What changed in this filing

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Item 1A. Risk Factors

2026-03-25 compared with 2025-03-31 · 469 added, 450 removed, 604 unchanged (60% of the section changed)

15 unchanged sentences

and adversely

our business,

operating results,

business, operating results,

financial condition,

common stock.

events or contingencies are provided as

examples only and should not be

interpreted as a complete listing

representation about

contingencies have

may occur in the future.

Risks Relating to Our Business:

1 unchanged sentence

and indirectly from overseas,

we are subject to risks associated with changes, disruptions, increased

costs or other problems

we are subject to risks associated with increased costs, changes, disruptions

or other problems

affecting the Company’s merchandise supply chain, risks associated with trade policies, including

costs and uncertainties as the result of actual or threatened tariffs, the risks of conducting

international operations and risks that affect the prevailing social, economic, political,

international operations and risks that affect the prevailing economic, social,

geopolitical, public

health and other conditions in the areas from which we source

4 unchanged sentences

manufacturers

issues related

causing longer

prohibitions,

threatened tariffs, compliance and reporting requirements

have resulted in increased costs associated with

merchandise produced

new sanctions,

and reporting

requirements enacted

in the future

may further increase our

costs associated with sourcing

products from those regions

our ability to

procure the products

we source, and

our ability to

source these products from

other regions

may be limited

increased sourcing costs.

are subject to

supply chain disruptions

transit times

restrictions.

disruptions from

including disruptions from

issues related

transiting the

much longer distance around

Good Hope due

to the hostilities

in the Middle

capacity that

transiting the Suez

being forced to

much longer distance

around the Cape

the hostilities in the Middle East.

issues have and may continue to drive

up our ocean freight costs,

container shipping capacity that we require.

Additionally,

to additional

costs related

increased facility fees,

fuel, peak surcharg

other additional charges

which may increase our costs.

also are subject to domestic supply chain disruptions, including lack of

we may be subject to additional

costs related to

facility fees,

peak surcharges

additional charges

transportation

incoming container

congestion, including increased dwell

times for incoming container

ships, lack of container

yard capacity

available drayage

from the ports and

other conditions that impact our

available drayage from

and other conditions

that impact our

domestic supply chain.

These supply chain

merchandise and

arrivals to our

stores, which adversely affect

our ability to

sell this merchandise

and increase markdowns

merchandise and delayed merchandise arrivals to

our stores, which adversely affect

our ability to sell this

merchandise and increase markdowns of it.

directly import

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disruption of

from countries

affecting our

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governmental policies regarding

prohibitions,

have resulted

Any new sanctions, tariffs and reporting requirements enacted in the future may further

increase our costs

these products

sourcing costs.

If we are unable to

pass these increased sourcing costs onto our vendors or

these matters

factors affecting

the availability

Increased product costs, freight costs, wage increases and operating

costs due to inflation and

other factors, as well as limitations in our ability to offset these cost increases by increasing

retail prices of our products or otherwise, have and may continue to adversely affect our business,

margins, results of operations and financial condition.

unwillingness

discretionary

effects of pricing pressure on consumer confidence,

limited customer disposable income to purchase our

our customers

it may adversely impact our results of operations.

current discretionary

results of operations and financial condition.

Any actual or perceived deterioration in the conditions that drive

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employment, fuel

values, consumer

the availability

affecting any of these conditions.

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operations and financial condition.

Fluctuations in the price, availability and quality of inventory have and

may continue to result in

higher cost of goods, which the Company may not be able to pass on to

its customers.

fluctuations,

regulation, tariffs, weather and

crop yields, currency value fluctuations, inflation, as

well as other factors.

Additionally,

manufacturers have and

may continue to

have increases in

other manufacturing costs,

transportation,

merchandise costs to the Company.

Due to the Company’s

limited flexibility in price point, the

effect on our margins, results of operations and financial condition.

Our inability to effectively manage inventory has impacted and may continue

to negatively impact

our gross margin and our overall results of operations.

conditions, including

continued high

interest rates

and persistent

accurately predict

customers’ preferences

items, we may have too

much inventory, which

may cause excessive markdowns.

are unable to

margin and results of operations.

