892907--6/22/2006--SPORT_CHALET

related topics

{stock, price, operating}

{acquisition, growth, future}

{product, market, service}

{system, service, information}

{personnel, key, retain}

{provision, law, control}

{customer, product, revenue}

We rely on one distribution center and any disruption could reduce our sales. Our ability to expand our business will be dependent upon our ability to meet challenges in new markets. We may pursue strategic acquisitions, which could have an adverse impact on our business. Our future growth will be dependent on the availability of additional financing. If we are unable to successfully implement our controlled growth strategy or manage our growing business, our future operating results could suffer. If we lose key management or are unable to attract and retain talent, our operating results could suffer. Seasonal fluctuations in the sales of sporting goods could cause our annual operating results to suffer. Our quarterly operating results may fluctuate substantially, which may adversely affect our business. We are controlled by our Founder and management, whose interests may differ from other stockholders. Problems with our information systems could disrupt our operations and negatively impact our financial results. If we are unable to predict or react to changes in consumer demand, we may lose customers and our sales may decline. The price of our Class A Common Stock and Class B Common Stock may be volatile. Provisions in the Company s charter documents could discourage a takeover that stockholders may consider favorable.

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892907--6/22/2006--SPORT_CHALET_INC