目標百貨 (TGT) 2022 Q4 法說會逐字稿

Well, good morning, everyone, and welcome to our 2023 Financial Community Meeting. I'd like to start by welcoming the investors and others who are attending this meeting remotely. And of course, we're happy that so many of you have joined us here in person today.

好吧，大家早上好，歡迎參加我們的 2023 年金融社區會議。首先，我想歡迎遠程參加這次會議的投資者和其他人。當然，我們很高興今天有這麼多人親自來到這裡。

Before I turn it over to Brian to start the meeting, I have a couple of important disclosures. First, any forward-looking statements that we make this morning are subject to risks and uncertainties, the most important of which are described in our SEC filings. And second, in today's remarks, we refer to non-GAAP financial measures, including adjusted earnings per share. Reconciliations of all non-GAAP measures to the most directly comparable GAAP measure are included in our financial press releases, financial presentations and SEC filings, which are posted on our Investor Relations website.

在我把它交給布賴恩開始會議之前，我有幾個重要的披露。首先，我們今天早上所做的任何前瞻性陳述都受到風險和不確定性的影響，其中最重要的在我們提交給美國證券交易委員會的文件中有所描述。其次，在今天的評論中，我們提到了非 GAAP 財務指標，包括調整後的每股收益。所有非 GAAP 指標與最直接可比的 GAAP 指標的對賬包含在我們的財務新聞稿、財務演示文稿和 SEC 文件中，這些都發佈在我們的投資者關係網站上。

With that, I'll turn it over to Brian to begin the meeting.

有了這個，我會把它交給布賴恩開始會議。

(presentation)

（推介會）

Well, good morning, and thank you for joining us. Looking forward to spending this time with you. We're eager to share our plans, including how we'll continue to grow, how we'll continue to rebuild profitability on that growth and how we'll strengthen our business in conditions that have changed a lot since we gathered here at the Time Center last year.

好吧，早上好，感謝您加入我們。期待與您共度這段時光。我們渴望分享我們的計劃，包括我們將如何繼續增長，我們將如何繼續在增長的基礎上重建盈利能力，以及我們將如何在自我們聚集在這里以來發生了很大變化的情況下加強我們的業務去年時代中心。

At that time, we just passed a crucial milestone. We had just become a $106 billion company. For the full year 2022, which we're reporting today, we placed another $3.1 billion of revenue growth on top of that growth. We grew traffic by 2.1%. We gained unit share across our core merchandising categories, which means that consumers were constrained by inflation and have to be very selective about where they shop and what they buy, continue shopping and buying at Target. And despite difficulties throughout the year, we closed the books on 2022 with our 23rd straight quarter of comp sales growth. However, the path between last year's Time Center meeting and this one was anything but predictable.

那時，我們剛剛通過了一個關鍵的里程碑。我們剛剛成為一家價值 1060 億美元的公司。對於我們今天報告的 2022 年全年，我們在這一增長之上又增加了 31 億美元的收入增長。我們的流量增長了 2.1%。我們在核心商品類別中獲得了單位份額，這意味著消費者受到通貨膨脹的限制，必須非常有選擇性地選擇他們在哪裡購物和購買什麼，繼續在 Target 購物和購買。儘管全年都遇到困難，但我們在 2022 年結束了賬目，連續第 23 個季度實現了銷售額增長。然而，去年的時間中心會議與本次會議之間的路徑是不可預測的。

When we last gathered here, New York was still under a mask mandate. And though -- although consumers had started moving towards postpandemic behaviors, with families returning to travel and restaurants and shifting some dollars at a retail, we are just beginning to see how volatile and uncertain 2022 would become as spiraling inflation forced families to put discretionary purchases on hold and focus most of their spending on necessities. And there was a rapid escalation to the most expensive operating environment we've seen in decades, all of which was made worse by the spike in fuel prices caused by Russia's war on Ukraine. Those variables and many others continue to have a profound effect on the retail landscape.

當我們上次聚集在這裡時，紐約仍處於蒙面強制令之下。儘管——儘管消費者已經開始轉向大流行後的行為，家庭返回旅行和餐館並在零售店轉移一些美元，但我們才剛剛開始看到 2022 年將變得多麼動盪和不確定，因為不斷上升的通貨膨脹迫使家庭進行可自由支配的購買擱置並將大部分支出集中在必需品上。並且迅速升級到我們幾十年來所見過的最昂貴的運營環境，所有這些都因俄羅斯對烏克蘭的戰爭導致的燃料價格飆升而變得更糟。這些變量和許多其他變量繼續對零售業格局產生深遠影響。

So this morning, we want to take stock of that situation. We want to speak clearly of how Target is planning to stay on our growth path for the years ahead. We're keeping this morning's agenda very focused on our strategy, operations, growth investments and financial expectations. We see this as a time to combine steady leadership with our long-term strategy and a continued focus on agility and strong focus on retail fundamentals. Our goals this morning are to show you how we're navigating near-term challenges. How the durability of our business model lies in its flexibility. We'll share what we're prioritizing to stay in step with our guests, and how we'll flex across our multi-category portfolio, which means, in the near term, leaning into growth in nondiscretionary categories.

所以今天早上，我們想評估一下這種情況。我們想清楚地說明 Target 計劃如何在未來幾年保持增長。我們將今天上午的議程重點放在我們的戰略、運營、增長投資和財務預期上。我們認為這是將穩定的領導地位與我們的長期戰略、持續關注靈活性和對零售基本面的高度關注結合起來的時候。我們今天早上的目標是向您展示我們如何應對近期挑戰。我們商業模式的持久性如何在於它的靈活性。我們將分享我們為與客人保持同步而優先考慮的事項，以及我們將如何在我們的多類別產品組合中靈活調整，這意味著，在短期內，將傾向於非自由裁量類別的增長。

We'll also reinforce how the trust and loyalty we've built with our guests shows in our traffic and share gains. Given value is absolutely top of mind right now, being able to deliver affordable joy, differentiates us in the marketplace. And that's a clear advantage in the near term and remains our focus over the long term. With those factors in mind, we also want to use this time to set clear and realistic expectations so shareholders and stakeholders can track what progress looks like in 2023.

我們還將加強我們與客人建立的信任和忠誠度如何體現在我們的流量和分享收益中。給定價值現在絕對是首要考慮因素，能夠提供負擔得起的快樂，使我們在市場上脫穎而出。這在短期內是一個明顯的優勢，並且仍然是我們長期關注的焦點。考慮到這些因素，我們還希望利用這段時間設定明確和現實的期望，以便股東和利益相關者能夠跟踪 2023 年的進展情況。

Taking a step back, I might start by recognizing that our growth in '22 didn't come easily. It wasn't nearly as profitable as we expect it to be over time. In 2020 and 2021, our team put in the effort and the hustle to keep pace with the most turbulent business environment many of us have ever seen. They brought the expertise and excellence to take the company to a new level. But while we gained incredible scale by continuing to prioritize our guests, I acknowledge we're still developing some of the tools to marshal that scale efficiently.

退後一步，我可能首先認識到我們在 22 世紀的增長來之不易。隨著時間的推移，它幾乎沒有我們預期的那樣有利可圖。在 2020 年和 2021 年，我們的團隊付出了努力和努力，以跟上我們許多人所見過的最動蕩的商業環境。他們帶來了專業知識和卓越表現，將公司提升到了一個新的水平。但是，雖然我們通過繼續優先考慮我們的客人而獲得了令人難以置信的規模，但我承認我們仍在開發一些工具來有效地組織這種規模。

Yet, as we think about what growth looks like from here, it's helpful to anchor back to what we were saying at year-end 2019. At that time, we were putting up proof points on a strategy that was and still is unique in retail, when we built to reliably deliver low single-digit increases in sales year after year. It started by investing in our team, in part because we believe human interaction is the key to growth in a digital age. As we move into 2023, we'll continue to support our team and lean into our culture, knowing they're at the heart of our overall success.

然而，當我們從這裡思考增長是什麼樣子時，回到我們在 2019 年年底所說的話是有幫助的。當時，我們正在為一項戰略提供證據，該戰略在零售業過去和現在仍然是獨一無二的，當我們建立以可靠地年復一年地實現低個位數的銷售額增長時。它首先投資於我們的團隊，部分原因是我們相信人際互動是數字時代發展的關鍵。隨著我們進入 2023 年，我們將繼續支持我們的團隊並融入我們的文化，因為我們知道他們是我們整體成功的核心。

The 2019 strategy put stores at the center of everything. Because when we remodeled or added a store and improve the guest experience, comps grew. At the same time, turning stores into fulfillment hubs was and still is the most efficient and least costly way to grow omnichannel sales. As you'll hear today, we're not standing still on our store remodel and expansion plans or investments in a bigger supply chain or ongoing improvements in digital. It's no surprise that 100% of our store sales are fulfilled by stores. But in our case, more than 95% of all sales, including digital, are, too.

2019 年的戰略將門店置於一切的中心。因為當我們改造或增加一家商店並改善客人體驗時，收入就會增加。與此同時，將商店轉變為履行中心過去是，現在仍然是提高全渠道銷售額的最有效、成本最低的方式。正如您今天將聽到的那樣，我們並沒有停滯不前地實施我們的商店改造和擴張計劃、投資更大的供應鍊或持續改進數字技術。毫不奇怪，我們 100% 的商店銷售額都是由商店完成的。但在我們的案例中，超過 95% 的銷售額（包括數字銷售額）也是如此。

Since 2019, our store base has only grown slightly, but total sales grew nearly 40% in that time frame. Our digital business nearly tripled in size, and our sales per square foot increased by 37%. And fulfilling substantially all that growth through essentially the same asset base was nothing short of incredible on the part of our team. So as we hold on to those gains and look to put growth on top of them, we'll continue to invest in stores, in supply chain, in digital through our stores as hubs model.

自 2019 年以來，我們的門店數量僅略有增長，但總銷售額在此期間增長了近 40%。我們的數字業務規模幾乎翻了三倍，每平方英尺的銷售額增長了 37%。通過基本相同的資產基礎實現幾乎所有的增長，對我們的團隊來說簡直是不可思議。因此，當我們堅持這些收益並希望將增長放在首位時，我們將繼續通過我們的商店作為樞紐模型投資於商店、供應鍊和數字領域。

Our 2019 strategy prioritize the differentiation and profit performance of an owned brand portfolio that is simply unmatched in retail. At the same time, we're curating national brands our guests love. And in 2019, we had just started our premier partnerships with Levi's and Disney. Since then, both those partnerships have expanded, as of partnerships, with Apple and Starbucks. And as you know, we're in the middle of building on an incredibly exciting partnership with Ulta Beauty.

我們的 2019 年戰略優先考慮在零售業中無與倫比的自有品牌組合的差異化和利潤表現。與此同時，我們正在策劃客人喜愛的民族品牌。 2019 年，我們剛剛開始與 Levi's 和迪士尼的首要合作夥伴關係。從那時起，與蘋果和星巴克的合作夥伴關係都得到了擴展。如您所知，我們正在與 Ulta Beauty 建立令人難以置信的令人興奮的合作夥伴關係。

Meanwhile, our team has built on our position of strength in owned brands, adding 17 of them since 2019. That includes 2 more $1 billion-plus brands in Good & Gather and All In Motion. But we're not slowing down with owned brands. In fact, just the opposite. As you'll hear from Christina, we're planning a steady cadence of newness in owned brands and national brands across our multi-category portfolio in the year ahead.

與此同時，我們的團隊鞏固了我們在自有品牌方面的優勢地位，自 2019 年以來增加了 17 個自有品牌。其中包括另外 2 個市值超過 10 億美元的品牌，分別是 Good & Gather 和 All In Motion。但我們並沒有放慢自有品牌的步伐。事實上，恰恰相反。正如您將從克里斯蒂娜那裡聽到的那樣，我們計劃在未來一年內在我們的多類別產品組合中穩定地推出自有品牌和民族品牌。

What else was in the 2019 strategy? Well, that was a year we introduced Target Circle. At that time, it was a powerful new asset for guest engagement, personalization, loyalty and sales that quickly attracted 50 million users. Since 2019, the user base has doubled and is still growing meaningfully. And Circle has become the heart of our increasingly connected loyalty ecosystem.

2019 年的戰略還有哪些內容？好吧，那是我們推出 Target Circle 的一年。在當時，它是一項強大的新資產，可提高賓客參與度、個性化、忠誠度和銷售量，迅速吸引了 5000 萬用戶。自 2019 年以來，用戶群翻了一番，並且仍在顯著增長。 Circle 已成為我們聯繫日益緊密的忠誠度生態系統的核心。

Since 2019, our media company, Roundel, has grown significantly with great additional growth and profit potential on the horizon. It's sought after by advertisers for its relevance and reach, and it's growing each year because our guests appreciate the engagement and the value it delivers. Roundel makes for a more deeply engaged guests and partners. And because it gives us better understanding of our guest preferences, it makes us an even better and more profitable retailer. So we intend to place additional emphasis and investment towards Circle and Roundel in 2023, given the growth potential they'll unlock.

自 2019 年以來，我們的媒體公司 Roundel 取得了顯著增長，並帶來了巨大的額外增長和利潤潛力。它因其相關性和影響力而受到廣告商的追捧，並且每年都在增長，因為我們的客人欣賞參與及其帶來的價值。 Roundel 讓客人和合作夥伴參與度更高。因為它讓我們更好地了解客人的喜好，所以它使我們成為更好、更有利可圖的零售商。因此，鑑於它們將釋放的增長潛力，我們打算在 2023 年對 Circle 和 Roundel 給予額外的重視和投資。

So let's pause here, and I'll start to put all this together. While I'm deliberately drawing a connection between 2019 and the year ahead, there's one giant difference, we're starting 2023 on a revenue base of $109 billion, not the $78 billion we had back then. There are other big differences, too. Today, we're reporting a full year comp increase in the low single digits, similar to 2019, and unit share gains across all 5 of our core merchandising categories. But unlike 2019, our 3-year revenue growth is $30-plus billion, not just $8 billion. And our digital penetration now stands at nearly 19%.

所以讓我們在這裡暫停一下，我將開始將所有這些放在一起。雖然我故意將 2019 年與來年聯繫起來，但有一個巨大的不同，我們從 2023 年開始的收入基礎為 1090 億美元，而不是我們當時的 780 億美元。還有其他很大的區別。今天，我們報告了與 2019 年類似的全年低個位數增長，以及我們所有 5 個核心商品類別的單位份額增長。但與 2019 年不同的是，我們 3 年的收入增長超過 30 億美元，而不僅僅是 80 億美元。我們的數字滲透率現在接近 19%。

During the pandemic, guests became more attached to Target. And as we deepened engagement with guests, more moved into the ranks of our most engaged, measured by spend, trips and cross-category purchases. Guest engagement is also reflected in a significant increase in transactions since 2019. In fact, those increases started as far back as 2017. And we're positioned to keep growing engagement levels across our guest base even as we focus on expanding that base overall.

在大流行期間，客人對 Target 更加依戀。隨著我們加深與客人的互動，越來越多的人進入了我們最活躍的行列，以消費、旅行和跨類別購買來衡量。自 2019 年以來，客人參與度也反映在交易量的顯著增加上。事實上，這些增長早在 2017 年就開始了。即使我們專注於整體擴大客人群，我們也準備繼續提高客人群的參與度。

So standing here today, my sense is that if a new normal is on the horizon, it will be much more like 2019 than the last 3 years. And as we plan prudently to invest in 2023, we see a return over time to solid and consistent growth with operating income margin rate that should move towards and then begin to move beyond our prepandemic rate of 6% in the next few years.

所以今天站在這裡，我的感覺是，如果即將出現新常態，那將比過去三年更像 2019 年。當我們謹慎地計劃在 2023 年投資時，我們看到隨著時間的推移恢復穩定和持續的增長，營業收入利潤率應該在未來幾年內接近並開始超過我們大流行前的 6%。

Today, we'll show you our work for how we arrived at that conclusion. But a spoiler alert, it starts with the strategy. You've seen it many times before, and while the facets on this slide haven't changed, we're prioritizing to accelerate key growth drivers and making changes that will help us respond to the short-term environment, while continuing to advance all elements of our strategy. They all work together to keep our growth trajectory rolling.

今天，我們將向您展示我們是如何得出該結論的。但是劇透警報，它從策略開始。您之前已經看過很多次，雖然這張幻燈片上的方面沒有改變，但我們正在優先考慮加速關鍵增長驅動因素並做出改變，以幫助我們應對短期環境，同時繼續推進所有我們戰略的要素。他們齊心協力，讓我們的成長軌跡不斷向前發展。

Christina will cover that in greater detail, including the focus this year were placing on the magic of Tar-zhay, on affordable joy and on digital growth, Target Circle, Roundel and our enterprise sustainability strategy, Target Forward. Then John will cover what we're learning from an ongoing operational evolution, what we're testing, what we're in the process of optimizing, what benefits we see from the standpoint of efficiency as we continue to scale. Michael will describe how we're planning cautiously, and we believe appropriately, given the economic challenges we anticipate this year.

Christina 將更詳細地介紹這一點，包括今年的重點是 Tar-zhay 的魔力、負擔得起的快樂和數字增長、Target Circle、Roundel 和我們的企業可持續發展戰略 Target Forward。然後 John 將介紹我們從持續的運營演變中學到的東西、我們正在測試的東西、我們正在優化的東西，以及我們在繼續擴展時從效率的角度看到的好處。考慮到我們預計今年將面臨經濟挑戰，Michael 將描述我們是如何謹慎規劃的，我們相信這一點是正確的。

But caution doesn't mean cut off from continued growth and progress. In fact, some of the most exciting progress we anticipate will be translating our newfound scale into simpler, more efficient ways to run Target. The difference between an enterprise-wide efficiency mindset and a cost-cutting program starts with what questions you ask yourself. For us, the question isn't, what can we cut? It's how do we make things easier for our team to more efficiently deliver a guest experience, that continues to live up to our brand promise. So we'll invite Mike O’Neil, the leader we tapped to coordinate these efforts across Target, to offer his perspective on efficiency, what it is, what it isn't, how we can drive continuous improvement and what we can unlock with this focus.

