Autozone (AZO) risk factors, FY2024 10-K

Strategic and Operational Risks

1. 01If demand for our products slows, then our business may be materially adversely affected
2. 02We may not be able to sustain our historic rate of sales growth
3. 03We have increased our store count in the past five fiscal years, growing from 6,411 stores at August 31, 2019 to 7,353 stores at August 31, 2024, a compounded annual growth rate of approximately three percent
4. 04If we cannot profitably increase our market share in the commercial auto parts business, our sales growth may be limited
5. 05Our business depends upon hiring, training and retaining qualified employees, including members of management and other key personnel
6. 06Inability to acquire and provide quality merchandise at competitive prices could materially adversely affect our sales and results of operations
7. 07We are subject to risks associated with products sourced outside the U.S
8. 08Disruptions in our supply chain and other factors affecting the distribution of our merchandise could adversely impact our business
9. 09Our success in international operations is dependent on our ability to manage the unique challenges presented by international markets
10. 10Business interruptions may negatively impact our operating hours, operability of our computer and other systems, availability of merchandise and otherwise have a material adverse effect on our sales and our business
11. 11Our failure to protect our brand and reputation could have an adverse effect on our relationships with our customers, AutoZoners, suppliers, vendors and other stakeholders, thereby negatively impacting sales and profitability
12. 12Information Technology, Cybersecurity and Data Privacy Risks
13. 13We are subject to a complex and evolving body of laws and regulations regarding data privacy and may face increased costs as a result of changes in, enforcement of, or the adoption of new laws and regulations. These costs may have a material adverse impact on our business and results of operations
14. 14We are self-insured for certain costs associated with our operations and an increase in our insurance claims and expenses may have a material negative impact on us
15. 15A downgrade in our credit ratings or a general disruption in the credit markets could make it more difficult for us to access funds, refinance our debt, obtain new funding or issue debt securities

Legal and Regulatory Risks

1. 16Our business, results of operations, financial condition and cash flows may be adversely affected by the adoption of new laws, changes to existing laws, increased enforcement activity or other governmental actions
2. 17We may be adversely affected by legal, regulatory or market responses to global climate change
3. 18We may be unable to achieve the goals and aspirations set forth in our environmental, social and governance (ESG) report, particularly with respect to the reduction of GHG emissions, or otherwise meet the expectations of our stakeholders with respect to ESG matters
4. 19failure or perceived failure to meet these expectations could adversely affect public perception of our business, employee morale or customer or shareholder support
5. 20Our business, financial condition, results of operations and cash flows may be affected by litigation

General Risks

1. 21Significant changes in macroeconomic and geo-political factors could materially adversely affect our financial condition and results of operations