家得寶 (HD) 2024 Q3 法說會逐字稿

(videoplaying).

（影片播放）。

Greetings and welcome to the Home Depot's third quarter, 2024 earnings conference call at this time. All participants are in listen-only mode.

大家好，歡迎此時參加家得寶 2024 年第三季財報電話會議。所有參與者均處於僅監聽模式。

A brief question and answer session will follow the formal presentation.

正式演講後將舉行簡短的問答環節。

If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

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

現在我很高興向大家介紹你們的主人，伊莎貝爾賈尼。請繼續。

Thank you, Christine and good morning everyone. Welcome to Home Depot's third quarter, 2024 earnings call. Joining us on our call today are Ted Decker, chair, President and CEO Ann Marie Campbell, Senior executive Vice President, Billy Basti, executive Vice President of Merchandizing and Richard mcvee, Executive Vice President and Chief Financial Officer. Following our prepared remarks, the call will be open for questions, questions will be limited to analysts and investors. And as a reminder, please limit yourself to one question with one follow up. If we are unable to get to your question during the call, please call our investor relations department at 7,703,842,387.

謝謝克里斯汀，大家早安。歡迎參加家得寶 2024 年第三季財報電話會議。今天參加我們電話會議的有董事長、總裁兼執行長 Ted Decker、高級執行副總裁 Ann Marie Campbell、銷售執行副總裁 Billy Basti 和執行副總裁兼財務長 Richard mcvee。在我們準備好的發言之後，電話會議將開放提問，提問將僅限於分析師和投資者。提醒一下，請限制自己只回答一個問題並進行一次跟進。如果我們在通話期間無法解答您的問題，請致電我們的投資者關係部門：7,703,842,387。

Before I turn the call over to Ted, 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 1,995.

在我將電話轉給 Ted 之前，請允許我提醒您，今天的新聞稿和我們高管所做的演示包含 1,995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。

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.

這些陳述存在風險和不確定性，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。

Today's presentation will also include certain non-GAAP measures including but not limited to adjusted operating margin and adjusted diluted earnings per share for a reconciliation of these and other non-GAAP measures to the corresponding GAAP measures please refer to our earnings press release and our website. Now let me turn the call over to Ted.

今天的演示還將包括某些非公認會計原則措施，包括但不限於調整後的營業利潤率和調整後的稀釋每股收益，以便將這些和其他非公認會計原則措施與相應的公認會計原則措施進行調節，請參閱我們的收益新聞稿和我們的網站。現在讓我把電話轉給泰德。

Thank you, Isabel and Good morning everyone. Sales for the third quarter were $40.2 billion. An increase of 6.6% from the same period last year, comp sales declined 1.3% from the same period last year. And our US stores had negative comps of 1.2% adjusted diluted earnings per share were $3.78 in the third quarter compared to $3.85 in the third quarter. Last year.

謝謝伊莎貝爾，大家早安。第三季銷售額為 402 億美元。年增6.6%，年比銷售額較去年同期下降1.3%。我們的美國商店第三季的負面業績為 1.2%，調整後稀釋後每股收益為 3.78 美元，而第三季為 3.85 美元。去年。

From a geographical perspective, storms and more favorable weather throughout the quarter drove a higher degree of variability in the performance across our divisions. And four of our 19 US regions delivered positive comps in local currency, Mexico and Canada posted comps above the company average with Mexico posting positive comps in the quarter.

從地理角度來看，整個季度的風暴和更有利的天氣導致我們各部門的表現有更大程度的波動。我們 19 個美國地區中有 4 個地區以當地貨幣計價的業績為正，墨西哥和加拿大的業績高於公司平均水平，其中墨西哥在本季度的業績為正。

In the third quarter, our associates and communities were impacted by two hurricanes as you'll hear from and our associates and supplier partners work tirelessly under difficult circumstances to serve our customers and communities. Our thoughts continue to be with those impacted by hurricanes, Helene and Milton, excluding the impacts from the hurricanes. Our third quarter performance exceeded our expectations as weather normalized. We sought better engagement across seasonal goods in certain outdoor projects. But as Billy will detail, we continue to see pressure on larger remodeling projects driven by the higher interest rate environment and continued macroeconomic uncertainty.

在第三季度，我們的員工和社區受到了兩次颶風的影響，正如您所聽到的那樣，我們的員工和供應商合作夥伴在困難的情況下不知疲倦地工作，為我們的客戶和社區提供服務。我們的想法仍然是那些受颶風影響的人，海倫和米爾頓，但不包括颶風的影響。隨著天氣恢復正常，我們第三季的業績超出了我們的預期。我們尋求在某些戶外項目中更好地參與季節性商品。但正如比利將詳細介紹的那樣，我們繼續看到，由於較高的利率環境和持續的宏觀經濟不確定性，大型改造項目面臨壓力。

Today we updated our guidance primarily as a result of the better performance in the third quarter, as well as expected hurricane related demand in the fourth quarter for fiscal 2024 we now expect our sales to grow approximately 4% constant decline. Approximately 2.5% in adjusted diluted earnings per share to decline. Approximately 1%.

今天，我們更新了我們的指引，主要是由於第三季度的業績更好，以及預計 2024 財年第四季度颶風相關的需求，我們現在預計我們的銷售額將持續下降約 4% 的增長。調整後攤薄每股收益下降約2.5%。大約1%。

Richard will take you through the details in a moment.

理查德稍後將帶您了解詳細資訊。

Despite the continued uncertainty in the macroeconomic environment, our focus remains on creating the best interconnected experience. Growing pro wallet share through a differentiated set of capabilities in building new stores. Today, I would like to highlight where we are improving the interconnected experience.

儘管宏觀經濟環境持續存在不確定性，我們的重點仍然是創造最佳的互聯體驗。透過建立新商店的一系列差異化功能來提高專業錢包份額。今天，我想強調一下我們正在改進互聯體驗的地方。

Recall that over the last several years, we built a network of downstream supply chain facilities including 19 direct fulfillment centers allowing us to reach 90% of the US population with same or next day delivery.

回想一下，在過去幾年中，我們建立了一個下游供應鏈設施網絡，包括 19 個直接履行中心，使我們能夠透過當日或隔天送達服務覆蓋 90% 的美國人口。

Recently, we expanded our assortment in these facilities to allow for faster delivery speeds across more products. We made significant website enhancements to better communicate faster delivery options.

最近，我們擴大了這些設施的品種，以加快更多產品的交付速度。我們對網站進行了重大改進，以更好地傳達更快的交付選項。

Many customers were not aware of our robust delivery options. In the third quarter, we launched a marketing campaign that builds awareness of our faster delivery speeds. While this is just launched, we are seeing the intended results, greater customer engagement, higher conversion and incremental sales.

許多客戶不知道我們強大的交付選項。在第三季度，我們發起了一項行銷活動，以提高人們對我們更快的交付速度的認識。雖然它剛剛推出，但我們已經看到了預期的結果：更高的客戶參與度、更高的轉換率和增量銷售。

This is also the first quarter that reflects a full period of SRS in our financials Srs gives us the right to win with a specially trade pro customer who need specialized capabilities to complete their project. The SRS team did an exceptional job in the quarter and is on track to deliver $6.4 billion in sales for the approximately seven months. We owe them in fiscal 2024.

這也是我們財務報表中反映整個 SRS 週期的第一季 SRS 使我們有權贏得需要專業能力來完成其專案的特殊貿易專業客戶的支持。 SRS 團隊在本季度表現出色，預計在大約 7 個月內實現 64 億美元的銷售額。我們在 2024 財年欠他們的錢。

As you would expect the immediate focus with SRS is supporting their growth both organically and through acquisitions. However, we are also seeing incremental cross sale opportunities from our distinct product catalogs and competitive advantages.

正如您所期望的那樣，SRS 的當務之急是支持其有機成長和透過收購實現成長。然而，我們也從我們獨特的產品目錄和競爭優勢中看到了增量交叉銷售機會。

As you can tell, we remain excited about the growth opportunities in front of us. We are committed to investing in our capabilities to continue growing share in any environment.

如您所知，我們對眼前的成長機會仍然感到興奮。我們致力於投資我們的能力，以在任何環境中繼續增加份額。

Our merchants store and met teams, supplier partners and supply chain teams did an outstanding job executing throughout the quarter. And I'd like to thank them for their dedication and hard work.

我們的商家商店和會面團隊、供應商合作夥伴和供應鏈團隊在整個季度的執行工作表現出色。我要感謝他們的奉獻和辛勤工作。

Before I turn the call over to Ann, I'd like to take a moment to reflect on the legacy of our cofounder, Bernie Marcus. We owe an immeasurable debt of gratitude to Bernie. He was a master merchant and a retail visionary, but even more importantly, he valued our associates customers and communities above all. He's left us with an invaluable legacy and the backbone of our company, our values and culture.

在將電話轉給安之前，我想花點時間回顧一下我們的聯合創始人伯尼·馬庫斯的遺產。我們對伯尼懷有無法估量的感激之情。他是一位商人大師和零售夢想家，但更重要的是，他最重視的是我們的員工、顧客和社區。他為我們留下了寶貴的遺產以及我們公司、我們的價值觀和文化的支柱。

The entire Home Depot family is deeply saddened by his passing. He will be missed with that. Let me turn the call over to Anne.

整個家得寶家族對他的去世深感悲痛。人們會因此而懷念他。讓我把電話轉給安妮。

Thanks Ted and good morning everyone. First, I want to extend my deepest sympathy and support to all the residents and communities that have been impacted by hurricanes. Helen and Multon.

謝謝特德，大家早安。首先，我想向所有遭受颶風影響的居民和社區表示最深切的同情和支持。海倫和莫爾頓。

One of the hallmarks of the Home Depot has always been to support our communities through natural disasters. And we're incredibly proud of the tireless efforts of our teams pre and post the storms to stage and deliver the needed products while ensuring the safety of our associates in the aftermath of the storms. The efforts of both our field and store support center teams have been extraordinary and demonstrate the culture and exceptionalism of our amazing associates who are committed to providing the necessary support and resources to help rebuild and restore their communities.

