Wolverine World Wide (WWW) risk factors, FY2024 10-K

Business and Operational Risks

1. 01The Company’s operating results could be adversely affected if it is unable to maintain its brands’ positive images with consumers or anticipate, understand and respond to changing footwear and apparel trends and consumer preferences
2. 02Significant capacity constraints, production disruptions, inventory management, quality issues, price increases and other risks associated with foreign sourcing could increase the Company’s operating costs and adversely impact the Company’s business and reputation
3. 03adverse developments, such as pandemics or other health crises that cause significant production and shipping delays. Any of these events could adversely effect the Company’s business, results of operations and financial position
4. 04Pandemics, including COVID-19 and other infectious disease outbreaks have had and could continue to have a material adverse effect on the company's business
5. 05Labor disruptions could adversely affect the Company’s business
6. 06If the Company is unable to hire qualified persons for, or retain and continue to develop, its workforce, its results of operations could be adversely affected
7. 07A significant reduction in wholesale customer purchases of the Company’s products, wholesale customers negotiating more favorable terms, or wholesale customers' failure to pay for the Company’s products in a timely manner could adversely affect the Company’s business
8. 08The Company’s direct-to-consumer operations continue to require substantial investment and commitment of resources and are subject to numerous risks and uncertainties
9. 09The Company’s reputation and competitive position depend on its third-party manufacturers, distributors, licensees and others complying with applicable laws and ethical standards
10. 10Disruption of the Company’s eCommerce platform or other information technology systems could adversely affect the Company’s business
11. 11Problems affecting the Company's logistics and distribution systems could adversely affect its ability to deliver its products to the market
12. 12The Company faces risks associated with its growth strategies including acquiring and disposing of businesses
13. 13The Company’s international operations may be affected by legal, regulatory, political and economic risks
14. 14Changes in regulatory, geopolitical, social or economic policies and other factors may have an adverse effect on the Company’s business or require the Company to exit a particular market or significantly modify its current business practices
15. 15Foreign currency exchange rate fluctuations could adversely impact the Company’s business
16. 16Changes in general economic conditions and other factors affecting consumer spending could adversely affect the Company’s sales, costs, operating results or financial position
17. 17The Company operates in competitive industries and markets
18. 18Unseasonable or extreme weather conditions could adversely affect the Company’s results of operations
19. 19Climate change, and related legislative and regulatory responses to climate change, may adversely impact the Company’s business
20. 20Changes in general economic conditions and/or the credit markets affecting the Company's distributors, suppliers and retailers could adversely affect the Company’s results of operations and financial position
21. 21Global political and economic uncertainty could adversely impact the Company’s business

Financial Risks

1. 22The Company’s operating results depend on effectively managing inventory levels
2. 23Increases or changes in duties, quotas, tariffs and other trade restrictions could adversely impact the Company’s sales and profitability
3. 24Increases in the cost of raw materials, labor and services could adversely affect the Company’s results of operations
4. 25An increase in the Company’s effective tax rate or negative determinations by domestic or foreign tax authorities could have an adverse effect on the Company’s results of operations and financial position
5. 26An impairment of goodwill or other intangibles could have an adverse impact to the Company’s results of operations
6. 27The Company’s current level of indebtedness could adversely affect the Company by decreasing business flexibility and increasing borrowing costs

Legal and Regulatory Risks

1. 28If the Company is unsuccessful in establishing and protecting its intellectual property, the value of its brands could be adversely affected
2. 29Changes in employment laws and regulations and other related changes may lead to higher employment and pension costs for the Company
3. 30Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to the Company’s environmental, social and governance (“ESG”) practices may impose additional costs on the Company or expose it to new or additional risks
4. 31The Company’s and its vendors’ databases containing personal information and payment card data of the Company’s customers, employees and other third parties could be breached, which could subject the Company to adverse publicity, litigation, fines and expenses
5. 32The Company’s failure to comply an evolving set of laws and industry standards relating to consumer information, could negatively impact the Company’s business and results of operations
6. 33the Company may be subject to proceedings or actions against it by governmental entities or others that could adversely affect its business, financial condition, cash flows and results of operations
7. 34The Company’s operations are subject to environmental and workplace safety laws and regulations, and costs or claims related to these requirements could adversely affect the Company’s business
8. 35The disruption, expense and potential liability associated with existing and future litigation against the Company could adversely affect its reputation, financial position or results of operations
9. 36Provisions of Delaware law and the Company’s certificate of incorporation and bylaws could prevent or delay a change in control or change in management that could be beneficial to the Company’s stockholders