DSW 2009 Annual Report Download - page 14

disability insurance and a 401(k) plan to our full-time associates and some of our part-time associates. We have not
experienced any work stoppages, and we consider our relations with our associates to be good.
Seasonality
Our business is subject to seasonal merchandise trends when our customers’ interest in new seasonal styles
increases. Unlike many other retailers, we have not historically experienced a large increase in net sales during our
fourth quarter associated with the winter holiday season.
Available Information
DSW electronically files reports with the Securities and Exchange Commission (“SEC”), including annual
reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and
amendments to such reports. The public may read and copy any materials that DSW files with the SEC at the SEC’s
Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the
operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an internet
site that contains reports, proxy statements and other information regarding issuers that file electronically with the
SEC at www.sec.gov. Additionally, information about DSW, including its reports filed with or furnished to the SEC,
is available through DSW’s website at www.dswinc.com. Such reports are accessible at no charge through DSW’s
website and are made available as soon as reasonably practicable after such material is filed with or furnished to the
SEC.
We have included our website addresses throughout this filing as textual references only. The information
contained on our websites is not incorporated into this Form 10-K.
ITEM 1A. RISK FACTORS.
In addition to the other information in this Annual Report on Form 10-K, shareholders or prospective investors
should carefully consider the following risk factors when evaluating DSW. If any of the events described below
occurs, our business, financial condition and results of operations and future growth prospects could be negatively
affected.
Risks Relating to Our Business
We plan to open approximately ten stores in fiscal 2010 and are currently evaluating our strategy for
fiscal 2011 and beyond, which could strain our resources and have a material adverse effect on our
business and financial performance.
Our continued and future growth largely depends on our ability to successfully open and operate new DSW
stores on a profitable basis. During fiscal 2009, 2008 and 2007, we opened 9, 41 and 37 new DSW stores,
respectively. We plan to open approximately ten stores in fiscal 2010 and are currently evaluating our strategy for
fiscal 2011 and beyond. As of January 30, 2010, we have signed leases for an additional six stores opening in fiscal
2010 and fiscal 2011. During fiscal 2009, the average investment required to open a typical new DSW store was
approximately $1.4 million. This continued expansion could place increased demands on our financial, managerial,
operational and administrative resources. For example, our planned expansion will require us to increase invest-
ments in management information systems and distribution facilities. These increased demands and operating
complexities could cause us to operate our business less efficiently, have a material adverse effect on our operations
and financial performance and slow our growth.
We may be unable to open all the stores contemplated by our growth strategy on a timely basis, and new
stores we open may not be profitable or may have an adverse impact on the profitability of existing stores,
either of which could have a material adverse effect on our business, financial condition and results of
operations.
We plan to open approximately ten stores in fiscal 2010. However, we may not achieve our planned expansion
on a timely and profitable basis or achieve results in new locations similar to those achieved in existing locations in
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