柯爾百貨 (KSS) 2023 Q1 法說會逐字稿

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Kohl's Corporation First Quarter 2023 Earnings Conference Call. (Operator Instructions)

你好，謝謝你的支持。我叫 Regina，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加科爾公司 2023 年第一季度收益電話會議。 （操作員說明）

I'd now like to turn the conference over to Mark Rupe, Senior Vice President, Investor Relations. Please go ahead.

我現在想將會議轉交給投資者關係高級副總裁 Mark Rupe。請繼續。

Thank you. Certain statements made on this call, including projected financial results, and the company's future initiatives are forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause Kohl's actual results to differ materially from those projected in such forward-looking statements. Such risks and uncertainties include, but are not limited to, those that are described in Item 1A in Kohl's most recent annual report on Form 10-K and as may be supplemented from time to time in Kohl's other filings with the SEC, all of which are expressly incorporated herein by reference.

謝謝。在此次電話會議上做出的某些陳述，包括預計的財務結果和公司未來的舉措，都是前瞻性陳述。此類陳述受某些風險和不確定因素的影響，這可能導致 Kohl's 的實際結果與此類前瞻性陳述中預測的結果存在重大差異。此類風險和不確定性包括但不限於 Kohl 最近的 10-K 表格年度報告第 1A 項中描述的風險和不確定性，以及可能不時在 Kohl 向美國證券交易委員會提交的其他文件中補充的風險和不確定性，所有這些通過引用明確併入本文。

Forward-looking statements relate to the date initially made, and Kohl's undertakes no obligation to update them. In addition, during this call, we may make reference to non-GAAP financial measures. Reconciliation of non-GAAP financial measures can be found in the investor presentation filed as an exhibit to our Form 8-K filed with the SEC and is available on the company's Investor Relations website. Please note that this call will be recorded. However, replays of this call will not be updated.

前瞻性陳述與最初作出的日期有關，Kohl's 不承擔更新這些陳述的義務。此外，在此次電話會議中，我們可能會參考非 GAAP 財務指標。非 GAAP 財務措施的對賬可以在作為我們向美國證券交易委員會提交的 8-K 表格的附件提交的投資者介紹中找到，並且可以在公司的投資者關係網站上找到。請注意，此通話將被錄音。但是，不會更新此通話的重播。

So if you're listening to a replay of this call, it is possible that the information discussed is no longer current, and Kohl's undertakes no obligation to update such information.

因此，如果您正在收聽此電話的重播，所討論的信息可能不再是最新的，Kohl's 不承擔更新此類信息的義務。

With me this morning are Tom Kingsbury, our CEO; and Jill Timm, our Chief Financial Officer.

今天早上和我在一起的是我們的首席執行官湯姆·金斯伯里 (Tom Kingsbury)；和我們的首席財務官 Jill Timm。

I will now turn the call over to Tom.

我現在將電話轉給湯姆。

Thank you, Mark, and thank you all for joining us this morning. As we shared on our last earnings call in March, we have a significant opportunity to improve Kohl's business over the long term. More specifically, we shared the priorities and actions we had underway to drive sales and earnings performance.

謝謝你，馬克，感謝大家今天早上加入我們。正如我們在 3 月份的上一次財報電話會議上分享的那樣，我們有一個重要的機會來長期改善 Kohl 的業務。更具體地說，我們分享了我們為推動銷售和盈利業績而採取的優先事項和行動。

I am pleased to report that the first quarter was a first step in the right direction. Our overall first quarter results were in line with our expectations, and we made progress against each of our key priorities for 2023 despite continuing to operate in a challenging macroeconomic backdrop.

我很高興地報告，第一季度是朝著正確方向邁出的第一步。我們第一季度的總體業績符合我們的預期，儘管我們繼續在充滿挑戰的宏觀經濟背景下運營，但我們在 2023 年的每一個關鍵優先事項上都取得了進展。

We are refining our strategy, continuing to enhance our merchandising processes and elevate our focus on the customer. While it will take time for the full impact of our efforts to be realized, I am happy with how the entire Kohl's team is driving against these priorities with a clear focus and strong determination. Our objective is to show incremental improvement as we move through 2023, and we set ourselves up to accomplish this with our first quarter performance. As it relates to our outlook for the balance of the year, it is unchanged from our prior view. We are affirming our full year guidance. As I said, our first quarter results were in line with our expectation, and as Jill will discuss in more detail, our view on the second quarter is consistent with our plans entering the year.

我們正在完善我們的戰略，繼續加強我們的銷售流程，並提高我們對客戶的關注度。雖然我們努力的全面影響需要時間才能實現，但我對整個 Kohl's 團隊如何以明確的重點和堅定的決心推動這些優先事項感到高興。我們的目標是在 2023 年實現漸進式改進，我們準備通過第一季度的業績來實現這一目標。由於它與我們對今年餘下時間的展望有關，因此與我們先前的看法沒有變化。我們確認我們的全年指導。正如我所說，我們第一季度的業績符合我們的預期，正如吉爾將更詳細地討論的那樣，我們對第二季度的看法與我們進入今年的計劃一致。

Our work in 2023 will position us to achieve our longer-term goals. And while we have more work to do, I remain confident in our ability to change the trajectory of our business as we move forward.

我們 2023 年的工作將使我們能夠實現我們的長期目標。雖然我們還有更多工作要做，但我仍然相信我們有能力在前進的過程中改變我們的業務軌跡。

Turning to the highlights of the first quarter. Net sales decreased 3.3%, and comparable sales were down 4.3%. February was the strongest performance. March was below our expectations, but April was in line.

談到第一季度的亮點。淨銷售額下降 3.3%，可比銷售額下降 4.3%。二月是最強勁的表現。 3 月低於我們的預期，但 4 月符合預期。

Our stores business, which is a key focus of ours, achieved productivity gains in the quarter, delivering positive low single digits comparable sales growth. An increase in store traffic and higher units per transaction more than offset a lower average ticket driven by our clearance actions. Sephora at Kohl's continued to outperform our expectations, driving the total beauty sales increase of 150% year-over-year. We achieved mid-teens comparable beauty sales growth in the 204 shops opened in 2021. and the sales trends in the 400 shops opened in 2022 continue to exceed our plan. And our active business was healthier in the period, outperforming the company average with a positive growth in apparel and continued success in outdoor.

我們的商店業務是我們的重點業務，在本季度實現了生產率提高，實現了低個位數的可比銷售額正增長。商店客流量的增加和每筆交易的單位數量增加，足以抵消我們清關行動導致的平均票價下降。 Kohl's 的絲芙蘭繼續超出我們的預期，推動美容總銷售額同比增長 150%。我們在 2021 年開設的 204 家商店中實現了十幾歲的可比美容銷售額增長。2022 年開設的 400 家商店的銷售趨勢繼續超出我們的計劃。在此期間，我們的活躍業務更加健康，服裝業務實現正增長，戶外業務持續取得成功，表現優於公司平均水平。

Conversely, we continue to see softness in the home category, an area we are highly focused on and one that remains a substantial long-term opportunity. Beyond the top line, we're able to drive margin expansion, and managed inventory down 6% in the quarter.

相反，我們繼續看到家居類別的疲軟，這是我們高度關注的領域，並且仍然是一個重要的長期機會。除了收入之外，我們還能夠推動利潤率擴張，並在本季度管理庫存下降 6%。

I would now like to provide an update on the 4 overarching priorities we are focused on in 2023. They are enhancing the customer experience, accelerating and simplifying our value strategies, managing inventory and expenses with discipline and strengthening the balance sheet. We made progress against each of these priorities in the first quarter, and I am pleased with the initial traction we are seeing.

我現在想更新我們在 2023 年關注的 4 個首要優先事項。它們正在增強客戶體驗、加速和簡化我們的價值戰略、嚴格管理庫存和費用以及加強資產負債表。我們在第一季度在這些優先事項中的每一個方面都取得了進展，我對我們看到的初步牽引力感到滿意。

Let me share some details, starting first with how we are enhancing the customer experience in stores and online through our product and merchandising initiatives. Our long-term strategic partnership with Sephora is delivering a prestige beauty experience at Kohl's. It is a great example of how we are enhancing the customer experience. Sephora at Kohl's meets the needs of our customers with a great assortment of brands and products they are looking for. The partnership is delivering on what we set out to achieve over the long term. That is capitalizing on a significant growth opportunity in the beauty industry by leveraging each company's strengths to grow our collective customer bases.

讓我分享一些細節，首先是我們如何通過我們的產品和營銷計劃來增強商店和網上的客戶體驗。我們與絲芙蘭的長期戰略合作夥伴關係正在為 Kohl's 提供卓越的美容體驗。這是我們如何提升客戶體驗的一個很好的例子。 Kohl's 的絲芙蘭通過他們正在尋找的各種品牌和產品來滿足我們客戶的需求。這種夥伴關係正在實現我們設定的長期目標。這是通過利用每家公司的優勢來擴大我們的集體客戶群，從而利用美容行業的重大增長機會。

As I highlighted a moment ago, our total beauty sales were up 150% in the first quarter, and we continue to gain market share. We are bringing in new customers, and they are shopping at more than twice the frequency of our average customer. Our investments to support this partnership are yielding the outcomes we intended. We are in the process of further expanding the Sephora at Kohl's footprint, reaching more than 900 of our stores by the end of 2023. This is quite an impressive accomplishment, and is a testament to how well the Sephora and Kohl's teams work together.

正如我剛才強調的那樣，第一季度我們的美容產品總銷售額增長了 150%，並且我們繼續獲得市場份額。我們正在引進新客戶，他們的購物頻率是我們普通客戶的兩倍多。我們支持這種夥伴關係的投資正在產生我們預期的結果。我們正在進一步擴大 Sephora at Kohl's 的足跡，到 2023 年底將達到 900 多家門店。這是一項了不起的成就，也證明了 Sephora 和 Kohl's 的團隊合作得很好。

In 2023, we will open 250, 2,500 square foot Sephora shops, of which 200 will open in the second quarter with the remaining 50 in early Q3. This concentrated opening schedule will lead to elevated investments in Q2, as Jill will discuss. In addition, we have developed a 750 square foot Sephora shop. We opened 5 of these smaller shops a few months ago, and they have driven solid beauty sales exceeding our expectations. We'll open another 45 later this fall, reaching 50 by the end of 2023, and will be rolled out to the remainder of the chain by 2025. It is worth noting that from an expense and capital perspective, the smaller Sephora shops will add some incremental capital spend and expense in Q3 relative to last year, both of which are embedded in our guidance.