家得寶的標誌之一始終是支持我們的社區度過自然災害。我們為我們的團隊在風暴前後的不懈努力感到無比自豪，以準備和交付所需的產品，同時確保我們員工在風暴過後的安全。我們的現場和商店支援中心團隊都付出了非凡的努力，展現了我們出色的員工的文化和卓越精神，他們致力於提供必要的支援和資源，以幫助重建和恢復他們的社區。

Our thoughts and prayers continue to be with all of our affected associates and communities as they navigate this challenging time over the last year are providing some key insights on the progress we're making with our pro ecosystem capabilities that serve that serve pros working on larger complex projects. We are pleased with the performance of this pro ecosystem which is now in 17 us markets today, I would like to take a moment to highlight some of the investments we're making in our stores to deliver the best experience for every pro buying occasion.

我們的思念和祈禱繼續與所有受影響的員工和社區同在，他們在過去一年中度過了這個充滿挑戰的時期，為我們在專業生態系統能力方面所取得的進展提供了一些關鍵見解，這些能力為從事更大工作的專業人士提供服務複雜的專案。我們對這個專業生態系統的表現感到滿意，該生態系統現已在17 個美國市場上市，我想花點時間強調我們在商店中進行的一些投資，以便為每個專業購買場合提供最佳體驗。

You've heard us talk about or focus on improving on shelf availability through multiple initiatives. But we are also enhancing leadership oversight processes and systems to drive the overall Instore Pro customer experience.

您已經聽過我們談論或專注於透過多項措施提高貨架可用性。但我們也在加強領導監督流程和系統，以推動整體 Instore Pro 客戶體驗。

We recently introduced a pro customer experience manager to help drive a higher level of connectivity with our Instore Pro and outside sales team. In order to deliver a more seamless experience and exceptional service. This new leadership role with our existing teams enables us to focus more on the needs of the cash and carry pro with a focus on building relationships with our most important pros ensuring we have job lock quantities available for sale on critical skews and allocating more labor hours to the pro desk during peak shocking times, we also continue to improve my view with more robust insights to drive a deeper level of engagement and more actionable outcomes for pro customers.

我們最近引進了一位專業客戶體驗經理，以幫助推動與我們的 Instore Pro 和外部銷售團隊的更高水準的聯繫。為了提供更無縫的體驗和卓越的服務。我們現有團隊的這一新領導角色使我們能夠更多地關注現金和攜帶專業人士的需求，重點是與我們最重要的專業人士建立關係，確保我們有可在關鍵偏差上出售的工作鎖定數量，並分配更多的工時在令人震驚的高峰時期，我們也繼續透過更強大的見解來改進我的觀點，以推動專業客戶更深層次的參與和更可行的結果。

These tools combined with the process improvements, leadership engagement and increased emphasis on service are driving more customer engagement and improving the in store shopping experience for pro customers.

這些工具與流程改善、領導層參與和對服務的日益重視相結合，正在推動更多的客戶參與並改善專業客戶的店內購物體驗。

I would also like to take a minute to share with you a bit more around the progress we have seen over the last few quarters as it relates to shrink. For us, our focus on mitigating strength has been a continual and evolving process, leveraging our cross functional teams and investing in technology to test and learn the most effective methods of reducing shrink while the external environment continues to be challenging. We're incredibly pleased with the positive momentum. We are seeing an improved result through a shrink mitigating initiatives.

我還想花一點時間與大家分享我們在過去幾季中所看到的與收縮相關的進展。對我們來說，我們對緩解實力的關注是一個持續不斷發展的過程，利用我們的跨職能團隊並投資技術來測試和學習減少收縮的最有效方法，同時外部環境仍然充滿挑戰。我們對這種積極的勢頭感到非常高興。透過減少收縮舉措，我們看到了改善的結果。

I could not be more excited about the progress we are making across the business to drive a best in class experience for our customers. Our stores are ready and our associates stay engaged. And I would like to thank them for all that they do.

我對我們在整個業務領域為客戶提供一流體驗所取得的進展感到非常興奮。我們的商店已準備就緒，我們的員工也保持積極參與。我要感謝他們所做的一切。

Lastly, as one of the hundreds of thousands of Home Depot associates, inspired by Bernie's passion for giving back to our associates and communities. I want to extend my deepest condolences to the entire March family with that. Let me turn the call over to Bill.

最後，作為數十萬家得寶員工之一，受到伯尼回饋員工和社區的熱情的啟發。我謹向整個馬奇家族致以最深切的哀悼。讓我把電話轉給比爾。

Thank you, Ann and good morning, everyone. I want to start by also thanking all of our associates and supplier partners for their ongoing commitment to serving our customers and communities. As you heard from ted our performance during the third quarter exceeded our expectations as we saw better engagement in some seasonal categories as a result of more favorable weather throughout the quarter.

謝謝你，安，大家早安。首先，我還要感謝我們所有的員工和供應商合作夥伴持續致力於為我們的客戶和社區提供服務。正如您從 ted 那裡聽到的那樣，我們第三季度的表現超出了我們的預期，因為整個季度天氣更加有利，我們看到一些季節性類別的參與度有所提高。

In addition, we also saw incremental sales as a result of the hurricanes.

此外，我們也看到颶風帶來的銷售增量。

However, the higher interest rate environment and greater macroeconomic uncertainty continues to pressure overall project demand.

然而，較高的利率環境和更大的宏觀經濟不確定性繼續給整體專案需求帶來壓力。

Turning to our merchandizing department comp performance for the third quarter. Our power, outdoor garden, building materials, indoor garden and paint departments posted positive comps while lumber, plumbing and hardware were all above the company average.

轉向我們的銷售部門第三季的業績表現。我們的電力、室外花園、建築材料、室內花園和油漆部門的業績表現良好，而木材、管道和五金部門的業績均高於公司平均水平。

During the third quarter. Our comp transactions decreased 0.6% and comp average ticket decreased 0.8%.

第三季期間。我們的贈品交易量下降了 0.6%，贈品平均票價下降了 0.8%。

However, we continue to see our customers trading up for new and innovative products.

然而，我們繼續看到我們的客戶購買新的創新產品。

Big ticket comp transactions or those over $1000 were down 6.8% compared to the third quarter of last year.

與去年第三季相比，大額門票交易或超過 1000 美元的交易下降了 6.8%。

We continue to see softer engagement in larger discretionary projects where customers typically use financing to fund the project such as kitchen and bath remodels.

我們繼續看到較大的全權委託專案的參與度下降，客戶通常使用融資來資助廚房和浴室改造等專案。

During the third quarter, pro sales were positive and outpaced the diy customer and those pros engaging with elements of our pro ecosystem who also have a dedicated salesperson who are our strongest performing pros in the quarter.

在第三季度，專業人士的銷售表現良好，超過了 DIY 客戶和那些參與我們專業生態系統元素的專業人士，他們還擁有專門的銷售人員，他們是我們本季表現最強勁的專業人士。

Turning to total company online sales sales leveraging our digital platforms increased 4% compared to the third quarter of last year. And for those customers that chose to transact with us online during the third quarter, nearly half of our online orders were fulfilled through our stores.

就利用我們數位平台的公司線上銷售總額而言，與去年第三季相比，銷售額成長了 4%。對於那些在第三季選擇與我們在線上交易的客戶來說，我們近一半的線上訂單是透過我們的商店完成的。

In addition, as you heard from TED, we are focused on continuing to improve our interconnected retail experience, whether it is our faster delivery speeds, our more relevant and personalized search results or our enhanced product review summaries powered by A I all of which are leading to greater purchasing confidence for our customers.

此外，正如您在TED 上聽到的那樣，我們致力於繼續改善我們的互聯零售體驗，無論是我們更快的交付速度、更相關和個性化的搜尋結果，還是由AI 提供支援的增強型產品評論摘要，所有這些都處於領先地位。

During the third quarter, we hosted our annual supplier partnership meeting where we focused on how we will continue to work together to bring the best products to market, deliver innovative solutions that simplify the project and offer great value with best in class features and benefits.

在第三季度，我們舉辦了年度供應商合作夥伴會議，會議重點討論瞭如何繼續合作，將最好的產品推向市場，提供創新的解決方案，簡化項目，並透過一流的功能和優勢提供巨大的價值。

At the event, we recognized a number of vendors across categories who continue to transform the industry with the innovation they bring to our customers on a daily basis. This included Starlink, Milwaukee, Ryobi, Wego, Glacier Bay, Henry Roofing and many more. We are proud of the innovation and partnership that our suppliers bring to the Home Depot and the value that we're able to offer both our pro and diy customers.

在此次活動中，我們表彰了許多不同類別的供應商，他們每天為客戶帶來創新，並不斷改變產業。其中包括 Starlink、Milwaukee、Ryobi、Wego、Glacier Bay、Henry Roofing 等。我們為我們的供應商為家得寶帶來的創新和合作夥伴關係以及我們能夠為專業客戶和DIY客戶提供的價值感到自豪。

We also hosted our annual Labor Day and Halloween events and we're pleased with the results during our Labor Day event, we were encouraged with the customer's engagement across a number of categories including grills which had positive comps for the quarter led by Traeger and 2024 was another record sales year for our Halloween program both in store and online as our customers continue to add to their collection with our unique and exclusive product assortment.

我們還舉辦了年度勞動節和萬聖節活動，我們對勞動節活動期間的結果感到滿意，我們對客戶在多個類別的參與感到鼓舞，其中包括在 Traeger 領導的季度和 2024 年取得積極業績的燒烤爐今年是我們的萬聖節計劃在店內和網上銷售再創新高的一年，因為我們的客戶繼續透過我們獨特且獨家的產品種類添加他們的收藏。

As we turn our attention to the fourth quarter, we plan to maintain our momentum with our annual holiday, Black Friday and gift center events.

