家得寶 (HD) 2019 Q1 法說會逐字稿

Greetings and welcome to the Home Depot First Quarter 2019 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. (Operator Instructions)

問候並歡迎參加家得寶 2019 年第一季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。（操作員指令）

It is now my pleasure to introduce your host, Isabel Janci. Please go ahead.

現在我很高興介紹您的主持人伊莎貝爾詹西 (Isabel Janci)。請繼續。

Thank you and good morning, everyone.

謝謝大家，早安。

Joining us on our call today are Craig Menear, Chairman, CEO and President; Ted Decker, Executive Vice President of Merchandising; and Carol Tomé, Chief Financial Officer and Executive Vice President, Corporate Services. Following our prepared remarks, the call will be opened for questions. Questions will be limited to analysts and investors. (Operator Instructions) If we are unable to get to your question during the call, please call our Investor Relations department at (770) 384-2387.

今天參加我們電話會議的有董事長、執行長兼總裁 Craig Menear；泰德‧德克爾 (Ted Decker)，商品銷售執行副總裁；以及財務長兼企業服務執行副總裁 Carol Tomé。在我們發表準備好的發言之後，將會開放提問環節。問題僅限於分析師和投資者。(操作員指示)如果我們無法在通話期間回答您的問題，請致電我們的投資者關係部 (770) 384-2387。

Before I turn the call over to Craig, let me remind you that today's press release and the presentations made by our executives include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, the factors identified in the release and in our filings with the Securities and Exchange Commission. Today's presentations will also include certain non-GAAP measures. Reconciliation of these measures is provided on our website.

在我將電話轉給克雷格之前，請允許我提醒您，今天的新聞稿和我們高管的陳述包括 1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。這些聲明受風險和不確定性的影響，可能導致實際結果與我們的預期和預測有重大差異。這些風險和不確定性包括但不限於新聞稿和我們向美國證券交易委員會提交的文件中確定的因素。今天的演示還將包括某些非公認會計準則指標。這些措施的協調已在我們的網站上提供。

Now let me turn the call over to Craig.

現在讓我把電話轉給克雷格。

Thank you, Isabel, and good morning, everyone.

謝謝你，伊莎貝爾，大家早安。

Before I begin, let me take a moment, if you would, of personal privilege. As you've read, at the end of April, we announced that Carol has decided to retire as our Chief Financial Officer and EVP of Corporate Services effective August 31, after 24 years of service to the Home Depot. This month, in fact, marks her 18th anniversary as our CFO, making her one of the longest tenured CFOs in the Fortune 100. And while I have more to say about Carol's numerous contributions to the Home Depot, as we get closer to her actual retirement, I did want to note on today's call Carol's extraordinary financial stewardship of our company. Richard McPhail, who will become our CFO in September, will indeed have big shoes to fill. And Carol, I can't thank you enough for your service to our company and to our shareholders.

在我開始之前，如果可以的話，請允許我花一點時間來表達我的個人特權。正如您所讀到的，在四月底，我們宣布卡羅爾決定從我們的首席財務官和企業服務執行副總裁的職位上退休，她已為家得寶服務了 24 年，將於 8 月 31 日起退休。事實上，本月是她擔任我們財務長的第 18 週年，這使她成為財富 100 強企業中任職時間最長的財務長之一。雖然我還有很多關於卡羅爾對家得寶的貢獻要說，但隨著她實際退休的臨近，我確實想在今天的電話會議上指出卡羅爾對我們公司的卓越財務管理。理查德·麥克菲爾 (Richard McPhail) 將於九月出任我們的首席財務官，他確實肩負著重大責任。卡羅爾，我非常感謝您為我們公司和股東所做的貢獻。

Thank you, Craig.

謝謝你，克雷格。

Sales for the first quarter were $26.4 billion, up 5.7% from last year. Comp sales were up 2.5% from last year with U.S. comps of positive 3%. Diluted earnings per share were $2.27 in the first quarter. Our sales performance came in below our expectations in the quarter as a result of 2 factors. First, the month of February was the second wettest on record for the U.S. Second, lumber prices continued to decline in the quarter, resulting in a negative impact to sales growth of approximately $200 million.

第一季銷售額為264億美元，比去年同期成長5.7%。同店銷售額較去年同期上漲 2.5%，其中美國同店銷售額上漲 3%。第一季每股攤薄收益為 2.27 美元。由於兩個因素，我們本季的銷售業績低於預期。首先，二月是美國有史以來第二潮濕的月份。

Looking at our results geographically, all of our U.S. divisions posted positive comps. 2 of our 19 U.S. regions posted mid-single-digit negative comps as they faced difficult compares due to hurricane-related sales a year ago. Internationally, Mexico posted another quarter of positive comps in local currency while Canada's comps were slightly negative. This no doubt was a noisy quarter. But when you look through the noise to the core business, we are pleased with the underlying performance. We saw growth in both ticket and transactions in the quarter, and 10 of our 14 merchandising departments posted positive comps. Ted will provide additional details around departments that were negative in the quarter as hurricane compares and price deflation impacted several categories.

從地理分佈來看，我們所有的美國分部都取得了正面的業績。我們在美國 19 個地區中的 2 個地區報告了中等個位數的負增長，因為一年前由於颶風相關的銷售而面臨困難。從國際來看，墨西哥本季的同店銷售額以當地貨幣計算再次出現正成長，而加拿大的同店銷售額則略有下降。毫無疑問這是一個喧鬧的地區。但當你透過噪音看向核心業務時，我們對潛在的表現感到滿意。本季度，我們的票務和交易量均實現了成長，我們 14 個商品銷售部門中有 10 個部門的銷售額均實現了成長。由於颶風和價格通貨緊縮對多個類別造成了影響，Ted 將提供有關本季業績不佳的部門的更多詳細資訊。

What I remain excited about is the progress we're making with regards to our strategic investment priorities. These investments enable us to continue to grow share in a highly fragmented $600 billion addressable market. We are making these investments from a position of strength as the #1 retailer in home improvement. Every investment was formed using the customer-back approach to create a truly seamless, frictionless customer experience that will drive results not just over the next several years, but for the long term.

令我感到興奮的是我們在策略投資重點方面取得的進展。這些投資使我們能夠在高度分散的 6000 億美元潛在市場中繼續擴大份額。作為家居裝飾領域第一大零售商，我們憑藉自身優勢進行這些投資。每項投資都是採用客戶回報方式進行的，旨在創造真正無縫、無摩擦的客戶體驗，這不僅會在未來幾年內帶來成果，而且會持續很長一段時間。

Our strategic efforts to drive and enhance interconnected customer experience through investments in both the physical and digital worlds are yielding solid returns. Online traffic growth was healthy, and first quarter online sales grew 23% from the first quarter of 2018. We continue to use our digital platforms to lean into adjacent categories like HD Home, pool and even workwear where the customer has told us that we have the right to compete for an additional share of their wallet.

我們透過在實體和數位世界的投資來推動和增強互聯客戶體驗的策略努力正在產生豐厚的回報。線上流量成長健康，第一季線上銷售額較 2018 年第一季成長 23%。我們繼續利用我們的數位平台來進軍相鄰類別，例如高清家居、泳池甚至工作服，客戶告訴我們，我們有權爭奪他們錢包的額外份額。

For the consumer, we are investing in new category experiences that make it easier for a customer to shop their full project needs online. If a customer is redoing a bathroom and decides on a particular type and finish of faucet, chances are they probably want to see the full suite of matching bath faucets for vanity, shower and tub. In order to take friction out of this process, we are now rolling the ability to shop a collection using minimal clicks. While we are investing to address the unique demands of the digital customer experience, we know that our customers continue to value the relevancy of our stores as seen in increased number of customer transactions in the quarter. Additionally, approximately 54% of our online U.S. orders were picked up in our stores during the quarter, a testament to our interconnected strategy.

對於消費者，我們正在投資新的類別體驗，讓客戶更輕鬆地在線上購買其所需的全部項目。如果顧客正在重新裝修浴室並決定選擇特定類型和飾面的水龍頭，那麼他們很可能會希望看到與盥洗台、淋浴和浴缸相匹配的全套浴室水龍頭。為了消除此過程中的摩擦，我們現在推出了使用最少的點擊來購買系列產品的功能。雖然我們正在投資滿足數位客戶體驗的獨特需求，但我們知道，我們的客戶仍然重視我們商店的相關性，這從本季度客戶交易數量的增加可以看出。此外，本季我們約有 54% 的美國線上訂單是在我們的商店提貨的，這證明了我們的互聯策略。

During the quarter, we continued to make progress enhancing this interconnected customer experience by investing in our stores to improve our front-end checkout experience, continuing to roll out automated lockers, streamlining our customer service desks and simplifying tools for our associates. This has translated to reduced wait times and increased customer satisfaction as our customer service scores and checkout time satisfaction have increased over 500 basis points versus last year. Not only do these front-end investments have customer service and productivity benefits, they are also helping us to optimize store layouts to maximize merchandising space productivity in high traffic event and lay-down areas.

在本季度，我們透過投資我們的商店來改善我們的前端結帳體驗，繼續推出自動儲物櫃，精簡我們的客戶服務台並簡化我們的員工工具，在增強這種互聯客戶體驗方面繼續取得進展。這意味著等待時間減少，客戶滿意度提高，因為我們的客戶服務分數和結帳時間滿意度與去年相比增加了 500 個基點以上。這些前端投資不僅具有客戶服務和生產力效益，而且還幫助我們優化商店佈局，以最大限度地提高高流量活動和存放區域的商品空間生產力。

Another key focus area from an investment standpoint is our Pro customer, which, once again, outpaced the DIY customer in the quarter. Pros tell us that they are busier than ever. This is why investing in a portfolio of offerings to help them manage their businesses efficiently and remove friction from their shopping experience are critical. Having the brands that pros care about in-stock with job-lot quantities is table stakes. You have to have that to serve them. But the value proposition that we are creating for the Pro through various investments over the next several years is, as we believe, unique to the marketplace. We continue to onboard Pro customers to our new B2B website experience, adding 35,000 customers in the quarter for a total of 135,000 customers that have been migrated to this experience so far. Our plan is to onboard over 1 million customers by the end of this year.

