Ross 2008 Annual Report Download - page 15

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13
Commission. The information found on our corporate website is not part of this, or any other report or regulatory filing we file
with or furnish to the Securities and Exchange Commission.
ITEM 1A. RISK FACTORS.
Our Annual Report on Form 10-K for fiscal 2008, and information we provide in our Annual Report to Stockholders, press
releases, telephonic reports and other investor communications, including those on our corporate website, may contain
forward-looking statements with respect to anticipated future events and our projected financial performance, operations and
competitive position that are subject to risk factors that could cause our actual results to differ materially from those forward-
looking statements and our prior expectations and projections. Refer to Management’s Discussion and Analysis for a more
complete identification and discussion of “Forward-Looking Statements.”
Our financial condition, results of operations, cash flows and the performance of our common stock may be adversely affected
by a number of risk factors. Risks and uncertainties that apply to both Ross and dd’s DISCOUNTS include, without limitation,
the following:
We are subject to the economic and industry risks that affect large retailers operating in the United States.
Our business is exposed to the risks of a large, multi-store retailer, which must continually and efficiently obtain and distribute a
supply of fresh merchandise throughout a large and growing network of stores. These risk factors include:
• An increase in the level of competitive pressures in the retail apparel or home-related merchandise industry.
• Potential changes in the level of consumer spending on or preferences for apparel or home-related merchandise, including
the potential impact from uncertainty in financial and credit markets and the severity and duration of the current recession.
• Potential changes in geopolitical and/or general economic conditions that could affect the availability of product
and/or the level of consumer spending.
• Unseasonable weather trends that could affect consumer demand for seasonal apparel and apparel-related products.
• A change in the availability, quantity or quality of attractive brand-name merchandise at desirable discounts that could impact
our ability to purchase product and continue to offer customers a wide assortment of merchandise at competitive prices.
• Potential disruptions in the supply chain that could impact our ability to deliver product to our stores in a timely
and cost-effective manner.
• A change in the availability, quality or cost of new store real estate locations.
• A downturn in the economy or a natural disaster in California or in another region where we have a concentration of stores or
a distribution center. Our corporate headquarters, two distribution centers and 26% of our stores are located in California.
We are subject to operating risks as we attempt to execute on our merchandising and growth strategies.
The continued success of our business depends, in part, upon our ability to increase sales at our existing store locations, to
open new stores, and to operate stores on a profitable basis. Our existing strategies and store expansion programs may not
result in a continuation of our anticipated revenue or profit growth. In executing our off-price retail strategies and working to
improve efficiencies, expand our store network, and reduce our costs, we face a number of operational risks, including:
• Our ability to attract and retain personnel with the retail talent necessary to execute our strategies.
• Our ability to effectively operate our various supply chain, core merchandising and other information systems.
• Our ability to improve our merchandising capabilities through the development and implementation of
new processes and systems enhancements.
• Our ability to improve new store sales and profitability, especially in newer regions and markets.
• Our ability to achieve and maintain targeted levels of productivity and efficiency in our distribution centers.