目標百貨 (TGT) 2023 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Target Corporation Third Quarter Earnings Release Conference Call.

女士們先生們，謝謝你們的支持。歡迎參加目標公司第三季財報發布電話會議。

(Operator Instructions) As a reminder, this conference is being recorded Wednesday, November 15, 2023. I would now like to turn the conference over to Mr. John Hulbert, Vice President, Investor Relations. Please go ahead, sir.

（操作員說明）謹此提醒，本次會議將於 2023 年 11 月 15 日星期三進行錄製。我現在將會議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 third quarter 2023 earnings conference call.

大家早安，感謝您參加我們的 2023 年第三季財報電話會議。

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.

今天和我一起在線的是董事長兼首席執行官布萊恩康奈爾 (Brian Cornell)；克里斯蒂娜‧亨寧頓 (Christina Hennington)，首席成長長；約翰‧穆里根，營運長；和首席財務官邁克爾菲德爾克。

In a few moments, Brian, Christina, John and Michael will provide their insights on our third quarter performance, along with our outlook and priorities for the fourth quarter. 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.

稍後，布萊恩、克里斯蒂娜、約翰和邁克爾將提供他們對我們第三季業績的見解，以及我們對第四季的展望和優先事項。在他們發表講話後，我們將開通電話線路進行問答。今天早上，投資者和其他透過網路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，麥可和我將回答您的後續問題。

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 earnings press release and in 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，我們今天早上做出的任何前瞻性陳述都受到風險和不確定性的影響，包括今天早上的收益新聞稿和我們最近提交的 10-K 中描述的風險和不確定性。在這些評論中，我們也提到了非公認會計準則財務指標，包括調整後每股盈餘。所有非 GAAP 數據與最直接可比較的 GAAP 數據的對帳均包含在今天早上的新聞稿中，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 third quarter, and his priorities for the remainder of the year. Brian?

至此，我將向布萊恩轉達他對第三季的想法，以及他今年剩餘時間的優先事項。布萊恩？

Thanks, John. For many years now, we have focused on building a durable business model that allows us to meet guests where they are, developing and enhancing the right tools and capabilities while investing heavily in our team, all in the service of providing an affordable, easy and joyful guest experience. And the flexibility of our multi-category model has served us incredibly well over the last few years, delivering unprecedented growth in both traffic and sales.

謝謝，約翰。多年來，我們一直專注於建立持久的商業模式，使我們能夠滿足客人的需求，開發和增強正確的工具和能力，同時大力投資我們的團隊，所有這些都是為了提供負擔得起的、簡單的和愉快的賓客體驗。在過去的幾年裡，我們的多品類模式的靈活性為我們提供了令人難以置信的良好服務，實現了流量和銷售額前所未有的成長。

Today, our business generates well over $100 billion in annual revenue and is successfully navigating through a very challenging environment as consumers continue to rebalance their spending between goods and experiences and make tough choices in the face of persistent inflation. Even as our P&L is being impacted by multiple top line and bottom line challenges, including soft industry trends in discretionary categories, moderating inflation rates in Essentials and Food and Beverage and higher inventory shrink. We've seen a meaningful improvement in profitability compared with last year.

如今，我們的業務年收入遠遠超過1000 億美元，並成功度過了一個非常具有挑戰性的環境，因為消費者不斷在商品和體驗之間重新平衡支出，並在持續的通貨膨脹面前做出艱難的選擇。儘管我們的損益表受到多重頂線和底線挑戰的影響，包括非必需品類別的疲軟行業趨勢、必需品和食品和飲料的通膨率放緩以及庫存萎縮加劇。與去年相比，我們看到獲利能力顯著提高。

More specifically, our EPS through the first 3 quarters of 2023 was more than 40% higher than last year and more than 26% higher than in 2019. Importantly, even beyond this year's rapid progress, we believe we have a significant opportunity to grow both the top line and bottom line in the years ahead. So even as we remain cautious in our near-term outlook, we're not standing still. We're playing the long game, investing in our stores, our supply chain, our team, our digital capabilities and our assortment to provide the newness, value and convenience our guests want for this holiday season and beyond. At the heart of it all is our focus on being our guests' happy place and delivering the joyful shopping experience that makes Target, Target.

更具體地說，我們到2023 年前3 季度的每股收益比去年高出40% 以上，比2019 年高出26% 以上。重要的是，即使超越今年的快速進展，我們相信我們還有很大的機會實現兩者的成長未來幾年的營收和利潤。因此，儘管我們對近期前景保持謹慎，但我們並沒有停滯不前。我們正在打一場持久戰，對我們的商店、供應鏈、團隊、數位能力和產品種類進行投資，以便為我們的客人在這個假期及以後提供他們想要的新穎、價值和便利。這一切的核心是我們致力於成為客人快樂的地方，並提供令人愉悅的購物體驗，這使得 Target 成為 Target。

In the third quarter, Target's comparable sales were down 4.9%, in line with our expectations. Consistent with prior quarters and overall industry trends, discretionary categories were the driver of this decline, partially offset by net sales growth in our frequency categories. Between sales channels, store comp trends were somewhat stronger than in the digital channel. Among our digital fulfillment capabilities, same-day services saw high single-digit comp growth led by Drive-Up, which expanded 12%. Strength in these services was offset by continued softness in brown box delivery, which is most affected by the pullback in discretionary categories.

第三季度，塔吉特的可比銷售額下降 4.9%，符合我們的預期。與前幾季和整體行業趨勢一致，非必需類別是這一下降的驅動因素，但部分被我們頻率類別的淨銷售額成長所抵消。在銷售通路之間，商店競爭趨勢比數位通路強一些。在我們的數位履行能力中，當日服務實現了高個位數的複合成長，其中 Drive-Up 帶動了成長，成長了 12%。這些服務的強勁勢頭被棕盒交付的持續疲軟所抵消，而棕盒交付受非必需品類別回調的影響最大。

On the bottom line, our third quarter EPS of $2.10 was well above our expectations and more than 36% ahead of last year. This increase reflected the continued benefit of lower freight costs, disciplined inventory management by our team, favorable category and channel mix and the continued benefit of our work to enhance efficiency, which offset multiple pressures throughout our business. This is outstanding profit performance in the face of a very challenging environment, and I want to thank our entire team for their tireless efforts in support of our guests, our business and each other.

總而言之，我們第三季每股收益為 2.10 美元，遠高於我們的預期，比去年同期高出 36% 以上。這一成長反映出較低的貨運成本、我們團隊嚴格的庫存管理、有利的品類和通路組合以及我們提高效率工作的持續效益，抵消了整個業務的多重壓力。面對非常具有挑戰性的環境，這是出色的利潤表現，我要感謝我們整個團隊為支持我們的客人、我們的業務和彼此所做的不懈努力。

As you know, one of our top priorities this year was to rebuild our profitability following the unique challenges we faced in 2022. And while there's lots more work ahead of us, I'm really pleased with the progress the team has delivered so far this year. At the same time, I want to make it clear. We are not satisfied with the top line trends we've been seeing. Our #1 priority is to get back to sustainable growth in both traffic and sales, and we're committed to investing in long-term initiatives to deliver this growth.

如您所知，我們今年的首要任務之一是在應對 2022 年面臨的獨特挑戰後重建我們的盈利能力。雖然我們還有很多工作要做，但我對團隊迄今為止的進展感到非常滿意年。同時，我想澄清一下。我們對我們所看到的營收趨勢並不滿意。我們的首要任務是恢復流量和銷售的可持續成長，我們致力於投資長期計劃以實現這種成長。

As we assess the external environment, it's clear that consumers have been remarkably resilient. Yet at the same time, our research indicates that themes like uncertainty, caution, managing my time and budget and focusing on essentials while still finding ways to celebrate are all top of mind. Overall, consumers are still spending, but pressures like higher interest rates, the resumption of student loan repayments, increased credit card debt and reduced savings rates, have left them with less discretionary income, forcing them to make trade-offs in their family budgets.

當我們評估外在環境時，很明顯消費者的復原能力非常強。但同時，我們的研究表明，諸如不確定性、謹慎、管理時間和預算、關注要點的同時仍然尋找慶祝方式等主題都是首要考慮的問題。總體而言，消費者仍在消費，但利率上升、學生貸款償還恢復、信用卡債務增加和儲蓄率下降等壓力使他們的可自由支配收入減少，迫使他們在家庭預算中做出權衡。

For example, this year, we've seen more and more consumers delaying their spending until the last moment. Guests who previously bought sweatshirts or denim in August or September are deciding to wait until the weather turns cold before making a purchase. This is a clear indication of the pressures they're facing as they work to stretch their budgets until the next paycheck.

例如，今年，我們看到越來越多的消費者將支出延後到最後一刻。之前在八月或九月購買運動衫或牛仔布的客人決定等到天氣變冷後再購買。這清楚地表明了他們在努力延長預算直至下一次發薪水時所面臨的壓力。

Consistent with these pressures, as we look at recent trends across the retail industry, dollar sales are being driven by higher prices with consumers buying fewer units per trip. In fact, overall unit demand across the industry has been down 2% to 4% in recent quarters. And the industry has experienced 7 consecutive quarters of declines in discretionary dollars and units. And while we're happy to see inflation rates moderating this year, if you compare industry pricing in key categories back to 2020, food at home pricing for families has increased 25% overall and in some areas, up to 30%. And if you're a parent raising a baby, you're facing increases of more than 30% on baby food and formula, too. And that's in addition to persistent increases in a variety of other categories.

與這些壓力一致的是，當我們觀察整個零售業的最新趨勢時，美元銷售是由價格上漲所推動的，而消費者每次旅行購買的商品數量較少。事實上，近幾季整個產業的整體單位需求已下降 2% 至 4%。該行業的可自由支配金額和單位數量已連續 7 個季度下降。雖然我們很高興看到今年通膨率有所放緩，但如果將關鍵類別的行業定價與 2020 年進行比較，就會發現家庭食品定價總體上漲了 25%，在某些地區甚至高達 30%。如果您是撫養嬰兒的父母，那麼嬰兒食品和配方奶粉的價格也會上漲 30% 以上。這還不包括其他各種類別的持續成長。

So when you layer on the impact of higher energy prices, it all puts pressure on discretionary spending. As a result, this holiday season, we're focusing on highlighting the amazing value we've always provided in our end caps, promotions and the price points we feature in our marketing. As we built our plans for this holiday season, we maintained our cautious inventory positioning in markdown-sensitive categories. This provides our team the necessary flexibility to quickly adjust to volatile trends, something that has served us well all year.

因此，當你考慮能源價格上漲的影響時，這一切都會對可自由支配支出造成壓力。因此，在這個假期，我們重點關注我們在行銷中一直在端蓋、促銷和價格點中提供的驚人價值。在製定這個假期計劃時，我們對降價敏感品類保持謹慎的庫存定位。這為我們的團隊提供了必要的靈活性，可以快速適應不穩定的趨勢，這讓我們一整年都受益匪淺。

But I want to be crystal clear. That does not mean we're backing off on newness. While we're cautious about the size of our inventory commitments, we're leaning into the amount of innovation featured in our assortment. And after several years in which our vendors were focused on raising production volumes in the face of unprecedented demand, we're encouraged by the focus on newness and innovation we're seeing from them. And as I've mentioned, throughout this holiday season, we'll be focused on highlighting value, helping families to celebrate the joy of the season in a way that fits their budget.

但我想說得一清二楚。這並不意味著我們會放棄新鮮感。雖然我們對庫存承諾的規模持謹慎態度，但我們正在關注我們產品組合中的創新數量。幾年來，我們的供應商面對前所未有的需求，專注於提高產量，我們看到他們對新穎和創新的關注，這讓我們深受鼓舞。正如我所提到的，在整個假期期間，我們將專注於強調價值，幫助家庭以適合其預算的方式慶祝節日的歡樂。

Beyond our assortment, as we work to provide a great guest experience, we've enhanced our training of retail fundamentals to our teams. This is an important shift after years of operating in an environment that was anything but normal. After all, given the large number of team members we've hired over the last few years, a meaningful number of them have never experienced ordinary sales trends.

