Abercrombie & Fitch (ANF) risk factors, FY2025 10-K

Other

1. 01Failure to engage our customers, anticipate customer demand and changing fashion trends, and manage our inventory commensurately could have a material adverse impact on our business
2. 02Our failure to operate effectively in a highly competitive and constantly evolving industry could have a material adverse impact on our business
3. 03Changes in global economic and financial conditions, including the impact on consumer confidence and spending, could have a material adverse impact on our business
4. 04The impact of war, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience could have a material adverse impact on our business
5. 05Fluctuations in foreign currency exchange rates and our ability to mitigate the effects of such volatility could have a material adverse impact on our business
6. 06Our ability to attract customers to our stores depends, in part, on the success of the shopping malls or area attractions that our stores are located in or around
7. 07The impact of natural disasters, negative climate patterns, public health crises, political crises and other unexpected and catastrophic events could result in interruptions to our operations, as well as to the operations of our third-party partners, and have a material adverse impact on our business
8. 08Changes to our long-term business strategy or a failure to successfully execute on our long-term strategic plans could adversely impact our financial condition and reputation
9. 09Our failure to attract, retain, and effectively manage strategic partnerships with third parties could have a material adverse impact on our business
10. 10Our failure to evaluate and manage our global store network could have a material adverse impact on our business
11. 11Our failure to realize the anticipated benefits of our recent transition to a regional-based organizational model could have a negative impact on our business
12. 12We operate on a global basis and are subject to risks associated with operating in different global markets that could have a material adverse effect on our reputation, business and results of operations if we fail to address them
13. 13There is increased focus from certain government regulators, investors, customers, associates, business partners and other stakeholders concerning ESG matters
14. 14Our ability to maintain our reputation is critical and public perception about our products or operations, whether justified or not, could impair our reputation, involve us in litigation, damage our brands and have a material adverse impact on our business
15. 15Failure to continue to successfully manage the complexities of our omnichannel operations and of our customers’ omnichannel shopping experience, or failure to continue to successfully invest in customer, digital and omnichannel initiatives could have a material adverse impact on our business
16. 16If our information technology systems are disrupted or cease to operate effectively, it could have a material adverse impact on our business
17. 17We may be exposed to risks and costs associated with cyber-attacks, data protection, credit card fraud and identity theft that could have a material adverse impact on our business
18. 18Changes in the cost, availability and quality of raw materials, transportation and labor, including changes due to trade relations could have a material adverse impact on our business
19. 19Changes in tax or tariff policy regarding merchandise produced in, and raw materials sourced from, certain countries could adversely affect our business
20. 20In addition, other countries may change their business and trade policies in anticipation of or in response to the U.S.’s increased import tariffs and other changes in U.S. trade policy and regulations already enacted or that may be enacted in the future
21. 21We depend upon independent third parties for the manufacture and delivery of our merchandise, and a disruption of the manufacture or delivery of our merchandise could have a material adverse impact on our business
22. 22Our reliance on our distribution centers makes us susceptible to disruptions or adverse conditions affecting our supply chain
23. 23We rely on the experience and skills of our executive officers and associates, and the failure to attract or retain this talent, effectively manage succession, and establish a workforce that can best serve the communities in which we operate could have a material adverse impact on our business
24. 24If we identify a material weakness in our internal control over financial reporting, fail to remediate a material weakness, or fail to establish and maintain effective internal control over financial reporting, our ability to accurately and timely report our financial results could be adversely affected
25. 25Misconduct or illegal activities by our current and former associates, directors, advisers, third-party service providers or business partners, or others affiliated, or perceived to be affiliated, with the Company could subject to us to reputational harm, regulatory scrutiny or inquiries, or legal liability
26. 26Fluctuations in our tax obligations and effective tax rate may result in volatility in our results of operations could have a material adverse impact on our business
27. 27Litigation and any future stockholder activism could have a material adverse impact on our business
28. 28Changes in the regulatory or compliance landscape could have a material adverse impact on our business
29. 29The agreements related to A&F Management’s senior secured asset-based revolving credit facility includes restrictive covenants that limit our flexibility in operating our business and our inability to obtain additional credit on reasonable terms in the future could have an adverse impact on our business