2023 年，我們將開設 250 家、2,500 平方英尺的絲芙蘭門店，其中 200 家將在第二季度開業，其餘 50 家將在第三季度初開業。正如吉爾將討論的那樣，這種集中的開業時間表將導致第二季度的投資增加。此外，我們還開發了一個750平方英尺的絲芙蘭店。幾個月前，我們開了 5 家這樣的小店，它們推動了超出我們預期的穩健美容銷售。我們將在今年秋天晚些時候再開 45 家，到 2023 年底達到 50 家，到 2025 年將推廣到連鎖店的其餘部分。值得注意的是，從費用和資本的角度來看，較小的絲芙蘭商店將增加第三季度相對於去年增加了一些資本支出和費用，這兩者都包含在我們的指導中。

To summarize, we will end the year with our Sephora presence in more than 900 of our stores, including more than 850 of the 2,500 square foot shops in 50 of the 750 square foot shops. Moving beyond beauty, let me now touch on the efforts and progress we have underway in our product and merchandising. As it relates to our product assortment, we are focused on optimizing our existing offering with greater balance while also capitalizing on opportunities in underpenetrated categories.

總而言之，到年底我們將在 900 多家門店開設絲芙蘭門店，其中包括 2,500 平方英尺門店中的 850 多家以及 750 平方英尺門店中的 50 家。除了美容，現在讓我談談我們在產品和營銷方面所做的努力和取得的進展。由於它與我們的產品分類有關，我們專注於優化我們現有的產品以實現更大的平衡，同時利用未充分滲透的類別中的機會。

One of our biggest opportunities is the home category. While we were disappointed with our Q1 performance, Home did enter the year with leaner inventories and therefore, had less benefit from our clearance activity. However, we are highly focused on improving results by rebuilding our core business as well as growing underrepresented categories such as gifting, decor, pet, impulse and outdoor. You will see these initiatives come to life in how we merchandise our stores in the coming months with gifting and home decor showcased near the front of the store to inspire customers as they enter.

我們最大的機會之一是家庭類別。雖然我們對第一季度的業績感到失望，但 Home 確實進入了這一年，庫存減少了，因此我們從清倉活動中獲益較少。然而，我們高度專注於通過重建我們的核心業務以及發展禮品、裝飾、寵物、衝動和戶外等代表性不足的類別來改善業績。在接下來的幾個月裡，您會看到這些舉措在我們如何銷售我們的商店時變得生動起來，在商店前面附近展示禮品和家居裝飾，以在顧客進入時激發他們的靈感。

Some of this work is already underway in our product and merchandising. As it relates to our product assortment, we are focused on optimizing our existing offering with greater balance while also capitalizing on opportunities in underpenetrated categories. One of our biggest opportunities is the home category. While we were disappointed with our Q1 performance, home did enter the year with leaner inventories and therefore, had less benefit from our clearance activity.

其中一些工作已經在我們的產品和銷售中進行。由於它與我們的產品分類有關，我們專注於優化我們現有的產品以實現更大的平衡，同時利用未充分滲透的類別中的機會。我們最大的機會之一是家庭類別。雖然我們對第一季度的表現感到失望，但今年以來國內的庫存確實減少了，因此我們從清倉活動中獲益較少。

However, we are highly focused on improving results by rebuilding our core business as well as growing underrepresented categories such as gifting, decor, pet, impulse and outdoor. We'll see these initiatives come to life and how we merchandise our stores in the coming months. with gifting and home decor showcased near the front of the store to inspire customers as they enter. Some of this work is already underway.

然而，我們高度專注於通過重建我們的核心業務以及發展禮品、裝飾、寵物、衝動和戶外等代表性不足的類別來改善業績。在接下來的幾個月裡，我們將看到這些舉措付諸實施，以及我們如何銷售我們的商店。在商店前面附近展示禮品和家居裝飾品，以在顧客進店時激發他們的靈感。其中一些工作已經在進行中。

Our repositioning of gifting to the front of the store during the holiday season proved highly successful, and this positive trend continued across valentine's day, Easter and more recently, Mother's Day. When you visit our stores now, you will see Americana deemed gifting products focused around the Memorial Day and the fourth of July holidays. We are also expanding our home decor, outdoor and pet offerings within home. Areas of opportunity include a greater selection of wall art, seasonal, patio furniture, camping and outdoor gear and tabletop. In Pet, we are allocating more space in stores following a successful test last fall.

事實證明，我們在節日期間將禮品重新定位到商店前台非常成功，這種積極趨勢在情人節、復活節和最近的母親節一直持續。當您現在訪問我們的商店時，您會看到 Americana 認為的禮品產品主要集中在陣亡將士紀念日和 7 月 4 日假期。我們還擴大了家居裝飾、戶外和家庭寵物用品。機會領域包括更多選擇的牆壁藝術、季節性、庭院家具、露營和戶外裝備以及桌面。在 Pet 方面，我們在去年秋天的成功測試後在商店中分配了更多空間。

To make room for additional productive selling space, we are consolidating to 1 checkout area in most of our stores with a greater selection of impulse items. We'll be adding self-checkout kiosks in 250 stores to support this transition. We are confident in our ability to maintain our high standards of customer service with this more efficient model.

為了為額外的高效銷售空間騰出空間，我們正在將我們大多數商店的 1 個結賬區合併為一個提供更多衝動商品選擇的結賬區。我們將在 250 家商店中添加自助結賬亭以支持這一轉變。我們相信我們有能力通過這種更高效的模式來維持我們高標準的客戶服務。

Turning to our apparel offerings. We are optimizing our assortments to reflect customers' interests. This includes offering a greater selection of polished casual and dress clothing in women's and more suiting and dress shirts in men's. During Q1, this focus areas outperformed the business. In women's, we are building a much stronger presentation in dresses and [polish] casual, as I said. Dresses significantly outperformed during the quarter. In concert, we are building depth in core and everyday essentials to provide trip assurance. We are optimistic that our actions will lead to a better future performance. In men's, we are seeing good results across several areas, including active, outdoor, suiting and dress shirts and big and tall. We remain committed to the active business while investing in our outdoor presence with an enhanced in-store experience and elevated merchandise.

轉向我們的服裝產品。我們正在優化我們的分類以反映客戶的興趣。這包括提供更多精美的女士休閒服和正裝，以及更多男士西裝和正裝襯衫。在第一季度，這一重點領域的表現優於業務。正如我所說，在女裝方面，我們正在打造更強大的連衣裙和 [優雅] 休閒裝。連衣裙在本季度的表現明顯優於其他品牌。同時，我們正在深入研究核心和日常必需品，以提供旅行保障。我們樂觀地認為，我們的行動將帶來更好的未來業績。在男裝方面，我們在多個領域都取得了不錯的成績，包括運動、戶外、西裝和正裝襯衫以及大碼和高碼。我們仍然致力於活躍的業務，同時通過增強店內體驗和提升商品來投資我們的戶外業務。

We also believe that the suiting and dress shirt business will continue to outperform driven by a broader assortment. Children's outperformed the company average in Q1, with positive growth in active and dress clothing similar to women's and men's. We are diversifying our offerings with greater selection in areas such as girl stresses and boys dress clothing.

我們還相信，西裝和正裝襯衫業務將在更廣泛的品種的推動下繼續跑贏大市。童裝一季度表現好於公司平均水平，運動服和正裝的增長與女裝和男裝相似。我們正在多樣化我們的產品，在女孩壓力和男孩禮服等領域提供更多選擇。

Let me now highlight some additional items, starting with our stores. As we discussed, our stores are incredibly important to our business, and increasing their productivity is vital to our future success. I am pleased with our improved performance in the past 2 quarters and remain confident that we can build on our early momentum. In addition to the actions I have already discussed, we are simplifying our signage and graphics making adjustments to how we are merchandising assortments and empowering our stores to capitalize on opportunities to improve the customer experience and drive sales in their local markets.

現在讓我強調一些額外的項目，從我們的商店開始。正如我們所討論的，我們的商店對我們的業務非常重要，提高他們的生產力對於我們未來的成功至關重要。我很高興我們在過去兩個季度的業績有所改善，並且仍然相信我們可以在早期的勢頭基礎上再接再厲。除了我已經討論過的行動之外，我們正在簡化標牌和圖形，調整我們的商品分類方式，並使我們的商店能夠利用機會改善客戶體驗並推動當地市場的銷售。

In doing so, we are creating a more modern experience for our customers. We're also committed to capitalizing on new store opportunities over the long term. As part of our 2023 real estate plans, we opened 2 new stores in Q1, 1 of which was a relocation. During the balance of the year, we will open 5 additional new stores for a total of 7 in 2023.

通過這樣做，我們正在為我們的客戶創造更現代的體驗。我們還致力於長期利用新店機會。作為我們 2023 年房地產計劃的一部分，我們在第一季度開設了 2 家新店，其中 1 家是搬遷。在今年餘下的時間裡，我們將再開設 5 家新店，到 2023 年總共將開設 7 家。

Turning to our digital business. We experienced softer demand in Q1. Our customers continue to shift back towards stores, and we reduced online-only promotions as we work to simplify our value strategies. Digital penetration was 26% in the quarter. While down to last year, this is still up meaningfully versus pre-pandemic levels. Looking ahead, we have various digital initiatives underway, including enhancing the site experience, curating our product assortment and continuing to simplify our value strategies as well as further refining our Kohl's Marketplace and Kohl's Media Network.

轉向我們的數字業務。我們在第一季度經歷了疲軟的需求。我們的客戶繼續轉向商店，我們在努力簡化我們的價值戰略時減少了僅限在線的促銷活動。本季度數字滲透率為 26%。儘管與去年相比有所下降，但與大流行前的水平相比仍顯著上升。展望未來，我們正在進行各種數字計劃，包括增強網站體驗、策劃我們的產品分類、繼續簡化我們的價值戰略以及進一步完善我們的 Kohl's Marketplace 和 Kohl's Media Network。

Now let me discuss the progress we are making against our second priority, which is accelerating and simplifying our value strategies. On our last call, we highlighted an opportunity to improve Kohl's competitiveness by simplifying our pricing and promotional strategies with the goal of driving greater customer engagement and conversion.

