Tapestry (TPR) risk factors, FY2025 10-K

Risks Related to Macroeconomic Conditions

1. 01We face risks associated with potential changes to international trade agreements and the imposition of additional tariffs on importing our products
2. 02Economic conditions, such as an economic recession, downturn, periods of inflation or uncertainty, could materially adversely affect our financial condition, results of operations and consumer purchases of discretionary items

Risks Related to our Business and our Industry

1. 03We face risks associated with operating in international markets
2. 04Our business is subject to the risks inherent in global sourcing activities
3. 05A decline in the volume of traffic to our stores could have a negative impact on our net sales
4. 06The success of our business depends on our ability to retain the value of our brands and respond to changing consumer preferences and fashion trends in a timely manner
5. 07The growth of our business depends on the successful execution of our global omni-channel expansion efforts and our ability to execute our digital and e-commerce priorities
6. 08Significant competition in our industry could adversely affect our business
7. 09Our success depends, in part, on attracting, developing and retaining qualified employees, including key personnel
8. 10Mergers, acquisitions and other strategic investments may not be successful in achieving intended benefits, cost savings and synergies and may disrupt current operations
9. 11We may seek to sell one or more lines of our business in an effort to maximize shareholder value, which may adversely affect our business, our reputation, our results of operations and financial position or our stock price
10. 12Our business may be materially impacted if our fulfillment centers face significant interruptions and operations
11. 13Our business may be subject to increased costs due to excess inventories and a decline in profitability as a result of increasing pressure on margins if we misjudge the demand for our products
12. 14As we outsource functions, we will become more dependent on the third parties performing these functions
13. 15Our wholesale business could suffer as a result of consolidations, liquidations, restructurings and other ownership changes in the wholesale industry
14. 16Our operating results are subject to seasonal and quarterly fluctuations, which could adversely affect the market price of the Company's common stock
15. 17We rely on our licensing partners to preserve the value of our licenses and the failure to maintain such partners could harm our business

Risks Related to Information Security and Technology

1. 18Computer system disruption and cyber security threats, including a personal data or security breach, could damage our relationships with our customers, harm our reputation, expose us to litigation and adversely affect our business
2. 19A delay, disruption in, failure of, or inability to upgrade our information technology systems precisely and efficiently could materially adversely affect our business, financial condition or results of operations and cash flow

Risks Related to our Indebtedness

1. 20We have incurred a substantial amount of indebtedness, which could restrict our ability to engage in additional transactions or incur additional indebtedness

Risks Related to Corporate Responsibility

1. 21The risks associated with climate change and other environmental impacts and increased focus by stakeholders on climate change, could negatively affect our business and operations
2. 22Increased scrutiny from investors and others regarding our Corporate Responsibility initiatives, including matters of significance relating to sustainability, could result in additional costs or risks and adversely impact our reputation

Risks Related to Global Economic Conditions and Legal and Regulatory Matters

1. 23Fluctuations in our tax obligations and effective tax rate may result in volatility of our financial results and stock price
2. 24Our business is exposed to foreign currency exchange rate fluctuations
3. 25We may be unable to protect our intellectual property and curb the sale of counterfeit merchandise, which can cause harm to our reputation and business

Risks Related to Ownership of our Common Stock

1. 26If we are unable to pay quarterly dividends or conduct stock repurchases at intended levels, our reputation and stock price may be negatively impacted
2. 27Our stock price may periodically fluctuate based on the accuracy of our earnings guidance or other forward-looking statements regarding our financial performance, including our ability to return value to investors
3. 28decisions with respect to our securities do so at their own risk. We take no responsibility for any losses suffered as a result of such changes in our stock price
4. 29Certain provisions of the Company's charter, bylaws and Maryland law may delay or prevent an acquisition of the Company by a third-party
5. 30Our rights and the rights of our stockholders to recover claims against our directors and officers are limited, which could reduce your and our recovery against them if they cause us to incur losses