目標百貨 (TGT) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Target Corporation First Quarter Earnings Release Conference Call. (Operator Instructions) As a reminder, this conference is being recorded Wednesday, May 17, 2023.

女士們，先生們，謝謝你們的支持。歡迎參加 Target Corporation 第一季度收益發布電話會議。 （操作員說明）提醒一下，本次會議將於 2023 年 5 月 17 日星期三錄製。

I would now like to turn the conference over to Mr. John Hulbert, Vice President, Investor Relations. Please go ahead, sir.

我現在想將會議轉交給投資者關係副總裁 John Hulbert 先生。請繼續，先生。

Good morning, everyone, and thank you for joining us on our first quarter 2023 earnings conference call. On the line with me today are Brian Cornell, Chair and Chief Executive Officer; Christina Hennington, Chief Growth Officer; John Mulligan, Chief Operating Officer; and Michael Fiddelke, Chief Financial Officer. In a few minutes, Brian, Christina, John and Michael will provide their perspective on our first quarter performance, along with our outlook and priorities for the second quarter and beyond. Following their remarks, we'll open the phone lines for a question-and-answer session. This morning, we're joined on this conference call by investors and others who are listening to our comments via webcast. Following the call, Michael and I will be available to answer your follow-up questions.

大家早上好，感謝您加入我們的 2023 年第一季度收益電話會議。今天和我一起在線的是董事長兼首席執行官布賴恩康奈爾 (Brian Cornell)；首席增長官 Christina Hennington；首席運營官 John Mulligan；和首席財務官 Michael Fiddelke。幾分鐘後，布賴恩、克里斯蒂娜、約翰和邁克爾將提供他們對我們第一季度業績的看法，以及我們對第二季度及以後的前景和優先事項。在他們發言後，我們將打開電話線進行問答環節。今天上午，投資者和其他通過網絡廣播收聽我們評論的人加入了我們的電話會議。通話結束後，邁克爾和我將可以回答您的後續問題。

And finally, as a reminder, any forward-looking statements that we make this morning are subject to risks and uncertainties, including those described in this morning's press release and our most recently filed 10-K. Also in these remarks, we refer to non-GAAP financial measures, including adjusted earnings per share. Reconciliations of all non-GAAP numbers to the most directly comparable GAAP number are included in this morning's press release, which is posted on our Investor Relations website.

最後，提醒一下，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，包括今天早上的新聞稿和我們最近提交的 10-K 中描述的那些。在這些評論中，我們還提到了非 GAAP 財務指標，包括調整後的每股收益。所有非 GAAP 數字與最直接可比的 GAAP 數字的對賬包含在今天上午的新聞稿中，該新聞稿發佈在我們的投資者關係網站上。

With that, I'll turn it over to Brian for his thoughts on the first quarter and his priorities for the second quarter and remainder of the year. Brian?

有了這個，我將把它交給布賴恩，聽取他對第一季度的想法以及他對第二季度和今年剩餘時間的優先事項。布萊恩？

Thanks, John, and good morning, everyone. In the first quarter, our team's discipline and dedication to staying in step with our guests, drove results that met or exceeded the expectations we set at our financial community meeting back in February. Q1 total sales increased 0.5%, reflecting flat comparable sales at the midpoint of our guidance range, combined with the benefit of sales in new locations.

謝謝，約翰，大家早上好。在第一季度，我們團隊的紀律和與客人保持同步的奉獻精神推動的結果達到或超過了我們在 2 月份的金融社區會議上設定的預期。第一季度總銷售額增長 0.5%，反映了我們指導範圍中點的持平可比銷售額，以及新地點銷售的好處。

Profitability for the quarter was ahead of expectations. We came into the year clear-eyed about what consumers are facing with persistent inflation and rising interest rates. And we were determined to build on the trust our guests have had in target by unifying as a team to deliver affordable joy each and every day as consumers and businesses navigate, a third straight year of dynamic challenges. We knew this year would demand agility and teamwork and the ability to flex across our multi-category portfolio as we emphasize the categories our guests need most now. Well, our team did all of that in Q1, taking other step forward on our long-term growth trajectory. I might point to 3 unbroken years of traffic growth as a proof point.

該季度的盈利能力超出預期。進入這一年，我們清楚地看到消費者正面臨著持續的通貨膨脹和不斷上升的利率。我們決心建立在客人對目標的信任的基礎上，通過團結成一個團隊，在消費者和企業導航的過程中每天提供負擔得起的快樂，這是連續第三年充滿活力的挑戰。我們知道今年將需要敏捷性和團隊合作以及在我們的多類別產品組合中靈活調整的能力，因為我們強調客人現在最需要的類別。好吧，我們的團隊在第一季度完成了所有這些工作，在我們的長期增長軌跡上又向前邁進了一步。我可能會指出 3 年不間斷的流量增長作為證明點。

In the first quarter, comparable traffic grew 0.9%, even as consumers were becoming more cautious in their overall shopping behavior. That's a healthy indication of the trust, loyalty and strategic relevance we've created, especially given how much and how frequently consumers and the world circumstances have changed over those 12 straight quarters of traffic growth. Very few others can point to anything like that. This growth in guest engagement is the product of deliberate investments we've been making for many years. In all we do, we put the guests at the center, listening carefully to them and finding innovative ways to make their lives easier, more convenient and more joyful.

第一季度，可比流量增長了 0.9%，儘管消費者在整體購物行為中變得更加謹慎。這是我們建立的信任、忠誠度和戰略相關性的健康指標，特別是考慮到消費者和世界環境在這連續 12 個季度的流量增長中發生了多少變化和變化頻率。很少有人能指出類似的事情。客人參與度的增長是我們多年來進行的有意投資的結果。在我們所做的一切中，我們以客人為中心，認真傾聽他們的意見，並尋找創新的方式讓他們的生活更輕鬆、更方便、更快樂。

And here again, both the balance of our multi-category portfolio and the flexibility of our stores as hub model are helping us stay in step with our guests. The mix of in-store shopping has been growing for well over a year now as consumers have become increasingly comfortable in public places. This has led them to choose more in-store visits causing in-store sales growth to outpace digital in the first quarter, both this year and a year ago.

在這裡，我們多類別產品組合的平衡和我們商店作為樞紐模式的靈活性再次幫助我們與客人保持同步。一年多來，隨著消費者在公共場所越來越舒適，店內購物的組合一直在增長。這導致他們選擇更多的店內訪問，導致店內銷售增長在第一季度超過數字，無論是今年還是一年前。

Notably, even within the digital channel, our same-day services, which rely entirely on our stores expanded more than 5% during the quarter. As usual, this increase was led by our Drive-Up service. We saw growth in the high single digits as more and more of our guests embrace the speed, convenience and reliability it provides. In total for the quarter, more than 97% of our sales were fulfilled by our stores.

值得注意的是，即使在數字渠道中，我們完全依賴門店的當日送達服務在本季度也增長了 5% 以上。與往常一樣，這一增長是由我們的免下車服務帶動的。隨著越來越多的客人接受它提供的速度、便利和可靠性，我們看到了高個位數的增長。總的來說，本季度我們 97% 以上的銷售額是由我們的商店完成的。

As it did throughout last year, pressure from inflation and rising interest rates affected the mix of retail spending in Q1, with a further softening in discretionary categories in the March and April time frame. This coincided with the deterioration in consumer confidence, reflecting recent events such as the banking crisis that emerged in March. These continued signs of caution among consumers have reinforced why we entered this year with a conservative inventory position.

與去年全年一樣，通脹和利率上升的壓力影響了第一季度的零售支出組合，3 月和 4 月期間可自由支配類別進一步走軟。這與消費者信心的惡化同時發生，反映了最近發生的事件，例如 3 月份出現的銀行業危機。這些消費者持續保持謹慎的跡象強化了我們今年進入保守庫存狀況的原因。

And as Michael will cover in more detail, we maintain that cautious stance throughout the first quarter and feel good about our current positioning in light of the trends we've been seeing. But as Christina will highlight in a few minutes, our cautious posture has not reduced our commitment to offering fresh, on-trend merchandise throughout the year. We know that newness is a critical element of what our guests expect when they shop with us. And even if they manage their household budgets and make disciplined buying choices, our guests continue to respond when we offer the right combination of newness, trend right fashion and affordability. That's what we mean when we talk about affordable joy. It's something that's core to our brand and a key differentiator in the marketplace.

正如邁克爾將更詳細地介紹的那樣，我們在整個第一季度都保持謹慎態度，並且根據我們所看到的趨勢對我們目前的定位感到滿意。但正如克里斯蒂娜將在幾分鐘後強調的那樣，我們的謹慎態度並沒有減少我們全年提供新鮮、流行商品的承諾。我們知道，新奇是客人在我們這裡購物時所期望的一個關鍵因素。即使他們管理好他們的家庭預算並做出有紀律的購買選擇，當我們提供新穎、時尚和負擔得起的正確組合時，我們的客人也會繼續響應。這就是我們談論負擔得起的快樂時的意思。這是我們品牌的核心，也是市場上的關鍵差異化因素。

Beyond macroeconomic challenges, we continue to contend with significant headwinds caused by inventory shrink, building on a worsening trend that emerged last year. While shrink can be driven by multiple factors, theft and organized retail crime are increasingly urgent issues, impacting the team and our guests and other retailers. The problem affects all of us, limiting product availability, creating a less convenient shopping experience and putting our team and guests in harm's way. The unfortunate fact is violent incidents are increasing at our stores and across the entire retail industry. And when products are stolen, simply put, they're no longer available for our guests who depend on them and left unchecked, theft and organized retail crime to grade the communities we call home.

除了宏觀經濟挑戰之外，我們繼續應對庫存縮減造成的重大不利因素，這是基於去年出現的惡化趨勢。雖然收縮可能由多種因素驅動，但盜竊和有組織的零售犯罪是越來越緊迫的問題，影響著我們的團隊、我們的客人和其他零售商。這個問題影響到我們所有人，限制了產品的可用性，造成不太方便的購物體驗，並使我們的團隊和客人處於危險之中。不幸的是，我們商店和整個零售行業的暴力事件正在增加。當產品被盜時，簡單地說，我們的客人將無法再使用這些產品，而這些客人依賴它們，並且放任自流、盜竊和有組織的零售犯罪給我們稱之為家的社區評分。

As we work to address the problem, the safety of our guests and our team members will always be our primary concern. As a result, we are engaged in a variety of mitigation efforts, which began with significant resource investments to protect our team and our guests. In addition, we're installing pictures to protect merchandise and adjusting our assortment in affected stores.

在我們努力解決問題的過程中，賓客和團隊成員的安全始終是我們的首要關注點。因此，我們正在進行各種緩解措施，首先是投入大量資源來保護我們的團隊和客人。此外，我們正在安裝圖片以保護商品並調整我們在受影響商店的分類。

Beyond safety concerns, worsening shrink rates are putting significant pressure on our financial results. More specifically, based on the results we've seen so far this year, we expect that shrink will reduce our profitability by more than $0.5 billion compared with last year. And while we're doing all we can to address the problem, it's an industry and community issue that can't be solved by a single retailer. That's why we're actively collaborating with legislators, law enforcement and retail industry partners to advocate for public policy solutions to combat organized retail crime. As we communicate with those partners, we emphasize that we're focused on keeping our stores open in the markets where problems are occurring.

除了安全問題之外，不斷惡化的收縮率也給我們的財務業績帶來了巨大壓力。更具體地說，根據我們今年迄今為止看到的結果，我們預計與去年相比，縮水將使我們的盈利能力減少超過 5 億美元。雖然我們正在竭盡全力解決這個問題，但這是一個行業和社區問題，無法由一家零售商解決。這就是為什麼我們積極與立法者、執法部門和零售業合作夥伴合作，倡導公共政策解決方案來打擊有組織的零售犯罪。當我們與這些合作夥伴溝通時，我們強調我們的重點是在出現問題的市場上保持我們的商店開放。

Our stores create jobs, serve local shoppers and act as critical hubs in communities across the country and we'll continue to do everything in our power to keep our doors open. At the same time, we'll be closely monitoring the safety of our team and guests as well as the financial impact to our business as we determine the right path forward at Target.

我們的商店創造就業機會，為當地購物者提供服務，並充當全國各地社區的重要樞紐，我們將繼續竭盡全力讓我們的大門敞開。與此同時，在我們確定 Target 的正確前進道路時，我們將密切關注我們團隊和客人的安全以及對我們業務的財務影響。

Even as we navigate through multiple short-term challenges, we remain focused on making Target stronger and better for all our stakeholders over the long term. Right now, our team is rallying around of focus on retail fundamentals to ensure we're staying reliable and affordable for our guests and that we're translating key points of difference like our physical proximity to the vast majority of U.S. shoppers and our emphasis on a joyful guest experience into unmatched ease and inspiration for our guests as we continue to grow and scale.