但謹慎並不意味著與持續增長和進步隔絕。事實上，我們預期的一些最激動人心的進展將把我們新發現的規模轉化為更簡單、更有效的方式來運行 Target。企業範圍內的效率思維與成本削減計劃之間的區別始於您問自己的問題。對我們來說，問題不是，我們可以削減什麼？這就是我們如何讓我們的團隊更輕鬆地更有效地提供客戶體驗，繼續履行我們的品牌承諾。因此，我們將邀請 Mike O'Neil，我們聘請他協調 Target 的這些工作的領導者，提供他對效率的看法，效率是什麼，不是什麼，我們如何推動持續改進以及我們可以解鎖什麼這個重點。

We're looking forward to the next hour or so. We recognize that the landscape is unpredictable, and there are plenty of near-term challenges on the horizon. We believe 2023 will be a year in which the durability of our model allows us to flex up the categories and the value proposition that are most relevant to our guests today. We'll double down on execution, so our guests get all they've been promised every time they turn to Target. And we'll stay focused on gaining share across our portfolio, underpinning all the work we're doing around efficiency, to provide fuel for longer-term growth. We're optimistic about what this team can deliver and realistic about how 2023 will keep challenging us to be agile, resilient and responsive for our guests, our communities, for each other and for our shareholders.

我們期待著接下來的一個小時左右。我們認識到，形勢是不可預測的，而且地平線上有許多近期挑戰。我們相信 2023 年將是我們模式的耐用性讓我們能夠展示與當今客人最相關的類別和價值主張的一年。我們將加倍執行，因此我們的客人每次求助於 Target 時都能得到他們所承諾的一切。我們將繼續專注於在我們的產品組合中獲得份額，支持我們圍繞效率所做的所有工作，為長期增長提供動力。我們對這個團隊可以提供什麼感到樂觀，並現實地看待 2023 年將如何繼續挑戰我們對我們的客人、我們的社區、彼此和我們的股東保持敏捷、有彈性和響應能力。

Before we leave here today, our goal is to take you along. So you can see exactly what we're seeing. And with that, let's get going.

在我們今天離開這里之前，我們的目標是帶你一起去。所以你可以準確地看到我們所看到的。有了這個，讓我們開始吧。

Thanks, Brian. Despite the challenges of the past year, Target's differentiated position in retail has never been stronger. With a great assortment, compelling value, an unmatched suite of fulfillment options and a joyful shopping experience, Target continues to drive preference with American shoppers in the face of a turbulent economic and consumer backdrop.

謝謝，布萊恩。儘管過去一年充滿挑戰，但塔吉特在零售領域的差異化地位從未如此強大。憑藉種類繁多、引人注目的價值、無與倫比的履行選項和愉快的購物體驗，面對動蕩的經濟和消費背景，Target 繼續推動美國購物者的偏好。

We have continually adapted to the environment around us, delivering ease, value and inspiration to our guests, all at a time when daily doses of joy are needed more than ever. And amidst this volatility, we continue to hone the foundational elements that it takes to be a long-term winner in retail.

我們不斷適應我們周圍的環境，為我們的客人提供輕鬆、價值和靈感，而在這個比以往任何時候都更需要每天歡樂的時刻。在這種動盪中，我們繼續磨練成為零售業長期贏家所需的基本要素。

Fourth quarter comparable sales grew 0.7% on top of nearly 9% last year. And for the full year, comparable sales grew 2.2% on top of nearly 13% in 2021. While our business has been generating growth on top of growth for years now, the mix of last year's sales looked vastly different than what we had expected.

第四季度可比銷售額在去年近 9% 的基礎上增長了 0.7%。全年可比銷售額在 2021 年增長近 13% 的基礎上增長了 2.2%。雖然我們的業務多年來一直在增長，但去年的銷售組合看起來與我們的預期大不相同。

Throughout 2022, changing attitude towards COVID, followed by the pressure from persistent inflation, caused demand for discretionary categories to slow meaningfully. With this in mind, we've taken a cautious approach to this year's inventory commitments in many of these categories. And we're focusing on the agility of our operating model to adjust should sales trends exceed our expectations.

整個 2022 年，人們對 COVID 的態度發生變化，隨之而來的是持續通貨膨脹的壓力，導致對可自由支配類別的需求顯著放緩。考慮到這一點，我們對今年許多類別的庫存承諾採取了謹慎的態度。如果銷售趨勢超出我們的預期，我們將專注於調整運營模式的靈活性。

In light of the volatility we've experienced, I often get the question, what did Target learn from the past year? What I'll share with you today are some of the lessons learned. In short, we've learned that our strategy is working. At the same time, we've come to further appreciate the importance of strong day-to-day execution, combined with the agility required to react even quicker to changing consumer trends. And of course, last year, reinforced the importance of providing every guest with a great shopping experience.

鑑於我們經歷的波動，我經常會問，Target 從過去一年中學到了什麼？我今天要與大家分享的是一些經驗教訓。簡而言之，我們了解到我們的策略正在發揮作用。與此同時，我們進一步認識到強大的日常執行力以及對不斷變化的消費者趨勢做出更快反應所需的敏捷性的重要性。當然，去年強調了為每位客人提供良好購物體驗的重要性。

Most of what I'll share today likely won't sound all that different from the playbook we've used for the past few years. That is intentional. For example, our multicategory assortment continues to resonate with our guests, even as consumer demand continuously evolves. The unique balance we've achieved across all five of our core merchandising categories continues to be a key differentiator in the market, with each category serving at times as a trip driver, at other times as a basket builder, and oftentimes as both.

我今天要分享的大部分內容聽起來可能與我們過去幾年使用的劇本沒有什麼不同。那是故意的。例如，即使消費者需求不斷變化，我們的多品類產品仍能繼續引起客人的共鳴。我們在所有五個核心商品類別中實現的獨特平衡仍然是市場上的一個關鍵差異化因素，每個類別有時充當旅行司機，有時充當購物籃構建者，有時兩者兼而有之。

Throughout 2022, we saw and continue to see incredible growth in our Food & Beverage and Essentials & Beauty businesses, offsetting a meaningful pullback in discretionary categories like Home, Apparel and Hardlines. But despite this pullback, these discretionary categories still delivered around $55 billion in sales last year.

在整個 2022 年，我們看到並將繼續看到我們的食品和飲料以及必需品和美容業務取得令人難以置信的增長，抵消了家居、服裝和耐用品等非必需品類別的顯著回落。但儘管出現了這種回落，這些可自由支配的品類去年仍實現了約 550 億美元的銷售額。

In both our Food & Beverage and Beauty categories, 2022 delivered the third consecutive year of double-digit sales growth, stemming from increases in both traffic and average ticket. And while we're thrilled to have driven unit share gains across all of our major categories last year, we saw the strongest gains in these rapidly growing frequency categories, a proof point of the relevance and value found in these assortments.

在我們的食品飲料和美容類別中，2022 年連續第三年實現兩位數的銷售額增長，這得益於客流量和平均票價的增長。雖然我們很高興去年推動了我們所有主要類別的單位份額增長，但我們在這些快速增長的頻率類別中看到了最強勁的增長，這證明了這些分類中的相關性和價值。

In Beauty, we continue to be a market leader, delivering the highest growth rates of any category we sell. We've been seeing outsized growth across the entire portfolio from everyday beauty assortments to new and exciting offerings like those we've added through our partnership with Ulta Beauty. In fact, last year's sales from Ulta Beauty at Target were more than 4x higher than in 2021, and this growth was almost entirely incremental. As such, we remain excited to continue opening additional Ulta Beauty at Target locations this year and beyond.

在美妝領域，我們繼續保持市場領先地位，在我們銷售的任何類別中實現最高增長率。從日常美容產品到我們通過與 Ulta Beauty 的合作添加的令人興奮的新產品，我們已經看到整個產品組合的巨大增長。事實上，Target 去年 Ulta Beauty 的銷售額比 2021 年高出 4 倍多，而且這種增長幾乎完全是增量式的。因此，我們仍然很高興今年及以後繼續在 Target 地點開設更多的 Ulta Beauty。

Of course, we don't build an assortment for a given snapshot in time. Rather, we flex across our categories as consumer demand shifts. And even in tough times, our discretionary assortment provides a unique opportunity to connect with guests in key moments, from major life changes, to seasonal celebrations and everyday moments in between.

當然，我們不會及時為給定的快照構建分類。相反，隨著消費者需求的變化，我們會在我們的類別中進行調整。即使在困難時期，我們的隨意分類也提供了一個獨特的機會，可以在關鍵時刻與客人聯繫，從重大的生活變化到季節性慶祝活動以及介於兩者之間的日常時刻。

Now I want to be clear that despite our cautious inventory position in discretionary categories, we're still focused on delivering newness throughout the portfolio and placing select bets in businesses where we believe market share opportunities are strongest. That's because despite continued volatility the path that Target guests are attracted to all things trendy and new. We believe our commitment to newness is a key reason why we continue to generate traffic growth, and why we drove broad unit share gains last year.

現在我想明確一點，儘管我們在可自由支配的類別中持謹慎的庫存立場，但我們仍然專注於在整個投資組合中提供新鮮感，並在我們認為市場份額機會最強的業務中進行選擇。這是因為儘管市場持續波動，但 Target 的客人仍然被所有時尚和新穎的事物所吸引。我們相信，我們對創新的承諾是我們繼續產生流量增長以及我們去年推動廣泛的單位份額增長的關鍵原因。

Our focus on balance can be found within each category as well, where we continue to offer both industry-leading national brands and high-quality affordable owned brands that are unmatched by our competitors. Our owned brands have long been a source of pride and differentiation for Target, offering great style and quality, all at incredible value. So it's no surprise that our owned brands have continued to outpace total enterprise growth and why we have plans to launch new or extend assortments in more than 10 owned brands this year.

我們對平衡的關注也體現在每個品類中，我們繼續提供行業領先的民族品牌和我們的競爭對手無法匹敵的高品質自有品牌。長期以來，我們的自有品牌一直是 Target 引以為豪和差異化的源泉，提供出色的款式和質量，而且都具有令人難以置信的價值。因此，我們的自有品牌繼續超過企業總體增長速度以及我們計劃在今年推出 10 多個自有品牌的新品類或擴展品類也就不足為奇了。

Recently, a study listing the 10 fastest-growing private label brands in 2022 included three found exclusively at Target. Target was the only retailer to have more than one brand on the list, and two of them were the only nonfood brands to make the cut.

最近，一項列出了 2022 年增長最快的 10 個自有品牌的研究包括 Target 獨家發現的三個品牌。 Target 是唯一一家擁有多個品牌的零售商，其中兩個是唯一上榜的非食品品牌。

Many retailers were not focused on newness in 2022, but the opposite was true at Target, where we continue to excite our guests with innovative and trendy products. For example, we launched Future Collective, a first-of-its-kind apparel owned brand, featuring collections in partnership with a rotating roster of diverse influencers. This innovative approach blending the strength of Target's owned brands with the excitement of our limited-time partnerships and collaborations has been a huge success, particularly with Black guests, furthering our commitment to ensure all guests see themselves reflected in our assortments.

許多零售商在 2022 年並不關注新鮮事物，但 Target 的情況恰恰相反，我們繼續以創新和時尚的產品來激發我們的客人。例如，我們推出了首創的服裝自有品牌 Future Collective，與不同影響力的輪流名冊合作推出系列產品。這種創新方法將 Target 自有品牌的優勢與我們限時合作夥伴和合作的令人興奮相結合，取得了巨大成功，尤其是對黑人客人而言，這進一步推動了我們確保所有客人都能在我們的產品組合中看到自己的承諾。

Most recently, we launched a new line with actor and influencer, Tabitha Brown. Tabitha's energy and passion absolutely shines in this new line, and our guests are loving it. Tabitha serves as the latest example of the endless possibilities that comes from bringing together the incredible talents of diverse designers and the power of Target's multi-category portfolio.

最近，我們與演員和影響者 Tabitha Brown 一起推出了一條新系列。塔比莎 (Tabitha) 的活力和熱情在這條新系列中絕對閃耀，我們的客人都喜歡它。 Tabitha 是最新的例子，展示了將不同設計師的驚人才華和 Target 多類別產品組合的力量結合在一起所帶來的無限可能性。

Take a look and see what I mean.

看看我的意思。

(presentation)

（推介會）

The passion of these designers is so inspiring, the emotion and pride is palpable, and we love the way the Tar-zhay magic of these partnerships cut across categories, including last quarter's launch of Marks & Spencer and Tabitha's recent extension into food.

這些設計師的熱情如此鼓舞人心，情感和自豪感顯而易見，我們喜歡這些合作夥伴關係跨類別的 Tar-zhay 魔法，包括上個季度推出的 Marks & Spencer 和 Tabitha 最近擴展到食品領域的方式。

And while these collaborations offer joy for our guests, recent history has reinforced that focusing on the basics of retail is just as important as the latest innovation or new offering. In fact, nailing the fundamentals is the bedrock of a successful retailer, from the overall shopping experience to ease and convenience, relevance, everyday value and more.

雖然這些合作為我們的客人帶來了歡樂，但最近的歷史表明，關注零售基礎知識與最新的創新或新產品同樣重要。事實上，從整體購物體驗到輕鬆便利、相關性、日常價值等，牢記基本原則是成功零售商的基石。

Of these fundamentals, we know that a strong and reliable shopping experience is the surest way to build trust and affinity. So we aim to provide a consistent, joyous and easy experience, both in stores and online, making Target a shopping destination, not just a means to an end. To do this, we've invested heavily in new stores, our remodel program and our same-day fulfillment services, as John will highlight shortly. We led the way in comprehensive pay and benefits, attracting and retaining the best team in retail, allowing us to provide a level of service unmatched by our competitors.

在這些基本要素中，我們知道強大而可靠的購物體驗是建立信任和親和力的最可靠方式。因此，我們的目標是在商店和網上提供一致、愉快和輕鬆的體驗，使 Target 成為購物目的地，而不僅僅是達到目的的手段。為此，我們在新店、改造計劃和當日送達服務方面投入了大量資金，正如約翰稍後會強調的那樣。我們在綜合薪酬和福利方面處於領先地位，吸引並留住了零售業最優秀的團隊，使我們能夠提供競爭對手無法比擬的服務水平。

We've invested in one-of-a-kind brand partnership experiences like those with Levi's, Apple, Disney and Ulta Beauty. And while some of these partnerships are newer, we featured Starbucks in our stores for decades, proof that when we work with iconic brands, we build lasting relationships. With a Starbucks in nearly all of our stores, they have become part of the shopping ritual for many of our guests. In fact, we've served up more than 170 million Starbucks beverages last year alone.

我們投資於獨一無二的品牌合作體驗，例如與 Levi's、Apple、Disney 和 Ulta Beauty 的合作。雖然其中一些合作夥伴關係較新，但我們幾十年來一直在我們的商店中展示星巴克，證明當我們與標誌性品牌合作時，我們建立了持久的關係。我們幾乎所有門店都有星巴克，星巴克已成為我們許多客人購物習慣的一部分。事實上，僅去年一年，我們就提供了超過 1.7 億杯星巴克飲品。

A strong digital shopping experience is every bit as important as the one we create in our stores. So we've been investing to ensure that the experience is seamless across every channel, regardless of how our guests shop. Whether searching for an item or browsing for inspiration, we continue to elevate their experience, providing personalized and relevant content using our incredible data and guest insights. This will include more customized homepages, improved search functionality and even more personalized offers from Target Circle. It will also include more relevant content from our digital advertising business, Roundel. Our digital success won't be driven by a single service or offering, but through a comprehensive set of experiences designed to be greater than the sum of the parts.

強大的數字購物體驗與我們在商店中創造的體驗一樣重要。因此，我們一直在投資以確保無論我們的客人如何購物，每個渠道的體驗都是無縫的。無論是搜索商品還是瀏覽靈感，我們都會不斷提升他們的體驗，利用我們令人難以置信的數據和客戶洞察力提供個性化和相關的內容。這將包括更多自定義主頁、改進的搜索功能以及來自 Target Circle 的更多個性化服務。它還將包括來自我們的數字廣告業務 Roundel 的更多相關內容。我們的數字化成功不會由單一服務或產品驅動，而是通過旨在大於各部分總和的綜合體驗集來驅動。

Target Circle is one of the nation's leading loyalty programs with over 100 million members and growing. Through continuous learning and application of guest insights, Target Circle served up 3x more personalized offers in 2022 and Target Circle members spend 3x more on average this past holiday season.

Target Circle 是美國領先的忠誠度計劃之一，擁有超過 1 億會員並且還在不斷增長。通過不斷學習和應用客戶洞察，Target Circle 在 2022 年提供的個性化優惠增加了 3 倍，而 Target Circle 會員在過去的假日季平均花費增加了 3 倍。

We also continue to invest in the tools, team and capabilities of Roundel. To us, Roundel is more than a digital advertising platform or another revenue source in the P&L. The goal is for our guests to have a tailored, relevant experience, while helping our vendors reach the guests who are most likely to be interested in their products. Said simply, Roundel makes us better merchants, more consistently serving our guests with the products they want. This is why our approach to digital advertising looks different than others. We put our guests at the center of this strategy, just as we do in every other aspect of our business. It's no wonder we continue to see such explosive digital growth, why Roundel grew by more than 60% over the past 2 years, and why we'll continue to leverage the risk -- rich guest insights.

