Stein Mart 2013 Annual Report Download - page 10
Download and view the complete annual report
Please find page 10 of the 2013 Stein Mart annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.
6WDWHVFRXOGDIIHFWWKHDYDLODELOLW\DQGSULFHRIPHUFKDQGLVHGDPDJHRXUUHSXWDWLRQRURWKHUZLVHKDYHDPDWHULDODGYHUVHHIIHFWRQRXU
VDOHVSURILWDELOLW\ILQDQFLDOFRQGLWLRQDQGRSHUDWLQJSHUIRUPDQFH
)DLOXUHRILQIRUPDWLRQWHFKQRORJ\FRXOGGLVUXSWRSHUDWLRQVDQGKDUPRXUEXVLQHVV7KHRSHUDWLRQRIRXUEXVLQHVVDQGWKHHIIHFWLYH
H[HFXWLRQ RI RXU PHUFKDQGLVLQJ DQG GLVWULEXWLRQ VWUDWHJLHV LV GHSHQGHQW LQ ODUJH PHDVXUH RQ WKH HIIHFWLYHQHVV RI RXU LQIRUPDWLRQ
WHFKQRORJ\ V\VWHPV 7KH UHOLDELOLW\ DQG FDSDFLW\ RI RXU LQIRUPDWLRQ WHFKQRORJ\ V\VWHPV DUH FULWLFDO DQG DQ\ GLVUXSWLRQV DIIHFWLQJ RXU
LQIRUPDWLRQWHFKQRORJ\V\VWHPVPD\KDYHDPDWHULDODGYHUVHLPSDFWRQRXUEXVLQHVV
8QDXWKRUL]HGGLVFORVXUHRIVHQVLWLYHRUFRQILGHQWLDOFXVWRPHURUHPSOR\HHLQIRUPDWLRQFRXOGVHYHUHO\GDPDJHRXUUHSXWDWLRQ
H[SRVH XV WR ULVNV RI OLWLJDWLRQ DQG OLDELOLW\ GLVUXSW RXU RSHUDWLRQV DQG KDUP RXU EXVLQHVV $V SDUW RI RXU QRUPDO FRXUVH RI
EXVLQHVVZHFROOHFWSURFHVVDQGUHWDLQVHQVLWLYHDQGFRQILGHQWLDOFXVWRPHUDQGHPSOR\HHLQIRUPDWLRQDQGZHSURFHVVFXVWRPHUFUHGLW
FDUGDQGFKHFNLQIRUPDWLRQ,QDGGLWLRQZHDFFHSWDQGWUDQVPLWFUHGLWFDUGDSSOLFDWLRQVWKURXJKRXUUHWDLOORFDWLRQVSXUVXDQWWRRXUFUHGLW
FDUGDJUHHPHQWZLWK*(&DSLWDO5HWDLO%DQN³*(´:HDOVRUHO\RQFRPPHUFLDOO\DYDLODEOHV\VWHPVVRIWZDUHWRROVDQGPRQLWRULQJWR
SURYLGHVHFXULW\IRUSURFHVVLQJWUDQVPLVVLRQDQGVWRUDJHRIFRQILGHQWLDOLQIRUPDWLRQ7KHV\VWHPVZHXWLOL]HIRUFUHGLWFDUGWUDQVDFWLRQV
DVZHOODV WKHWHFKQRORJ\ XWLOL]HGLQVXFK WUDQVDFWLRQVDUH GHWHUPLQHGDQGFRQWUROOHGE\ WKHFUHGLWFDUG LQGXVWU\ 5HFHQWEUHDFKHVRI
VHFXULW\PHDVXUHVDWPDMRUUHWDLOHUVKDYHUHVXOWHGLQWKHWKHIWDQGGLVVHPLQDWLRQRIWKHFRQILGHQWLDOLQIRUPDWLRQRIPLOOLRQVRIFXVWRPHUV
WKURXJKRXWWKH8QLWHG6WDWHV'HVSLWHWKHVHFXULW\PHDVXUHVZHKDYHLQSODFHRXUIDFLOLWLHVDQGV\VWHPVDQGWKRVHRIRXUWKLUGSDUW\
VHUYLFH SURYLGHUV VXFK DV *( PD\ EH YXOQHUDEOH WR VHFXULW\ EUHDFKHV DFWV RI YDQGDOLVP FRPSXWHU YLUXVHV PLVSODFHG RU ORVWGDWD
