What DICK'S Sporting Goods, Inc. told the SEC could break it.

DICK'S product costs depend on raw-material and component availability; recently enacted and potential future tariffs on key sourcing countries (China, Mexico, Canada), trade tensions, currency moves and supply-chain disruptions could raise costs for both its private-brand merchandise (~13% of DICK'S Business sales) and vendor-purchased products.

“Significant increases in those costs—whether due to trade tensions, shifting tariff policies in key sourcing countries like China, Mexico, and Canada (including recently enacted tariffs and potential additional shifts in tariff policies in the future), currency fluctuations, material shortages, supply chain disruptions, or other factors—could increase manufacturing and other costs for both our own private brand merchandise and the products we purchase from our vendors.”

Through the acquired Foot Locker Business, DICK'S now has foreign operations across Canada, Europe, Asia and Australia — concentrated in Europe (15 countries, 11 on the euro) — with $669.0M of net assets in international subsidiaries exposed to foreign-currency translation swings.

“Our Foot Locker Business has foreign operations across Canada, Europe, Asia and Australia, with a higher concentration in Europe, where operations are currently located in 15 countries, 11 of which have adopted the euro as their functional currency.”

A meaningful portion of DICK'S stores — particularly the acquired Foot Locker Business — sit in shopping centers and malls, making performance sensitive to mall traffic, anchor-tenant closures, vacancies and the secular shift to online shopping.

“Because a meaningful portion of our stores, particularly within our Foot Locker Business, are located in shopping centers or malls, our performance is influenced by the volume of mall traffic and the sustained success and relevance of those locations.”