821002--4/15/2010--G_III_APPAREL_GROUP_LTD

related topics

{customer, product, revenue}

{acquisition, growth, future}

{condition, economic, financial}

{stock, price, operating}

{operation, natural, condition}

{product, market, service}

{cost, regulation, environmental}

{operation, international, foreign}

{loan, real, estate}

{competitive, industry, competition}

{personnel, key, retain}

{property, intellectual, protect}

{system, service, information}

Expansion of our product offerings involves significant costs and uncertainty and could adversely affect our results of operations. If our customers change their buying patterns, request additional allowances, develop their own private label brands or enter into agreements with national brand manufacturers to sell their products on an exclusive basis, our sales to these customers could be materially adversely affected. We have significant customer concentration, and the loss of one of our large customers could adversely affect our business. If we miscalculate the market for our products, we may end up with significant excess inventories for some products and missed opportunities for others. We are subject to the risks of doing business abroad. Fluctuations in the price, availability and quality of materials used in our products could have a material adverse effect on our cost of goods sold and our ability to meet our customers demands. Our trademark and other intellectual property rights may not be adequately protected. Risks Relating to Our Retail Outlet Business Expansion of our business into the retail sector involves significant costs and uncertainties. We will need to improve the results of operations of the acquired Wilsons retail outlet stores in order for these stores to operate profitably for us. We had no experience operating a retail chain prior to this acquisition. Leasing of significant amounts of real estate exposes us to possible liabilities and losses. Our retail outlet stores are heavily dependent on the ability and desire of consumers to travel and shop. A reduction in the volume of outlet mall traffic could adversely affect our retail sales. The retail business is intensely competitive and increased or new competition could have a material adverse effect on us. A privacy breach could adversely affect our business. Risk Factors Relating to the Operation of Our Business If we lose the services of our key personnel, our business will be harmed. We have expanded our business through acquisitions that could result in diversion of resources, an inability to integrate acquired operations and extra expenses. This could disrupt our business and adversely affect our financial condition. We may need additional financing to continue to grow. Our business is highly seasonal. Our results of operations may suffer in the event that the weather is unusually warm during the peak outerwear selling season. We are dependent upon foreign manufacturers. The construction and operation of our new warehouse facility could disrupt our business and adversely affect our financial condition and results of operations. Risk Factors Relating to the Economy and the Apparel Industry Recent and future economic conditions, including turmoil in the financial and credit markets, may adversely affect our business. Our ability to continue to have the necessary liquidity to operate our business may be adversely impacted by a number of factors, including a continuation of the difficult conditions in the credit and financial markets which could limit the availability and increase the cost of financing. A deterioration of our results of operations and cash flow resulting from continued decreases in consumer spending, could, among other things, impact our ability to comply with financial covenants in our existing credit facility. The cyclical nature of the apparel industry and uncertainty over future economic prospects and consumer spending could have a materially adverse effect on our results of operations. The competitive nature of the apparel industry may result in lower prices for our products and decreased gross profit margins. If major department, mass merchant and specialty store chains continue to consolidate, our business could be negatively affected. A significant increase in fuel prices could adversely affect our results of operations. If new legislation restricting the importation or increasing the cost of textiles and apparel produced abroad is enacted, our business could be adversely affected. The effects of war or acts of terrorism could adversely affect our business. Other Risks Relating to Ownership of Our Common Stock Our Chairman and Chief Executive Officer may be in a position to control matters requiring a stockholder vote. The price of our common stock has fluctuated significantly and could continue to fluctuate significantly. Our actual financial results might vary from our publicly disclosed financial forecasts.

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821002--4/15/2010--G_III_APPAREL_GROUP_LTD_/DE/