從投資角度來看，另一個重點關注領域是我們的 Pro 客戶，在本季再次超越了 DIY 客戶。專業人士告訴我們，他們比以前更忙了。這就是為什麼投資一系列產品來幫助他們有效地管理業務並消除購物體驗中的摩擦至關重要。擁有專業人士關心的品牌且有大量庫存是首要條件。你必須有這個才能為他們服務。但我們相信，未來幾年我們透過各種投資為 Pro 創造的價值主張在市場上是獨一無二的。我們繼續讓 Pro 客戶享受我們新的 B2B 網站體驗，本季增加了 35,000 名客戶，迄今為止遷移到此體驗的客戶總數為 135,000 名。我們的計劃是在今年年底前吸收超過 100 萬客戶。

Though it is early days, we are seeing increased engagement, which translates into increased spend. We also continue to make traction with the investments in other capabilities like tool rental, for example. We know that 90% of Pros rent tools. But 7 -- several years ago, only about 1 out of 10 Pros rented from us. Today, that number has improved to 1 out of 4, yet there remains opportunity for further growth as we continue to invest in our tool rental experience. We know that when Pros rent tools from us, their spend increases. Again, the theme here is about driving engagement. The more dimensional the relationship is with our Pro customers, the more they spend.

儘管還處於早期階段，但我們看到參與度正在提高，這意味著支出增加。例如，我們也將繼續增加對工具租賃等其他功能的投資。我們知道 90% 的專業人士都會租用工具。但 7 年前，只有大約十分之一的專業人士向我們租車。如今，這一數字已提高到四分之一，但隨著我們繼續在工具租賃體驗上進行投資，仍有進一步成長的機會。我們知道，當專業人士向我們租用工具時，他們的支出就會增加。再次強調，這裡的主題是關於推動參與。我們與專業客戶的關係越密切，他們花的錢就越多。

This is a time of transformational change in the business as we execute our One Home Depot strategy. Our team continues to focus on what is most important, our customers. We hired 80,000 new associates for spring, and thanks to our new in-aisle mobile training solution, PocketGuide, they had product knowledge at their fingertips to help them get up to speed quickly. Our merchants, store MET teams, supplier partners and supply chain teams did an outstanding job of delivering value and service to our customers throughout the quarter. I'd like to close by thanking them for their dedication, hard work and commitment to our customers.

我們正在實施「一個家得寶」策略，現在正值業務轉型變革時期。我們的團隊持續專注於最重要的事情—我們的客戶。我們在春季招募了 80,000 名新員工，借助我們全新的過道行動培訓解決方案 PocketGuide，他們可以輕鬆獲得產品知識，幫助他們快速上手。我們的商家、商店 MET 團隊、供應商合作夥伴和供應鏈團隊在整個季度都出色地為客戶提供了價值和服務。最後，我要感謝他們的奉獻、努力和對客戶的承諾。

And with that, let me turn the call over to Ted.

現在，請允許我將電話轉給泰德。

Thanks, Craig, and good morning, everyone.

謝謝，克雷格，大家早安。

As Craig mentioned, when we looked through the noise of the first quarter, we were pleased with how the business performed. Looking at our departments, comps in appliances indoor garden, decor, tools, outdoor garden, building materials, plumbing and hardware were above the company average. Paint and kitchen and bath were positive but below the company average. Millwork and flooring were slightly negative in large part due to hurricane overlaps. Our electrical lighting department reported a low-single-digit negative comp due primarily to light bulbs. Commodity deflation drove high-single-digit negative comps in quarter.

正如 Craig 所提到的，當我們回顧第一季的情況時，我們對業務表現感到滿意。縱觀我們的部門，家電、室內花園、裝飾、工具、室外花園、建築材料、管道和五金的銷售額均高於公司平均水平。油漆、廚房和浴室表現良好，但低於公司平均值。由於颶風重疊，木製品和地板的銷售量略有下降。我們的電氣照明部門報告了低個位數的負利潤，主要原因是燈泡的問題。大宗商品通貨緊縮導致本季銷售額出現高個位數的負成長。

In the first quarter, comp average ticket increased 2%, and comp transactions increased 5.5%. During the first quarter, we continued to see significant deflationary trends in lumber that began last year. Let me give you an example. When lumber prices peaked last year, we were selling a 4x8 sheet of OSB for approximately $17, and our units were negative. At the end of the first quarter, the price for that same sheet of OSB had fallen over 50% to about $8. While we have seen nice unit productivity as prices have fallen, we have not overcome the top line headwind from the significant deflation. Without lumber price deflation, our average ticket growth would have been closer to 3%.

第一季度，同店平均票價上漲 2%，同店交易量上漲 5.5%。第一季度，我們繼續看到去年開始的木材明顯通貨緊縮趨勢。讓我給你舉個例子。去年木材價格達到頂峰時，我們以大約 17 美元的價格出售一張 4x8 的 OSB 板，而我們的單位為負數。第一季末，同一種OSB板材的價格下跌了50%以上，降至8美元左右。儘管隨著價格下降，我們的單位生產力有所提高，但我們尚未克服嚴重通貨緊縮帶來的營收阻力。如果沒有木材價格下跌，我們的平均票價成長率將接近 3%。

During the first quarter, big-ticket comp transactions, or those over $1,000, which represent approximately 20% of U.S. sales, were up 3.9%, reflecting in part the impact of last year's hurricane-related sales. Excluding hurricane-related markets, big-ticket comps were up approximately 5.1%. Wet weather in February also had a significant impact to our big-ticket performance in the quarter as big-ticket comps were flat in the month of February. And finally, lumber price deflation also had a negative impact. We continue to see strong performance in big-ticket categories like vinyl plank flooring, water heaters and appliances.

第一季度，大額同店交易（即金額超過 1,000 美元的交易）約占美國銷售額的 20%，成長了 3.9%，部分反映了去年颶風相關銷售的影響。除颶風相關市場外，高價位商品的銷售額上漲了約 5.1%。二月份的潮濕天氣也對我們本季的高價位產品表現產生了重大影響，因為二月份高價位產品的銷售額持平。最後，木材價格通貨緊縮也產生了負面影響。我們繼續看到乙烯基板地板、熱水器和家用電器等高價位類別的強勁表現。

And just to comment on appliances, as a result of our supply chain initiatives and working more closely with our partners, we are seeing improved customer satisfaction scores in appliance delivery. During the first quarter, we saw growth with both our Pro and do-it-yourself customers. Pros are complex customers. And we are investing in a number of different initiatives and services to help our Pros get their jobs done. One of these services is our tool rental business. We have the largest number of tool rental centers in North America with approximately 1,100 locations inside our conveniently located stores. As Craig mentioned, we know that approximately 90% of Pros rent tools, but only 1 in 4 of our Pros rent tools from us. We also know that when Pros start renting tools from us, we see a significant uptick in their overall Home Depot spend. As part of our multiyear investment plan, we are investing in more space, more tools and better technology to improve the customer experience and continue to grow this differentiated service offering.

就家電而言，由於我們的供應鏈措施以及與合作夥伴更緊密的合作，我們看到家電交付方面的客戶滿意度得分有所提高。在第一季度，我們的專業客戶和 DIY 客戶數量均實現了成長。專業人士是複雜的客戶。我們正在投資多種不同的計劃和服務來幫助我們的專業人員完成他們的工作。我們的工具租賃業務就是其中一項服務。我們擁有北美最多的工具租賃中心，在我們位置便利的商店內設有約 1,100 個地點。正如 Craig 所提到的，我們知道大約 90% 的專業人士會租用工具，但只有四分之一的專業人士向我們租用工具。我們也知道，當專業人士開始向我們租用工具時，我們會看到他們在家得寶的整體支出顯著上升。作為我們多年投資計畫的一部分，我們正在投資更多的空間、更多的工具和更好的技術，以改善客戶體驗並繼續發展這種差異化服務。

In addition to our Pro investments, we continue to invest across our interconnected platforms. During the first quarter, we had record quarterly online visits that helped drive 23% growth in our online business. As we continue to invest in the online experience and reduce friction, we see higher traffic and improved conversion rates.

除了專業投資外，我們還繼續在我們互聯的平台上進行投資。第一季度，我們的季度線上訪問量創下了歷史新高，推動線上業務成長 23%。隨著我們不斷投資於線上體驗並減少摩擦，我們看到了更高的流量和更高的轉換率。

In addition to enhanced site functionality, we are also expanding certain online assortments. At our investor conference in 2017, we talked to you about HD Home, our expansion in home decor categories. We continue to lean into this category by offering a wide assortment of great values, and we are seeing strong growth. We are also expanding our online assortments in categories like auto, pool and workwear, natural extensions to our in-store assortments. We are excited about the growth we are seeing from brands like Weather Guard, Hayward and Carhartt.

除了增強網站功能之外，我們還在擴大某些線上商品種類。在我們2017年的投資者會議上，我們與您討論了HD Home，這是我們在家庭裝飾類別的擴展。我們繼續透過提供各種各樣的巨大價值來傾向於這一類別，並且我們看到了強勁的成長。我們也正在擴大汽車、泳池和工作服等類別的網路商品種類，這是我們店內商品種類的自然延伸。我們對 Weather Guard、Hayward 和 Carhartt 等品牌的成長感到非常興奮。

Now let's turn our attention to the second quarter. We are thrilled to announce the launch of the DEWALT Atomic 20-volt compact series, exclusive to The Home Depot. These compact tools offer the same 20-volt cordless power as traditional 20-volt tools in a smaller more versatile platform. The DEWALT Atomic series complements our already successful lineup of compact and subcompact power tools from Milwaukee and Makita. The Milwaukee 12-volt program is a favorite for mechanical trades while the subcompact Makita 18-volt lineup offers the most power and torque in its class. In the big-box channel, these DEWALT, Milwaukee and Makita tools can only be found at The Home Depot. We are excited about new product offerings across all of our categories and our upcoming events. During the second quarter, we will host our Memorial Day, Father's Day and Fourth of July events where we will be offering more great values and special buys for our customers.

