ASO on Nasdaq

Academy Sports & Outdoors, Inc.

Academy Sports & Outdoors, Inc. is an American retail-miscellaneous shopping goods stores company based in Wilmington.2 Its shares trade on Nasdaq under the symbol ASO.2

Price unavailable

Last updated Oct 21, 2026.

Overview

$6.1BRevenue, fiscal 20263
$376.8MNet income, fiscal 20263

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  • TickerASO on Nasdaq2
  • IndustryRetail-Miscellaneous Shopping Goods Stores2
  • HeadquartersWilmington, United States2
  • Incorporated inDE4
  • Business address1800 North Mason Road, Katy, Tx 774494
  • Filer categoryLarge accelerated filer4
  • Legal formCorporation2
  • LEI529900HST589BD301M912
  • StatusActive2
  • LEI statusIssued and current2
  • Registered addressc/o CORPORATION SERVICE COMPANY, 251 LITTLE FALLS DRIVE, 19808 Wilmington, United States2
  • Registered withDivision of Corporations, Department of State, 31688962

The following discussion and analysis of our financial condition and results of operations should be read together with our financial statements and related notes included elsewhere in this Annual Report for the fiscal year ended January 31, 2026. This discussion contains forward-looking statements that involve risks and uncertainties. See the section of this Annual Report entitled “Cautionary Statement Regarding Forward-Looking Statements.” When reviewing the discussion below, you should keep in mind the substantial risks and uncertainties that characterize our business. Known material factors that could affect our financial performance and actual results, and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this discussion or otherwise made by our management, are described in the “Risk Factors” section of this…6 From its latest annual report

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2026

34.8%Gross margin3
8.5%Operating margin3
6.2%Net margin3
2.0%Revenue growth, 20263
17.4%Return on equity3
0.22×Debt to equity3
$222.1MFree cash flow3

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Products and services

Outdoors brought in 30% of the revenue Academy Sports & Outdoors, Inc. broke down this way in fiscal 2026.

  1. Outdoors$1.8B330%up 1% from 2025
  2. Apparel$1.6B327%up 2% from 2025
  3. Sports And Recreation$1.3B322%up 4% from 2025
  4. Footwear$1.2B320%up 1% from 2025
  5. Other$35.6M31%down 3% from 2025
Products and services by year
Products and services202420252026
Outdoors$1.8B$1.8B$1.8B
Apparel$1.7B$1.6B$1.6B
Sports And Recreation$1.4B$1.3B$1.3B
Footwear$1.2B$1.2B$1.2B
Other$33.4M$36.7M$35.6M

Where the money goes

Where each dollar of revenue went, fiscal 2026

  • Cost of revenue65¢$3.9B
  • Selling, general and admin26¢$1.6B
  • Income tax2¢$109.3M
  • Profit6¢$376.8M

Out of $6.1B in revenue.3

Where each dollar of operating cash went, fiscal 2026

  • Capital spending48¢$212.7M
  • Dividends paid8¢$34.7M
  • Share buybacks45¢$199.0M

Out of $434.8M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.3

Financial statements

Revenue78910113$6.1B in 2026+27% since 2019
0$2.0B$4.0B$6.0B$8.0B2019: $4.8B$4.8B20192020: $4.8B$4.8B2020+1%2021: $5.7B$5.7B2021+18%2022: $6.8B$6.8B2022+19%2023: $6.4B$6.4B2023−6%2024: $6.2B$6.2B2024−4%2025: $5.9B$5.9B2025−4%2026: $6.1B$6.1B2026+2%
Gross profit78910113$2.1B in 2026+54% since 2019
0$1.0B$2.0B$3.0B2019: $1.4B$1.4B20192020: $1.4B$1.4B2020+5%2021: $1.7B$1.7B2021+21%2022: $2.4B$2.4B2022+36%2023: $2.2B$2.2B2023−6%2024: $2.1B$2.1B2024−5%2025: $2.0B$2.0B2025−5%2026: $2.1B$2.1B2026+5%
Operating income78910113$512.2M in 2026+297% since 2019
0$250.0M$500.0M$750.0M$1.0B2019: $128.9M$128.9M20192020: $179.4M$179.4M2020+39%2021: $420.4M$420.4M2021+134%2022: $907.9M$907.9M2022+116%2023: $846.5M$846.5M2023−7%2024: $677.9M$677.9M2024−20%2025: $538.6M$538.6M2025−21%2026: $512.2M$512.2M2026−5%
Net income78910113$376.8M in 2026+1657% since 2019
0$200.0M$400.0M$600.0M$800.0M2019: $21.4M$21.4M20192020: $120.0M$120.0M2020+460%2021: $308.8M$308.8M2021+157%2022: $671.4M$671.4M2022+117%2023: $628.0M$628.0M2023−6%2024: $519.2M$519.2M2024−17%2025: $418.4M$418.4M2025−19%2026: $376.8M$376.8M2026−10%