SURJUDPPLQJDQGRUKXPDQHUURUVRURWKHUVLPLODUHYHQWV$Q\VHFXULW\EUHDFKLQYROYLQJWKHPLVDSSURSULDWLRQORVVRURWKHUXQDXWKRUL]HG
GLVFORVXUHRIFRQILGHQWLDOLQIRUPDWLRQZKHWKHUE\XVRURXUVHUYLFHSURYLGHUVFRXOGVHYHUHO\GDPDJHRXUUHSXWDWLRQH[SRVHXVWRULVNVRI
OLWLJDWLRQDQGOLDELOLW\GLVUXSWRXURSHUDWLRQVDQGKDUPRXUEXVLQHVV
:HUHO\RQDVLQJOHVXSSOLHUIRUVKRHVVROGE\RXUVKRHGHSDUWPHQWDQGGLVUXSWLRQVZLWKWKDWVXSSOLHUFRXOGPDWHULDOO\DIIHFWRXU
UHSXWDWLRQRSHUDWLRQVRUILQDQFLDOUHVXOWV:HKDYHDQDJUHHPHQWZLWK'6:WREHWKHH[FOXVLYHVXSSOLHURIVKRHVVROGLQRXUVKRH
GHSDUWPHQWV:HUHO\RQ'6:WRGHWHUPLQHWKHTXDQWLW\DQGPL[RIVKRHVWREHVROGWKHSULFHVDWZKLFKVXFKLWHPVDUHWREHVROGDQGWKH
IXOILOOPHQWDQGFRQWLQXLQJVXSSO\RILQYHQWRU\,I'6:ZDVXQDEOHWRSURYLGHXVZLWKVXIILFLHQWDPRXQWVRILQYHQWRU\RULQYHQWRU\WKDWPHHWV
WKHIDVKLRQSUHIHUHQFHVRIRXUFXVWRPHUVRULI'6:ZDVXQDEOHWRFRQWLQXHEHLQJRXUVXSSOLHURIVKRHVZHPD\DWWUDFWIHZHUFXVWRPHUV
DQGH[SHULHQFHDORVVLQQHWVDOHVZKLFKFRXOGPDWHULDOO\DIIHFWRXUUHSXWDWLRQRSHUDWLRQVRUILQDQFLDOUHVXOWV
:H KDYH HQJDJHG D VLQJOH WKLUGSDUW\ SURYLGHU WR FUHDWH RSHUDWH DQG PDLQWDLQ RXU HFRPPHUFH ZHEVLWH RSHUDWLRQV DQG
GLVUXSWLRQVZLWKWKHSURYLGHURULQWKHVHUYLFHVLWSURYLGHVWRXVFRXOGPDWHULDOO\DIIHFWRXUUHSXWDWLRQRSHUDWLRQVRUILQDQFLDO
UHVXOWV :HKDYH FRQWUDFWHGZLWK DVLQJOH WKLUGSDUW\ WRFUHDWH RSHUDWHDQG KRVWRXU HFRPPHUFHZHEVLWH DQGSURYLGHUHODWHGRUGHU
IXOILOOPHQWDQGFXVWRPHUVHUYLFH:HZLOOUHO\RQWKDWSDUW\VRSHUDWLRQDOSULYDF\DQGVHFXULW\SURFHGXUHVDQGFRQWUROVWRRSHUDWHDQGKRVW
RXUHFRPPHUFHEXVLQHVV)DLOXUHE\VXFKWKLUGSDUW\WRDGHTXDWHO\VHUYLFHWKHVHDVSHFWVRIRXUHFRPPHUFHEXVLQHVVFRXOGUHVXOWLQD
SURORQJHGGLVUXSWLRQWKDWDIIHFWVRXUFXVWRPHUVDELOLW\WRXWLOL]HRXUZHEVLWHRUUHFHLYHSURGXFWLQDWLPHO\PDQQHU$VDUHVXOWZHPD\
ORVHFXVWRPHUVDOHV DQGRUH[SHULHQFHLQFUHDVHGFRVWVZKLFKFRXOGPDWHULDOO\DIIHFW RXUUHSXWDWLRQRSHUDWLRQVRU ILQDQFLDOUHVXOWV,Q
DGGLWLRQWKHHFRPPHUFHRSHUDWLRQVDOVRLQYROYHRWKHUULVNVWKDWFRXOGKDYHDQLPSDFWRQRXUUHVXOWVRIRSHUDWLRQVLQFOXGLQJEXWQRWOLPLWHG
WRGLYHUVLRQRIVDOHVIURPRXUSK\VLFDOVWRUHVOLDELOLW\IRURQOLQHFRQWHQWFUHGLWFDUGIUDXGDQGULVNVUHODWHGWRWKHIDLOXUHRIWKHFRPSXWHU
