Express 2015 Annual Report Download - page 18

Table of Contents
If we fail to establish and maintain adequate internal controls over financial reporting, we may not be able to report our financial results in a timely and
reliable manner, which could harm our business and impact the value of our securities.
We depend on our ability to produce accurate and timely financial statements in order to run our business. If we fail to do so, our business could be
negatively affected and our independent registered public accounting firm may be unable to attest to the fair presentation of our Consolidated Financial
Statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and the effectiveness of our internal control over financial reporting,
as required by Section 404 of the Sarbanes-Oxley Act. Effective internal controls are necessary for us to provide reliable financial reports and to effectively
prevent fraud. If we cannot provide reliable financial reports and effectively prevent fraud, our reputation and operating results could be harmed. Even
effective internal controls have inherent limitations including the possibility of human error, the circumvention or overriding of controls, or fraud. Therefore,
even effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements. In
addition, projections of any evaluation of effectiveness of internal control over financial reporting in future periods are subject to the risk that the control
may become inadequate because of changes in conditions or a deterioration in the degree of compliance with the policies or procedures.
If we fail to maintain adequate internal controls, including any failure to implement new or improved controls, or if we experience difficulties in their
implementation, we could fail to meet our reporting obligations, and there could be a material adverse effect on our business and financial results. In the
event that our current control practices deteriorate, we may be unable to accurately report our financial results or prevent fraud, and investor confidence and
the market price of our stock may be adversely affected.
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None.
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The lease for our executive office space in Columbus, Ohio is scheduled to terminate September 30, 2017, but we have an option to extend the lease through
April 2021. The lease for our design offices in New York City expires in July 2026.
The lease for our distribution facility is scheduled to terminate in April 2021, but may be terminated by either party upon 36 months prior notice provided
that the lease term may not end between the months of October and February.
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All of our 653 stores are leased from third parties. See "Item 1. Business - Store Locations" for further information on the location of our stores.
We may from time to time lease new facilities or vacate existing facilities as our operations require, including in connection with opening new stores.
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Information relating to legal proceedings is set forth in Note 13 to our Consolidated Financial Statements included in "Item 8. Financial Statements and
Supplementary Data" in Part II of this Annual Report on Form 10-K and is incorporated herein by reference.
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Not applicable.
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