878726--3/1/2006--TUESDAY_MORNING_CORP/DE

related topics
{stock, price, operating}
{customer, product, revenue}
{stock, price, share}
{cost, operation, labor}
{provision, law, control}
{operation, natural, condition}
{operation, international, foreign}
{condition, economic, financial}
{cost, regulation, environmental}
{competitive, industry, competition}
{personnel, key, retain}
{capital, credit, financial}
Risks Related to Our Business We face a number of risks in opening new stores. Poor economic conditions affect consumer spending and may significantly harm our business. Our business and results of operations are subject to a broad range of uncertainties arising out of world events. Our business is intensely competitive and increased or new competition could have a material adverse effect on us. We must continuously attract buying opportunities for closeout merchandise and anticipate consumer demand as closeout merchandise becomes available. The loss of, or disruption in, our centralized distribution center would have a material adverse effect on our business and operations. The loss or departure of one or more members of our senior management could have a material adverse effect on our business. We are dependent on external funding sources, which may not make available to us sufficient funds when we need them. An increase in the cost or a disruption in the flow of our imported products may significantly decrease our sales and profits. We are subject to environmental regulations. Risks Related to Our Common Stock Our results of operations are subject to seasonal and quarterly fluctuations, which could have a material adverse effect on the market price of our common stock. A failure to grow or maintain our comparable store sales may adversely affect our stock price and impact our results of operations. Our largest shareholder has significant influence over us, which may affect the rights of other shareholders. Future sales of our common stock on the public market could depress our stock price. Provisions of our certificate of incorporation could discourage potential acquisition proposals and could deter or prevent a change in control.

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