lululemon athletica (LULU) risk factors: FY2025 10-K

1. Our success depends on our ability to maintain our brand value and reputation.reworded
2. We operate in a highly competitive market and our competitors may compete more effectively than we can, resulting in a loss of our market share and a decrease in our net revenue and profitability.
3. If we are unable to anticipate consumer preferences and successfully develop and introduce new, innovative, and differentiated products, we may not be able to maintain or increase our sales and profitability.
4. If any of our products have manufacturing or design defects or are otherwise unacceptable to us or our guests, our business could be harmed.
5. Our sales and profitability may decline as a result of increasing costs and decreasing selling prices.
6. Our results of operations could be materially harmed if we are unable to accurately forecast guest demand for our products.
7. Our limited operating experience and limited brand recognition in new international markets and new product categories may limit our expansion and cause our business and growth to suffer.
8. Our future success is dependent on the service of our senior management and our ability to maintain our culture and to attract, manage, and retain highly qualified individuals.reworded
9. We may not be able to effectively manage our growth and the increased complexity of our business and as a result our brand image and financial performance may suffer.
10. Changes in consumer shopping preferences, and shifts in distribution channels could materially impact our results of operations.
11. We are subject to risks associated with leasing retail and distribution space subject to long-term and non-cancelable leases.
12. Our business is affected by seasonality, which could result in fluctuations in our operating results.

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1. Changes to U.S. tariff and customs policy, including the elimination of the de minimis exemption, have and may further materially increase product costs and negatively affect margins.newTariffs
2. Macroeconomic volatility, inflationary pressures, and shifts in consumer sentiment may reduce demand for our products.new
3. Global political and economic instability, including geopolitical conflicts and political polarization, could disrupt our operations and increase costs.new
4. Trade restrictions, tariffs, and customs changes could disrupt our supply chain and compress margins.newTariffs
5. Changes in tax laws, transfer pricing, or unanticipated tax liabilities could adversely affect our effective income tax rate and profitability.reworded
6. Our failure to comply with trade and other regulations could lead to investigations or actions by government regulators and negative publicity.
7. Because a significant portion of our net revenue and expenses are generated in countries other than the United States, fluctuations in foreign currency exchange rates have affected our results of operations and may continue to do so in the future.
8. Our financial condition could be adversely affected by public health crises.new

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1. Disruptions of our supply chain, which is dependent on international suppliers, could have a material adverse effect on our operating and financial results.reworded
2. A relatively small number of vendors supply and manufacture a significant portion of our products, and losing one or more of these vendors could adversely affect our business and results of operations.
3. Our business could be harmed if our suppliers and manufacturers do not comply with our Vendor Code of Ethics or applicable laws.
4. The fluctuating cost of raw materials and the cost of producing our products could increase our cost of goods sold.reworded
5. If we encounter problems with our distribution system, our ability to deliver our products to the market and to meet guest expectations could be harmed.

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1. We may be unable to safeguard against security breaches which could damage our customer relationships and result in significant legal and financial exposure.Cybersecurity
2. Privacy and data protection laws increase our compliance burden.
3. Disruption of our technology systems or unexpected network interruption could disrupt our business.
4. Our technology-based systems that give our customers the ability to shop with us online may not function effectively.

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1. Our fabrics and manufacturing technology generally are not patented and can be imitated by our competitors. If our competitors sell products similar to ours at lower prices, our net revenue and profitability could suffer.
2. Our failure or inability to protect our intellectual property rights could diminish the value of our brand and weaken our competitive position.
3. Our trademarks, patents, and other proprietary rights could potentially conflict with the rights of others and we may be prevented from selling some of our products.

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1. Our business could be negatively affected as a result of actions of stockholders, activists, or shifting consumer sentiment.reworded
2. We are subject to periodic claims and litigation that could result in unexpected expenses and could ultimately be resolved against us.
3. Anti-takeover provisions of Delaware law and our certificate of incorporation and bylaws could delay and discourage takeover attempts that stockholders may consider to be favorable.

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1. Climate change and related pressures may adversely impact our business, supply chain, and financial results.new
2. We face heightened scrutiny and legal risks from competing pressures regarding our ESG practices and disclosures.new

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Headings in the FY2024 10-K with no match this year.

1. We rely on international suppliers and any significant disruption to our supply chain could impair our ability to procure or distribute our products.
2. Increasing labor costs and other factors associated with the production of our products in South Asia and South East Asia could increase the costs to produce our products.
3. Climate change, and related legislative and regulatory responses to climate change, may adversely impact our business.
4. Increased scrutiny from investors and others regarding our environmental, social, governance, or sustainability responsibilities could result in additional costs or risks and adversely impact our reputation, employee retention, and willingness of customers and suppliers to do business with us.
5. An economic recession, depression, downturn, periods of inflation, or economic uncertainty in our key markets may adversely affect consumer discretionary spending and demand for our products.
6. Global economic and political conditions could adversely impact our results of operations.
7. We may be unable to source and sell our merchandise profitably or at all if new trade restrictions are imposed or existing restrictions become more burdensome.
8. Our financial condition could be adversely affected by global or regional health events such as the COVID-19 pandemic and related government, private sector, and individual consumer responsive actions.
9. We have been, and in the future may be, sued by third parties for alleged infringement of their proprietary rights.