1310067--3/15/2006--SEARS_HOLDINGS_CORP

related topics
{stock, price, operating}
{cost, operation, labor}
{customer, product, revenue}
{system, service, information}
{competitive, industry, competition}
{personnel, key, retain}
{condition, economic, financial}
{operation, international, foreign}
{regulation, change, law}
{product, liability, claim}
If we fail to offer merchandise and services that our customers want, our sales may be limited, which would reduce our revenues and profits. If we do not successfully manage our inventory levels, our operating results will be adversely affected. If we are unable to compete effectively in the highly competitive retail industry, our business and results of operations could be materially adversely affected. Our failure to successfully integrate Kmart and Sears may cause us to fail to realize cost savings and other benefits, which could adversely affect our future results. Due to the seasonality of our business, our annual operating results would be adversely affected if our fourth quarter results fail to meet our expectations. Our comparable store sales may fluctuate for a variety of reasons, which could adversely affect our results of operations. We rely on foreign sources for significant amounts of our merchandise, and our business may therefore be negatively affected by the risks associated with international trade. A decline in general economic conditions, consumer spending levels and other conditions could lead to reduced consumer demand for our merchandise thereby reducing our revenues and gross margins. We rely extensively on computer systems to process transactions, summarize results and manage our business. Disruptions in these systems could harm our ability to run our business. The loss of key personnel may disrupt our business and adversely affect our financial results. Affiliates of our Chairman, whose interests may be different than your interests, exert substantial influence over our company. We may be subject to product liability claims if people or property are harmed by the products we sell. We may be subject to periodic litigation and other regulatory proceedings. These proceedings may be affected by changes in laws and government regulations or changes in the enforcement thereof.

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