Tuesday Morning (TUEM)

Risks

• Increases in fuel prices and changes in transportation industry regulations or conditions may increase our freight costs and thus our cost of sales, which could have a material adverse effect on our business and operations.
• An increase in the cost or a disruption in the flow of our imported products may significantly decrease our sales and profits.
• Our results of operations will be negatively affected if we are unsuccessful in effectively managing our supply chain operations.
• The loss of, disruption in operations of, or increased costs in the operation of our distribution center facilities would have a material adverse effect on our business and operations.
• Failure to identify and respond to changes in consumer trends and preferences could significantly harm our business.
• Our sales depend on a volume of traffic to our stores, and a reduction in traffic to, or the closing of, anchor tenants and other destination retailers in the shopping centers in which our stores are located could significantly reduce our sales and leave us with excess inventory.
• We must continuously attract buying opportunities for off‑price merchandise and anticipate consumer demand as off‑price merchandise becomes available, and our failure to do so could adversely affect our performance.
• Our results of operations will be negatively affected if we are not successful in managing our inventory profitably.
• The unplanned loss or departure of one or more members of our senior management or other key management could have a material adverse effect on our business.
• Our business is intensely competitive, and a number of different competitive factors could have a material adverse effect on our business, results of operations, cash flows and financial condition.
• Changes to federal tax policy may adversely impact our operations and financial performance.
• If we do not attract, train and retain quality employees in appropriate numbers, including key employees and management, our performance could be adversely affected.
• Our results of operations are subject to seasonal and quarterly fluctuations, which could have a material adverse effect on our operating results or the market price of our common stock.
• If we fail to protect the security of information about our business and our customers, suppliers, business partners and employees, we could damage our reputation and our business, incur substantial additional costs and become subject to litigation and government investigations and enforcement actions.
• We are subject to various government regulations, changes in the existing laws and regulations and new laws and regulations which may adversely affect our operations and financial performance.
• We face litigation risks from customers, employees, and other third parties in the ordinary course of business.
• We face risks with respect to product liability claims and product recalls, which could adversely affect our reputation, our business, and our consolidated results of operations.
• Our stores may be adversely affected by local conditions, natural disasters, and other events.
• Our results of operations may be negatively affected by inventory shrinkage.
• Our results of operations may be negatively impacted by exposure to unexpected costs related to our insurance programs.
• We are subject to customer payment-related risks that could increase operating costs or exposure to fraud or theft, subject us to potential liability and potentially disrupt our business.
• Our common stock is subject to ownership and transfer restrictions intended to preserve our ability to use our net operating loss carryforwards and other tax attributes.