Every line of the income statement as filed: the last 3 fiscal years, latest first.3

Period ending2026-01-312025-01-312024-01-31
NET SALES$6.1B$5.9B$6.2B
COST OF GOODS SOLD$3.9B$3.9B$4.0B
GROSS MARGIN$2.1B$2.0B$2.1B
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES$1.6B$1.5B$1.4B
OPERATING INCOME$512.2M$538.6M$677.9M
INTEREST EXPENSE, NET$36.2M$36.9M$46.1M
WRITE-OFF OF DEFERRED LOAN COSTS$0$449.0K$1.5M
OTHER INCOME, NET$10.1M$36.9M$32.9M
INCOME BEFORE INCOME TAXES$486.1M$538.2M$663.2M
INCOME TAX EXPENSE$109.3M$119.8M$144.0M
NET INCOME$376.8M$418.4M$519.2M
BASIC (in dollars per share)$5.66$5.87$6.89
DILUTED (in dollars per share)$5.54$5.73$6.70
BASIC (in shares)66.6M shares71.3M shares75.4M shares
DILUTED (in shares)68.0M shares73.0M shares77.5M shares

Compare Academy Sports & Outdoors, Inc. with another company

Corporate structure

Academy Sports & Outdoors, Inc. sits at the top of its group. 8 entities, 2 countries on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Academy Sports & Outdoors, Inc.

  • LSV ASSET MANAGEMENT Filed SCHEDULE 13G on Academy Sports & Outdoors, Inc., latest Aug 6, 2026
  • DIMENSIONAL FUND ADVISORS LP Filed SCHEDULE 13G/A on Academy Sports & Outdoors, Inc., latest Jul 14, 2026 (2 filings since Jan 23, 2025)
  • VANGUARD CAPITAL MANAGEMENT LLC Filed SCHEDULE 13G on Academy Sports & Outdoors, Inc., latest Apr 29, 2026
  • VANGUARD PORTFOLIO MANAGEMENT LLC Filed SCHEDULE 13G on Academy Sports & Outdoors, Inc., latest Apr 28, 2026
  • VANGUARD GROUP INC Filed SCHEDULE 13G/A on Academy Sports & Outdoors, Inc., latest Mar 26, 2026 (5 filings since Feb 9, 2022)
  • BlackRock Filed SCHEDULE 13G/A on Academy Sports & Outdoors, Inc., latest Jul 17, 2025 (6 filings since Feb 7, 2022)
  • FMR LLC Filed SC 13G/A on Academy Sports & Outdoors, Inc., latest Feb 9, 2024 (3 filings since Feb 9, 2022)
  • Allstar LLC Filed SC 13G/A on Academy Sports & Outdoors, Inc., latest Feb 10, 2022
  • Academy Sports & Outdoors, Inc. Wilmington, Delaware, United States
    • Academy International Limited Subsidiary · Hong Kong
    • Academy Managing Co., L.L.C. Subsidiary · Texas, United States
    • Academy Procurement Co., LLC Subsidiary · Texas, United States
    • Academy, Ltd. Subsidiary · Texas, United States
    • Associated Investors, L.L.C. Subsidiary · Texas, United States
    • Mason Creek Insurance Co., LLC Subsidiary · Texas, United States
    • New Academy Holding Company, LLC Subsidiary · Delaware, United States

Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What Academy Sports & Outdoors, Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Property and equipment, before depreciation$2.1B3 Jan 31, 2026$1.9B3 Feb 1, 2025+9.3%
Accumulated depreciation$1.5B3 Jan 31, 2026$1.4B3 Feb 1, 2025+8.5%
Property and equipment, net$584.1M3 Jan 31, 2026$525.1M3 Feb 1, 2025+11.2%
Operating-lease assets (leased space)$1.2B3 Jan 31, 2026$1.2B3 Feb 1, 2025+5.2%

Real estate and locations

ItemLatestA year beforeChange
Stores3223 Jan 31, 202629811 Feb 1, 2025+8.1%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$330.3M3 Jan 31, 2026$288.9M3 Feb 1, 2025+14.3%

Intangibles and goodwill

ItemLatestA year beforeChange
Goodwill$861.9M3 Jan 31, 2026$861.9M3 Feb 1, 20250%
Intangible assets, net (excluding goodwill)$579.8M3 Jan 31, 2026$579.0M3 Feb 1, 2025+0.1%

Inventory

ItemLatestA year beforeChange
Inventory, total$1.5B3 Jan 31, 2026$1.3B3 Feb 1, 2025+14.9%

Properties, in its own words

Location · Use · Approximate Square Footage

Katy, Texas · Corporate Office Building 1 · 400,000

The rest of Item 2

Katy, Texas · Corporate Office Building 2 · 200,000

Katy, Texas · Bulk Warehouse · 200,000

Katy, Texas · Distribution Center · 1,400,000

Twiggs County, Georgia · Distribution Center · 1,600,000

Cookeville, Tennessee · Distribution Center · 1,600,000

Kowloon, Hong Kong · Global Sourcing Office · 5,000

With the exception of one retail store which we own, we lease all of our retail stores, distribution centers and corporate offices. Our initial store lease terms are typically 15 to 20 years with various renewal options and lease escalation structures. We believe that all of our leases are entered into at then-prevailing market lease rates. As of January 31, 2026, our combined leased and owned store square footage was approximately 21.9 million square feet.

Item 2 of the 10-K filed Mar 17, 2026.6

Leadership

Who has led Academy Sports & Outdoors, Inc., and when. Pick a name to see everywhere that person has worked.

Board members and other officers (28)

Subsidiaries and ownership

Subsidiaries (Exhibit 21)

  • Academy International Limited Hong Kong5
  • Academy Managing Co., L.L.C. Texas5
  • Academy Procurement Co., LLC Texas5
  • Academy, Ltd. Texas5
  • Associated Investors, L.L.C. Texas5
  • Mason Creek Insurance Co., LLC Texas5
  • New Academy Holding Company, LLC Delaware5

The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.

Timeline

  1. Sep 9, 20268-K Results of operations; Regulation FD disclosure48
  2. Jun 9, 20268-K Results of operations; Regulation FD disclosure49
  3. Jun 4, 20268-K Shareholder vote; Other events50
  4. May 14, 20268-K Entered a material agreement; Ended a material agreement; New debt or obligation51
  5. May 4, 20268-K Regulation FD disclosure52
  6. May 4, 20268-K Regulation FD disclosure53
  7. Apr 7, 20268-K Regulation FD disclosure54
  8. Mar 31, 20268-K Regulation FD disclosure55
  9. Mar 17, 20268-K Results of operations; Regulation FD disclosure56
  10. Dec 9, 20258-K Results of operations; Regulation FD disclosure57
  11. Dec 2, 20258-K Executive or director change58
  12. Sep 16, 20258-K Executive or director change59
  13. Jun 13, 2023New chief executive Steven Paul Lawrence becomes CEO14
  14. Oct 2, 2020New chief executive Ken C. Hicks becomes CEO15
  15. Jun 30, 2020Founded Academy Sports & Outdoors, Inc. is founded2