即使我們應對了多項短期挑戰，我們仍然專注於讓 Target 更強大、更好地為我們的所有利益相關者提供長期服務。目前，我們的團隊正在集中精力關注零售基本面，以確保我們為客人保持可靠和負擔得起的價格，並且我們正在轉化關鍵差異點，例如我們與絕大多數美國購物者的實際距離以及我們對隨著我們不斷發展壯大，為我們的客人帶來無與倫比的輕鬆和靈感的愉快的客人體驗。

We're also intently focused on creating easier and more efficient ways for our team to deliver on our strategy and fuel our ongoing growth ambitions.

我們還專注於為我們的團隊創造更簡單、更有效的方式來實現我們的戰略並推動我們持續的增長目標。

Underpinning all of this is our continued commitment to disciplined, return-based investments that will benefit stakeholders both today and well into the future.

所有這一切的基礎是我們對有紀律的、基於回報的投資的持續承諾，這些投資將使利益相關者在今天和未來受益。

This goes well beyond our physical capital. As John will outline, we'll continue to make important investments in our team. This begins, of course, by building on the robust investments in wages and benefits we've made in recent years. Because of those past investments, today, we offer starting a wage range of $15 to $24 across the country. We significantly enhanced the health and wellness benefits we provide and tens of thousands of our team members are enrolled in our industry-leading debt-free college educational program. But our efforts extend well beyond the wages we pay and the benefits we offer. We are committed to building a culture of growth, providing our team with strong foundational learning, enhancing their skills and providing them to excel not just at their current role, but their next role on the Target team. as they continue to build a rewarding career with us.

這遠遠超出了我們的物質資本。正如約翰將概述的那樣，我們將繼續對我們的團隊進行重要投資。當然，這始於我們近年來在工資和福利方面的強勁投資。由於那些過去的投資，今天，我們在全國范圍內提供 15 美元至 24 美元的起薪範圍。我們顯著增強了我們提供的健康福利，數以萬計的團隊成員參加了我們行業領先的無債務大學教育計劃。但我們的努力遠遠超出了我們支付的工資和我們提供的福利。我們致力於建立一種成長型文化，為我們的團隊提供強大的基礎學習，提高他們的技能，並讓他們不僅在當前角色上表現出色，而且在 Target 團隊的下一個角色上表現出色。因為他們繼續與我們一起建立一個有價值的職業。

I want to close my remarks by thanking our team. Nothing is more energizing than the time I spend with them, from visits to our stores and distribution centers across the country to the time I recently spent with our headquarter team in Bangalore, India. Our team is proud to work at Target, and they show that pride through their actions every day, all in support of our guests. I'm proud to work alongside them, and it's a privilege to represent their efforts in venues like these.

我想通過感謝我們的團隊來結束我的發言。從參觀我們在全國各地的商店和配送中心到我最近在印度班加羅爾與我們的總部團隊共度時光，沒有什麼比我與他們共度的時光更令人充滿活力的了。我們的團隊為在 Target 工作而感到自豪，他們通過每天的行動表現出這種自豪感，所有這些都是為了支持我們的客人。我很自豪能和他們一起工作，能在這樣的場所代表他們的努力是我的榮幸。

With that, I'll turn the call over to Christina.

有了這個，我會把電話轉給克里斯蒂娜。

Thanks, Brian, and good morning, everyone. In many ways, the themes of the first quarter operating environment were very similar to what we've outlined in recent quarters. So it likely comes as no surprise that we continue to face elevated volatility and see a reprioritization of spending away from discretionary categories in the face of persistent inflation in groceries and essentials. Despite the near-term challenges facing the retail industry and our business, we remain confident in our ability to generate long-term results, largely driven by the unwavering commitment displayed by the Target team, to our guests, each other and the communities where we operate. Guests continue to place their trust in Target, choosing to shop with us more and more often, at a time when consumers are hyper-focused on managing their budget.

謝謝，布萊恩，大家早上好。在許多方面，第一季度運營環境的主題與我們在最近幾個季度概述的主題非常相似。因此，面對雜貨和必需品的持續通脹，我們繼續面臨更高的波動性，並看到支出的優先順序從可自由支配的類別中重新調整，這可能也就不足為奇了。儘管零售業和我們的業務近期面臨挑戰，但我們對取得長期成果的能力充滿信心，這在很大程度上得益於 Target 團隊、對我們的客人、彼此以及我們所在的社區所表現出的堅定承諾操作。在消費者高度關注管理預算的時候，客人繼續信任 Target，越來越多地選擇在我們這裡購物。

As Brian mentioned, American consumers continue to face difficult trade-off decisions as they juggle the wants and needs of their families. Consumer saving rates are down, and while inflation rates are finally declining, so is consumer confidence. The fear of a looming recession weighs heavily on many American families and though discretionary spending remains soft, our guests are still looking to sprinkle some affordable joy into their regular shopping at Target.

正如布賴恩所提到的，美國消費者在兼顧家人的需求時繼續面臨艱難的權衡決定。消費者儲蓄率下降，而通貨膨脹率最終下降，消費者信心也隨之下降。對迫在眉睫的經濟衰退的恐懼給許多美國家庭帶來了沉重的負擔，儘管可自由支配的支出仍然疲軟，但我們的客人仍然希望在 Target 的日常購物中享受一些負擔得起的快樂。

In the first quarter, comparable sales were flat to last year, which was squarely at the center of our expectations. As you heard from Brian, we continue to benefit from traffic and sales growth in our frequency categories; Food & Beverage, Household Essentials and Beauty, which helped to offset softer year-on-year sales in our more discretionary home, apparel and hardlines categories. Within the quarter, total sales were strongest in February, began decelerating in March and softened further near the end of April.

第一季度，可比銷售額與去年持平，這完全符合我們的預期。正如您從 Brian 那裡聽說的那樣，我們繼續受益於頻率類別的流量和銷售增長；食品和飲料、家居必需品和美容產品，這有助於抵消我們更多可自由支配的家居、服裝和硬線產品類別的同比銷售額疲軟。在本季度內，總銷售額在 2 月最為強勁，在 3 月開始減速，並在接近 4 月底時進一步走軟。

Q1 performance was led by Beauty, which delivered comp growth in the mid-teens in light of continued strength in both Core Beauty and Ulta Beauty at Target assortment. Food & Beverage grew in the high single digits, reflecting broad-based strength across the category. Household Essentials delivered low single-digit growth, reflecting notable strength in both the health and pet care categories. Apparel, home and hard lines all experienced sales declines from the mid-single digits to low double digits as guests continue to pull back on discretionary purchases. Notably, guests are shifting to shop more just in time in these categories as they wait until the last moment before key events to invest in new decor or wardrobe refreshes.

第一季度業績由美妝領銜，鑑於 Core Beauty 和 Ulta Beauty 在 Target 分類中的持續強勁表現，美妝產品實現了十幾歲中期的業績增長。食品和飲料以高個位數增長，反映了該類別的廣泛實力。家庭必需品實現了較低的個位數增長，反映了健康和寵物護理類別的顯著實力。由於客人繼續減少非必需品的購買，服裝、家居和硬線產品的銷售額都從中等個位數下降到低兩位數。值得注意的是，客人們正轉向在這些類別中及時購物，因為他們等到重要活動前的最後一刻才投資購買新裝飾或更新衣櫥。

As we've been noting for some time, despite overall softness in discretionary categories, seasonal moments and newness in apparel, home and hard lines continue to be bright spots, prompting great responses from our guests. Within the first quarter, we had strong Valentine season and Easter holiday across multiple assortments, ranging from food and hosting solutions to decor and giftables. New offerings in apparel, including the latest wave of our designer dress collection and new sets in women's athleisure have seen incredible responses from guests. And this year's major theatrical releases such as Super Mario Brothers and the upcoming Disney film, The Little Mermaid, are driving outsized share gains and sales momentum. These examples demonstrate that when our assortments are fresh, seasonally relevant and affordable, that's a winning formula to engage and delight our guests.

正如我們一段時間以來一直注意到的那樣，儘管非必需品類別總體疲軟，但服裝、家居和硬線產品的季節性時刻和新穎性仍然是亮點，引起了客人的熱烈反響。在第一季度，我們在多個品類中度過了旺盛的情人節和復活節假期，從食品和託管解決方案到裝飾品和禮品。服裝的新產品，包括我們最新一波的設計師連衣裙系列和新的女式運動休閒套裝，都得到了客人的熱烈反響。今年的主要影院上映，如《超級馬里奧兄弟》和即將上映的迪士尼電影《小美人魚》，正在推動巨大的市場份額增長和銷售勢頭。這些示例表明，當我們的產品種類新鮮、季節性相關且價格適中時，這就是吸引和取悅客人的製勝法寶。

Given that consumers are cautious when buying discretionary items, we are being more declarative than ever about affordable joy and leaning into value messaging across all our media channels, in-store signing, merchandise displays and through our digital platforms. With a balance of strong opening price points, timely and relevant promotions, as well as a mix of competitively priced national brands and high-quality and affordable owned brand offerings, we have an opportunity to boldly demonstrate the power of Target's value proposition to our guests.

鑑於消費者在購買可自由支配的商品時持謹慎態度，我們比以往任何時候都更加強調負擔得起的快樂，並傾向於通過我們所有的媒體渠道、店內簽名、商品展示和我們的數字平台傳遞價值信息。憑藉強勁的開盤價、及時和相關的促銷活動以及價格具有競爭力的民族品牌和優質且價格合理的自有品牌產品的平衡，我們有機會向我們的客人大膽展示 Target 價值主張的力量.

As I've shared in prior calls, this is where the power of Roundel and Target Circle really shine through, creating collective value for our guests and for Target.

正如我在之前的電話中所分享的那樣，這正是 Roundel 和 Target Circle 真正發揮作用的地方，它們為我們的客人和 Target 創造了集體價值。

With consumers more price conscious and focused on promotions right now, we know they're willing to search for a deal, but appreciate when we make the hunt easy for them. By utilizing our rich guest insights, we are best able to match the right product to the right guests with the right promotion. This is why we take such a differentiated approach with Roundel, thoughtfully and selectively connecting vendors and their products to our guests. Roundel's interconnection with the broader Target digital ecosystem means we are uniquely positioned to inspire the millions of users of our website, the Target app and other diverse media platforms. This helps vendors find consumers that are most likely to be interested in our products, creates awareness and conversion to new products for our guests through compelling deals and ads and drives top line and bottom line benefit to Target, all with an eye to enhancing the guest experience.

隨著消費者現在對價格更加敏感並專注於促銷活動，我們知道他們願意尋找優惠，但當我們讓他們輕鬆尋找時，我們會很感激。通過利用我們豐富的客戶洞察力，我們能夠最好地將合適的產品與合適的促銷活動匹配給合適的客人。這就是為什麼我們對 Roundel 採取如此差異化的方法，深思熟慮並有選擇地將供應商及其產品與我們的客人聯繫起來。 Roundel 與更廣泛的 Target 數字生態系統的互連意味著我們處於獨特的位置，可以激發我們網站、Target 應用程序和其他多樣化媒體平台的數百萬用戶。這有助於供應商找到最有可能對我們的產品感興趣的消費者，通過引人注目的交易和廣告為我們的客人創造新產品的知名度和轉化率，並為 Target 帶來頂線和底線收益，所有這些都是為了提升客人經驗。

Similarly, we know this personalized touch is why active Target Circle users make 2.5x the trips in Q1 compared to non-Circle guests and spent 3x more. Whether through everyday offers or member exclusive events like Target Circle week in March, we see incredible guest response to Target Circle promotions. Roundel and Target Circle provide opportunities for us to connect with guests in both the short and long term, offering instantly gratifying promotions in the now and a tailored and elevated experience that builds lasting affinity tomorrow and beyond. And beyond promotions and product placements, we know that when guests try our own brand offerings, they love the value and quality they receive, and this leads to repeat purchases.

同樣，我們知道這種個性化的接觸是為什麼活躍的 Target Circle 用戶在第一季度的旅行次數是非 Circle 客人的 2.5 倍，花費是非 Circle 客人的 3 倍。無論是通過日常優惠還是會員專享活動（例如 3 月的 Target Circle 週），我們都看到賓客對 Target Circle 促銷活動的反響令人難以置信。 Roundel 和 Target Circle 為我們提供了在短期和長期內與客人建立聯繫的機會，提供當下令人滿意的即時促銷活動和量身定制的升級體驗，從而在明天及以後建立持久的親和力。除了促銷和產品植入，我們知道，當客人嘗試我們自己的品牌產品時，他們會喜歡他們所獲得的價值和質量，這會導致重複購買。

We also know that simplified, easy to understand, pricing promotion removes friction from the shopping experience, both in stores and online. This explains why our guests are responding to affordable home decor selections where we are expanding our assortment of items priced under $10. It's why we recently launched new swim assortments starting at just $12 and to help our guests get ready for summer celebrations of all kinds are only a Target Sun Squad brand, offers everything needed to be outside this summer with more than 60% of the entire assortment priced under $10 and nearly 90% of the assortment priced under $20.

