1071625--3/31/2010--DOVER_SADDLERY

related topics

{acquisition, growth, future}

{stock, price, share}

{customer, product, revenue}

{system, service, information}

{condition, economic, financial}

{property, intellectual, protect}

{stock, price, operating}

{cost, operation, labor}

{operation, international, foreign}

{product, market, service}

{competitive, industry, competition}

{tax, income, asset}

{operation, natural, condition}

{personnel, key, retain}

{debt, indebtedness, cash}

{regulation, change, law}

Current economic conditions and the global financial crisis may have an impact on our business and financial condition in ways that we currently cannot predict. A decline in discretionary consumer spending and related externalities could reduce our revenues. Material changes in cash flow and debt levels may adversely affect our growth and credit facilities, require the immediate repayment of all our loans, and limit the ability to open new stores. Our market is highly competitive and we may not continue to compete successfully. If the economic recession continues or we cannot successfully execute our planned retail store expansion, our growth and profitability would be adversely impacted. We may continue to be unable to open new stores and enter new markets successfully. Our stock price may fluctuate based on market expectations. The future sale of shares of our common stock and limited liquidity may negatively impact our stock price. Technology failures and privacy and security breaches could adversely affect the company s business. If our information technology systems fail to perform as designed or if we need to make system changes in order to support our growing direct and retail store businesses, there may be disruptions in operations. Our growth may strain operations, and finances, which could adversely affect our business and financial results. Our quarterly operating results are subject to significant fluctuation. If businesses we acquire do not perform as well as we expect or have liabilities that we are not aware of, we could suffer consequences that would substantially reduce our revenues, earnings and cash flows. Our shareholders may experience dilution in their ownership positions. In addition to causing dilution, stock option grants increase compensation expense and may negatively impact our stock price. If we cannot continue to successfully generate demand from our direct market channel, it would negatively impact our growth and profitability. The expected re-launch of our retail store rollout could cannibalize existing sales from our direct market channel or existing retail locations. When we are able to re-launch our retail store expansion plan, our quarterly revenues and earnings could be variable and unpredictable and inventory levels will increase. We rely on service providers to operate our business and any disruption of or substantial increases in the costs of their supply of services could have an adverse impact on our revenues and profitability. We rely on merchandise suppliers to operate our business and any disruption of their supply of products could have an adverse impact on our revenues and profitability. If we do not properly manage our inventory levels, our operating results and available funds for future growth will be adversely affected. A natural disaster or other disruption at our Littleton, MA warehouse fulfillment center could cause us to lose merchandise and be unable to deliver products to our direct sales customers and our retail stores. If we lose key members of management or are unable to retain the talent required for our business, our operating results could suffer. We may need additional financing to execute our growth strategy, which may not be available on favorable terms or at all, which could increase our costs, limit our ability to grow and dilute the ownership interests of existing shareholders. We rely on foreign sources for many of our products, which subjects us to various risks. When we re-launch our retail store expansion strategy, it may result in our direct market channel establishing a nexus with additional states, which may cause our business to pay additional income and sales tax and have an adverse effect on the demand and related cash flows from our direct market channel. If we fail to adequately protect our trademarks, our brand and reputation could be impaired or diluted and we could lose customers. We may have disputes with, or be sued by, third parties for infringement or misappropriation of their proprietary rights, which could have a negative impact on our business. We are subject to numerous regulations and regulatory changes that could impact our business or require us to modify our current business practices.

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1071625--3/31/2010--DOVER_SADDLERY_INC