902270--3/13/2008--LENOX_GROUP_INC

related topics
{cost, operation, labor}
{condition, economic, financial}
{customer, product, revenue}
{product, market, service}
{operation, international, foreign}
{financial, litigation, operation}
Our sales could be negatively impacted by product trends, continued industry consolidation and contraction, as well as a decision by our major customers to substantially reduce orders for our products. Our reliance on foreign manufacturing is subject to inherent risk, which may affect our ability to procure goods and/or procure them in a timely fashion. Our reliance on manufacturing from sources within China, in particular, is subject to inherent risk, which may affect our ability to procure goods and/or procure them in a timely fashion. We are subject to risks associated with changes in foreign currency exchange rates. If interest rates on our variable rate debt were to increase, our financial results would be negatively affected. We may encounter litigation that has a material impact on our business. Our inability to adapt successfully to changing consumer preferences may damage our business. If we are unable to complete our operational improvements, including improving our inventory management and forecasting systems to make our supply chain more efficient, improving the effectiveness and efficiency of our US manufacturing operations, and integrating our legacy Department 56 and Lenox information, operating and distribution systems, our business results may be adversely impacted. If we are unable to manage employee turnover through our integration of Department 56 and Lenox and the completion of our operational improvement process, our business could be adversely impacted. The Company s performance is impacted, in part, on economic and other factors affecting consumer spending that are out of the Company s control. Our strategic alternative plan announced by the Company in January 2008 may lead to uncertainty or may not be successful.

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