The competitive hiring environment and our failure to attract, train,

and retain skilled personnel

has and could continue to adversely affect our business and our financial condition.

retailers, we experience

significant associate turnover

rates, particularly among

continually attract, hire and train new store associates to meet our staffing needs.

significant increase in

training costs, as well

as possibly cause a

decrease in our store

operating efficiency and productivity.

companies in our industry or other industries, many of whom have greater financial

resources than we do.

business strategy

key management.

key management

retailers, and

qualified personnel

ability to grow.

key management

associates or

attract, train,

customers effectively

business strategy, which could adversely affect our business, operating results and financial condition.

The currently

competitive environment

new associates

and retaining

existing associates

margins, operating results and financial condition if we cannot offset these cost increases.

Our ability to attract consumers and grow our revenues is dependent

on the success of our store

location strategy and our ability to successfully open new stores as planned.

Our sales are

dependent in part

on the location

of our stores

in shopping centers

and malls where

been substantially dependent on our ability to secure space for and open new stores in attractive locations.

Shopping centers

currently operate

existing stores

adversely affected

things, general

economic downturns

particularly affecting

commercial real

estate industry,

stores, changes

preference for online

versus in-person shopping.

take advantage of

consumer traffic and

competition for suitable

store locations is

in customer popularity

strip shopping

centers where we

generally locate our

availability of space in

desirable centers and

or an increase in the cost of such desired space, has limited and could further limit our ability to open new

operating costs.

many factors,

negotiate acceptable lease terms, secure

necessary governmental permits and approvals and

hire and train

appropriate store

addition, our

continued expansion

merchandising as we enter these new markets.

Our failure to successfully and timely

execute our plans for

opening new stores

or the failure

of these stores

to perform up

to our expectations

could adversely affect

our business, results of operations and financial condition.

Continued high interest rates have and may continue to adversely

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shelter, reduce

our customers’

discretionary income

willingness to

purchase discretionary items

our customers’ discretionary income

willingness to purchase

discretionary items

such as apparel, shoes or jewelry products.

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spending on our

Increased product costs, freight costs, wage increases and operating

costs due to inflation and

other factors, as well as limitations in our ability to offset these cost increases by increasing

retail prices of our products or otherwise, have and may continue to adversely

affect our business,

margins, results of operations and financial condition.

labor markets

store, distribution

making it more

associates and

retain existing associates.

pressures on labor and raw materials

used to make our products may continue

to increase the cost we

increasing the

retail prices

products, reducing other

otherwise, our business,

results of operations and financial condition may be adversely affected.

unwillingness

discretionary

disposable income, sentiment or financial outlook.

the persistence or worsening of inflationary

discretionary

sales volume and adversely affect our results of operations and financial condition.

The operation of our sourcing offices in Asia presents increased operational and

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acts, outbreaks of

materially and adversely affect us.

unpredictable

including disrupting our

supply chain, the

products and negatively

impacting our workforce.

reputational risks.

The potential cost of compliance with any future regulations may substantially increase

For example, the

use of certain commodities in

the manufacture of our products

and energy we

environmental

concerns, which could increase our costs.

Furthermore, any failure of or perceived failure by us to comply

requirements,

regarding the environment, could adversely affect our reputation and results of operations.

Our ability to attract consumers and grow our revenues is dependent

on the success of our store

location strategy and our ability to successfully open new stores as planned.

Our sales are

dependent in part

on the location

of our stores

in shopping centers

and malls where

been substantially dependent on our ability to secure space for and open new stores in attractive locations.

Shopping centers

currently operate

existing stores

adversely affected

things, general

economic downturns

particularly affecting

commercial real

estate industry,

stores, changes

preference for online

versus in-person shopping.

take advantage of

consumer traffic and

competition for suitable

store locations is

in customer popularity

strip shopping

centers where we

generally locate our

availability of space in

desirable centers and

or an increase in the cost of such desired space, has limited and could further limit our ability to open new

operating costs.

many factors,

negotiate acceptable lease terms, secure

necessary governmental permits and approvals and

hire and train

appropriate store

addition, our

continued expansion

merchandising as we enter these new markets.

