49 unchanged sentences
Although we believe that our operations are efficient, disruptions due to fires, tornadoes, hurricanes, earthquakes, pandemics or other extreme weather conditions or catastrophic events, labor issues or other shipping problems may result in delays in the production and delivery of merchandise to our warehouses, which could adversely affect sales and the satisfaction of our members.
−Removed: Our e-commerce business depends heavily on third-party and in-house logistics providers and that business is negatively affected when these providers are unable to provide services in a timely fashion.
+Added: Our e-commerce operations depend heavily on third-party and in-house logistics providers and is negatively affected when these providers are unable to provide services in a timely fashion.
We may not timely identify or effectively respond to consumer trends, which could negatively affect our relationship with our members, the demand for our products and services, and our market share.
22 unchanged sentences
Operating these IT systems and networks, and processing and maintaining this data, in a secure manner, is critical to our business operations and strategy.
−Removed: Increased remote work due to the COVID-19 pandemic has also increased the possible attack surfaces.
+Added: Increased remote work has also increased the possible attack surfaces.
Threats designed to gain unauthorized access to systems, networks and data, both ours and third parties with whom we work, are increasing in frequency and sophistication.
9 unchanged sentences
In addition, data we collect, store and process is subject to a variety of U.S.
−Removed: and international laws and regulations, such as the European Union's General Data Protection Regulation, California Consumer Privacy Act, Health Insurance Portability and Accountability Act, and other emerging privacy and cybersecurity laws across the various states and around the globe, which may carry significant potential penalties for noncompliance.
+Added: and international laws and regulations, such as the European Union's General Data Protection Regulation, California Consumer Privacy Act, Health Insurance Portability and Accountability Act, and other privacy and cybersecurity laws across the various states and around the globe, which may carry significant potential penalties for noncompliance.
We are subject to payment-related risks.
4 unchanged sentences
It could disrupt our business if these parties become unwilling or unable to provide these services to us.
−Removed: We are also subject to evolving payment card association and network operating rules, including data security rules, certification requirements and rules governing electronic funds transfers.
+Added: We are also subject to fee increases by these service providers.
+Added: We must comply with evolving payment card association and network operating rules, including data security rules, certification requirements and rules governing electronic funds transfers.
For example, we are subject to Payment Card Industry Data Security Standards, which contain compliance guidelines and standards with regard to our security surrounding the physical and electronic storage, processing and transmission of individual cardholder data.
9 unchanged sentences
Omnichannel retailing is rapidly evolving, and we must keep pace with changing member expectations and new developments by our competitors.
−Removed: Our members are increasingly using mobile phones, tablets, computers, and other devices to shop and to interact with us through social media, particularly in the wake of COVID-19.
+Added: Our members are increasingly using mobile phones, tablets, computers, and other devices to shop and to interact with us through social media.
We are making investments in our websites and mobile applications.
4 unchanged sentences
We must attract, train and retain a large and growing number of qualified employees, while controlling related labor costs and maintaining our core values.
−Removed: Our ability to control labor and benefit costs is subject to numerous internal and external factors, including the continuing impacts of the pandemic, regulatory changes, prevailing wage rates, and healthcare and other insurance costs.
+Added: Our ability to control labor and benefit costs is subject to numerous internal and external factors, including the continuing impacts of the pandemic, regulatory changes, prevailing wage rates, union relations and healthcare and other insurance costs.
We compete with other retail and non-retail businesses for these employees and invest significant resources in training and motivating them.
18 unchanged sentences
and tax policies including changes in tax rates, duties, tariffs, or other restrictions, sovereign debt crises, pandemics and other health crises, and other economic factors could adversely affect demand for our products and services, require a change in product mix, or impact the cost of or ability to purchase inventory.
−Removed: Additionally, actions in various countries, particularly China, the United States and the United Kingdom, have raised the cost of many items and created uncertainty with respect to tariff impacts on the costs of some of our merchandise.
+Added: Additionally, actions in various countries, particularly China and the United States, have affected the costs of some of our merchandise.
The degree of our exposure is dependent on (among other things) the type of goods, rates imposed, and timing of the tariffs.
The impact to our net sales and gross margin is influenced in part by our merchandising and pricing strategies in response to potential cost increases.
−Removed: While these potential impacts are uncertain, they could have an adverse impact on our results.
+Added: Higher tariffs could adversely impact our results.
Prices of certain commodities, including gasoline and consumable goods used in manufacturing and our warehouse retail operations, are historically volatile and are subject to fluctuations arising from changes in domestic and international supply and demand, inflationary pressures, labor costs, competition, market speculation, government regulations, taxes and periodic delays in delivery.
