In the normal course of business, we are exposed to various market risks. Our primary market risks are interest rate risk associated with our variable rate debt and foreign currency exchange risk associated with our operations in Canada and Australia. We continually monitor these risks, regularly consider which risks need active management and, when appropriate, develop targeted risk management strategies. We manage our exposure to changes in interest rates and foreign exchange rates through the use of derivative financial instruments with the objective of reducing potential income statement, cash flow and market exposures. We use derivative financial instruments solely to mitigate market exposure and not for trading or speculative purposes. Refer to Note 5. Derivative Financial Instruments for additional information. 39 Table of Contents Interest rate risk Changes in interest rates affect the amount of interest due on our variable rate debt. As of July 4, 2026, we had variable rate borrowings on the 2025 Senior Secured Credit Facilities of $726.3 million and no advances under our 2025 Revolving Credit Facility. We currently use Term SOFR as a reference rate for our variable rate debt, and any future increases in Term SOFR will inherently result in an increase in interest expense and cash paid toward interest. We performed a sensitivity analysis to determine the effect of interest rate fluctuations on our interest expense. A hypothetical 1 percentage point increase in Term SOFR would result in an increase to interest expense of $7.3 million over 12 months based on amounts outstanding and interest rates in effect as of July 4, 2026. In September 2025, we executed interest rate swaps to reduce our exposure to fluctuations in interest rates by effectively converting a portion of our floating-rate debt to a fixed-rate basis. Based on the notional amount of interest rate swaps in effect and the amounts borrowed as of July 4, 2026, our exposure to future interest rate fluctuations will be reduced by 78.3%. The interest rate swaps are scheduled to mature on June 29, 2029. Foreign currency exchange risk In addition to our U.S. business, we operate in Canada and Australia. Operations conducted entirely in each jurisdiction use that jurisdiction’s currency as their functional currency and changes in foreign exchange rates affect the translation of the results of these businesses into the USD, which is the reporting currency of the Company. For the twenty-six weeks ended July 4, 2026, approximately 40.2% of our net sales were denominated in a currency other than the USD. For the twenty-six weeks ended July 4, 2026, a hypothetical 10% strengthening of the USD to the CAD would decrease our net sales by $28.2 million, and a hypothetical 10% weakening of the USD to the CAD would increase our net sales by $34.5 million. A hypothetical 10% change in the relative fair value of the USD to the AUD would not have a material impact on our operations. We will be susceptible to fluctuations in the USD compared to the CAD and the AUD if we do not hedge our exchange rate exposure. As such, we seek to manage the risk from changes in foreign currency exchange rates through the use of forward contracts, which are maintained on a rolling 12-month basis. As of July 4, 2026, $297.2 million of our USD-denominated borrowings is owed by one of our Canadian subsidiaries whose functional currency is the CAD. These borrowings expose the Company to earnings volatility due to remeasurement. For the twenty-six weeks ended July 4, 2026, a hypothetical 10% strengthening of the USD to the CAD would decrease net income by $27.0 million. For the twenty-six weeks ended July 4, 2026, a hypothetical 10% weakening of the USD to the CAD would increase net income by $33.0 million. In September 2025, we executed cross currency swaps to effectively convert $200.0 million of the USD-denominated borrowings into CAD-denominated borrowings. The cross-currency swaps are scheduled to mature on June 29, 2029.