我們還知道，簡化、易於理解的定價促銷可以消除實體店和網上購物體驗中的摩擦。這解釋了為什麼我們的客人對價格實惠的家居裝飾選擇做出反應，我們正在擴大價格低於 10 美元的商品種類。這就是為什麼我們最近推出了新的游泳系列，起價僅為 12 美元，為了幫助我們的客人為各種夏季慶祝活動做好準備，只有 Target Sun Squad 品牌提供了今年夏天戶外所需的一切，佔整個系列的 60% 以上價格低於 10 美元，近 90% 的商品價格低於 20 美元。

But our comprehensive view of affordability extends beyond compelling price points. In particular, our own brand portfolio offers an unmatched combination of quality and price. For an example, look no further than our $3 billion owned brand, Cat & Jack, featuring on-trend durable and affordable kids clothing. With everyday essentials like $4 T-shirts, $5 leggings, and $8 dresses and jeans, Cat & Jack offers both affordability and style. And because we stand behind not just the price but the quality of these items as well, we guarantee all Cat & Jack apparel for 1 full year with free returns should anything not meet our guest expectations. This is just another example of how we offer comprehensive value for our guests giving them affordable options without skipping on quality.

但我們對可承受性的全面看法超出了令人信服的價格點。特別是，我們自己的品牌組合提供了無與倫比的質量和價格組合。例如，看看我們價值 30 億美元的自有品牌 Cat & Jack，主打時尚耐用且價格實惠的童裝。 Cat & Jack 提供 4 美元的 T 卹、5 美元的緊身褲和 8 美元的連衣裙和牛仔褲等日常必需品，既實惠又時尚。因為我們支持的不僅是價格，還有這些商品的質量，我們保證所有 Cat & Jack 服裝一年內免費退貨，如果有任何不符合我們客人期望的地方。這只是我們如何為客人提供全面價值的另一個例子，在不影響質量的情況下為他們提供負擔得起的選擇。

As we look to the second quarter and beyond, we will continue the steady drumbeat of newness and value all while maintaining a cautious inventory ownership position in our discretionary categories.

展望第二季度及以後，我們將繼續穩步推動新奇和價值，同時在我們的可自由支配類別中保持謹慎的庫存所有權地位。

In terms of seasonal moments and holidays, Target teams are focused on helping our guests celebrate all summer long. Starting last weekend, we kicked things off by celebrating Mother's Day with affordable and inspiring ways to thank the moms in our lives, and we have plans to continue celebrating key summer moments (inaudible) long wrapping up with everything needed to host the perfect Fourth of July Barbecue.

在季節性時刻和假期方面，Target 團隊專注於幫助我們的客人慶祝整個夏天。從上週末開始，我們開始慶祝母親節，以經濟實惠且鼓舞人心的方式感謝我們生活中的媽媽們，我們計劃繼續慶祝關鍵的夏日時刻（聽不清），以舉辦完美的第四次慶祝活動所需的一切結束七月燒烤。

With new summer Food & Beverage offerings, including more than 100 new Good & Gather items to target exclusive pickup offsets for amateurs and pros alike, we are listening closely to our guests and providing the hottest trends across our entire assortment.

憑藉新的夏季食品和飲料產品，包括 100 多種新的 Good & Gather 產品，旨在為業餘愛好者和專業人士等提供獨家取貨補償，我們正在密切傾聽客人的意見，並提供我們整個產品系列中最熱門的趨勢。

In apparel, guests will find vibrant color pallets across our offerings, helping all families celebrate summer and style. Best of all, these apparel items provide amazing value with clear, compelling opening price points.

在服裝方面，客人會在我們的產品中找到充滿活力的色彩托盤，幫助所有家庭慶祝夏天和時尚。最重要的是，這些服裝商品以清晰、引人注目的開盤價提供驚人的價值。

For kids and kids at heart, the summer's roster of exciting movie blockbusters will find their way into multiple assortments ranging from apparel to toys to collectibles, featuring familiar characters from Disney, Marvel, Teenage Mutant Ninja Turtles and more. And because you can never have too much of a good thing, the latest assortment drop from Tabitha Brown just launched a few days ago. Already off to a fabulous start. This collection celebrates the joy that comes from gathering alongside friends and family, recharging in the summer sun and pausing for fun and games. The assortment includes over 60 items ranging from backyard entertaining essentials, games, tableware, outdoor furniture as well as guest favorite food items backed by popular demand.

對於孩子們和童心未泯的孩子們來說，今夏激動人心的電影大片將進入從服裝到玩具再到收藏品的多個類別，其中包括迪士尼、漫威、忍者神龜等熟悉的角色。因為好東西永遠不會嫌多，Tabitha Brown 幾天前剛剛推出了最新的降價組合。已經有了一個美妙的開始。該系列頌揚與朋友和家人相聚、在夏日陽光下充電以及停下來享受樂趣和遊戲所帶來的快樂。該系列包括 60 多種商品，包括後院娛樂必需品、遊戲、餐具、戶外家具以及受大眾需求支持的客人最喜愛的食品。

As we navigate this challenging environment, we will continue to lean into flexibility and focus on retail fundamentals while remaining vigilant in monitoring changing trends with the consumer and the economy. It's only because of our incredible team that we are able to stay nimble, listening for and quickly applying guest feedback into our operations. So our teams in stores, supply chain and headquarters locations around the world. Thank you for sharing your talent and passion and support of our guests. You are truly the best team in retail, and you bring Target's values to life each and every day.

在應對這一充滿挑戰的環境時，我們將繼續保持靈活性並專注於零售基本面，同時保持警惕，密切關註消費者和經濟不斷變化的趨勢。正是因為我們令人難以置信的團隊，我們才能夠保持敏捷，傾聽客人的反饋並將其迅速應用到我們的運營中。所以我們在世界各地的商店、供應鍊和總部的團隊。感謝您分享您的才華和熱情以及對我們客人的支持。你們是真正的零售業最佳團隊，每一天都將 Target 的價值觀帶入生活。

With that, I'll turn the call over to John.

有了這個，我會把電話轉給約翰。

Thanks, Christina. Through all of the rapid and unexpected changes we've experienced over the last 3 years, teams throughout our operations have done an amazing job, maintaining their energy, staying agile and doing everything in their power to serve our guests' ever-changing needs. And today, with 2 years of unusually rapid growth behind us and last year's excess inventory in the rearview mirror, we are focusing this year on training and development for our team with an emphasis firmly centered on retail fundamentals. Our goal is to reinforce the reliability and consistency of our shopping experience as we help our team members to succeed in their current job and build the right skills to prepare for the next one.

謝謝，克里斯蒂娜。在過去 3 年中，我們經歷了所有快速和意想不到的變化，整個運營團隊都做了出色的工作，他們保持活力、保持敏捷並竭盡全力滿足客人不斷變化的需求。今天，隨著我們過去 2 年異常快速的增長和去年的過剩庫存，我們今年的重點是對我們團隊的培訓和發展，重點是零售基本面。我們的目標是加強我們購物體驗的可靠性和一致性，因為我們幫助我們的團隊成員在當前的工作中取得成功，並培養正確的技能為下一份工作做準備。

More specifically, every store this year is engaging in assessments to reinforce consistently strong execution throughout the country and every day of the year. These assessments are centered on the factors most essential to operating great stores and delivering a consistent experience, ranging from staffing and scheduling to inventory management, in-store signing, digital fulfillment, guest and team member safety and the checkout experience.

更具體地說，今年的每家商店都在進行評估，以加強全國各地和一年中每一天的持續強勁執行力。這些評估集中在對經營大型商店和提供一致體驗最重要的因素上，從人員配備和日程安排到庫存管理、店內簽約、數字履行、客人和團隊成員安全以及結賬體驗。

In support of these efforts, we're investing in training and development across every level of our team from entry-level team members to the store leaders. Beyond the reinforcement of everyday best practices, we're preparing our team to support new services including the upcoming rollout of Drive-Up returns and the opening of additional Ulta Beauty at Target locations. In addition, to develop our store supervisors and leaders, we're investing in a cohort-based peer learning model, in which participants engage in classroom experiences, one-on-one coaching and on the job practice. All of this training is designed to help our teams succeed today and build our pipeline of future leaders.

為了支持這些努力，我們正在對從入門級團隊成員到商店領導的各個級別的團隊進行培訓和發展。除了加強日常最佳實踐之外，我們還讓我們的團隊準備好支持新服務，包括即將推出的 Drive-Up 退貨和在 Target 門店開設更多 Ulta Beauty。此外，為了培養我們的商店主管和領導，我們正在投資基於隊列的同伴學習模型，參與者可以參與課堂體驗、一對一輔導和工作實踐。所有這些培訓旨在幫助我們的團隊在今天取得成功，並培養我們未來的領導者。

Of course, a foundational element of our team development effort is our education assistance program called Dream 2B, which enables our U.S.-based part-time and full-time team members to pursue tuition-free undergraduate and associate degrees, certificates and boot camps. This industry-leading program features tuition-free options in more than 250 business aligned programs across more than 40 schools, colleges and universities. Since the rollout of Dream to Be in 2021, tens of thousands of our team members have successfully participated in this program.

當然，我們團隊發展工作的一個基本要素是我們名為 Dream 2B 的教育援助計劃，該計劃使我們在美國的兼職和全職團隊成員能夠獲得免學費的本科和副學士學位、證書和訓練營。這個行業領先的項目在 40 多所學校、學院和大學的 250 多個商業聯合項目中提供免學費選擇。自2021年Dream to Be推出以來，我們已有數万名團隊成員成功參與了該計劃。

As you saw in today's release, we ended the first quarter with a 16% less inventory than a year ago. This decrease reflects our current cautious position in discretionary categories, combined with the impact of excess inventory on last year's balance sheet. Those factors are being partially offset by some purposeful inventory investments. These include investments in support of our frequency categories, in light of the rapid growth we've been seeing and to ensure we're in stock. And I'm happy to say that these investments have been paying off.

正如您在今天的新聞稿中看到的那樣，我們在第一季度結束時的庫存比一年前減少了 16%。這一下降反映了我們目前對可自由支配類別的謹慎立場，以及庫存過剩對去年資產負債表的影響。這些因素正在部分被一些有目的的庫存投資所抵消。鑑於我們看到的快速增長並確保我們有庫存，其中包括支持我們頻率類別的投資。我很高興地說這些投資得到了回報。

In the first quarter, out of stocks of our most important Food & Beverage and Essentials items, we're running at 3-year lows and trending in a favorable direction. In addition to support of our frequency businesses, we're also making strategic inventory investments where we believe we have a long-term market share opportunity, most notably in the upcoming Back-to-School and Back-to-College seasons. As you know, in our supply chain, we're engaged in a multiyear journey to modernize how we replenish inventory in our stores.

在第一季度，我們最重要的食品飲料和必需品缺貨，處於 3 年低點，並朝著有利的方向發展。除了支持我們的頻率業務外，我們還在進行戰略庫存投資，我們認為我們有長期的市場份額機會，尤其是在即將到來的返校季和返校季。如您所知，在我們的供應鏈中，我們正在進行多年的旅程，以實現我們在商店中補充庫存的方式的現代化。

When I moved into this position 8 years ago, store inventory replenishment was a standardized inflexible process. That placed a heavy burden on our store team members. With this modernization effort, our primary goal is to reduce those labor demands on our stores. We achieved that result by moving work upstream to a distribution center, where we can apply the appropriate processes, technology, tools and automation to accomplish the work at scale. This results in higher labor efficiency for the company overall while allowing our store team members to spend more time in the front of our stores with our guests.

當我 8 年前進入這個職位時，商店庫存補貨是一個標準化的僵化過程。這給我們的商店團隊成員帶來了沉重的負擔。通過這項現代化工作，我們的主要目標是減少對我們商店的勞動力需求。我們通過將工作上游轉移到配送中心來實現這一結果，在那裡我們可以應用適當的流程、技術、工具和自動化來大規模完成工作。這提高了公司整體的勞動效率，同時讓我們的門店團隊成員有更多時間在門店門口與客人交流。

In the upstream distribution centers we've opened over the last 2 years, we've implemented technology and capabilities that improve how product is sorted and loaded on to trailers headed for our stores. These improvements reduce the necessary time for the store team to unload the trailer and for them to move the inventory to where it's needed in the store. In these new buildings, we've also invested to automate the sortation and packing of break pack items, facilitating the shipment of quantities smaller than a full case pack. This automated process makes the shipment easier to unload, reduces sorting time for the store team and lowers the amount of inventory in our store backrooms.

