Lands' End (LE) risk factors, FY2025 10-K

RISKS RELATED TO MACROECONOMIC CONDITIONS

1. 01The impact of economic conditions on consumer discretionary spending and customers has in the past and could, in the future, adversely affect our financial performance
2. 02Global economic conditions have had and could, in the future, adversely affect our business, operating results and financial condition
3. 03Our business, results of operations and information technology systems could be negatively impacted by natural disasters, extreme weather conditions, public health emergencies, including pandemics, or political crises or other catastrophic events
4. 04Climate change, unseasonal or severe weather conditions or significant weather events caused by climate change may adversely affect our merchandise sales

RISKS RELATED TO MICROECONOMIC CONDITIONS

1. 05Our business is seasonal in nature and any decrease in our sales or margins, especially during the fourth quarter of our fiscal year, could have an adverse effect on our business and results of operations
2. 06Fluctuations and anticipated increases in the cost and availability of catalog paper, printing services, distribution, and postage have had and could continue to have an adverse effect on our business and results of operations
3. 07Our approach to merchandise promotions and markdowns to encourage consumer purchases could adversely affect our gross margins and results of operations
4. 08We may need additional financing in the future for our general corporate purposes or growth strategies and such financing may not be available on favorable terms, or at all, and may be dilutive to existing stockholders
5. 09Our total debt and the underlying debt agreements, which contain terms and conditions which impose restrictions on us, may affect our ability to operate our business, placing us at a competitive disadvantage in our industry
6. 10We have incurred and could continue to incur non-cash charges due to impairment of intangible assets and long-lived assets

RISKS RELATED TO BRAND AND BRAND EXECUTION

1. 11If customer preference for our branded merchandise and services change or we cannot compete effectively in the apparel industry, our business and results of operations may be adversely affected
2. 12The success of our business depends on our overall marketing strategies for digital marketing and direct mail catalogs and customers’ use of our digital platform, including our eCommerce websites
3. 13If we are unable to protect or preserve the image of our brands, our reputation and our intellectual property rights, our business may be adversely affected
4. 14We rely on vendors to provide us with services in connection with certain aspects of our business, and any failure by these vendors to perform their obligations could have an adverse effect on our business and results of operations
5. 15Our Company Operated stores may not be successful, and as a result our business and results of operations could be adversely affected

RISKS RELATED TO SUPPLY CHAIN AND GLOBAL OPERATIONS

1. 16If we fail to timely and effectively obtain shipments of products from our vendors and deliver merchandise to our customers, our business and operating results could be adversely affected
2. 17Fluctuations and increases in the cost, availability, and quality of raw materials as well as fluctuations in other production and distribution related costs could adversely affect our business and results of operations
3. 18We must maintain sufficient inventory levels to operate our business successfully. Sufficient inventory levels are maintained by our ability to accurately forecast the product needs for each distribution channel, our ability to accurately report our inventory levels and our ability to protect those assets
4. 19Our own websites, third-party suppliers and third-party marketplaces rely on our ability to report and exchange accurate inventories by style, color and size to support customer orders. If we are not able to accurately report inventory information our results of operations could be negatively impacted
5. 20Deterioration of relationships with our vendors and/or the failure of our new merchandise sourcing initiatives could have an adverse effect on our competitive position and operational results
6. 21Our merchandising sourcing strategies are designed to increase the efficiency and responsiveness of our supply chain and include both vendor rationalization, vendor productivity and third-party sourcing assistance. In the event these strategies are unsuccessful, our business could be adversely affected
7. 22We conduct business in and rely on sources for merchandise located in foreign markets and our business may therefore be adversely affected by legal, regulatory, economic and political risks associated with international trade in those markets
8. 23changes in tariffs in the United States that may have an impact on the trading status of certain countries and may include retaliatory duties or other trade sanctions
9. 24Our efforts to expand our distribution channels and geographic reach may not be successful

RISKS RELATED TO INFORMATION TECHNOLOGY, CYBERSECURITY AND DATA PRIVACY

1. 25If we fail to maintain or implement new information technology systems, we could experience significant disruptions to our operations
2. 26If we do not adequately protect against cyber security threats, maintain customer privacy, or secure employee and company information, we could experience significant business interruption and become subject to litigation
3. 27Our operations are highly dependent upon our information technology systems and failures or interruptions of service or security breaches in our systems may interrupt our operations and harm our business

RISKS RELATED TO MAJORITY OWNERSHIP

1. 28Edward Lampert and his investment affiliates, whose interests may be different from the interests of other stockholders, may be able to exert substantial influence over Lands’ End
2. 29Our common stock price may decline if Mr. Lampert decides to sell a portion of his holdings of our common stock

GENERAL RISKS

1. 30Our exploration and pursuit of strategic alternatives may not be successful
2. 31Failure to retain our existing workforce and to attract qualified new personnel in the current labor market and remote and hybrid work models could adversely affect our business and results of operations
3. 32Failure to retain our executive management team and to attract qualified new personnel could adversely affect our business and results of operations
4. 33Other factors may have an adverse effect on our business, results of operations and financial condition
5. 34Our share price may be volatile
6. 35domestic and worldwide economic conditions
7. 36Exposure to periodic litigation and other regulatory proceedings, including with respect to product liability claims. These proceedings may be affected by changes in laws and government regulations or changes in their enforcement
8. 37Potential assessments for additional state taxes, which could adversely affect our business