Dick's Sporting Goods 2010 Annual Report Download - page 35

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Our same store sales will fluctuate and may not be a meaningful indicator of future performance.
Changes in our same store sales results could affect the price of our common stock. A number of factors have historically
affected, and will continue to affect, our same store sales results, including:
•general regional and national economic conditions;
•competition;
•our new store openings;
•consumer trends and preferences;
•changes in the other tenants in the shopping centers in which we are located;
•new product introductions and changes in our product mix;
•timing and effectiveness of promotional events;
•lack of new product introductions to spur growth in the sale of various kinds of sports equipment; and
•weather.
Our same store sales may vary from quarter to quarter and could decline relative to the comparable period in the prior fiscal
year. A decline in revenues or same store sales may cause the price of our common stock to decrease or to fluctuate significantly.
The market price of our common stock is likely to be highly volatile as the stock market in general can be highly volatile.
Factors that could cause fluctuation in the stock price may include, among other things:
•general economic and market conditions;
•actual or anticipated variations in quarterly operating results;
•changes in financial estimates by securities analysts;
•our inability to meet or exceed securities analysts’ estimates or expectations;
•conditions or trends in our industry;
•changes in the market valuations of other retail companies;
•announcements by us or our competitors of significant acquisitions, strategic partnerships, divestitures, joint ventures or
other strategic initiatives;
•capital commitments;
•additions or departures of key personnel; and
•sales of common stock.
Many of these factors are beyond our control. These factors may cause the market price of our common stock to decline,
regardless of our operating performance.
Our ability to operate and expand our business and to respond to changing business and economic conditions will be dependent
upon the availability of adequate capital. The terms of our senior secured revolving credit facility impose certain restrictions that
may impair our ability to access sufficient capital. Additionally, we are subject to counterparty risk on our senior secured revolving
credit facility.
The operation of our business, the rate of our expansion and our ability to respond to changing business and economic conditions
depend on the availability of adequate capital, which in turn depends on cash flow generated by our business and, if necessary,
the availability of equity or debt capital. We cannot assure you that our cash flow will be sufficient to meet these needs or that we
would be able to obtain equity or debt capital on acceptable terms or at all. Our current senior secured revolving credit facility
contains provisions that limit our ability to incur additional indebtedness or make substantial asset sales, which might otherwise
be used to finance our operations. In addition, our obligations under the senior secured revolving credit facility are secured by
interests in substantially all of our personal property, excluding store and distribution center equipment and fixtures, which may
further limit our access to certain capital markets or lending sources. Moreover, the actual availability under our credit facility is
Dick’s Sporting Goods, Inc. ¬2010 Annual Report 15