家得寶 (HD) 2022 Q1 法說會逐字稿

Greetings and welcome to The Home Depot First Quarter 2022 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

問候並歡迎參加家得寶 2022 年第一季度財報電話會議。 （操作員說明）作為提醒，本次會議正在錄製中。

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

現在很高興向您介紹主持人 Isabel Janci。請繼續。

Thank you, Christine, and good morning, everyone. Welcome to Home Depot's First Quarter 2022 Earnings Call. Joining us on our call today are Ted Decker, CEO and President; Jeff Kinnaird, Executive Vice President of Merchandising; and Richard McPhail, 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. (Operator Instructions) If we are unable to get to your question during the call, please call our Investor Relations department at (770) 384-2387.

謝謝你，克里斯汀，大家早上好。歡迎來到家得寶 2022 年第一季度財報電話會議。今天加入我們電話會議的是首席執行官兼總裁 Ted Decker； Jeff Kinnaird，商品銷售執行副總裁；和執行副總裁兼首席財務官 Richard McPhail。在我們準備好的講話之後，電話將開放接受提問。問題僅限於分析師和投資者。 （操作員說明）如果我們在通話期間無法回答您的問題，請致電 (770) 384-2387 聯繫我們的投資者關係部。

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 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 press 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 Ted 之前，讓我提醒您，今天的新聞稿和我們高管所做的陳述包括 1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。這些陳述受到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大相徑庭。這些風險和不確定性包括但不限於新聞稿和我們提交給證券交易委員會的文件中確定的因素。今天的演講還將包括某些非公認會計原則的措施。我們的網站上提供了這些措施的對賬。

Now let me turn the call over to Ted.

現在讓我把電話轉給 Ted。

Thank you, Isabel, and good morning, everyone. We appreciate you joining us on the call this morning. Fiscal 2022 is off to a strong start. Sales for the first quarter were $38.9 billion, up 3.8% from the same period last year. Comp sales were up 2.2% from the same period last year, and our U.S. stores had positive comps of 1.7%. Diluted earnings per share were $4.09 in the first quarter, up 6% from $3.86 in the first quarter last year.

謝謝你，伊莎貝爾，大家早上好。感謝您今天早上加入我們的電話會議。 2022 財年開局良好。第一季度銷售額為 389 億美元，比去年同期增長 3.8%。比較銷售額比去年同期增長 2.2%，我們的美國商店的銷售額為 1.7%。第一季度每股攤薄收益為 4.09 美元，比去年第一季度的 3.86 美元增長 6%。

The strong performance in the quarter is even more impressive given the robust performance we were comparing against last year. A year ago, we delivered the highest first quarter sales in company history as we benefited from outsized demand for home improvement goods, favorable weather and government stimulus. This year, we achieved a new high watermark for first quarter sales as strong demand for home improvement goods continued despite a slower start to spring in many parts of the country.

鑑於我們與去年相比的強勁表現，本季度的強勁表現更加令人印象深刻。一年前，我們受益於對家居用品的巨大需求、有利的天氣和政府的刺激措施，實現了公司歷史上最高的第一季度銷售額。今年，儘管該國許多地區的春季開局較慢，但由於對家居裝飾商品的強勁需求持續強勁，我們的第一季度銷售額創下新高。

Delivering such strong results on top of last year's historical growth is a testament to our orange-blooded associates. They are maintaining their relentless focus on our customers while continuing to navigate the ongoing pandemic, global supply chain disruptions, inflation and a tight labor market. We are also thankful for the strength of our relationships with our supplier and transportation partners. Our respective teams are working tirelessly to flow product to stores and distribution centers as quickly and efficiently as possible. I would like to thank them for their ongoing support as we continue to navigate a challenging and dynamic environment.

在去年的歷史增長基礎上取得如此強勁的業績證明了我們的橙血員工。他們在繼續應對持續的大流行、全球供應鏈中斷、通貨膨脹和勞動力市場緊張的同時，繼續對我們的客戶保持不懈的關注。我們也感謝我們與供應商和運輸合作夥伴的牢固關係。我們各自的團隊正在不知疲倦地工作，以盡可能快速有效地將產品運送到商店和配送中心。我要感謝他們在我們繼續在充滿挑戰和動態的環境中提供的持續支持。

The demand seen in the first quarter exceeded our expectations. The home improvement consumer remains engaged. Customers continue to tell us that their homes have never been more important, and project backlogs are very healthy. We believe that the medium- to longer-term underpinnings of demand for home improvement have never been stronger.

第一季度的需求超出了我們的預期。家居裝修消費者仍然參與其中。客戶繼續告訴我們，他們的家從未像現在這樣重要，並且項目積壓非常健康。我們認為，家裝需求的中長期基礎從未如此強勁。

We are thrilled with our Pro performance in the quarter, driven by underlying strength in project demand. We continue to invest in an ecosystem of capabilities, including enhanced fulfillment options, a more personalized online experience as well as other business management tools to drive deeper engagement with our Pro customers. And we believe our efforts are resonating.

在項目需求潛在實力的推動下，我們對本季度的 Pro 業績感到興奮。我們將繼續投資於功能生態系統，包括增強的履行選項、更個性化的在線體驗以及其他業務管理工具，以推動與我們的 Pro 客戶更深入的互動。我們相信我們的努力會引起共鳴。

We are navigating a unique environment, but we believe we have the tools, the team and the experience to effectively manage through. While we don't know how inflation might impact consumer behavior going forward, we are closely monitoring elasticities and customer trends across our respective categories and geographies and remain encouraged by the underlying strength we see in the business. Jeff will provide a bit more color about what we've observed from a category and big-ticket standpoint in a moment.

我們正在一個獨特的環境中航行，但我們相信我們擁有有效管理的工具、團隊和經驗。雖然我們不知道通脹可能如何影響未來的消費者行為，但我們正在密切關注我們各自類別和地區的彈性和客戶趨勢，並繼續對我們在業務中看到的潛在實力感到鼓舞。 Jeff 稍後將提供更多關於我們從類別和大票的角度觀察到的內容。

And while inflation impacted our average ticket increase this quarter, it wasn't the only impact. As we've seen over the past several years, our customers continue to trade up for premium innovative products. In March, we held an in-person Store Manager Meeting for the first time in 3 years. One of the many highlights of that week is our Product Walk, where vendors showcased the latest in product innovation. And what I can share with you is that the level of innovation across the business is robust. In fact, almost 90% of the products on display this year are entirely new SKUs to The Home Depot. So the pipeline for innovative products remains very strong.

雖然通貨膨脹影響了我們本季度的平均票價增長，但這並不是唯一的影響。正如我們在過去幾年中看到的那樣，我們的客戶繼續為優質創新產品進行交易。 3 月，我們召開了 3 年來第一次面對面的店長會議。那一周的眾多亮點之一是我們的產品展，供應商展示了最新的產品創新。我可以與您分享的是，整個業務的創新水平是穩健的。事實上，今年展出的近 90% 的產品都是家得寶的全新 SKU。因此，創新產品的管道仍然非常強勁。

Beyond product and innovation, my biggest takeaway from the Store Managers Meeting is how energized the team is. The exceptional execution our associates delivered over the last few years hasn't been easy, but our teams have consistently risen to the challenge. We frequently survey our associate base and are pleased that engagement and morale remain high.

除了產品和創新之外，我從商店經理會議中獲得的最大收穫是團隊充滿活力。我們的員工在過去幾年中提供的卓越執行力並非易事，但我們的團隊一直在迎接挑戰。我們經常調查我們的員工基礎，並對敬業度和士氣保持高漲感到高興。

Last quarter, we talked about our customer-backed approach to remove friction at every touch point of the shopping experience. To that end, we recently announced that Matt Carey has been named Executive Vice President of Customer Experience. In this newly formed role, Matt will partner across the business to help design and develop new and innovative solutions to drive a seamless experience for our customers.

上個季度，我們討論了我們以客戶為支持的方法，以消除購物體驗每個接觸點的摩擦。為此，我們最近宣布 Matt Carey 被任命為客戶體驗執行副總裁。在這個新成立的職位上，Matt 將與整個企業合作，幫助設計和開發新的創新解決方案，為我們的客戶帶來無縫體驗。

As Matt transitions to this new role, we also announced that Fahim Siddiqui has been promoted to Executive Vice President and Chief Information Officer, where he is responsible for all aspects of our technology development and strategy. These moves will help drive further alignment around our interconnected retail strategy, which will allow us to enhance what we believe is the best experience in home improvement.

隨著 Matt 轉任這一新職位，我們還宣布 Fahim Siddiqui 已晉升為執行副總裁兼首席信息官，負責我們技術開發和戰略的各個方面。這些舉措將有助於推動圍繞我們相互關聯的零售戰略的進一步調整，這將使我們能夠增強我們認為是家居裝修的最佳體驗。

Richard will talk to you in a few minutes about our guidance for the remainder of the year, but the first quarter certainly got us off to a great start. We're also encouraged by the continued strength we see in the business through the first 2 weeks of the second quarter as spring is breaking more broadly across the U.S.

理查德將在幾分鐘內與您討論我們對今年剩餘時間的指導，但第一季度無疑讓我們有了一個良好的開端。隨著春季在美國更廣泛地爆發，我們在第二季度的前兩週看到該業務的持續增長也令我們感到鼓舞。

Our team continues to focus on what is most important: our associates and customers. Our merchants, store and MET teams, supplier partners and supply chain teams did an outstanding job delivering value and service to our customers throughout the quarter. I'd like to close by thanking them for their dedication and hard work.