當我們將注意力轉向第四季度時，我們計劃透過年度假期、黑色星期五和禮品中心活動來保持勢頭。

In our gift center event, we continue to lean into brands that matter most for our customers. With our assortment of Milwaukee, Ryobi Makita, DeWalt, Rigid Husky and more.

在我們的禮品中心活動中，我們繼續傾向於對客戶最重要的品牌。我們提供 Milwaukee、Ryobi Makita、DeWalt、Rigid Husky 等品種。

We'll have something for everyone whether it's our wide assortment of cordless Ryobi tools. Milwaukee M 18 fuel tool kits and our new Husky byte tools. We are bringing more innovation and batteries with Ryobi Edge, the WXR and the expansion of the Milwaukee Fords lineup with new eight and 12 amp hour batteries all designed to bring more power to our customers and the innovative Husky by tool technology offers increased grip on new and rounded fasteners, better access, more torque and more leverage, making them a great addition to any toolbox at a great value and they are exclusive to the Home Depot.

無論是我們種類繁多的無線 Ryobi 工具，我們都會為每個人提供一些東西。 Milwaukee M 18 燃油工具套件和我們的新型 Husky 位元組工具。我們透過Ryobi Edge、WXR 以及密爾瓦基福特系列的擴展帶來更多創新和電池，其中包括新型8 安培小時和12 安培小時電池，所有這些都旨在為我們的客戶帶來更多動力，而創新的Husky 透過工具技術提供了對新產品的更大抓地力。所值，而且它們是家得寶(Home Depot) 獨有的。

Our merchandizing organization remains focused on being our customer's advocate for value. This means continuing to provide a broad assortment of best in class products that are in stock and available for our customers when they need it.

我們的銷售組織仍然專注於成為客戶的價值倡導者。這意味著繼續提供種類繁多的一流產品，這些產品有庫存並可在客戶需要時提供給他們。

We will also continue to provide innovative product solutions that simplify the project, saving our customers time and money. That's why I'm so excited about the innovation we continue to bring to the market and with that, I'd like to turn the call over to Richard.

我們也將繼續提供創新的產品解決方案，以簡化項目，節省客戶的時間和金錢。這就是為什麼我對我們繼續為市場帶來的創新感到如此興奮，因此，我想將電話轉給理查德。

Thank you, Billy and good morning. Everyone in the third quarter, total sales were $40.2 billion. An increase of approximately 6.6% from last year during the third quarter. Our total company comps were negative 1.3% with comps of negative 3.3% in August, negative 2.3% in September and positive 1% in October comps in the US were negative 1.2% for the quarter with comps of negative 3.5% in August, negative 2.2% in September and positive 1.4% in October.

謝謝你，比利，早安。第三季大家的總銷售額為402億美元。第三季較去年同期成長約6.6%。我們公司的整體業績為負1.3%，其中8 月份的業績為負3.3%，9 月份為負2.3%，10 月份為正1% 美國本季的業績為負1.2%，8 月份的業績為負3.5 %，負2.2% 9 月成長 1.4%，10 月成長 1.4%。

The progression of our monthly comps reflects in large part hurricane related sales.

我們每月比較的進展很大程度上反映了與颶風相關的銷售。

Our results for the third quarter include a net contribution of approximately $200 million in hurricane related sales which positively impacted total company comps by approximately 55 basis points for the quarter and approximately 120 basis points for October in the third quarter, our gross margin was approximately 33.4%. A decrease of approximately 40 basis points from the third quarter last year, primarily driven by mix as a result of the SRS acquisition partially offset by benefits from lower shrink during the third quarter. Operating expense as a percent of sales increased approximately 45 basis points to 19.9% compared to the third quarter of 2023.

我們第三季的業績包括與颶風相關的銷售額約2 億美元的淨貢獻，這對本季公司整體業績產生了約55 個基點的正面影響，對第三季10 月的影響約120 個基點，我們的毛利率約為33.4 %。較去年第三季下降約 40 個基點，主要是由於收購 SRS 造成的混合影響，部分被第三季收縮減少的好處所抵消。與 2023 年第三季相比，營運費用佔銷售額的百分比增加了約 45 個基點，達到 19.9%。

Our operating expense performance was in line with our expectations.

我們的營業費用表現符合我們的預期。

Our operating margin for the third quarter was 13.5% compared to 14.3% in the third quarter of 2023 in the quarter, pretax intangible asset amortization was $138 million including $86 million related to SRS excluding the intangible asset amortization in the quarter. Our adjusted operating margin for the third quarter was 13.8% compared to 14.5% in the third quarter of 2023 interest and other expense for the third quarter increased by $157 million to $595 million due primarily to higher debt balances than a year ago.

我們第三季的營業利潤率為13.5%，而本季2023 年第三季的營業利潤率為14.3%，稅前無形資產攤銷為1.38 億美元，其中與SRS 相關的8,600 萬美元（不包括本季的無形資產攤銷）。我們第三季調整後的營業利潤率為13.8%，而2023 年第三季的營業利潤率為14.5%。債務餘額高於一年前。

In the third quarter. Our effective tax rate was 24.4% compared to 23.3%. In the third quarter of fiscal 2023.

在第三季。我們的有效稅率為 24.4%，而去年同期為 23.3%。 2023 財年第三季。

Our diluted earnings per share for the third quarter were $3.67. A decrease of approximately 4% compared to the third quarter of 2023 excluding intangible asset amortization. Our adjusted diluted earnings per share for the third quarter were $3.78.

第三季稀釋後每股收益為 3.67 美元。較2023年第三季下降約4%（不含無形資產攤銷）。我們第三季調整後的稀釋每股收益為 3.78 美元。

The decrease of approximately 2% compared to the third quarter of 2023.

與2023年第三季相比下降約2%。

During the third quarter, we opened five new stores bringing our total store count to 2,345 retail selling square footage was approximately 243 million square feet.

第三季度，我們開設了 5 家新店，使店家總數達到 2,345 家，零售面積約 2.43 億平方英尺。

At the end of the quarter, merchandise inventories were $23.9 billion. Up approximately $1.1 billion compared to the third quarter of 2023 and inventory turns were 4.8 times up from 4.3 times last year.

截至本季末，商品庫存為 239 億美元。與 2023 年第三季相比增加了約 11 億美元，庫存週轉率比去年的 4.3 倍增加了 4.8 倍。

Turning to capital allocation. During the third quarter, we invested approximately $820 million back into our business in the form of capital expenditures.

轉向資本配置。第三季度，我們以資本支出的形式向業務投資了約 8.2 億美元。

And during the quarter, we paid approximately $2.2 billion in dividends to our shareholders.

在本季度，我們向股東支付了約 22 億美元的股息。

Computed on the average of beginning and ending long term debt and equity for the trailing 12 months return on invested capital was approximately 31.5% down from 38.7% in the third quarter of fiscal 2023.

根據過去 12 個月的期初和期末長期債務和股本平均值計算，投資資本回報率約為 31.5%，低於 2023 財年第三季的 38.7%。

Now, I will comment on our updated outlook for fiscal 2024.

現在，我將評論我們最新的 2024 財年展望。

As you heard from TED while macro uncertainty remains and continues to pressure home improvement demand.

正如您從 TED 聽到的那樣，宏觀不確定性仍然存在，並繼續對家居裝修需求造成壓力。

Our performance in the third quarter was better than expected.

我們第三季的業績優於預期。

Our performance reflects hurricane related sales in the third quarter and we expect some hurricane related sales in the fourth quarter given the better than expected performance in the third quarter. And incremental hurricane related sales, we have updated our fiscal 2024 guidance.

我們的業績反映了第三季與颶風相關的銷售，鑑於第三季的業績優於預期，我們預計第四季會出現一些與颶風相關的銷售。對於與颶風相關的增量銷售，我們更新了 2024 財年指導。

We now expect total sales growth of approximately 4% including SRS and the 53rd week.

我們現在預計包括 SRS 和第 53 週在內的總銷售額成長約為 4%。

The 53rd week is projected to add approximately $2.3 billion to total sales. And SRS is expected to contribute approximately $6.4 billion in incremental sales.

第 53 週預計總銷售額將增加約 23 億美元。 SRS 預計將貢獻約 64 億美元的增量銷售額。

Comparable sales are expected to decline approximately 2.5% for the 52 week period.

預計 52 週期間的可比銷售額將下降約 2.5%。

We expect to open approximately 12 new stores.

我們預計將開設約 12 家新店。

Our gross margin is expected to be approximately 33.5%.

我們的毛利率預計約為33.5%。

We expect operating margin to be approximately 13.5% and adjusted operating margin to be approximately 13.8%.

我們預計營業利潤率約為 13.5%，調整後的營業利潤率約為 13.8%。

Our effective tax rate is targeted at approximately 24%.

我們的有效稅率目標約為 24%。

We expect net interest expense of approximately $2.1 billion.

我們預計淨利息支出約為 21 億美元。

We expect our diluted earnings per share to decline approximately 2% compared to fiscal 2023 with the extra week contributing approximately 30¢ per share and we expect our adjusted diluted earnings per share to decline approximately 1% compared to fiscal 2023 with the extra week contributing approximately 30¢ per share.

我們預計，與2023 財年相比，我們的稀釋每股收益將下降約2%，額外一周將貢獻約30 美分，我們預計調整後的稀釋每股收益將比2023 財年下降約1%，額外一周將貢獻約1%。

We believe that we will grow market share in any environment. We continue to invest to strengthen our competitive possession, to strengthen our competitive position with our customers and leverage our scale and low cost position to drive growth faster than the market and deliver shareholder value.

