75288--3/31/2010--OXFORD_INDUSTRIES

related topics

{customer, product, revenue}

{acquisition, growth, future}

{operation, natural, condition}

{system, service, information}

{condition, economic, financial}

{operation, international, foreign}

{product, market, service}

{regulation, change, law}

{property, intellectual, protect}

{cost, regulation, environmental}

{personnel, key, retain}

{debt, indebtedness, cash}

Our business is and will continue to be heavily influenced by economic trends and general economic conditions. Economic conditions may continue to adversely affect our sales, increase our cost of goods sold or require us to significantly modify our business practices. We may be unable to successfully execute a key component of our business strategy, which is to grow our business through organic growth and/or acquisitions of lifestyle brands that fit within our business model, and any failure to successfully execute this aspect of our business strategy may have a material adverse effect on our business, financial condition, liquidity and results of operations. The apparel industry is highly competitive, and we face significant competitive threats to our business from various third parties that could reduce our sales, increase our costs, reduce price points for our products, and/or decrease margins. Our business could be harmed if we fail to maintain proper inventory levels. Our success depends on the reputation and value of our owned and licensed brand names, including, in particular, Tommy Bahama and Ben Sherman, and actions by us, our wholesale customers, licensees or others who have interests in our brands could diminish the reputation or value of our brands and adversely affect our business operations. The apparel industry is subject to rapidly evolving fashion trends, and we must continuously offer innovative and market appropriate products to maintain and grow our existing businesses. Failure to offer innovative and market appropriate products may adversely affect our sales and lead to excess inventory, markdowns and/or dilution of our brands. Our business depends on our senior management and other key personnel, and the unexpected loss of individuals integral to our business, our inability to attract and retain qualified personnel in the future or our failure to successfully plan for and implement succession of our senior management and key personnel may have an adverse effect on our operations, business relationships and ability to execute our strategies. We depend on a group of key customers for a significant portion of our wholesale sales. A significant adverse change in a customer relationship or in a customer's financial position could negatively impact our net sales and profitability. Our concentration of retail stores and wholesale customers for certain of our products exposes us to certain regional risks. Our foreign sourcing operations as well as the sale of products in foreign markets result in an exposure to fluctuations in foreign currency exchange rates. Divestitures of certain businesses or discontinuations of certain product lines may require us to find alternative uses for our resources. We make use of debt to finance our operations, which exposes us to risks that could adversely affect our business, financial position and operating results. We are dependent upon the availability of raw materials and the ability of our third-party producers, substantially all of whom are located in foreign countries, to meet our requirements; any failures by these producers to meet our requirements, or the unavailability of suitable producers or raw materials at reasonable prices may negatively impact our ability to deliver quality products to our customers on a timely basis or result in higher costs or reduced net sales. Since we source substantially all of our products from third-party producers located in foreign countries, our business is subject to legal, regulatory, political and economic risks, including risks relating to the importation of our products, and our products may become less competitive as a result of adverse changes affecting our international operations. Our operations are reliant on information technology, and any interruption or other failure in our information technology systems may impair our ability to compete effectively in the apparel industry, including our ability to provide services to our customers and meet the needs of management. We may be unable to protect our trademarks and other intellectual property or may otherwise have our brand names harmed. Our sales and operating results are influenced by weather patterns and natural disasters. We are dependent on a limited number of distribution centers, making our operations particularly susceptible to disruption. We may not be successful in identifying locations and negotiating appropriate lease terms for retail stores and restaurants. Our business, in particular our retail and restaurant operations, is subject to state and local laws and regulations for health, safety, labor and similar operational issues. The costs of compliance with, or the violation of, such laws and regulations could have an adverse effect on our costs or operations, and we may be adversely impacted by negative publicity surrounding any of these issues. We hold licenses for the use of other parties' brand names, and we cannot guarantee our continued use of such brand names or the quality or salability of such brand names. The acquisition of new businesses has certain inherent risks, including, for example, strains on our management team and unexpected acquisition costs. We operate in various countries with differing laws and regulations, which may impair our ability to maintain compliance with regulations and laws. Compliance with privacy and information laws and requirements could be costly, and a breach of information security or privacy could adversely affect our business.

Full 10-K form ▸

75288--3/31/2010--OXFORD_INDUSTRIES_INC