Macy's (M) risk factors, FY2025 10-K

Strategic, Operational and Competitive Risks

1. 01Our strategic plans and initiatives may not be successful, which could negatively affect our profitability and growth
2. 02We may not timely identify or effectively respond to consumer needs, expectations, or trends, which could adversely affect our relationship with customers, the demand for our products and services, and our market share
3. 03Our sales and operating results depend on our ability to manage our inventory, merchandise selection and protect against inventory shortage
4. 04The Company faces significant competition and challenges as consumers continue to migrate to other shopping channels and depends on its ability to differentiate itself in retail's ever-changing environment
5. 05Our ability to grow depends in part on our stores remaining relevant and attractive to customers
6. 06We may not be able to successfully execute our real estate strategy
7. 07Our revenues and cash requirements are affected by the seasonal nature of our business
8. 08We depend on our ability to attract, train, develop and retain quality colleagues
9. 09Minimum wage increases by states and wage and benefit increases to attract and retain workers in a tight labor market have increased labor costs in the retail sector. These increased costs pressure our margins and could have a negative impact on our financial results
10. 10If revenue from our private label and co-branded credit cards decline, our financial and operational results may be negatively impacted
11. 11In addition, shifts from sales through our proprietary credit cards to debit products and alternative buy-now-pay-later payment methods may result in increased costs and could have a negative impact to credit card revenues due to potentially reduced credit card receivable balances
12. 12Our defined benefit plan funding requirements or plan settlement expense could impact our financial results and cash flow
13. 13If our Company's reputation and brand image are not maintained at a high level, our operations and financial results may suffer
14. 14If we are unable to protect our intellectual property, our brands and business could be damaged
15. 15Unforeseen disruptions in our distribution and fulfillment centers could have an adverse impact on our business and operations
16. 16Failure of a key information technology system or process could adversely affect our business
17. 17AI creates business, legal and ethical challenges
18. 18Disruptions in our customer-facing technology systems could impair our digital retail strategy and give rise to negative customer experiences
19. 19A breach of our information technology systems could adversely affect our reputation, business partner and customer relationships and operations, and result in higher costs
20. 20We depend on vendors and other sources of merchandise, goods and services outside the U.S. Our business has been and could in the future continue to be affected by disruptions in, or other legal, regulatory, political, economic or public health issues associated with, our supply network
21. 21Disruption of global sourcing activities and quality and other concerns over our own brands could negatively impact brand reputation and earnings
22. 22Material disruptions in relationships with third-parties with whom the Company does business could adversely affect its operations
23. 23The Company's business is subject to discretionary consumer spending, unfavorable economic and political conditions, and other related risks
24. 24Our business could be materially adversely affected by extreme weather conditions, natural disasters or regional or global health pandemics
25. 25Natural disasters such as hurricanes, tornadoes and earthquakes, or a combination of these or other factors, could damage or destroy our facilities or make it difficult for customers to travel to our stores, thereby negatively affecting our business and results of operations
26. 26Litigation, legislation, regulatory developments or non-compliance could adversely affect our business and results of operations
27. 27Changes in applicable environmental regulations, including increased or additional regulations to limit carbon emissions or other greenhouse gases may result in increased compliance costs, capital expenditures and other financial obligations which could affect our profitability
28. 28Climate change, or legal, regulatory, or market measures to address climate change, could adversely affect our business and results of operations

Financial Risks

1. 29Inability to access capital markets could adversely affect our business or financial condition
2. 30Our level of indebtedness may adversely affect our ability to operate our business, remain in compliance with debt covenants, react to changes in our business or the industry in which we operate, or prevent us from making payments on our indebtedness