我們相信，在任何環境下我們都會增加市場佔有率。我們繼續投資以增強我們的競爭優勢，加強我們與客戶的競爭地位，並利用我們的規模和低成本地位來推動比市場更快的成長並創造股東價值。

Thank you for your participation in today's call and Christine. We are now ready for questions.

感謝您參加今天的電話會議，感謝克莉絲汀。我們現在準備好提問了。

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation will indicate your line is in the question queue.

謝謝。我們現在將進行問答環節。如果您想提問，請按電話鍵盤上的星號一。確認訊息將表明您的線路已在問題佇列中。

You may press star two. If you would like to remove your question from the queue for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys one moment, please. While we pull for questions.

您可以按星二號。如果您想從使用揚聲器裝置的參與者群組中刪除您的問題，請先拿起聽筒，然後再按星號鍵。當我們提出問題時。

Thank you. Our first question comes from the line of Scott Cicarelli with Truest. Please proceed with your question.

謝謝。我們的第一個問題來自 Scott Cicarelli 和 Truest 的對話。請繼續你的問題。

Morning, everyone really in the good and you outlined today.

早安，大家都很好，你今天概述了這一點。

You're breaking up. Can you repeat your question, please?

你們要分手了您能重複一下您的問題嗎？

That sales were better than then we would have I know you guys outlined her specific But you got on the because obviously it was quite simple.

那次銷售比我們想像的要好，我知道你們概述了她的具體情況，但你們同意了，因為顯然這很簡單。

I'm.

我是。

Sorry to cut you off. We can't really hear you. So we're going to go to the next question and we'll come back to you.

抱歉打斷你了。我們真的聽不到你說話。我們將討論下一個問題，然後再回覆您。

Our next question comes to the line of Zachs with Wells Fargo. Please proceed with your question.

我們的下一個問題涉及扎克斯與富國銀行的關係。請繼續你的問題。

Hey, good morning. So starting with the hurricane impact Richard, you called out about 55 basis points in Q3, any color on category impacts and if those sales skewed more Diy versus pro and then as you think about Q4, how would you characterize the implied down 2.5% comp guide between hurricane driven and the underlying business?

嘿，早安。因此，從理查德颶風的影響開始，您在第三季度提出了大約55 個基點，對類別影響的任何顏色，如果這些銷售更多地偏向Diy 與Pro，然後當您考慮第四季度時，您將如何描述隱含的下降2.5% 的比較颶風驅動和基礎業務之間的指南？

Hey, Zach, it's Billy and then I'll, I'll, I'll turn it over to Richard to answer the back half of that question just in terms of the, you know, the hurricane piece, obviously, you know, pretty similar to, to all events, you know, think about generators, think about clean up. You know, you think about obviously lumber as it relates to, you know, to what we do to help our communities get ready for those, for those events. So pretty similar from a product assortment standpoint and obviously all that's consumer driven as, as customers, you know, you know, ready themselves for, for that event. And I'll, I'll flip it to Richard to, to answer the back half of that.

嘿，扎克，我是比利，然後我，我，我會把它交給理查德來回答這個問題的後半部分，你知道，颶風部分，顯然，你知道，與所有事件非常相似，你知道，考慮發電機，考慮清理。你知道，你顯然會想到木材，因為它與我們為幫助我們的社區為這些事件做好準備所做的事情有關。從產品分類的角度來看，這非常相似，顯然所有這些都是消費者驅動的，因為作為客戶，你知道，你知道，為該活動做好準備。我會把它轉給理查德，讓他回答後半部。

Yeah. So Zach just talking about the, the guide of 2.5 for the year. Our, our guidance really principally reflects the outperformance that we saw in Q3 driven by hurricane related sales as well as reflecting the fact that we just saw exceptional weather across the entire country for most of the quarter. So the full year view is basically the flow through of that Q3 performance with some Q4 impact of hurricane related sales.

是的。所以扎克只是在談論今年 2.5 的指南。我們的指導實際上主要反映了我們在第三季度看到的由颶風相關銷售推動的優異表現，也反映了我們在本季度的大部分時間裡看到了全國範圍內的特殊天氣這一事實。因此，全年的情況基本上是第三季業績的流動，以及颶風相關銷售對第四季的一些影響。

Got it. I appreciate the color and just taking a step back. How much of your business would you categorize as needs based versus discretionary today? And is it still fair to say that the larger and bigger ticket projects are, are being deferred while needs based break fix type projects are getting done and also any color on how those two buckets have been trending through the year?

知道了。我很欣賞這種顏色，只是退後一步。如今，您的業務中有多少屬於基於需求的業務與可自由支配的業務？是否可以公平地說，越來越大的門票項目正在被推遲，而基於需求的中斷修復類型項目正在完成，以及這兩個桶在一年中的趨勢如何？

Yeah, that's, that's always difficult to parse out needs based versus discretionary project. We would say, you know, your needs based projects are getting done. We've talked about there being, you know, strong engagement in home improvement and certainly with our pros, but the larger, more discretionary projects are the ones that are being deferred and, and that balance has been consistent throughout this year.

是的，那就是，總是很難解析出基於需求的項目和可自由支配的項目。我們會說，您知道，您基於需求的項目正在完成。我們已經討論過，我們對家居裝修的大力參與，當然還有我們的專業人士的參與，但更大、更自由的項目被推遲，而且這種平衡在今年一直保持一致。

Got it. Thanks so much for the time.

知道了。非常感謝您抽出時間。

Thank you.

謝謝。

Yeah.

是的。

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

我們的下一個問題來自查克·格羅姆和戈登·哈斯克特的對話。請重複你的問題。

Hey, good morning. Thanks very much. Can you discuss Ss Rs and the progress you've made in cross selling products and services? Across the two businesses. And then can you also touch on the volume contribution specifically in the third quarter?

嘿，早安。非常感謝。您能否討論一下 Ss Rs 以及您在交叉銷售產品和服務方面取得的進展？橫跨兩個業務。那麼您能否具體談談第三季的銷售貢獻？

Sure. So we're, we're very pleased with our, with our progress with SRS, as I said in my prepared remarks, you know, job one is to support them, executing their play of growing their business, which, which they do with what we would call comp growth through their existing branches, opening up new branches and then doing Tuck in M&A, they've continued to do that. Through the third quarter, they opened a number of branches. They, they, they grew the business and they even made a couple of small tuck in acquisitions. So the the strategic game plan for SRS is proceeding as expected on the cross sell opportunity that the initial things we're working on is to make their catalog available to our customers largely through the pro desk and through our outside sales resources. And we're seeing terrific take up on that the, the comp sales of SRS product through the Home Depot ecosystem. Well, obviously a very small base is accelerating incredible sort of triple digit comp growth with those specific sales. And then we're also beginning to quote our product into their customer base. Now remember their specialty trade and they're focused on, you know, roofers, landscapers folks putting down, you know, hardscapes and backyards and then working on repairing and maintaining pools and irrigation. However, those customers do engage in some broader home improvement activity. And we've already begun to actively quote our broader catalog into their customer base very, very early days. But the sales teams are working together incredibly well, getting to know each other going on some joint customer calls together so early days on that. But again, the strategic thesis is playing out exactly how, how we had hoped.

當然。因此，我們對 SRS 的進展感到非常滿意，正如我在準備好的發言中所說，你知道，第一項工作是支持他們，執行他們發展業務的計劃，他們所做的通過我們所說的通過現有分公司、開設新分公司、然後進行併購來實現公司成長，他們一直在這樣做。截至第三季度，他們開設了多家分店。他們，他們，他們發展了業務，甚至還進行了一些小規模的收購。因此，SRS 的策略遊戲計劃正在按交叉銷售機會的預期進行，我們最初要做的事情是主要透過專業服務台和外部銷售資源向我們的客戶提供他們的目錄。我們看到，SRS 產品透過 Home Depot 生態系統進行銷售的情況非常好。嗯，顯然，一個非常小的基數正在加速令人難以置信的三位數的複合增長與這些特定的銷售。然後我們也開始向他們的客戶群報價我們的產品。現在請記住他們的專業行業，他們專注於屋頂工、園藝師，他們鋪設硬景觀和後院，然後致力於修復和維護水池和灌溉。然而，這些客戶確實參與了一些更廣泛的家居裝修活動。我們很早就開始向他們的客戶群積極引用我們更廣泛的產品目錄。但銷售團隊的合作非常好，在早期就透過一些聯合客戶電話會議互相了解。但同樣，戰略主題正在完全按照我們所希望的方式發揮作用。

And check. You asked for specifics. They contributed 2.9 billion in the in the third quarter. They're on track to deliver the expected 6.4 billion in sales contribution for the roughly seven months that will end them.

並檢查。你問的是具體情況。他們第三季貢獻了29億美元。他們預計在結束後的大約七個月內實現預期的 64 億美元銷售貢獻。

Okay, great. Thanks very much. And then one for you, Richard on, on gross margins down 40 basis points. It sounds like Rs was the lion's share? Is there any way to double click on that? And, and just unpack, I think it was about 35 basis points of pressure last quarter and then just looking out can we think about broader puts and takes for gross margins, you know, I mean, relative to where you were pre COVID, you know, which was north of 34%. How do we think about the, the gross margin trajectory over the next few years? Thanks.

好的，太好了。非常感謝。然後是給你的，理查德，毛利率下降了 40 個基點。聽起來盧比是最大的份額？有什麼辦法可以雙擊它嗎？而且，簡單來說，我認為上個季度的壓力約為 35 個基點，然後我們可以考慮更廣泛的看跌期權和毛利率，你知道，我的意思是，相對於新冠疫情爆發前的情況，你知道，這個比例高於34%。我們如何看待未來幾年的毛利率軌跡？謝謝。

Sure. Well, so specifically, look when you look year over year, now the major impact in gross margin versus last year was simply the mix impact from, from SRS and and so that was actually an 80 basis point impact for the quarter.

