LE Lands' End, Inc.

Risks

• Our business is affected by worldwide economic and market conditions; an unstable economy, a decline in consumer-spending levels and other adverse developments, including inflation, could lead to reduced revenues and gross margins and adversely affect our business, results of operations and liquidity.
• Our business and results of operations could be negatively impacted by natural disasters, extreme weather conditions, public health or political crises or other catastrophic events.
• If we fail to offer merchandise and services that customers want to purchase, our business and results of operations could be adversely affected.
• Customer preference for our branded merchandise could change, which may adversely affect our profitability.
• If we cannot compete effectively in the apparel industry, our business and results of operations may be adversely affected.
• Our approach to merchandise promotions and markdowns to encourage consumer purchases could adversely affect our gross margins and results of operations.
• Our efforts to expand our channels and geographic reach may not be successful.
• Our implementation of information technology systems could result in significant disruptions to our operations.
• We depend on information technology and a failure of information technology systems, including with respect to our eCommerce operations, or an inability to effectively upgrade or adapt our systems could adversely affect our business.
• If we do not maintain the security of customer, employee or company information, we could experience damage to our reputation, incur substantial additional costs and become subject to litigation.
• We conduct business in and rely on sources for merchandise located in foreign markets, and our business may therefore be adversely affected by legal, regulatory, economic and political risks associated with international trade and those markets.
• The United Kingdom’s exit from the European Union will continue to have uncertain effects and could adversely impact our business, results of operations and financial condition.
• Deterioration of relationships with our vendors and/or the failure of our new merchandise sourcing initiatives could have an adverse effect on our competitive position and operational results.
• If we do not efficiently manage inventory levels, our results of operations could be adversely affected.
• Our growth initiatives include the expansion of Company Operated stores which may not be successful and as a result our business and results of operations could be adversely affected.
• If we fail to timely and effectively obtain shipments of products from our vendors and deliver merchandise to our customers, our business and operating results could be adversely affected.
• If our independent vendors do not use ethical business practices or comply with applicable regulations and laws, our reputation could be materially harmed and have an adverse effect on our business and results of operations.
• If we are unable to protect or preserve the image of our brands, our reputation and our intellectual property rights, our business may be adversely affected.
• Fluctuations and increases in the cost, availability, and quality of raw materials as well as fluctuations in transportation and utility costs could adversely affect our business and results of operations.
• Inventory shrinkage could have a material adverse effect on our business, financial condition and results of operations.
• We rely on third parties to provide us with services in connection with certain aspects of our business, and any failure by these third parties to perform their obligations could have an adverse effect on our business and results of operations.
• We could incur charges due to impairment of goodwill, other intangible assets and long-lived assets.
• Unseasonal or severe weather conditions may adversely affect our merchandise sales.
• Our failure to retain our executive management team and to attract qualified new personnel could adversely affect our business and results of operations.
• Increases in postage, paper and printing costs could adversely affect the costs of producing and distributing our catalog and promotional mailings, which could have an adverse effect on our business and results of operations.
• We may be subject to assessments for additional state taxes, which could adversely affect our business.
• Other factors may have an adverse effect on our business, results of operations and financial condition.
• ESL, whose interests may be different from the interests of other stockholders, may be able to exert substantial influence over our company.
• Potential liabilities may arise related to the Separation, which could have an adverse effect on our financial condition and our results of operations.
• Our leverage may place us at a competitive disadvantage in our industry. The agreements governing our debt contain various covenants that impose restrictions on us that may affect our ability to operate our business.
• We may need additional financing in the future for our general corporate purposes or growth strategies and anticipate the need to refinance our long term debt and such financing may not be available on favorable terms, or at all, and may be dilutive to existing stockholders.
• Our common stock price may decline if ESL decides to sell a portion of its holdings of our common stock.
• Our share price may be volatile.
• Your percentage ownership in Lands' End may be diluted in the future.