740670--4/2/2009--MICHAELS_STORES

related topics

{system, service, information}

{condition, economic, financial}

{cost, operation, labor}

{customer, product, revenue}

{debt, indebtedness, cash}

{operation, natural, condition}

{gas, price, oil}

{product, liability, claim}

{stock, price, operating}

{personnel, key, retain}

{acquisition, growth, future}

{competitive, industry, competition}

Our financial performance is subject to various risks and uncertainties. The risks described below are those which we believe are the material risks we face. Any of the risk factors described below could significantly and adversely affect our business, prospects, financial condition, and results of operations. We Face Risks Related to the Effect of General Economic Conditions and the Current Financial Crisis We Face Risks Related to Our Substantial Indebtedness Our Debt Agreements Contain Restrictions That Limit Our Flexibility in Operating Our Business Our Growth Depends on Our Ability to Open New Stores Our Success Will Depend on How Well We Manage Our Business Changes in Customer Demands Could Materially Adversely Affect Our Sales, Operating Results, and Cash Flow Unexpected or Unfavorable Consumer Responses to Our Promotional or Merchandising Programs Could Materially Adversely Affect Our Sales, Operating Results, and Cash Flow Changes in Newspaper Subscription Rates May Result in Reduced Exposure to Our Circular Advertisements Improvements to Our Supply Chain May Not Be Fully Successful Our Reliance on Foreign Suppliers Increases Our Risk of Obtaining Adequate, Timely, and Cost-Effective Product Supplies Risks Associated With the Vendors from Whom our Products are Sourced Could Materially Adversely Affect our Revenue and Gross Profit Product Recalls and/or Product Liability, as well as Changes in Product Safety and Other Consumer Protection Laws, May Adversely Impact Our Operations, Merchandise Offerings, Reputation and Financial Position Significant Increases in Inflation or Commodity Prices such as Petroleum, Natural Gas, Electricity, Steel and Paper May Adversely Affect Our Costs, Including Cost of Merchandise We Are Co-sourcing Certain of Our Information Technology and Accounts Payable Functions and May Co-source Other Administrative Functions, Which Will Make Us More Dependent Upon Third Parties Our Information Systems May Prove Inadequate We May Fail to Optimize or Adequately Maintain Our Perpetual Inventory and Automated Replenishment Systems Failure to Adequately Maintain the Security of Our Electronic and Other Confidential Information Could Materially Adversely Affect Our Financial Condition and Operating Results If the Employee Free Choice Act Is Adopted, It Would Be Easier for Our Employees to Obtain Union Representation and Our Businesses Could Be Adversely Impacted A Weak Fourth Quarter Would Materially Adversely Affect Our Operating Results Competition Could Negatively Impact Our Operations The Interests of Our Controlling Stockholders May Conflict with the Interests of Our Creditors

Full 10-K form ▸

740670--4/2/2009--MICHAELS_STORES_INC