Office Depot 2002 Annual Report Download - page 30

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specialty retailers, both in and outside our industry segment, reporting
earnings warnings throughout 2002. One major discount retailer in the
Fortune 50 filed for bankruptcy protection early in 2002, further indicat-
ing that the slow economy is having an impact on the retail industry. The
depth and duration of this general economic slowdown may adversely
impact our business and the results of our operations in the future.
Effect of Possible War: Among the chief uncertainties facing our
nation and world, and as a result our business, is the possibility of a war
in the Middle East. Obviously no one can predict with certainty whether
such an eventuality will occur, or if it does, what the overall economic
impact will be. Clearly, such an event or series of events could have a
very serious adverse impact on our business in 2003 and beyond.
Executive Management: Since the appointment of our new Chief
Executive Officer in July 2000, we have continued to evolve our man-
agement organization to better address the future goals of our
Company. In 2002, we filled key positions by adding Executive Vice
Presidents in the areas of Information Technology, Merchandising and
Marketing. These new senior executives, in turn, have made significant
changes in their respective business organizations. In many cases, new
executives have joined our Company midway through 2002 or even
later. While most key positions have been filled, not all such critical
positions are filled at this time. Various searches are underway to iden-
tify the best individuals to fill these positions. Furthermore, our new
leadership team, and the new management structure we have adopted,
may prove not to be ideal for our Company and may not result in the
benefits expected; and, as a result, may materially and adversely affect
our future operating results.
Disclaimer of Obligation to Update
We assume no obligation (and specifically disclaim any such obligation)
to update these Cautionary Statements or any other forward-looking
statements contained in this Annual Report to reflect actual results,
changes in assumptions or other factors affecting such forward-looking
statements.