Item 1A. Risk Factors
ITEM 1A. Risk Factors
We are exposed to certain risks and uncertainties that could have a material adverse impact on our business, financial condition and operating results. Except as set forth below, there have been no material changes to the Risk Factors described in Part I, Item 1A-Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024.
Recently enacted tariffs may have a material adverse impact on our business
In recent months, significant new and expanded tariffs, reciprocal tariffs and other trade restrictions have been imposed with selective tariff exemptions impacting global trade. The tariffs and other trade restrictions between the U.S. and China have escalated and include high tariff and reciprocal tariff rates. We purchase or manufacture our products in Haiti, China, Madagascar, Kenya, Vietnam, Pakistan and Bangladesh. Demand for our products may be adversely impacted if we are unable to share the cost increases with our suppliers and third-party manufacturers or pass along the remaining cost increases to our customers. The continuation or expansion of the U.S. tariffs on China, and the expansion of U.S. tariffs on other countries in which we manufacture, could have a material adverse impact on our revenue, operations, financial position and cash flows.
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