Annual report pursuant to Section 13 and 15(d)

Concentration of Credit Risk and Significant Customers and Suppliers

v3.22.2.2
Concentration of Credit Risk and Significant Customers and Suppliers
 12 Months Ended
Sep. 24, 2022
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk and Significant Customers and Suppliers Concentration of Credit Risk and Significant Customers and SuppliersCustomer Concentration – Approximately 51% of the Company’s net sales for fiscal 2022, 51% for fiscal 2021 and 52% for fiscal 2020 were derived from sales to the Company’s top five customers. The Company’s largest customer accounted for approximately 17% of the Company’s net sales in fiscal 2022, 16% in 2021 and 17% in 2020. The Company’s second largest customer in 2022 accounted for approximately 16% of the Company’s net sales in fiscal 2022, 15% of the Company's net sales in fiscal 2021 and 13% in fiscal 2020. The Company’s third largest customer in 2022 accounted for approximately 8% of the Company’s net sales in fiscal 2022, 9% in fiscal 2021 and 10% in fiscal 2020, respectively. The loss of, or significant adverse change in, the relationship between the Company and any of these three customers could have a material adverse effect on the Company’s business and financial results. The loss of or reduction in orders from any significant customer, losses arising from customer disputes regarding shipments, fees, merchandise condition or related matters, or the Company’s inability to collect accounts receivable from any major customer could also have a material adverse impact on the Company’s business and financial results. As of September 24, 2022 and September 25, 2021, accounts receivable from the Company’s top five customers comprised approximately 51% and 50%, respectively, of the Company’s total accounts receivable, including 13% and 17% from the Company’s largest customer. Supplier Concentration – While the Company purchases products from many different manufacturers and suppliers, approximately 7%, 8% and 7% of the Company’s cost of goods sold in fiscal years 2022, 2021 and 2020, respectively, were derived from products purchased from the Company’s five largest suppliers.