在我們過去 2 年開設的上游配送中心，我們已經實施了技術和功能來改進產品的分類和裝載到前往我們商店的拖車上的方式。這些改進減少了商店團隊卸載拖車和將庫存移動到商店需要的地方所需的時間。在這些新建築中，我們還投資了分揀和包裝拆包物品的自動化，以促進小於整箱包裝的數量的運輸。這個自動化過程使貨物更容易卸載，減少了商店團隊的分揀時間，並減少了我們商店後台的庫存量。

Outside of our new facilities, we're working to roll out similar capabilities to our legacy distribution centers. In addition, throughout our legacy network, we continue to focus on reducing the overall cost of store replenishment by implementing automation, along with other improvements. For example, we've been testing ways to improve the lead time and accuracy of our deliveries from several of our existing buildings and have seen an increase in speed and lower out-of-stocks in stores service from these facilities.

在我們的新設施之外，我們正在努力推出與我們的傳統配送中心類似的功能。此外，在我們的傳統網絡中，我們繼續專注於通過實施自動化以及其他改進來降低商店補貨的總體成本。例如，我們一直在測試改善我們現有幾座建築物的交貨時間和準確性的方法，並且已經看到這些設施的速度提高和商店服務缺貨情況的減少。

But I want to stress, automation is only 1 way to deliver value to our business. Consider our sortation centers, which are positioned downstream from our stores to provide speed and efficiency in support of last mile delivery. Our sort centers are not highly automated. Instead, they use technology and sophisticated process logic to sort packages and provide a faster and better guest experience at a significantly lower cost. In fact, it's because of the relative simplicity in the design of these buildings and the efforts of an incredibly innovative and energetic team that we've been able to scale the number of these buildings so quickly from 3 a year ago to 9 today. And an expected total of 15 or more in 2026.

但我想強調，自動化只是為我們的業務創造價值的一種方式。考慮一下我們的分揀中心，它們位於我們商店的下游，以提供速度和效率來支持最後一英里交付。我們的分揀中心不是高度自動化的。相反，他們使用技術和復雜的流程邏輯來對包裹進行分類，並以更低的成本提供更快更好的客人體驗。事實上，正是因為這些建築物的設計相對簡單，以及一個令人難以置信的創新和充滿活力的團隊的努力，我們才能夠如此迅速地將這些建築物的數量從一年前的 3 座增加到今天的 9 座。預計到 2026 年總數將達到 15 個或更多。

Beyond rapidly scaling the number of sort centers, our team continues to innovate around the existing processes in those buildings, finding ways to deliver additional value to the business. One example is a new facility that we opened earlier this month in Smyrna, Georgia. This new facility, which costs very little to open, serves as an extension of the existing sortation center in the Atlanta market extending the reach of our next-day delivery capability.

除了迅速擴大分揀中心的數量之外，我們的團隊還繼續圍繞這些建築中的現有流程進行創新，尋找為企業提供額外價值的方法。一個例子是我們本月早些時候在佐治亞州士麥那開設的一家新工廠。這個新設施的開放成本非常低，作為亞特蘭大市場現有分揀中心的延伸，擴大了我們次日送達能力的範圍。

With this new facility, online orders that have been packed by Atlanta area stores continue to flow to the sortation center, where they're sorted and delivered via our national carrier partners or a ship driver. However, a portion of local orders falling outside the sortation centers last mile delivery area can now be transferred to Smyrna extension, where ship drivers can pick them up and serve additional neighborhoods.

有了這個新設施，由亞特蘭大地區商店打包的在線訂單將繼續流向分揀中心，在那裡它們將通過我們的國家承運商合作夥伴或船舶司機進行分揀和交付。但是，現在可以將部分落在分揀中心最後一英里交付區域之外的本地訂單轉移到士麥那延伸區，輪船司機可以在那裡接貨並為其他社區提供服務。

With the opening of this extension facility, our next-day delivery capability is now reaching more than 3 million guests in the Atlanta market. As we mentioned at our recent financial community meeting in our Dallas and Minneapolis sortation centers, Target and Shipt have been testing the development of high-capacity van routes that enable us to bring last-mile delivery to a larger number of guests. In addition, over the past year, across all of our markets served by our sortation centers, we have shifted more routes to larger passenger vehicles and early results have been positive.

隨著該擴展設施的啟用，我們的次日送達能力現已覆蓋亞特蘭大市場超過 300 萬名客人。正如我們最近在達拉斯和明尼阿波利斯分揀中心舉行的金融社區會議上提到的那樣，Target 和 Shipt 一直在測試大容量貨車路線的開發，使我們能夠為更多客人提供最後一英里的送貨服務。此外，在過去的一年裡，在我們的分揀中心服務的所有市場中，我們將更多的路線轉移到更大的客運車輛上，早期的結果是積極的。

Compared with routes previously served by sedans, SUVs and minivans can deliver more than double the number of packages per route while high-capacity vans can service nearly 5x as many packages. And beyond capacity, the use of larger vehicles enables further route optimization, increasing the number of packages that can be delivered per hour.

與以前由轎車服務的路線相比，SUV 和小型貨車每條路線可運送的包裹數量增加一倍以上，而大容量貨車可以運送近 5 倍的包裹。除了容量之外，使用更大的車輛還可以進一步優化路線，增加每小時可以運送的包裹數量。

With these changes, in the first quarter, approximately 65% of our last mile deliveries serviced by Shipt were made with larger vehicles compared with 0 a year ago. This resulted in meaningful cost savings for our last mile delivery program overall. Based on the success of these efforts, we're developing plans to begin testing high-capacity vans at a larger scale. In addition, we're developing a standardized faster way to load those vans, enabling package containerization and easy identification of the correct packages at delivery.

通過這些變化，在第一季度，Shipt 服務的最後一英里交付中約有 65% 是使用大型車輛進行的，而一年前為 0。這為我們的最後一英里交付計劃整體節省了可觀的成本。基於這些努力的成功，我們正在製定計劃，開始更大規模地測試大容量貨車。此外，我們正在開發一種標準化的更快方式來裝載這些貨車，從而實現包裹集裝箱化並在交付時輕鬆識別正確的包裹。

In addition to simplifying the load process for the drivers, this new process will enable us to safely move a larger number of ship drivers in and out of our sort centers in a given amount of time, expanding our last mile delivery capacity in these markets. While there are many different ways our team is working to gain efficiencies and deliver value to the business, all of our projects have some things in common. First and foremost, they're all designed and implemented with a focus on our guests and continuing to build their engagement with Target.

除了簡化司機的裝載流程外，這一新流程將使我們能夠在給定的時間內安全地將更多的船舶司機進出我們的分揀中心，從而擴大我們在這些市場的最後一英里交付能力。雖然我們的團隊通過許多不同的方式來提高效率並為企業創造價值，但我們所有的項目都有一些共同點。首先也是最重要的是，它們的設計和實施都以我們的客人為中心，並繼續建立他們與 Target 的互動。

In keeping with that guest focus, we design processes and deploy technology and automation as a way to highlight the human element in our business rather than minimizing it. It's an essential element of our purpose to help all families discover the joy of everyday life. As I get ready to close, I want to pause and thank our team for bringing that purpose to life every day for both our guests and for your fellow team members. Here are the reason that guests trust and love our brand and why they choose to shop at Target.

為了保持以客人為中心，我們設計流程並部署技術和自動化，以此來突出我們業務中的人為因素，而不是將其最小化。幫助所有家庭發現日常生活的樂趣是我們宗旨的基本要素。當我準備結束時，我想停下來感謝我們的團隊每天為我們的客人和您的團隊成員實現這一目標。以下是客人信任和喜愛我們品牌的原因以及他們選擇在 Target 購物的原因。

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

有了這個，我會把它交給邁克爾。

Thanks, John. In many ways, the environment today feels completely different than 3 years ago when the pandemic was just beginning and no one knew what to expect, but today even as the pandemic feels further and further behind us, we continue to face elevated macro uncertainty and volatility as the world continues to transition toward a new normal. From a macro perspective, inflation remains high and stubbornly persistent, having recently peaked at decades high levels. To control this inflation, the Federal Reserve has been raising interest rates at an unprecedented pace. But for now, despite the building economic pressure from both inflation and higher interest rates, the U.S. unemployment rate is lower today than it's been in 50 years. And as Christina mentioned, consumer spending patterns continue to evolve, putting significant pressure on our discretionary categories.

謝謝，約翰。在許多方面，今天的環境感覺與 3 年前大流行剛剛開始並且沒有人知道會發生什麼時完全不同，但今天即使大流行感覺越來越遠，我們繼續面臨更高的宏觀不確定性和波動性隨著世界繼續向新常態過渡。從宏觀角度來看，通脹仍然居高不下，並且頑固地持續存在，最近達到了數十年的高位。為了控制這種通貨膨脹，美聯儲一直在以前所未有的速度提高利率。但就目前而言，儘管通貨膨脹和利率上升給經濟帶來了壓力，但美國今天的失業率低於 50 年來的最低水平。正如克里斯蒂娜提到的那樣，消費者支出模式不斷發展，給我們的可自由支配類別帶來巨大壓力。

While I'm guessing we're all looking forward to the day when economic conditions begin to stabilize and normalize, I'm pleased that today, even in the face of all these challenges, we're continuing to see deeper engagement from our guests. That's most visible on our traffic, which grew just under 1% in Q1 and has now grown for 12 consecutive quarters. In fact, since 2019, prior to the pandemic, first quarter total sales have increased more than 43%. The vast majority of that growth is the result of an increase in sales per square foot over that time of which a significant portion has been driven by traffic.

雖然我猜我們都期待著經濟狀況開始穩定和正常化的那一天，但我很高興今天，即使面對所有這些挑戰，我們繼續看到客人的更深入參與.這在我們的流量上最為明顯，第一季度流量增長略低於 1%，現在已連續 12 個季度增長。事實上，自 2019 年以來，在大流行之前，第一季度的總銷售額增長了 43% 以上。這一增長的絕大部分是由於當時每平方英尺銷售額的增長，其中很大一部分是由交通推動的。

Total sales grew 0.5% in the first quarter, reflecting flat comparable sales, combined with the contribution from new locations. Total revenue growth of 0.6% reflected sales growth, combined with double-digit growth on the other revenue line, led by our Roundel ad business. As Brian mentioned, sales trends softened over the course of the first quarter. More specifically, we began the quarter with positive comp growth in the month of February and then saw the trends soften into low single-digit declines by the end of April and so far into May.

第一季度總銷售額增長 0.5%，反映了可比銷售額持平，以及新地點的貢獻。總收入增長 0.6% 反映了銷售增長，以及由我們的 Roundel 廣告業務引領的其他收入線的兩位數增長。正如 Brian 所提到的，第一季度的銷售趨勢有所緩和。更具體地說，我們在本季度開始時在 2 月份實現了正增長，然後看到趨勢在 4 月底和 5 月份之前轉為低個位數下降。

Our first quarter gross margin rate of 26.3% was about 60 basis points higher than a year ago. Among the drivers, we saw more than a percentage point of favorability in merchandising, driven primarily by a reduction in freight and transportation costs, along with the benefit of retail pricing and a lower clearance markdown rate as we compared over last year's inventory actions. We also saw a small gross margin rate benefit from lower digital volume and a more favorable mix of lower cost same-day fulfillment.

我們第一季度的毛利率為 26.3%，比一年前高出約 60 個基點。在驅動因素中，我們看到商品銷售的受歡迎程度超過一個百分點，這主要是由於運費和運輸成本的降低，以及零售定價的好處和與去年的庫存行動相比較低的清倉降價率。我們還看到較低的數字量和更有利的較低成本的當日履行組合使毛利率小幅受益。

Offsetting those 2 sources of benefit, shrink reduced our gross margin rate by a full percentage point compared with a year ago. As Brian highlighted, pressure from shrink has continued to increase, and we now expect that if current trends continue, shrink will reduce our full year profitability by more than $500 million compared with last year. One note, the impact of merchandise mix on our first quarter gross margin rate was approximately neutral as the rate impact of sales declines in our highest-margin categories was offset by sales declines in lower-margin rate categories.

抵消了這兩個收益來源，與一年前相比，收縮使我們的毛利率降低了整整一個百分點。正如 Brian 所強調的那樣，收縮帶來的壓力一直在增加，我們現在預計，如果目前的趨勢繼續下去，收縮將使我們全年的盈利能力比去年減少 5 億美元以上。需要注意的是，商品組合對我們第一季度毛利率的影響大致是中性的，因為我們利潤率最高類別的銷售額下降對利率的影響被利潤率較低類別的銷售額下降所抵消。

Consistent with the guidance we provided for the quarter, our first quarter SG&A expense rate was 19.8%, up about 90 basis points from a year ago. This increase reflects our continued purposeful investments and paying benefits for our team, combined with inflationary cost pressures throughout our business against a backdrop of flat comparable sales, partially offset by the benefit of productivity increases and strong expense discipline across the company. Our first quarter D&A expense rate was down about 10 basis points, reflecting lower accelerated depreciation related to our remodel program compared with last year. Altogether, our first quarter operating income rate to 5.2% was higher than expected, due primarily to upside in our gross margin rate as the benefits from lower freight and transportation costs and our efficiency efforts offset a higher-than-expected impact from shrink.

