Risk Factors Update Summary

• Declines in consumer discretionary spending could adversely affect demand for products, leading to reduced sales.
• Rising interest rates and inflation may undermine consumer confidence, erode discretionary income, and impact demand.
• Addition of restrictive covenants in credit agreements could limit financing options and business activities.
• Increased competition from national and regional specialty flooring chains and internet-based companies.
• Interest rates increase impacting variable rate debt, with effects extending into fiscal 2023.
• Comparable store sales decreased by 7.1% in fiscal year 2023, impacting net sales negatively.
• Potential significant expenses related to ESG execution could adversely affect business results.
• Dependence on suppliers outside the U.S. poses risks, including new duties, tariffs, taxes, and charges.
• Labor activities could lead to labor relations difficulties, work stoppages, and increased labor costs.
• Failure to identify and maintain relationships with sufficient suppliers could reduce competitiveness and slow expansion.