HOOKER Furnishings (HOFT) risk factors, FY2025 10-K

Other

1. 01Economic downturns could result in decreased sales, earnings and liquidity
2. 02◾ Potential future increases in tariffs or new tariffs imposed on other countries from which we source, including Vietnam, China, or Mexico, could adversely affect our business
3. 03◾ Our inability to accurately forecast demand for our imported products could cause us to purchase too much, too little or the wrong mix of inventory
4. 04◾ A disruption in supply from Vietnam or from our most significant suppliers in Asia could adversely affect our ability to timely fill customer orders for these products and decrease our sales, earnings and liquidity
5. 05◾ Increased transportation costs, including freight costs on imported products, could decrease earnings and liquidity
6. 06◾ Our dependence on suppliers could, over time, adversely affect our ability to service customers
7. 07◾ We are subject to changes in U.S. and foreign government regulations and in the political, social and economic climates of the countries from which we source our products
8. 08◾ Changes in the value of the U.S. Dollar compared to the currencies for the countries from which we obtain our imported products could adversely affect our sales, earnings, financial condition and liquidity
9. 09◾ Supplier transitions, including cost or quality issues, could result in longer lead times and shipping delays
10. 10We may fail to realize the benefits of HMI segment restructuring and cost-savings efforts
11. 11If demand for our domestically manufactured upholstered furniture declines, we may respond by realigning manufacturing or implementing cost-saving measures
12. 12A disruption affecting our domestic facilities could disrupt our business
13. 13Fluctuations in the price (including tariffs), availability or quality of raw materials for our domestically manufactured upholstered furniture could cause manufacturing delays, adversely affect our ability to provide goods to our customers or increase our costs
14. 14The implementation of our ERP system could disrupt our business
15. 15We may not be able to maintain, raise prices, or raise prices in a timely manner in response to inflation and increasing costs
16. 16We may experience impairment of our long-lived assets, which would decrease our earnings and net worth
17. 17Our sales and operating results could be adversely affected by product safety concerns
18. 18We may not be able to collect amounts owed to us
19. 19Our existing and future debt obligations could impair our liquidity and financial condition
20. 20Labor shortages and rising labor costs could disrupt operations at our domestic warehousing and manufacturing facilities
21. 21We may lose market share due to furniture retailers by-passing us and sourcing directly from non-U.S. furnishings sources
22. 22Failure to anticipate or timely respond to changes in fashion and consumer tastes could adversely impact our business
23. 23Our results of operations for any quarter are not necessarily indicative of our results of operations for a full year
24. 24The interruption, inadequacy or security failure of our information systems or information technology infrastructure or the internet or inadequate levels of cyber insurance could adversely impact our business, sales, earnings, financial condition and liquidity
25. 25Unauthorized disclosure of confidential information provided to us by our customers, employees, or third parties could harm our business