Risk Factors Update Summary

• Climate change may increase the frequency and severity of weather conditions, impacting operations and cash flow.
• Global economic conditions could continue to impact our business and other businesses worldwide.
• Reduction in workforce and restructuring actions may impact business strategies and financial conditions.
• Failure to comply with laws and regulations could result in increased indebtedness up to $2.2 billion.
• Higher unemployment levels and recession fears may influence consumer spending patterns.
• Supply chain disruptions may lead to prolonged delays in receiving inventory, impacting operations.
• Inability to manage inventory effectively may result in excessive markdowns and lower gross margins.
• Natural disasters, public health crises, and political crises could disrupt operations and impact financials.
• Increased competition in the global apparel retail industry may affect our business negatively.
• Failure to adapt to a changing media environment could impact brand perception and operations.