勞氏公司 (LOW) 2024 Q1 法說會逐字稿

Good morning, everyone. Welcome to Lowe's Companies First Quarter 2024 Earnings Conference Call. My name is Rob, and I'll be your operator for today's call. As a reminder, this conference is being recorded. I'll now turn the call over to Kate Pearlman, Vice President of Investor Relations and Treasurer.

大家，早安。歡迎參加勞氏公司 2024 年第一季財報電話會議。我叫羅布，我將擔任您今天通話的接線生。提醒一下，本次會議正在錄製中。我現在將把電話轉給投資者關係副總裁兼財務主管凱特·皮爾曼（Kate Pearlman）。

Thank you, and good morning. Here with me today are Marvin Ellison, Chairman and Chief Executive Officer; Bill Boltz, our Executive Vice President, Merchandising; Joe McFarland, our Executive Vice President, Stores; and Brandon Sink, our Executive Vice President and Chief Financial Officer.

謝謝你，早安。今天與我在一起的有董事長兼執行長馬文‧艾里森 (Marvin Ellison)； Bill Boltz，我們的行銷執行副總裁； Joe McFarland，我們的商店執行副總裁；以及我們的執行副總裁兼財務長布蘭登·辛克（Brandon Sink）。

I would like to remind you that our notice regarding forward-looking statements is included in our press release this morning, which can be found on Lowe's Investor Relations website. During this call, we will be making comments that are forward-looking, including our expectations for fiscal 2024. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties and important factors, including those discussed in the risk factors, MD&A and other sections of our annual report on Form 10-K and our other SEC filings. Additionally, we'll be discussing certain non-GAAP financial measures. A reconciliation of these items to U.S. GAAP can be found in the quarterly earnings section of our Investor Relations website.

我想提醒您，我們有關前瞻性陳述的通知包含在今天上午的新聞稿中，您可以在勞氏投資者關係網站上找到該新聞稿。在本次電話會議中，我們將發表前瞻性評論，包括我們對2024 財年的預期。的結果存在重大差異。此外，我們也將討論某些非公認會計準則財務指標。這些項目與美國公認會計原則（U.S. GAAP）的調節可以在我們投資者關係網站的季度收益部分找到。

Now I'll turn the call over to Marvin.

現在我將把電話轉給馬文。

Thank you, Kate, and good morning to everyone, and thank you for joining us today. First quarter sales were $21.4 billion with comparable sales down 4.1% from the same period last year. Despite the continued pressure in DIY big ticket discretionary spending across the industry, we delivered better-than-expected spring seasonal sales. Overall, we performed well in a challenging home improvement environment, as we adjusted our strategy to win the early spring customer and take share in key categories with data-driven marketing campaigns and our compelling seasonal assortment, which includes our industry-leading outdoor power equipment lineup strengthened by the launch of Toro.

謝謝凱特，大家早安，謝謝您今天加入我們。第一季銷售額為 214 億美元，可比銷售額較去年同期下降 4.1%。儘管整個行業 DIY 大宗可自由支配支出持續面臨壓力，但我們的春季銷售業績好於預期。總體而言，我們在充滿挑戰的家居裝修環境中表現良好，我們調整了策略，以贏得早春客戶，並透過數據驅動的營銷活動和我們引人注目的季節性產品（包括行業領先的戶外動力設備）在關鍵類別中佔據份額Toro 的推出增強了產品陣容。

We also gained traction with our total home strategy reflected in our positive Q1 growth in Pro and online sales. In addition, we improved customer satisfaction while also maintaining a disciplined focus on our perpetual productivity improvement or PPI initiatives across all functional areas of the business. Overall, we're excited about our spring strategy, and we're pleased with how our SpringFest campaign resonated with customers, especially in smaller ticket lawn and garden projects. The combination of the right brands, compelling offers, strong store execution and more nimble marketing helped us capitalize on this key time of year. Bill and Joe will provide more detail on our spring and PPI efforts later in the call. Now turning to Pro.

我們的整體家居策略也獲得了關注，這反映在我們第一季專業版和線上銷售的正面成長。此外，我們在提高客戶滿意度的同時，也嚴格關注業務所有職能領域的永久性生產力改善或 PPI 計畫。總的來說，我們對我們的春季策略感到興奮，我們對我們的春季節活動與客戶的共鳴感到高興，特別是在較小的草坪和花園項目中。正確的品牌、引人注目的優惠、強大的商店執行力和更靈活的行銷相結合，幫助我們抓住了一年中的這個關鍵時刻。 Bill 和 Joe 將在稍後的電話會議中提供有關我們春季和 PPI 工作的更多詳細資訊。現在轉向專業版。

As I mentioned earlier, we delivered positive Pro comps in Q1 as our strategic investments to improve the Pro experience are driving increased sales and improved customer engagement. Specifically, investments to improve service levels as well as our expanded brand portfolio that now includes client tools are strengthening our relationships with this core customer. This customer has proven resilient as reflected in the recent Pro survey with healthy backlogs in line with last year. Our strategy continues to focus on taking share with the small- to medium-sized pros such as repair and remodel contractors, property managers and trace people.

正如我之前提到的，我們在第一季提供了積極的專業補償，因為我們改善專業體驗的策略投資正在推動銷售成長和客戶參與度的提高。具體來說，提高服務水準的投資以及我們擴大的品牌組合（現在包括客戶工具）正在加強我們與該核心客戶的關係。正如最近的 Pro 調查所反映的那樣，該客戶已證明具有彈性，積壓數量與去年一致。我們的策略繼續專注於與中小型專業人士（例如維修和改造承包商、物業經理和追蹤人員）分享份額。

We estimate these Pros represent half of the $500 billion Pro market, which remains highly fragmented. We are striving to provide a high level of service with the small- to medium-sized pros as we continue to build trust and credibility. And we continue to invest in Pro growth, which includes expanding our capabilities to handle larger order delivery to the job site while also opening new Lowe's Pro supply branches around the country. There is still significant runway ahead of us to grow our sales with these customers while also leveraging our retail footprint to drive profitability. Now shifting to online.

我們估計這些專業人士佔 5000 億美元專業市場的一半，而該市場仍然高度分散。我們不斷建立信任和信譽，努力為中小型專業人士提供高水準的服務。我們繼續投資於 Pro 的成長，其中包括擴大我們處理更大訂單交付到工作現場的能力，同時也在全國各地開設新的 Lowe's Pro 供應分店。我們還有很長的路要走，以增加與這些客戶的銷售，同時利用我們的零售足跡來提高獲利能力。現在轉向線上。

In the first quarter, online sales were up approximately 1%. Our ongoing improvement in our conversion rates in Q1 offset continued pressure in bigger ticket DIY categories. This quarter, we expanded our same-day delivery options of partnering with DoorDash and Shipt. Lowe's is the first home improvement retail partner on these platforms and their members now have quick and convenient access to wide assortment of home improvement products across the country. These new partnerships complement our existing same-day delivery options with Instacart in addition to our same-day delivery option on Lowes.com using our last mile partner OneRail.

第一季度，線上銷售額成長約 1%。我們第一季轉換率的持續提高抵消了大門票 DIY 類別的持續壓力。本季度，我們擴大了與 DoorDash 和 Shipt 合作的當日送達選項。 Lowe's 是這些平台上的首家家居裝修零售合作夥伴，其會員現在可以快速方便地獲得全國各種家居裝修產品。除了我們在 Lowes.com 上使用最後一哩合作夥伴 OneRail 提供的當日送達選項之外，這些新的合作夥伴關係還補充了我們與 Instacart 現有的當日送達選項。

Our objective is simple, giving customers access to the home improvement products they need, however they choose to shop. And we're tailoring our digital experience to support the unique needs of different customer shopping journeys based on the type of project. And we're also using virtual and mixed reality to make it easier for customers to explore and visualize different possibilities for their home. Another exciting step forward for Lowe's this quarter was the national rollout of our DIY loyalty program called MyLowe's Rewards. This program is designed to reward customers for choosing Lowe's for the home improvement needs by earning points toward MyLowe's Money, providing free standard shipping as well as other offers and gifts.

我們的目標很簡單，讓客戶能夠獲得他們需要的家居裝修產品，無論他們選擇如何購物。我們正在根據專案類型客製化我們的數位體驗，以支援不同客戶購物旅程的獨特需求。我們也使用虛擬和混合現實，讓客戶更輕鬆地探索和想像他們的家的不同可能性。 Lowe's 本季邁出的另一個激動人心的一步是在全國推出名為 MyLowe's Rewards 的 DIY 忠誠度計劃。該計劃旨在獎勵選擇 Lowe's 滿足家居裝修需求的顧客，透過賺取 MyLowe's Money 積分、提供免費標準送貨以及其他優惠和禮品。

In addition, customers can also save 5% every day on eligible purchases with the MyLowe's Rewards credit card. As MyLowe's Rewards program matures, the purchase data will allow us to better understand the specific needs of each customer and tailor offers to their individual preferences. We're pleased with the early customer adoption and the successful launch, both in-store and online. And our frontline associates have also rallied around this campaign, and I'd like to thank them for their successful efforts to promote MyLowe's Rewards and educate our customers on the benefits.

此外，顧客使用 MyLowe's Rewards 信用卡進行符合資格的購物還可每天節省 5%。隨著 MyLowe 獎勵計劃的成熟，購買數據將使我們能夠更好地了解每個客戶的特定需求，並根據他們的個人喜好量身定制優惠。我們對客戶的早期採用和店內和網上的成功發布感到高興。我們的第一線員工也圍繞著這項活動團結起來，我要感謝他們為推廣 MyLowe's Rewards 並教育我們的客戶了解其好處所做的成功努力。

Now speaking of the team, we're excited to welcome the best soccer player in the world, Lionel Messi to our Lowe's home team lineup. We're also extending our reach to more sports fans beyond the football fans we connect with as the official home improvement retailer of the NFL. We're now striving to reach the 34 million soccer fans in the U.S. who are not NFL fans and we're excited by the rapid growth of soccer fans in the U.S. This exciting alliance along with our partnership with MLS Club Inter Miami CF and the Copa America 2024 USA tournament gives us the opportunity to build trust and credibility with a broader customer base. These partnerships will help us bring new customers to Lowe's and offer some unique experiences and rewards for these very passionate fans.

現在說到球隊，我們很高興歡迎世界上最好的足球員萊昂內爾·梅西加入我們勞氏的主隊陣容。除了我們作為 NFL 官方家居裝修零售商所聯繫的足球迷之外，我們還將我們的影響力擴展到更多的體育迷。我們現在正在努力吸引 3400 萬非 NFL 球迷的美國球迷，我們對美國球迷的快速增長感到興奮。與更廣泛的客戶群建立信任和信譽。這些合作關係將幫助我們為勞氏帶來新客戶，並為這些非常熱情的粉絲提供一些獨特的體驗和獎勵。

Now I'd like to provide a quick update on our view of the macro. Uncertainty around interest rate cuts, stubborn inflationary pressures and a consumer still showing a preference towards spending on discretionary services and experiences continue to weigh on the DIY home improvement demand. And the outlook for lower mortgage rates and improved housing turnover remains uncertain. Real wage growth and home price appreciation are solid, but the home improvement customer is still on the sideline, expressing concerns about higher cost of living and the state of the overall economy.