除了我們的品種之外，在我們努力提供卓越的賓客體驗的同時，我們還加強了對團隊的零售基礎知識培訓。在一個完全不正常的環境中運作多年後，這是一個重要的轉變。畢竟，考慮到我們過去幾年僱用的大量團隊成員，其中相當一部分人從未經歷過普通的銷售趨勢。

As we've said many times, investments in our team are the most important ones we make. And today, we remain on our front foot, investing to ensure they can deliver a joyful industry-leading shopping experience. This holiday season, we'll be supplementing our existing team by hiring nearly 100,000 seasonal team members to meet expected demand and ensure we can deliver a joyful shopping experience.

正如我們多次說過的，對團隊的投資是我們最重要的投資。今天，我們仍然保持領先地位，進行投資以確保他們能夠提供令人愉悅的行業領先的購物體驗。這個假期，我們將僱用近 10 萬名季節性團隊成員來補充現有團隊，以滿足預期需求並確保我們能夠提供愉快的購物體驗。

So now as I get ready to hand the call over to Christina, I think it would be useful to pause and assess how this year has progressed in comparison to our expectations. As a reminder, at the beginning of this year, we said we were expecting a challenging environment with the sales guidance range centered around flat comparable sales. In terms of profitability, we said we expected to grow our full year operating income by $1 billion or more with an expected EPS range of $7.75 to $8.75.

因此，現在當我準備將電話轉交給克里斯蒂娜時，我認為暫停一下並評估今年與我們的預期相比的進展會很有用。提醒一下，今年年初，我們表示，我們預計環境將充滿挑戰，銷售指導範圍將圍繞可比銷售額持平。在獲利能力方面，我們預計全年營業收入將成長 10 億美元或更多，預計每股收益範圍為 7.75 美元至 8.75 美元。

So today, with 3 quarters of the year behind us, top line trends have obviously been tougher than expected, and we're firmly focused on getting back to growth. But the story on profitability has been very different. Through the first 3 quarters of this year, we've already grown operating income by more than $1 billion compared with last year despite unexpected headwinds from higher-than-expected shrink and softer-than-expected sales. We're encouraged with this performance against a challenging backdrop, which demonstrates the resilience of both our team and our business. I'm incredibly proud to be a member of this great team and excited about the growth we're positioned to deliver in the years ahead.

因此，今天，今年已經過了三個季度，營收趨勢顯然比預期更嚴峻，我們堅定地致力於恢復成長。但獲利能力的故事卻截然不同。今年前三個季度，儘管出現了超出預期的萎縮和低於預期的銷售疲軟帶來的意外阻力，但與去年相比，我們的營業收入已經成長了超過 10 億美元。在充滿挑戰的背景下取得這樣的業績讓我們深受鼓舞，證明了我們團隊和業務的韌性。我非常自豪能夠成為這個偉大團隊的一員，並對我們在未來幾年實現的成長感到興奮。

Now I'll turn the call over to Christina.

現在我將把電話轉給克里斯蒂娜。

Thanks, Brian, and good morning, everyone. As we've shared for the past several quarters now, even as our guests face tough choices as they manage their budgets, they're also continuing to celebrate seasonal moments while showing their excitement for new product offerings and compelling value. After all, consumers are feeling the weight of multiple economic pressures and discretionary retail has borne the brunt of this weight for many quarters now.

謝謝布萊恩，大家早安。正如我們在過去幾個季度所分享的那樣，即使我們的客人在管理預算時面臨艱難的選擇，他們也會繼續慶祝季節性時刻，同時表現出對新產品和令人信服的價值的興奮。畢竟，消費者正在感受到多重經濟壓力的壓力，而非必需品零售業在許多季度中首當其沖地承受著這種壓力。

In addition, consumers are facing newly emerging headwinds, including higher interest rates and the return of student loan payments. In the face of this mental and emotional tug of war, consumers are looking for a respite, which is why we are relentless in our pursuit to provide ease, inspiration, joy and comprehensive value every day. And while we are not satisfied with our current performance, I'm confident that our team's empathy and their continued focus on serving our guests' wants and needs, will pay dividends in the years ahead.

此外，消費者還面臨新出現的阻力，包括利率上升和學生貸款償還。面對這場精神和情感的拉鋸戰，消費者正在尋求喘息的機會，這就是為什麼我們不懈地追求每天提供輕鬆、靈感、快樂和綜合價值。雖然我們對目前的表現並不滿意，但我相信我們團隊的同理心以及他們對滿足客人的需求和需求的持續關注將在未來幾年帶來回報。

As Brian mentioned, our third quarter comparable sales decline reflected continued softness in discretionary categories, partially offset by growth in Beauty. Notably, comps within frequency categories slowed between Q2 and Q3, driven entirely by a deceleration in the comp benefit from growth in average retail. More specifically, in both Food and Beverage and Beauty and Essentials, the benefit from average pricing decelerated by about 3 percentage points between the second and third quarters as we move beyond the period of peak inflation from a year ago. As we've said, a lower inflation rate is welcome news as it will reduce pressure on consumer budgets, making room for them to expand back into discretionary categories over time.

正如布萊恩所提到的，我們第三季的可比銷售額下降反映了非必需品類別的持續疲軟，但部分被美容類別的成長所抵消。值得注意的是，頻率類別內的比較在第二季和第三季之間放緩，完全是由於平均零售成長帶來的比較收益減速所致。更具體地說，在食品和飲料以及美容和必需品領域，隨著我們度過了一年前的通膨高峰期，第二季和第三季平均定價帶來的收益下降了約 3 個百分點。正如我們所說，較低的通膨率是個好消息，因為它將減輕消費者預算的壓力，為他們隨著時間的推移重新擴展到可自由支配的類別創造空間。

Beauty-led performance in the quarter with comparable sales growth in the high single digits driven by strength across core Beauty and our Ulta Beauty at Target offerings. We're excited to launch Fenty Beauty by Rihanna in the third quarter, and it has quickly become one of our top-selling beauty brands across the chain. In Food and Beverage, comp sales were down slightly to last year. Seasonal candy, snacks and hosting solutions performed particularly well. Comp sales in Essentials declined in the low single digits despite strength in health care and baby categories.

本季的業績以美妝為主導，在核心美妝和 Ulta Beauty at Target 產品實力的推動下，可比銷售額實現了高個位數增長。我們很高興在第三季推出 Rihanna 的 Fenty Beauty，它已迅速成為我們整個連鎖店最暢銷的美容品牌之一。在食品和飲料領域，公司銷售額比去年略有下降。季節性糖果、零食和託管解決方案表現尤其出色。儘管醫療保健和嬰兒用品類別表現強勁，但必需品的銷售額仍以低個位數下降。

Comp sales in our discretionary categories remained soft in the third quarter with declines ranging from the high single digits to low double digits. However, trends improved markedly compared with the second quarter, thanks to the agility of our team and their focus on listening and responding to our guests. Home saw a high single-digit comp decline, an improvement of more than 6 percentage points from the second quarter. Most notably, we saw strength in Back-to-School and college categories and a great response to our assortment of Stanley drinkware.

第三季我們非必需品類別的比較銷售額仍然疲軟，下降幅度從高個位數到低兩位數。然而，與第二季度相比，趨勢明顯改善，這要歸功於我們團隊的敏捷性以及他們對傾聽和回應客人的關注。 Home 的年減幅度較高，較第二季下降了 6 個百分點以上。最值得注意的是，我們看到了返校和大學類別的優勢，以及對我們的 Stanley 飲具品種的巨大反響。

Additionally, within kitchenware, we launched our most recent owned brand, Figmint, and received an enthusiastic response from our guests. Figmint offers more than 250 items, ranging from enameled cookware to ceramic mixing bowls to kitchen gadgets all at a quality, aesthetic and value that can't be topped.

此外，在廚具領域，我們推出了最新的自有品牌Figmint，並得到了客人的熱烈反響。 Figmint 提供超過 250 種商品，從搪瓷炊具到陶瓷攪拌碗再到廚房用具，所有商品的品質、美觀和價值都無與倫比。

Apparel comparable sales also declined high single digits, an improvement of nearly 3 percentage points when compared with Q2. The business was strongest within new offerings, including our partnership with Kendra Scott jewelry, the latest All In Motion performance wear and new fall fashion sets within our women's categories. Hardlines comparable sales were down in the low teens. While we were encouraged by Back-to-School performance, demand for electronics remains particularly soft.

服裝可比銷售額也出現高個位數下降，較第二季提高近 3 個百分點。該業務在新產品方面表現最為強勁，包括我們與 Kendra Scott 珠寶的合作、最新的 All In Motion 高性能服裝以及女裝類別中的新款秋季時裝套裝。強硬派的可比銷售額下降了十幾歲。儘管我們對返校表現感到鼓舞，但對電子產品的需求仍然特別疲軟。

This quarter's performance demonstrates that while the results are not immune to macro conditions, when we focus on retail fundamentals, offer exciting new products at incredible value and respond to our guests' wants and needs in a timely manner, we remain relevant with our guests, even against the challenging backdrop. By leaning into seasonal moments like Back-to-School, Back-to-College and Halloween, we not only drove sales in the current quarter, we helped to build lasting affinity with our guests. This focus on celebrating the season creates an engaging experience that keeps Target top of mind.

本季的業績表明，雖然結果無法免受宏觀條件的影響，但當我們專注於零售基本面、以令人難以置信的價值提供令人興奮的新產品並及時響應客人的需求時，我們仍然與客人保持聯繫，即使在充滿挑戰的背景下。透過利用返校、返校和萬聖節等季節性時刻，我們不僅推動了本季的銷售，還幫助我們與客人建立了持久的親和力。這種對慶祝季節的關注創造了一種引人入勝的體驗，讓 Target 始終處於人們的腦海中。

And that's why we continue to offer events like our latest Target Circle week in early October, which added another 500,000 members to our loyalty platform, providing future opportunities to engage with these guests in deeper ways. Our goal this holiday season is to create the perfect combination of incredible value, inspiring and fresh products and a joyful shopping experience as you stroll the aisles in our stores or on the recently refreshed Target website and app.

這就是為什麼我們繼續舉辦 10 月初最新的 Target Circle 週等活動，該活動為我們的忠誠度平台增加了 50 萬名會員，為未來提供與這些客人進行更深層互動的機會。我們這個假期的目標是，當您漫步在我們商店的過道或在最近更新的 Target 網站和應用程式上時，將令人難以置信的價值、鼓舞人心的新鮮產品以及愉快的購物體驗完美結合。

We aim to deepen the relationships with our guests as they look to deck the halls and celebrate the joys that the holidays bring. As we do year round, we are leaning into the power of and this holiday season by not focusing only on one aspect of our strategy, but celebrating how they all work together to create a unique offering in a crowded retail landscape.

我們的目標是加深與客人的關係，因為他們希望裝飾大廳並慶祝節日帶來的歡樂。正如我們全年所做的那樣，我們在這個假期季節中不僅關注我們策略的一個方面，而且慶祝他們如何共同努力，在擁擠的零售環境中創造獨特的產品。

Our plans start with a celebratory experience that you feel the moment you walk into our stores or open the Target website or app, featuring on-trend and inspiring color pallets, imagery and in-store marketing that complements all the excitement and joy, we are creating with our national marketing campaigns. Guests will feel the holiday spirit before they even add their first item to the cart. The excitement builds with our assortment at unbeatable value only at Target-exclusive merchandise and our easy and convenient holiday solutions.

