Dollar Tree (DLTR) risk factors, FY2025 10-K

Other

1. 01Our profitability is vulnerable to cost pressures from increases in merchandise, shipping, freight and fuel costs, wage and benefit and other operating costs
2. 02Risks associated with merchandise supply could adversely affect our financial performance
3. 03Higher costs and disruptions in our distribution network could have an adverse impact on our sales and profitability
4. 04We may stop selling or recall certain products for safety-related or other issues
5. 05We could experience a decline in consumer confidence and spending because of concerns about the quality and safety of our products or our brand standards
6. 06Inflation, other changes in economic conditions or consumer spending habits could impact our sales or profitability
7. 07Our growth is dependent on our ability to increase sales in existing stores and to expand our square footage profitably
8. 08Our profitability is affected by the mix of products we sell
9. 09by various factors, including those described under “Risks associated with merchandise supply could adversely affect our financial performance” on page 10 and “Higher costs and disruptions in our distribution network could have an adverse impact on our sales and profitability” on page 11
10. 10Our business is seasonal, and adverse events during the fourth quarter could materially affect our full-year financial results
11. 11Failure to protect our inventory or other assets from loss and theft may impact our financial results
12. 12We have risks related to the security of our facilities including risks of personal injury to customers or associates
13. 13We face significant pressure from competitors which may reduce our sales and profits
14. 14Our business could be adversely affected if we fail to manage our organizational talent and capacity, including attracting and retaining qualified associates and key personnel
15. 15We rely on third parties in many aspects of our business, which creates additional risk

Risks Relating to Strategic Initiatives and the Pending Sale of the Family Dollar Business

1. 16We may not be successful in implementing or in anticipating the impact of important strategic initiatives, which may have an adverse impact on our business and financial results
2. 17The completion of the pending sale of the Family Dollar business is subject to various risks and uncertainties, may not be completed in a timely fashion or at all, and the pending sale may be disruptive to our business operations and adversely affect our profitability
3. 18If the pending sale of the Family Dollar business is completed, we may not achieve the anticipated benefits of the transaction, and the transaction may expose us to new risks
4. 19We have incurred losses due to impairment of goodwill and other long-lived assets
5. 20We make estimates and assumptions in connection with the preparation of our consolidated financial statements, and any changes to those estimates and assumptions could adversely affect our results of operations

Cybersecurity and Technology Risks

1. 21We 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 cyberattack, could harm our ability to effectively operate and grow our business and could adversely affect our financial results
2. 22The potential unauthorized access to our systems could disrupt operations or lead to the theft of data which 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 financial condition
3. 23Legal proceedings may adversely affect our reputation, business, results of operations or financial condition
4. 24Our failure to comply with applicable law, or to adequately respond to changes to such laws, could increase our expenses, expose us to legal risks or otherwise adversely affect us
5. 25Our business is subject to evolving disclosure requirements and expectations with respect to environmental, social and governance matters that could expose us to numerous risks

Risks Relating to Indebtedness and Our Common Stock

1. 26Our inability to access credit or capital markets, a downgrade of our credit ratings and/or increases in interest rates could negatively affect our financing costs, results of operations and financial condition
2. 27Our business or the value of our common stock could be negatively affected as a result of actions by shareholders
3. 28The price of our common stock is subject to market and other conditions and may be volatile
4. 29Certain 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