764478--4/29/2009--BEST_BUY_CO

related topics

{condition, economic, financial}

{system, service, information}

{acquisition, growth, future}

{product, market, service}

{financial, litigation, operation}

{capital, credit, financial}

{personnel, key, retain}

{cost, operation, labor}

{operation, international, foreign}

{customer, product, revenue}

Economic conditions in the U.S. and key international markets, a decline in consumer discretionary spending or other conditions may materially adversely impact our operating results. If we do not anticipate and respond to changing consumer preferences in a timely manner, our operating results could materially suffer. Our results of operations could materially deteriorate if we fail to attract, develop and retain qualified employees. We face strong competition from traditional store-based retailers, Internet businesses and other forms of retail commerce, which could materially adversely affect our revenue and profitability. The failure to control our costs and reduce our expense structure could have a material adverse impact on our profitability. Our liquidity may be materially adversely affected by the financial crisis in the U.S. and key international markets. Changes in our credit ratings may limit our access to capital markets and materially increase our borrowing costs. Our growth is dependent on the success of our strategies. Our growth strategy includes expanding our business by opening stores both in existing markets and in new markets. Failure in our pursuit or execution of new business ventures, strategic alliances and acquisitions could have a material adverse impact on our business. Failure to protect the integrity and security of our customers' information could expose us to litigation and materially damage our standing with our customers. Risks associated with the vendors from whom our products are sourced could materially adversely affect our revenue and gross profit. We are subject to certain regulatory and legal developments which could have a material adverse impact on our business. Changes to the National Labor Relations Act could have a material adverse impact on our business. Regulatory developments in the U.S. could impact our private-label credit card financing offers and have a material adverse impact on our revenue and profitability. Our International activities subject us to risks associated with the legislative, judicial, accounting, regulatory, political and economic conditions specific to the countries or regions in which we operate, which could materially adversely affect our financial performance. We rely heavily on our management information systems for inventory management, distribution and other functions. If our systems fail to perform these functions adequately or if we experience an interruption in their operation, our business and results of operations could be materially adversely affected. A disruption in our relationship with Accenture, who helps us manage our information technology and human resources operations and conducts certain procurement activities, could materially adversely affect our business and results of operations. We have various commercial insurance agreements and sell extended warranties to customers on behalf of a subsidiary of AIG, whose parent company has experienced and continues to experience financial difficulties. We are highly dependent on the cash flows and net earnings we generate during our fourth fiscal quarter, which includes the majority of the holiday selling season.

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764478--4/29/2009--BEST_BUY_CO_INC