Dick's Sporting Goods 2010 Annual Report Download - page 34

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The recent global crisis may also adversely affect our suppliers’ access to capital and liquidity with which to maintain their
inventory, production levels and product quality and to operate their businesses, all of which could adversely affect our supply
chain. It may cause suppliers to reduce their offerings of customer incentives and vendor allowances, cooperative marketing
expenditures and product promotions. The recent crisis and market instability make it difficult for us and our suppliers to
accurately forecast future product demand trends, which could cause us to carry too much or too little merchandise in various
product categories. The recent financial and economic crisis may also adversely affect our landlords and real estate developers of
retail space, which may limit the availability of attractive leased store locations.
Our business is dependent on the general economic conditions in our markets.
In general, our sales depend on discretionary spending by our customers. A deterioration of economic conditions or an economic
downturn in any of our major markets or in general could result in declines in sales and impair our growth. General economic
conditions and other factors that affect discretionary spending in the regions in which we operate are beyond our control and are
affected by:
•the impact of an economic recession;
•unemployment trends;
•the housing market;
•consumer credit availability;
•consumer debt levels;
•consumer confidence in the economy;
•gasoline and fuel prices;
•interest rates and inflation;
•tax rates and tax policy;
•impact of natural disasters;
•national and international security concerns; and
•other matters that influence consumer confidence and spending.
Increasing volatility in financial markets may cause some of the above factors to change with an even greater degree of frequency
and magnitude.
Our quarterly operating results may fluctuate substantially, which may adversely affect our business and the market price of our
common stock.
Our net sales and results of operations have fluctuated in the past and may vary from quarter-to-quarter in the future. These
fluctuations may adversely affect our business, financial condition and the market price of our common stock. A number of
factors, many of which are outside our control, may cause variations in our quarterly net sales and operating results, including:
•general economic conditions;
•changes in demand for the products that we offer in our stores;
•lockouts or strikes involving professional sports teams;
•retirement of sports superstars used in marketing various products;
•sports scandals;
•costs related to the closures of existing stores;
•litigation;
•pricing and other actions taken by our competitors; and
•adverse weather conditions in our markets.
14 Dick’s Sporting Goods, Inc. ¬2010 Annual Report