Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 95

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 95
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 experience increased costs, reduce our prices to consumers, or experience reduced sales in response
to increased prices. Any of which could cause our operating margin to decline if we are unable to offset these factors with reductions
in operating costs and could have a material adverse effect on our financial conditions, operating results and cash flows.

If
we are unable to anticipate consumer preferences and successfully develop and introduce innovative products, we may not be able to maintain
or increase our sales and profitability.

Our
success depends on our ability to identify and originate product trends as well as to anticipate and react to changing consumer demands
in a timely manner. All our products are subject to changing consumer preferences that cannot be predicted with certainty. If we are
unable to introduce new products and concepts in a timely manner, or our new products and concepts are not accepted by our customers,
our competitors may introduce similar products in a timelier fashion, which could harm our goal to be viewed as a leader in the luxury
swimwear market. Our new products may not receive consumer acceptance, as consumer preferences could shift rapidly to different types
of swimwear or away from these types of products altogether, and our future success depends in part on our ability to anticipate and
respond to these changes. Our failure to anticipate and respond in a timely manner to changing consumer preferences could lead to, among
other things, lower sales and excess inventory levels. Even if we are successful in anticipating consumer preferences, our ability to
adequately react to and address those preferences will in part depend upon our continued ability to develop and introduce innovative,
high-quality products. Our failure to effectively introduce new products that are accepted by consumers could result in a decrease in
net revenue and excess inventory levels, which could have a material adverse effect on our financial condition.

Increases
in the cost of shipping or service issues with our third-party shippers could harm our business.

We
pass through our shipping costs directly to our customers. We compete against store-front (retail) locations and if the shipping costs
escalate whereby the cost is not prohibitive for the customer to shop online, we could potentially become less competitive, thereby affecting
our sales. Accordingly, any significant increase in shipping rates could have an adverse effect on our operating results. Similarly,
strikes or other service interruptions by those shippers could cause our operating expenses to rise and adversely affect our ability
to deliver products on a timely basis.

Our
results of operations could be materially harmed if we are unable to accurately forecast guest demand for our products.