The company faces risks from inflationary pressures, supply chain disruptions (including labor shortages, port congestion, and trade restrictions), economic downturns, currency fluctuations, and potential customer credit issues. Geopolitical instability, including military conflicts and election uncertainty, also pose risks. Restructuring charges and store closures add to the financial uncertainty. The company's reliance on major wholesale customers creates a concentration risk. Liquidity risks exist if cash needs exceed available financing.
Financial Upside
The company's net revenues increased in the recent quarter and six-month periods, driven by growth in direct-to-consumer channels and international businesses. Gross profit margins improved, likely due to favorable product mix and lower costs. Operating income also increased, suggesting operational efficiency gains. The company's stock repurchase program and dividend increases suggest confidence in future performance.
