827187--2/25/2010--SELECT_COMFORT

related topics

{cost, regulation, environmental}

{condition, economic, financial}

{customer, product, revenue}

{product, market, service}

{acquisition, growth, future}

{personnel, key, retain}

{operation, natural, condition}

{operation, international, foreign}

{property, intellectual, protect}

{provision, law, control}

{competitive, industry, competition}

{cost, operation, labor}

Current and future economic conditions could materially adversely affect our sales, profitability, cash flows and financial condition. A reduction in the availability of credit to consumers generally or under our existing consumer credit programs could harm our sales, profitability, cash flows and financial condition. Our future growth and profitability depends upon the effectiveness and efficiency of our marketing programs. Our future growth and profitability depends on our ability to execute our retail store distribution strategy. Our future growth and profitability depends on continuous improvement in our products and services. A failure to achieve and maintain a high level of product quality could negatively impact our sales, profitability, cash flows and financial condition. Significant competition in our industry could adversely affect our business We may be unable to prevent other companies from using our technology or intellectual property in connection with the sale of competitive products. We utilize just-in-time manufacturing processes with minimal levels of inventory, which could leave us vulnerable to shortages in supply that may harm our ability to satisfy consumer demand and may adversely impact our sales and profitability. We rely upon several key suppliers that are, in some instances, the only source of supply currently used by us for particular materials, components or services. A disruption in the supply or substantial increase in cost of any of these products or services could harm our sales, profitability, cash flows and financial condition. Fluctuations in commodity prices could result in an increase in component costs and/or delivery costs. Our business is subject to risks inherent in global sourcing activities. Disruption of operations in either of our two manufacturing facilities could increase our costs of doing business or lead to delays in shipping our beds. Our manufacturing and retail operations are subject to a wide variety of government regulations which could increase costs or cause disruptions to our operations Regulatory requirements related to flammability standards for mattresses may increase our product costs and increase the risk of disruption to our business. We may be unable to sustain sufficient financial resources to finance our operations and growth. Our management information systems may not be adequate to meet the evolving needs of our business as well as existing and emerging regulatory requirements. The loss of the services of any members of our executive management team could adversely impact our ability to execute our business strategy. Our charter and corporate documents and Minnesota law make a takeover of our company more difficult and expensive, which may prevent certain changes in control and limit the market price of our common stock. Risks of certain global events, such as terrorist attacks or a pandemic outbreak, could adversely impact our sales, profitability, financial condition or stock price.

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827187--2/25/2010--SELECT_COMFORT_CORP