Steven Madden (SHOO) risk factors, FY2024 10-K

INDUSTRY RISKS

1. 01The fashion footwear, accessories, and apparel industry is subject to rapid changes in consumer preferences. If we do not accurately anticipate fashion trends and promptly respond to consumer demand, we could lose sales, our relationships with customers could be harmed, and our brand loyalty could be diminished
2. 02We face intense competition from both established companies and newer entrants into the market. Our failure to compete effectively could cause our market share to decline, which could harm our reputation and have a material adverse impact on our financial condition, results of operations, and liquidity
3. 03If we and the retailers that are our customers are unable to adapt to recent and anticipated changes in the retail industry, the sales of our products may decline, which could have a material adverse effect on our financial condition, results of operations, and liquidity

RISKS RELATING TO OUR COMPANY

1. 04The loss of Steve Madden, our Founder and Creative and Design Chief, or members of our executive management team could have a material adverse effect on our business
2. 05If we are not successful in implementing our growth strategy or integrating acquired businesses, we may not be able to take advantage of certain market opportunities and may become less competitive
3. 06If one or more of our significant customers were to reduce or stop purchases of our products, our sales and profits could decline
4. 07Our financial results are subject to quarterly fluctuations
5. 08Extreme or unseasonable weather conditions in locations where we or our customers and suppliers are located could adversely affect our business
6. 09We extend credit to most of our wholesale customers, and their failure to pay for products shipped to them could adversely affect our financial results
7. 10Our stock price may fluctuate substantially if our operating results are inconsistent with our forecasts or those of analysts who follow us
8. 11Disruptions to our product delivery systems and failure to effectively manage inventory based on business trends across various distribution channels could have a material adverse effect on our business, financial condition, results of operations, and liquidity
9. 12Our reliance on foreign manufacturers to provide materials, or produce our goods in a timely manner, or to meet our quality standards could cause problems if we experience a supply chain disruption and we are unable to secure an alternative source of raw materials or end products
10. 13Changes in trade policies and tariffs imposed by the United States government and the governments of other nations could have a material adverse effect on our business and results of operations
11. 14If our manufacturers, the manufacturers used by our licensees, or our licensees themselves fail to use acceptable labor practices or to otherwise comply with local laws and other standards, our business reputation could suffer
12. 15Our global operations expose us to a variety of legal, regulatory, political, and economic risks that may adversely impact our results of operations in certain regions
13. 16Our business is exposed to foreign exchange rate fluctuations
14. 17We are heavily dependent upon our information technology systems to record and process transactions and manage and operate all aspects of our business. We also have e-commerce websites for direct retail sales
15. 18Our business and reputation could be adversely affected if our computer systems, or the systems of our business partners, or service providers, become subject to a data security, or privacy breach, or other disruption from a third party
16. 19Failure to adequately protect our trademarks and intellectual property rights, to prevent counterfeiting of our products, or to defend claims against us related to our trademarks and intellectual property rights could reduce sales and adversely affect the value of our brands
17. 20A portion of our revenue is dependent on licensing our trademarks. The actions of our licensees or the loss of a significant licensee could diminish our brand integrity and adversely affect our revenue and results of operations
18. 21The failure to complete our acquisition of Kurt Geiger in a timely fashion, or at all, may adversely affect our business and our stock price
19. 22Changes in economic conditions may adversely affect our financial condition, results of operations, and liquidity
20. 23Litigation or other legal proceedings could divert management resources and result in costs that adversely affect our operating results from quarter to quarter
21. 24We may be subject to additional tax liabilities as a result of audits by various taxing authorities
22. 25Changes in tax laws could have an adverse effect upon our financial results
23. 26Any failure to maintain effective internal control over our financial reporting could materially adversely affect us