LB L Brands Dashboard

Risks

• Our net sales, profit results and cash flows are sensitive to, and may be affected by, general economic conditions, consumer confidence, spending patterns, significant health hazards or pandemics, weather or other market disruptions.
• The novel coronavirus global pandemic has had and is expected to continue to have an adverse effect on our business and results of operations.
• Our net sales, operating income, cash and inventory levels fluctuate on a seasonal basis.
• The proposed separation of the Victoria’s Secret business and related operations could negatively impact our business, and contingent liabilities from the divestiture of such business could adversely affect our financial position and results of operations.
• Retained or contingent liabilities from businesses that we divest could adversely affect our financial results.
• Turnover in company leadership or other key positions may have an adverse impact on company performance.
• We may be impacted by our ability to attract, develop and retain qualified associates and manage labor-related costs.
• Our net sales depend on a volume of traffic to our stores and the availability of suitable lease space.
• Our ability to grow depends in part on new store openings and existing store remodels and expansions.
• Our international operations and our plans for international expansion include risks that could impact our results and reputation.
• Our licensees, franchisees and wholesalers could take actions that could harm our business or brand images.
• Our direct channel businesses include risks that could have an effect on our results.
• Our ability to protect our reputation could have a material effect on our brand images.
• If our marketing, advertising and promotional programs are unsuccessful, or if our competitors are more effective with their programs than we are, our revenue or results of operations may be adversely affected.
• Our ability to adequately maintain, enforce and protect our trade names, trademarks and patents could have an impact on our brand images and ability to penetrate new markets.
• Our ability to compete favorably in our highly competitive segment of the retail industry could impact our results.
• Our ability to manage the life cycle of our brands and to remain current with fashion trends and launch new product lines successfully could impact the image and relevance of our brands.
• We may be impacted by our ability to adequately source, distribute and sell merchandise and other materials on a global basis.
• We rely on a number of vendor and distribution facilities located in the same vicinity, making our business susceptible to local and regional disruptions or adverse conditions.
• Fluctuations in foreign currency exchange rates could impact our financial condition and results of operations.
• We may be impacted by our vendors’ ability to manufacture and deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations.
• Our results may be affected by fluctuations in product input costs.
• Our ability to adequately protect our assets from loss and theft.
• Our results may be affected by fluctuations in energy costs.
• We may be impacted by increases in the cost of mailing, paper, printing or other order fulfillment logistics.
• We self-insure certain risks and may be impacted by unfavorable claims experience.
• We significantly rely on our and our third-party service providers' ability to implement and sustain information technology systems and to protect associated data and system availability.
• Any significant compromise or breach of our data security, including the security of customer, associate, third-party or company information, could have a material adverse effect on our reputation, results of operations, financial condition and cash flows.
• Our stock price may be volatile.
• If we are unable to pay quarterly dividends at intended levels, our reputation and stock price may be impacted.
• Shareholder activism could cause us to incur significant expense, hinder execution of our business strategy and impact our stock price.
• Our ability to maintain our credit rating could affect our ability to access capital and could increase our interest expense.
• We may be unable to service or refinance our debt or maintain compliance with restrictive covenants in our debt instruments, including our Asset-Backed Revolving Credit Facility.
• Changes in laws, regulations or technology platform rules relating to data privacy and security, or any actual or perceived failure by us to comply with such laws and regulations, or contractual or other obligations relating to data privacy and security, could have a material adverse effect on our reputation, results of operations, financial condition and cash flows.
• We may be impacted by our ability to comply with regulatory requirements.
• We may be adversely impacted by certain compliance or legal matters.
• We may be impacted by changes in taxation, trade and other regulatory requirements.