912463--3/1/2007--GUESS

related topics

{customer, product, revenue}

{operation, international, foreign}

{acquisition, growth, future}

{cost, operation, labor}

{product, market, service}

{system, service, information}

{condition, economic, financial}

{personnel, key, retain}

{property, intellectual, protect}

{stock, price, operating}

{competitive, industry, competition}

{cost, regulation, environmental}

Demand for our merchandise may decrease and the appeal of our brand image may diminish if we fail to identify and rapidly respond to consumers fashion tastes. The apparel industry is highly competitive, and we may face difficulties competing successfully in the future. Changes in the economy and trends in consumer confidence may adversely affect the fashion industry as well as our operating results. We could find that we are carrying excess inventories if we fail to anticipate consumer demand, if our international vendors do not supply quality products on a timely basis, if our merchandising strategies fail or if we do not open new and remodel existing stores on schedule. Our success depends on maintaining good working relationships with our suppliers and manufacturers. Our wholesale business is highly concentrated. The decision by any of our large customers to decrease their purchases of our products or stop carrying our products could have a material adverse effect on our results of operations and financial condition. Since we do not control our licensees actions and we depend on our licensees for a substantial portion of our earnings from operations, their conduct could harm our business. We depend on our intellectual property, and our methods of protecting it may not be adequate. If we fail to successfully execute our growth initiatives, including through acquisitions, our business and results of operations could be harmed. We may be unsuccessful in implementing our planned North America retail expansion, which could harm our business and negatively affect our results of operations. Failure to successfully develop and manage our new store concepts could adversely affect our results of operations. Much of our business is international and can be disrupted by factors beyond our control. Domestic and foreign currency fluctuations could adversely impact our financial condition and results of operations. Our two most senior executive officers own a significant percentage of our common stock. Their interests may differ from the interests of our other stockholders. Our failure to attract and retain our existing senior management team and other key personnel could adversely affect our business. Fluctuations in our quarterly results of operations, comparable store sales, sales per square foot, wholesale operations or royalty net revenue or other factors could have a material adverse effect on our results of operations and financial condition. Violation of labor laws and practices by our licensees or suppliers could harm our business. We rely on third parties and our own personnel for upgrading and maintaining our management information and accounting systems. If these parties do not perform these functions appropriately, our business could be disrupted.

Full 10-K form ▸

912463--3/1/2007--GUESS_INC