TOANO, Va., Aug. 27, 2019 /PRNewswire/ -- Lumber
Liquidators (NYSE: LL), a leading specialty retailer of
hard-surface flooring in North
America, today provided information on a recent network
security incident. Beginning today, Tuesday,
August 27, 2019, with very few exceptions, stores regained
the ability to transact using normal point of sales systems, and
much of the customer-facing impact of the incident has been
resolved. Restoration efforts continue, and the Company, is
in the early stages of broader recovery efforts and forensic
analysis that are expected to last several weeks.
Although the investigation remains ongoing, to date, the Company
has not discovered anything that leads it to believe any sensitive
and confidential consumer or employee data was compromised.
That data is further protected by the fact that the vast majority
of customer and employee data, including customer credit card
information, is secured and maintained on systems outside of the
Company's network.
The Company first discovered the incident at approximately 9:15
am on Wednesday, August 21, 2019,
when its network and computer systems began to manifest symptoms of
malware that ultimately disabled certain corporate and store
systems nationwide. The Company took immediate action to
contain the incident and, within hours, the information technology
team had mobilized to diagnose and begin remediation processes,
including securing outside expertise to help ensure the Company
could return to normal operations as soon as possible. In
addition, employees have worked diligently to implement established
business continuity procedures, and stores have remained open and
serving customers throughout this incident.
"Our first priority has been to continue to serve our customers
and aid our store employees in that effort," commented Dennis Knowles, President and Chief Executive
Officer. "I would like to thank the many employees who
exhibited ingenuity and made personal sacrifices to ensure our
customers' needs were met."
"Our diligent work over the past several years to develop system
redundancies and business continuity plans paid dividends that were
made apparent in our ability to remain open while working to
restore our systems," Knowles continued. "We used manual
workarounds to facilitate transactions and brought in outside
resources to help ensure we returned to normal operations as soon
as possible, but I would also like to thank our customers for their
patience and understanding during this event."
The Company maintains cyber-security and other insurance and has
been working collaboratively with its carrier throughout this
incident, although it is too early in the restoration and recovery
process to determine the net impact of costs and recoveries on the
Company's financial results. The Company will provide
periodic updates as appropriate or required.
About Lumber Liquidators
With 416 locations, Lumber Liquidators is one of
North America's leading
specialty retailers of hard-surface flooring. The Company
features more than 400 varieties of floors in the latest
styles, including solid and engineered hardwood, bamboo, cork,
laminate, waterproof vinyl plank and porcelain tile flooring.
Additionally, Lumber Liquidators provides a wide selection of
flooring enhancements and accessories to complement, install and
maintain new floors. Every location is staffed with flooring
experts who can provide advice, pro services and installation
options for all of Lumber Liquidators' products, much of which is
in stock and ready for delivery.
Learn more about Lumber Liquidators:
- Commitment to compliance, quality and the communities it
serves: https://www.lumberliquidators.com/quality.
- Corporate giving: LayItForward.LumberLiquidators.com.
- Follow on social media: Facebook, Instagram and Twitter.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes statements of the Company's
expectations, intentions, plans and beliefs that constitute
"forward-looking statements" within the meanings of the Private
Securities Litigation Reform Act of 1995. These statements, which
may be identified by words such as "may," "will," "should,"
"expects," "intends," "plans," "anticipates," "believes," "thinks,"
"estimates," "seeks," "predicts," "could," "projects," "potential"
and other similar terms and phrases, are based on the beliefs of
the Company's management, as well as assumptions made by, and
information currently available to, the Company's management as of
the date of such statements. These statements are subject to risks
and uncertainties, all of which are difficult to predict and many
of which are beyond the Company's control. These risks include,
without limitation, the impact on us of any of the following:
- the outcomes of legal proceedings, and the related impact on
liquidity;
- reputational harm;
- obligations related to and impacts of new laws and regulations,
including pertaining to tariffs;
- obtaining products from abroad, including the effects of
tariffs, as well as the effects of antidumping and countervailing
duties;
- obligations under various settlement agreements and other
compliance matters;
- disruptions related to our corporate headquarters
relocation;
- inability to open new stores, find suitable locations for our
new store concept, and fund other capital expenditures;
- inability to execute on our key initiatives or such key
initiatives do not yield desired results;
- managing growth;
- transportation costs;
- damage to our assets;
- disruption in our ability to distribute our products;
- operating stores in Canada and
an office in China;
- managing third-party installers and product delivery
companies;
- renewing store or warehouse leases;
- having sufficient suppliers;
- our, and our suppliers', compliance with complex and evolving
rules, regulations, and laws at the federal, state, and local
level;
- disruption in our ability to obtain products from our
suppliers;
- product liability claims;
- availability of suitable hardwood, including due to disruptions
from the impacts of severe weather;
- changes in economic conditions, both domestic and abroad;
- sufficient insurance coverage , including cyber-security
insurance;
- access to and costs of capital;
- disruption due to cybersecurity threats, including the timing
for resolving and any impacts of a network security incident;
- the handling of confidential customer information, including
the impacts from the California Consumer Privacy Act;
- management information systems disruptions;
- alternative e-commerce offerings;
- our advertising strategy;
- anticipating consumer trends;
- competition;
- impact of changes in accounting guidance, including the
implementation guidelines and interpretations;
- maintenance of valuation allowances on deferred tax assets and
the impacts thereof;
- internal controls including those over tariffs;
- stock price volatility; and
- anti-takeover provisions.
The Company specifically disclaims any obligation to update
these statements, which speak only as of the dates on which such
statements are made, except as may be required under the federal
securities laws. Information regarding these and other
additional risks and uncertainties is contained in the Company's
other reports filed with the Securities and Exchange Commission,
including the Item 1A, "Risk Factors," section of the Form 10-K for
the year ended December 31, 2018.
For further information contact:
Lumber Liquidators
Investor Relations
ir@lumberliquidators.com
Tel: 757.566.7512
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SOURCE Lumber Liquidators