現在我想快速更新一下我們對宏觀的看法。降息的不確定性、頑固的通膨壓力以及消費者仍然偏好可自由支配的服務和體驗支出，繼續影響 DIY 家居裝修需求。抵押貸款利率下降和房屋成交量改善的前景仍然不確定。實質薪資成長和房價上漲穩健，但家裝客戶仍持觀望態度，表達了對生活成本上升和整體經濟狀況的擔憂。

And while the near term is still challenging to read, we remain confident in the medium- to long-term outlook for our industry as our core demand drivers are all supportive of growth. Our continued commitment on our PPI initiatives, combined with our ongoing investments in our Total Home Strategy not only allow us to perform efficiently in this challenging macro environment, it also positions Lowe's for accelerated market share growth when the home improvement market recovers.

儘管近期仍充滿挑戰，但我們對產業的中長期前景仍然充滿信心，因為我們的核心需求驅動因素都支持成長。我們對 PPI 計劃的持續承諾，加上對整體家居策略的持續投資，不僅使我們能夠在充滿挑戰的宏觀環境中高效運作，而且還使 Lowe's 在家居裝修市場復甦時能夠加速市場份額增長。

Before I close, I'd like to extend my appreciation to our frontline associates for their continued hard work and commitment to Lowe's and to our communities. I've visited stores in 8 of our 15 geographic regions in the first quarter and our frontline associates are simply outstanding.

在結束之前，我要向我們的第一線員工表示感謝，感謝他們持續的辛勤工作以及對 Lowe's 和我們社區的承諾。第一季我走訪了 15 個地理區域中 8 家的商店，我們的第一線員工非常出色。

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

然後，我會將電話轉給比爾。

Thanks, Marvin, and good morning, everyone. In spite of a challenging home improvement backdrop in Q1, we are pleased with our early spring sales as customers responded to our strong spring assortment and compelling offers. And our improved brand and service offerings resonated with our Pro customers, which led to positive broad-based Pro comps across all 3 geographic divisions.

謝謝馬文，大家早安。儘管第一季的家居裝修環境充滿挑戰，但我們對早春銷售感到滿意，因為客戶對我們強大的春季品種和引人注目的優惠做出了反應。我們改進的品牌和服務產品與我們的專業客戶產生了共鳴，這導致了所有 3 個地理部門的積極廣泛的專業競爭。

This year, our SpringFest strategy went more local than ever by using weather-triggered digital marketing as the spring season broke across different regions. In Q1, we also introduced sneak peaks for SpringFest, featuring doorbusters that were focused on driving traffic into our stores and online with targeted offers with seasonally relevant categories such as soils, mulch, and live goods. Winning the customer with these early seasonal purchases is important as they will often come back multiple times throughout the spring for the remainder of their outdoor project needs. Now turning to our results in hardlines.

今年，隨著春季在不同地區的爆發，我們的春季節策略比以往任何時候都更加本地化，​​利用天氣觸發的數位行銷。在第一季度，我們還推出了SpringFest 搶先體驗活動，重點推出了針對季節性相關類別（如土壤、覆蓋物和生鮮商品）的有針對性的優惠活動，為我們的商店和網上帶來流量。透過這些早期的季節性購買來贏得客戶非常重要，因為他們通常會在整個春季多次回來以滿足剩餘的戶外專案需求。現在轉向我們在強硬派中的結果。

These marketing efforts, paired with the right brands and strong execution helped us deliver positive comp sales on a 1-year and 2-year basis in lawn and garden. Growth was driven by smaller ticket projects in landscape products and live goods, which resulted in increases in both comp sales and transactions in these categories. We are also pleased to be gaining traction with our own Sta-Green private brand, as customers have responded to the quality and the value offered in these lawn care products. And Sta-Green helps provide the consumer with a beautiful lawn and that they can be proud of at a price that won't break the bank.

這些行銷努力，加上正確的品牌和強大的執行力，幫助我們在草坪和花園的一年和兩年內實現了積極的銷售業績。景觀產品和生活用品的小型門票項目推動了成長，從而導致這些類別的贈品銷售和交易增加。我們也很高興我們自己的 Sta-Green 自有品牌獲得關注，因為客戶對這些草坪護理產品的品質和價值做出了回應。 Sta-Green 幫助消費者提供美麗的草坪，讓他們以實惠的價格感到自豪。

For the first time this spring, customers can also purchase select plants and live goods online and have them delivered through lowes.com. Garden products are already some of the most searched items on our website and now customers can conveniently shop for what they need and even order them from their backyard. And as Marvin mentioned, we are excited about our powerful new spring outdoor power equipment lineup as we introduced Toro to our lineup this year.

今年春天，客戶首次可以在線上購買精選植物和生鮮商品，並透過 lowes.com 進行送貨。花園產品已經是我們網站上搜尋次數最多的產品之一，現在客戶可以輕鬆購買他們需要的東西，甚至可以從他們的後院訂購。正如 Marvin 所提到的，當我們今年將 Toro 引入我們的陣容時，我們對我們強大的新春季戶外動力設備陣容感到興奮。

Lowe's now offers the largest selection of Toro products of any national retailer with innovations like SmartStow, which allows owners to store their mower upright, reducing the storage footprint by up to 70%, including patented Briggs & Stratton technology, so it doesn't leak oil when stored in this position and with personal pace, a best-in-class self-propelled system that propels the mower at the speed the user is walking. We added these innovative Toro products to an already unmatched brand arsenal, which included EGO, SKIL, Cobalt, Husqvarna, CRAFTSMAN and John Deere. These strong brands helped us deliver positive comp sales in both gas and battery-powered walk behind lawn mowers as well as handheld outdoor power equipment. Now shifting gears to building products.

Lowe's 現在提供全國零售商中最齊全的Toro 產品選擇，並採用SmartStow 等創新技術，讓業主能夠直立存放割草機，從而減少高達70% 的存儲空間，其中包括Briggs & Stratton 專利技術，因此不會洩漏當存放在這個位置並按照個人步調時，油是一流的自走式系統，可以以用戶行走的速度推動割草機。我們將這些創新的 Toro 產品添加到已經無與倫比的品牌庫中，其中包括 EGO、SKIL、Cobalt、Husqvarna、CRAFTSMAN 和 John Deere。這些強大的品牌幫助我們在燃氣和電池驅動的手推式割草機以及手持式戶外動力設備方面實現了積極的銷售業績。現在正轉向打造產品。

Our Pro customers remain busy, which supported positive comps in building materials, with strength in roofing, concrete and block, drywall, and insulation, all helping to fuel that growth. Our added focus on inventory depth and improved in-stocks along with our localization efforts with tailored assortments to the market, continue to give Pro customers the confidence that Lowe's will have what they need to complete the job. Repair and maintenance categories such as water heaters, also continue to perform well, especially with innovative products like A.O. Smith's 120-volt plug-in heat pump water heaters. These Energy Star certified models plug into a standard wall outlet for easy installation and can save homeowners over $600 a year in utility bills compared to a standard electric water heater.

我們的專業客戶仍然很忙，這支持了建築材料的積極競爭，在屋頂、混凝土和砌塊、乾牆和絕緣材料方面具有優勢，所有這些都有助於推動成長。我們更加重視庫存深度和改善庫存，以及我們針對市場定製品種的本地化努力，繼續讓 Pro 客戶相信 Lowe's 將擁有完成工作所需的東西。熱水器等維修和保養類別也持續表現良好，尤其是 A.O. 等創新產品。史密斯的 120 伏特插電式熱泵熱水器。這些獲得能源之星認證的型號可插入標準牆壁插座，安裝方便，與標準電熱水器相比，每年可為房主節省 600 多美元的水電費。

In Electrical, we are pleased with the performance of client tools, the #1 tool brand for the electrical and HVAC professional. New products like the client circuit breaker finder, make it easy for electricians to quickly identify which breakers and outlets are connected to the breaker panel without turning the breaker on and off. The introduction and expansion of brands like client tools not only drive sales, it also allows us to rebuild the credibility with our Pro customers.

在電氣領域，我們對客戶端工具的性能感到滿意，客戶端工具是電氣和暖通空調專業人士的第一個工具品牌。客戶端斷路器查找器等新產品使電工可以輕鬆快速識別哪些斷路器和插座連接到斷路器面板，而無需打開和關閉斷路器。客戶端工具等品牌的引入和擴展不僅可以推動銷售，還使我們能夠重建專業客戶的信譽。

Turning to home decor, where softer demand in DIY bigger ticket interior categories like flooring, kitchens and bath and appliances persisted. Trends in these categories were largely in line with the results we saw in the second half of last year. Our customers continue to look for value, especially given the persistent inflationary pressures. And our private brand products provide them with both value and style as they look to refresh their homes. Products like our allen + roth Harlow kitchen faucet, which is simple to install with 3 easy steps. And what is really unique, you don't have to go below the sink to install it. Our STAINMASTER PetProtect carpet with leak defense backing helps prevent spills and keeps pet accidents from seeping through to the rug pad or sub floor. STAINMASTER is the most trusted brand in carpet and is exclusive to Lowe's. Turning to appliances.

轉向家居裝飾，地板、廚房、浴室和電器等 DIY 大件內裝類別的需求持續疲軟。這些類別的趨勢與我們去年下半年看到的結果基本一致。我們的客戶繼續尋找價值，特別是考慮到持續的通膨壓力。我們的自有品牌產品為他們提供價值和風格，幫助他們煥然一新的家居。像我們的 allen + roth Harlow 廚房水龍頭這樣的產品，只需 3 個步驟即可輕鬆安裝。真正獨特的是，您無需走到水槽下方即可安裝它。我們的 STAINMASTER PetProtect 地毯帶有防漏背襯，有助於防止溢出並防止寵物事故滲入地毯墊或底層地板。 STAINMASTER 是地毯領域最值得信賴的品牌，為 Lowe's 獨家擁有。轉向電器。

We are expanding our market share as we continue to lead the industry with the broadest assortment, compelling values and fast and convenient delivery supported by our market delivery model, which creates a best-in-class fulfillment solution, including next-day delivery in most markets, which is an important option for a customer replacing a broken appliance. Average selling prices remain pressured as we cycle the reintroduction of pre-pandemic promotions across the industry as well as the continued slowdown in discretionary demand. Despite these near-term challenges, our appliance suppliers continue to improve selection with innovation and amazing new products.

