5 unchanged sentences
Maintaining, promoting, and positioning our brand will depend largely on the success of our marketing and merchandising efforts and our ability to provide a consistent, high-quality product, and guest experience.
−Removed: Our brand positioning, products, and marketing efforts may not be considered distinct, culturally relevant, or desirable to guests, employees, and other stakeholders.
−Removed: Our brand and reputation could be adversely affected by negative publicity, if we fail to deliver innovative and high-quality products acceptable to our guests, or if we face or mishandle a product recall, which could be amplified by social media.
+Added: Our brand positioning, products, and marketing efforts may not be considered distinct, culturally relevant or appropriate, or desirable to guests, employees, and other stakeholders.
+Added: Our brand and reputation could be adversely affected by negative publicity, if we fail to deliver innovative and high-quality products acceptable to our guests, or if we face or mishandle a marketing event or product recall, which could be amplified by social media.
Our reputation could also be impacted by adverse publicity, whether or not valid, regarding allegations that we, or persons currently or previously associated with us, have violated laws or regulations, including but not limited to those related to safety, employment, discrimination, harassment, whistle-blowing, privacy, corporate citizenship, improper business practices, or cybersecurity.
49 unchanged sentences
We have limited experience with regulatory environments and market practices internationally, and we may not be able to penetrate or successfully operate in any new market.
−Removed: In connection with our expansion efforts, we may encounter obstacles we did not face in the Americas, including cultural and linguistic differences, differences in regulatory environments, labor practices and market practices, difficulties in keeping abreast of market, business and technical developments, and international guests' tastes and preferences.
+Added: In connection with our expansion efforts, we have encountered, and may continue to encounter obstacles we did not face in the Americas, including cultural and linguistic differences, local customs and sensitivities, differences in regulatory environments, labor practices and market practices, difficulties in keeping abreast of market, business and technical developments, and international guests' tastes and preferences.
We may also encounter difficulty expanding into new international markets because of limited brand recognition leading to delayed acceptance of our technical athletic apparel by guests in these new international markets.
21 unchanged sentences
These changes may create uncertainty and divert management’s attention and resources.
−Removed: Our interim leadership model may not align with expectations of employees, vendor partners, or other external stakeholders, and could negatively affect our operations, strategic initiatives, employee engagement, and retention.
+Added: Our CEO transition may not align with expectations of employees, vendor partners, or other external stakeholders, and could negatively affect our operations, strategic initiatives, employee engagement, and retention.
These changes may also lead to negative public perception, including among consumers and our brand community.
35 unchanged sentences
Supreme Court invalidated tariffs imposed under the IEEPA.
−Removed: Immediately following this IEEPA decision, the U.S.
−Removed: Administration initiated new tariffs at different rates under alternative legislative powers.
−Removed: Administration also confirmed that the IEEPA decision does not impact the removal of the de minimis exemption.
−Removed: We paid $230 million of tariffs under the IEEPA and have commenced submitting refund claims for eligible IEEPA tariffs paid, including associated interest.
−Removed: The ultimate amounts that we may recover remain uncertain.
+Added: Administration has initiated new tariffs at different rates under alternative legislative powers.
+Added: Administration also confirmed that the IEEPA decision does not impact the removal of the de minimis exemption, and this was upheld by the U.S.
+Added: Court of International Trade on August 13, 2026.
+Added: We paid $230 million of tariffs under the IEEPA and have submitted refund claims for eligible IEEPA tariffs paid, including associated interest.
+Added: During the second quarter of 2026, we received $134.5 million of IEEPA tariff refunds;
+Added: however, the ultimate additional amounts that we may be refunded, if any, remain uncertain.
Additionally, our U.S.
−Removed: operating entity was named as a defendant in a purported consumer class action relating to alleged tariff-related pricing actions and potential governmental tariff reimbursements.
+Added: operating entity was named as a defendant in purported consumer class actions relating to alleged tariff-related pricing actions and potential governmental tariff reimbursements.
There has been significant volatility in U.S.
27 unchanged sentences
These developments can increase product costs, delay shipments, disrupt sourcing, or require changes to our supply chain.
−Removed: If we are unable to offset these impacts through pricing, sourcing adjustments, or other measures, our margins, operational efficiency, and customer satisfaction could be adversely affected.
−Removed: Any price increases intended to offset these added costs
−Removed: could reduce consumer demand, negatively impact net revenue, and expose us to consumer claims, regulatory scrutiny, or litigation.
+Added: If we are unable to offset these impacts through pricing, sourcing adjustments, or other measures, our margins, operational
+Added: efficiency, and customer satisfaction could be adversely affected.
+Added: Any price increases intended to offset these added costs could reduce consumer demand, negatively impact net revenue, and expose us to consumer claims, regulatory scrutiny, or litigation.
