TJX Companies (TJX) risk factors, FY2025 10-K

OPERATIONAL AND STRATEGIC RISKS

1. 01Failure to execute our opportunistic buying strategy and successfully manage our inventory could adversely affect our results
2. 02Failure to identify consumer trends and preferences, or to otherwise meet customer demand or expectations, in new or existing markets or channels could negatively impact our performance
3. 03We operate in highly competitive markets, and we may not be able to compete effectively
4. 04If we fail to successfully implement our marketing efforts, if our marketing efforts are not successful in driving expected increases in sales or if our competitors’ marketing programs are more effective than ours, our revenue or results of operations may be adversely affected
5. 05Failure to continue to expand our business successfully could adversely affect our financial results
6. 06Failure to effectively manage the large size and scale of our operations may adversely affect our financial results
7. 07We source our merchandise globally, which subjects us to risks, including when moving merchandise internationally
8. 08Compromises of our cybersecurity, disruptions in our information technology systems, or failure to satisfy the information technology needs of our business could result in material loss or liability, materially impact our operating results or materially harm our reputation
9. 09Our results and profitability could be adversely affected by increased labor costs, including wage, pension, health and other costs or other challenges from our large workforce
10. 10Failure to employ qualified Associates in appropriate numbers and to retain key Associates and management could adversely affect our performance
11. 11Damage to our corporate reputation or any of our retail banners’ reputation could adversely affect our sales and operating results
12. 12Our business is subject to changing corporate compliance, governance and public disclosure regulations and expectations, including with respect to matters relating to environmental sustainability, human capital management, social compliance and governance. Failure to meet such expectations or comply with regulations could materially impact our operating results or materially harm our reputation
13. 13Further expansion of our international operations could expose us to risks inherent in operating in new countries
14. 14Failure to meet market expectations for our financial performance could adversely affect the market price and volatility of our stock
15. 15Failure to protect our inventory or other assets from loss and theft and situations resulting in loss or theft may impact customer and Associate safety as well as our financial results
16. 16We depend upon strong cash flows from our operations to supply capital to fund our operations, anticipated growth, any stock repurchases and dividends and interest and debt repayment
17. 17If we engage in mergers, acquisitions or investments in new businesses, or divest, close or consolidate any of our current businesses, our business could be subject to additional risks
18. 18Our large number of real estate leases, which generally obligate us for long periods, subject us to potential financial risk

EXTERNAL AND ECONOMIC RISKS

1. 19Economic conditions on a global level or in particular markets, geopolitical uncertainty, and other factors creating uncertainty and instability may adversely affect consumer confidence and discretionary spending, which could affect our financial performance
2. 20Changes to U.S. or other countries' trade policies and tariff and import/export regulations or our failure to comply with such regulations may have an adverse effect on our business, financial condition, and results of operations
3. 21Changes in economic conditions, on a global level or in particular markets, may adversely affect our sources of liquidity and costs of capital and increase our financial exposure, and our strategies for managing these financial risks may not be effective or sufficient
4. 22Our results may be adversely affected by severe or unseasonable adverse weather, serious disruptions, catastrophic events or public health crises
5. 23As our business is subject to seasonal influences, a significant, unplanned decrease in sales or margins, a severe disruption or other significant event that impacts our business during the second half of the year could have a disproportionately adverse effect on our operating results
6. 24Our results may be adversely affected by increased utility, transportation or logistics costs; reduced availability or increased cost of oil or other fuels; or increased costs of other commodities
7. 25Fluctuations in currency exchange rates may lead to lower revenues and earnings

REGULATORY, LEGAL AND COMPLIANCE RISKS

1. 26Failure to comply with laws, rules, regulations and orders and applicable accounting principles and interpretations could negatively affect our business operations and financial performance
2. 27Our results may be materially adversely affected by the outcomes of litigation, legal proceedings and other legal or regulatory matters
3. 28Quality, safety or other issues with merchandise we buy and sell could impact our reputation, sales and financial results
4. 29Tax matters could adversely affect our results of operations and financial condition