912463--3/31/2010--GUESS

related topics

{customer, product, revenue}

{operation, international, foreign}

{acquisition, growth, future}

{condition, economic, financial}

{stock, price, operating}

{cost, operation, labor}

{financial, litigation, operation}

{product, market, service}

{system, service, information}

{personnel, key, retain}

{property, intellectual, protect}

{tax, income, asset}

{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. Negative changes in the economy, such as the severe deterioration in the global economic environment that began in 2008, and resulting declines in consumer confidence and spending, have had and could continue to have an adverse effect on the apparel industry and on our operating results. The continuing difficulties in the credit markets could have a negative impact on our customers, suppliers and business partners, which, in turn could materially and adversely affect our results of operations and liquidity. Domestic and foreign currency fluctuations could adversely impact our financial condition and results of operations. 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 the quality of our relationships with our suppliers and manufacturers. Our North American wholesale business is highly concentrated. If any of our large customers decrease their purchases of our products or experience financial difficulties, our results of operations and financial condition could be adversely affected. 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. We are subject to periodic litigation and other regulatory proceedings, which could result in unexpected expense of time and resources. 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 U.S. and international 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. Our business is global in scope and can be impacted by factors beyond our control. Changes in tax laws and unanticipated tax liabilities could adversely affect our effective income tax rate and profitability. A significant disruption at our Louisville, Kentucky distribution center or our other international distribution facilities could have a material adverse impact on our sales and operating results. Our reliance on third parties to deliver merchandise to our stores and wholesale customers could lead to disruptions to our business. 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 retain our existing senior management team or to retain or attract other key personnel could adversely affect our business. Fluctuations in our quarterly results of operations, comparable store sales, sales per square foot, wholesale operations, royalty net revenue or other factors could have a material adverse effect on our results of operations and our stock price. Violation of labor and other 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 systems. If these parties do not perform these functions appropriately, our business could be disrupted and adversely impacted.

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912463--3/31/2010--GUESS_INC