The company faces risks related to economic conditions (recession, inflation), international risks (currency fluctuations, political instability), competition, regulatory approvals for the Capri acquisition (including FTC lawsuit), cost control, seasonal sales fluctuations, cybersecurity threats, debt obligations, climate change, tax legislation, and potential changes to international trade agreements. The FTC lawsuit against the acquisition of Capri Holdings Limited poses a significant near-term risk.
Financial Upside
The acquisition of Capri Holdings Limited, if successful, offers potential synergies and growth opportunities. The company's 2025 growth strategy focuses on customer relationships, fashion innovation, omni-channel experiences, and global growth. Positive currency impacts and pricing improvements are also noted as potential drivers of increased gross profit and operating income.
