1318484--4/10/2006--Citi_Trends

related topics

{operation, natural, condition}

{loan, real, estate}

{customer, product, revenue}

{product, market, service}

{system, service, information}

{control, financial, internal}

{personnel, key, retain}

{financial, litigation, operation}

{acquisition, growth, future}

Our success depends on our ability to anticipate, identify and respond rapidly to changes in consumers fashion tastes, and our failure to evaluate adequately fashion trends could have a material adverse effect on our business, financial condition and results of operations. If we are unsuccessful in competing with our retail apparel competitors, our market share could decline or our growth could be impaired and, as a result, our financial results could suffer. We could experience a reduction in sales and revenues or reduced cash flows if we are unable to fulfill our current and future merchandising needs. As an apparel retailer, we rely on numerous third parties in the supply chain to produce and deliver the products that we sell, and our business may be negatively impacted by failure to comply with applicable law. If our growth strategy is unsuccessful, our financial condition and results of operation could suffer and the market price of our common stock could decline. A significant disruption to our distribution process or southeastern retail locations could have a material adverse effect on our business, financial condition and results of operations. Our sales in the Gulf Coast Region depend on the Region recovering from Hurricanes Katrina and Rita. Our net sales, inventory levels and earnings fluctuate on a seasonal basis, which makes our business more susceptible to adverse events that occur during those seasons. Our failure to implement and maintain effective internal controls in our business could have a material adverse effect on our business, financial condition, results of operations and stock price. We depend on the experience and expertise of our senior management team and key employees, and accordingly, the loss of the services of R. Edward Anderson or George A. Bellino could have a material adverse effect on our business strategy, operating costs, financial condition and results of operations. Failure to attract, train, assimilate and retain skilled personnel could have a material adverse effect on our growth strategy and financial condition. Legal proceedings to which we are a party result in an adverse judgment against us could have a material adverse effect on our business, financial condition and results of operations. Any failure of management information systems or the inability of third parties to continue to upgrade and maintain our systems could have a material adverse effect on our business, financial condition and results of operations. Our ability to attract consumers to our stores depends on the success of the strip shopping centers and downtown business districts where our stores are located.

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1318484--4/10/2006--Citi_Trends_Inc