15
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of
1995 provides a safe harbor for forward-looking
statements made by or on behalf
of the Company. We may from time to
time make written or oral statements that
are “forward-looking,” including statements
contained in this report and other filings
with the SEC, in our press releases,
and in
other reports to our shareholders.
All statements, other than
statements of historical fact,
which address activities,
events
events or developments
that we
expect or
expect or anticipate will
or may
occur in the
future are forward-looking
statements. The words
“plan”, “estimate”, “project”,
“forecast”, “outlook”, “anticipate”, “expect”,
“intend”, “remain”,
“seek", “believe”, “may”, “should” and similar expressions, and discussions
of strategy or intentions, are intended to identify forward-looking
statements.
Forward-looking statements
are neither
historical facts
nor assurances
of future
performance. Instead,
they are
based on
our current
expectations and
are necessarily
dependent upon assumptions, estimates and data that we believe are reasonable and accurate but may
be incorrect, incomplete or imprecise. Forward-looking statements
are subject to a number of business risks and inherent uncertainties, any of which could cause actual results to differ materially from those set
forth in or implied by the
forward-looking statements. Therefore,
you should not rely on
any of these forward-looking
statements. Important factors that
could cause our actual results
and financial
condition to differ materially from those indicated in forward-looking
statements include, among others, the following:
●
the general U.S. and international economic conditions;
●
the
impact of
the
COVID-19 pandemic
on
our
operations,
financial condition,
liquidity,
and
capital investments,
including recent
labor
shortages,
inventory constraints, and supply chain disruptions;
●
significant interruptions or disruptions within our manufacturing,
distribution or other operations;
●
deterioration in the financial condition of our customers and suppliers
and changes in the operations and strategies of our customers
and suppliers;
●
the volatility and uncertainty of cotton and other raw material
prices and availability;
●
the competitive conditions in the apparel industry;
●
our ability to predict or react to changing consumer preferences
or trends;
●
our ability to successfully open and operate new retail stores in
a timely and cost-effective manner;
●
the ability to grow, achieve synergies and realize the expected profitability of acquisitions;
●
changes in economic, political or social stability at
our offshore locations or in areas in which we, or our suppliers
or vendors, operate;
●
our ability to attract and retain key management;
●
the volatility and uncertainty of energy, fuel and related costs;
●
material disruptions in our information systems related to our
business operations;
●
compromises of our data security;
●
significant changes in our effective tax rate;
●
significant litigation in either domestic or international jurisdictions;
●
recalls, claims and negative publicity associated with product
liability issues;
●
the ability to protect our trademarks and other intellectual
property;
●
changes in international trade regulations;
●
our ability to comply with trade regulations;
●
changes in employment laws or regulations or our relationship
with employees; or our ability to attract and retain
employees;
●
negative publicity
resulting from violations
of manufacturing standards
or labor
laws or
unethical business practices
by our
suppliers or independent
contractors;
●
the inability of suppliers or other third-parties, including those providing key equipment, transportation, and other services, to perform their obligations
or fulfill the terms of their contracts with us;
●
restrictions on our ability to borrow capital or service our
indebtedness;
●
interest rate fluctuations increasing our obligations under our
variable rate indebtedness;
●
the ability to raise additional capital;
●
the impairment of acquired intangible assets;
●
foreign currency exchange rate fluctuations;
●
the illiquidity of our shares; and
●
price volatility in our shares and the general volatility of the stock
market.
A detailed discussion
of significant risk
factors that have
the potential to
cause actual results
to differ materially
from our expectations
is
is set forth
in
in Part 1
under
under the
subheading "Risk Factors" in our
Annual Report on Form 10-K
for fiscal 2022, filed with
the SEC. Any forward-looking statements
in this Quarterly Report on
Form 10-
Q do not purport to be predictions
of future events or circumstances and
may not be realized. Further, any forward-looking
statements are made only as
of the date of this
Quarterly Report on Form 10-Q, and we do not undertake to
publicly update or revise the forward-looking statements,
except as required by the federal securities law.