O Reilly Automotive (ORLY) risk factors, FY2025 10-K

Other

1. 01RISKS SPECIFIC TO OUR BUSINESS AND INDUSTRY
2. 02Deteriorating economic conditions may adversely impact demand for our products, reduce access to credit, and cause our customers and others, with which we do business, to suffer financial hardship, all of which could adversely impact our business, results of operations, financial condition, and cash flows
3. 03The automotive aftermarket business is highly competitive, and we may have to risk our capital to remain competitive, all of which could adversely impact our business, results of operations, financial condition, and cash flows
4. 04Our business is sensitive to global, national, and regional economic and weather conditions and natural disasters that could impact our costs and sales38% rewritten
5. 05A change in the relationship with any of our key suppliers, the limited supply or unavailability of key products, supply chain disruptions, or changes in trade policies could affect our financial health
6. 06Business interruptions in our distribution centers or other facilities may affect our store hours, stability of systems we rely on, and/or availability and distribution of merchandise, which may affect our business61% rewritten
7. 07sources at similar prices. Such a disruption in revenue could potentially have a negative impact on our results of operations, financial condition, and cash flowsNew
8. 08Failure to protect our brand and reputation could have a material adverse effect on our brand name, business, results of operations, financial condition, and cash flows
9. 09Risks associated with international operations could result in additional costs and inefficiencies

Risks related to us and unanticipated fluctuations in our quarterly operating results could affect our stock price

1. 10The market price of our common stock may be volatile and could expose us to securities class action litigation

RISKS RELATED TO OUR INDEBTEDNESS AND FINANCING

1. 11Our debt levels could adversely affect our cash flow and prevent us from fulfilling our obligations
2. 12A downgrade in our credit rating would impact our cost of capital and could impact the market value of our unsecured senior notes, as well as limit our access to attractive supplier financing programs

RISKS RELATED TO INFORMATION TECHNOLOGY AND DATA PRIVACY

1. 13Damage, failure, or interruptions of information technology systems could adversely affect our business operations and results40% rewritten
2. 14intensive to remedy; and/or harm our reputation and relationship with customers, Team Members, suppliers, and other stakeholders, all of which could have a material adverse impact on our results of operations, financial condition, and cash flowsNew
3. 15A breach of customer, supplier, Team Member, or Company information could damage our reputation or result in substantial additional costs or litigation

GENERAL RISKS

1. 16We cannot assure future growth will be achieved
2. 17In order to be successful, we will need to attract, retain, and motivate qualified employees
3. 18Risks associated with future acquisitions may not lead to expected growth and could result in increased costs and inefficiencies
4. 19Litigation, governmental proceedings, environmental, employment, and tax legislation and regulations may affect our business, financial condition, results of operations, and cash flows