Express 2011 Annual Report Download - page 20

• planning and allocation; and
• financial reporting.
Competition
The specialty apparel retail market is highly competitive. We compete primarily with other specialty retailers,
higher-end department stores, and Internet businesses that engage in the retail sale of women’s and men’s
apparel, accessories, and similar merchandise targeting 20 to 30 year old customers. We believe the principal
bases upon which we compete are design, quality, price, and customer service. We believe that our primary
competitive advantages are consumer recognition of the Express brand name, strong real estate locations and a
passionate employee sales force that creates a customer focused shopping experience. We believe that we also
differentiate ourselves from competitors on the basis of our consistent look developed by our in-house product
design team, our ability to offer a balanced assortment of core styles and the latest fashions, our focus on the
quality of our product offerings and the attractive value we offer to our customers.
Our success also depends in substantial part on our ability to originate and define product and fashion trends so
that we can anticipate, gauge, and react to changing consumer demands on a timely basis. While we do not
believe that any retailer directly competes with us on all of these attributes, the sale of apparel and accessories
through retail stores and e-commerce channels is a highly competitive business with numerous competitors that
may sell similar products, including individual and chain stores, department stores, and discount retailers.
Further, we may face new competitors and increased competition from existing competitors as we increase our
presence in existing markets and expand into new markets in which we currently don’t have brand recognition.
Intellectual Property
The Express trademark and certain variations thereon, such as Express Fashion, are registered or are subject to
pending trademark applications with the United States Patent and Trademark Office and/or with the registries of
many foreign countries. In addition, we own domain names, including express.com and express.ca, for our
primary trademarks. We believe our material trademarks have significant value, and we vigorously protect them
against infringement.
Regulation and Legislation
We are subject to labor and employment laws, including minimum wage requirements, laws governing
advertising and promotions, privacy laws, safety regulations, and other laws, such as consumer protection
regulations that govern product standards and regulations with respect to the operation of our stores and
warehouse facilities. We monitor changes in these laws and believe that we are in material compliance with
applicable laws.
A substantial portion of our products are manufactured outside the United States. These products are imported
and are subject to United States customs laws, which impose tariffs as well as import quota restrictions for
textiles and apparel. Some of our imported products are eligible for duty-advantaged programs. While
importation of goods from foreign countries from which we buy our products may be subject to embargo by
United States customs authorities if shipments exceed quota limits, we closely monitor import quotas and believe
we have a diversified sourcing network to allow us to efficiently shift production to factories located in countries
with a similar manufacturing base if necessary.
Employees
We currently have over 18,000 employees of which approximately 650 employees are based at our corporate
headquarters in either Columbus or New York City, approximately 75 are employed as regional or district
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