現在我們把注意力轉向第二季。我們很高興地宣布推出 DEWALT Atomic 20 伏特緊湊型系列，由家得寶獨家銷售。這些緊湊型工具在更小、用途更廣泛的平台上提供與傳統 20 伏特工具相同的 20 伏特無線電源。DEWALT Atomic 系列是我們已經成功的 Milwaukee 和 Makita 緊湊型和超小型電動工具陣容的補充。密爾瓦基 12 伏特系列是機械行業的首選，而超小型牧田 18 伏特系列則提供同類產品中最強大的功率和扭矩。在大型零售通路中，這些 DEWALT、Milwaukee 和 Makita 工具只能在 Home Depot 找到。我們對所有類別的新產品和即將舉辦的活動感到非常興奮。在第二季度，我們將舉辦陣亡將士紀念日、父親節和獨立日活動，為客戶提供更多超值商品和特價商品。

With that, I'd like to turn the call over to Carol.

說完這些，我想把電話轉給卡蘿。

Thank you, Ted, and good morning, everyone.

謝謝你，泰德，大家早安。

Before we discuss our first quarter results, I want to mention that at the beginning of fiscal 2019, we adopted ASU number 2016-02, which pertains to how we account for leases. The adoption of this standard impacted our balance sheet, but it did not materially impact our income statement or statement of cash flows. Under this new standard, operating lease, right-of-use assets and liabilities are now reflected on our balance sheet.

在我們討論第一季業績之前，我想提一下，在 2019 財年伊始，我們採用了 ASU 編號 2016-02，這涉及我們如何核算租賃。採用此準則對我們的資產負債表產生了影響，但並未對我們的損益表或現金流量表產生重大影響。根據這項新標準，經營租賃、使用權資產和負債現在反映在我們的資產負債表中。

With that, let's move on to our first quarter results.

接下來，讓我們來看看第一季的業績。

In the first quarter, total sales were $26.4 billion, a 5.7% increase from last year. Versus last year, a stronger U.S. dollar negatively impacted total sales growth by approximately $76 million or 0.3%. Recall that for our first quarter comp calculation, we are comparing weeks 1 through 13 of fiscal 2019 against weeks 2 through 14 of fiscal 2018. Our total company comps were positive 2.5% for the quarter with negative comps of 2% in February, positive comps of 5.6% in March and positive comps of 3.2% in April. Comps in the U.S. were positive 3% for the quarter with negative comps of 1.9% in February, positive comps of 6.1% in March and positive comps of 4% in April. The cadence of our monthly comps was a bit distorted by the Easter shift this year. Adjusting for the timing of Easter, our U.S. comps were 4.5% in March and 5.3% in April.

第一季度，總銷售額為264億美元，比去年同期成長5.7%。與去年相比，美元走強對總銷售額成長產生了約 7,600 萬美元或 0.3% 的負面影響。回想一下，對於第一季的薪資計算，我們將 2019 財年第 1 至 13 週與 2018 財年第 2 至 14 週進行比較。本季度我們公司整體同店銷售額為正 2.5%，其中 2 月份同店銷售額為負 2%，3 月份同店銷售額為正 5.6%，4 月份同店銷售額為正 3.2%。本季美國同店銷售額為正 3%，其中 2 月同店銷售額為負 1.9%，3 月同店銷售額為正 6.1%，4 月同店銷售額為正 4%。由於今年復活節的影響，我們月度業績的節奏有些扭曲。根據復活節時間進行調整後，我們美國 3 月的同店銷售額成長了 4.5%，4 月的同店銷售額成長了 5.3%。

As you heard from Craig, our first quarter sales growth missed our expectations driven primarily by 2 notable factors. First, weather had a negative impact on our February performance. To put the February weather impact into perspective, 17 of our 19 U.S. regions reported negative comps in February. By the end of the quarter, however, only 2 regions reported negative comps. And that was due to hurricane-related overlaps. Second, versus last year, lumber price deflation hurt our sales growth by approximately $200 million. If you ignore the weather impact of February across our business and lumber price deflation, our total company comp would have been closer to 4.5%.

正如您從 Craig 那裡聽到的，我們的第一季銷售成長未達到我們的預期，這主要由兩個顯著因素造成。首先，天氣對我們二月的業績產生了負面影響。為了正確看待二月天氣的影響，我們在美國 19 個地區中，有 17 個地區報告了二月的負增長。然而，截至本季末，只有 2 個地區報告了負成長。這是由於颶風相關的重疊造成的。其次，與去年相比，木材價格下跌導致我們的銷售成長損失約 2 億美元。如果忽略二月天氣對我們業務的影響以及木材價格下跌的影響，我們公司的整體獲利將接近 4.5%。

In the first quarter, our gross margin was 34.2%, a decrease of 36 basis points from last year. The year-over-year change in our gross margin reflects the following factors. First, the change in mix of products sold caused approximately 17 basis points of gross margin contraction. Second, higher shrink than 1 year ago resulted in 13 basis points of contraction. And finally, higher supply chain and fulfillment expense caused approximately 6 basis points of gross margin contraction.

第一季度，我們的毛利率為34.2%，較去年同期下降36個基點。我們的毛利率同比變化反映了以下因素。首先，銷售產品組合的變化導致毛利率下降約17個基點。其次，收縮幅度比一年前更大，導致收縮了13個基點。最後，更高的供應鏈和履行費用導致毛利率下降約 6 個基點。

In the first quarter, operating expense as a percent of sales decreased by 44 basis points to 20.5%. Our operating expense performance reflects the impact of our strategic investment plan and ongoing expense control. Specifically, expenses related to our strategic investment plan of $229 million reflect a $50 million increase over last year and approximately 15 basis points of operating expense deleverage. This deleverage was offset by productivity in BAU, or business-as-usual, expenses, which drove 59 basis points of operating expense leverage.

第一季度，營業費用佔銷售額的百分比下降了44個基點，至20.5%。我們的營業費用表現反映了我們的策略性投資計畫和持續費用控制的影響。具體而言，與我們的策略性投資計畫相關的費用為 2.29 億美元，比去年增加了 5,000 萬美元，營業費用去槓桿率下降了約 15 個基點。這一去槓桿作用被 BAU 即正常業務生產力費用所抵消，導致營業費用槓桿率上升了 59 個基點。

Our operating margin for the first quarter was 13.6%, an increase of 8 basis points from last year. Interest and other expense for the first quarter grew by $34 million to $273 million due primarily to higher long-term debt levels than 1 year ago.

我們第一季的營業利益率為13.6%，比去年同期增加了8個基點。第一季的利息和其他支出增加了 3,400 萬美元，達到 2.73 億美元，這主要是由於長期債務水準高於一年前。

In the first quarter, our effective tax rate was 24.4% compared to 23.5% in the first quarter of fiscal 2018. Our first quarter tax rate was higher than last year due to certain state tax settlements that did not repeat. For the year, we expect our effective tax rate to be approximately 25.5%, in line with our guidance. Our diluted earnings per share for the first quarter were $2.27, an increase of 9.1% from last year.

第一季度，我們的有效稅率為 24.4%，而 2018 財年第一季為 23.5%。由於某些州稅結算沒有重複，我們第一季的稅率高於去年。我們預計今年的有效稅率約為 25.5%，與我們的預期一致。我們第一季的每股攤薄收益為 2.27 美元，比去年同期成長 9.1%。

Now moving on to some additional highlights. During the quarter, we opened 2 net new stores for an ending store count of 2,289. Selling square footage at the end of the quarter was 238 million square feet. Total sales per square foot for the first quarter were $435, up 5.6% from last year.

現在來談談一些額外的亮點。本季，我們淨開了 2 家新店，期末店數達到 2,289 家。本季末銷售面積為 2.38 億平方英尺。第一季每平方英尺的總銷售額為 435 美元，比去年增長 5.6%。

At the end of the quarter, inventory turns were 4.7x, down from 4.9x last year, reflecting growth in inventory to accelerate merchandising resets as well as an early load-in for spring sales. For the year, we expect our inventory turns to be flat to what we reported in fiscal 2018.

截至本季末，庫存週轉率為 4.7 倍，低於去年的 4.9 倍，反映出庫存成長以加速商品重置以及春季銷售的提前入庫。我們預計今年的庫存週轉率將與 2018 財年的水準持平。

Moving on to capital allocation. In the first quarter, we repurchased $1.25 billion or approximately 6.5 million shares of outstanding stock. Computed on the average of beginning and ending long-term debt and equity for the trailing 12 months, return on invested capital was approximately 45.4%, 940 basis points higher than the first quarter of fiscal 2018.

繼續進行資本配置。第一季度，我們回購了價值 12.5 億美元或約 650 萬股流通股。根據過去 12 個月期初和期末長期債務和股權的平均值計算，投資資本回報率約為 45.4%，比 2018 財年第一季高出 940 個基點。

Turning to the remainder of the year. Our view on the U.S. economy and the drivers of home improvement spend are not fundamentally different from what we shared with you back in February. First quarter U.S. GDP growth was strong. Unemployment is the lowest it has been in nearly 6 decades and wages are rising. The relevant housing metrics that drive home improvement spending, notably home price appreciation, existing home turnover, household formation and the age of the housing stock, continue to be supportive of our outlook. And as you heard from Craig, as expected, we are seeing benefit from our strategic investments.

展望今年剩餘的時間。我們對美國經濟和家居裝修支出驅動因素的看法與我們二月與您分享的觀點並沒有根本區別。第一季美國GDP成長強勁。失業率處於近60年來的最低水平，薪資也在上漲。推動家居裝修支出的相關住房指標，特別是房價升值、現房成交量、家庭組建和住房存量的年齡，繼續支持我們的前景。正如您從克雷格那裡聽到的，正如預期的那樣，我們從戰略投資中看到了收益。

The building blocks of our 2019 plan are in place. Nonetheless, 2 factors have changed since we put our plan together. First, there was a recent announcement that certain tariffs are increasing to 25%. We are working through the impact of these tariffs and, as a result, have not included them in today's guidance. Second, and more immediate, is the significant deflation we are seeing in lumber prices. You will recall that our sales forecasting model does not include commodity price inflation or deflation. If lumber prices remain at today's level, this could hamper fiscal 2019 sales growth plan by as much as $800 million. But because we cannot predict what will happen to lumber prices and because we are just 1 quarter into the year, at this point, we are not changing our sales or our earnings per share guidance for fiscal 2019. With that in mind, today, we are reaffirming the sales and earnings per share growth guidance that we laid out on our fourth quarter earnings call. Remember that we guide off GAAP, so fiscal 2019 guidance will launch from our reported results for fiscal 2018, which includes sales and earnings associated with the 53rd week. When we report our quarterly comp sales results, we will compare weeks 1 through 52 in fiscal 2019 against weeks 2 through 53 in fiscal 2018. For fiscal 2019, we expect comp sales as calculated on a 52-week basis to increase by approximately 5%. We expect sales to increase by approximately 3.3%, reflecting the compare of 53 weeks last year. For earnings per share, we expect fiscal 2019 diluted earnings per share to grow approximately 3.1% to $10.03. Our earnings per share guidance includes our plan to repurchase approximately $5 billion of outstanding shares during the year.

我們的 2019 年計畫的基礎已經到位。儘管如此，自從我們制定計劃以來，有兩個因素發生了變化。首先，最近有消息指出部分關稅將提高至25%。我們正在研究這些關稅的影響，因此沒有將其納入今天的指導中。第二，更直接的是，我們看到木材價格大幅下跌。您會記得，我們​​的銷售預測模型不包括商品價格通膨或通貨緊縮。如果木材價格維持在今天的水平，這可能會對2019財年的銷售成長計​​畫造成高達8億美元的損害。但由於我們無法預測木材價格的變化，而且今年才剛開始一個季度，因此目前我們不會改變 2019 財年的銷售額或每股收益預期。考慮到這一點，今天我們重申我們在第四季財報電話會議上提出的銷售額和每股盈餘成長預期。請記住，我們是根據 GAAP 來製定指導的，因此 2019 財年指引將從我們報告的 2018 財年業績開始，其中包括第 53 週相關的銷售額和收益。當我們報告季度可比銷售結果時，我們將 2019 財年的第 1 至 52 週與 2018 財年的第 2 至 53 週進行比較。對於 2019 財年，我們預計以 52 週計算的同店銷售額將成長約 5%。我們預計銷售額將成長約 3.3%，與去年的 53 週相比。對於每股收益，我們預計 2019 財年每股攤薄收益將成長約 3.1% 至 10.03 美元。我們的每股盈餘預期包括我們計劃在今年回購約 50 億美元流通股。

So we thank you for your participation in today's call, and we are now ready to take questions.

感謝您參加今天的電話會議，現在我們準備好回答問題。

(Operator Instructions) Our first question comes from the line of Simeon Gutman with Morgan Stanley.

（操作員指示）我們的第一個問題來自摩根士丹利的西緬古特曼 (Simeon Gutman)。

Can you hear me?

你聽得到我嗎？

Yes.

是的。

Yes.

是的。

Okay. Sorry about that. Carol, congratulations and good luck. My first question is -- I have -- it's 2 parts so don't count this as my follow-up.

好的。很抱歉。卡羅爾，祝賀你並祝你好運。我的第一個問題是——我有——它分為兩個部分，所以不要將其算作我的後續問題。

We won't.

我們不會。

I realize you don't give quarterly guidance. But for this context, I think it's helpful if you can share with us what the internal expectation for Q1 was and how much it underperformed. And I appreciate you made the 4.5% comment ex weather, ex lumber. Because are you making up 50, 100 basis points for the year? And I get -- it sounds like lumber could end up being around a 70 basis point headwind. And then the second part of that is, if it is mostly weather, do we think about you making most of it up in the second quarter and a little in the third, but we leave the fourth quarter alone?

我知道您沒有提供季度指引。但就此而言，如果您能與我們分享第一季的內部預期以及表現不佳的程度，我認為這會很有幫助。我很感謝您對天氣、木材等提出 4.5% 的評論。因為今年您要彌補 50、100 個基點嗎？我明白了——聽起來木材最終可能會遭遇約 70 個基點的逆風。然後第二部分是，如果主要是天氣原因，我們是否會考慮在第二季度彌補大部分，在第三季度彌補一點，但我們不會影響第四季度？

Well, thank you for your questions, Simeon. As you point out, we normally don't provide our quarterly plan, but I will tell you that our plan for the first quarter of 2019 was a comp of 4.5%. So if you look through the weather noise in February as well as the lumber deflation, we were very pleased with our first quarter results. The other thing that I will remind you all of is that we are comping this year $800 million of hurricane-related sales. $500 million of those hurricane-related sales took place in the first quarter of last year. So our compares get much easier as we look to the back half of the year.

好吧，謝謝你的提問，西緬。正如您所指出的，我們通常不提供季度計劃，但我可以告訴您，我們 2019 年第一季的計劃是 4.5% 的同比增長。因此，如果您查看二月的天氣噪音以及木材通貨緊縮，我們對第一季的業績非常滿意。我要提醒大家的另一件事是，我們今年的颶風相關銷售額達到了 8 億美元。其中 5 億美元的颶風相關銷售發生在去年第一季。因此，當我們展望今年下半年時，我們的比較就會變得容易得多。

Now to your question about whether and will we recover it. This is very different than what we saw a year ago in the first quarter, which was very much an April story that impacted our garden department. The weather in February impacted our business. 17 of 19 regions were negative. The majority of our selling departments were negative. Our transactions were negative 2.5% for the month of February alone. Our big-ticket was flat in the month of February. Those sales are coming back as the weather improves. Part of those sales are related to our Pro customer, and we understand from our Pros that they have backlogs that are in excess of 90 days.

現在回答你的問題：我們是否以及將會恢復它。這與我們去年第一季看到的情況非常不同，當時四月的情況對我們的園藝部門影響很大。二月的天氣影響了我們的生意。19個地區中，17個地區呈陰性。我們大多數銷售部門都持負面態度。光是二月份，我們的交易量就下降了2.5%。二月份我們的大額票銷售持平。隨著天氣轉好，銷售額正在回升。其中一部分銷售與我們的專業客戶有關，我們從專業客戶那裡了解到，他們的積壓訂單超過 90 天。

So those sales will come into the second quarter and continue into the third quarter. That's what gives us confidence to reaffirm the guidance of a 5% comp for the year, albeit there is lumber price deflation, and it continues into May, actually. If we look through lumber price deflation, our May results are performing as we expected. But we thought it was important to get that lumber price deflation number out there for you because we can't predict. Too early in the year to know what's going to happen to lumber prices, but we thought we should give you the number.

因此這些銷售將進入第二季並持續到第三季。這使我們有信心重申今年 5% 的同比增速預期，儘管木材價格出現通貨緊縮，而且實際上這種情況將持續到 5 月。如果我們看一下木材價格通貨緊縮，我們五月的業績表現正如我們預期的那樣。但我們認為向您提供木材價格通貨緊縮數字非常重要，因為我們無法預測。今年還太早，無法知道木材價格會發生什麼變化，但我們認為應該給您一個數字。

Great. That's helpful. And then maybe just to clarify, and this will be the follow-up. So you initially guided the back half, I think it was about 250 basis points stronger than the first half. And you've made the case around hurricane, I think you just said $800 million at least in the first half of this year, and then now we have lumber. And so that doesn't -- I think if we do the math, that doesn't leave as much of a spike as far as other initiatives go as far as the pickup that's required in the back half. Is that fair? And maybe can you just quantify what is outside? What needs to happen from the business to get stronger outside from the lapping of weather and now, unfortunately, I guess, lumber deflation?

偉大的。這很有幫助。然後可能只是為了澄清，這將是後續行動。所以您最初對下半年的預測是，我認為它比上半年強約 250 個基點。您已經提到了颶風問題，我想您剛才提到今年上半年至少損失了 8 億美元，現在我們又損失了木材。所以，我認為，如果我們進行計算，就不會發現與其他舉措相比，這會帶來後半部分所需的增長那麼大。這樣公平嗎？也許你能量化外面的事物嗎？企業需要採取什麼措施才能在惡劣天氣和現在不幸的木材緊縮的情況下變得更強大？

So just as a point of clarification on the hurricanes, it's $800 million for the year, $500 million in the first half, $300 million in the back half. So clearly, the hurricane compares get much easier in the back half. As we look at the shape of the year today, we would expect that the back half comps to be more than 2x the first half comps, principally because of those hurricane compares but more importantly, because of the initiatives that we are investing into. One of those initiatives being the B2B website that we've talked to you about. And Craig, maybe you want to talk about what we're seeing or Bill Lennie, what we're saying with the B2B website?

因此，需要澄清一下關於颶風的損失，全年損失為 8 億美元，上半年為 5 億美元，下半年為 3 億美元。因此顯然，颶風在後半段變得容易得多。當我們今天回顧今年的情況時，我們預計下半年的可比銷售額將是上半年可比銷售額的兩倍多，這主要是因為颶風的衝擊，但更重要的是因為我們正在投資的舉措。其中一項措施就是我們與您討論過的 B2B 網站。克雷格，也許你想談談我們看到的情況，或者比爾·倫尼，我們對 B2B 網站的看法是什麼？

Yes. We're actually very pleased. I'll let Bill jump in here. We added 35,000 customers in the quarter, and we expect to have 1 million customers up by the end of the year.

是的。我們確實非常高興。我讓比爾跳進來。我們本季增加了 35,000 名客戶，預計到年底客戶數量將達到 100 萬名。

Yes. Simeon, we're migrating customers as new website capabilities come onboard. I'll give you just a few examples of the capabilities we added in Q1. We added an administrator in user hierarchy, which allows administrators or account owners to add purchasers or users. We also now allow customers to easily link their purchases to QuickBooks and upload their purchase history. Then we also made localization much easier. Our Pro customers shop across multiple cities, multiple stores. This allows them to save their stores they shop and easily localize their purchases.

是的。西緬，隨著新網站功能的推出，我們正在遷移客戶。我將向您舉幾個我們在第一季添加的功能的例子。我們在使用者層次結構中新增了管理員，允許管理員或帳戶擁有者新增購買者或使用者。我們現在還允許客戶輕鬆地將他們的購買連結到 QuickBooks 並上傳他們的購買記錄。然後我們也使本地化變得更加容易。我們的專業客戶在多個城市、多家商店購物。這使得他們能夠保存他們購物的商店並輕鬆本地化他們的購買。

And then in Q2, next up, we'll enable the Pro purchase card, which is our legacy Interlink customer shopping in Home Depot stores. They'll be able to use that Pro purchase card online and have their purchases attributed back to their account. We'll make buy it again easier for them. It will be an auto-populated page based on their recent purchase history, both in-store and online. And then we have a redesigned homepage coming up that's going to be based on our feedback from Test & Target on 1,500 customers that just more personalizes that experience, makes it easier for them to transact. So it is early days. It's too early to comment on sales lift, but the experience that we're delivering is all about engagement like Craig said. And we know the more that we take friction out of the ability to transact, the more our customers engage. So early days, but pleased with the capabilities, pleased with the results that we're seeing from the customers that are active.

然後在第二季度，我們將啟用 Pro 採購卡，這是我們傳統的 Interlink 客戶在 Home Depot 商店購物時使用的。他們將能夠在線上使用該 Pro 採購卡，並將他們的採購記入他們的帳戶。我們將使他們能夠更輕鬆地再次購買。它將根據客戶最近的購買歷史（包括店內和線上）自動填入的頁面。然後，我們將推出一個重新設計的主頁，該主頁將基於我們對 1,500 名客戶的 Test & Target 回饋，以更個人化的體驗讓他們更輕鬆地進行交易。因此現在還為時過早。現在評論銷售成長還為時過早，但正如克雷格所說的，我們提供的體驗完全取決於參與度。我們知道，我們越能消除交易過程中的摩擦，我們的客戶就會越多參與。雖然還處於早期階段，但我們對產品的功能感到滿意，並對從活躍客戶看到的結果感到滿意。

Our question comes from the line of Michael Lasser with UBS.

我們的問題來自瑞銀的麥可‧拉瑟 (Michael Lasser)。

Carol, congratulations and best wishes. There's not enough nice things we can say. Thank you for everything. With sales coming in below your expectations in 1Q and some of the challenges lingering into 2Q, at what point in the year do you start to see downside risk to the full year guidance if sales do not improve? Is that window as soon as June or July? Or do you think even if 2Q is softer than you expect, you can maintain that full year 5% comp expectation?

卡羅爾，祝賀你並致以最良好的祝愿。我們能說的美好話語還不夠多。謝謝你所做的一切。由於第一季的銷售額低於您的預期，且一​​些挑戰延續到第二季​​度，如果銷售額沒有改善，您會在一年中的什麼時候開始認為全年預期會面臨下行風險？這個時間窗口最早是在六月或七月嗎？或者您認為，即使第二季的表現弱於您的預期，您仍能維持全年 5% 的年成長預期？

Michael, we'll have to see how the second quarter actually plays out as it relates to lumber. Clearly, when you look at the first quarter, the 2 big impacts were the situation in February where, really, it was pretty horrible across the country, and then lumber. And if you think about lumber for a minute, and I'll let Ted get into some of the feedback that we're hearing from our suppliers. But lumber has a lot of factors. And when you think about -- we won't know until we see what the environment is and what the storm situation may look like this year. It's predicted to be another potentially active year. That could change a lot of things, but we're also hearing some information from our suppliers.

邁克爾，我們必須看看第二季與木材相關的實際表現如何。顯然，當你看第一季時，兩個最大的影響是二月份的情況，當時全國各地的情況確實相當糟糕，然後是木材。如果你考慮一下木材，我會讓泰德談談我們從供應商那裡聽到的一些回饋。但木材有很多因素。想想看——我們只有看到環境如何以及今年的風暴情況如何，才會知道。預計今年又將是潛在活躍的一年。這可能會改變很多事情，但我們也從供應商那裡聽到了一些資訊。

Yes. So on lumber, the situation this year is really the exact opposite of last year. So last year, the mills had a shortage of logs, and we had some early housing activity. So lumber prices went to all-time highs. Those peaked at -- toward the end of May of 2018. This year, the mills were able to harvest their logs. They had a tremendous amount of inventory on the log decks. And at the same time with the wet February, we had the slowest start to housing. So it was an exact opposite year. And so prices have fallen and some categories, as I said, OSB, as much as 50%. So what we're hearing now is the mills are working through their backlog of logs. The mills had not been able to curtail earlier in this year because you've got to process the logs because they get wet and soggy and start to mold. They've worked through a lot of that backlog, and we're starting to see some of the first curtailments. But again, it's very early days. We're going to need to see a rebound in spring in housing construction. That's where lumber prices are set, set on the margin in the distributor channel, not the retail channel. Our units are terrific. Given our units, we'd be expecting to see lumber prices going up.

是的。因此就木材而言，今年的情況與去年完全相反。因此，去年，工廠出現原木短缺的情況，我們提前進行了一些住房活動。因此木材價格創下歷史新高。這些在 2018 年 5 月底達到頂峰。今年，工廠已經能夠收穫原木了。他們在原木甲板上有大量庫存。同時，由於二月天氣潮濕，我們的房屋建設開工速度最慢。所以這是完全相反的一年。因此價格下降了，一些類別，正如我所說的，OSB，價格下降了 50%。我們現在聽到的是，工廠正在處理積壓的原木。今年早些時候，工廠無法減產，因為必須對原木進行加工，因為原木會變得潮濕、有泥土並開始發黴。他們已經處理了大量積壓工作，我們也開始看到一些首批削減。但現在還為時過早。我們需要看到春季住房建設的反彈。這就是木材價格的製定方式，是根據分銷商通路的利潤而不是零售通路的利潤來制定的。我們的部隊非常棒。根據我們的單位，我們預計木材價格將會上漲。

Exactly.

確切地。

But unfortunately, the price is set at the margin through the wholesale distribution, which has a lot more to do with housing starts. So as weather clears up, mills curtail, logs get worked, there is promise for the back of the year. So that's why, again, we laid out the risk but haven't called it.

但不幸的是，價格是透過批發分銷確定的，這與住房開工有很大關係。因此，隨著天氣轉晴，工廠減產，原木開始加工，今年後市的前景一片光明。所以這就是為什麼我們再次指出了風險但我們沒有意識到。

Okay. And recognizing -- and putting aside the lumber deflation, recognizing that your model is heavily influenced by overall GDP growth and home price appreciation, if you look at any of your sales by category, are any of them showing a correlation to housing turnover? There is evidence that some of your specialty competitors in areas like flooring are exhibiting weakness in a pretty tight correlation to housing turnover. So if you're not seeing that, why do you think that is the case?

好的。並且認識到——拋開木材通貨緊縮，並認識到您的模型受到整體 GDP 增長和房價升值的嚴重影響，如果您按類別查看任何銷售額，它們是否與房屋成交量有相關性？有證據表明，您在諸如地板等領域的一些專業競爭對手在與住房週轉率密切相關的領域中表現出疲軟態勢。那麼如果您沒有看到這一點，您認為為什麼會發生這種情況？

I mean we look -- on a continual basis, we look at discretionary categories. And we don't see a direct correlation to any movement in discretionary categories. Matter of fact, you think -- look at things like closet organization, which is purely discretionary, and we feel good about those kind of businesses. There has clearly been a shift in the flooring business to vinyl, which has had some impact on some other categories, but we don't see anything right now that would indicate a change.

我的意思是，我們會持續關注可自由支配的類別。我們沒有看到其與可自由支配類別的任何變動有直接的關聯。事實上，你想——看看像壁櫥整理這樣的東西，這完全是自主決定的，我們對這類業務感覺很好。地板業務顯然已經轉向乙烯基，這對其他一些類別產生了一定影響，但目前我們還沒有看到任何跡象表明會發生變化。

So Craig, even though housing turnover's been under considerable amount of pressure over the last several months, it's not having an impact on any real category within your portfolio despite the fact that in the past, it's been a pretty influential driver of the overall business?

那麼 Craig，儘管過去幾個月住房週轉率承受了相當大的壓力，但它並沒有對您的投資組合中的任何實際類別產生影響，儘管過去它一直是整體業務的一個相當有影響力的驅動因素？

Yes. Michael, you've just written a report on this, which was really helpful that there's been a disconnect between housing turnover and sales performance. And we went back in and tried to correlate turnover to our departments to see if there was any correlation and we couldn't see it. Now our flooring department was one of our slower-growing departments in the quarter, but that isn't a correlated to housing turnover. We think we have some opportunities within the mix.

是的。邁克爾，你剛剛寫了一份關於這個主題的報告，它非常有幫助，表明住房週轉率和銷售業績之間存在脫節。我們回去後試圖將營業額與我們的部門聯繫起來，看看是否有關聯，但我們沒有發現。現在我們的地板部門是本季成長較慢的部門之一，但這與房屋週轉率無關。我們認為我們在這種組合中擁有一些機會。

Yes. The dynamic in flooring and these things are trends, and trends will reverse themselves. We saw a meaningful shift to hard surface flooring over the past several years. That went into tile, that then went into wood-look tile with not rectangular -- or not square but more rectangular shape. And then the last couple of years, luxury vinyl plank arrived on the scene. And it's an incredibly innovative product because you can put it below subfloors. It's waterproof. It's unbelievably easy to lay. You don't obviously have to get tile set material. You don't have to level floors. It's so much faster for our Pros. So we've had unbelievable growth in the last 3 years, and it just continues. That all-in is a lower price point, lower all-in basket because you're not getting set materials, grout, et cetera. It's certainly less expensive for the Pro to lay. So that's part of the mix shift that Carol is talking about. That's not to say that there isn't still plenty of demand for soft surface and tile and wood and laminate. And we need to do a better job responding on our mix in those categories as we put a lot of emphasis on the plank, and we've got some work to do on mix in the other categories.

是的。地板的動態和這些東西都是趨勢，而趨勢會自我逆轉。在過去的幾年中，我們看到了向硬地板的重大轉變。然後用它製成瓷磚，然後製成木紋瓷磚，形狀不是矩形——或者不是正方形，而是更接近矩形。近幾年，豪華乙烯基板開始出現。這是一個極具創新性的產品，因為你可以把它放在地板下方。它是防水的。鋪設起來非常簡單。顯然，您不必獲取瓷磚設置材料。您不必將地板弄平。對於我們的專業人士來說，這要快得多。因此，我們在過去三年中實現了令人難以置信的成長，而且這種成長仍在繼續。由於您沒有獲得固定材料、水泥漿等，所以整體價格點較低，總價較低。對 Pro 來說，鋪設成本肯定更低。這就是卡羅爾所說的混合轉變的一部分。這並不是說對軟表面、瓷磚、木材和層壓板的需求不再很大。我們需要在這些類別中更好地應對我們的混合，因為我們非常重視平板支撐，而且我們在其他類別的混合方面也需要做一些工作。

Our next question comes from the line of Christopher Horvers with JPMorgan.

我們的下一個問題來自摩根大通的克里斯多福‧霍佛斯 (Christopher Horvers)。

And my congratulations to you as well, Carol. I think you're -- I started following your company in '03, and I think you're the last remaining C-suite person. So congratulations in, obviously, just a tremendous career. My question -- my first question is, at the start of the year, you mentioned that the first half would be 250 bps below on a comp basis, but the second half -- first of the second half, but on a stack basis, relatively flat. You do lap a big May a year ago on the seasonal shift. Should we think about 2Q on a 2-year stack basis? Or do we do a little better considering that the shift to the Pro that you talked about out of February into later in the year, presumably, you had planned May down given the compare?

我也向你表示祝賀，卡羅爾。我想你是——我從 2003 年開始關注你的公司，我想你是最後一位還在任的主管。所以，當然要祝賀你，你取得瞭如此輝煌的職業生涯。我的第一個問題是，在今年年初，您提到上半年的利潤率將比同期高出 250 個基點，但下半年——下半年上半年的利潤率將相對持平。你確實在一年前的五月就因季節轉變而度過了一個大轉折。我們是否應該以兩年堆疊為基礎來考慮第二季度？或者，考慮到您談到的從二月份到今年晚些時候的 Pro 轉變，我們是否會做得更好一些，大概是考慮到比較，您計劃在五月份有所下降？

I think the easiest way to think about Q2 is that the comp rate should be higher than what we reported in the first quarter because the stacking gets a little confusing because of the calendar shift. And if I could change the calendar shift, trust me, I would. I wish I could have done that before because it just confuses the heck of things. But I would just think that's the easiest way to think about the -- your model.

我認為思考第二季最簡單的方式是，同店銷售率應該高於我們在第一季報告的水平，因為日曆的變化導致堆疊變得有點混亂。如果我可以改變日曆的時間，相信我，我會的。我希望我以前能這樣做，因為它只會讓事情變得更加混亂。但我認為這是思考模型最簡單的方法。

Okay. And do you have a sense of like shifting that to weeks 2 to 14 last year? Obviously, you flowed that through the top line impact. But presumably, the compare -- the comparison itself was harder than what you would -- what you reported last year. So is there -- have you been able to quantify or you looked at that in terms of what 1Q would have looked like a year ago if you had 2 to 14 in the comp base -- in the comp calendar?

好的。您是否想將其從去年的 2 週轉移到 14 週？顯然，您已經透過頂線影響力實現了這一點。但據推測，比較本身比你去年報告的還要困難。那麼，您是否能夠量化，或者您是否能夠根據一年前的第一季的情況來看待這個問題，如果在公司日曆中公司基數為 2 到 14，那麼第一季度的情況會是怎樣的？

Yes. So if -- yes, if we hadn't shifted the calendar, our unshifted comps would have been 5.8%. And I can give that to you by month, if you'd like. The unshifted comp for February, 2.6%; for March; 5.5%; and for April, 8.1%.

是的。所以如果——是的，如果我們沒有改變日曆，那麼我們的未改變的可比收入將是 5.8%。如果您願意的話，我可以按月給您。2 月未變動利率為 2.6%；三月； 5.5%； 4月份，這一數字為8.1%。

Got it. Then as a follow-up, on lumber deflation, that obviously impacts sales. But do you maintain gross margin -- does the margin rate sort of work in the opposite direction such that while you lose sales, are gross profit dollars roughly the same? So in other words, if there is risk around deflation, it seems like is that more of a top line risk but not necessarily a bottom line risk?

知道了。接下來，木材通貨緊縮顯然會影響銷售。但是您是否能維持毛利率－利潤率是否會朝相反的方向變化，即雖然您的銷售額有所損失，但毛利是否大致相同？換句話說，如果存在通貨緊縮風險，那麼這似乎更多的是一種營收風險，而不一定是營收風險？

It's a top line risk because margin is one of our lowest -- lumber is one of our lowest-margin categories. A lower penetration of a lower-margin category is good for the gross margin. So while we called out the risk to the top line if lumber prices stay where they are today, we didn't call out any risk to the bottom line because there really isn't much risk to the bottom line.

這是一項最高風險，因為利潤率是我們最低的類別之一——木材是我們利潤率最低的類別之一。低利潤類別的滲透率較低對毛利率有利。因此，雖然我們指出，如果木材價格維持在目前的水平，將對營業收入造成風險，但我們並沒有指出對利潤造成任何風險，因為利潤實際上並沒有太大的風險。

Our next question comes from the line of Peter Benedict with Baird.

我們的下一個問題來自貝爾德的彼得·本尼迪克特。

Carol, my congratulations as well. It's been great to work with you. The -- for my first question and just looking back into the garden sales category, I think it was called out as being above -- I think last year, it was a 200-plus basis point headwind. Can you maybe give us a sense of just how impactful garden was at least here in the first quarter, shifted or unshifted, however you'd like to do it? That's my first question.

卡羅爾，我也向你表示祝賀。與您共事非常愉快。對於我的第一個問題，回顧一下花園銷售類別，我認為它被稱為高於——我認為去年，它是一個超過 200 個基點的逆風。您能否讓我們了解花園至少在第一季的影響有多大，無論您想如何做，花園是否轉移？這是我的第一個問題。

Well, I would say, in garden, we've planned for, if there is such a thing, a more normal spring. It turned out it wasn't as normal as we'd like. But what you saw when we called out above the comp -- company comp, particularly in indoor garden, that was all driven by a consumer response to just fantastic innovative product. And we've talked about product innovation. Consumer finding the value in the store. The Pro finding the tool to help them save time and save money on their jobs. And we have just such terrific product in outdoor power equipment, particularly as cordless technology moves into that space with our new grills, with pellet grills led by Traeger, which is an exclusive to us, by far the dominant player in pellet grills, new patio collections. So despite the not-so-great weather, the customer responded to the product and the values. And that's what really drove the business. Live goods, for example, has some room to make up, which we're looking forward to in Q2. And that's obviously weather-driven. And when we get great weather, our live goods are selling double digits and obviously, when it's cold and rainy on a weekend, not so much. But really pleased with the garden business. Again, you wouldn't think it would be as strong given the weather we talked about, but it's really product and value.

好吧，我想說，在花園裡，如果有這樣的事情的話，我們已經計劃了一個更正常的春天。事實證明事情並不像我們想像的那麼正常。但是，當我們提到公司競爭對手時，特別是室內花園公司，您會看到，這一切都是由消費者對出色的創新產品的反應所驅動。我們也討論了產品創新。消費者在商店中發現價值。專業人士找到了可以幫助他們節省工作時間和金錢的工具。我們在戶外電動設備方面就有如此出色的產品，特別是隨著無線技術通過我們的新烤架進入該領域，其中以 Traeger 為首的顆粒烤架是我們獨家代理，是迄今為止顆粒烤架和新露台系列的主導者。因此，儘管天氣不太好，客戶仍然對產品和價值做出了回應。這才是真正推動業務發展的因素。例如，活體商品還有一些彌補空間，我們期待在第二季實現這一目標。這顯然是由天氣引起的。天氣好的時候，我們的鮮活產品銷售量可以達到兩位數，而當週末天氣寒冷多雨時，銷售量顯然就不會那麼多。但對花園生意確實很滿意。再說一遍，考慮到我們談論的天氣情況，你可能不會認為它會那麼強勁，但它確實是產品和價值。

Okay. That's helpful. And then just -- I think you called out earlier, something around appliances that the customer service scores were up. I'm just curious if you guys can give us an update of where you guys are in terms of delivery, the DTC Delivery capabilities, same day, 1 day. And just anything to call out there in terms of progress you're making on being more convenient for your customers.

好的。這很有幫助。然後——我想您之前提到過，有關家用電器的一些事情，客戶服務分數上升了。我只是好奇你們能否向我們介紹一下你們在交付方面的最新情況，DTC 交付能力，當天交付，1 天交付。並且您可以就您在為客戶提供更多便利方面所取得的進展提出任何建議。

I'll make a comment, and I'll turn it over to Mark. So 2018 was really the year that we put pilots in place and 2019 moving forward through 2022, will be the roll-out of those. And so Mark, if you want to provide an update?

