WD 40 (WDFC) risk factors, FY2024 10-K

Other

1. 01Global economic conditions may negatively impact our financial condition and results of operations
2. 02inflationary conditions could impact demand from our customers and end users. A decrease in demand from our customers and end users would harm our financial results
3. 03Global operations outside the U.S. expose us to uncertain conditions, foreign currency exchange rate risk and other risks in international markets
4. 04and, therefore, our reported earnings may be affected by changes in foreign currency exchange rates. Moreover, any favorable impacts to profit margins or financial results from fluctuations in foreign currency exchange rates are likely to be unsustainable over time
5. 05Our business and financial results could suffer if we are unable to attract, retain and motivate talented employees, including senior management, and maintain our corporate culture’s relevance to our strategic plan
6. 06If the success and reputation of one or more of our leading brands erodes, our business, financial condition and results of operations could be negatively impacted
7. 07We face competition in our markets which could lead to reduced sales and profitability
8. 08Sales unit volume growth may be difficult to achieve
9. 09Cost volatility in finished goods, components, raw materials, transportation and other supplies or services could harm our financial condition and results of operations
10. 10Reliance on a limited base of third-party contract manufacturers, logistics providers and suppliers of raw materials and components may result in disruption to our business and this could adversely affect our financial condition and results of operations
11. 11Dependence on key customers could adversely affect our business, financial condition and results of operations
12. 12Malfunctions or implementation issues related to the critical information systems that we use for the daily operations of our business, cyberattacks and data breaches could adversely affect our ability to conduct business
13. 13Our ability to achieve our environmental, social and governance and sustainability initiatives are subject to emerging risks and the outcomes may not achieve the anticipated benefits or align with new regulations and stakeholders’ expectations
14. 14Government laws and regulations, including environmental laws and regulations, could result in material costs or otherwise adversely affect our financial condition and results of operations
15. 15Failure to maximize or to successfully assert our intellectual property rights or our infringement on the intellectual property rights of others could impact our competitiveness or otherwise adversely affect our financial condition and results of operations
16. 16Our operating results and financial performance may not meet expectations, which could adversely affect our stock price
17. 17We may not successfully develop, introduce and/or establish new products and line extensions
18. 18If we are unable to successfully identify, complete or realize the benefits from strategic business developments, acquisitions, divestitures, joint ventures or investments, our financial results could be materially adversely affected
19. 19Changes in marketing distributor relationships that are not managed successfully by us could result in a disruption in the affected markets
20. 20Product liability claims and other litigation and/or regulatory action could adversely affect our sales and operating results
21. 21Resolution of income tax matters may impact our financial condition and results of operations
22. 22Goodwill and intangible assets are subject to impairment risk
23. 23We may not have sufficient cash to service our indebtedness or to pay cash dividends