1160858--3/27/2007--TRUE_RELIGION_APPAREL

related topics

{stock, price, operating}

{property, intellectual, protect}

{customer, product, revenue}

{condition, economic, financial}

{product, market, service}

{stock, price, share}

{control, financial, internal}

{cost, operation, labor}

{personnel, key, retain}

{competitive, industry, competition}

{acquisition, growth, future}

{cost, regulation, environmental}

{regulation, change, law}

Our continued operations depend on current fashion trends. If our products and design 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 depend on third parties for significant elements of our sales and distribution efforts. If these third parties do not continue to assist us in our sales and distribution, our revenue could decrease, which would have an adverse impact on our business Our business may be negatively impacted as a result of changes in the economy. Our quarterly revenues and operating results fluctuate as a result of a variety of factors, including seasonal fluctuations in demand for high-fashion denim apparel and accessories delivery date delays and potential fluctuations in our annualized tax rate, which may result in volatility of our stock price. 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. 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. Our business could be harmed if we fail to maintain proper inventory levels. Purchases of the merchandise we sell are generally discretionary and are therefore particularly susceptible to economic slowdowns. Our business could suffer if we need to add or replace manufacturers. Our stock price is highly volatile. Our business could suffer from the financial instability of our customers. 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. Government regulation and supervision could restrict our business. Increases in the price of raw materials or their reduced availability could increase our cost of sales and decrease our profitability. 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. If our competitors misappropriate our proprietary know-how and trade secrets, it could have a material adverse affect on our business. One principal stockholder is able to control substantially all matters requiring a vote of our stockholders and his interests may differ from the interests of our other stockholders. We are still exposed to potential risks from recent legislation requiring public companies to evaluate controls under Section 404 of the Sarbanes-Oxley Act of 2002. We do not expect to declare or pay any dividends. Our success is dependent on our ability to protect our worldwide intellectual property rights, and our inability to enforce these rights could harm our business. Our products may infringe upon the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products.

Full 10-K form ▸

1160858--3/27/2007--TRUE_RELIGION_APPAREL_INC