目標百貨 (TGT) 2024 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 22, 2024.

女士們先生們，謝謝你們的支持。歡迎參加目標公司第一季財報發布電話會議。 （操作員說明）謹此提醒，本次會議將於 2024 年 5 月 22 日星期三進行錄音。

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

現在我想將會議交給投資者關係副總裁約翰·赫爾伯特先生。請繼續，先生。

Good morning, everyone, and thank you for joining us on our first quarter 2024 earnings conference call.

大家早安，感謝您參加我們的 2024 年第一季財報電話會議。

On the line with me today are Brian Cornell, Chair and Chief Executive Officer; Christina Hennington, Chief Growth Officer; and Michael Fiddelke, Chief Operating Officer and Chief Financial Officer. In a few moments, Brian, Christina and Michael will provide their insights on our first quarter performance, along with our outlook and priorities for the second quarter and remainder of the year. Following their remarks, we'll open the phone lines for a question-and-answer session.

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；營運長兼財務長 Michael Fiddelke。稍後，布萊恩、克里斯蒂娜和邁克爾將提供他們對我們第一季業績的見解，以及我們對第二季和今年剩餘時間的展望和優先事項。在他們發表講話後，我們將開通電話線路進行問答。

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.

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.

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。

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.

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 first quarter and his priorities for the second quarter and beyond. Brian?

這樣，我將把它交給布萊恩，詢問他對第一季的想法以及他對第二季及以後的優先事項。布萊恩？

Thanks, John, and good morning, everyone.

謝謝約翰，大家早安。

At our Financial Committee meeting in March, we outlined our long-term vision for profitable growth and a broad range of investments we're making to support those ambitions. We talked about our goal to open more than 300 new stores over the next decade as we continue investing in the vast majority of our existing stores. We discussed the supply chain investments we're making to modernize how we distribute merchandise, including the rollout of additional sortation centers to increase the speed and efficiency of our last-mile delivery.

在三月的財務委員會會議上，我們概述了獲利成長的長期願景以及為支持這些目標而進行的廣泛投資。我們談到了未來十年開設 300 多家新店的目標，同時我們繼續投資絕大多數現有商店。我們討論了我們為實現商品配送方式現代化而進行的供應鏈投資，包括推出額外的分類中心以提高最後一哩配送的速度和效率。

We highlighted investments in technology, including AI and machine learning, to make it easier and more reliable for our team to serve guests in every channel. We previewed the relaunch of our loyalty ecosystem, making it simpler and easier for us to deliver even more value to our guests. We outlined changes to the digital experience and our focus on bringing the joy of discovery to the digital channel, just like we've done in our stores for years.

我們強調了對人工智慧和機器學習等技術的投資，以使我們的團隊更輕鬆、更可靠地為各個管道的客人提供服務。我們預覽了忠誠度生態系統的重新啟動，使我們能夠更簡單、更輕鬆地為客人提供更多價值。我們概述了數位體驗的變化以及我們致力於將發現的樂趣帶入數位管道，就像我們多年來在商店中所做的那樣。

We highlighted the value of Roundel, our advertising business, which helps us deepen the connection between Target, our guests and our vendors. Roundel is already making a meaningful contribution to our performance, and it's the fastest-growing part of our business.

我們強調了我們的廣告業務 Roundel 的價值，它幫助我們加深了 Target、客人和供應商之間的聯繫。 Roundel 已經為我們的業績做出了有意義的貢獻，並且它是我們業務中成長最快的部分。

We talked about the value of Target's unique multi-category assortment, including the launch of new owned brands like Figmint and dealworthy, and our work to widen the footprint of national brand partnerships like Ulta Beauty. And we discussed our commitment to making continued investments in our team, in their pay, benefits, training and more, because we know when we take care of our team, they can focus on taking care of our guests.

我們討論了 Target 獨特的多品類產品組合的價值，包括推出 Figmint 和 Dealworthy 等新自有品牌，以及我們為擴大 Ulta Beauty 等全國品牌合作夥伴關係所做的工作。我們也討論了我們對團隊持續投資的承諾，包括他們的薪水、福利、培訓等，因為我們知道，當我們照顧好我們的團隊時，他們就可以專注於照顧我們的客人。

Also in March, we provided our financial guidance for 2024, a year in which we expect Target to get back to growth and build on the enormous gains in guest engagement and top line sales we've seen over the last 5 years. And today, with the first quarter behind us, I'm happy to report we're firmly on track to deliver on that guidance. More specifically, our first quarter comp sales were just above the midpoint of our guidance range, and our Q1 EPS was near the upper end of our expectations.

