Raw Material Price Volatility: Coats' profitability is sensitive to fluctuations in the prices of key raw materials such as cotton, polyester, and dyes, which can be affected by global supply and demand dynamics, weather patterns, and geopolitical events.

Global Economic Downturns: As a major supplier to the apparel, footwear, and performance materials industries, demand for Coats' products can be significantly impacted by general economic conditions, consumer spending, and industrial production levels worldwide.

Supply Chain Disruptions: The company's extensive global supply chain is vulnerable to disruptions arising from natural disasters, geopolitical instability, trade restrictions, logistics challenges, and pandemics, potentially leading to production delays or increased costs.