Our failure to successfully and timely

execute our plans for

opening new stores

or the failure

of these stores

to perform up

to our expectations

could adversely affect

our business, results of operations and financial condition.

The inability of third-party vendors to produce goods on time and to

the Company’s specifications

materially and adversely affect us and could adversely affect our reputation and results of operations.

The inability of third-party vendors to produce goods on time and to the

Company’s specifications

may adversely affect the Company’s business, results of operations and financial condition.

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as regulations and

regulatory enforcement priorities,

regulatory enforcement priorities, which

result in increased costs or liabilities,

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business, results of operations and financial condition.”

Existing and increased competition in the women’s retail apparel industry may negatively impact

our business, results of operations, financial condition and

market share.

merchandisers,

internet-based

retailers, many of which have substantially greater financial, marketing and other resources

than we have.

competitors are

expanding into markets

significant market presence.

In addition, our

expenditures,

operations and financial condition.

If we are unable to anticipate, identify and respond to rapidly changing

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adversely affect our margins and results of operations.

Existing and increased competition in the women’s retail apparel industry may negatively impact

our business, results of operations, financial condition and

market share.

merchandisers,

internet-based

retailers, many of which have substantially greater financial, marketing and other resources

than we have.

competitors are

expanding into markets

significant market presence.

In addition, our

expenditures,

operations and financial condition.

Fluctuations in the price, availability and quality of inventory have and

may continue to result in

higher cost of goods, which the Company may not be able to pass on

to its customers.

and availability

materials may

regulation, tariffs,

fluctuations,

Additionally,

manufacturers

manufacturing

transportation,

merchandise costs to the Company.

Due to the Company’s

limited flexibility in price point, the

effect on our margins, results of operations and financial condition.

Our inability to effectively manage inventory has impacted and may continue

to negatively impact

our gross margin and our overall results of operations.

conditions, including

continued high

interest rates

and persistent

accurately predict

customers’ preferences

items, we may have too

much inventory, which

may cause excessive markdowns.

are unable to

margin and results of operations.

Adverse developments affecting the financial services industry or events or concerns

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volume and adversely affect our results of operations and financial condition.

The competitive hiring environment and our failure to attract, train,

and retain skilled personnel

has and could continue to adversely affect our business and our financial condition.

retailers, we experience

significant associate turnover

rates, particularly among

continually attract, hire and train new store associates to meet our staffing needs.

A significant increase in

training costs, as well

as possibly cause a

decrease in our store

operating efficiency and productivity.

companies in our industry or other industries, many of whom

have greater financial resources than we do.

business strategy

key management.

key management

retailers, and

qualified personnel

ability to grow.

key management

associates or

attract, train,

customers effectively

business strategy, which could adversely affect our business, operating results and financial condition.

The currently

competitive environment

new associates

and retaining

existing associates

margins, operating results and financial condition if we cannot offset these cost increases.

If the Company is unable to successfully integrate new businesses into

its existing business, the

Company’s financial condition and results of operations will be adversely affected.

The Company’s

long-term business

strategy includes

opportunistic growth

The Company may not

realize any of the anticipated

benefits of a new business

and integration

costs related to our retail stores that we will not be able to

recover if our stores are not successful and that

growth strategies, our financial condition and results of operations may

be adversely impacted.

Risks Relating to Our Information Technology, Related Systems and Cybersecurity:

A failure or disruption relating to our information technology systems

could adversely affect our

A failure or disruption relating to our information technology systems could

adversely affect our

merchandise planning,

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Modifications and/or upgrades to

our current information technology systems may

our current information technology systems may also

our operations.

A disruption or shutdown of our centralized distribution center

or transportation network could

materially and adversely affect our business and results of operations.