我們還繼續投資於 Roundel 的工具、團隊和能力。對我們來說，Roundel 不僅僅是一個數字廣告平台或 P&L 中的另一個收入來源。我們的目標是為我們的客人提供量身定制的相關體驗，同時幫助我們的供應商吸引最有可能對其產品感興趣的客人。簡單地說，Roundel 使我們成為更好的商家，更始終如一地為我們的客人提供他們想要的產品。這就是為什麼我們的數字廣告方法看起來與其他方法不同。正如我們在業務的各個方面所做的那樣，我們將客人置於這一戰略的中心。難怪我們繼續看到如此爆炸性的數字增長，為什麼 Roundel 在過去 2 年增長了 60% 以上，以及為什麼我們將繼續利用風險——豐富的客戶洞察力。

And regardless of whether our guests are shopping online or in-store, they are looking for comprehensive value now more than ever. That means offering great everyday prices and promotions and offering quality and inspiration. After all, Target invented affordable joy decades ago and is still a key differentiator in a crowded retail market.

無論我們的客人是在網上購物還是在店內購物，他們現在比以往任何時候都更注重綜合價值。這意味著提供超值的日常價格和促銷活動，並提供質量和靈感。畢竟，Target 幾十年前就發明了負擔得起的快樂，並且仍然是擁擠的零售市場中的關鍵差異化因素。

Our guests see value in countless ways, from our competitively priced and high-quality owned brand offerings to multiple RedCard benefits, including 5% off on every trip and free shipping for all online orders, all with no annual fee. We offer compelling value at every turn, and we are continuously listening to our guests to understand what value means to them.

我們的客人以無數方式看到價值，從我們具有競爭力的價格和高質量的自有品牌產品到多項 RedCard 優惠，包括每次旅行 5% 的折扣和所有在線訂單的免費送貨，所有這些都沒有年費。我們每時每刻都提供令人信服的價值，並且我們不斷傾聽客人的意見，以了解價值對他們意味著什麼。

And beyond these retail basics, we continue to hear from our guests that they prefer shopping with companies who prioritize people and planet. That's why we're so focused on our Target Forward strategy. This isn't a standalone strategy, but rather Target Forward is fully integrated throughout our business, fueling our growth potential, while bettering the world.

除了這些零售基礎知識之外，我們不斷從客人那裡聽到他們更喜歡在優先考慮人類和地球的公司購物。這就是為什麼我們如此專注於我們的 Target Forward 戰略。這不是一個獨立的戰略，而是 Target Forward 完全融入了我們的整個業務，推動了我們的增長潛力，同時讓世界變得更美好。

As part of this strategy, we'll continue to elevate Black voices and brands and are on track to spend $2 billion on Black-owned businesses by 2025. We'll also continue to focus on designing products for a circular future like in our owned brand, Universal Thread, where we are using materials such as recycled cotton and polyester. These are just a few of the countless examples of how we push ourselves and industry partners to grow sustainably.

作為該戰略的一部分，我們將繼續提升黑人的聲音和品牌，並有望在 2025 年之前在黑人擁有的企業上投入 20 億美元。我們還將繼續專注於為循環未來設計產品，就像我們自己的企業一樣品牌 Universal Thread，我們在其中使用再生棉和聚酯等材料。這些只是我們如何推動自己和行業合作夥伴可持續發展的無數例子中的幾個。

Our purpose to help all families discover the joy of everyday life requires a balance of quality, value and innovation that sets us apart from competitors. We are relentless in ensuring every decision supports this delicate balance. It's easy to say, but takes incredible diligence to execute. And while you've heard me say it before, it bears repeating now. We truly have the best team in retail. I'm so grateful for the many efforts of our team to serve our guests and each other, day in and day out.

我們的目標是幫助所有家庭發現日常生活的樂趣，這需要質量、價值和創新之間的平衡，這使我們從競爭對手中脫穎而出。我們不懈地確保每一個決定都支持這種微妙的平衡。說起來容易，但執行起來需要難以置信的勤奮。雖然你以前聽過我說過，但現在值得重複一遍。我們確實擁有零售業最好的團隊。我非常感謝我們的團隊日復一日地為我們的客人和彼此服務的許多努力。

With that, I'll turn things over to John.

有了這個，我會把事情交給約翰。

Thanks, Christina, and good morning, everyone. So Brian talked about the last few years being unpredictable. To put a finer point on that, if you had told me in late 2020, during the height of the pandemic, that 2022 would be the most challenging operating environment in my career, well, I would have assumed you were joking. Yet shifting consumer preferences, supply chain volatility and rising inflation created a set of conditions that called for flexibility, responsiveness and resilience. Our environment remains volatile, and we expect 2023 will have its own unique set of challenges. But if I've learned anything over the past 3 years, it's never underestimate the power of a purpose-driven team and the culture they create.

謝謝，克里斯蒂娜，大家早上好。所以布賴恩談到過去幾年是不可預測的。更確切地說，如果你在 2020 年底，也就是大流行最嚴重的時候告訴我，2022 年將是我職業生涯中最具挑戰性的經營環境，那麼，我會認為你是在開玩笑。然而，不斷變化的消費者偏好、供應鏈波動和不斷上升的通貨膨脹創造了一系列需要靈活性、響應能力和彈性的條件。我們的環境仍然不穩定，我們預計 2023 年將面臨一系列獨特的挑戰。但是，如果我在過去 3 年中學到了什麼，那就是永遠不要低估以目標為導向的團隊的力量和他們創造的文化。

2022 offered more examples of Target teamwork than I can count, but two will stick with me for quite a while. 5 months ago when Hurricane Ian devastated communities across Florida, our team sprang into action. They didn't wait for me or Brian or anyone else on the leadership team to tell them what to do. Instead, they gathered input from those on the ground and told us what they needed. Pop-up resource centers that provided laundry, food, gas, restroom, showers and Wi-Fi-enabled laptops to 700 team members and their families. Extra inventory to stock local stores with essentials guests would need to weather the storm, and financial support, $5 million to fund local relief efforts and up to $3 million in matching donations to our team member giving fund, which provides assistance to team members affected by natural disasters.

2022 年 Target 團隊合作的例子多得我數不過來，但其中有兩個會陪伴我很長一段時間。 5 個月前，當颶風伊恩摧毀佛羅里達州的社區時，我們的團隊立即採取行動。他們沒有等我或布賴恩或領導團隊中的任何其他人告訴他們該怎麼做。相反，他們收集了當地人的意見並告訴我們他們需要什麼。彈出式資源中心為 700 名團隊成員及其家人提供洗衣、食物、煤氣、洗手間、淋浴和支持 Wi-Fi 的筆記本電腦。為當地商店儲備客人抵御風暴所需的必需品的額外庫存，以及財政支持，500 萬美元用於資助當地的救援工作，以及高達 300 萬美元的匹配捐贈給我們的團隊成員捐贈基金，該基金為受災的團隊成員提供幫助自然災害。

It was about the same time that our inventory action plan was in full swing. You'll remember, we announced bold measures last summer to quickly take action to rightsize our inventory in response to shifting consumer demands. It was a big ask of our team, one that required them to move quickly and aggressively to reduce existing inventory and cut back on receipts for the back half of 2022. And the team responded as they always do with heart and hustle. They worked through 8 distribution centers worth of inventory in a matter of months, putting us in a strong position heading into the critical holiday season. That's our culture in action, bottom-up ingenuity centered on caring for our team and our guests. And it's that culture that fuels our strategy and growth.

大約在同一時間，我們的庫存行動計劃全面展開。你會記得，我們去年夏天宣布了大膽的措施，以迅速採取行動調整我們的庫存，以響應不斷變化的消費者需求。這是對我們團隊提出的一項重大要求，要求他們迅速而積極地採取行動，以減少現有庫存並減少 2022 年下半年的收入。團隊一如既往地熱心和積極地做出回應。他們在幾個月內處理了 8 個配送中心的庫存，使我們在進入關鍵的假期季節時處於有利地位。這就是我們的文化，自下而上的獨創性以關心我們的團隊和客人為中心。正是這種文化推動了我們的戰略和發展。

For years now, we've shared our vision of using our stores as fulfillment hubs to get closer to our guests. It was an idea that was novel when we first introduced it, but it's been widely adopted as others expand their view of what stores can do. Now I'm an engineer to my core. So it gives me great satisfaction to see the way Target built our stores as hub strategy from the ground up and how our operating model gets stronger with each passing year.

多年來，我們一直在分享我們的願景，即使用我們的商店作為履行中心來拉近與客人的距離。當我們第一次介紹它時，這個想法很新穎，但隨著其他人擴展他們對商店功能的看法，它已被廣泛採用。現在我是一名徹頭徹尾的工程師。因此，看到 Target 從頭開始將我們的商店構建為中心戰略的方式，以及我們的運營模式如何逐年變得更強大，我感到非常滿意。

We don't have a rigid road map. Instead, we use a highly repeatable process to test concepts, refine them, test them again, until we can replicate them with confidence, efficiency and scale. And then and only then do we ask ourselves what's next? And how can we make this even better? And the whole process begins again.

我們沒有嚴格的路線圖。相反，我們使用高度可重複的過程來測試概念、完善它們、再次測試它們，直到我們可以自信、高效和規模地複制它們。然後，只有到那時，我們才會問自己下一步是什麼？我們怎樣才能讓它變得更好？整個過程再次開始。

Let's take Drive-Up. You can trace the origins of Drive-Up to the launch of our Store Pickup service a decade ago. It took a few years to get Store Pickup where we wanted and when we did, we were able to take it one step further with Drive-Up. We launched Drive-Up as a test in our Minneapolis market in 2017. By the following year, the service was available in more than 1,000 stores around the country, and it reached all 50 states in 2019.

讓我們以Drive-Up為例。您可以將 Drive-Up 的起源追溯到十年前我們推出的 Store Pickup 服務。我們花了幾年時間才將 Store Pickup 帶到我們想要的地方，當我們這樣做時，我們能夠通過 Drive-Up 更進一步。 2017 年，我們在明尼阿波利斯市場推出了 Drive-Up 作為測試。到次年，該服務在全國 1,000 多家商店推出，並於 2019 年覆蓋了所有 50 個州。

With the foundation in place and operating at scale, we started to explore new capabilities. In 2020, we made fresh and frozen groceries available. In 2021, we added adult beverage and expanded our app to give guests a more customized experience. Last year, we began testing Starbucks at Drive-Up. And today, we're announcing the next phase of our Drive-Up services with Drive-Up Returns, which started as a pilot last year and will be available across the chain by the end of the summer.

隨著基礎到位和規模化運營，我們開始探索新功能。 2020 年，我們提供了新鮮和冷凍食品。 2021 年，我們添加了成人飲料並擴展了我們的應用程序，為客人提供更加個性化的體驗。去年，我們開始在 Drive-Up 測試星巴克。今天，我們宣布下一階段的免下車服務包括免下車退貨，該服務於去年作為試點啟動，並將於夏末在整個連鎖店推出。

Not only is this a huge win for our guests who can now do even more at Drive-Up, but it brings more efficiency to our returns process, with more resale opportunities and fewer expenses for mail-in returns. We're combining the strength of our digital self-service returns process with our industry-leading Drive-Up experience to meet our guests where they are.

這不僅對我們的客人來說是一個巨大的勝利，他們現在可以在 Drive-Up 做更多的事情，而且還提高了我們的退貨流程的效率，增加了轉售機會並減少了郵寄退貨的費用。我們將數字自助退貨流程的優勢與行業領先的免下車體驗相結合，隨時隨地滿足客人的需求。

This is what it means to be a truly omnichannel retailer, giving our guests the flexibility, ease and convenience to shop the way that works best for them and scaling capabilities across every facet of our business. Online, in-store, Drive-Up, it doesn't matter how they choose to shop with us. We're here to make their Target run better than ever.

這就是成為真正的全渠道零售商的意義所在，為我們的客人提供靈活、輕鬆和便利的購物方式，讓他們以最適合他們的方式購物，並在我們業務的各個方面擴展能力。在線、店內、Drive-Up，無論他們選擇如何在我們這裡購物都無所謂。我們在這裡是為了讓他們的 Target 比以往任何時候都運行得更好。

Looking back, the evolution of Drive-Up may seem like it was a natural progression, easy to predict and implement. When you're bringing to market new ideas in an environment that is anything but stable, you have to be ready to adjust course and explore alternatives. Our team has gotten really good at moving in step with the needs of our guests. That flexibility and a commitment to the fundamentals that make or break a retailer, things like hiring the right people, offering the right products and delivering the right experiences to our guests, underpin our stores as hub strategy and contribute to our larger story of growth.

回顧過去，Drive-Up 的演變似乎是一個自然的過程，易於預測和實施。當您在不穩定的環境中將新想法推向市場時，您必須準備好調整路線並探索替代方案。我們的團隊非常善於根據客人的需求採取行動。這種靈活性和對決定零售商成敗的基本要素的承諾，例如僱用合適的人員、提供合適的產品和為我們的客人提供合適的體驗，鞏固了我們作為中心戰略的商店，並為我們更大的增長故事做出了貢獻。

Same-day services like Drive-Up are a great example. They grew nearly 7% last year as more shoppers appreciate the convenience and speed with which they can check off everything on their list. And because we own our same-day capabilities, pickup and Drive-Up are much more economical and flexible than other forms of digital fulfillment. In fact, our average fulfillment cost per unit has come down 40% over the past 4 years as our same-day services have grown to account for over half of our digital sales.

Drive-Up 等當日送達服務就是一個很好的例子。去年他們增長了近 7%，因為越來越多的購物者欣賞他們可以檢查清單上所有內容的便利和速度。而且因為我們擁有當日送達能力，取貨和免下車比其他形式的數字履行方式更經濟、更靈活。事實上，在過去 4 年中，我們的單位平均履行成本下降了 40%，因為我們的當日送達服務已增長到占我們數字銷售額的一半以上。

Again, these results don't happen overnight, and they aren't achieved in a vacuum. They are the product of steady investment and listening to our guests. Take our stores, which sit at the heart of our stores as hub strategy and play a dual role of shopping destination and fulfillment hub. Our stores are not only beautiful, with open floor design, plenty of natural light and design elements that reflect the communities they serve, they're built to keep inventory moving through our system and support Target's trajectory of growth.

同樣，這些結果不會在一夜之間發生，也不是在真空中實現的。它們是穩定投資和傾聽客人意見的產物。以我們的商店作為樞紐戰略，它位於我們商店的核心，扮演著購物目的地和履行中心的雙重角色。我們的商店不僅美觀，採用開放式地板設計、充足的自然光線和反映他們所服務社區的設計元素，它們的建造是為了保持庫存在我們的系統中流動並支持 Target 的增長軌跡。

Late last year, we introduced a new store prototype in Katy, Texas. From the front entrance to the back room, this 150,000 square foot store is a stunner. Beautiful design elements reflect the local environment and community. Features like natural refrigerants, electric vehicle charging stations and rooftop solar empower our Target Forward sustainability ambitions and get us closer to our goal of net zero emissions by 2040. And a backroom 5x bigger than our average store allows us to ramp up same-day fulfillment, while preserving a seamless experience for our guests and our team.

去年年底，我們在德克薩斯州凱蒂推出了一家新店原型。從正門到後屋，這家 150,000 平方英尺的商店令人嘆為觀止。美麗的設計元素反映了當地的環境和社區。天然製冷劑、電動汽車充電站和屋頂太陽能等功能增強了我們的 Target Forward 可持續發展雄心，並使我們更接近到 2040 年實現淨零排放的目標。比我們平均商店大 5 倍的後台使我們能夠提高當天的履行能力，同時為我們的客人和我們的團隊保留無縫體驗。

We plan to open about 20 stores this year in a mix of sizes, from the shores of the outer banks in North Carolina, to the heart of Inglewood, California. We're also planning to invest in about 175 stores throughout the year, ranging from full remodels to the addition of shop-in-shop experiences like Ulta Beauty and retrofitted fulfillment spaces to support our same-day services. Our ongoing investment in our suite of stores is just one way we're building for the future.

我們計劃今年開設約 20 家規模各異的商店，從北卡羅來納州的外岸海岸到加利福尼亞州英格爾伍德的中心地帶。我們還計劃在全年投資約 175 家商店，從全面改造到增加店中店體驗，如 Ulta Beauty 和改造後的履行空間，以支持我們的當日服務。我們對商店套件的持續投資只是我們為未來建設的一種方式。

What might be less evident to our guests is how we're building facilities behind the scenes to make their experience even better. We've built upstream capacity by opening flow centers in Chicago and New Jersey, with several more slated to open over the next few years. And a new food distribution center that opened in Maryland this past October expand support for our growing food and beverage business. This additional capacity gives us more flexibility to manage inventory and keep our stores stocked with the items guests want when they want them.

對我們的客人來說可能不太明顯的是我們如何在幕後建設設施以改善他們的體驗。我們通過在芝加哥和新澤西開設流動中心建立了上游能力，未來幾年還將開設更多中心。去年 10 月在馬里蘭州開設的新食品配送中心擴大了對我們不斷發展的食品和飲料業務的支持。這種額外的容量使我們能夠更靈活地管理庫存，並讓我們的商店在客人需要的時候備有他們想要的物品。

We're also making investments downstream. Earlier this month, we announced the expansion of our sortation center network to more than 15 facilities by the end of 2026. These facilities have transformed how we move inventory with speed and precision to guests' doorsteps. We started with a prototype less than 2 years ago to see how we might bring more efficiency to how we sort, batch and route packages. Today, we have 9 sortation centers open across the country, allowing us to deliver packages to guests within 2 days. Up to 40% are delivered 1 day when using our last-mile delivery capabilities with Shipt. And because Shipt is fully integrated into our last-mile operations, we benefit from significantly lower delivery costs.

