The company faces risks from general economic conditions (unemployment, inflation, deflation), financial institution disruptions, geopolitical conflicts, oil price volatility, cost increases, natural disasters, public health emergencies, compliance with debt covenants, successful integration of acquisitions, slowing demand, supplier arrangements, changes in legislation, volatile exchange rates, employee retention, uncertain credit markets, competitive pressures, disclosure control failures, litigation, and information system disruptions. Guarantees for independent store borrowings also pose a risk.
Financial Upside
Acquisitions of businesses are expected to contribute to revenue growth and improved gross margin. The company is investing in technology to improve pricing data and analytics, and has a strong cash position and solid financial strength to pursue strategic growth opportunities. The company has a history of dividend increases and plans to reinvest in businesses through capital expenditures and acquisitions.
