POOL (POOL) risk factors, FY2024 10-K

Other

1. 01Cautionary Statement for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995

Risks Relating to Macroeconomic Conditions or Events

1. 02The demand for our products may be adversely affected by unfavorable economic conditions and changes in consumer discretionary spending
2. 03An outbreak of disease or similar public health threat could adversely impact our business and results of operations
3. 04Other catastrophic events or societal unrest could adversely impact our operations

Risks Relating to Our Business and Industry

1. 05We are susceptible to adverse weather conditions, which could intensify as a result of changing climate patterns
2. 06Our distribution business is highly dependent on our ability to maintain favorable and stable relationships with suppliers
3. 07Failure to achieve and maintain a high level of product and service quality and safety could damage our reputation, expose us to litigation and negatively impact our financial performance
4. 08We face intense competition both from within our industry and from other leisure product alternatives
5. 09More aggressive competition by store- and internet-based mass merchants and large pool or irrigation supply retailers could adversely affect our sales
6. 10We depend on our ability to attract, develop and retain highly qualified personnel
7. 11Past growth may not be indicative of future growth
8. 12If we do not successfully manage these potential difficulties or successfully execute our business strategies and initiatives, our operating results could be adversely affected
9. 13We are subject to inventory management risks. Insufficient inventory may result in lost sales opportunities or delayed revenue, while excess inventory may negatively impact our gross margin

Risks Relating to Technology, Cybersecurity and Data Privacy

1. 14We rely on information technology systems to support our business operations. A significant disruption, breach or cybersecurity attack of our technological infrastructure could adversely affect our financial condition and results of operations
2. 15Failure to maintain the security of confidential information could damage our reputation and expose us to litigation. Additionally, changes in data privacy laws and our ability to comply with them could have a material adverse effect on us

Risks Relating to Legal, Regulatory and Compliance Matters

1. 16The nature of our business subjects us to compliance with employment, environmental, health, transportation, safety and other governmental regulations. Changes in, expanded enforcement of, or adoption of new federal, state, local or international laws and regulations could increase our costs of doing business
2. 17Governmental actions designed to address changing climate patterns or the failure to meet environmental social and governance (ESG) expectations or standards or achieve our ESG commitments could adversely affect our business and increase our costs of doing business
3. 18We store chemicals, fertilizers and other combustible materials that involve fire, safety and casualty risks
4. 19We conduct business internationally, which exposes us to additional risks
5. 20Changes in import policy or trade relations, interruptions in our supply chain or increased commodity or supply chain costs could adversely affect our results of operations
6. 21Excess tax benefits or deficiencies recognized from our accounting for share-based awards impact our reported earnings

Financial Risks

1. 22The cost of servicing our debt could reduce our profitability if interest rates remain at elevated levels
2. 23Changes in tax laws and accounting standards related to tax matters have caused, and may in the future cause, fluctuations in our effective tax rate
3. 24We cannot assure you we will continue paying dividends at the current rates, or at all
4. 25Lapses in our disclosure controls and procedures or internal control over financial reporting could materially and adversely affect us