Neiman Marcus 2013 Annual Report Download - page 13

Table of Contents
anti-corruption laws, truth-in-advertising and other laws, including consumer protection regulations that regulate retailers generally and/or govern the
importation, promotion and sale of merchandise. We undertake to monitor changes in these laws and believe that we are in material compliance with all
applicable state and federal regulations with respect to such practices.
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We make our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and related amendments, available free
of charge through our website at www.neimanmarcusgroup.com as soon as reasonably practicable after we electronically file such material with (or furnish
such material to) the Securities and Exchange Commission (SEC). The information contained on our website is not incorporated by reference into this
Annual Report on Form 10-K and should not be considered to be part of this Annual Report on Form 10-K.
Copies of the reports and other information we file with the SEC may also be examined by the public without charge at 100 F Street, N.E., Room
1580, Washington D.C., 20549, or on the internet at http://sec.gov. Copies of all or a portion of such materials can be obtained from the SEC upon payment
of prescribed fees. Please call the SEC at 1-800-SEC-0330 for further information.
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Economic conditions may negatively impact demand for our merchandise.
A number of factors affect the level of consumer spending on merchandise that we offer, including, among other things:
• general economic and industry conditions, including inflation, deflation, changes related to interest rates, rates of economic growth and
government fiscal and monetary policies;
• the performance of the financial, equity and credit markets;
• consumer disposable income levels, consumer confidence levels, the availability, cost and level of consumer debt and consumer behaviors
towards incurring and paying debt; and
• current and expected tax rates and policies.
The merchandise we sell consists of luxury retail goods. The purchase of these goods by customers is discretionary, and therefore highly dependent
upon the level of consumer spending, particularly among affluent customers. During an actual or perceived economic downturn, fewer customers may shop
with us and those who do shop may limit the amounts of their purchases. Deterioration in domestic and global economic conditions leading to reductions in
consumer spending have had a significant adverse impact on our business in the past. While economic conditions have improved since the severe downturn
we experienced in calendar years 2008 and 2009, domestic and global economic conditions remain volatile. The recurrence of adverse economic conditions
could have an adverse effect on our results of operations and continued growth.
If we fail to anticipate, identify and respond effectively to changing consumer demands, fashion trends and consumer shopping preferences, our results of
operations may be adversely affected.
We make decisions regarding the purchase of our merchandise well in advance of the season in which it will be sold. For example, women’s apparel,
men’s apparel, shoes and handbags are typically ordered six to nine months in advance of the date the products will be offered for sale, while jewelry and
other categories are typically ordered three to six months in advance of such date. Our success depends in large part on our ability to anticipate, identify and
respond effectively to changing consumer demands, fashion trends and consumer shopping preferences and any failure by us to do so could adversely affect
our results of operations.
If our sales during any season are significantly lower than we anticipated, we may not be able to adjust our expenditures for inventory and other
expenses in a timely fashion and may be left with unsold inventory. If that occurs, we may be forced to rely on markdowns or promotional sales to dispose of
excess inventory, which could have an adverse effect on our gross margins and results of operations. Conversely, if we fail to purchase a sufficient quantity of
merchandise, we may not
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