Gap (GPS)

Risks

• The COVID-19 pandemic has and could continue to adversely affect our business and results of operations.
• Global economic conditions and any related impact on consumer spending patterns could adversely affect our results of operations.
• We must successfully gauge apparel trends and changing consumer preferences to succeed.
• We must maintain our reputation and brand image.
• Our business is highly competitive.
• We may engage in or seek to engage in strategic transactions, such as acquisitions, divestitures and other dispositions, that are subject to various risks and uncertainties, which could disrupt or adversely affect our business.
• Our investments in customer, digital, and omni-channel shopping initiatives may not deliver the results we anticipate.
• Our failure to manage key executive succession and retention and to continue to attract qualified personnel could adversely affect our results of operations.
• If we are unable to manage our inventory effectively, our results of operations could be adversely affected.
• Our business is subject to risks associated with global sourcing and manufacturing.
• Risks associated with importing merchandise from foreign countries, including failure of our vendors to adhere to our Code of Vendor Conduct, could harm our business.
• We are subject to data and security risks, which could adversely affect our results of operations and consumer confidence in our security measures.
• Failures of, or updates or changes to, our IT systems may disrupt operations.
• Our efforts to expand internationally may not be successful.
• Our franchise and licensing businesses are subject to certain risks not directly within our control that could impair the value of our brands.
• Trade matters may disrupt our supply chain.
• Our business is exposed to the risks of foreign currency exchange rate fluctuations and our hedging strategies may not be effective in mitigating those risks.
• We experience fluctuations in our comparable sales and margins, which could adversely affect the market price of our common stock, our credit ratings and our liquidity.
• Our business and results of operations could be adversely affected by natural disasters, public health crises, political crises, negative global climate patterns, or other catastrophic events.
• The market for real estate is competitive.
• We are subject to various proceedings, lawsuits, disputes, and claims from time to time, which could adversely affect our business, financial condition and results of operations.
• Failure to comply with applicable laws and regulations, and changes in the regulatory or administrative landscape, could adversely affect our business, financial condition and results of operations.
• Reductions in income and cash flow from our credit card arrangement related to our private label and co-branded credit cards could adversely affect our results of operations and financial condition.
• Our level of indebtedness may adversely affect our ability to operate and expand our business.
• We may not be able to generate sufficient cash to service all of our indebtedness and fund our working capital and capital expenditures, and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.
• Covenants in the ABL Facility may restrict our business and could limit our ability to implement our business plan.
• Changes in our credit profile or deterioration in market conditions may limit our access to the capital markets and adversely impact our business and financial condition.