Dick's Sporting Goods 2015 Annual Report Download - page 16

Lack of available retail store sites on terms acceptable to us, rising real estate prices and other costs and risks relating to a
brick and mortar retail store model could affect our results.
Opening stores in new and existing markets is a critical part of our business strategy. Our plans to increase our number of retail
stores will depend in part on the availability of existing retail stores or store sites. Furthermore, even if suitable properties are
identified, if we fail to negotiate appropriate terms for new leases we enter into, we may incur lease costs that are excessive and
cause operating margins to be below acceptable levels. We may also make term commitments that are too long or too short,
without the option to exit early or extend. Factors such as the condition of local property markets, availability of lease
financing, taxes, zoning and environmental issues, and competitive actions may impact the availability of, and our ability to
successfully negotiate leases, for suitable property. Furthermore, the success of new stores depends on a number of factors,
including the success of the shopping center where our store is located, consumer demographics and consumer shopping
patterns. These factors cannot be predicted with complete accuracy. If we fail to profitably operate these new stores once they
open, our financial performance could be adversely affected.
Unauthorized disclosure of sensitive or confidential customer information could harm the Company's business and
standing with our customers.
The protection of our customer, associate and Company data is critical to us. The Company receives confidential customer data,
including payment card and personally identifiable information, in the normal course of customer transactions. While we have
taken significant steps to protect customer and confidential information, the intentional or negligent actions of employees,
business associates or third parties may undermine our security measures. As a result, unauthorized parties may obtain access to
our data systems and misappropriate confidential data. There can be no assurance that advances in computer capabilities, new
discoveries in the field of cryptography or other developments will prevent the compromise of our customer transaction
processing capabilities and personal data. Because the techniques used to obtain unauthorized access, disable or degrade
service, or sabotage systems, change frequently and often are not recognized until launched against a target, we may be unable
to anticipate these techniques or to implement adequate preventative measures. While we have not experienced a material data
security breach to date, any compromise of our data security could result in a violation of applicable privacy and other laws or
standards, significant legal and financial exposure beyond the scope or limits of insurance coverage, interruption of our
operations, increased operating costs associated with remediation, equipment acquisitions or disposal and added personnel, and
a loss of confidence in our security measures, which could harm our business or investor confidence. Any security breach
involving the misappropriation, loss or other unauthorized disclosure of sensitive or confidential information could attract a
substantial amount of media attention, damage our reputation, expose us to risk of litigation and material liability, disrupt our
operations and harm our business.
Our private brand offerings and new retail concepts expose us to increased costs and certain additional risks.
We offer our customers private brand products that are not available from other retailers. We expect to continue to grow our
exclusive private brand offerings through a combination of brands that we own and brands that we license from third parties.
We also evaluate and operate new retail concepts, including, for example, our Field & Stream, True Runner and Chelsea
Collective concepts. We invest in our development and procurement resources and marketing efforts relating to these private
brand offerings and new retail concepts. There is no assurance that our private brand products or our new retail concepts will be
successful, and we could curtail or abandon any of our private brands or retail concepts at any time. Factors that could cause us
to curtail or abandon one of our private brands or retail concepts include unexpected or increased costs or delays in
development of the brand, demands on management resources, legal or regulatory constraints, change in consumer demands,
preferences and shopping patterns regarding sporting goods, or a determination that the demand does not support the brand.
Additional risks relating to private brand offerings include product liability and product recalls; our ability to successfully
protect our proprietary rights (e.g., defending against counterfeit or otherwise unauthorized goods); our ability to successfully
navigate and avoid claims related to the proprietary rights of third parties; and our ability to successfully administer and comply
with obligations under license agreements that we have with the licensors of brands.
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