同樣在 3 月份，我們提供了 2024 年的財務指引，我們預計塔吉特將在這一年恢復成長，並在過去 5 年在賓客參與度和營收方面取得巨大進步的基礎上再接再厲。今天，隨著第一季的過去，我很高興地向大家報告，我們正在堅定地實現這項指導方針。更具體地說，我們第一季的比較銷售額略高於我們指引範圍的中點，我們第一季的每股盈餘接近我們預期的上限。

And I'll quickly note, while we're not yet satisfied with our current top line performance and we're far short to where we expect to operate over time, we've seen a sustained improvement in multiple business drivers over the last several quarters. This reinforces our confidence that we're moving in the right direction, and we're on track to deliver on our longer-term vision.

我很快就會指出，雖然我們對目前的營收表現還不滿意，而且距離我們預期的長期營運水平還很遙遠，但在過去的幾年裡，我們看到了多個業務驅動因素的持續改善宿舍。這增強了我們的信心，相信我們正在朝著正確的方向前進，並且我們正在實現我們的長期願景。

As we continue to monitor the external environment, our view of the U.S. consumer remains the same, as we shared 3 months ago. More specifically, U.S. consumers continue to exhibit a high degree of resilience in the face of multiple challenges, including a rapid rise in prices and interest rates over the last few years.

在我們繼續監控外部環境的同時，我們對美國消費者的看法與 3 個月前所分享的一樣。更具體地說，面對過去幾年物價和利率快速上漲等多重挑戰，美國消費者持續展現高度的韌性。

In addition, business trends continue to reflect a normalization in spending patterns that first emerged more than 2 years ago, a pattern where consumers are remixing their spending back into services and entertainment outside of their homes after curtailing those activities during the pandemic. This normalization, combined with the cumulative impact of higher prices on consumer budgets, is resulting in continued soft trends in discretionary categories, most notably in Home and Hardlines.

此外，商業趨勢繼續反映出兩年多前首次出現的支出模式的正常化，即消費者在疫情期間減少了這些活動後，將支出重新投入到家庭以外的服務和娛樂中。這種正常化，再加上價格上漲對消費者預算的累積影響，導致非必需品類別（尤其是家居用品和硬品類）持續呈現疲軟趨勢。

And today, even as price levels remain high, inflation rates have moderated significantly over the last few quarters. And we've seen a meaningful improvement in discretionary trends, most notably in Apparel, where our performance improved by approximately 4 percentage points in Q1 when compared with last year's fourth quarter. This gives us some optimism that we could see a better balance of spending between discretionary and frequency categories in the years ahead.

如今，儘管物價水平仍然很高，但過去幾季的通膨率已顯著放緩。我們已經看到可自由支配趨勢的顯著改善，尤其是在服裝領域，與去年第四季相比，我們第一季的業績提高了約 4 個百分點。這讓我們感到樂觀，認為未來幾年我們可以看到可自由支配類別和頻率類別之間的支出取得更好的平衡。

However, given that we're facing continued uncertainty in the near term, our team remains focused on operational excellence and the agility to respond quickly to changes in the environment. In addition, we're focused on delivering newness to our guests and leaning into seasonal moments, both of which have long served as hallmarks of our brand.

然而，鑑於我們在短期內面臨持續的不確定性，我們的團隊仍然專注於卓越營運和快速回應環境變化的敏捷性。此外，我們專注於為客人提供新鮮感並關注季節性時刻，這兩者長期以來一直是我們品牌的標誌。

Among the highlights in Q1, we were really pleased with the response to our limited-time partnership with the iconic designer, Diane von Furstenberg; and the assortment of pickleball equipment and apparel we offered in partnership with the athletic brand, Prince. Of course, beyond newness and seasons, we continue to focus on delivering unbeatable value to our guests. While our team is always committed to value, it's particularly important in today's environment as consumers look for ways they can stretch their budgets in the face of suddenly high prices.

在第一季的亮點中，我們對與標誌性設計師黛安馮芙絲汀寶 (Diane von Furstenberg) 的限時合作的反響感到非常滿意；以及我們與運動品牌 Prince 合作提供的各種匹克球裝備和服裝。當然，除了新品和季節之外，我們繼續致力於為客人提供無與倫比的價值。雖然我們的團隊始終致力於價值，但在當今的環境下這一點尤其重要，因為消費者在面對突然高價的情況下尋找可以擴展預算的方法。

To help our guests in the face of these pressures, this week, we announced that we've made price cuts on 1,500 frequently shopped items in many markets, and we're planning additional price cuts on 1,000 more items this summer. These cuts are focused on everyday items in our Food and Essential categories and are designed to help our guests make the most of their budgets. Collectively, they'll save our guests millions of dollars this summer.

