Dick's Sporting Goods (DKS) risk factors, FY2025 10-K

Risks Related to Our Industry and Macroeconomic Conditions

1. 01Macroeconomic conditions may adversely affect consumer discretionary spending and our business, operations, liquidity, and financial results
2. 02Intense competition in the sporting goods industry and in retail could limit our growth and reduce our profitability
3. 03Fluctuations in product costs and availability due to inflationary pressures, tariffs, currency exchange rate fluctuations, fuel price uncertainty, supply chain constraints, increases in commodity prices, labor shortages and other factors could negatively impact our business and results of operations

Risks Related to Our Operations and Reputation

1. 04If we are unable to predict or effectively react to changes in consumer demand or shopping patterns, we may lose athletes and our sales may decline
2. 05Our vertical brand offerings and new specialty concept stores expose us to potential increased costs, risks related to innovation and prediction of consumer trends and demand, athlete experiences, third party liability and proprietary rights, competition and certain additional risks
3. 06Harm to our reputation could adversely impact our ability to attract and retain athletes and teammates
4. 07Our strategic plans and initiatives may initially result in a negative impact on our financial results, and such plans and initiatives may not achieve the desired results within the anticipated time frame or at all
5. 08An inability to execute our real estate strategy could affect our financial results
6. 09Unauthorized use or disclosure of sensitive or confidential athlete, teammate, vendor or Company information could result in substantial costs and reputational damage, harm to our business and standing with our athletes and could subject us to litigation and enforcement actions
7. 10Problems with our information systems could disrupt our operations and negatively impact our financial results and materially adversely affect our business operations
8. 11We may be unable to attract, train, engage and retain key teammates and to adequately respond to teammate organizing efforts
9. 12The loss of one or more of our key executives or the inability to successfully attract and retain executive officers or implement effective succession planning strategies could have a material adverse effect on our business
10. 13The seasonality of certain categories of our operations, along with the current geographic concentrations of our stores, exposes us to certain seasonal influences and weather-related risks
11. 14We cannot provide any guaranty of future dividend payments or that we will continue to repurchase our common stock pursuant to our stock repurchase program
12. 15If we are unable to protect against inventory shrink, our results of operations and financial condition could be adversely affected

Risks Related to Our Common Stock, Class B Common Stock and Other Anti-Takeover Mechanisms

1. 16We have in the past failed and may in the future fail to meet market expectations, which has caused and could in the future cause the price of our common stock to decline
2. 17We are controlled by holders of our Class B common stock, whose interests may differ from other stockholders
3. 18The issuance of Class B common stock and other anti-takeover mechanisms could prevent or delay a change in control of our Company, even if such change in control would be beneficial to our stockholders

Risks Related to Third Parties and Legal and Regulatory Requirements

1. 19We depend on our suppliers, distributors and manufacturers to provide us with sufficient quantities of quality products in a timely fashion
2. 20We are subject to costs and risks associated with laws and regulations affecting our business
3. 21Our sales and operating results could be adversely affected by product safety and labeling concerns
4. 22We may be subject to various types of litigation and other claims, and our insurance may not be sufficient to cover damages related to those claims
5. 23Our inability or failure to protect our intellectual property rights or any third parties claiming that we have infringed on their intellectual property rights could negatively impact our brand or have a negative impact on our operating results
6. 24Changes to tax laws and regulations could adversely affect our financial results or condition
7. 25Poor performance of professional sports teams within our core regions of operation, as well as league-wide lockouts, strikes or cancellations, retirement of or serious injury to key athletes or scandals involving such athletes could adversely affect our financial results
8. 26Changes to environmental, social and governance matters may impact our business and reputation

Risks Related to Our Indebtedness and Strategic Transactions

1. 27We may pursue strategic alliances, acquisitions or investments and the failure of an alliance, acquisition or investment to produce the anticipated results or the inability to successfully integrate the acquired companies could have an adverse impact on our business
2. 28Our indebtedness and liabilities could limit the cash flow available for our operations and we may not be able to generate sufficient cash to service all of our indebtedness. We may be forced to take certain actions to satisfy our obligations under our indebtedness or we may experience a financial failure
3. 29Provisions in the indenture governing the Senior Notes could delay or prevent an otherwise beneficial takeover of us