現在讓我討論一下我們在第二個優先事項方面取得的進展，即加速和簡化我們的價值戰略。在上次電話會議中，我們強調了通過簡化我們的定價和促銷策略來提高 Kohl's 競爭力的機會，目標是提高客戶參與度和轉化率。

During the first quarter, we began to replace general promotion and online-only offers with targeted offers and clearance events to clear slower-selling goods on a more regular basis. We will continue this approach moving forward at the appropriate pace. Additionally, we will test key value items within our private apparel and home brands, which are aligned with our simplified pricing efforts. Customers will begin to see a small percentage of our assortment moved to this approach during the back-to-school season, which we will integrate into our marketing messaging.

在第一季度，我們開始用有針對性的優惠和清倉活動取代一般促銷和僅限在線的優惠，以更定期地清理滯銷商品。我們將繼續這種方法，以適當的速度向前推進。此外，我們將測試我們的私人服裝和家居品牌中的關鍵價值項目，這與我們簡化的定價工作保持一致。在返校季期間，客戶將開始看到我們的一小部分產品轉向這種方法，我們會將其整合到我們的營銷信息中。

We are approaching this initiative with a great measure and flexibility, and will determine next steps following our assessment this fall. If successful, we will scale and grow it in subsequent years. Lastly, we will continue to leverage our industry-leading loyalty program as a mechanism to deliver even more value to our customers. We will begin the rollout of our co-brand card with Capital One to select customers in the second quarter. Over time, we expect to benefit from our dual offering of our existing strong private label credit card and a co-brand card that offers more flexibility to reach younger customers.

我們正在以極大的措施和靈活性來處理這一舉措，並將在今年秋天進行評估後確定下一步行動。如果成功，我們將在隨後幾年擴大和發展它。最後，我們將繼續利用我們行業領先的忠誠度計劃作為一種機制，為我們的客戶提供更多價值。我們將在第二季度開始推出與 Capital One 的聯合品牌卡，以選擇客戶。隨著時間的推移，我們希望從我們現有強大的自有品牌信用卡和聯合品牌卡的雙重產品中受益，後者可以更靈活地吸引年輕客戶。

I will now transition to the progress we are making against our third priority, which is managing inventory and expenses with discipline. During Q1, we enhanced our inventory control processes and managed inventory down 6% to last year. This is in line with our goal of planning inventory down mid-single digits percent.

我現在將過渡到我們在第三個優先事項方面取得的進展，即嚴格管理庫存和費用。在第一季度，我們加強了庫存控制流程，並將庫存控制在比去年下降 6% 的水平。這符合我們計劃庫存下降中個位數百分比的目標。

We also commenced our regular inventory clearance actions during the quarter, which will clear slower selling items sooner to create greater liquidity to chase receipts and drive turnover. Looking ahead, I continue to remain optimistic that through our enhanced inventory control processes, we'll be able to increase our sales productivity and overall inventory turnover. We feel good about our Q2 inventory levels and are well positioned from a liquidity perspective with plenty of room to chase. This is a positive given the persistent macroeconomic headwinds.

我們還在本季度開始了定期的庫存清理行動，這將更快地清理銷售較慢的商品，以創造更大的流動性來追逐收據並推動營業額。展望未來，我仍然樂觀地認為，通過加強庫存控制流程，我們將能夠提高銷售效率和整體庫存周轉率。我們對第二季度的庫存水平感覺良好，並且從流動性角度來看處於有利位置，有足夠的追逐空間。鑑於持續的宏觀經濟逆風，這是一個積極因素。

Now let me turn to our focus on expense management. In Q1, our SG&A expense declined 4% to last year and leveraged as a percent of revenue. We are proactively capitalizing on opportunities to drive efficiency across all areas of the company. However, as Jill will discuss in more detail, our SG&A spending pattern in 2023 will be unique given the timing and concentration of the Sephora and store-related investments I just discussed.

現在讓我談談我們對費用管理的關注。在第一季度，我們的 SG&A 費用比去年下降了 4%，並佔收入的百分比。我們正在積極利用機會來提高公司所有領域的效率。然而，正如吉爾將更詳細地討論的那樣，考慮到我剛才討論的絲芙蘭和商店相關投資的時間和集中度，我們 2023 年的 SG&A 支出模式將是獨一無二的。

To be clear, though, our SG&A expense outlook for the year has not changed. And lastly, our fourth priority is strengthening our balance sheet. Our focus remains on returning our balance sheet to its historical strength with a long-term objective of managing to a 2.5x leverage level. In Q1, we retired $164 million of bond maturities. This, along with funding working capital in the quarter led to utilizing the revolver as planned. Jill will discuss our other capital allocation priorities, including our commitment to the dividend, which represents a healthy yield at the current share price.

不過需要明確的是，我們今年的 SG&A 支出前景沒有改變。最後，我們的第四個優先事項是加強我們的資產負債表。我們的重點仍然是讓我們的資產負債表恢復到歷史實力，長期目標是管理到 2.5 倍的槓桿水平。第一季度，我們收回了 1.64 億美元的到期債券。這與本季度的營運資金一起導致按計劃使用左輪手槍。吉爾將討論我們的其他資本配置優先事項，包括我們對股息的承諾，這代表了當前股價的健康收益率。

So to summarize, the first quarter was a first step in our journey to drive sales and earnings performance over the long term. I am pleased but not surprised that the entire Kohl's team was extremely focused in executing against our priorities. It was a great team effort. As we look to the balance of the year, we continue to approach our outlook with prudence. However, it remains our objective to show incremental improvement against our priorities and actions as we move through the year. We set ourselves up to accomplish this with our first quarter performance.

總而言之，第一季度是我們推動長期銷售和盈利業績的第一步。我很高興但並不感到驚訝，因為整個 Kohl's 團隊都非常專注於執行我們的優先事項。這是一項偉大的團隊努力。當我們展望今年的餘額時，我們將繼續審慎地對待我們的前景。然而，我們的目標仍然是在這一年中逐步改進我們的優先事項和行動。我們準備通過第一季度的業績來實現這一目標。

In closing, I want to thank our loyal associates for their contributions to our business and for serving our customers every day.

最後，我要感謝我們忠誠的員工為我們的業務做出的貢獻以及每天為我們的客戶提供服務。

I will now turn over the call to Jill to discuss our first quarter results and our 2023 outlook. Jill?

我現在將把電話轉給吉爾，討論我們第一季度的業績和 2023 年的展望。吉爾？

Thank you, Tom, and good morning, everyone. I will review our first quarter results and then discuss our guidance for 2023. As Tom shared, we made initial progress against our strategic priorities and delivered results in line with our expectations during the first quarter. While we continue to operate in a challenging macroeconomic backdrop, we remain confident in our strategies and have affirmed our full year financial outlook.

謝謝你，湯姆，大家早上好。我將回顧我們的第一季度業績，然後討論我們對 2023 年的指導。正如湯姆所分享的，我們在第一季度的戰略重點方面取得了初步進展，並取得了符合我們預期的結果。雖然我們繼續在充滿挑戰的宏觀經濟背景下運營，但我們對我們的戰略仍然充滿信心，並確認了我們的全年財務前景。

Turning to the first quarter. Net sales were down 3.3%. Store sales were up low single-digit percent driven by strong Sephora at Kohl's growth as well as our clearance actions. Digital sales were down 19.6% to last year. From a product perspective, national brands outperformed private brands in the quarter. Our top-performing national brands in the quarter include Nike, Haggar, IZOD, Columbia, [ELLE] and Eddie Bauer while our top-performing private brands were Apartment 9, Flx and Simply Vera Vera Wang.

轉到第一季度。淨銷售額下降了 3.3%。在 Kohl's 增長強勁的絲芙蘭以及我們的清倉行動的推動下，商店銷售額增長了低個位數百分比。數字銷售額比去年下降了 19.6%。從產品角度來看，本季度民族品牌的表現優於自有品牌。我們本季度表現最好的民族品牌包括 Nike、Haggar、IZOD、Columbia、[ELLE] 和 Eddie Bauer，而我們表現最好的自有品牌是 Apartment 9、Flx 和 Simply Vera Vera Wang。

Accessories was our best-performing line of business, up 31% to last year. Strong sales growth in Beauty was partially offset by lower sales of jewelry, which again was largely impacted by the in-store displacement associated with removing the fine jewelry counter to make room for Sephora shops.

配飾是我們表現最好的業務線，比去年增長了 31%。美妝業務的強勁銷售增長部分被珠寶銷售額的下降所抵消，而珠寶銷售額的下降又在很大程度上受到與拆除高級珠寶櫃檯以為絲芙蘭商店騰出空間相關的店內置換的影響。

As it relates to some of our other categories, children's and men's apparel outperformed the company average, while home, footwear and women's underperformed. Other revenue, which is primarily our credit business declined 11% in the first quarter. Performance of our credit business continues to be pressured by normalizing loss rates, which were expected. While other revenue is expected to remain down year-on-year, it will progressively improve during the balance of the year.

與我們的其他一些品類相關，兒童和男裝的表現優於公司平均水平，而家居用品、鞋類和女裝則表現不佳。其他收入，主要是我們的信貸業務，在第一季度下降了 11%。我們的信貸業務的表現繼續受到預期損失率正常化的壓力。雖然其他收入預計將同比下降，但在今年餘下時間將逐步改善。

Now let me turn to the rest of the income statement. Q1 gross margin was 39%, up 67 basis points from last year. The improvement was driven by a decline in digital-related cost of shipping, lower freight expense, and simplifying our value strategies, partially offset by product cost inflation and higher shrink. SG&A expenses were down 4.2% to $1.2 billion. The decline was driven by fewer Sephora openings and related store refreshes as compared to last year as well as disciplined expense management across corporate and marketing, which offset continued wage headwinds.