Calendar

Coming up

  1. Dec 8, 2026Reports results for the quarter ending Oct/2026 A year earlier it reported $1.03 a share, on Dec 9, 2025.60

When it reported results

  1. Sep 9, 2026Reported quarterly or annual results48
  2. Jun 9, 2026Reported quarterly or annual results49
  3. Mar 17, 2026Reported quarterly or annual results56
  4. Dec 9, 2025Reported quarterly or annual results57
  5. Sep 2, 2025Reported quarterly or annual results61
  6. Jun 10, 2025Reported quarterly or annual results62
  7. Mar 20, 2025Reported quarterly or annual results63
  8. Dec 10, 2024Reported quarterly or annual results64

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

472 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 55 major events, 326 insider forms, 20 large holders, 51 other. The latest 20:

  1. Sep 16, 20264 EDGAR
  2. Sep 16, 20264 EDGAR
  3. Sep 15, 2026144 EDGAR
  4. Sep 15, 2026144 EDGAR
  5. Sep 14, 2026144 EDGAR
  6. Sep 14, 2026144 EDGAR
  7. Sep 9, 202610-Q EDGAR
  8. Sep 9, 20268-K EDGAR
  9. Sep 8, 20264 EDGAR
  10. Sep 8, 20264 EDGAR
  11. Aug 6, 2026SCHEDULE 13G EDGAR
  12. Jul 17, 20264 EDGAR
  13. Jul 16, 2026144 EDGAR
  14. Jul 14, 2026SCHEDULE 13G/A EDGAR
  15. Jun 16, 20264 EDGAR
  16. Jun 16, 20264 EDGAR
  17. Jun 16, 20264 EDGAR
  18. Jun 16, 20264 EDGAR
  19. Jun 16, 20264 EDGAR
  20. Jun 16, 20264 EDGAR

The 472 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

45 open-market trades by officers, directors and large owners since October 2021: 3 buys and 42 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Sep 15, 2026Johnson Samuel JPresidentSale70,303$51.79$3.6MForm 4
Sep 15, 2026MARLEY BRIAN TDirectorSale10,432$53.25$555.5KForm 4
Sep 14, 2026Johnson Samuel JPresidentSale25,580$53.95$1.4MForm 4
Jul 16, 2026Tweedy Jeffrey C.DirectorSale1,200$48.00$57.6KForm 4
Apr 16, 2026Tweedy Jeffrey C.DirectorSale4,000$60.00$240.0KForm 4
Dec 15, 2025MARLEY BRIAN TDirectorSale3,500$55.01$192.5KForm 4
Dec 12, 2025MARLEY BRIAN TDirectorSale17,071$55.31$944.2KForm 4
Jun 26, 2025Turner Christopher LeeDirectorSale4,400$44.48$195.7KForm 4
Sep 18, 2024Tweedy Jeffrey C.DirectorSale1,200$62.00$74.4KForm 4
Jul 16, 2024Tweedy Jeffrey C.DirectorSale625$54.25$33.9KForm 4
Apr 23, 2024Tweedy Jeffrey C.DirectorSale1,200$60.00$72.0KForm 4
Jan 2, 2024Tweedy Jeffrey C.DirectorSale1,065$64.81$69.0KForm 4
Nov 15, 2023Tweedy Jeffrey C.DirectorSale1,065$50.00$53.2KForm 4
Sep 28, 2023Tweedy Jeffrey C.DirectorSale700$46.66$32.7KForm 4
Sep 12, 2023Johnson Samuel JPresidentSale40,531$50.03$2.0MForm 4
Sep 12, 2023Tweedy Jeffrey C.DirectorSale300$49.44$14.8KForm 4
Sep 6, 2023Davis Heather A.SVP-Accounting Treasury TaxSale15,907$51.33$816.5KForm 4
Jun 16, 2023Tweedy Jeffrey C.DirectorSale1,065$49.23$52.4KForm 4
Jun 12, 2023Johnson Samuel JPresidentSale60,000$50.76$3.0MForm 4
Jun 9, 2023Mullican Michael P.PresidentSale65,794$50.34$3.3MForm 4

