Costco Wholesale (COST) risk factors: FY2025 10-K

1. We are highly dependent on the financial performance of our U.S. and Canadian operations.
2. We may be unsuccessful implementing our growth strategy, including expanding our business in existing markets and new markets, and integrating acquisitions, which could have an adverse impact on our business, financial condition and results of operations.
3. Our failure to maintain membership growth, loyalty and brand recognition could adversely affect our results of operations.
4. Disruptions in merchandise distribution or processing, packaging, manufacturing, and other facilities could adversely affect sales and member satisfaction.
5. We may not timely identify or effectively respond to consumer tastes and preferences, which could negatively affect our relationship with our members, the demand for our products and services, and our market share.
6. Availability and performance of our IT systems are vital to our business. Failure to successfully execute IT projects and have IT systems available to our business would adversely impact our operations.
7. We are required to maintain the privacy and security of personal and business information amidst multiplying threat landscapes and in compliance with increasing privacy and data protection regulations globally. Failure to do so could damage our business, including our reputation with members, suppliers and employees, cause us to incur substantial additional costs, and become subject to litigation and regulatory action.
8. We are subject to payment-related risks.
9. We might sell products that cause illness or injury to our members, harm to our reputation, and expose us to litigation.
10. If we do not successfully develop and maintain a relevant and comprehensive digital experience for our members, our results of operations could be adversely impacted.reworded
11. Inability to attract, train and retain qualified employees could adversely impact our business, financial condition and results of operations.reworded
12. We may incur property, casualty or other losses not covered by our insurance.

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1. We face strong competition from other retailers and warehouse club operators, which could adversely affect our business, financial condition and results of operations.
2. General economic factors, domestically and internationally, may adversely affect our business, financial condition, and results of operations.
3. Suppliers may be unable to timely supply us with quality merchandise at competitive prices or may fail to adhere to our high standards, resulting in adverse effects on our business, merchandise inventories, sales, and profit margins.
4. Fluctuations in foreign-exchange rates may adversely affect our results of operations.
5. Natural disasters, extreme weather conditions, or other catastrophic events could negatively affect our business, financial condition, and results of operations.
6. Pandemics and other health crises could affect our business, financial condition and results of operations in many respects.
7. Failure to meet financial market expectations could adversely affect the market price and volatility of our stock.

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1. Changes in or failure to comply with laws and regulations could adversely impact our business, financial condition and results of operations.reworded
2. We are subject to risks associated with the legislative, judicial, accounting, regulatory, political and economic factors specific to the countries or regions in which we operate, which could adversely affect our business, financial condition and results of operations.
3. Changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial condition and results of operations.
4. We are exposed to risks relating to evaluations of controls required by Section 404 of the Sarbanes-Oxley Act and otherwise.
5. Changes in federal, state and foreign tax rates and legislation, could adversely affect our financial condition and results of operations.reworded
6. Failure or perceived failure to meet our environmental, social or governance (ESG) goals or expectations set by changing public interest and government regulation of ESG topics could result in reputational harm or adversely affect our business.reworded
7. We are involved in a number of legal proceedings and audits and some of these outcomes could adversely affect our business, financial condition and results of operations.

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