ADDED
As of March 6, 2026, 58,355,464 shares of common stock were outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 7A.
These risks include, among others, the following: Strategic Risks our ability to anticipate and respond to changing fashion, functionality and product trends; our ability to continue to develop innovative products; our ability to execute our e-commerce business strategy; consumer acceptance of designs, features and products; our ability to grow our sales is dependent on our business strategy; rapidly changing regulatory requirements and political scrutiny of sustainability matters; and climate change and other environmental impacts.
trade policy; and loss of key senior management or failure to attract and retain key employees.
Financial Risks we may not achieve consistent profitability or positive cash flows; a significant portion of our cash, cash equivalents and investments are held by our foreign subsidiaries; changes in the mix of product sales demand; impact of potential changes to international tax rules; incurring impairment charges; increased competition from online only retailers and a highly promotional retail environment; our license agreements may require minimum royalty commitments, regardless of the level of product sales under these agreements; and foreign currency fluctuations.
Legal, Compliance and Reputational Risks a data security or privacy breach; violations of laws and regulations, or changes to existing laws or regulations in the U.S.
trade policy; any impacts from pandemics and actions taken by governments, businesses, and individuals in response to pandemics; and inherent limitations in control systems could lead to error or fraud that is not detected.
Operating Strategy In September 2024, we appointed Franco Fogliato as Chief Executive Officer and a member of the Company's Board of Directors (the "Board") and moved quickly to implement change and create a plan to return the Company to profitable growth (the "Turnaround Plan").
The second key area of our Turnaround Plan, rightsizing our cost structure, was focused on aligning our cost structure to our newly defined strategy.
In fiscal 2025, we achieved selling, general and administrative ("SG A") cost savings of approximately $100 million , as compared to fiscal 2024, through initiatives including a corporate workforce reduction, a reduction in costs as a result of our transition in certain smaller international markets to a distributor model, and the closing of 49 underperforming retail stores.
REMOVED
As of March 3, 2025, 53,258,663 shares of common stock were outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.
Pandemic and Public Health Risks any impacts from pandemics and actions taken by governments, businesses, and individuals in response to pandemics.
trade policy; inherent limitations in control systems could lead to error or fraud that is not detected.
We continue to operate in a very challenging business environment for our product offerings.
In early 2023, we initiated our Transform and Grow plan ( TAG ), which was initially designed to reduce operating expenses, improve operating margins and advance our path to profitable growth.
In August 2023, as a result of a more comprehensive business review, we expanded TAG to address a broader transformation and capture a greater level of benefits.
Under the expanded program, we focused on optimizing our core categories, brands, geographies and channels to restructure our operations to achieve improved gross margins, lower operating expenses and to reduce our working capital requirements.
This comprehensive program encompassed various workstreams such as: organization and operating model optimization; sourcing and cost of goods sold opportunities; pricing, promotion, and markdown improvements; end-to-end product planning and inventory management enhancements; indirect procurement efficiencies, including marketing and information technology areas; logistics and distribution center operations efficiencies; and store rationalization and optimization programs.
To execute TAG, we established a Transformation Office in July 2023, composed of members of our senior management supported by a leading management consulting firm specializing in assisting companies in complex reorganizations.