Macy's 2015 Annual Report Download - page 14

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9
Litigation, legislation or regulatory developments could adversely affect the Company’s business and results of
operations.
The Company is subject to various federal, state and local laws, rules, regulations, inquiries and initiatives in
connection with both its core business operations and its credit card and other ancillary operations (including the Credit
Card Act of 2009 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”)).
Recent and future developments relating to such matters could increase the Company's compliance costs and adversely
affect the profitability of its credit card and other operations. The Company is also subject to anti-bribery, customs, child
labor, truth-in-advertising and other laws, including consumer protection regulations and zoning and occupancy ordinances
that regulate retailers generally and/or govern the importation, promotion and sale of merchandise and the operation of
retail stores and warehouse facilities. Although the Company undertakes to monitor changes in these laws, if these laws
change without the Company's knowledge, or are violated by importers, designers, manufacturers, distributors or agents,
the Company could experience delays in shipments and receipt of goods or be subject to fines or other penalties under the
controlling regulations, any of which could negatively affect the Company's business and results of operations. In addition,
the Company is regularly involved in various litigation matters that arise in the ordinary course of its business. Adverse
outcomes in current or future litigation could negatively affect the Company’s financial condition, results of operations and
cash flows.
Factors beyond the Company’s control could affect the Company’s stock price.
The Company’s stock price, like that of other retail companies, is subject to significant volatility because of many
factors, including factors beyond the control of the Company. These factors may include:
• general economic, stock, credit and real estate market conditions;
• risks relating to the Company’s business and its industry, including those discussed above;
• strategic actions by the Company or its competitors;
• variations in the Company’s quarterly results of operations;
• future sales or purchases of the Company’s common stock; and
• investor perceptions of the investment opportunity associated with the Company’s common stock relative
to other investment alternatives.
In addition, the Company may fail to meet the expectations of its stockholders or of analysts at some time in the
future. If the analysts that regularly follow the Company’s stock lower their rating or lower their projections for future
growth and financial performance, the Company’s stock price could decline. Also, sales of a substantial number of shares
of the Company’s common stock in the public market or the appearance that these shares are available for sale could
adversely affect the market price of the Company’s common stock.
Item 1B. Unresolved Staff Comments.
None.