我會發表評論，然後將其交給馬克。因此，2018 年實際上是我們進行試點的一年，而 2019 年到 2022 年將是這些試點的全面推廣年。那麼馬克，你想提供最新消息嗎？

Sure. Thanks, Craig. Yes. We -- first off, in terms of next day and -- or 1-day delivery coverage from our Home Depot Pro distribution centers, formerly Interline, we already have coverage today via private fleet trucks for all our Home Depot Pro customers in all major metropolitan areas. When you look at parcel shipping capability from our direct fulfillment centers with second day or faster delivery for over 90% of the population, we're at next day for 36% of the population. We've begun to retrofit our Hagerstown, Maryland direct fulfillment center for further parcel shipping. And because of its proximity to the population centers of the Northeast, that will get us to next-day delivery of parcel for 50% of the U.S. population by the end of this quarter. We'll further improve our next-day delivery capability with our new direct fulfillment centers under development in both Dallas and up in the Pacific Northwest near Seattle. And then when it comes to stores, we deliver from stores every day as well. And we've talked in the past about our delivery partnerships with Deliv and Roadie for crowd-sourced delivery via car and van. And that's now available to 40% of the U.S. population for car, 70% for van. And what that means for customers is we've got same-day delivery available for orders placed by 2:00 p.m. and next day after that time. And by the end of Q2, we'll have the same day and next day capabilities for small parcel items from stores moving from 40% to 50% of the population. So our delivery keeps getting faster. And that's very important because our data show that every time we take time out of the delivery lead time, we increase conversion. We've got new data tools that are helping us to know what products to stock where and what delivery options to enable. Those tools can help us with understanding hey, if we take a day out of power tools versus a day out of power tool accessories, which creates more value to our customers in terms of conversion, and we can tell that across the departments and classes in the company.

當然。謝謝，克雷格。是的。首先，就我們的 Home Depot Pro 配送中心（以前稱為 Interline）的隔日或 1 天送達服務而言，我們今天已經透過私人車隊卡車為所有主要大都市地區的 Home Depot Pro 客戶提供服務。當您查看我們直接配送中心的包裹運輸能力時，您會發現 90% 以上的人口可以在第二天或更短的時間內送達，而對於 36% 的人口，我們可以在第二天送達。我們已經開始改造位於馬裡蘭州黑格斯敦的直接配送中心，以便進一步運送包裹。由於它靠近東北部人口中心，到本季末我們將能夠為 50％ 的美國人口提供次日送達的包裹服務。我們將透過在達拉斯和西雅圖附近的太平洋西北地區建造新的直接配送中心來進一步提高我們的隔天送達能力。至於商店，我們每天也會從商店出貨。我們過去曾談論過與 Deliv 和 Roadie 建立配送合作夥伴關係，透過汽車和貨車進行眾包配送。目前，40% 的美國人口可以擁有汽車，70% 的美國人口可以擁有貨車。對於顧客來說，這意味著下午 2:00 之前下的訂單我們就可以當天送達。以及該時間之後的第二天。到第二季末，我們將為涵蓋 40% 至 50% 人口的商店提供當日和隔天送達的小包裹服務。因此我們的配送速度越來越快。這非常重要，因為我們的數據顯示，每當我們縮短交貨時間，轉換率就會提高。我們有了新的數據工具，可以幫助我們了解在哪裡儲存什麼產品以及啟用哪些配送選項。這些工具可以幫助我們了解，如果我們花一天時間在電動工具上，而不是花一天時間在電動工具配件上，這會在轉換方面為我們的客戶創造更多價值，我們可以在公司的各部門和班級中做到這一點。

Our next question comes from the line of Scot Ciccarelli with RBC.

我們的下一個問題來自 RBC 的 Scot Ciccarelli。

Scot Ciccarelli. Actually, another delivery question. And I appreciate all the color there, but when you look specifically at your Pro sales, I'm sure it depends on category. What percent of your Pro sales today are delivered to a Pro's job site? And then how do you think that evolves as you build out your supply chain in the delivery capabilities you were just talking about?

斯科特·西卡雷利。實際上，這是另一個交付問題。我很欣賞那裡的所有顏色，但當你具體看你的專業銷售時，我確信這取決於類別。今天您的專業銷售中有多少百分比是交付給專業人士的工作現場的？那麼，您認為當您在剛才談到的交付能力中建立供應鏈時，這將會如何發展？

Yes. Scott, for competitive reasons, obviously, we won't share the specific data on that. But we believe that delivery is important for the Pro. In particular segments of the Pro customers, it's important to be able to get them what they need when they need it so that they can depend on that service. And that's what we're working to do.

是的。斯科特，出於競爭原因，顯然我們不會分享有關的具體數據。但我們相信交付對 Pro 來說很重要。對於專業客戶的特定群體來說，在他們需要的時候能夠得到他們需要的東西以便他們能夠依賴該服務非常重要。這正是我們正在努力做的事情。

Yes. And Craig, a little bit more color on that. We're definitely designing our delivery offerings around key Pro use cases. For instance, we'll be opening our new flatbed delivery center out of Dallas later this year. That's really a Pro-oriented delivery with the flatbed trucks with the Moffett on the back able to put it on the job site. Also, we've implemented those 2- and 4-hour delivery windows that give our Pro reliability in terms of when a delivery will be there so that they can count on their crews being kept busy by having very timely delivery.

是的。克雷格，對此再詳細闡述。我們肯定會圍繞關鍵的專業用例來設計我們的交付產品。例如，我們將於今年稍晚在達拉斯開設新的平板配送中心。這確實是一種面向專業人士的送貨，使用後面裝有 Moffett 的平闆卡車將其運送到工作現場。此外，我們還實施了 2 小時和 4 小時的送貨時間窗口，以確保我們的專業人員能夠可靠地知道送貨時間，這樣他們就可以依靠他們的工作人員及時送貨，避免忙碌。

So let me ask this, presumably, as you build out that capability, more and more people will wind up taking advantage of it, presumably. That's why you're making it. But how should we think about that -- the margin implications as the delivery to job site mix grows?

所以讓我問一下，想必隨著這種能力的增強，越來越多的人會最終利用它。這就是你這麼做的原因。但是，我們該如何看待這個問題──隨著工地配送範圍擴大，利潤會受到什麼影響？

It's an all-in calculation that we use, obviously. And as you grow with the Pro that actually uses delivery, it gives us an opportunity to much more effectively compete against the distribution houses and the lumber and building material yards that provide the service and we look at as an all-in cost of operation, considering what we get on the trucks and what kind of gross margin dollars that actually provides.

顯然，這是我們採用的全盤計算方法。隨著您與實際使用送貨服務的 Pro 一起成長，它為我們提供了更有效地與提供服務的配送公司和木材和建築材料場競爭的機會，我們將其視為全運營成本，考慮到我們從卡車上獲得的收入以及實際提供的毛利率。

Yes. And Craig, we manage this as a portfolio, as you said. And we have seen that when our Pros engage with us in delivery, they buy more across the portfolio. So it's an important portfolio management tool for us.

是的。克雷格，正如您所說，我們將其作為投資組合進行管理。我們已經看到，當我們的專業人士與我們合作交付時，他們會在整個產品組合中購買更多產品。所以對我們來說它是一個重要的投資組合管理工具。

And you get that blend with the Pro. The overall margin with the Pro on a blended basis is very comparable to the DIY customer.

您可以透過 Pro 獲得這種混合。Pro 的綜合利潤與 DIY 客戶非常相似。

Our next question comes from the line of Seth Sigman with Crédit Suisse.

我們的下一個問題來自瑞士信貸的塞思·西格曼 (Seth Sigman)。

Carol, again, congrats to you. A couple points I wanted to follow up on. First, on the deflation, you talked about lumber being an 80 basis point headwind, can you just give us a sense of the total commodity deflation impact comparable to sort of how you guys have disclosed it the past? And then the second part of the question is around just sort of broader inflation that you're seeing across the store. Outside of the commodity categories, sort of any trends that you're seeing? What are you guys seeing from vendors? And how are you trying to sort of manage through that from a retail price perspective?

卡羅爾，再次恭喜你。我想要跟進的有幾點。首先，關於通貨緊縮，您談到木材是 80 個基點的逆風，您能否給我們介紹一下總體商品通貨緊縮的影響，與您過去披露的情況相比如何？問題的第二部分與您在整個商店中看到的更廣泛的通貨膨脹有關。除商品類別之外，您還看到了什麼趨勢？你們從供應商看到了什麼？從零售價格角度來說，您打算如何解決這個問題？

Sure. If you look at the commodity business, excluding lumber, we look at building materials and copper, and there was actually a slight inflation in the quarter. About 30 basis points of growth came from commodity inflation. That was offset, obviously, by the stronger U.S. dollar because that was deflating so it kind of works its way out. And then in terms of just general inflation across the store...

當然。如果你看一下大宗商品業務，不包括木材，我們看一下建築材料和銅，就會發現本季實際上出現了輕微的通貨膨脹。約30個基點的成長來自商品通膨。顯然，這被走強的美元所抵消，因為美元正在通貨緊縮，所以它在某種程度上得到了緩解。然後就整個商店的總體通貨膨脹而言...

Yes. I mean I would say that has abated. So we track -- it's working with our finance partners very closely. All requests for cost changes from our supplier base, our own costs with our direct import product label, supporting private-label products, that had ramped up meaningfully over 2018. And as we went into '19, I wouldn't say it's reversed, that we have a tidal wave of a cost-out opportunity, but the pressure has subsided. So this is all putting aside the new tariff, I would say, we're in a neutral to slightly positive cost position even excluding the lumber deflation. On the tariffs, so we increased the Phase 3 tariffs on all products shipped out of China from May 10. So nothing has landed yet, think of 3 odd weeks to cross the Pacific ocean. So we're looking at the end of this month, the increase on the tariffs, of $200 billion of product going from 10% to 25%. For us, that's about, call it, $1 billion. So the tariffs we've already received through 2018, we've said it's manageable. It was roughly $1 billion impact. Should these new tariffs hold, it will be an incremental $1 billion. So, call it, less than 1% of our total sales. So it'll certainly be more acute in certain categories. But as we repeatedly say, we run the business as a portfolio. And 1% in aggregate of sales, a little harder but -- to manage. But still, I would call, a manageable category.

