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HAS » Topics » Economic downturns which negatively impact the retail and credit markets, or which otherwise damage the financial health of our retail customers and consumers, can harm our business and financial performance.This excerpt taken from the HAS 10-K filed Feb 24, 2010. Economic
downturns which negatively impact the retail and credit markets,
or which otherwise damage the financial health of our retail
customers and consumers, can harm our business and financial
performance.
The success of our family entertainment products and our
financial performance is dependent on consumer purchases of our
products. Consumers may not purchase our products because the
products do not capture consumer interest and imagination, or
because competitor family entertainment offerings are deemed
more attractive. But consumer spending on our products can also
be harmed by factors that negatively impact consumers’
budgets generally, and which are not due to our product
offerings.
Recessions and other economic downturns, or disruptions in
credit markets, in the markets in which we operate can result in
lower levels of economic activity, lower employment levels, less
consumer disposable income, and lower consumer confidence. Any
of these factors can reduce the amount which consumers spend on
the purchase of our products. This in turn can reduce our
revenues and harm our financial performance.
In addition to experiencing potentially lower revenues from our
products during times of economic difficulty, in an effort to
maintain sales during such times we may need to reduce the price
of our products, increase our promotional spending, or take
other steps to encourage retailer and consumer purchase of our
products. Those steps may lower our net revenues, decrease our
operating margins, increase our costs
and/or lower
our profitability.
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Other
economic and public health conditions in the markets in which we
operate, including rising commodity and fuel prices, higher
labor costs, increased transportation costs, outbreaks of public
health pandemics or other diseases, or third party conduct could
negatively impact our ability to produce and ship our products,
and lower our revenues, margins and profitability.
Various economic and public health conditions can impact our
ability to manufacture and deliver products in a timely and
cost-effective manner, or can otherwise have a significant
negative impact on our business.
Significant increases in the costs of other products which are
required by consumers, such as gasoline, home heating fuels, or
groceries, may reduce household spending on the discretionary
entertainment products we offer. As we discussed above, weakened
economic conditions, lowered employment levels or recessions in
any of our major markets may significantly reduce consumer
purchases of our products. Economic conditions may also be
negatively impacted by terrorist attacks, wars and other
conflicts, increases in critical commodity prices, or the
prospect of such events. Such a weakened economic and business
climate, as well as consumer uncertainty created by such a
climate, could harm our revenues and profitability.
Our success and profitability not only depend on consumer demand
for our products, but also on our ability to produce and sell
those products at costs which allow for us to make a profit.
Rising fuel and raw material prices, for paperboard and other
components such as resin used in plastics, increased
transportation costs, and increased labor costs in the markets
in which our products are manufactured all may increase the
costs we incur to produce and transport our products, which in
turn may reduce our margins, reduce our profitability and harm
our business.
Other conditions, such as the unavailability of electrical
components, may impede our ability to manufacture, source and
ship new and continuing products on a timely basis. Additional
factors outside of our control could further delay our products
or increase the cost we pay to produce such products. For
example, work stoppages, slowdowns or strikes, an outbreak of a
severe public health pandemic, or the occurrence or threat of
wars or other conflicts, all could impact our ability to
manufacture or deliver product. Any of these factors could
result in product delays, increased costs
and/or lost
sales for our products.
These excerpts taken from the HAS 10-K filed Feb 25, 2009. Economic
downturns which negatively impact the retail and credit markets,
or which otherwise damage the financial health of our retail
customers and consumers, can harm our business and financial
performance.
The success of our family entertainment products and our
financial performance is dependent on consumer purchases of our
products. Consumers may not purchase our products because the
products do not capture consumer interest and imagination, or
because competitor family entertainment offerings are deemed
more attractive. But consumer spending on our products can also
be harmed by factors that negatively impact consumers’
budgets generally, and which are not due to our product
offerings.
Recessions and other economic downturns, or disruptions in
credit markets, in the markets in which we operate can result in
lower levels of economic activity, lower employment levels, less
consumer disposable
Table of Contents
income, and lower consumer confidence. Any of these factors can
reduce the amount which consumers spend on the purchase of our
products. This in turn can reduce our revenues and harm our
financial performance.
In addition to experiencing potentially lower revenues from our
products during times of economic difficulty, in an effort to
maintain sales during such times we may need to reduce the price
of our products, increase our promotional spending, or take
other steps to encourage retailer and consumer purchase of our
products. Those steps may lower our net revenues, decrease our
operating margins, increase our costs
and/or lower
our profitability.
