9 unchanged sentences
Additionally, the Company collects and stores certain data, including proprietary business information, and may have access to confidential or personal information in certain areas of its businesses that is subject to privacy and security laws, regulations, and customer-imposed controls.
−Removed: While security breaches and other disruptions to the Company’s information technology networks and infrastructure could happen, none have occurred to date that have had a material impact to the Company.
+Added: While security breaches and other disruptions to the Company’s information technology networks and infrastructure could happen, none have occurred to date that has had a material impact on the Company.
Any such events could result in legal claims or proceedings, liability or penalties under privacy laws, disruption in operations, and damage to the Company’s reputation, which could adversely affect the Company’s business.
−Removed: In addition, due to the COVID-19 pandemic, we have allowed certain of our employees the option to work from home.
−Removed: Although we continue to implement strong physical and cybersecurity measures to ensure that our business operations remain functional and to ensure uninterrupted service to our customers, our systems and our operations remain vulnerable to cyberattacks and other disruptions because a material portion of our employees work remotely as a result of the ongoing COVID-19 pandemic, and we cannot be certain that our mitigation efforts will be effective.
+Added: In addition, in response to the COVID-19 pandemic and shifts in employee workplace preferences, we have allowed certain of our employees the option of a hybrid work schedule where they may choose to work partially from home.
+Added: Although we continue to implement strong physical and cybersecurity measures to ensure that our business operations remain functional and to ensure uninterrupted service to our customers, our systems and our operations remain vulnerable to cyberattacks and other disruptions because a material portion of our employees work remotely either full or part-time, and we cannot be certain that our mitigation efforts will be effective.
The implementation of a new business information system could disrupt the business.
−Removed: The Company converted certain financial modules from its legacy ERP system to SAP during fiscal 2021, and it plans to convert additional modules in fiscal 2022, which include ordering, sourcing, warehousing and transportation.
−Removed: Implementation issues related to the new ERP system could arise and may result in the following:
+Added: The Company continues to migrate business and financial processes from ERP systems to SAP.
+Added: The Company takes great care in the planning and execution of these migrations, however, implementation issues related to the transition could arise and may result in the following:
Disruption of the Company’s domestic and international supply chain;
Inability to fill customer orders accurately and on a timely basis;
−Removed: Inability to process payments to suppliers and vendors;
Negative impact on financial results;
19 unchanged sentences
Losing the services of one or more key members of our management team or other key personnel could adversely affect our operations.
−Removed: In addition, COVID-19 increases the risk that certain senior executive officers or a member of the board of directors could become ill, causing them to be incapacitated or otherwise unable to perform their duties for an extended absence.
+Added: In addition, the ongoing impact of COVID-19, or risk of similar communicable disease in the future, increases the risk that certain senior executive officers or a member of the board of directors could become ill, causing them to be incapacitated or otherwise unable to perform their duties for an extended absence.
Furthermore, because of the nature of the disease, multiple people working in close proximity could also become ill simultaneously which could result in the same department having extended absences or a temporary shutdown of one or more of our manufacturing facilities or distribution centers.
This could negatively impact the efficiency and effectiveness of processes and internal controls throughout the Company and our ability to service customers.
−Removed: We have implemented work-from-home policies for certain employees.
−Removed: The effects of our work-from-home policies may negatively impact productivity and disrupt our business, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on our ability to conduct our business in the ordinary course.
Terms of collective bargaining agreements and labor disruptions could adversely impact results of operations.
4 unchanged sentences
We grant 30-day payment terms to most customers.
−Removed: As a result of the COVID-19 pandemic, some customers have requested extended payment terms or informed us they will not pay amounts within agreed upon terms.
+Added: As a result of the COVID-19 pandemic, supply chain issues and inflationary cost pressures, some customers have requested extended payment terms or informed us they will not pay amounts within agreed upon terms.
Some of our customers have experienced, and may in the future experience, cash flow and credit-related issues.
4 unchanged sentences
Risks related to our industry:
−Removed: The COVID-19 pandemic could have a material adverse effect on our ability to operate, our ability to keep employees safe from the pandemic, our results of operations, and financial condition.
+Added: The COVID-19 pandemic could continue to have a materially adverse effect on our ability to operate, our ability to keep employees safe from the pandemic, our results of operations, and financial condition.
On March 11, 2020, the World Health Organization declared the current coronavirus (“COVID-19”) outbreak to be a global pandemic, and the virus continues to spread in areas where we operate and sell our products.
−Removed: The COVID-19 pandemic and similar issues in the future could have a material adverse effect on our ability to operate;
−Removed: our ability to keep employees safe from the pandemic;
−Removed: our results of operations, and financial condition.
+Added: The COVID-19 pandemic and similar issues in the future could have a material adverse effect on our ability to operate, our ability to keep employees safe from the pandemic, our results of operations, and financial condition.
Public health organizations have recommended, and many governments have implemented, measures from time-to-time during the pandemic to slow and limit the transmission of the virus, including certain business shutdowns and shelter in place and social distancing requirements.
−Removed: Such preventive measures, or others we may voluntarily put in place, may have a material adverse effect on our business for an indefinite period of time, such as:
−Removed: the potential shut down of certain locations;
−Removed: decreased employee availability;
−Removed: potential border closures;
−Removed: and disruptions to the businesses of our selling channel partners, and others.
−Removed: Our suppliers and customers also face these and other challenges, which have and could continue to lead to a disruption in our supply chain, raw material inflation or the inability to get the raw materials necessary to produce our products, increased shipping, and transport costs, as well as decreased consumer spending and decreased demand for our products.
+Added: Such preventive measures, or others we may voluntarily put in place, may have a material adverse effect on our business for an indefinite period of time, such as the potential shut down of certain locations, decreased employee availability, potential border closures, and disruptions to the businesses of our selling channel partners, and others.
+Added: Our suppliers and customers also face these and other challenges, which have and could continue to lead to a disruption in our supply chain, raw material inflation or the inability to get the raw materials necessary to produce our products, increased shipping, and transportation costs, as well as decreased consumer spending and decreased demand for our products.
Although these disruptions may continue to occur, the long-term economic impact and near-term financial impacts of the COVID-19 pandemic, including but not limited to, potential near-term or long-term risk of asset impairment, restructuring, and other charges, cannot be reliably quantified or estimated at this time due to the uncertainty of future developments.
−Removed: Continuing inflation may hurt our profitability.
+Added: Continuing inflation may impact our profitability.
Cost inflation including significant increases in ocean container rates, raw materials prices, labor rates, and domestic transportation costs have and could continue to impact profitability.
1 unchanged sentence
Our ability to recover these cost increases through price increases may continue to lag the cost increases, resulting in downward pressure on margins.
+Added: In addition, price increases to offset rising costs could negatively impact demand for our products.
+Added: The Company’s products are considered deferrable purchases for consumers during economic downturns.
+Added: Prolonged negative economic conditions could impact the business.
+Added: Economic downturns and prolonged negative economic conditions could affect consumer spending habits by decreasing the overall demand for home furnishing products.
+Added: These events could impact retailers resulting in an impact on the Company’s business.
+Added: A recovery in the Company’s sales could lag significantly behind a general economic recovery due to the deferrable nature and relatively significant cost of purchasing home furnishing products.
Future success depends on the Company’s ability to manage its global supply chain.
4 unchanged sentences
The delivery of goods from these suppliers has been and may continue to be delayed by customs, labor issues, geo-political pressures, disruptions associated with the COVID-19 pandemic, changes in political, economic, and social conditions, weather, laws and regulations.
−Removed: Unfavorable fluctuations in price, international trade policies, quality, delivery, and availability of these products could continue to adversely affect the Company’s ability to meet demands of customers and cause negative impacts to the Company’s cost structure, profitability and its cash flow.
+Added: Unfavorable fluctuations in
+Added: price, international trade policies, quality, delivery, and availability of these products could continue to adversely affect the Company’s ability to meet demands of customers and cause negative impacts to the Company’s cost structure, profitability and its cash flow.
Enacted tariffs and potential future increases in tariffs on manufactured goods imported from China or other countries could adversely affect our business.
30 unchanged sentences
If the Company is not able to acquire sufficient fabric variety or if the Company is unable to predict or respond to changes in fashion trends, it may lose sales and have to sell excess inventory at reduced prices.
−Removed: The Company’s products are considered deferrable purchases for consumers during economic downturns.
−Removed: Prolonged negative economic conditions could impact the business.
−Removed: Economic downturns and prolonged negative economic conditions could affect consumer spending habits by decreasing the overall demand for home furnishing products.
−Removed: These events could impact retailers resulting in an impact on the Company’s business.
−Removed: A recovery in the Company’s sales could lag significantly behind a general economic recovery due to the deferrable nature and relatively significant cost of purchasing home furnishing products.
Unresolved Staff Comments
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.