The distribution

products is centralized

distribution center in

Charlotte, North Carolina

shipped directly to

our distribution center,

prepared for shipment

to the appropriate

third-party freight carriers were

to be shut down

or lose significant capacity

for any reason, including but

not limited to, any of the causes described above under “A failure or disruption

relating to our information

Such problems could occur as

the result of any loss,

destruction or impairment of our ability to

distribution center,

problem generally

into our distribution center

or deliver goods to

could incur significantly higher

costs and longer lead

times associated with distributing our

products to our stores

during the time it

for us to reopen or

replace the distribution center and/or our transportation network.

could adversely affect our business, results of operations and financial condition.

A security breach that results in unauthorized access to or disclosure

of employee, Company or

customer information or a ransomware attack could adversely affect our costs, reputation

customer information or a ransomware attack could adversely affect our costs,

reputation and

results of operations, and efforts to mitigate these risks may continue to increase

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In addition, the Company may be subject to ransomware attacks, which if successful could

otherwise adversely

Company's business

and financial condition.

A disruption or shutdown of our centralized distribution center or

transportation network could

materially and adversely affect our business and results of operations.

The distribution

products is centralized

distribution center in

Charlotte, North Carolina

shipped directly to

our distribution center,

prepared for shipment

to the appropriate

third-party freight carriers were

to be shut down

or lose significant capacity

for any reason, including but

not limited to, any of the causes described above under “A failure or disruption

relating to our information

Such problems could occur as

the result of any loss,

destruction or impairment of our ability to

distribution center,

problem generally

into our distribution center

or deliver goods to

could incur significantly higher

costs and longer lead

times associated with distributing our

products to our stores during

the time it takes

for us to reopen or

replace the distribution center and/or our transportation network.

could adversely affect our business, results of operations and financial condition.

The Company’s failure to successfully operate its e-commerce websites or fulfill customer

5 unchanged sentences

drive incremental

customer base,

the efficient

and uninterrupted operation

websites, customer contact center

or our distribution

center, including

expose existing customers with

the online shopping experience

and introduce a new

customer base to the

numerous risks.

potential failures

uninterrupted

telecommunication

system capabilities,

electrical outages,

mechanical problems and

Our e-commerce

may also expose us

to greater potential for

security or data

breaches involving the unauthorized access

adversely affect

reputation and

operations, and

mitigate these

performance of third parties, such as shipping companies, including

delays associated with labor strikes or

adverse weather

successfully meet

the challenges

capabilities,

information or a ransomware

attack could adversely affect

our costs, reputation and

results of operations,

and efforts to

mitigate these risks

may continue to increase

our costs.” We

are also subject

to risk related

fulfilling customer

expectations,

could be adversely affected.

the Company's business and sales could be adversely affected.

We are subject to payment-related risks.

accept payments using

including third-party credit

payment methods we offer to our customers, we are subject to fraud risk and

to additional regulations and

authentication

lowering profitability.

rely on third-party service providers for payment processing

services, including

certification

rules governing

electronic funds

transfers, which

reinterpreted to

impossible for us

existing and future

payment methods we

our customers, we

and to additional

regulations and compliance

requirements (including obligations to

implement enhanced

authentication processes that could result in increased costs

and reduce the ease of use of

certain payment

methods, including

interchange and

profitability.

processing services,

including the

processing of

could disrupt

business if these third-party service providers

become unwilling or unable to provide

these services to us.

We are also subject to payment card association operating rules, including data security rules, certification

reinterpreted

make it difficult

or impossible for

us to comply.

to comply with

these rules or

requirements, or if

our data security

systems are breached or compromised, we may be liable for card-issuing banks’ costs

and subject to fines

requirements, or

if our data security

systems are breached or compromised,

we may be liable for

card-issuing banks’ costs

and higher transaction

our ability to

accept credit and

debit card payments

customers and

process electronic

funds transfers

or facilitate

business and operating results could be adversely affected.

accept credit

debit card payments from

our customers and

process electronic funds transfers or

facilitate other types of

payments, and our business and operating results

could be adversely affected.

We are exposed to risks related to the use of

AI by us and our competitors.

incorporating

technologies,

There is no guarantee that our use of AI will enhance our technologies, benefit our business operations, or

successful in their AI

strategy and develop

superior products with

the aid of AI

Additionally,

AI algorithms or

training methodologies may be

flawed, and datasets

may contain irrelevant,

or biased information, which can

cause errors in outputs.

