869487--9/22/2006--TANDY_BRANDS_ACCESSORIES

related topics

{customer, product, revenue}

{operation, international, foreign}

{condition, economic, financial}

{competitive, industry, competition}

{personnel, key, retain}

{product, market, service}

{acquisition, growth, future}

{regulation, change, law}

{capital, credit, financial}

We do not maintain long-term contracts with our customers and are unable to control their purchasing decisions. Direct sales to customers by suppliers could negatively impact our sales. We extend unsecured credit to our customers and are subject to potential financial difficulties they may face. The loss of certain of our license agreements could result in the loss of significant sales. Manufacturing and distribution problems could delay product shipments. The loss of, or problems with, third-party manufacturers could adversely impact our operations. Our business is dependent on our ability to maintain proper inventory levels. Increases in the market price of leather could negatively affect our operating results. Risks Relating To Our Industry Our business is highly subject to consumer preferences and fashion trends. Our industry is highly competitive and subject to pricing pressures that could adversely affect our financial position. Our industry is highly subject to economic cycles and retail industry conditions. Consolidation in the retail industry may negatively impact our operations. Risks Relating To International Operations We source many of our products from foreign countries. Fluctuations in foreign currencies could adversely impact our financial condition. Risks Relating To Our Company Our business depends on a limited number of key personnel with whom we do not have employment agreements. The loss of any one of these individuals could disrupt our business. We are dependent on the creative talent of our designers and the effectiveness of our sales personnel. The failure to successfully integrate future acquisitions could negatively impact our business. The requirements of complying with the Exchange Act and the Sarbanes-Oxley Act may strain our resources.

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869487--9/22/2006--TANDY_BRANDS_ACCESSORIES_INC