Rue 21 2010 Annual Report Download - page 32

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negotiating the lease agreement for our distribution facility in order to account for an expansion in 2011 that will
provide us with an additional 180,000 square feet for storage space, additional receiving docks, and improved truck
circulation. This will enable the distribution facility to better support our store expansion and inventory distribution
strategies.
As of January 29, 2011, we operated 638 stores in 609 cities in 44 states. All of our stores are leased from third
parties and the leases typically have terms of five to ten years with options to renew for additional five-year periods
thereafter. Most of our leases have early cancellation clauses, which permit the lease to be terminated by us or the
landlord if certain sales levels are not met in specific periods or if a shopping center does not meet specified
occupancy standards. In addition to future minimum lease payments, most of our store leases provide for additional
rental payments based on a percentage of net sales if sales at the respective stores exceed specified levels, as well as
the payment of common area maintenance charges, real property insurance and real estate taxes. Many of our lease
agreements have defined escalating rent provisions over the initial term and any extensions.
We believe that with the planned expansions of our executive offices and distribution facility, our facilities are
generally adequate for current and anticipated future use.
Item 3. Legal Proceedings.
We are subject to various legal proceedings and claims which arise in the ordinary course of our business. If a
potential loss arising from these lawsuits, claims and pending actions is probable and reasonably estimable, we
record the estimated liability based on circumstances and assumptions existing at the time. Management does not
believe that the outcome of current litigation will have a material adverse effect on our consolidated results of
operations or financial condition, and believes that the recorded liabilities are adequate. However, there are inherent
limitations in projecting the outcome of these matters and in the estimation process, and if future actual liabilities
exceed projected liabilities, it could have a material adverse effect on our consolidated financial condition or on our
operations.
Item 4. Reserved.
Part II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
Our common stock has been listed on The NASDAQ Global Select Market under the symbol “rue” since our
initial public offering on November 13, 2009. Before then, there was no public market for our common stock. The
following table sets forth the high and low sales prices of our common stock per share, as reported by The NASDAQ
Global Select Market. The number of holders of record of our stock as of December 31, 2010 was approximately
110.
The following table sets forth the high and low sales prices of our common stock per share, as reported by The
NASDAQ Global Market.
High Low
Fiscal Year 2009
4th Quarter (Commencing November 13, 2009) .......................... $32.82 $22.26
High Low
Fiscal Year 2010
1st Quarter (January 31, 2010) ...................................... $37.63 $26.45
2nd Quarter (May 2, 2010) ......................................... $36.57 $27.75
3rd Quarter (August 1, 2010) ....................................... $30.64 $20.28
4th Quarter (October 31, 2010) ...................................... $33.80 $25.50
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