與我們為本季度提供的指引一致，我們第一季度的 SG&A 費用率為 19.8%，比去年同期高出約 90 個基點。這一增長反映了我們持續的有目的的投資和為我們的團隊支付福利，加上在可比銷售額持平的背景下我們整個業務的通脹成本壓力，部分被生產力提高和整個公司嚴格的費用紀律所抵消。我們第一季度的 D&A 費用率下降了約 10 個基點，反映出與我們的改造計劃相關的加速折舊與去年相比有所下降。總而言之，我們第一季度的營業利潤率為 5.2%，高於預期，這主要是由於貨運和運輸成本下降帶來的好處以及我們提高效率的努力抵消了收縮帶來的高於預期的影響，導致我們的毛利率上升。

As John mentioned, Q1 ending inventory was about 16% lower than a year ago. Within that inventory number was a decline of more than 25% in discretionary categories, reflecting the excess inventory we were carrying last year and the cautious approach we are taking this year. Partially offsetting the decline in discretionary inventory are the purposeful inventory investments we're making in our frequency categories, along with some strategic bets in support of long-term share opportunities. We believe our cautious inventory approach has served us well so far this year and will continue to be the right approach going forward.

正如約翰所提到的，第一季度末庫存比一年前減少了約 16%。在該庫存數量中，非必需品類別下降了 25% 以上，反映出我們去年持有的庫存過剩以及我們今年採取的謹慎態度。我們在我們的頻率類別中進行的有目的的庫存投資，以及一些支持長期股票機會的戰略押注，部分抵消了可支配庫存的下降。我們相信，今年到目前為止，我們謹慎的庫存方法對我們很有幫助，並將繼續是未來的正確方法。

As I turn now to capital deployment, I'll start where I always do, by reiterating our long-standing priorities. First, we fully invest in our business in projects that meet our strategic and financial criteria. Second, we support the dividend and look to build on our record of annual increases, which we've maintained since 1971. And third, only after we've supported those first 2 priorities, we deploy any excess cash to repurchase shares over time within the limits of our middle A credit ratings. Regarding the first priority, we made capital investments of $1.6 billion in the first quarter as we continue to remodel stores, open up new locations, build upstream inventory replenishment capacity and ramp up our sortation center strategy.

當我現在轉向資本部署時，我將從我一直做的事情開始，重申我們長期以來的優先事項。首先，我們將業務完全投資於符合我們戰略和財務標準的項目。其次，我們支持派息，並希望在我們自 1971 年以來一直保持的年度增長記錄的基礎上再接再厲。第三，只有在我們支持前兩個優先事項之後，我們才會在一段時間內部署任何多餘的現金來回購股票我們中等 A 信用評級的限制。關於第一個優先事項，我們在第一季度進行了 16 億美元的資本投資，因為我們繼續改造商店、開設新地點、建立上游庫存補充能力並加強我們的分揀中心戰略。

With 1 quarter of the year behind us, we continue to expect our full year CapEx will be in the $4 billion to $5 billion range. Regarding the second priority, we paid dividends of $497 million in the first quarter, up from $424 million last year, driven by a 20% increase in the per share dividend, partially offset by a decline in average share count.

隨著今年第一個季度的過去，我們繼續預計我們全年的資本支出將在 40 億至 50 億美元之間。關於第二個優先事項，我們在第一季度支付了 4.97 億美元的股息，高於去年的 4.24 億美元，這是由於每股股息增長 20%，部分被平均股數下降所抵消。

And finally, given the impact of the current environment on our financial performance, we didn't repurchase any shares in the first quarter. In the near term, we'll maintain that approach and don't intend to resume repurchase activity until it's compatible with our long-term credit rating goals.

最後，考慮到當前環境對我們財務業績的影響，我們在第一季度沒有回購任何股票。在短期內，我們將保持這種做法，並且不打算恢復回購活動，直到它符合我們的長期信用評級目標。

On that note, I'm pleased with our progress in strengthening our balance sheet. Even as profitability remains well below our long-term potential, we've already seen an encouraging improvement in our operating cash flows. More specifically, our operations generated $1.3 billion of cash in Q1 in stark comparison to a year ago when our operations absorbed $1.4 billion. This dramatic year-over-year improvement was driven almost entirely by changes in our inventory investment compared with last year.

在這一點上，我對我們在加強資產負債表方面取得的進展感到高興。儘管盈利能力仍遠低於我們的長期潛力，但我們已經看到我們的經營現金流出現了令人鼓舞的改善。更具體地說，我們的業務在第一季度產生了 13 億美元的現金，而一年前我們的業務吸收了 14 億美元。與去年相比，這一顯著的同比改善幾乎完全是由我們的庫存投資變化推動的。

And finally, I want to end my review of the quarter with our after-tax returned on invested capital. For the trailing 12 months through the first quarter of this year, our after-tax ROIC was 11.4% compared with 25.3% a year ago, reflecting both the change in profitability and the increase in working capital we began to see a year ago. As we move further into the year, we expect to see higher profitability than a year ago and continue to benefit from the inventory efficiency reflected in this quarter's cash flow. Based on these expectations, we anticipate a recovery in the ROIC metric this year and expect to continue building back toward our longer-term potential in 2024 and beyond.

最後，我想以我們投資資本的稅後回報來結束我對本季度的回顧。在截至今年第一季度的過去 12 個月中，我們的稅後 ROIC 為 11.4%，而一年前為 25.3%，這反映了盈利能力的變化和一年前我們開始看到的營運資本的增加。隨著我們進一步進入今年，我們預計盈利能力將高於一年前，並繼續受益於本季度現金流所反映的庫存效率。基於這些預期，我們預計今年的 ROIC 指標將出現復甦，並預計將在 2024 年及以後繼續朝著我們的長期潛力發展。

So now let me turn to our expectations for Q2 and the full year. As I mentioned, on the sales line, we experienced notably softer comp trends as we exited the first quarter and moved into May. As a result, we're anticipating second quarter sales in a wide range centered around a low single-digit decline, consistent with those recent trends. In terms of profitability, we're expecting a range of possibilities as well.

現在讓我談談我們對第二季度和全年的預期。正如我所提到的，在銷售線上，當我們退出第一季度並進入 5 月時，我們經歷了明顯疲軟的競爭趨勢。因此，我們預計第二季度的銷售額將以較低的個位數下降為中心，這與最近的趨勢一致。在盈利能力方面，我們也期待著一系列的可能性。

On the gross margin line, we believe that many of the same trends that emerged in Q1 will continue in the second quarter, including a meaningful tailwind from freight and transportation costs, and a significant headwind resulting from inventory shrink. Similarly, on the SG&A expense line, we'll continue to face broad-based inflationary pressures and expect to benefit from efficiency efforts and cost discipline across our team. However, if our second quarter comp sales end up declining in the low single digits, which is where they are trending currently, we'll see greater SG&A rate pressure related to cost deleverage than we experienced in Q1.

在毛利率方面，我們認為第一季度出現的許多相同趨勢將在第二季度繼續，包括運費和運輸成本的顯著順風，以及庫存縮減帶來的重大不利因素。同樣，在 SG&A 費用方面，我們將繼續面臨廣泛的通脹壓力，並期望從我們團隊的效率努力和成本紀律中受益。然而，如果我們第二季度的銷售額最終以較低的個位數下降，這是目前的趨勢，我們將看到與成本去槓桿化相關的 SG&A 利率壓力比我們在第一季度經歷的更大。

In light of all of these expectations, we believe our Q2 operating margin rate will be much higher than the very low rate we earned a year ago, but lower than the 5.2% we saw in Q1. Altogether, our expectations translate to a second quarter GAAP and adjusted EPS range of $1.30 to $1.70. As we look beyond Q2, we continue to believe that we entered this year with the appropriate level of caution planning conservatively in light of a tough macro environment and rapidly changing consumer trends. While we're facing some clear headwinds in the short term, we also have multiple actions underway to mitigate them, including ongoing efficiency work and cost saving efforts that we expect to flow into the P&L in the second half of the year.

鑑於所有這些預期，我們認為我們第二季度的營業利潤率將遠高於一年前的極低水平，但低於第一季度的 5.2%。總而言之，我們的預期轉化為第二季度的 GAAP 和調整後每股收益範圍為 1.30 美元至 1.70 美元。展望第二季度之後，我們仍然相信，鑑於嚴峻的宏觀環境和快速變化的消費趨勢，我們在進入今年時採取了適當程度的謹慎計劃。雖然我們在短期內面臨一些明顯的阻力，但我們也正在採取多項行動來緩解這些阻力，包括正在進行的效率工作和我們預計將在下半年流入損益表的成本節約工作。

While we feel good about these efforts, we also remain cautious on the overall environment in light of the macro industry pressures we've outlined today. Taking this all into account, we are maintaining the full year guidance we provided at our Financial Community Meeting in February. Namely, we're planning for full year comparable sales in a wide range centered around flat. We expect to grow our full year operating income by $1 billion or more, and we expect our business to generate full year GAAP and adjusted EPS of $7.75 to $8.75.

儘管我們對這些努力感到滿意，但鑑於我們今天概述的宏觀行業壓力，我們也對整體環境保持謹慎。考慮到這一切，我們將維持我們在 2 月份的金融社區會議上提供的全年指導。也就是說，我們計劃在以持平為中心的廣泛範圍內實現全年可比銷售額。我們預計全年營業收入將增長 10 億美元或更多，我們預計我們的業務將產生全年 GAAP 和調整後每股收益 7.75 美元至 8.75 美元。

As I get ready to turn the call back over to Brian, I want to reiterate my confidence in our longer-term prospects for profitable growth. Even today against a very challenging backdrop, we're starting to assemble the building blocks for a recovery in our operating margin rate back towards its longer-term potential. And while spending pressures in discretionary categories are currently outweighing the continued strong growth we've seen in our frequency categories, we're confident that the economy and the consumer will stabilize over time and will once again benefit from growth in the more discretionary portion of our assortment.

當我準備好將電話轉回給布賴恩時，我想重申我對我們長期盈利增長前景的信心。即使在今天，在一個非常具有挑戰性的背景下，我們也開始組裝基石，以使我們的營業利潤率恢復到其長期潛力。雖然可自由支配類別的支出壓力目前超過了我們在頻率類別中看到的持續強勁增長，但我們相信經濟和消費者將隨著時間的推移穩定下來，並將再次受益於可自由支配部分的增長我們的品種。

In the meantime, we have the capacity to navigate this environment with a strong balance sheet and a resilient business model. We have the right long-term strategy, and we're privileged to work with the best team in retail. I want to express my sincere thanks to our entire team. You are, by far, our most valuable long-term asset.

與此同時，我們有能力通過強大的資產負債表和有彈性的商業模式來應對這種環境。我們有正確的長期戰略，我們很榮幸能與零售業最優秀的團隊合作。我想對我們整個團隊表示衷心的感謝。到目前為止，您是我們最寶貴的長期資產。

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

有了這個，我會把它交給布賴恩。

As Michael just mentioned, we don't build our strategy based on a single moment, but focus on the best way to serve our guests over time. We take that approach when we invest in our stores, in our supply chain, in digital fulfillment and our team. And as we've said many times, we also build our assortment to serve the long-term needs of our guests and the benefit of this flexible assortment strategy has been clearly evident over the last few years. Following the onset of the pandemic, we saw unprecedented traffic and sales growth in our discretionary categories.

正如邁克爾剛才提到的，我們不會根據某一時刻製定戰略，而是專注於長期為客人提供最佳服務方式。當我們投資於我們的商店、我們的供應鏈、數字實現和我們的團隊時，我們採用這種方法。正如我們多次說過的那樣，我們還建立了我們的品類來滿足客人的長期需求，這種靈活的品類策略的好處在過去幾年中已經顯而易見。大流行病爆發後，我們在非必需品類別中看到了前所未有的流量和銷售增長。

And now this year, even as guests are pulling back on discretionary purchases, we still grew traffic just under 1% in the first quarter as guests increase their spending in Beauty, Food & Beverage and Household Essentials. But a short-term pullback in discretionary purchases doesn't mean we'll turn away from our apparel, home and hardline categories. Instead, we'll continue to invest in them and deliver fresh new items throughout the year. That's because our guests continue to love these categories, and we're focused on building our guest engagement with them.

