1. The success of our business depends in large part on our ability to
identify fashion trends as well as to react to changing customer demand in a
timely manner. Consequently, we depend in
part upon the customer response to the creative efforts of our merchandising,
design and marketing teams and their ability to anticipate trends and fashions
that will appeal to our consumer base. If we miscalculate our customers
product preferences or the demand for our products, we may be faced with excess
inventory. Historically, this type of occurrence has resulted in excess fabric
for some products and markdowns and/or write-offs, which has impaired our...
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