V\VWHPVWKDWRSHUDWHWKHZHEVLWHDQGLWVUHODWHGVXSSRUWV\VWHPVDQ\RIZKLFKFRXOGKDYHDPDWHULDODGYHUVHHIIHFWRQRXUEXVLQHVV
$FWVRUWKUHDWVRIWHUURULVPYLROHQFHRUXQIDYRUDEOHSROLWLFDOFRQGLWLRQVFRXOGKDUPRXUEXVLQHVV$FWVRIWHUURULVPRUZDUPD\
GLVUXSWFRPPHUFHDQGXQGHUPLQHFRQVXPHUFRQILGHQFHZKLFKFRXOGQHJDWLYHO\LPSDFWRXUVDOHVUHYHQXHE\FDXVLQJFRQVXPHUVSHQGLQJ
WRGHFOLQH$OVRDQDFWRIWHUURULVPRUZDURUWKHWKUHDWWKHUHRIFRXOGQHJDWLYHO\LPSDFWRXUEXVLQHVVE\LQWHUIHULQJZLWKRXUDELOLW\WR
REWDLQPHUFKDQGLVHIURP YHQGRUV,QDELOLW\ WRREWDLQPHUFKDQGLVH IURPRXU YHQGRUVRUVXEVWLWXWHVXSSOLHUV DWVLPLODU FRVWVLQDWLPHO\
PDQQHUFRXOGKDYHDPDWHULDODGYHUVHHIIHFWRQRXURSHUDWLQJUHVXOWVDQGILQDQFLDOFRQGLWLRQ
2XU IDLOXUH WR DGHTXDWHO\ SURWHFW RXU WUDGHPDUN 6WHLQ 0DUW DQG WR D OHVVHU H[WHQW WKH YDULRXV RWKHU PDUNV ZH XVH LQ
FRQMXQFWLRQZLWKRXUSULYDWHODEHOPHUFKDQGLVHSURJUDPPD\KDYHDQHJDWLYHLPSDFWRQRXUEUDQGLPDJH:HEHOLHYHWKDWRXU
WUDGHPDUN 6WHLQ 0DUW DQG WRD OHVVHU H[WHQW WKH YDULRXV RWKHU PDUNV WKDW ZH XVH LQ FRQQHFWLRQ ZLWK RXU SULYDWH ODEHO PHUFKDQGLVH
SURJUDPDUHLPSRUWDQWWRXVEHFDXVHZHIHHOWKDWWKHVHEUDQGVKDYHFKDUDFWHULVWLFVXQLTXHWRRXUEXVLQHVV:HKDYHREWDLQHGDIHGHUDO
UHJLVWUDWLRQRIWKH6WHLQ0DUWWUDGHPDUNDQGYDULRXVRWKHUWUDGHPDUNVLQWKH8QLWHG6WDWHV:HFDQQRWDVVXUH\RXWKDWWKHUHJLVWUDWLRQV
WKDWZHKDYHREWDLQHGZLOO SUHYHQWWKHLPLWDWLRQRIRXUEXVLQHVVRULQIULQJHPHQW RIRXU LQWHOOHFWXDOSURSHUW\ ULJKWVE\RWKHUV,IZHDUH
XQDEOHWRSURWHFWRXUEUDQGRURXUEUDQGEHFRPHVDVVRFLDWHGZLWKOHVVHUFKDUDFWHULVWLFVRURWKHUZLVHFDUULHVDQHJDWLYHFRQQRWDWLRQRXU
EUDQGLPDJHDQGFRQVHTXHQWO\WKHUHVXOWVRIRXURSHUDWLRQVFRXOGEHPDWHULDOO\DGYHUVHO\DIIHFWHG
)DLOXUH WR FRPSO\ ZLWK OHJDO DQG UHJXODWRU\ UHTXLUHPHQWV PD\ DGYHUVHO\ LPSDFW RXU EXVLQHVV DQG UHVXOWV RIRSHUDWLRQV 2XU
EXVLQHVVLVVXEMHFWWRPDQ\OHJDODQGUHJXODWRU\UHTXLUHPHQWVLQFOXGLQJDPRQJRWKHUVHPSOR\PHQWWUDGHKHDOWKFDUHWD[VHFXULWLHVDQG
SULYDF\ ODZV DQG UHJXODWLRQV 2XU SROLFLHV SURFHGXUHV DQG LQWHUQDO FRQWUROV DUH GHVLJQHG WR KHOS XV FRPSO\ ZLWK DOO DSSOLFDEOH ODZV
KRZHYHUWKHFXUUHQWKLJKOHYHORIUHJXODWRU\UHIRUPDFURVVPDQ\GLIIHUHQWDUHDVKDVOHGDQGPD\FRQWLQXHWROHDGWRVXEVWDQWLDOQHZ