當然。嗯，具體來說，當你逐年查看時，現在毛利率與去年相比的主要影響只是來自 SRS 的混合影響，所以這實際上是該季度 80 個基點的影響。

So let's just let's talk about gross margin. It was in line with our expectations. In fact, our guidance for gross margin for the full year has not changed. So again, in Q3, the impact was around 80 basis points from SRS. So you can do the math and see that the remainder of the business was up significantly and was in line with our expectations. And that also reflected benefits from shrink that Anne had mentioned. And just to, to remind you, SRS will be for the year 2024 it will have about a 45 basis point impact on the year because remember, we will have only owned them for about seven months, but an annualized number for SRS impact to gross margin is about 70 basis points.

那我們就來談談毛利率。這符合我們的預期。事實上，我們對全年毛利率的指導並沒有改變。同樣，在第三季度，SRS 的影響約為 80 個基點。因此，您可以計算一下，發現其餘業務顯著成長，並且符合我們的預期。這也反映了安妮提到的收縮帶來的好處。只是想提醒您，SRS 將在 2024 年對這一年產生約 45 個基點的影響，因為請記住，我們只擁有它們約七個月，但 SRS 對總影響的年化數字保證金約為70個基點。

So if you just allow me a second to, to make sure we got that, that's 70 basis points of expected shift in our gross margin profile from adding them to our business. Our gross margin you know, again was right where we expected it to be a transportation expense or rather benefits from decreasing transportation expense. We're a diam in the first half of the year, but that's largely sort of gone away as year over year comparisons flat now. And so we were very pleased with our, our margin performance and as I said, we have, we have not changed our guidance for the full year gross margin.

因此，請允許我稍等一下，以確保我們明白這一點，將它們添加到我們的業務中後，我們的毛利率狀況預計將發生 70 個基點的變化。你知道，我們的毛利率再次符合我們的預期，它是運輸費用，或者更確切地說是運輸費用減少的好處。今年上半年我們的業績表現很出色，但隨著現在與去年同期的比較持平，這種情況基本上已經消失了。因此，我們對我們的利潤率表現非常滿意，正如我所說，我們沒有改變對全年毛利率的指導。

Look as far as long term goes in June of 2023 at our investor conference, we laid out a base case that in essence, said, look, we anticipate flat gross margin as as part of our operating model, there's a ton of productivity that our, our amazing supply chain team drives every single year that we reinvest in that gross margin. But that's reflective of, of our position as the sharpest value in the market for our customers. And that's, that's our intention. But again, the acquisition of SRS does present a shift in our margin base for the business.

就長期而言，在2023 年6 月我們的投資者會議上，我們提出了一個基本情況，從本質上講，我們預計毛利率將持平，作為我們營運模式的一部分，我們有大量的生產力可以利用。 ，我們優秀的供應鏈團隊每年都推動我們對毛利率進行再投資。但這反映了我們作為市場上為客戶提供最大價值的地位。這就是我們的意圖。但同樣，收購 SRS 確實使我們的業務利潤基礎發生了變化。

Makes sense. Thank you.

有道理。謝謝。

Our next question comes line of Seth Sigman with Barclays. Please repeat your question.

我們的下一個問題來自塞思‧西格曼與巴克萊銀行的對話。請重複你的問題。

Hey, good morning, everyone. Nice progress in the quarter. My main question is around market share, obviously in macro and housing matters a lot here, but you're also doing a lot to better serve your customer and all the different types of customers, I guess in that context, it does seem like Home Depot's performance improved relative to the industry this quarter. Can you speak to that in any specific categories? You would call out where you do think you're gaining more share. Thanks.

嘿，大家早安。本季取得了不錯的進展。我的主要問題是市場份額，顯然在宏觀和住房方面很重要，但你也做了很多工作來更好地服務你的客戶和所有不同類型的客戶，我想在這種情況下，它看起來確實像家本季 Depot 的業績相對於行業有所改善。您能在任何特定類別中談論這一點嗎？你會指出你認為自己在哪些方面獲得了更多份額。謝謝。

I'll, I'll hit on the, the broader topic and, and pass over to Billy. It's, we've always said it, it is tough to parse out market share. But if you look at you know, PC expenditures in in home and furnishing those were, you know, deeper negative is, is reported in, in government statistics in our results. So if you, if you look at that broader macro, we would the highest level macro, we would say we took share and then we obviously look at reported results from competitors who are are functioning in in certain product categories that we operate in. And again, in most of those, we see our businesses outperforming those of, of publicly traded companies, results and, and Billy if you want to hit on some categories.

我會，我會談到更廣泛的話題，然後交給比利。我們總是說，很難解析市場佔有率。但如果你看看你就會知道，我們結果中的政府統計數據報告了家庭和家具中的個人電腦支出，你知道，更深層的負面影響。因此，如果你看更廣泛的宏觀，我們會說我們佔據了份額，然後我們顯然會查看在我們經營的某些產品類別中運作的競爭對手的報告結果。看到我們的業務表現優於上市公司、業績和比利（如果你想在某些類別上的話）。

Yeah, you know, as we said in our prepared remarks, certainly, you know, our seasonal performance, we saw, you know, increased grade engagement, you know, across our seasonally related categories and that includes Halloween. Paint continues to be a great story for us and while we did see some exterior business just related on the weather that we called out was certainly making great progress with the pro that paints or partnerships with beer PPG or in service instore service model enhancements or job site delivery expansion has really helped us grow, share in that segment and, and really pleased with the performance of the team there. And then, you know, you talk about building materials, continue to see really strong performance in our building materials that's multiple quarters on top of multiple quarters. So, you know, as Ted mentioned, pretty hard to kind of parse that out. We look at a lot of different data sets, but you know, feel very confident that in any market, you know, we're going to continue to take share. But that's a few of the areas that, you know, we we've seen great continued acceleration and, and as I mentioned in building materials specifically, ongoing terrific improvement there.

是的，你知道，正如我們在準備好的演講中所說，當然，你知道，我們的季節性表現，我們看到，你知道，在我們的季節性相關類別（包括萬聖節）中，年級參與度有所提高。油漆對我們來說仍然是一個偉大的故事，雖然我們確實看到了一些與天氣相關的外部業務，但我們指出，油漆專業人士或與啤酒PPG 合作或在服務店內服務模式增強或工作方面肯定取得了巨大進展站點交付擴展確實幫助我們成長，分享了該領域的份額，並且對那裡團隊的表現非常滿意。然後，你知道，你談論建築材料，繼續看到我們的建築材料在多個季度的多個季度中表現強勁。所以，你知道，正如特德所提到的，很難解析它。我們查看了很多不同的數據集，但你知道，我們非常有信心在任何市場中，我們都將繼續佔據份額。但是，您知道，我們已經看到了一些領域的巨大持續加速，正如我在建築材料方面特別提到的那樣，那裡持續取得了巨大的進步。

Okay. That's helpful. I guess a follow up question would be around big ticket more specifically. It, it does seem like it took a step down this quarter, even in light of hurricane certain categories you mentioned like generators. How do you categorize that? I mean, you mentioned interest rates. Do you think there was some election noise? I mean, I guess ultimately we're trying to think about what needs to change in your view to really get those categories. Inflecting.

好的。這很有幫助。我想後續問題將更具體地圍繞著大票。即使考慮到您提到的某些類別（例如發電機）的颶風，本季它似乎確實有所下降。你如何分類？我的意思是，你提到了利率。你認為有一些選舉噪音嗎？我的意思是，我想最終我們會嘗試思考您的觀點需要改變什麼才能真正獲得這些類別。屈折。

What if, if maybe I'll just, you know, step back on, on how we, we look at this, this overall environment and what we're seeing. I mean, clearly our sales during the quarter, as we said, we were, you know, more favorable than, than we expected a lot with weather and hurricane related demand. And don't forget on whether it's, it's not just that, that, you know, you're doing garden because the weather is nice, think of, you know, limited days loss from a pro because they can be out of the job site, you know, through virtually every day in October. It was, it was dry throughout the country. You know the issue, we, we continue to watch the macroeconomic uncertainties and the higher rate environment that continues to pressure larger remodeling projects. So we look at at the reversion of personal consumption from goods to services that's largely worked its way out. And, and we've largely navigated our way through the pull forward of demand that we saw during the pandemic. So again, today, this higher rate environment is pressuring the larger normally debt financed remodeling projects as well as existing home sales. So we all know that the feds cut interest rates in two cycles here. But from the cut in September mortgage rates have actually increased about 60 basis points. So, you know, two rate cuts of combined 75 basis points yet the 10 year and then therefore, the mortgage rates are up about about 60 basis points that continues to impact housing turnover, which were just about 3% of homes turning over, which is a 40 year low at this point. And you might say that the worst is behind us. You know, how much lower are we going to go? Usually we're at about 4.5 5% turnover. I think we actually touched on sort of 2.99. So one could argue we're, we're near the low there. But then the larger projects often require financing, whether it's cash out financing or, or home equity lines of credit, those are down. So our, our key locks, you know, those track, you know, more directly the the drop in short term rates. So those are down to 75 basis points, but still historically high at over 8%. So, you know, with that, you know, we're, we're encouraged with, with certain green shoots if you will in the business, with the pull for working its way through the categories that Billy just went through. But what we're looking for is, you know, just when is the timing of, of homeowners starting those larger remodeling projects. So we, we remain super bullish on the outlook for home improvement. We'll have to work our way through this, this current macro uncertainty and the interest rates pressuring home improvement demand. But this is a market after all and markets return to equilibrium and remodeling will as well. We, we just don't think we're quite there yet.

