Kontoor Brands (KTB) risk factors, FY2025 10-K

RISKS RELATING TO OUR BUSINESS AND INDUSTRY

1. 01Macroeconomic conditions, as well as geopolitical events, could have a material adverse impact on our business, results of operations, cash flows and financial condition92% rewritten
2. 02Kontoor Brands, Inc. 2025 Form 10-K 999% rewritten
3. 03Our revenues and profits depend on the level of consumer spending for apparel, which is sensitive to global economic conditions and other factors. A decline in consumer spending could have a material adverse effect on us26% rewritten
4. 04A significant portion of our revenues and gross profit is derived from a small number of large customers. The loss of any of these customers or the inability of any of these customers to pay us could substantially reduce our revenues and profits64% rewritten
5. 05Supply chain and shipping disruptions have resulted in shipping delays, an increase in transportation costs, and could increase product costs and result in lost sales, which may have a material adverse effect on our business, results of operations, cash flows and financial condition
6. 06We may have difficulty in integrating Helly Hansen and/or in achieving the expected growth, cost savings and/or synergies from the acquisition77% rewritten
7. 0710 Kontoor Brands, Inc 2025 Form 10-K100% rewritten
8. 08Our results of operations could be materially harmed if we are unable to accurately forecast demand for our products
9. 09The retail industry has experienced financial difficulty that could adversely affect our business
10. 10The apparel industry is highly competitive, and our success depends on our ability to gauge consumer preferences and product trends, and to respond to constantly changing markets
11. 11Our profitability may decline as a result of increasing pressure on margins
12. 12Our business and the success of our products could be harmed if we are unable to maintain the images of our brands48% rewritten
13. 13Our direct-to-consumer business includes risks that could have a material adverse effect on our results of operations
14. 14We may not succeed in our business strategy
15. 15We continue to implement Project Jeanius, which seeks to simplify and transform our processes, systems and global operating model, and challenges with the implementation of this initiative may negatively impact our business and operations35% rewritten
16. 16We are subject to the risk that our licensees may not generate expected sales or maintain the value of our brands
17. 17Our revenues and cash requirements are affected by seasonality
18. 18The loss of members of our executive management and other key employees could have a material adverse effect on our business
19. 19We use third-party suppliers and manufacturing facilities worldwide for a substantial portion of our raw materials and finished products, which poses risks to our business operations63% rewritten
20. 20If we encounter problems with our distribution system, our ability to deliver our products to the market could be adversely affected
21. 21We rely on a limited number of North American mills for raw material sourcing, and we may not be able to obtain raw materials on a timely basis or in sufficient quantity or quality
22. 22We may be adversely affected by unseasonal or severe weather conditions
23. 23We rely significantly on information technology. Any inadequacy, interruption, integration failure or security failure of this technology could harm our ability to effectively operate our business or report our financial results accurately or timely
24. 24We are subject to data security and privacy risks that could negatively affect our business operations, results of operations or reputation

LEGAL, COMPLIANCE, AND SUSTAINABILITY RISKS

1. 25Changes to trade policy, including tariff and import/export regulations, have had, and may continue to have, an adverse effect on our results of operations, cash flows and financial condition24% rewritten
2. 26Our operations and earnings may be affected by legal, regulatory, political and economic risks
3. 27Changes in tax laws could increase our worldwide tax rate and materially affect our financial position and results of operations38% rewritten
4. 28We may have additional tax liabilities
5. 29Climate change, and related legislative and regulatory responses to climate change, may adversely impact our business
6. 30Sustainability issues and regulations, including those related to climate change, and stakeholder response thereto may have an adverse effect on our business, financial condition and results of operations and damage our reputation61% rewritten
7. 31We may be unable to protect, enforce or defend our trademarks and other intellectual property rights
8. 32Failure to comply with anti-bribery, anti-corruption and anti-money laundering laws could subject us to penalties and other adverse consequences

FINANCIAL RISKS

1. 33Fluctuations in wage rates and the price, availability and quality of raw materials, including commodity costs and finished goods, could increase costs
2. 34Our balance sheet includes goodwill and intangible assets. A decline in the fair value of a business unit or of an intangible asset could result in an asset impairment charge, which would be recorded as an operating expense in our statement of operations
3. 35Our business is exposed to the risks of foreign currency exchange rate fluctuations. Our hedging strategies may not be effective in mitigating those risks28% rewritten
4. 36Kontoor Brands, Inc. 2025 Form 10-K 1998% rewritten
5. 37Our ability to obtain short-term or long-term financing on favorable terms, if needed, could be adversely affected by geopolitical events and volatility in the capital markets
6. 38Our failure to maintain satisfactory credit ratings could adversely affect our liquidity, capital position, borrowing costs and access to capital markets
7. 39We have debt obligations, including our senior notes, that could restrict our business and adversely impact our results of operations, cash flows or financial condition44% rewritten
8. 4020 Kontoor Brands, Inc 2025 Form 10-K100% rewritten

RISKS RELATING TO OUR COMMON STOCK

1. 41The price of our common stock has fluctuated significantly and may continue to fluctuate significantly58% rewritten
2. 42Provisions in our articles of incorporation and bylaws and certain provisions of North Carolina law could delay or prevent a change in control of Kontoor
3. 43Our articles of incorporation designate North Carolina as the exclusive forum for certain litigation that may be initiated by our shareholders, which could limit our shareholders' ability to obtain a favorable judicial forum for disputes with us and limit the market price of our common stock
4. 44We cannot assure shareholders that our Board of Directors will declare dividends or that we will repurchase shares in the foreseeable future