Our discussions below in this Item 2 are based upon the more detailed discussions about our business, operations and financial condition included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, under Part II, Item 7 of that Form 10-K. Our discussions here focus on our results during the quarter and six months ended July 5, 2026, or as of July 5, 2026, and the comparable periods of 2025, and to the extent applicable, any material changes from the information discussed in that Form 10-K or other important intervening developments or information since that time. These discussions should be read in conjunction with that Form 10-K for more detailed and background information. The six-month period ended July 5, 2026 includes 27 weeks and the six-month period ended June 29, 2025 includes 26 weeks. The three-month periods ended July 5, 2026 and June 29, 2025 both include 13 weeks. Forward-Looking Statements This report contains statements which may constitute “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties associated with the economic conditions in the commercial interiors industry as well as the risks and uncertainties discussed under the heading “Risk Factors” included in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2025. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. 28 Table of Contents Executive Overview During the quarter ended July 5, 2026, we had consolidated net sales of $395.7 million, up 5.4% compared to $375.5 million in the second quarter last year, primarily due to higher customer demand— particularly in the corporate office, healthcare, and education market segments — and higher average sales prices. Fluctuations in currency exchange rates positively impacted net sales during the second quarter of 2026, as discussed below. Consolidated operating income was $74.9 million for the second quarter of 2026 compared to $52.0 million in the second quarter last year, primarily due to higher sales and higher gross profit margin driven by lower manufacturing costs on higher volume, production efficiencies, product mix, and IEEPA tariff refunds recognized during the current quarter as discussed below. Consolidated net income for the quarter ended July 5, 2026, was $51.4 million or $0.88 per diluted share, compared to $32.6 million or $0.55 per diluted share in the second quarter last year. During the first six months of 2026, we had consolidated net sales of $726.7 million, up 8.0% compared to $672.9 million in the first six months of last year, primarily due to higher customer demand partially driven by an extra week in the first six months of 2026. Consolidated operating income was $107.2 million for the first six months of 2026, compared to $75.3 million in the same period last year, primarily due to higher sales and higher gross profit margin, driven by lower manufacturing costs and tariff refunds as discussed above. Consolidated net income for the six months ended July 5, 2026, was $75.0 million or $1.28 per diluted share, compared to $45.6 million or $0.77 per diluted share in the same period last year. Impact of Macroeconomic Trends Ongoing disruptions in economic markets and global energy markets, inflation, the war between Russia and Ukraine, conflicts in the Middle East, evolving trade policies, impacts from government-imposed tariffs, a challenging supply chain environment, slow market conditions in certain parts of the globe and macro driven changes to customer demand for our products, significant financial pressures in the commercial office market globally, and other geopolitical factors, all pose challenges which may adversely affect our future performance. We plan to continue evaluating our cost structure and global manufacturing footprint to identify and activate opportunities to decrease costs and optimize our global cost structure. In 2025, the U.S. government enacted a series of higher trade tariffs on goods imported into the U.S. As a result, the Company incurred higher tariff costs on rubber and luxury vinyl tile products imported into the U.S. in fiscal year 2025 and in the first six months of 2026. In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were invalid. During the three months ended July 5, 2026, the Company recognized approximately $15.6 million in refunds for tariffs previously paid under the IEEPA. These refunds were recognized as a reduction to cost of sales in the consolidated condensed statements of operations. The Company also recorded approximately $0.5 million of interest income associated with these tariff refunds, presented as a reduction to interest expense, net in the consolidated condensed statements of operations. In the consolidated condensed balance sheets, the Company recorded $7.6 million as an accounts receivable as a portion of these tariff-related amounts recognized was not collected during the second quarter of 2026 but was realizable pursuant to the gain contingency guidance as of July 5, 2026, with the remainder of the tariff-related amounts recorded as an increase in cash. Any outstanding requests for IEEPA tariff refunds are not material. 