我們正在擴大我們的市場份額，因為我們繼續以最廣泛的品種、引人注目的價值以及由我們的市場交付模式支持的快速便捷的交付引領行業，該模型創建了一流的履行解決方案，包括大多數國家的次日達交付市場，這是客戶更換損壞設備的重要選擇。隨著整個產業重新推出新冠疫情前的促銷活動以及可自由支配需求的持續放緩，平均售價仍面臨壓力。儘管面臨這些近期挑戰，我們的電器供應商仍繼續透過創新和令人驚嘆的新產品來改善選擇。

A great example is the Lowe's exclusive GE Freestanding Range with easy wash, a range with the first of its kind removable oven liner that is dishwasher safe, making for easy cleanup. Moving on to merchandising productivity. Our teams are continuing to execute against our extensive perpetual productivity improvement or PPI road map. This quarter, I'd like to highlight the productivity benefits of one initiative, the progress we've made in expanding our private brand penetration.

一個很好的例子是 Lowe's 獨有的易於清洗的 GE 獨立式系列，該系列首款可拆卸烤箱內襯可用洗碗機清洗，易於清潔。轉向銷售生產力。我們的團隊正在繼續執行我們廣泛的永久性生產力改善或 PPI 路線圖。本季度，我想強調一項舉措的生產力優勢，即我們在擴大自有品牌滲透率方面取得的進展。

The core focus of our private brand strategy is to offer our brand-agnostic DIY customers with style and quality at a great value. Not only do these products provide this for our customers. the product margin rates for our private branded products are typically significantly higher on average compared to the national brand counterparts. As we build out a compelling private brand portfolio from allen + roth decor products, and STAINMASTER products within flooring and paint to Sta-Green lawn care products to Cobalt tools, outdoor power equipment and storage solutions, we are delivering value to the DIY customer and productivity to the bottom line.

我們自有品牌策略的核心重點是為不依賴品牌的 DIY 客戶提供超值的風格和品質。這些產品不僅為我們的客戶提供了這一點。與國內品牌同業相比，我們自有品牌產品的平均產品利潤率通常明顯較高。當我們建造引人注目的自有品牌組合（從allen + roth 裝飾產品、地板和塗料領域的STAINMASTER 產品、Sta-Green 草坪護理產品到Cobalt 工具、戶外動力設備和存儲解決方案）時，我們正在為DIY 客戶和客戶創造價值。

As I close, I'd like to extend my appreciation once again to our vendors for their ongoing partnership, in particular, their support of our merchandising services team. Our 30,000 MST associates keep our shelves stocked, execute resets and enable our Red Vest associates to spend more time serving our customers. We allocate 100% of our MST funds into this program and are pleased with the impact it is having on our customer experience and associate productivity. And I'd also like to thank our merchants for their hard work and dedication as they navigate this dynamic macro environment.

在結束之際，我想再次向我們的供應商表示感謝，感謝他們持續的合作夥伴關係，特別是他們對我們銷售服務團隊的支持。我們的 30,000 名 MST 員工保持貨架庫存充足，執行重置，並使我們的紅背心員工能夠花更多時間為客戶服務。我們將 100% 的 MST 資金分配給該計劃，並對它對我們的客戶體驗和員工生產力的影響感到滿意。我還要感謝我們的商家在這個充滿活力的宏觀環境中的辛勤工作和奉獻精神。

Thank you, and I'll now turn the call over to Joe.

謝謝，我現在將電話轉給喬。

Thank you, Bill. Good morning, everyone. Let me begin by thanking our frontline associates for their hard work this quarter. Customer satisfaction scores were up 100 basis points over last year as we continue to improve our shopping experience for homeowners and pros while at the same time, driving productivity across our company. As we improve our customers' experience, we also remain focused on our associates' experience and our journey to become the employer of choice in retail.

謝謝你，比爾。大家，早安。首先，我要感謝第一線員工本季的辛勤工作。隨著我們不斷改善房主和專業人士的購物體驗，同時提高整個公司的生產力，客戶滿意度得分比去年提高了 100 個基點。在改善客戶體驗的同時，我們也持續關注員工的體驗以及成為零售業首選雇主的旅程。

An example of our commitment to our associates was our decision to close our stores on Easter for the fifth consecutive year, giving our associates a well-deserved day off to spend with their loved ones, one of many ways we work to show our appreciation. We are seeing strong spring staffing levels and higher retention as we continue to invest in wages, associate development and internal mobility. And we have a best-in-class leadership development training program, including a store replicate at our Lowe's University training center, which gives store leaders hands on leadership practice and coaching.

我們對員工承諾的一個例子是，我們決定連續第五年在復活節關閉我們的商店，為我們的員工提供當之無愧的一天假期，與他們所愛的人共度時光，這是我們表達謝意的多種方式之一。隨著我們繼續投資於工資、員工發展和內部流動性，我們看到了強勁的春季員工配置水準和更高的留任率。我們擁有一流的領導力發展培訓計劃，包括勞氏大學培訓中心的商店複製項目，為商店領導者提供領導實踐和指導。

We have also implemented new weekly routines that help our department supervisors strengthen selling culture and skill set in their stores and prepare these leaders for their next step in their career. As a reminder, more than 80% of our store leadership positions were filled internally last year and nearly 90% of our store leaders started in hourly roles. Another way we are strengthening our selling culture is through our modernized store operating system, which is enabling our associates to close omnichannel sales from within our stores and help customers get everything they came for. So when a customer is looking for something out of stock or can't find the specific style they want in store, our associates can search our online assortment to find what they need and help them seamlessly check out an order that combines in-store and online items.

我們還實施了新的每週例程，幫助我們的部門主管加強商店的銷售文化和技能，並為這些領導者職業生涯的下一步做好準備。提醒一下，去年我們超過 80% 的商店領導職位都是內部填補的，近 90% 的商店領導者都是從小時工開始的。我們加強銷售文化的另一種方式是透過我們現代化的商店作業系統，這使我們的員工能夠在商店內完成全通路銷售，並幫助客戶獲得他們想要的一切。因此，當顧客正在尋找缺貨的商品或在商店中找不到他們想要的特定款式時，我們的員工可以搜尋我們的線上產品組合以找到他們需要的商品，並幫助他們無縫地查看結合了店內和商店的訂單。

Beyond supporting sales, our store teams remain laser-focused on driving productivity. A common misconception that we are hearing is that Lowe's must be nearing the end of our productivity journey given how much progress we've made in the last 5 years. This couldn't be further from the truth. Since this can be hard to see from the outside looking in, let me share some examples. First, we are only 1/3 of the way through our multiyear transformation of the front end of our stores, which includes our proprietary self-checkout registers, a significantly improved buy online pick up in store experience, a streamlined returns process and an optimized front-end selling space.

除了支援銷售之外，我們的商店團隊仍然專注於提高生產力。我們聽到的一個常見誤解是，鑑於我們在過去 5 年中取得的進步，Lowe's 一定已接近生產力之旅的終點。這與事實相差甚遠。由於從外部看很難看到這一點，所以讓我分享一些例子。首先，我們對商店前端的多年改造僅完成了 1/3，其中包括我們專有的自助結帳登記機、顯著改善的在線購買店內提貨體驗、簡化的退貨流程和優化的退貨流程 前端銷售空間。 。

Second, we have significantly reduced our return and cancellation rate through improved vendor partnerships, decreased damages and a clear and consistent returns process that's now systematically applied through enhanced technology. Third, we are also enhancing our shrink prevention ecosystem to maintain our best-in-class shrink performance including a new AI technology in partnership with NVIDIA that prompts customers to scan missed items during self-checkout. We're also piloting new product protection with a product security door that unlocks with the customer's phone number instead of needing to find an associate with a traditional key. These are just a few examples from our extensive road map of PPI initiatives.

其次，我們透過改善供應商合作夥伴關係、減少損失以及現在透過增強技術系統應用的清晰一致的退貨流程，顯著降低了退貨和取消率。第三，我們也正在增強防縮水生態系統，以維持一流的縮水效能，其中包括與 NVIDIA 合作的新 AI 技術，可提示客戶在自助結帳時掃描遺失的商品。我們也正在試驗新的產品保護，使用產品安全門，可以使用客戶的電話號碼解鎖，而無需找到使用傳統鑰匙的員工。這些只是我們廣泛的 PPI 計劃路線圖中的幾個例子。

Given the strong performance of our frontline associates this quarter, 93% of our stores qualified for our Winning Together quarterly bonus, which is designed specifically for our hourly associates. As we approach Memorial Day weekend, I want to thank our veterans. As a marine, I'm proud of our company's long-standing commitment to supporting our military community. Lowe's ranks among the top military-friendly brands in the U.S. with a 10% off every day military discount, dedicated better than parking spots and nearly 26,000 associates from the military community.

鑑於本季第一線員工的強勁表現，我們 93% 的門市有資格獲得專為小時工設計的 Winning Together 季度獎金。在陣亡將士紀念日週末臨近之際，我要感謝我們的退伍軍人。身為一名海軍陸戰隊員，我為我們公司長期致力於支持我們的軍事界感到自豪。 Lowe's 躋身美國頂級軍事友善品牌之列，每天提供 10% 的軍事折扣，比停車場更專注，並擁有近 26,000 名來自軍事界的員工。

We work with Department of Defense to bring our jobs directly to transitioning service members and military spouses and have a program to provide training and work experience with Lowe's during their last months of service. We value the skills, dedication and courageous leadership we see in our veterans. In this Memorial Day, I hope you will join us in thanking our associates and camouflage vest for their service. In closing, we are executing to deliver an even better experience for our customers and associates, while unlocking even more productivity across our stores.

我們與國防部合作，將工作直接提供給轉業軍人和軍人配偶，並製定了一項計劃，在勞氏服役的最後幾個月為他們提供培訓和工作經驗。我們重視退伍軍人的技能、奉獻精神和勇敢的領導能力。在這個陣亡將士紀念日，我希望您能與我們一起感謝我們的同事和迷彩背心的服務。最後，我們致力於為客戶和員工提供更好的體驗，同時提高我們商店的生產力。

With that, I'll turn it over to Brandon.

有了這個，我會把它交給布蘭登。

Thank you, Joe. Starting with our first quarter results. We generated GAAP diluted earnings per share of $3.06. Please note, in Q1 last year, we recognized a gain of $63 million associated with the sale of our Canadian retail business. As a result, my comments today will include comparisons to certain non-GAAP measures from last year.

