Express 2012 Annual Report Download - page 18

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Substantially all 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 employ approximately 17,000 associates. Approximately 700 employees are based at our home
office locations in either Columbus or New York City, approximately 70 are field-based regional or district
managers, approximately 1,600 are in-store managers or co-managers, and approximately 14,500 are in-store
sales associates. None of our employees are represented by a union, and we have had no labor-related work
stoppages. We believe our relations with our employees are good.
Seasonality
Our business is seasonal and, historically, we have realized a higher portion of our net sales and net income in the
third and fourth quarters due primarily to early Fall selling patterns as well as the impact of the holiday season. In
2012, approximately 56% of our net sales were generated in the Fall season (third and fourth quarters), while
approximately 44% were generated in the Spring season (first and second quarters). Cash needs are typically
higher in the first and third quarters due to inventory-related working capital requirements for early Fall and
holiday selling periods. Our business is also subject, at certain times, to calendar shifts, which may occur during
key selling periods close to holidays such as Easter, Thanksgiving, and Christmas, and regional fluctuations for
events such as sales tax holidays.
Available Information
We make available, free of charge, on our website, www.express.com, copies of our annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to these reports
filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act of 1934”), as soon as reasonably practicable after filing such material electronically with, or
otherwise furnishing it to, the SEC. The SEC maintains a website that contains electronic filings at www.sec.gov.
In addition, the public may read and copy any materials we file with the SEC at the SEC’s Public Reference
Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the
Public Reference Room by calling the SEC at 1-800-SEC-0330. The reference to our website address does not
constitute incorporation by reference of the information contained on the website. Additionally, the information
contained on our website is not part of this Annual Report on Form 10-K.
ITEM 1A. RISK FACTORS.
Our business faces a number of risks. The risks described below are the items of most concern to us, however
these are not all of the risks we face. Additional risks and uncertainties not presently known to us or that we
currently consider immaterial may also impair our business operations.
RISK FACTORS
Our business is sensitive to consumer spending and general economic conditions, and a continued or further
economic slowdown could adversely affect our financial performance.
Consumer purchases of discretionary retail items, including our products, generally decline during recessionary
periods and other periods where disposable income is adversely affected. Our performance is subject to factors
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