The footwear industry has relatively long lead times for design andproduction of product and thus, the Company must commit to production toolingand in some cases to production in advance of orders. If the Company fails toaccurately forecast consumer demand or if there are changes in consumerpreference or market demand after the Company has made such productioncommitments, the Company may encounter difficulty in filling customer orders orin liquidating excess inventory, which may have an adverse effect on theCompany’s sales margins and brand image.
SALES FORECASTS
The Company’s investment in advertising and marketing is based on salesforecasts and is necessarily made in advance of actual sales. The markets inwhich the Company does business are highly competitive, and the Company’sbusiness is affected by a variety of factors, including those described aboveunder "Competition and Consumer Preferences", as well as brand awareness,changing consumer preferences, fashion trends, retail market conditions andeconomic and other factors. There can be no assurance that sales forecasts willbe achieved,Christian Louboutin Shoes, and to the extent sales forecasts are not achieved, theseinvestments will represent a higher percentage of revenues, and the Company willexperience higher inventory levels and associated carrying costs, all of whichwould adversely impact the Company’s financial condition and results.
14ADVERTISING AND MARKETING INVESTMENT
Because consumer demand for athletic footwear and apparel is heavilyinfluenced by brand image, the Company’s business requires substantialinvestments in marketing and advertising,Cheap Christian Louboutin, including television and otheradvertising, athlete endorsements and athletic sponsorships, as well asinvestments in retail presence. In the event that such investments do notachieve the desired effect in terms of increased retailer acceptance and/orconsumer purchase of the Company’s products, there could be an adverse impact onthe Company’s financial results.