This may give

rise to legal liability,

reputation, and materially harm our business.

The use of AI in the development of our products could also

infringement or

misappropriation, data

cybersecurity.

United States

may adopt laws

and regulations related

and regulations could

failure by us to comply with these regulatory requirements could subject us to legal

liabilities, damage our

reputation, or otherwise have a material and adverse impact on our business.

Risks Relating to Accounting and Legal Matters:

If we fail to protect our trademarks and other intellectual property

rights or infringe the

intellectual property rights of others, our business, brand image,

growth strategy, results of

operations and financial condition could be adversely affected.

Trademark Office

registered, or

registration of,

additional trademarks

registrations

merchandising

label merchandise or

the infringement of

our other intellectual

property rights by

Infringement of

lesser quality or carries a negative connotation of

our image could adversely affect our business, financial

condition and results of operations.

ultimately successful, may result in costly litigation, and if the Company is not successful in its defense, it

could be subject to

injunctions and liability for

damages or royalty obligations,

and the Company’s

profitability, cash flows, financial condition and reputation could be adversely affected.

Our business operations subject us to legal compliance and litigation risks,

49 unchanged sentences

interpretation

or sustainability

data privacy,

sustainability matters,

could increase

of compliance,

technology and

business operations.

The interpretation

compliance, technology

interpretation of

evolving technology

business practices can be uncertain and may lead to additional compliance

and business practices can be uncertain and may lead to additional compliance

risk and cost.

Adverse litigation matters may adversely affect our business and our financial

Primarily these arise in the

normal course of business but are

subject to risks and uncertainties, and

litigation-related

may change our assessment in

light of the discovery of

facts with respect to legal

actions pending against

presently known to

by determination of

judges, juries

negatively impact our business, reputation and financial condition.

Continued scrutiny and changing expectations surrounding sustainability

matters from investors,

customers, government regulators and other stakeholders may impose additional

requirements, additional costs and compliance risks.

Public companies

all industries

face scrutiny

from investors,

sustainability

sustainability,

compliance, disclosure and reporting.

Furthermore, evolving laws, regulations or stakeholder expectations

expectations,

business or financial performance.

Changes to accounting rules and regulations may adversely affect our reported

operations and financial condition.

Changes in accounting rules, disclosures

or regulations and varying interpretations of

existing accounting

rules, disclosures

and regulations

have significantly

financial statements

operations and financial position or perceptions of our performance and

financial condition.

Maintaining and improving our internal control over financial reporting

7 unchanged sentences

the reporting requirements of

the Securities Exchange Act

the Securities Exchange

Sarbanes-Oxley Act

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new requirements could significantly increase our compliance costs.

Adverse litigation matters may adversely affect our business and our financial

Primarily these arise in the

normal course of business but are

subject to risks and uncertainties, and

litigation-related

may change in light of the discovery of facts not presently known to us or determinations by

judges, juries

or other finders of fact.

may also be subjected to legal matters not yet known to us.

or settlements of disputes may negatively impact our business, reputation

and financial condition.

If we fail to protect our trademarks and other intellectual property

rights or infringe the

intellectual property rights of others, our business, brand image,

growth strategy, results of

operations and financial condition could be adversely affected.

Trademark Office

registered, or

registration of,

additional trademarks

registrations

merchandising

label merchandise or

the infringement of

our other intellectual

property rights by

Infringement of

lesser quality or carries a negative connotation of

our image could adversely affect our business, financial

condition and results of operations.

ultimately successful, may result in costly litigation,

and if the Company is not successful in its defense, it

could be subject to

injunctions and liability for

damages or royalty obligations,

and the Company’s

profitability, cash flows, financial condition and reputation could be adversely affected.

Changes to accounting rules and regulations may adversely affect our reported

operations and financial condition.

reporting rules

and regulations

more frequent

and significant

interpretations

significantly

statements and

other participants

retail industry

Changes in tax and accounting laws and the mix and level of earnings

in any of the jurisdictions in

which we operate and the outcome of tax audits can cause fluctuations in

our overall tax rate,

which we operate and the outcome of tax audits can cause fluctuations in our overall

which impact our reported earnings.

