Risk Factors Update Summary

• Added "levels" to "level" dependency on third parties for services could disrupt operations.
• Mentioned acts of piracy as a risk factor, impacting imported merchandise and operations.
• Ability to adapt to changes in consumer spending and economic conditions, including pandemics or public health crises.
• Ability to acquire new customers in a cost-effective manner and manage inventory levels and assortment.
• Increased focus on ESG matters and sustainability ratings could negatively impact reputation and operations.
• Ability to identify and respond to new and changing customer preferences and industry trends.
• Ability to successfully optimize omnichannel operations and enhance technology and marketing efforts.
• Disclosed potential impairment charges of $0.62 million related to leasehold improvements and fixtures.
• Ability to maintain and enhance a strong brand image, engage customers, and gain market share.
• Ability to use effective marketing strategies to increase customer traffic through digital marketing.
• Noted the adoption of a final rule requiring climate-related disclosures for smaller reporting companies.
• Ability to compete effectively in an environment of intense competition.
• Changes in tax laws, like disallowance of tax deductions, could adversely affect financial results.