American Eagle Outfitters (AEO) risk factors, FY2025 10-K

Macroeconomic and Industry Risks

1. 01Global economic conditions and the effect of economic pressures and other business factors on discretionary consumer spending and changes in consumer preferences have had, and could continue to have, a material adverse effect on our business, results of operations and financial condition
2. 02We may be unable to access financing in the credit and capital markets at reasonable rates
3. 03Our inability to anticipate and respond to changing consumer preferences and fashion trends and fluctuations in consumer demand in a timely manner could adversely impact our business and results of operations
4. 04Seasonality may cause sales to fluctuate and negatively impact our results of operations
5. 05timing of new store openings, the acceptability of seasonal merchandise offerings, the timing and level of markdowns, store closings and remodels, competitive factors, weather, and general economic and political conditions
6. 06We operate in a highly competitive industry, and we face significant pricing pressures from existing and new competitors
7. 07Countering the aggressive pricing and promotional activities of many of our competitors; and
8. 08Safely evaluating and incorporating new technologies, such as artificial intelligence ("AI"), machine learning, and other relevant innovation
9. 09Our results could be adversely affected by events beyond our control, such as natural disasters, public health crises, political crises and results of elections, negative global climate patterns, or other catastrophic events
10. 10Impairment to goodwill, intangible assets, and other long-lived assets could adversely impact our profitability

Strategic Risks

1. 11Our inability to grow and optimize our digital channels and leverage omni-channel capabilities could adversely impact our business
2. 12Our failure to manage growth in our omni-channel operations and the resulting impact on our distribution and fulfillment networks may have an adverse effect on our results of operations
3. 13Failure to define, launch and communicate a brand-relevant customer experience could have a negative impact on our growth and profitability
4. 14Our inability to execute on our key business priorities could have a negative impact on our growth and profitability
5. 15Our current international operations and efforts to further expand internationally expose us to risks inherent in operating in other countries

Operational Risks

1. 16Our failure to protect our reputation could have a material adverse effect on our brands
2. 17Our inability to implement and sustain adequate information technology systems could adversely impact our profitability and the loss of disruption of information technology systems could have a material adverse effect on our business
3. 18conduct business, as well as reputational harm, and we may be subject to governmental investigations and litigation, any of which may adversely impact our business, results of operations, and financial condition
4. 19Our international merchandise sourcing strategy subjects us to risks that could adversely impact our business and results of operations
5. 20Our product costs may be adversely affected by foreign trade issues, including import tariffs and other trade restrictions with China, increasing prices for raw materials, political instability, or other reasons, which could impact our profitability
6. 21Our suppliers may be impacted by economic conditions and cycles and changing laws and regulatory requirements that could impact their ability to do business with us or cause us to terminate our relationship with them and require us to find replacements, which we may have difficulty doing
7. 22Our inability to achieve planned store performance, gain market share in the face of declining shopping center traffic or attract customers to our stores could adversely impact our profitability and our results of operations
8. 23Failure to properly manage and allocate our inventory could have an adverse effect on our business, sales, margins, financial condition, and results of operations
9. 24We have significant lease obligations and are subject to risks associated with leasing substantial amounts of space, including future increases in occupancy costs and the need to generate significant cash flow to meet our lease obligations
10. 25We rely on key personnel, the loss of whom could have a material adverse effect on our business
11. 26personnel, and we cannot be assured we will be able to attract, retain, and develop a sufficient number of qualified senior managers and other key personnel
12. 27Increases in labor costs, including wages, could adversely impact our operational results, financial condition and results of operations
13. 28We cannot provide assurance that we will pay dividends, or if paid, that dividend payments will be consistent with historical levels

Legal, Tax, and Regulatory Risks

1. 29We are subject to stringent and changing laws, regulations, and standards, related to data privacy, protection, and security. Our failure to comply with privacy laws and regulations could have a material adverse effect on our business
2. 30We may be unable to protect our trademarks and other intellectual property rights
3. 31The legal and regulatory environment could adversely affect our financial condition and results of operations
4. 32Fluctuations in our tax obligations and effective tax rate could adversely affect us
5. 33The unfavorable outcome of pending or future litigation could have an adverse impact on our business, financial condition, and results of operations