La-Z-Boy (LZB) risk factors, FY2025 10-K

Other

1. 01Macroeconomic and Market Risk Factors
2. 02Declines in certain economic and market conditions that impact consumer confidence and consumer spending, or cause further disruption in our business, could negatively impact our sales, results of operations and liquidity
3. 03Loss of market share and other financial or operational difficulties due to competition would likely result in a decrease in our sales, earnings, and liquidity
4. 04differentiate our products (through styling, finish, and other construction techniques) from those of our competitors. The highly competitive nature of the industry means we are constantly subject to the risk of losing market share, which would likely decrease our future sales, earnings, and liquidity
5. 05Our business and our reputation could be adversely affected by cybersecurity incidents and the failure to protect sensitive employee, customer, consumer, vendor or Company data
6. 06We rely extensively on information technology systems to process transactions, summarize results, and manage our business and that of certain independent dealers. Disruptions in both our primary and back-up systems could adversely affect our business and results of operations
7. 07Inability to maintain and enhance our brand and respond to changes in our current and potential consumers' tastes and trends in a timely manner could adversely affect our business and results of operations
8. 08Significant disruptions in our supply chain could negatively affect our business and results of operations
9. 09Fluctuations in the price, availability and quality of raw materials could cause delays that could result in our inability to timely provide goods to our customers. Such fluctuations have increased, and could continue to increase, our cost and therefore decrease our earnings
10. 10Changes in the availability and cost of foreign sourcing and economic and political uncertainty in countries outside of the United States in which we operate or from which we purchase product, could adversely affect our business and results of operations
11. 11Financial and Strategic Risk Factors
12. 12We regularly review and evaluate our liquidity and capital needs. We believe that our cash and cash equivalents, short-term investments, cash from operations, and amounts available under our credit facility will be sufficient to finance our operations and expected capital requirements for at least the next 12 months
13. 13Due to the nature of our business and our payment terms, we may not be able to collect amounts owed to us by customers, which may adversely affect our sales, earnings, financial condition, and liquidity
14. 14We may be unsuccessful in identifying attractive acquisition opportunities or, to the extent that we pursue attractive acquisition opportunities, we may be unsuccessful in completing or realizing the expected benefits of such acquisitions
15. 15Changes in the domestic or international regulatory environment could adversely affect our business and results of operations
16. 16We are subject to risks from changes to the trade policies, including tariff and import/export regulations, by the United States or other foreign governments
17. 17Our business and our reputation could be adversely affected by the failure to comply with or the cost of compliance with evolving regulations relating to our obligation to protect sensitive employee, customer, consumer, vendor or Company data
18. 18Changes in regulation of our international operations, including anti-corruption laws and regulations, could adversely affect our business and results of operations
19. 19We may be subject to product liability and other claims or undertake to recall one or more products, which could adversely affect our business, results of operations and reputation
20. 20Changes in tax policies could adversely affect our business and results of operations
21. 21Our operations are subject to risks of unsettled political conditions, natural or man-made disasters, adverse weather, climate change, acts of war, terrorism, organized crime, pandemics and other public health concerns, any one of which could adversely affect our business and results of operations
22. 22We make certain assumptions, judgments and estimates that impact the amounts reported in our consolidated financial statements, which, if not accurate, may impact our financial results
23. 23We may not be able to recruit and retain key employees and skilled workers in a competitive labor market or we could experience continued increases in labor costs, which could adversely affect our business and results of operations