HOOKER Furnishings (HOFT) risk factors, FY2026 10-K

Other

1. 01Economic downturns could result in decreased sales, earnings and liquidity69% rewritten
2. 02These factors also impact retailers, who are our primary customers. If our retail customers experience reduced consumer demand, increased financial pressure, or inventory adjustments in response to economic conditions, our sales, earnings, financial condition and liquidity could be adversely affectedNew
3. 03◾ 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 business84% rewritten
4. 04◾ Our inability to accurately forecast demand for our imported products could cause us to purchase too much, too little or the wrong mix of inventory20% rewritten
5. 05◾ 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
6. 06◾ Increased transportation costs, including freight costs on imported products, could decrease earnings and liquidity22% rewritten
7. 07◾ Our dependence on suppliers could, over time, adversely affect our ability to service customers
8. 08◾ 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
9. 09◾ 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
10. 10◾ Supplier transitions, including cost or quality issues, could result in longer lead times and shipping delays59% rewritten
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. 14We may not be able to maintain, raise prices, or raise prices in a timely manner in response to inflation and increasing costs
15. 15We may experience impairment of our long-lived assets, which would decrease our earnings and net worth61% rewritten
16. 16Our sales and operating results could be adversely affected by product safety concerns
17. 17We may not be able to collect amounts owed to us
18. 18Our existing and future debt obligations could impair our liquidity and financial condition
19. 19Labor shortages and rising labor costs could disrupt operations at our domestic warehousing and manufacturing facilities72% rewritten
20. 20We may lose market share due to furniture retailers by-passing us and sourcing directly from non-U.S. furnishings sources
21. 21Failure to anticipate or timely respond to changes in fashion and consumer tastes could adversely impact our business
22. 22Our results of operations for any quarter are not necessarily indicative of our results of operations for a full year
23. 23The 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
24. 24Unauthorized disclosure of confidential information provided to us by our customers, employees, or third parties could harm our business
25. 25We may fail to realize the benefits of the sale of Pulaski Furniture and Samuel Lawrence casegoods brandsNew