Lumber Liquidators 2011 Annual Report Download - page 25

• the public’s reaction to our press releases, our other public announcements and our filings with the SEC;
• changes in earnings estimates or recommendations by research analysts who follow Lumber Liquidators or other
companies in our industry;
• variations in general economic conditions;
• actions of our current stockholders, including sales of common stock by our directors and executive officers;
• the arrival or departure of key personnel; and
• other developments affecting us, our industry or our competitors.
In addition, the stock market may experience significant price and volume fluctuations. These fluctuations may be
unrelated to the operating performance of particular companies but may cause declines in the market price of our common
stock. The price of our common stock could fluctuate based upon factors that have little or nothing to do with our company
or its performance.
Our quarterly operating results may fluctuate significantly and could fall below the expectations of research analysts and
investors due to various factors.
Our quarterly operating results may fluctuate significantly because of various factors, including:
• changes in comparable store net sales and customer visits, including as a result of declining consumer confidence
or the introduction of new products;
• the timing of new store openings and related sales and expenses;
• profitability of our stores, especially in new markets;
• the impact of inclement weather, natural disasters and other calamities;
• variations in general economic conditions, including the impact of interest rates on our interest income;
• the timing and scope of sales promotions and product introductions;
• changes in consumer preferences and discretionary spending;
• fluctuations in supply prices; and
• tax expenses, impairment charges and other non-operating costs.
Due to these factors, results for any one quarter are not necessarily indicative of results to be expected for any other
quarter or for any year. Average store net sales or comparable store net sales in any particular future period may decrease. In
the future, operating results may fall below the expectations of research analysts and investors, which could cause the price
of our common stock to fall.
Risk Related to Accounting Standards
Changes in accounting standards and subjective assumptions, estimates and judgments by management related to
complex accounting matters could significantly affect our financial results.
Generally accepted accounting principles and related accounting pronouncements, implementation guidelines and
interpretations with regard to a wide range of matters that are relevant to our business, including but not limited to, revenue
recognition, stock-based compensation, lease accounting, sales returns reserves, inventories, self-insurance, income taxes,
unclaimed property laws and litigation, are highly complex and involve many subjective assumptions, estimates and
judgments by our management. Changes in these rules or their interpretation or changes in underlying assumptions, estimates
or judgments by our management could significantly change our reported or expected financial performance.
Item 1B. Unresolved Staff Comments.
None.
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