Ralph Lauren (RL) risk factors, FY2025 10-K

Risks Related to Macroeconomic Conditions

1. 01Economic, political, and other conditions, including the imposition of significant new tariffs or other changes to existing trade policies and agreements, may adversely affect the global economy and/or the level of consumer purchases of discretionary items and luxury retail products, including our products
2. 02Economic conditions could have a negative impact on our major customers, suppliers, vendors, and lenders, which in turn could materially adversely affect our business
3. 03Our business is exposed to domestic and foreign currency fluctuations
4. 04Infectious disease outbreaks, such as the COVID-19 pandemic, could have a material adverse effect on our business

Risks Related to our Strategic Initiatives and Restructuring Activities

1. 05We cannot assure the successful implementation of our growth strategy
2. 06We may not be successful in the expansion of our multi-channel distribution network or accelerating growth in certain product categories
3. 07The success of our business depends on our ability to respond to constantly changing fashion and retail trends and consumer preferences in a timely manner, develop products that resonate with our existing customers and attract new customers, and provide a seamless shopping experience to our customers
4. 08designs to achieve acceptable results could lead to asset impairment charges and/or our decision to close a store prior to the lease expiration date resulting in other store closure-related charges, including early lease termination fees
5. 09Our profitability may decline if we are unable to effectively manage inventory or as a result of increasing pressure on margins
6. 10We may not fully realize the expected cost savings and/or operating efficiencies from our restructuring plans

Risks Related to our Business and Operations

1. 11The loss of the services of Mr. Ralph Lauren or any other changes to our executive and senior management team may be disruptive to, or cause uncertainty in, our business
2. 12Our business is subject to risks associated with importing products and the ability of our manufacturers to produce our goods on time and to our specifications
3. 13potential increased product costs through higher sales prices to our consumers, supply chain diversification, or other mitigating measures, which in turn could have a material adverse effect on our business due to lower profitability
4. 14Our business could suffer if we need to replace manufacturers or distribution centers
5. 15We face intense competition worldwide in the markets in which we operate
6. 16The success of our business depends on our ability to retain the value and reputation of our brands
7. 17Our trademarks and other intellectual property rights may not be adequately protected outside the U.S
8. 18Our business is subject to risks related to leasing real estate and other assets under long-term, non-cancellable leases
9. 19A substantial portion of our revenue is derived from a limited number of large wholesale customers. Our business could be adversely affected as a result of consolidations, liquidations, restructurings, other ownership changes in the retail industry, and/or any financial instability of our large wholesale customers
10. 20We have a substantial amount of indebtedness which could restrict our ability to engage in additional capital-related transactions in the future
11. 21We rely on our licensing partners to preserve the value of our licenses. Failure to maintain licensing partners could harm our business
12. 22Our business could be adversely affected by man-made or natural disasters and other catastrophic events in the locations in which we or our customers or suppliers operate

Risks Related to Information Systems and Data Security

1. 23A data security or privacy breach could damage our reputation and our relationships with our customers or employees, expose us to litigation risk, and adversely affect our business
2. 24Our business could suffer if our computer systems and websites are disrupted or cease to operate effectively

Risks Related to Citizenship and Sustainability Issues

1. 25Our business could suffer if we fail to meet our global citizenship and sustainability goals or if such goals do not meet the expectations of our stakeholders
2. 26Climate change, or our ability to adhere to any legislation and regulatory requirements related to climate change, traceability and transparency, product labeling, or other sustainability matters may adversely affect our business

Risks Related to Regulatory, Legal, and Tax Matters

1. 27Our ability to conduct business globally may be affected by a variety of legal, regulatory, political, and economic risks
2. 28Fluctuations in our tax obligations and effective tax rate may result in volatility of our operating results
3. 29Our business could suffer if we fail to comply with labor laws or if one of our manufacturers fails to use acceptable labor or environmental practices
4. 30Certain legal proceedings, regulatory matters, and accounting changes could adversely affect our business

Risks Related to our Common Stock

1. 31The trading prices of our securities periodically may rise or fall based on the accuracy of predictions of our earnings or other financial performance, including our ability to return value to shareholders
2. 32The voting shares of our Company's stock are concentrated in one majority stockholder