如果，如果也許我會，你知道，退後一步，討論我們如何看待這個、這個整體環境以及我們所看到的情況。我的意思是，顯然我們在本季的銷售，正如我們所說，我們比我們預期的與天氣和颶風相關的需求要有利得多。別忘了，這不僅僅是這樣，你知道，你正在做園藝，因為天氣很好，想想，你知道，專業人士的有限天數損失，因為他們可能會失業你知道，十月份幾乎每天都有網站。是的，全國各地都很乾燥。你知道這個問題，我們，我們繼續關注宏觀經濟的不確定性和更高的利率環境，這繼續給更大的改造項目帶來壓力。因此，我們著眼於個人消費從商品轉向服務的回歸，這在很大程度上已經解決了。而且，我們基本上已經克服了大流行期間看到的需求拉動。如今，這種較高的利率環境再次給較大的通常債務融資的改造項目以及現有房屋銷售帶來壓力。所以我們都知道聯準會在這裡分了兩個週期降息。但自9月降息以來，抵押貸款利率實際上已上升了約60個基點。所以，你知道，在 10 年裡兩次降息總計 75 個基點，然後抵押貸款利率上升了約 60 個基點，這繼續影響住房週轉率，而住房週轉率僅佔房屋週轉率的 3% 左右。時為40 年來的最低點。你可能會說，最糟糕的時期已經過去了。你知道，我們還要跌多少？通常我們的營業額約為 4.5% 至 5%。我認為我們實際上觸及了 2.99。所以有人可能會說我們已經接近最低點了。但較大的項目通常需要融資，無論是現金融資還是房屋淨值信貸額度，這些都會下降。因此，我們的關鍵鎖定，你知道，那些跟踪，你知道，更直接地跟踪短期利率的下降。因此，這些利率已降至 75 個基點，但仍處於歷史高位，超過 8%。所以，你知道，有了這一點，你知道，我們受到鼓舞，如果你願意的話，我們會在這個行業中看到一些新芽，並通過比利剛剛經歷的類別來努力。但我們正在尋找的是，你知道，房主什麼時候開始那些更大的改造計畫。因此，我們仍然非常看好家居裝修的前景。我們必須努力解決這個問題，目前的宏觀不確定性和利率對家居裝修需求的壓力。但這畢竟是一個市場，市場也會回歸均衡，重塑也會發生。我們，我們只是認為我們還沒有完全做到這一點。

I got it. Thank you so.

我得到了它。非常感謝。

Much.

很多。

Our next question comes to mind of Steven Zone with city. Please proceed with your question.

我們的下一個問題想到了史蒂文區和城市。請繼續你的問題。

Great, good morning. Thanks very much for taking my question. I wanted to follow up on gross margin briefly. So in this, in the quarter, was there any mixed pressure on gross margin from the higher hurricane related sales? And then just to follow up on the longer term, you know, a good amount of discussion around shrink, you've made a lot of progress there. Can you help us understand how much of an opportunity that is over the medium term you know, is this something that's in the 10 to 20 basis points or could it be something more meaningful over time?

太好了，早安。非常感謝您提出我的問題。我想簡單地跟進一下毛利率。那麼，在本季中，颶風相關銷售額的增加是否對毛利率造成了混合壓力？然後，從長遠來看，您知道，圍繞收縮進行了大量討論，您已經在那裡取得了許多進展。您能否幫助我們了解您所知道的中期機會有多大，是在 10 到 20 個基點內，還是隨著時間的推移可能會變得更有意義？

Right. Yeah. So, as far as gross margin goes for the quarter, there was a slight amount of mixed pressure to margin and just think about how Billy characterized it at the beginning of, hurricane prep and, and, and then through clean up, you're just selling higher volumes of lower gross margin goods. And so there was, there was some slight pressure there. And as far as as shrink goes, look, we're frankly just head down and the teams are working so hard every single day. They have made major investments, not just financially but also in, in the, the amazing number of initiatives they've brought forward to combat in, in essence, you know, the, the results of organized retail theft and, and other other crime.

正確的。是的。因此，就本季的毛利率而言，利潤率存在輕微的混合壓力，想想比利在颶風準備開始時如何描述它，然後通過清理，你就可以了。 。所以那裡有一些輕微的壓力。就收縮而言，坦白說，我們只是低著頭，團隊每天都在努力工作。他們不僅在財務上進行了重大投資，而且還提出了數量驚人的舉措，以打擊有組織的零售盜竊和其他犯罪的結果。

This is a problem for all of retail. It's hard to quantify.

這是所有零售業都面臨的問題。很難量化。

What we can tell you is that our investments are paying off. They've led now to multiple quarters of benefits, year over year tangible results from investments we've made that does not mean that the operating environment is getting any easier. In fact, it's getting harder and harder. So our hats are off to our teams and it's, it's an everyday initiative that our, our teams are fighting every single day.

我們可以告訴您的是，我們的投資正在獲得回報。它們現在已經為我們的投資帶來了多個季度的收益和年復一年的實際成果，但這並不意味著營運環境變得更加容易。事實上，它變得越來越難。因此，我們向我們的團隊致敬，這是我們的團隊每天奮鬥的日常舉措。

Yeah, understood. My follow up question. I know there's no 2025 guidance today. But I think as we I'm curious, like as you look at the backdrop, right, the view for 24 was like housing was going to be net neutral as you sit here today, it's tough to call rates. But as you think about 25 you know, would you think the housing backdrop turns a little bit more favorable for you or is it still like think about housing as net neutral is kind of the base case scenario?

是的，明白了。我的後續問題。我知道今天沒有 2025 年指導。但我認為我們很好奇，就像你看看背景一樣，對吧，當你今天坐在這裡時，24 日的觀點就像住房將是淨中性的，很難確定利率。但當你想到 25 的時候，你會認為住房背景變得對你更有利一些，還是仍然像考慮住房一樣，因為淨中性是基本情況？

Well, Steven, I I repeat the the comments I I just made, you know, one could, could argue that the rate environment is settling down in turnover. Certainly, even under 3% last reported period would be at a low. But you know, just don't know and and not obviously ready to talk about 25 and you're not ready as we sit here today to call that this is a turn on larger remodeling projects.

好吧，史蒂文，我重複我剛剛發表的評論，你知道，人們可能會說，利率環境正在隨著營業額而穩定下來。當然，即使上一報告期間的成長率低於 3%，也將處於低點。但你知道，只是不知道，而且顯然還沒準備好談論 25，而且你還沒準備好，因為我們今天坐在這裡，稱這是一個更大的改造項目的轉折。

Okay, fair enough. Thank.

好吧，很公平。感謝。

You.

你。

Our next question comes from the line of Scott Cicarelli with throws. Please proceed with your question.

我們的下一個問題來自 Scott Cicarelli 的投擲路線。請繼續你的問題。

Thanks guys, I apologize for the tech issues. Richard, I know you outlined the impact of hurricane related sales, but is there a broader estimate for the weather impact in the quarter? And then second, can you guys give us an idea of the magnitude of difference in performance in the 17 markets where you rolled out incremental pro capabilities versus the rest of the base just so we can better understand the impact that those capabilities are having. Thanks.

謝謝大家，對於技術問題我深感抱歉。理查德，我知道您概述了颶風相關銷售的影響，但是對於本季天氣影響是否有更廣泛的估計？其次，你們能否讓我們了解你們推出增量專業功能的 17 個市場與其他基礎市場的表現差異程度，以便我們更了解這些功能所產生的影響。謝謝。

So the first part of your question, Scott, look, we had outstanding weather across the country. So it becomes harder to parse out what the weather impact is when you literally don't have a control group. However, we know when the sun was shining, our customers were engaged and that's huge testament to to our merchants and our operators for for inspiring them to do outdoor projects and, and the like. So it's, it's hard to parse out weather. And therefore, we're, we're cautious with respect to extrapolating Q3 just given how favorable the weather truly was across the country. And and maybe we talk about market.

所以你問題的第一部分，斯科特，你看，我們全國各地的天氣都很好。因此，當你實際上沒有對照組時，就很難分析出天氣的影響是什麼。然而，我們知道，當陽光明媚時，我們的客戶就會參與其中，這對我們的商家和經營者來說是一個巨大的證明，鼓勵他們進行戶外專案等。所以，很難解析天氣。因此，考慮到全國各地的天氣確實非常有利，我們對第三季的推論持謹慎態度。也許我們會談論市場。

I'll jump in and I'll turn it over a little, you know, to share an Hector. But as we've mentioned, just tremendous opportunity as we think about greater share of wallet with the Pro complex Pro and we invest in across the end to end experience. We have talked about previously of what we're doing with capabilities on the complex side of the business. And today, I highlighted a lot of great work that Hector and his team is doing with the Instore Pro. And when we think about it across the entire ecosystem, we want to have a great experience outside the stores and we want to have a great experience inside the store. So we have to be working on these initiatives simultaneously. To your point, the more they engage with our capabilities, we are seeing tremendous upside and it's important for us as we think about 17 markets to ensure that we're delivering an excellent experience where we build the level of confidence. So chip, I know you continue to work on some key capabilities and if you turn it over to heck on some of the things he's doing in store.

我會跳進去，把它翻過來一點，你知道，分享一個赫克托。但正如我們所提到的，當我們考慮使用 Pro 複合體 Pro 獲得更大的錢包份額時，這就是巨大的機會，並且我們投資於端到端體驗。我們之前已經討論過我們正在利用業務複雜方面的功能來做什麼。今天，我重點介紹了 Hector 和他的團隊在 Instore Pro 上所做的許多出色工作。當我們考慮整個生態系統時，我們希望在商店外獲得良好的體驗，並且希望在商店內獲得良好的體驗。因此，我們必須同時致力於這些措施。就您而言，他們越多地利用我們的能力，我們就會看到巨大的優勢，這對我們來說很重要，因為我們考慮 17 個市場，以確保我們提供卓越的體驗，從而建立信心。所以，晶片，我知道你會繼續研究一些關鍵功能，如果你把它交給他正在做的一些事情，那就見鬼了。

Yes, thanks, Ann and Scott. We're very encouraged in what's going on in the 17 investment markets where we've been building out the ecosystem and reference, you know, the investment in our foundational capabilities, breadth and depth of inventory, supply chain delivery. And importantly, our sales force has led to share gains and outperformance in all those markets, low single digits in those markets. So very, very pleased as Billy mentioned, these customers that are interacting with our ecosystem are some of our very best performing customers. Just as an example, we've launched our trade credit offering where it's early days, but it is really resonating with our customers and we've been able to take share in some of the projects that we normally cannot participate in. So very pleased with what's what's happening, Hector and.

