Rue 21 2012 Annual Report Download - page 61

rue21, inc.
Notes to Consolidated Financial Statements — Continued
Thirteen Weeks Ended
April 30,
2011
July 30,
2011
October 29,
2011
January 28,
2012
Fiscal Year 2011
Net Sales .................................. $172,875 $172,770 $194,761 $219,896
Gross profit ................................ 67,246 67,629 71,400 80,365
Net income ................................. 9,619 7,669 8,741 12,921
Basic income per common share ................ 0.39 0.31 0.36 0.53
Diluted income per common share .............. 0.38 0.31 0.35 0.52
Weighted average basic common shares
outstanding ............................... 24,383 24,415 24,461 24,467
Weighted average diluted common shares
outstanding ............................... 25,063 25,080 25,066 25,054
Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Our management has evaluated, under the supervision and with the participation of our Chief Executive Officer and
Chief Financial Officer, the effectiveness of our disclosure controls and procedures, as defined in Rule 13(a)-15(e), as of
the end of the period covered by this Annual Report on Form 10-K pursuant to Rule 13a-15(b) under the Exchange Act.
Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure
controls and procedures as of the end of the period covered by this Annual Report on Form 10-K are effective in ensuring
that information required to be disclosed in our Exchange Act reports is (1) recorded, processed, summarized and reported
in a timely manner and (2) accumulated and communicated to our management, including our Chief Executive Officer
and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting, as defined in Rules 13a-15(f) under the Exchange Act. Our internal control over financial reporting is a
process designed to provide reasonable assurance to our management and board of directors regarding the reliability
of our financial reporting and the preparation and fair presentation of published financial statements in accordance
with accounting principles generally accepted in the United States of America.
Our management assessed the effectiveness of our internal control over financial reporting as of February 2,
2013. In making this assessment, management used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in Internal Control — Integrated Framework. Based on that
assessment, our management concluded that, as of February 2, 2013, our internal control over financial reporting is
effective based on those criteria.
The Company’s independent registered public accounting firm that audited the consolidated financial
statements included in this Annual Report issued an attestation report on the Company’s internal control over
financial reporting.
Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal control over financial reporting that occurred during the
Company’s fourth quarter of fiscal year 2012 that have materially affected, or are reasonably likely to materially
affect, the Company’s internal control over financial reporting.
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