我們的團隊繼續專注於最重要的事情：我們的員工和客戶。我們的商家、商店和 MET 團隊、供應商合作夥伴和供應鏈團隊在整個季度為我們的客戶提供價值和服務方面表現出色。最後，我要感謝他們的奉獻和辛勤工作。

With that, let me turn the call over to Jeff.

有了這個，讓我把電話轉給傑夫。

Thank you, Ted, 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, during the first quarter, we continued to see outsized demand for home improvement projects and strong execution from our teams and supplier partners.

謝謝你，泰德，大家早上好。首先，我還要感謝我們所有的員工和供應商合作夥伴，他們一直致力於為我們的客戶和社區服務。正如您從 Ted 那裡聽到的，在第一季度，我們繼續看到對家居裝修項目的巨大需求以及我們的團隊和供應商合作夥伴的強大執行力。

Turning to our comp performance during the first quarter. 11 of our 14 merchandising departments posted positive comps, led by plumbing, building materials, millwork and paint. During the first quarter of this year, we saw double-digit negative comps in our seasonal departments due to the late arrival of spring. Appliances posted slightly negative comps. Adjusting for a shift in event timing, appliance comps would have been positive for the quarter. Excluding seasonal categories, we are thrilled with the broad-based strength across the business and healthy project demand.

談到我們在第一季度的業績。我們 14 個銷售部門中有 11 個發布了積極的業績，主要是管道、建築材料、木製品和油漆。今年第一季度，由於春天的遲到，我們的季節性部門看到了兩位數的負數。家電發布了輕微的負面補償。調整事件時間的變化後，本季度的設備補償將是積極的。不包括季節性類別，我們對整個業務的廣泛實力和健康的項目需求感到興奮。

During the first quarter, our comp average ticket increased 11.2% and comp transactions decreased 8.4%. The growth in our comp average ticket was driven primarily by inflation across several product categories as well as demand for new and innovative products. Comp transactions reflect the late start to spring and anniversarying of stimulus. And on a 2- and 3-year basis, both comp average ticket and comp transactions were healthy and positive.

在第一季度，我們的補償平均票價增加了 11.2%，補償交易減少了 8.4%。我們的平均票價增長主要是由多個產品類別的通貨膨脹以及對新產品和創新產品的需求推動的。補償交易反映了春季開始較晚和刺激措施的周年紀念。在 2 年和 3 年的基礎上，補償平均門票和補償交易都是健康和積極的。

Inflation from core commodity categories positively impacted our average ticket growth by approximately 240 basis points during the first quarter, driven by inflation in lumber, copper and building materials. Lumber prices remained volatile during the quarter. As an example, framing lumber peaked at approximately $1,300 per thousand board feet during the first quarter before falling over $400 to approximately $900. Big-ticket comp transactions or those over $1,000 were up 12.4% compared to the first quarter of last year. We saw big-ticket strength across many Pro-heavy categories, like pipe and fittings, gypsum and fasteners.

在木材、銅和建築材料通脹的推動下，核心商品類別的通脹在第一季度對我們的平均票價增長產生了約 240 個基點的積極影響。本季度木材價格仍然波動。例如，框架材在第一季度達到每千板英尺約 1,300 美元的峰值，然後跌至 400 多美元至約 900 美元。與去年第一季度相比，大額補償交易或超過 1,000 美元的交易增長了 12.4%。我們在許多專業重型類別中看到了巨大的實力，例如管道和配件、石膏和緊固件。

During the first quarter, Pro sales growth outpaced DIY. On a 3-year comp basis, both growth with our -- growth at both our Pro and DIY customers was consistent and strong. We're encouraged by the momentum we are seeing with our Pros, and they tell us that their backlogs are strong. And during the quarter, we saw many of our customers turn to Pros to help them with larger renovation projects. This can be seen in the double-digit comp performance of our building materials and plumbing departments as well as in certain kitchen and bath categories, like in-stock kitchens, tubs and showers and countertops. We also saw double-digit growth in our kitchen and bath installation business. This underscores the strength of project demand we are seeing across the business.

在第一季度，Pro 銷售增長超過了 DIY。在 3 年的比較基礎上，我們的 Pro 和 DIY 客戶的增長都是一致且強勁的。我們對我們的專業人士看到的勢頭感到鼓舞，他們告訴我們他們的積壓工作很強大。在本季度，我們看到許多客戶求助於專業人士來幫助他們進行更大的翻新項目。這可以從我們的建築材料和管道部門以及某些廚房和浴室類別（如庫存廚房、浴缸和淋浴間和檯面）的兩位數複合表現中看出。我們的廚房和浴室安裝業務也實現了兩位數的增長。這突顯了我們在整個業務中看到的項目需求的強度。

Sales leveraging our digital platforms increased 3.7% during the first quarter. We are very pleased with the performance of our digital assets as we delivered the highest sales dollar volume in our company history. For those customers that chose to transact with us online during the first quarter, more than 50% of our online orders were fulfilled through our stores, a testament to the power of our interconnected retail strategy.

利用我們的數字平台的銷售額在第一季度增長了 3.7%。我們對數字資產的表現感到非常滿意，因為我們實現了公司歷史上最高的銷售額。對於那些在第一季度選擇與我們在線交易的客戶，我們超過 50% 的在線訂單是通過我們的商店完成的，這證明了我們互聯零售戰略的力量。

As you heard from Ted, we are very excited about the innovation we are introducing across the business. We continue to lean into products that simplify the project, saving our customers time and helping them take on more jobs. One example is our Viega ProPress line of plumbing. Your plumbers can create a water-tight copper connection in 60% less time than a traditional copper solder job. Viega ProPress fittings require no flame and work in wet applications. Viega is the market leader in this space and is exclusive to The Home Depot in the big-box channel.

正如您從 Ted 那裡聽到的，我們對我們在整個業務中引入的創新感到非常興奮。我們繼續致力於簡化項目的產品，為客戶節省時間並幫助他們承擔更多工作。一個例子是我們的 Viega ProPress 管道系列。與傳統的銅焊接作業相比，您的水管工可以在 60% 的時間內創建防水銅連接。 Viega ProPress 接頭無需火焰，可在潮濕應用中工作。 Viega 是該領域的市場領導者，並且是 The Home Depot 在大盒子渠道中的獨家產品。

In paint, working with Masco and PPG, we have put together a formidable Pro paint lineup that is resonating with our Pro painters. Masco's BEHR-formulated, Pro-specific offering continues to perform well in our stores. And in the first quarter, we added PPG SPEEDHIDE series. This Pro-specific paint that is specced in the vast majority of multihousing and large commercial jobs, giving us an entry point with our Pro painter for larger-scale projects. And this is now exclusive to The Home Depot in the big-box channel.

在油漆方面，我們與 Masco 和 PPG 合作，組建了一個強大的專業油漆陣容，這與我們的專業畫家產生了共鳴。 Masco 的 BEHR 配方、Pro 特定產品在我們的商店中繼續表現良好。並且在第一季度，我們增加了 PPG SPEEDHIDE 系列。這種專用於絕大多數多住宅和大型商業工作的專業油漆，為我們提供了一個與我們的專業油漆工合作進行大型項目的切入點。這現在是大盒子頻道中家得寶的獨家產品。

In spray paint, we launched PPG's Glidden Max-Flex spray paint. PPG's proprietary, industrial-based technology is uniquely flexible, covering an preserving the original look and feel of a wide range of surfaces, including leather and fabric. And with Masco, we've expanded their exclusive offerings to spray paint, caulks and sealants as well as interior stains.

在噴漆方面，我們推出了 PPG 的 Glidden Max-Flex 噴漆。 PPG 專有的基於工業的技術具有獨特的靈活性，涵蓋了保留各種表面（包括皮革和織物）的原始外觀和感覺。通過 Masco，我們將他們的獨家產品擴展到噴漆、填縫劑和密封劑以及室內污漬。

Now let's turn our attention to spring and the exciting lineup of products we have for our customers. We are thrilled to showcase our new product offerings across our seasonal categories. We are seeing an industry-wide shift from gas-powered to battery-powered mowers. Demand for cordless mowers have never been stronger. And our lineup of battery-powered mowers, including RYOBI's 80-volt Zero Turn Riding Mower, Milwaukee's new M18 Fuel walk mower, DEWALT's FLEXVOLT walk mower and Makita's LXT walk mower is unmatched. This lineup offers something for everyone, building on an ecosystem of innovative tools powered by the same battery platforms.

現在讓我們把注意力轉向春天和我們為客戶提供的令人興奮的產品陣容。我們很高興在我們的季節性類別中展示我們的新產品。我們正在看到整個行業從燃氣動力割草機到電池動力割草機的轉變。對無繩割草機的需求從未如此強烈。我們的電池供電割草機系列，包括 RYOBI 的 80 伏零轉彎騎乘式割草機、密爾沃基的新型 M18 Fuel 手扶割草機、DEWALT 的 FLEXVOLT 手扶割草機和牧田的 LXT 手扶割草機，是無與倫比的。該產品系列為每個人提供了一些東西，建立在由相同電池平台驅動的創新工俱生態系統之上。

In patio, we have continued to add optionality. And today, customers can create their perfect patio set to transform their outdoor living space through an enhanced online experience. And we expanded our assortment of grills. We're particularly excited about our new Traeger Timberline XL, which provides a larger cooking surface, easier maintenance and a side burner to enhance your cooking needs. Our new Neevo Next by Grill (sic) [Nexgrill] is the first propane-powered grill controlled via an app or your mobile device. The app displays timers, the grill temperatures and internal food temperatures, providing a consistent cooking experience for hours.

