Risk Factors Update Summary

• Increased regulatory scrutiny and enforcement efforts may significantly increase compliance costs.
• Increased minimum wage costs from recent state and locality increases and expected future hikes. This could impact profitability significantly.
• Failure to comply with laws could result in penalties, fines, and loss of licenses.
• Implementation of Dollar Tree Plus multi-price initiative, expanding to $4 and $5 price points. This may affect sales mix and margins.
• Closure of approximately 970 Family Dollar and 30 Dollar Tree stores, leading to impairments of related assets.
• Resolved DOJ investigation led to $200,000 in fines and a $41,475,000 forfeiture judgment.
• Material shift in consumer purchasing to lower-margin consumable goods, impacting product mix and margins.
• Cybersecurity risks highlighted with increased investments in IT systems to support business growth.
• Labor market challenges affecting distribution centers and stores, potentially impacting operating efficiency and customer service.
• Failure to meet ESG goals may lead to consumer backlash, affecting reputation and financials.
• Reliance on third parties for distribution and supply chain operations, with potential adverse impacts on operations and financial results.
• Changes in laws and regulations could adversely affect business operations and financial condition.
• Increased focus on ESG matters may lead to higher expenses and management time.
• Uncertainty in the stock market could impact shareholder relationships and business strategies.