914478--5/1/2007--SAMSONITE

related topics

{cost, operation, labor}

{customer, product, revenue}

{condition, economic, financial}

{debt, indebtedness, cash}

{personnel, key, retain}

{property, intellectual, protect}

{product, market, service}

{competitive, industry, competition}

{operation, international, foreign}

{system, service, information}

{cost, contract, operation}

{control, financial, internal}

{stock, price, share}

{acquisition, growth, future}

{stock, price, operating}

Events which negatively affect travel levels adversely affect our business. A downturn in the economy may affect consumer purchases of our products, which could adversely affect our sales. Our inability to respond to changes in consumer demands and market trends could adversely affect our sales. Our ability to continue our sales growth is dependent upon the further implementation of our growth strategies, which we may not be able to sustain. Part of our retail strategy relies upon our ability to lease quality locations at competitive prices. We may incur significant costs if our retail strategy fails and we are forced to close retail locations. We must be able to maintain effective distribution channels that serve our customers purchasing patterns, and satisfactory control of our wholesale and license distribution channels is critical. Some of our product lines are manufactured under licensed trademarks and any failure to retain or renew such licenses on acceptable terms may have an adverse effect on our business. Failure to maintain the stature of our brands or a positive image of our company could have an adverse effect on our operating results and financial condition. We may not be able to realize the cost-saving benefits associated with the use of overseas third party vendors, and our vendors may be unable to deliver products in a timely cost-effective manner or to meet our quality standards. We are dependent on our trademarks and patents, and our products may be the subject of counterfeit reproduction. The luggage market is highly fragmented; we face competition from many smaller competitors. Failure to attract and retain key and qualified personnel may adversely affect our ability to conduct our business. Certain corporate transactions require the approval of our major stockholders. The business of our subsidiaries with international operations may be adversely affected by international business risks and fluctuations in currency exchange and translation rates. Any material weaknesses in our internal control over financial reporting could result in a misstatement in our financial statements. Our business may be adversely affected if we continue to encounter complications in connection with the implementation of our SAP information management software. We have relocated certain of our management functions to the United Kingdom ( U.K. ). Such relocation, if not structured in an appropriate manner on an ongoing basis, could lead to material adverse tax consequences for the group. We have a leveraged capital structure which could adversely affect our financial health, and our ability to service our indebtedness and to grow our business. If interest rates rise, our operating results may decline due to higher borrowing costs. We are subject to restrictive covenants imposed by our senior credit facility and by an agreement we are party to with the Pension Benefit Guaranty Corporation. We have significant underfunded and unfunded U.S. pension and post-retirement obligations, which could adversely affect our liquidity. We cannot assure investors that we will make dividend payments in the future.

Full 10-K form ▸

914478--5/1/2007--SAMSONITE_CORP/FL