All 45 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2025Steve LawrenceCEO$1.1M$9.6M73
2025Sam JohnsonPresident$861.6K$4.8M73
2025Carl FordEVP, CFO$546.6K$2.1M73
2025Matt McCabeEVP, CMO$546.6K$2.1M73
2024Steve LawrenceCEO$1.0M$8.7M73
2024Sam JohnsonPresident$838.0K$4.6M73
2024Carl FordEVP, CFO$521.6K$2.2M73
2024Matt McCabeEVP, CMO$521.6K$2.2M73
2023Steve LawrenceCEO$949.1K$8.6M73
2023Sam JohnsonPresident$728.5K$3.9M73
2023Carl FordEVP, CFO$447.0K$1.8M73
2023Matt McCabeEVP, CMO$437.4K$1.7M73

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
BlackRock, Inc.9,933,075$468.1M0.0%+87,819
Fmr LLC9,288,389$437.8M0.0%−693,926
Dimensional Fund Advisors LP4,089,118$192.7M0.0%+59,856
Vanguard Portfolio Management LLC3,822,932$180.2M0.0%−9,670
Vanguard Capital Management LLC2,907,317$137.0M0.0%−85,595
State Street Corp2,728,331$129.0M0.0%+64,065
American Century Companies Inc2,379,185$112.1M0.0%−19,946
Geode Capital Management, LLC2,209,107$104.1M0.0%+114,268
Westwood Holdings Group Inc1,506,121$71.0M0.5%−96,877
King Luther Capital Management Corp1,434,773$67.6M0.3%−117,524
Canada Pension Plan Investment Board1,298,676$61.2M0.0%+1,148,276
Morgan Stanley1,289,751$60.8M0.0%+211,730
Royce & Associates LP1,084,620$51.1M0.4%+43,582
Allianz Asset Management GmbH961,232$45.3M0.0%+99,872
Hood River Capital Management LLC891,434$42.0M0.3%−15,753
Charles Schwab Investment Management Inc828,830$39.1M0.0%−7,834
UBS Group AG788,789$37.2M0.0%+160,365
Nomura Asset Management International Inc.760,800$35.9M0.1%−163,280
Stephens Investment Management Group LLC741,238$34.9M0.4%−263,667
Northern Trust Corp716,725$33.8M0.0%+27,879
Franklin Resources Inc598,032$28.2M0.0%+64,924
Bank of New York Mellon Corp588,627$27.7M0.0%+4,458
Maple Rock Capital Partners Inc.586,400$27.6M0.5%−253,600
Heartland Advisors Inc563,941$26.6M1.2%+234,591
Qube Research & Technologies Ltd556,839$26.2M0.0%New

13F reports cover disclosed long positions in U.S. stocks only.

SEC filer profile

How Academy Sports & Outdoors, Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARAcademy Sports & Outdoors, Inc.1
  • CIK0001817358
  • Employer ID (EIN)85-18009126
  • Filer statusLarge accelerated filer not an emerging growth company; not a smaller reporting company; not a shell company6
  • Incorporated inDelaware6
  • Fiscal year endsJanuary 311
  • Industry code (SIC)5940 Retail-Miscellaneous Shopping Goods Stores1
  • SEC reviewing officeOffice of Trade & Services, Division of Corporation Finance1
  • Business address1800 North Mason Road, Katy, TX 774491
  • Phone(281) 646-52001
  • Shares outstanding61,578,891 as of Sep 2, 202613
  • Public float$3.2B as of Aug 1, 20256
  • AuditorDeloitte & Touche LLP, Houston, Texas PCAOB ID 34; it also attests to the company’s internal control over financial reporting6
  • On EDGAR sinceJul 10, 20201
  • Filings644 in all: 4 (394), 8-K (71), 3 (33), 144 (27), 10-Q (18), CORRESP (12), SC 13G/A (11), UPLOAD (9)1
    All 29 form types