29 Table of Contents Analysis of Results of Operations Consolidated Results The following table presents, as a percentage of net sales, certain items included in our consolidated condensed statements of operations for the three-month and six-month periods ended July 5, 2026 and June 29, 2025: Three Months Ended Six Months Ended July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025 Net sales 100.0 % 100.0 % 100.0 % 100.0 % Cost of sales 55.0 60.6 58.1 61.5 Gross profit 45.0 39.4 41.9 38.5 Selling, general and administrative expenses 26.1 25.5 27.1 27.3 Operating income 18.9 13.9 14.8 11.2 Interest/Other expense, net 1.0 2.1 1.1 2.1 Income before income tax expense 17.9 11.8 13.7 9.1 Income tax expense 4.9 3.1 3.4 2.3 Net income 13.0 % 8.7 % 10.3 % 6.8 % Consolidated Net Sales Below is information regarding our consolidated net sales, and analysis of those results, for the three-month and six-month periods ended July 5, 2026, and June 29, 2025: Three Months Ended Percentage Change Six Months Ended Percentage Change July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025 (in thousands) (in thousands) Consolidated net sales $ 395,698 $ 375,522 5.4 % $ 726,735 $ 672,935 8.0 % For the quarter ended July 5, 2026, consolidated net sales increased $20.2 million (5.4%) versus the comparable period in 2025, primarily due to higher sales volume (approximately 3%), higher average sales prices (approximately 1%), and favorable currency fluctuations (approximately $5.8 million or 1%) from the strengthening of foreign currencies against the U.S. dollar. On a market segment basis, the sales increase was primarily in the corporate office, healthcare, and education market segments. For the six months ended July 5, 2026, consolidated net sales increased $53.8 million (8.0%) versus the comparable period in 2025, primarily due to higher sales volume (approximately 4%) partially driven by an extra week in the first six months of 2026, favorable currency fluctuations (approximately $19.2 million or 3%) from the strengthening of the Euro against the U.S. dollar, and higher average sales prices (approximately 1%). On a market segment basis, the sales increase was primarily in the corporate office, healthcare, and education market segments. 30 Table of Contents Consolidated Cost and Expenses The following table presents our consolidated cost of sales and selling, general and administrative expenses for the three-month and six-month periods ended July 5, 2026, and June 29, 2025: Three Months Ended Percentage Change Six Months Ended Percentage Change July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025 (in thousands) (in thousands) Consolidated cost of sales $ 217,616 $ 227,545 (4.4) % $ 421,930 $ 413,995 1.9 % Consolidated selling, general and administrative expenses 103,166 95,930 7.5 % 197,559 183,666 7.6 % Consolidated Cost of Sales For the quarter ended July 5, 2026, consolidated cost of sales decreased $9.9 million (4.4%) compared to the second quarter of 2025, primarily due to lower manufacturing costs driven by favorable fixed cost absorption on higher volume, manufacturing efficiencies, and the impact of $15.6 million in IEEPA tariff refunds recognized in the current quarter, which were recorded as a reduction to cost of sales. These favorable impacts were partially offset by other tariff costs of $3.5 million recognized during the second quarter of 2026. Currency translation had a negative impact on consolidated cost of sales in the second quarter of 2026 and partially increased our costs by approximately $3.8 million (1.7%) compared to the same period last year. As a percentage of net sales, our cost of sales decreased to 55.0% for the second quarter of 2026 versus 60.6% for the second quarter of 2025. For the six months ended July 5, 2026, consolidated cost of sales increased $7.9 million (1.9%) versus the comparable period in 2025, primarily due to higher sales partially offset by the impact of tariff refunds and lower manufacturing costs as discussed above. Currency translation had a negative impact on consolidated cost of sales for the first six months of 2026 and partially increased our costs by approximately $12.4 million (3.0%) compared to the same period last year. As a percentage of net sales, our cost of sales decreased to 58.1% for the first six months of 2026 versus 61.5% for the first six months of 2025. Consolidated Gross Profit For the quarter ended July 5, 2026, gross profit, as a percentage of net sales, was 45.0% compared with 39.4% in the same period last year. The increase in gross profit percentage was primarily due to lower costs (approximately 5%) driven by tariff refunds recognized in the current quarter and lower manufacturing costs due to favorable fixed cost absorption and manufacturing efficiencies compared to the same period last year. For the six months ended July 5, 2026, gross profit, as a percentage of net sales, was 41.9% compared with 38.5% in the same period last year. The increase in gross profit percentage was primarily due to lower costs driven by the factors discussed above. Consolidated Selling, General and Administrative (“SG&A”) Expenses For the quarter ended July 5, 2026, consolidated SG&A expenses increased $7.2 million (7.5%) versus the comparable period in 2025. Currency fluctuations had a negative impact on consolidated SG&A expenses of approximately $1.1 million (1.2%) in the second quarter of 2026 compared to the same period last year. SG&A expenses were higher for the second quarter of 2026 primarily due to higher sales commissions and variable compensation of $7.6 million on improved operating results and higher labor costs of $1.6 million. These increases were partially offset by lower severance costs of $2.9 million due to employee reduction initiatives recognized in the comparable prior year period. As a percentage of net sales, SG&A expenses increased to 26.1% for the second quarter of 2026 versus 25.5% for the second quarter of 2025. For the six months ended July 5, 2026, consolidated SG&A expenses increased $13.9 million (7.6%) versus the comparable period in 2025. Currency translation