GME Gamestop Corp

Risks

• The video game industry has historically been cyclical and is affected by the introduction of next-generation consoles, which could negatively impact the demand for existing products or our pre-owned business.
• We depend upon the timely delivery of new and innovative products from our vendors.
• If we fail to keep pace with changing industry technology and consumer preferences, we will be at a competitive disadvantage.
• Technological advances in the delivery and types of video games and PC entertainment software, as well as changes in consumer behavior related to these new technologies, could lower our sales.
• Our sales of collectibles depend on popularity of and trends in pop culture, and our ability to react to them.
• We depend on licensed products for a substantial portion of our sales of collectibles and our inability to maintain such licenses and obtain new licensed products would adversely affect our sales of collectibles.
• Our ability to obtain favorable terms from our suppliers may impact our financial results.
• If our vendors fail to provide marketing and merchandising support at historical levels, our sales and earnings could be negatively impacted.
• Pressure from our competitors may force us to reduce our prices or increase spending, which could decrease our profitability.
• Failure to attract and retain executive officers and other key personnel could materially adversely affect our financial performance.
• Damage to our reputation could adversely affect our business and our relationships with our customers.
• International events could delay or prevent the delivery of products to our suppliers.
• Our international operations expose us to numerous risks.
• Changes to tariff and import/export regulations may negatively impact our future financial condition and results of operations.
• Unfavorable changes in our global tax rate could have a negative impact on our business, results of operations and cash flows.
• Restrictions on our ability to purchase and sell pre-owned video game products or pre-owned mobile devices could negatively affect our financial condition and results of operations.
• Sales of video games containing graphic violence may decrease as a result of actual violent events or other reasons, and our financial results may be adversely affected as a result.
• An adverse trend in sales during the holiday selling season could impact our financial results.
• Our results of operations may fluctuate from quarter to quarter.
• Failure to successfully transfer customers and sales from closed stores due to under performance to nearby stores could adversely impact our financial results.
• If we are unable to renew or enter into new leases on favorable terms, our revenue may be adversely affected.
• We rely on centralized facilities for refurbishment of our pre-owned products. Any disruption to these facilities could adversely affect our profitability.
• If our management information systems fail to perform or are inadequate, our ability to manage our business could be disrupted.
• If we do not maintain the security of our member, customer, employee or company information, we could damage our reputation, incur substantial additional costs and become subject to litigation.
• Litigation and the outcomes of such litigation could negatively impact our future financial condition and results of operations.
• Legislative actions and changes in accounting rules may cause our general and administrative and compliance costs to increase and impact our future financial condition and results of operations.
• As a seller of certain consumer products, we are subject to various federal, state, local and international laws, regulations, and statutes relating to product safety and consumer protection.
• Our Board of Directors could change our dividend policy at any time.
• We recognized substantial impairment charges in fiscal 2018 and any future impairment charges on our goodwill and intangible assets could negatively impact our results of operations.
• The terms of our Senior Notes and senior credit facility may impose significant operating and financial restrictions on us.
• To service our indebtedness, we will require a significant amount of cash. We may not be able to generate sufficient cash flow to meet our debt service obligations.
• Despite current indebtedness levels, we and our subsidiaries may still be able to incur additional debt. This could further increase the risks associated with our leverage.