing. If they were as free-thinking as they pretend, they wouldn't be objecting to an associate's clothing choices.