我們也在下游進行投資。本月早些時候，我們宣佈到 2026 年底將我們的分揀中心網絡擴展到超過 15 個設施。這些設施改變了我們將庫存快速準確地運送到客人家門口的方式。不到 2 年前，我們從一個原型開始，以了解如何提高我們對包裹進行分類、批處理和路由的效率。今天，我們在全國開設了 9 個分揀中心，使我們能夠在 2 天內將包裹交付給客人。將我們的最後一英里交付功能與 Shipt 結合使用時，最多 40% 可在 1 天內交付。而且由於 Shipt 完全集成到我們的最後一英里運營中，我們從顯著降低的交付成本中受益。

To give you a closer look at how these sortation centers have become core to our business, we ask leaders from Target and Shipt to give you a brief tour and talk about how our test and learn approach applies to last-mile delivery. Let's take a look.

為了讓您更深入地了解這些分揀中心如何成為我們業務的核心，我們請 Target 和 Shipt 的領導者給您做一個簡短的參觀，並談談我們的測試和學習方法如何應用於最後一英里交付。讓我們來看看。

(presentation)

（推介會）

As you heard from [Dory], [Saad] and [Kamau], we've learned a lot over the past few years, using every opportunity to improve speed, cost and quality. And in regards, our sortation centers are just hitting their stride. We delivered more than 25 million packages through sortation centers last year, and we expect to double that amount in 2023 with the help of our local and national carriers.

正如您從 [Dory]、[Saad] 和 [Kamau] 那裡聽到的那樣，我們在過去幾年中學到了很多東西，利用每一個機會來提高速度、成本和質量。在這方面，我們的分揀中心剛剛邁出大步。去年，我們通過分揀中心運送了超過 2500 萬個包裹，我們預計在當地和國家承運商的幫助下，到 2023 年這一數字將翻一番。

Together, the investments we're making create a more nimble sourcing, inventory management and fulfillment capability at Target, and they continue to help us navigate tough times, prepare for the unpredictable and fuel steady growth, all thanks to our incredible team. We've made huge strides in recent years to connect with our guests through our stores. The momentum continues to build, and I look forward to sharing progress with you and our guests in the quarters to come.

總之，我們正在進行的投資在 Target 創造了更靈活的採購、庫存管理和履行能力，它們繼續幫助我們渡過艱難時期，為不可預測的和推動穩定增長做好準備，這一切都要歸功於我們令人難以置信的團隊。近年來，我們在通過我們的商店與客人建立聯繫方面取得了巨大進步。勢頭繼續增強，我期待著在未來幾個季度與您和我們的客人分享進展。

Michael, I'll turn it over to you.

邁克爾，我會把它交給你。

Thanks, John. As Brian mentioned, it was exactly a year ago that we were on this stage, talking about our 2021 financial results, a year in which our business generated double-digit growth in comparable sales and even faster growth in EPS. And as Christina discussed, we knew on that day that the environment was likely to change, but we didn't yet know how dramatic those changes would be. The rapid pace of this transition led to multiple profit pressures on our business, including markdowns and other costs related to last year's inventory actions, significantly higher shipping and domestic transportation costs and higher inventory shrink.

謝謝，約翰。正如 Brian 提到的，正是一年前我們在這個舞台上談論我們 2021 年的財務業績，這一年我們的業務在可比銷售額方面實現了兩位數的增長，每股收益增長甚至更快。正如克里斯蒂娜所討論的那樣，我們在那一天知道環境可能會發生變化，但我們還不知道這些變化會有多劇烈。這種快速轉變給我們的業務帶來了多重利潤壓力，包括減價和與去年庫存行動相關的其他成本、顯著增加的運輸和國內運輸成本以及更高的庫存縮減。

So as we focus on our business plans, both for 2023 and the longer term, it's important to consider how the environment will continue to evolve. On the one hand, many things about life and consumer behavior already look a lot like they did before the pandemic. Students are back in school, sports arenas are full, people are eating out again and consumers are embracing in-store shopping.

因此，當我們專注於 2023 年和更長期的業務計劃時，重要的是要考慮環境將如何繼續發展。一方面，關於生活和消費者行為的許多事情看起來已經很像大流行之前了。學生返校，體育場館人滿為患，人們再次外出就餐，消費者開始接受店內購物。

At the other extreme, certain aspects of life appear to have changed forever. Many office jobs are now hybrid, with remote work and virtual meetings playing a much more significant role. That means many of us are spending a lot more time working at home, which has implications for long-term buying patterns in multiple categories, most notably our Food business.

在另一個極端，生活的某些方面似乎已經永遠改變了。許多辦公室工作現在是混合的，遠程工作和虛擬會議發揮著更重要的作用。這意味著我們中的許多人花費更多時間在家工作，這對多個類別的長期購買模式產生影響，尤其是我們的食品業務。

Fulfillment mix has also seen a permanent shift. Our same-day services have seen explosive growth. They now account for more than half of our digital sales and more than 10% of our total sales. And that trend shows no signs of reversing. Even as people have remixed their trips in favor of in-store shopping, guest engagement with these digital services has continued to grow on top of the huge expansion that's occurred over the last few years.

履行組合也發生了永久性轉變。我們的當日送達服務呈爆炸式增長。他們現在占我們數字銷售額的一半以上，占我們總銷售額的 10% 以上。而且這種趨勢沒有逆轉的跡象。即使人們重新組合他們的旅行以支持店內購物，但在過去幾年發生的巨大擴張之上，客人對這些數字服務的參與度仍在繼續增長。

Most importantly, our guests' overall engagement with Target has increased significantly over the last few years, and it continues to grow. Think about it this way. In 2021, guests made about 2 billion trips to Target, which was about 300 million higher than in 2019. And last year, even as consumer spending moved away from products into services, traffic grew again. The deeper relationship we've established with our guests and our proven ability to deepen it further are some of the many reasons we're so well positioned to deliver profitable growth in the years ahead.

最重要的是，在過去幾年中，我們客人對 Target 的整體參與度顯著提高，並且還在繼續增長。這樣想。 2021 年，Target 的客人人數約為 20 億人次，比 2019 年增加了約 3 億人次。去年，即使消費者支出從產品轉向服務，客流量也再次增長。我們與客人建立的更深層次的關係以及我們進一步加深這種關係的成熟能力是我們在未來幾年能夠實現盈利增長的眾多原因中的一部分。

Beyond the factors that have changed permanently, there are several others that are clearly still in transition. These include transportation and the global supply chain, where we've already seen remarkable improvement, but we're still facing elevated costs and variability compared to the prepandemic period. Another factor is inventory shrink, which has increased broadly across U.S. retail over the past 2 years. And finally, the most significant and important driver of uncertainty today is the fact that the broad macro economy is still in transition, leading to an inflationary period, more pronounced than we've seen in decades.

除了已經永久改變的因素之外，還有其他幾個顯然仍在轉變中的因素。其中包括交通運輸和全球供應鏈，我們已經看到了顯著改善，但與大流行前相比，我們仍然面臨成本上升和變化多端的問題。另一個因素是庫存縮減，過去 2 年美國零售業的庫存縮減普遍增加。最後，當今不確定性最重要和最重要的驅動因素是廣泛的宏觀經濟仍處於轉型期，導致通貨膨脹期，比我們幾十年來所見的更為明顯。

As Christina mentioned, rapidly rising prices have put pressure on discretionary spending as consumers make room for higher prices on necessities. In addition, higher interest rates have further pressured budgets by increasing the cost of mortgages and car loans.

正如克里斯蒂娜提到的那樣，隨著消費者為必需品的更高價格騰出空間，快速上漲的價格給可自由支配的支出帶來了壓力。此外，更高的利率增加了抵押貸款和汽車貸款的成本，進一步給預算帶來壓力。

So where does that leave us today? Despite all of the recent turmoil and the pressures facing our business, we remain in a very strong position to drive healthy growth in the coming years. Our guests are more engaged than ever, and that engagement continued to grow even during a tumultuous year. And even after a year in which we experienced unique and unexpected headwinds to both our profitability and cash flow, our business is sound, it remains strong and we're laser-focused on the path forward.

那麼，今天我們將何去何從？儘管最近我們的業務面臨所有動盪和壓力，但我們仍然處於非常有利的地位，可以在未來幾年推動健康增長。我們的客人比以往任何時候都更加投入，即使在動蕩的一年中，這種參與度仍在繼續增長。即使在我們的盈利能力和現金流經歷了獨特且意想不到的逆風的一年之後，我們的業務仍然穩健，仍然強勁，我們專注於前進的道路。

In 2023, we'll focus first on agility and strong execution. Most notably, we'll take a cautious stance on our inventory commitments and markdown-sensitive categories, with the flexibility to sell into our base inventory and expand receipts over time. At the same time, we'll continue investing in our long-term strategic initiatives that propel our market share and profit growth, including our remodel program, our new store pipeline and projects to add replenishment capacity and increased efficiency in our supply chain.

2023 年，我們將首先關注敏捷性和強大的執行力。最值得注意的是，我們將對我們的庫存承諾和對降價敏感的類別採取謹慎態度，隨著時間的推移，可以靈活地銷售我們的基本庫存並擴大收入。與此同時，我們將繼續投資於推動我們的市場份額和利潤增長的長期戰略計劃，包括我們的改造計劃、我們的新店管道和項目，以增加補貨能力和提高我們供應鏈的效率。

We'll also focus on strengthening our balance sheet. In 2022, our business was a net user of cash for the first time in many years. This was driven by a host of unique factors, including unexpectedly low profitability, higher-than-expected CapEx driven by inflation and project costs and a rapid slowdown in inventory turns due to excess inventory and longer lead times in global shipping.

我們還將專注於加強我們的資產負債表。 2022 年，我們的業務多年來首次成為現金淨用戶。這是由許多獨特因素推動的，包括盈利能力出乎意料的低，通貨膨脹和項目成本導致資本支出高於預期，以及由於庫存過剩和全球航運交貨時間延長導致庫存周轉率迅速放緩。

This year, we expect each of those factors to become more favorable. More specifically, we're expecting an increase in profit dollars and a somewhat slower pace of CapEx. And given our cautious inventory positioning and rapidly improving lead times in global shipping, we're planning for faster inventory turns in 2023, driving higher payables leverage and recovery in working capital as we move through the year.

今年，我們預計這些因素中的每一個都會變得更加有利。更具體地說，我們預計利潤美元會增加，資本支出的步伐會有所放緩。鑑於我們謹慎的庫存定位和全球航運交貨時間的迅速改善，我們計劃在 2023 年加快庫存周轉速度，推動更高的應付賬款槓桿率和營運資金的複蘇。

In the near term, until those expectations play out and our cash generation increases, we're not planning to repurchase any shares, consistent with our goal to maintain our middle A credit ratings. Over time, as our cash flow recovers and our debt metrics improve, we expect share repurchases will play a meaningful role within our broader, long-term capital deployment priorities. But as always, those repurchases will only occur after we fully invested in our business and supported our team, after we've supported our dividend goals and within the limits of our middle A ratings.

在短期內，在這些預期實現並且我們的現金產生增加之前，我們不打算回購任何股票，這與我們維持中等 A 信用評級的目標一致。隨著時間的推移，隨著我們現金流的恢復和債務指標的改善，我們預計股票回購將在我們更廣泛的長期資本配置優先事項中發揮重要作用。但一如既往，這些回購只會發生在我們完全投資於我們的業務並支持我們的團隊之後，在我們支持我們的股息目標並且在我們的中間 A 評級的範圍內之後。

Now I want to share some thoughts on our 2023 outlook, and I'll start with our expectations for the first quarter. Given the current conditions we're facing, we expect our business to generate first quarter comparable sales in a wide range, from a low single-digit decline to a low single-digit increase. This reflects our expectation for continued strength in our frequency businesses, offset by softness in discretionary categories.

現在我想分享一些關於我們 2023 年展望的想法，我將從我們對第一季度的預期開始。鑑於我們目前面臨的情況，我們預計我們的業務將產生廣泛的第一季度可比銷售額，從低個位數下降到低個位數增長。這反映了我們對我們的頻率業務持續強勁的預期，但被全權委託類別的疲軟所抵消。

On the operating income line, we're expecting a first quarter rate in the 4% to 5% range, higher than what we saw in the fourth quarter, but down somewhat from the 5.3% our business generated in last year's first quarter. While there are a number of factors driving this expectation, I'd note that our first quarter SG&A expense rate is expected to be about 1 percentage point higher than a year ago, reflecting continued investments in our team and guest experience, without an expected leverage benefit from higher sales. Altogether, on the bottom line, we expect our business to generate first quarter GAAP and adjusted EPS in a range from $1.50 to $1.90.

在營業收入方面，我們預計第一季度的增長率在 4% 到 5% 之間，高於我們在第四季度看到的水平，但略低於去年第一季度我們業務產生的 5.3%。雖然有很多因素推動了這一預期，但我要指出，我們第一季度的 SG&A 費用率預計將比一年前高出約 1 個百分點，反映出對我們團隊和客戶體驗的持續投資，沒有預期的槓桿作用從更高的銷售額中獲益。總而言之，我們預計我們的業務將在第一季度產生 GAAP 和調整後的每股收益，範圍在 1.50 美元至 1.90 美元之間。

Now I'll turn to our full year expectations, and I'll first note that the range of potential outcomes gets wider as the year goes on, given the high degree of uncertainty regarding the strength of the economy and the consumer. Given this uncertainty, we firmly believe caution is the appropriate posture, especially when planning sales and inventory in discretionary categories.

現在我將轉向我們的全年預期，我首先要指出的是，鑑於經濟實力和消費者的高度不確定性，隨著時間的推移，潛在結果的範圍會越來越大。鑑於這種不確定性，我們堅信謹慎是適當的態度，尤其是在計劃可自由支配類別的銷售和庫存時。

On the frequency side of the business, our full year plans envision continued share gains and strong sales growth. But we're mindful that inflation in these categories may begin to moderate, pressuring dollar comps across the industry. In light of those considerations, along with our outlook for discretionary categories, we're planning for the same wide range on the top line that we're planning for the first quarter, from a low single-digit decline to a low single-digit increase in our comparable sales.

在業務的頻率方面，我們的全年計劃設想了持續的份額增長和強勁的銷售增長。但我們注意到，這些類別的通脹可能開始放緩，對整個行業的美元構成構成壓力。鑑於這些考慮因素，以及我們對可自由支配類別的展望，我們計劃在第一季度計劃同樣廣泛的收入範圍，從低個位數下降到低個位數下降我們的可比銷售額增加。

In terms of profitability, the range of potential outcomes is similarly wide. As I mentioned earlier, we're positioned to benefit from a number of significant tailwinds on the gross margin line, most notably as we cycle over last year's inventory actions. In addition, we're expecting hundreds of millions of dollars of additional opportunity from lapping last year's unusually high freight and transportation costs.

就盈利能力而言，潛在結果的範圍同樣廣泛。正如我之前提到的，我們可以從毛利率線上的一些重要順風中受益，最顯著的是我們在去年的庫存行動中循環。此外，我們預計去年異常高的運費和運輸成本會帶來數億美元的額外機會。

At the same time, we're also preparing for some notable headwinds on the gross margin line. These include inventory shrink, which may continue to rise before we see rates begin to moderate over time. We're also expecting some pressure from soft sales in our highest-margin discretionary categories. And finally, we see the potential for increased promotional intensity across the industry this year, given that we're competing in a constrained environment for consumer spending.

與此同時，我們也在為毛利率線上的一些顯著阻力做準備。其中包括庫存縮減，在我們看到利率隨著時間的推移開始緩和之前，庫存可能會繼續上升。我們還預計，我們利潤率最高的非必需品類別的銷售疲軟會帶來一些壓力。最後，鑑於我們在消費者支出受限的環境中競爭，我們看到了今年整個行業促銷強度增加的潛力。

On the SG&A line this year, we expect continued strong discipline in managing costs across the enterprise, but we're also not backing away from investments in our team and guest experience, and we'll face potential rate deleverage given our outlook for comparable sales.

在今年的 SG&A 方面，我們預計在管理整個企業的成本方面將繼續嚴格遵守紀律，但我們也不會放棄對團隊和客戶體驗的投資，鑑於我們的可比銷售額前景，我們將面臨潛在的利率去槓桿化.

In light of these considerations, we're planning for a wide range of potential outcomes for our full year operating income. But even at the low end of those expectations, we expect to grow our operating income by more than $1 billion this year. Altogether, our expectations translate to a full year GAAP and adjusted EPS range of $7.75 to $8.75, which represents growth of about $1.75 per share at the low end of the range.

鑑於這些考慮，我們正在為全年營業收入規劃廣泛的潛在成果。但即使在這些預期的低端，我們預計今年的營業收入也將增加 10 億美元以上。總而言之，我們的預期轉化為全年 GAAP 和調整後的每股收益範圍為 7.75 美元至 8.75 美元，這意味著在該範圍的低端每股增長約 1.75 美元。

On the CapEx line this year, we're expecting to invest between $4 billion and $5 billion. While this range is somewhat lower than last year's CapEx, it's quite strong relative to our history. This year's plan reflects the optimal level to invest in the current environment and our expectation that we'll continue to earn high returns on our long-term growth investments, including our remodel program and new store pipeline and our continued work to build capacity and capabilities in our supply chain.

在今年的資本支出線上，我們預計投資 40 億至 50 億美元。雖然這個範圍略低於去年的資本支出，但相對於我們的歷史來說還是相當強勁的。今年的計劃反映了在當前環境下投資的最佳水平，以及我們對長期增長投資將繼續獲得高回報的期望，包括我們的改造計劃和新店管道以及我們繼續努力建設產能和能力在我們的供應鏈中。

As we think about the longer-term trajectory of our business, we expect that as external conditions normalize in the next several years, our operating income margin rate should reach and begin to move beyond our prepandemic rate of 6%. This return to prepandemic levels could happen as early as 2024, depending on the speed of recovery for the economy and consumer demand.

當我們考慮我們業務的長期軌跡時，我們預計隨著外部條件在未來幾年正常化，我們的營業利潤率應該達到並開始超過大流行前的 6%。最早可能在 2024 年恢復到大流行前的水平，具體取決於經濟和消費者需求的複蘇速度。

I want to pause and emphasize that this year's guidance does not reflect how we expect our business to perform over the longer term. Once we see a normalization of consumer demand and a resumption of growth in discretionary categories, you'll see that reflected in a stronger top line performance and a meaningful increase in our operating margin rate beyond what we're planning for this year.

我想暫停一下並強調，今年的指引並未反映我們對業務長期表現的預期。一旦我們看到消費者需求正常化和非必需品類別恢復增長，您就會看到這反映在更強勁的營收表現和我們的營業利潤率顯著提高，超出了我們今年的計劃。

I also want to reiterate something we've said many times. While we often talk about rates because it's helpful for analytical purposes, our goal is to find the optimal rate that maximizes profit dollar growth over time. In other words, we'll continue to focus simultaneously on top line growth and the rate we earn on it without focusing on either metric and isolation.

我還想重申我們已經說過很多次的話。雖然我們經常談論利率，因為它有助於分析目的，但我們的目標是找到隨著時間的推移最大化利潤美元增長的最佳利率。換句話說，我們將繼續同時關注頂線增長和我們從中獲得的利率，而不關注指標和孤立。

So now before I invite Brian and Mike O'Neil to join me on stage, I want to pause and thank our team for their continued optimism and resilience through a turbulent year. Last year presented a host of unexpected and unprecedented challenges that all seemed to arrive at once. Through it all, our team maintained a long-term focus, serving our guests and taking care of each other.

因此，現在在我邀請 Brian 和 Mike O'Neil 和我一起上台之前，我想停下來感謝我們的團隊在動蕩的一年中始終保持樂觀和韌性。去年出現了一系列意想不到和前所未有的挑戰，這些挑戰似乎是同時到來的。通過這一切，我們的團隊保持了長期的專注，為我們的客人服務並互相照顧。

As a result, we saw continued expansion in guest traffic and engagement throughout the year and historically strong hiring and retention metrics across our team. Those are some of the most important factors in determining our long-term success and why I feel so confident about Target's potential in the years ahead.

因此，我們看到全年的客人流量和參與度持續增長，並且我們團隊的招聘和保留指標歷來強勁。這些是決定我們長期成功的一些最重要因素，也是我對 Target 在未來幾年的潛力充滿信心的原因。

Now I'd like to invite Brian and Mike O'Neil to join me on stage so we can have a brief conversation about the enterprise efficiency work we've asked Mike to lead.

現在我想邀請 Brian 和 Mike O'Neil 和我一起上台，這樣我們就可以就我們要求 Mike 領導的企業效率工作進行簡短的對話。

Well, Michael, thank you, and Mike, thanks for joining us today. I know everyone would like to get into the work, but I think it would be really helpful to just pause for a second and talk about your background and why we selected you to lead this very important initiative.

好吧，邁克爾，謝謝你，邁克，感謝你今天加入我們。我知道每個人都想參與這項工作，但我認為暫停一下並談談您的背景以及我們為什麼選擇您來領導這項非常重要的計劃真的很有幫助。

Yes. Thanks, Brian. Really happy to be here and excited about the opportunity to lead this work for Target. I've been at Target now for 15-plus years, started in finance, worked in various roles with our merchandising operation partners to help deliver on their strategic priorities and their financial growth. Through that experience, I got to see the business model through the lens of the P&L.

是的。謝謝，布萊恩。很高興來到這裡，很高興有機會領導 Target 的這項工作。我現在已經在 Target 工作了 15 年多，從財務開始，與我們的商品運營合作夥伴一起擔任各種職務，幫助實現他們的戰略重點和財務增長。通過那次經歷，我開始通過損益表來看待商業模式。

A couple of years ago, I went over then to human resources and led our pay and benefits and strategic workforce planning teams. And that was a great opportunity to see the business through the lens of our team members. I had a chance to lead that team during the early days of the pandemic and saw quickly the work our team does to take -- the importance of taking care of them to take care of our guests.

幾年前，我轉到人力資源部門，領導我們的薪酬福利和戰略勞動力規劃團隊。這是一個很好的機會，可以通過我們團隊成員的視角來看待業務。在大流行初期，我有機會領導該團隊，並很快看到我們團隊所做的工作——照顧他們以照顧我們的客人的重要性。

From there, I've been back now in finance for a couple of years, and was leading the financial planning and analysis teams where we work with every business function to deliver on both our finance and strategic priorities. And coming back to finance and seeing the growth we've seen over the last couple of years, it was pretty apparent to me the opportunity to step back and think about how do we run this business model now at the larger scale. And so I think with those experiences, plus the relationships I've built over these 15 years, I think, position me well to lead this work forward.

從那時起，我已經回到財務部門幾年了，並領導財務規劃和分析團隊，我們與每個業務職能部門合作，以實現我們的財務和戰略重點。回到金融領域，看到我們在過去幾年中看到的增長，對我來說很明顯有機會退後一步，思考我們現在如何在更大規模上運行這種商業模式。因此，我認為憑藉這些經驗，加上我在這 15 年中建立的關係，我認為，我認為可以很好地領導這項工作。

Mike, when you took on this role, we spent a lot of time talking about what this work's about and what it isn't. Can you share a bit about the reasons we've initiated the work and what we're looking to accomplish?

邁克，當你擔任這個角色時，我們花了很多時間討論這項工作的內容和內容。您能否分享一下我們開展這項工作的原因以及我們希望完成的工作？

Yes. I think I'll start maybe with what it isn't. This isn't about sacrificing long-term growth for short-term profits. A typical tactic here is to look to shrink your cost base in the face of declining revenues. Well, that's not Target, right? We are growing, continue to grow. In fact, this work has come out from the growth we've seen over the last 3 years. We've grown $30 billion -- over $30 billion since 2019. That's more than 14 years prior. And that creates a tremendous opportunity to step back and reimagine how do we operate this business at a larger scale, but more importantly, how do we position Target for future growth.

是的。我想我可能會從它不是的東西開始。這並不是為了短期利潤而犧牲長期增長。這裡的一個典型策略是在收入下降的情況下縮小成本基礎。好吧，那不是 Target，對吧？我們正在成長，繼續成長。事實上，這項工作源於我們在過去 3 年中看到的增長。自 2019 年以來，我們已經增長了 300 億美元——超過 300 億美元。這比 14 年前還要多。這創造了一個巨大的機會，讓我們可以退後一步，重新構想我們如何在更大範圍內經營這項業務，但更重要的是，我們如何定位 Target 以實現未來增長。

And so as we're looking for efficiencies, we'll look for ways to simplify the work, to streamline processes, to reduce redundancy, all with the mind of how do we make it easier for our team members to deliver a great guest experience. In doing so, our initial scoping says, we'll deliver $2 billion to $3 billion of cost savings over the next 3 years.

因此，在我們尋求效率的同時，我們將尋找簡化工作、簡化流程、減少冗餘的方法，所有這些都是為了讓我們的團隊成員更輕鬆地提供出色的客戶體驗.這樣做，我們最初的範圍界定說，我們將在未來 3 年內節省 20 億至 30 億美元的成本。

Mike, I want to clarify one thing briefly. After Brian and I mentioned this effort in our last earnings call, we got some questions about whether that $2 billion to $3 billion number includes the natural recovery from the headwinds we experienced in 2022. Can you help clarify that?

邁克，我想簡要地澄清一件事。在我和布賴恩在上次財報電話會議上提到這項努力之後，我們收到了一些問題，即 20 億至 30 億美元的數字是否包括我們從 2022 年經歷的逆風中自然復甦。你能幫忙澄清一下嗎？

Sure. I've got a couple of those questions as well. And I would say, I reiterate that this is not about the work over -- or what's happened to us over the last 12 months. It's about the growth that we've seen over the last 3 years. And so no, what's not included is anything that will come, the natural recovery from the headwinds of last year. This work is the designed to deliver fuel beyond that, both to deliver on our -- both our top line and our bottom line goals.

當然。我也有幾個這樣的問題。我要說的是，我要重申，這與工作結束無關，也與過去 12 個月我們發生的事情無關。這是關於我們在過去 3 年中看到的增長。所以不，不包括的是任何會發生的事情，從去年的逆風中自然復甦。這項工作旨在提供超出此範圍的燃料，以實現我們的頂線和底線目標。

Mike, when we asked you to lead this project, we spent a lot of time thinking about the guardrails. Now obviously, there's big opportunities that we want to capture. But there's also things we never want to compromise. Do you want to talk about the opportunities versus the guardrail of let's say, "We'll never head in this direction?"

邁克，當我們請你領導這個項目時，我們花了很多時間思考護欄。現在很明顯，我們想要抓住很多機會。但也有一些我們永遠不想妥協的事情。你想談談機會與護欄的關係嗎？比方說，“我們永遠不會朝這個方向前進？”

Yes, I think that's a really important question. And the things we're not willing to sacrifice start with a team member and the guest experience. We're not going to take away anything given the investments we've made in our team over the last couple of years, and spending that time in human resources during those early days of the pandemic had an appreciation for all our team did to run our business and to serve our guests. And so I look at our team members and the investments we make as an investment in the best team in retail.

是的，我認為這是一個非常重要的問題。我們不願意犧牲的事情是從團隊成員和客人體驗開始的。鑑於我們在過去幾年中對團隊所做的投資，我們不會帶走任何東西，並且在大流行初期花在人力資源上的時間對我們團隊所做的一切表示讚賞我們的業務和服務我們的客人。因此，我將我們的團隊成員和我們所做的投資視為對零售業最佳團隊的投資。

Similarly, on the guest side, our shopping experience is a key differentiator for Target, and we're not looking at anything to take away from that. In fact, our guiding principle around this work is, how do you make it easier for our team members to run our business and in doing so, deliver a great guest experience? And so we do that, we think we'll see benefits to both the team and our guests.

同樣，在客人方面，我們的購物體驗是 Target 的一個關鍵差異化因素，我們不會考慮從中汲取任何東西。事實上，我們圍繞這項工作的指導原則是，您如何讓我們的團隊成員更輕鬆地經營我們的業務，並在這樣做的過程中提供出色的客戶體驗？所以我們這樣做了，我們認為我們會看到對團隊和客人都有好處。

Mike, since we first announced this work, I've had a bunch of investors ask me where they should expect to see the results of this work show up in the P&L? Can you share your initial thoughts?

邁克，自從我們首次宣布這項工作以來，我有一群投資者問我他們應該在哪裡看到這項工作的結果出現在損益表中？你能分享一下你最初的想法嗎？

Sure. I think it's -- you're going to see it across the full P&L. So I'm not sure you're going to be isolating it to one single component. What excites me about this work, though, as we think about running the different scale, I think there's top line opportunity. And so it's going to start with sales. Now we're not going to do anything against the -- we're going to continue to invest in our team, but any efficiency work will have SG&A impact on the SG&A line. And product costs continue to be our biggest line item on the P&L, so we'll see it there as well. But I also will say it'll expand beyond the P&L as we look to be more efficient in our CapEx.

當然。我認為這是——你會在整個損益表中看到它。所以我不確定您是否會將其隔離為一個組件。然而，這項工作讓我興奮的是，當我們考慮運行不同的規模時，我認為有頂級機會。因此，它將從銷售開始。現在我們不會做任何反對——我們將繼續投資於我們的團隊，但任何效率工作都會對 SG&A 線產生影響。產品成本仍然是我們損益表中最大的項目，所以我們也會在那裡看到它。但我也會說，隨著我們希望在資本支出方面更有效率，它會擴展到損益表之外。

So Mike, I know you're still in the early stages of scoping the work, but there's also things that we've been working on for quite some time now that we can build on. Do you want to highlight some of those?

所以邁克，我知道你仍處於確定工作範圍的早期階段，但也有一些我們已經研究了很長一段時間的事情現在可以繼續進行了。你想強調其中的一些嗎？

Sure. We touched base on a lot this morning that work around digital fulfillment, I think, is a great example. We've been -- that work in several years underway, when you think about our stores as hub model, has significantly decreased our fulfillment cost. John mentioned 40% over 3 years.

當然。今天早上我們談到了很多關於數字實現的工作，我認為這是一個很好的例子。我們一直 - 幾年來，當您將我們的商店視為樞紐模型時，這項工作已經大大降低了我們的履行成本。約翰提到 3 年內有 40%。

We've also been able to increase speed of delivery and improved the guest experience across all those different nodes, whether that's ship-to-home, Drive-Up, Order Pick up or Shipt delivery, and it's extremely capital efficient.

我們還能夠提高交付速度並改善所有這些不同節點的客人體驗，無論是送貨上門、駕車上門、接單取貨還是送貨，而且它具有極高的資本效率。

If you look forward now, we think there's hundreds of million dollars to continue to unlock with our investment in sortation centers. That's a business -- that's a capability that's been on our road map for a few years now, but requires scale and density at the market level to unlock. And given the growth over the last 3 years, we now have that.

如果你現在向前看，我們認為我們對分揀中心的投資將繼續釋放數億美元。這是一項業務 - 這是我們幾年來一直在我們的路線圖上的能力，但需要市場層面的規模和密度才能解鎖。鑑於過去 3 年的增長，我們現在有了。

And so we think there's opportunity in a dozen of metro markets. We already have 9 facilities out there and plan to have a total of 15 by 2026. And so we'll open those up, but also we'll make those centers more efficient as well as we think about streamlining processes in them and looking to introduce automation and technology.

因此，我們認為十幾個地鐵市場存在機會。我們已經有 9 個設施，計劃到 2026 年總共有 15 個。因此我們將開放這些設施，但我們也會提高這些中心的效率，同時我們考慮簡化它們的流程並期待引入自動化和技術。

Thanks, Mike. Can you also provide an example of a newer effort you're excited about?

謝謝，邁克。您能否也提供一個讓您感到興奮的新成果的例子？

Yes. I think the best example is the work that's underway now in Apparel. This one is near and dear to my heart. My first role at Target was the finance partner for our women's apparel business. I also think it serves as a really great example of what is possible with this work. Apparel, just like the rest of our business, has seen explosive growth. We've grown over $3 billion and now a over $17 billion business in Apparel business. It also has its unique complexities, right, from the fact that we partner with vendors to source raw materials, to the fact that we have unique fixtures in store for presentation. So all the geographical and weather and demographic considerations that go into assortment planning and allocation.

是的。我認為最好的例子是服裝領域正在進行的工作。這一個對我來說很親近。我在 Target 的第一個角色是女裝業務的財務合作夥伴。我還認為它是一個很好的例子，說明了這項工作的可能性。服裝，就像我們的其他業務一樣，經歷了爆炸式增長。我們的服裝業務增長超過 30 億美元，現在的業務規模超過 170 億美元。它也有其獨特的複雜性，對吧，從我們與供應商合作採購原材料的事實，到我們在商店中擁有獨特的固定裝置以供展示的事實。因此，所有的地理、天氣和人口統計因素都會進入分類規劃和分配。

And so that growth, combined with that complexity, makes a tremendous opportunity to step back and say, how do we run this business at a larger scale and how do we position it for future growth? And so we're focused right now on driving simplicity, speed and consistency across the entire pair of value chain. And in doing so, we expect to see benefits from assortment planning, to supply chain, all the way down to guest fulfillment.

因此，這種增長與這種複雜性相結合，提供了一個巨大的機會，讓我們可以退一步說，我們如何更大規模地經營這項業務，以及我們如何為未來的增長定位它？因此，我們現在專注於推動整個價值鏈的簡單性、速度和一致性。在這樣做的過程中，我們希望看到從分類規劃到供應鏈，一直到客人滿意度的好處。

And the benefits will be across the P&L. We'll see it in lower markdowns, we'll see it in increased productivity -- labor productivity, and we'll see it in top line sales. And so I love that example because it gives you a chance to step back and say, look, we've seen this growth over the last 3 years. How do we look end-to-end across the value chain to position it differently? How do we simplify for the work for our guests? And in doing so, we believe we'll see benefits across the P&L with the most important one being top line sales.

收益將遍及損益表。我們會在較低的降價幅度中看到它，我們會在提高的生產率——勞動生產率中看到它，我們會在頂線銷售額中看到它。所以我喜歡這個例子，因為它讓你有機會退一步說，看，我們在過去 3 年裡看到了這種增長。我們如何看待整個價值鏈的端到端以不同的方式定位它？我們如何簡化客人的工作？在這樣做的過程中，我們相信我們會看到整個損益表的好處，其中最重要的是頂線銷售。

So Mike, I love the way you framed this up. This is all about fueling future growth, driving simplicity, reducing complexity, never compromising the guest experience and the role our teams play. Are there any other components as you think about this, that you want to touch upon?

所以邁克，我喜歡你構思的方式。這一切都是為了推動未來的增長，推動簡單性，降低複雜性，從不損害客戶體驗和我們團隊所扮演的角色。在考慮這個問題時，您是否還有其他想要觸及的組件？

Well, I'd say thanks for letting me come up to share just a couple of examples. I would say -- I'd reiterate is this starts with growth. It starts about how do we make it simple and easier for our team members to deliver a great experience. And that work is going to be a multiyear journey, and this will require end-to-end problem solving across the value chain. But when we do that, we focus on making a better team member experience. We'll see a better impact to our team, our guests and our P&L.

好吧，我要說謝謝你讓我來分享幾個例子。我會說 - 我會重申這是從增長開始的。它始於我們如何讓我們的團隊成員更簡單、更輕鬆地提供出色的體驗。這項工作將是一個多年的旅程，這將需要在整個價值鏈中解決端到端的問題。但當我們這樣做時，我們會專注於打造更好的團隊成員體驗。我們將看到對我們的團隊、我們的客人和我們的 P&L 產生更好的影響。

Well, Mike, I want to thank you for joining us on stage here today. We're really excited about the opportunities that are in front of us. You've heard a few examples today, and we'll continue to provide updates along the way.

好吧，邁克，我要感謝你今天加入我們的舞台。我們對擺在我們面前的機會感到非常興奮。您今天已經聽到了一些示例，我們將繼續提供更新。

So Mike, thank you for joining us.

邁克，謝謝你加入我們。

Thanks, Brian.

謝謝，布萊恩。

Michael, I'll have you back here in a second.

邁克爾，我馬上讓你回來。

Great.

偉大的。

So as we get ready to hear from you and take your questions, I thought I'd briefly recap some of the themes you've heard today. First, our commitment to our guests is as strong as ever. Second, our strategy, our multi-category portfolio, our stores as hub model will provide the flexibility we need to keep growing because we're going to stay closely connected to our guests. Finally, there have been some fundamental changes at Target over the last 3 years. We're more than $30 billion bigger. We set the omnichannel standard with stores as hubs. We'll continue to build and innovate in that realm. We'll set the pace in supporting and developing the very best team in retail.

因此，當我們準備好聽取您的意見並回答您的問題時，我想我應該簡要回顧一下您今天聽到的一些主題。首先，我們對客人的承諾一如既往。其次，我們的戰略、我們的多類別產品組合、我們的商店作為樞紐模式將為我們提供保持增長所需的靈活性，因為我們將與我們的客人保持密切聯繫。最後，在過去 3 年中，Target 發生了一些根本性的變化。我們的規模超過 300 億美元。我們設定了以商店為中心的全渠道標準。我們將繼續在該領域進行建設和創新。我們將在支持和發展最優秀的零售團隊方面設定步伐。

Perhaps the most important takeaway is something that hasn't changed, and that's our ability to shift our business and our categories in step with our guests. If they need to prioritize food and essentials, we'll lean into those categories. But as you heard from Christina, in a year when discretionary spending was down, our discretionary categories generated $55 billion in sales. Our guests today are responding to newness. They're celebrating seasons as we just saw with Valentine's Day. They're eager to be out in our stores and enjoying that guest experience, and we're seeing it in our traffic growth. And we know they really value affordable joy.

也許最重要的收穫是沒有改變的東西，那就是我們能夠與客人同步改變我們的業務和類別。如果他們需要優先考慮食物和必需品，我們將傾向於這些類別。但正如你從克里斯蒂娜那裡聽到的那樣，在可自由支配支出下降的一年裡，我們的可自由支配類別產生了 550 億美元的銷售額。我們今天的客人正在響應新事物。正如我們剛剛在情人節看到的那樣，他們正在慶祝季節。他們渴望光臨我們的商店並享受那種客人體驗，我們在客流量增長中看到了這一點。我們知道他們真的很重視負擔得起的快樂。

So we remain fully committed to our multi-category portfolio, to essentials and to our discretionary categories. And as our guests lean back in discretionary categories over time, we'll be ready to flex into those trends, building substantially on the near-term plans we share today.

因此，我們仍然完全致力於我們的多類別產品組合、必需品和我們的自由裁量類別。隨著時間的推移，我們的客人將退回到可自由支配的類別中，我們將準備好適應這些趨勢，在我們今天分享的近期計劃的基礎上進行實質性的建設。

We know that will happen. But in the meantime, we're moving forward thoughtfully. We're doubling down on retail fundamentals. We're finding fuel for further growth through efficiency. And while we're emphasizing prudence in our near-term performance, I am incredibly positive about the long-term potential and our ability to translate both into positive outcomes for all stakeholders, including shareholder returns over time.

我們知道那會發生。但與此同時，我們正在深思熟慮地前進。我們正在加倍關注零售基本面。我們正在通過效率尋找進一步增長的動力。雖然我們強調近期業績的審慎性，但我對長期潛力以及我們將這兩者轉化為所有利益相關者的積極成果的能力非常樂觀，包括隨著時間的推移股東回報。

So I want to close by thanking our team as they tune in from around the globe, and thanking all of you for staying with us on this journey.

因此，我想在結束時感謝我們的團隊，因為他們來自全球各地，並感謝大家在這段旅程中與我們同在。

And with that, I'll ask Christina, John and Michael to come back, and we'll open it up for your questions.

有了這個，我會請克里斯蒂娜、約翰和邁克爾回來，我們會打開它來回答你的問題。

All right. I see hands already going up. We've got paddle runners around the room. As I call on you, I might ask you just to pause, introduce yourself and ask your question. So why don't we start right here. Michael?

好的。我看到手已經舉了起來。我們房間裡有划槳器。當我拜訪你時，我可能會要求你暫停一下，自我介紹並提出你的問題。那麼，為什麼我們不從這裡開始。邁克爾？

It's Michael Lasser from UBS. A few questions. Number one, last year at this meeting, you had talked about an 8% operating margin. So what has changed this year to -- last year to this year structurally with the business to make it a lower operating margin business?

我是來自瑞銀的 Michael Lasser。幾個問題。第一，去年在這次會議上，你談到了 8% 的營業利潤率。那麼今年發生了什麼變化——從去年到今年在結構上與業務相關，使其成為較低的營業利潤率業務？

Two, what is it going to take to get to the 6% operating margin by next year? And third, Brian, sorry, did you look at the experience over the last few quarters and say, hey, we missed what we expected it to do. So let's take a more conservative, cautious view on how we're planning this year, leaving potential room for upside?

第二，到明年要達到 6% 的營業利潤率需要什麼條件？第三，布賴恩，抱歉，你是否看過過去幾個季度的經驗並說，嘿，我們錯過了我們預期的事情。因此，讓我們對今年的計劃採取更保守、更謹慎的看法，從而留下潛在的上行空間？

Michael, why don't I ask you to start, and then I'll come back and answer the back half of that question.

邁克爾，為什麼我不請你開始，然後我會回來回答這個問題的後半部分。

Yes. So we've got a journey in front of us on the profit front, and 2023 plays an important role in stepping back to where we expect to get over time. When we guided to a wide range today, even at the low end, we expect over $1 billion in net income growth year-over-year. And we want to execute that plan, that's first and foremost. Under the right set of conditions, we think we can get to 6% in 2024. And then we'll take it from there. But we've got the next couple of years squarely in focus because we've got work to do to recover our performance from last year.

是的。因此，我們在利潤方面有一段旅程擺在我們面前，2023 年在回到我們預期隨著時間的推移達到的水平方面發揮著重要作用。當我們今天指導範圍很廣時，即使在低端，我們預計淨收入同比增長超過 10 億美元。我們要執行該計劃，這是首要的。在合適的條件下，我們認為我們可以在 2024 年達到 6%。然後我們將從那裡開始。但我們將重點關注接下來的幾年，因為我們需要努力恢復去年的表現。

As we think about what's optimal over time, I'll go back to what I said in remarks, we want the optimal rate that maximizes profit dollar growth over time. And I think there's still a few variables that will click into place between now and when we have that conversation in the quarters and months to come. But we want to be focused on dollars, in dollar growth, philosophically, that's the thing that we'd leave the group with today.

當我們考慮隨著時間的推移什麼是最優的時，我會回到我在評論中所說的，我們想要隨著時間的推移最大化利潤美元增長的最優利率。而且我認為，從現在到我們在未來幾個季度和幾個月內進行對話時，仍有一些變量會出現。但我們希望專注於美元，美元增長，從哲學上講，這就是我們今天要離開的事情。

And Michael, back to lessons learned from last year. We've used the term uncertainty quite a bit today. We recognized last year that the consumer trends move very quickly. And one of the things I'm most proud of is the way this leadership team embraced the challenge, took it head on, made the adjustments in our inventory and protected the guest experience. That's why we continue to see traffic growth and unit share gains across our portfolio and why we're so well positioned today for 2023 with overall inventory down 3%, but importantly, discretionary inventory down 13%.

邁克爾，回到去年的經驗教訓。我們今天已經多次使用不確定性這個術語。我們去年認識到消費趨勢變化非常快。我最引以為豪的一件事是這個領導團隊迎接挑戰、直面挑戰、調整我們的庫存並保護客人體驗的方式。這就是為什麼我們繼續看到我們投資組合中的流量增長和單位份額增長，以及為什麼我們今天在 2023 年處於如此有利的位置，整體庫存下降 3%，但重要的是，可自由支配的庫存下降 13%。

So lessons learned for us, but I'm incredibly proud of the way this team dealt with that issue upfront, protected our team, protected our guests and position us for the long term.

所以我們吸取了教訓，但我為這個團隊預先處理這個問題、保護我們的團隊、保護我們的客人並使我們長期定位的方式感到無比自豪。

Why don't we go over on this side.

為什麼我們不從這邊過去。

Paul Lejuez, Citigroup. A couple of questions on Drive-Up returns. Curious what percent of your returns are done at store? Also what is your typical attach rate? When you get somebody in a store that would return an item, do you also convert them to sales? Is there a risk that you might give up that opportunity? And then second, just high level, free cash flow. Once you get through all the working capital changes in F '23, what does free cash flow look like in your view for this upcoming year?

花旗集團的 Paul Lejuez。關於免下車退貨的幾個問題。想知道您有多少百分比的退貨是在商店完成的？另外，您的典型附加率是多少？當您在商店中找到可以退貨的人時，您是否也將其轉化為銷售額？您是否有可能放棄該機會的風險？其次，只是高水平的自由現金流。一旦你完成了 F '23 的所有營運資本變化，你認為來年的自由現金流是什麼樣的？

All right. So several questions to answer there. John, I might ask you to start and explain why we're so excited about the changes we're making with returns through Drive-Up. And then Michael, we can talk about the second part of the question.

好的。有幾個問題要在那裡回答。約翰，我可能會請你開始解釋為什麼我們對通過 Drive-Up 退貨所做的改變如此興奮。然後邁克爾，我們可以談談問題的第二部分。

Yes. The majority of returns come back to store, but a meaningful portion are still shipped back to us. So that's not insignificant. As it relates to your -- the second part of your question around attach rate, and this is the question when we started Order Pick Up and when we started Drive-Up. And to us, that's respectfully not an important consideration.

是的。大部分退貨會返回商店，但仍有很大一部分會運回給我們。所以這不是微不足道的。因為它與你有關——你的問題的第二部分是關於附加率的，這是我們開始接單和開始開車時的問題。對我們來說，這並不是一個重要的考慮因素。

What is important is allow the guests to interact with us how they choose. And at every step when they see us -- when we see them jump into Drive-Up, when we see them use Shipt, when they -- we see them use Pick Up, their engagement with Target increases, not just digitally, but also in-store, and that becomes a better guest for Target. The best guest set for Target are the ones that interact with all of our various ways of interacting with them.

重要的是讓客人以他們選擇的方式與我們互動。在他們看到我們的每一步——當我們看到他們跳進 Drive-Up，當我們看到他們使用 Shipt，當他們——我們看到他們使用 Pick Up，他們與 Target 的互動增加，不僅僅是數字方式，而且在店內，這成為 Target 更好的客人。 Target 的最佳訪客集是那些與我們互動的所有各種方式互動的訪客。

And so this provides them another opportunity to create ease. You've got your kid in the back. I need some milk and I got to return this, whatever, at Target. I put that in my trunk. I show up. They bring the milk, they take that away and I'm off on my day again. And then on Saturday, we'll come in and do the stock-up trip and that will be great. So our approach is just to continue to lean into where they want us to go.

因此，這為他們提供了另一個創造輕鬆的機會。你有你的孩子在後面。我需要一些牛奶，無論如何，我必須在 Target 退貨。我把它放在我的行李箱裡。我出現了他們帶來了牛奶，他們把牛奶拿走了，我又開始了我的一天。然後在星期六，我們會進來進行庫存旅行，那會很棒。所以我們的方法就是繼續靠在他們希望我們去的地方。

Top two feedback things on Drive-Up, why can't I get my coffee? Why can't I get a Starbucks? And why can't I return something? And so we're still working on the Starbucks, but we're ready for returns. And again, if we listen to the guests, they'll engage with us.

關於 Drive-Up 的前兩項反饋，為什麼我不能喝咖啡？為什麼我點不了星巴克？為什麼我不能退貨？因此，我們仍在為星巴克工作，但我們已準備好退貨。再一次，如果我們傾聽客人的意見，他們就會與我們互動。

Yes. John, I think one of the things we've learned over the last 3 years, and we watched it carefully as we expanded Drive-Up and Pick Up and started delivering right to your home with Shipt, we said, all right, is this going to impact the guest engagement in store? It's quite the opposite. As guests use all of our capabilities, they actually spend more dollars in-store and just reward us with more trips. So it's been an important learning that we'll build on. And I think we'll just deepen that engagement as we give them another easy solution for returns.

是的。約翰，我認為這是我們在過去 3 年中學到的一件事，我們仔細觀察了它，因為我們擴展了 Drive-Up 和 Pick Up 並開始使用 Shipt 直接送貨上門，我們說，好吧，這是會影響店內客人的參與度嗎？恰恰相反。當客人使用我們所有的功能時，他們實際上會在店內花費更多的錢，而只是獎勵我們更多的旅行。所以這是一個重要的學習，我們將以此為基礎。而且我認為我們會加深這種參與，因為我們為他們提供了另一種簡單的退貨解決方案。

Yes. Just -- at risk of piling on. We care about economics at the transaction level. We care about the economics at the category level. We care about the economics at the fulfillment path. But the thing that we thought differently about over time is cutting the economics by guests. When we take friction out of the process and make it easier for guests to just fall more and more in love with Target, that's the most powerful economic relationship to be focused on. I think we've learned that time and time again, and Drive-Up is a perfect example.

是的。只是 - 有堆積的風險。我們關心交易層面的經濟性。我們關心類別級別的經濟學。我們關心履行路徑的經濟性。但隨著時間的推移，我們對不同想法的看法是削減客人的經濟收入。當我們消除流程中的摩擦並讓客人更容易越來越愛上 Target 時，這就是需要關注的最強大的經濟關係。我認為我們已經一次又一次地了解到這一點，而 Drive-Up 就是一個很好的例子。

On the free cash flow question, we're not guiding to free cash flow specifically, but we expect material improvement from a free cash flow basis. And I touched on some of the drivers. The first is better profitability. The second is we expect working capital recovery. I mean our turns slowed, our supply chain times were longer this year and that came with working capital investments to make sure we're getting product here early enough with a volatile supply chain. And so we were running at suboptimal working capital levels through the bulk of 2022. As we move through 2023, I would expect that to improve.

關於自由現金流問題，我們並沒有具體指導自由現金流，但我們預計自由現金流基礎會有所改善。我談到了一些司機。首先是更好的盈利能力。第二是我們預計營運資金回收。我的意思是我們的輪轉速度放慢了，今年我們的供應鏈時間更長了，隨之而來的是營運資本投資，以確保我們在供應鏈不穩定的情況下足夠早地拿到產品。因此，在 2022 年的大部分時間裡，我們的營運資金水平都處於次優水平。到 2023 年，我預計這種情況會有所改善。

I think I see a hand up right in this first row. In fact, quite a few. We'll start right in the middle.

我想我看到第一排有人舉手了。事實上，相當多。我們將從中間開始。

Simeon Gutman, Morgan Stanley. You mentioned that fulfillment costs, I think, on digital are down 40% since 2019. Is there any merit to the fact that you're a $110 billion sales organization and that you've suddenly become less efficient such that this path back to 6% requires investments? And so the ultimate question is how much of getting back is the pure recapture of lapping markdowns, freight costs, shrink versus how much you have to invest to get back to that level?

西蒙古特曼，摩根士丹利。你提到，我認為，自 2019 年以來，數字化的履行成本下降了 40%。你是一個價值 1100 億美元的銷售組織，你突然變得效率低下，以至於這條道路回到 6，這有什麼好處嗎？ % 需要投資？因此，最終的問題是，有多少回歸是純粹的減價減價、運費、縮水，以及你必須投資多少才能回到那個水平？

Yes, I'm happy to start. It's a piece of both. We've seen some structural changes in the business. We talked about shrink as being one, and that's not one that we expect to turn in a different direction quickly. But the efficiency we've been able to drive, given how efficient stores are as a fulfillment hub is a huge advantage to us when it comes to digital fulfillment. It's fast for the guest, the economics of it work for us and we build engagement like we talked about before.

是的，我很高興開始。這是兩者的一部分。我們已經看到業務發生了一些結構性變化。我們談到收縮是一個，我們不希望它迅速轉向不同的方向。但是，考慮到商店作為履行中心的效率，我們能夠提高的效率在數字履行方面對我們來說是一個巨大的優勢。它對客人來說很快，它的經濟性對我們有用，我們像之前談到的那樣建立參與度。

Separately, we continue to be focused, as Mike shared, on the efficiency work. And that's important work. We want fuel from efficiency, to keep investing in growth of the business. And that will also play a role in getting us to the right profit outcome that we should have as a $100-plus billion retailer.

另外，正如 Mike 分享的那樣，我們繼續關注效率工作。這是一項重要的工作。我們希望從效率中獲得動力，以繼續投資於業務增長。這也將有助於我們獲得作為一家 100 多億美元的零售商應該擁有的正確利潤結果。

Go ahead, Mike.

來吧，邁克。

Sorry, Brian. I'd add on as it relates to capacity, particularly because you brought up fulfillment, we've seen our sales productivity in the store increase by 37% over the last 3 years, Brian mentioned that. We still have -- so an average store has gone, call it from $40 million to $55 million over the last 3 years. We still have stores that do over $100 million and do well over $100 million. The top quartile does significantly more than the median store.

對不起，布萊恩。我要補充一點，因為它與容量有關，特別是因為你提出了履行，我們已經看到我們在過去 3 年中商店的銷售生產力增加了 37%，Brian 提到了這一點。我們仍然有 - 所以平均商店已經消失，在過去 3 年裡從 4000 萬美元到 5500 萬美元。我們仍然有營業額超過 1 億美元的商店，而且營業額遠遠超過 1 億美元。排名前四分之一的商店比中位數商店做得更多。

So we have tons of capacity sitting out there unused in our stores and the ability to turn faster, again, back to we need to improve how we move inventory and how quickly we move inventory, which we're on the journey on, but our stores have significant capacity to continue to drive both in-store sales and our digital business.

因此，我們的商店中有大量未使用的產能，並且有能力更快地轉向，再次回到我們需要改進我們移動庫存的方式和移動庫存的速度，我們正在努力，但我們的商店有很大的能力繼續推動店內銷售和我們的數字業務。

Why don't we go in the back?

我們為什麼不去後面呢？

Brian, I'd like to talk a little bit about the trade down impacts you're seeing. Are you a net gainer or donor on the trade down? And to the extent you are losing some share there, do you have -- does your customer database allow you to adopt win-back strategies targeted to those people who may have traded out?

布賴恩，我想談談你所看到的貿易下降的影響。您是交易的淨獲利者還是捐助者？就你在那裡失去一些份額而言，你是否有 - 你的客戶數據庫是否允許你採用針對那些可能已經交易的人的贏回策略？

Okay. Christina, do you want to talk about what we're seeing as far as guest shopping behavior?

好的。克里斯蒂娜，你想談談我們所看到的客人購物行為嗎？

Yes, happy to. First of all, over the last couple of years, we've gained a tremendous amount of new guests into the Target ecosystem. And so our focus right now has been to deepen our engagement with the guests. Of course, we always want more guests, but the opportunity in front of us is much more to convert them into using the suite of capabilities because they become much more loyal. They understand the Target value proposition more deeply once they experience the ease and convenience of Drive-Up or once they recognized what an incredible food and beverage offering we have. And so that's our primary focus right now.

是的，很高興。首先，在過去幾年中，我們在 Target 生態系統中吸引了大量新客人。因此，我們現在的重點是加深與客人的互動。當然，我們總是想要更多的客人，但擺在我們面前的機會更多是將他們轉化為使用這套功能，因為他們變得更加忠誠。一旦他們體驗了 Drive-Up 的輕鬆和便利，或者一旦他們認識到我們提供的食品和飲料是多麼令人難以置信，他們就會更深入地了解 Target 的價值主張。所以這是我們現在的主要關注點。

When we talk about trade down, those are words that are used in many different facets. Sometimes it's used internally in talking about private label. For us, we talk about owned brands rather than private label because these are brands we've invested in for years. We build them, design them, create the packaging, the marketing materials, and they're hugely important to our strategy.

當我們談論降價交易時，這些詞被用在許多不同的方面。有時它在內部用於談論自有品牌。對我們來說，我們談論自有品牌而不是自有品牌，因為這些是我們投資多年的品牌。我們建造它們，設計它們，製作包裝，營銷材料，它們對我們的戰略非常重要。

And so in that sense, we never think about it as trade down. We think about it as trade in. It creates more options for people to use and engage with our portfolio because it tends to be the same great quality at incredible price points. And so the growth of our owned brand strategy would reflect significant potential in the future based on the success we've had in the past.

因此，從這個意義上說，我們從不認為它是降價交易。我們將其視為以舊換新。它為人們使用和參與我們的產品組合創造了更多選擇，因為它往往以令人難以置信的價格提供同樣優質的產品。因此，基於我們過去取得的成功，我們自有品牌戰略的增長將反映出未來的巨大潛力。

So right now, our focus is to make sure our guests are aware of what we have and create a better, less frictionless experience, make sure that we deepen the loyalty with the consumer.

所以現在，我們的重點是確保我們的客人知道我們擁有什麼，並創造更好、更順暢的體驗，確保我們加深對消費者的忠誠度。

Right. Moving right here.

正確的。就在這裡移動。

Right. Maybe I'll just -- I'll jump in. Greg Melich. I got the mic. I'll just do it.

正確的。也許我會——我會加入進來。Greg Melich。我拿到了麥克風。我會去做的。

You got the mic. The power of the mic, Greg.

你拿到了麥克風。麥克風的力量，格雷格。

Really two questions. John, maybe -- well, maybe, Michael, if you could help us on some of the other margin drivers that you see, particularly shrink, you called out is still a headwind. What do you do to actually fix that? I'm also thinking credit profitability now that some of the delinquency rates and other charges are changing.

真的是兩個問題。約翰，也許——嗯，也許，邁克爾，如果你能幫助我們解決你看到的其他一些保證金驅動因素，特別是收縮，你大聲疾呼仍然是一個逆風。你做了什麼來真正解決這個問題？我也在考慮信貸盈利能力，因為一些拖欠率和其他費用正在發生變化。

And then maybe bigger picture, Brian, how important is keeping traffic? You've gained so much traffic and customer engagement. How do you think about pulling that lever versus promotion and margin and expect more, pay less? Is it critical that traffic keeps growing no matter what? Or could it slip 1% or 2% just given your mix? How do you think about pulling those levers as we go through this uncertain year or 2?

然後也許更大的圖景，布賴恩，保持流量有多重要？您獲得瞭如此多的流量和客戶參與度。你如何看待拉動槓桿與促銷和利潤以及期望更多，支付更少？無論如何，流量保持增長是否至關重要？或者它會因為你的組合而下滑 1% 或 2%？在我們經歷這不確定的一兩年時，您如何看待拉動這些槓桿？

Michael, why don't I start with the focus on traffic. And as we sit here today, and you've heard me talk about this for years and years now, we think one of the most important indicator of a retailer's health is the traffic indicator. And that's why we feel so good about the fact that we've had 23 consecutive quarters where we've seen comp store sales growth, and it's all on the back of traffic. We're getting more footsteps into our stores, more visits to our site, greater engagement. Our guests are spending more with us. They are rewarding us with more trips and they're shopping more categories. And we think that's critically important.

邁克爾，我為什麼不從關注交通開始。當我們今天坐在這裡時，你們已經聽我談論這個問題很多年了，我們認為零售商健康狀況最重要的指標之一是客流量指標。這就是為什麼我們對連續 23 個季度看到商店銷售額增長的事實感到非常滿意，而這一切都歸功於流量。越來越多的人走進我們的商店，越來越多地訪問我們的網站，越來越多的人參與進來。我們的客人在我們這里花費更多。他們通過更多的旅行來獎勵我們，並且他們正在購買更多的類別。我們認為這非常重要。

To John's point, while we've seen a significant lift over the last few years in our sales per square foot, we know there's still potential to go further. And as we think about capabilities like Target Circle, our ability to connect with those guests and deepen their relationship, introduce them to newness in our assortment in other categories, we think we have a tremendous opportunity in front of us.

就 John 的觀點而言，雖然過去幾年我們的每平方英尺銷售額有了顯著提升，但我們知道仍有進一步提升的潛力。當我們考慮像 Target Circle 這樣的功能時，我們有能力與這些客人建立聯繫並加深他們的關係，向他們介紹我們在其他類別中的新產品，我們認為我們面前有一個巨大的機會。

But sitting here today, I continue to believe looking at trips is critically important. And in an inflationary environment that we're working in today, it's why we're so laser-focused on unit share improvement because those things are going to be really important as we move to a more normalized environment, because the guest is turning to us more frequently for all of their needs, both frequency and discretionary. They're shopping more categories. So making sure we're looking at units carefully, looking at trips to me is a key indicator of the health of our business today and why we're so excited about the potential in front of us.

但今天坐在這裡，我仍然相信觀察旅行是至關重要的。在我們今天工作的通貨膨脹環境中，這就是為什麼我們如此專注於提高單位份額，因為隨著我們轉向更加規範化的環境，這些事情將變得非常重要，因為客人正在轉向我們更頻繁地滿足他們的所有需求，包括頻率和自由裁量權。他們正在購買更多類別。因此，確保我們仔細查看單位，查看我的旅行是我們今天業務健康狀況的關鍵指標，也是我們對我們面前的潛力如此興奮的原因。

And maybe for the second part of your question, Greg, when it comes to margin and profitability in general, it starts with what Brian did. The strength of the top line is going to matter a lot and we feel encouraged by the traffic trends that we've seen.

也許對於你問題的第二部分，格雷格，當談到一般的利潤率和盈利能力時，它從布賴恩所做的開始。頂線的實力將非常重要，我們對我們所看到的流量趨勢感到鼓舞。

In terms of the other structural buckets, you hit on a few of them. We talked about shrink. We've seen a normalization in some of the credit metrics we watch, I think consistent with what you'd see in the industry. I wouldn't put that highest on the list of factors for next year, but it's one we'll stay close to and monitor.

就其他結構桶而言，您找到了其中的幾個。我們談到收縮。我們已經看到我們觀察到的一些信用指標正常化，我認為這與您在行業中看到的一致。我不會在明年的因素列表中把它放在首位，但這是我們將密切關注和監控的一個因素。

We've also talked and some of what we covered earlier today, we expect a promotional environment next year. We see guests responding to promotion in the fourth quarter, and we expect that, that's something that could continue. We'll also have some tailwinds on the margin side though. I mean we're anniversary-ing a level of markdowns in salvage that was extremely typical for us, and we want to make sure we recover that. We've seen some improvement in supply chain and freight. And so as we anniversary some of the peaks from last year, that should be a good guy on the margin line. And so it's all of those variables that we factored into the guidance we gave today.

我們還談到了今天早些時候所涵蓋的一些內容，我們預計明年會有一個促銷環境。我們看到客人在第四季度對促銷活動做出反應，我們預計這種情況會持續下去。不過，我們在保證金方面也會有一些順風。我的意思是，我們正在慶祝對我們來說非常典型的打撈減價水平，我們希望確保我們恢復它。我們已經看到供應鍊和貨運方面有所改善。因此，當我們紀念去年的一些高峰時，這應該是邊緣線上的一個好人。因此，我們將所有這些變量都納入了我們今天提供的指導中。

Okay. Why don't we go back there.

好的。我們為什麼不回到那裡。

Ivan Feinseth, Tigress Financial Partners. I have two questions. Could you go into some detail on how Roundel contributes to revenue growth? What percentage of your vendors are on it? And how you demonstrate your value proposition to them?

Ivan Feinseth，Tigress Financial Partners。我有兩個問題。您能否詳細介紹一下 Roundel 如何促進收入增長？您的供應商中有多少百分比在其中？您如何向他們展示您的價值主張？

And then my second question, this morning on your interview on CNBC, you spoke about your strength in toys and your growth in home goods. What other category opportunities do you see that, going forward, you could lever and become a retailer of choice in those categories?

然後是我的第二個問題，今天早上在 CNBC 的採訪中，您談到了您在玩具方面的優勢和您在家居用品方面的增長。您認為未來還有哪些其他品類機會可以利用並成為這些品類中的首選零售商？

Right. Well, Christina, I'll let you talk a bit about Roundel and just how important it's been for our vendor partners and deepening engagement. But the second question is something we talk about all the time. And sitting here today, you and I both know, while we have built great momentum and added over $30 billion of growth, we know we still have category opportunities all around us.

正確的。好吧，克里斯蒂娜，我會讓你談談 Roundel 以及它對我們的供應商合作夥伴和深化參與的重要性。但第二個問題是我們一直在談論的話題。今天坐在這裡，你我都知道，雖然我們已經建立了巨大的勢頭並增加了超過 300 億美元的增長，但我們知道我們周圍仍然存在品類機會。

Yes. So first, Roundel, like I mentioned in my prepared remarks, is an incredibly important part of our ecosystem. It gives our vendors an opportunity to target the guests that they see as most likely to be intrigued by their new products and the quality of merchandise that they're bringing to market. It allows us to highlight those products and give them real-time insights about how it's selling because of the closed loop reporting that we can offer.

是的。首先，正如我在準備好的發言中提到的那樣，Roundel 是我們生態系統中非常重要的一部分。它讓我們的供應商有機會瞄准他們認為最有可能對他們的新產品和他們推向市場的商品質量感興趣的客人。由於我們可以提供閉環報告，它使我們能夠突出這些產品，並讓他們實時了解產品的銷售情況。

And so this has been a huge part of the demand generation for a lot of our businesses. We are very engaged with a broad spectrum of vendors across the entirety of the portfolio, and believe that Roundel is going to be an important part of the future, partly because of that guest-centricity that we bring to the model, but also because our guests want to know what's new and relevant, both across owned brands and national brands and how it fits into their lives.

因此，這已成為我們許多業務需求生成的重要組成部分。我們在整個產品組合中與廣泛的供應商密切合作，並相信 Roundel 將成為未來的重要組成部分，部分原因是我們為模型帶來的以客人為中心的理念，還因為我們的客人想知道自有品牌和民族品牌的新鮮事物和相關事物，以及這些事物如何融入他們的生活。

So maybe I can pivot to that second question and really talk about what opportunities we have. Well, we have a broad portfolio. And we think the strength of our multi-category portfolio is a differentiator in the market. We don't build an assortment for a snapshot in time. So having a healthy business across every dimension, allows us to flex as market conditions change.

所以也許我可以轉向第二個問題，真正談談我們有什麼機會。好吧，我們有廣泛的產品組合。我們認為我們多類別產品組合的實力是市場上的差異化因素。我們不會及時為快照構建分類。因此，在各個方面擁有健康的業務，使我們能夠隨著市場條件的變化而靈活調整。

Right now, we're flexing into Essentials & Beauty and Food & Beverage. But a couple of years ago, it was Home and Hardlines that took the center stage. So having the ability to connect with consumers and having relevance and strong market share positions in many businesses is important to us. The way that we continue to build relevance is by staying super guest-centric, working to make sure that we are a destination for seasonal businesses. Seasonal businesses are kind of in our core DNA because it's a great way for guests to do more in one store at one time. Everything you need for back-to-school. You can get your backpack. You can get your calculator. You can get your pens and paper. You can get your new outfit.

現在，我們正在進軍必需品和美容以及食品和飲料領域。但幾年前，佔據中心舞台的是家庭和強硬派。因此，能夠與消費者建立聯繫並在許多企業中擁有相關性和強大的市場份額對我們來說很重要。我們繼續建立相關性的方式是保持超級以客人為中心，努力確保我們成為季節性業務的目的地。季節性業務是我們的核心 DNA，因為這是讓客人一次在一家商店做更多事情的好方法。返校所需的一切。你可以得到你的背包。你可以得到你的計算器。你可以得到你的筆和紙。你可以得到你的新衣服。

So those are really important to us, but the other is the importance of newness. And you heard me talk a lot about that. They're in an environment where consumers are making trade-offs. More of the same is not going to get it done. And so really investing in innovation and something that excites them, like our Apparel floor pad right now, if you haven't been in our stores or on our site lately, go check it out. The colors, the styles, the aesthetics are right on and it's absolutely grabbing the attention of our guests.

所以這些對我們來說真的很重要，但另一個是新奇的重要性。你聽到我談論了很多。他們所處的環境中，消費者正在權衡取捨。更多相同的事情不會完成。因此，真正投資於創新和激發他們的東西，比如我們現在的服裝地板墊，如果你最近沒有去過我們的商店或我們的網站，那就去看看吧。顏色、款式和美學都恰到好處，絕對吸引了客人的注意力。

Yes. I want to go back to the heart of your question. Do we have opportunities to continue to grow share? And it's something that Michael and I talked to many of you about all the time. Despite the growth we've seen over the last few years, adding well over $30 billion of top line growth, sitting here today, we represent 3% of the retail market. So as a leadership team, we see opportunities to grow across our entire multi-category portfolio, continue to leverage growth in store and from a digital standpoint.

是的。我想回到你問題的核心。我們是否有機會繼續擴大份額？這是邁克爾和我一直與你們中的許多人談論的事情。儘管我們在過去幾年看到了增長，增加了超過 300 億美元的收入增長，但今天坐在這裡，我們佔零售市場的 3%。因此，作為一個領導團隊，我們看到了在我們整個多類別產品組合中實現增長的機會，繼續利用商店和數字角度的增長。

So while we've seen tremendous progress and we're proud of the way we've transformed the business, we still see a significant runway to take share across every one of our major categories going forward, leveraging that great in-store guest experience and the digital experience we offer, that great combination of inspiration and ease that makes Target such a great destination for guests across the country. So we see tremendous opportunities for years to come to continue to bolster our share position.

因此，儘管我們看到了巨大的進步，並且為我們轉變業務的方式感到自豪，但我們仍然看到了一個重要的跑道，可以利用出色的店內顧客體驗，在我們的每一個主要類別中分享未來的份額以及我們提供的數字體驗，靈感與輕鬆的完美結合，使 Target 成為全國各地客人的理想目的地。因此，我們看到未來幾年繼續鞏固我們的份額地位的巨大機會。

Let's come back to the front row. I know your hands have been up for a while.

讓我們回到前排。我知道你的手已經舉起來有一段時間了。

Ed Yruma from Piper Sandler. It sounds like Beauty has been a real strong category for you. Can you click down a little bit more on Ulta, maybe the difference in performance there versus non-Ulta stores? And maybe why not move faster? And then just as a quick follow-up on the $2 billion to $3 billion in efficiency gains, do you have any of that baked into '23?