Trade policy volatility, including frequent changes in rates, sudden elimination or reinstatement of exemptions, shifts in implementation dates, and uncertainty around transshipment rules, makes it more difficult to forecast costs, plan our global supply chain, and provide reliable financial guidance.
24 unchanged sentences
Our bilateral Advance Pricing Arrangement ("APA") with the Internal Revenue Service ("IRS") and Canada Revenue Agency ("CRA") expired at the end of 2020.
−Removed: During 2020, we entered into bilateral negotiations with the IRS and CRA to renew the APA, and in October 2025, the CRA withdrew from bilateral APA negotiations.
−Removed: We continue to apply
+Added: During 2020, we entered into bilateral negotiations with the
(1) PRC includes China Mainland, Hong Kong SAR, Taiwan, and Macau SAR.
−Removed: our transfer pricing methodology, but this may be subject to audit, and could result in changes to our profit allocation and effective tax rate.
−Removed: We are in the process of reapplying under the APA program and intend to file a new APA submission with the CRA and IRS in fiscal 2026.
+Added: IRS and CRA to renew the APA, and in August 2026, the IRS withdrew from bilateral APA negotiations.
+Added: We continue to apply our transfer pricing methodology, but this may be subject to audit, and could result in changes to our profit allocation and effective tax rate.
We are also negotiating an APA with China Mainland's State Tax Administration, the outcome of which could impact our effective tax rate.
2 unchanged sentences
On July 4, 2025, the U.S.
−Removed: passed the One Big Beautiful Bill Act ("OBBBA"), which includes the permanent extension of certain provisions of the Tax Cuts and Jobs Act of 2017, the immediate expensing of domestic research and experimental expenditures, the reinstatement of accelerated depreciation for qualified property, and modifications to the international tax provisions including changes to the global intangible low-tax income ("GILTI"), the foreign-derived intangible income ("FDII") and the base erosion and anti-abuse tax ("BEAT") provisions.
+Added: passed the One Big Beautiful Bill Act ("OBBBA"), which includes the permanent extension of certain provisions of the Tax Cuts and Jobs Act of 2017, the immediate expensing of domestic research and experimental expenditures, the reinstatement of accelerated depreciation for qualified property, and modifications to the international tax provisions including changes to the global intangible low-tax income ("GILTI"), the foreign-derived deduction-eligible income ("FDDEI") and the base erosion and anti-abuse tax ("BEAT") provisions.
On January 5, 2026, the Organization for Economic Cooperation and Development ("OECD") released administrative guidance containing a Side-by-Side ("SbS") system which modifies the operation of the OECD's Pillar Two Global Anti-Base Erosion ("GloBE") Model Rules.
146 unchanged sentences
Responding to the prior proxy contest and related actions caused us to incur substantial costs and, if we are subject to additional proxy contests in the future, may cause us to incur additional costs and be time-consuming.
−Removed: Future instances of such matters may disrupt our business and operations and divert the attention of our board of directors, management, and employees from pursuing our business strategies.
−Removed: Stockholders, political or consumer activists, or others may create perceived uncertainties as to the future direction of our business or strategy, which may be exploited by our competitors and may make it more difficult to attract and retain qualified personnel and potential guests, and may affect our relationships with current guests, vendors, investors, and other third parties.
+Added: Such matters have in the past and may in the future disrupt our business and operations and divert the attention of our board of directors, management, and employees from pursuing our business strategies.
+Added: Stockholders, political or consumer activists, or others have in the past and may in the future create perceived uncertainties as to the future direction of our business or strategy, which may be exploited by our competitors and may make it more difficult to attract and retain qualified personnel and potential guests, and may affect our relationships with current guests, vendors, investors, and other third parties.
Other actions or proposals could include responses to geopolitical conflict, including between the PRC and other countries, or to our perceived positions on social, political, or cultural issues in the United States or elsewhere.
3 unchanged sentences
From time to time, we are involved in litigation and other proceedings, including matters related to product liability claims, consumer class action claims, stockholder class action and derivative claims, commercial disputes and intellectual property, as well as trade, regulatory, employment, and other claims related to our business.
−Removed: Any of these proceedings could result in significant settlement amounts, damages, fines, or other penalties, divert financial and management resources, and result in significant legal fees.
+Added: We are currently involved in securities and stockholder derivative litigation, as described in Note 12.
+Added: Legal Proceedings and Other Contingencies to the consolidated financial statements included in this report.
+Added: Litigation and other proceedings could result in significant settlement amounts, damages, fines, or other penalties, divert financial and management resources, and result in significant legal fees.
An unfavorable outcome of any particular proceeding could exceed the limits of our insurance policies, or the carriers may decline to fund such final settlements and/or judgments and could have an adverse impact on our business, financial condition, and results of operations.
40 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.