現在讓我轉向損益表的其餘部分。第一季度毛利率為 39%，比去年上升 67 個基點。這一改善是由數字相關的運輸成本下降、運費降低以及我們的價值戰略簡化所推動的，部分被產品成本膨脹和更高的收縮所抵消。 SG&A 費用下降 4.2% 至 12 億美元。下降的原因是與去年相比絲芙蘭開業和相關門店更新減少，以及公司和營銷部門嚴格的費用管理，抵消了持續的工資逆風。

Depreciation expense of $188 million was $12 million lower than last year due to reduced technology capital spend. Interest expense of $84 million was $16 million higher than last year due to Sephora-related lease amendments and increased revolver borrowings. Net income for the quarter was $14 million, and earnings per diluted share was $0.13 as compared to $0.11 last year.

由於技術資本支出減少，折舊費用為 1.88 億美元，比去年減少 1200 萬美元。 8400 萬美元的利息支出比去年高出 1600 萬美元，原因是與絲芙蘭相關的租賃修訂和增加的循環借款。本季度淨收入為 1400 萬美元，攤薄後每股收益為 0.13 美元，而去年同期為 0.11 美元。

Turning to the balance sheet and cash flow. We ended the quarter with $286 million of cash and cash equivalents. And inventory at quarter end was down 6% compared to last year. As Tom shared, we feel good about our inventory level entering Q2, and remain focused on driving turnover. Operating cash flow was a use of cash of $202 million in the first quarter. Capital expenditures for the quarter were $94 million. We are still planning for approximately $600 million to $650 million of capital expenditures in 2023.

轉向資產負債表和現金流量。我們在本季度末擁有 2.86 億美元的現金和現金等價物。與去年同期相比，季度末庫存下降了 6%。正如 Tom 分享的那樣，我們對進入第二季度的庫存水平感到滿意，並將繼續專注於推動營業額。第一季度的運營現金流為 2.02 億美元的現金使用。本季度的資本支出為 9400 萬美元。我們仍計劃在 2023 年進行大約 6 億至 6.5 億美元的資本支出。

Now let me provide an update on our capital structure and capital allocation priorities. Strengthening our balance sheet is one of our top priorities in 2023. It is important that we rebuild our cash position, and it remains our longer-term goal to manage this business at a leverage target of 2.5x.

現在讓我介紹一下我們的資本結構和資本分配優先事項的最新情況。加強我們的資產負債表是我們 2023 年的首要任務之一。我們重建現金狀況很重要，我們的長期目標仍然是以 2.5 倍的槓桿率目標管理該業務。

In the first quarter, as planned, we utilized our revolver to fund both working capital and the $164 million bond retirement. We continue to plan on working our revolver balance down throughout the year with no borrowings expected at year-end, inclusive of retiring $111 million of bonds in December of 2023. As it relates to returning capital to shareholders, we will continue to prioritize our current dividend, which represents a healthy yield for our shareholders.

在第一季度，我們按計劃利用我們的左輪手槍為營運資金和 1.64 億美元的債券退休提供資金。我們繼續計劃全年減少循環餘額，預計年底不會藉款，包括在 2023 年 12 月償還 1.11 億美元的債券。由於涉及向股東返還資本，我們將繼續優先考慮我們目前的股息，這代表了我們股東的健康收益。

During the first quarter, we paid $55 million or $0.50 per share in dividends to shareholders. In addition, as previously disclosed on May 10, the Board declared a quarterly cash dividend of $0.50 per share payable to shareholders on June 21.

第一季度，我們向股東支付了 5500 萬美元或每股 0.50 美元的股息。此外，正如此前於 5 月 10 日披露的那樣，董事會於 6 月 21 日宣布向股東派發每股 0.50 美元的季度現金股息。

Now let me provide details on our outlook for 2023. As you've heard today, we are pleased with the progress we are making against our priorities. Our first quarter results were in line with our expectations despite continuing to operate in a challenging environment. Given this, we are affirming our full year financial guidance. For the full year, we currently expect net sales to decrease 2% to 4% versus 2022 and includes the 53rd week which is worth approximately 1 percentage point of growth. Operating margin to be approximately 4% and EPS to be in the range of $2.10 to $2.70, excluding any nonrecurring charges.

現在讓我提供有關我們 2023 年展望的詳細信息。正如您今天所聽到的，我們對我們在優先事項方面取得的進展感到滿意。儘管我們繼續在充滿挑戰的環境中運營，但我們第一季度的業績符合我們的預期。鑑於此，我們確認我們的全年財務指導。對於全年，我們目前預計淨銷售額將比 2022 年下降 2% 至 4%，其中包括第 53 週，這相當於增長約 1 個百分點。營業利潤率約為 4%，每股收益在 2.10 美元至 2.70 美元之間，不包括任何非經常性費用。

Lastly, I want to highlight a couple of items about how we are thinking about the second quarter. We continue to expect our full year gross margin in the 36% to 36.5% range, with our Q2 gross margin down to last year as we are clearing goods on a more regular basis and slightly below the first quarter margin rate. We continue to expect our full year SG&A expense to deleverage slightly. However, we want to be clear in our comments around Q2, given the unique spending pattern this year. We are planning for SG&A expense to be up 3% to 4% year-over-year in the second quarter. Q2 includes a concentrated level of investments related to the timing of Sephora openings this year and the store-related investments Tom discussed. This view is consistent with our plans entering the year.

最後，我想強調幾個關於我們如何看待第二季度的項目。我們繼續預計我們的全年毛利率在 36% 至 36.5% 的範圍內，我們的第二季度毛利率低於去年，因為我們更定期地清算貨物並且略低於第一季度的毛利率。我們繼續預計我們全年的 SG&A 費用將略微去槓桿化。然而，鑑於今年獨特的支出模式，我們希望在第二季度的評論中明確。我們計劃第二季度的 SG&A 費用同比增長 3% 至 4%。第二季度包括與今年絲芙蘭開業時間相關的集中投資以及湯姆討論的與商店相關的投資。這一觀點與我們今年的計劃一致。

With that, Tom and I are happy to take your questions at this time.

有了這個，湯姆和我很高興在這個時候回答你的問題。

(Operator Instructions)

（操作員說明）

Our first question will come from the line of Bob Drbul with Guggenheim Partners.

我們的第一個問題將來自 Bob Drbul 與 Guggenheim Partners 的合作。

Nice quarter. Two questions for you, Tom, actually, if I could. The first one is just when you look at the strategy that you have laid out, can you just speak to the confidence that you have in terms of what you're seeing, what you've seen so far? And then the second question, it's probably might be for either of you, but can you just also talk to the margin sustainability on what you're doing? The gross margins were up, you're talking about the 4% operating margin for the year. If you can maybe just elaborate a bit more on that segment? That would be helpful.

不錯的季度。湯姆，如果可以的話，實際上有兩個問題要問你。第一個是當你審視你已經制定的戰略時，你能否談談你對你所看到的，你到目前為止所看到的有信心？然後是第二個問題，它可能適合你們中的任何一個，但你能不能也談談你正在做的事情的利潤可持續性？毛利率上升了，你說的是今年 4% 的營業利潤率。您能否就該部分詳細說明一下？那會很有幫助。

Well, I'll answer question number one, and I'll have Jill answer the question number two. We're very confident in terms of the strategies we have in place. As I mentioned, the Sephora business has been very, very good. The active business had a little bit of a rebound in the first quarter overall. The men's and kids business has been strong relative to the other apparel areas as well. But there's a lot of opportunity to continue to grow the businesses.

好吧，我會回答第一個問題，我會讓吉爾回答第二個問題。我們對現有的戰略非常有信心。正如我所提到的，絲芙蘭的業務一直非常非常好。活躍業務在第一季度總體上略有反彈。相對於其他服裝領域，男裝和童裝業務也表現強勁。但是有很多機會繼續發展業務。

The home business, as I've mentioned multiple times, is a huge opportunity for us. We really should start seeing traction in the second quarter. There's a lot of categories that we weren't in. And we're starting to get deliveries now, and seeing some positive business due to that. So home is just -- multiple opportunities for that business. The women's business, it was somewhat disappointing in Q1, but we did get to see traction in dresses and [polish] casual. And we think if we continue to deliver more product like that, we should do better in that area overall.

正如我多次提到的，家庭企業對我們來說是一個巨大的機會。我們真的應該在第二季度開始看到牽引力。我們沒有涉及很多類別。我們現在開始交貨，並因此看到了一些積極的業務。所以家只是 - 為該企業提供多種機會。女裝業務在第一季度有些令人失望，但我們確實看到了連衣裙和 [拋光] 休閒裝的吸引力。我們認為，如果我們繼續提供更多這樣的產品，我們應該在該領域整體做得更好。

So yes, we feel really good. We are really pleased with our performance in the stores. It's been a while since we've had that kind of performance in the stores. And I feel very good about the team in general in terms of their ability to really pivot and entertain new strategies, and they're all working very hard to get it done.

所以是的，我們感覺非常好。我們對我們在商店的表現非常滿意。我們已經有一段時間沒有在商店裡進行過這種表演了。總的來說，我對團隊在真正調整和接受新策略的能力方面感覺非常好，而且他們都非常努力地完成它。

And the second question was margin sustainability. What I would say is we feel very confident in our margin outlook. In fact, the 36% to 36.5% guide for the year is well within the long-term framework that we introduced to you a couple of years ago at our Investor Day.

第二個問題是保證金的可持續性。我要說的是，我們對利潤率前景非常有信心。事實上，今年 36% 至 36.5% 的指導完全在我們幾年前在投資者日向您介紹的長期框架內。

The actions that we have put around simplifying our pricing really through delayering offers and targeting offers to make them more productive, will continue. And we have a lot of opportunity to continue to drive value for the customer, but do it in a much more targeted way, which benefits us. Taking clearance on a much more timely manner is definitely going to have better sell-throughs at better prices.

我們將繼續採取行動，通過延遲報價和定位報價來簡化我們的定價，以提高效率。我們有很多機會繼續為客戶創造價值，但要以更有針對性的方式進行，這對我們有利。更及時地清關肯定會以更好的價格獲得更好的銷售量。

So as we started doing that this year, obviously, we'll have a little bit of a change between quarters pressure in Q2 a little bit, but we do think that's the right thing to do for both the business in terms of sales from a customer perspective, but also from a margin perspective, and then as we move through the year, we'll start to see a lot of the commodity inflation abating, especially with our back-to-school receipts.

