19353--4/11/2006--CHARMING_SHOPPES

related topics

{product, market, service}

{operation, natural, condition}

{condition, economic, financial}

{regulation, change, law}

{acquisition, growth, future}

{cost, operation, labor}

{capital, credit, financial}

{personnel, key, retain}

{property, intellectual, protect}

{tax, income, asset}

{provision, law, control}

{customer, product, revenue}

{system, service, information}

{stock, price, operating}

RISKS RELATED TO OUR BUSINESS AND INDUSTRY Our business is dependent upon our ability to accurately predict rapidly changing fashion trends, customer preferences, and other fashion-related factors. Existing and increased competition in the women's retail apparel and direct-to-consumer markets may reduce our net revenues, profits, and market share. A slowdown in the United States economy, an uncertain economic outlook, and escalating energy costs could lead to reduced consumer demand for our products in the future. Maintaining and improving our operating margins is dependent on our ability to successfully control our operating costs. Our operating results fluctuate from season to season. We may not be able to obtain sufficient working capital financing. We face challenges in managing our recent growth. We depend on key personnel and may not be able to retain or replace these employees or recruit additional qualified personnel. Our business plan is largely dependent upon continued growth in the plus-size women s apparel market. We could be materially and adversely affected if any of our distribution or fulfillment centers are shut down. Natural disasters, war, acts of terrorism, or the threat of either may negatively impact the availability of merchandise and otherwise adversely impact our business. Our inability to successfully manage customer service or fulfillment for our E-commerce websites or our catalog business could adversely impact our operating results. We rely on foreign sources of production. Issues of global workplace conditions may adversely affect our business. We depend on strip shopping center and mall traffic and our ability to identify suitable store locations for our Retail Stores segment. We may be unable to protect our trademarks and other intellectual property rights. Anti-takeover provisions in our governing documents and Pennsylvania law may discourage other companies from attempting to acquire us. Failure to comply with the provisions of the Sarbanes-Oxley Act of 2002 could adversely affect our business. New accounting rules or regulations or changes in existing rules or regulations could adversely impact our reported results of operations. Changes in estimates related to our property, plant, equipment, or our intangible assets could adversely affect our reported results of operations.

Full 10-K form ▸

19353--4/11/2006--CHARMING_SHOPPES_INC