DOLLAR GENERAL CORP (DG) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that DOLLAR GENERAL CORP surfaced in its latest filing.

• Changes to work requirement minimum standards for qualification enacted in 20252025
• Beginning in January 2026, certain states’ exclusion of historically covered product categoriesJanuary 2026
• Expiration of the Work Opportunity Tax Credit (WOTC) at the end of 20252025
• Food at home moderately accelerated in 20252025
• In the fourth quarter of 2024, recorded significant impairment expense, majority related to pOpshelf storesFourth quarter 2024
• In the first quarter of 2025, closed 45 pOpshelf stores and converted additional six to Dollar General stores, incurred significant impairment chargesFirst quarter 2025
• In 2025, the U.S. administration imposed additional tariffs across global trading partners, including China, the European Union, Canada, India, and various countries in Southeast Asia2025
• In 2025, Standard & Poor’s changed our outlook from 'Negative' to 'Stable'2025
• In 2025, Moody’s changed our rating from Baa2 to Baa3 and our outlook from 'Negative' to 'Stable'2025
• The WOTC expired at the end of the 2025 calendar year, and if not renewed, expected to have significant negative impact on future earnings per share2025
• Credit agreement requires maintaining minimum fixed charge coverage ratio and maximum leverage ratio; breach could impact borrowing ability
• Conflict in the Middle East affecting fuel and energy costs
• Local governments passing zoning restrictions and moratoria on small box discount retail development
• Current migration of applications to the cloud, modernization of legacy systems including Finance and HR enterprise resource planning system, inventory replenishment system, and new point of sale system
• Political tensions involving China, the conflict between Russia and Ukraine, and the conflict in the Middle East
• In 2025, directly imported approximately 4% of purchases (measured at cost); a substantial amount from China2025
• Legal proceedings as discussed in Note 7 to the consolidated financial statements