had a negative impact on consolidated SG&A expenses of approximately $4.1 million (2.3%) in the first six months of 2026 compared to the same period last year. 31 Table of Contents SG&A expenses were higher for the first six months of 2026 primarily due to (i) higher variable compensation of $10.7 million; (ii) higher labor costs of $4.1 million; (iii) higher advertising costs of $1.3 million due to a new product launch; and (iv) higher professional fees of $1.3 million. These increases were partially offset by lower severance costs of $3.0 million due to employee reduction initiatives recognized in the comparable prior year period. As a percentage of net sales, SG&A expenses decreased to 27.1% for the first six months of 2026 versus 27.3% for the first six months of 2025. Interest Expense During the quarter ended July 5, 2026, interest expense was $2.4 million, a decrease of $2.1 million from the comparable period in 2025, primarily due to lower outstanding borrowings as our formerly outstanding senior notes were redeemed in December 2025. Lower interest rates on borrowings under the Facility also contributed to the decrease in interest expense. For the six months ended July 5, 2026, interest expense was $5.0 million, a decrease of $3.8 million from the comparable period in 2025, primarily due to lower outstanding borrowings as discussed above. Provision for Income Taxes The effective tax rate for the three and six months ended July 5, 2026, was 27.4% and 24.8%, respectively, compared to 26.3% and 25.6% for the same periods in 2025. The increase in the effective tax rate for the three months ended July 5, 2026, as compared to the same period in 2025, was primarily due to an increase in non-deductible employee compensation. The decrease in the effective tax rate for the six months ended July 5, 2026, as compared to the same period in 2025, was primarily due to higher excess tax benefits related to share-based compensation. Segment Operating Results AMS Segment – Net Sales and Adjusted Operating Income (“AOI”) The following table presents AMS segment net sales and AOI for the three-month and six-month periods ended July 5, 2026, and June 29, 2025: Three Months Ended Percentage Change Six Months Ended Percentage Change July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025 (in thousands) (in thousands) AMS segment net sales $ 247,666 $ 239,443 3.4 % $ 443,337 $ 419,380 5.7 % AMS segment AOI(1) 60,986 48,845 24.9 % 84,882 68,708 23.5 % (1) Includes allocation of corporate and global support SG&A expenses. Excludes restructuring, asset impairment, severance, and other, net. See Note 10 entitled “Segment Information” of Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information. During the second quarter of 2026, net sales in AMS increased 3.4% versus the comparable period in 2025, primarily due to higher sales volume and higher average blended sales prices on favorable price / mix. On a market segment basis, the AMS sales increase was primarily in the healthcare, corporate office, and retail market segments. During the first six months of 2026, net sales in AMS increased 5.7% versus the comparable period in 2025, primarily due to higher sales volume and favorable price / mix as discussed above. On a market segment basis, the AMS sales increase was primarily in the corporate office, healthcare, and retail market segments. AOI in AMS increased 24.9% during the second quarter of 2026 compared to the prior year period, primarily due to higher sales and gross profit margin mostly driven by tariff refunds recognized in the current quarter. As a percentage of net sales, AOI increased to 24.6% during the second quarter of 2026 compared to 20.4% in the same period last year. AOI in AMS increased 23.5% during the first six months of 2026 compared to the prior year period, primarily due to higher sales, higher gross profit margin as discussed above, and product mix. As a percentage of net sales, AOI increased to 19.1% during the first six months of 2026 compared to 16.4% in the same period last year. 32 Table of Contents EAAA Segment – Net Sales and AOI The following table presents EAAA segment net sales and AOI for the three-month and six-month periods ended July 5, 2026, and June 29, 2025: Three Months Ended Percentage Change Six Months Ended Percentage Change July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025 (in thousands) (in thousands) EAAA segment net sales $ 148,032 $ 136,079 8.8 % $ 283,398 $ 253,555 11.8 % EAAA segment AOI(1) 13,964 7,065 97.7 % 22,791 12,655 80.1 % (1) Includes allocation of corporate and global support SG&A expenses. Excludes purchase accounting amortization and restructuring, asset impairment, severance and other, net. See Note 10 entitled “Segment Information” of Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information. During the second quarter of 2026, net sales in EAAA increased 8.8% versus the comparable period in 2025, primarily due to higher sales volume and favorable currency fluctuations of approximately $5.8 million (4.3%) from the strengthening of foreign currencies against the U.S. dollar. On a market segment basis, the EAAA sales increase was primarily in the corporate office and education market segments. During the first six months of 2026, net sales in EAAA increased 11.8% versus the comparable period in 2025, primarily due to favorable currency fluctuations of approximately $18.6 million (7.3%) and higher sales volume. On a market segment basis, the EAAA sales increase was primarily in the corporate office and education market segments. AOI in EAAA increased 97.7% during