我們的計劃從您走進我們商店或打開Target 網站或應用程式的那一刻感受到的慶祝體驗開始，其中包括流行且鼓舞人心的調色板、圖像和店內營銷，補充了所有的興奮和歡樂，我們透過我們的全國行銷活動進行創作。客人在將第一個商品添加到購物車之前就會感受到節日氣氛。只有 Target 獨家商品和簡單便捷的假期解決方案才能提供無與倫比的價值，讓您興奮不已。

And through it all, we'll remain diligent on executing the necessary retail fundamentals our guests want and expect from us, including being in-stock on the must-have items of the season, offering unmatched value and pricing, highlighting our inspiring and differentiated merchandise assortment and making each trip easy and convenient regardless of where, when and how guests chooses to shop.

在這一切過程中，我們將繼續努力執行客人對我們的期望和期望的必要零售基本原則，包括當季必備商品的庫存，提供無與倫比的價值和定價，突出我們的鼓舞人心和差異化商品種類齊全，無論客人選擇何時、何地、如何購物，每次旅行都變得輕鬆便捷。

Whether a guest knows exactly what they're looking for or needs a bit of inspiration, we want to make the trip joyful, easy and welcoming. And we know families want to celebrate the holidays, but they're relying on us to help them do so affordably. With a combination of everyday low prices, compelling promotions and exciting savings events all season long, we aim to be the holiday destination for affordable joy.

無論客人確切地知道他們在尋找什麼還是需要一點靈感，我們都希望讓旅程變得愉快、輕鬆和溫馨。我們知道許多家庭想要慶祝節日，但他們依靠我們以經濟實惠的方式幫助他們慶祝節日。憑藉每日低價、引人注目的促銷活動和整個季節令人興奮的優惠活動，我們的目標是成為負擔得起的歡樂的度假勝地。

So with Thanksgiving right around the corner, guest shopping for food and beverage area will discover how we're helping families celebrate with a Thanksgiving meal that includes all the family favorites for under $25, featuring $0.99 per pound Good & Gather turkeys and the must-have sides for just $5. As they explore our assortment, guests will discover exciting gifting options for every loved one.

因此，隨著感恩節即將到來，在食品和飲料區購物的客人將了解我們如何幫助家庭慶祝感恩節大餐，其中包括所有家庭喜愛的食物，價格低於25 美元，其中包括每磅0.99 美元的Good & Gather 火雞和必備的-配菜只需 5 美元。當客人探索我們的產品系列時，他們會發現為每位所愛的人提供令人興奮的禮物選擇。

In toys, guests will find the characters and items their kids want at prices designed to fit every budget, with over 2/3 of this season's toy assortment priced under $25. In addition, around 1 in 4 toy items is a Target exclusive, featuring everyone's favorite properties, including Barbie, Paw Patrol, Pokemon, Marvel, Teenage Mutant Ninja Turtles, LEGO and so much more. And so far, among the most popular toys in our assortment are All Things Target, including plush Bullseye dogs, Barbie First Job at Target Dolls and Target cash register and shopping cart toys, a nod to the Target brand love, even among our youngest guests.

在玩具中，客人可以找到孩子想要的角色和物品，而且價格適合各種預算，本季超過 2/3 的玩具品種價格低於 25 美元。此外，大約四分之一的玩具商品是 Target 獨家產品，包含每個人最喜歡的玩具，包括芭比娃娃、狗狗巡邏隊、寶可夢、漫威、忍者龜、樂高等等。到目前為止，我們品種中最受歡迎的玩具包括All Things Target，包括毛絨靶心狗、Target 娃娃的芭比第一份工作以及Target 收銀機和購物車玩具，這是對Target 品牌喜愛程度的認可，甚至受到我們最小的客人的喜愛。

And back by popular demand, we have an exciting array of toys from FAO Schwarz, including only-at-Target exclusives with 50% of the assortment under $20. With so many options to choose from, we are making it easier than ever to help narrow in on what will bring the biggest smiles this holiday season through exciting in-store displays and experiences. And on target.com as well as the Target app, guests can immerse themselves in a digital 360-degree room filled with the hottest toys for kids of all ages to try before they buy.

為了滿足大眾的需求，我們推出了一系列來自FAO Schwarz 的令人興奮的玩具，其中包括Target 獨家發售的玩具，其中50% 的品種低於20 美元。有這麼多的選擇，我們比以往任何時候都更容易透過令人興奮的店內展示和體驗來幫助縮小這個假期季節最大微笑的範圍。在 target.com 和 Target 應用程式上，客人可以沉浸在一個 360 度數位房間裡，裡面擺滿了最熱門的玩具，供所有年齡段的孩子在購買前試用。

When the presents are taken care of, it will be time to deck the halls, and we're offering an array of holiday decor at even lower prices than ever before. Nearly 2/3 of the assortment will be priced under $20 with in-store and digital signing and displays, making it easy for guests to see how they can refresh their holiday decor affordably with $15 ornament sets, family baking solutions and Mondo Llama craft sets, $10 throw pillows and tree skirts and still much more.

禮物處理完畢後，就該裝飾大廳了，我們將以比以往更低的價格提供一系列節日裝飾。近2/3 的產品系列售價將低於20 美元，並提供店內數位簽名和展示，讓客人輕鬆了解如何以經濟實惠的價格使用15 美元的裝飾品套裝、家庭烘焙解決方案和Mondo Llama 工藝品套裝來更新節日裝飾、 10 美元的抱枕和樹裙等等。

And of course, the season is all about gathering with loved ones. Guests will find all the best entertaining, gifting and gathering solutions in this year's assortment, and we're launching more than 100 new items in Good & Gather and Favorite Day, with over half of these priced under $5.

當然，這個季節就是與親人聚會的季節。客人將在今年的產品系列中找到所有最好的娛樂、送禮和聚會解決方案，我們在 Good & Gather 和 Favourite Day 中推出了 100 多種新商品，其中一半以上的價格低於 5 美元。

Throughout the holiday season, guests can rest assured that they'll get the best price and quality, wherever and however they shop. We'll be offering incredible deals leading up to Black Friday, including 4 weeks of deals on tens of thousands of items with many up to 50% off. Target Circle members will receive exclusive promotions and offers to reward and deepen their love of All Things Target. Plus, we've added more personalization than ever before, giving them even more options to earn rewards. And of course, we'll offer our season-long price match guarantee, which assures guests that no matter when they shop, they'll get the best price of the season.

在整個假期期間，客人可以放心，無論他們在哪裡、以何種方式購物，他們都可以獲得最優惠的價格和品質。我們將在黑色星期五之前提供令人難以置信的優惠，包括數萬種商品為期 4 週的優惠，其中許多商品最高可享受 50% 的折扣。 Target Circle 會員將獲得獨家促銷和優惠，以獎勵和加深他們對 All Things Target 的熱愛。此外，我們還添加了比以往更多的個人化功能，為他們提供了更多賺取獎勵的選擇。當然，我們將提供整個季節的價格匹配保證，這向客人保證，無論何時購物，他們都會獲得當季的最優惠價格。

The holidays are so special to so many families, and they are made even brighter by everything our team members do for our guests and for each other. I'm so inspired by how each of our teams from marketing to merchandising to stores to supply chain are bringing their best to create something truly magical and uniquely target this holiday season. I want to thank the entire Target team around the world for being the not-so-secret weapon that will help us to win the holiday season.

對於許多家庭來說，這個假期是如此特別，我們的團隊成員為我們的客人和彼此所做的一切讓假期變得更加美好。我們的每個團隊，從行銷、銷售、商店到供應鏈，都竭盡全力創造出真正神奇且針對這個假期的獨特產品，這讓我深受啟發。我要感謝世界各地的整個塔吉特團隊，他們是幫助我們贏得假期的不那麼秘密的武器。

As I get ready to end my remarks, John, I want to pause and thank you and acknowledge your countless contributions to the Target brand and team. I've greatly appreciated getting to work alongside you for so many years and know your legacy will be felt for many more.

約翰，當我準備結束演講時，我想暫停一下，感謝您並感謝您對塔吉特品牌和團隊做出的無數貢獻。我非常感謝能與您一起工作這麼多年，並且知道您的遺產將讓更多人感受到。

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

這樣，我就把電話轉給你。

Thanks, Christina. Over the last 3.5 years, our operations have continually faced unusual and rapidly changing external conditions. In 2020 and 2021, after the onset of the pandemic, we couldn't secure enough inventory to satisfy the explosion in demand for our products, and we saw operating margin rates grow well beyond normal levels. Then in early 2022, the period of rapid growth in discretionary categories suddenly reversed, and we quickly moved from having too little inventory to having way too much. As a result, both our distribution centers and store backrooms filled up well beyond optimal levels and operating margin rates quickly moved to historical lows.

謝謝，克里斯蒂娜。在過去 3.5 年裡，我們的營運不斷面臨不尋常且快速變化的外部條件。 2020年和2021年，疫情爆發後，我們無法獲得足夠的庫存來滿足產品需求的爆炸性增長，我們看到營業利潤率的增長遠遠超出了正常水平。然後到了2022年初，非必需品類的快速成長時期突然逆轉，我們很快就從庫存太少變成了庫存太多。結果，我們的配送中心和商店庫房的人滿為患，遠遠超出了最佳水平，營業利潤率迅速降至歷史低點。

So this year, as Brian mentioned, a key priority was to optimize our inventory position so it was better aligned to the current size and growth rate of our business. We were confident that if we were successful in that effort, our operations will become more efficient, markdowns will come back down, and we'd see our profit rate recover back toward more sustainable long-term levels. And through the first 3 quarters of the year, despite unexpectedly soft top line trends, the team has delivered a more rapid recovery in our profitability than we'd even planned at the beginning of the year.

因此，正如布萊恩所提到的，今年的首要任務是優化我們的庫存狀況，以便更好地適應我們目前的業務規模和成長率。我們相信，如果我們在這方面取得成功，我們的營運將變得更加高效，降價將會回落，我們將看到我們的利潤率恢復到更可持續的長期水平。今年前三個季度，儘管收入趨勢出人意料地疲軟，但該團隊的盈利能力恢復速度比我們年初的計劃還要快。

Looking ahead, we've maintained this cautious inventory posture and planning for the fourth quarter as well. More specifically, at the end of the third quarter, total inventory on our balance sheet was 14% lower than a year ago with discretionary category inventory down 19%. And importantly, while this ending inventory position was 29% higher than at the end of Q3 2019, that's aligned with growth we've seen on the sales line over those 4 years, making us feel really good about both the size and the health of our inventory position as we enter the holiday season.

展望未來，我們仍保持謹慎的庫存態勢，並對第四季進行規劃。更具體地說，在第三季末，我們資產負債表上的總庫存比去年同期下降了 14%，其中非必需類別庫存下降了 19%。重要的是，雖然期末庫存狀況比 2019 年第三季末高出 29%，但這與我們在這 4 年裡看到的銷售線增長相符，讓我們對規模和健康狀況感到非常滿意進入假期時我們的庫存狀況。

In addition, even though we own a lot less inventory than a year ago, the team has delivered meaningfully improved reliability and in-stock metrics this year, and they made additional progress in Q3. More specifically, overall in-stocks in the third quarter improved nearly 1 percentage point compared with Q2 and more than 3 percentage points from a year ago. And notably, in-stocks in our highest volume stores saw an even greater year-over-year improvement.

此外，儘管我們擁有的庫存比一年前少了很多，但該團隊今年的可靠性和庫存指標顯著提高，並且在第三季度取得了額外進展。具體來說，第三季整體庫存較第二季提高近1個百分點，較去年同期提高超過3個百分點。值得注意的是，我們銷量最高的商店的庫存同比出現了更大的增長。

In terms of our top-selling items, while the in-stock rate remained consistent between Q2 and Q3, that was after we grew the size of that list by about 75%, meaning that today, our top item list accounts for more than 1/3 of our total sales. Beyond these broader metrics, we also saw meaningful improvements in our seasonal in-stocks and a more than 6 percentage point improvement in new item in-stocks.

