Petsmart 2010 Annual Report Download - page 24

Fluctuations in the stock market, as well as general economic and market conditions, may impact our
operations, sales, financial results and market price of our common stock.
Over the last several years, the market price of our common stock has been subject to significant fluctuations.
The market price of our common stock may continue to be subject to significant fluctuations in response to the
impact on our operations, sales and financial results of a variety of factors including, but not limited to:
• General economic changes;
• Actions taken by our competitors, including new product introductions and pricing changes;
• Changes in the strategy and capability of our competitors;
• Our ability to successfully integrate acquisitions;
• The prospects of our industry;
• Natural disasters, hostilities and acts of terrorism; and
• National or regional catastrophes or circumstances, such as a pandemic or other public health or welfare
scare.
In addition, the stock market in recent years has experienced price and volume fluctuations that often have
been unrelated or disproportionate to the operating performance of companies. These fluctuations, as well as
general economic and market conditions, including but not limited to those listed above, may harm the market price
of our common stock. Further, a change in an analyst’s published opinion or rating of our business could impact the
market price of our common stock.
Continued volatility and disruption to the global capital and credit markets may adversely affect our ability
to access credit and the financial soundness of our suppliers.
Financial turmoil affecting the banking system and financial markets and the risk that additional financial
institutions may consolidate or become insolvent has resulted in a tightening in the credit markets, a low level of
liquidity in many financial markets, and volatility in credit, currency and equity markets. In such an environment,
there is a risk that lenders, even those with strong balance sheets and sound lending practices, could fail or refuse to
honor their legal commitments and obligations under existing credit commitments, including but not limited to:
extending credit up to the maximum permitted by credit facility, allowing access to additional credit features and
otherwise accessing capital and/or honoring loan commitments. If our lender fails to honor its legal commitments
under our credit facility, it could be difficult in this environment to replace our credit facility on similar terms. And if
our suppliers or key third party vendors of necessary services and technical systems encounter similar difficulties
with credit or liquidity in their own businesses, our business may also be adversely affected.
Our operating and financial performance in any given period may differ from the guidance we have
provided to the public.
We provide public guidance on our expected operating and financial results for future periods. Although we
believe that this guidance provides investors and analysts with a better understanding of management’s expectations
for the future and is useful to our stockholders and potential stockholders, such guidance is comprised of forward-
looking statements subject to the risks and uncertainties described in this report and in our other public filings and
public statements. If our operating or financial results for a particular period differ from our guidance or the
expectations of investment analysts, or if we change our guidance for future periods, the market price of our
common stock could decline.
16