This excerpt taken from the JOSB 10-K filed Apr 17, 2007.
Our business has become increasingly dependent on a strong holiday season.
Our net sales, net income and inventory levels fluctuate on a seasonal basis. We have increased our marketing efforts during peak selling times, resulting in profits generated during the fourth quarter holiday season becoming a larger portion of annual profits. Seasonality is also impacted by growth as more new stores are opened in the second half of the year. In the fourth quarters of fiscal years 2004, 2005 and 2006, we generated approximately 51%, 53% and 58%, respectively, of our annual net income. Any decrease in sales or margins during this period could have a disproportionate effect on our business, financial condition and results of operations. In addition, major winter storms
could negatively impact our sales and result in a material adverse effect on our business, financial condition and results of operations.