874841--3/30/2007--PACIFIC_SUNWEAR_OF_CALIFORNIA_INC

related topics
{cost, operation, labor}
{product, market, service}
{customer, product, revenue}
{system, service, information}
{stock, price, operating}
{personnel, key, retain}
{financial, litigation, operation}
Our failure to identify and respond appropriately to changing consumer preferences and fashion trends in a timely manner could have a material adverse impact on our profitability. Our continued growth depends on our ability to develop new store concepts and to open, expand and remodel stores in our existing concepts on a profitable basis. Any failure to do so may negatively impact our stock price and operational performance. We launched operations of a new retail concept, One Thousand Steps, in fiscal 2006, which could divert attention from existing operations. We face significant competition from both vertically-integrated and brand-based competitors that are growing rapidly, which could have a material adverse effect on our business. Our customers may not prefer our proprietary brand merchandise, which may negatively impact our profitability. Our current or prospective vendors may be unable or unwilling to supply us with adequate quantities of their merchandise in a timely manner or at acceptable prices, which could have a material adverse impact on our business. Our foreign sources of production may not always be reliable, which may result in a disruption in the flow of new merchandise to our stores. We are currently evaluating store design alternatives for all of our retail concepts, which may not result in improved operational performance. The loss of key personnel could have a material adverse effect on our business at any time. Our information systems may not be adequate to support future growth, which could disrupt business operations. Adverse outcomes of litigation matters could significantly affect our operational results. Our dependence on a single distribution facility exposes us to significant business disruption risks. Our stock price can fluctuate significantly due to a variety of factors, which can negatively impact our total market value.

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