Risk Factors Update Summary

• The recently enacted Inflation Reduction Act may affect our income tax expense and profitability significantly.
• The company announced an impairment loss of $8,164 in SG&A expenses for the Sanuk brand. This change might result in decreased net income.
• The company is adapting to technology changes, including data analytics, AI, and machine learning, enhancing operational efficiency.
• The anticipated economic downturn may lead to unpredictable consumer discretionary spending trends, affecting sales.
• Changes in US and foreign tax laws could materially affect our business and financial position.
• The company plans to divest the Sanuk brand, which could divert management focus and resources.
• Our cybersecurity program includes a comprehensive incident response plan to mitigate evolving cybersecurity threats.
• Recent geopolitical conflicts may disrupt supply chains and increase transportation costs, adversely affecting operations.
• The Audit Committee oversees cybersecurity risks, ensuring alignment with business objectives and operational needs.
• The company is expanding its distribution network, which may lead to increased costs and operational challenges.
• The transition to new leadership with CEO Stefano Caroti could disrupt business operations during the change.