因此，當我們今年開始這樣做時，很明顯，我們在第二季度的季度壓力之間會有一點變化，但我們確實認為，就銷售額而言，這對兩家公司來說都是正確的做法從客戶的角度，也從利潤的角度來看，然後隨著我們這一年的發展，我們將開始看到很多商品通脹有所減弱，尤其是我們的返校收據。

So that cost number is coming down. And we'll continue to see benefit from freight, which I think will continue to increase as the year progresses. We will continue to see shrink headwinds, but we feel like we can definitely put some actions against that to at least moderate it, but we will expect that to continue. With all that being said, we feel great about our margin outlook.

所以這個成本數字正在下降。我們將繼續看到運費帶來的好處，我認為隨著時間的推移，運費將繼續增加。我們將繼續看到收縮逆風，但我們覺得我們絕對可以採取一些行動來至少緩和它，但我們預計這種情況會繼續下去。話雖如此，我們對利潤率前景感到滿意。

And even with SG&A, we're going to deleverage slightly down 2% to down 4%. So it just shows that a lot of our efforts around cost, have been paying back, particularly around driving down marketing, finding ways within the store to be more efficient with self-checkout to help us offset some of the wage increases. So although we have a pop in Q2, really due to the sales drivers that Tom had outlined. So we can fund that into the store. We do feel good with the framework that we have outlined for this year and feel confident hitting 4% and then building on that as we move forward in the outcome -- out years.

即使有 SG&A，我們也將去槓桿化，略微下降 2% 至 4%。所以它只是表明我們在成本方面所做的很多努力一直在得到回報，特別是在推動營銷方面，在店內尋找提高自助結賬效率的方法，以幫助我們抵消部分工資增長。因此，儘管我們在第二季度出現了流行，但實際上是由於湯姆概述的銷售驅動因素。所以我們可以把它存入商店。我們確實對我們為今年概述的框架感到滿意，並且有信心達到 4%，然後在我們取得成果的過程中在此基礎上再接再厲——未來幾年。

Your next question comes from the line of Gabby Carbone with Deutsche Bank.

你的下一個問題來自德意志銀行的 Gabby Carbone。

So Tom, maybe just bigger picture, how do you view the overall consumer? And do you think consumer spending behavior has changed since the beginning of the year?

所以湯姆，也許只是更大的圖景，你如何看待整體消費者？您認為自年初以來消費者的支出行為是否發生了變化？

Well, I think the middle income customer is being squeezed overall based on, obviously, macroecononomic issues, et cetera. But with that said, we feel good if we can continue to deliver value that we can capture the business and we can navigate around really any issues if we consistently deliver strong values to the customers. So it really hasn't changed, to be honest with you. I think it's been -- it's similar throughout. And going forward, we're going to have to continue to give the customer more value. And that's what we're doing.

好吧，我認為中等收入客戶正在整體上受到擠壓，顯然是基於宏觀經濟問題等。但話雖如此，如果我們能夠繼續提供我們可以獲得業務的價值，我們會感覺很好，如果我們始終如一地為客戶提供強大的價值，我們就可以解決任何問題。所以它真的沒有改變，老實說。我認為它一直是——它自始至終都是相似的。展望未來，我們將不得不繼續為客戶提供更多價值。這就是我們正在做的。

Great. And then I just have a quick follow-up. Just was wondering if you can dig into the performance of athletic, and what drove the positive results there. Was it both apparel and footwear? And then how are your own brands performing within athletic?

偉大的。然後我只是快速跟進。只是想知道您是否可以深入研究運動表現，以及是什麼推動了那裡的積極成果。是服裝還是鞋類？那麼您自己的品牌在運動領域的表現如何？

So I think from an active perspective, we did see positive comps in our apparel. So we are excited to see that in the apparel. Footwear as you know, has definitely been something that has been lagging the business, but we have seen some relative improvement there, particularly across our top 3 brand vendors. But we do still see good -- Flx was called as one of our top-performing brands, which is an athleisure brand across the store. And then tek gear , which is our opening price point, has continued to perform for us as well. But I think the big push we saw this quarter was really getting our top 3 brands back to growth in some instances, and moderating where they had fallen off in fourth quarter and third quarter of last year.

所以我認為從積極的角度來看，我們確實在我們的服裝中看到了積極的競爭。所以我們很高興在服裝中看到這一點。如您所知，鞋類產品肯定一直落後於該行業，但我們已經看到了一些相對改善，尤其是我們的前 3 大品牌供應商。但我們仍然看到了好的一面——Flx 被稱為我們表現最好的品牌之一，它是整個商店的運動休閒品牌。然後我們的開盤價 tek gear 也繼續為我們表現。但我認為，我們在本季度看到的巨大推動力確實讓我們的前三大品牌在某些情況下恢復了增長，並在去年第四季度和第三季度下滑的情況下有所緩和。

Your next question comes from the line of Mark Altschwager with Baird.

你的下一個問題來自 Mark Altschwager 與 Baird 的對話。

Jill, any more color you can provide on quarter-to-date comp trends or your expectations for Q2 sales relative to the down 2% to 4% annual guide? And then also hoping you could provide a bit more color on e-commerce. What is driving the channel shift? Where do you think digital penetration settles here in the medium term? And then I had a follow-up.

吉爾，關於季度至今的補償趨勢或您對第二季度銷售額相對於年度指導下降 2% 至 4% 的預期，您還能提供更多顏色嗎？然後也希望你能在電子商務上提供更多的色彩。是什麼推動了渠道轉變？從中期來看，您認為數字滲透率會在哪裡落戶？然後我進行了跟進。

Let me answer the first part. The current trend, May is slightly less than we anticipated. However, we feel we can make it up throughout the quarter. Looking back to last year, one of our toughest months was June. So we feel that we can make up the ground that we that we lost slightly in May overall. But I think as we go through the quarters, a lot of our strategies will continue to evolve. And as I mentioned earlier, we feel good about the business and that we have a lot of great things in place.

讓我回答第一部分。目前的趨勢，5 月份略低於我們的預期。但是，我們認為我們可以在整個季度內彌補。回顧去年，我們最艱難的月份之一是六月。所以我們覺得我們可以彌補我們在 5 月份總體上略有損失的基礎。但我認為，隨著我們經歷這些季度，我們的許多戰略將繼續發展。正如我之前提到的，我們對業務感覺良好，並且我們有很多很棒的東西。

And then in terms of digital, I think first, we're really excited about the storage business, as Tom indicated, running a positive comp. And a lot of the initiatives we've outlined are focused on driving to the store. And I think even with Tom's comments on the quarter, we have 250 more Sephora stores opening this year in the June and July time frame. So we definitely feel like we have some momentum through the stores. From a digital perspective, we definitely expect that our digital business will improve throughout the year. As we were talking about removing some of the offers to simplify our equation and getting rid of the delayering, some of those were online-only offers. And so when we were looking at what was productive for us, what really prevented value to the customer, those didn't make the cut. So I think they maybe had a little bit more outsized impact from that perspective.

然後在數字方面，我認為首先，我們對存儲業務感到非常興奮，正如湯姆所指出的那樣，運行積極的競爭。我們概述的許多舉措都集中在開車去商店上。而且我認為即使有湯姆對本季度的評論，我們今年在 6 月和 7 月的時間框架內還有 250 家絲芙蘭門店開業。所以我們肯定覺得我們在商店裡有一些動力。從數字的角度來看，我們絕對希望我們的數字業務在全年都會有所改善。當我們談論刪除一些優惠以簡化我們的等式並擺脫延遲時，其中一些是僅限在線的優惠。因此，當我們研究什麼對我們有生產力，什麼真正阻礙了對客戶的價值時，那些並沒有被削減。所以我認為從這個角度來看，他們可能產生了更大的影響。

As we move forward, though, we have a lot of things that we're working on, and one is just through pricing clarity. We know that's incredibly important on digital, having that pricing transparency.

但是，隨著我們向前邁進，我們正在做很多事情，其中之一就是通過定價清晰度。我們知道這對數字來說非常重要，具有定價透明度。

So with the pricing actions we have, but that's really focused on driving that transparency, which should help in the digital space. We're also doing a lot to enhance the site experience, so customer experience that we spoke to in stores. We're doing a lot to replicate that online as well. So you're going to have more inspiration, better search relevance, more recommendations. So a lot of things there so that we can drive what the consumer is looking for. And then we're also curating that product assortment much better for the customers so we can deliver those needs. And then also, we're refining our strategies around marketplace and our media network, which just really helps in that digital space as well. So we feel confident with the strategy that we have. So we expect to see progressive improvement throughout the year.

因此，我們採取了定價行動，但真正專注於推動透明度，這應該有助於數字領域。我們還做了很多工作來增強網站體驗，即我們在商店中談到的客戶體驗。我們也在做很多工作來在線複製它。因此，您將獲得更多靈感、更好的搜索相關性以及更多推薦。所以那裡有很多東西，所以我們可以推動消費者正在尋找的東西。然後我們還為客戶更好地策劃產品分類，以便我們能夠滿足這些需求。然後，我們正在完善我們圍繞市場和媒體網絡的戰略，這在數字領域也確實有幫助。因此，我們對我們的戰略充滿信心。因此，我們預計全年會逐步改善。

Yes, I just want to also comment on that. I want everyone to understand that we are committed to the digital business. And as Jill said, we're taking a lot of actions going forward. And we -- as Jill said, we see improvement as we go through the year.

是的，我也想對此發表評論。我希望每個人都明白我們致力於數字業務。正如吉爾所說，我們正在採取很多行動。我們——正如吉爾所說，我們在這一年中看到了進步。

And then a quick follow-up. You touched on some of this, but I was hoping you could unpack some of the value simplification initiatives. It sounds like you're being very measured here, but I guess, what's working? And maybe where are you gaining some confidence that you could lean in maybe sooner than initially thought? And how is that flowing through to the gross margin?

