Lumber Liquidators 2013 Annual Report Download - page 30

We may initiate claims or litigation against parties for infringement of our intellectual property rights or
to establish the invalidity, non-infringement, 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 all or part of any investment in our common stock may be
lost.
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 filings with the SEC, our press releases and other public announcements;
• changes in recommendations or earnings estimates 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 transactions, including as a result of declining
consumer confidence or the introduction of new products;
• the timing of new store openings and related net sales and expenses;
• profitability and performance of our stores;
• the timing of remodels and relocations of existing stores and related net sales and expenses;
• 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;
• 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.
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