916789--5/13/2008--HELEN_OF_TROY

related topics

{customer, product, revenue}

{tax, income, asset}

{regulation, change, law}

{acquisition, growth, future}

{system, service, information}

{product, market, service}

{financial, litigation, operation}

{personnel, key, retain}

{loss, insurance, financial}

{cost, regulation, environmental}

{condition, economic, financial}

{cost, operation, labor}

our chief executive officer and a small number of other key senior managers to operate our business. The loss of any of these individuals could have a material adverse effect on our business. Our ability to deliver products to our customers in a timely manner and to satisfy our customers fulfillment standards are subject to several factors, some of which are beyond our control. Our projections of sales and earnings are highly subjective and our future sales and earnings could vary in a material amount from our projections. Our sales are dependent on sales to several large customers and the loss of, or substantial decline in sales to a top customer could have a material adverse effect on our revenues and profitability. Large sophisticated customers may take actions that adversely affect our gross profit and results of operations. We are dependent on third party manufacturers, most of which are located in the Far East, and any inability to obtain products from such manufacturers could have a material adverse effect on our business, financial condition and results of operations. High costs of raw materials and energy may result in increased cost of sales and certain operating expenses and adversely effect our results of operations and cash flow. We hold certain auction rate securities that we may be unable to liquidate at their recorded values or at all due to credit concerns in the U.S. capital markets. Protracted illiquidity and any deterioration in the credit ratings of the issuers, dealers or credit insurers may require us to reclassify these holdings at some point to long-term assets and record impairment charges. If our goodwill or indefinite-lived intangible assets become impaired, we may be required to record significant impairment charges. We materially rely on licensed trademarks, the loss of which could have a material adverse effect on our revenues and profitability. We are subject to risks related to our dependence on the strength of retail economies. To compete successfully, we must continually develop and introduce innovative new products to meet changing consumer preferences. Acquisitions may be more costly or less profitable than anticipated or we may not be able to identify suitable new acquisition opportunities, which may constrain our prospects for future growth and profitability and adversely affect the price of our common shares. We have incurred debt to fund acquisitions and capital expenditures, which could have an adverse impact on our business and profitability. We rely on our central Global Enterprise Resource Planning Systems and other peripheral information systems. Interruptions in the operation of our computerized systems or other information technologies could have a material adverse effect on our operations and profitability. A breach of our computer security systems, and unauthorized intrusion could subject us to fraudulent use of sensitive information and/or damage to critical data and systems. Such activity could subject us to litigation and various other claims and have a material adverse effect on our financial condition, results of operations and the reputation of our business. Audits and related disputes with taxing authorities, tax compliance and the impact of changes in tax law could have an adverse impact on our business. Favorable tax treatment of our non earnings is dependent on our ability to avoid classification as a Controlled Foreign Corporation. Changes in the composition of our shareholdings could have an impact on our classification. If our classification were to change, it could have a material adverse effect on the largest shareholders and, in turn on the Company s business. We are involved in securities class action litigation which could have a material adverse effect on our business, consolidated financial position, results of operations and cash flows.

Full 10-K form ▸

916789--5/13/2008--HELEN_OF_TROY_LTD