謝謝你，喬。從我們第一季的業績開始。我們的 GAAP 攤薄每股收益為 3.06 美元。請注意，去年第一季度，我們確認了與出售加拿大零售業務相關的 6,300 萬美元收益。因此，我今天的評論將包括與去年的某些非公認會計準則衡量指標的比較。

First quarter sales were $21.4 billion with comparable sales down 4.1% as improved seasonal weather, combined with strong spring execution drove better-than-expected results. Comparable transactions declined 3.1% as homeowners continue to delay larger discretionary projects. And comparable average ticket was down 1%, with strength in Pro, partly offsetting the impacts of lower DIY bigger ticket sales and ongoing appliance pricing pressure. Our monthly comps were down 6.7% in February, 4.9% in March and 1.1% in April.

第一季銷售額為 214 億美元，可比銷售額下降 4.1%，原因是季節性天氣改善，加上強勁的春季執行力推動業績優於預期。由於房主繼續推遲較大的可自由支配項目，可比交易量下降了 3.1%。可比平均票價下降了 1%，其中 Pro 表現強勁，部分抵消了 DIY 門票銷售量下降和持續的家電定價壓力的影響。我們的月度比較在 2 月下降了 6.7%，在 3 月下降了 4.9%，在 4 月下降了 1.1%。

Keep in mind, our monthly comp cadence was impacted by the earlier timing of Easter, which fell in March this year while it was in April last year. Because we closed our stores on Easter, this pressured our March results by approximately 300 basis points and benefited April by the same amount. Gross margin was 33.2% of sales in the first quarter, down 49 basis points from last year, largely driven by ongoing supply chain investments, early spring traffic driving promotions and a modest decline in credit revenue. This was partly offset by lower transportation costs and ongoing PPI initiatives.

請記住，我們每月的工作節奏受到復活節提前時間的影響，今年復活節是在 3 月，而去年是 4 月。由於我們在復活節關閉了商店，這使我們 3 月份的業績受到約 300 個基點的壓力，並使 4 月份的業績受益相同的數額。第一季毛利率佔銷售額的 33.2%，比去年下降 49 個基點，這主要是由於持續的供應鏈投資、早春客流量推動促銷以及信貸收入小幅下降所致。這在一定程度上被較低的運輸成本和持續的生產者物價指數 (PPI) 措施所抵消。

SG&A was 18.8% of sales, down 137 basis points versus last year's adjusted SG&A driven by sales deleverage as well as the cycling of a favorable legal settlement. These pressures were partly offset by PPI initiatives delivered by each functional team across the company. Operating margin of 12.4% declined 201 basis points versus prior year adjusted operating margin. The effective tax rate was 23.7%, largely in line with last year's adjusted effective tax rate. Inventory ended the quarter at $18.2 billion, $1.3 billion lower than last year as we continue to optimize replenishment to align with sales patterns and improve the efficiency of spring product flow. Turning to capital allocation.

SG&A 佔銷售額的 18.8%，比去年調整後的 SG&A 下降了 137 個基點，原因是銷售去槓桿化以及有利的法律​​和解週期。這些壓力被公司各職能團隊實施的 PPI 措施部分抵銷。營業利益率為 12.4%，與前一年調整後營業利益率相比下降了 201 個基點。有效稅率為23.7%，與去年調整後的有效稅率大致一致。本季末庫存為 182 億美元，比去年減少 13 億美元，因為我們繼續優化補貨以適應銷售模式並提高春季產品流程的效率。轉向資本配置。

In the first quarter, we generated $3.9 billion in free cash flow. Capital expenditures totaled $382 million as we continue to invest in our strategic growth initiatives. We paid $633 million in dividends at $1.10 per share and repurchased 3 million shares for $743 million, returning $1.4 billion to our shareholders. We ended Q1 at adjusted debt to EBITDAR of 2.93x, and we delivered a return on invested capital above 32%. Looking forward to the remainder of the year, today, we are affirming our full year 2024 outlook. We continue to expect sales ranging from $84 billion to $85 billion and comparable sales in a range of down 2% to down 3% with Pro sales outpacing DIY.

第一季度，我們產生了 39 億美元的自由現金流。我們繼續投資於我們的策略性成長計劃，資本支出總計 3.82 億美元。我們以每股 1.10 美元的價格支付了 6.33 億美元的股息，並以 7.43 億美元的價格回購了 300 萬股股票，向股東返還了 14 億美元。第一季末，調整後債務與 EBITDAR 比率為 2.93 倍，投資資本回報率超過 32%。展望今年剩餘時間，今天，我們確認 2024 年全年展望。我們仍然預計銷售額將在 840 億美元至 850 億美元之間，可比銷售額將下降 2% 至 3%，其中 Pro 銷售額將超過 DIY。

We expect operating margin in the range of 12.6% to 12.7% and full year earnings per share of approximately $12 to $12.30. To assist with your modeling, here are a few points to keep in mind for the cadence of the year. First, based on the trends we are seeing in the business, we expect second quarter comparable sales to be roughly in line with the first quarter. We continue to expect second half comp sales to improve as we cycle over easier compares from the DIY pullback that intensified in the third quarter of 2023. As I mentioned on our last call, this is not because we are forecasting an improvement in demand trends this year, it's just that the compares are easier in the second half.

我們預計營業利潤率為 12.6% 至 12.7%，全年每股收益約為 12 至 12.30 美元。為了幫助您進行建模，請記住以下幾點以了解今年的節奏。首先，根據我們在業務中看到的趨勢，我們預計第二季的可比較銷售額將與第一季大致一致。我們繼續預計下半年比較銷售將有所改善，因為我們從2023 年第三季度加劇的DIY 回調中更輕鬆地進行比較。需求趨勢會改善今年，只是下半年比較容易。

In terms of flow-through, we expect operating margin to remain under pressure in Q2, largely due to sales deleverage and cycling a favorable legal settlement. Taking these factors into account, we expect Q2 operating margin rate to be approximately 150 basis points below the prior year rate and flow through of productivity to improve in the second half of the year.

就流量而言，我們預計第二季營業利潤率仍將面臨壓力，這主要是由於銷售去槓桿化和有利的法律​​和解。考慮到這些因素，我們預計第二季營業利潤率將比去年同期低約 150 個基點，下半年生產力的流量將有所改善。

Before I close, I'd like to reiterate that our capital allocation strategy remains intact. First, reinvest in the business; second, target a 35% dividend payout ratio and third, return excess cash to shareholders through share repurchases. In 2024, we plan to use our free cash flow to repay a $450 million bond maturity and then return the remaining cash to shareholders through share repurchases. In closing, we remain focused on investing in our Total Home Strategy. As Marvin mentioned, we are also executing against a multiyear road map of PPI initiatives, which will continue to unlock productivity well beyond 2024. We are well positioned to capitalize on home improvement demand when the market recovers and continue to deliver sustainable shareholder value.

在結束之前，我想重申我們的資本配置策略保持不變。首先，對業務進行再投資；第二，目標是35%的股利支付率；第三，透過股票回購將多餘現金回饋給股東。 2024年，我們計劃利用自由現金流償還4.5億美元到期債券，然後透過股票回購將剩餘現金回饋給股東。最後，我們仍然專注於投資我們的整體家居策略。正如Marvin 所提到的，我們也正在執行PPI 計畫的多年路線圖，該計畫將在2024 年後繼續釋放生產力。價值。

And with that, we'll open it up for your questions.

接下來，我們將開放它來回答您的問題。

(Operator Instructions) Our first question comes from the line of Chris Horvers with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Chris Horvers。

It's Christian Carlino on for Chris. Just to dig in on the gross margin. Could you help us understand some of the drivers there? And are you seeing the full run rate of vendor clawbacks at this point? Or does that build over the year. And just broadly, how should we think about the phasing of gross margin expansion over the year relative to the flat gross margin guide?

克里斯汀·卡利諾 (Christian Carlino) 替補出場。只是為了挖掘毛利率。您能幫助我們了解那裡的一些驅動程式嗎？您目前是否看到供應商收回的全部運作率？或者說這會在一年內建立起來。從廣義上講，相對於毛利率持平的指導，我們應該如何考慮今年毛利率的分階段擴張？

Yes, sure. This is Brandon. Thanks for the question. So as it relates to gross margins, and we look out for the full year, we are still expecting gross margins to be flat. Our improvements, mainly PPI, we expect those to be more back half weighted. The headwinds, we had many of these in Q1, ongoing investments in our supply chain as we finalize the rollout of market delivery, early investments in our Pro fulfillment initiatives, and spring promos as we continue to execute on our everyday competitive pricing strategy.

是的，當然。這是布蘭登。謝謝你的提問。因此，由於它與毛利率有關，我們展望全年，我們仍然預計毛利率將持平。我們的改進，主要是 PPI，我們預計這些改進將更多地後半加權。不利因素是，我們在第一季遇到了很多這樣的情況：隨著我們最終完成市場交付的推出，對供應鏈的持續投資，對我們的專業履行計劃的早期投資，以及當我們繼續執行日常競爭性定價策略時的春季促銷活動。

And then the tailwinds, a number of PPI efforts that we continue to execute against, Bill mentioned momentum that we're seeing in private brands, ongoing pricing initiatives. And then as it relates to the callback, we're making really nice progress there. Driving sales now. We're making some of that investment in price, and there's going to be a bit of a lag defect as the new cost turn through inventory here over the next 3 quarters and then also continuing to benefit from lower transportation costs as we leverage our scale to drive rates with our carriers.

然後是順風車，我們繼續執行的一些 PPI 努力，比爾提到了我們在自有品牌、持續的定價舉措中看到的勢頭。然後，由於它與回調相關，我們在那裡取得了非常好的進展。現在推動銷售。我們正在價格方面進行一些投資，並且隨著新的成本在接下來的三個季度通過庫存轉變，並且隨著我們利用我們的規模，我們還將繼續受益於較低的運輸成本，因此將會存在一些滯後缺陷與我們的運營商一起提高費率。

So we also mentioned credit is some first half pressure there related to higher borrowing costs and delinquencies as it relates to our private label credit portfolio, but we expect to be able to manage that roughly flat to the year and then great performance on the shrink side. We continue to expect roughly flat on the year there.

因此，我們也提到，信貸是上半年的一些壓力，與較高的借貸成本和拖欠有關，因為它與我們的自有品牌信貸投資組合有關，但我們預計能夠將這一壓力與今年大致持平，然後在收縮方面表現出色。我們仍然預計今年的情況大致持平。

Got it. That's really helpful. And I appreciate the color in the prepared remarks, but I guess, how would you disaggregate some of the bigger ticket trends between more remodeling oriented categories that are more likely financed versus others like big ticket seasonal and appliances, and how are you thinking about the recovery path for maybe these 2 sides of big ticket broadly?