今年，即使客人減少了可自由支配的購買，我們在第一季度的客流量仍然增長了略低於 1%，因為客人增加了在美容、食品和飲料以及家庭必需品方面的支出。但可自由支配購買的短期回調並不意味著我們會放棄我們的服裝、家居和硬線產品類別。相反，我們將繼續對它們進行投資，並在全年提供全新的產品。那是因為我們的客人繼續喜歡這些類別，我們專注於與他們建立客人互動。

Think about it this way. When I arrived at Target just under 9 years ago, our Food & Beverage category was underperforming and losing market share. But rather than turning away from that part of our business, we decided to lean in. We committed to the long term and engage in the hard work that we needed to improve our performance, ranging from our relationship with vendors to our French food supply chain, store labor model, assortment strategy and our own brands. Much of that work happened behind the scenes, and it took time before business trends in Food & Beverage started to change, but the work paid off over time. We entered 2023 following 3 straight years of unprecedented growth and market share gains in Food & Beverage, having grown that category by more than 61% between Q1 2019 and this year's first quarter.

這樣想。當我在不到 9 年前加入 Target 時，我們的食品和飲料類別表現不佳，正在失去市場份額。但是，我們並沒有放棄我們業務的這一部分，而是決定投入其中。我們致力於長期努力，並從事提高績效所需的艱苦工作，從我們與供應商的關係到我們的法國食品供應鏈、門店勞動力模型、分類策略和我們自己的品牌。大部分工作都是在幕後進行的，食品和飲料行業的業務趨勢開始發生變化需要一段時間，但隨著時間的推移，這項工作得到了回報。在食品和飲料領域連續 3 年實現前所未有的增長和市場份額增長之後，我們進入了 2023 年，該類別在 2019 年第一季度和今年第一季度之間增長了 61% 以上。

Beauty is another category where past investments are paying off. It's been performing well for years because we continually invested in the store experience, in passionate, talented and well-trained team members, in our digital experience and our assortment. Our growing partnership with Ulta Beauty is the latest example of how we're finding innovative ways to further enhance our beauty assortment and experience. And our business results clearly demonstrate that our investments are paying off.

美容是過去投資獲得回報的另一個類別。多年來，它一直表現良好，因為我們不斷投資於商店體驗、熱情、才華橫溢且訓練有素的團隊成員，以及我們的數字體驗和產品組合。我們與 Ulta Beauty 不斷發展的合作夥伴關係是我們如何尋找創新方法來進一步增強我們的美容品類和體驗的最新例證。我們的業務成果清楚地表明我們的投資正在取得回報。

We've experienced double-digit growth in Beauty sales for the last 3 years in a row and just saw mid-teen growth in the first quarter. These examples demonstrate why we're investing and maintaining our long-term focus across the board on every 1 of our merchandising categories, fulfillment options, stores, services and our team, all in service to bringing affordable joy to our guests.

過去 3 年，我們的美容產品銷售額連續實現兩位數增長，第一季度的增長率僅為 15% 左右。這些例子說明了為什麼我們要對我們的每一個商品類別、履行選項、商店、服務和我們的團隊進行全面投資和長期關注，所有這些都是為了給我們的客人帶來負擔得起的快樂。

If we do that right, we'll always be ready to serve our guests as their needs change, further deepening our long-term relationship with them.

如果我們做對了，我們將隨時準備好在客人需求發生變化時為他們提供服務，進一步加深我們與他們的長期關係。

With that, we'll move to Q&A. Christina, John, Michael and I will be happy to take your questions.

有了這個，我們將轉向問答。克里斯蒂娜、約翰、邁克爾和我很樂意回答您的問題。

(Operator Instructions) Our first question comes from Ed Kelly with Wells Fargo.

（操作員說明）我們的第一個問題來自富國銀行的 Ed Kelly。

I wanted to start with the guidance. I mean, clearly, you're beginning to see increased consumer pressure now in Q2. And I think those signs of weakening are broad out there. But the midpoint of your guidance implies a pretty good back half improvement. I'm just kind of curious how you thought about Q2 with the reaffirmation of the full year? And is it realistic for us to think that the back half would be in the low $2 range, given what Q2 guidance is?

我想從指導開始。我的意思是，很明顯，你現在開始看到第二季度消費者壓力增加。而且我認為這些疲軟跡像很普遍。但是你指導的中點意味著後半部分有很好的改善。我只是有點好奇你如何看待第二季度的全年重申？考慮到第二季度的指導方針，我們認為後半部分將處於 2 美元的低位區間是否現實？

I'll let Michael start by talking about Q2, and then I'll talk about our focus on the balance of the year.

我會讓邁克爾先談談第二季度，然後我會談談我們對今年餘下時間的關注。

Yes, thanks for the question. You said part of the answer right in your question. We continue to take a cautious approach to the top line. We think that served us really well in the first quarter. 1 of the reasons we got the profit outcome we did in the first quarter is that with inventory position conservatively, that gives us flexibility and agility. And so you'll continue to see us take that posture for the balance of the year. And that comes with an impact on the top line and the bottom line. Our leverage looks different at a slightly negative comp than it does when we're running a positive comp.

是的，謝謝你的提問。您在問題中說了部分答案。我們繼續對頂線採取謹慎的態度。我們認為這在第一季度為我們提供了很好的服務。我們在第一季度獲得利潤結果的一個原因是，保守的庫存狀況為我們提供了靈活性和敏捷性。所以你會繼續看到我們在今年餘下的時間裡保持這種姿態。這會對頂線和底線產生影響。我們的槓桿作用在略微負面的競爭中看起來與我們運行積極的競爭時不同。

A couple of other things that I dimensionalize kind of in how they'll paginate over the year, though. When the shrink with the current trends continuing, that year-over-year pressure from shrink is certainly front half loaded in the year. And so you see that impact in Q2 as well. And then we're excited about the continued work on our efficiency initiatives, and you'll see some of that come to bear in the back half of the year, too. So taking that all together, we feel good about the full year positioning, and we're appropriately cautious for the second quarter.

不過，我還對其他一些事情進行了維度化，以了解它們在一年中的分頁方式。噹噹前趨勢繼續收縮時，收縮帶來的同比壓力肯定會在今年前半負荷。因此，您也會在第二季度看到這種影響。然後我們對我們的效率計劃的持續工作感到興奮，你也會看到其中一些在今年下半年產生影響。因此，綜上所述，我們對全年的定位感覺良好，我們對第二季度持適當的謹慎態度。

You heard Christina talk about the changes we've taken from an inventory standpoint, the benefits that it's going to provide over the balance of the year, that gives us optimism as we think about the full year guidance. The combination of reduced inventory allows us to bring newness into our assortment, make sure we're on trend with the items we know our guests are shopping for, continue to leverage the traffic gains we've seen now for 12 consecutive quarters and balance the strength we're seeing in Food & Beverage, Household Essentials and Beauty with the seasonal moments where Target shines. So as we sit here today, we're excited about Back-to-School and Back-to-College. We've got great plans for the holiday season. And Christina and her team have done a fabulous job of making sure we've got new on-trend items that are going to delight our guests and provide that affordable joy we're looking for each and every day.

你聽到克里斯蒂娜談到我們從庫存的角度所做的改變，它將在今年餘下時間提供的好處，這讓我們在考慮全年指導時感到樂觀。庫存減少的結合使我們能夠為我們的品種帶來新鮮感，確保我們了解客人正在購買的商品處於趨勢，繼續利用我們現在連續 12 個季度看到的流量收益，並平衡在 Target 閃耀的季節性時刻，我們在食品和飲料、家居必需品和美容領域看到了實力。因此，當我們今天坐在這裡時，我們對返校和返校感到興奮。我們為假期制定了很好的計劃。克里斯蒂娜和她的團隊做得非常出色，確保我們擁有新的流行商品，這些商品將取悅我們的客人，並提供我們每天都在尋找的負擔得起的快樂。

Just a follow-up. At the Investor Day, you mentioned that 6% is, I guess, potential for '24. And the backdrop is shifting though. Can you just sort of update us on your thoughts around that building blocks considering the macro?

只是一個跟進。在投資者日，你提到 6% 是，我猜，24 年的潛力。不過，背景正在發生變化。考慮到宏觀，您能否就您對構建模塊的想法進行更新？

Yes, nothing new to share on that front today. I mean, as we sit here 1 quarter into the year with a comp that played out kind of exactly as we expected and a full year guidance that we think is still appropriate. I think we're -- the underlying work in front of us to build back profitability, a meaningful piece of which is part of our plan here in 2023. It will be the first step along that path.

是的，今天在這方面沒有什麼可分享的。我的意思是，當我們坐在這裡進入今年的第一個季度時，我們的表現完全符合我們的預期，而全年的指導我們認為仍然合適。我認為我們 - 擺在我們面前的基礎工作是重建盈利能力，其中有意義的一部分是我們 2023 年計劃的一部分。這將是沿著這條道路邁出的第一步。

Our next question is from Chris Horvers with JPMorgan.

我們的下一個問題來自摩根大通的克里斯霍弗斯。

So a follow-up to the first question there. So on the comp side, is it your expectation that despite disinflation in consumables that clean inventory, some new newness and easier compares, you're expecting general merchandise performance to, I guess, maybe get less worse as we get into the back half of the year?

所以第一個問題的後續行動。因此，在競爭方面，您是否期望儘管消耗品通貨緊縮可以清理庫存、一些新事物和更容易比較，但您是否期望一般商品的表現，我想，隨著我們進入後半部分，可能會變得不那麼糟糕那一年？

Chris, maybe I can start this one. We acknowledge that there's a lot of volatility and that we cannot predict the future, but our expectation is that some of the strengths of Target really amplified during the back half of the year. And it starts with what Brian said, Back-to-School, Back-to-College, where the full value proposition of Target is really put on display. You can leverage all 5 categories in our multi-category portfolio to achieve what you need for your families, buying backpacks and lunches and new outfits for school. And that really then sets up into a cadence of the fall with -- we start new fashion trends in September. We go into October with Halloween, followed by Thanksgiving and Christmas, and those are big moments for Target.

克里斯，也許我可以開始這個。我們承認存在很大的波動性，我們無法預測未來，但我們的預期是 Target 的一些優勢在今年下半年真正得到了放大。它從 Brian 所說的“返校、返校”開始，Target 的全部價值主張真正得到了展示。您可以利用我們的多類別產品組合中的所有 5 個類別來滿足您的家庭需求，為學校購買背包和午餐以及新衣服。然後真正進入秋季的節奏 - 我們在 9 月開始新的時尚趨勢。我們進入 10 月萬聖節，接著是感恩節和聖誕節，這些都是 Target 的重要時刻。

On top of that, we do believe that there's some market share upside in key categories, especially in home, where we believe Back-to-College will benefit strongly from market disruptions in categories like domestic and kitchen appliances. So we're betting on some of those things as well as the newness and the agility that both Michael and Brian have spoken to that having the right fresh assortment and continuing to lead into the affordable side of that will give us momentum in the back half.

最重要的是，我們確實相信關鍵類別的市場份額有一定的上升空間，尤其是在家庭領域，我們認為返校季將從家用和廚房電器等類別的市場中斷中受益匪淺。因此，我們押注其中一些事情以及邁克爾和布賴恩都談到的新穎性和敏捷性，即擁有合適的新鮮品種並繼續引領其負擔得起的一面，這將為我們在後半段提供動力.

Chris, the only thing that I might add to that is, that's all underpinned by a clean inventory position. I mean 1 of the benefits of planning inventory cautiously as we've got the flexibility to lean in to all the good stuff Christina just talked about. And so the end of the quarter, down 16% on a year-over-year basis, that's over 25% in the discretionary categories gives us a lot of room to maneuver as we get into the back part of the year.

克里斯，我唯一要補充的是，這一切都以乾淨的庫存狀況為基礎。我的意思是謹慎計劃庫存的好處之一，因為我們可以靈活地利用克里斯蒂娜剛才談到的所有好東西。因此，本季度末，同比下降 16%，在可自由支配的類別中超過 25%，這給了我們很大的迴旋餘地，因為我們進入了今年的下半年。

Got it. Then as a follow-up, just thinking about the puts and takes as you move through in the back half of the year on the margin, particularly on the gross margin front. So it sounds like the shrink kind of wait and it sort of dissipates as you hopefully catch up on an accrual here. Does freight also improve? And then as you think about the benefit of freight rise into the back half? And then as you think about the efficiency efforts, can you talk about how they're proceeding and where you expect those efficiency efforts to play out in the P&L?

知道了。然後作為後續行動，只需考慮下半年在利潤率上移動時的看跌期權和看跌期權，尤其是在毛利率方面。所以這聽起來像是縮水式的等待，它會隨著你希望在這裡獲得應計收益而消散。運費是否也有所改善？然後當你考慮運費上升到後半部分的好處時？然後當你考慮提高效率的努力時，你能談談他們是如何進行的以及你期望這些提高效率的努力在損益表中發揮什麼作用嗎？

Yes. You're hitting on some of the 3 key big factors as we get into the back part of the year. We're pleased to see headwind on a year-over-year basis. From freight, we're in a better place now than we were a year ago certainly on that front, and that will continue as we get into the back part of the year based on how we currently have things projected.

