Express 2013 Annual Report Download - page 10

Table of Contents
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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 1-800-732-0330. 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.
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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.
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Our business is sensitive to consumer spending and general economic conditions. Recessionary, slow growth, or other difficult economic
conditions 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 that affect domestic and worldwide economic conditions particularly those that affect our
target demographic, including employment, consumer debt, uncertain healthcare costs, reductions in net worth, residential real estate and mortgage markets,
taxation, fuel and energy prices, interest rates, consumer confidence, value of the United States dollar versus foreign currencies, and other macroeconomic
factors. A deterioration in economic conditions or increasing unemployment levels may reduce the level of consumer spending and inhibit consumers' use of
credit, which may adversely affect our revenues and profits. In recessionary periods, we may have to increase the number of promotional sales or otherwise
dispose of inventory for which we have previously paid to manufacture, which could adversely affect our profitability. Our financial performance is
particularly susceptible to economic and other conditions in regions or states where we have a significant number of stores. Difficult economic conditions
could adversely affect shopping center traffic and new shopping center development and could materially adversely affect us.
In addition, difficult economic conditions may exacerbate some of the risks noted below, including consumer demand, strain on available resources, store
growth, interruption of the flow of merchandise from key vendors, and foreign exchange rate fluctuations. The risks could be exacerbated individually or
collectively.
Our business is highly dependent upon our ability to identify and respond to new and changing fashion trends, customer preferences and other
related factors, and our inability to identify and respond to these new trends may lead to inventory markdowns and write-offs, which could
adversely affect us and our brand image.
Our focus on fashion-conscious young women and men means that we have a target market of customers whose preferences cannot be predicted with certainty
and are subject to change. Our success depends in large part upon our ability to effectively identify and respond to changing fashion trends and consumer
demands and to translate market trends into appropriate, saleable product offerings. Our failure to identify and react appropriately to new and changing
fashion trends or tastes, or to accurately forecast demand for certain product offerings could lead to, among other things, excess or insufficient amounts of
inventory, markdowns, and write-offs, which could materially adversely affect our business and our brand image. Because our success depends significantly
on our brand image, damage to our brand image as a result of our failure to respond to changing fashion trends could have a negative impact on us.
We often place orders for the manufacture and purchase of merchandise well ahead of the season in which that merchandise will be sold. Therefore, we are
vulnerable to changes in consumer preference and demand between the time we design and order our merchandise and the season in which this merchandise
will be sold. There can be no assurance that our new product offerings will have the same level of acceptance as our product offerings in the past or that we
will be able to adequately and timely respond to the preferences of our customers. The failure of any new product offerings to appeal to our customers could
have a material adverse effect on our business, results of operations, and financial condition.
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