Dillard's 2008 Annual Report Download - page 11

We rely on third party suppliers to obtain materials and provide production facilities from which we source
our merchandise.
We may experience supply problems such as unfavorable pricing or untimely delivery of merchandise. The
price and availability of materials from suppliers can be adversely affected by factors outside of our control, such
as increased worldwide demand. Further, our suppliers who also serve the retail industry may experience
financial difficulties due to a downturn in the industry or in other macroeconomic environments, such as credit
markets, stifling their ability to obtain borrowed funds necessary to finance their operations. These supplier risks
may have a material adverse effect on our business and results of operations.
We may evaluate acquisitions, joint ventures and other strategic initiatives, any of which could distract
management or otherwise have a negative effect on revenues, costs and stock price.
Our future success may depend on opportunities to buy or obtain rights to other businesses or technologies
that could complement, enhance or expand our current business or products or that might otherwise offer growth
opportunities. In particular, we intend to evaluate potential mergers, acquisitions, joint venture investments,
strategic initiatives, alliances, vertical integration opportunities and divestitures. Our attempt to engage in these
transactions may expose us to various inherent risks, including:
• assessing the value, future growth potential, strengths, weaknesses, contingent and other liabilities and
potential profitability of acquisition candidates;
• the potential loss of key personnel of an acquired business;
• the ability to achieve projected economic and operating synergies;
• difficulties successfully integrating, operating, maintaining and managing newly acquired operations or
employees;
• difficulties maintaining uniform standards, controls, procedures and policies;
• unanticipated changes in business and economic conditions affecting an acquired business;
• the possibility of impairment charges if an acquired business performs below expectations; and
• the diversion of management’s attention from the existing business to integrate the operations and
personnel of the acquired or combined business or to implement the strategic initiative.
Our annual and quarterly financial results may fluctuate depending on various factors, many of which are
beyond our control, and if we fail to meet the expectations of securities analysts or investors, our share price
may decline.
Our sales and operating results can vary from quarter to quarter and year to year depending on various
factors, many of which are beyond our control. Certain events and factors may directly and immediately decrease
demand for our products. If customer demand decreases rapidly, our results of operations would also decline
precipitously. These events and factors include:
• changes in competitive and economic conditions generally;
• variations in the timing and volume of our sales;
• sales promotions by us or our competitors;
• changes in average same-store sales and customer visits;
• variations in the price, availability and shipping costs of supplies;
• seasonal effects on demand for our products;
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