Steven Madden (SHOO) risk factors, FY2025 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 sell products to most of our wholesale customers on credit, subject to customary trade payment terms, 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. 11Failure to successfully integrate the business and operations of Kurt Geiger could adversely affect our business, financial condition, results of operations, and future growth prospectsNew
9. 12complex and evolving legal, regulatory, tax, privacy, labor, and compliance regimes in the United Kingdom and other jurisdictions. Any failure to comply with these requirements or changes to applicable laws could result in increased compliance costs, legal exposure, or operational disruptionsNew
10. 13We have incurred indebtedness in connection with our acquisition of Kurt Geiger, which could limit our operational and financial flexibility, expose us to interest rate risk, and adversely affect our business, financial condition, and results of operationsNew
11. 14We have recorded goodwill and identifiable intangible assets in connection with our acquisition of Kurt Geiger, which could become impaired and adversely affect our financial resultsNew
12. 15Disruptions 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
13. 16Our 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
14. 17Changes in trade policies, tariffs, retaliatory trade actions taken by other countries, and resulting trade wars have had, and may continue to have, a material adverse impact on our business, results of operations, and financial conditionNew
15. 18If 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
16. 19Our 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
17. 20Our business is exposed to foreign exchange rate fluctuations
18. 21Disruption of our information technology systems or e-commerce platforms could have a material and adverse impact on our financial results and brand equityNew
19. 22Our business could be adversely affected by data security breaches or privacy failures involving our systems or those of our third-party partnersNew
20. 23Risks related to the deployment of artificial intelligence and machine learning could adversely impact our operations and financial conditionNew
21. 24Failure 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
22. 25A portion of our revenue is dependent on licensing our trademarks. The actions of our licensees could diminish our brand integrity and adversely affect our revenue and results of operations
23. 26Changes in economic conditions may adversely affect our financial condition, results of operations, and liquidity
24. 27Litigation or other legal proceedings could divert management resources and result in costs that adversely affect our operating results from quarter to quarter
25. 28We may be subject to additional tax liabilities as a result of audits by various taxing authorities
26. 29Changes in tax laws could have an adverse effect on our financial results
27. 30Any failure to maintain effective internal control over our financial reporting could materially and adversely affect us53% rewritten