1113809--3/15/2007--BUILD_A_BEAR_WORKSHOP

related topics

{stock, price, operating}

{customer, product, revenue}

{operation, international, foreign}

{cost, operation, labor}

{product, market, service}

{cost, regulation, environmental}

{property, intellectual, protect}

{condition, economic, financial}

{provision, law, control}

{investment, property, distribution}

{system, service, information}

{cost, contract, operation}

{personnel, key, retain}

{acquisition, growth, future}

{gas, price, oil}

Our future growth and profitability could be adversely affected if our marketing initiatives are not effective in generating sufficient levels of brand awareness and guest traffic. If we are not able to generate and maintain comparable store sales growth and continue to have negative comparable store performance, our results of operations could be adversely affected. A decrease in the customer traffic generated by the shopping malls in which we are located, which we depend upon to attract guests to our stores, could adversely affect our financial condition and profitability. A decline in general economic conditions could lead to reduced consumer demand for our products and have an adverse effect on our liquidity and profitability. Our market share may be adversely impacted at any time by a significant number of competitors. Our merchandise is manufactured by foreign manufacturers; therefore the availability and costs of our products may be negatively affected by risks associated with international manufacturing and trade. Our distribution vendors may perform poorly, and we may be unable to realize the anticipated benefits from our company-owned distribution center. We rely on a few vendors to supply substantially all of our merchandise, and any disruption in their ability to deliver merchandise could harm our ability to source products and supply inventory to our stores. If we are unable to renew or replace our store leases or enter into leases for new stores on favorable terms, or if we violate any of the terms of our current leases, our growth and profitability could be harmed. Our growth strategy requires us to open a significant number of new stores in the United States, Canada, the United Kingdom, and Ireland each year. If we are not able to open new stores or to effectively manage this growth, it could adversely affect our ability to grow and could significantly harm our profitability. We may not be able to operate successfully if we lose key personnel, are unable to hire qualified additional personnel, or experience turnover of our management team. We may not realize some of the expected benefits of the acquisition of Amsbra and The Bear Factory, including making these operations profitable in light of the substantial costs of these operations. If we are not able to franchise new stores outside of the United States, Canada and the U.K., if we are unable to effectively manage our international franchises or if the laws relating to our international franchises change, our growth and profitability could be adversely affected and we could be exposed to additional liability. We may suffer negative publicity or be sued if the manufacturers of our merchandise violate labor laws or engage in practices that our guests believe are unethical, or if our products are recalled or cause injuries. Portions of our business are subject to privacy and security risks. If we improperly obtain, or are unable to protect, information from our guests, we could be subject to liability and damage to our reputation. We may fail to protect our intellectual property and may have infringement, misappropriation or other disputes or litigation with third parties, which could be costly, distract our management and personnel and which could result in the diminution in value of our trademarks and other important intellectual property. Our profitability could be adversely affected by high petroleum products prices. Risks Related to Owning Our Common Stock Fluctuations in our quarterly results of operations could cause the price of our common stock to substantially decline. The market price of our common stock may be materially adversely affected by market volatility which could result in costly and time-consuming securities litigation. Our certificate of incorporation and bylaws and Delaware law contain provisions that may prevent or frustrate attempts to replace or remove our current management by our stockholders, even if such replacement or removal may be in our stockholders best interests.

Full 10-K form ▸

1113809--3/15/2007--BUILD_A_BEAR_WORKSHOP_INC