然後快速跟進。你談到了其中的一些，但我希望你能解開一些價值簡化計劃。聽起來你在這裡很謹慎，但我想，什麼在起作用？也許你從哪裡獲得了一些信心，相信你可以比最初想像的更早投入？這如何影響毛利率？

Well, obviously, that's one of our key strategies in terms of simplifying our value message. What we're doing right now is we're just eliminating some of the layered events that we had last year. Jill mentioned about the layered events in digital overall. So we still are very, very confident in the model that Kohl's has in terms of delivering value to the customer.

嗯，很明顯，這是我們簡化價值信息的關鍵策略之一。我們現在正在做的是，我們只是消除了去年發生的一些分層事件。吉爾提到了數字整體的分層事件。因此，我們仍然對 Kohl's 在為客戶提供價值方面的模式充滿信心。

We just think that we need to get rid of some of the layered events, as I mentioned before. We also are trying to get rid of general public offerings where we give a discount to everybody. We think it needs to be more targeted in terms of driving the business through those kind of events relative to general promotions.

正如我之前提到的，我們只是認為我們需要擺脫一些分層事件。我們還試圖擺脫對每個人都給予折扣的一般公開募股。我們認為，在通過與一般促銷相關的此類活動來推動業務方面，需要更有針對性。

And we're going to be bringing in, as we mentioned in the last call, some key value items. It's going to start during the back-to-school season where we price the goods, not at everyday low value. We're not going to convert to the off-price model, but it's going to be brought in at a price point that is going to accelerate the selling. And we're going to look at that. We're doing it very, very carefully. We're going to measure it. And if it is good, then we'll move forward. If not, we'll look at doing something else. But overall, I don't know if we're going to accelerate anything because we're really testing and we obviously don't want to make any mistakes in terms of the promotional calendar. We're just looking for things that we can eliminate without any big impact to the business.

正如我們在上次電話會議中提到的，我們將引入一些關鍵價值項目。它將在返校季開始，屆時我們將為商品定價，而不是每天的低價。我們不會轉換為低價模式，但它會以一個可以加速銷售的價格點引入。我們將著眼於此。我們正在非常非常小心地做這件事。我們要測量它。如果一切順利，我們就會繼續前進。如果沒有，我們將考慮做其他事情。但總的來說，我不知道我們是否會加速任何事情，因為我們真的在測試，我們顯然不想在促銷日曆方面犯任何錯誤。我們只是在尋找可以消除而不會對業務產生任何重大影響的東西。

Your next question comes from the line of Matthew Boss with JPMorgan.

你的下一個問題來自摩根大通的 Matthew Boss。

Congrats on the early progress. So Tom, on the inventory progress, could you speak to key learnings to date and elaborate on initiatives that you've put in place to sustainably manage the receipts and drive newness across the assortment?

恭喜早日進步。那麼，湯姆，關於庫存進展，你能否談談迄今為止的主要經驗，並詳細說明你為可持續地管理收據和推動整個分類的新穎性而採取的舉措？

Okay. Music to my ears. Having the -- well, having a disciplined approach to the inventory is obviously key for many, many reasons. We are happy with the progress we have made from end of January to now in terms of being down 6%.

好的。音樂在我耳邊。擁有——好吧，有一個有紀律的庫存方法顯然是關鍵，原因有很多。我們對從 1 月底到現在下降 6% 所取得的進展感到滿意。

We -- right now, we could be better than that in the end of the second quarter. Things are moving around, and we have open to buy to chase. But we feel that mid-single-digit decreases is what we're going to do and what we're going to execute to. And the positives are, again, being able to have money open to buy at any point in time, the chase things is really key. And the process is really is just -- we're really putting a lot of emphasis on the processes that we're trying to execute overall. And it's a lot of eyeballs on it. And trying to be proactive to catch things if we see things are getting a little higher than we want them to be. But overall, it's been a good team effort in terms of managing the inventory overall.

我們 - 現在，我們可能會比第二季度末更好。事情正在發生變化，我們已經開放購買追逐。但我們認為，中個位數的下降是我們要做的，也是我們要執行的。積極的一面是，能夠在任何時間點打開資金購買，追逐東西真的很關鍵。這個過程真的只是——我們真的非常重視我們試圖整體執行的過程。它吸引了很多眼球。如果我們看到事情變得比我們想要的要高一點，我們會積極主動地抓住事情。但總的來說，就整體庫存管理而言，這是一項很好的團隊努力。

And then maybe on the improved inventory -- on the improved productivity that you cited in the stores, could you just help rank the traffic driving initiatives that you're the most excited about? And just how best to think about the store fleet over time from here?

然後也許關於改進的庫存 - 關於您在商店中引用的提高的生產力，您能否幫助對您最興奮的交通驅動計劃進行排名？從這裡開始，隨著時間的推移如何最好地考慮商店車隊？

Sure. So I think the first traffic-driving initiative for us is clearly Sephora. And you saw the stats around Sephora comping in those first 200 stores in the mid-teens and then continue to see just the outsized impact there. And we have now a solution to go to our smaller stores, which -- those first test stores are exceeding our expectations.

當然。因此，我認為對我們而言，第一個推動交通的舉措顯然是絲芙蘭。你看到絲芙蘭在 200 年代中期的前 200 家商店中的統計數據，然後繼續看到那裡的巨大影響。我們現在有一個解決方案可以進入我們較小的商店，這些第一家測試商店超出了我們的預期。

So I think we're definitely seeing traffic. We're seeing new customers. So that would definitely be ranked number one. I think my number 2 is that we have the registers moving out, and we're adding that selling space to the front of the store and really going to have more of a home decor presence.

所以我認為我們肯定會看到流量。我們正在接待新客戶。所以那肯定是排在第一位的。我認為我的第 2 點是我們將收銀機移出，我們正在將銷售空間添加到商店的前面，並且真的會有更多的家居裝飾存在。

And Tom has done this a lot. It's a big white space. So it's a big opportunity. It's also more of an impulse to find that item that you're walking in really get inspired for so we can have an added item to the basket. So I think that would be two. And three for me is really the gifting, and we saw that proof-point through holiday, Valentine's Day, and most recently, Mother's Day, really, when we were able to pull those collections to the front of the store and just seeing the customers' reaction to that and being able to shop easily and add that into their basket as well.

湯姆已經做了很多。這是一個很大的空白。所以這是一個很大的機會。這也更像是一種衝動，可以找到您正在行走的那件真正受到啟發的物品，這樣我們就可以在購物籃中添加一件物品。所以我認為那將是兩個。對我來說，三個真的是禮物，我們通過假期、情人節和最近的母親節看到了這一點，真的，當我們能夠將這些系列拉到商店的前面並看到顧客時' 對此的反應以及能夠輕鬆購物並將其添加到他們的購物籃中。

So I think those changes around spaces that we hadn't been participating in, really, what gets me in bringing this footsteps back into the stores. I think those continue to be great opportunities for us, especially with the expansion into Q2 of the additional 250 stores. And then in Q3, adding about 45 new small stores for Sephora. And then throughout Q2, we're pulling out the registers and all of our fleet, and we're able to bring that home to core to the front. So I think there's a lot of opportunities in front of us, which is why I think Tom and I show that confidence in the progressive improvement in top line.

所以我認為那些我們沒有參與的空間變化，真的，是什麼讓我把這些腳步帶回商店。我認為這些對我們來說仍然是很好的機會，尤其是在第二季度新增 250 家門店時。然後在第三季度，為絲芙蘭增加了大約 45 家新的小店。然後在整個第二季度，我們正在撤出收銀機和我們所有的艦隊，我們能夠將其帶回核心地帶。所以我認為我們面前有很多機會，這就是為什麼我認為湯姆和我對頂線的逐步改善表現出信心。

Yes. And I want to comment on that a little bit as well. For a long, long time, when you walk into a Kohl's store, you would see men's on the right- or left-hand side and women's on the right or left-hand side, and it was the same for a long time. So removing (technical difficulty) to have more gifting in the front, as Jill said. So it's -- when they walk into the store, they're seeing something new, something different, something very giftable, and a different look. We want to excite the customers every time they come into a Kohl's store overall. So we're very excited about that. As Jill said, I mean, we started it really in the fourth quarter in terms of moving our giftables to the front, and they sold very well. Valentine's Day sold well.

是的。我也想對此發表一點評論。很長很長一段時間，當你走進科爾的商店時，你會看到男裝在右手邊或左手邊，女裝在右手邊或左手邊，很長一段時間都是如此。正如吉爾所說，因此刪除（技術難度）以在前面獲得更多的天賦。所以它是——當他們走進商店時，他們會看到一些新的、不同的、非常有天賦的東西，以及不同的外觀。我們希望每次顧客光顧 Kohl's 門店時都能激發他們的興趣。所以我們對此感到非常興奮。正如吉爾所說，我的意思是，我們真的在第四季度開始將我們的禮品推向前台，而且它們賣得很好。情人節賣得很好。

Easter sold well. I mean everything we put up in the front has worked out very nicely. But yes, we've also -- we changed graphics in the stores. We removed a lot of the older graphics. We put up more Kohl's branding throughout the store, much more modern look. It's cleaner. It's brighter. So again, it's all part of our improving the in-store experience for the customer.

復活節賣得很好。我的意思是我們放在前面的一切都非常好。但是，是的，我們也——我們改變了商店的圖形。我們刪除了很多舊圖形。我們在整個商店中放置了更多 Kohl's 品牌，外觀更加現代。它更乾淨。它更亮。同樣，這也是我們改善客戶店內體驗的一部分。

Your next question comes from the line of Dana Telsey with Telsey Advisory Group.

你的下一個問題來自 Telsey Advisory Group 的 Dana Telsey。

Very nice progress. As you think about how you wanted to reimagine the store and how you're going to bring, whether it's promotions upfront and whether it's in the back, whether it's adjusting how the store looks and the value messaging. Where are you in that? And how are you thinking about back-to-school? And how you want the execution to look? And then just lastly, one more time just on packing, the digital expenses and the gross margin. How do you frame them going forward? And what levers should we see for adjustments there? .

非常好的進步。當你考慮你想如何重新構想商店以及你將如何帶來時，無論是前期促銷還是在後面，它是否正在調整商店的外觀和價值信息。你在哪裡？你如何看待返校？你希望執行的樣子如何？最後，再一次討論包裝、數字費用和毛利率。你如何看待他們的未來？我們應該看到哪些調整槓桿？ .

