Dollar Tree 2004 Annual Report Download - page 18

14 DOLLAR TREE STORES, INC. • 2004 ANNUAL REPORT
• Our profitability is vulnerable to future increases in
operating and merchandise costs including shipping
rates, freight costs, fuel costs, wage levels, inflation,
competition and other adverse economic factors
because we sell goods at the fixed $1.00 price point.
• Our merchandise mix relies heavily on imported
goods. An increase in the cost of these goods, for
example because of inflation in their country of origin
or currency revaluations, or disruption in the flow of
these goods may significantly decrease our sales and
profits because any transition to alternative sources
may not occur in time to meet our demands. In
addition, products and alternative sources may also
be of lesser quality or more expensive than those we
currently import.
• Our sales may be below expectations during the
Christmas and Easter selling seasons, which may
cause our operating results to suffer materially.
• The performance of our distribution system is critical
to our operations. Unforeseen disruptions or costs in
our receiving and distribution systems could harm our
sales and profitability.
• Disruptions in the availability of quality, low-cost
merchandise in sufficient quantities to maintain our
growth may reduce sales and profits.
Our forward-looking statements could be wrong
in light of these and other risks, uncertainties and
assumptions. The future events, developments or results
described in this report could turn out to be materially
different. We have no obligation to publicly update or
revise our forward-looking statements after the date of
this annual report and you should not expect us to do so.
Investors should also be aware that while we do, from
time to time, communicate with securities analysts and
others, we do not, by policy, selectively disclose to them
any material nonpublic information or other confidential
commercial information. Accordingly, shareholders
should not assume that we agree with any statement or
report issued by any securities analyst regardless of the
content of the statement or report. We generally do not
issue financial forecasts or projections and we do not, by
policy, confirm those issued by others. Thus, to the extent
that reports issued by securities analysts contain any
projections, forecasts or opinions, such reports are not
our responsibility.
INTRODUCTORY NOTE: Unless otherwise stated, references to
“we,”“our”and “Dollar Tree”generally refer to Dollar Tree
Stores, Inc. and its direct and indirect subsidiaries on a
consolidated basis. Unless specifically indicated otherwise, any
references to “2005”or “fiscal 2005,”“2004”or “fiscal 2004,”
and “2003”or “fiscal 2003”relate to as of or for the years
ended January 28, 2006, January 29, 2005 and January 31,
2004, respectively. Any reference to “2002”or “fiscal 2002”
relates to as of or for the year ended December 31, 2002.
Available Information
Our annual reports on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K and
amendments to those reports filed or furnished pursuant
to Section 13(a) or 15(d) of the Securities Exchange
Act are available free of charge on our website at
www.dollartree.com as soon as reasonably practicable
after electronic filing of such reports with the SEC.
MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
In Management’s Discussion and Analysis, we explain
the general financial condition and the results of
operations for our company, including:
• what factors affect our business;
• what our earnings and costs were in 2004 and 2003;
• why those earnings and costs were different from
the year before;
• how all of this affects our overall financial condition;
• what our expenditures for capital projects were in
2004 and what we expect them to be in 2005; and
• where funds will come from to pay for future
expenditures.
As you read Management’s Discussion and Analysis,
please refer to our consolidated financial statements,
included in Item 8 of this Form 10-K, which present the
results of operations for the fiscal years ended January 29,
2005 and January 31, 2004, the one-month period ended
February 1, 2003, and the calendar year ended December
31, 2002. In Management’s Discussion and Analysis, we
analyze and explain the annual changes in some specific
line items in the consolidated financial statements for
the fiscal year 2004 compared to the comparable fiscal
year 2003 and the fiscal year 2003 compared to the
fiscal year 2002.
MANAGEMENT’S DISCUSSION & ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS