EXHIBIT 99-C
CAUTIONARY STATEMENTS RELATING TO FORWARD-LOOKING INFORMATION.
The Company and its representatives may, from time to time, make written
or verbal forward-looking statements. Those statements relate to
developments, results, conditions or other events the Company expects or
anticipates will occur in the future. Without limiting the foregoing, those
statements may relate to future revenues, earnings, store openings, market
conditions and the competitive environment. Forward-looking statements are
based on management's then current views and assumptions and, as a result,
are subject to certain risks and uncertainties that could cause actual
results to differ materially from those projected.
Any such forward-looking statements are qualified by the following which
contain certain of the important factors that could cause actual results to
differ materially from those predicted by the forward-looking statements:
COMPETITIVE PRESSURES
The retail business is highly competitive. Each of our operations
competes for customers, employees, locations, products, services and other
important aspects of their businesses with many other local, regional and
national retailers. Those competitors, some of which have a greater market
presence than the Company, include traditional and off-price store-based
retailers, direct mail businesses, entertainment and travel providers and
other forms of retail commerce. Unanticipated changes in the pricing and
other practices of those competitors may impact our expected results.
CONSUMER TRENDS
It is difficult to predict what merchandise consumers will demand,
particularly merchandise that is trend driven. A substantial part of our
business is dependent on our ability to make trend right decisions for a wide
variety of goods and services. Failure to accurately predict constantly
changing consumer tastes, preferences, spending patterns and other lifestyle
decisions could adversely affect short term results and long term
relationships with our guests.
CREDIT OPERATIONS
The Company's credit operations facilitate sales in our stores and
generate additional revenue from fees related to extending credit. Our
ability to extend credit to our guests depends on many factors including
compliance with federal and state banking and consumer protection laws, any
of which may change from time to time. In addition, changes in credit card
use, payment patterns and default rates may result from a variety of
economic, legal, social and other factors that we cannot control or predict
with certainty. Changes that adversely impact our ability to extend credit
and collect payments could negatively affect our results.
GENERAL ECONOMIC CONDITIONS
General economic factors that are beyond our control impact the
Company's forecasts and actual performance. These factors include interest
rates, recession, inflation, deflation, consumer credit availability,
consumer debt levels, tax rates and policy, unemployment trends and other
matters that influence consumer confidence and spending. Increasing
volatility in financial markets may cause these factors to change with a
greater degree of frequency and magnitude.
LABOR CONDITIONS
The Company's performance is dependent on attracting and retaining a
large and growing number of quality team members. Many of those team members
are in entry level or part time positions with historically high rates of
turnover. Our ability to meet our labor needs while controlling our costs is
subject to external factors such as unemployment levels, minimum wage
legislation and changing demographics.
PRODUCT SOURCING
The products we sell are sourced from a wide variety of domestic and
international vendors. All of our vendors must comply with applicable laws
and our required standards of conduct. Our ability to find qualified vendors
and access products in a timely and efficient manner is a significant
challenge which is typically even more difficult with respect to goods
sourced outside the United States. Trade restrictions, tariffs, currency
exchange rates, transport capacity and costs and other factors significant to
this trade are beyond our control and could impact our business.
YEAR 2000 DATE CONVERSION
Our business may be adversely affected by the inability of
information systems and other technology to function properly using dates after
December 31, 1999. The scope of this issue is difficult to predict with
certainty and there can be no assurance that we, our business partners,
banks, public utilities and others whose goods or services support the retail
environment, will successfully complete every phase of the year 2000
conversion on a timely basis. Our current estimates of the cost and impact
of the year 2000 issue are based upon certain assumptions including the
continued availability of necessary resources, timely modifications to our
plans that may be necessary, the preparedness of parties on whom our business
depends and other factors. Failure of any of those assumptions could
result in higher costs, system failures or business interruptions and could
have a material, adverse impact on our future operations, earnings and
financial position.
OTHER FACTORS
Other factors that could cause actual results to differ materially from
those predicted include: weather, changes in the availability or cost of
capital, the availability of suitable new store locations on acceptable
terms, shifts in the seasonality of shopping patterns, labor strikes or other
work interruptions, the impact of excess retail capacity in our markets,
material acquisitions or dispositions, the success or failure of significant
new business ventures, adverse results in material litigation, natural
disasters, the outbreak of war or other significant national or international
events.
The foregoing list of important factors is not exclusive and the Company
does not undertake to revise any forward-looking statement to reflect events
or circumstances that occur after the date the statement is made.