PVH (PVH) risk factors, FY2025 10-K

Business and Operational Risks

1. 01A meaningful portion of our revenue and gross profit is derived from a small number of large wholesale customers and the loss of any of these customers or significant financial difficulties in their businesses could substantially reduce our revenue
2. 02We may not be able to continue to develop and grow our Tommy Hilfiger and Calvin Klein businesses
3. 03Our success depends on the value of our “TOMMY HILFIGER” and “Calvin Klein” brands and, if the value of either of those brands were to diminish, our business could be adversely affected
4. 04Increased regulation and stakeholder scrutiny regarding our environmental, social and governance (“ESG”) matters, could result in additional costs or risks and adversely impact our reputation
5. 05Our operating model simplification and cost-saving initiative may not generate the intended benefits or attain the projected cost savings we anticipate
6. 06Our inability to execute our digital commerce strategy could materially adversely affect the reputation of our brands and our revenue and our operating results may be harmed
7. 07Global economic conditions, including volatility in the financial and credit markets, may adversely affect our business
8. 08We primarily use foreign suppliers for our products and raw materials, which poses risks to our business operations
9. 09Our business is heavily dependent on the ability and desire of consumers to travel and shop
10. 10If our suppliers, licensees, or other business partners, or the suppliers used by our licensees, fail to use legal and ethical business practices, our business could suffer
11. 11We depend on third parties to manufacture our products and any disruption in our relationships with these parties or in their businesses may materially adversely affect our business
12. 12Our business is susceptible to risks associated with climate change and environmental degradation, and to an increased focus by stakeholders on climate change action and sustainability standards, which may adversely affect our business and results of operations
13. 13We are dependent on a limited number of distribution facilities. If one becomes inoperable, our business, financial condition and operating results could be negatively impacted
14. 14Our profitability may decline as a result of increasing pressure on margins
15. 15We may not be successful in the takeback of licensed businesses
16. 16A portion of our revenue is dependent on royalties and licensing
17. 17Our licensing business makes us susceptible to the actions of third parties over whom we have limited control
18. 18We face intense competition in the apparel industry
19. 19If we are unable to manage our inventory effectively and accurately forecast demand for our products, our results of operations could be materially adversely affected
20. 20We identified a material weakness in our internal control related to ineffective information technology general controls (“ITGCs”) which, if not remediated appropriately or timely, could result in loss of investor confidence and adversely impact our stock price
21. 21The loss of members of our executive management and other key employees could have a material adverse effect on our business

Financial Risks

1. 22Our ability to obtain financing or refinance existing debt on terms that are acceptable to us could be adversely affected by general macroeconomic conditions or our financial performance and credit ratings
2. 23Our business is exposed to foreign currency exchange rate fluctuations and control regulations
3. 24continue to use foreign currency forward contracts to mitigate the cash flow or market risks associated with these inventory transactions, but we are unable to eliminate these risks entirely
4. 25Our level of debt could impair our financial condition and ability to operate
5. 26Our ability to maintain compliance with the financial covenant under our senior unsecured credit facilities may be adversely affected by future economic conditions
6. 27Adverse decisions of tax authorities or changes in tax treaties, laws, rules or interpretations could have a material adverse effect on our results of operations and cash flow
7. 28If we are unable to fully utilize our deferred tax assets, our profitability could be reduced
8. 29Volatility in securities markets, interest rates and other economic factors could increase substantially our defined benefit pension costs and liabilities

Legal and Regulatory Risks

1. 30We may be unable to protect our trademarks and other intellectual property rights
2. 31Provisions in our certificate of incorporation and our by-laws and Delaware General Corporation Law could make it more difficult to acquire us and may reduce the market price of our common stock
3. 32We rely significantly on information technology. Our business and reputation could be adversely impacted if our computer systems, or the systems of our business partners and service providers, are disrupted or cease to operate effectively or if we or they are subject to a data security or privacy breach
4. 33raises concerns about data exposure and privacy risks. Additionally, malicious actors are using artificial intelligence to carry out more sophisticated social engineering attacks, increasing the potential for harm
5. 34We are subject to data privacy and security laws and regulations globally, the number and complexity of which are increasing. We may be the subject of enforcement or other legal actions despite our compliance efforts