The Gap 2011 Annual Report Download - page 17

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• 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 and our ability to service our debt while maintaining other
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, 2012, 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.
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