912833--4/4/2008--WEST_MARINE

related topics

{control, financial, internal}

{stock, price, operating}

{acquisition, growth, future}

{cost, operation, labor}

{loss, insurance, financial}

{product, market, service}

{customer, product, revenue}

{personnel, key, retain}

{system, service, information}

{condition, economic, financial}

{financial, litigation, operation}

{property, intellectual, protect}

{cost, regulation, environmental}

{gas, price, oil}

{operation, natural, condition}

A decline in consumer discretionary spending or a decline in the boating industry generally could reduce our revenues. 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 long-term company 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, our call center or any one 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 the company to potential risks. Our founder and Chairman, Randolph K. Repass, beneficially owns a significant portion of our common stock. As a result, his interests may differ from that of our other stockholders. Our failure to comply with certain environmental regulations could adversely affect our business. Our failure to adequately estimate loss contingencies could adversely affect our profitability. 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. The SEC s current investigation arising from the prior restatement of our historical financial results may adversely affect our financial condition, results of operations and the price of our common stock. Material weaknesses 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 timely file our periodic reports with the SEC could result in the delisting of our common stock on the NASDAQ Global Market and additional risks. We experienced additional risks and costs as a result of the restatement of our financial statements and the delayed filing of this annual report on Form 10-K. 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 analysts 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.

Full 10-K form ▸

912833--4/4/2008--WEST_MARINE_INC