Concentration of Credit Risk and Significant Customers and Suppliers |
12 Months Ended |
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Sep. 29, 2018 | |
| Risks and Uncertainties [Abstract] | |
| Concentration of Credit Risk and Significant Customers and Suppliers |
Concentration of Credit Risk and Significant Customers and Suppliers
Customer Concentration – Approximately 48% of the Company’s net sales for fiscal 2018, 44% for fiscal 2017 and 42% for fiscal 2016 were derived from sales to the Company’s top five customers. The Company’s largest customer accounted for approximately 16%, 16% and 15% of the Company’s net sales in fiscal years 2018, 2017 and 2016, respectively. The Company’s second largest customer in 2018 accounted for approximately 11% of the Company’s net sales in fiscal year 2018, and 8% of the Company's net sales in the fiscal years 2017 and 2016, respectively. The Company’s third largest customer in 2018 accounted for approximately 8%, of the Company’s net sales in the fiscal years 2018, 2017 and 2016, 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 29, 2018 and September 30, 2017, accounts receivable from the Company’s top five customers comprised approximately 46% and 44% of the Company’s total accounts receivable, including 14% and 10% from the Company’s largest customer.
Supplier Concentration – While the Company purchases products from many different manufacturers and suppliers, approximately 8%, 9% and 9% of the Company’s cost of goods sold in fiscal years 2018, 2017 and 2016, respectively, were derived from products purchased from the Company’s five largest suppliers.
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