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What Changed
Risk factors · Apr 1, 2025 → Apr 2, 2026
65 added · 24 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
While we have implemented strategies to mitigate tariff impacts by optimizing production in lower tariff countries and negotiating with suppliers, there can be no assurance that these efforts will be successful. On February 20, 2026, the U.S.
As part of our business strategy to expand into complementary product categories and markets, we periodically pursue acquisitions of other companies, businesses or brands, such as the acquisition of the Stuart Weitzman business in August 2025.
We continue to evaluate the impact of Pillar Two as additional guidance becomes available; however, uncertainty remains regarding the timing and interpretation of the rules by the jurisdictions in which we operate. On July 4, 2025, the One Big Beautiful Bill Act (the “OBBB Act”) was enacted into law.
For example, collection and assurance of responsible business initiative data and developing and acting on such initiatives can be costly, difficult and time consuming and is subject to evolving reporting standards, including climate- and nature-related disclosure requirements and the EU’s disclosure regulations set forth in the Corporate Sustainability Directive (“CSRD”), and similar proposals and laws by other domestic and international regulatory bodies.
The OECD continues to release guidance and many countries are implementing legislation to adopt the rules, which became effective on January 1, 2024.
We may be unable to quickly adapt to rapid change resulting from artificial intelligence and other machine learning technologies that may result in changes to our supply chain, distribution channels, and point-of-sale capabilities.
The enactment of additional tariffs and the uncertainty surrounding the future tariff policies and rates pose a significant risk to our business operations and may materially increase our costs and reduce our margins.
We operate on a global basis, with approximately 7% of our total net sales for the year ended 15 Table of Contents January 31, 2026 generated from operations outside of the United States.
The tariff uncertainty also creates challenges in our supply chain management, our pricing strategies and the management of customer orders.
In January 2026, the OECD announced that the U.S. multinational regime would be considered a side-by-side regime that should prevent U.S. companies from double taxation.
In early 2025, the United States administration announced tariffs on products manufactured in several jurisdictions from which we import our products.
Given the uncertainty regarding the scope and duration of the current and potential tariffs, as well as the potential for additional trade actions by the United States or other countries, the specific impact to our business, results of operations and financial conditions is not certain but could be material. Consumer demand for our products may be adversely impacted by economic conditions and other factors.
No longer disclosed
The OECD continues to release guidance and many countries implemented legislation to adopt the rules for tax years beginning in 2024.
As part of our business strategy, we periodically pursue acquisitions of other companies or businesses, such as our recently announced acquisition of Stuart Weitzman, as well as divestitures of our businesses.
During the second quarter of 2024, we experienced operational challenges, primarily while 16 Table of Contents our e-commerce and drop-ship platforms were either offline or ramping up after the launch.
During 2024, we implemented a new enterprise resource planning (“ERP”) system, which required significant financial and human capital resources.
The imposition of new tariffs or increases to existing tariffs on products we import from countries where our suppliers operate could result in increased product costs, which may require us to raise prices and accordingly, may make our product less competitive in the market.
While we continue to shift production outside of China and other countries impacted by tariffs and continue to negotiate with our suppliers to mitigate the impact of the tariffs, we may not be successful in changing our sourcing strategy to minimize the impact of the tariffs on our financial results and operations.
The extent and duration of these tariffs, and any retaliatory tariffs adopted in response to these tariffs, are uncertain and may limit our ability to meet incremental consumer demand, potentially impacting our net sales or financial results. 12 Table of Contents Consumer demand for our products may be adversely impacted by economic conditions and other factors.
Any deficiencies or additional disruptions related to the new ERP system may materially and adversely impact our business operations, including our ability to process orders, manage our inventory, ship products to our customers, maintain our financial records, maintain effective internal control over financial reporting, or perform other business functions.
Using sales forecasts, we place orders with manufacturers for some of our products prior to the time we receive all of our customers’ orders to minimize purchasing costs, the time necessary to fill customer orders and the risk of non-delivery.
This may result in impairments or lease termination charges that adversely impact our financial results. 18 Table of Contents Failure to successfully execute our planned campus sale and relocation could result in unexpected expenditures and operational disruptions.
Although the United States has not yet enacted legislation implementing Pillar Two, there can be no assurance that our effective tax rate or tax payments will not be adversely affected as countries independently amend their tax laws to adopt Pillar Two. 19 Table of Contents Our commitments and shareholder expectations relating to responsible business initiatives may expose us to liabilities, increased costs, reputational harm, and other adverse effects on our business.
In addition, as of February 1, 2025, total borrowing availability under the Credit Agreement was $272.3 million.