Risk Factors Update Summary

• Availability of credit expanded to include availability of credit facility, new credit sources, and potential breaches. This could materially affect financial condition.
• The Company may incur significant legal fees related to activist shareholder matters, potentially hindering its strategic plan execution.
• Inflation risks highlighted with significant increases in interest rates in 2023, negatively affecting sales and profitability.
• The Company's Board authorized management to repurchase up to $600 million worth of shares.
• Increased reliance on third parties and global supply chain risks, including disruptions, increased costs, and impact on financial condition.
• Climate change and legal responses may adversely affect the Company's business, operations, and financial condition.
• Potential adverse effects from workforce challenges, including labor unionization activities, may hinder business execution.
• Stock price fluctuations due to financial results, removal from stock indices, and large shareholder sales could adversely affect investors.
• Increased risks related to information systems, cybersecurity, and artificial intelligence technologies, impacting profitability and financial condition.
• Closure of select stores and potential higher costs, lost sales, and lower brand awareness may negatively impact sales and financial condition.