Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Avg
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New words:
advice, aim, Cartago, expertise, extra, FECI, January, Jose, leap, leasehold, lempira, mentioned, metropolitan, move, Overnight, removal, resolution, rose, save, surcharge, upheld
Removed:
audit, Colpatria, consultation, disagree, discontinued, elimination, Escuintla, interpret, originating, point, Scotiabank, shift, sustained, west
Financial report summary
?Risks
- Our profitability is vulnerable to cost increases.
- Our financial performance is dependent on international operations, which exposes us to various risks.
- We face significant competition.
- Our sales could be adversely affected if one or more major international online retailers were to enter our markets or if other competitors were to offer a superior online experience.
- We are exposed to significant weather events and other natural disaster risks that might not be adequately compensated by insurance, and we are susceptible to the long-term impacts of climate change.
- We face difficulties in the shipment of, and risks inherent in the importation of, merchandise to our warehouse clubs.
- We might not identify in a timely manner or effectively respond to changes in consumer preferences for merchandise, which could adversely affect our relationship with Members, demand for our products and market share.
- Failure to grow our e-commerce business through the integration of physical and digital retail channels and the investments we are making to develop a robust e-commerce platform could materially adversely affect our market position, net sales and/or financial performance.
- Our failure to maintain our brand and reputation could adversely affect our results of operations.
- We face the risk of exposure to product liability claims, a product recall and adverse publicity.
- Any failure by us to maintain the security of the information that we hold relating to our Company, Members, employees and vendors, could damage our reputation with them, could disrupt our operations, could cause us to incur substantial additional costs and to become subject to litigation and could materially adversely affect our operating results.
- Failure to attract and retain qualified employees could materially adversely affect our financial performance.
- We face compliance risks related to our international operations.
- A few of our stockholders own approximately 15.9% of our voting stock as of August 31, 2023, which may make it difficult to complete some corporate transactions without their support and may impede a change in control.
- We are subject to volatility in foreign currency exchange rates and limits on our ability to convert foreign currencies into U.S. dollars.
Management Discussion
- (1) See “Item 2. Management’s Discussion & Analysis – Non - GAAP Financial Measures” for the definition of Adjusted EBITDA and a reconciliation to GAAP net income as reported.
- (1)The reconciling items reflect the amount eliminated upon consolidation of intersegment transactions.
- (1) See “Item 2. Management’s Discussion & Analysis – Non - GAAP Financial Measures” for the definition of Adjusted EBITDA and a reconciliation to GAAP net income as reported.