是的，謝謝，安和斯科特。我們對 17 個投資市場正在發生的事情感到非常鼓舞，我們一直在這些市場上建立生態系統和參考，你知道，對我們的基礎能力、庫存的廣度和深度、供應鏈交付的投資。重要的是，我們的銷售團隊在所有這些市場中帶來了份額成長和優異的業績，這些市場中的個位數較低。正如比利所提到的，非常非常高興，這些與我們的生態系統互動的客戶是我們表現最好的客戶之一。舉個例子，我們已經推出了貿易信貸服務，雖然還處於早期階段，但它確實引起了我們客戶的共鳴，我們已經能夠分享一些我們通常無法參與的項目。托和。

Scott. I would just add that we are super pleased with engagement of our team in store to drive just a great experience for the in store. Pro I mentioned some of the strategic adjustments that we made going into the second half of the year to drive that engagement from, from our leaders, we're laser focused on driving SP and S for check out for our pros, making sure that we are driving in stock on large quantities of the pro the customers need and integrating the tools and resources and features that chip and team are developing for the outside pro. They are also adding value to the Instore Pro experience. So we just like how the ecosystem is coming together in those markets and beyond.

斯科特.我想補充一點，我們對店內團隊的參與感到非常滿意，他們為店內帶來了良好的體驗。專業人士，我提到了我們在下半年進行的一些策略調整，以推動領導者的參與，我們專注於推動 SP 和 S 來檢查我們的專業人士，確保我們正在增加客戶所需的大量專業人士的庫存，並整合晶片和團隊正在為外部專業人士開發的工具、資源和功能。他們也為 Instore Pro 體驗增添了價值。因此，我們非常喜歡生態系在這些市場及其他市場的整合方式。

Does that complete your question?

這完成了你的問題嗎？

Our next question, our next question comes from the line of Michael Lasser with U BS. Please proceed with your question.

我們的下一個問題，我們的下一個問題來自 Michael Lasser 和 U BS 的對話。請繼續你的問題。

Good morning. Thank you so much for taking my question, Ted. Are you looking at the multiyear home improvement outlook as the longer that rates remain elevated, the more that homeowners are projects and as soon as rates come down, that will lead to a more robust recovery. So there's a relationship between what's happening right now and the magnitude of the recovery. And I guess as part of that, if rates don't come down next year, can the home improvement industry grow in 2025?

早安.非常感謝你回答我的問題，泰德。您是否正在考慮多年的房屋裝修前景，因為利率保持高位的時間越長，房主的專案就越多，一旦利率下降，這將導致更強勁的復甦。因此，現在發生的事情和復甦的程度之間存在著某種關係。我想作為其中的一部分，如果明年利率不下降，家居裝修行業可以在 2025 年增長嗎？

Yes. You know, Michael, we, we think about that quite a bit as you can imagine. I mean, certainly rates have been high. They pressured turnover most specifically, but even he lock extraction, heloc extraction is something like 25% right now of more recent period extraction. So clearly, rates are are impacting. But, you know, I'm not sure that, you know, we've talked about when rates came down to the 6% we immediately saw activity in housing and we were seeing that, you know, just a matter of weeks, months ago before this latest change when, when rates actually went up, I, I think there's a little bit of so much discussion about where rates are going and that the certainty of that they were going down has caused people to wait for that lower rate. But if you get stability, it sort of any rate might be more important at this point. So one once rates settle and there's probably a gradual easing of rates. But I don't think we need, you know, a dramatic drop. We, we just need the talk of the big drops are coming and, you know, market equilibrium will set in either that or, you know, people simply get, get used to the higher rates which historically are, are still pretty decent rates and life cycles will continue, you know, new household formation, increasing size of home, decreasing size of homes, second homes, you know, that normal equilibrium of of housing activity will, will be reestablished. We've just had such a dramatic increase in value increase in rates followed by, you know, this expectation of a meaningful short term drop in rates over a very short period of time that has changed that, that stable, you know, turnover rate that we've seen for years and years to be, you know, what, now you would argue could, could be a, a low. So I don't think again to answer your question that, that they have to, to drop, you know, quickly and, and meaningfully, they just need to stabilize and all the talk of what the fed is going to do sort of gets out of the, the national conversation.

是的。你知道，邁克爾，正如你可以想像的那樣，我們對此進行了相當多的思考。我的意思是，利率肯定很高。他們最具體地對營業額施加壓力，但即使是他鎖定提取，heloc 提取現在也大約是近期提取的 25%。很明顯，利率正在產生影響。但是，你知道，我不確定，你知道，我們已經討論過，當利率降至6% 時，我們立即看到了住房市場的活動，而且我們看到，你知道，僅僅幾週、幾個月的時間在這次最新的變化之前，當利率實際上升時，我認為有很多關於利率走向的討論，而且利率下降的確定性導致人們等待更低的利率。但如果你獲得了穩定性，那麼在這一點上無論如何它可能更重要。因此，一旦利率穩定下來，利率可能會逐漸放寬。但我認為我們不需要大幅下降。我們，我們只需要談論即將到來的大幅下跌，你知道，市場均衡將在其中設定，或者，你知道，人們只是習慣了歷史上較高的利率，仍然是相當不錯的利率，生命週期將繼續，你知道，新家庭的形成，房屋面積的增加，房屋面積的減小，第二套住房，你知道，住房活動的正常平衡將被重新建立。我們剛剛經歷了利率價值大幅增長，隨後，你知道，利率在很短的時間內出現有意義的短期下降的預期，這改變了穩定的周轉率我們多年來一直看到，你知道，現在你可能會說，可能會是個低點。因此，我不想再次回答你的問題，即他們必須迅速、有意義地放棄，他們只需要穩定下來，所有關於美聯儲將要做什麼的討論都會得到關注。

Got you. That's very helpful. My follow up question is I want to get the team's perspective on tariffs. So it's part of that, what percentage of sales for the Home Depot could be subject to tariffs in China? And what about from other countries? And is the bigger risk from tariffs related to the sheer increase in merchandise cost or the indirect impact of potentially accelerate the accelerating inflation and that impact on consumer spending. Thank you.

明白你了。這非常有幫助。我的後續問題是我想了解團隊對關稅的看法。那麼，家得寶在中國的銷售額有多大比例可能需要繳關稅呢？那麼來自其他國家的呢？關稅帶來的更大風險是與商品成本的大幅增加有關，還是與可能加速通膨加速的間接影響以及對消費者支出的影響有關。謝謝。

Sure. And I'll let let Billy and, and John Deaton who runs our supply chain. Comment on, on tariffs. I I would say, you know, first and foremost, whatever happens in tariffs will be an industry wide impact. It won't, won't discriminate against you know, different retailers and distributors who are importing goods, the type of product as an industry is, is generally sourced from the same countries, there has been some diversification of those sources but, but clearly, you know, a bit of concentration in Southeast Asia and China in particular, we, we source, you know, Well, well, more than half of our goods, you know, domestically and in North America, but there, there certainly will be an impact. But again, given, given our scale, our experience going through the previous tariffs on, at 25% on, you know, I guess it was a couple of $100 billion of industry, import goods going back a number of years ago. You know, I bet on this team's ability to work with the type of suppliers we have to work through this in a differentiated manner than, than others in the industry. But Billy and John wanted to give some input.

當然。我會讓比利和約翰·迪頓負責管理我們的供應鏈。評論關稅。我想說，你知道，首先也是最重要的是，無論關稅發生什麼，都會對整個產業產生影響。它不會，不會歧視你知道，進口商品的不同零售商和分銷商，作為一個行業的產品類型，通常來自相同的國家，這些來源有一些多樣化，但是，但是顯然，你知道，有點集中在東南亞和中國，特別是我們，我們採購，你知道，好吧，好吧，我們一半以上的貨物，你知道，在國內和北美，但是在那裡，肯定有將會產生影響。但同樣，考慮到我們的規模，以及我們之前對 25% 關稅徵收的經驗，我猜這是幾年前價值 1000 億美元的工業進口商品。你知道，我打賭這個團隊有能力與供應商類型合作，我們必須以不同於業內其他人的方式解決這個問題。但比利和約翰想提供一些意見。

Yeah, Michael, it's Billy, thanks. You know, as Ted mentioned, I mean, our teams have been through this before. We anticipate we'll manage through, you know, any new tariffs, you know, similarly to how we've done this in the past, as Ted mentioned, the majority of our goods are sourced in, in North America. And listen, we've been focused on diversifying, you know, sourcing for several years and you know, we'll continue to assess that going forward and I'll hand it to John. I mean, we're focused on that, but frankly, there's some other things that, that John and the team are, are also focused on. Yeah.

是的，邁克爾，我是比利，謝謝。你知道，正如特德所提到的，我的意思是，我們的團隊以前經歷過這種情況。我們預計我們將應對任何新的關稅，就像我們過去所做的那樣，正如特德所提到的，我們的大部分商品都來自北美。聽著，我們多年來一直專注於多元化採購，你知道，我們將繼續評估未來的情況，我會將其交給約翰。我的意思是，我們專注於此，但坦白說，約翰和團隊也關注其他一些事情。是的。

More, more near term. We're, we're focused on the resolution of the East Coast port situation and any implications that might have on our ability to move product through our supply chain is as Bill. And Ted said we have, you know, a lot of experience in this area in terms of being able to manage through these types of disruptions and these types of changes in terms of trade policy and, and we feel very confident with our ability to manage through whatever is to come in in the future.