是的。當我們進入今年下半年時，您正在觸及 3 個關鍵的重要因素中的一些。我們很高興看到同比逆風。從運費方面來看，我們現在的處境肯定比一年前更好，而且根據我們目前的預測，隨著我們進入今年下半年，這種情況將繼續下去。

On the efficiency side of things, I mean, there's a lot within that. Some of that will come to bear this year. As we've shared before, importantly, some of that will come to bear over the next few years. But as an example of something that we'll see more benefit from in the back half of this year, sortation centers are a perfect example. We've got many more facilities open this year. They'll do a lot of business in the back half of the year. And so that's -- it's more sort centers helping deliver goods faster in a sort center market and save us some last mile shipping costs with our Shipt and drivers delivering those brown boxes. And so that's 1 of many initiatives that will start to bear fruit as we get into the back part of this year and the years to come.

在效率方面，我的意思是，其中有很多。其中一些將在今年發揮作用。正如我們之前分享的那樣，重要的是，其中一些將在未來幾年內發揮作用。但作為我們將在今年下半年看到更多收益的一個例子，分揀中心就是一個完美的例子。今年我們開設了更多設施。他們將在今年下半年做很多生意。所以這就是——更多的分揀中心幫助在分揀中心市場更快地交付貨物，並通過我們的 Shipt 和司機運送那些棕色盒子為我們節省一些最後一英里的運輸成本。因此，隨著我們進入今年下半年和未來幾年，這是將開始取得成果的眾多舉措之一。

The next question is from Michael Lasser with UBS.

下一個問題來自瑞銀的 Michael Lasser。

One of the key debates right now on Target is what's the sustainable gross margin rate moving forward? And the first quarter performance is going to help inform the various perspectives on that. So with that being said, can you help bridge the gap in your first quarter 2023 gross margin performance versus 2020 -- excuse me, 2019? I know you said that 100 basis points of the gross margin decline versus last year was shrink. I think you previously said that heading back to last year, there was a 150 basis point drag. So is it right to think that the -- more than 2/3 of the decline from this quarter to 2019 was just shrink related?

目前關於 Target 的主要爭論之一是可持續的毛利率是多少？第一季度的表現將有助於傳達各種觀點。因此，話雖如此，您能否幫助彌合 2023 年第一季度毛利率表現與 2020 年的差距——不好意思，2019 年？我知道你說過毛利率與去年相比下降了 100 個基點。我想你之前說過，回到去年，有 150 個基點的拖累。那麼，認為從本季度到 2019 年超過 2/3 的下降與收縮有關是否正確？

So I'll take a swing at that, Michael. The -- as I said in my remarks, the big drivers, speaking on a year-over-year basis of margin in the first quarter, we had a tailwind from freight. We already talked a little bit about the benefit we're seeing there on a year-over-year basis versus 2019, freight is still a headwind, to be clear. But on a year-over-year basis, we're seeing some benefit. We also saw some benefit on a year-over-year basis on the markdown and think salvage front as we recover from some of the inventory actions that we started to take last year. And then we saw the headwind from shrink, a full percentage point in the first quarter on a year-over-year basis. Like I said, if the current trends were to continue, we'd see that drag from shrink to be front half of the year loaded and kind of how it shows up throughout the year. But you're hitting on the key -- 3 key drivers on a year-over-year basis.

所以我會嘗試一下，邁克爾。正如我在發言中所說，大司機在第一季度的利潤率同比基礎上說，我們有貨運的順風。與 2019 年相比，我們已經談了一些與去年同期相比的好處，需要明確的是，運費仍然是一個不利因素。但與去年同期相比，我們看到了一些好處。隨著我們從去年開始採取的一些庫存行動中恢復過來，我們也看到了降價和思考打撈方面的同比收益。然後我們看到了收縮的逆風，第一季度同比下降了整整一個百分點。就像我說的，如果目前的趨勢繼續下去，我們會看到從收縮到上半年的拖累，以及它在全年的表現。但你擊中了關鍵——同比增長的 3 個關鍵驅動因素。

Okay. And my follow-up question is, the other area of discussion is going to be how do you get this flattish comp for the full year in light of what proceeds to be deteriorating macro situation. So perhaps you're going to make some purposeful choices trading off some margin in order to drive traffic? And if that's the case, how much are you willing to sacrifice the profitability in order to maintain the top line performance as we move into the second half of the year and beyond?

好的。我的後續問題是，另一個討論領域將是，鑑於宏觀形勢不斷惡化，你如何獲得全年持平的業績。因此，也許您要做出一些有目的的選擇來犧牲一些利潤以增加流量？如果是這樣的話，在我們進入下半年及以後，您願意犧牲多少盈利能力來維持頂線業績？

I'm happy to start. Christina, feel free to chime in. We think about it a little differently than that, Michael, in that as we think about the last back half of the year, I mean, we're going to drive traffic in a lot of ways, but it's not a simple trade margin for traffic play. It's about being relevant for our guests in the moments that matter. And is evidenced by the strength in traffic we saw in Q1. With the balance we have across categories, we can appeal to whatever is at the top of the guest shopping list. And first and foremost, that's how we think about staying relevant and driving traffic. So our guide for the year unchanged at the end of Q1 versus what we said 90 days ago, incorporates our best view of how we see all of those puts and takes playing out. And it's a wide range on the top line and the bottom line, but we believe is appropriate from the variables as we digest them sitting 1 quarter into the year. Christina, feel free to -- is there anything you'd add?

我很高興開始。克里斯蒂娜，請隨意插話。邁克爾，我們對這件事的看法略有不同，因為我們考慮的是今年下半年，我的意思是，我們將以多種方式推動流量，但這不是簡單的流量遊戲交易利潤。這是關於在重要時刻與我們的客人相關。我們在第一季度看到的流量強度證明了這一點。憑藉我們在各個類別中的平衡，我們可以吸引客人購物清單頂部的任何東西。首先，這就是我們考慮保持相關性和增加流量的方式。因此，我們在第一季度末的年度指南與我們 90 天前所說的相比沒有變化，包含了我們如何看待所有這些看跌期權和看跌期權的最佳觀點。它在頂線和底線上的範圍很廣，但我們認為從變量來看是合適的，因為我們在今年第一個季度消化了它們。克里斯蒂娜，請隨意——你有什麼要補充的嗎？

Yes. I agree with Michael, 100% that we aren't looking to make those 2 trade-offs. What we do instead is we look at where is there potential for us to take share because our unique proposition in the market might play really well under these circumstances. But in the discretionary categories, we're going in with a very conservative posture. And so it's the strength of our multi-category portfolio and the guests choosing Food, Beverage, Household Essentials and Beauty that's creating the majority of the traffic gains that we're seeing right now.

是的。我 100% 同意 Michael 的觀點，即我們不希望做出這兩個權衡。相反，我們所做的是研究我們有哪些潛力可以分享，因為我們在市場上的獨特主張在這種情況下可能會發揮很好的作用。但在可自由支配的類別中，我們採取非常保守的態度。因此，正是我們多類別產品組合的優勢以及選擇食品、飲料、家庭必需品和美容產品的客人創造了我們目前看到的大部分流量收益。

And I'm very confident about what that means in terms of what the guests are saying in the categories where there's the most price inflation and the most price sensitivity. They're choosing us disproportionately often, which I think is a very good sign of the relevance that we created. Now we will lean into newness, we will lean into affordable joy. We will lean into areas where the guests also are telling us that they're finding our value proposition to be relevant. That showed up in the first quarter in key seasonal moments and is why I'm excited about the back half because we have more of them and there's more disruption in key categories like home.

而且我非常有信心，就客人在價格通脹最高和價格敏感度最高的類別中所說的話而言，這意味著什麼。他們經常不成比例地選擇我們，我認為這是我們創造的相關性的一個很好的跡象。現在我們將傾向於新鮮事物，我們將傾向於負擔得起的快樂。我們將深入到客人也告訴我們他們發現我們的價值主張相關的領域。這在第一季度出現在關鍵的季節性時刻，這就是為什麼我對後半部分感到興奮，因為我們有更多的後半部分，而且在家庭等關鍵類別中有更多的干擾。

Michael, the only other thing I would add is as we think about leveraging our multi-category portfolio in this environment, we have the advantage of a nice balance between national brands and the continued strength we see in own brands, particularly at a time when our guests are looking for that affordable joy from Target. So we do think we're uniquely positioned to continue to maneuver through a challenging 2023 through the strength of our multi-category portfolio, the great national brand partnerships we have, complemented by our own brands and the flexibility we built into our system by reducing inventory and giving us the ability to flow fresh new items that are trend right for our guests.

邁克爾，我唯一要補充的另一件事是，當我們考慮在這種環境下利用我們的多類別產品組合時，我們的優勢是在民族品牌和我們在自有品牌中看到的持續實力之間取得了很好的平衡，尤其是在這個時候我們的客人正在尋找 Target 提供的負擔得起的快樂。因此，我們確實認為，我們具有獨特的優勢，可以通過我們的多類別產品組合的優勢、我們擁有的偉大的國家品牌合作夥伴關係、我們自己的品牌的補充以及我們通過減少在我們系統中建立的靈活性來繼續應對充滿挑戰的 2023 年庫存並使我們能夠為我們的客人提供流行的新鮮商品。

Our next question is from Karen Short with Credit Suisse.

我們的下一個問題來自瑞士信貸的 Karen Short。

I just wanted to ask a little bit about your -- you had a lot of discussion in terms of price points that are going to be lower in discretionary. So I guess my question is, how much of there -- how much of your weakness in discretionary is just a misperception on your actual price point and your value proposition? That's my first question.

我只是想問一點關於你的——你在價格點方面進行了很多討論，這些價格點將在可自由支配的情況下降低。所以我想我的問題是，有多少 - 你在自由裁量權方面的弱點有多少只是對你的實際價格點和你的價值主張的誤解？這是我的第一個問題。

And then my second question is when you obviously have more of an extreme issue on shrink than some other retailers, how much are you losing sales based on some of the measures that you're taking?

然後我的第二個問題是，當你顯然比其他一些零售商有更多關於收縮的極端問題時，根據你正在採取的一些措施，你損失了多少銷售額？

Karen, why don't I start and address the last point because as we sit here today, we think about what's happening from a theft and organized retail crime standpoint. It's an urgent issue, not just for Target, but across the entire retail industry. It is a problem that impacts availability of product, the shopping conditions are less convenient. And unfortunately, what I'm most concerned with is it puts our team and our guests in harm's way. So we are working right now with NRF, our partners at (inaudible), other retailers across the country to make sure that we can talk to legislators that we can work with law enforcement to make some industry-wide changes and we're advocating for public policy changes to address the growing issues that surround all of us in retail today with theft and organized retail crime.

凱倫，為什麼我不開始解決最後一點，因為當我們今天坐在這裡時，我們從盜竊和有組織的零售犯罪的角度思考正在發生的事情。這是一個緊迫的問題，不僅對 Target 如此，對整個零售行業也是如此。這是一個影響產品可用性的問題，購物條件不太方便。不幸的是，我最擔心的是它會讓我們的團隊和我們的客人受到傷害。因此，我們現在正在與 NRF、我們在（聽不清）的合作夥伴以及全國其他零售商合作，以確保我們可以與立法者交談，我們可以與執法部門合作進行一些全行業的變革，我們正在倡導公共政策的變化是為了解決當今零售業圍繞著我們所有人的日益嚴重的盜竊和有組織的零售犯罪問題。

Christina, if we talk about our approach to discretionary categories, I think we've been very clear about the fact that we've been trying to bring fresh new items and at a great price point and value that our guests are looking for. And Karen, I think that's been really consistent throughout the last couple of years as we've seen an overall decline in apparel sales in the industry, in home and hardline-related categories. But Christina can talk to the fact, in many cases, we're holding or growing share in categories that have been soft. But where we've continued to see strength in our ability to hold share and bring newness that's relevant to the guest.

克里斯蒂娜，如果我們談論我們對可自由支配類別的方法，我想我們已經非常清楚這樣一個事實，即我們一直在努力以客人正在尋找的高價位和價值帶來新鮮的新商品。凱倫，我認為這在過去幾年中一直保持一致，因為我們看到該行業、家居和硬線相關類別的服裝銷售總體下滑。但克里斯蒂娜可以說，在許多情況下，我們在一直疲軟的類別中持有或增加份額。但是，我們繼續看到我們在保持份額和帶來與客人相關的新鮮事物方面的能力。

Yes, that's absolutely right. We have been talking about unit share for many, many, many quarters in a row because in many cases, we didn't actually raise our prices as much as the market. And we maintained that affordability. And so that has continued to help contribute the traffic gains that we've seen and the performance that we've seen in aggregate. Our value proposition is always a balance between expect more and pay less, and we're always going to play up that. And so the opportunity for us is to make sure that we are cutting through in our -- with the clarity of our promotions that we continue to put those great items in front of the guests and our merchandise displays and that our website reflects the incredible value that we do offer.