就我們最暢銷的商品而言，雖然第二季和第三季的庫存率保持一致，但那是在我們將該清單的規模擴大了約75% 之後，這意味著今天我們的熱門商品清單佔了超過 1我們總銷售額的/3。除了這些更廣泛的指標之外，我們還發現季節性庫存有了顯著的改善，新商品庫存也有了超過 6 個百分點的改善。

In our smaller stores, which on average have less shelf capacity and turn faster than the chain, in-stocks have improved by more than 2 percentage points between the first and third quarters. And today, our in-stock levels in those stores are slightly better than the overall chain. And finally, in the digital channel, the percent of items available for purchase has improved by more than 2 points compared with last year, reflecting an improvement of nearly 8 percentage points in Apparel.

在我們規模較小的商店中，平均貨架容量較小，週轉速度也比連鎖店快，第一季和第三季之間的庫存量增加了 2 個百分點以上。如今，我們這些商店的庫存水準略好於整個連鎖店。最後，在數位管道中，可購買商品的百分比與去年相比提高了超過 2 個百分點，反映出服裝領域提高了近 8 個百分點。

Beyond the work of our team to deliver these outstanding improvements, we're benefiting from a more than 2-week reduction of import lead times compared with last year and a nearly 10 percentage point improvement in purchase order fill rates compared with a year ago. And with the combined benefit of a faster supply chain and a simultaneous reduction in inventory levels, all of our supply chain facilities stayed at or below our desired capacity thresholds through all 13 weeks of the third quarter this year compared with only 3 of 13 weeks in Q3 of 2022. So while we'll continue to focus on ways to consistently deliver higher in-stocks and reliability, I'm incredibly proud of what our team has accomplished so far this year.

除了我們團隊努力實現這些顯著改進之外，我們還受益於進口交貨時間比去年縮短了兩週多，採購訂單履行率比一年前提高了近 10 個百分點。憑藉更快的供應鏈和同時降低庫存水準的綜合效益，我們所有的供應鏈設施在今年第三季的全部13 週內都保持在或低於我們期望的產能閾值，而去年第三季的13周中只有3 週。2022 年第三季。因此，雖然我們將繼續專注於持續提供更高庫存和可靠性的方法，但我對我們團隊今年迄今為止所取得的成就感到非常自豪。

So now before I turn the call over to Michael, I want to highlight how our team continues to deliver on their efforts to improve execution of everyday retail fundamentals as we prepare for the busiest shopping season of the year. One of the key areas of focus for our store teams this year was to ensure priority items remained available on our sales floors throughout the day. And this year, through these efforts, we've increased the amount of inventory available on our sales floors by more than $0.25 billion.

因此，在我將電話轉給邁克爾之前，我想強調一下，在我們為一年中最繁忙的購物季節做準備的同時，我們的團隊如何繼續努力提高日常零售基本面的執行力。今年我們商店團隊關注的關鍵領域之一是確保優先商品全天在我們的銷售樓層上保持可用。今年，透過這些努力，我們銷售大廳的可用庫存量增加了超過 2.5 億美元。

In addition, we've seen improvements in metrics relating to backroom inventory accuracy and the percent of new assortments set on time. In the digital channel, the percentage of orders picked and shipped on time and the average Drive-Up wait time have all improved from last year. Also in support of the digital business, the percent of items ordered but not found has declined from a year ago, meaning that we are fulfilling more items per order and canceling fewer, a key factor in guest satisfaction.

此外，我們還看到與後台庫存準確性和新品種準時設定百分比相關的指標有所改善。在數位管道中，按時提貨和發貨的訂單百分比以及平均駕車等待時間均較去年有所改善。同樣是為了支持數位業務，已訂購但未找到的商品百分比較一年前有所下降，這意味著我們為每個訂單配送了更多商品並取消了更少商品，這是提高客戶滿意度的關鍵因素。

Since our goal is for Target to be the easiest place for our guests to shop, our teams have been focused on the front of store experience with the goal of providing consistently great service through the in-store checkout experience, along with drive-up and in-store pickup. And because our guests tell us they enjoy interacting with our team, since we've refocused on the front-end experience, we've seen more than a 6 percentage point increase in the usage of full service lanes across the chain. And we've seen sustained month-over-month improvement in the Net Promoter Score relating to interactions with our team at checkout. In addition, compared with last year, we've seen improvements in Net Promoter Scores for both Drive Up and in-store pickup on top of already high levels a year ago.

由於我們的目標是讓 Target 成為客人購物最便捷的場所，因此我們的團隊一直專注於店面體驗，目標是透過店內結帳體驗以及免下車和送貨服務提供始終如一的優質服務。店內取貨。因為我們的客人告訴我們，他們喜歡與我們的團隊互動，因為我們重新關注前端體驗，所以我們發現整個連鎖店的全套服務通道的使用率增加了 6 個百分點以上。我們發現，與結帳時與我們團隊的互動相關的淨推薦值逐月持續提高。此外，與去年相比，我們發現 Drive Up 和店內取貨的淨推薦值在一年前已經很高的水平上有所提高。

Beyond the front of store, in support of our efforts to highlight value and affordability, our team has been working to increase the number of store end caps featuring 1 or 2 price points. As a result, going into this holiday season, nearly 2/3 of our end caps were meeting the standard and conveying a simple, compelling and easy-to-understand value message.

除了店面之外，為了支持我們強調價值和可負擔性的努力，我們的團隊一直在努力增加具有 1 或 2 個價格點的商店端蓋的數量。因此，進入這個假期季節，我們近 2/3 的端蓋都達到了標準，並傳達了簡單、引人注目且易於理解的價值訊息。

Finally, I want to provide a quick update on our goal of hiring 100,000 seasonal team members to join our team and provide a great guest experience during the holiday season. I'm happy to report that our hiring stats this year have improved relative to last year. I'm confident our entire team will be energized and ready to support our guests throughout the busiest season of the year.

最後，我想快速介紹我們的目標，即僱用 100,000 名季節性團隊成員加入我們的團隊，並在假期期間提供出色的賓客體驗。我很高興地報告，今年我們的招募統計數據比去年有所改善。我相信我們的整個團隊將充滿活力並準備好在一年中最繁忙的季節為我們的客人提供支持。

So now as I get ready to turn the call over to Michael, I want to quickly thank all of you for your continued interest and engagement with Target. I've been fortunate to meet and interact with many of you over the years beginning with my time as CFO and continuing with my time leading operations. I also want to say to the entire Target team, thank you for everything I've learned from you, for your enduring passion for retail and for your love of this iconic brand. I'll continue to be a huge supporter of this company and this team when I'm no longer on these calls. Because of all of you, I know that the company and our guests are in very good hands, and I'll be cheering on your efforts from the sidelines.

現在，當我準備將電話轉給邁克爾時，我想快速感謝大家對 Target 的持續關注和參與。從我擔任財務長開始，一直到領導營運工作，這些年來，我很幸運能夠與你們中的許多人見面並互動。我還想對整個塔吉特團隊說，感謝你們從你們身上學到的一切，感謝你們對零售業持久的熱情以及你們對這個標誌性品牌的熱愛。當我不再參加這些電話會議時，我將繼續成為這家公司和這個團隊的大力支持者。因為你們所有人，我知道公司和我們的客人都得到了很好的照顧，我會在場外為你們的努力喝采。

Now I'll turn the call over to Michael.

現在我將把電話轉給麥可。

Thanks, John. Before I begin my formal remarks, I want to thank you for the positive impact you've made on this company, our strategy, our team and on me personally. I've been fortunate to work with you and learn from you since I first arrived at Target 20 years ago.

謝謝，約翰。在開始正式發言之前，我要感謝您對公司、我們的策略、我們的團隊以及我個人所產生的正面影響。自從 20 年前我第一次來到 Target 以來，我很幸運能夠與您共事並向您學習。

In the third quarter, total revenue was down 4.2%, reflecting a 4.3% decline in total sales and a 0.6% decline in other revenue. Within the other revenue line, declines in credit card revenue and a few smaller items were nearly offset by growth in Roundel ad revenue. Among the drivers of our third quarter comparable sales, traffic was down 4.1%, combined with a 0.8% decrease in average ticket.

第三季總營收下降4.2%，反映總銷售額下降4.3%，其他營收下降0.6%。在其他收入項目中，信用卡收入和一些較小項目的下降幾乎被 Roundel 廣告收入的成長所抵消。在第三季可比較銷售額的推動因素中，客流量下降了 4.1%，平均票價下降了 0.8%。

While we're encouraged that our Q3 comp trend improved 0.5 point compared with Q2 and the traffic trend recovered a little bit faster, we're not at all satisfied with this result, and we're laser-focused on moving both traffic and sales trends back into positive territory. As Christina mentioned, our guests continue to shop around seasonal moments. So not surprisingly, Q3 comp performance was strongest around the Back-to-School and Back-to-College seasons. For the remainder of the quarter, we saw variability week by week with periods of relative strength around promotions.

雖然我們對第三季度的比較趨勢比第二季度提高了 0.5 個百分點並且流量趨勢恢復得更快一點感到鼓舞，但我們對此結果一點也不滿意，我們專注於移動流量和銷售趨勢回到積極的領域。正如克里斯蒂娜所提到的，我們的客人繼續在季節性時刻購物。因此，毫不奇怪，第三季的業績表現在返校季和返校季期間最為強勁。在本季度的剩餘時間裡，我們看到每週都有變化，促銷活動相對強勢。

Our third quarter gross margin rate of 27.4% was more than 2.5 points better than last year, driven by multiple benefits within merchandising, including meaningfully lower freight costs and favorable clearance markdowns. In addition, we benefited from year-over-year favorability in digital fulfillment and supply chain costs. And perhaps, surprisingly, merchandise mix drove a small rate benefit compared with last year as we continue to benefit from growth in higher-margin categories like Beauty and we saw the softest performance in very low-margin categories, like electronics.

我們第三季的毛利率為 27.4%，比去年提高了 2.5 個百分點以上，這得益於商品銷售方面的多重優勢，包括顯著降低的貨運成本和有利的清關降價。此外，我們也受惠於數位履行和供應鏈成本的同比優勢。也許令人驚訝的是，與去年相比，商品組合帶來了小幅的利率收益，因為我們繼續受益於美容產品等利潤率較高的類別的增長，而電子產品等利潤率極低的類別的表現最為疲軟。

Partially offsetting these tailwinds, the rising cost of inventory shrink represented a 40 basis point headwind to our third quarter gross margin rate. While we're encouraged that this impact was smaller than expected and better than we faced earlier in the year, growth in shrink remains a significant financial headwind, and we're determined to continue making progress in the years ahead.

庫存縮減成本的上升對我們第三季的毛利率造成了 40 個基點的阻力，部分抵銷了這些不利因素。雖然我們感到鼓舞的是，這種影響比預期要小，而且比我們今年早些時候所面臨的要好，但萎縮的增長仍然是一個重大的財務阻力，我們決心在未來幾年繼續取得進展。

While our Q3 guidance anticipated significant improvement in our gross margin rate, our actual performance was well above our expectations as the team delivered greater-than-expected progress on several fronts. At the top of that list is their continued agility in managing inventory, which delivered compelling benefits on both the gross margin and SG&A expense lines.

雖然我們的第三季指導預期毛利率將顯著改善，但我們的實際業績遠高於我們的預期，因為團隊在多個方面取得了超出預期的進展。其中最重要的是他們在庫存管理方面的持續敏捷性，這在毛利率和銷售、一般行政費用方面都帶來了引人注目的效益。

In addition, our team's ongoing efforts to identify long-term efficiency opportunities is already contributing to this quarter's better-than-expected performance. Beyond those drivers, a couple of macro factors came in better than expected including freight costs and the impact of inventory shrink.

此外，我們團隊也不斷努力尋找長期效率機會，已經為本季的業績優於預期做出了貢獻。除了這些驅動因素之外，一些宏觀因素的表現也優於預期，包括貨運成本和庫存縮減的影響。

On the SG&A line, our third quarter rate of 20.9% was just over 1 percentage point higher than last year. This growth reflected cost increases throughout our business, including continued investments in our team, along with the deleveraging impact of lower sales, partially offset by disciplined cost management throughout the organization. Our Q3 depreciation and amortization expense rate of 2.4% was about 10 basis points higher than a year ago, reflecting dollar growth of about 3%.

在 SG&A 線上，我們第三季的比率為 20.9%，比去年高出 1 個百分點多一點。這種成長反映了我們整個業務的成本增加，包括對團隊的持續投資，以及銷售額下降的去槓桿化影響，但整個組織嚴格的成本管理部分抵消了這一影響。我們第三季的折舊和攤銷費用率為 2.4%，比去年同期高出約 10 個基點，反映出美元成長率約為 3%。

Altogether, our third quarter operating margin rate of 5.2% was more than a percentage point higher than last year. And notably, this year's rate was only about 20 basis points lower than the 5.4% our business delivered prior to the pandemic in the third quarter of 2019 despite the cumulative 110 basis point drag from shrink we faced since then.

總的來說，我們第三季的營業利潤率為 5.2%，比去年高出一個百分點以上。值得注意的是，今年的利率僅比 2019 年第三季疫情爆發前的 5.4% 低約 20 個基點，儘管自那以來我們面臨著累計 110 個基點的萎縮拖累。

Also important, given the growth in revenue that our team has delivered over that 4-year period, this year's Q3 operating margin dollars were more than 30% higher than in 2019. As a result, on the bottom line, both GAAP and adjusted earnings per share of $2.10 in this year's third quarter were more than 36% ahead of last year and more than 50% higher than in 2019.

同樣重要的是，考慮到我們團隊在這 4 年期間實現的收入成長，今年第三季的營業利潤率比 2019 年高出 30% 以上。因此，從底線來看，GAAP 和調整後收益今年第第三季每股收益為2.10美元，比去年同期成長了36%以上，比2019年成長了50%以上。

Important to note, while the backdrop today remains tough, because of the long-term investments we continue to make and the efforts of our team to identify efficiency opportunities throughout our business, we have a lot more opportunity to grow both our top line and increase our profitability in the years ahead. And our team is already delivering strong profit performance, both compared to a year ago and versus our longer-term history as well.

值得注意的是，雖然今天的背景仍然嚴峻，但由於我們繼續進行長期投資以及我們的團隊在整個業務中尋找效率機會的努力，我們有更多的機會來增加我們的收入並增加收入。我們未來幾年的盈利能力。與一年前相比以及與我們的長期歷史相比，我們的團隊已經實現了強勁的利潤表現。

Now I'll turn to capital deployment and reiterate our priorities, which have remained consistent for decades. We first look to fully invest in projects that meet our strategic and financial criteria. Then we look to support the dividend and build on our record of annual increases, which we've maintained for more than 50 years. And finally, we deploy any excess cash within the limits of our middle A credit ratings through share repurchase over time.

現在我將轉向資本部署並重申我們的優先事項，這些優先事項幾十年來一直保持不變。我們首先希望充分投資符合我們策略和財務標準的項目。然後，我們希望支持股息並在我們保持了 50 多年的年度成長記錄的基礎上再接再厲。最後，我們將透過隨著時間的推移進行股票回購，在中等 A 信用評級的範圍內部署任何多餘的現金。

Regarding the first priority, capital investment through the first 3 quarters of the year was just under $4 billion, and we expect full year CapEx will be near the high end of the $4 billion to $5 billion range we laid out for the year. While we're still in the early stages of developing next year's capital plan, our current expectation is that next year's CapEx will be somewhat lower than this year in the $3 billion to $4 billion range, reflecting our current view of the optimal timing for key investments we're planning over the next several years. Regarding our second capital priority, we paid dividends of just over $0.5 billion in Q3, $10 million higher than last year, reflecting a per share dividend increase of 1.9%.

關於第一個優先事項，今年前三個季度的資本投資略低於 40 億美元，我們預計全年資本支出將接近我們為今年制定的 40 億至 50 億美元區間的上限。雖然我們仍處於製定明年資本計畫的早期階段，但我們目前的預期是，明年的資本支出將略低於今年，在30 億至40 億美元的範圍內，反映了我們目前對關鍵投資最佳時機的看法。我們計劃在未來幾年進行投資。關於我們的第二個資本優先事項，我們在第三季支付了略高於 5 億美元的股息，比去年增加了 1,000 萬美元，每股股息成長了 1.9%。

Regarding the last priority, we didn't repurchase any shares in the third quarter as we continue to focus on strengthening our balance sheet and restoring our debt metrics to levels that support our middle A credit ratings. And we continue to make meaningful progress on that journey as the combined benefits of higher profits and lower working capital have led to a meaningful improvement in operating cash flow. More specifically, our operations have generated more than $5.3 billion in cash through the first 3 quarters of the year, up dramatically from about $550 million through the first 3 quarters of 2022.

關於最後一個優先事項，我們在第三季度沒有回購任何股票，因為我們繼續專注於加強我們的資產負債表並將我們的債務指標恢復到支持我們的中等 A 信用評級的水平。我們繼續在這過程中取得有意義的進展，因為更高的利潤和更低的營運資本的綜合效益導致了營運現金流的顯著改善。更具體地說，我們的業務在今年前 3 季創造了超過 53 億美元的現金，較 2022 年前 3 季的約 5.5 億美元大幅成長。

As always, I'll conclude my review of the quarter with our trailing 12-month after-tax ROIC, which was 13.9% in the third quarter, down from 14.6% a year ago. While an after-tax return in the low teens is quite healthy in absolute terms, it's meaningfully lower than the returns we expect to deliver over time. Importantly, we've seen sequential improvement in this metric over the last couple of quarters, and we're focused on continuing that momentum in the years ahead.

與往常一樣，我將以過去 12 個月的稅後 ROIC 來結束本季的回顧，第三季的 ROIC 為 13.9%，低於一年前的 14.6%。雖然從絕對值來看，稅後回報率在十幾歲以下是相當健康的，但它明顯低於我們預期隨著時間的推移提供的回報率。重要的是，我們在過去幾個季度中看到了這一指標的連續改善，並且我們致力於在未來幾年繼續保持這一勢頭。

Now I'll turn to our guidance for the fourth quarter. On the top line, our expectations reflect our continued near-term caution, leading us to maintain our prior guidance for a mid-single-digit decline in Q4 comparable sales. On the bottom line, we're also maintaining a cautious posture, particularly because the fourth quarter is typically a very promotional season. As such, we're planning a wide range for our fourth quarter EPS of $1.90 to $2.60, which represents approximately flat growth to last year on the low end and growth of about 37% on the high end.

現在我將談談我們對第四季的指導。在最重要的方面，我們的預期反映了我們近期持續的謹慎態度，這導致我們維持先前對第四季度可比較銷售額中個位數下降的指導。歸根結底，我們也保持謹慎的態度，特別是因為第四季通常是一個非常促銷的季節。因此，我們計劃將第四季度每股收益設定在 1.90 美元至 2.60 美元之間，這意味著低端與去年基本持平，高端增長約 37%。

I also want to note that 2023 is a 53-week year. So the fourth quarter will include an extra week of sales and profits. We estimate that extra week will add about $1.7 billion in sales and result in about 30 basis points of operating margin rate leverage on the quarter. Note that it will not affect our comparable sales as we base that calculation on periods of equal length.

我還想指出，2023 年是 53 週的一年。因此，第四季將包括額外一周的銷售額和利潤。我們預計，額外一週的銷售額將增加約 17 億美元，並導致本季營業利潤率槓桿率提高約 30 個基點。請注意，這不會影響我們的可比較銷售額，因為我們是根據相同長度的期間進行計算的。

On top of the results, our team has already delivered through Q3, our fourth quarter guidance implies a full year EPS range that's very close to the original guidance range we provided at the beginning of the year, with a midpoint less than $0.05 from the center of the original range. That's an amazing outcome against the backdrop of a tougher-than-expected top line, and it's a testament to the tireless efforts of our team to stay nimble and successfully navigate through a volatile and unpredictable period.

除了結果之外，我們的團隊已經在第三季度交付了成果，我們的第四季度指導意味著全年 EPS 範圍非常接近我們年初提供的原始指導範圍，中點距中心不到 0.05 美元的原始範圍。在營收比預期艱難的背景下，這是一個令人驚嘆的結果，證明了我們團隊為保持靈活性並成功度過動盪和不可預測的時期而做出的不懈努力。

In fact, given how strong our profit rate performance has been so far this year, we've been getting some questions about whether we're only focused on increasing our profit rate, and I want to pause and address that question head on. As John mentioned earlier, coming into this year, we were confident our team would deliver a significant increase in our profit rate by achieving better alignment between our inventory and our sales. In addition, a year ago, we first talked about the significant long-term efficiency opportunities we're pursuing, given that we've grown our revenue to more than $100 billion per year.

事實上，考慮到今年迄今為止我們的利潤率表現有多強勁，我們已經收到了一些關於我們是否只專注於提高利潤率的問題，我想暫停並正面解決這個問題。正如約翰之前提到的，進入今年，我們相信我們的團隊將透過實現庫存和銷售之間更好的協調來顯著提高我們的利潤率。此外，一年前，我們首次討論了我們正在追求的重要的長期效率機會，因為我們的收入已成長到每年超過 1000 億美元。

While that work is still in its early stages, the team has already delivered hundreds of millions of dollars of efficiency savings so far this year, significantly benefiting our profitability. But I want to make it clear, we are focused on growing profit dollars. And if we saw an opportunity to invest a portion of our current profit rate to gain sustainable long-term growth in dollars, we would gladly do that. Even more fundamentally, our first priority is to deliver long-term top line growth because the only way a retailer can sustainably deliver bottom line growth is by delivering top line growth as well.

雖然這項工作仍處於早期階段，但今年到目前為止，該團隊已經實現了數億美元的效率節省，大大提高了我們的獲利能力。但我想澄清的是，我們專注於增加利潤。如果我們看到有機會投資當前利潤率的一部分來獲得美元的可持續長期增長，我們會很樂意這樣做。更根本的是，我們的首要任務是實現長期的營收成長，因為零售商可持續實現營收成長的唯一方法就是實現營收成長。

At the same time, we're not interested in making any investments that might boost the top line in the short term, but which wouldn't lead to any sustainable growth. In fact, our experience has shown that many times, those kinds of short-term decisions are actually harmful over time.

同時，我們對進行任何可能在短期內提高收入但不會帶來任何可持續成長的投資不感興趣。事實上，我們的經驗表明，很多時候，隨著時間的推移，這類短期決策實際上是有害的。

So today, we remain focused on the long-term strategies that have been so successful in driving top line growth over the last half decade, including our work to enhance our assortment of both owned brands and national brands, our investments in our store assets and our team to deliver a reliable and differentiated shopping experience, investments in new stores and markets we've not previously served and in existing stores to keep them fresh and enhancing our digital experience, beginning with the website and Target app, all the way through to the fulfillment services we provide.

因此，今天，我們仍然專注於在過去五年中成功推動營收成長的長期策略，包括我們加強自有品牌和民族品牌品種的工作、我們對商店資產的投資以及我們的團隊致力於提供可靠且差異化的購物體驗，對我們以前未曾服務過的新商店和市場以及現有商店進行投資，以保持新鮮感並增強我們的數位體驗，從網站和Target 應用程式開始，一直到我們提供的履行服務。

As we pursue those long-term initiatives, we also have opportunity to further grow our operating margin rate in the years ahead, and we don't believe those efforts are incompatible with each other. But more directly, based on where we are today, we believe we can successfully deliver both top line growth and rate improvement over time.

