Banana Republic 2012 Annual Report Download - page 26

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8
Stefan Larsson, 38, Global President, Old Navy Brand since October 2012; Head of Global Sales, H&M Hennes &
Mauritz AB from 2010 to 2012; Head of Global Expansion, H&M Hennes & Mauritz AB from 2009 to 2010; Head of
Operations, Global Expansion, H&M Hennes & Mauritz AB from 2007 to 2009; Regional Manager, U.S. West Coast,
H&M Hennes & Mauritz AB from 2005 to 2007.
Glenn Murphy, 51, Chairman and Chief Executive Officer since August 2007; Chief Executive Officer of Shoppers Drug
Mart Corporation, a drug store chain, from 2001 to 2007.
Art Peck, 57, President, Growth, Innovation, and Digital division since November 2012; President, Gap North America
from February 2011 to November 2012; Executive Vice President of Strategy and Operations from May 2005 to February
2011; President, Gap Inc. Outlet from October 2008 to February 2011; Acting President, Gap Inc. Outlet from February
2008 to October 2008; Senior Vice President of The Boston Consulting Group, a business consulting firm, from 1982 to
May 2005.
Eva Sage-Gavin, 54, Executive Vice President, Global Human Resources and Corporate Affairs since February 2010;
Executive Vice President, Human Resources, Communications and Global Responsibility from April 2008 to February
2010; Executive Vice President, Human Resources and Communications from February 2007 to April 2008; Executive
Vice President, Human Resources from March 2003 to February 2007.
Sabrina Simmons, 49, Executive Vice President and Chief Financial Officer since January 2008; Executive Vice
President, Corporate Finance from September 2007 to January 2008; Senior Vice President, Corporate Finance and
Treasurer from March 2003 to September 2007; Vice President and Treasurer from September 2001 to March 2003.
Stephen Sunnucks, 55, Global President, Gap Brand since November 2012; President, Gap Inc. International from April
2011 to November 2012; President, Gap Inc. Europe and International Strategic Alliances from April 2009 to April 2011;
President, Gap Inc. Europe from June 2005 to April 2009.
Item 1A. Risk Factors.
Our past performance may not be a reliable indicator of future performance because actual future results and trends may
differ materially depending on a variety of factors, including but not limited to the risks and uncertainties discussed below.
In addition, historical trends should not be used to anticipate results or trends in future periods.
Global economic conditions and the impact on consumer spending patterns could adversely impact our results
of operations.
The Company’s performance is subject to global economic conditions and their impact on levels of consumer spending
worldwide. Some of the factors influencing consumer spending include high levels of unemployment, higher consumer
debt levels, reductions in net worth based on market declines and uncertainty, home foreclosures and reductions in home
values, fluctuating interest rates and credit availability, government austerity measures, fluctuating fuel and other energy
costs, fluctuating commodity prices, and general uncertainty regarding the overall future economic environment.
Consumer purchases of discretionary items, including our merchandise, generally decline during periods when disposable
income is adversely affected or there is economic uncertainty.
Adverse economic changes in any of the regions in which we sell our products, could reduce consumer confidence, and
thereby could negatively affect earnings and have a material adverse effect on our results of operations. In a challenging
and uncertain economic environment, we cannot predict whether or when such circumstances may improve or worsen, or
what impact, if any, such circumstances could have on our business, results of operations, cash flows, and financial
position.
Our business is highly competitive.
The global apparel retail industry is highly competitive. We compete with local, national, and global department stores,
specialty and discount store chains, independent retail stores, and online businesses that market similar lines of
merchandise. We face a variety of competitive challenges including:
• anticipating and quickly responding to changing apparel trends and customer demands;
• attracting customer traffic;
• competitively pricing our products and achieving customer perception of value;
• maintaining favorable brand recognition and effectively marketing our products to customers in several diverse market
segments;
• developing innovative, high-quality products in sizes, colors, and styles that appeal to customers of varying age groups
and tastes;
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