是的，完全正確。我們連續很多很多季度都在談論單位份額，因為在很多情況下，我們實際上並沒有像市場那樣提高價格。我們保持了這種負擔能力。因此，這繼續有助於貢獻我們所看到的流量收益和我們所看到的總體性能。我們的價值主張始終是期望更多和付出更少之間的平衡，我們將始終強調這一點。因此，我們的機會是確保我們在我們的促銷活動中取得突破，我們繼續將這些偉大的項目放在客人和我們的商品展示面前，我們的網站反映了令人難以置信的價值我們確實提供。

I would tell you though that something that we're leaning into that has the potential to continue to create relevance for our guests is Target Circle. Target Circle is our loyalty program. It's free, and it offers personalized promotions and it is -- we've seen that, that is generating better returns than mass promotions. And so our ability to not only create relevance for our guests, but deliver better returns for the business is a big priority for us. And that is part of the ecosystem the way we deliver value. The last part that I'd offer up, though, is because of the way we deliver value and our value proposition is about balance, it comes through a lot in the assortment and own brands play a particular role here. Not only are they great quality products that have been designed with specific guest needs in mind, they're also incredibly accessible from a price point perspective. And that's why you hear us talking a lot about that, particularly in this environment.

不過我要告訴你的是，我們正在研究的有可能繼續為我們的客人創造相關性的東西是 Target Circle。 Target Circle 是我們的忠誠度計劃。它是免費的，它提供個性化的促銷活動——我們已經看到，這比大規模促銷活動產生了更好的回報。因此，我們不僅能夠為客人創造相關性，而且能夠為企業帶來更好的回報，這對我們來說是一個重中之重。這就是我們交付價值的方式的生態系統的一部分。不過，我要提供的最後一部分是因為我們提供價值的方式和我們的價值主張是關於平衡的，它在分類中有很多，而自有品牌在這裡發揮著特殊的作用。它們不僅是專為特定客人需求而設計的優質產品，而且從價格角度來看，它們的價格也令人難以置信。這就是為什麼你聽到我們談論很多，特別是在這種環境下。

Our next question is from Rupesh Parikh with Oppenheimer.

我們的下一個問題來自 Rupesh Parikh 和 Oppenheimer。

I just want to get your perspective in terms of what you're seeing right now in the promotional backdrop. And then for Q2, just curious if you guys have assumed a more promotional backdrop in Q2?

我只想了解您對您現在在促銷背景下所看到的內容的看法。然後對於第二季度，只是好奇你們是否在第二季度假設了更多的促銷背景？

Right now, there's no question that guests are seeking deals. The opportunity to balance their budget by finding deals is very visible. As I just talked about, the way that we're continuing to evolve our proposition is make sure that the deals that we do offer are certainly competitive with the market, but that they're increasingly more personalized. And as has been said a couple of times now, the inventory position that we're in right now gives us the ability to compete with the market but not chase the market down. And so that's what we're really excited about. We have an agile playbook that will allow us to continue to go after creating relevance for our guests and offering value but keep it rational.

現在，毫無疑問，客人正在尋求交易。通過尋找交易來平衡預算的機會非常明顯。正如我剛才所說，我們繼續發展我們的主張的方式是確保我們提供的交易肯定與市場競爭，但它們越來越個性化。正如現在已經說過幾次的那樣，我們現在所處的庫存狀況使我們有能力與市場競爭，但不會追逐市場。這就是我們真正感到興奮的地方。我們有一個敏捷的劇本，可以讓我們繼續為我們的客人創造相關性並提供價值，但保持理性。

Great. And then my follow-up question, just on the shrink, I think per estimates, I think shrink is now $1 billion-plus headwind over a 2-year basis. Does your team feel that you can fully recover that headwind over time? And then with some of the efforts that you already have in place, are you starting to see traction with any of those efforts, even if they're maybe in the early stages?

偉大的。然後是我的後續問題，就收縮而言，我認為根據估計，我認為收縮現在在 2 年的基礎上超過 10 億美元的逆風。您的團隊是否認為您可以隨著時間的推移完全恢復逆風？然後，通過您已經做出的一些努力，您是否開始看到這些努力中的任何一個產生吸引力，即使它們可能處於早期階段？

John, why don't you talk about some of the mitigation efforts we put in place?

約翰，你為什麼不談談我們採取的一些緩解措施？

Yes, I think -- as we think about mitigation efforts, I would go back to, first, what Brian said, it starts, first and foremost, with creating a safe environment for our team and for our guests. And there are multiple approaches to that, that also have a financial impact. So clearly, there is what we do with merchandise and how we display it and how we make that available to a guest. There is assortment changes that we can make to improve that performance as well.

是的，我認為——當我們考慮緩解措施時，我首先要回到布賴恩所說的，首先要為我們的團隊和客人創造一個安全的環境。有多種方法可以解決這個問題，它們也會產生財務影響。很明顯，我們對商品做了什麼，我們如何展示它，以及我們如何向客人提供這些商品。我們也可以進行分類更改以提高性能。

And then finally, there's security changes in the store that we can make. You put all 3 of those together and as you said, we introduced some of those last year. And over time, we do see the impact of that. We see improvement in the safeness of the store. We see improvement in sales and we see a reduction in out-of-stocks, all of which to us are positive indicators that we can make progress. And we'll continue to implement those. Now some of those create additional friction for our guests. It's on us to create the right environment with our team so that we reduce that friction as much as possible. But we do see, overall, again, through time, we see those things improve.

最後，我們可以對商店進行安全更改。你把這三個放在一起，正如你所說，我們去年介紹了其中的一些。隨著時間的推移，我們確實看到了它的影響。我們看到商店的安全性有所提高。我們看到銷售有所改善，缺貨情況有所減少，所有這些對我們來說都是積極的指標，表明我們可以取得進展。我們將繼續實施這些。現在，其中一些會給我們的客人帶來額外的摩擦。我們有責任與我們的團隊一起創造合適的環境，以便我們盡可能減少摩擦。但我們確實看到，總的來說，隨著時間的推移，我們看到這些事情有所改善。

Our next question is from Simeon Gutman with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Simeon Gutman。

Brian, and it's been said a few times, the consumer is becoming more cautious. Can you talk about the competitive backdrop? I think it's natural that it's gotten more competitive. It sounded like that in Christina's remarks. Can you maybe give perspective on how it compares maybe to last year or even pre-COVID?

布賴恩，已經說過幾次了，消費者正變得更加謹慎。能談談競爭背景嗎？我認為它變得更具競爭力是很自然的。克里斯蒂娜的話聽起來是這樣的。您能否就它與去年甚至 COVID 之前的情況進行比較給出看法？

I think we've seen pretty consistent trends year-on-year. One of the things, as we think about discretionary categories, Simeon, and we talked about this in February at our financial community meeting. While we have seen some softness, last year, we generated almost $55 billion of revenue in those discretionary categories. And if we go back to pre-pandemic, we've seen sizable gains across all 3 of our major discretionary categories; apparel, home and hard lines. So there's still a consumer who's shopping those categories.

我認為我們已經看到了與去年同期相當一致的趨勢。其中一件事，當我們考慮自由裁量類別時，Simeon，我們在 2 月份的金融社區會議上討論了這個問題。雖然我們看到了一些疲軟，但去年，我們在這些可自由支配的類別中創造了近 550 億美元的收入。如果我們回到大流行前，我們已經看到我們所有 3 個主要的可自由支配類別都取得了可觀的收益；服裝、家居和硬線。所以仍然有消費者在購買這些類別。

There's certainly a competitive activity that we're watching carefully. But to Christina's point, we're trying to make sure that we're not leading the market down. We're using the benefits of Target Circle that personalized offers to those guests that we know are looking for those items at Target and blending the balance of our national brands with our own brands to provide great value each and every day. So those categories are still relevant to the consumer. As Christina mentioned, we see certainly dislocation in the retail market that's going to open up market share opportunities for us. I think we're going to start realizing some of that during the Back-to-College season. But we'll also see opportunities over the balance of the year and as we go into the holiday season, they continue to make sure guests are turning to Target for those discretionary purchases they're looking to make.

當然，我們正在仔細觀察一項競爭活動。但就克里斯蒂娜的觀點而言，我們正在努力確保我們不會引領市場下跌。我們正在利用 Target Circle 的優勢，為那些我們知道正在 Target 尋找這些商品的客人提供個性化服務，並將我們的國家品牌與我們自己的品牌相結合，每天提供巨大的價值。所以這些類別仍然與消費者相關。正如克里斯蒂娜提到的，我們肯定會看到零售市場的錯位，這將為我們打開市場份額的機會。我認為我們將在返校季開始意識到其中的一些。但我們也會在今年餘下時間看到機會，隨著我們進入假期，他們將繼續確保客人轉向 Target 購買他們希望進行的非必需品。

And then a quick follow-up maybe for Michael. The negative flow-through in Q2 looks like it's higher than that of Q1. And there is some movement in math given the comparisons here. Curious, why shouldn't there be more margin recovery in Q2 even on the negative comp or potentially negative comp?

然後可能是邁克爾的快速跟進。 Q2 的負流量看起來比 Q1 高。鑑於此處的比較，數學上有一些變化。奇怪的是，為什麼即使在負補償或潛在負補償的情況下，第二季度也不應該有更多的利潤率恢復？

Yes. I think I've hit most of the key themes there already. Just to repeat a couple, we're positioned in the top line conservatively and that means what leverage looks like in an inflationary cost environment throughout the P&L looks different planning for a slightly negative comp in our guide for Q2. So you see some deleverage there. And then we've talked a few times, the headwind of shrink will be present again in Q2, and that's more of a front half of the year thing than a back half of the year thing. But those would be some of the key things that we'll watch as the quarter plays out.

是的。我想我已經觸及了那裡的大部分關鍵主題。只是重複一對夫婦，我們保守地定位在頂線，這意味著在整個損益表的通貨膨脹成本環境中，槓桿看起來像我們第二季度指南中略微負面的計劃不同。所以你會看到一些去槓桿化。然後我們談了幾次，收縮的不利因素將在第二季度再次出現，這更多是上半年的事情而不是下半年的事情。但這些將是我們將在本季度結束時關注的一些關鍵事情。

Operator, we have time for 1 final question today.

接線員，我們今天有時間回答最後一個問題。

Our final question is from Dean Rosenblum with Bernstein.

我們的最後一個問題來自 Dean Rosenblum 和 Bernstein。

I want to just follow up on the gross margin questions first. So you mentioned that relative to 2019, rate is a headwind, shrink is a headwind, et cetera. When we talked back in the fourth quarter event, we've asked about the notion of permanent sort of impairment to gross margins. We're looking at gross margin historically. In the second quarter with gross margin above 30%, can you give us some idea of where you might expect gross margins to come in for the second quarter? What might you consider middle slice and may be ambitious for gross margins for the second quarter?

我只想先跟進毛利率問題。所以你提到相對於 2019 年，利率是逆風，收縮是逆風，等等。當我們在第四季度的活動中回談時，我們詢問了毛利率永久性減值的概念。我們從歷史上看毛利率。在毛利率超過 30% 的第二季度，您能否告訴我們您預計第二季度的毛利率會在哪裡？您認為中間部分是什麼，第二季度的毛利率可能是雄心勃勃的？

Yes. Our expectations for both margin and SG&A and the rest of those are all baked into that EPS guide. And so as you guys know, we don't break out the specific components in our guidance. And the other thing I'd note, you probably heard me say this before, quarterly margins have more noise in them than I think sometimes the group here might appreciate. And so stepping back and seeing the margin trajectory over a longer period of time, I think, is going to be important. And we've got some work to do on that front. It's baked into our guide for the year to recover some of the margin pressure that we saw last year.

是的。我們對利潤率和 SG&A 以及其他方面的預期都包含在該 EPS 指南中。正如你們所知，我們不會在我們的指南中分解具體的組成部分。我要注意的另一件事是，你之前可能聽過我說過，季度利潤中的噪音比我認為有時這裡的團隊可能會欣賞的要多。因此，我認為，退後一步，看看較長一段時間內的利潤率軌跡將很重要。我們在這方面還有一些工作要做。它已納入我們今年的指南，以恢復我們去年看到的一些利潤率壓力。

All right. So that concludes our first quarter call. And we appreciate all of you joining us and look forward to talking to you later this year. So thank you.

好的。這樣就結束了我們的第一季度電話會議。我們感謝大家加入我們，並期待在今年晚些時候與您交談。所以謝謝。