Ross Stores (ROST) risk factors, FY2026 10-K

MACROECONOMIC AND RETAIL INDUSTRY BUSINESS RISKS

1. 01Changes and uncertainty in U.S. trade or tax policy regarding apparel, home-related merchandise, shoes, and other goods we sell produced in other countries could adversely affect our business40% rewritten
2. 02Competitive pressures and the pace of change in the retailing industry are highNew
3. 03Unexpected changes in the level of consumer spending or preferences could adversely affect us
4. 04Adverse or unseasonable weather may affect shopping patterns and consumer demand for seasonal apparel and other merchandise, and may result in temporary store closures and disruptions in deliveries of merchandise to our stores
5. 05We may experience volatility in sales and earnings

STRATEGIC RISKS

1. 06We depend on the market availability, quantity, and quality of attractive brand name merchandise at desirable discounts, and on the ability of our buyers to source and purchase merchandise to enable us to offer customers a wide assortment of merchandise at competitive prices
2. 07To achieve growth, we need to expand in existing markets and enter new geographic markets25% rewritten
3. 08Our inability to continually attract, train, and retain associates with the retail talent necessary to execute our off-price retail strategies, as well as labor shortages, increased turnover, or increased labor costs could adversely affect our operating results
4. 09We need to obtain acceptable new store sites with favorable consumer demographics to achieve our planned growth
5. 10Our ability to effectively advertise and market our business could impact customer traffic and demand for our merchandise

OPERATIONAL RISKS

1. 11In order to achieve our planned gross margins, we must effectively manage our inventories, markdowns, and inventory shortage
2. 12Disruptions in our supply chain or in our information systems could impact our ability to process sales and to deliver product to our stores in a timely and cost-effective manner
3. 13We are subject to risks associated with importing and selling merchandise produced in other countries31% rewritten
4. 14Damage to our corporate reputation or brands could adversely affect our sales and operating results
5. 15To support our continuing operations, our new store and distribution center growth plans and other capital investment plans, our stock repurchase program, our debt repayments, and our quarterly dividends, we must maintain sufficient liquidity
6. 16A natural or man-made disaster in a region where we have a concentration of stores, offices, or a distribution center could harm our business
7. 17Consumer problems or legal issues involving the quality, safety, or authenticity of products we sell could harm our reputation, result in lost sales, and/or increase our costs
8. 18An adverse outcome in various legal, regulatory, or tax matters could damage our reputation or brand and increase our costs