Dollar Tree (DLTR)

Risks

• Our profitability is vulnerable to increases in oceanic shipping costs, domestic freight and fuel costs, wage and benefit costs and other operating costs.
• We are experiencing higher costs and disruptions in our distribution network, which have had and could have an adverse impact on our sales, margins and profitability.
• We may stop selling or recall certain products for safety-related or other issues.
• Our business and results of operations could be materially harmed if we experience a decline in consumer confidence and spending as a result of consumer concerns about the quality and safety of our products.
• Inflation or other adverse change or downturn in economic conditions could impact our sales or profitability.
• If the COVID-19 pandemic and associated disruptions worsen or continue longer than expected, there could be a material adverse impact on our business and results of operations.
• Risks associated with our domestic and foreign suppliers could adversely affect our financial performance.
• Our supply chain may be disrupted by changes in United States trade policy with China.
• Our growth is dependent on our ability to increase sales in existing stores and to expand our square footage profitably.
• Our profitability is affected by the mix of products we sell.
• Pressure from competitors may reduce our sales and profits.
• Our business could be adversely affected if we fail to attract and retain qualified associates and key personnel.
• We may not be successful in implementing or in anticipating the impact of important strategic initiatives, and our plans for implementing such initiatives may be altered or delayed due to various factors, which may have an adverse impact on our business and financial results.
• We could incur losses due to impairment of long-lived assets, goodwill and intangible assets.
• We rely on computer and technology systems in our operations, and any material failure, inadequacy, interruption or security failure of those systems including because of a cyber-attack could harm our ability to effectively operate and grow our business and could adversely affect our financial results.
• The potential unauthorized access to customer information may violate privacy laws and could damage our business reputation, subject us to negative publicity, litigation and costs, and adversely affect our results of operations or business.
• Litigation, arbitration and government proceedings may adversely affect our business, financial condition and/or results of operations.
• Changes in laws and government regulations, or our failure to adequately estimate the impact of such changes, could increase our expenses, expose us to legal risks or otherwise adversely affect us.
• Our substantial indebtedness could adversely affect our financial condition, limit our ability to obtain additional financing, restrict our operations and make us more vulnerable to economic downturns and competitive pressures.
• The terms of the agreements governing our indebtedness may restrict our current and future operations, particularly our ability to respond to changes or to pursue our business strategies, and could adversely affect our capital resources, financial condition and liquidity.
• Our variable-rate indebtedness subjects us to interest rate risk, which could cause our annual debt service obligations to increase significantly.
• Our business or the value of our common stock could be negatively affected as a result of actions by shareholders.
• The price of our common stock is subject to market and other conditions and may be volatile.
• Certain provisions in our Articles of Incorporation and By-Laws could delay or discourage a change of control transaction that may be in a shareholder’s best interest.