Risk Factors Update Summary

• The company faces risks from adverse developments in the financial services industry affecting liquidity. This could impact product orders, payments, and services, potentially affecting financial condition.
• The impacts of climate change present unpredictable and widespread risks. Physical effects like extreme weather and drought could disrupt the supply chain, increase product costs, and negatively impact the workforce.
• Failure to comply with future climate change regulations may substantially increase costs. Regulatory and reputational risks could arise, affecting compliance, costs, and reputation.
• Fluctuating comparable sales and ineffective inventory management have negatively impacted gross margin and overall results. Factors include fashion trends, economic conditions, and inventory shortages.
• The competitive hiring environment causing wage increases may adversely affect business operations. Future impairment charges could result from unsuccessful store operations.
• Cybersecurity failures, including cyberattacks, could severely damage the company's reputation and expose it to remediation costs. Unauthorized access could adversely affect business and operations.
• Changes to accounting rules and regulations may adversely affect reported financial statements and financial condition. Compliance failures could impact reputation, business, and financial performance.