VFC V.F. Corp

Risks

• VF’s revenues and profits depend on the level of consumer spending for apparel and footwear, which is sensitive to global economic conditions and other factors. A decline in consumer spending could have a material adverse effect on VF.
• The apparel and footwear industries are highly competitive, and VF’s success depends on its ability to gauge consumer preferences and product trends, and to respond to constantly changing markets.
• VF’s results of operations could be materially harmed if we are unable to accurately forecast demand for our products.
• VF’s business and the success of its products could be harmed if VF is unable to maintain the images of its brands.
• VF’s revenues and cash requirements are affected by the seasonal nature of its business.
• VF’s profitability may decline as a result of increasing pressure on margins.
• VF may not succeed in its business strategy.
• VF relies significantly on information technology. Any inadequacy, interruption, integration failure or security failure of this technology could harm VF’s ability to effectively operate its business.
• VF is subject to data security and privacy risks that could negatively affect its business operations, results of operations or reputation.
• VF’s business is exposed to the risks of foreign currency exchange rate fluctuations. VF’s hedging strategies may not be effective in mitigating those risks.
• There are risks associated with VF’s acquisitions.
• VF’s operations and earnings may be affected by legal, regulatory, political and economic risks.
• Changes in tax laws could increase our worldwide tax rate and materially affect our financial position and results of operations.
• We may have additional tax liabilities.
• VF’s balance sheet includes a significant amount of intangible assets and goodwill. A decline in the fair value of an intangible asset or of a business unit could result in an asset impairment charge, which would be recorded as an operating expense in VF’s Consolidated Statement of Income and could be material.
• VF uses third-party suppliers and manufacturing facilities worldwide for a substantial portion of its raw materials and finished products, which poses risks to VF’s business operations.
• Fluctuations in wage rates and the price, availability and quality of raw materials and finished goods could increase costs.
• We may be adversely affected by weather conditions.
• A substantial portion of VF’s revenues and gross profit is derived from a small number of large customers. The loss of any of these customers or the inability of any of these customers to pay VF could substantially reduce VF’s revenues and profits.
• The retail industry has experienced financial difficulty that could adversely affect VF's business.
• Our ability to obtain short-term or long-term financing on favorable terms, if needed, could be adversely affected by geopolitical risk and volatility in the capital markets.
• VF has a global revolving credit facility. One or more of the participating banks may not be able to honor their commitments, which could have an adverse effect on VF’s business.
• The loss of members of VF’s executive management and other key employees could have a material adverse effect on its business.
• VF’s direct-to-consumer business includes risks that could have an adverse effect on its results of operations.
• VF’s net sales depend on the volume of traffic to its stores and the availability of suitable lease space.
• VF may be unable to protect its trademarks and other intellectual property rights.
• VF is subject to the risk that its licensees may not generate expected sales or maintain the value of VF’s brands.
• If VF encounters problems with its distribution system, VF’s ability to deliver its products to the market could be adversely affected.
• Volatility in securities markets, interest rates and other economic factors could substantially increase VF’s defined benefit pension costs.
• We may be unable to achieve some or all of the benefits we expect to achieve from the spin-off.
• The Kontoor Brands spin-off could result in substantial tax liability to us and our stockholders.
• Certain directors who serve on our Board of Directors also serve as directors of Kontoor Brands, and ownership of shares of common stock of Kontoor Brands following the spin-off by our directors and executive officers, may create, or appear to create, conflicts of interest.