知道了。這真的很有幫助。我很欣賞準備好的評論中的顏色，但我想，您如何將一些較大的門票趨勢分解為更多以改造為導向的類別，這些類別更有可能獲得資金，而不是像大門票季節性和電器等其他類別，以及您如何考慮或許這兩個方面的恢復路徑廣泛？

Yes. I think when we look at big ticket in particular, we continue to see pressure, right? We called out large tickets greater than [500], down 7.6% for the quarter. Most of that right now is still related to DIY, and we're continuing with the Q4 trends that we saw there where big ticket was down 8.8%. I think a lot of that is we look at discretionary. There is some seasonal impact there as we continue to see some level of pressure from patio, from grills with multiyear replacement cycles. We are continuing to see pressure from appliances as we normalize against the promo environment, we get back to more 2019 levels.

是的。我認為，當我們特別關注大額門票時，我們會繼續看到壓力，對吧？我們發出了超過 [500] 張的大票，本季下降了 7.6%。目前大部分仍與 DIY 有關，我們將繼續在第四季度看到的趨勢，其中大件商品下降了 8.8%。我認為其中很多都是我們酌情考慮的。那裡存在一些季節性影響，因為我們繼續看到來自庭院、多年更換週期的烤架的一定程度的壓力。隨著我們對促銷環境的正常化，我們繼續看到來自家電的壓力，我們回到了 2019 年的水平。

And then also the emerging dynamic with the lock-in effect and higher rates continues to pressure big ticket categories like kitchen and bath, decor and flooring. And those are categories that are sensitive to higher interest rates and the new home occasion. So very much working through that. We're seeing offsets to that with as we continue to drive the Pro business. and that helps boost some of our big ticket. We expect that average ticket for the full year to continue to be roughly flat, but definitely continuing to work through some of the DIY pressures that we're experiencing.

此外，鎖定效應和更高的費率帶來的新興動態繼續為廚房和浴室、裝飾和地板等大件類別帶來壓力。這些類別對更高的利率和新的家居場合敏感。非常努力地解決這個問題。隨著我們繼續推動專業業務，我們看到了這一點的抵消。這有助於提高我們的一些大額門票。我們預計全年的平均票價將繼續大致持平，但肯定會繼續克服我們正在經歷的一些 DIY 壓力。

Our next question is from the line of Steven Forbes with Guggenheim Securities.

我們的下一個問題來自古根漢證券公司的史蒂文·福布斯。

Marvin, maybe a question for Joe actually on the front-end transformation. I was maybe curious if you could just update us on how you're sort of thinking about the ROI of that initiative. It sounds like it's progressing and we're only 1/3 of the way through. But any color on sort of what the comp lift is or the waterfall benefit we should sort of think through as we work through the whole transformation here?

馬文，也許要問喬其實是關於前端轉型的問題。我可能很好奇您能否向我們介紹一下您對該計劃的投資回報率的看法。聽起來好像正在取得進展，但我們只完成了 1/3。但是，當我們進行整個轉型時，我們應該思考什麼是競爭提升或瀑布收益？

Yes. And so thanks for the question, Steve. I won't give the comp benefit, but there are several things that we're seeing. We have a detailed road map as we've laid out. We're 1/3 of the way through. And when I think about the proprietary self-checkout systems we talked about in the past, the user-friendly for the home improvement customer along with the partnership we have with our tech team under Seemantini's leadership, the teams work hand-in-hand. So we're incorporating the technology that we spoke about, NVIDIA, our assisted self-checkout. And in addition, we just finished launching the ability for our gig drivers to pick up from our enhanced buy online pickup in store and all of our gig delivery network. So we're really pleased. And again, third of the way through customer satisfaction scores have improved, the associate engagement has improved and very pleased with where we're at.

是的。謝謝你的提問，史蒂夫。我不會提供補償福利，但我們看到了一些事情。我們已經制定了詳細的路線圖。我們已經完成了 1/3。當我想到我們過去談到的專有自助結帳系統、對家居裝修客戶的用戶友好性以及我們與 Seemantini 領導下的技術團隊的合作夥伴關係時，這些團隊攜手合作。因此，我們正在整合我們談到的 NVIDIA 技術以及我們的輔助自助結帳技術。此外，我們剛剛推出了讓零工司機從我們增強的線上購買店內取貨和所有零工配送網路中取貨的功能。所以我們真的很高興。再說一次，客戶滿意度分數已經提高了三分之一，員工敬業度也得到了提高，並且對我們所處的位置非常滿意。

And Steve, I'll just add, you mentioned we're only 1/3 of the way through, but we're really pleased with the benefits that we're seeing. We're not going to call out the comps, but just financially speaking, seeing higher sales as we're opening up space on the front end, lower payroll costs, improved returns as we've increased or improved that experience and then the customer experience with the improved front end and BOPIS. So just as we look at all of our KPIs there, 1/3 of the way in, we're pleased with the progress there.

Steve，我想補充一點，您提到我們只完成了 1/3，但我們對所看到的好處感到非常滿意。我們不會公佈競爭情況，但只是從財務角度來看，隨著我們在前端開闢空間，我們會看到更高的銷售額，更低的工資成本，隨著我們增加或改善體驗而提高回報，然後是客戶改進前端和 BOPIS 的經驗。因此，正如我們查看所有 KPI（已完成 1/3）一樣，我們對那裡的進展感到滿意。

And maybe just a follow-up, as we approach Memorial Day here and think through categories like appliances and the change in the promotional sort of strategy away from bundles and sort of to a buy more, save more strategy. What are you sort of expecting from the consumer in terms of engagement and conversion? Like, is there any early reads that you're seeing or anywhere -- any way to sort of talk through how you sort of expect the consumer to engage here over the coming weeks?

也許只是一個後續行動，當我們接近陣亡將士紀念日時，我們會思考電器等類別以及促銷策略的變化，從捆綁銷售轉向購買更多，節省更多的策略。在參與度和轉換方面，您對消費者有何期望？例如，您是否在任何地方看到任何早期讀物——有什麼方式可以談談您希望消費者在未來幾週內如何參與其中？

Yes, Steve, this is Bill. And so the trends we're seeing with appliances are very similar to what we've been seeing really over the last 6 to 12 months in that. We've seen the consumer shift from buying multiple pieces to now single item pieces really in that [duress] market. And so that's where we've pivoted our efforts to making sure that we're meeting her where she wants to be met. And we're really pleased that we've continued in a down market to be able to drive units and pick up unit share during that time frame.

是的，史蒂夫，這是比爾。因此，我們所看到的家電趨勢與我們在過去 6 到 12 個月中所看到的趨勢非常相似。我們已經看到消費者在[脅迫]市場上從購買多件商品轉向現在購買單件商品。因此，這就是我們努力確保在她希望的地方與她見面的地方。我們非常高興的是，我們在低迷的市場中繼續能夠在這段時間內推動銷量並提高銷量。

And so that's the efforts that you're going to see us drive as we go through Memorial Day and throughout the remainder of the year. And when you look at what the appliance team is doing, we're also seeing great innovation, as I called out in my prepared remarks with a GE oven that I talked about. But we've also talked about it before, you're seeing wherever we're putting innovation on the floor, you're seeing her respond to that type of product. And that's really the difference that's going on today. You've got a value-conscious consumer that is opting in and you've got a consumer that's not afraid to pay for innovation when that's offered to her as well. So we want to make sure that we meet or where she wants to be met.

這就是我們在陣亡將士紀念日和今年剩餘時間將看到的努力。當你看到設備團隊正在做的事情時，我們也看到了巨大的創新，正如我在準備好的演講中提到的 GE 烤箱所指出的那樣。但我們之前也討論過，無論我們在哪裡進行創新，你都會看到她對這類產品的反應。這就是今天所發生的真正的差異。你有一個具有價值意識的消費者選擇加入，並且你有一個消費者在向她提供創新時並不害怕為創新付費。所以我們要確保我們會面或她想在哪裡見面。

Our next question is 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西蒙·古特曼。

I want to talk about the backdrop and any signs of normalization. If you can talk about traffic versus '19, I know a big ticket is part of there, is that third year of negative comps. And I guess we are going to -- I guess, the model says we're going to see a turn by the end of the year. But Brandon, you mentioned that's not macro dependent. That's more business dependent. So curious. And also, by the way, part of that is if there's a category that you're paying attention to that gives you a leading indicator of anything that's turning.

我想談談正常化的背景和跡象。如果你能談論與 19 年相比的流量，我知道其中的一個大問題是第三年的負面補償。我想我們會——我想，模型說我們會在今年年底看到轉變。但是布蘭登，你提到這並不依賴宏觀。這更依賴業務。很好奇。另外，順便說一句，其中一部分是，是否有一個您正在關注的類別可以為您提供任何正在發生的變化的領先指標。

Yes. Simeon, just as it relates to the macro first, we ultimately need to see customers, consumers reengage for us to have confidence that the home improvement is inflecting. We're watching for an uptick specifically on discretionary bigger ticket projects. I mentioned earlier what we're seeing. We're not seeing that at the moment. I think we're watching consumers continue to digest and adjust to the monetary tightening, which is working its way through the system, and that continues to have an outsized impact on housing where we see affordability challenges and historically low turnover.

是的。 Simeon，正如它首先關係到宏觀一樣，我們最終需要看到客戶、消費者重新參與進來，讓我們對家居裝修正在發生變化充滿信心。我們特別關注可自由支配的大額項目的上漲。我之前提到過我們所看到的。目前我們還沒有看到這一點。我認為我們正在觀察消費者繼續消化和適應貨幣緊縮，貨幣緊縮正在整個系統中發揮作用，並繼續對住房產生巨大影響，我們看到住房承受能力面臨挑戰，營業額處於歷史低點。

So again, we're not seeing that inflection point. Consumers continue to kind of remain on the sidelines. As Marvin mentioned, and we're waiting on that catalyst. We don't necessarily expect or understanding the timing of that. But just as it relates to the comp cadence, when we look at the second half, this is about the improvement in second half, not an improving macro, as I said in my prepared remarks. It's just easier year-over-year comparisons. And we looked at this in a number of different ways, tops down, bottoms up across multiple time frames. We've looked at DIY Pro categories and geographies, and we feel comfortable, was sort of the down [4] over the first half and moving back to a more historical mix of transactions and ticket as we start getting into the back half of the year.

再說一次，我們沒有看到那個拐點。消費者繼續保持觀望態度。正如馬文所提到的，我們正在等待這種催化劑。我們不一定期望或理解其發生的時間。但正如它與比賽節奏有關一樣，當我們看下半年時，這是關於下半年的改善，而不是宏觀的改善，正如我在準備好的發言中所說的那樣。逐年比較更容易。我們以多種不同的方式來看待這個問題，從上到下、從下到上跨越多個時間框架。我們研究了 DIY Pro 類別和地區，我們感到很舒服，上半年有所下降 [4]，當我們開始進入下半年時，我們又回到了更歷史的交易和門票組合。

Simeon, this is Marvin. The only thing I'll add is more of a broader theme that we're focused on. And that is managing through any unique challenges we're facing today. And I think Q1 reflects that we're executing at a high level in spite of some of the macro headwind that we're dealing with. But we're really positioning ourselves to really come out of this downturn as a much better company. We've invested billions of dollars in supply chain, IT infrastructure, our digital platform, our omni systems, store environment, merchandising assortments.

