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Success Factors



STRONG FINANCIAL POSITION, RETURNING VALUE TO SHAREHOLDERS



We take a prudent approach to our capital structure to support the business and the long-term success of the Company. Throughout our history before the global health pandemic in 2020, our strong financial returns and cash generation historically allowed us to simultaneously invest in the growth of the business and return cash to shareholders for decades. Our “A” S&P Global rating is one of the strongest in retail, and we are committed to maintaining a strong rating. We believe this is an important metric for our vendors, landlords, and other business associates.

In March 2020, as a result of the COVID-19 pandemic, we announced prudent steps to strengthen our financial flexibility and liquidity given the uncertain environment, including reducing our capital expenditures and operating expenses. We also suspended our share repurchase program. Further, we did not declare a dividend for the first three quarters of fiscal 2021. In December of 2020, we were pleased to reinstate a quarterly dividend of $.26 per share, which was a 13% increase compared to the previous dividend paid in March 2020. We declared a quarterly dividend at the same rate in March 2021.

In 2020, we generated $4.6 billion of operating cash flow and ended the year with $10.5 billion of cash on our consolidated balance sheet. We enter 2021 with a very strong balance sheet and plenty of liquidity to operate our business. We are in an excellent position to continue our investments in our stores, supply chain, and infrastructure to support our future growth plans.

As of January 30, 2021, which was the end of the Company’s fiscal year.