I'll do the question number one, and Jill can to question number 2. We've made progress in terms of transforming the stores. Actually, we've made good progress, and we're going to continue to complete it in the second quarter. And as far as back-to-school, we'll probably have a presentation of back-to-school items as you walk into the store, obviously highlighting that time of year. But we're going to continue just to rotate the looks based on seasonality. Like I said, we have Americana upfront for Memorial Day and for July 4. And we've tried to highlight every gift-giving period that we can. But I'm pleased with the way we've -- the team's gotten behind it and with the execution so far.

我會做第一個問題，吉爾可以回答第二個問題。我們在改造商店方面取得了進展。實際上，我們已經取得了不錯的進展，我們將在第二季度繼續完成它。就返校而言，當您走進商店時，我們可能會展示返校商品，顯然會突出一年中的那個時候。但我們將繼續根據季節性輪換外觀。就像我說的，我們在陣亡將士紀念日和 7 月 4 日提前準備了 Americana。我們已經盡力突出每個送禮時間。但我對我們的方式感到滿意 - 團隊支持它以及迄今為止的執行情況。

Yes. And in terms of digital, I think we've always kind of given you the rule of thumb of when we have the penetration change and the impact it has to margins. So you saw it definitely benefited our margin in Q1 with having less of that cost of shipping data. We're going to expect that digital will improve. But we had some outsized penetration post pandemic. We think that that's going to come down as we see people migrate more to the stores, which is a nice benefit for us from a margin perspective.

是的。在數字方面，我認為我們總是給你一些經驗法則，說明我們什麼時候發生滲透變化及其對利潤率的影響。所以你看到它肯定有利於我們在第一季度的利潤，因為傳輸數據的成本更低。我們期望數字技術會有所改善。但是我們在大流行後有一些超大的滲透。我們認為，隨著人們更多地遷移到商店，這種情況將會下降，從利潤率的角度來看，這對我們來說是一個很好的好處。

In terms of leverage overall from a company, I still think our leverage point is around that 1.5% comp. We do expect slight deleverage this year, down 2% to down 4%, and really have a lot of efforts focused on how we can be much more efficient but still serve the customer appropriately. And that's really the lens that we're looking at as we make all these changes in the store is we want to make sure that we're still investing back into that customer experience, also with an associate to be there to help them as well. So I think that's kind of where I would say, overall, the framework still works as it always had. Typically, you're seeing costs should be a headwind because of the digital moving up. But now as that's kind of rightsizing, we're getting that benefit back to your cost of shipping.

就公司的整體槓桿率而言，我仍然認為我們的槓桿率點在 1.5% 左右。我們確實預計今年會出現輕微的去槓桿化，下降 2% 至 4%，並且確實有很多努力集中在如何提高效率但仍能適當地為客戶服務上。當我們在商店中進行所有這些更改時，這確實是我們正在關注的鏡頭，我們希望確保我們仍在投資於客戶體驗，同時還有一名員工在那裡幫助他們.所以我認為這就是我要說的地方，總體而言，該框架仍然像往常一樣工作。通常情況下，你會看到成本應該是一個不利因素，因為數字化正在上升。但現在，由於這是一種合理化，我們正在將這種收益返還給您的運輸成本。

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

你的下一個問題來自 Chuck Grom 和 Gordon Haskett 的對話。

I have one question on the near term, one a little bit more longer term. On the near term, Jill, how should we think about the second quarter comp that's embedded in some of the components that you provided on margin and SG&A? Do you expect it to be within the down 2% to 4% full year range? Or should we think about holding the 4-year stacks from the first quarter to get to that number? Just trying to triangulate where earnings is going to fall out here in 2Q.

我有一個短期問題，一個更長期的問題。在短期內，吉爾，我們應該如何考慮嵌入在您提供的保證金和 SG&A 的某些組件中的第二季度補償？你預計它會在全年下降 2% 到 4% 的範圍內嗎？還是我們應該考慮從第一季度開始持有 4 年的籌碼以達到這個數字？只是試圖對第二季度收益將下降的地方進行三角測量。

Yes. I think what we had said is we expected sales would make some progressive improvement throughout the year. We saw February was our strongest month, as Tom had indicated, and then April really came in where our expectations were. May slightly below our expectations, but we think with all of the strategies that we just outlined, there's a lot in front of us, which we feel that we'll be able to make up in terms of where we are for Q2. So I would say it's still going to be towards the latter part of that comp just because we're saying, hey, we're going to build on that, especially with the benefit of Sephora happening in Q2 and then moving into the back half of the year with a lot more of those strategies.

是的。我認為我們所說的是我們預計全年銷售額將取得一些進步。我們看到 2 月是我們最強勁的月份，正如 Tom 所指出的那樣，然後 4 月真的達到了我們的預期。可能略低於我們的預期，但我們認為，根據我們剛剛概述的所有戰略，我們面前有很多，我們認為我們能夠根據第二季度的情況來彌補。所以我想說它仍然會進入那個 comp 的後半部分，因為我們說，嘿，我們將以此為基礎，特別是在第二季度發生的絲芙蘭的好處然後進入後半部分年度最佳，其中包含更多此類策略。

And even in terms of product, we have a lot of Tom's influence. We have a new chief merchant, and a lot of that influences going to land in the back half of the year. And so that's why we feel confident in the build from that perspective. So I would say that I'd expect Q2 to be more towards the bottom end of the guide as we build our way up for the rest of the year from that perspective, and let our strategies take hold, but that's also why we have confidence in Q2 to build and really get back to our expectations.

甚至在產品方面，我們也有很多湯姆的影響力。我們有一位新的首席商人，很多影響將在今年下半年落地。因此，這就是為什麼我們從這個角度對構建充滿信心。所以我想說的是，隨著我們從這個角度為今年餘下的時間做準備，並讓我們的戰略站穩腳跟，我希望第二季度更接近指南的底端，但這也是我們有信心的原因在第二季度建立並真正回到我們的期望。

Okay. Okay. Great. That's very helpful. And then I guess more for Tom, just when you're doing this clearance strategy throughout the quarter, how is the customer reacting? I mean, clearly, they're not used to seeing that in the stores, but it's sophisticated, sounds smart. I'm just curious how the customer is reacting and responding.

好的。好的。偉大的。這很有幫助。然後我想對湯姆來說更多，當你在整個季度執行這種清倉策略時，客戶的反應如何？我的意思是，很明顯，他們不習慣在商店裡看到這種東西，但它很精緻，聽起來很聰明。我只是好奇客戶是如何反應和回應的。

The customers love clearance, to be honest with you. It's doing very well. I mean, as we said a couple of times already, it really drove our February business. It drove our January business overall. So timely markdowns, there's nothing better than that, okay? Taking the markdowns when the customers really want the product. We are waiting. I mean, we are waiting to take markdowns like we would take fall markdowns in February and March, and we would take spring markdowns in August and September. It was just too late. And taking them on a timely basis, as I said, is really critical to running the business and hopefully, improving our inventory turns.

老實說，客戶喜歡清關。它做得很好。我的意思是，正如我們已經說過幾次的那樣，它確實推動了我們 2 月份的業務。它推動了我們 1 月份的整體業務。如此及時的降價促銷，沒有比這更好的了，好嗎？當客戶真正需要產品時採取降價促銷。我們在等。我的意思是，我們正在等待降價，就像我們將在 2 月和 3 月進行秋季降價，以及在 8 月和 9 月進行春季降價一樣。太晚了。正如我所說，及時獲取它們對於經營業務非常關鍵，並有望改善我們的庫存周轉率。

Okay. And then one more, if I could, just a follow-up on Matt's question earlier about the inventory. Obviously, you can see the balance sheet and the changes in the dollars. But from a systems perspective and an overall approach from the merchants, what else -- what needs to be done? Or do you have the tools in place or it's just a matter of change in the philosophy and approach.

好的。然後，如果可以的話，只是跟進 Matt 早些時候關於庫存的問題。顯然，您可以看到資產負債表和美元的變化。但從系統的角度和商家的整體方法來看，還有什麼——需要做什麼？或者您是否擁有適當的工具，或者這只是理念和方法的變化問題。

We have the processes in place. And we've had the processes in place for a while now. It's just more about, again, having eyeballs on the inventory levels at all times, making sure that we're delivering what we said we're going to deliver. But it's not systemic. It's just more about understanding the importance of having open to buy to chase. It's one of the things that I learned in off-price is if you're open to spend, there's so many benefits with that.

我們有適當的流程。我們已經有一段時間了。再次強調，這更多的是始終關注庫存水平，以確保我們交付的是我們說過要交付的產品。但這不是系統性的。這只是更多地了解開放購買追逐的重要性。這是我在折扣中學到的一件事，如果你願意花錢，那會有很多好處。

Your next question comes from the line of Paul Lejuez with Citigroup.

你的下一個問題來自花旗集團的 Paul Lejuez。

Inventory, just -- dollars. We obviously know but units, can you talk about where you ended with units at the end of the first quarter? And what the plan is as you move throughout the year? How that might look different dollar versus units? And then second, Tom, I guess you've been a longer now.

庫存，只是——美元。我們顯然知道但是單位，你能談談你在第一季度末的單位結束了嗎？你全年搬家的計劃是什麼？美元與單位相比看起來有何不同？其次，湯姆，我想你現在已經很久了。

I'm curious if you've had any change in the way that you think about the number of stores in the fleet, are you finding any multi-store markets where you might have an opportunity to close stores, transfer some of that volume to the stores that remain? Any change in your view on that front?

我很好奇你對車隊中商店數量的看法是否有任何變化，你是否發現任何多店市場，在那裡你可能有機會關閉商店，將部分數量轉移到剩下的商店？您在這方面的看法有什麼變化嗎？

Sure. so from an inventory perspective, our units are actually down more than the dollars just given that we talked a lot about commodity and cost inflation, particularly in the first half of the year, which we do think will benefit from in the latter part of this year. And even with that being said, just in the context that we do have the incremental Sephora stores that we opened, which you understand would come with a lot more units just given the small unique piece of it. So Units were down more, but I would suspect in the back half of the year as we start seeing costs abate that those would be much more in line as we move forward.