Other
economic and public health conditions in the markets in which we
operate, including rising commodity and fuel prices, higher
labor costs, increased transportation costs, outbreaks of SARs
or other diseases, or third party conduct could negatively
impact our ability to produce and ship our products, and lower
our revenues, margins and profitability.
Various economic and public health conditions can impact our
ability to manufacture and deliver products in a timely and
cost-effective manner, or can otherwise have a significant
negative impact on our business.
Significant increases in the costs of other products which are
required by consumers, such as gasoline, home heating fuels, or
groceries, may reduce household spending on the discretionary
entertainment products we offer. As we discussed above, weakened
economic conditions, lowered employment levels or recessions in
any of our major markets may significantly reduce consumer
purchases of our products. Economic conditions may also be
negatively impacted by terrorist attacks, wars and other
conflicts, increases in critical commodity prices, or the
prospect of such events. Such a weakened economic and business
climate, as well as consumer uncertainty created by such a
climate, could harm our revenues and profitability.
Our success and profitability not only depend on consumer demand
for our products, but also on our ability to produce and sell
those products at costs which allow for profitable revenues.
Rising fuel and raw material prices, for components such as
resin used in plastics, increased transportation costs, and
increased labor costs in the markets in which our products are
manufactured all may increase the costs we incur to produce and
transport our products, which in turn may reduce our margins,
reduce our profitability and harm our business.
Other conditions, such as the unavailability of electrical
components, may impede our ability to manufacture, source and
ship new and continuing products on a timely basis. Additional
factors outside of our control could further delay our products
or increase the cost we pay to produce such products. For
example, work stoppages, slowdowns or strikes, an outbreak of
SARs or another severe public health pandemic, or the occurrence
or threat of wars or other conflicts, all could impact our
ability to manufacture or deliver product. Any of these factors
could result in product delays, increased costs
and/or lost
sales for our products.
Economic downturns which negatively impact the retail and credit markets, or which otherwise damage the financial health of our retail customers and consumers, can harm our business and financial performance. The success of our family entertainment products and our financial performance is dependent on consumer purchases of our products. Consumers may not purchase our products because the products do not capture consumer interest and imagination, or because competitor family entertainment offerings are deemed more attractive. But consumer spending on our products can also be harmed by factors that negatively impact consumers’ budgets generally, and which are not due to our product offerings. Recessions and other economic downturns, or disruptions in credit markets, in the markets in which we operate can result in lower levels of economic activity, lower employment levels, less consumer disposable
Table of Contentsincome, and lower consumer confidence. Any of these factors can reduce the amount which consumers spend on the purchase of our products. This in turn can reduce our revenues and harm our financial performance. In addition to experiencing potentially lower revenues from our products during times of economic difficulty, in an effort to maintain sales during such times we may need to reduce the price of our products, increase our promotional spending, or take other steps to encourage retailer and consumer purchase of our products. Those steps may lower our net revenues, decrease our operating margins, increase our costs and/or lower our profitability. Other economic and public health conditions in the markets in which we operate, including rising commodity and fuel prices, higher labor costs, increased transportation costs, outbreaks of SARs or other diseases, or third party conduct could negatively impact our ability to produce and ship our products, and lower our revenues, margins and profitability. Various economic and public health conditions can impact our ability to manufacture and deliver products in a timely and cost-effective manner, or can otherwise have a significant negative impact on our business. Significant increases in the costs of other products which are required by consumers, such as gasoline, home heating fuels, or groceries, may reduce household spending on the discretionary entertainment products we offer. As we discussed above, weakened economic conditions, lowered employment levels or recessions in any of our major markets may significantly reduce consumer purchases of our products. Economic conditions may also be negatively impacted by terrorist attacks, wars and other conflicts, increases in critical commodity prices, or the prospect of such events. Such a weakened economic and business climate, as well as consumer uncertainty created by such a climate, could harm our revenues and profitability. Our success and profitability not only depend on consumer demand for our products, but also on our ability to produce and sell those products at costs which allow for profitable revenues. Rising fuel and raw material prices, for components such as resin used in plastics, increased transportation costs, and increased labor costs in the markets in which our products are manufactured all may increase the costs we incur to produce and transport our products, which in turn may reduce our margins, reduce our profitability and harm our business. Other conditions, such as the unavailability of electrical components, may impede our ability to manufacture, source and ship new and continuing products on a timely basis. Additional factors outside of our control could further delay our products or increase the cost we pay to produce such products. For example, work stoppages, slowdowns or strikes, an outbreak of SARs or another severe public health pandemic, or the occurrence or threat of wars or other conflicts, all could impact our ability to manufacture or deliver product. Any of these factors could result in product delays, increased costs and/or lost sales for our products. | EXCERPTS ON THIS PAGE:
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