75288--7/31/2007--OXFORD_INDUSTRIES

related topics

{customer, product, revenue}

{acquisition, growth, future}

{operation, natural, condition}

{operation, international, foreign}

{product, market, service}

{property, intellectual, protect}

{condition, economic, financial}

{system, service, information}

{regulation, change, law}

{personnel, key, retain}

{financial, litigation, operation}

{debt, indebtedness, cash}

{cost, operation, labor}

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, result in reduced price points for our products and/or result in decreased margins. The apparel industry is subject to rapidly evolving fashion trends, and we must continuously offer innovative and upgraded products to maintain and grow our existing businesses. Failure to offer innovative and upgraded products may adversely affect our sales and lead to excess inventory, markdowns and/or dilution of our brands. The acquisition of new businesses has certain inherent risks, including, for example, strains on our management team, unexpected acquisition costs, and, in some instances, contingent payments. Divestitures of certain businesses or discontinuations of certain product lines which occur may require us to find alternative uses for our resources. The loss of key management or our inability to attract and retain qualified personnel in the future may have an adverse effect on our business, financial condition and operating results. The apparel industry has experienced price deflation in recent years, and price reductions in our products in the future could put downward pressure on our net sales and margins. We depend on a group of key customers for a significant portion of our sales. A significant adverse change in a customer relationship or in a customer s financial position could negatively impact our net sales and profitability. Fluctuations in prices and availability of raw materials could cause delays in product deliveries to our customers and increase our costs of goods sold. We are dependent upon our third party producers and sourcing agents ability to meet our requirements; any failures by these producers and sourcing agents to meet our requirements, or the unavailability of suitable producers and sourcing agents in the future, 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. Our reliance on foreign sourcing operations expose us to risks that could result in higher costs, loss of sales or impaired customer goodwill. Our business is subject to regulatory risks associated with importing products and our products may become less competitive as a result of changes in the regulatory environment. We may be unable to protect our trademarks and other intellectual property or may otherwise have our brand names harmed. 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. Our sales and operating results are influenced by weather patterns and natural disasters. 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. We are dependent on a limited number of distribution centers, making our operations particularly susceptible to disruption. We rely on our licensing partners to preserve the value of our brands and as a source of royalty income. 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. We may not be successful in operating existing retail stores and restaurants or in opening new retail stores and restaurants. Our concentration of retail stores and wholesale customers for certain of our products exposes us to certain regional risks. Our restaurant operations may be negatively impacted by regulatory issues or by health, safety, labor and similar operational issues, or by publicity surrounding any of these issues. We operate in various countries with differing laws and regulations, which may impair our ability to maintain compliance with regulations and laws. 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.

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75288--7/31/2007--OXFORD_INDUSTRIES_INC