Dollar Tree 2008 Annual Report Download - page 7

DOLLAR TREE, INC. • 2008 ANNUAL REPORT 5
• In 2008:
• Amending the Company’s Articles of Incorporation to eliminate supermajority
voting, and
• Adopting a policy limiting change of control benefits and providing that no benefits subject
to a performance measure will vest in a change of control unless and until the performance
measure is attained.
In addition, we have added three new independent directors since July 2007.
Above all, we believe in strict adherence to our core values of honesty, integrity, openness and transparency in all aspects
of our business. These values are reflected in the strength of our financial controls and in our relationships with customers,
suppliers, associates and our shareholders. For 2008, we once again earned a “clean bill of health” with no material weakness
noted in our assessment of controls supporting the accounting and reporting processes in compliance with the require-
ments of Sarbanes-Oxley legislation. In 2009, as I have stated in previous 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.
Summary
For more than a year, the retail environment has been especially challenging, even before the onset of the current
economic crisis. Pressure on costs, especially diesel fuel and energy, were the most intense they have ever been. But through it
all, Dollar Tree has continued to grow and strengthen.
In 2008, we generated positive comp store sales in every quarter, grew revenue by 9.5%, increased earnings per share by
21%, and improved our operating margin. Our investments in infrastructure continue to translate into better inventory man-
agement, more efficient stores, improved in-stock position, and better execution of our model.
While many other retailers have been pulling back, we continue to open new Dollar Tree stores – including new Deal$
stores, which is an exciting and progressing concept. We have the capital available to support our growth plans, while
generating substantial free cash. And our prudent cash management strategy in 2008 has put us in a strong position going
into 2009, a position with much more flexibility than last year.
Our goals for this year are to continue to drive profitable growth by leveraging our infrastructure to provide our
customers the best imaginable value for their dollar and a better shopping experience than ever. We will also continue to
develop, improve and expand Deal$, striving to build more merchandise excitement for the Deal$ customer. As always,
our people are the key to everything we do. We will strive to develop our people, and provide opportunities for
personal growth and advancement commensurate with a Company that is financially strong and growing. Of course, we
will also strive to build value for long-term shareholders by running the business as efficiently and effectively as possible
and managing our capital for enhanced long-term shareholder return.
As we enter 2009, we know that our customers are under intense pressure. But we also know that they will find no
better place to stretch their dollars than at Dollar Tree. We are squarely in the bull’s-eye of what customers are looking for,
and are selling what they want to buy. In fact, our dollar price point and our increased mix of consumer basics make Dollar
Tree more relevant now than ever. We are determined to do everything we can to be a part of the solution to the daily
challenge of balancing household budgets. All of which means we continue to offer real value – in this season,
as in every season.
Bob Sasser
President and Chief Executive Officer