719955--4/3/2008--WILLIAMS_SONOMA

related topics

{product, market, service}

{system, service, information}

{acquisition, growth, future}

{stock, price, operating}

{customer, product, revenue}

{cost, operation, labor}

{regulation, change, law}

{operation, international, foreign}

{cost, contract, operation}

{personnel, key, retain}

{operation, natural, condition}

{property, intellectual, protect}

{financial, litigation, operation}

{control, financial, internal}

{condition, economic, financial}

{tax, income, asset}

{product, liability, claim}

{stock, price, share}

{capital, credit, financial}

We must successfully identify and analyze factors affecting our business, anticipate changing consumer preferences and buying trends, and manage our inventory commensurate with customer demand. Our business depends, in part, on factors affecting consumer spending that are out of our control. We face intense competition from companies with brands or products similar to ours. We depend on key domestic and foreign agents and vendors for timely and effective sourcing of our merchandise, and we are subject to various risks and uncertainties that might affect our vendors ability to produce quality merchandise. Our dependence on foreign vendors and our increased overseas operations subject us to a variety of risks and uncertainties. The growth of our sales and profits depends, in large part, on our ability to successfully open new stores. We must timely and effectively deliver merchandise to our stores and customers. Our failure to successfully manage our order-taking and fulfillment operations could have a negative impact on our business. Our facilities and systems, as well as those of our vendors, are vulnerable to natural disasters and other unexpected events, any of which could result in an interruption in our business. We experience fluctuations in our comparable store sales. Our failure to successfully manage the costs and performance of our catalog mailings might have a negative impact on our business. We must successfully manage our Internet business. Our failure to successfully anticipate merchandise returns might have a negative impact on our business. We must successfully manage the complexities associated with a multi-channel and multi-brand business. We may not be able to introduce new brands and brand extensions, or to reposition existing brands, to improve our business. Our inability to obtain commercial insurance at acceptable prices or our failure to adequately reserve for self-insured exposures might have a negative impact on our business. Our inability or failure to protect our intellectual property would have a negative impact on our business. We may be subject to legal proceedings that could be time consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. We need to successfully manage our employment, occupancy and other operating costs. We are undertaking certain systems changes that might disrupt our business operations. We outsource certain aspects of our business to third party vendors that subject us to risks, including disruptions in our business and increased costs. Our operating and financial performance in any given period might not meet the extensive guidance that we have provided to the public. Our quarterly operating results might fluctuate due to a variety of factors, including seasonality. We may require external funding sources for operating funds. We will require a significant amount of cash to pay quarterly dividends at intended levels and for our stock repurchase programs. We are exposed to potential risks from legislation requiring companies to evaluate controls under Section 404 of the Sarbanes-Oxley Act of 2002. Changes to accounting rules or regulations may adversely affect our operating results. Changes to estimates related to our property and equipment, or operating results that are lower than our current estimates at certain store locations, may cause us to incur impairment charges. We must properly account for our unredeemed gift certificates, gift cards and merchandise credits. We may experience fluctuations in our tax obligations and effective tax rate. We rely on the services of key personnel, whose knowledge of our business and expertise would be difficult to replace. We may be exposed to risks and costs associated with credit card fraud and identity theft that could cause us to incur unexpected expenditures and loss of revenue.

Full 10-K form ▸

719955--4/3/2008--WILLIAMS_SONOMA_INC