YETI Holdings (YETI) risk factors, FY2024 10-K

Risks Related to Our Business, Operations and Industry

1. 01Our business depends on maintaining and strengthening our brand to attract new customers and generate and maintain ongoing demand for our products, and a significant reduction in such demand could harm our results of operations
2. 02If we are unable to successfully design, develop and market new products, our business may be harmed
3. 03Our business could be materially harmed if we are unable to accurately forecast our growth rate and demand for our products
4. 04We may not be able to effectively manage our growth
5. 05Our growth depends, in part, on expanding into additional consumer markets, and we may not be successful in doing so
6. 06The markets in which we compete are highly competitive and include numerous other brands and retailers that offer a wide variety of products that compete with our products; if we fail to compete effectively, we could lose our market position
7. 07Our future success depends on the continuing efforts of our management and key employees and on our ability to attract and retain highly skilled personnel and senior management
8. 08Unauthorized use or invalidation of our patents, trademarks, copyrights, trade dress, trade secrets, or other intellectual property or proprietary rights may cause significant damage to our brand and harm our results of operations
9. 09We may be subject to liability if we infringe upon the intellectual property rights of third parties
10. 10We rely on third-party contract manufacturers, and problems with, or loss of, our suppliers or an inability to obtain raw materials could harm our business and results of operations
11. 11If we fail to timely and effectively obtain shipments of products from our manufacturers and deliver products to our retail partners and customers, our business and results of operations could be harmed
12. 12Our business is subject to the risk of manufacturer concentrations
13. 13Our business could be harmed if we fail to execute our internal plans to transition our supply chain and certain other business processes to a global scale
14. 14If we cannot maintain prices or effectively implement price increases, our margins may decrease
15. 15Fluctuations in the cost and availability of raw materials, equipment, labor, and transportation could cause manufacturing delays or increase our costs
16. 16Many of our products are manufactured by third parties outside of the United States, and our business may be harmed by legal, regulatory, economic, political and public health risks associated with international trade and those markets
17. 17As current tariffs are implemented, or if additional or increased tariffs or other restrictions are placed on foreign imports or any related counter-measures are taken by other countries, our business and results of operations could be harmed
18. 18Our aspirations, disclosures, and actions related to ESG matters expose us to risks that could adversely affect our reputation and performance
19. 19Climate change, and related legislative and regulatory responses to climate change, may adversely impact our business
20. 20If our plans to increase sales through our DTC e-commerce channel are not successful, our business and results of operations could be harmed
21. 21If we do not successfully implement our retail store expansion plans, our growth and profitability could be harmed
22. 22Insolvency, credit problems or other financial difficulties that could confront our retail partners could expose us to financial risk
23. 23If our independent suppliers and manufacturing partners do not comply with ethical business practices or with applicable laws and regulations, our reputation, business, and results of operations could be harmed
24. 24We are subject to payment-related risks that may result in higher operating costs or the inability to process payments, either of which could harm our business, financial condition and results of operations
25. 25Our plans for international expansion may not be successful; our limited operating experience and limited brand recognition in new markets may make it more difficult to execute our expansion strategy and cause our business and growth to suffer
26. 26Our financial results and future growth have been, and could in the future be, harmed by currency exchange rate fluctuations
27. 27We may become involved in legal or regulatory proceedings and audits
28. 28We may be subject to product recall, warranty liability, product liability, and other claims against us, which could adversely affect our reputation, earnings, and financial condition
29. 29Our business is subject to the risk of earthquakes, fire, power outages, floods, and other catastrophic events, and to interruption by problems such as terrorism, public health crises, cybersecurity incidents or other cybersecurity threats, or events affecting our information technology systems
30. 30Our results of operations are subject to seasonal and quarterly variations, which could cause the price of our common stock to decline
31. 31We are subject to many hazards and operational risks that can disrupt our business, some of which may not be insured or fully covered by insurance

Risks Related to Market and Global Economic Conditions

1. 32Public health crises could negatively impact our business, sales, financial condition, results of operations and cash flows

Risks Related to Information Technology and Security

1. 33We rely significantly on information technology, and any compromise or interruption of that technology resulting from cybersecurity incidents, data security breaches, design defects or system failures could have a material negative impact on our business
2. 34The integration and use of AI in our business presents risks and challenges that could adversely affect our business, reputation, and results of operations

Risks Related to Our Financial Condition, Accounting and Tax Matters

1. 35We depend on cash generated from our operations to support our growth, and we may need to raise additional capital, which may not be available on terms acceptable to us or at all
2. 36Our indebtedness may limit our ability to invest in the ongoing needs of our business and if we are unable to comply with the covenants in our current Credit Facility, our liquidity and results of operations could be harmed
3. 37If our goodwill, other intangible assets, or fixed assets become impaired, we may be required to record a charge to our earnings
4. 38If our estimates or judgments relating to our critical accounting policies prove to be incorrect or change significantly, our results of operations could be harmed
5. 39Changes in tax laws or unanticipated tax liabilities could adversely affect our effective income tax rate and profitability
6. 40We are subject to credit risk in connection with providing credit to our retail partners, and our results of operations could be harmed if a material number of our retail partners were not able to meet their payment obligations

Risks Related to Ownership of Our Common Stock

1. 41If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our reported financial information and the market price of our common stock may be negatively affected
2. 42We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term stockholder value, and share repurchases could increase the volatility of the price of our common stock
3. 43Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of the Company more difficult, limit attempts by our stockholders to replace or remove our current management, and limit the market price of our common stock
4. 44YETI Holdings, Inc. is a holding company with no operations of its own and, as such, it depends on its subsidiaries for cash to fund its operations and expenses, including future dividend payments, if any

Risks Related to Acquisitions, Strategic Transactions, and Stockholder Activism

1. 45We have acquired and may in the future acquire or invest in other companies, which could divert our management’s attention, result in dilution to our stockholders, and otherwise disrupt our operations and harm our results of operations
2. 46We may be the target of strategic transactions, which could divert our management's attention and otherwise disrupt our operations and adversely affect our business
3. 47We may be the target of stockholder activism, an unsolicited takeover proposal, a proxy contest, or short sellers, which could negatively impact our business