Abercrombie & Fitch (ANF) risk factors, FY2026 10-K

Abercrombie & Fitch's FY2026 10-K, filed Mar 26, 2026, lists 25 risk factors. Against the prior year's 29: 3 new, 7 dropped, 11 substantially reworded.

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Risk factors listed
250 groups
New this year
3vs 29 last year
Dropped
7since the prior 10-K
Substantially reworded
11of those kept
Section length
12k wordsItem 1A

What the changes say

  • Abercrombie & Fitch added specific risks regarding artificial intelligence deployment and refined existing international and tariff exposures.

What changed since the prior 10-K

New

  • New

    Our inability to effectively conduct business in international markets, including as a result of operational, legal, tax, regulatory, political, and economic risks could have a material adverse impact on our business

    Operating internationally exposes the business to diverse labor, legal, real estate, and political challenges across regions including Shanghai and London.

  • New

    If our information technology systems are disrupted or fail to operate effectively, or if we are unable to successfully implement new technology, including significant system upgrades, our business and results of operations could be adversely affected

    Disruptions or failures in information technology systems or websites, amplified by AI threat actors, could impair customer transactions and operations.

  • New

    Use of artificial intelligence technologies by us and our service providers could subject us to operational, technological, and business risks that could adversely affect our business

    Using artificial intelligence tools risks operational errors, intellectual property infringement, data quality issues, and unintended outcomes.

Dropped

  • Dropped

    The impact of war, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience could have a material adverse impact on our business

  • Dropped

    The 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

  • Dropped

    We 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

  • Dropped

    There is increased focus from certain government regulators, investors, customers, associates, business partners and other stakeholders concerning ESG matters

    Impact of war, terrorism, and social unrest on commerce.

  • Dropped

    If our information technology systems are disrupted or cease to operate effectively, it could have a material adverse impact on our business

  • Dropped

    In 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

  • Dropped

    If 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

    Impact of natural disasters, extreme weather, and public health crises.

Reworded

  • 91% rewritten

    Changes in tariff policy regarding merchandise produced in, and raw materials sourced from, certain countries have and could continue to adversely affect our business

    Updated to reference 2025 inventory sourcing and specifically mention recent tariff impositions creating an unpredictable trade landscape.

    Was: Changes in tax or tariff policy regarding merchandise produced in, and raw materials sourced from, certain countries could adversely affect our business

  • 77% rewritten

    Our 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

    Added the inability to control the loss of an anchor tenant in shopping malls and referenced international malls.

  • 46% rewritten

    Our failure to operate effectively in a highly competitive and constantly evolving industry could have a material adverse impact on our business

    Added fast-fashion, value-fashion, and off-price retailers as competitive pressures shifting customer pricing expectations alongside social commerce.

  • 46% rewritten

    Our 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

    Minor punctuation and formatting adjustments made to the bulleted list of reputational risks.

  • 36% rewritten

    Fluctuations 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

    Retained substantially the same language regarding tax obligations and audit variability.

  • 36% rewritten

    Changes in global economic and financial conditions, including the impact on consumer confidence and spending, could have a material adverse impact on our business

    Streamlined description of macroeconomic sensitivity, noting reliance on discretionary spending and international sourcing costs.

  • 36% rewritten

    We 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

    Minor punctuation adjustments made regarding executive officer and associate talent retention.

  • 34% rewritten

    Our failure to realize the anticipated benefits of our transition to a regional-based organizational model could have a negative impact on our business

    Updated fiscal year reference to 2023 and added emphasis on structural effectiveness for the regional organizational model.

    Was: Our failure to realize the anticipated benefits of our recent transition to a regional-based organizational model could have a negative impact on our business

  • 30% rewritten

    Our failure to attract, retain, and effectively manage strategic partnerships with third parties could have a material adverse impact on our business

  • 26% rewritten

    We 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% rewritten

    Changes 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

All 25 risk factors

Headings as the filing states them, in filing order.

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 business46% rewritten
  3. 03Changes in global economic and financial conditions, including the impact on consumer confidence and spending, could have a material adverse impact on our business36% rewritten
  4. 04Fluctuations in foreign currency exchange rates and our ability to mitigate the effects of such volatility could have a material adverse impact on our business
  5. 05Our 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 around77% rewritten
  6. 06Changes 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 reputation22% rewritten
  7. 07Our failure to attract, retain, and effectively manage strategic partnerships with third parties could have a material adverse impact on our business30% rewritten
  8. 08Our failure to evaluate and manage our global store network could have a material adverse impact on our business
  9. 09Our inability to effectively conduct business in international markets, including as a result of operational, legal, tax, regulatory, political, and economic risks could have a material adverse impact on our businessNew
  10. 10Our failure to realize the anticipated benefits of our transition to a regional-based organizational model could have a negative impact on our business34% rewritten
  11. 11Our 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 business46% rewritten
  12. 12Failure 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
  13. 13If our information technology systems are disrupted or fail to operate effectively, or if we are unable to successfully implement new technology, including significant system upgrades, our business and results of operations could be adversely affectedNew
  14. 14We 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
  15. 15Use of artificial intelligence technologies by us and our service providers could subject us to operational, technological, and business risks that could adversely affect our businessNew
  16. 16Changes 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
  17. 17We 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 business26% rewritten
  18. 18Changes in tariff policy regarding merchandise produced in, and raw materials sourced from, certain countries have and could continue to adversely affect our business91% rewritten
  19. 19Our reliance on our distribution centers makes us susceptible to disruptions or adverse conditions affecting our supply chain
  20. 20We 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 business36% rewritten
  21. 21Misconduct 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
  22. 22Fluctuations 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 business36% rewritten
  23. 23Litigation and any future stockholder activism could have a material adverse impact on our business
  24. 24Changes in the regulatory or compliance landscape could have a material adverse impact on our business
  25. 25The 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

Other Abercrombie & Fitch 10-Ks

  • FY2025 10-K risk factors
    29 risks

    Abercrombie & Fitch relies heavily on anticipating volatile apparel fashion trends across global mall and omnichannel networks. Supply chain reliance on vendors primarily in southeast Asia creates significant inventory and logistics exposure. Global operations face macroeconomic, foreign currency, and trade policy shifts including import tariffs.

    Filed Mar 31, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.