60667--4/3/2007--LOWES_COMPANIES

related topics

{product, market, service}

{system, service, information}

{customer, product, revenue}

{condition, economic, financial}

{personnel, key, retain}

{cost, operation, labor}

{operation, natural, condition}

Our sales are dependent upon the health and stability of the general economy. Adverse changes in economic factors specific to the home improvement industry may negatively impact the rate of growth of our net sales and comparable store sales. Unseasonable weather and adverse weather conditions can negatively affect our net sales and comparable store sales. Our store expansion and relocation strategy depends upon our ability to successfully open, relocate and operate new stores each year. If we fail to hire, train and retain qualified managers, sales associates and other employees we could lose sales to our competitors. Our Commercial Business Customers demand a higher level of customer service that is challenging to meet on a consistent basis. We have many competitors, who, if we fail to execute our merchandising, marketing and distribution strategies effectively, could take sales and market share from us. An unusual number of product liability or breach of warranty claims for defective products could expose us to expensive claims and damage our standing with our customers. Our financial performance could suffer if we fail to properly maintain our critical information systems or if those systems are seriously disrupted. If the domestic and international supply chain for the products we stock is disrupted, our sales and gross margin would be adversely impacted. Our inability to effectively manage our relationships with selected suppliers of brand name products could negatively impact our ability to differentiate ourselves from competitors. If we fail to hire, train and retain qualified managers, sales associates and other employees we could lose sales to our competitors. Our Commercial Business Customers demand a higher level of customer service that is challenging to meet on a consistent basis. We have many competitors, who, if we fail to execute our merchandising, marketing and distribution strategies effectively, could take sales and market share from us. An unusual number of product liability or breach of warranty claims for defective products could expose us to expensive claims and damage our standing with our customers. Our financial performance could suffer if we fail to properly maintain our critical information systems or if those systems are seriously disrupted. If the domestic and international supply chain for the products we stock is disrupted, our sales and gross margin would be adversely impacted. Our inability to effectively manage our relationships with selected suppliers of brand name products could negatively impact our ability to differentiate ourselves from competitors.

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60667--4/3/2007--LOWES_COMPANIES_INC