1160858--5/1/2008--TRUE_RELIGION_APPAREL

related topics

{product, market, service}

{stock, price, operating}

{customer, product, revenue}

{condition, economic, financial}

{property, intellectual, protect}

{competitive, industry, competition}

{operation, international, foreign}

{system, service, information}

{financial, litigation, operation}

{cost, regulation, environmental}

{personnel, key, retain}

{acquisition, growth, future}

{product, candidate, development}

{product, liability, claim}

Risks Relating to Our Industry Our business may be negatively impacted as a result of the current downturn in the United States economy. 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 The matters relating to the voluntary review of our past equity award practices and the restatement of the Company's consolidated financial statements may result in litigation and governmental enforcement actions. 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. Our ability to conduct business in international markets may be affected by legal, regulatory, political and economic risks. 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. Corporate insiders or their affiliates may be able to exercise significant control matters requiring a vote of our stockholders and their interests may differ from the interests of our other stockholders. Our licensees may not comply with our product quality, manufacturing standards, marketing and other requirements. Our quarterly revenues 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 share-based compensation and potential fluctuations in our annualized tax rate, which may result in volatility of our stock price.

Full 10-K form ▸

1160858--5/1/2008--TRUE_RELIGION_APPAREL_INC