910521--3/2/2009--DECKERS_OUTDOOR

related topics

{customer, product, revenue}

{property, intellectual, protect}

{operation, international, foreign}

{condition, economic, financial}

{acquisition, growth, future}

{product, market, service}

{tax, income, asset}

{competitive, industry, competition}

{stock, price, operating}

{provision, law, control}

{product, candidate, development}

{cost, regulation, environmental}

{loan, real, estate}

Risks Relating To Our Business The recent financial crisis and general economic conditions that are largely out of our control may adversely affect our financial condition and results of operations. The costs of production and transportation of our products can increase as petroleum and other energy prices rise. Our success depends on our ability to anticipate fashion trends. Our UGG brand may not continue to grow at the same rate it has experienced in the recent past. We may be unable to successfully identify, develop, acquire or build new brands. Our brands may have further impairment losses. If raw materials do not meet our specifications, prices increase, or shortages occur, we could experience interruptions in manufacturing, increased costs, higher product return rates, a loss of sales, or a reduction in our gross margins. If we do not accurately forecast consumer demand, we may have excess inventory to liquidate or have difficulty filling our customers' orders. We may not succeed in implementing our growth strategies. The growth of our retail store locations may not result in returns on our investments. Our financial success is influenced by the success of our customers. Certain of our customers account for a significant portion of our sales, and the loss of one or more of these key customers would significantly reduce our sales. Failure to establish and protect our trademarks, patents and other intellectual property could diminish the value of our brands. We may lose pending litigation and the rights to certain of our intellectual property. Counterfeiting of our brands can divert sales and damage our brand image. As our patents expire, our competitors will be able to copy our technology or incorporate it in their products without paying royalties. Because we depend on independent manufacturers, we face challenges in maintaining a continuous supply of goods that meet our quality standards. Our independent manufacturers are located outside the U.S., where we are subject to the risks of international commerce. Our business could suffer if our independent manufacturers, designated suppliers or our licensees violate labor laws or fail to conform to our ethical standards. We conduct business outside the U.S., which exposes us to foreign currency and other risks. If our licensing partners are unable to meet our expectations regarding the quality of their products or the conduct of their business, the value of our brands could suffer. Key business processes could be interrupted and adversely affect our business. We could be adversely affected by the loss of one of our warehouses or one of our manufacturer's facilities. Many of our products are seasonal, and our sales are sensitive to weather conditions. Our sales in international markets are subject to a variety of laws and political and economic risks that may adversely impact our sales and results of operations in certain regions, such as the recent changes in labor laws in the People's Republic of China, which could increase our costs and adversely impact our operating results. International trade regulations may impose unexpected duty costs or other non-tariff barriers to markets while the increasing number of free trade agreements has the potential to stimulate increased competition; security procedures may cause significant delays. The investment of our substantial cash and cash equivalents and short-term investments are subject to risks which may cause losses and affect the liquidity of these investments. We could be subject to additional income tax liabilities. Risks Related to Our Industry Because the footwear market is sensitive to decreased consumer spending and economic cycles, if general economic conditions deteriorate, many of our customers may significantly reduce their purchases from us or may not be able to pay for our products in a timely manner. We face intense competition, including competition from companies with significantly greater resources than ours, and if we are unable to compete effectively with these companies, our market share may decline and our business could be harmed. Consolidations, restructurings and other ownership changes in the retail industry could affect the ability of our wholesale customers to purchase and market our products. Risks Relating to Our Common Stock Our common stock price has been volatile, which could result in substantial losses for stockholders. Anti-takeover provisions in our certificate of incorporation, bylaws, and Delaware law could prevent or delay a change in control of our company, even if such change of control would benefit our stockholders.

Full 10-K form ▸

910521--3/2/2009--DECKERS_OUTDOOR_CORP