在露台上，我們繼續增加可選性。如今，客戶可以創建完美的露台套裝，通過增強的在線體驗來改變他們的戶外生活空間。我們擴大了烤架的種類。我們對我們的新 Traeger Timberline XL 感到特別興奮，它提供更大的烹飪表面、更易於維護和側燃燒器，可滿足您的烹飪需求。我們的全新 Neevo Next by Grill (sic) [Nexgrill] 是第一款通過應用程序或移動設備控制的丙烷動力烤架。該應用程序顯示計時器、烤架溫度和內部食物溫度，提供數小時一致的烹飪體驗。

We're also excited about our live goods program. Each year, our merchants provide our customers with new and improved varieties to enhance the overall garden experience. We've expanded our disease- and drought-resistant products offering superior performance. For example, Beacon impatiens are disease-resistant, and our Easy Wave petunias now require less sunlight and lasts up to 6 weeks longer. Adding these new, hardier plants allows our customers to have a vibrant and healthier garden for longer. Our live good category looks incredible. We are ready for spring from everything from shrubs to a variety of flower and edibles for every type of gardener.

我們也對我們的直播商品計劃感到興奮。每年，我們的商家都會為我們的客戶提供新的和改良的品種，以提升整體花園體驗。我們擴展了具有卓越性能的抗病和抗旱產品。例如，Beacon 鳳仙花具有抗病性，而我們的 Easy Wave 矮牽牛現在需要更少的陽光，並且持續時間長達 6 週。添加這些新的、更耐寒的植物可以讓我們的客戶更長時間地擁有一個充滿活力和更健康的花園。我們的生活好類別看起來令人難以置信。我們已經準備好迎接春天的到來，從灌木到各種花卉和各類園丁的食物。

And with that, I'll turn the call over to Richard.

有了這個，我會把電話轉給理查德。

Thank you, Jeff, and good morning, everyone. In the first quarter, total sales were $38.9 billion, an increase of $1.4 billion or 3.8% from last year. During the first quarter, our total company comps were positive 2.2% with positive comps of 12.9% in February, essentially flat in March and negative 2% in April. Comps in the U.S. were positive 1.7% for the quarter with positive comps of 12.5% in February, negative 0.3% in March and negative 2.9% in April. Recall that March reflects the anniversarying of stimulus and April was impacted by a delayed spring this year.

謝謝你，傑夫，大家早上好。一季度總銷售額為389億美元，比去年同期增加14億美元或3.8%。在第一季度，我們公司的總收入為 2.2%，2 月份為 12.9%，3 月份基本持平，4 月份為 2%。本季度美國的收入為正 1.7%，2 月份為 12.5%，3 月份為負 0.3%，4 月份為負 2.9%。回想一下，3 月反映了刺激措施的周年紀念日，而 4 月受到了今年春天延遲的影響。

Our results this quarter were once again driven by continued strength across the business. Spring temperatures broke late in all our geographies, but in particular impacted some of our northern regions. In local currency, both Mexico and Canada posted comps above the company average.

我們本季度的業績再次受到整個業務持續強勁的推動。我們所有地區的春季氣溫都出現較晚，但特別影響了我們北部的一些地區。以當地貨幣計算，墨西哥和加拿大公佈的薪酬均高於公司平均水平。

In the first quarter, our gross margin was 33.8%, a decrease of approximately 20 basis points from last year, primarily driven by supply chain investments and pressure from lumber. We continue to successfully offset significant transportation and product cost pressures while maintaining our position as the customers' advocate for value.

一季度，我們的毛利率為33.8%，比去年下降約20個基點，主要受供應鏈投資和木材壓力的推動。我們繼續成功地抵消重大的運輸和產品成本壓力，同時保持我們作為客戶價值倡導者的地位。

During the first quarter, operating expense as a percent of sales remained essentially flat to last year at approximately 18.6%. We were pleased with our operating expense performance during the first quarter, which reflected planned increases in wage and planned rollout of investments designed to drive efficiency in our store environment. Our operating margin for the first quarter was 15.2% compared to 15.4% in the first quarter of 2021.

在第一季度，營業費用佔銷售額的百分比與去年基本持平，約為 18.6%。我們對第一季度的運營費用表現感到滿意，這反映了計劃中的工資增長和計劃推出的旨在提高商店環境效率的投資。我們第一季度的營業利潤率為 15.2%，而 2021 年第一季度為 15.4%。

Interest and other expense for the first quarter increased by $36 million to $369 million due primarily to higher long-term debt levels than 1 year ago. Our effective tax rate was 23.9% in the first quarter of both fiscal 2022 and 2021. Our diluted earnings per share for the first quarter were $4.09, an increase of 6% compared to the first quarter of 2021.

第一季度的利息和其他費用增加了 3600 萬美元，達到 3.69 億美元，主要是由於長期債務水平高於一年前。我們在 2022 財年和 2021 財年第一季度的有效稅率為 23.9%。我們第一季度的攤薄後每股收益為 4.09 美元，與 2021 年第一季度相比增長了 6%。

Our total store count at the end of the quarter was 2,316, and selling square footage was 240 million square feet. Unfortunately, during the quarter, we lost a store in San Jose, California due to a fire. Thankfully, no one was injured, and all of our associates have been reassigned to other nearby stores. And the team has done a fantastic job continuing to serve our customers in the area.

本季度末，我們的店鋪總數為 2,316 家，銷售面積為 2.4 億平方英尺。不幸的是，在本季度，我們在加利福尼亞州聖何塞因火災失去了一家商店。謝天謝地，沒有人受傷，我們所有的員工都被重新分配到附近的其他商店。該團隊在繼續為該地區的客戶服務方面做得非常出色。

At the end of the quarter, inventories were $25.3 billion, up $6.1 billion compared to the first quarter of 2021. And inventory turns were 4.4x, down from 5.5x last year. This level of inventory reflects outsized demand for home improvement projects, actions taken to improve in-stocks and the impact of the delayed start to spring. While our in-stock position is not back to pre-pandemic levels, it is the healthiest it has been since the pandemic began.

本季度末，庫存為 253 億美元，比 2021 年第一季度增加 61 億美元。庫存周轉率為 4.4 倍，低於去年的 5.5 倍。這一庫存水平反映了對家居裝修項目的巨大需求、為改善庫存而採取的行動以及春季開工延遲的影響。雖然我們的庫存狀況沒有回到大流行前的水平，但它是自大流行開始以來最健康的。

Turning to capital allocation. After investing in our business and paying our dividend, it is our intent to return excess cash to shareholders in the form of share repurchases. As we have mentioned on previous calls, we plan to continue investing in our business with CapEx of approximately 2% of sales on an annual basis. We also plan to maintain flexibility, to move faster or slower depending on the environment.

轉向資本配置。在投資我們的業務並支付股息後，我們打算以股票回購的形式將多餘的現金返還給股東。正如我們在之前的電話會議中提到的那樣，我們計劃繼續投資我們的業務，每年資本支出約佔銷售額的 2%。我們還計劃保持靈活性，根據環境加快或減慢移動速度。

During the first quarter, we invested approximately $700 million back into our business in the form of capital expenditures. And during the quarter, we paid approximately $2 billion in dividends to our shareholders, and we returned approximately $2.25 billion to shareholders in the form of share repurchases. Computed on the average of beginning and ending long-term debt and equity for the trailing 12 months, return on invested capital was approximately 45.3%, up from 45.1% in the first quarter of fiscal 2021.

在第一季度，我們以資本支出的形式向我們的業務投資了大約 7 億美元。在本季度，我們向股東支付了約 20 億美元的股息，並以股票回購的形式向股東返還了約 22.5 億美元。根據過去 12 個月開始和結束的長期債務和股權的平均數計算，投資資本回報率約為 45.3%，高於 2021 財年第一季度的 45.1%。

Now I will comment on our updated guidance for fiscal 2022. As you heard from Ted, we are very pleased with the strong performance we saw during the first quarter, which surpassed our expectations. Today, we are raising guidance for 2022. We now expect sales growth and comp sales growth of approximately 3% for fiscal 2022. We expect comps to be stronger in the first half of the year than the second half of the year. We expect our fiscal 2022 operating margin to be approximately 15.4% for the year, and we expect mid-single-digit percentage growth in diluted earnings per share compared to fiscal 2021. While a number of uncertainties remain, we feel confident that we will be able to continue to manage through a dynamic environment while growing faster than our market and delivering exceptional shareholder value.

現在我將評論我們更新的 2022 財年指導。正如您從 Ted 那裡聽到的，我們對第一季度的強勁表現感到非常滿意，這超出了我們的預期。今天，我們提高了對 2022 年的指導。我們現在預計 2022 財年的銷售增長和復合銷售增長約為 3%。我們預計上半年的複合將比下半年強。我們預計 2022 財年全年營業利潤率約為 15.4%，與 2021 財年相比，我們預計攤薄後每股收益將實現中個位數百分比增長。儘管仍然存在許多不確定性，但我們相信我們將能夠繼續在動態環境中進行管理，同時增長速度超過我們的市場並提供卓越的股東價值。

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。克里斯汀，我們現在可以提問了。

(Operator Instructions) Our first question comes from the line of Michael Lasser with UBS.

（操作員說明）我們的第一個問題來自瑞銀的 Michael Lasser。

Understanding that your overall results were very strong, are you seeing any signs that either inflationary pressure, rising interest rates or simply home improvement fatigue are starting to have a negative impact on the business? And does it give you pause that comp transactions were down high single digits in the quarter as maybe a leading indicator that the business could soften from here?

