912833--3/17/2010--WEST_MARINE

related topics

{condition, economic, financial}

{stock, price, operating}

{acquisition, growth, future}

{cost, operation, labor}

{system, service, information}

{cost, regulation, environmental}

{product, market, service}

{regulation, change, law}

{financial, litigation, operation}

{customer, product, revenue}

{operation, international, foreign}

{personnel, key, retain}

{product, liability, claim}

{loss, insurance, financial}

{property, intellectual, protect}

{control, financial, internal}

{operation, natural, condition}

{gas, price, oil}

{regulation, government, change}

Our ability to generate revenue could be significantly affected by prolonged economic uncertainty. An inability to find suitable new and expanded store sites or delays in new store openings could materially affect our financial performance. If we cannot successfully implement our expansion strategy, our growth and profitability could be adversely impacted. Our expansion into new, unfamiliar markets presents increased risks that may prevent us from being profitable in these new markets. We experience fluctuations in our comparable store sales. We have undertaken a number of initiatives designed to build our long-term strength. If one or more of these initiatives is unsuccessful, our profitability could be adversely affected. Our results of operations could be adversely affected if unseasonably cold weather, prolonged winter conditions, natural disasters such as hurricanes or extraordinary amounts of rainfall occur, especially during the peak boating season in the second and third fiscal quarters. Intense competition in the boating supply and outdoor recreation markets could reduce our revenue and profitability. If any of our key vendors or manufacturers fail to supply us with merchandise, we may not be able to meet the demands of our customers and our sales could decline. If we lose key management or are unable to attract and retain the talent required for our business, our operating results and financial condition could suffer. Our business depends on our ability to meet our labor needs. We must successfully order and manage our inventory to reflect customer demand in a volatile market and anticipate changing consumer preferences and buying trends or our revenues and profitability will be adversely affected. A natural disaster or other disruption at our support center or either of our distribution centers could cause us to lose merchandise or inhibit our ability to process orders and, therefore, make us unable to effectively deliver to our direct customers and retail stores. Reliance on our information technology systems exposes us to potential risks. Our founder and Chairman, Randolph K. Repass, beneficially owns approximately 33% of our common stock. As a result, his interests may differ from that of our other stockholders. We face periodic reviews, audits and investigations by government agencies, and these audits could have adverse findings, which may negatively impact our business. Our business and financial results may be adversely affected by global climate change or by legal, regulatory or market responses to such change. Our failure to comply with certain environmental regulations could adversely affect our business. Because we self-insure against certain risks and maintain high deductibles on certain of our insurance policies, our operating results may be adversely affected if we suffer a substantial casualty. A material weakness in our internal control over financial reporting could lead to errors in our financial statements and a lack of investor confidence in us and a resulting decline in our stock price. Failure to comply with the SEC s permanent injunction entered on consent against us could subject us to further SEC enforcement actions, which could adversely affect our business. The price of our common stock may be subject to volatile fluctuations based on fluctuations in our quarterly results, general economic and market conditions and by our ability to meet market expectations. Our efforts to expand internationally, whether through acquisitions, franchising, licensing or similar arrangements, may not be successful and could impair the value of our brands. General economic and business conditions as well as those specific to the retail industry may adversely affect our business and results of operations. Our profitability may be adversely affected if we do not continue to improve our business processes in response to worsening economic conditions. Fluctuations in currency exchange rates may adversely impact our cash flows and earnings. Economic and other factors affecting financial institutions and the value of our collateral could affect our access to capital. Our reputation and business could be materially harmed as a result of data breaches, data theft, unauthorized access or hacking. We face the risk of exposure to product liability claims, product recalls and adverse publicity. Changes in laws and regulations could increase our cost of doing business. Changes in accounting standards, interpretations or applications of accounting principles, and subjective assumptions, estimates and judgments by management related to complex accounting matters, could significantly affect our financial results.

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912833--3/17/2010--WEST_MARINE_INC