Lumber Liquidators 2012 Annual Report Download - page 25

We may not be able to adequately protect our intellectual property, which could harm the value of our brands and impact
our business.
Our intellectual property is material to the conduct of our business. Our ability to implement our business plan
successfully depends in part on our ability to further build brand recognition using our trademarks, service marks and other
proprietary intellectual property, including our name and logo and the names and logos of our brands. We may incur
significant costs and expenses relating to our efforts to enforce our intellectual property rights. If our efforts to protect our
intellectual property are inadequate, or if any third party infringes on or misappropriates our intellectual property, the value
of our brands may be harmed, which could adversely affect our business and might prevent our brands from achieving or
maintaining market acceptance.
We may initiate claims or litigation against parties for infringement of our intellectual property rights or to establish the
invalidity, noninfringement, or unenforceability of the proprietary rights of others. Likewise, we may have similar claims or
litigation brought against us by competitors and others. Under either situation and regardless of any ultimate determination
on the merits, we could incur significant expense and be forced to divert the efforts of key employees from our operations.
Moreover, such claims or litigation could harm our image, brand or competitive position and cause us to incur significant
penalties and costs.
Risks Relating to Our Common Stock
Our common stock price may be volatile and you may lose all or part of your investment.
The market price of our common stock could fluctuate significantly. Those fluctuations could be based on various
factors in addition to those otherwise described in this report, including:
• our operating performance and the performance of our competitors;
• 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 and performance of our stores;
• the impact of inclement weather, natural disasters and other calamities;
• variations in general economic conditions;
• the timing and scope of sales promotions and product introductions;
• changes in consumer preferences and discretionary spending;
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