在我們追求這些長期措施的同時，我們還有機會在未來幾年進一步提高我們的營業利潤率，而且我們認為這些努力並不相互矛盾。但更直接地說，根據我們今天的情況，我們相信隨著時間的推移，我們能夠成功實現收入成長和利率提高。

And as always, the basis for my confidence starts and ends with the Target team. They have delivered unprecedented growth over the last several years. And this year, they've made amazing progress in moving our profitability back toward the optimal level, all while focusing on building and maintaining long-term relationships with our guests. Our team is truly the best team in retail.

像往常一樣，我信心的基礎始於和終於於 Target 團隊。他們在過去幾年中實現了前所未有的成長。今年，他們在將我們的盈利能力恢復到最佳水平方面取得了驚人的進展，同時專注於與客人建立和維持長期關係。我們的團隊確實是零售業最好的團隊。

Now I'll turn the call back over to Brian.

現在我將把電話轉回給布萊恩。

Thanks, Michael. Before we turn to your questions, I want to pause and acknowledge John's incredible record of service to Target and thank him for his profound impact he's had on this company. I'm sure he'll be glad to know I'm not planning to recap his entire 27-year career this morning. But I do want to highlight the impact he's had since I arrived in 2014, an impact that literally began on my first day when John handed me a large binder, a recap of the comprehensive strategy review he and the Board conducted during his time as interim CEO.

謝謝，麥可。在我們回答你的問題之前，我想暫停一下，承認約翰為塔吉特做出的令人難以置信的服務記錄，並感謝他對這家公司的深遠影響。我確信他會很高興知道我今天早上不打算回顧他整個 27 年的職業生涯。但我確實想強調自2014 年我加入以來他所產生的影響，這種影響實際上從我第一天就開始了，當時約翰遞給我一個大活頁夾，回顧了他和董事會在臨時任期期間進行的全面策略審查。 CEO。

That body of work was an invaluable resource that allowed me to hit the ground running. It serves as a blueprint for all the strategic changes we made in those early years. One of those changes was the creation of a Chief Operating Officer role, the first time we've had one at Target. And while John was already an outstanding CFO, I knew he was the right person for this new position. Since becoming COO in 2015, and John has led the transformation of our store portfolio from new stores or remodels through the operating model within those buildings.

這些工作是寶貴的資源，使我能夠立即開始工作。它是我們早年所做的所有策略變革的藍圖。其中一個變化是設立了營運長一職，這是塔吉特首次設立營運長。雖然約翰已經是一位出色的財務官，但我知道他是擔任這個新職位的合適人選。自 2015 年成為營運長以來，John 領導了我們商店組合的轉型，從新建商店或改造到這些建築內的營運模式。

Similarly, John is leading the transformation of our upstream supply chain completely changing the way our distribution network serves our stores. And of course, John's team developed and implemented our stores as hub strategy. When we launched stores as hubs, it was a completely unique approach in retail. It's a model that has changed the way we serve our guests, including Drive-Up service, now accounts for well over $7 billion in annual sales, $7 billion is larger than the total sales of some other prominent retailers.

同樣，約翰正在領導我們上游供應鏈的轉型，徹底改變我們的分銷網絡為商店提供服務的方式。當然，約翰的團隊制定並實施了我們的商店作為中心策略。當我們推出商店作為中心時，這是一種完全獨特的零售方式。這種模式改變了我們為客人服務的方式，其中包括免下車服務，目前年銷售額遠超 70 億美元，這 70 億美元比其他一些知名零售商的總銷售額還要高。

But beyond the tangible operational changes John has led, it's his focus on team development and its impact on individual leaders that's been the most notable. John has served as both a formal and informal mentor to countless members of our team, and he's hired and developed an extraordinary group of leaders, including Mark Schindele in our stores and Gretchen McCarthy in our supply chain, both of whom are ready and well prepared to continue leading the work after John steps down.

但除了約翰領導的切實的營運變革之外，最引人注目的是他對團隊發展及其對個人領導者的影響的關注。約翰曾擔任我們團隊無數成員的正式和非正式導師，他聘請並培養了一批出色的領導者，包括我們商店中的馬克·辛德勒（Mark Schindele）和我們供應鏈中的格雷琴·麥卡錫（Gretchen McCarthy），他們都已經做好了充分的準備約翰卸任後繼續領導工作。

Perhaps the strongest complement I can pay John is to say he will be missed as a colleague, and I will personally miss his partnership. But I know our operations will not miss a beat given how masterfully he's prepared everyone around him. And that goes for me, too. Since the day I arrived, John has been a trusted adviser, whose only goal was to do what was best for our guests, for this great company and for our team.

也許我能給約翰的最有力的補充就是說我會懷念他作為同事，我個人也會懷念他的夥伴關係。但我知道我們的行動不會錯過任何一個節拍，因為他為周圍的每個人做好了充分的準備。這也適合我。從我到達的那天起，約翰就一直是一位值得信賴的顧問，他唯一的目標就是為我們的客人、這家偉大的公司和我們的團隊做最好的事情。

I should also reiterate that John will remain in his role through the end of this fiscal year and has agreed to continue in advisory role until February of 2025. We'll share additional information on our succession plans for John early next year. I'm sure I speak for all of us when I sincerely thank John for all he's done for Target and wish him only the best in his retirement.

我還應該重申，約翰將在本財年結束前繼續擔任他的職務，並同意繼續擔任顧問職務直至 2025 年 2 月。我們將在明年初分享有關約翰繼任計劃的更多信息。當我真誠地感謝約翰為塔吉特所做的一切並祝他退休後一切順利時，我確信我代表了我們所有人。

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

接下來，我們將轉向問答環節。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 Robby Ohmes with Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 Robby Ohmes。

First, I just want to say congrats to Brian and team Target on a great quarter in a really tough environment and to John Mulligan on just everything you've accomplished working at Target. But then my question is actually for Mr. Fiddelke. I was hoping that you could talk to us about how to think about the puts and takes on gross margin differences in, say, 4Q versus 3Q. You mentioned shrink was a little better. How should we think about that for the fourth quarter, also freight versus what you saw in the third quarter? What inventory management could bring in expectations for markdown ranges that we should think about for the fourth quarter, say, versus the third quarter, to give us something to think about.

首先，我只想祝賀 Brian 和 Target 團隊在非常艱難的環境中取得了出色的季度業績，並祝賀 John Mulligan 在 Target 工作中取得的一切成就。但我的問題其實是問菲德爾克先生的。我希望您能與我們討論如何考慮看跌期權和看跌期權在第四季度與第三季度的毛利率差異。你提到收縮會好一點。我們該如何看待第四季的情況，以及貨運與第三季的情況相比？庫存管理可以帶來我們應該考慮的第四季度（例如與第三季）降價範圍的預期，以供我們思考。

Yes. Happy to start, Robby. And you had a couple of other drivers in your question. The Q3 relative benefits of shrink coming out in a little better than we thought, freight coming in healthy on a year-over-year basis were certainly contributing factors. But the one I just underscore is the continued benefit we see from our strong inventory position. The cautious approach we've taken to inventory and, frankly, the team's good work to drive more productivity with a better inventory position, that inventory position just reaps benefits across our operations. Our stores are more efficient, our DCs are more efficient. All systems run better with inventory where it sits today. And with inventory down 14% on the balance sheet as we exit the quarter, we feel really good about that inventory position heading into Q4.

是的。很高興開始，羅比。你的問題中還有其他幾個驅動因素。第三季收縮的相對效益比我們想像的要好一些，貨運量年比健康成長肯定是促成因素。但我剛才強調的是，我們從強大的庫存狀況中看到了持續的好處。我們對庫存採取了謹慎的態度，坦白說，團隊在透過更好的庫存狀況來提高生產力方面所做的出色工作，這種庫存狀況只會為我們的營運帶來好處。我們的商店更有效率，我們的配送中心也更有效率。所有系統在現有庫存的情況下都能更好地運作。隨著本季結束時資產負債表上的庫存下降 14%，我們對進入第四季的庫存狀況感到非常滿意。

And do you still expect shrink to be favorable year-over-year in the fourth quarter?

您仍然預計第四季度的同比收縮會有利嗎？

So that's probably worth spending just a second on so that we all interpret what we're likely to see in Q4 the right way. Given the pace of some of our accruals last year, we would expect shrink to not to be quarter-over-quarter headwind in Q4 that we've seen throughout the balance of the year. Important to note that, that doesn't mean we've turned the corner on shrink. We'll continue to watch those trends carefully, and we still saw year-over-year pressure in Q3 as the underlying shrink in the business is still a headwind on a year-over-year basis, but there's some things unique to last year in Q4 that are likely to make it less of a driver of year-over-year variance in that quarter.

因此，這可能值得花一點時間，以便我們都能以正確的方式解釋我們可能在第四季度看到的情況。考慮到我們去年一些應計項目的速度，我們預計第四季度的收縮不會像今年餘下的時間那樣出現季度環比的逆風。需要注意的是，這並不意味著我們已經扭轉了收縮的局面。我們將繼續仔細觀察這些趨勢，我們在第三季度仍然看到同比壓力，因為業務的潛在萎縮與去年同期相比仍然是一個逆風，但去年有一些獨特的事情第四季度的變化可能會減少該季度同比差異的驅動因素。

Robby, I might build on Michael's comments around inventory. And we certainly feel very good about the actions we've taken and the reduction of inventory by 14%. But if you heard Christina earlier in the call, we've also been leaning into newness and feel really good about our position going into the holiday season with 10,000 new items, and we'll continue to lean in to meet demand during the holiday season. So I think the team has done an exceptional job of managing inventory. The benefits throughout our system have been realized in the third quarter. But we're playing to win in the fourth quarter. And I think Christina highlighted the amount of newness we have in our system and the great value we'll offer our guests throughout the holiday season.

羅比，我可能會以邁克爾關於庫存的評論為基礎。我們當然對我們所採取的行動以及庫存減少 14% 感到非常滿意。但如果您早些時候在電話會議中聽到克里斯蒂娜的聲音，我們也一直在傾向於新鮮事物，並且對我們在假期季節推出10,000 種新商品的情況感到非常滿意，並且我們將繼續致力於滿足假日季節的需求。所以我認為團隊在庫存管理方面做得非常好。我們整個系統的效益已在第三季實現。但我們要在第四節爭取勝利。我認為克里斯蒂娜強調了我們系統中的新穎性以及我們將在整個假期期間為客人提供的巨大價值。

Our next question comes from Rupesh Parikh with Oppenheimer.

我們的下一個問題來自魯佩什·帕里克和奧本海默。

Congrats on a nice quarter. So just for the holiday season, just curious if there's any early reads you can share and then any commentary just in terms of what you're seeing quarter-to-date.

恭喜您度過了一個美好的季度。因此，就假期而言，我只是想知道是否有任何早期讀物可以分享，然後是否有任何評論，只是根據您本季至今所看到的內容。

Well, as you might expect, we're watching it day by day, almost hour by hour, but we're still really early in the season. The big days, the big weeks are still in front of us. So we'll launch it carefully. Again, I think we're prepared for a really solid holiday season, but it's just way too early to tell.

好吧，正如你所料，我們每天、幾乎每小時都在觀看它，但我們仍處於賽季初期。重要的日子、重要的幾週仍然在我們面前。所以我們會謹慎地啟動它。再說一次，我認為我們已經為一個真正充實的假期做好了準備，但現在下結論還為時過早。

Great. And then maybe one follow-up question just on the CapEx. So expectations are lower for next year. Any specific buckets where you guys expect to reduce CapEx spending next year? Just any initial color you can share.

偉大的。然後可能還有一個關於資本支出的後續問題。因此，對明年的預期較低。你們預計明年會減少哪些具體的資本支出？您可以分享的任何初始顏色。

You can expect us to unpack that more as we get into the start of next year, Rupesh. But wanted to share our latest thinking of how we think the cadence by year flows, and as you heard me say in my remarks, importantly, we'll continue to invest in the things that will drive growth over time. We're really pleased with the almost $5 billion of investments this year and the returns those will drive. And we feel like that $3 billion to $4 billion number is the right number for next year based on what we see today, but more to come on that front.

