Hibbett (HIBB)

Risks

• Risks Related to Our Business and Industry
• Security threats, including physical and cyber-security threats, and unauthorized disclosure of sensitive or confidential information could cause us to incur substantial expenses, result in litigation or other legal actions, adversely affect our operating results, and harm our business and reputation with our consumers.
• Our inability or failure to recognize, respond to and effectively manage the accelerated impact of social media could adversely impact our business.
• Pressure from our competitors may force us to reduce our prices or increase our spending on marketing and promotion, which could lower our net sales, gross profit and operating income.
• Our inability to identify and anticipate changes in consumer demands and preferences and our inability to respond to such consumer demands in a timely manner could reduce our net sales or profitability.
• We are subject to payment-related risks that could increase our operating costs, subject us to potential liability, and potentially disrupt our business.
• We rely heavily on information systems to conduct our business. Problems with our information systems could disrupt our operations and negatively impact our financial results and materially adversely affect our business operations.
• Our failure to effectively manage our real estate portfolio may negatively impact our operating results.
• We would be materially and adversely affected if all or a portion of our primary wholesale and logistics facility was disrupted.
• A disruption in the flow of imported merchandise or an increase in the cost of those goods could significantly decrease our net sales and operating income.
• Increases in transportation or shipping costs and other factors may negatively impact our results of operations.
• Our operating results are subject to seasonal and quarterly fluctuations. Furthermore, our quarterly operating results, including comparable store net sales, will fluctuate and may not be a meaningful indicator of future performance.
• We are subject to regional risks due to our stores within the South, Southwest, Mid-Atlantic and Midwest regions of the United States.