Rue 21 2010 Annual Report Download - page 17

insurance liability. We evaluate our insurance requirements on an ongoing basis to ensure we maintain adequate
levels of coverage.
Employees
As of January 29, 2011, we had 7,243 employees of which 5,295 were part-time employees. Of this total
number, 228 employees were based at our corporate headquarters, 144 employees were employed at our
distribution facility, 90 regional and district managers were employed in the field, 2,424 managers and assistant
managers and 4,357 sales associates were located in our stores. None of our employees is represented by a union and
we have had no labor-related work stoppages. Our rueCulture emphasizes teamwork and the belief that everyone
can make a difference. The value we place on our employees is one of the keys to our success, and as a result we
believe our relationship with our employees is strong.
Seasonality
Our business is seasonal and, historically, we have realized a higher portion of our net sales, net income and
operating cash flows during the back-to-school and holiday selling seasons. As a result, our working capital
requirements fluctuate during the year, increasing in mid-summer in anticipation of the back-to-school selling
season. Our business is also subject, at certain times, to calendar shifts, which may occur during key selling times
such as school holidays, Easter and regional fluctuations in the calendar during the back-to-school selling season.
Available Information
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all
amendments to those reports and the proxy statement for our annual meeting of stockholders are made available,
free of charge, on our corporate web site, www.rue21.com, as soon as reasonably practicable after such reports have
been filed with or furnished to the SEC.
Our Code of Business Conduct and Ethics (the “Code”) and Board of Directors Committee Charters (for each
of our Audit, Compensation and Corporate Governance and Nominating Committees) are also available on our
website. The Committee Charters and the Code can be found at www.rue21.com, under the “Investor Relations,
Corporate Governance” tab. Any amendments and waivers to the Code will also be available on our website.
All of these documents are available in print to any stockholder who requests them via our website or by
writing to rue21, inc., c/o Vice President and General Counsel, 800 Commonwealth Dr., Suite 100, Warrendale,
PA 15086.
The public may also read and copy any materials that we have filed with the SEC at the SEC’s Public Reference
Room at 100 F Street, NE, Washington, D.C. 20549. In addition, these materials may be obtained at the web site
maintained by the SEC at www.sec.gov. The public may obtain information on the operation of the SEC’s Public
Reference room by calling the SEC at 1-800-SEC-0330.
The content of our web site (www.rue21.com) is not intended to be incorporated by reference in this Annual
Report on Form 10-K.
Item 1A. Risk Factors.
Our business is highly dependent upon our ability to identify and respond to new and changing fashion
trends, customer preferences and other related factors.
Fashion trends and customer tastes are volatile and can change rapidly. 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 in a timely manner. A small number of our employees,
including our divisional merchandise managers, our Senior Vice President and General Merchandise Manager and
our President and Chief Executive Officer, are primarily responsible for performing this analysis and making related
product purchase decisions. Failure of these employees to identify and react appropriately to new and changing
trends or tastes or to accurately forecast demand for certain product offerings could lead to, among other things,
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