Floor & Decor Holdings (FND) risk factors, FY2024 10-K

Risks Related to Our Business and Industry

1. 01Declines in certain economic conditions, which impact consumer discretionary spending, could adversely affect our business, financial condition, and results of operations
2. 02If we fail to successfully manage the challenges that our planned new store growth poses or encounter unexpected difficulties or higher costs during our expansion, our operating results and future growth opportunities could be adversely affected
3. 03Our business largely depends on a strong brand image and awareness, and if we are unable to maintain and enhance our brand image and awareness, particularly in new markets where we have limited brand recognition, we may be unable to increase or maintain our level of sales
4. 04Any failure by us to successfully anticipate trends may lead to loss of consumer acceptance of our products, resulting in reduced net sales
5. 05Increased competition could cause price declines, decrease demand for our products, and decrease our market share
6. 06Rising geopolitical tensions and U.S. policies related to global trade and tariffs, including with respect to antidumping and countervailing duties, could adversely affect our business, financial condition, and results of operations
7. 07Our operating results may be adversely affected if we do not successfully manage our inventory
8. 08Any disruption in our distribution capabilities, our supply chain, or our related planning and control processes may adversely affect our business, financial condition, and operating results
9. 09Our operating results may be adversely affected by increases in wholesale prices of products, materials and transportation costs beyond our control, including increases in costs due to inflation
10. 10Our success depends substantially upon the continued retention of our key personnel, including our executive officers
11. 11Our success depends upon our ability to attract, hire, train, and retain highly qualified managers and staff
12. 12Labor activities could cause labor relations difficulties for us
13. 13We procure the majority of our products from suppliers located outside of the United States, and as a result, we are subject to risks associated with obtaining products from abroad that could adversely affect our business, financial condition, and results of operations
14. 14We depend on a number of suppliers, and any failure by any of them to supply us with quality products on attractive terms and prices may adversely affect our business, financial condition, and operating results
15. 15The failure of our suppliers to adhere to the quality standards that we set for our products could lead to investigations, litigation, write-offs, recalls or boycotts of our products, which could damage our reputation and our brand, increase our costs, and otherwise adversely affect our business
16. 16Our ability to offer compelling products to our customers depends on the continued availability of sufficient suitable natural products
17. 17The effects of weather conditions, natural disasters or other unexpected events, including public health crises, may disrupt our operations and have a negative impact on our business
18. 18Our business exposes us to personal injury, product liability and warranty claims and related governmental investigations, which could result in negative publicity, harm our brand and adversely affect our business, financial condition, and operating results
19. 19Federal, state or local laws and regulations, or our failure to comply with such laws and regulations, could increase our expenses, restrict our ability to conduct our business and expose us to legal risks
20. 20Any changes to these laws or regulations, increased or expanded enforcement of these laws or regulations, or any new laws or regulations that are passed or go into effect may make it more difficult for us to operate our business and in turn adversely affect our operating results
21. 21A disruption in our information systems, including our website, could adversely affect our business or operating results and lead to reduced net sales and reputational damage
22. 22We may continue to have negative comparable store sales or future comparable store growth lower than we expect, which has had and may continue to have a negative impact on our net sales, business, financial condition, and operating results
23. 23Changes in tax laws, trade policies, or regulations and newly enacted tax laws, trade policies, or regulations may impact our effective tax rate or may adversely affect our business, financial condition, and operating results
24. 24We are subject to payments-related risks that could increase our operating costs, expose us to fraud, subject us to potential liability and potentially disrupt our business
25. 25Our intellectual property rights are valuable, and any failure to protect them could reduce the value of our products and brand and harm our business
26. 26We may be involved in disputes from time to time relating to our intellectual property and the intellectual property of third parties
27. 27We may, from time to time, consider or engage in strategic transactions. Any such strategic transactions would involve risks, which could have an adverse impact on our financial condition and results of operation, and we may not realize the anticipated benefits of these transactions
28. 28We face risks related to our indebtedness

Risks Related to the Ownership of Our Common Stock

1. 29We do not currently expect to pay any cash dividends
2. 30Certain provisions in our organizational documents and Delaware law could impair a takeover attempt and adversely affect existing stockholders and the market value of our common stock
3. 31We are engaged from time to time in various legal actions, claims and proceedings, and, while we cannot predict the outcomes of such proceedings and other contingencies with certainty, some of these outcomes and any potential future proceedings could have an adverse impact on us
4. 32We are subject to risks related to corporate social responsibility