Supply chain and procurement · Geographic concentration of suppliers
During fiscal 2026, the primary manufacturers of Coach products were located in Vietnam, Cambodia, the Philippines and India, and the primary manufacturers of Kate Spade products were located in Vietnam, Cambodia, the Philippines, and Bangladesh. Increased tariffs or other trade restrictions against these countries...could limit our ability to manufacture products in countries that have the labor and technical expertise needed.
Supply chain and procurement · Supplier operation and dependance
Our business is subject to the risks inherent in global sourcing activities, including, but not limited to: disruptions or delays in shipments whether due to port congestion, logistics carrier disruption...loss or disruption of key manufacturing or fulfillment sites or extended closure of such sites due to unexpected factors.
Supply chain and procurement · Raw material availability and cost volatility
Increases in our costs, such as raw materials, labor or freight could negatively impact our gross margin. Our costs for raw materials are affected by, among other things, weather, customer demand, speculation on the commodities market, the relative valuations and fluctuations of the currencies of producer versus customer countries and other factors that are generally unpredictable and beyond our control.
Supply chain and procurement · Transportation and logistics disruption
Our business is subject to the risks inherent in global sourcing activities, including, but not limited to: disruptions or delays in shipments whether due to port congestion, logistics carrier disruption (including as a result of labor disputes), other shipping capacity constraints or other factors, which have resulted and may continue to result in significantly increased inbound freight costs and increased in-transit times.
Core operations · Operational disruption and business continuity
Our business may be materially impacted if our fulfillment centers face significant interruptions in operations...If any of these centers were to shut down or otherwise become inoperable or inaccessible for any reason, including as a result of accidents, economic and weather conditions, natural disasters, pandemic diseases, labor shortages and other unforeseen events and circumstances, we could suffer a substantial loss of inventory and/or disruptions of deliveries.
Core operations · Capacity utilization and efficiency
In addition, if our fulfillment centers are not sized to meet the optimal capacity for our products or are not adequately staffed, utilized or operated, our profitability may be negatively impacted.
Core operations · Quality control and product defects
Our business is subject to the risks inherent in global sourcing activities, including...product quality issues...Any misstep in product quality or design, executive leadership, customer service, marketing, unfavorable publicity or excessive product discounting could negatively affect the image of our brands with our customers.
Human capital and workforce · Talent acquisition and retention
Our success depends, in part, on attracting, developing and retaining qualified employees, including key personnel. Our business and future success depend heavily on attracting, developing and retaining qualified employees, including our senior management team. Competition in our industry to attract and retain these employees is intense.
Human capital and workforce · Key personnel dependence and succession
We depend on the guidance of our senior management team and other key employees who have significant experience and expertise in our industry and our operations. There can be no assurance that these individuals will remain with us or that we will be able to identify and attract suitable successors for these individuals. The loss of one or more of our key personnel...could have a material adverse effect on our business.