更多，更近期。我們專注於東海岸港口局勢的解決，以及可能對我們透過供應鏈運輸產品的能力產生的任何影響，就像比爾一樣。特德說，我們在這一領域擁有豐富的經驗，能夠應對這些類型的干擾和貿易政策方面的變化，並且我們對我們的管理能力非常有信心透過未來發生的一切。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Our next question comes to the line of Simeon Gutman with Morgan Stanley. Please proceed with your question.

我們的下一個問題涉及西蒙·古特曼與摩根士丹利的關係。請繼續你的問題。

Hi, good morning, everyone. First, a short term question on Q3 to Q4, you mentioned Q3 exceeded expectations. X the hurricanes, there was weather and you mentioned that the weather helped as well in thinking about the movement to Q4. It looks like it's a decel on stacks and obviously the absolute number. So is the assumption that weather is less helpful or is there some conservatism or any other things that change into the fourth quarter?

嗨，大家早安。首先，關於第三季到第四季的短期問題，您提到第三季超出了預期。 X 颶風，還有天氣，您提到天氣也有助於思考第四季的走勢。看起來這是堆疊上的減速，顯然是絕對數字。那麼，是假設天氣不太有幫助，還是存在一些保守主義或任何其他事情會在第四季度發生變化？

Thanks Simeon. It's, it's Richard. But bottom line, we don't expect the fundamentals of our business to decelerate.

謝謝西蒙。這是，這是理查德。但最重要的是，我們預期我們業務的基本面不會放緩。

We're just being cautious about extrapolating Q3 results. That's all significant benefit from weather. And also, you know, just as a reminder, the guide is for approximately negative 2.5 comp sales.

我們只是對推斷第三季的結果持謹慎態度。這都是天氣帶來的顯著好處。而且，您知道，提醒一下，該指南適用於大約負 2.5 倍的銷售量。

Okay. Fair enough. And second on the macro, this is trying to get a sense of how you're thinking and I know a lot of it, this call is helpful in that regard. The weight that you're thinking about in terms of tapple equity, which we've talked about recently versus something like housing turnover, both are impacted by rates. But could this tapple equity idea become like a lock in effect at some point? When does that kick in? Can it kick in even with rates being higher?

好的。很公平。其次是宏觀方面，這是試圖了解你的想法，我知道很多，這個電話在這方面很有幫助。您所考慮的股票淨值權重（我們最近討論過）與房屋週轉率等因素相比，兩者都受到利率的影響。但這種 Tapple 股權想法是否會在某個時候變得像鎖定一樣有效？什麼時候開始？即使利率更高，它還能發揮作用嗎？

Yeah, that, that, you know what the question is often posed to us? Hey, with housing turnover, there's obviously more spend and if you don't move, then you remove place. And while we haven't, you know, we've seen the decrease in moving. When does the, the repair or the remodel in place take effect? I mean, clearly that has, has been delayed and we would point to the higher rates. But even more importantly, our surveys over the prior several months, more than cost of project and higher rates. The number one issue that people were citing in our surveys were general macro macroeconomic and even political uncertainty. So as those dissipate, I, I think you'll, you'll see people again with a lower rate. He locks are, are variable. So those are down 75 basis points since the cuts. And assuming we're going to get another cut here in December, huge amount of capable equity that's nearly doubled. Since the end of 19, it went from just under 6 to $11.5 trillion. I mean, the T trillion with a T so tremendous amount of tapple equity, you know, recall back in the, the housing boom, I think folks were taking out as much as 120 billion a quarter.

是的，那個，那個，你知道經常向我們提出的問題是什麼嗎？嘿，隨著房屋的周轉，顯然會有更多的支出，如果你不搬家，那麼你就會搬走地方。雖然我們還沒有看到，但我們已經看到了搬家的減少。修復或改造何時生效？我的意思是，顯然這已經被推遲了，我們會指出更高的利率。但更重要的是，我們在前幾個月的調查顯示，不僅僅是專案成本和更高的費率。人們在我們的調查中提到的第一個問題是總體宏觀經濟甚至政治的不確定性。因此，隨著這些消散，我，我想你會再次看到利率較低的人。他的鎖是，是可變的。自降息以來，這些數字已下降 75 個基點。假設我們將在 12 月再次削減，大量有能力的股權幾乎翻了一番。自 19 年底以來，這一數字從不到 6 兆美元增加到 11.5 兆美元。我的意思是，T 兆美元，擁有如此巨大的股票資產，你知道，回想一下房地產繁榮時期，我認為人們每季拿出的資金高達 1200 億美元。

That was more recently, you know, 6,080 a quarter and now we're down to 20 a quarter. So don't think it goes much slower when people get some confidence back in, you know, macro and in political dynamic, you know, it, it's a big project and for someone to make that decision to pull the trigger on a 2,550 $75,000 project, there's a, there's a certain amount of, you know, confidence that that goes into that. And 11 would hope that we're, we're headed toward a change in overall confidence levels.

最近，你知道，每季 6,080 個，現在我們減少到每季 20 個。因此，當人們對宏觀和政治動態恢復信心時，不要認為它會慢得多，你知道，這是一個大項目，對於有人做出決定扣動扳機的 2,550 美元 75,000項目，有一定的，你知道，對此有信心。 11 希望我們的整體信心水準正在改變。

Thank you.

謝謝。

And Christine, we have time for one more question.

克里斯汀，我們還有時間再問一個問題。

Thank you. Our final question comes from the line of Steven Forbes with Guggenheim. Please proceed with your question.

謝謝。我們的最後一個問題來自史蒂文·福布斯與古根漢的對話。請繼續你的問題。

Good morning.

早安.

Ted, I appreciate the color around cross selling opportunities at SRS, but I wanted to explore maybe some of the learnings you're gaining from monitoring the sales force over there. So can you remind us on how large the sales force is today at SRS and, and what you're tracking to maybe inform your decision on, on how you're thinking about scaling the sales force at HD.

Ted，我很欣賞 SRS 交叉銷售機會的色彩，但我想探討您從監控那裡的銷售人員中獲得的一些知識。那麼，您能否提醒我們，SRS 目前的銷售隊伍有多大，以及您正在追蹤哪些內容，以便為您的決策提供依據，以及您如何考慮擴大 HD 的銷售隊伍。

Right. So, their, their outside sales force is about 2,500 people. They also have inside sales force capabilities and, and account managers. It, it's observing what they do and how they do it has given us you know, confidence in that what our approach is in terms of variable compensation, in terms of, of management structure. And, and how we go to market. So, you know, clearly we're, we're in the hundreds of outside sales folks there, you know, multiples of that and the way the way they're compensated, managed the tools they use to to go to market. All that is, is, is reinforcing what we're doing. Chip mentioned. You know, the credit credit credit is a huge unlock for these larger projects. And al almost all their sales are on open account, house account and is, is we've, you know, introduced and again, it's just hundreds of customers at this time, we're seeing much, much larger purchases, you know, the type of purchase that you, you just wouldn't get from, from putting it on a credit card at a, at a pro desk at a, at a Home Depot store. So, yeah, great learnings. Chip and his team are in, in contact regularly with, with the SRS sales team and you know, just going really, really well.

正確的。所以，他們的外部銷售人員大約有 2,500 人。他們還擁有內部銷售團隊能力和客戶經理。觀察他們做了什麼以及他們如何做，這讓我們對我們在可變薪酬、管理結構方面的方法充滿信心。以及我們如何進入市場。所以，你知道，顯然我們有數百名外部銷售人員，你知道，他們的薪酬方式、管理他們用於進入市場的工具的方式是其數倍。所有這一切都在加強我們正在做的事情。晶片提到過。要知道，信用信用對於這些較大的項目來說是一個巨大的解鎖。他們幾乎所有的銷售都是透過賒帳帳戶、內部帳戶進行的，我們已經介紹過，現在只有數百名客戶，我們看到了更多、更多的購買，你知道，您無法透過在a、在家得寶(Home Depot) 商店的專業服務台使用信用卡購買。所以，是的，學到了很多。 Chip 和他的團隊定期與 SRS 銷售團隊保持聯繫，而且進展非常非常順利。

And then maybe just a quick follow up on that. Can you maybe just update us on the current time line or, or thinking behind the full roll out of bill upon delivery capabilities within the order management system?

然後也許只是快速跟進。您能否向我們更新目前的時間軸，或考慮在訂單管理系統內全面推出交付功能的帳單？

Yeah. Hi, Steve. It's Chip. We plan to roll out order management by the end of 2025 there's elements of order management that are being turned on as we speak, including inventory reservation, which is a key win for us is as pros manage larger pro projects to be able to reserve that inventory for future delivery is a big win. So we'll light that up through the course of 2025 with completion at the end of the year.

是的。嗨，史蒂夫。這是奇普。我們計劃在2025 年底之前推出訂單管理，就在我們發言時，訂單管理的一些要素正在啟用，包括庫存預留，這對我們來說是一個關鍵的勝利，因為專業人士管理更大的專業項目，以便能夠預留庫存未來交貨的庫存是一個巨大的勝利。因此，我們將在 2025 年期間實現這一目標，並在年底完成。

Thank you.

謝謝。

Thank you, Miss Jancy. I'd like to turn the floor back over to you for closing comments.

謝謝你，詹西小姐。我想將發言權交還給您以供結束評論。

Thanks, Christine. Thank you all for joining us today. We look forward to speaking with you on our fourth quarter earnings call in February.

謝謝，克里斯汀。感謝大家今天加入我們。我們期待在二月的第四季財報電話會議上與您交談。

Ladies and gentlemen, this does conclude 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。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。