Dollar Tree 2011 Annual Report Download - page 15

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A WARNING ABOUT FORWARD-LOOKING
STATEMENTS: is document contains “forward-
looking statements” as that term is used in the Private
Securities Litigation Reform Act of 1995. Forward-
looking statements address future events, developments
and results. ey include statements preceded by,
followed by or including words such as “believe,”
“anticipate,” “expect,” “intend,” “plan,” “view,” “target”
or “estimate.” For example, our forward-looking
statements include statements regarding:
• our anticipated sales, including comparable store net
sales, net sales growth and earnings growth;
• costs of pending and possible future legal claims;
• our growth plans, including our plans to add, expand
or relocate stores, our anticipated square footage
increase and our ability to renew leases at existing
store locations;
• the average size of our stores to be added in 2012
and beyond;
• the effect of a shift in merchandise mix to consumables
and the increase in the number of our stores with
freezers and coolers on gross profit margin and sales;
• the net sales per square foot, net sales and operating
income of our stores and store-level cash payback
metrics;
• the potential effect of the current economic down-
turn, inflation and other economic changes on our
costs and profitability, including the potential effect
of future changes in minimum wage rates, shipping
rates, domestic and import freight costs, fuel costs
and wage and benefit costs;
• our gross profit margin, earnings, inventory levels
and ability to leverage selling, general and adminis-
trative and other fixed costs;
• our seasonal sales patterns including those relating
to the length of the holiday selling seasons and the
effect of an earlier Easter in 2012;
• the capabilities of our inventory supply chain
technology and other systems;
• the reliability of, and cost associated with, our
sources of supply, particularly imported goods such
as those sourced from China;
• the capacity, performance and cost of our distribution
centers;
• our cash needs, including our ability to fund our
future capital expenditures and working capital
requirements;
• our expectations regarding competition and growth
in our retail sector; and
• management’s estimates associated with our critical
accounting policies, including inventory valuation,
accrued expenses and income taxes.
For a discussion of the risks, uncertainties and
assumptions that could affect our future events, develop-
ments or results, you should carefully review the risk
factors summarized below and the more detailed discus-
sion in the “Risk Factors” and “Business” sections in our
Annual Report on Form 10-K filed on March 15, 2012.
Also see our “Management’s Discussion and Analysis of
Financial Condition and Results of Operations”.
• Our profitability is vulnerable to cost increases.
• Litigation may adversely affect our business, financial
condition and results of operations.
• Changes in federal, state or local law, or our failure to
comply with such laws, could increase our expenses
and expose us to legal risks.
• Our growth is dependent on our ability to increase
sales in existing stores and to expand our square
footage profitably.
• Risks associated with our domestic and foreign
suppliers from whom our products are sourced could
affect our financial performance.
• We could encounter disruptions in our distribu-
tion network or additional costs in distributing
merchandise.
• A downturn in economic conditions could impact
our sales.
• Our profitability is affected by the mix of products
we sell.
• Pressure from competitors may reduce our sales and
profits.
• A significant disruption in or security breach in our
computer systems could adversely affect our opera-
tions or our ability to secure customer, employee and
company data.
• Our business could be adversely affected if we fail
to attract and retain qualified associates and key
personnel.
• Certain provisions in our Articles of Incorporations
and Bylaws could delay or discourage a takeover
attempt that may be in a shareholder’s best interest.
2011 Annual Report 13