PRSS 2017 Annual Report

25 • Actual or anticipated fluctuations in our competitors’ operating results or changes in their growth rates; • Lack of coverage of us by industry or securities analysts; • Regulatory developments in our target markets affecting us, our customers or our competitors; • Fluctuations in the supply and prices of materials used in our products, such as cotton; • Share price and volume fluctuations attributable to inconsistent or low trading volume levels of our shares, to erratic or unpredictable investor activity, or to purchases or sales or large amounts of our stock, including by institutional or other investors; • Commencement of, or our involvement in, litigation; • Terrorist attacks or natural disasters or other such events impacting countries where we or our customers have operations; and • General economic and market conditions. For example, fromMarch 29, 2012 through December 31, 2017, our stock price has fluctuated from a high of $22.69 on March 29, 2012 to a low of $1.74 on November 10, 2017. As of December 31, 2017 and December 31, 2016, our stock price closed at $1.85 and $2.94, respectively. We have a relatively small public float, which may further contribute to volatility in our stock price. We have a relatively small public float due to the ownership percentage of our executive officers and directors and greater than 10% stockholders. In addition, in April 2016, our Board of Directors approved the extension of our existing share repurchase program that authorized the purchase of up to 20% of the outstanding shares of our common stock or an aggregate of 3.5 million shares of our common stock. In February 2017, our Board of Directors terminated the program. As a result of our small public float, our common stock may be less liquid and have greater stock price volatility than the common stock of companies with broader public ownership. In addition, the trading of a relatively small volume of shares of our common stock may result in significant volatility in our stock price. If and to the extent ownership of our common stock becomes more concentrated, whether due to increased ownership by our directors and executive officers or other significant stockholders, any future repurchase of our common stock, or other factors, our public float would further decrease, which in turn would likely result in increased stock price volatility. Furthermore, the stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes or international currency fluctuations, may cause the market price of shares of our common stock to decline. As an e-commerce company, we believe our stock price may be particularly susceptible to volatility as the stock prices of technology and e-commerce companies have often been subject towide fluctuations. Additionally, because a large amount of our stock is closely held, we may experience low trading volume or large fluctuations in share price and volume due to large sales by institutional investors. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We have been in the past, and in the future may be, the target of this type of litigation. Securities litigation against us could result in substantial costs and divert our management’s attention from other business concerns, which could seriously harm our business. Anti-takeover provisions in our amended and restated certificate of incorporation, amended and restated bylaws and inDelaware law generally contain provisions that could discourage a takeover. In addition to the effect that the concentration of ownership by our officers, directors and significant stockholders may have, our amended and restated certificate of incorporation and our amended and restated bylaws contain provisions that may enable our management to resist a change of control. These provisions may discourage, delay or prevent a change in our ownership or a change in our management. In addition, these provisions could limit the price that investors would be willing to pay in the future for shares of our common stock. Such provisions as set forth in our amended and restated certificate of incorporation or amended and restated bylaws include: