勞氏公司 (LOW) 2024 Q3 法說會逐字稿

Good morning, everyone. Welcome to Lowe's Companies third-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.

大家早安。歡迎參加勞氏公司 2024 年第三季財報電話會議。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。

I will now turn the call over to Kate Pearlman, Vice President of Investor Relations and Treasurer.

我現在將把電話轉給投資者關係副總裁兼財務主管 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 merchandizing Joe mcfarland, our Executive Vice President Stores and Brandon Sink, our executive Vice President and Chief Financial Officer.

謝謝。早安，今天和我在一起的有董事長兼執行長馬文·埃里森、我們的行銷執行副總裁比爾·博爾茨、我們的商店執行副總裁喬·麥克法蘭和我們的執行副總裁兼財務長布蘭登·辛克。

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.

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。

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 and A and other sections of our annual report on form 10-K and our other sec filings.

在這次通話過程中。我們將發表前瞻性評論，包括我們對 2024 財年的預期。 MD 和 A 以及我們 10-K 表格年度報告的其他部分以及我們的其他 sec 文件。

Additionally, we'll be discussing certain non-GAAP financial measures, a reconciliation of these items to us. GAAP can be found on the quarterly earnings section of our investor relations website. Now I'll turn the call over to Marvin.

此外，我們將討論某些非公認會計原則財務指標，以及這些項目對我們的調節。 GAAP 可以在我們投資者關係網站的季度收益部分找到。現在我將把電話轉給馬文。

Thank you, Kate and good morning everyone and thank you for joining us today before discussing our third quarter results. I'd like to take a moment to offer my sympathy to the Marcus family on the passing of Bernie Marcus. Bernie and his partners, Arthur Blank Ken Langon and Pat Farrah invented the modern home improvement business model. And many years ago, Bernie took me under his wing to teach me the home improvement business. As a young executive, eager to learn about merchandizing marketing and business strategy for one of the icons of the industry. I was surprised that during my first meeting, the only thing that Bernie talked about was the importance of people, both customers and associates.

謝謝凱特，大家早上好，感謝您今天在討論我們第三季業績之前加入我們。我想花一點時間就伯尼·馬庫斯的去世向馬庫斯家族表示哀悼。伯尼和他的合作夥伴阿瑟·布蘭克·肯·蘭貢和帕特·法拉發明了現代家居裝修商業模式。許多年前，伯尼將我置於他的保護之下，教我家居裝修業務。作為一名年輕的高階主管，渴望了解行業標誌之一的商品行銷和業務策略。令我驚訝的是，在我的第一次會議上，伯尼唯一談到的就是人的重要性，包括顧客和員工。

Bernie provided me with a lot of coaching, wisdom and advice. During my early years in home improvement, he was a true original in every sense of the word. And because of his generosity and philanthropy, he leaves a legacy far beyond the home improvement industry from me personally and from all of us at Lowe's, our thoughts and our prayers go out to his family and to his loved ones.

伯尼為我提供了許多指導、智慧和建議。在我早年從事家居裝修工作時，他在各方面都是真正的原創者。由於他的慷慨和慈善事業，他給我個人和勞氏的所有人留下了遠遠超出家居裝修行業的遺產，我們的思念和祈禱向他的家人和他所愛的人表達。

Now allow me to transition to our third quarter results. Third quarter, sales were $20.2 billion and comparable sales were down 1.1%. Our results were modestly better than expected, even excluding storm related activity driven by strong pro and online sales and smaller ticket outdoor diy projects.

現在請容許我過渡到我們的第三季業績。第三季銷售額為 202 億美元，可比銷售額下降 1.1%。我們的結果略好於預期，甚至不包括由強勁的專業和線上銷售以及較小的戶外 DIY 項目驅動的風暴相關活動。

While demand for diy discretionary bigger ticket projects remain soft. We're tightly managing our operating expenses and continuing to invest in our total home strategy.

儘管對 DIY 可自由支配的大門票項目的需求仍然疲軟。我們正在嚴格管理我們的營運支出，並繼續投資於我們的整體家居策略。

We're particularly pleased with the sustained strength. We're delivering in two key areas, pro and online sales.

我們對持續的實力感到特別滿意。我們在兩個關鍵領域提供服務：專業銷售和線上銷售。

Our pro sales were up again in Q3 with high single digit positive comps. This growth is being driven by the investments we've made to better serve the small to medium sized pro which is our core pro customer.

我們的專業銷售在第三季再次成長，並取得了高個位數的正值。這一成長是由我們為更好地服務中小型專業人士（我們的核心專業客戶）而進行的投資所推動的。

Our efforts to transform the pro shopping experience continue to pay dividends.

我們為改變專業購物體驗所做的努力持續帶來回報。

We have the inventory depth and the brands that are the most important to these customers and we're making it easy for them to shop in our stores and online and through our pro loyalty program, we're giving them reasons to keep coming back later in the call. Joe will provide more detail on our efforts to continue our momentum in pro.

我們擁有對這些客戶來說最重要的庫存深度和品牌，我們讓他們可以輕鬆地在我們的商店和網上購物，並透過我們的專業忠誠度計劃，讓他們有理由繼續回來在通話中。喬將提供更多關於我們為繼續職業發展勢頭所做的努力的細節。

We also continue to grow our online sales with 6% comparable sales growth.

我們的線上銷售額也持續成長，可比銷售額成長了 6%。

We've increased both online conversion and traffic including a double digit increase in traffic on our Lowe's mobile app and we're making it easier and more convenient for customers to order paint and paint supplies online by expanding our free same day paint delivery program via a gig network.

我們增加了在線轉換率和流量，包括 Lowe's 行動應用程式流量的兩位數增長，並且我們通過擴展我們的免費當日油漆送貨計劃，使客戶可以更輕鬆、更方便地在線訂購油漆和油漆用品一個演出網。

And as a reminder, paint remains the number one home improvement project.

提醒一下，油漆仍然是排名第一的家居裝修項目。

So we've added more brands and products to our same day delivery options. So customers can get what they need to finish their projects faster delivered right to their home or job site.

因此，我們在當天送貨選項中添加了更多品牌和產品。因此，客戶可以更快地將完成專案所需的物品直接送到他們的家中或工作地點。

Customers are also leveraging our new instore mode in the Lowe's app, which gives them product information at their fingertips. Through the app. They are able to quickly access product details, reviews and in stock information and they can more easily navigate the store to find what they're looking for.

客戶還可以利用 Lowe's 應用程式中的新店內模式，讓他們輕鬆獲得產品資訊。透過應用程式。他們能夠快速存取產品詳細資訊、評論和庫存信息，並且可以更輕鬆地瀏覽商店找到他們想要的東西。

And if they don't see the exact product they need on the shelf, they can shop on the app right within the aisles of our stores for a larger selection of products and finishes from our extended aisle on Lowe's dotcom.

如果他們在貨架上沒有看到他們需要的確切產品，他們可以在我們商店過道內的應用程式上購物，從 Lowe's dotcom 的擴展過道中選擇更多的產品和飾面。

Another way we're driving traffic both online and in store is through our Mylowe's Rewards loyalty program which we just launched in March.

我們增加線上和店內客流量的另一種方式是透過我們三月剛推出的 Mylowe's Rewards 忠誠度計劃。

This free program is designed to reward diy customers for choosing Lowe's over other retail competitors for the home improvement needs. Customers are engaging in the program to take advantage of new member only offers, earn my Lowe's money and use their rewards. You'll hear more about our loyalty program from bill later in the call.

這項免費計劃旨在獎勵那些選擇 Lowe's 而不是其他零售競爭對手來滿足家居裝修需求的 DIY 顧客。客戶參與該計劃是為了利用新會員專屬優惠、賺取我的 Lowe's 資金並使用他們的獎勵。您將在稍後的通話中從比爾那裡聽到有關我們忠誠度計劃的更多資訊。

Now allow me to transition to the economy when it comes to the macro environment. This remains a challenging home improvement market while interest rates are beginning to drop, consumers continue to face affordability challenges as both inflation and interest rates are putting pressures on their wallet, mortgage rates also remain stubbornly high and there's still a meaningful GAAP between current mortgage rates to purchase a home and the homeowners existing rates with over half of current rates below 4% combined. With the lack of available homes for sale. Housing turnover remains near 30 year lows. Looking ahead, it's unclear when lower rates and improved consumer sentiment will translate into improved home improvement demand.

現在請容許我談談宏觀環境方面的經濟問題。這仍然是一個充滿挑戰的家居裝修市場，而利率開始下降，消費者繼續面臨負擔能力的挑戰，因為通貨膨脹和利率都給他們的錢包帶來壓力，抵押貸款利率也仍然居高不下，而且當前抵押貸款利率之間仍然存在有意義的公認會計原則購買房屋的房主現有利率中一半以上當前利率低於 4% 的總和。由於缺乏可供出售的房屋。房屋成交量仍接近 30 年來的最低點。展望未來，目前尚不清楚較低的利率和改善的消費者信心何時會轉化為改善的家居裝修需求。

However, the three primary drivers of our business continue to work in our favor. One strong home price appreciation, two disposable personal income is outpacing inflation and three, the medium age of homes is the oldest. It's been in us history. Currently sitting at 41 years old, these drivers will support demand over the long term, which means existing homeowners are likely to continue investing in repairs and upgrades to their homes especially as interest rate pressures ease. We expect that homeowners will start to tap into the record 35 trillion in home equity to finance larger home improvement projects.

然而，我們業務的三個主要驅動力繼續對我們有利。一是房價強勁升值，二是個人可支配所得超過通膨，三是房屋的中等房齡最老。它已經在我們的歷史中了。這些驅動因素目前已有 41 歲，從長遠來看將支持需求，這意味著現有房主可能會繼續投資於房屋維修和升級，尤其是在利率壓力緩解的情況下。我們預計房主將開始利用創紀錄的 35 兆房屋淨值來為更大的家居裝修項目提供資金。

These factors along with long term demand, drivers like millennial household formation, baby boomers, aging in place and continued remote work reinforce our optimism around the medium to long term outlook for the home improvement industry.

這些因素加上長期需求、千禧世代家庭組成、嬰兒潮世代、就地老化和持續遠距工作等驅動因素，增強了我們對家居裝修行業中長期前景的樂觀態度。

In the meantime, we're investing in our total home strategy to position the company for long term growth and sustainable market share gains in preparation for the anticipated home improvement market recovery.

同時，我們正在投資於我們的整體家居策略，以使公司實現長期成長和可持續的市場份額成長，為預期的家居裝修市場復甦做好準備。

We're looking forward to telling you more about our plans at our analyst and investor conference next month before I wrap up, I'd like to extend our thoughts and prayers to everyone who was impacted by hurricanes, Helene and Milton.

我們期待在下個月的分析師和投資者會議上向您詳細介紹我們的計劃，然後在我結束發言之前，我想向海倫和米爾頓等所有受颶風影響的人表達我們的思念和祈禱。

And I want to express my gratitude to our associates, suppliers and first responders for their efforts to support those in the storm's path.

我要向我們的員工、供應商和急救人員表示感謝，感謝他們為支持風暴中的人們所做的努力。

Working together. The teams provided round the clock support ahead of both hurricanes and immediately mobilized in their wake to help address urgent needs and impact the communities across the southeast.

一起工作。這些團隊在兩次颶風發生前提供了全天候支持，並在颶風過後立即動員起來，幫助解決緊急需求並影響東南部的社區。

As part of the largest storm recovery efforts in our company's history. Lowe's has pledged $12 million to support disaster relief assistance through several nonprofit organizations with boots on the ground. As part of this commitment, we recently announced plans to provide 2.5 million in grants and support to help small businesses in western North Carolina recover and to rebuild Joe Bill and Brandon will each share more detail on Loe's response efforts and provide more context on how these storms impacted our results.

這是我們公司歷史上最大規模的風暴復原工作的一部分。 Lowe's 已承諾提供 1200 萬美元，透過多個實地非營利組織支持救災援助。作為這項承諾的一部分，我們最近宣布計劃提供250 萬美元的贈款和支持，幫助北卡羅來納州西部的小型企業恢復和重建。細節，並提供更多背景信息，說明這些企業如何應對這些挑戰。

In closing. I'd like to thank all of our frontline associates for their dedication to serving our customers and supporting our communities. I especially would like to salute our frontline associates in Florida and North Carolina for their commitment to their neighbors and for their resiliency. Now, I'd like to turn the call over to Joe to talk more about our storm recovery efforts and our store operations.

結束時。我要感謝我們所有的第一線員工致力於服務我們的客戶和支持我們的社區。我特別想向佛羅裡達州和北卡羅來納州的第一線員工致敬，感謝他們對鄰居的承諾和堅韌。現在，我想把電話轉給喬，多談談我們的風暴恢復工作和商店運營。

Thank you, Marvin. And good morning everyone. Hundreds of stores felt the impact of hurricane Aline and Milton and our operations team worked tirelessly to get them up and running quickly. Leveraging our improved disaster response capabilities that we have continued to enhance over the years. Investments in our supply chain network helped us mobilize essential supplies, staging inventory in nearby distribution center facilities more efficiently ahead of the storms and flowing products to impact its stores more quickly afterward. Recent investments in pro job site delivery, especially in hurricane prone areas also help with our relief efforts so we can more quickly flow larger orders to our pro customers to support their work, helping homeowners recover in the largest activation of its history. Our command center team coordinated these efforts across the company while district and store managers responded to the needs of their communities by ensuring that critical supplies were positioned for convenient access for our customers.

謝謝你，馬文。大家早安。數百家商店受到了颶風艾琳和米爾頓的影響，我們的營運團隊不知疲倦地工作，讓它們快速恢復營運。利用我們多年來不斷增強的災難應變能力。對供應鏈網路的投資幫助我們調動了必要的物資，在暴風雨發生前更有效地在附近的配送中心設施中儲存庫存，並在暴風雨過後更快地流動產品以影響其商店。最近對專業工作現場交付的投資，特別是在颶風多發地區，也有助於我們的救援工作，因此我們可以更快地將更大的訂單發送給我們的專業客戶以支持他們的工作，幫助房主在歷史上最大規模的活動中恢復。我們的指揮中心團隊協調了整個公司的這些工作，而地區和商店經理則透過確保關鍵供應品的位置方便我們的客戶來滿足其社區的需求。

Additionally, hundreds of associates have volunteered in Western North Carolina to clean houses, clear debris and serve warm meals. And I'm particularly grateful to the over 1,000 emergency response team members who voluntarily left their homes to support stores in the impacted areas. These teams quickly mobilized to serve customers, reeling from storm impacts and to relieve local associates so they could focus on their own recovery efforts.

此外，數百名員工自願在北卡羅來納州西部打掃房屋、清除雜物並提供熱餐。我特別感謝 1,000 多名緊急應變小組成員，他們自願離開家園，為受影響地區的商店提供支援。這些團隊迅速動員起來，為遭受風暴影響的客戶提供服務，並為當地員工提供協助，以便他們能夠專注於自己的復原工作。

Despite the challenges posed by the storms, I'm pleased that we maintain our recent gains in customer satisfaction. This is a reflection of the investments we've made in tech driven enhancements to the customer experience, as well as the ongoing commitment of our associates to deliver outstanding customer service.

儘管風暴帶來了挑戰，但我很高興我們保持了最近在客戶滿意度方面的進步。這反映了我們在技術驅動的客戶體驗增強方面所做的投資，以及我們員工對提供卓越客戶服務的持續承諾。

Shifting gears to our performance. In pro as Marvin mentioned, we delivered positive high single digit pro comp sales in the quarter with broad based growth across regions and merchandizing categories. And we continued to deliver outsized growth in pro online sales driven by our enhanced digital offering for the pro. We recently launched shop the job, a digital shopping experience that helps our pro loyalty customers purchase everything they need for specific jobs more quickly and efficiently cutting down on the time spent sending runners from job site to buy forgotten items. We launched this program with a focus on kitchens, bath and flooring projects and look forward to expanding to additional project types as we incorporate our pro customers feedback on this initial rollout.

轉變我們的表現。正如馬文所提到的，在專業領域，我們在本季度實現了高個位數的專業銷售，並且跨地區和商品類別實現了廣泛的成長。在我們增強的專業數位產品的推動下，我們繼續實現專業線上銷售的大幅成長。我們最近推出了Shop the job，這是一種數位購物體驗，可幫助我們的忠誠度客戶更快、更有效率地購買特定工作所需的一切，減少將跑步者從工作現場送到購買遺忘物品所花費的時間。我們啟動了該計劃，重點關注廚房、浴室和地板項目，並期待在我們納入專業客戶對此初始推出的反饋後擴展到其他項目類型。

Looking ahead pros in our recent survey indicated that their backlogs remain strong and consistent with prior year. They also remain confident about their access to financing labor and materials. All key factors driving the success of their business.

展望未來，我們最近的調查顯示，專業人士的積壓量依然強勁，並且與去年保持一致。他們對獲得勞動力和材料融資也仍然充滿信心。推動其業務成功的所有關鍵因素。

Turning to our efforts to become the employer of choice in retail. A few weeks ago, we concluded our annual engagement survey. A critical component of our proactive associate listening strategy. Our 90 plus percent response rate is industry leading and we're pleased that our preliminary scores across the key measures of engagement and leadership effectiveness continue to improve. As past surveys show a correlation between more engaged associates and stronger business results driven by better customer service.

談談我們為成為零售業首選雇主所做的努力。幾週前，我們結束了年度敬業度調查。我們積極主動的員工傾聽策略的重要組成部分。我們 90% 以上的回覆率處於行業領先地位，我們很高興看到我們在敬業度和領導有效性關鍵指標上的初步得分不斷提高。過去的調查顯示，更敬業的員工與更好的客戶服務帶來的更強勁的業務成果之間存在相關性。

As Marvin mentioned, we continue to see increased engagement in our Mylowe's rewards programs and we're pleased this quarter to recognize first responders by upgrading them automatically to silver key status. This is part of our fourth annual First Responders Appreciation event held last month.

正如 Marvin 所提到的，我們繼續看到 Mylowe 獎勵計劃的參與度不斷增加，我們很高興本季度透過自動將急救人員升級為銀鑰匙狀態來表彰他們。這是我們上個月舉行的第四屆年度急救人員答謝活動的一部分。

This is just another way we're working to show our gratitude for the mission critical work they do for our communities.

這只是我們向他們為我們的社區所做的關鍵任務工作表示感謝的另一種方式。

Finally, I'm looking forward to discussing what's next on a perpetual productivity improvement or PPI I roadmap. Next month at the analyst and investor conference, we'll discuss our continuing efforts to elevate the customer experience while at the same time enhancing labor productivity through tech driven solutions.

最後，我期待討論永久生產力改善或 PPI I 路線圖的下一步。在下個月的分析師和投資者會議上，我們將討論我們為提升客戶體驗所做的持續努力，同時透過技術驅動的解決方案提高勞動生產力。

I would like to close by thanking all of our associates for their hard work and commitment to our customers. And now let me turn it over to Bill.

最後，我要感謝我們所有員工的辛勤工作和對客戶的承諾。現在讓我把它交給比爾。

Thank you Joe and good morning, everyone. We're pleased with the strong performance we delivered in pro and online again this quarter. And while diy bigger ticket discretionary demand remains pressured, we saw improved results in outdoor categories.

謝謝喬，大家早安。我們對本季在專業版和線上版中再次取得的強勁表現感到滿意。儘管DIY更大票券的可自由支配需求仍面臨壓力，但我們看到戶外類別的表現有所改善。

Now turning to our results in hard lines where we delivered positive comps driven in part by hurricane related sales of products like generators, chainsaws, cleaning supplies, water, gas cans, tarps and flashlights.

現在轉向我們的強硬業績，我們取得了積極的業績，部分原因是發電機、鏈鋸、清潔用品、水、煤氣罐、防水布和手電筒等與颶風相關的產品銷售。

We also saw customers engage in projects to help their lawns recover from a summer of intense heat which drove strength in outdoor categories like lawn care landscape products and fall cleanup supplies.

我們還看到客戶參與了幫助他們的草坪從夏季酷熱中恢復過來的項目，這推動了草坪護理景觀產品和秋季清潔用品等戶外類別的發展。

Taking all of this into account, we delivered positive comps for the quarter in both seasonal and outdoor living and hardware.

考慮到所有這些，我們在本季在季節性和戶外生活以及硬體方面提供了積極的回報。

Next, we're getting ready for the upcoming holiday season. We're offering customers innovative products at great values all season long.

接下來，我們正在為即將到來的假期做好準備。我們整個季節都為客戶提供超值的創新產品。

Starting with our new Black Friday buildup event. We're encouraging customers who are gearing up for the holidays to shop early with deals on top rated craftsman, DeWalt and Cobalt tools. And next week, we're excited to welcome customers to our Black Friday event where they can continue to save with online exclusive deals and special instore offers that will be too good to pass up during the event. Mylowe's rewards loyalty members will also have early access to more exclusive Doorbusters on Thanksgiving Day on Lowe's dotcom. In fact, since tools are perfect holiday gifts for both the do it yourselfer and the pro in your family, we have compelling offers from brands like Klein and DeWalt and DeWalt will take over the pro drop zone in a big way throughout the holiday season.

從我們新的黑色星期五集結活動開始。我們鼓勵準備迎接假期的顧客儘早購買頂級工匠、DeWalt 和 Cobalt 工具的優惠。下週，我們很高興歡迎客戶參加我們的黑色星期五活動，他們可以繼續透過線上獨家優惠和店內特別優惠來節省開支，這些優惠在活動期間將是不容錯過的。 Mylowe's 獎勵忠誠會員還可以在感恩節當天在 Lowe's dotcom 上搶先體驗更多獨家 Doorbusters。事實上，由於工具對於自己動手和家庭中的專業人士來說都是完美的節日禮物，因此我們提供了來自Klein 和DeWalt 等品牌的極具吸引力的優惠，而DeWalt 將在整個假期期間大力佔領專業人士的購物區。

We're featuring a great selection of Dewalt's best performing 20 volt max Xr batteries and power tools which have more power, longer run times and increased durability compared to a typical 20 volt battery turning to building products where we delivered comps above the company average, driven by positive comps in building materials with the continued strength in pro as well as hurricane related sales.

我們精選了一系列得偉性能最佳的20 伏特最大Xr 電池和電動工具，與典型的20 伏特電池相比，這些電池和電動工具具有更大的功率、更長的運行時間和更高的耐用性，我們在建築產品中提供的性能高於公司平均水平，受建築材料積極競爭以及專業和颶風相關銷售持續強勁的推動。

And we're continuing to add to our powerful pro brand Arsenal by welcoming to Lowe's the world leader in drywall tools, wallboard tools.

我們將繼續歡迎世界領先的乾牆工具、牆板工具 Lowe's 加入我們強大的專業品牌 Arsenal 。

This new assortment will include a comprehensive range of the best and most innovative products in the industry that caters to both seasoned drywall professionals and D wires with tools for every step of the drywall process. From taping knives and trials to texturing and repair patches. We're also pleased to introduce the P A steady set interior installation system, an innovative way for pros to install windows from the inside. It's faster and safer than exterior installation because installers now won't have to carry a window up a ladder.

這個新產品系列將包括一系列業內最好、最具創新性的產品，可滿足經驗豐富的干牆專業人士和 D 線的需求，並為乾牆工藝的每一步提供工具。從膠帶刀和試驗到紋理和修復補丁。我們也很高興推出 P A stable set 室內安裝系統，這是專業人士從內部安裝窗戶的創新方式。它比外部安裝更快、更安全，因為安裝人員現在不必將窗戶搬上梯子。

This innovative solution turns a three day installation into a one day job and reduces latter time by 70%.

這項創新解決方案將三天的安裝變成了一天的工作，並將後期時間縮短了 70%。

This will be a game changer for pros making it easier than ever for them to provide high quality window installation while cutting down on labor expense shifting now to home Decor, we continue to see ongoing pressure in diy bigger ticket discretionary projects in categories like flooring, kitchen and bath, and Decor in appliances. Third quarter comps improved slightly from our Q2 trends driven by growth in average ticket size, we delivered positive comps and laundry, partly driven by the expansion of the new all in one washer and dryer units and integrated wash towers.

這將改變專業人士的遊戲規則，使他們比以往任何時候都更容易提供高品質的窗戶安裝，同時減少現在轉移到家居裝飾的勞動力費用，我們繼續看到在地板、地板、廚房和浴室，以及電器的裝飾。第三季的業績較第二季的趨勢略有改善，這是由於平均客單尺寸的成長所推動的，我們提供了積極的業績和洗衣服務，部分原因是新的一體式洗衣機和烘乾機裝置以及整合式洗滌塔的擴張。

These new and exciting products are driving growth in laundry and reflect the customer's willingness to trade up for innovation in new products.

這些令人興奮的新產品正在推動洗衣業的成長，並反映出客戶願意升級換取新產品創新的意願。

Another example of consumers responding to innovation is in refrigeration with lg's new zero clearance line, which has a hinge system that allows homeowners to install the refrigerator in tight spaces and still fully open both doors with virtually no extra clearance needed.

消費者回應創新的另一個例子是 LG 新型零間隙系列冰箱，該系列具有鉸鏈系統，允許房主將冰箱安裝在狹窄的空間中，並且仍然完全打開兩扇門，幾乎不需要額外的間隙。

Finally, we're pleased to see continued momentum in our Mylowe's rewards loyalty program with promising results and key performance metrics like repeat purchases, average order value and penetration of loyalty member purchases.

最後，我們很高興看到 Mylowe 獎勵忠誠度計畫的持續發展勢頭，取得了可喜的成果和關鍵績效指標，例如重複購買、平均訂單價值和忠誠度會員購買滲透率。

And we're now leveraging the insights we gain from our loyalty program to transform our marketing with tailored offers by anticipating what customers need next. And we're reminding them to take advantage of their Milo's money, sending them tailored offers to entice them to return and shop categories. We know they've shopped before.

現在，我們正在利用從忠誠度計劃中獲得的見解，透過預測客戶的下一步需求，透過量身定制的產品來改變我們的行銷方式。我們提醒他們利用 Milo 的錢，向他們發送量身定制的優惠，以吸引他們返回併購買類別。我們知道他們以前購物過。

We're also giving members exclusive access to new product launches like best customer events and Doorbusters in October, we launched our first ever member week with offers across categories like appliances, kitchen and bath paint and more. For the first time, we now have the ability to drive our own event schedule for our diy customers. Instead of being tied to the calendar, we can now create events when we see an opportunity to drive excitement, traffic and sales.

我們還為會員提供獨家參與新產品發布的機會，例如 10 月份的最佳客戶活動和 Doorbusters，我們還推出了首個會員週，提供各種類別的優惠，如電器、廚房和浴室塗料等。現在，我們第一次能夠為 DIY 客戶制定自己的活動行程。現在，當我們看到有機會推動興奮、流量和銷售時，我們可以創建活動，而不是受日曆的束縛。

In closing. I'd like to thank our supplier, partners and merchants for their hard work and shared commitment to ensuring we have the right brands and the right assortment for our diy and pro customers. And I'd like to recognize two of our suppliers for their support of our storm recovery efforts. Starting with Niagara water. This team sent more than 700 truckloads of additional bottled water from their plants outside of our typical network, in many cases, turning around our orders in less than 24 hours to help us serve our customers in need and also firm and power equipment. They source generators from all around North America to get them to our stores and our customers in the hardest hit areas where their warehouse crews worked literally overnight and through the weekends to ensure our emergency orders arrived in less than 24 hours.

結束時。我要感謝我們的供應商、合作夥伴和商家的辛勤工作和共同承諾，以確保我們為 DIY 和專業客戶提供正確的品牌和正確的產品組合。我還要感謝我們的兩家供應商對我們的風暴復原工作的支持。從尼亞加拉水開始。該團隊從我們典型網路之外的工廠額外發送了700 多卡車瓶裝水，在許多情況下，在不到24 小時內完成了我們的訂單，以幫助我們為有需要的客戶以及公司和電力設備提供服務。他們從北美各地採購發電機，將發電機運送到我們位於受災最嚴重地區的商店和客戶那裡，他們的倉庫工作人員幾乎整夜和整個週末都在工作，以確保我們的緊急訂單在24 小時內送達。

They also deployed two storm trailers with dedicated staff to Lowe stores across Georgia, North Carolina and South Carolina to help our customers start their generators find the right product for their needs and even repair old units regardless of the brand. I want to thank them and all our suppliers who stepped up to help during this difficult time. And now I'd like to turn the call over to Brandon.

他們還向喬治亞州、北卡羅來納州和南卡羅來納州的Lowe 商店部署了兩輛配備專職人員的風暴拖車，幫助我們的客戶啟動發電機，找到適合他們需求的產品，甚至維修舊設備（無論品牌如何）。我要感謝他們以及所有在這個困難時期挺身而出提供幫助的供應商。現在我想把電話轉給布蘭登。

Thank you, Bill and Good morning.

謝謝你，比爾，早安。

Beginning with our Q3 results, we generated GAAP diluted earnings per share of $2.99 in the quarter. We recognized a pretax gain of $54 million on deferred consideration associated with the 2022 sale of our Canadian retail business, excluding this benefit we delivered adjusted diluted earnings per share of $2.89.

從第三季業績開始，我們本季的 GAAP 攤薄每股收益為 2.99 美元。我們確認了與 2022 年出售加拿大零售業務相關的遞延對價的稅前收益 5400 萬美元，不包括這一收益，我們實現了 2.89 美元的調整後稀釋每股收益。

My comments from this point forward will include certain non-GAAP comparisons that exclude this benefit where applicable third quarter sales were 20.2 billion with comparable sales down 1.1%.

我今後的評論將包括某些非 GAAP 比較，其中排除了這一收益，其中適用的第三季銷售額為 202 億美元，可比銷售額下降 1.1%。

We estimate the demand generated by hurricanes, Helene and Milton positively impacted comp sales by roughly 100 basis points.

我們估計颶風、海倫和米爾頓產生的需求對公司銷售產生了約 100 個基點的正面影響。

Excluding the storm related lift sales came in modestly better than expected, driven by continued strength in pro and online, as well as smaller outdoor projects as customers work to address the impact of intense summer heat on their outdoor living spaces. Comparable average ticket was up 0.2% driven by strength and pro an increase in average ticket for appliances and sales of storm related products.

排除與風暴相關的電梯銷售，在專業和線上以及小型戶外專案持續強勁的推動下，電梯銷售略好於預期，因為客戶正在努力解決夏季酷熱對其戶外生活空間的影響。由於電器和風暴相關產品銷售的強勁和推動，可比平均票價上漲了 0.2%。

Comparable transactions declined 1.3% as continued softness in diy discretionary projects was partly offset by growth and pro transactions.

可比交易量下降 1.3%，因為 DIY 可自由支配專案的持續疲軟部分被成長和專業交易所抵消。

Our monthly comps were down 3.3% in August, down 1.2% in September and up 1.3% in October. As hurricane related sales positively impacted the second half of the quarter.

我們的月度比較在 8 月下降了 3.3%，在 9 月下降了 1.2%，在 10 月上升了 1.3%。由於颶風相關的銷售對本季下半年產生了積極影響。

Gross margin was 33.7% of sales in the third quarter. Up slightly from prior year, gross margin benefited from ongoing PP I initiatives which were largely offset by continuing supply chain investments and storm related pressures which included mixed pressure from lower margin products like generators, chainsaws and lumber, incremental transportation costs to expedite product into affected areas and inventory losses from damages in multiple locations.

第三季毛利率佔銷售額的33.7%。毛利率較去年略有上升，受益於正在進行的PP I 計劃，該計劃在很大程度上被持續的供應鏈投資和風暴相關壓力所抵消，其中包括發電機、電鋸和木材等利潤率較低的產品的混合壓力，以及加快產品進入受影響地區的增量運輸成本多個地點因損壞而造成的面積和庫存損失。

Adjusted SDNA of 19.2% of sales delevered 86 basis points versus prior year adjusted SG and A was largely in line with our expectations except for direct storm related expenses which included philanthropic support for our communities and associates repair and impairment costs for damaged stores and facilities and incremental labor and other operating expenses like using diesel generators to power buildings during extended electrical outages, adjusted operating margin rate of 12.3% declined 86 basis points and the adjusted effective tax rate of 24.2% was in line with prior year inventory ended Q3 at 17.6 billion which was roughly flat to prior year as we continue to manage our purchases in line with sales trends and invest in key pro items.

調整後的SDNA 佔銷售額的19.2%，與前一年相比，調整後的SG 和A 去槓桿化了86 個基點，基本上符合我們的預期，但直接風暴相關費用除外，其中包括對我們社區和員工的慈善支持以及受損商店和設施的維修和減值成本增量勞動力和其他運營支出（例如在長時間停電期間使用柴油發電機為建築物供電），調整後的運營利潤率12.3% 下降了86 個基點，調整後的有效稅率24.2% 與去年第三季末的庫存176 億美元一致由於我們繼續根據銷售趨勢管理採購並投資於關鍵專業產品，因此與去年大致持平。

Now turning to capital allocation in the third quarter, we generated 728 million in free cash flow. Capital expenditures totaled 571 million. As we continue to invest in our key growth initiatives, we repurchased 2.9 million shares for $758 million and paid 654 million in dividends returning over 1.4 billion to our shareholders in September. We repaid a $450 million bond maturity and ended Q3 at adjusted debt to Ebitdar of 3.04 times and we delivered a return on invested capital of over 31% now turning to our outlook, we are updating our full year 2024 financial outlook to reflect better than expected third quarter results and anticipated modest storm related demand in the fourth quarter.

現在轉向第三季的資本配置，我們產生了 7.28 億美元的自由現金流。資本支出總計5.71億美元。隨著我們繼續投資於我們的關鍵成長計劃，我們以 7.58 億美元回購了 290 萬股股票，並支付了 6.54 億股股息，9 月向股東返還了超過 14 億美元。我們償還了4.5 億美元的債券到期，並在第三季結束時調整後的Ebitdar 債務為3.04 倍，我們的投資資本回報率超過31%，現在轉向我們的展望，我們正在更新2024 年全年財務展望，以反映好於預期的情況第三季業績和第四季度預計與風暴相關的適度需求。

While our third quarter results came in ahead of expectations. Much of it was driven by hurricane related sales while underlying diy demand remains pressured, especially for discretionary projects, taking these factors into account. We are now expecting 2024 sales in the range of 83 billion to $83.5 billion with comparable sales in a range of down 3% to down 3.5%.

雖然我們第三季的業績超出了預期。考慮到這些因素，其中大部分是由與颶風相關的銷售推動的，而潛在的 DIY 需求仍然面臨壓力，特別是對於可自由支配的項目。我們目前預計 2024 年銷售額將在 830 億至 835 億美元之間，可比銷售額將下降 3% 至 3.5%。

We also now expect adjusted operating margin of between 12.3% and 12.4% reflecting the benefits of our ongoing PPI initiatives as well as the incremental direct costs and a lower gross margin rate profile for storm related activities.

我們現在也預計調整後的營業利潤率將在 12.3% 至 12.4% 之間，這反映了我們正在進行的 PPI 計劃的好處以及風暴相關活動的增量直接成本和較低的毛利率狀況。

Additionally, we expect full year net interest expense of approximately 1.3 billion capital expenditures of approximately 2 billion and adjusted effective income tax rate of approximately 24.5%.

此外，我們預計全年淨利息支出約為13億美元，資本支出約為20億美元，調整後的有效所得稅率約為24.5%。

This results in an updated outlook for adjusted diluted earnings per share of approximately $11.80 to $11.90.

這導致調整後稀釋每股收益的最新前景約為 11.80 美元至 11.90 美元。

I'm confident that our continued investments in our total home strategy and our ability to effectively manage our business in any environment will allow us to navigate any near term market uncertainty while continuing to deliver long term shareholder value and with that. We will open it up for your questions.

我相信，我們對整體家居策略的持續投資以及我們在任何環境下有效管理業務的能力將使我們能夠應對任何短期市場不確定性，同時繼續提供長期股東價值。我們將打開它來回答您的問題。

(Operator Instructions)

（操作員說明）

Our first question is from the line of Peter Benedict with Baird.

我們的第一個問題來自彼得·本尼迪克特和​​貝爾德的路線。

Hi, good morning guys. Thanks. Thanks for taking the question first on just on the Diy Loyalty program you mentioned, you know, better penetration levels and, and renewal rates or repeat rates, I should say in the A OV any more color you can add on that. I'm curious, kind of where those maybe sit and, and curious on the year two playbook for, for Diy Loyalty. I imagine a lot has been focused on kind of gathering the the membership at this point, but just curious kind of what the year two playbook looks like for the Diy Loyalty program. That's my first question.

嗨，大家早安。謝謝。感謝您首先就您提到的 Diy 忠誠度計劃提出問題，您知道，更好的滲透水平以及續訂率或重複率，我應該在 A OV 中說您可以添加更多顏色。我很好奇，這些人可能會坐在哪裡，並且對 Diy Loyalty 的第二年劇本感到好奇。我想現在很多人都專注於收集會員，但只是好奇 Diy 忠誠度計劃的第二年劇本是什麼樣的。這是我的第一個問題。

Hey, Peter, this is Marvin. I'll take your question.

嘿，彼得，這是馬文。我來回答你的問題。

I would say we're really pleased with the entire program as a reminder, we launched it in March and we're continuing to see the membership bill this past October. We, we launched our first ever member week which really allowed us to hit a record enrollment week based on that event. So all in all we're extremely pleased. We're seeing the key metrics that really matter for loyalty program, things like repeat purchases, average order value for loyalty members. And we're also seeing a higher penetration of our loyalty members making larger purchases. Now, the caveat is that we're going to provide a lot more detail on this program, not only kind of where we are, but where we're headed at the analyst and investor conference next month. As a matter of fact, it's going to be one of our key discussion topics. So we'll kind of hold off on talking about the future of the program until that time, I'll see if Bill has any other specifics on the program. You know, just to share our degree of confidence and excitement around kind of what we're seeing thus far.

我想說的是，作為提醒，我們對整個計劃感到非常滿意，我們在三月啟動了它，並且在去年十月我們繼續看到會員法案。我們推出了有史以來的第一個會員週，這確實使我們能夠根據該活動創下註冊週的記錄。總而言之，我們非常高興。我們看到了忠誠度計畫真正重要的關鍵指標，例如重複購買、忠誠度會員的平均訂單價值。我們也發現，忠誠會員的購買量越來越大。現在，需要注意的是，我們將提供有關該計劃的更多細節，不僅是我們目前的情況，而且是我們在下個月的分析師和投資者會議上的發展方向。事實上，這將成為我們的主要討論主題之一。因此，我們將推遲討論該計劃的未來，直到那時，我將看看比爾是否有關於該計劃的任何其他細節。你知道，只是為了分享我們對迄今為止所看到的事情的信心和興奮程度。

You know, Peter, the only thing I would add is that, you know, in my prepared remarks, I talked about, you know, being able to offer some tailored events. And so next week, as we head into Black Friday on Thanksgiving Day, we'll give our members early access to some Milo's rewards offers. And so we're excited about that. And as Marvin mentioned, you know, we, we did our first ever October member only week. And so I think that, you know, allows us to, you know, learn a lot and we can now, you know, work within our own calendar to create these, you know, exclusive events for our members and you know, do some special things as we go forward.

你知道，彼得，我唯一要補充的是，你知道，在我準備好的發言中，我談到了能夠提供一些量身定制的活動。因此，下週，當我們進入感恩節黑色星期五時，我們將讓我們的會員儘早獲得一些 Milo 的獎勵優惠。所以我們對此感到興奮。正如馬文所提到的，你知道，我們第一次舉辦了十月會員專週。所以我認為，你知道，這讓我們能夠學到很多東西，你知道，我們現在可以在自己的日曆內工作，為我們的會員創建這些獨家活動，你知道，做一些當我們前進時，會發生一些特別的事情。

Okay, great. That's, that's helpful. Thanks on that. My follow up would just be around, around tariffs. Any, any way you'd, you want to frame kind of the exposure. And actually even more interested in just, you know what the playbook looks this time. You know, in the event some of the, some of the increases being tossed around, come to fruition. Everybody went through this a handful of years ago. Just curious, your kind of approach your level of exposure and your thoughts on tariffs if they are to, to increase your thanks so much.

好的，太好了。那就是，這很有幫助。謝謝你。我的後續行動將圍繞著關稅展開。任何你想要的曝光方式。事實上，你更感興趣的是，你知道這次的劇本是什麼樣的。你知道，如果其中一些、一些被拋來拋去的成長最終取得成果。幾年前每個人都經歷過這件事。只是好奇，你的接觸程度和你對關稅的想法（如果有的話），以增加你的感謝。

Yeah, so Peter, this is Marvin. I'll start it off by saying a statement of the obvious and that is, it's very early and like everyone, we're waiting to see what happens when the Trump administration actually, you know, takes office in January having said that, you know, we feel good about the processes and the systems we put in place, you know, since the first Trump administration to manage tariffs or other challenges, I'll hand it over to Bill to talk about some of the work we've done to diversify our sourcing over the past few years and then I'll see if Brandon after that has any additional comments.

是的，彼得，這是馬文。首先我要說一個顯而易見的聲明，那就是，現在還為時過早，像每個人一樣，我們正在等待川普政府實際上在一月份上任時會發生什麼，你知道，你說過，你知道，我們對我們建立的流程和系統感覺良好，你知道，自從第一屆川普政府管理關稅或其他挑戰以來，我將把它交給比爾來談談我們所做的一些工作在過去的幾年裡使我們的採購多樣化，然後我會看看布蘭登之後是否有任何其他評論。

Yeah, thanks Marvin. You know, you know, we, we've built.

是的，謝謝馬文。你知道，你知道，我們，我們已經建立了。

Out what I think is.

出我所想的是。

Probably one of the strongest teams in retail. And so as far as from a playbook perspective, you know, we've got enhanced tools, you know, a really strong process in order to deliver whatever gets thrown at us. In addition to Marvin's comment, we've been working over the last few years with our supplier partners and our private brand partners to diversify our products and we'll continue to do that. And you know, a big part of our playbook is to work closely with our suppliers to manage whatever, you know, comes our way. And so we feel really comfortable and confident that we can address whatever is that gets thrown at us.

可能是零售業最強大的團隊之一。因此，從劇本的角度來看，我們擁有增強的工具，一個非常強大的流程，可以交付我們遇到的任何問題。除了馬文的評論之外，過去幾年我們一直在與供應商合作夥伴和自有品牌合作夥伴合作，以使我們的產品多樣化，我們將繼續這樣做。您知道，我們的策略的一個重要部分是與我們的供應商密切合作，以管理我們遇到的任何問題。因此，我們感到非常放心和自信，我們可以解決任何向我們拋出的問題。

And Peter, this is Brandon, just as Marvin said, definitely staying very close to this. We're preparing internally for what may be coming from the new administration. I'll just mention roughly 40% of our cost of goods sold are sourced outside of the US and that includes both direct imports and national brands through our vendor partners. And as we look at potential impact, certainly would add product cost, but you know, timing and details remain uncertain at this point. But just as Bill said, we believe we're well prepared to respond when and if it does happen.

彼得，這是布蘭登，正如馬文所說，肯定與此保持非常接近。我們正在為新政府可能採取的措施進行內部準備。我只想提一下，我們大約 40% 的銷售商品成本是在美國境外採購的，其中包括直接進口商品和透過我們的供應商合作夥伴購買的國內品牌商品。當我們考慮潛在影響時，肯定會增加產品成本，但您知道，目前時間和細節仍不確定。但正如比爾所說，我們相信，當這種情況確實發生時，我們已經準備好了應對。

Great. Thanks so much guys. See you in a couple of weeks.

偉大的。非常感謝你們。幾週後見。

Thanks, Peter.

謝謝，彼得。

Our next question is from the line of Steven Forbes with Guggenheim Securities. Pleasure to see you with your questions.

我們的下一個問題來自古根漢證券公司的史蒂文·福布斯。很高興見到您提出問題。

Good morning, Marvin. Maybe a follow up to Peter's question on Diy and really just wanted to get your higher level thoughts on how you guys are thinking about planning the business for next year as we look at diy trends, you know, sort of, you know, this quarter maybe showing signs of stability on it on a multiyear basis or, I really just wanted to dig into, you know, how you guys are thinking about predicting or forecasting the diy performance of the business, just given some of the challenging comps you've had over the past couple of years here. And if there's any sort of path or visible path to a return to sort of stability in comp as it pertains to Diy.

早上好，馬文。也許是彼得關於 Diy 問題的後續，實際上只是想了解你們在考慮本季度 DIY 趨勢時如何考慮規劃明年的業務，從而獲得更高層次的想法也許在多年的基礎上顯示出穩定的跡象，或者，我真的只是想深入了解，你們知道，你們是如何考慮預測或預測業務的DIY 績效的，只是考慮到你們所經歷的一些具有挑戰性的比較過去幾年在這裡。如果有任何形式的路徑或可見的路徑可以恢復與 Diy 相關的比賽穩定性。

No. Hey, Steve, thanks for the question. And look, I, I stayed all the time with the team that we have to accept our reality as a company and the reality is we are a diy dominant business, which means that this is very important to us.

不，嘿，史蒂夫，謝謝你的提問。看，我，我一直和團隊在一起，我們必須接受我們作為一家公司的現實，而現實是我們是一家 DIY 主導企業，這意味著這對我們來說非常重要。

Our loyalty program that we launched this year was specifically designed around putting more control of the diy business, you know, under, you know, our stewardship versus being victims to the macro or really victims to weather patterns. And so we're excited, you know, next month to give some level of detail around the loyalty program and how we believe that that's going to give us the ability to again be more on offense, so to speak when you think about the diy customer. Now, the reality is, is that the macro environment, it puts a lot of pressure, you know, on our diy business because we kind of skew more to that big ticket diy, discretionary, you know, think of appliances, think of flooring, kitchen and bath, et cetera. And so we are requiring some positive response in the macro environment before we can change these trends the way that we would like. But our business thesis is really simple. We're going to continue to invest in pro and online and we're incredibly pleased with what we've seen thus far. Anytime you can deliver high single digit positive comps, you know, in any category in this environment, you know, you have to feel good about it. And as we've mentioned, we grew our online sales by 6%. So our, our business thesis is if we can continue to grow pro at two extra market, we can continue to grow online and we can get this diy business just growing at market based on some macro support. We're going to have a really good financial outcome. And so we're going to provide a lot of detail, you know, at the upcoming Amazon Investor conference specifically around our thoughts on the diy. And more importantly, the initiatives that we're going to be either executing at a higher level or implementing that we believe is going to give us a lot more ability to drive this customer segment in the future.

我們今年推出的忠誠度計畫是專門設計的，旨在加強對 DIY 業務的控制，在我們的管理下，而不是成為宏觀經濟的受害者或真正的天氣模式的受害者。因此，我們很興奮，你知道，下個月將提供有關忠誠度計劃的一定程度的細節，以及我們如何相信這將讓我們有能力再次更具進攻性，可以這麼說，當你想到 DIY 時顧客。現在，現實情況是，宏觀環境給我們的 DIY 業務帶來了很大的壓力，因為我們更傾向於大額 DIY，可自由支配，你知道，想想電器，想想地板、廚房、衛生間等。因此，我們需要在宏觀環境中做出一些積極的反應，然後才能以我們希望的方式改變這些趨勢。但我們的商業論文非常簡單。我們將繼續投資專業版和線上版，我們對迄今為止所看到的情況感到非常滿意。任何時候，只要你能夠提供高個位數的正面回報，你知道，在這種環境下的任何類別中，你都必須對此感覺良好。正如我們所提到的，我們的線上銷售額成長了 6%。因此，我們的業務主題是，如果我們能夠繼續在兩個額外市場上專業發展，我們就可以繼續在線上成長，並且我們可以在一些宏觀支援的基礎上讓這個 DIY 業務在市場上成長。我們將獲得非常好的財務成果。因此，我們將在即將舉行的亞馬遜投資者會議上提供大量細節，特別是圍繞我們對 DIY 的想法。更重要的是，我們將在更高層級執行或實施我們相信將使我們更有能力在未來推動這一客戶群的舉措。

Appreciate the color there, Marvin and just a quick follow up for Brandon two parts on on the storm related impacts, I guess. First, can you, can you quantify the comp contribution in the latter two months of the period and then as it specifically pertains to gross margin, you know, what were the storm related pressures on gross margin during the quarter?

我想，欣賞那裡的顏色，馬文，以及布蘭登關於風暴相關影響的兩個部分的快速跟進。首先，您能否量化該期間後兩個月的補償貢獻，然後因為它具體與毛利率有關，您知道，該季度與風暴相關的毛利率壓力是什麼？

Yes, Steven, it's Brandon just, you know, as I said in the prepared remarks, 100 basis points impact to comps in Q3 that was weighted to the back half of the quarter. And again, that's largely related to prep cleanup activities. You know, we saw strength in categories like generators, chainsaws, cleaning supplies, and lumber. But again, the majority of that, you know, back half weighted as it relates to our margins and pressure from the storms, you know, really what we saw in terms of impacting gross margins. It's reflective of product mix. Again, categories like generators op we had incremental transportation, damaged inventory in multiple locations and then from an SG and a standpoint, just a number of onetimers there as it relates to community support, facility, repairs, store impairments and then just some incremental OpEx to support our stores. So definitely a bit of a drag on the incremental sales mostly isolated to Q3.

是的，史蒂文，就是布蘭登，你知道，正如我在準備好的發言中所說，對第三季度的比較產生了100 個基點的影響，該影響被加權到本季度的後半段。再說一遍，這很大程度上與準備清理活動有關。您知道，我們看到了發電機、鏈鋸、清潔用品和木材等類別的優勢。但同樣，其中大部分，你知道，因為它與我們的利潤率和風暴的壓力有關，你知道，這實際上是我們在影響毛利率方面看到的。它反映了產品組合。同樣，像發電機運營這樣的類別，我們在多個地點都有增量運輸、損壞庫存，然後從SG 和角度來看，只有一些一次性的，因為它與社區支持、設施、維修、商店損壞有關，然後只是一些增量營運支出來支持我們的商店。因此，增量銷售肯定會受到一些拖累，而增量銷售主要集中在第三季。

Thank you.

謝謝。

Thank you.

謝謝。

Our next questions are from the line of Simeon Gutman with Morgan Stanley. Pleased to see with your questions.

我們的下一個問題來自摩根士丹利的西蒙·古特曼。很高興看到您的問題。

Hey, good morning, everyone. Thanks for getting me on. Can I just ask a follow up on maybe the hurricane and related to Q4, it looks like comps will be a little bit better because of hurricane, but ebit dollars doesn't look like it will be. So, is there anything unique on margin that's holding back Q4? And I apologize if you said it earlier and I missed it.

嘿，大家早安。謝謝你讓我上來。我可以問一下颶風以及與第四季度相關的後續情況嗎，看起來由於颶風，公司業績會好一點，但息稅前利潤看起來不會這樣。那麼，利潤率方面是否有什麼獨特因素阻礙了第四季的發展？如果你之前說過而我錯過了，我深感抱歉。

No, I think Simmy and this is Brandon, we, you know, are adding some modest storm related benefit, you know, to Q4 in the top line, but from a operating margin standpoint in Q4, excluding storm related impacts as it relates to the full year, rough, roughly in line with the prior year outlook. So as I mentioned, most of that's isolated to Q3, a slight impact on top line for Q4 but are not expecting any sort of significant drags from a gross margin or operating margin standpoint in Q4?

不，我認為西米和這是布蘭登，我們，你知道，正在第四季度的營收中添加一些與風暴相關的適度收益，但從第四季度的營業利潤率角度來看，排除了風暴相關的影響，因為它與全年情況粗略，與上年展望大致一致。正如我所提到的，其中大部分都與第三季度無關，對第四季度的營收略有影響，但預計第四季度的毛利率或營業利潤率不會受到任何重大拖累？

Okay. And now follow up on the pro it picked up on at least a single year basis. I think it's high, single digit. So can we can we talk about what's driving it? And I guess this may be difficult to answer, but when the cycle turns, you know, curious does tip traditionally does Diy or DM accelerate more and I get Diy is a bit depressed relative to, you know, where you'd like it to be. But does that mean it necessarily comes up first or does the probe strength continue given where it is?

好的。現在跟進它至少在一年內獲得的專業人士。我認為這個數字很高，個位數。那麼我們可以談談是什麼推動了它嗎？我想這可能很難回答，但是當週期轉變時，你知道，好奇傳統上 Diy 或 DM 加速得更快嗎？但這是否意味著它一定會先出現，或者探測強度會繼續存在？

It's SOSIM and I'll take the first part of that and I'll let Joe just give some specifics on some of the initiatives that we're seeing that's really driving the business. So if I could take you back, I mean, when we started this journey back in 2018, I mean, our propene administration was less than 20% and, and we didn't really have a true strategy to speak of and, and our toll home strategy is really starting to pay some benefits and that's really driving our performance, the things that, that I can be very specific on that we're seeing that's really resonating with our pro customers. And let me remind you, this is the small to medium Pro customer, which has a total adjustable market of about $250 billion just that small to medium Pro. And so our focus has been on expanding Pro brands, which, you know, Bill and his team have done just an incredible job of getting us brands that literally had walked away or brands that we had to reintroduce to our company.

這是 SOSIM，我將介紹第一部分，我將讓 Joe 詳細介紹一些我們看到的真正推動業務發展的舉措。所以，如果我可以帶你回顧一下，我的意思是，當我們在2018 年開始這趟旅程時，我的意思是，我們的丙烯管理量不到20%，而且我們並沒有真正的策略可言，而且我們的收費站策略確實開始帶來一些好處，這確實推動了我們的業績，我可以非常具體地說，我們看到這確實與我們的專業客戶產生了共鳴。讓我提醒您，這是中小型專業客戶，光是中小型專業客戶就擁有約 2500 億美元的總可調整市場。因此，我們的重點一直是擴大專業品牌，你知道，比爾和他的團隊做了一項令人難以置信的工作，為我們提供了實際上已經消失的品牌或我們必須重新引入我們公司的品牌。

We've improved service levels in the stores and I'll let Joe speak specifically on that and we've made just aggressive investments in what we call never out key skews to make sure that the pro is always service when they come in to buy those items.

