Wolverine World Wide(WWW)2025-02-20 18:03Employee Engagement and Culture - The Company had approximately 3,100 employees as of December 28, 2024, focusing on maximizing engagement and attracting top talent [38]. - The Company is committed to creating an inclusive culture and has launched initiatives to enhance inclusion and belonging among employees [44]. - The Company’s talent strategy includes leadership development programs in partnership with Harvard Business School to foster managerial skills [42]. Market Competition - The Company operates in a highly competitive footwear and apparel market, facing competition from larger companies with greater resources [35]. - Changes in consumer preferences and economic conditions can adversely affect the Company's sales and profitability [78]. Financial Risks and Fluctuations - The Company's financial results may be adversely impacted by foreign currency exchange rate fluctuations, affecting revenues and costs [73]. - The Company’s quarterly sales and earnings may fluctuate due to various uncontrollable factors, potentially leading to stock price volatility [74]. - Inflationary pressures, including increased costs of raw materials and labor, may negatively impact the Company's results if not offset by price increases [79]. - Rising costs of raw materials, labor, and services may negatively affect the Company's operational results [90]. - An increase in the Company's effective tax rate could adversely impact its financial position and results of operations [91]. - The Company faces potential impairment of goodwill and intangibles, which could negatively affect its results [93]. - The Company's current level of indebtedness may decrease business flexibility and increase borrowing costs [94]. Regulatory and Compliance Risks - Environmental regulations and climate change concerns may pose risks to the Company's operations and financial performance [83]. - Increases in customs duties, tariffs, and trade restrictions could adversely impact the Company's sales and profitability [89]. - Legal and regulatory risks related to intellectual property could harm the Company's competitive position [96]. - Changes in employment laws may lead to higher employment and pension costs, adversely affecting the Company's financials [99]. - Increasing scrutiny regarding environmental, social, and governance (ESG) practices may impose additional costs and risks on the Company [100]. - The Company is subject to data privacy and cybersecurity laws, which could lead to compliance costs and potential liabilities [102]. - Environmental and workplace safety regulations may result in increased costs or claims against the Company [106]. Corporate Governance - Provisions of Delaware law and the Company's certificate of incorporation could prevent or delay beneficial changes in control or management for stockholders [108]. - The Company's bylaws may discourage or delay mergers, acquisitions, or other changes in control that could benefit stockholders [108]. - The provisions are designed to provide continuity for the Company's Board of Directors and encourage negotiations with potential acquirers [108]. - The Company has a classified Board of Directors, with one-third of directors standing for election each year [108]. - These provisions could discourage proxy contests and complicate efforts for stockholders to replace the majority of directors [108]. - The intent of these provisions is to protect the interests of the Company's stockholders [108].