西蒙，這是馬文。我唯一要補充的是我們關注的更廣泛的主題。這就是應對我們今天面臨的任何獨特挑戰。我認為第一季反映出，儘管我們正在應對一些宏觀阻力，但我們仍在高水準執行。但我們確實將自己定位為真正走出這場低迷，成為一家更好的公司。我們在供應鏈、IT 基礎設施、數位平台、全方位系統、商店環境、商品分類方面投資了數十億美元。

And in other words, whenever the macro decides to turn, we're going to come out of it as a much stronger, more productive company. And so although we can't predict when that's going to happen, Brandon outlined our commitment to our capital allocation strategy, we're going to continue to invest, we're going to continue to make sure we prepare ourselves. And whenever the positive trends start to show up, we're going to be ready for it and we're going to take full advantage of it.

換句話說，每當宏觀經濟決定轉向時，我們都會成為一家更強大、更有生產力的公司。因此，儘管我們無法預測何時會發生，但布蘭登概述了我們對資本配置策略的承諾，我們將繼續投資，我們將繼續確保我們做好準備。每當正向趨勢開始出現時，我們就會做好準備，並充分利用它。

Related to that, Marvin or Brandon, incremental margins when the business turns, is there a case to be made that you spend into an upturn faster than what you're spending now? Are there places that you've held back on such that incremental margins aren't, I guess, typical cycle coming out into a housing recovery?

與此相關的是，馬文或布蘭登，當業務轉變時，利潤會增加，是否有理由讓你的支出比現在的支出更快？我想，您是否在某些方面有所保留，以至於增量利潤並不是房地產復甦的典型週期？

No, Simeon, I would say we've been fully committed to our long-term road map in terms of capital, major projects and PPI and top line growth initiatives still been fully committed to that. But we haven't pulled back at all. And as Marvin mentioned, we're investing in the business for the long term. Committed to the long-term trajectory and looking forward to comps starting to turn whenever that may be, and we believe kind of a long-term algorithm holds in place once that happens.

不，Simeon，我想說的是，我們在資本、重大項目和 PPI 方面完全致力於我們的長期路線圖，而且頂線增長計劃仍然完全致力於這一點。但我們根本沒有退縮。正如馬文所提到的，我們正在對這項業務進行長期投資。致力於長期發展軌跡，並期待補償在任何可能的情況下開始轉變，我們相信一旦發生這種情況，一種長期演算法就會保持到位。

Next question is from the line of Michael Lasser with UBS.

下一個問題來自瑞銀集團的麥可‧拉瑟 (Michael Lasser)。

Given the state of the home improvement cycle, how are you currently looking at the trade-off between driving sales and market share versus sacrificing gross margin, understanding that you expect your gross margin to improve over the course of the year, are you more willing to make this trade-off now with the view that it will be a benefit as the cycle recovers.

鑑於家居裝修週期的狀況，您目前如何看待推動銷售和市場份額與犧牲毛利率之間的權衡，了解您預計毛利率在一年內會有所改善，您是否更願意現在就進行這種權衡，因為隨著週期的恢復，這將是有益的。

Michael, I'll take the first part of that. This is Marvin, and I'll let Brandon give some additional perspective. I think Bill said it best. We're trying to meet the customer where the customer currently is at. And if the customer is looking for value, value does not always equate to low price, it equates to a great return for the dollar you spend. And so we feel really fortunate that we can make early investments in the customer with events and activities to win that early spring customer and still have an opportunity to outperform earnings per share and operating margin.

邁克爾，我先講第一部分。我是馬文，我會讓布蘭登提供一些額外的觀點。我認為比爾說得最好。我們正在努力與客戶目前所在的位置會面。如果客戶正在尋找價值，那麼價值並不總是等同於低價，它等同於您所花費的美元的巨大回報。因此，我們感到非常幸運，我們可以透過活動和活動對客戶進行早期投資，以贏得早春客戶，並且仍然有機會超越每股收益和營業利潤率。

And then as Brandon mentioned, we have initiatives in place that give us confidence that we'll roughly recover any gross margin decrement in the back half and in the year relatively flat. So we're going to be able to pull all the levers we have to make sure that we can aggressively serve the customer well. And we believe in a very simple philosophy, and that is during the spring season, if you win the customer early, you get multiple shopping occasions throughout the spring and the year and Bill and his team, along with great execution in the stores and the supply chain allowed us to do that. And so that's the overreaching philosophy, then I'll let Brandon give you more specifics on how we think about it for the balance of the year.

然後，正如布蘭登所提到的，我們採取的舉措讓我們有信心，我們將在下半年和今年相對持平的情況下大致恢復任何毛利率下降。因此，我們將能夠使用所有手段來確保我們能夠積極地為客戶提供良好的服務。我們相信一個非常簡單的理念，那就是在春季，如果你儘早贏得客戶，你將在整個春季和一年中獲得多個購物機會，比爾和他的團隊，以及商店和商店的出色執行力供應鏈使我們能夠做到這一點。這就是超越的哲學，然後我將讓布蘭登向您提供更多具體信息，說明我們在今年餘下的時間裡如何看待它。

Yes, Michael, I would just add, as Marvin said, we were really pleased with our ability to pivot our go-to-market strategy, especially as we saw customer behavior start to change over the back half of last year and our execution, our marketing approach, how we highlighted value, we believe, helped us win Q1, and we did see a little bit of margin pressure from those actions, but really pleased that we were able to manage that and offset that within SG&A and still deliver the bottom line number and I think confident that we can manage the portfolio as we move through the balance of the year.

是的，邁克爾，我只想補充一點，正如馬文所說，我們對我們調整進入市場策略的能力感到非常滿意，特別是當我們看到客戶行為在去年下半年開始發生變化以及我們的執行力時，我們相信，我們的行銷方法，我們如何強調價值，幫助我們贏得了第一季度的勝利，我們確實看到了這些行動帶來的一點利潤壓力，但我們非常高興我們能夠管理這一點，並在SG&A 內抵消這一壓力，並且仍然交付底線數字，我認為我們有信心在今年餘下的時間內管理好投資組合。

You mentioned we do expect some of these gross margin pressures to start to tail off as we move through the year in PPI to start to accelerate. So we're committed to delivering both the top line and the bottom line in line with our guide.

您提到，我們確實預計，隨著今年 PPI 開始加速成長，其中一些毛利率壓力將開始減弱。因此，我們致力於按照我們的指南提供頂線和底線。

Okay. My follow-up question is on the DIY loyalty program. What has been the lift that you've experienced from that -- from rolling that out so far? And what do you expect to see over the course of the year. It seems like given the performance in the first half, while there are easier comparisons in the back half you're probably embedding some contribution from this factor in order to get to the full year guidance?

好的。我的後續問題是關於 DIY 忠誠度計劃。到目前為止，您從推出該專案以來經歷了哪些提升？您希望在這一年中看到什麼？考慮到上半年的表現，雖然下半年的比較更容易，但您可能會嵌入這個因素的一些貢獻，以獲得全年指導？

Well, Mike, this is Marvin. We're not going to get into the specifics of the lift. But as I remind you and everyone, we launched the program in March. The initial focus was on enrollment, getting active members engaged, app downloads, and we're really pleased with how well it is going. The rollout was very smooth, and it really spotlights the benefits of really modernizing our store operating system. We could not have rolled this loyalty program out a year ago. because we were still in the process of retiring a 30-year operating system, which is now for all intents and purposes, behind us and the store associates engagement was simply tremendous in educating the customer and making sure that they were articulating the value.

好吧，麥克，這是馬文。我們不打算討論電梯的細節。但正如我提醒您和大家的那樣，我們在三月啟動了該計劃。最初的重點是註冊、吸引活躍會員參與、應用程式下載，我們對進展順利感到非常滿意。推出非常順利，它確實凸顯了我們商店作業系統真正現代化的好處。我們不可能在一年前就推出這個忠誠度計畫。因為我們仍處於淘汰使用了30 年的操作系統的過程中，而現在，出於所有意圖和目的，該操作系統已經在我們身後，並且商店員工的參與在教育客戶和確保他們闡明價值方面發揮了巨大作用。

So our objective is just to simply take the data to serve our customers more effectively. Data is a new currency, but it's only beneficial if you use it to benefit the customer experience. We think we'll be able to do that. And we're also believing that we'll be able to get additional trips from the customer throughout the year. Is early, but we're pleased with the results, and we'll look forward to updating you and the external community throughout the year on the progress we're making.

所以我們的目標只是簡單地利用數據來更有效地為我們的客戶服務。數據是一種新貨幣，但只有當您使用它來改善客戶體驗時，它才有意義。我們認為我們能夠做到這一點。我們也相信，我們將能夠全年從客戶那裡獲得更多的旅行。雖然還為時過早，但我們對結果感到滿意，我們期待全年向您和外部社區通報我們所取得的進展。

Our next question is from the line of Greg Melich with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Greg Melich。

I wanted to follow up on the comp cadence. It sounds like still some macro pressures. If you look at the comp you just reported, the negative [4] and you're doing negative [2 to 3] for the year. How much of that improvement is coming from ticket cycling what was happening a year ago versus traffic improvement?

我想跟進比賽節奏。聽起來宏觀壓力仍然存在。如果你看看你剛剛報告的比較，負面的[4]，而你今年的表現是負面的[2到3]。這種改善有多少是來自一年前的票務循環與交通改善？

Yes, Greg, this is Brandon. The majority of that's going to be traffic related. I think as I'll get the breakdown across the year on ticket and transactions, we're, for the most part, expecting average ticket to hold, consistent over the course of the remainder of the year just as we saw here in Q1, some slight pressure, ticket related, as we've shifted down in the smaller ticket seasonal projects, which has boosted transactions. And then we're also seeing continued ticket pressure, as I mentioned, from the DIY big-ticket discretionary and that includes some of the appliance promo pressure. But the flip side is, Pro growth continues to run strong for us, which is helping mix ticket up.

是的，格雷格，這是布蘭登。其中大部分與交通有關。我認為，隨著我將獲得全年門票和交易的詳細信息，我們在很大程度上預計平均門票將在今年剩餘時間內保持一致，就像我們在第一季度看到的那樣，一些與門票相關的輕微壓力，因為我們已經減少了較小的門票季節性項目，這促進了交易。然後，正如我所提到的，我們還看到 DIY 高價可自由支配的持續門票壓力，其中包括一些家電促銷壓力。但另一面是，專業人士的成長對我們來說繼續強勁，這有助於混合門票。

And then as we look at really the second half of the year and the cadence improve, again, it's a function of really what we're cycling and we expect the transactions to start to pick up as we accelerate into the second half of the year, and we're going to see again, a much more historical relationship between ticket and transaction over the course of the second half of the year.