我們已經提高了商店的服務水平，我會讓喬專門談談這一點，我們在我們所謂的“永不出現關鍵偏差”方面進行了積極的投資，以確保專業人士在進來購買時始終提供服務那些物品。

And our loyalty program is providing some level of stickiness even though we're going to talk, you know, next month at the investor conference, some some unique tweaks we're going to make to that and, and digital online for pro you grew double digits as well. And we're just really pleased with the fulfillment capabilities. So, so that's the snapshot of kind of how we performed as well as we did in Q3 as we think about the recovery. Obviously, we don't have a crystal ball but, but the way we look at it is what I said earlier, we're committed to growing pro at two extra market because we think that there's market share we can continue to gain. And the small to medium sized pro we believe it's up for grabs and also it's a very fragmented marketplace. So we believe that what we've designed can allow us to continue to grow that at two extra market. But when the market recovers, we believe that recovery is going to come in earnest in that diy big ticket and also for that, do it for me, customer. And those are going to be two specific topics that we're going to be very purposeful in discussing at the upcoming conference around initiatives to drive that. So we need inflection happens. We're going to be in a really good position as a company to take advantage of that inflection and have exactly what the customers need from technology and capabilities to serve them. Now, let me just transition to Joe and he can talk specifically about some of the service initiatives in the store that's really helping us drive this pro customer.

我們的忠誠度計劃提供了一定程度的黏性，儘管我們將在下個月的投資者會議上討論，我們將對此進行一些獨特的調整，並且為您成長的專業人士提供數位線上服務也是兩位數。我們對履行能力感到非常滿意。這就是我們在考慮復甦時的表現以及第三季表現的快照。顯然，我們沒有水晶球，但是我們看待它的方式就像我之前所說的那樣，我們致力於在兩個額外的市場上發展專業人士，因為我們認為我們可以繼續獲得市場份額。我們相信中小型專業人士的市場是有待爭取的，而且這是一個非常分散的市場。因此，我們相信我們的設計可以讓我們在兩個額外的市場上繼續成長。但當市場復甦時，我們相信復甦將在 DIY 大門票中認真實現，為此，請為我，客戶做這件事。這些將是兩個具體主題，我們將在即將召開的會議上圍繞推動這一目標的舉措進行有針對性的討論。所以我們需要發生改變。作為一家公司，我們將處於一個非常有利的位置，可以利用這種變化，並透過技術和能力來滿足客戶的需求，為他們提供服務。現在，讓我轉向喬，他可以具體談談商店中的一些服務舉措，這些舉措確實幫助我們吸引了這位專業客戶。

Yeah, thanks Marvin Simon. As you know, we've been focused on the pro for the last six years and it's all part of the total home strategy. And when I think about, you know, what is driving the pros to, you know, choose Lowe's today. And we talked a lot about the tools we continue to provide to the pro the easy, in and out the investments we're making in our outside sales teams. And more specifically, as you think about our pro fulfillment centers that we've been focused on across the country. And so these allow us to use these facilities in a dual purpose. And we're very pleased about the survey from Q3. The pros backlogs continue to have a lot of strength, they continue to remain healthy, really focused on smaller projects and we feel that our ability to service this pro is taking care.

是的，謝謝馬文·西蒙。如您所知，過去六年來我們一直專注於專業版，這都是整個家庭策略的一部分。當我想到，你知道，是什麼促使專業人士今天選擇 Lowe's。我們談論了很多關於我們繼續為專業人士提供的工具，以及我們在外部銷售團隊中進行的簡單投資。更具體地說，當您想到我們在全國範圍內關注的專業履行中心時。因此，我們可以將這些設施用於雙重目的。我們對第三季的調查感到非常高興。專業人士的積壓工作繼續擁有很大的實力，他們繼續保持健康，真正專注於較小的項目，我們認為我們為該專業人士提供服務的能力正在得到照顧。

Thank you very much.

非常感謝。

Our next questions are from the line of Christopher Horvers with JPMorgan. Please see your questions.

我們的下一個問題來自摩根大通的 Christopher Horvers。請查看您的問題。

Thanks guys and good morning. So I'm going to try to go after the Diy question a little bit of a different way. It looks like Diy was maybe down four, the first half was down about seven. Was this in line with your expectation? And then thinking forward, if you went back to post the financial crisis, there's a lot of small update projects like paint, some appliance replacement, maybe some Decor items in need. So as you look ahead, you know, how does the progression of Diy over the year influence your view on? Not only like when Diy flips but how it flips and do you think that this next cycle especially considering where rates are, you know, looks like that past period of like, you know, 2010 to 2013?

謝謝大家，早安。因此，我將嘗試以不同的方式來解決 Diy 問題。看起來 Diy 可能落後了四分，上半場則落後了七分左右。這符合您的預期嗎？然後展望未來，如果你回到金融危機之後，會有很多小的更新項目，例如油漆、一些電器更換，也許需要一些裝飾物品。所以當你展望未來時，你知道，一年來 Diy 的進展如何影響你的看法？不僅像 Diy 何時翻轉，還像它如何翻轉，你認為下一個週期，特別是考慮到利率的情況，你知道，看起來像過去的時期，你知道，2010 年到 2013 年？

Yeah, Chris, this is, this is Brandon, I'll just speak to, you know, high level diy performance and this kind of ex hurricane for the quarter. I would say our trends that we saw largely were, you know, in line with our expectations. As you mentioned, we continue to see strength in some of the smaller project activity. We called out outdoor projects. When we look at the diy customer, they remain engaged across key events and continue to look for value. We saw that, you know, over Labor Day and the Milos Rewards Week, but certainly continued underlying pressure in in big ticket discretionary. So categories like kitchen and bath, you know, flooring and decor and really continue to just see that tied to the macro. We look at mortgage rates that continue to remain elevated consumer sentiment, housing turnover, affordability continue to create pressure here in the near term. So, you know, we do see that pressure sort of continuing as we transition from 24 and into 25 we are expecting some level of additional engagement and some acceleration as we move from smaller repairs into some of the larger projects. But really the timing of that and the 25 and when that happens is still continues to be uncertain. So that's what we're looking for as we look for an inflection point. But as it relates to the near term, more in line with expectations at this point.

是的，克里斯，這是，這是布蘭登，我只想談談，你知道，高水準的 DIY 表現和本季的這種前颶風。我想說的是，我們看到的趨勢很大程度上符合我們的預期。正如您所提到的，我們繼續看到一些較小項目活動的實力。我們召集了戶外項目。當我們觀察 DIY 客戶時，他們仍然參與關鍵事件並繼續尋找價值。你知道，我們在勞動節和米洛斯獎勵週期間看到了這一點，但大票可自由支配的潛在壓力肯定持續存在。因此，廚房和浴室、地板和裝飾等類別確實繼續與宏觀相關。我們認為，抵押貸款利率持續保持高位，消費者信心、房屋週轉率、負擔能力在短期內持續構成壓力。所以，你知道，當我們從24 小時過渡到25 小時時，我們確實看到這種壓力仍在持續，我們預計，當我們從小規模維修轉向一些大型項目時，會有一定程度的額外參與和加速。但實際上，25 日的具體時間以及何時發生仍然不確定。這就是我們在尋找拐點時所尋找的。但由於它與近期有關，目前更符合預期。

And Chris, this is, this is Marvin. So we, we've been very specific over the last few years on where we placed our capital investments and we spent a lot on it, infrastructure on digital and we spend a lot on store improvements. So if you think about kitchen and bath showrooms, we have a best in class presentation in our stores and we have a best in class experience online. When you think about appliances, we have a best in class appearance in our stores and presentation. We have the best assortment in retail and we have the best experience online where we're the only retailer that can ship almost virtually any zip code in the country next day and day. And so my point is is we don't know when the inflection is going to occur, but we think it will occur in a diy do it for me category. And we made investments to position ourselves to be able to take market share and take our unfair share of the demand that will show up based on this $35 trillion in equity. That's out there in these homes that are aging, you know, on average of 41 years old in us history. So we don't know when the inflection happens, but when it happens, we've been building a playbook to be prepared and positioned to, to get our fair share and get our unfair share of that market demand. And that's what the intent is. Well, and we'll again provide more specifics on that, you know, when we update on our long term strategy next month, it more.

克里斯，這是，這是馬文。因此，過去幾年我們一直非常明確我們的資本投資方向，我們在數位基礎設施上投入了大量資金，並且在商店改進上投入了大量資金。因此，如果您考慮廚房和浴室展廳，我們在商店中提供一流的展示，並且在網路上提供一流的體驗。當您想到電器時，我們在商店和展示中擁有一流的外觀。我們擁有最好的零售品種，我們擁有最好的線上體驗，我們是唯一一家可以在全國範圍內日復一日運送幾乎任何郵政編碼的零售商。所以我的觀點是，我們不知道這種變化何時會發生，但我們認為它將發生在「DIY do it for me」類別中。我們進行投資是為了讓自己能夠佔據市場份額，並在基於這 35 兆美元股權的需求中佔據我們不公平的份額。你知道，在美國歷史上，這些房屋的平均年齡為 41 歲。因此，我們不知道這種變化何時發生，但當它發生時，我們一直在製定一個劇本，做好準備並做好準備，以獲得我們公平的份額，並獲得我們在市場需求中不公平的份額。這就是目的。好吧，我們將再次提供更多細節，你知道，當我們下個月更新我們的長期策略時，它會更多。

Specific to sorry, go ahead.

具體說抱歉，繼續。

More specifically to your smaller projects. You know, things that we've been focused on our same day delivery options or paint, paint samples, expanding our gig delivery network and then the infrastructure we've been building around our do it for me business. We've been laser focused on things like central selling to complement. And so again, we don't know when the inflection point will happen. We're certainly confident in the investments we're making.

更具體地說是針對您的小型專案。你知道，我們一直專注於當日交付選項或油漆、油漆樣品，擴大我們的零工交付網絡，然後是我們圍繞「為我做」業務構建的基礎設施。我們一直專注於集中銷售等方面的補充。同樣，我們不知道拐點何時會發生。我們對我們正在進行的投資當然充滿信心。

Got it. Thank you. And then my follow up is a margin question. So one was the hurricane actually a net drag to earnings. It seems like that's what your point is to. Can you share any detail there? And then I know you changed your operating margin for the for the storm impact. As you think about the gross margin, you had previously guided gross margin up in the 3rd and 4th quarter. I think it would have been ex the storm impact. Do you still expect gross margin up in the fourth quarter.

