Macy's 2013 Annual Report Download - page 10

Table of Contents
Dennis J. Broderick has been Secretary of the Company since July 1993 and Executive Vice President and General Counsel of the Company since May
2009; prior thereto he served as Senior Vice President and General Counsel of the Company from January 1990 to April 2009.
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In evaluating the Company, the risks described below and the matters described in “Forward-Looking Statements” should be considered carefully. Such
risks and matters are numerous and diverse, may be experienced continuously or intermittently, and may vary in intensity and effect. Any of such risks and
matters, individually or in combination, could have a material adverse effect on the Company's business, prospects, financial condition, results of operations
and cash flows, as well as on the attractiveness and value of an investment in the Company's securities.
The Company faces significant competition in the retail industry.
The Company conducts its retail merchandising business under highly competitive conditions. Although the Company is one of the nation’s largest
retailers, it has numerous and varied competitors at the national and local levels, including conventional and specialty department stores, other specialty
stores, category killers, mass merchants, value retailers, discounters, and Internet and mail-order retailers. Competition may intensify as the Company’s
competitors enter into business combinations or alliances. Competition is characterized by many factors, including assortment, advertising, price, quality,
service, location, reputation and credit availability. Any failure by the Company to compete effectively could negatively affect the Company's business and
results of operations.
The Company’s sales and operating results depend on consumer preferences and consumer spending.
The fashion and retail industries are subject to sudden shifts in consumer trends and consumer spending. The Company’s sales and operating results
depend in part on its ability to predict or respond to changes in fashion trends and consumer preferences in a timely manner. The Company develops new
retail concepts and continuously adjusts its industry position in certain major and private-label brands and product categories in an effort to satisfy
customers. Any sustained failure to anticipate, identify and respond to emerging trends in lifestyle and consumer preferences could negatively affect the
Company’s business and results of operations. The Company’s sales are significantly affected by discretionary spending by consumers. Consumer spending
may be affected by many factors outside of the Company’s control, including general economic conditions, consumer disposable income levels, consumer
confidence levels, the availability, cost and level of consumer debt and consumer behaviors towards incurring and paying debt, the costs of basic necessities
and other goods and the effects of the weather or natural disasters. Any decline in discretionary spending by consumers could negatively affect the Company's
business and results of operations.
The Company’s business is subject to unfavorable economic and political conditions and other developments and risks.
Unfavorable global, domestic or regional economic or political conditions and other developments and risks could negatively affect the Company’s
business and results of operations. For example, unfavorable changes related to interest rates, rates of economic growth, fiscal and monetary policies of
governments, inflation, deflation, consumer credit availability, consumer debt levels, consumer debt payment behaviors, tax rates and policy, unemployment
trends, energy prices, and other matters that influence the availability and cost of merchandise, consumer confidence, spending and tourism could negatively
affect the Company’s business and results of operations. In addition, unstable political conditions, civil unrest, terrorist activities and armed conflicts may
disrupt commerce and could negatively affect the Company’s business and results of operations.
The Company’s revenues and cash requirements are affected by the seasonal nature of its business.
The Company’s business is seasonal, with a high proportion of revenues and operating cash flows generated during the second half of the fiscal year,
which includes the fall and holiday selling seasons. A disproportionate amount of the Company's revenues fall in the fourth fiscal quarter, which coincides
with the holiday season. In addition, the Company incurs significant additional expenses in the period leading up to the months of November and December in
anticipation of higher sales volume in those periods, including for additional inventory, advertising and employees.
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