了解到您的整體業績非常強勁，您是否看到任何跡象表明通脹壓力、利率上升或僅僅是家居裝修疲勞開始對業務產生負面影響？它是否讓您暫停本季度的複合交易量下降了高個位數，這可能是業務可能從這裡開始疲軟的領先指標？

Thanks, Michael. So it's a lot in that question. As we've said, we had a great Q1 in comp to comp from last year. As you recall, Q1 last year was our highest first quarter sales and our highest comp at 31% in the very, very long time. So as we went into this year, we were understandably conservative as to how we thought Q1 would pan out. But in fact, we saw that the consumer is very engaged. The Pro is very strong, and we posted those results with very much delayed spring.

謝謝，邁克爾。所以這個問題很多。正如我們所說，從去年開始，我們在第一季度的比賽中表現出色。您還記得，去年第一季度是我們在很長一段時間內最高的第一季度銷售額和最高的 31%。因此，當我們進入今年時，我們對第一季度的發展持保守態度，這是可以理解的。但實際上，我們看到消費者非常投入。專業版非常強大，我們發布了這些結果非常延遲的春天。

In Q2, it's early, but we're off to a strong start. We also think that the fundamentals -- I mean these are all very "short term in nature" comments, but the fundamentals for home improvement remain incredibly supportive. So when you look at inflation and interest rates in any fatigue, if I take those in order, inflation is definitely higher than we thought. If you recall, last year, we thought we'd have about 5% growth in ticket. We're seeing obviously much higher than that with 11% in ticket. A lot of that is inflation-driven. But our customers are resilient. We are not seeing the sensitivity to that level of inflation that we would have initially expected.

在第二季度，現在還為時過早，但我們已經有了一個良好的開端。我們還認為基本面——我的意思是這些都是非常“短期”的評論，但家居裝修的基本面仍然令人難以置信的支持。因此，當您疲倦地看待通貨膨脹和利率時，如果我按順序排列，通貨膨脹肯定比我們想像的要高。如果您還記得，去年，我們認為我們的票價將增長約 5%。我們看到的票數明顯高於 11%。其中很多是通貨膨脹驅動的。但我們的客戶是有彈性的。我們沒有看到我們最初預期的對通脹水平的敏感性。

On interest rates -- and Richard can talk a little bit more about interest rates and housing, but we have not seen that impacting our business and the nature of housing -- again, Richard will cover in greater detail. And then the fatigue, we're not seeing at all. We'd look at PCE and shifts in PCE, and while we are seeing some shift to services in general, we're not seeing a big shift out of home improvement. And we're not seeing fatigue with our customers given repair/remodeler, intent and activity still tracking at the highest levels that we've recorded.

關於利率——理查德可以多談一點利率和住房，但我們還沒有看到這會影響我們的業務和住房的性質——再一次，理查德將更詳細地介紹。然後是疲勞，我們根本看不到。我們會關注 PCE 和 PCE 的變化，雖然我們看到總體上出現了一些向服務的轉變，但我們並沒有看到家庭裝修方面的重大轉變。鑑於維修/改造商、意圖和活動仍在我們記錄的最高水平跟踪，我們並沒有看到我們的客戶感到疲倦。

And then lastly, on transactions, we do always look for a balance of ticket and transactions. But again, with these inflation rates, it's a very unique year in inflation, and ticket is higher than norm for sure. But again, the consumer is hanging in there. And Richard, why don't you touch on the interest rates?

最後，在交易中，我們總是在尋找票證和交易的平衡。但同樣，對於這些通貨膨脹率，這是通貨膨脹非常獨特的一年，而且票價肯定高於正常水平。但同樣，消費者仍然堅持。理查德，你為什麼不談一下利率？

Sure. So just first to start with who our customer is, you need to keep in mind our customers are homeowners. Virtually all sales to our Pro customers are on behalf of a homeowner, and over 90% of our DIY customers are homeowners as well. So let's talk about home improvement demand and what drives it.

當然。因此，首先要從我們的客戶是誰開始，您需要記住我們的客戶是房主。幾乎所有對我們 Pro 客戶的銷售都是代表房主，我們 90% 以上的 DIY 客戶也是房主。因此，讓我們談談家居裝修需求及其驅動因素。

Over our history, we've seen that home price appreciation is the primary driver of home improvement demand. When your home appreciates in value, you view it as a smart investment and you spend more on it. So let's look at what's happened at home prices. We've seen appreciation of over 30% over the last 2 years. In fact, home equity values over the last 2 years have increased by 40% or over $7 billion just in the last 2 years.

在我們的歷史中，我們已經看到房價上漲是家居裝修需求的主要驅動力。當您的房屋升值時，您會將其視為一項明智的投資，並且會在其上花費更多。那麼讓我們看看房價發生了什麼。在過去的兩年裡，我們看到了超過 30% 的升值。事實上，過去 2 年的房屋淨值僅在過去 2 年就增長了 40% 或超過 70 億美元。

So the homeowner has never had a balance sheet that looks like this. They've seen the price appreciation, and they have the means to spend. And in surveys, our customers tell us that their homes have never been more important, and their intent to do projects of all sizes has never been higher. And our Pros say the same thing about their backlogs.

所以房主從來沒有像這樣的資產負債表。他們已經看到了價格的升值，他們有能力花錢。在調查中，我們的客戶告訴我們，他們的家從未像現在這樣重要，他們從事各種規模項目的意願從未如此強烈。我們的專業人士對他們的積壓也說了同樣的話。

So let's talk about interest rates. I think it's important to remember that our addressable market is the 130 million housing units occupied in the U.S. plus probably, call it, 40 million to 50 million more in Canada and Mexico. Of those 130 million housing units, on any given year, only about 4% or 5% are sold. That means that over 95% of our customers are staying in place. They're not shopping for a mortgage. Nearly 40% of those homes are owned outright. Of those who have mortgages, about 93% of those mortgages are fixed rate. So when you think about our addressable market, the vast majority aren't really paying attention to mortgage rates.

所以讓我們談談利率。我認為重要的是要記住，我們的潛在市場是美國擁有的 1.3 億套住房，另外可能還有加拿大和墨西哥的 4000 萬到 5000 萬套。在這 1.3 億套住房中，在任何一年中，僅售出約 4% 或 5%。這意味著我們 95% 以上的客戶都留在原地。他們不是在購買抵押貸款。這些房屋中有近 40% 是完全擁有的。在那些有抵押貸款的人中，大約 93% 的抵押貸款是固定利率的。因此，當您考慮我們的潛在市場時，絕大多數人並沒有真正關注抵押貸款利率。

And what we've -- what's interesting about that is what we've heard, when they do look at moving, they're actually more and more tempted to stay in their low fixed rate mortgage and remodel their home instead. So these low locked-in mortgages are probably a benefit to home improvement.

而我們所聽到的——有趣的是，當他們確實考慮搬家時，他們實際上越來越傾向於留在他們的低固定利率抵押貸款中並改建他們的房屋。因此，這些低鎖定抵押貸款可能對家庭裝修有好處。

That's all very helpful information. And in light of that, I hate to follow up with such a negative question, but out of an abundance of conservatism, I'll ask that. Historically, Home Depot has talked about a 20 basis point margin change for every 1% increase or potentially decrease in its same-store sales. Recognizing that the environment hasn't necessarily been business as usual for quite some time, if we do want to take a conservative expectation on the overall macro, would it be reasonable to think that if comps were to decline 1% that, that would translate to a 20 basis point decline in operating margin? Or has the business just advanced so much over the last few years through the deployment of technology, a greater sophistication of supply chain and other factors that perhaps the deleverage wouldn't be as significant moving forward as it might have been in past?

這都是非常有用的信息。鑑於此，我討厭跟進這樣一個負面的問題，但出於保守主義的考慮，我會問這個問題。從歷史上看，家得寶曾談到其同店銷售額每增加 1% 或可能減少 20 個基點的利潤率變化。認識到環境在很長一段時間內不一定照常營業，如果我們確實想對整體宏觀採取保守的預期，是否可以合理地認為，如果comps下降1%，那將轉化為營業利潤率下降 20 個基點？還是在過去幾年中，通過技術部署、供應鏈更加複雜以及其他因素，該業務取得瞭如此大的進步，以至於去槓桿化可能不會像過去那樣重要？

So Michael, first, we operate an activity-based model with respect to payroll, which is our largest operating cost. And so that naturally decreases as volume decreases. More importantly, we operate with a degree of financial flexibility in our P&L, and that financial flexibility allows us to manage as we think is appropriate in any given environment. So we have room to manage, and we're confident that we can take share in any environment and manage this P&L wisely per the environment.

所以邁克爾，首先，我們在工資單方面採用基於活動的模型，這是我們最大的運營成本。因此，隨著音量的減少，它自然會減少。更重要的是，我們在損益表中具有一定程度的財務靈活性，這種財務靈活性使我們能夠在任何特定環境下進行我們認為合適的管理。所以我們有管理空間，我們相信我們可以在任何環境中分享並根據環境明智地管理這個損益。

With respect to any old benchmarks we may have given, we're beyond that. We have financial flexibility in our model. And again, we would flex to sort of meet the circumstances as we would see them.

關於我們可能給出的任何舊基準，我們已經超越了這一點。我們的模型具有財務靈活性。再一次，我們會靈活地適應我們所看到的情況。

Our next question comes from the line of Simeon Gutman with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Simeon Gutman。

My first question is if we could talk a little more detail around the intent and the backlog that was just mentioned. Curious if you're seeing demand come through because supply was constrained, there's some pent-up projects versus what the backlog or pipeline continues to build.