知道了。謝謝。然後我的後續行動就是保證金問題。因此，颶風實際上對利潤產生了淨拖累。看來這就是你的意思。你能在那裡分享一些細節嗎？然後我知道您因風暴影響而改變了營業利潤率。當您考慮毛利率時，您之前曾指導第三季和第四季的毛利率上升。我認為這應該是風暴影響前的情況。您仍然預期第四季毛利率會上升嗎？

Yeah, Chris, you know, to the first part of your question from an earnings standpoint, it was slightly accretive. So carried a lower margin profile but still accretive to earnings when we look at the incrementality on on the sales. And then your second part of your question on the grows margin profile. And I'm speaking for the year now, we still are roughly expecting flat for the full year. So that's inclusive of the hurricane related pressure that we called out from Q3 ongoing headwinds as it relates to margin. Our supply chain investments with market delivery in the early innings of pro fulfillment network. And then in terms of offsets there, merchant supply chain, you know, PP I SO initiatives including expanding private brands, pricing initiatives. And then we're seeing really nice progress on the cost clawback with our suppliers and we've seen that benefit accelerate as we move through the year and turn through inventory and then other items in gross margin items like credit and shrink continue to be roughly flat for the full year. So really great job by the teams managing those pressures.

是的，克里斯，你知道，從收益的角度來看你問題的第一部分，它有點增值。因此，儘管利潤率較低，但當我們考慮銷售增量時，收益仍然會增加。然後是關於利潤成長情況的問題的第二部分。我現在談論的是今年，我們仍然大致預期全年持平。因此，這包括我們從第三季持續的逆風中指出的與颶風相關的壓力，因為它與利潤率有關。我們的供應鏈投資與市場交付在專業履行網路的早期階段。然後就抵銷而言，商家供應鏈，PP I SO 措施包括擴大自有品牌、定價措施。然後，我們看到我們的供應商在成本回撥方面取得了非常好的進展，並且隨著我們全年的發展和庫存週轉，以及信貸和收縮等毛利率項目中的其他項目，我們看到這種效益正在加速成長。團隊在管理這些壓力方面做得非常出色。

Thanks so much.

非常感謝。

Thanks Chris.

謝謝克里斯。

Our next question from the line of Eric Bossard with Cleveland Research. Please see your questions.

我們的下一個問題來自克利夫蘭研究中心的埃里克·博薩德（Eric Bossard）。請查看您的問題。

Thanks, two. Things. First of all, Bill you talked about and Marvin, you talked about as well. Affordability challenges is something that's pressuring the consumer. I'm curious how you're thinking now and even in 25 what you're doing in response to that, I guess you talked about a couple of categories, appliances where maybe there was some trade up. But curious if you think about promotions and price points, if you're doing anything in response to that, to better position the business for traffic with consumers or where you are now is where you want to stay.

謝謝，兩位。事物。首先，你談到了比爾，你也談到了馬文。負擔能力的挑戰給消費者帶來了壓力。我很好奇你現在是怎麼想的，甚至在 25 年後你正在做些什麼來回應這一點，我猜你談到了幾個類別，可能有一些升級的電器。但好奇的是，如果你考慮促銷和價格點，如果你正在採取任何措施來應對這一點，以便更好地定位業務以吸引消費者，或者你現在所處的位置就是你想要停留的地方。

Yeah, Eric, you know, great question. You know, we continue to stay focused, really laser focused on value. And as we've said in, you know, past meetings, you know, value can come in a number of different ways that can certainly come through, price, can come through new and innovative products. And we've seen it really come all three ways. And so some of the stuff that I referenced in my prepared remarks, you know, being able to drive some of these smaller projects was really value driven based on, you know, getting the consumer, you know, focused on different, you know, projects and products across the store. And as we head into the holiday season, you know, we're obviously excited about, you know, some of the new stuff that we're bringing, we've got, you know, great value use across the board from, you know, Klein DeWalt Craftsman Cobalt. We've got great innovation coming from appliances as well as new products that we're introducing as I called out in my prepared remarks from LG in these, you know, laundry, you know, this new innovation and laundry with the all in one is really a whole new segment and that's not a low price point, but it's a great value product when a consumer looks to combine both a washer and a dryer in one. And now it's a category of products where it had only been one item in the past. And then as we, you know, said about Mylowe's rewards that gives us the opportunity to differentiate to our members and offer them, you know, you know, best customer offers as well as you know, exposure to new stuff ahead of time. So yes, to your question, you know, we want to continue to do it through a number of different avenues and we're going to be laser focused on it as we go forward just as we have been.

是的，艾瑞克，你知道，這是個好問題。你知道，我們持續保持專注，真正專注於價值。正如我們在過去的會議中所說，價值可以透過多種不同的方式來實現，價格當然可以透過新的和創新的產品來實現。我們已經看到它確實以三種方式出現。因此，我在準備好的發言中提到的一些內容，你知道，能夠推動一些較小的項目確實是價值驅動的，基於，你知道，讓消費者專注於不同的，你知道的，整個商店的項目和產品。當我們進入假期時，你知道，我們顯然對我們帶來的一些新東西感到興奮，你知道，我們全面利用了巨大的價值，你知道。正如我在 LG 準備好的演講中指出的那樣，我們在電器和我們推出的新產品方面取得了巨大的創新，你知道，洗衣，你知道，這種新的創新和洗衣一體機這確實是一個全新的細分市場，而且價格並不低，但當消費者希望將洗衣機和烘乾機合而為一時，它是一款非常有價值的產品。現在它是一個產品類別，而過去它只是一個項目。然後，正如我們所說的，Mylowe 的獎勵使我們有機會區分我們的會員，並為他們提供最好的客戶優惠以及提前接觸新事物的機會。所以，是的，對於你的問題，你知道，我們希望繼續透過多種不同的途徑來做到這一點，並且我們將像以前一樣，在前進的過程中集中精力於此。

And then secondly, as you, as you think about again related or considering the affordability challenges, when you think of, as you commented, sustained pressure on Diy and especially Diy, discretionary if you think about, we don't know what's going to happen with tariffs, but we do know what's going to happen with tariffs that there's going to be some incremental cost and, and certainly on your direct sourced business. And then you think about managing expenses, I'm just curious how you think about managing expenses as it relates to margin in an environment with the sluggish demand with, with probably some incremental costs coming through. You've done a good job in the past in taking cost out to manage margins through this environment. I don't know in terms of what's going on. Now, is there anything incremental or any incremental opportunity on the horizon in the area of managing expenses to manage margin?

其次，當您再次考慮相關或考慮負擔能力挑戰時，正如您所評論的那樣，當您想到 Diy 面臨的持續壓力，尤其是 Diy 的持續壓力時，如果您考慮的話，我們不知道會發生什麼關稅會發生這種情況，但我們確實知道關稅會發生什麼，這會產生一些增量成本，當然也會影響您的直接採購業務。然後你考慮管理費用，我只是好奇你如何看待管理費用，因為它與需求疲軟的環境中的利潤有關，可能會產生一些增量成本。過去，您在透過這種環境降低成本來管理利潤方面做得很好。我不知道發生了什麼事。現在，在管理費用以管理利潤方面是否有任何增量或增量機會？

So, Eous Marvin, I'll take the first part and I'll hand it over to Brandon. I think, relative to managing expenses, I would look at the reputation of this team and how well we have focused on not only just the fundamental management of the business and being really, really prudent on taking out costs and expenses, but also on our PP I initiatives and how that's permeated to every functional area of the company. And so that's going to maintain, irrespective of the macro and garment, irrespective of our topline revenue. We're going to be laser focused on taking our costs and managing expenses so we can get more of that flow through to the bottom line. I'll let Brandon add any additional.

所以，Eous Marvin，我將承擔第一部分，並將其交給布蘭登。我認為，相對於管理費用，我會關注這個團隊的聲譽，以及我們不僅專注於業務的基本管理，在支出成本和費用方面非常非常謹慎，而且還關注我們的財務狀況。到公司的每個職能領域。因此，無論宏觀和服裝如何，無論我們的營收如何，這種情況都將維持下去。我們將集中精力控製成本和管理開支，這樣我們就能獲得更多的利潤。我會讓布蘭登補充任何額外的內容。

Marvin or Eric just to add on what Marvin said, SG&A excluding, you know, the hurricane benefits for this year, largely in line with our expectations. We're super pleased as to how we've been managing the business over the last three years. Amidst significant top line pressures, we've continued to make investments in our strategic initiatives, continue to manage our margins. We have great alignment across the organization to maintain discipline and expense management, effective cost controls. And then as Marvin mentioned our PP and initiatives where those have come into play continue to flex the muscles to manage the P&L really outrun our expectations for this year. So we're going to continue with that. We have next inning of PP initiatives we're going to talk through in December as we look ahead and continue to be pleased with the progress that we're making there on this year.

馬文或艾瑞克只是補充馬文所說的，SG&A 不包括今年的颶風福利，基本上符合我們的預期。我們對過去三年來管理業務的方式感到非常滿意。在巨大的收入壓力下，我們繼續對戰略計劃進行投資，繼續管理我們的利潤。我們在整個組織內保持高度一致，以維持紀律和費用管理以及有效的成本控制。然後，正如馬文所提到的，我們的 PP 和那些已經發揮作用的舉措繼續發揮肌肉來管理損益，確實超出了我們今年的預期。所以我們將繼續這樣做。我們將在 12 月討論下一階段的 PP 舉措，展望未來，我們將繼續對今年的進展感到滿意。

Thanks.

謝謝。

Thank you.

謝謝。

Our next question is from the line of Karen Short with Melius Research. Please see with your questions.

我們的下一個問題來自 Melius Research 的 Karen Short。帶著你的疑問請看一下。

Hey, thanks very much. Just a few questions. The range in four Q is very wide when I look at operating profit growth and margin expansion specifically. So maybe can you talk to that a little bit? And then II, I don't know where your philosophy is on breaking out storms just going forward. But can you give an impact of the storm specifically on October?

嘿，非常感謝。只是幾個問題。當我具體考慮營業利潤成長和利潤率擴張時，第四季的範圍非常寬。那麼也許你能談談這一點嗎？然後II，我不知道你的理念是什麼，也就是爆發風暴，繼續前進。但您能具體說明十月份風暴的影響嗎？

So Karen, I'll talk about your first question on the range and really, as it relates to operating margin in EPS, just a function of the 50 basis point range that we have for top line. Again, that assumes no improvement underlying, you know, macro pressures, we still expect big ticket diy pressure kind of across both ends of the range. And then really when we look at Q4 weather can be volatile, the timing kind of intensity of storms can, can impact demand. And we also have, you know, one less shopping week between Thanksgiving and Christmas, which, you know, this year could create some volatility and that could impact how, you know, kind of holiday demand plays out. So we try to be prudent in setting those expectations and allowed for a bit of that uncertainty as it relates to the top line range and that's reflected in the operating margin in EPS. And then I think to the second part of your question, you know, we're comfortable given the guidance on the storm related impact for the full quarter, the 100 basis points. And we're, we're not going to get into the details of breaking that out by month.

