The company opened 77 net new stores in fiscal 2024 and expects to open approximately 90 new stores in 2025, demonstrating a commitment to continued expansion and market penetration.

Capital expenditures for fiscal 2025 are projected to be approximately $855 million, primarily driven by investments in new distribution centers, new and existing store improvements, and various investments in information technology systems.

The company continues to invest in new information systems and technology to provide a platform for growth over the next several years. Current initiatives include continued enhancements to stores, supply chain, merchandising, and cybersecurity systems.

In December 2024, the company completed the sale of a packaway warehouse facility and recognized a pre-tax gain on sale of $61.6 million, demonstrating effective asset management.

Management concluded that its internal control over financial reporting was effective as of February 1, 2025, and this was also audited by Deloitte & Touche LLP.

James G. Conroy joined the Company in December 2024 as Chief Executive Officer – Elect and has served as Chief Executive Officer since February 2025, marking a significant leadership change.

The company acknowledges that continuing inflation, tariff increases, potential supply chain disruptions, geopolitical conditions, and government regulation may negatively impact costs, consumer confidence, and spending.

The company identifies information or data security breaches as a significant risk, potentially leading to disruptions, theft of confidential information, reputational damage, and legal exposure.

The company's off-price business model depends on opportunistic buying and lean inventory levels. Any constraints on the availability of shipping capacity, changes in transportation or tariff costs, trade relationships or tax policies, geopolitical conflicts, natural disasters, or public health issues, that reduce the supply or increase the relative cost of imported goods, could also result in disruptions to our supply relationships.

The company acknowledges that the retail industry is highly competitive and fragmented, with increasing competition expected in the future. There are limited economic barriers for others to enter the off-price retail sector.

The company's success depends on its ability to effectively buy and sell merchandise that meets customer demand. It is very challenging to successfully do this well and consistently across our diverse merchandise categories and in the multiple markets in which we operate throughout the United States and its territories.

The company believes that it is well-positioned within the off-price retail apparel and home fashion industry to compete based on offering significant discounts on brand name merchandise, offering a well-balanced assortment that appeals to target customers, and consistently providing store environments that are convenient and easy to shop.

In fiscal 2024, the company continued its emphasis on this important sourcing strategy in response to compelling opportunities available in the marketplace. As of February 1, 2025 and February 3, 2024, packaway accounted for approximately 41% and 40% of total inventories, respectively.

Accounts payable leverage (defined as accounts payable divided by merchandise inventory) was 87% and 89% as of February 1, 2025 and February 3, 2024, respectively. The decrease in accounts payable leverage in fiscal 2024 compared to fiscal 2023 was primarily due to the timing of inventory receipts and related payments versus last year.

The company facilitates a voluntary supply chain finance program to provide certain suppliers with the opportunity to sell their receivables due from the company to participating financial institutions at the sole discretion of both the suppliers and the financial institutions.

The company continues to invest in new information systems and technology to provide a platform for growth over the next several years. Current initiatives include continued enhancements to stores, supply chain, merchandising, and cybersecurity systems.

Capital expenditures include costs to build, expand, and improve distribution centers, open new stores and improve existing stores, and for various other expenditures related to information technology systems and buying and corporate offices.

We must monitor and choose sound investments and implement them at the right pace. The risk of system disruption is increased whenever significant system changes are undertaken.

In March 2024, the Board of Directors approved a two-year program to repurchase up to $2.1 billion of the Company's common stock through January 31, 2026.

On March 4, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.4050 per common share, payable on March 31, 2025.

Capital expenditures for fiscal 2025 are projected to be approximately $855 million. Our planned capital expenditures for fiscal 2025 are for costs to open new stores and improve existing stores, investments in our supply chain to support long-term growth, including construction of our next distribution centers, investments in our information technology systems, and for various other expenditures related to our stores, distribution centers, and buying and corporate offices.

Our Board of Directors has adopted a Code of Ethics for Senior Financial Officers that applies to our Chief Executive Officer (Principal Executive Officer), Chief Financial Officer (Principal Financial Officer), and Chief Accounting Officer (Principal Accounting Officer), along with other of our senior operating and financial executives.

The impact of Pillar Two on the Company's effective tax rate was not material for fiscal 2024. The Company will continue to monitor future Pillar Two legislation in relevant jurisdictions for any impacts to its effective tax rate.

Company facilitates a voluntary supply chain finance program to provide certain suppliers with the opportunity to sell their receivables due from the company to participating financial institutions at the sole discretion of both the suppliers and the financial institutions.

Macroeconomic pressures and uncertainties continue to impact both consumer confidence and discretionary spending. We are closely monitoring these external factors, along with market share trends for the off-price industry.

We continue to believe that consumers' focus on value and convenience provide opportunities for us to gain market share.

Macroeconomic pressures and uncertainties continue to impact both consumer confidence and discretionary spending. We are closely monitoring these external factors, along with market share trends for the off-price industry.