1018005--4/13/2006--COLDWATER_CREEK

related topics

{customer, product, revenue}

{stock, price, operating}

{product, market, service}

{cost, operation, labor}

{cost, contract, operation}

{system, service, information}

{personnel, key, retain}

{regulation, change, law}

{provision, law, control}

{control, financial, internal}

{acquisition, growth, future}

We may be unable to successfully implement our retail store rollout strategy, which could result in significantly lower revenue growth. 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 may be unable to manage significant increases in the costs associated with the catalog business, which could affect results of operations. The spa test may prove unprofitable and may be abandoned at any time. Consumers 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 manage expanding operations and the complexities of our multi-channel strategy, which could harm results of operations. We may be unable to anticipate changing customer preferences and to respond in a timely manner by adjusting merchandise offerings, which could result in lower sales. 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. Increasing reliance on foreign vendors will subject us to uncertainties that could impact our cost to source merchandise and delay or prevent merchandise shipments. 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. Quarterly results of operations fluctuate and may be negatively impacted by a failure to predict sales trends and by seasonal influences. We face substantial competition from discount retailers in the women s apparel industry. Our success is dependent upon our senior management team. Lower demand for merchandise could reduce gross margins and cause us to slow our retail expansion. Our tax collection policy 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 stock price. 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.

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1018005--4/13/2006--COLDWATER_CREEK_INC