凱倫，我將討論你關於範圍的第一個問題，實際上，因為它與每股收益的營業利潤率有關，只是我們為頂線設定的 50 個基點範圍的函數。同樣，假設宏觀壓力沒有改善，我們仍然預期在該範圍的兩端都會出現大額DIY壓力。然後，當我們觀察第四季的天氣時，確實會出現波動，風暴的強度時間可能會影響需求。而且，您知道，感恩節和聖誕節之間的購物週會減少，這可能會造成今年的一些波動，並可能影響假期需求的表現。因此，我們在設定這些預期時盡量謹慎，並考慮到一些不確定性，因為它與營收範圍相關，並且反映在每股收益的營業利潤率中。然後我認為對於你問題的第二部分，你知道，考慮到整個季度風暴相關影響的指導，即 100 個基點，我們感到很滿意。我們不會詳細討論按月劃分的細節。

Okay. And then just my follow up as it relates to your Analyst day. Are you still thinking about a format that gives three scenarios or is that maybe too complicated?

好的。然後是我的跟進，因為它與您的分析師日相關。您是否還在考慮提供三種場景的格式，或者這可能太複雜了？

Yeah, Karen, we're, we're excited for Analyst Day. We will provide an update on financial expectations, one for the home improvement market. And then as you mentioned, we're also looking forward to sharing some initial scenario planning views for 2025 and beyond. So we are preparing to have that discussion here in a few weeks.

是的，凱倫，我們對分析師日感到興奮。我們將提供最新的財務預期，其中一項是針對家居裝修市場的。正如您所提到的，我們也期待分享 2025 年及以後的一些初步情境規劃觀點。因此，我們準備好幾週後在這裡進行討論。

Okay. Thanks very much.

好的。非常感謝。

Thank you, Karen.

謝謝你，凱倫。

Our next question in the line of Seth Sigman with Barclays. Please proceed with your questions.

我們的下一個問題是由巴克萊銀行的賽斯·西格曼提出的。請繼續回答您的問題。

Hey, good morning, everyone. Just a couple of margin, follow up questions. So if you could just update us on the vendor clawbacks, just the progress with that, it would be great if we could quantify the benefit this quarter. And if you could just remind us, is this a one time step up by kind of building up through this year? And then we should expect, you know, more gradual gains from here as part of some of the processes you put in place or any other way to think about that? Thank you.

嘿，大家早安。只是幾個邊距，後續問題。因此，如果您能向我們介紹供應商收回的最新情況以及進展情況，那麼如果我們能夠量化本季的收益，那就太好了。如果您能提醒我們，這是今年的累積嗎？然後我們應該期待，你知道，作為你制定的一些流程的一部分，或者任何其他方式來思考這個問題，我們會從這裡獲得更多漸進的收益？謝謝。

So Seth, this is Bill. I'll take the first part and I'll let Brandon have the second part of this. But I think it's important to remind everybody that, you know, cost management is an ongoing process that the teams are always involved in. And you know, we're obviously pleased with the progress that we've made this year to help reduce costs and you know, c claw some of those back. And as we've talked about before, you know, really appreciate the support of our supplier partners in order to do that. And then we're looking to, you know, invest, you know, those, you know, some of those dollars to remain competitive in the market as it relates to price, using it to drive traffic and sales on, you know, seasonally relevant offers that make sense as well as investing in marketing and in store merchandizing efforts so that we can put that money to work.

賽斯，這是比爾。我將負責第一部分，我將讓布蘭登負責第二部分。但我認為重要的是要提醒大家，成本管理是一個團隊始終參與的持續過程。正如我們之前談到的，您知道，我們非常感謝我們的供應商合作夥伴為此提供的支持。然後我們希望，你知道，投資，你知道，其中一些美元，以保持在市場上的競爭力，因為它與價格有關，用它來推動流量和銷售，你知道，季節性有意義的相關優惠以及投資於行銷和商店推銷工作，以便我們能夠將這筆錢投入工作中。

But yeah, ongoing ongoing efforts and will remain an ongoing effort as we go forward.

但是，是的，我們正在不斷努力，並且在我們前進的過程中仍將繼續努力。

And so just as it relates to quantification of that I would just say meeting our expectations as we outlined at the beginning of the year and it was, we did know it was back half loaded. So as we've made progress with our suppliers taking cost out, we expected that to flow through inventory and and positively impact gross margin more significantly as we move through the back half of the year. But also, as bill mentioned, we're continuing to invest in traffic driving initiatives that could be through, you know, better offers reduced price investments in advertising. So it's going to kind of be sprinkled across different areas of the P&L at different times of the year. But just in terms of our overall goals that we set out at the beginning of the year, really nice progress against that.

因此，正如它涉及量化一樣，我只想說滿足了我們在年初概述的預期，而且我們確實知道它已經加載了一半。因此，隨著我們在供應商削減成本方面取得了進展，我們預計下半年這將透過庫存流動，並對毛利率產生更顯著的正面影響。而且，正如比爾所提到的，我們將繼續投資於流量驅動計劃，這些計劃可以透過更好地降低廣告價格投資來實現。因此，它會在一年中的不同時間分佈在損益表的不同領域。但就我們年初制定的整體目標而言，我們確實取得了不錯的進展。

And Seth this is Marvin. I'll just add just one additional comment, you know, when when I arrived here, you know, cost discussions with suppliers were emotional conversations with no internal data. And, and we've now built out a team, we've built out systems processes that are data driven with component costs with raw material costs and with a very detailed analysis that that gives Bill's team and Brandon's team the ability to sit down and have very data driven conversations with suppliers relative to any cost increase or cost quals to Bill's point. This will be ongoing, it will be ongoing based on a much more robust process that we have in place that we didn't have before. And that's one of the main reasons why as we get into this, you know, unpredictability of a tariff environment. You know, we're going to be very positioned to manage that as well as any other retailer in the world.

賽斯，這是馬文。我只想添加一條額外的評論，你知道，當我到達這裡時，你知道，與供應商的成本討論是沒有內部數據的情感對話。而且，我們現在已經建立了一個團隊，我們已經建立了由數據驅動的系統流程，包括組件成本和原材料成本，並進行了非常詳細的分析，這使比爾的團隊和布蘭登的團隊能夠坐下來討論與供應商就任何成本增加或成本符合比爾的觀點進行非常數據驅動的對話。這將持續進行，它將基於我們以前沒有的更強大的流程進行。這就是我們陷入關稅環境不可預測性的主要原因之一。你知道，我們將有能力像世界上任何其他零售商一樣管理這一點。

Thank you for that. I guess even with the idea that you can continue to reinvest back in the business, you have put out an algorithm that points to operating margin expansion based on certain revenue targets. As you think about next year, you're going to be lapping a lower gross margin in the first quarter, you'll be lapping some of these incremental hurricane costs. Although I guess net net you've had a positive impact to EBIT. But I'm just curious, has your view changed at all about the operating leverage in the model, the type of comp you need to to get that break even or operating leverage. Thank you.

謝謝你。我想即使您可以繼續對業務進行再投資，您也已經推出了一種演算法，該演算法指出基於某些收入目標的營業利潤率擴張。當您考慮明年時，您將在第一季獲得較低的毛利率，您將獲得一些增量颶風成本。雖然我猜你對息稅前利潤產生了正面的影響。但我只是好奇，您對模型中的營運槓桿、實現損益平衡或營運槓桿所需的補償類型的看法是否發生了變化。謝謝。

Yeah, this is Brandon. I would say you, you highlighted kind of our flowthrough rule of thumb and I would just say it's just that right directional framework on how we expect to manage you know, through different sales environments. This team, as we've mentioned, has proven our ability to manage profitability well, through the downturn that we've been experiencing, continue to deliver on PP commitments and as it relates to kind of reframing that and how we're thinking about specifically 2025 scenarios and even beyond, we're going to hold off really on that discussion. I look forward to sharing details plans next month at our A IC on that and Rob with that, we have Tom for one more question.

是的，這是布蘭登。我想說的是，您強調了我們的流程經驗法則，我只想說，這只是我們期望如何透過不同的銷售環境進行管理的正確方向框架。正如我們所提到的，這個團隊已經證明了我們有能力很好地管理盈利能力，度過了我們所經歷的低迷時期，繼續履行 PP 承諾，因為它涉及到一種重構以及我們如何思考特別是2025 年甚至更遠的情況下，我們將真正推遲討論。我期待著下個月在我們的 A IC 上分享有關該問題的詳細計劃，羅布（Rob），我們還有一個問題請湯姆（Tom）回答。

And our final question comes from line of Chuck Grom with Gordon Haskett.

我們的最後一個問題來自查克·格羅姆和戈登·哈斯克特的台詞。

Hey, thanks, good morning. Just to follow up on Eric's question earlier, your PPI efforts continue to be the gift that keeps on giving. Can you guys size up the opportunities set as we look ahead, you know, are there significant significant buckets to source from? And then my follow up is you called out five of your 15 regions outperforming. Are there any commonalities across those areas? One of your competitors called out the West as being a pretty strong region for them over the past few quarters? Just curious if you're seeing that too. Thank you.

嘿，謝謝，早安。繼續回答 Eric 之前的問題，您在 PPI 上的努力仍然是不斷給予的禮物。你們能否評估我們展望未來所設定的機會，你們知道，是否有重要的來源可以獲得？然後我的後續行動是，你們在 15 個地區中指出了 5 個地區表現出色。這些領域有什麼共同點嗎？您的一位競爭對手稱西方在過去幾季中對他們來說是一個相當強大的地區？只是好奇你是否也看到了。謝謝。

So, relative to PP I, we're going to give a really robust update at the December, Alison investor meeting, but at a high level, we think we're in the early endings. This is a gift that keeps on giving because we keep on working the gift so it can continue to keep on giving. And a lot of it is technology driven and a lot of it is process driven and we're really excited about the possibilities. And you will hear from almost every presenter, you know, at our upcoming conference in December on ways they are identifying PP I value within their functional areas and relative to regional breakouts I would say relatively consistent with the exception of hurricane impacted areas. If you remove that, our overall performance was consistent relatively from coast to coast.

因此，相對於 PP I，我們將在 12 月的艾莉森投資者會議上提供非常強勁的更新，但在較高層面上，我們認為我們正處於早期結局。這是一份持續給予的禮物，因為我們不斷地努力這份禮物，它才能繼續給予。其中很多是技術驅動的，很多是由流程驅動的，我們對這些可能性感到非常興奮。您知道，在我們即將於12 月舉行的會議上，您會聽到幾乎每一位演講者都講述了他們在其職能領域內識別PP I 價值的方式，以及相對於區域突破的方式（我想說，除了受颶風影響的區域之外，相對一致）。如果除去這一點，我們的整體表現在各個海岸之間相對一致。

Great. Thank you.

偉大的。謝謝。

Thank you all for joining us today. We look forward to speaking with you at our analyst and investor conference on December 11th.

感謝大家今天加入我們。我們期待在 12 月 11 日的分析師和投資者會議上與您交談。

Thank you. This concludes Lowe's third quarter, 2024 earnings call. You may now disconnect.

謝謝。 Lowe's 2024 年第三季財報電話會議到此結束。您現在可以斷開連線。