If we are unable to generate interest in and demand for our  interactive retail experience, including being able to identify and  respond to consumer preferences in a timely manner, our financial  condition and profitability could be adversely affected.  We believe that our success depends in large part upon our ability to  continue to attract guests with our interactive shopping experience  and our ability to anticipate, gauge and respond in a timely manner  to changing consumer preferences and fashion trends. We cannot  assure you that there will continue to be a demand for our “make- your-own stuffed animal” interactive experience, or for our stuffed  animals, animal apparel and accessories. A decline in demand for  our interactive shopping experience, our animals, animal apparel  or accessories, or a misjudgment of consumer preferences or fashion  trends, could have a negative impact on our business, financial  condition and results of operations. In addition, if we miscalculate  the market for our merchandise or the purchasing preferences of  our guests, we may be required to sell a significant amount of our  inventory at discounted prices or even below costs, thereby adversely  affecting our financial condition and profitability.  Our future growth and profitability could be adversely affected if  our marketing and online initiatives are not effective in generating  sufficient levels of brand awareness and guest traffic or if consumer  preferences change significantly.  We continue to update and evaluate our marketing initiatives,  focusing on brand awareness, new product news, timely promotions  and rapidly changing consumer preferences. Our future growth and  profitability will depend in large part upon the effectiveness and  efficiency of our marketing and advertising programs and future  marketing and advertising efforts that we undertake, including our  ability to:  • create greater awareness of our brand, interactive shopping  experience and products;  • identify the most effective and efficient level of spending in each  market;  • determine the appropriate creative message and media mix for  marketing expenditures;  • effectively manage marketing costs (including creative and media)  in order to maintain acceptable operating margins and return on  marketing investment;  • select the right geographic areas in which to market; and • convert consumer awareness into actual store visits and product  purchases.  Our planned marketing expenditures may not result in increased  total or comparable store sales or generate sufficient levels of product  and brand awareness which could have a material adverse effect on  our financial condition and profitability.  If we are unable to increase our comparable store sales trends, our  results of operations and financial condition could be adversely  affected.  Our consolidated comparable store sales increased by 5.1% in 2013  following a multi-year decline. We believe the principal factors that  will affect comparable store results include the following:  • the continuing appeal of our concept;  • the effectiveness of our marketing efforts to attract new and repeat  guests;  • consumer confidence and general economic conditions;  • the impact of changes in governmental policies on consumer  sentiment and discretionary spending levels;  • the impact of store closures, relocations and openings in existing  markets;  • the impact of our new store design;  • our ability to anticipate and to respond, in a timely manner, to  consumer trends;  • the continued introduction and expansion of our merchandise  offerings;  • mall traffic;  • competition for product offerings including in the online space;  • the timing and frequency of national media appearances and other  public relations events; and  • weather conditions.  As a result of these and other factors, we may not be able to generate  or achieve comparable stores sales growth in the future. If we are  unable to do so, our results of operations could be significantly  harmed and we may be required to record significant impairment  charges.  We are subject to a number of risks related to disruptions, failures  or security breaches of our information technology infrastructure.  If we improperly obtain, or are unable to protect, our data or violate  privacy or security laws or expectations, we could be subject to  liability and damage to our reputation.  Information technology is a critically important part of our  business operations. We depend on information systems to process  transactions, manage inventory, operate our Web sites, purchase,  sell and ship goods on a timely basis, and maintain cost-efficient  operations. There is a risk that we could experience a business  interruption, theft of information, or reputational damage as a  result of a cyber-attack, such as an infiltration of a data center, or  data leakage of confidential information either internally or at our  third-party providers. We may experience operational problems  with our information systems as a result of system failures, system  implementation issues, viruses, malicious hackers, sabotage, or other  causes.  2013 FORM 10-K 7 BUILD-A-BEAR WORKSHOP, INC. 