1059272--9/14/2006--BEBE_STORES

related topics

{customer, product, revenue}

{property, intellectual, protect}

{operation, international, foreign}

{stock, price, share}

{stock, price, operating}

{condition, economic, financial}

{system, service, information}

{cost, operation, labor}

{product, market, service}

{control, financial, internal}

{personnel, key, retain}

{acquisition, growth, future}

{competitive, industry, competition}

{operation, natural, condition}

RISKS RELATING TO OUR BUSINESS: The success of our business depends in large part on our ability to identify fashion trends as well as to react to changing customer demand in a timely manner. If we are unable to obtain raw materials, unable to find manufacturing facilities or our manufacturers perform unacceptably, our sales may be negatively affected and our financial condition may be harmed. Our success depends on our ability to attract and retain key employees in order to support our existing business and future expansion. If we are not able to successfully develop new concepts, including BEBE SPORT and Neda by bebe, our revenue base and earnings may be impaired. There can be no assurance that future store openings will be successful and new store openings may impact existing stores. We are subject to risks associated with our on-line sales. Any serious disruption at our major facilities could have a harmful effect on our business. We rely on information technology, the disruption of which could adversely impact our business. We face significant competition in the retail and apparel industry, which could harm our sales and profitability. Purchases of the merchandise we sell are generally discretionary and are therefore particularly susceptible to economic conditions. Our business could be adversely impacted by unfavorable international political conditions. If we are not able to successfully protect our intellectual property our ability to capitalize on the value of our brand name may be impaired. If an independent manufacturer violates labor or other laws, or is accused of violating any such laws, or if their labor practices diverge from those generally accepted as ethical, it could harm our business and brand image. RISKS RELATING TO OUR COMMON STOCK: Our stock price may fluctuate because of the small number of shares that can be publicly traded and the low average daily trading volumes. Our sales, margins and operating results are subject to seasonal and quarterly fluctuations. Because Manny Mashouf and Neda Mashouf beneficially own 73% of the outstanding shares, other shareholders may not be able to influence the direction the company takes. Failure to comply with Section 404 of the Sarbanes-Oxley Act of 2002 could negatively impact investor confidence.

Full 10-K form ▸

1059272--9/14/2006--BEBE_STORES_INC