GME Gamestop Corporation

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.
• Technological advances in the delivery and types of video games and PC entertainment hardware and software, as well as changes in consumer behavior related to these new technologies, have and may continue to lower our sales.
• If we fail to keep pace with changing industry technology and consumer preferences, we will be at a competitive disadvantage.
• International events could delay or prevent the delivery of products to our suppliers.
• Our ability to obtain favorable terms from our suppliers may impact our financial results.
• Our international operations expose us to numerous risks.
• 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.
• An important element of our business strategy is to de-densify our global store base. Failure to successfully transfer customers and sales from closed stores 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.
• Pressure from our competitors may force us to reduce our prices or increase spending, which could decrease our profitability.
• Changes to tariff and import/export regulations may negatively impact our future financial condition and results of operations.
• Failure to attract and retain executive officers and other key personnel could materially adversely affect our financial performance.
• If our management information systems fail to perform or are inadequate, our ability to manage our business could be disrupted.
• 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.
• If we do not maintain the security of our customer, employee or company information, we could damage our reputation, incur substantial additional costs and become subject to litigation.
• Damage to our reputation could adversely affect our business and our relationships with our customers.
• If our vendors fail to provide marketing and merchandising support at historical levels, our sales and earnings could be negatively impacted.
• Restrictions on our ability to purchase and sell pre-owned video game products 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.
• Unfavorable changes in our global tax rate could have a negative impact on our business, results of operations and cash flows.
• 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 elected to eliminate the Company's quarterly dividend, which became effective during the second quarter of fiscal 2019. We have no current plans to pay cash dividends on our common stock in the foreseeable future.
• Because of our floating rate credit facility, we may be adversely affected by interest rate changes.
• 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 or refinance our debt on favorable terms.
• 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.