是的。我的意思是我想說這種情況已經減弱了。因此，我們一直與金融合作夥伴保持密切合作。我們供應商基地的所有成本變更請求、我們直接進口產品標籤的成本、支援自有品牌產品的成本在 2018 年都大幅增加。當我們進入2019年時，我不會說情況發生了逆轉，我們面臨著巨大成本降低機會，但壓力已經減輕。因此，拋開新的關稅不談，我想說，即使排除木材通貨緊縮的影響，我們的成本狀況還是中性到略微積極的。關於關稅，我們從 5 月 10 日起提高了所有從中國運出的產品的第三階段關稅。所以什麼都沒落地，想想要花三個星期才能穿越太平洋。因此，我們預計本月底，價值 2000 億美元的產品的關稅將從 10% 增加到 25%。對我們來說，這個數字大約是 10 億美元。因此，我們說 2018 年已經收到的關稅是可控的。影響金額約10億美元。如果這些新關稅保持不變，則增量將達到 10 億美元。因此，可以說它不到我們總銷售額的 1％。因此，在某些類別中，這種情況肯定會更加嚴重。但正如我們反覆說的那樣，我們以投資組合的方式經營業務。佔銷售額的 1%，管理起來稍微困難一些。但我仍認為這是一個可管理的類別。

And Seth, that's just the math of it. That's just the math of it. We haven't gone vendor-by-vendor, product-by-product to actually determine what the actions will be.

塞斯，這只是數學問題。這只是它的數學運算。我們還沒有對每個供應商、每個產品進行逐一檢查來真正確定將採取哪些行動。

And Seth, I'd say there was one interesting thing to look at when we talk about the tariffs. So when you look at kind of what happened in laundry, because that's one where it went into play, it was pushed throughout the market and candidly moved forward into retail. In the initial stage of that, we saw no impact for the first several months, then we actually saw negative unit declines come into play. And now we've seen double-digit positive growth in last quarter in laundry. So it's -- it will be interesting to see how those all plays through both in terms of how we can -- we'll work our portfolio approach, as Ted said, but then how that actually plays out in the market. So more to come on that.

塞斯，我想說，當我們談論關稅時，有一件有趣的事情值得關注。所以當你觀察洗衣業發生的事情時，你會發現，它開始發揮作用，並被推向整個市場，然後坦率地進入零售領域。在最初階段，我們在最初幾個月沒有看到任何影響，然後我們實際上看到負面單位下降。我們看到上個季度洗衣業務實現了兩位數的正成長。所以 — — 很有趣的是看看這些如何發揮作用，一方面是我們如何 — — 就像泰德所說的那樣，我們將運用我們的投資組合方法，另一方面是看看它們在市場上的實際表現。對此，我們也將進行更多探討。

Yes. It's a great point, Craig. The laundry, we'd say, it's been completely digested. And it was our strongest comping appliance category, as Craig said, in double digits in that -- those tariffs have held, and those go up to 50%.

是的。克雷格，你說得非常好。我們會說，洗好的衣服已經完全消化了。正如克雷格所說，這是我們最強勁的同類家電類別，成長率達到兩位數——這些關稅一直保持不變，而且漲幅高達 50%。

Our next question comes from the line of Chuck Grom with Gordon Haskett.

我們的下一個問題來自 Gordon Haskett 的 Chuck Grom。

Carol, congrats. Just on the macro front here, just wondering how sales are turning in some of the markets where we're starting to see some of the home prices start to slow down or, in some cases, compress?

卡羅爾，恭喜。僅從宏觀角度來看，我只是想知道在某些市場中銷售情況如何，我們開始看到一些房價開始放緩，或者在某些情況下出現壓縮？

Well, let's take a market like L.A. There's been a lot of conversation about what's happening in home prices in L.A. Our comp in L.A. was considerably ahead our company for the first quarter. Let's take a market like New Jersey where people are very concerned about what would happen to sales given it's a high-SALT state, and we see that New Jersey is actually outperforming the company average, too. So trust me, we're spending a lot of attention looking at performance by market, but we just can't see anything at this point in a negative way. Pardon me, we see lots of things, but in a negative way.

好吧，讓我們以洛杉磯這樣的市場為例。讓我們以新澤西州這樣的市場為例，人們非常擔心由於新澤西州是高 SALT 州，銷售情況會如何，我們發現新澤西州的表現實際上也優於公司平均水平。所以相信我，我們花了大量的注意力關注市場表現，但目前我們看不到任何負面的跡象。對不起，我們看到了很多事情，但是都是以消極的方式。

Okay. Good. I just wanted to see if you guys could clarify on that. And then just on the guide, I know you're keeping the sales and the earnings. Just wondering if you're still comfortable with the 34% gross margin and the -- I believe the 53% expense growth factor and overall operating margin of 14.4%?

好的。好的。我只是想看看你們是否能澄清這一點。然後僅根據指南，我知道您保持了銷售額和收益。只是想知道您是否仍然對 34% 的毛利率和——我相信 53% 的費用增長因素以及 14.4% 的整體營業利潤率感到滿意？

Yes. Nothing has changed within the top and the bottom line of the P&L guide.

是的。損益表的頂部和底部沒有任何變化。

Our next question comes from the line of Zack Fadem with Wells Fargo.

我們的下一個問題來自富國銀行的 Zack Fadem。

First of all, Carol, also, Richard, congrats. First question from me on the SG&A line. Q1 had the benefit of the calendar shift on the top line. Curious how that impacted margins here. And as we think about the cadence into Q2 with the calendar shift reversing, should we anticipate incremental deleverage with comps presumably above total sales? Could you just walk us through the moving parts here a little bit?

首先，卡羅爾，還有理查德，恭喜你。我第一個問題是關於銷售、一般及行政開支。第一季受惠於日曆變化對營收的影響。好奇這對利潤有何影響。當我們考慮第二季的節奏以及日曆的逆轉時，我們是否應該預期增量去槓桿率會高於總銷售額？您能簡單向我們介紹一下這裡的運作部分嗎？

Yes. So first, as it relates to the gross margin, the calendar shift doesn't impact the gross margin because you have 13 weeks of sales against 13 weeks of sales. From an expense perspective, because we do have a difference in our comp rate and our total sales growth rate, it will have a more meaningful impact on expenses either as a percent of sales or from an expense growth factor perspective. So we are expecting in the second quarter that our comp will be higher than our sales growth, again, because of the calendar shift. So you would expect our expense growth factor to be higher in the second quarter than it was in the first quarter. Does that make sense? Hopefully, that makes sense for you.

是的。首先，就毛利率而言，日曆變化不會影響毛利率，因為您有 13 週的銷售額與 13 週的銷售額相對。從費用角度來看，由於我們的同店銷售率和總銷售額成長率確實存在差異，因此無論是從銷售額的百分比還是從費用成長因素的角度來看，它都會對費用產生更有意義的影響。因此，我們預計第二季我們的營收成長將高於銷售額成長，這同樣是由於日曆的變化。因此，您可以預期我們第二季的費用成長因素將高於第一季。這樣有道理嗎？希望這對你有意義。

Yes. Yes. That makes sense. Appreciate that. And then second, just to follow up again on the (technical difficulty) tariff bigger (technical difficulty) inflation at the 10% level has abated a little bit. But perhaps you could comment on just the elasticity of demand in your categories based on the data that you have as further price increases look a little bit more inevitable here?

是的。是的。這很有道理。非常感謝。其次，再跟進（技術難度）關稅，10% 水準的通膨率已經減弱。但是，也許您可以根據所掌握的數據，僅評論一下您所處類別的需求彈性，因為這裡價格進一步上漲看起來是不可避免的？

You broke up a little but I think I got that. We look at the elasticity very carefully. And that supports when we always say we take a portfolio approach. We don't necessarily put dollar cost received into a like dollar increase in retail. If that's a super elastic item, we may hold and not even drop price in that category if we're trying to spur demand and manage the cost increases somewhere else in the portfolio. And yes, we have very, very robust data and great, again, support with our finance partners and internal assortment planning and pricing teams that are working all those elasticities by category, by product, by market.

你們分手了，但我想我明白了。我們非常仔細地觀察彈性。這支持了我們總是說的採取投資組合方法。我們不一定會將收到的美元成本納入零售額的類似美元成長。如果這是一個超彈性的商品，如果我們試圖刺激需求並管理投資組合中其他地方的成本增加，我們可能會持有該類別甚至不會降低價格。是的，我們擁有非常非常強大的數據，並且再次得到了財務合作夥伴以及內部產品組合規劃和定價團隊的大力支持，他們根據類別、產品和市場發揮所有這些彈性作用。

These are sophisticated tools that we've built up over a number of years that allows us to have this kind of responsiveness.

這些都是我們多年來累積的先進工具，讓我們能夠擁有這種回應能力。

Yes. It's going on 8 years.

是的。已經過去8年了。

Yes.

是的。

Christine, we have time for one more question.

克里斯汀，我們還有時間再問一個問題。

Our final question will come from the line of Elizabeth Suzuki with Bank of America Merrill Lynch.

我們的最後一個問題來自美銀美林的伊麗莎白鈴木 (Elizabeth Suzuki)。

And maybe this was touched on already and I missed it. But just curious if you could comment on a current petition from U.S. tile manufacturers for antidumping and countervailing duties against Chinese tile manufacturers? Do you source a meaningful percentage of your tile from China? And then what's the -- your current strategy as it pertains to duties, tariffs, et cetera on those imported products?

也許這個問題已經被提及了，但我錯過了。但我很好奇，您是否可以對美國瓷磚製造商目前針對中國瓷磚製造商提出的反傾銷和反補貼稅申請發表評論？你們的磁磚有相當大比例是從中國採購的嗎？那麼，您目前針對這些進口產品的關稅等採取什麼策略呢？

We don't have a huge fight in the China tile import. Fortunately, we're sourcing largely domestically in Mexico.

我們在中國瓷磚進口方面沒有發生太大的爭鬥。幸運的是，我們的採購主要在墨西哥國內。

Thank you. We have reached the end of the question-and-answer session. I would now like to turn the floor back over to Ms. Janci for closing comments.

謝謝。問答環節已經結束。現在我想把發言權交還給詹西女士，請她發表最後評論。

Thank you for joining us today. We look forward to speaking with you on our second quarter earnings call in August.

感謝您今天加入我們。我們期待在八月的第二季財報電話會議上與您進行交談。

Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與並祝您有美好的一天。