我的第一個問題是，我們能否更詳細地討論一下剛剛提到的意圖和積壓工作。好奇你是否因為供應受到限製而看到需求出現，與積壓或管道繼續建立的項目相比，有一些被壓抑的項目。

Well, I think you can just start with some survey results. These are public and these are published by the National Association of Home Builders. This is a survey that goes back to 2001. And the survey, if you bear with me, just sort of says, are conditions -- are you optimistic or pessimistic, 50 being kind of the median mark here. So for the 20 years up to 2020, that optimism index never got above a 58. Today, it stands at an 86. So that is the sentiment of the remodeler.

好吧，我認為您可以從一些調查結果開始。這些是公開的，由全國房屋建築商協會出版。這是一項可以追溯到 2001 年的調查。如果你能容忍我的話，調查只是說條件——你是樂觀的還是悲觀的，50 是這裡的中位數。因此，在截至 2020 年的 20 年裡，樂觀指數從未超過 58。今天，它達到了 86。這就是改造者的情緒。

With respect to backlog that is also surveyed, that number over the past 20 years never got above a 64. Today, it stands at an 84. Both of those sentiment numbers are all-time highs.

關於也被調查的積壓，在過去 20 年中，這個數字從未超過 64。今天，它達到了 84。這兩個情緒數字都是歷史新高。

Fair enough. And maybe a follow-up. You mentioned home price appreciation being the most important lever. It looks like the home prices in Canada are starting to turn a bit, and the business seems to be holding up well. Can you talk about if that relationship holds or if the same dynamic, the macro conditions for the customer exists and that's why the business is sort of breaking away from that trend?

很公平。也許還有後續。你提到房價升值是最重要的槓桿。看起來加拿大的房價開始有所回升，而且生意似乎還不錯。您能否談談這種關係是否成立，或者是否存在相同的動態，客戶的宏觀條件是否存在，這就是為什麼企業有點脫離這種趨勢的原因？

Well, yes, our Canadian business. I'm not as up to speed, Simeon, on the Canadian stats that Richard just went through for the U.S. But our Canadian business is in terrific shape. I mean remember, they had much more significant lockdowns last year. Ontario, in particular, our stores were closed in the first quarter, and we had curbside pickup only. So the business is very, very strong. I don't have as much detail on the relationship with home prices.

嗯，是的，我們的加拿大業務。 Simeon，我對理查德剛剛為美國所做的加拿大統計數據並不了解，但我們的加拿大業務狀況非常好。我的意思是，請記住，去年他們進行了更嚴重的封鎖。特別是安大略省，我們的商店在第一季度關閉，我們只在路邊取貨。所以業務非常非常強大。關於與房價的關係，我沒有太多細節。

Well -- but let's just sort of reflect on something. So last Q1, as a company, we reported a 31% comp. Canada was higher than that. So we had a tougher comp in Canada. And this quarter, our comp in Canada was higher than company average.

好吧 - 但讓我們稍微反思一下。所以去年第一季度，作為一家公司，我們報告了 31% 的業績。加拿大比那高。所以我們在加拿大進行了更艱難的比賽。本季度，我們在加拿大的薪酬高於公司平均水平。

Our next question comes from the line of Michael Baker with D.A. Davidson.

我們的下一個問題來自邁克爾貝克與 D.A.戴維森。

Okay. Two. One, simply, can you just quantify, if there's any way to quantify, the weather impact, the late spring? How much of that hurt April? And what should we expect that to contribute into May? And then I'll have a follow-up question.

好的。二。一，簡單地說，如果有任何方法可以量化天氣影響，晚春，你能量化嗎？對四月的傷害有多大？我們應該期望它對五月做出什麼貢獻？然後我會有一個後續問題。

So for the quarter, Michael, we think it was about 1%, the negative impact to comp sales in Q1.

因此，邁克爾，我們認為本季度約為 1%，對第一季度的銷售額產生了負面影響。

And presumably, most of that occurs in April. Is that fair to say?

據推測，其中大部分發生在四月。這樣說公平嗎？

Yes. Because February, it's not spring anywhere and it's our lowest-volume month. So yes, that's April-driven. As Richard said in his notes, March was more of a stimulus impact as well as a weaker spring in the south. And then as you started to move toward northern markets, particularly cold weather in April and for the quarter, 1%.

是的。因為二月，它不是春天的任何地方，它是我們銷量最低的月份。所以是的，那是四月驅動的。正如理查德在他的筆記中所說，3 月更多的是刺激性影響以及南部春季較弱。然後當你開始向北方市場移動時，特別是 4 月和本季度的寒冷天氣，1%。

Yes. We've all felt that cold weather up here in the Northeast, although it's getting better now. I also wanted to follow up with a home price appreciation question. We've all looked at this for many years, and I think most people get that home price appreciation is that important.

是的。我們都感受到了東北部的寒冷天氣，儘管現在情況正在好轉。我還想跟進一個房價升值問題。多年來，我們都對此進行了研究，我認為大多數人都認為房價升值非常重要。

How concerned are you that higher interest rates eventually slow down existing home sales? And we've seen that decline 3 or 4 months in a row, such that the record home price appreciation that we're seeing eventually has to slow down, particularly as the Fed keeps raising rates. And so how big of a concern is that as you think about the rest of the year?

您對更高的利率最終會減緩現有房屋銷售的擔憂程度如何？而且我們已經看到連續 3 或 4 個月下降，以至於我們看到的創紀錄的房價升值最終不得不放緩，尤其是在美聯儲不斷加息的情況下。那麼當你想到今年剩下的時間時，這個問題有多大？

Well, I think we're in a unique position now in recent housing history where we have built a chronic shortage of housing units in the U.S. consistently and steadily for the last 10 years. Some economists assume that, that shortage is a little less than 2 million. You hear numbers as high as 4 million. If you take other estimates of what will likely be built, we're looking at, at least 5 years, if not 7 or 8 years, before we could actually get back to a point of equilibrium. So we believe that supply and demand are going to be the main drivers of support for home price appreciation, and we know that, that chronic undersupply is going to be a condition for quite some time.

好吧，我認為在最近的住房歷史中，我們現在處於一個獨特的位置，在過去的 10 年裡，我們在美國持續穩定地建立了長期的住房短缺。一些經濟學家認為，短缺量略低於 200 萬。你聽到的數字高達 400 萬。如果你對可能建造的東西進行其他估計，我們正在考慮至少 5 年，如果不是 7 或 8 年，我們才能真正回到平衡點。因此，我們認為供需將成為支撐房價升值的主要驅動力，而且我們知道，長期供應不足將在相當長一段時間內成為一種狀況。

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

我們的下一個問題來自摩根大通的 Chris Horvers。

So on the seasonality sort of lens as you think about the year, you mentioned shifting of the bathtub effect in the second quarter. It looks like the guide doesn't assume that this above-average seasonality that you saw in the first quarter despite a late spring holds. You're actually sort of degrading the seasonality going forward.

因此，在考慮今年的季節性因素時，您提到了第二季度浴缸效應的轉變。看起來該指南並未假設您在第一季度看到的這種高於平均水平的季節性儘管存在春末。你實際上在某種程度上降低了未來的季節性。

So I guess my first -- the 2 questions: are you expecting a full bathtub effect into the second quarter? And then why -- is there any reason why you wouldn't think normal seasonality could hold through the back half?

所以我想我的第一個問題——兩個問題：你是否預計第二季度會出現完整的浴缸效應？然後為什麼 - 你有什麼理由認為正常的季節性不能持續到後半部分？

Yes, I would -- we certainly don't think it's going to degrade. I would say posting the results that we posted with a very cold and wet spring certainly exceeded our expectations. And as commented earlier, we haven't generally raised guidance after the spring because we say bathtub effect. And too early into Q2 at the time of this call to make a determination.

是的，我會——我們當然不認為它會退化。我會說發布我們在一個非常寒冷潮濕的春天發布的結果肯定超出了我們的預期。如前所述，我們一般不會在春季之後提出指導，因為我們說的是浴缸效應。在本次電話會議時，進入第二季度還為時過早，無法做出決定。

But the first quarter beat our expectation by such an extent, even with the poor weather, we felt necessary to raise to the 3% for the year. We haven't taken as specific of a view of Q2. I mean we know at least the 1% is going to flow into Q2. We generally get back all of our spring sales in Q2, even tracking back to the 2 or 3 worst early spring since I've been at Home Depot. But it is still just so early, and our largest weeks are ahead of us. So we don't want to get too far over our skis, but we're certainly not anticipating the degradation of that normal bathtub effect.

但第一季度超出了我們的預期，即使天氣不好，我們也覺得有必要將全年的增長率提高到 3%。我們沒有對第二季度的看法做出具體的看法。我的意思是我們知道至少 1% 將流入第二季度。我們通常會在第二季度收回所有春季銷售，甚至可以追溯到我在 Home Depot 以來最糟糕的 2 或 3 個早春。但現在還為時過早，我們最重要的幾週即將到來。所以我們不想讓我們的滑雪板走得太遠，但我們當然不會預料到正常的浴缸效果會下降。

Got it. And then my follow-up question is a number of vendors have indicated more price increases are coming. Can you talk about how much of the ticket increase was inflation? How are you expecting inflation to play out over the year? Like will we just sort of flatten out as we lap through more price as -- over the next year? And do you expect units to turn positive as the year progresses?

