Dollar Tree 2009 Annual Report Download - page 7

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reporting฀processes฀in฀compliance฀with฀the฀requirements฀of฀Sarbanes-Oxley฀legislation.฀In฀2010,฀as฀I฀have฀stated฀in฀previ-
ous years, you can be assured that we will continue to operate Dollar Tree with an unwavering commitment to financial
integrity and the related financial controls as a foundation for building long-term shareholder value.
Dollar Tree has consistently generated significant cash flow and has been a prudent manager of capital for the benefit of
long-term shareholders. The best use of capital, in our view, is to support continued growth of the business at a sustainable
pace. Beyond this, we have long believed that share repurchase is an effective use of excess free cash to create additional value
for shareholders over the long-term.
In฀2009,฀we฀repurchased฀4.3฀million฀shares฀for฀$193฀million.฀In฀March฀2010฀we฀announced฀$200฀million฀of฀additional฀
repurchases under an Accelerated Share Repurchase Program, which will be completed by the end of the second quarter.
Altogether,฀ since฀ 2003,฀ the฀ Company฀ has฀ invested฀ approximately฀ $1.4฀ billion฀ to฀ repurchase฀ more฀ than฀ 39฀ million฀ shares฀
without increasing long-term debt.
Summary
Dollar Tree has a long history of exemplary financial performance through good times and bad. We have grown our revenues
and฀earnings฀per฀share฀every฀year฀since฀becoming฀a฀public฀company฀in฀1995฀and฀the฀momentum฀increased฀in฀2009฀with฀strong฀
growth in sales, comparable store sales and operating margin—and a 40.7% increase in diluted earnings per share.
As I look to the future, I see even more opportunity. I am excited about our business and I like how we are positioned.
We฀have฀a฀series฀of฀initiatives฀in฀place฀to฀drive฀our฀business฀to฀higher฀levels฀in฀2010.฀We฀are฀focusing฀on฀“Wowing”฀our฀
customers even more than we have already—creating more merchandise excitement, with an even better store experience
featuring more impactful signage, greater “item of the week” emphasis, more powerful end-caps, and more frequent updates
of in-store graphics and messaging.
We are expanding our emphasis on key merchandise categories like party, health and beauty care, Teachers’ Corner and house-
hold chemicals, as well as food and consumables, while also refining our frozen/refrigerated assortments to drive traffic.
We are also improving our in-stock position on basic, non-food items that people need every day—like batteries, light bulbs,
kitchen utensils and stationery.
My฀condence฀in฀the฀future฀is฀also฀based฀on฀the฀solid฀foundation฀that฀makes฀it฀all฀possible—our฀investments฀in฀infrastructure฀
continue to translate into better inventory management, increasingly efficient supply chain logistics, more productive stores, im-
proved in-stock position and a crisper execution of our model.
With an eye on the future, we are investing for profitable growth: expanding our store base, enhancing our supply chain with a
new distribution center and developing new retail concepts, including Deal$ and Dollar Tree Direct. These investments bring greater
opportunities for our associates to grow and develop their skills, while expanding overall employment opportunities.
We are becoming more efficient and reducing supply chain and back-office costs. Our plan is to reinvest much of these savings
into higher merchandise values and to provide a better customer experience in our stores. With our compelling mix of low-priced
and high-value consumer basics and our unique assortment of fun and seasonally correct discretionary product, we are positioned
to be relevant to customers in all economic circumstances.
I have never been more proud of Dollar Tree, its people and their accomplishments. At the same time I have never been
more฀excited฀about฀the฀future฀of฀our฀Company.฀฀My฀thanks฀and฀congratulations฀to฀every฀Dollar฀Tree฀associate฀for฀making฀
2009฀our฀best฀year฀–฀so far!
Bob Sasser
President and Chief Executive Officer
฀฀฀DOLLAR฀TREE,฀INC.฀•฀2009฀Annual฀Report฀฀฀5