當然。所以從庫存的角度來看，我們的單位實際上比美元下降更多，因為我們談論了很多關於商品和成本通脹的問題，特別是在今年上半年，我們確實認為這將在今年下半年受益年。即便如此，就在我們確實擁有我們開設的增量絲芙蘭商店的背景下，你知道只要考慮到它的小獨特部分，它就會帶來更多的單位。所以單位下降更多，但我懷疑在今年下半年，當我們開始看到成本下降時，隨著我們前進，這些成本會更加一致。

We really don't have any changes in terms of how we're approaching the stores overall. Our stores are profitable. And we don't anticipate closing a lot of stores, very few, if any, just because they make money. So we're going to -- right now, we have like 7 stores opening in '23, one of which is a RELO. And right now, we're planning on staying at that typical level. But we're looking to see whether or not we can do more, but we really -- right now, we're just staying as is.

就我們如何接近商店而言，我們真的沒有任何變化。我們的商店是盈利的。而且我們預計不會關閉很多商店，如果有的話，也很少，僅僅因為它們賺錢。所以我們要——現在，我們在 23 年開設了 7 家商店，其中一家是 RELO。而現在，我們正計劃保持在那個典型的水平。但是我們正在尋找我們是否可以做更多的事情，但我們真的 - 現在，我們只是保持原樣。

Your next question comes from the line of Oliver Chen with Cowen.

你的下一個問題來自 Oliver Chen 與 Cowen 的對話。

Historically, as we look back at Kohl's, balancing merchandise margins relative to traffic has been difficult. Also, the company has been somewhat weather-sensitive. And then third, driving women's and younger customer apparel. That's been an opportunity.

從歷史上看，當我們回顧 Kohl's 時，平衡商品利潤率與客流量一直很困難。此外，該公司對天氣有些敏感。第三，推動女性和年輕客戶的服裝。那是一個機會。

Tom would love your take on those features and how you're thinking about that and if there are valid risk factors in terms of what you see going forward? And then there's lots of really awesome ingredients for changes you're making. Could you rank order them in some way just in terms of the most impact, perhaps in the second half relative to longer term and/or lower hanging fruit versus longer term?

湯姆會喜歡你對這些功能的看法，你是如何考慮的，以及你認為未來是否存在有效的風險因素？然後有很多非常棒的成分可以讓你做出改變。您能否僅根據影響最大的方式對它們進行排序，也許是在下半年相對於長期和/或相對於長期而言懸而未決的成果？

And then lastly, Jill, you've had an iconic Kohl's cash program and personalization have been efforts in the past. I guess what's different now? And how you'll manifest that relative to all the AI we're seeing and the data that you do have?

最後，Jill，你有一個標誌性的 Kohl's 現金計劃和個性化，過去一直在努力。我想現在有什麼不同？相對於我們看到的所有 AI 和您擁有的數據，您將如何體現這一點？

Well, let me start -- I mean that's a lot of questions. Let me first start with what are the priorities? Obviously, continuing our relationship with Sephora. I mean, continuing to build that business overall. Having a strong beauty business is really key to growing some of the business you talk about -- you talked about. I mean having a good beauty business should result in having a very strong women's business overall.

好吧，讓我開始——我的意思是有很多問題。讓我首先從優先事項開始？顯然，繼續我們與絲芙蘭的關係。我的意思是，繼續全面建設該業務。擁有強大的美容業務確實是發展您所談論的某些業務的關鍵 - 您談到過。我的意思是擁有良好的美容業務應該會導致整體女性業務非常強大。

We are working hard on our assortments in women's. I just reviewed the back-to-school assortments for young women's and it looks really terrific. It's a good mixture of key items, some great fashion items as well. So we feel very good about that as we go through the back-to-school period overall.

我們正在努力打造女裝系列。我剛剛回顧了年輕女性的返校分類，看起來真的很棒。它很好地融合了關鍵單品，以及一些很棒的時尚單品。因此，在整個返校期間，我們對此感覺非常好。

Our other priorities are really to continue to grow the stores business. It's our business, and we really feel that it will help our overall growth by getting that stabilized and growing that piece of it as well as the digital business. We talked about that earlier. And we're committed to it. We're definitely committed to it. The performance in the first quarter wasn't what we wanted, but we see progress as we go throughout the year. But the other priorities is the home business, and we're going to grow that through capturing businesses that we're underpenetrated in, like wall art and pat and home decor overall. And the gifting piece, as we talked about before, we feel very good about that, very good about impulse business overall. And trying to get our mix improved in terms of more casual versus dress.

我們的其他優先事項實際上是繼續發展商店業務。這是我們的業務，我們真的認為它將通過穩定和發展這一部分以及數字業務來幫助我們的整體增長。我們之前談過這個。我們致力於此。我們絕對致力於此。第一季度的表現不是我們想要的，但我們看到全年都在進步。但另一個優先事項是家庭業務，我們將通過捕捉我們未充分滲透的業務來發展它，比如牆壁藝術和拍拍以及整體家居裝飾。正如我們之前談到的那樣，贈品我們對此感覺非常好，整體上對沖動型業務非常滿意。並試圖讓我們的組合在更休閒而不是正裝方面得到改善。

We've already seen a lot of progress in terms of moving the dress business because we serve a broad audience, and we need to have product for everywhere. But again, we're still committed to the active business, but we're looking for a rebalance. So I'll let Jill talk about the gross margin.

我們已經在推動服裝業務方面取得了很大進展，因為我們服務於廣泛的受眾，我們需要為所有地方提供產品。但同樣，我們仍然致力於活躍的業務，但我們正在尋求重新平衡。所以我讓吉爾談談毛利率。

Yes. So I think overall, from your question around margin and traffic and Kohl's Cash, I think we're still going to deliver value to our customers. And that, I think, is really what is going to be a key driver for why they come to Kohl's. But that combined with everything that Tom outlined is really that great product. And really finding places in the white space we haven't participated in, such as gifting, such as home decor, such as impulse. We're going to expand on pat. Outdoor continues to be great for us. .

是的。所以我認為總的來說，從你關於利潤率和流量以及 Kohl's Cash 的問題來看，我認為我們仍然會為我們的客戶創造價值。而且，我認為，這才是他們來到 Kohl's 的關鍵驅動因素。但這與 Tom 概述的所有內容相結合，確實是一個很棒的產品。並真正在空白中找到我們沒有參與的地方，比如送禮，比如家裝，比如衝動。我們將擴展 pat。戶外對我們來說仍然很棒。 .

So those are all places that we have opportunity. And then, of course, as you mentioned with women, with Sephora, we're bringing in a much younger customer, they're new to Kohl's, and so we have a big opportunity to have them walk across the aisle in the shop into women's. And so we're really focused on elevating that product. But it all starts with price. And I think that's why simplified pricing is really important.

所以這些都是我們有機會的地方。然後，當然，正如你提到的女性和絲芙蘭，我們正在吸引更年輕的顧客，他們是 Kohl's 的新顧客，所以我們有很大的機會讓他們穿過商店的過道進入女性的。因此，我們真正專注於提升該產品。但這一切都始於價格。我認為這就是簡化定價非常重要的原因。

We don't want it to be confusing, having to understand the stackability of our offers. So we want them to understand in a simplified way the value that Kohl's can present to them. And then Kohl's Cash plays a key role because it bounces them back in. It causes another trip. It brings back that traffic, and has been a part of our ecosystem for a really long time. It's part of what is a great loyalty leading program in the industry, and we're going to continue to leverage that as we move forward as well.

我們不希望它令人困惑，必須了解我們產品的可堆疊性。因此，我們希望他們以一種簡單的方式了解 Kohl's 可以為他們呈現的價值。然後 Kohl's Cash 發揮了關鍵作用，因為它將它們反彈回來。它導致了另一次旅行。它帶回了流量，並且很長一段時間以來一直是我們生態系統的一部分。這是業內領先的忠誠度計劃的一部分，我們也將在前進的過程中繼續利用它。

So I think between the white space that we haven't filled and really the focus on products that Tom and our new merchant has brought into Kohl's together with all the initiatives that we outlined today. It feels great that we'll hit the margins that we outlined as well as continue to drive traffic into the stores.

因此，我認為在我們尚未填補的空白和真正關注湯姆和我們的新商人帶入科爾的產品以及我們今天概述的所有舉措之間。感覺很棒，我們將達到我們概述的利潤率，並繼續推動商店的客流量。

Okay. One follow-up. Tom, on the initiatives across home, how do you see your merchant organization evolving? Because a lot of this sounds new. And I'm just curious about the capabilities you have versus the ones you want, and how that intersects with the constant need for speed and agility. The open-to-buy programming is also new and different. That's a different kind of skill set perhaps, but it sounds like you're laser-focused on inventory as well as having a lot of direct reports.

好的。一個跟進。湯姆，關於國內的舉措，您如何看待您的商家組織的發展？因為很多這聽起來很新鮮。我只是好奇你擁有的能力與你想要的能力，以及它如何與對速度和敏捷性的持續需求相交。開放購買的編程也是新的和不同的。這也許是一種不同的技能組合，但聽起來您非常專注於庫存，並且有很多直接下屬。

Yes. As far as the merchandise organization, as always, we work on how many buyers we want in the organization. So we may -- going forward, that might be part of the plan just in terms of targeting more areas with more people. But as far as leadership goes, we feel very good about where we stand today. Again, as I mentioned a couple of times, everyone is really, really receptive to new things. Our job is to teach, train and develop, and that's what we're focused on. But right now, I feel very good about the merchant organization that we have in place, and they can get it done.

是的。就商品組織而言，一如既往，我們致力於組織中需要多少買家。所以我們可能 - 展望未來，這可能只是計劃的一部分，只是針對更多人的更多地區。但就領導力而言，我們對今天的立場感到非常滿意。同樣，正如我多次提到的，每個人都非常非常容易接受新事物。我們的工作是教學、培訓和發展，這就是我們關注的重點。但現在，我對我們現有的商業組織感覺非常好，他們可以完成它。

Well, thank you, everyone, for listening on the call today. Have a good day.

好吧，謝謝大家今天的電話會議。祝你有美好的一天。

That will conclude today's meeting. You may now disconnect.

今天的會議到此結束。您現在可以斷開連接。