然後，當我們真正看到下半年時，節奏會再次改善，這實際上是我們正在循環的函數，我們預計隨著我們加速進入今年下半年，交易將開始回升，我們將在今年下半年再次看到門票和交易之間更歷史化的關係。

Got it. And then a follow-up on the gross margin. It's still flat for the year, but you'd expect it to be down in the second quarter similar to 1Q and then up 50 bps in the back half. Is that the right way to model that?

知道了。然後是毛利率的跟進。今年仍然持平，但您預計第二季會與第一季類似，然後在下半年上升 50 個基點。這是建模的正確方法嗎？

I won't put a specific number on Q2, but we do expect Q2 to be similarly pressured with supply chain investments and some of the credit pressure that we're continuing to see. But for sure, as we get into the second half, we're seeing the improved -- the acceleration of PPI flow through with some of the supplier clawback cost out. There's some timing benefits that will come through in the second half of the year and then some of the credit pressures just start to ease. Again, that's a cycling, a timing issue as we started to see some of the interest rate pressures and delinquencies started to pressure in the second half of last year. So we expect that to smooth out as well. So that's sort of the shape of the curve there.

我不會給出第二季的具體數字，但我們確實預計第二季將受到供應鏈投資和我們繼續看到的一些信貸壓力的類似壓力。但可以肯定的是，隨著進入下半年，我們看到了改善——生產者物價指數 (PPI) 流動加速，部分供應商收回成本。一些時機上的好處將在今年下半年顯現出來，然後一些信貸壓力才開始緩解。同樣，這是一個循環，一個時間問題，因為我們開始看到一些利率壓力和拖欠問題在去年下半年開始承受壓力。所以我們預計這也會順利進行。這就是曲線的形狀。

I may have missed it, but was the new reward program part of the gross margin pressure in 1Q or no?

我可能錯過了，但新的獎勵計劃是否是第一季毛利率壓力的一部分？

Not significant at this point, just given the timing of when we scaled that.

在這一點上並不重要，只是考慮到我們擴展的時間。

Our next question is from the line of Seth Sigman with Barclays.

我們的下一個問題來自巴克萊銀行的塞思‧西格曼。

I want to talk about how the quarter played out. So the quarter started off weaker as you reported originally. And then you did see an improvement came in ahead of forecast. How do you think about how much of that was driven by seasonal versus maybe some other areas that could have come in a little bit better?

我想談談本季的表現。因此，正如您最初報告的那樣，本季開始時表現較弱。然後你確實看到了比預期有所改善的情況。您如何看待其中有多少是由季節性驅動的，而其他一些領域可能會表現得更好一點？

I'll take the first part, and then I'll hand it over to Bill. I mean this was broadly a weather dynamic from a standpoint of how the sales flow. We feel really good about the execution. We feel great about some of the initiatives with SpringFest and how the customers respond to it. But the cadence was really driven by the impact of weather to the initiatives. I'll let Bill kind of walk through some of the specific initiatives and how it played out in Q1.

我將承擔第一部分，然後將其交給比爾。我的意思是，從銷售流程的角度來看，這基本上是一種天氣動態。我們對執行情況感覺非常好。我們對 SpringFest 的一些措施以及客戶的反應感到非常滿意。但節奏其實是由天氣對舉措的影響決定的。我將讓比爾介紹一些具體舉措以及它在第一季的實施情況。

Yes. Thanks, Marvin. And Seth, I think the big difference for us this year is that we took a slightly different approach to our marketing. We -- as I said in my prepared remarks, we took a geo-targeted approach, which was really going south to north with our SpringFest campaign. And we put some offers out there that were seasonally relevant. We were able to target those south to north. And then we got a little bit of weather favorability that happened in March, and then we carried that into April. We're able to navigate some storm weather. We took advantage of that. But the teams did a really nice job of making sure that we had new products, new brands.

是的。謝謝，馬文。塞斯，我認為今年對我們來說最大的不同是我們採取了略有不同的行銷方法。正如我在準備好的演講中所說，我們採取了一種有針對性的方法，即透過我們的春季節活動從南到北。我們也推出了一些與季節性相關的優惠。我們能夠從南到北瞄準那些人。然後我們在三月獲得了一些有利的天氣，然後我們將其延續到了四月。我們能夠應付一些暴風雨天氣。我們利用了這一點。但團隊在確保我們擁有新產品、新品牌方面做得非常出色。

We saw Toro really respond well for us. We continue to see EGO perform well. We continue to see anything that we've done, as I said earlier, in a question that was asked earlier around innovative products perform well. We've seen the consumer respond now with the weather advantages, the grass is growing. So they're out there buying zero-turn riding mowers. They're buying full-size gas grills. So we're seeing that work. And now we've got -- as we go into Q2, we've got Memorial Day, July 4, Father's Day in front of us. So we've got to take advantage of those events as we finish out the quarter. So those are really the results.

我們看到 Toro 確實對我們做出了很好的反應。我們繼續看到 EGO 表現良好。正如我之前所說，在先前提出的有關創新產品的問題中，我們繼續看到我們所做的一切都表現良好。我們已經看到消費者現在對天氣優勢做出反應，草正在生長。所以他們在那裡購買零轉彎騎乘式割草機。他們正在購買全尺寸的燃氣烤架。所以我們看到了這項工作。現在，當我們進入第二季時，陣亡將士紀念日、7 月 4 日、父親節就在我們面前。因此，我們必須在本季結束時利用這些事件。所以這些才是真正的結果。

And where we've had weather, we've seen it play in our advantage. And the lawn and garden team, as I said, had really nice results in the first quarter, driving that with traffic-driving events with soils, mulch, live goods and they took advantage of that customer that was out there getting their yard ready early in spring. So that was really the drivers.

在我們遇到天氣的地方，我們發現它對我們有利。正如我所說，草坪和花園團隊在第一季度取得了非常好的成績，透過土壤、覆蓋物、活物等交通驅動活動推動了這一成果，他們利用了早早準備好院子的客戶。 。所以這確實是司機。

Seth, this is Brandon. Just one more thing. Just as you recall at the beginning of the year, we did plan for a much more normal spring season, and we had called out the last 2 years about a $400 million drag related to unfavorable weather in the last 2 years. So cycling against that. Some of that recovery moved into Q2 over the last couple of years. So that's also embedded into our outlook as we're looking at Q2 for this year.

賽斯，這是布蘭登。還有一件事。正如您在今年年初所記得的那樣，我們確實計劃了一個更正常的春季，並且我們在過去兩年中指出了與過去兩年不利天氣相關的 4 億美元的拖累。所以騎自行車反對這一點。過去幾年，部分復甦進入了第二季。因此，當我們展望今年第二季時，這也融入了我們的展望中。

Okay. Got it. That makes sense. Just a related question on the improvement that you saw in the Pro business going back to positive this quarter. Obviously, there's a lot that you're doing to drive that. But any sense whether that reflects market share gains or just broader improvement in some of those Pro-oriented categories? And I guess, any perspective on if your performance is coming from customer growth or wallet share and just any context there?

好的。知道了。這就說得通了。只是一個有關您在本季度專業業務中看到的改善的相關問題。顯然，您正在做很多事情來推動這一目標。但這是否反映了市場份額的成長，或者只是某些專業類別的更廣泛的改善？我想，對於您的業績是否來自客戶成長或錢包份額以及那裡的任何背景，有什麼看法嗎？

Well, I think overall, we're very pleased with the performance of our Pro strategy. As you know, it's been a 5-year investment journey on things like investing in job-like quantities for inventory, improving service levels, adding national brands, Bill and I, both mentioned the great performance of client tools, the #1 brand for electricians and HVAC professionals, bringing brands like that to the assortment, it just adds to the credibility of the turnaround that we've been on and trying to win some of these customers back from years past, in addition to a stronger digital platform, a great loyalty program that's resonating with the customers.

嗯，我認為總的來說，我們對專業版策略的表現非常滿意。如你所知，這是一個為期5 年的投資之旅，涉及諸如投資庫存量、提高服務水平、增加民族品牌等方面，比爾和我都提到了客戶端工具的出色性能，這是第一大品牌的客戶工具電工和暖通空調專業人士，將這樣的品牌引入產品類別，這只會增加我們一直在努力扭轉局面的可信度，並試圖從過去幾年中贏得一些客戶，此外還有更強大的數位平台、與客戶產生共鳴的優秀忠誠度計畫。

And from the survey results that we shared, I mean, this is a resilient customer that continues to fight through the economic headwinds and their backlog is relatively equal to last year. So overall, that's driving it, whether or not we're taking share or not is, look, we don't want to determine that as much as we're just looking at internally at just much improved execution and results. And I'll let Joe talk a little bit about some of the other initiatives that were driving that. That we think is really resonating that allowed us to get this business back to positive.

從我們分享的調查結果來看，我的意思是，這是一個有彈性的客戶，他們繼續與經濟逆風作鬥爭，他們的積壓訂單與去年相對持平。因此，總的來說，無論我們是否佔據份額，這都是推動因素，看，我們不想確定這一點，因為我們只是在內部關注執行力和結果的大幅改善。我會讓喬談談推動這一目標的其他一些舉措。我們認為這確實引起了共鳴，使我們能夠使這項業務恢復到積極的狀態。

Yes. Thanks, Marvin. Seth, as you think about some of the investments that we've made, Marvin has called them out, Bill has called them out. Job-like quantity, safety stock, but also our enhancement in our job site delivery for larger orders. If you think about the maturity of our loyalty program in Pro, our CRM program, or growing share of wallet. We continue to expand our Lowe's Pro supply. And then from the survey that Marvin had mentioned, the dimensions of the [health], we look at backlogs and materials, credit, labor and the project type. The Pros have been stable and steady there. And so we're pleased with the gains we're making with this customer, both in-store, product-wise and online.

是的。謝謝，馬文。塞斯，當你想到我們所做的一些投資時，馬文已經指出了它們，比爾也指出了它們。工作量、安全庫存，以及我們對大訂單的工作現場交付的增強。如果您考慮我們 Pro 中的忠誠度計劃、我們的 CRM 計劃或不斷增長的錢包份額的成熟度。我們繼續擴大 Lowe's Pro 的供應。然後從馬文提到的調查中，[健康]的維度，我們關注積壓和材料、信貸、勞動力和項目類型。職業選手在那裡一直穩定穩定。因此，我們對與該客戶在店內、產品方面和網上所取得的收益感到滿意。

And Seth, I'd just close the Pro discussion with just one additional point. We're really focused on the customer that we can serve at a very high level and that's that small to medium Pro. And we estimate that's a [$200 billion] market opportunity. And so we are focused squarely on that customer. That customer still leverages the store. For fill in we can leverage the productivity of our existing real estate footprint to serve that customer well. We can do it without having to make dramatic investments in op expense in addition to the fulfillment capabilities, as Joe talked about. So we are very confident that our strategy is working and that is reflected in the results. We still have other investments to make, we'll make them, and we hopefully will continue to see this business head in the right direction in spite of a very difficult macro.

賽斯，我想用另外一點來結束專業人士的討論。我們真正關注的是我們可以提供高水準服務的客戶，即中小型專業客戶。我們估計這是一個[2000 億美元]的市場機會。因此，我們完全專注於該客戶。該客戶仍在利用該商店。為了填補這一空白，我們可以利用現有房地產足跡的生產力來為該客戶提供良好的服務。正如喬所說，除了履行能力之外，我們無需在營運費用上進行大量投資即可做到這一點。因此，我們非常有信心我們的策略正在發揮作用，這也反映在結果中。我們還有其他投資要做，我們會進行這些投資，儘管宏觀經濟非常困難，但我們希望能夠繼續看到這項業務朝著正確的方向發展。

Our next question is from the line of Peter Benedict from Baird.

我們的下一個問題來自貝爾德 (Baird) 的彼得·本尼迪克特 (Peter Benedict)。

I guess just on the DIY loyalty program, I know it didn't have much of an impact on the P&L here in the first quarter. But just curious how we should think about that longer term as it scales? And maybe a comment also on the associated lift in the private label credit sign-ups, what you're seeing there, what that means, I guess, going forward, any perspective on how private level credit has been for you guys historically and what's maybe possible here with this new program?

我想就 DIY 忠誠度計劃而言，我知道它對第一季的損益沒有太大影響。但只是好奇，隨著規模的擴大，我們該如何考慮更長期的問題？也許還可以評論一下私人標籤信用註冊的相關提升，你在那裡看到了什麼，這意味著什麼，我想，展望未來，對私人信用在歷史上對你們的影響有什麼看法，以及什麼是也許可以用這個新程式來實現？

Peter, thanks for the question. This is Brandon. Just -- again, Marvin hit on this a bit, but our goals overall with the loyalty program are to create further stickiness with our DIY drive repeat visits and spend over time, our ability to get the data and drive more personalized marketing. Super pleased with what we're seeing with engagement from the customer standpoint and our associates. We're managing the enrollments to membership points redemptions.

彼得，謝謝你的提問。這是布蘭登。只是——馬文再次提到了這一點，但我們忠誠度計劃的總體目標是透過我們的DIY 驅動重複訪問來創造進一步的粘性，並隨著時間的推移，我們獲取數據的能力和推動更個性化的營銷。從客戶和員工的角度來看，我們對參與度感到非常滿意。我們正在管理會員積分兌換的註冊。

You mentioned sort of financially we're targeting effectively one more trip annually from our DIY customers. That's the revenue upside as we see it, and it's going to take some time to gauge success of that. So we're going to have to watch that play out over the course of the year. And then in terms of the overlay with the credit program, I mean, we are bundling and building on top of a 5% credit offer that we believe is best-in-class. It's going to continue to drive increased penetration there, and we think that value really resonates with the customer, and we're able to make that work financially. So we think it's a win-win there.

您提到，從財務角度來看，我們的目標是每年 DIY 客戶增加一次旅行。這就是我們所看到的收入成長，需要一些時間來衡量其成功與否。因此，我們將不得不在這一年中觀察這種情況的發展。然後就與信貸計劃的疊加而言，我的意思是，我們正在捆綁並建立在 5% 的信貸優惠之上，我們認為這是同類最佳的。它將繼續推動滲透率的提高，我們認為這種價值確實能引起客戶的共鳴，而且我們能夠在財務上實現這一目標。所以我們認為這是雙贏的。

Peter, to add on Brandon quickly. We're pleased with the first kind of loyalty perk that we rolled with Mother's Day, the engagement we had with the members and new members as well as our associates and our ability to gain incremental loyalty members. And so as an early example there, the Mother's Day engagement, we're very pleased with.

彼得，快速補充布蘭登。我們對母親節推出的第一種忠誠度福利、我們與會員、新會員以及我們的員工的互動以及我們獲得增量忠誠會員的能力感到滿意。作為早期的例子，母親節訂婚，我們非常滿意。

That's great. And then I guess my follow-up would be just around -- just the plans for the go-to-market strategy over the balance of the year. I mean it clearly sounds like you guys took some steps here during the spring to capture some incremental business. As you think about the back half of the year, have you layered in additional, I guess, events or promotions to kind of help get those comps -- that comp trend improved. If not, is that a lever you think you'll need to pull or be willing to pull? Just kind of curious how you're thinking about the balance of the year, the second half of the year with respect to promotions.

那太棒了。然後我想我的後續行動就差不多了——只是今年剩餘時間的上市策略計畫。我的意思是，聽起來你們顯然在春季採取了一些措施來捕獲一些增量業務。當你想到今年下半年時，我猜你是否分層了額外的活動或促銷活動來幫助獲得這些補償——補償趨勢有所改善。如果沒有，您認為您需要或願意拉動這個槓桿嗎？只是有點好奇你如何看待今年的剩餘時間、下半年的促銷活動。

Yes, Peter, it's Bill. And so the promotional environment remains stable. And so nothing radically crazy. We're going to go similar to what we've been doing. We want to be seasonally relevant as we go into the back half of the year, obviously, we'll be out there as we go into fall with Labor Day. We're going to introduce Halloween. We're going to make sure that we're relevant with holiday and gift center and introduce and set our stores for spring in the Deep South for that December-January time frame. But we're going to make that transition.

是的，彼得，是比爾。因此促銷環境保持穩定。所以沒有什麼是徹底瘋狂的。我們將採取與我們一直在做的類似的方式。當我們進入下半年時，我們希望與季節性相關，顯然，當我們進入秋季勞動節時，我們將在那裡。我們要介紹一下萬聖節。我們將確保我們與假期和禮品中心相關，並在 12 月至 1 月的時間範圍內在南部腹地推出並設置我們的春季商店。但我們將實現這項轉變。

We're going to be relevant as the consumer comes out of those key seasonal categories, we'll make that transition into those fall seasonal categories, but there won't be anything goofy that will happen in the second half of the year. And so that's how we're going to approach it.

當消費者走出這些關鍵的季節性類別時，我們將保持相關性，我們將過渡到秋季季節性類別，但下半年不會發生任何愚蠢的事情。這就是我們要採取的方法。

Our final question comes from line of Jonathan Matuszewski with Jefferies.

我們的最後一個問題來自 Jonathan Matuszewski 和 Jefferies 的對話。

First one, I wanted to dig into regional trends. Some peers have been calling out less worse trends in the West. It was one of the first regions to enter the housing recession. So are you seeing less worse trends there? It looks like this year [15] geographic regions outperformed the company average. So any more detail in terms of regional variability that you're seeing would be helpful. That's my first question.

第一個，我想深入研究區域趨勢。一些同行一直在呼籲西方的趨勢有所改善。它是最早進入房地產衰退的地區之一。那麼您是否看到了更糟糕的趨勢？今年 [15] 地理區域的表現似乎優於公司平均值。因此，您所看到的有關區域差異的更多詳細資訊都會有所幫助。這是我的第一個問題。

Jonathan, this is Joe. Thank you for the question. From a geographic standpoint, as we said, where we've seen great weather, we've seen great performance. But from an overall and geographical standpoint, our West is our best performance for Q1.

喬納森，這是喬。感謝你的提問。正如我們所說，從地理角度來看，我們看到了良好的天氣，也看到了出色的表現。但從整體和地理的角度來看，我們的西部是我們第一季的最佳表現。

Yes. And Jonathan, I would just add, consistent Pro outperformance across all of our regions. So really pleased with that. And then conversely, pretty much uniform ongoing pressure in DIY big-ticket discretionary. So that's been pretty broad-based on both the Pro side and the pressure and no real differences in what we're seeing across regions.

是的。喬納森，我想補充一點，在我們所有地區，專業人士的表現始終優於其他地區。對此我真的很滿意。相反，DIY 大件可自由支配產品的持續壓力幾乎是一致的。因此，從專業方面和壓力來看，這都是相當廣泛的，而且我們在不同地區看到的情況沒有真正的差異。

Yes. I think the only comment I will make, Jonathan, is that our rural stores continue to be our best performing subset of stores within the overall geography and some of the initiatives that Bill's teams initiated with pet and apparel continue to perform really well in those locations, and we continue to evaluate the expansion of those categories in our rural environments. But overall, the West outperformed. As Brandon mentioned, Pro was widespread at a really strong performance. And the rural set of our stores kind of is the high watermark in performance among all geographic locations.

是的。喬納森，我想我要說的唯一評論是，我們的鄉村商店仍然是我們在整個地理範圍內表現最好的商店子集，比爾團隊針對寵物和服裝發起的一些舉措繼續在這些地區表現出色，我們將繼續評估這些類別在農村環境中的擴展。但整體而言，西方表現優異。正如布蘭登所提到的，Pro 以非常強勁的性能而廣泛傳播。我們農村地區的商店在所有地理位置中都處於較高的業績水平。

That's really helpful. And then just quickly, just to circle back on big ticket. I know there were some questions earlier. Just to be clear, what does the midpoint of your annual comp guidance embed for big ticket, right? So over [500] transactions were down around 7.5%. So does that 2% to 3% comp decline for the year requires sequential improvement in year-over-year declines for purchases over 500 or are you expecting that to basically continue throughout the rest of '24.

這真的很有幫助。然後很快，就回到大票。我知道之前有一些問題。需要明確的是，您的年度薪酬指導的中點包含哪些大額費用，對吧？因此，超過 [500] 筆交易下降了約 7.5%。那麼，今年 2% 到 3% 的同比下降是否需要連續改善 500 件以上採購量的同比下降，或者您是否預計這種情況將在 24 年剩餘時間內基本持續下去？

Yes. Again, Jonathan, I think just on an absolute dollar performance standpoint, we're expecting more of the same in terms of what we saw second half. We don't have any macro improvement sort of embedded in. So from an absolute standpoint across these categories, we're expecting similar performance as we move through the year, but the comps should improve significantly in these categories just again based on what we're cycling and when we started to see the downturn in the second half of last year.

是的。再次，喬納森，我認為僅從絕對美元表現的角度來看，我們預計下半年會出現更多相同的情況。我們沒有嵌入任何宏觀改進。半年我們開始看到經濟低迷。

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

感謝大家今天加入我們。我們期待在八月的第二季財報電話會議上與您交談。

Thank you. This concludes the Lowe's First Quarter 2024 earnings call. You may now disconnect.

謝謝。 Lowe's 2024 年第一季財報電話會議到此結束。您現在可以斷開連線。