Wolverine World Wide(WWW) - 2026 Q4 - Annual Report

Employee Management - The Company had approximately 3,050 employees as of January 3, 2026, focusing on maximizing engagement and attracting top talent [40] - The Company emphasizes a competitive compensation and benefits package, including health and wellness benefits, to retain employees [43] Market Competition - The Company faces significant competition in the footwear and apparel markets, with many competitors having greater resources and brand recognition [37] Financial Risks - The Company’s financial results may be adversely impacted by foreign currency exchange rate fluctuations, affecting revenues and costs [77] - The Company’s quarterly sales and earnings may fluctuate due to various uncontrollable factors, potentially leading to stock price volatility [78] - The Company is subject to inflationary pressures, which may increase costs of raw materials and labor, impacting profitability [83] - Changes in general economic conditions and consumer spending patterns could negatively impact the Company’s sales and financial position [81] - The Company’s results may be affected by unseasonable weather conditions, impacting demand for seasonal products [85] - The Company faces risks from changes in trade policies, tariffs, and import/export regulations, which could materially adversely affect its business performance and financial condition [94] - Increases in the cost of raw materials, labor, and services could negatively impact the Company's results of operations, particularly due to fluctuations in commodity prices [97] - The Company's effective tax rate may increase due to changes in tax laws or regulations, adversely affecting its financial position [98] - The Company is subject to examination by tax authorities, and any adverse determinations could negatively impact its results of operations [99] - The Company's current level of indebtedness may decrease business flexibility and increase borrowing costs, impacting its ability to finance operations [101] Operational Challenges - The Company’s ability to manage inventory levels effectively is crucial, as shortages or excess inventory can adversely affect sales and brand loyalty [92] - Climate change and related regulations may impose additional costs and operational challenges for the Company [87] - Substantially all units are sourced from third-party manufacturers in the Asia Pacific region, making the Company vulnerable to international trade restrictions that could increase procurement costs [95] Legal and Compliance Issues - Changes in employment laws could lead to higher employment and pension costs, adversely affecting the Company's financial position [107] - The Company's databases containing personal information are at risk of breaches, which could lead to significant financial and reputational damage [110] - The Company is subject to Payment Card Industry Data Security Standard compliance, which may incur significant costs and impact its ability to accept payment cards [113] - The Company faces potential liabilities and costs related to environmental and workplace safety laws, which could adversely affect its business operations [115] - Ongoing and future litigation could disrupt the Company's operations and negatively impact its financial position and reputation [116] - Provisions in Delaware law and the Company's bylaws may delay or prevent beneficial changes in control or management for stockholders [117] Sustainability and Reputation - Increasing scrutiny regarding sustainability practices may impose additional costs and risks, potentially impacting the Company's reputation and operations [108] - An impairment of goodwill or other intangibles could adversely affect the Company's results, as seen with impairments related to the Sweaty Betty trade name in fiscal 2022 [100]