1 unchanged sentence
These factors could also increase our merchandise costs and selling, general and administrative expenses, and otherwise adversely affect our operations and financial results.
−Removed: General economic conditions can also be affected by events like the outbreak of war or acts of terrorism.
+Added: General economic conditions can also be affected by events like the outbreak of hostilities, including but not limited to the Ukraine conflict, or acts of terrorism.
Inflationary factors such as increases in merchandise costs may adversely affect our business, financial condition and results of operations.
24 unchanged sentences
Natural disasters, extreme weather conditions, public health emergencies or other catastrophic events could negatively affect our business, financial condition, and results of operations.
−Removed: Natural disasters and extreme weather conditions, such as hurricanes, typhoons, floods, earthquakes, wildfires, droughts;
+Added: Natural disasters and extreme weather conditions, including those impacted by climate change, such as hurricanes, typhoons, floods, earthquakes, wildfires, droughts;
acts of terrorism or violence, including active shooter situations;
8 unchanged sentences
The continuing impacts of the COVID-19 pandemic are highly unpredictable and volatile and are affecting certain business operations, demand for our products and services, in-stock positions, costs of doing business, availability of labor, access to inventory, supply chain operations, our ability to predict future performance, exposure to litigation, and our financial performance, among other things.
−Removed: The pandemic has resulted in widespread and continuing impacts on the global economy and on our employees, members, suppliers and other people and entities with which we do business.
−Removed: There is considerable uncertainty regarding the extent to which COVID-19 will continue to spread and the extent and duration of measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place orders, and business and government shutdowns.
−Removed: The pandemic and any preventative or protective actions that governments or we may take may result in business disruption, reduced member traffic and reduced sales in certain merchandise categories, and increased operating expenses.
−Removed: The pandemic is continuing to impact the global supply chain, with restrictions and limitations on business activities causing disruption and delay, which have strained certain domestic and international supply chains, and could continue to negatively affect the flow or availability of certain products.
−Removed: Member demand for certain products has and may continue to fluctuate as the pandemic progresses and member
−Removed: behaviors change, which may challenge our ability to anticipate and/or adjust inventory levels to meet that demand.
−Removed: Similarly, increased demand for online purchases of products has impacted our fulfillment operations, resulting in delays in deliveries and lost sales from being out of stock for certain SKUs.
−Removed: Failure to appropriately respond, or the perception of an inadequate response to evolving events around the pandemic, could cause reputational harm to our brand and subject us to lost sales, as well as claims from employees, members, suppliers, regulators or other parties.
−Removed: Additionally, a future outbreak of confirmed cases of COVID-19 in our facilities could result in temporary or sustained workforce shortages or facility closures, which would negatively impact our business and results of operations.
−Removed: Some jurisdictions have taken measures intended to expand the availability of workers compensation or to change the presumptions applicable to workers compensation measures.
−Removed: These actions may increase our exposure to claims and increase our costs.
Other factors and uncertainties include, but are not limited to:
11 unchanged sentences
Government regulations limiting carbon dioxide and other greenhouse gas emissions may increase compliance and merchandise costs, and other regulation affecting energy inputs could materially affect our profitability.
+Added: As the economy transitions to lower carbon intensity we cannot guarantee that we will make adequate investments or successfully implement strategies that will effectively achieve our climate-related goals, which could lead to negative perceptions among members and other stakeholders and result in reputational harm.
Climate change, extreme weather conditions, wildfires, droughts and rising sea levels could affect our ability to procure commodities at costs and in quantities we currently experience.
−Removed: We also sell a substantial amount of gasoline, the demand for which could be impacted by concerns about climate change and which face increased regulation.
+Added: We also sell a substantial amount of gasoline, the demand for which could be impacted by concerns about climate change and increased regulations.
+Added: More stringent fuel economy standards and public policies aimed at increasing the adoption of zero-emission and alternative fuel vehicles and other regulations related to climate change will affect our future operations and may adversely impact our profitability, and require significant capital expenditures.
Failure to meet financial market expectations could adversely affect the market price and volatility of our stock.
5 unchanged sentences
Future operating results internationally could be negatively affected by a variety of factors, many similar to those we face in the U.S., certain of which are beyond our control.
−Removed: These factors include political and economic conditions, regulatory constraints, currency regulations, policy changes such as the withdrawal of the U.K.
+Added: These factors include political and economic conditions, regulatory constraints, currency regulations,
+Added: policy changes such as the withdrawal of the U.K.
from the European Union, and other matters in any of the countries or regions in which we operate, now or in the future.
31 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.