8 unchanged sentences

Significant judgment is required to determine and estimate tax

determination

expense based

3 unchanged sentences

and foreign tax audits.

one time, many tax years

one time, many tax years are

jurisdictions.

20 unchanged sentences

condition, results of operations or cash flows.

Continued scrutiny and changing expectations surrounding sustainability

matters from investors,

customers, government regulators and other stakeholders may impose additional

requirements, additional costs and compliance risks.

Public companies

all industries

face scrutiny

from investors,

sustainability

sustainability,

complex reporting

obligations or

expectations could

costs associated

with compliance,

disclosure and

evolving laws,

expectations,

adversely affect our reputation, business or financial performance.

Risks Relating to Our Investments and Liquidity:

21 unchanged sentences

markets and changes in the

underlying economic, financial and other

underlying economic, financial and

other conditions

these factors.

19 unchanged sentences

revolving line

either generally

either generally or

market terms, may be

15 unchanged sentences

of credit and to execute our business strategy.

The terms of our asset-based revolving credit facility (“ABL Facility”)

restrict our operations and

The terms of our asset-based revolving credit facility (“ABL

Facility”) restrict our operations and

financial flexibility, which could adversely affect our ability to respond to changes in our business

22 unchanged sentences

make acquisitions, pay dividends and make other restricted

default, which

could adversely

payments, and enter into transactions with affiliates.

A failure by us to comply with these covenants could

occurrence of

12 unchanged sentences

Risks Relating to the Market Value of Our Common Stock:

The interests of our principal shareholder may limit the ability of other

shareholders to influence

the direction of the Company and otherwise affect our corporate governance and

the market price

of our common stock.

Our common stock

consists of two

Class A common

are entitled to one vote per share, and holders of Class B common stock are entitled to

10 votes per share,

on all matters to be voted on by our common shareholders.

All of the shares of Class B common stock are

beneficially owned by

a result, Mr.

significant economic interest in

Chief Executive

to substantially

determine the

outcome of all

matters requiring approval by

the shareholders, including the

election of directors

transactions.

have interests

shareholders and

shareholders disagree

concentration of

discourage potential

investors from

acquiring our

preventing, discouraging or

control might

shareholders generally.

This ownership

concentration may adversely

impact the trading

Class A common stock

perceptions of a

conflict of interest,

management of

Chief Executive

with these listing

standards even though

controlled company,

no assurance that

will continue

optional listing

utilize these

governance requirements and the market value of our common

stock could be adversely affected.

Our operating results are subject to seasonal and quarterly fluctuations,

16 unchanged sentences

requirements,

payment of quarterly dividends in November 2024 and may continue to suspend the

payment of dividends

payment of quarterly dividends in November 2024 and may continue to suspend the payment

if it deems such an action to

41 unchanged sentences

been unrelated to

the operating performance

the operating

performance of

those companies.

5 unchanged sentences

action litigation

make substantial

The threat of class action litigation could also cause the price of

our common stock to decline.

The interests of our principal shareholder may limit the ability of other

shareholders to influence

the direction of the Company and otherwise affect our corporate governance and

the market price

of our common stock.

Our common stock

consists of two

Class A common

are entitled to one vote per share, and holders of Class B common stock are entitled to

10 votes per share,

on all matters to be voted on by our common shareholders.

All of the shares of Class B common stock are

beneficially owned by

a result, Mr.

significant economic interest in

Chief Executive

to substantially

determine the

outcome of all

matters requiring approval by

the shareholders, including the

election of directors

transactions.

have interests

shareholders and

shareholders disagree

concentration of

discourage potential

investors from

acquiring our

preventing, discouraging or

control might

shareholders generally.

This ownership

concentration may adversely

impact the trading

Class A common stock

perceptions of a

conflict of interest,

management of

Chief Executive

with these listing

standards even though

controlled company,

no assurance that

will continue

optional listing

utilize these

governance requirements and the market value of our common

stock could be adversely affected.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors