12 unchanged sentences
In addition, in response to 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.
−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 either full or part-time, and we cannot be certain that our mitigation efforts will be effective.
+Added: Although we continue to implement strong physical and cyber security 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 cyber attacks 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.
9 unchanged sentences
Multi-employer pension plans are managed by trustee boards comprised of participating employer and labor union representatives, and the employers participating in a multi-employer pension plan are jointly responsible for maintaining the plan’s funding requirements.
−Removed: Based on the most recent information available to the Company, the present value of actuarially accrued liabilities of the multi-employer pension plan substantially exceeds the value of the assets held in trust to pay benefits.
+Added: on the most recent information available to the Company, the present value of actuarially accrued liabilities of the multi-employer pension plan substantially exceeds the value of the assets held in trust to pay benefits.
As a result of the Company’s participation, it could experience greater volatility in the overall pension funding obligations.
10 unchanged sentences
At June 30, 2024, we had $36.7 million in property, plant and equipment and $61.4 million in right of use assets associated with leased facilities.
−Removed: These definite-lived assets are tested for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable.
+Added: These long-lived assets are tested for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable.
The outcome of impairment testing could result in the write-down of all or a portion of the value of these assets.
2 unchanged sentences
A write-down of all or a portion of the value of the Mexicali right of use asset could have a material impact on our earnings in the period of impairment.
−Removed: At June 30, 2023 the Company does not believe any impairment indicators exist due to current and expected sublease tenants and plans for future operations but impairment assessment involves the use of considerable judgement and any change in future market or economic conditions could cause actual results to differ.
+Added: At June 30, 2024 the Company does not believe any impairment indicators exist due to current and expected sublease tenants and plans for future operations but impairment assessment involves the use of considerable judgment and any change in future market or economic conditions could cause actual results to differ.
The Company’s success depends on its ability to recruit and retain key employees and highly skilled workers in a competitive labor market.
2 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: Ongoing or future communicable diseases increase the risk that certain senior executive officers or a member of the board of directors could become ill,
−Removed: causing them to be incapacitated or otherwise unable to perform their duties for an extended absence.
+Added: Ongoing or future communicable diseases increase 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.
This could negatively impact the efficiency and effectiveness of processes and internal controls throughout the Company and our ability to service customers.
We may not be able to collect amounts owed to us.
−Removed: We grant payment terms between 10 and 60 days to customers, often without requiring collateral.
−Removed: Due to ongoing global 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.
+Added: We generally grant payment terms between 10 and 60 days to customers, often without requiring collateral.
Some of our customers have experienced, and may in the future experience, cash flow and credit-related issues.
+Added: In the event of negative economic events such as supply chain disruptions, weather events or natural disasters, public health events or other unforeseen issues with negative economic impact to our customers, which have occurred in the past, we may not be able to collect amounts owed to us.
While we perform credit evaluations of our customers, those evaluations may not prevent uncollectible trade accounts receivable.
Credit evaluations involve significant management diligence and judgment, especially in the current environment.
−Removed: Should more customers experience liquidity issues than we anticipate, if payment is not received on a timely basis, or if a customer declares bankruptcy or closes stores, we may have difficulty collecting amounts owed to us by these customers, which could adversely affect our sales, earnings, financial condition, and liquidity.
+Added: Should customers experience liquidity issues beyond what we anticipate, if payment is not received on a timely basis, or if a customer declares bankruptcy or closes stores, we may have difficulty collecting amounts owed to us by these customers, which could adversely affect our sales, earnings, financial condition, and liquidity.
+Added: In addition, we have receivables for recoverable value added tax paid under such regimes in foreign jurisdictions, primarily Mexico.
+Added: The collection of these amounts are subject to approval by foreign governmental agencies who evaluate the claims.
+Added: Any actions taken by those agencies to delay, limit or deny the amounts submitted or retroactive changes in legislation surrounding these regimes may impact our ability to recover these amounts.
Risks related to our industry:
−Removed: The impact of COVID-19 or similar pandemics could 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.
+Added: Public health events could 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.
During the initial height of the COVID-19 pandemic, purchases of home furnishings were heavily impacted as they are largely deferable and heavily influenced by consumer sentiment.
1 unchanged sentence
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.
−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 transportation costs, as well as decreased consumer spending and decreased demand for our products.
−Removed: A resurgence of the COVID-19 pandemic or other public health emergency 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.
−Removed: Continuing inflation and changes in foreign currency may impact our profitability.
+Added: Our suppliers and customers may also face these and other challenges, which have and could to lead to a future 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.
+Added: Inflation and changes in foreign currency 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.
−Removed: Continued imbalances between supply and demand for these resources may continue to exert upward pressure on costs.
+Added: Imbalances between supply and demand for these resources may continue to exert upward pressure on costs.
The Company purchases raw materials, component parts, and certain finished goods from foreign external suppliers.
5 unchanged sentences
The wages of our employees and certain other employee benefit and indirect costs are made in Pesos.
−Removed: The Company does not employ any foreign currency hedges against this exposure.
A negative shift in the value of the U.S.
dollar against the Peso could increase the cost of manufacturing.
+Added: In addition, the Company has certain asset and liabilities related to our manufacturing operations which are denominated in pesos, primarily our VAT receivable for recoverable VAT paid in Mexico.
+Added: A negative shift in the value of the Peso against the U.S.
+Added: dollar could result in the value of our receivable decreasing which may impact our earnings.
Our ability to recover these cost increases through price increases may continue to lag the cost increases, resulting in downward pressure on margins.
8 unchanged sentences
Many of these suppliers are dependent upon other suppliers in countries other than where they are located.
−Removed: This global interdependence
−Removed: within the Company’s supply chain is subject to delays in delivery, availability, quality, and pricing.
+Added: This global interdependence within the Company’s supply chain is subject to delays in delivery, availability, quality, and pricing.
Changes in international trade policies including tariffs, access to ports and border crossings, or railways could disrupt the supply chain, increase cost and reduce competitiveness.
−Removed: The delivery of goods from these suppliers has been and may continue to be delayed by customs, labor issues, availability of third-party transportation and equipment, geo-political pressures, changes in political, economic, and social conditions, weather, laws, and regulations.
+Added: The delivery of goods from these suppliers has been and may continue to be delayed by customs, labor issues, availability of third-party transportation and equipment, geopolitical pressures, changes in political, economic, and social conditions, weather, laws, and regulations.
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.
4 unchanged sentences
The main foreign countries we source from are Vietnam, China, Thailand, and Mexico.
−Removed: It is unclear how our supply chain could be further impacted by COVID-19, including the spread of new variants, and there are many unknowns including how long we could be impacted, the severity of the impacts, and the probability of a recurrence of COVID-19 or similar regional or global pandemics.
If we were unsuccessful in obtaining those products from other sources or at comparable cost, a disruption in our supply chain could adversely affect our sales, earnings, financial condition, and liquidity.
8 unchanged sentences
Also, due to the large number of competitors and their wide range of product offerings, the Company may not be able to significantly differentiate its products (through styling, finish, and other construction techniques) from those of its competitors.
−Removed: Additionally, most of our sales are to distribution channels that rely on physical stores to merchandise and sell our products and an involuntary shut down of those stores due to COVID-19 or similar pandemic or a significant shift in consumer preference toward purchasing products online could have a materially adverse impact on our sales and operating margin.
+Added: Additionally, most of our sales are to distribution channels that rely on physical stores to merchandise and sell our products and an involuntary shut down of those or a significant shift in consumer preference toward purchasing products online could have a materially adverse impact on our sales and operating margin.
These and other competitive pressures could cause us to lose market share, revenues, and customers, increase expenditure or reduce prices, any of which could have a material adverse effect on our results of operations or liquidity.
4 unchanged sentences
Furniture is a styled product and is subject to rapidly changing consumer and end-user trends and tastes and is highly fashion oriented.
−Removed: 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.
+Added: If the Company is not able to acquire sufficient cover 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.
Use of social media to disseminate negative commentary may adversely impact the Company’s reputation and business.
−Removed: There has been a substantial increase in the use of social media platforms, including blogs, social media websites, and other forms of internet-based communications, which allow individuals to access a broad audience of consumers and other interested persions.
−Removed: Negative commentary regarding the Company or its products may be posted on social media platforms at any time and may have an adverse impact on its reputation, business, or relationships with third parties, including suppliers, customers, investors, and lendors.
−Removed: value readily available information and often act on such information without further investigation and without regard to its accuracy or context.
+Added: There has been a substantial increase in the use of social media platforms, including blogs, social media websites, and other forms of internet-based communications, which allow individuals to access a broad audience of consumers and other interested persons.
+Added: Negative commentary regarding the Company or its products may be posted on social media platforms at any time and may have an adverse impact on its reputation, business, or relationships with third parties, including suppliers, customers, investors, and lenders.
+Added: Consumers value readily available information and often act on such information without further investigation and without regard to its accuracy or context.
The harm may be immediate without affording the Company an opportunity for redress or correction.
−Removed: 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.