1018005--4/1/2009--COLDWATER_CREEK

related topics

{customer, product, revenue}

{stock, price, operating}

{cost, operation, labor}

{condition, economic, financial}

{system, service, information}

{cost, contract, operation}

{product, market, service}

{regulation, change, law}

{control, financial, internal}

{personnel, key, retain}

{provision, law, control}

{acquisition, growth, future}

{financial, litigation, operation}

{competitive, industry, competition}

General economic conditions have impacted consumer spending and may adversely affect our financial position. Recent disruptions in the credit and financial markets could affect our liquidity and harm our financial performance. Demand for our merchandise is difficult to gauge and our inability to predict consumer spending patterns and consumer preferences may reduce our revenues, gross margins and earnings. Our cost savings initiatives may have a negative impact on our operations and inhibit our long-term growth plans. The retail store model requires us to incur substantial financial commitments and fixed costs that we will not be able to recover if a store is not successful. We are subject to potentially adverse outcomes in litigation matters. The majority of our cash and cash equivalents are concentrated with one financial institution. Quarterly results of operations fluctuate and may be negatively impacted by seasonal influences. We may be unable to manage expanding operations and the complexities of our multi-channel strategy, which could harm our results of operations. We are subject to significant risks associated with our ongoing implementation of major changes to our management information systems. We depend on key vendors for timely and effective sourcing and delivery of our merchandise. If these vendors are unable to timely fill orders or meet quality standards, we may lose customer sales and our reputation may suffer. We face substantial competition from discount retailers in the women's apparel industry. Consumer concerns about purchasing items via the Internet as well as external or internal infrastructure system failures could negatively impact our e-commerce sales or cause us to incur additional costs. We may be unable to fill customer orders efficiently, which could harm customer satisfaction. We have a liberal merchandise return policy, and we may experience a greater number of returns than we anticipate. We may be unable to manage significant increases in the costs associated with the catalog business, which could affect results of operations. Our success is dependent upon key personnel. Our multi-channel model may expose us to the risk that we may be assessed for unpaid taxes. Any determination that we have a material weakness in our internal control over financial reporting could have a negative impact on our investor perceptions. The stock price has fluctuated and may continue to fluctuate widely. The largest stockholders may exert influence over our business regardless of the opposition of other stockholders or the desire of other stockholders to pursue an alternate course of action. Provisions in the charter documents and Delaware law may inhibit a takeover and discourage, delay or prevent stockholders from replacing or removing current directors or management. The day spa concept may not be successful and may be abandoned at any time. We may be unable to successfully implement our retail store rollout strategy, which could result in significantly lower revenue growth. Increasing reliance on foreign vendors will subject us to uncertainties that could impact our cost to source merchandise and delay or prevent merchandise shipments.

Full 10-K form ▸

1018005--4/1/2009--COLDWATER_CREEK_INC