Dillard's 2009 Annual Report Download - page 9

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 or increase operating costs. If customer demand
decreased or if operating costs increased rapidly, our results of operations would also decline
precipitously. The recent passage of health care legislation will cause the Company’s operating costs to
rise in fiscal 2014 and beyond. The Company is currently in the process of assessing the extent of the
effect of the legislation on its operating costs. Other 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;
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