Express 2015 Annual Report Download - page 9

Table of Contents

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, and such information is not part of this Annual Report on Form 10-K.

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, that apply to similar businesses more generally, or that we currently consider immaterial may also impair
our business operations.

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 merchandise, generally decline during recessionary periods and other periods where
disposable income is adversely affected. Our business is impacted by factors that affect domestic and worldwide economic conditions, particularly those that
affect our target demographic, including unemployment levels, levels of consumer debt, availability of consumer credit, levels of student debt, 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 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 may be particularly susceptible to economic and other conditions in regions or states where we have a significant
number of stores.
In addition, difficult economic conditions may exacerbate some of the other risks described in this Item 1.A. Risk Factors, including those risks associated
with increased competition, decreases in mall traffic, brand reputation, our ability to develop and maintain a reliable omni-channel customer experience, our
ability to execute our growth initiatives, the interruption of the production and flow of merchandise, and leasing substantial amounts of space. 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. 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 frequent 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 desired 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. Because our success depends significantly on our brand image, damage to
our brand image as a result of our failure to identify and respond to changing fashion trends could have a material 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 of our product offerings to appeal to our customers could
have a material adverse effect on our business, results of operations, and financial condition.
9