1160858--3/11/2009--TRUE_RELIGION_APPAREL

related topics

{product, market, service}

{operation, international, foreign}

{cost, regulation, environmental}

{customer, product, revenue}

{condition, economic, financial}

{property, intellectual, protect}

{competitive, industry, competition}

{system, service, information}

{personnel, key, retain}

{stock, price, operating}

{acquisition, growth, future}

{operation, natural, condition}

{product, candidate, development}

{product, liability, claim}

Risks Relating to Our Industry Our business may be negatively impacted by general economic conditions and the current global financial crisis. Our continued operations depend on current fashion trends. If our designs and products do not continue to be fashionable, our business could be adversely affected. Our business and the success of our products could be harmed if we are unable to maintain our brand image. We face intense competition, including competition from companies with significantly greater resources than ours, and if we are unable to compete effectively with these companies, our market share may decline and our business could be harmed. Increases in the price of raw materials or their reduced availability could increase our cost of goods and decrease our profitability. Risks Related to Our Business We may be unable to sustain our past growth or manage our future growth, which may have a material adverse effect on our future operating results. Our business could be harmed if we fail to maintain proper inventory levels. Increasing the number of branded company-operated stores will require us to develop new capabilities and increase our expenditures. We must successfully maintain and/or upgrade our information technology systems. We rely on contract manufacturing of our products. Our inability to secure production sources meeting our quality, cost, working conditions and other requirements, or failures by our contractors to perform, could harm our sales, service levels and reputation. Our success depends on the continued protection of our trademark and other proprietary intellectual property rights. Our business could suffer from the financial instability of our customers. A significant disruption at our distribution center could have a material adverse impact on our business and operating results. Our ability to conduct business in international markets may be affected by legal, regulatory, political and economic risks. Foreign currency fluctuations could adversely impact our financial condition and results of operations The loss of our Chief Executive Officer or other key management personnel would have an adverse impact on our future development and could impair our ability to succeed. Our licensees may not comply with our product quality, manufacturing standards, marketing and other requirements. Violation of labor laws and practices by our licensees or suppliers could harm our business Our quarterly sales and operating results fluctuate as a result of a variety of factors, including seasonal fluctuations in demand for premium denim and related apparel, and accessories, delivery date delays, timing of new store openings, recognition of stock-based compensation and potential fluctuations in our annualized tax rate, which may result in volatility of our stock price.

Full 10-K form ▸

1160858--3/11/2009--TRUE_RELIGION_APPAREL_INC