Rupesh，您可以期待我們在明年年初時會解開更多內容。但想分享我們對每年的節奏如何流動的最新想法，正如你在我的演講中聽到的那樣，重要的是，我們將繼續投資於能夠隨著時間的推移推動增長的事情。我們對今年近 50 億美元的投資及其帶來的回報感到非常滿意。根據我們今天所看到的情況，我們認為 30 億至 40 億美元的數字是明年的正確數字，但在這方面還會有更多的數字。

The next question comes from Michael Lasser with UBS.

下一個問題來自瑞銀集團的麥可·拉塞爾。

Best of luck to John Mulligan. With sales down around 5% in the third quarter and the guidance calling for a similar decline in the fourth quarter, one of the key debates, and using an example is, are customers not coming to Target right now because they're just not in the market for a coffeemaker, as an example? Or are they buying that coffeemaker somewhere else? And if the latter is the [key], how much more promotional will Target need to become in order to get the customer back?

祝約翰·穆里根好運。由於第三季的銷售額下降了約 5%，並且指導意見要求第四季度也出現類似的下降，關鍵的爭論之一（舉個例子）是，客戶現在不來 Target 是否是因為他們不在以咖啡機市場為例？還是他們在其他地方購買咖啡機？如果後者是[關鍵]，塔吉特需要進行多少促銷才能重新獲得客戶？

Michael, I'm happy to start, and then I'll ask Christina to provide additional color. But one of the things that we've called out a number of times now is that there's tremendous pressure on the consumer's wallet and the impact of very sticky food and beverage inflation, which compared to prepandemic, food and beverage prices were up on average 25%. And that's certainly pressured consumers as they're making choices and certainly has forced them to make very tough choices when it comes to discretionary goods.

邁克爾，我很高興開始，然後我會請克里斯蒂娜提供額外的顏色。但我們現在多次指出的一件事是，消費者的錢包承受著巨大的壓力，以及食品和飲料通膨非常粘性的影響，與大流行前相比，食品和飲料價格平均上漲了 25%。 % 。這無疑給消費者在做出選擇時帶來了壓力，並迫使他們在非必需品方面做出非常艱難的選擇。

We've actually seen in the industry 7 consecutive quarters where discretionary goods have declined both in dollars and units. So there's an overall pressure in the marketplace. So you're seeing a consumer who is focused on managing their budget, buying those household essentials and then carefully shopping for those new items you just mentioned.

事實上，我們已經看到該行業連續 7 個季度非必需品的美元和單位數量都出現下降。所以市場整體有壓力。因此，您會看到消費者專注於管理預算，購買家庭必需品，然後仔細購買您剛才提到的新商品。

But Christina, why don't you give Michael some additional color on what we're seeing in some of those categories?

但是克里斯蒂娜，為什麼不給邁克爾一些關於我們在其中一些類別中看到的內容的額外資訊？

Yes. To build on what Brian said, certainly, when we do have hot promotions, the guest is responding. And the fourth quarter is always very competitive, and we'll be very well positioned with everyday low prices as well as promotions and investments in Circle, our loyalty program. I think the big difference for us this year and this fourth quarter is the amount of newness that we've invested in. If there's one thing that we've seen is in an environment where people are making choices and they might have some constraints with their budget, the motivation to buy is really, is this going to add value to my life? Is this something that is intriguing and feels relevant or is fashion forward or is really for me?

是的。根據布萊恩所說，當然，當我們確實有熱門促銷活動時，客人會做出回應。第四季的競爭總是非常激烈，我們將透過每天的低價以及對我們的忠誠度計劃 Circle 的促銷和投資而處於有利地位。我認為今年和第四季對我們來說最大的區別是我們投資的新鮮事物的數量。如果我們看到的一件事是在人們做出選擇的環境中，他們可能會受到一些限制他們的預算、購買動機真的是，這會為我的生活增加價值嗎？這是有趣的、相關的、時尚的還是真正適合我的東西？

And doing more of the same just isn't going to get it done, which is why we've invested in newness. And you'll see that across the store. You'll see it as you walk in, first thing in our women's set. It's right on trend, it's colorful. The price points are very appealing. You walk around to our seasonal business. Right now, you can get everything (inaudible), your tree skirt to ornaments at a great value. Continue down the path to toys, you've got over 2/3 of our toys below $25. And then around the corner of our store to food, where you can get not only your Thanksgiving meal for under $25, but all the gifting solutions and special trades for Marks & Spencer, only rounded out at Beauty, which has been our strongest business year-to-date and for many years and find gifting solutions at every price point.

做更多相同的事情並不能解決問題，這就是我們投資創新的原因。你會在商店的另一邊看到這一點。當您走進我們的女裝系列時，您會首先看到它。它緊跟潮流，色彩繽紛。價格點非常有吸引力。您可以步行前往我們的季節性營業場所。現在，您可以以超值價格獲得一切（聽不清楚），從樹裙到裝飾品。繼續沿著玩具之路前進，我們超過 2/3 的玩具都低於 25 美元。然後在我們商店的拐角處前往食品店，在那裡您不僅可以以低於25 美元的價格買到感恩節大餐，還可以享受Marks & Spencer 的所有禮品解決方案和特別交易，這些都在美容店得到了滿足，這是我們業務最強勁的一年- 多年來，我們一直在尋找各種價位的送禮解決方案。

So we're really pleased with assortment we're putting forward and think this will certainly motivate the guest to buy.

因此，我們對所推出的產品種類非常滿意，並認為這肯定會激勵客人購買。

And Michael, one point to clarify. While we've certainly called out the pressure we're seeing both from an industry standpoint and a Target standpoint in discretionary categories, in the third quarter alone, we generated over $25 billion of revenue. And as Michael referenced, on a full year basis, we'll generate over $100 billion of revenue. A significant portion of that comes from discretionary sales.

麥可有一點需要澄清。雖然我們確實從行業角度和 Target 角度指出了在非必需品類別中所面臨的壓力，但僅在第三季度，我們就創造了超過 250 億美元的收入。正如邁克爾所提到的，我們全年將產生超過 1000 億美元的收入。其中很大一部分來自可自由支配的銷售。

And as Christina pointed out, much of that's tied to combining great newness with affordability. And I think we're well positioned to continue to perform in those categories. So while we've seen some pressure, consumers continue to turn to Target for Apparel and Home, for discretionary categories and items. And I think we're well positioned with the amount of newness and value we'll offer during the holiday season.

正如克里斯蒂娜所指出的，這很大程度上與新穎性和可承受性的結合有關。我認為我們有能力繼續在這些類別中表現出色。因此，儘管我們看到了一些壓力，但消費者仍繼續向 Target for Apparel and Home 尋求非必需品類和商品。我認為我們在假期期間提供的新穎性和價值方面處於有利地位。

My follow-up question is, Brian, over the last couple of years, Target has shown that it can drive sales growth. It's now showing that it can drive profitability. As you look towards 2024, when arguably the consumer is going to continue to face pressure, will your priority being on driving better sales performance or sustaining the profitability that Target has been able to achieve this year?

我的後續問題是，布萊恩，在過去幾年中，塔吉特已經證明它可以推動銷售成長。現在表明它可以提高盈利能力。展望 2024 年，消費者可能將繼續面臨壓力，您的首要任務是推動更好的銷售業績還是維持塔吉特今年實現的獲利能力？

Michael, it's such a great question. And you heard me say this in my prepared comments, our focus is on obviously doing both. We're certainly not satisfied today with our top line performance, and we are laser-focused on improving traffic, on growing our top line and continuing to advance our profitability. So for Target, it's a combination of doing both. And as we finish this year and build our plans for 2024, you'll see us being focused on driving our top line, building traffic and continue to expand our profitability.

邁克爾，這是一個很好的問題。你在我準備好的評論中聽到了我這樣說，我們的重點顯然是兩者兼而有之。我們今天當然對我們的營收表現不滿意，我們專注於改善流量、增加我們的營收並繼續提高我們的獲利能力。因此，對塔吉特來說，這是兩者的結合。當我們今年結束並製定 2024 年計劃時，您會看到我們專注於提高收入、增加流量並繼續擴大我們的盈利能力。

Our next question is from Edward Yruma with Piper Sandler.

我們的下一個問題來自愛德華·尤魯馬和派珀·桑德勒。

John Mulligan, congratulations on all that you've done, and thanks for all the help over the years. Really just a couple of clarification questions. So Michael, on shrink, I know last year you had a significant accrual in the fourth quarter, you said that there's favorability, but just trying to understand the underlying trend. Are you seeing stabilization? And not to conflate 2 things, but I know you did call out kind of more usage of full-service lane. So trying to understand if you kind of at least start to flatten the curve on shrink. And then as a follow-up, on discretionary categories, obviously, nice to see the improvement in Apparel. Are you planning kind of continued improvement within that negative mid-single comp guide?

John Mulligan，恭喜您所做的一切，並感謝您多年來的所有幫助。其實只是幾個澄清問題。所以邁克爾，關於收縮，我知道去年你在第四季度有顯著的應計收益，你說有好處，但只是想了解潛在的趨勢。你看到穩定了嗎？不要將兩件事混為一談，但我知道您確實呼籲更多地使用全方位服務車道。因此，試著了解您是否至少開始使收縮曲線變平。然後，作為後續行動，在可自由支配的類別上，顯然，很高興看到服裝的改進。您是否計劃在負面的中路比較指南中繼續改進？

I'm happy to start with the shrink question, Ed. In the third quarter, we still saw year-over-year pressure, so about 40 basis points of year-over-year headwind. That's less pressure relatively than we saw in the first 2 quarters of the year, and it was a little better than we thought it'd be. And so those are encouraging signs of some progress in the right direction, but to be clear, still a year-over-year headwind in Q3. And so as we've said before, shrink's a lagging metric. We think progress there probably doesn't happen quickly. But we're focused on progress over time, and you'll see us continue to take the actions to get a better outcome there over time, but it's not one that we'd expect overnight.

我很高興從心理醫生的問題開始，艾德。第三季度，我們仍然看到同比壓力，因此同比逆風約40個基點。相對於我們今年前兩季看到的壓力來說，這個壓力要小一些，而且比我們想像的還要好。因此，這些都是令人鼓舞的跡象，表明朝著正確的方向取得了一些進展，但需要明確的是，第三季仍然是同比逆風。正如我們之前所說，收縮是一個滯後指標。我們認為這方面的進展可能不會很快發生。但我們專注於隨著時間的推移取得進展，你會看到我們繼續採取行動，隨著時間的推移獲得更好的結果，但這不是我們期望的一夜之間的結果。

And on the discretionary side, I said it in my prepared remarks, but there was an underlying shift in the third quarter compared to the second quarter with both Apparel and Home accelerating nicely. And so that's our continued goal, is to make sure that we present the right level of newness to build the business back to positive territory over the long term. We are, however, picking our bets. And so our cautionary planning to inventory has bought so much goodness in the total P&L on the operation that about -- it's about being choiceful and placing our bets.

在自由裁量方面，我在準備好的發言中說過，但與第二季相比，第三季出現了潛在的轉變，服裝和家居都在加速成長。因此，這就是我們的持續目標，即確保我們提供適當的新穎性，以使業務長期恢復到積極的狀態。然而，我們正在選擇我們的賭注。因此，我們對庫存的謹慎規劃為營運的總損益帶來瞭如此多的好處，這就是我們的選擇和下注。

Our next question is from Kate McShane with Goldman Sachs.

我們的下一個問題來自高盛的 Kate McShane。

We wonder if you could talk to traffic trends by month throughout the quarter. And just wondered how much better traffic in the third quarter versus second quarter was driven by customers coming back after what we saw in June.

