Kohl's (KSS) risk factors, FY2025 10-K

Macroeconomic, Regulatory, Legal, and External Risks

1. 01General economic conditions, consumer spending levels, and/or other conditions could decline
2. 02Consumer confidence is also affected by the domestic and international political environment. The outbreak or escalation of war, or the occurrence of terrorist acts or other hostilities in or affecting the United States, could lead to a decrease in spending by consumers
3. 03Tax, trade, and climate and other ESG-related policies and regulations could change or be implemented and adversely affect our business and results of operations
4. 04Regulatory and legal matters could adversely affect our business operations and change financial performance
5. 05Weather conditions and natural disasters could adversely affect consumer shopping patterns and disrupt our operations

Strategic, Competitive, and Operational Risks

1. 06We may be unable to successfully execute an omnichannel strategy
2. 07We may be unable to offer merchandise that resonates with existing customers and attracts new customers as well as successfully manage our inventory levels
3. 08Our competitors could make changes to their pricing and other practices
4. 09Our marketing may be ineffective
5. 10Our business is subject to seasonal influences, with a major portion of sales and income historically realized during the second half of the fiscal year, which includes the back-to-school and holiday seasons
6. 11The reputation and brand image of Kohl’s and the brands and products we sell could be damaged
7. 12We are subject to payment-related risks, including in our credit card operations, that could adversely affect our sales, revenues, and/or profitability, increase our operating costs, expose us to fraud or theft, and subject us to potential liability
8. 13We may be unable to attract, develop, and retain quality associates while controlling costs, which could adversely affect our operating results
9. 14We may be unable to adequately maintain and/or update our information systems
10. 15Our efforts to protect the privacy and security of sensitive or confidential customer, associate, or company information could be unsuccessful, which could severely damage our reputation, expose us to risks of litigation and liability, disrupt our operations, and harm our business
11. 16Our information technology projects may not yield their intended results
12. 17We may be unable to source merchandise in a timely and cost-effective manner
13. 18Our vendors may not adhere to our Terms of Engagement or to applicable laws
14. 19There may be concerns about the safety of products that we sell
15. 20We may be unable to raise additional capital or maintain bank credit on favorable terms, which could adversely affect our business and financial condition
16. 21Our capital allocation could be inefficient or ineffective