    DEFA14A (7), 10-K (6), DEF 14A (6), 424B4 (4), ARS (4), DRS (4), EFFECT (4), S-1 (4), SC 13G (4), SCHEDULE 13G (4), SD (4), S-8 (3), SCHEDULE 13G/A (3), 4/A (2), DRS/A (2), DRSLTR (2), S-1/A (2), 3/A (1), 8-A12B (1), CERT (1), PRE 14A (1)

  • Latest filingsAnnual report (10-K) Mar 17, 2026
    Quarterly report (10-Q) Sep 9, 2026
    Proxy statement (DEF 14A) Apr 21, 2026
    Latest 8-K (8-K) Sep 9, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, par value $0.01 per shareASOThe Nasdaq Stock Market LLC

From the cover page of the 10-K filed Mar 17, 2026 (Section 12(b) of the Exchange Act).6

Risk factors and legal proceedings

The risks Academy Sports & Outdoors, Inc. names in Item 1A of its 10-K filed Mar 17, 2026: 43 risks under these headings, as written.6

  • Risks Related to Our Business and Industry
  • Our results of operations are highly dependent on the U.S. economy and U.S. consumer discretionary spending and an economic and financial downturn may cause a decline in U.S. consumer discretionary spending and may adversely affect our business, operations, liquidity, capital resources and financial results.
  • A significant portion of the merchandise that we sell is manufactured in foreign countries which exposes us to various international risks, including additional tariffs, that could have a material adverse effect on our business and results of operations.
  • Problems with operating, updating or implementing our information systems could disrupt our operations and negatively impact our business operations and materially and adversely affect our financial results.
  • We use and expect to continue to use machine learning and other types of artificial intelligence in our business, and challenges with properly managing its use could adversely affect our business.
  • If we are not successful in managing our inventory balances, our sales may decline and our results of operations may be negatively affected.
  • If we are unable to predict or effectively react to changes in consumer tastes and preferences, or if we fail to obtain access to, and sell brand name merchandise at competitive prices, then we may lose customers and our sales may decline and our results of operations may be negatively affected.
  • Our e-commerce activities expose us to various risks that could have a material adverse impact on our overall results of operations.
  • Any failure to protect the integrity, confidentiality, and availability of our information systems (including our technology infrastructure and networks, third party services, and hosted and on-premises software) and data that we hold relating to us and our customers, team members, and partners (including vendors) could result in lost sales, fines, penalties, assessments, investigations, inquiries, and/or lawsuits, a loss of confidence in us, and harm to our reputation, business, results of operations, and financial condition.
  • Intense competition in the sporting goods and outdoor recreation retail industries could limit our growth and reduce our profitability.
  • A significant disruption to our distribution network or the timely receipt of inventory could adversely impact sales or increase our transportation costs, which would decrease our profits.
  • We may not be able to continue our store growth plans successfully or continue to manage our growth effectively, and our new stores may not generate sales levels necessary to achieve store-level sales or profitability comparable to that of our existing stores, which could materially and adversely affect our business, financial condition and results of operations.
The other 32 risks
  • Our success depends on the effectiveness of our marketing and advertising programs.
  • Our failure to attract, train and retain quality team members in sufficient numbers, increases in wage and labor costs, and changes in laws and other labor issues could adversely affect our business.
  • If we are unable to protect against inventory shrink, our results of operations and financial condition could be adversely affected.
  • We are subject to payment-related risks that could increase our operating costs, expose us to fraud or theft, subject us to potential liability and potentially disrupt our business.
  • The occurrence of severe weather events, catastrophic public health events, natural or man-made disasters, social and political conditions or civil unrest could significantly damage or destroy our retail locations, could prohibit consumers from traveling to our retail locations or could prevent us from resupplying or staffing our stores or distribution centers or fulfilling our e-commerce orders, especially during peak shopping seasons.
  • Our stores are located primarily in the southern United States which could subject us to regional risks.
  • Fluctuations in merchandise costs, increases in commodity prices and other factors could negatively impact our consolidated and combined results of operations.
  • A disruption in the operation of our distribution centers would affect our ability to deliver merchandise to either our stores or customers, which could adversely impact our revenues and harm our business and financial results.
