96287--4/13/2006--BOMBAY_COMPANY

related topics

{operation, international, foreign}

{operation, natural, condition}

{acquisition, growth, future}

{stock, price, operating}

{customer, product, revenue}

{personnel, key, retain}

{loan, real, estate}

{property, intellectual, protect}

{competitive, industry, competition}

{cost, contract, operation}

{product, liability, claim}

{system, service, information}

Our turnaround strategy may disrupt our business. In addition, the strategy may not be successful. We may not have sufficient liquidity to execute our turnaround strategy. Our competition is both intense and varied, and our failure to effectively compete could adversely affect our prospects. We may continue to experience fluctuations in our comparable store sales. We may not be able to find appropriate locations as we migrate our stores from mall to off-mall, expand our store base in major markets, and rationalize the real estate portfolio. We may not be able to effectively manage our inventory levels, particularly excess or inadequate amounts of inventory, which could adversely affect our financial results. Any potential tariffs imposed on products that we import from China, as well as the potential sudden strengthening of China s currency against the U.S. dollar, could reduce our gross margins and our overall profitability. Our business is subject to risks generally associated with U.S. and foreign government regulations related to product sourcing. Our business is subject to risks generally associated with U.S. and foreign government regulations related to product sourcing. We may not be able to attract, retain and grow an effective management team or changes in the cost or availability of a suitable workforce to manage and support our operating strategies could cause our operating results to suffer. The occurrence of severe weather events or natural disasters could significantly damage or destroy outlets or prohibit consumers from traveling to our retail locations, especially during the peak winter holiday shopping season. Changes to estimates related to our property and equipment, or results that are lower than our current estimates at certain store locations, may cause us to incur non-cash impairment charges. We may be vulnerable to disruptions in our business due to reliance on technology. Any additional terrorist activities in the U.S., as well as the international war on terror, may adversely affect our sales and our stock price. We may not be able to obtain commercial insurance at acceptable prices which might have a negative impact on our business. We may not be able or may fail to protect our intellectual property which would adversely impact on our business. Our quarterly results of operations fluctuate due to a variety of factors, including seasonality.

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96287--4/13/2006--BOMBAY_COMPANY_INC