Express 2015 Annual Report Download - page 8

Table of Contents
experience, level of customer service, and brand image. See "Competitive Strengths" for a description of how we believe we differentiate ourselves from our
competitors. Our future success will depend in substantial part on our ability to anticipate and respond quickly to fashion trends, offer our customers the
products they want, where and when they want them, maintain the strength of the Express brand in the United States, increase awareness of the Express brand,
and acquire new customers.
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We use information technology to improve the customer experience, both in-store and on-line, and differentiate ourselves from competitors. Our information
technology systems provide a full range of business process support and information to our store, e-commerce, merchandising, financial, and real estate
teams. We utilize a combination of customized and industry standard software systems to provide various functions related to point-of-sale, inventory
management, design, planning and allocation, and financial reporting. During 2015, we continued to invest in new systems to provide additional capabilities
to support our growth initiatives. In 2016, we anticipate continued capital expenditures for systems upgrades related to a new order management system, a
new retail management system, and a new enterprise planning system, all of which are expected to launch in 2016. There are risks associated with the
implementation of new systems. Refer to Item 1A Risk Factors for additional information.
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The Express trademark and certain variations thereon, such as Express World Brand, 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 for many of our
trademarks, including express.com. We believe our material trademarks have significant value, and we vigorously protect them against infringement.
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We are subject to labor and employment laws and regulations, including minimum wage requirements, intellectual property laws, consumer protection laws
and regulations, including those governing advertising and promotions, privacy, and product safety, and laws and regulations with respect to the operation of
our stores and business generally, including the Foreign Corrupt Practices Act and as a result of being a public company. In addition, we are subject to United
States customs laws and similar laws of other countries associated with the import and export of merchandise.
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We currently employ approximately 18,000 employees. Approximately 900 employees are based at our home office locations in either Columbus or New
York City, approximately 70 are field-based regional managers, approximately 1,700 are in-store managers or co-managers, and approximately 15,400 are in-
store sales associates. Approximately 19% and 81% of our Associates are full-time and part-time, respectively. 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.
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Our business is seasonal. We define our seasons as Spring (first and second quarters) and Fall (third and fourth quarters). Historically, we have realized a
higher portion of our net sales and net income in the Fall season due primarily to the impact of the holiday season. In 2015, approximately 56% of our net
sales were generated in the Fall season, while approximately 44% were generated in the Spring season. Cash needs are typically higher in the third quarter
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.
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We opened our first store in 1980, in Chicago, Illinois as a division of Limited Brands, Inc. (now known as L Brands, Inc.), and launched our men’s apparel
line in 1987, which was rebranded under the name Structure in 1989. In 2001, we began to consolidate our separate women’s and men’s stores into combined
dual-gender stores under the Express brand. In 2007, Golden Gate Capital acquired 75% of the equity interests in our business from an affiliate of Limited
Brands, Inc. and we began to operate as a standalone company. In May 2010, the Company converted to a Delaware corporation, held an initial public
offering, and listed its shares on the New York Stock Exchange. Subsequent to our initial public offering, Golden Gate Capital and Limited Brands, Inc. sold
their remaining interests in the Company and are no longer affiliated with Express.
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