Saks Fifth Avenue 2008 Annual Report Download - page 8

selling season. Approximately 30% of the Company’s sales are generated during the fourth quarter, and normally
a large portion of its operating income is generated during the Fall season.
Competition
The retail business is highly competitive. The Company’s stores primarily compete with several national
and regional department stores, specialty apparel stores, designer boutiques, outlet stores, and mail-order and
e-commerce retailers. Management believes that its knowledge of its trade areas and customer base, combined
with the Company’s high level of customer service, broad selection of quality fashion merchandise at appropriate
prices, innovative marketing, and strategic store locations, provides the opportunity for a competitive advantage.
Associates
As of January 31, 2009, the Company employed approximately 13,000 associates, of which approximately
18% were employed on a part-time basis. The Company hires additional temporary associates and increases the
hours of part-time associates during seasonal peak selling periods. Approximately 1.0% of the Company’s
associates are covered by collective bargaining agreements. The Company considers its relations with its
associates to be good.
Inflation and Deflation
Inflation and deflation affect the costs incurred by the Company in its purchase of merchandise and in
certain components of its selling, general and administrative expenses (“SG&A”). The Company attempts to
offset the effects of inflation, which has occurred in recent years in SG&A, through price increases and control of
expenses, although the Company’s ability to increase prices is limited by consumer demand and competitive
factors in its markets.
Website Access to Information
The Company provides access, free of charge to the Company’s annual report on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports as soon as reasonably
practicable after the reports are electronically filed with or furnished to the Securities and Exchange Commission
(“SEC”) through the Company’s website, www.saksincorporated.com.
Certifications
The Company filed the certification of its Chief Executive Officer with the New York Stock Exchange
(“NYSE”) in fiscal 2008 as required pursuant to Section 303A.12(a) of the NYSE Listed Company Manual, and
the Company has filed the Sarbanes-Oxley Section 302 and Section 906 certifications of its principal executive
officer and principal financial officer with the SEC, which are attached hereto as Exhibits 31.1, 31.2, 32.1, and
32.2.
Item 1A. Risk Factors.
The following are certain risk factors that affect the Company’s business, financial condition, results of
operations and cash flows, some of which are beyond the Company’s control. These risk factors should be
considered in connection with evaluating the forward-looking statements contained in this Annual Report on
Form 10-K. The risks and uncertainties described below are not the only ones facing the Company. If any of the
events described below were to actually occur, the Company’s business, financial condition, results of operations
or cash flows could be adversely affected and results could differ materially from expected and historical results.
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