來自 Piper Sandler 的 Ed Yruma。聽起來美妝對您來說是一個真正的強勢類別。您能否在 Ulta 上多點擊一下，也許那裡與非 Ulta 商店的性能差異？也許為什麼不加快速度呢？然後，作為對 20 億至 30 億美元效率收益的快速跟進，你是否將其中任何一項納入了 23 年？

Christina, you want to start and talk about Beauty? And then Michael, we can talk about '23.

克里斯蒂娜，你想開始談談美嗎？然後邁克爾，我們可以談談'23。

Yes. First and foremost, Beauty at Target has been a success story for a number of years. We have an incredible assortment that's been relevant for a while. But adding Ulta Beauty has completed our assortment. Our ability to offer prestige products in our store with a servicing experience and expertise that Ulta has brought to the table has been the missing link. And so we've completed that picture.

是的。首先，Beauty at Target 多年來一直是一個成功的故事。我們有一個令人難以置信的分類，已經有一段時間了。但是添加 Ulta Beauty 已經完成了我們的分類。我們在商店中提供具有 Ulta 帶來的服務經驗和專業知識的優質產品的能力一直是缺失的環節。所以我們已經完成了那張照片。

And so really excited about the performance, really excited about our partnership and we're looking to accelerate. We're already at 350 stores, and we'll add more, as John talked about, as part of our remodel program. So really bullish about the future there.

對性能感到非常興奮，對我們的合作夥伴關係感到非常興奮，我們正在尋求加速。我們已經擁有 350 家商店，正如約翰所說，我們將增加更多商店，作為我們改造計劃的一部分。所以真的看好那裡的未來。

Yes. Ed, you and I actually walked a store recently. And I think you heard from our local team, the fact that very excited about the results we're seeing with Ulta Beauty and it's clearly driving even more traffic to Target. But at the same time, that team talked to you about the fact that our core beauty assortment continues to grow. So they're complementing each other, and we're just becoming more and more destination for that beauty shopper.

是的。埃德，你和我最近真的去了一家商店。我想你從我們當地的團隊那裡聽說了，我們對 Ulta Beauty 所看到的結果感到非常興奮，而且它顯然為 Target 帶來了更多的流量。但與此同時，該團隊向您介紹了我們的核心美容產品種類持續增長的事實。所以它們相互補充，我們正成為越來越多的美容購物者的目的地。

On the $2 billion to $3 billion, there's a piece of that, that shows up in 2023. But a large chunk of that is multiyear in nature. And you think about the apparel example that Mike shared, I think that's just a perfect example. That's a business that grew so fast over the last few years and our teams did an amazing job to protect the good guest experience as we grew.

在 20 億至 30 億美元中，有一部分會出現在 2023 年。但其中很大一部分本質上是多年期的。想想邁克分享的服裝示例，我認為這就是一個完美的例子。這是一項在過去幾年中發展如此迅速的業務，隨著我們的成長，我們的團隊在保護良好的客戶體驗方面做得非常出色。

But when we step back and look end-to-end across a business like apparel, we just see how much opportunity to simplify. Make things easier for the guests. Make things easier for our team. And changing some of those core processes won't happen overnight. That's why the multiyear nature is important. But we expect those benefits to be significant.

但當我們退後一步，端到端地審視服裝等行業時，我們只會看到有多少機會可以簡化。讓客人的事情變得更容易。讓我們的團隊更輕鬆。改變其中一些核心流程不會在一夜之間發生。這就是多年性質很重要的原因。但我們預計這些好處將是巨大的。

Great. Let's go to this paddle right here.

偉大的。讓我們在這裡划槳。

Chris Horvers, JPMorgan. So my first question is you sit at these apex of different general merchandise categories that were major COVID winners. So as you peel away and look at the unit trends that you saw in the fourth quarter, are there signs of any stability, whether it's TVs or computing or decorative home or athleisure? Is there anything that has given you some encouragement to say like maybe we're getting to the bottom of the curve?

克里斯·霍弗斯，摩根大通。所以我的第一個問題是你坐在這些不同的一般商品類別的頂端，這些類別是 COVID 的主要贏家。因此，當您剝離並查看您在第四季度看到的單位趨勢時，是否有任何穩定的跡象，無論是電視、計算、裝飾傢居還是運動休閒？有沒有什麼事情給了你一些鼓勵，讓你說我們可能已經走到了曲線的底部？

And then my second question is around the first quarter operating margin guide versus what's implied for the fiscal year. It doesn't look like the implied is maybe like 4.5 to 5 on the fiscal year. It's not much better than the midpoint of the first quarter but yet, they're bigger quarters. You're going to lap all these headwinds from the freight side, which should be coming down, the markdowns, the salvaging. So why isn't -- and presumably consumables inflation comes down so that relative performance improves, why wouldn't you see better operating margin performance over the year relative to 1Q?

然後我的第二個問題是關於第一季度營業利潤率指南與本財年的暗示。看起來這個財政年度的隱含比率可能不是 4.5 比 5。這並不比第一季度的中點好多少，但它們是更大的季度。你將從貨運方面應對所有這些逆風，貨運方面應該會下降，降價，打撈。那麼為什麼不——而且大概是消耗品通貨膨脹率下降，從而相對錶現有所改善，為什麼你看不到一年中相對於第一季度更好的營業利潤率表現？

Christina, you want to unpack some of the trends we're seeing in discretionary categories?

克里斯蒂娜，你想解開我們在自由裁量類別中看到的一些趨勢嗎？

Yes. The most consistent theme is where there's innovation, there's still relevance. And so consumers are finding them. Social media, of course, is a great way for consumers to become connected to new products and new ideas, and you'll be surprised things will spike quickly.

是的。最一致的主題是哪裡有創新，哪裡就有相關性。因此，消費者正在尋找它們。當然，社交媒體是消費者接觸新產品和新想法的好方法，你會驚訝於事情會迅速激增。

And sometimes we don't see them coming. In other times, we're well prepared. But I would tell you that there are pockets of those in every business. And so right now, we're planning the discretionary categories at an aggregate level more cautiously, but we're certainly leaning into market share opportunities where we see them. We believe that there's opportunity in the Home business, and we'll be launching more brands in the back half of this year, both on the national and owned brand side that have the potential to grow share in that category.

有時我們看不到他們來。在其他時候，我們已經做好了充分的準備。但我會告訴你，每個行業都有這樣的人。所以現在，我們正在更加謹慎地在總體水平上規劃可自由支配的類別，但我們肯定會傾向於我們看到的市場份額機會。我們相信家庭業務存在機會，我們將在今年下半年推出更多品牌，包括國家品牌和自有品牌，這些品牌有可能在該類別中增加份額。

We're seeing it definitely in Apparel, where you get the right fashion moment and the right fashion trend. It doesn't matter that they bought a lot of performance wear over the last couple of years, they're still interested in buying new. And so that's been the most consistent correlation.

我們在服裝領域肯定看到了這一點，在那裡您可以獲得正確的時尚時刻和正確的時尚趨勢。他們在過去幾年購買了很多性能服裝並不重要，他們仍然有興趣購買新的。所以這是最一致的相關性。

With that said, we're also introducing that level of newness and interest in categories like Food & Beverage and Essentials. Our favorite day brand that we've launched over the last couple of years, was a -- which is a sweets brand, has been -- has seen explosive growth over the last year or 2. And this is a place where we've taken the liberty to innovate in basic categories, whether it's cookies or ice cream and so forth, and the flavor profiles, the way that they brought the items to market have really shown that the guests will engage across the board if we give them a reason to.

話雖如此，我們還在食品和飲料以及必需品等類別中引入了這種程度的新鮮感和興趣。我們在過去幾年推出的最喜歡的日間品牌是一個——這是一個糖果品牌，在過去一兩年裡經歷了爆炸式增長。這是我們的地方自由地在基本類別上進行創新，無論是餅乾還是冰淇淋等等，以及口味概況，他們將商品推向市場的方式確實表明，如果我們給他們一個理由，客人就會全面參與到。

Chris, if we go back to discretionary categories. You heard us talk today, Christina highlighted the fact that in 2022, despite some of the softening trends, we still generated $55 billion of revenue in discretionary categories. One of the things I highlighted this morning during my CNBC interview is I go back to 2019. We've grown our discretionary portfolio by almost $14 billion.

克里斯，如果我們回到自由裁量類別。你今天聽到了我們的談話，克里斯蒂娜強調了一個事實，即在 2022 年，儘管出現了一些疲軟趨勢，但我們仍然在可自由支配的類別中產生了 550 億美元的收入。我今天早上在接受 CNBC 採訪時強調的一件事是我回到 2019 年。我們的可自由支配投資組合增加了近 140 億美元。

So we're going to move forward from a much bigger base and much more relevance in those categories. And to Christina's point, we know they are going to return to growth over time It's going to be led by newness and innovation in the near term. But we're in a much different position going forward than we were prepandemic. And I think we have much more relevance and credibility in the space than ever before.

因此，我們將從更大的基礎和這些類別的更多相關性向前邁進。就克里斯蒂娜的觀點而言，我們知道他們將隨著時間的推移恢復增長。在短期內，它將以新穎性和創新為主導。但與大流行前相比，我們在未來的處境大不相同。而且我認為我們在該領域的相關性和可信度比以往任何時候都高。

Yes. I think we're both at, what, 20 years or so at Target, Christina? We've seen ebbs and flows across the categories in our assortment over that time. And to us, the long-term winners will be the ones that build engagement in the moment now. That's why we're so focused on traffic. Apparel and Home will have their time in the sun again, and we'll be well positioned when they do.

是的。我想我們都在 Target 工作了 20 年左右，克里斯蒂娜？在那段時間裡，我們已經看到我們分類中的類別起伏不定。對我們來說，長期的贏家將是那些在當下建立參與度的人。這就是我們如此關注流量的原因。服裝和家居將再次在陽光下大放異彩，而當他們這樣做時，我們將處於有利位置。

On the first quarter versus the balance of the year, I think I'd go back to just some of the broader themes. I think the biggest variable, that's a tough one for any of us to predict right now, it's just what's the path of the consumer during the year. We planned the first quarter reflective and mindful of the discretionary trends that we saw in the fourth quarter. And we'll learn a lot, I think, together as we move through the year, and that will inform what the balance of the year plays out at. But we think an appropriately cautious approach based on the trends we've seen is the right place to start and we'll unpack it as the year progresses.

關於第一季度與今年餘下時間的對比，我想我會回到一些更廣泛的主題上。我認為最大的變數，對我們任何人來說現在都很難預測，這就是消費者在這一年中的路徑。我們在計劃第一季度時反映並留意了我們在第四季度看到的自由裁量趨勢。我認為，在我們度過這一年的過程中，我們一起學到了很多東西，這將告訴我們今年的平衡結果。但我們認為，根據我們所看到的趨勢採取適當謹慎的方法是正確的起點，我們將隨著時間的推移展開分析。

I'm trying to scan through the room to see hands that have been up for a while that we haven't gotten to. Let's come back over here.

我試著掃視一下整個房間，看看我們有一段時間沒有舉起手了。讓我們回到這裡。

Karen Short from Credit Suisse. So a couple of questions I wanted to ask. We know what your tail -- or headwinds were for '22 in terms of dollars. You're at kind of the $1 billion-plus mark. And obviously, we know what you're guiding to on operating profit dollars for this year.

來自瑞士信貸的 Karen Short。所以我想問幾個問題。我們知道你的尾巴 - 或者以美元計算的 22 年逆風。你的收入接近 10 億美元。顯然，我們知道您對今年營業利潤的指導意見。

But I guess the question that I would have is, it seems like maybe you've set a low bar. And so the real question is, if there's upside to the top line. Is that something you would choose to flow down to the bottom line? Or would you be more inclined to lean into continuing to, I guess, invest to maintain that kind of 5-plus percent operating margin for '23?

但我想我會問的問題是，你似乎設定了一個低標準。所以真正的問題是，如果有上行的頂線。這是你會選擇流到底線的東西嗎？或者你會更傾向於繼續，我猜，投資以維持 23 年那種 5% 以上的營業利潤率？

And then the second question I would have is just on the $2 billion to $3 billion, if you could just give a little bit more on the buckets of where those are coming from? And then it sounds like there's some capture in '23, but most of it is '24 and beyond?

然後我要問的第二個問題是關於 20 億到 30 億美元的問題，你能否再多說說這些資金的來源？然後聽起來好像在 23 年有一些捕獲，但大部分是 24 年及以後的捕獲？

Yes. It's a good question, Karen. And I guess I'd go back to just kind of philosophically how we think about the business. We're in the maximizing dollars business. And so we'd read and react through this year to make the right choices that we think maximize profit dollars both for 2023 and position us well for beyond.

是的。這是個好問題，凱倫。而且我想我會回到哲學上我們如何看待業務。我們從事最大化美元業務。因此，我們在今年閱讀並做出反應，做出我們認為可以在 2023 年實現利潤最大化並為以後做好準備的正確選擇。

I'd love nothing more than in the quarters to come and to say, gosh, some trends played out stronger. The consumer was stronger in the back half of the year than maybe we thought. And if that's the case, then we'd happily have that conversation and be thrilled to outperform.

我最想在接下來的幾個季度裡說，天哪，一些趨勢表現得更強勁。今年下半年的消費者比我們想像的要強勁。如果是這樣的話，那麼我們會很高興地進行對話，並且很高興能夠表現出色。

But I think the reality is, as we sit at the start of the year, it's an uncertain environment. And we want to plan cautiously in that. And that isn't just kind of on paper caution, that's making sure that we're positioning the business right. It was important to start the year clean from an inventory perspective. We feel like we've accomplished that goal. And we'd like to lean appropriately cautiously in our inventory buys in the discretionary categories with a ton of flexibility to react if things would turn out better, but we think that's prudent for the volatility that we see right now.

但我認為現實是，當我們坐在今年年初時，這是一個不確定的環境。我們希望在這方面謹慎計劃。這不僅僅是紙上談兵的警告，而是確保我們正確定位業務。重要的是從庫存的角度開始新的一年。我們覺得我們已經實現了這個目標。我們希望在可自由支配類別的庫存購買中適當謹慎地傾斜，如果情況好轉，我們可以靈活地做出反應，但我們認為這對於我們目前看到的波動性是謹慎的。

All right. Looks like we've got time for one more question. I see a paddle up in the back.

好的。看來我們還有時間再問一個問題。我看到後面有一個槳。

Great. Pressure is on here. Peter Benedict at Baird. I guess first question would be on gross margin, down a little more than 500 basis points since 2019. Assuming mix doesn't get any better the next couple of years, just curious, Michael, how you think about the recapture of a portion of that? Where are the opportunities there? What would you think? Again, without mix getting dramatically better.

偉大的。壓力就在這裡。貝爾德的彼得本尼迪克特。我想第一個問題是關於毛利率，自 2019 年以來下降了 500 多個基點。假設未來幾年組合沒有任何改善，只是好奇，邁克爾，你如何看待重新奪回一部分那？那裡的機會在哪裡？你會怎麼想？同樣，沒有混音會變得更好。

And then my second question would just be, in the event that sales this year end up tougher than expected, your confidence in your ability to deliver still that $1 billion of improvement in EBIT, how much flexibility are you thinking on that front?

然後我的第二個問題是，如果今年的銷售結果比預期的更艱難，您對自己實現 10 億美元 EBIT 改善的能力有信心，您在這方面考慮了多少靈活性？

Yes. Maybe I'll do those in reverse. The wide range of guidance that we gave today is reflective of the scenarios that we envision right now. And so we feel good about the line we've drawn in the sand with that guidance now and we'll get a lot smarter together as the year plays out.

是的。也許我會反過來做。我們今天提供的範圍廣泛的指導反映了我們現在設想的情景。因此，我們對現在根據該指導在沙子上劃定的界限感到滿意，隨著這一年的結束，我們將變得更加聰明。

When it comes to margin opportunities, we've talked about a lot of them already, but maybe one I would add to the list, just as a for example, is to link some of what Christina talked about with Target Circle and how valuable it is for us to be able to interact with our guests in a more individualized way. And that translates to good news on the top line, and we can make the right offer or the right message show up for the right guest at the right time.

談到利潤機會，我們已經討論了很多，但也許我會添加到列表中，例如，將克里斯蒂娜談到的一些與 Target Circle 以及它的價值聯繫起來是為了讓我們能夠以更加個性化的方式與客人互動。這轉化為最重要的好消息，我們可以在正確的時間為正確的客人提供正確的報價或正確的信息。

It should also translate to efficiency on our markdowns as we get more efficient with personalized promotions. We've learned over time that a personalized promotion has a higher return than a mass promotion. And so Circle gives us the opportunity to do even more of that better in the years to come.

隨著我們通過個性化促銷變得更有效率，它還應該轉化為我們降價促銷的效率。隨著時間的推移，我們了解到個性化促銷比大規模促銷具有更高的回報。因此，Circle 讓我們有機會在未來幾年做得更好。

And so there's a lot of macro puts and takes, no doubt, as we unpack margin in the years to come, but there's also some important things that we're driving within the business that you know.

因此，毫無疑問，隨著我們在未來幾年打開利潤率，有很多宏觀的投入和投入，但也有一些我們在業務中推動的重要事情，你知道。

Right. So with that, I want to thank all of you for joining us today. I know we'll see many of you throughout the year, and I hope to see all of you back here at the Time Center next year. So thanks for joining us. Get home safe.

正確的。因此，我要感謝大家今天加入我們。我知道我們全年都會見到你們中的許多人，我希望明年能在時代中心再次見到你們。感謝您加入我們。安全回家。