916789--5/13/2010--HELEN_OF_TROY

related topics

{customer, product, revenue}

{tax, income, asset}

{acquisition, growth, future}

{condition, economic, financial}

{regulation, change, law}

{product, market, service}

{operation, international, foreign}

{system, service, information}

{cost, regulation, environmental}

{loss, insurance, financial}

{personnel, key, retain}

{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 product demand, sales and net income are highly subjective in nature and our future sales and net income could vary in a material amount from our projections. Our results of operations 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 goods sold and certain operating expenses and adversely affect 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 record other-than-temporary impairment charges. If our goodwill, indefinite-lived intangible assets or other long-term assets become impaired, we will be required to record additional impairment charges, which may be significant. We 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 and may be vulnerable in the event of a prolonged economic downturn. To compete successfully, we must develop and introduce a continuing stream of innovative new products to meet changing consumer preferences. Further disruptions in U.S. and international credit markets may adversely affect our business, financial condition and results of operations. Our operating results may be adversely affected by foreign currency fluctuations. 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 stock. We may incur 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. Obsolescence or interruptions in the operation of our computerized systems or other information technologies could have a material adverse effect on our operations and profitability. Audits and related disputes with taxing authorities could have an adverse impact on our business. Potential changes in laws, including tax laws, and the costs and complexities of compliance with such laws could have an adverse impact on our business. Under current tax law, favorable tax treatment of our non-U.S. net income is dependent on our ability to avoid classification as a Controlled Foreign Corporation. Changes in the composition of our stock ownership could have an impact on our classification. If our classification were to change, it could have a material adverse effect on the largest U.S. shareholders and, in turn, on the Company s business.

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916789--5/13/2010--HELEN_OF_TROY_LTD