892907--6/24/2008--SPORT_CHALET

related topics

{stock, price, operating}

{product, market, service}

{acquisition, growth, future}

{operation, natural, condition}

{system, service, information}

{regulation, change, law}

{financial, litigation, operation}

{condition, economic, financial}

{personnel, key, retain}

{competitive, industry, competition}

{provision, law, control}

{loan, real, estate}

A downturn in the economy has affected consumer purchases of discretionary items, reducing our net sales. Intense competition in the sporting goods industry could limit our growth and reduce our profitability. Our future growth will be dependent on the availability of additional financing. Because our stores are concentrated in the western portion of the United States, we are subject to regional risks. If we are unable to predict or react to changes in consumer demand, we may lose customers and our sales may decline. Implementing Section 404 of the Sarbanes-Oxley Act of 2002 will be expensive, time-consuming and require significant management attention, and may not be successful. Failure to protect the integrity and security of our customers information could expose us to litigation and materially damage our standing with our customers. If we are unable to successfully implement our controlled growth strategy or manage our growing business, our future operating results could suffer. Our ability to expand our business will be dependent upon our ability to meet challenges in new and existing markets. Failure to maintain an online presence that mirrors our customers in-store experience could adversely impact net sales. 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. Declines in the effectiveness of marketing could cause our operating results to suffer. Problems with our information systems could disrupt our operations and negatively impact our financial results. We are controlled by our Founder and management, whose interests may differ from other stockholders. 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. We may be subject to periodic litigation that may adversely affect our business and financial performance. Changes in accounting standards and subjective assumptions, estimates and judgments related to complex accounting matters could significantly affect our financial results. Terrorist attacks or acts of war may harm our business. We rely on one distribution center and any disruption could reduce our sales. We may pursue strategic acquisitions, which could have an adverse impact on our business. Our comparable store sales will fluctuate and may not be a meaningful indicator of future performance. Global warming could cause erosion of both our winter and summer seasonal businesses over a long-term basis.

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892907--6/24/2008--SPORT_CHALET_INC