1168213--4/1/2008--AEROPOSTALE

related topics

{customer, product, revenue}

{system, service, information}

{acquisition, growth, future}

{operation, international, foreign}

{property, intellectual, protect}

{personnel, key, retain}

Foreign suppliers manufacture most of our merchandise and the availability and costs of these products may be negatively affected by risks associated with international trade. We rely on a small number of vendors to supply a significant amount of our merchandise. Our business could suffer as a result of a manufacturer s inability to produce merchandise on time and to our specifications. Our ability to attract customers to our stores depends heavily on the success of the shopping malls in which we are located. Failure of new business concepts would have a negative effect on our results of operations. Our business could suffer if a manufacturer fails to use acceptable labor practices. Our foreign sources of production may not always be reliable, which may result in a disruption in the flow of new merchandise to our stores. Our growth strategy relies on the continued addition of a significant number of new stores each year, which could strain our resources and cause the performance of our existing stores to suffer. Our continued expansion plan is dependent on a number of factors which, if not implemented, could delay or prevent the successful opening of new stores and penetration into new markets. The loss of the services of key personnel could have a material adverse effect on our business. A substantial interruption in our information systems could have a material adverse effect on our business. There is an increased risk in operating stores in foreign countries. Our net sales and inventory levels fluctuate on a seasonal basis. We rely on a third party to manage our distribution centers. We rely on a third party to manage the warehousing and order fulfillment for our E-Commerce business. Failure to protect our trademarks adequately could negatively impact our brand image and limit our ability to penetrate new markets.

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1168213--4/1/2008--AEROPOSTALE_INC