the second quarter of 2026 versus the comparable period in 2025, primarily due to higher sales and gross profit margin driven by lower manufacturing costs and product mix. Currency fluctuations had no material impact on EAAA AOI for the second quarter of 2026 compared to the same period last year. As a percentage of net sales, AOI increased to 9.4% during the second quarter of 2026 compared to 5.2% in the same period last year. AOI in EAAA increased 80.1% during the first six months of 2026 versus the comparable period in 2025, primarily due to higher sales and gross profit margin as discussed above. Currency fluctuations had a positive impact on AOI of approximately $2.8 million (8.5%) for the first six months of 2026 compared to the same period in 2025. As a percentage of net sales, AOI increased to 8.0% during the first six months of 2026 compared to 5.0% in the same period last year. 33 Table of Contents Financial Condition, Liquidity and Capital Resources General At July 5, 2026, the Company had $81.5 million in cash. At that date, the Company had $171.1 million in term loan borrowings, $33.1 million in revolving loan borrowings, and $0.6 million in letters of credit outstanding under our Facility. As of July 5, 2026, we had additional borrowing capacity of $216.3 million under the Facility. We anticipate that our liquidity is sufficient to meet our obligations for the next 12 months, and we expect to generate sufficient cash to meet our long-term obligations. Balance Sheet Accounts receivable, net, were $210.0 million at July 5, 2026, compared to $174.5 million at December 28, 2025. The increase of $35.5 million was primarily due to the impact of higher net sales as a result of increased customer demand in the second quarter of 2026. The Company also recorded a $7.6 million accounts receivable related to IEEPA tariff refunds. Inventories, net, were $291.6 million at July 5, 2026, compared to $275.0 million at December 28, 2025. The increase of $16.6 million was primarily due to higher work in process and finished goods inventory driven by increased production volumes and higher customer demand. Analysis of Cash Flows The following table presents a summary of cash flows for the six-month periods ended July 5, 2026 and June 29, 2025, respectively: Six Months Ended July 5, 2026 June 29, 2025 (in thousands) Net cash provided by (used in): Operating activities $ 51,888 $ 41,867 Investing activities (22,527) (14,821) Financing activities (17,848) (13,740) Effect of exchange rate changes on cash (1,308) 9,169 Net change in cash and cash equivalents 10,205 22,475 Cash and cash equivalents at beginning of period 71,323 99,226 Cash and cash equivalents at end of period $ 81,528 $ 121,701 Cash provided by operating activities was $51.9 million for the six months ended July 5, 2026, which represents an increase of $10.0 million from the prior year comparable period, primarily attributable to higher net income for the six months ended July 5, 2026, partially offset by a higher use of cash related to inventory build and accounts receivable as discussed above. Cash used in investing activities was $22.5 million for the six months ended July 5, 2026, which represents an increase of $7.7 million from the prior year comparable period, primarily attributable to a greater capital investment in manufacturing automation and robotics solutions during the first six months of 2026. Cash used in financing activities was $17.8 million for the six months ended July 5, 2026, which represents an increase of $4.1 million from the prior year comparable period. The year-over-year increase was primarily due to higher outstanding borrowings under the credit facility resulting in higher repayments and increased repurchases of common stock, during the first six months of 2026 compared to the prior year. 34 Table of Contents Share Repurchases In May 2022, the Company adopted a share repurchase program in which the Company is authorized to repurchase up to $100 million of its outstanding shares of common stock. The program has no specific expiration date. During the six months ended July 5, 2026, the Company repurchased 771,125 shares of common stock at a weighted average price of $26.90 per share pursuant to this program. Outlook We anticipate revenue growth in the third quarter of fiscal 2026 compared to the prior year comparable period. We anticipate that our third quarter and the remainder of fiscal 2026 will be impacted by higher raw material costs, higher energy costs, and higher costs to procure our luxury vinyl tile products amid increased global macro-economic uncertainty. We are activating initiatives to offset these impacts through incremental pricing and productivity. Cash flows from operations, cash and cash equivalents, and other sources of liquidity are expected to be available and sufficient to meet foreseeable cash requirements. However, the Company’s cash flows from operations can be affected by numerous factors including raw material availability and cost, and demand for our products. Backlog As of July 20, 2026, the consolidated backlog of unshipped orders was approximately $269.1 million. As disclosed in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, backlog was approximately $222.8 million as of February 2, 2026. Historically, backlog is subject to significant fluctuations due to the timing of orders for individual large projects. Disruptions in supply and distribution chains or delays in construction projects and flooring installations worldwide have caused, and may continue to cause, fluctuations in our backlog. 35 Table of Contents