1202273--3/6/2008--GOLFSMITH_INTERNATIONAL_HOLDINGS

related topics

{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{stock, price, operating}

{tax, income, asset}

{acquisition, growth, future}

{system, service, information}

{operation, natural, condition}

{personnel, key, retain}

{cost, regulation, environmental}

{product, liability, claim}

{stock, price, share}

{loan, real, estate}

If we cannot hire a new Chief Executive Officer and maintain continuity of our executive team, our ability to effectively manage ongoing operations may be negatively impacted. We may be unable to expand our business if adequate capital is not available. If we fail to regain compliance with Nasdaq s audit committee requirements, our common stock may be delisted from the Nasdaq Global Select Market, which may reduce the price of our common stock and levels of liquidity available to our stockholders. If we fail to generate consistent positive cash flows at individual store locations we may be required to record future impairments of assets at our stores. Our sales and profits may be adversely affected if we or our suppliers fail to develop and introduce new and innovative products that appeal to our customers. Our growth will be adversely affected if we are unable to open new stores and operate them profitably. If our key suppliers limit the amount or variety of products they sell to us or if they fail to deliver products to us in a timely manner and upon customary pricing and payment terms, our sales and profitability may be reduced. Our sales could decline if we are unable to process increased traffic or prevent security breaches on our Internet site and our network infrastructure. We lease almost all of our store locations. If we are unable to maintain those leases or locate alternative sites for our stores on terms that are acceptable us, our net revenues and profitability could be adversely affected. Many of our stores are clustered in particular metropolitan areas, and an economic downturn or other adverse events in these areas may significantly reduce the sales for stores located in such areas. Our comparable store sales may decline, which could negatively impact our future operating performance. If we fail to generate sufficient revenue from our proprietary-branded products, we may have future impairments of trademark and trade-name intangible assets. If we fail to accurately target the appropriate segment of the consumer catalog market or if we fail to achieve adequate response rates to our catalogs, our sales and profitability may be adversely affected. Atlantic Equity Partners III, L.P. has significant influence over us, including the ability to nominate a majority of our board of directors, and its interests may conflict with the interests of our other stockholders. Our sales, profitability and company-wide operations would be adversely affected if the operations of our Austin, Texas call center or distribution and fulfillment center were interrupted or shut down. A disruption in the service or a significant increase in the cost of our primary delivery service for our direct-to-consumer operations would have a material adverse effect on our sales and profitability. An increase in the costs of mailing, paper, and printing our catalogs would adversely affect our profitability. If we are unable to enforce our intellectual property rights, our net revenues and profitability may decline. We may become subject to intellectual property suits that could cause us to incur substantial costs or pay substantial damages or prohibit us from selling our products. We may be subject to product warranty claims or product recalls which could harm our reputation, adversely affect our sales and cause us to incur substantial costs or pay substantial damages.

Full 10-K form ▸

1202273--3/6/2008--GOLFSMITH_INTERNATIONAL_HOLDINGS_INC