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Neiman Marcus 2008 Annual Report Download - page 47

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Table of Contents

Customer Considerations

• changes in consumer confidence resulting in a reduction of discretionary spending on goods;

• changes in the demographic or retail environment;

• changes in consumer preferences or fashion trends;

• changes in our relationships with customers due to, among other things, 1) our failure to provide quality service and

competitive loyalty programs, 2) our inability to provide credit pursuant to our proprietary credit card arrangement or 3)

our failure to protect customer data or comply with regulations surrounding information security and privacy;

Merchandise Procurement and Supply Chain Considerations

• changes in our relationships with designers, vendors and other sources of merchandise, including adverse changes in

their financial viability, cash flows or available sources of funds;

• delays in receipt of merchandise ordered due to work stoppages or other causes of delay in connection with either the

manufacture or shipment of such merchandise;

• changes in foreign currency exchange or inflation rates;

• significant increases in paper, printing and postage costs;

Industry and Competitive Factors

• competitive responses to our loyalty programs, marketing, merchandising and promotional efforts or inventory

liquidations by vendors or other retailers;

• adverse changes in the financial viability of our competitors;

• seasonality of the retail business;

• adverse weather conditions or natural disasters, particularly during peak selling seasons;

• delays in anticipated store openings and renovations;

• our success in enforcing our intellectual property rights;

Employee Considerations

• changes in key management personnel and our ability to retain key management personnel;

• changes in our relationships with certain of our key sales associates and our ability to retain our key sales associates;

Legal and Regulatory Issues

• changes in government or regulatory requirements increasing our costs of operations;

• litigation that may have an adverse effect on our financial results or reputation;

Leverage Considerations

• the effects of incurring a substantial amount of indebtedness under our senior secured credit facilities and our senior

notes and senior subordinated notes;

• the ability and the effects of refinancing our indebtedness under our senior secured credit facilities;