Tapestry (TPR) risk factors: FY2026 10-K

1. Economic conditions, such as an economic recession, downturn, periods of inflation or uncertainty, could materially adversely affect our financial condition, results of operations and consumer purchases of discretionary items.
2. We face risks associated with potential changes to international trade and policy agreements and the imposition of additional tariffs on importing our products.rewordedTariffs

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1. We face risks associated with operating in international markets.
2. Our business is subject to the risks inherent in global sourcing activities.
3. A decline in the volume of traffic to our stores could have a negative impact on our net sales.
4. The success of our business depends on our ability to retain the value of our brands and respond to changing consumer preferences and fashion trends in a timely manner.
5. The growth of our business depends on the successful execution of our global omni-channel expansion efforts and our ability to execute our digital and e-commerce priorities and our multi-channel strategies.reworded
6. The successful implementation of the Company’s 2028 growth strategy, Amplify, is key to the long-term success of our business.new
7. Significant competition in our industry could adversely affect our business.
8. Our success depends, in part, on attracting, developing and retaining qualified employees, including key personnel.
9. Mergers, acquisitions and other strategic investments may not be successful in achieving intended benefits, cost savings and synergies and may disrupt current operations.
10. We may seek to sell one or more lines of our business in an effort to maximize shareholder value, which may adversely affect our business, our reputation, our results of operations and financial position or our stock price.
11. Our business may be materially impacted if our fulfillment centers face significant interruptions in operations.reworded
12. Our business may be subject to increased costs due to excess inventories and a decline in profitability as a result of increasing pressure on margins if we misjudge the demand for our products.
13. As we outsource functions, we will become more dependent on the third parties performing these functions.
14. Our wholesale business could suffer as a result of consolidations, liquidations, restructurings and other ownership changes in the wholesale industry.
15. Our operating results are subject to seasonal and quarterly fluctuations, which could adversely affect the market price of the Company's common stock.
16. We rely on our licensing partners to preserve the value of our licenses and the failure to maintain such partners could harm our business.
17. We are subject to risks associated with leasing retail space subject to non-cancelable leases. We may be unable to renew leases at the end of their terms. If we close a leased retail space, we remain obligated under the applicable lease.

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1. Computer system disruption and cyber security threats, including a personal data or security breach, could damage our relationships with our customers, harm our reputation, expose us to litigation and adversely affect our business.Cybersecurity
2. A delay, disruption in, failure of, or inability to upgrade our information technology systems precisely and efficiently could materially adversely affect our business, financial condition or results of operations and cash flow.
3. The development, use, or misuse of AI technologies, and the failure to effectively adopt such technologies, may not be successful and could negatively impact our business.newAI

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1. We have incurred a substantial amount of indebtedness, which could restrict our ability to engage in additional transactions or incur additional indebtedness.

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1. The risks associated with climate change and other environmental impacts and increased focus by stakeholders on climate change, could negatively affect our business and operations.
2. Increased scrutiny from investors and others regarding our Corporate Responsibility initiatives, including matters of significance relating to sustainability, could result in additional costs or risks and adversely impact our reputation.

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1. Fluctuations in our tax obligations and effective tax rate may result in volatility of our financial results and stock price.
2. Our business is exposed to foreign currency exchange rate fluctuations.
3. We may be unable to protect our intellectual property and curb the sale of counterfeit merchandise, which can cause harm to our reputation and business.

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1. If we are unable to pay quarterly dividends or conduct stock repurchases at intended levels, our reputation and stock price may be negatively impacted.
2. Our stock price may periodically fluctuate based on the accuracy of our earnings guidance or other forward-looking statements regarding our financial performance, including our ability to return value to investors.
3. Certain provisions of the Company's charter, bylaws and Maryland law may delay or prevent an acquisition of the Company by a third party.
4. Our bylaws designate the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain actions, including derivative actions, which could limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with the Company and its directors, officers, other employees, or the Company's stockholders and may discourage lawsuits with respect to such claims.
5. Our rights and the rights of our stockholders to recover claims against our directors and officers are limited, which could reduce your and our recovery against them if they cause us to incur losses.

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