1016607--3/30/2007--WILSONS_THE_LEATHER_EXPERTS

related topics

{condition, economic, financial}

{customer, product, revenue}

{product, market, service}

{stock, price, share}

{operation, natural, condition}

{regulation, change, law}

{system, service, information}

{personnel, key, retain}

{debt, indebtedness, cash}

{tax, income, asset}

{stock, price, operating}

{cost, regulation, environmental}

We may need funding in addition to our cash flow from operations and existing credit facilities. We are dependent upon our key supplier to implement our merchandising strategy to offer designer labels in our stores outerwear product mix. Changes in customer shopping patterns could harm our sales. We may not be able to build and grow our wholesale business effectively and timely and we cannot assure that our wholesale business will warrant additional growth or gain market acceptance. We may need to record additional impairment losses in the future if our stores operating performance does not improve. The high level of competition in our markets may lead to reduced sales and profits. Uncertainty in general economic conditions may lead to reduced consumer demand for our leather outerwear, accessories and apparel and could adversely affect our business and liquidity. Unseasonably warm weather, particularly during the fall and winter, has in the past and may in the future negatively effect our sales performance. Our inability to effectively respond to changes in fashion trends and consumer demands could adversely affect our sales. A decrease in the availability of leather or an increase in its price could harm our business. We could have difficulty obtaining merchandise from our foreign suppliers. The seasonality of our business could affect our profitability. Our inability to renew existing licensing agreements and/or to enter into new relationships could negatively impact our sales. The public sale of our common stock issued pursuant to our employee benefit plans or the sale into the market of the shares issued in our equity financing in April 2004 or issuable upon exercise of the warrants delivered in connection with our April 2004 equity financing could decrease the price of our common stock or make it more difficult to obtain additional financing in the future. Our accounting policies and methods are key to how we report our financial condition and results of operations and they may require management to make estimates about matters that are inherently uncertain. Changes to financial accounting standards may affect our results of operations and cause us to change our business practices. Loss of key members of our senior management team could adversely affect our business. Ownership of our common stock is concentrated. The market price for our common stock may be volatile. We rely on third parties for upgrading and maintaining our information systems. War, acts of terrorism or the threat of either may negatively impact the availability of merchandise and otherwise adversely impact our business. Any significant interruption in the operation of our corporate offices and distribution centers could have a material adverse effect on our business.

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1016607--3/30/2007--WILSONS_THE_LEATHER_EXPERTS_INC