知道了。然後我的後續問題是，許多供應商表示即將出現更多價格上漲。你能談談票價上漲中有多少是通貨膨脹嗎？您預計全年通脹將如何發展？就像我們會在明年價格上漲時變得平淡無奇嗎？隨著時間的推移，您是否期望單位轉正？

Right. So I'll start and then Jeff will give a little bit more detail. Yes, as I mentioned earlier, inflation is higher than we had expected to the extent about 2x. The 11-odd percent ticket was -- the vast majority of that was inflation-driven. It is impacting transactions, but as we said, not to the extent that we would have thought. So that's all good.

對。因此，我將開始，然後 Jeff 將提供更多細節。是的，正如我之前提到的，通貨膨脹率比我們預期的高出大約 2 倍。 11% 以上的罰單是——其中絕大多數是通貨膨脹驅動的。它正在影響交易，但正如我們所說，並沒有達到我們想像的程度。所以這一切都很好。

We have taken costs this year, and there is more on the table. Transportation, we've just finished up our ocean contracts. That's a global contract cycle that goes into effect in May. So those are in place for the next 12 months. Those are certainly higher on a contract basis from 2021. So we think inflation doesn't go up necessarily from where we are but that it would hold steady at this, call it, double-digit, low 10-ish percent in our product categories through the balance of the year.

今年我們已經承擔了成本，而且還有更多。運輸，我們剛剛完成了海運合同。這是一個全球合同周期，將於 5 月生效。所以這些都是在接下來的 12 個月裡。從 2021 年開始，按合同計算，這些肯定會更高。因此，我們認為通脹不一定會從我們現在的水平上升，但它會保持穩定，稱之為兩位數，在我們的產品類別中低 10% 左右通過當年的餘額。

In terms of the impact on transactions, we're going to have better transaction results in Q2 just given spring. When you think of the number of transactions in our garden business in the spring time, that's just a tremendous amount of transactions, and we feel very good that we'll get those in Q2.

就對交易的影響而言，我們將在剛剛春季的第二季度獲得更好的交易結果。當您想到春季我們花園業務的交易數量時，這只是一筆巨大的交易，我們感到非常高興，我們將在第二季度獲得這些交易。

And then lumber was -- it's been on a bit of a seesaw and was high on average to last year in Q1, and we saw that in negative transactions in lumber. But now we're down quite a bit, and we're down about 35% in lumber prices year-over-year. So we expect to pick up in Q2, in particular, in lumber activity.

然後木材是 - 它有點搖擺不定，平均而言高於去年第一季度的水平，我們在木材的負面交易中看到了這一點。但現在我們已經下降了很多，我們的木材價格同比下降了約 35%。因此，我們預計第二季度會有所回升，尤其是木材活動。

In terms of the balance of the year and how we think about managing through this, I'll let Jeff provide some more color.

就今年的餘額以及我們如何考慮管理這一點而言，我會讓傑夫提供更多的色彩。

Yes. Thank you, Ted. Look, we are -- to Ted's comments, we are managing through an inflationary environment, about 2x what we expected in the first quarter. And we see some continuation of that. We are working with our supplier partners on managing through this inflationary environment. We've had long-standing relationships with many of our suppliers, and it's a partnership to understand the ongoing complexities of the inflation we're seeing.

是的。謝謝你，特德。看，我們 - 根據 Ted 的評論，我們正在應對通脹環境，大約是我們第一季度預期的 2 倍。我們看到了這種情況的一些延續。我們正在與我們的供應商合作夥伴合作，共同應對這種通脹環境。我們與許多供應商有著長期的合作關係，這是一種了解我們所看到的通貨膨脹的持續複雜性的合作夥伴關係。

What we are doing is we are still the customers' advocate for value in our business. And if you look at the value that we're offering across the spring categories, across the entire business, it is exceptional. If you look at the project business, we are pleased with what we're seeing in project-related demand, inclusive of some of the inflation that we have experienced across the organization.

我們正在做的是，我們仍然是客戶對我們業務價值的倡導者。而且，如果您查看我們在整個業務中為彈簧類別提供的價值，那將是非凡的。如果您查看項目業務，我們對我們在項目相關需求中看到的情況感到滿意，包括我們在整個組織中經歷的一些通貨膨脹。

And again, as the customers' advocate for value, we have the tools and the capabilities to manage our broader portfolio strategy and manage the inflationary environment. So very pleased with the partnership across the business to manage this inflationary environment.

同樣，作為客戶的價值倡導者，我們擁有管理我們更廣泛的投資組合戰略和管理通脹環境的工具和能力。非常高興與整個企業的合作夥伴關係來管理這種通貨膨脹環境。

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

我們的下一個問題來自Scot Ciccarelli 和Truist 的台詞。

So with the One Home Depot supply chain strategy, you guys are effectively moving into some new markets or certainly expanding your presence in certain verticals and expanding your TAM. Is there any way to potentially size the impact that some of these new markets are having on your results, be it -- whether it's MRO, large Pros, et cetera, maybe places where you weren't as competitive just a couple of years ago?

因此，通過 One Home Depot 供應鏈戰略，你們正在有效地進入一些新市場，或者肯定會擴大您在某些垂直領域的影響力並擴大您的 TAM。有什麼方法可以衡量這些新市場中的一些對您的結果產生的影響，無論是 MRO、大型專業人士等，也許是幾年前您還沒有競爭力的地方?

Yes, generally speaking, we are excited about what we're building out in terms of capability and our ability to go after the repair and remodeler planned purchase occasions that we haven't necessarily been able to in the past. But when you start thinking about contribution to results, we're building an ecosystem here for the Pro. It's not just about fulfillment and delivery. It's about an online experience that we think is second to none that's seen incredible traction over the very short term. We have a relationship with our Pros in the store that we think is second to none. And Hector, I'll turn it to you for a second with some detail.

是的，一般來說，我們對我們在能力方面的建設以及我們在過去不一定能夠完成的維修和改造計劃購買場合的能力方面感到興奮。但是，當您開始考慮對結果的貢獻時，我們正在為 Pro 建立一個生態系統。這不僅僅是關於履行和交付。這是一種我們認為首屈一指的在線體驗，它在極短的時間內獲得了令人難以置信的吸引力。我們與我們認為是首屈一指的商店中的專業人士建立了關係。還有赫克托，我會告訴你一些細節。

But again, with respect to results, we're quite pleased that we grew by $40 billion over the last 2 years. We were really pleased that we were able to comp the comp and enter into a second quarter so far with 2 strong weeks. And I think over the coming years, you're going to see every element of our model add up to our ability to take market share in any environment.

但同樣，就結果而言，我們很高興在過去兩年中增長了 400 億美元。我們真的很高興我們能夠完成比賽並以兩週的強勁表現進入第二季度。我認為在接下來的幾年裡，你會看到我們模型的每一個元素都增加了我們在任何環境中佔據市場份額的能力。

But Hector, maybe you'll talk a little bit about the Pro.

但是 Hector，也許你會談談 Pro。

Yes. Richard and Scot, we are building capabilities to attract more of the Pro planned purchase. Every one of those Pro planned purchase help us pull a lot of the other occasions out of our stores. So when Richard talks about the ecosystem, it is about enabling capabilities across all channels to remove friction from the transactions and experiences from our Pros in every instance. We are super encouraged from the early signs that we're seeing on the commercialization of the supply chain investments that we're making. And the team is super encouraged and involved and engaged.

是的。 Richard 和 Scot，我們正在建設能力以吸引更多 Pro 計劃購買。這些 Pro 計劃購買的每一項都幫助我們將許多其他場合從我們的商店中拉出來。因此，當理查德談到生態系統時，它是關於在所有渠道中啟用功能，以消除我們的專業人士在每種情況下的交易和體驗中的摩擦。看到我們正在進行的供應鏈投資商業化的早期跡象，我們感到非常鼓舞。團隊受到了極大的鼓勵、參與和參與。

And Scot, I would add on the MRO piece in the TAM, we couldn't be happier with the combination of our legacy Interline HD Pro business with Home Depot Supply. So not only did we combine the #1 and 2 players in that industry, but the Home Depot Supply had additional verticals that our business didn't participate in.

還有 Scot，我會在 TAM 中添加 MRO 部分，我們對傳統的 Interline HD Pro 業務與 Home Depot Supply 的結合感到非常高興。因此，我們不僅合併了該行業的第一和第二參與者，而且家得寶供應還有我們的業務沒有參與的其他垂直領域。

So we think the TAM in that MRO market essentially doubled to about $100 billion, and we still sit with less than 10% share. The capabilities that we're building, combining those 2 businesses, we're well on our way of combining sales forces, getting customers oriented to one legacy customer sales force or the other. We're beginning to integrate the supply chains.

因此，我們認為該 MRO 市場的 TAM 基本上翻了一番，達到約 1000 億美元，而我們的份額仍然不到 10%。我們正在建立的能力，結合這兩項業務，我們正在整合銷售力量，讓客戶面向一個傳統的客戶銷售隊伍或另一個。我們開始整合供應鏈。

What we're able to do now in MRO for multifamily housing is incredibly robust. And then new verticals, hospitality in particular, as travel has come back, in the hospitality, occupancy rates are going up. That business is just booming. So we love our position in MRO in the verticals we're in. And Shane O'Kelly and his team are just doing a great job with that business.

我們現在能夠在 MRO 中為多戶住宅做的事情非常強大。然後是新的垂直領域，尤其是酒店業，隨著旅遊業的回歸，酒店業的入住率正在上升。那個生意剛剛好。所以我們喜歡我們在垂直領域的 MRO 中的地位。Shane O'Kelly 和他的團隊在這項業務上做得很好。

I think just to the TAM point, we talk about the 130 million households in the U.S., about 30 million of those households actually occupy multifamily dwellings. And so that HD Supply acquisition opened up that TAM for us and is a unique attribute of The Home Depot.

