Lumber Liquidators 2015 Annual Report Download - page 3

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April 2016
Dear Shareholders,
Over the past year, we have reshaped and refocused Lumber Liquidators. We faced challenges on multiple fronts, from
legacy legal and regulatory issues, to management changes, to public criticisms about the quality and safety of some of
our products. We have met these headwinds with candor and determination, from the board room to the show room. We
also used these events as an opportunity to reiterate our commitment to our core values as a company. Since our founding
over two decades ago, we have built a competitive business model grounded on delivering great wood and exceptional
customer service. Despite the difficulties of 2015, this business model has been resilient, and our commitment to our
customers and our business has never been stronger.
Now we are engaged in the process of rebuilding. Our full-year results showed declines year over year, but we are
committed to the potential of our business, and believe we can return our company to growth and profitability. Over the
course of 2015, we took actions designed to move on from legacy issues, foster renewed confidence in our brand, and
strengthen our position in the market. We are focused on a few key priorities that we believe will provide a solid
foundation for years to come.
First, we will strengthen the performance of the stores across our network. This past year, we evaluated and took steps to
improve the sales process in the store, while optimizing our pricing strategy. Our aim is to maximize sales while delivering
an exceptional experience for customers. In early 2016, we were excited to bring aboard Dennis Knowles as our Chief
Operating Officer, and are confident in the energy and expertise he will bring to these initiatives. We believe these efforts
will improve sales performance at our individual locations, and bolster the financial and operational strength of our overall
business.
Second, we remain committed to our value proposition. Our historical successes have been driven by a commitment to a
quality and differentiated product, well-tailored flooring expertise, and competitive prices. Over the past several months,
we evaluated our offering to determine the right mix of products for today’s consumer, aligning our product portfolio
with customer demand across our regions. Store associate expertise is a key component of our value to customers, and so
a renewed emphasis on training is a top priority in the coming year.
A third component of our vision is to ensure that our customers have confidence in the quality and safety of every product
we sell. We took important steps to address quality, compliance, and regulatory issues in 2015. Jill Witter joined us as
Chief Compliance and Legal Officer and is strengthening compliance processes designed to enable us to source from
anywhere in the world with confidence. To that end, we are requalifying every vendor we do business with, and we are
reviewing all of our processes in an effort to establish best practices across the organization.
Finally, we believe there are some tangible ways to expand our business. We are taking steps to build out our service
offering for the growing “do-it-for-me” market. During the fourth quarter of 2015, we increased our focus on coordinating
installation services and received excellent customer feedback and increased revenues from those services.
Both our board and our management team are confident in the potential of our core business. By focusing on these
priorities, we believe we can enhance our relationships with our vendors and customers, and inspire fresh confidence in
the value of Lumber Liquidators. I want to thank our entire global organization for their dedication and ongoing efforts,
as well as our customers, suppliers, and shareholders for their continued support. I would especially like to thank Macon
Brock for his counsel and valued service to the Company as a member of our Board of Directors and wish him well in his
future endeavors. In summary, I am confident in our team, and look forward to building a thriving business in the years
to come.
John M. Presley
President and Chief Executive Officer