1318008--3/23/2006--Zumiez

related topics

{customer, product, revenue}

{operation, natural, condition}

{personnel, key, retain}

{operation, international, foreign}

{acquisition, growth, future}

{system, service, information}

{debt, indebtedness, cash}

{financial, litigation, operation}

{condition, economic, financial}

{property, intellectual, protect}

{competitive, industry, competition}

{stock, price, operating}

{investment, property, distribution}

Our ability to attract customers to our stores depends heavily on the success of the shopping malls in which our stores are located; any decrease in customer traffic in those malls could cause our sales to be less than expected. Our sales and inventory levels fluctuate on a seasonal basis, leaving our operating results particularly susceptible to changes in back-to-school and holiday shopping patterns. Our quarterly results of operations are volatile and may decline. Our business is susceptible to weather conditions that are out of our control, and unseasonable weather could have a negative impact on our results of operations. We may be unable to compete favorably in the highly competitive retail industry, and if we lose customers to our competitors, our sales could decrease. If we fail to maintain good relationships with vendors or if a vendor is otherwise unable or unwilling to supply us with adequate quantities of their products at acceptable prices, our business and financial performance could suffer. If we lose key management or are unable to attract and retain the talent required for our business, our financial performance could suffer. Our failure to meet our staffing needs could adversely affect our ability to implement our growth strategy and could have a material impact on our results of operations. Our operations, including our sole distribution center, are concentrated in the western United States, which makes us susceptible to adverse conditions in this region. We are required to make substantial rental payments under our operating leases and any failure to make these lease payments when due would likely have a material adverse effect on our business and growth plans. The terms of our revolving credit facility impose operating and financial restrictions on us that may impair our ability to respond to changing business and economic conditions. This impairment could have a significant adverse impact on our business. Our business could suffer as a result of United Parcel Service being unable to distribute our merchandise. Our business could suffer if a manufacturer fails to use acceptable labor practices. Our failure to adequately anticipate a correct mix of private label merchandise may have a material adverse effect on our business. Most of our merchandise is produced by foreign manufacturers; therefore the availability and costs of these products may be negatively affected by risks associated with international trade and other international conditions. If our information systems hardware or software fails to function effectively or does not scale to keep pace with our planned growth, our operations could be disrupted and our financial results could be harmed. Our inability or failure to protect our intellectual property or our infringement of other s intellectual property could have a negative impact on our operating results. The effects of war or acts of terrorism could adversely affect our business. Failure to successfully integrate any businesses or stores that we acquire could have an adverse impact on our results of operations and financial performance. The outcome of litigation could have a material adverse effect on our business. Our Internet operations subject us to numerous risks that could have an adverse effect on our results of operations.

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1318008--3/23/2006--Zumiez_Inc