我認為就 TAM 而言，我們談論的是美國的 1.3 億家庭，其中大約 3000 萬家庭實際上居住著多戶住宅。因此，收購 HD Supply 為我們打開了 TAM 的大門，並且是 The Home Depot 的獨特屬性。

Our next question comes from the line of Karen Short with Barclays.

我們的下一個問題來自巴克萊銀行的 Karen Short。

Wondering if you could just give a little bit more color on puts and takes for 2Q to 4Q with respect to gross margin and SG&A., I guess, in the context of assuming inflation remains at the current level. And then also a bit more context on how you think traffic and ticket will shake out for the full year. And then I have one other question.

想知道您是否可以在第二季度至第四季度的毛利率和 SG&A 方面提供更多色彩。我猜，在假設通脹保持在當前水平的情況下。然後還有更多關於您認為全年交通和票價將如何變化的背景信息。然後我還有另一個問題。

Sure. So for the year, we believe that gross margin, if you just sort of stay mix neutral, gross margin will see slight pressure from the investments we're making in One Supply Chain. Those have been planned all year, and we've expected that for a while.

當然。因此，對於這一年，我們認為毛利率，如果你只是保持中性，毛利率將受到我們在一個供應鏈中進行的投資的輕微壓力。這些已經計劃了一整年，我們已經預料到了一段時間。

With respect to operating expense leverage, as we have taken our sales guidance up, we've also raised our operating margin guidance. That reflects the operating expense leverage we expect to generate on those incremental sales.

關於運營費用槓桿，隨著我們提高了銷售指導，我們也提高了運營利潤率指導。這反映了我們期望在這些增量銷售上產生的運營費用槓桿。

With respect to ticket and transaction, we assume that comps in the back half are positive. If inflation persists for the year, persist at current levels, we expect ticket could be in the range of 10% to 12% for the year, offset by transactions to net out to a 3% comp for the year.

關於門票和交易，我們假設後半部分的補償是積極的。如果今年通貨膨脹持續存在，並保持在當前水平，我們預計今年的票價可能在 10% 至 12% 的範圍內，但被交易抵消，今年的淨收益為 3%。

So I guess the question on that, my follow-up would be -- I mean investors are focused on your 2 -- 1-year, 2-year, 3-year traffic trends. And I appreciate there's a labor efficiency component with negative traffic to some extent. But at what point does the traffic on a multiyear basis maybe start to concern you?

所以我想這個問題，我的後續行動將是——我的意思是投資者關注你的 2 - 1 年、2 年、3 年的流量趨勢。我很欣賞在某種程度上存在負面流量的勞動效率部分。但是，多年的流量可能會在什麼時候開始讓您擔心？

Well, this is definitely a unique year for sure in our ticket and transaction dynamic. As I stated earlier, we do look for a balance between ticket and transaction. And we usually plan that growth will come from more or less an equal mix of ticket and transaction.

嗯，在我們的機票和交易動態中，這絕對是獨一無二的一年。正如我之前所說，我們確實在票證和交易之間尋找平衡。我們通常計劃增長將來自票證和交易的或多或少的平等組合。

With the -- 2 fundamental things going on, Karen. One we're -- to your point on 2- and 3-year stacks, we're comping off the $40 billion of sales growth that Richard commented on and in Q1, at a 31% comp, the highest comp in the longest time at Home Depot. And to comp that, we didn't plan on, to comp that is a huge positive.

隨著 - 2 件基本的事情的發生，凱倫。一個我們 - 就你在 2 年和 3 年堆棧上的觀點而言，我們正在彌補 Richard 評論的 400 億美元的銷售額增長，並且在第一季度，以 31% 的比例，是最長的時間裡的最高比例在家得寶。為了補償它，我們沒有計劃，補償這是一個巨大的積極因素。

Now the balance isn't the norm for sure, again, a unique year with this level of inflation, 10%, 10-odd percent. But the customer's engagement is much more resilient than we would have thought. That's why we hit -- we knew the inflation going into the year, and we knew the potential impact to transactions.

現在，這種平衡肯定不是常態，再一次，這是一個獨特的年份，通貨膨脹率達到了 10%，10 多個百分點。但客戶的參與比我們想像的更有彈性。這就是我們打擊的原因——我們知道今年的通貨膨脹，我們知道對交易的潛在影響。

The level of activity in our space, and we've talked about the backlog and the intents, is really helping offset that and the consumer's staying more engaged. Now as we lap through these extraordinary comps from the $40 billion of growth and certainly hopefully lap through the inflation, we would get back to the balance that we would certainly prefer.

我們空間中的活動水平，我們已經討論了積壓和意圖，確實有助於抵消這一點，並讓消費者保持更多的參與度。現在，當我們從 400 億美元的增長中經歷這些非凡的組合，當然希望經歷通貨膨脹時，我們會回到我們當然希望的平衡。

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。

Ted, following up on your comment that Q1 beat your expectations, could you talk about the extent that was Pro-driven versus DIY or other pockets of your business? And then as you think about the second half of this year, to what extent do you incorporate stable Pro trends? And could they offset a more variable DIY if the macro or inflationary environment softens from here?

泰德，在您評論第一季度超出您的預期之後，您能否談談專業驅動與 DIY 或您的其他業務領域的程度？然後當您考慮今年下半年時，您在多大程度上融入了穩定的 Pro 趨勢？如果宏觀或通脹環境從這裡開始減弱，他們能否抵消更多變數的 DIY？

Sure. I would start by saying in -- even our Pro traffic is consumer-driven, right. I mean all projects fundamentally on the home -- we certainly have trades in our business, buying product for servicing other spaces than the home, but the vast majority of our activity is supportive of the home. And whether it's a consumer buying themselves or a Pro, the Pro is buying ultimately for a consumer's home.

當然。我首先要說——即使是我們的 Pro 流量也是由消費者驅動的，對吧。我的意思是所有項目基本上都是關於家庭的——我們當然在我們的業務中有交易，購買產品來服務於家庭以外的其他空間，但我們的絕大多數活動都是支持家庭的。無論是消費者自己購買還是 Pro，Pro 最終都是為消費者的家而購買。

So with that being said, though, yes, Pro is stronger than we would have thought. I mean that's where the beat came from. Our Pro is incredibly strong. And we're so optimistic of, as Hector outlined, the ecosystem we're building. We just continue to gain momentum with that Pro customer and certainly offset more of an as-expected consumer. When you think of spring as a consumer business in terms of garden, we don't have large penetrations in Pro in our garden business, so that is consumer-driven.

因此，儘管如此，是的，Pro 比我們想像的要強大。我的意思是這就是節拍的來源。我們的 Pro 非常強大。正如赫克託所說，我們對我們正在建立的生態系統非常樂觀。我們只是繼續在該 Pro 客戶中獲得動力，並且肯定會抵消更多的預期消費者。當您將 spring 視為花園方面的消費者業務時，我們在花園業務中的 Pro 滲透率並不高，因此這是消費者驅動的。

And then the stimulus is really impacting the consumer. I mean we all have heard plenty of anecdotes about consumers getting their check last March and truly going to buy a new power tool or a new lawnmower. So that was what was unique about the consumer.

然後刺激措施真正影響了消費者。我的意思是，我們都聽說過很多關於消費者去年三月拿到支票並真正打算購買新電動工具或新割草機的軼事。這就是消費者的獨特之處。

In terms of the trend over time, not just the intent that Richard talked about and the ecosystem that Hector talked about, but what we love with our Pro customer and the confidence we continue to build in what's happening is when we look at our comps with our Pro customers, we get a stronger progression of comps with the Pro from what we call an unplanned purchase in store, which is still a strong comp, but sequentially going up to higher and higher comps as we get to a planned delivered purchase. So think of that Pro who's just coming to the store to do cash-and-carry in an unplanned purchase versus one who we know is staging out a project and getting that project delivered. The sequence of comps of that engagement gets higher and higher and higher with the highest being planned delivered.

就隨著時間推移的趨勢而言，不僅僅是 Richard 談到的意圖和 Hector 談到的生態系統，還有我們對 Pro 客戶的喜愛以及我們對正在發生的事情繼續建立的信心是當我們查看我們的比賽時我們的 Pro 客戶，我們從我們所說的店內計劃外購買中獲得了更強勁的 Pro 贈品進展，這仍然是一個強大的贈品，但隨著我們到達計劃交付的購買，順序地上升到越來越高的贈品。因此，想想那些剛剛來商店進行計劃外購買的現金和攜帶的專業人士，而不是我們知道正在分階段進行項目並交付該項目的專業人士。該參與的組合序列越來越高，計劃交付的最高。

Also, when you think about the engagement with our loyalty models in our engagement with our sales forces, again, while still positive, our Pros who are not in our loyalty program, buying a cash-and-carry unplanned purchase, while positive, that is the lowest comp. Going all the way through to a Pro who's in the loyalty program, who's purchasing with us on an interconnected basis and is managed by an outside sales contact, those, by far, have the highest comp within the Pro.

此外，當您考慮與我們的忠誠度模型在我們與銷售人員的接觸中的參與時，同樣，雖然仍然是積極的，但我們不在我們忠誠度計劃中的專業人士購買現金和攜帶計劃外的購買，雖然是積極的，但是最低的補償。一直到參與忠誠度計劃的 Pro，在相互關聯的基礎上與我們一起購買並由外部銷售聯繫人管理，到目前為止，這些人在 Pro 中擁有最高的薪酬。

So we just love this ecosystem that we're building the engagement that we're starting to see, the sequential strength of comps as these Pros get more engaged with us. And yes, we think those Pro trends are going to keep powering the business.

