Banana Republic 2012 Annual Report Download - page 21

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• the risk that the adoption of new accounting pronouncements will impact future results;
• the risk that changes in general economic conditions or consumer spending patterns could adversely impact our results
of operations;
• the highly competitive nature of our business in the United States and internationally;
• the risk that we or our franchisees will be unsuccessful in gauging apparel trends and changing consumer preferences;
• the risk to our business associated with global sourcing and manufacturing, including sourcing costs, events causing
disruptions in product shipment, or an inability to secure sufficient manufacturing capacity;
• the risk that our efforts to expand internationally may not be successful;
• the risk that our franchisees will be unable to successfully open, operate, and grow the Company’s franchised stores or
operate their stores in a manner consistent with our requirements regarding our brand identities and customer
experience standards;
• the risk that we or our franchisees will be unsuccessful in identifying, negotiating, and securing new store locations and
renewing, modifying, or terminating leases for existing store locations effectively;
• the risk that comparable sales and margins will experience fluctuations;
• the risk that changes in our credit profile or deterioration in market conditions may limit our access to the capital markets
and adversely impact our financial results or our business initiatives;
• the risk that trade matters could increase the cost or reduce the supply of apparel available to us and adversely affect
our business, financial condition, and results of operations;
• the risk that updates or changes to our information technology (“IT”) systems may disrupt our operations;
• the risk that our IT services agreement with IBM could cause disruptions in our operations and have an adverse effect
on our financial results;
• the risk that actual or anticipated cyber-attacks, and other cybersecurity risks, may cause us to incur increasing costs;
• the risk that natural disasters, public health crises, political crises, or other catastrophic events could adversely affect
our operations and financial results;
• the risk that acts or omissions by our third-party vendors, including a failure to comply with our code of vendor conduct,
could have a negative impact on our reputation or operations;
• the risk that we do not repurchase some or all of the shares we anticipate purchasing pursuant to our repurchase
program;
• the risk that we will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits; and
• the risk that changes in the regulatory or administrative landscape could adversely affect our financial condition,
strategies, and results of operations.
Additional information regarding factors that could cause results to differ can be found in this Annual Report on Form 10-K
and our other filings with the U.S. Securities and Exchange Commission (“SEC”).
Future economic and industry trends that could potentially impact net sales and profitability are difficult to predict. These
forward-looking statements are based on information as of March 26, 2013, and we assume no obligation to publicly
update or revise our forward-looking statements even if experience or future changes make it clear that any projected
results expressed or implied therein will not be realized.