我們想知道您是否可以談談整個季度按月的流量趨勢。只是想知道第三季的流量比第二季好多少是由客戶在六月看到的情況後回來推動的。

Yes. So when we think about what we see in traffic, as you heard in our prepared remarks, it was good to see sequentially traffic improve quarter-over-quarter at a slightly faster rate than the top line did. And we're excited about the work teams do, that balance of newness and value and the investments we continue to make in the business to turn traffic back in our favor over time. And so that's where you'll see us focused, Kate.

是的。因此，當我們思考我們在流量中看到的情況時，正如您在我們準備好的評論中聽到的那樣，很高興看到流量逐季度環比改善，速度比頂線略快。我們對工作團隊所做的工作、新穎性和價值的平衡以及我們繼續在業務中進行的投資感到興奮，以便隨著時間的推移將流量重新轉向對我們有利的方向。凱特，這就是我們關注的焦點。

Okay. And then our follow-up question is just around promotions. Are you seeing any kind of increase in vendor support when it comes to promotions versus what you saw last year?

好的。然後我們的後續問題就是關於促銷。與去年相比，您在促銷方面看到供應商支援是否增加？

As we've talked about, the consumer is responding to promotions and so the market is responding accordingly. With that said, I'd say it's still a rational environment. And the healthy inventory position that we're in allows us to continue to offer great value to our guests without chasing empty calories.

正如我們所討論的，消費者正在對促銷做出反應，因此市場也會做出相應的反應。話雖如此，我想說這仍然是一個理性的環境。我們所處的健康庫存狀況使我們能夠繼續為客人提供巨大的價值，而無需追逐空卡路里。

Kate, I might offer just one more piece of context on traffic. Even with the tougher sales trends that we've seen so far year-to-date, through the first 3 quarters of this year versus prepandemic, traffic is up over 20% in total. And so we feel really good about the engagement that we've built with guests over the last few years. We think that's an asset and a base that will really benefit us well going forward.

凱特，我可能會再提供一點有關交通的背景資訊。儘管今年迄今我們看到的銷售趨勢更為嚴峻，但與疫情爆發前相比，今年前 3 季的總流量仍增加了 20% 以上。因此，我們對過去幾年與客人建立的互動感到非常滿意。我們認為這是一項資產和基礎，將真正有利於我們未來的發展。

And John Mulligan, congratulations.

約翰·穆里根，恭喜你。

Our next question is from Joe Feldman with Telsey Advisory Group.

我們的下一個問題來自 Telsey Advisory Group 的 Joe Feldman。

And I wanted to ask, can you talk a little bit more about what you're seeing from unit perspective in terms of unit sales? And I know, as you mentioned in the transcript, that units are down a little bit. But are you starting to see any stabilization there? And how should we think about unit sales going forward? And also if you could touch on the Grocery aspect of that as well, I'd be curious -- or Essentials, I should say.

我想問，您能多談談您從單位銷售角度看到的情況嗎？我知道，正如您在文字記錄中提到的，單位數量有所下降。但你開始看到那裡有任何穩定嗎？我們該如何考慮未來的銷售量？另外，如果你也能談談雜貨方面，我會很好奇——或者我應該說是必需品。

Yes. So Brian hit on this in his prepared remarks, that the industry has seen a slowdown in unit performance over many quarters in a row. And that is because the pressure on the consumer is really real and they're having to make those choices. I also shared in my remarks that in the frequency businesses, which we think of as Food and Beverage and Essentials and Beauty, that in the third quarter we saw prices come down so that we comped over the peak of inflation. The prices came down, that's an industry-wide phenomenon. And as a result, we did see some improvement in unit velocity. That's a good thing in the long run, is that when consumers can stretch their budget across more things that they want to buy and not have it tied up in any high prices. That's a good thing. But as Brian talked about, the inflation on these categories over the last several years, especially in Food, Household Essentials, even pets and baby, is meaningful. And that's going to take a while to overcome.

是的。因此，布萊恩在他準備好的演講中談到了這一點，即該行業的單位業績連續多個季度出現放緩。這是因為消費者面臨的壓力確實存在，他們必須做出這些選擇。我還在演講中分享了在頻率業務中，我們將其視為食品和飲料以及必需品和美容品，在第三季度，我們看到價格下降，以便我們在通貨膨脹高峰期進行補償。價格下降，這是全行業的現象。結果，我們確實看到了單位速度的一些改善。從長遠來看，這是一件好事，因為消費者可以將預算擴展到更多他們想購買的東西上，而不會被高價格所束縛。這是好事。但正如布萊恩所說，過去幾年這些類別的通貨膨脹是有意義的，特別是在食品、家庭必需品，甚至寵物和嬰兒方面。這需要一段時間才能克服。

Operator, we've got time for 2 more questions today.

接線生，今天我們還有時間回答 2 個問題。

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西蒙·古特曼。

I want to go back to this market share -- or not market share, actually sales versus margin. And I'm curious if you can speak to market share, if that is a gauge you're looking at how -- what happened during the quarter. And is the decision around this trade-off, is it market share dependent? Are there certain categories you're looking at thinking about when to apply promotions or where to apply promotions?

我想回到這個市場份額——或者不是市場份額，實際上是銷售額與利潤率。我很好奇你是否可以談論市場份額，如果這是你正在研究的一個衡量標準——本季發生了什麼。圍繞這種權衡做出的決定是否取決於市場佔有率？您是否正在考慮某些類別，考慮何時應用促銷或在何處應用促銷？

So right now, with total consumer spending soft in the discretionary portfolio, we are not going to chase short-term benefit at the long term -- at the expense of long term. And so it's always a balance. We're always looking to drive both sales and profit. We've also been very clear that this year has -- we put profit on a high priority to recover from last 5 years. But as Brian said, the long-term gain -- the long-term game has to be both.

因此，目前，由於可自由支配的投資組合中的總消費者支出疲軟，我們不會以犧牲長期利益為代價來追求長期的短期利益。所以它始終是一種平衡。我們始終致力於提高銷售額和利潤。我們也非常清楚，今年我們將利潤放在首位，以便從過去五年中恢復過來。但正如布萊恩所說，長期收益——長期博弈必須兩者兼顧。

Again, I'll underscore the point Christina just made. Simeon, I think you know it's all about the balance. And we're always looking to balance our focus on sales and margin and profitability. Early in the year, we talked about the fact that we were going to plan discretionary categories cautiously in this environment. And we said appropriately. And I think that's played out well for us. But at the same time, we've been leaning into categories with strong demand in Food and Beverage, in Household Essentials, in Beauty.

我將再次強調克里斯蒂娜剛才提出的觀點。西蒙，我想你知道這一切都與平衡有關。我們一直在尋求平衡對銷售額、利潤率和獲利能力的關注。今年早些時候，我們談到了這樣一個事實，即我們將在這種環境下謹慎規劃可自由支配的類別。我們說得很恰當。我認為這對我們來說效果很好。但同時，我們一直傾向於食品和飲料、家居必需品和美容等需求強勁的類別。

We know today's consumers still celebrating seasons. So we lean into Back-to-School and Back-to-College and Halloween. And we know they're going to celebrate the holiday season. So we're leaning into those select categories where we know the guest is looking for newness, affordability, and they're going to celebrate those seasons. But that's what we do each and every day as a good retailer and is constantly a balance category by category of the focus on sales, on market share, on profitability. And I think as you saw in the third quarter, that's the way that [worked] for us.

我們知道今天的消費者仍在慶祝季節。所以我們傾向於返校、返校和萬聖節。我們知道他們要慶祝節日。因此，我們傾向於選擇那些我們知道客人正在尋找新奇、實惠的類別，並且他們將慶祝這些季節。但這就是我們作為一家優秀零售商每天所做的事情，並且不斷平衡對銷售、市場份額和盈利能力的關注。我認為正如你在第三季度所看到的，這就是我們的[工作]方式。

And just quick follow-up, sortation centers. Do you have a sense of what the savings look like? Do you have enough scale and experience with them to know what the savings will be? And is that a '24 -- do we start to see the savings next year?

以及快速跟進、分類中心。您知道要省的費用是什麼樣的嗎？您是否有足夠的規模和經驗來了解可以節省多少成本？那是 24 世紀嗎？明年我們會開始看到節省嗎？

Well, you've opened up the door for John Mulligan to answer your question today, and I'm really glad you did.

好吧，您今天為約翰·穆里根（John Mulligan）回答您的問題打開了大門，我真的很高興您這樣做了。

Thanks for that, Simeon. I would start by saying we remain incredibly excited about sort centers. And with that, we have already started to see savings flow through the P&L. We haven't talked about it because I think -- it's been 3 years, but we are still early in the journey. I think there's still much to do in front of us. We're still optimizing routes. We're still just getting into much higher capacity vehicles, which will create more density, which will create more savings.

謝謝你，西蒙。首先我要說的是，我們對分類中心仍然非常興奮。至此，我們已經開始在損益表中看到節省的流量。我們還沒有討論過這個問題，因為我想——已經過去三年了，但我們仍處於起步階段。我認為我們面前還有很多事情要做。我們仍在優化路線。我們仍然只是進入容量更大的車輛，這將創造更高的密度，從而創造更多的節省。

And then what we've said over the next few years, we've got at least 5 more of these to open. And then as we get the digital business growing again, hopefully, that number goes up as well. So we're still in the early days, but we remain very optimistic because we are seeing savings. It's much faster than the alternative, and we know the next best alternative, we are operating well below from a cost perspective.

然後我們說過，在接下來的幾年裡，我們至少還有 5 個這樣的計畫要開放。然後，隨著我們的數位業務再次成長，希望這個數字也會上升。因此，我們仍處於早期階段，但我們仍然非常樂觀，因為我們看到了節省。它比替代方案快得多，而且我們知道下一個最佳替代方案，從成本角度來看，我們的營運成本遠低於其他方案。

Operator, we've got time for our final question.

接線員，我們有時間回答最後一個問題。

Our final question comes from Chris Horvers with JPMorgan.

我們的最後一個問題來自摩根大通的克里斯霍弗斯。

Congratulations to John. It's been an incredible journey, and I hope you have a wonderful retirement. So Mike, I'll follow up on the operating margin question for next year. Michael, maybe you could talk about the puts and takes as you think about next year. Clearly, the consumer is the question. But as you think about shrink versus maybe some incremental promotion when you're not so lean on the inventory side versus what you might see from Roundel and you also have the $2 billion to $3 billion cost savings program.

祝賀約翰。這是一次令人難以置信的旅程，我希望您有一個美好的退休生活。麥克，我將跟進明年的營業利潤率問題。邁克爾，也許你可以談談你對明年的看法。顯然，消費者才是問題所在。但是，當您考慮收縮與可能的增量促銷時，當您不太依賴庫存方面時，與您可能從 Roundel 看到的情況相比，您還有 20 億至 30 億美元的成本節約計劃。

Thanks for the question, Chris. I think the punch line is we'll talk more about next year after we get through a really important holiday season. So that's our team's focus right now. And a lot of what will impact as we get there will be some of the things that you listed in your question. But more to come as we turn the page to next year once we get through a really important fourth quarter.

謝謝你的提問，克里斯。我認為最重要的是，在經歷了一個非常重要的假期後，我們將在明年更多地討論這個問題。這就是我們團隊現在的重點。當我們了解到您在問題中列出的一些內容時，會產生很多影響。但一旦我們度過了非常重要的第四季度，當我們翻過這一頁到明年時，還會有更多的事情發生。

Yes. Thank you. So operator, that concludes our Q3 call. I want to thank everybody for joining us. I wish everybody a wonderful holiday season, and we look forward to seeing you in March.

是的。謝謝。接線員，我們的第三季電話會議到此結束。我要感謝大家加入我們。祝大家有個愉快的假期，我們期待在三月見到您。