所以我們只是喜歡這個生態系統，我們正在建立我們開始看到的參與度，隨著這些專業人士越來越多地與我們互動，比賽的連續強度。是的，我們認為這些 Pro 趨勢將繼續為業務提供動力。

That's helpful. And then for Richard, with your inventory growth outpacing sales growth for the past 4 quarters by a pretty wide margin, how do you think about your position here in terms of having enough inventory or too much inventory? And with the slower start to spring that you called out, how should we think about the potential impact of higher promo on the gross margin line?

這很有幫助。然後對於 Richard，在過去 4 個季度，您的庫存增長遠遠超過了銷售增長，您如何看待您在庫存充足或庫存過多方面的地位？隨著您所說的春季開始較慢，我們應該如何考慮更高促銷對毛利率線的潛在影響？

So first of all, we're -- we took steps, as Ted had said earlier in the call, to invest in improving our in-stock position. And while we're not -- we're quite where we were pre-pandemic, we are the healthiest we've been in the last few years.

因此，首先，正如泰德早些時候在電話會議中所說，我們採取了措施來改善我們的庫存狀況。雖然我們不是——我們處於大流行前的狀態，但我們是過去幾年中最健康的。

So if you think about sort of that pull-forward of inventory, making sure that we landed inventory early. Because in this business, customer service starts with being in-stock. And you also consider the impact of a late spring. That really makes up about half of the increase in inventory, and the other half is simply the impact of inflation.

因此，如果您考慮某種庫存前移，請確保我們及早登陸庫存。因為在這項業務中，客戶服務從有庫存開始。您還考慮了晚春的影響。這確實佔庫存增加的一半左右，而另一半僅僅是通貨膨脹的影響。

So as we think about this through the year, obviously, we're -- as spring kicks in, we'll see that inventory begin to reflect the seasonality. And we work hard. Our merchants and our supply chain team and our vendor partners work hard to make sure that we have an advantaged position.

因此，當我們全年考慮這一點時，顯然，隨著春天的到來，我們將看到庫存開始反映季節性。我們努力工作。我們的商家、我們的供應鏈團隊和我們的供應商合作夥伴努力確保我們擁有優勢地位。

Just a comment on the promotional activity. We did shift an appliance event into May, driven by the Easter following mid-April. As I commented, thrilled with the performance of our appliance business as we finish the event in May. We -- at this point, we don't focus on promotions at all. Our focus is providing everyday value for our customers. That has been multiple years of progression, and we're thrilled with the value we're providing every single day in terms of being priced right every day, driving great innovation and driving a great experience for our customers.

只是對促銷活動的評論。在 4 月中旬之後的複活節的推動下，我們確實將一個電器活動轉移到了 5 月。正如我所評論的，當我們在 5 月完成活動時，我們對家電業務的表現感到非常興奮。我們——在這一點上，我們根本不關注促銷活動。我們的重點是為客戶提供日常價值。這是多年的進步，我們對我們每天提供的價值感到興奮，因為我們每天都在定價，推動偉大的創新並為我們的客戶帶來偉大的體驗。

Our next question comes from the line of Steven Zaccone with Citi.

我們的下一個問題來自花旗銀行的 Steven Zaccone。

Maybe a follow-up about consumer spending towards the home since it's been discussed in detail here. Clearly, you're seeing strong demand from ongoing projects. I think investors are trying to grapple with the fact that home spending may slow at some point because of the macro, but the home also has increased importance post pandemic. What's your take on that debate? Do you think that makes home improvement spending more recession-resistant than it's been in the past?

也許是關於消費者對家庭支出的後續行動，因為這裡已經詳細討論過。顯然，您看到正在進行的項目的強勁需求。我認為投資者正在努力應對這樣一個事實，即由於宏觀經濟，家庭支出可能會在某個時候放緩，但在大流行之後，家庭的重要性也增加了。你對這場辯論有什麼看法？您是否認為這會使家居裝修支出比過去更能抵禦經濟衰退？

Well, we really just have to look at the health of our customer today, which is strong. And we also have to listen to our customers, those same surveys or the Pro survey. There's also one with respect to consumer intent to do projects. Homeowner intent to do projects of small, medium and large sizes has never been higher than right now.

好吧，我們今天真的只需要看看我們客戶的健康狀況，這很強大。而且我們還必須傾聽我們的客戶、那些相同的調查或專業調查。還有一個關於消費者做項目的意圖。房主從事小型、中型和大型項目的意願從未像現在這樣高。

Got it. Very helpful. Then just shifting, could you talk about capital allocation priorities if the macro environment were to get a bit choppier? How do you balance capital investment, share buyback and the potential for M&A? And I guess, specific to M&A, it's been 18 months since you did the HD Supply acquisition. Would you be open to additional M&A in the next few years to reach your higher TAM? How best to think about the criteria?

知道了。很有幫助。然後只是轉移，如果宏觀環境變得有點波動，你能談談資本配置的優先事項嗎？您如何平衡資本投資、股票回購和併購潛力？而且我想，具體到併購，你收購 HD Supply 已經 18 個月了。您是否願意在未來幾年進行更多併購以達到更高的 TAM？如何最好地考慮標準？

Well, with respect to capital allocation, we generate strong free cash flow and so have returned significant capital to shareholders over the last decade-plus. With respect to CapEx and investment in the business, we take a long-term view. We are always going to invest ahead of the customer. We are always looking years ahead to make sure that we build the best customer experience in home improvement. And so that would likely be our stance. But we always have to take circumstances into consideration, and we do that in any event.

好吧，在資本配置方面，我們產生了強勁的自由現金流，因此在過去十多年裡向股東返還了大量資本。關於資本支出和業務投資，我們著眼長遠。我們總是會先於客戶進行投資。我們一直在展望未來，以確保我們在家居裝修方面建立最佳的客戶體驗。所以這很可能是我們的立場。但我們總是必須考慮情況，無論如何我們都會這樣做。

And on M&A, we've always maintained an active, strategic business development group, and they're always looking in the marketplace for companies really regardless of size, generally on the smaller size, that can add capabilities. So you've heard us talk about some various data shops we've acquired. Certainly, the larger acquisition of supply helped us into a market space. And that is an ongoing review that we're active looking at capabilities in market spaces that an acquisition can help accelerate our development in that space.

在併購方面，我們一直保持著一個活躍的戰略業務發展團隊，他們總是在市場上尋找能夠增加能力的公司，無論規模大小，通常規模較小。所以你聽我們談論我們已經收購的一些不同的數據商店。當然，更大的供應收購幫助我們進入了市場空間。這是一項正在進行的審查，我們正在積極研究市場空間的能力，收購可以幫助加速我們在該領域的發展。

Our final question will come from Chuck Grom with Gordon Haskett.

我們的最後一個問題將來自 Chuck Grom 和 Gordon Haskett。

Great results and congrats. On the inflation front, curious if you're seeing any unit demand destruction as you've been taking retails higher. Or is there any signs of trade-down in the basket? Walmart called that out this morning, and I know your basket is obviously very different than theirs. Just wondering if you're seeing anything on that front.

偉大的結果和祝賀。在通脹方面，好奇你是否看到任何單位需求破壞，因為你一直在提高零售價。或者籃子裡是否有任何降價的跡象？沃爾瑪今天早上宣布了這一點，我知道你的籃子顯然與他們的非常不同。只是想知道你是否在這方面看到任何東西。

Chuck, we're seeing no trade-down in the environment, and we're thrilled with the innovation that we're offering to our customers. Ted commented and as I commented earlier, we're seeing trade up for innovation. We're seeing a lot of activity around our consumers looking to improve their homes, to adopt new innovations. I talked about the electrified lawnmower business and the opportunity there. That's just one example of many examples of trade-up. And then on the project business, we're seeing great demand, as we commented earlier on the project business, both for the Pro and for the consumer.

Chuck，我們在環境中沒有看到任何折衷，我們對我們為客戶提供的創新感到興奮。 Ted 評論說，正如我之前評論的那樣，我們看到了創新的交易。我們看到很多消費者都在尋求改善他們的家，採用新的創新。我談到了電動割草機業務和那裡的機會。這只是許多換購的例子之一。然後在項目業務方面，我們看到了巨大的需求，正如我們之前對項目業務所評論的那樣，無論是專業人士還是消費者。

Okay. That's great to hear. And then one for Richard. Can you flesh out the expectation for comps in the front half to be better than the second half? If I look at your compares on a 3-year geo stack, they're pretty consistent. Just wondering if you're being conservative there or I guess the expectation for the trend to slow a little bit in the last 6 months of the year.

好的。聽到這個消息我很高興。然後給理查德一個。你能充實對前半場比賽比下半場更好的期望嗎？如果我在 3 年的地理堆棧上查看您的比較，它們非常一致。只是想知道你是否保守，或者我猜預計今年最後 6 個月的趨勢會稍微放緩。

It's early. What I would say is we do expect Q2 to be the highest-comp quarter of the year. And expect the first half to be higher than the second half, but we do expect positive comps through the year.

現在還早。我要說的是，我們確實預計第二季度將是今年收入最高的季度。並且預計上半年將高於下半年，但我們確實預計全年會有積極的回報。

In the back half. Okay. Great.

在後半部分。好的。偉大的。

Ms. Janci, I would now like to turn the floor back over to you for closing comments.

Janci 女士，我現在想把發言權轉回給你，以完成最後的評論。

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

謝謝你，克里斯汀，謝謝大家今天加入我們。我們期待在 8 月份的第二季度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。