  • We depend on key personnel in order to support our existing business and future initiatives and may not be able to retain or replace these team members, recruit additional qualified personnel or effectively manage succession.
  • We depend on approximately 1,500 suppliers to supply us with the merchandise we purchase for resale and our significant dependence on these suppliers exposes us to risks associated with disruption in supply and losses of merchandise purchasing incentives that could have a material adverse effect on our business and results of operations.
  • Our private label brand merchandise exposes us to various risks generally encountered by companies that source, manufacture, market and retail exclusive private label brand merchandise.
  • A failure of our third-party vendors of outsourced business services and solutions to meet our performance standards and expectations could adversely affect our operations.
  • Harm to our reputation could adversely impact our ability to attract and retain customers, team members, vendors and/or other partners.
  • Our quarterly operating results and comparable sales may fluctuate due to seasonality and other factors outside of our control.
  • We may pursue strategic acquisitions, which could have an adverse impact on our business, as could assimilation of companies following acquisition.
  • Legal and Regulatory Risks
  • We are subject to costs and risks associated with laws and regulations affecting our business, including those relating to the sale, manufacture and import of consumer products and other matters, and the substance or enforcement of such laws may change or become more stringent.
  • We are, and may in the future, be subject to claims, demands and lawsuits.
  • Our insurance or indemnities may not be sufficient to cover damages related to claims and lawsuits.
  • Our sales and operating results could be adversely affected by product safety concerns.
  • Our failure to protect our intellectual property or avoid the infringement of third-party intellectual property rights could be costly and have a negative impact on our results of operations.
  • Risks Related to Our Indebtedness
  • Our level of indebtedness requires that we dedicate a portion of our cash flows to debt service payments and reduces the funds that would otherwise be available for other general corporate purposes and other business opportunities, which could adversely affect our operating performance, growth, profitability and financial condition, which in turn could make it more difficult for us to generate cash flow sufficient to satisfy all of our obligations under our indebtedness.
  • Despite our level of indebtedness, we may still be able to incur substantially more debt, which could further increase the risks to our financial condition described above.
  • If we are unable to generate sufficient cash to service all of our indebtedness, we may be forced to take other actions to fund the satisfaction of our obligations under our indebtedness, which may not be successful.
  • The terms of our outstanding indebtedness may restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
  • Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
  • If the financial institutions that are lenders under the ABL Facility fail to extend credit under the facility or reduce the borrowing base, our liquidity and results of operations may be adversely affected.
  • Our level of indebtedness may hinder our ability to negotiate favorable terms with our landlords, vendors and suppliers, which could negatively impact our operating performance and, thus, could make it more difficult for us to generate cash flow sufficient to satisfy all of our obligations under our indebtedness.
  • Risks Related to the Ownership of Our Common Stock
  • Our stock price may be highly volatile or may decline regardless of our operating performance, and you may not be able to resell shares of our common stock at or above the price you paid or at all, and you could lose all or part of your investment as a result.
  • We cannot provide any guaranty of future dividend payments or that we will repurchase our common stock pursuant to our share repurchase program, and our indebtedness could limit our ability to pay future dividends on our common stock.
  • Anti-takeover provisions in our organizational documents could delay or prevent a change of control.
  • Our restated certificate of incorporation provides, subject to limited exceptions, that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders and the federal district courts will be the exclusive forum for Securities Act claims, which could limit our stockholders’ ability to bring a suit in a different judicial forum than they may otherwise choose for disputes with us or our directors, officers, team members or stockholders.
  • You may be diluted by the future issuance of additional common stock in connection with our incentive plans, acquisitions or otherwise.

Legal proceedings

The information set forth in Note 12 — Commitments and Contingencies to our consolidated financial statements included under Part IV, Item 15 of this Annual Report is incorporated herein by reference.

The opening of Item 3, Legal Proceedings.6

Sources

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