Genesco (GCO) risk factors, FY2025 10-K

Other

1. 01Competitive, Demand-Related and Reputational Risks
2. 02Consumer spending is affected by poor and/or volatile economic conditions and other factors and may significantly harm our business, affecting our financial condition, liquidity, and results of operations
3. 03consumer confidence in future economic conditions
4. 04A failure to increase sales at our existing stores, given our high fixed expense cost structure, and in our e-commerce businesses or an inability to reduce costs may adversely affect our results of operations which may adversely impact our stock price
5. 05other external events beyond our control
6. 06Failure to protect our reputation could have a material adverse effect on our brand names
7. 07Our business involves a degree of risk related to fashion and other extrinsic demand drivers that are beyond our control
8. 08Our future success also depends on our ability to respond to changing consumer preferences, identify and interpret consumer trends, and successfully market new products
9. 09Our failure to appropriately address emerging sustainability matters could have a material adverse impact on our reputation and, as a result, our business
10. 10Our results may be adversely affected by declines in consumer traffic in malls
11. 11Our results of operations are subject to seasonal and quarterly fluctuations
12. 12Changes in the retail industry could have a material adverse effect on our business or financial condition
13. 13Our business is intensely competitive and increased or new competition could have a material adverse effect on us
14. 14If our online e-commerce sites, or those of our customers, do not function effectively or meet the expectations or preferences of our customers, our business and financial results could be materially adversely affected
15. 15We face a number of risks in opening new stores and renewing leases on existing stores
16. 16unforeseen events could prevent or delay store openings and impact our liquidity needed for store openings
17. 17Any acquisitions we make or new businesses we launch, as well as any dispositions of assets or businesses, involve a degree of risk
18. 18Goodwill recorded with acquisitions is subject to impairment which could reduce the Company's profitability

Technology, Data Security and Privacy Risks

1. 19The operation of our business is heavily dependent on our information systems
2. 20Despite our preventative efforts, our IT systems and websites may from time to time be vulnerable to damage or interruption from events such as difficulties in replacing or integrating the systems of acquired businesses, computer viruses, security breaches and power outages
3. 21We are subject to payment-related risks that could increase our operating costs, expose us to fraud or theft, subject us to potential liability and potentially disrupt our business
4. 22A privacy breach, through a cybersecurity incident or otherwise, or failure to comply with privacy laws could materially adversely affect our business
5. 23governmental penalties, fines and/or enforcement actions, payment and industry penalties and fines and/or class action and other lawsuits
6. 24Data protection requirements are constantly evolving and these requirements could adversely affect our business and operating results
7. 25The utilization, expansion and management of machine learning and other types of artificial intelligence in our business could adversely affect our business, financial condition and results of operations

Operational, Supply Chain and Third-Party Risks

1. 26Increased operating costs, including wage increases resulting from potential increases in the minimum wage or competitive pressures, could have an adverse effect on our results
2. 27If we lose key members of management or are unable to attract and retain the talent required for our business, our operating results could suffer
3. 28The loss of, or disruption in, one of our distribution centers and other factors affecting the distribution of merchandise, including freight cost, could materially adversely affect our business
4. 29An increase in the cost or a disruption in the flow of our imported products could adversely affect our business
5. 30Some of the inventory we sell is imported from China, which has historically been subject to efforts to increase duty rates or to impose restrictions on imports of certain products
6. 31We are dependent on third-party vendors and licensors for the merchandise we sell
7. 32The manufacture of our products and our distributing operations are subject to the risks of doing business abroad, including in China, which could affect our ability to obtain products from foreign suppliers or control the costs of our products

Tax, Legal, Regulatory, Global and Other External Risks

1. 33Changes in tax laws may result in increased volatility in our effective tax rates
2. 34Our ability to source our merchandise profitably or at all could be negatively impacted if new trade restrictions are imposed, existing trade restrictions become more burdensome or disruptions occur at our suppliers or at the ports
3. 35The impact of climate change, extreme weather, infectious disease outbreaks, and other unexpected events could result in an interruption to our business, as well as to the operations of our third-party partners, and have a material adverse impact on our business
4. 36Establishing and protecting our intellectual property is critical to our business
5. 37Legislative or regulatory initiatives related to climate change could have a material adverse effect on our business
6. 38The scope of our non-U.S. operations exposes our performance to risks including foreign, political, legal and economic conditions and exchange rate fluctuations
7. 39We are subject to regulatory proceedings and litigation and to regulatory changes that could have an adverse effect on our financial condition and results of operations
8. 40Actions of activist shareholders have caused, and could cause us in the future to incur substantial costs, divert management’s attention and resources, and have an adverse effect on our business

Financial Risks

1. 41Our indebtedness is subject to floating interest rates