Tariff/trade policy uncertainty and housing market headwinds are the dominant new macro risks, compounding an already-worsening operational and cyber picture. Supply chain and store-level exposures broadened materially — delivery liability is a newly surfaced operational risk, and civil unrest scenarios were explicitly added to shrink/safety disclosures. Cybersecurity risk escalated on multiple vectors simultaneously: AI-enabled threats, expanded geopolitical scope, and heightened regulatory complexity.
1 company-specific
· 4 common-mode
Revised
New disclosure of delivery operations and third-party carrier liability risks, including property damage, personal injury, and vehicular accidents—a previously unmentioned operational exposure.
Failure to achieve and maintain a high level of product and service quality and safety and ensure compliance with responsible sourcing laws and standards could damage our reputation with customers…
Also disclosed — common-mode (Tariffs trade policy ×2, Geopolitical macro uncertainty, AI cybersecurity escalation)
Geopolitical macro uncertainty
Revised
Added explicit examples of civil unrest, raids, protests as shrink/safety risks. Expanded scope from general incidents to specific external disruption scenarios, escalating risk disclosure.
Failure to maintain a safe and secure shopping and working environment may adversely impact sales, costs, the customer and associate experience, and our brand and reputation. Our customers and…
AI cybersecurity escalation
Revised
New explicit acknowledgment that cybersecurity risk management processes may not be fully effective; added AI-enabled threat escalation; expanded geopolitical scope; enhanced regulatory complexity including AI oversight.
If our efforts to maintain the privacy and security of customer, associate, jobseeker, business partner, and Company information are not successful, we could incur substantial costs and reputational…
Tariffs trade policy
Revised
Added tariff/trade policy risk and housing affordability crisis (high rates + home prices) reducing turnover and demand for home improvement projects.
MARKET, LEGAL, FINANCIAL, REGULATORY, AND OTHER EXTERNAL RISKS Adverse conditions in or uncertainty regarding the housing and home improvement markets, economic conditions, political and social…
Tariffs trade policy
Revised
Added disclosure of U.S. Supreme Court tariff decision and resulting uncertainty regarding tariff regime authority, escalating tariff risk from historical to current/prospective.
If we cannot successfully manage the challenges presented by operating in international markets, we may not be successful in our international operations and our sales and profitability may be…