Stein Mart 2010 Annual Report Download - page 7

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COMPETITION
Our primary competitors are department and specialty stores, as well as conventional off-price retail chains. From our customer’s
perspective, we believe we differentiate ourselves from department stores and specialty stores due to our (i) everyday low pricing, (ii)
convenient locations in shopping centers near upscale neighborhoods and (iii) assortments that are more edited than department
stores and more varied than specialty stores. We also believe we differentiate ourselves from typical off-price retail chains by offering
(i) primarily current-season merchandise carried by better department or specialty stores, (ii) a stronger merchandising “statement,”
consistently offering more depth of color and size in individual stock-keeping units, (iii) merchandise presentation and customer
service more comparable to upscale retailers and (iv) competitive price levels.
DISTRIBUTION
We utilize a third-party logistics network (“supply chain”) to move product through third-party consolidation centers located in New
Jersey, Atlanta and Los Angeles to third-party store distribution centers (“DCs”) located in Atlanta, Dallas and Los Angeles. This
supply chain methodology enables us to aggregate merchandise from all vendors at the DCs where it is received and checked to
ensure it is floor ready for our stores. The DCs are automated and virtually all of our vendors are now EDI capable so we are able to
cross-dock a high percentage of our receipts. Store deliveries are made by contract carriers to the stores once or twice a week
depending on location and store volume. All of these third-party operations have room for expansion so our supply chain is well
positioned to support future growth.
EMPLOYEES
As of January 29, 2011, our work force consisted of approximately 11,500 employees (6,000 40-hour equivalent employees). Our
stores employ an average of 42 persons. The number of employees fluctuates during the year based on the particular selling season.
SEASONALITY
Our business is seasonal. Sales and profitability are historically higher in the first and fourth quarters of the fiscal year, which include
the spring and holiday seasons.
TRADEMARKS
We own the federally registered trademark Stein Mart®, together with a number of other marks used in conjunction with our private
label merchandise program. Management believes that our trademarks are important, but with the exception of Stein Mart®, not
critical to our merchandising strategy.
AVAILABLE INFORMATION
Copies of our annual report on Form 10-K, proxy statement, quarterly reports on Form 10-Q, current reports on Form 8-K, and any
amendments to those filings are available free of charge on the investor relations portion of our website at http://ir.steinmart.com (click
on “SEC Filings”) as soon as reasonably practicable after they are filed electronically with the Securities and Exchange Commission.
In addition, proxy materials for the annual meeting of stockholders are also available at www.proxyvote.com. Also available free of
charge on the www.steinmart.com website (click on “About us”; click on “Corporate Governance”) are the charters for the Audit
Committee, the Compensation Committee, the Nominating and Corporate Governance Committee, the Strategic Planning Committee,
as well as the Code of Conduct and Corporate Governance Guidelines. Printed copies of these items are available free of charge
upon request by writing Stein Mart, Inc., 1200 Riverplace Boulevard, Jacksonville, FL 32207, Attention: Stockholder Relations.
ITEM 1A. RISK FACTORS
Our results of operations and financial condition can be adversely affected by numerous risks and uncertainties. In evaluating the
Company, the risks and uncertainties described below should be considered carefully. Should any of these risks actually materialize,
our business, financial condition, and future prospects could be negatively impacted.
Consumer sensitivity to economic conditions. The retail apparel business is dependent upon consumer spending and, as a
fashion retailer, we rely on the expenditure of discretionary income for most, if not all, of our sales. Economic factors, including the
housing market, prevailing interest rates, levels of employment and personal bankruptcies, energy costs and availability of credit can
impact consumer spending. Consumer confidence is also affected by domestic and international politics. Deterioration in the level of
consumer spending could have a material adverse effect on our results of operations.
Intense competition in the retail industry. We face intense competition for customers from department stores, specialty stores and
regional and national off-price retail chains. Many of these competitors are larger and have significantly greater financial and
marketing resources than we do. In addition, many department stores and other competitors have become more promotional and