為了幫助我們的客人應對這些壓力，本週，我們宣布對許多市場上 1,500 種經常購買的商品進行降價，併計劃在今年夏天對另外 1,000 種商品進一步降價。這些削減主要針對我們的食品和必需品類別中的日常用品，旨在幫助我們的客人充分利用他們的預算。總的來說，今年夏天他們將為我們的客人節省數百萬美元。

But low prices are only one of the many ways we deliver value. Another way is through our Target Circle loyalty program, which we relaunched in April. At well over 100 million members, Target Circle is already one of the largest loyalty programs in the United States. And we've redesigned the program to deliver even more value while making it easier to use and understand.

但低價只是我們提供價值的眾多方式之一。另一種方式是透過我們在四月重新啟動的 Target Circle 忠誠度計畫。 Target Circle 擁有超過 1 億會員，已成為美國最大的忠誠度計畫之一。我們重新設計了該程序，以提供更多價值，同時使其更易於使用和理解。

More specifically, we integrated our credit and debit card programs along with same-day delivery capabilities under a single umbrella, allowing our guests to choose from a range of services and rewards based on their needs and preferences. Christina will provide more detail in a few minutes, but we are really pleased with the consumer response we've seen so far. Most notably, we added more than 1 million new members to Target Circle in the quarter, and we're committed to making sustained investment in this program over the next few years.

更具體地說，我們將信用卡和借記卡計劃以及當日送達功能整合在一個框架下，使我們的客人可以根據自己的需求和偏好從一系列服務和獎勵中進行選擇。克里斯蒂娜將在幾分鐘內提供更多詳細信息，但我們對迄今為止看到的消費者反應感到非常滿意。最值得注意的是，本季我們為 Target Circle 增加了超過 100 萬名新會員，並且我們致力於在未來幾年內對該計劃進行持續投資。

I want to pause and thank our team for making this relaunch a success. It required a remarkable degree of collaboration and communication across a huge swath of our team, including marketing, stores, digital, financial services, merchandising, technology and finance teams.

我想暫停一下並感謝我們的團隊使這次重新啟動取得了成功。它需要我們大量團隊之間的高度協作和溝通，包括行銷、商店、數位、金融服務、銷售、技術和財務團隊。

In addition to value, our team is focused on convenience and reliability, including through the digital channel where trends have improved meaningfully over the last few quarters. In the first quarter, we saw an increase in digital sales for the first time in more than a year. This growth was driven by our same-day services, Drive Up, in-store pickup and same-day delivery, which has been rapidly embraced by our guests in recent years.

除了價值之外，我們的團隊還專注於便利性和可靠性，包括透過數位管道，數位管道的趨勢在過去幾季有了顯著改善。第一季度，我們看到數位銷售額一年多來首次成長。這一增長是由我們的當日服務、Drive Up、店內取貨和當日送達所推動的，這些服務近年來迅速受到我們的客人的歡迎。

In the first quarter, our same-day services saw high single-digit growth over last year, led by Drive Up, which grew in the low teens. This builds on the explosive growth of Drive Up that occurred during the pandemic, which was followed by double-digit increases in both 2022 and 2023. All together and more than $2 billion in Q1, Drive Up sales were more than 30x larger than we saw in the first quarter of 2019.

第一季度，我們的當日送達服務較去年實現了高個位數成長，其中以 Drive Up 為首，該服務的成長率為十幾位數。這是建立在大流行期間Drive Up 爆炸性增長的基礎上的，隨後在2022 年和2023 年均實現了兩位數增長。了30 倍多2019年第一季。

I want to pause and highlight the outstanding efforts of our operations teams to enhance the guest experience. As Michael will cover in a few minutes, their focus on retail fundamentals is delivering multiple benefits, ranging from better in-stocks to rising guest satisfaction. And of course, our results continue to highlight the benefit of our stores and sub-model, which offers speed, reliability and efficiency regardless of how our guests choose to shop. In the first quarter, our stores fulfilled nearly 98% of our total sales as we relied on our store assets, inventory and team to support every one of them in services we provide.

我想暫停一下並強調我們的營運團隊為增強賓客體驗所做的傑出努力。正如邁克爾將在幾分鐘內介紹的那樣，他們對零售基本面的關注正在帶來多種好處，從更好的庫存到不斷提高的客戶滿意度。當然，我們的結果繼續凸顯了我們商店和子模型的優勢，無論我們的客人如何選擇購物，它都能提供速度、可靠性和效率。第一季度，我們的門市完成了總銷售額的近 98%，因為我們依靠門市資產、庫存和團隊來支持我們提供的每項服務。

So now as I get ready to turn the call over to Christina, I want to pause and take note of how our businesses evolved over time, providing perspective that allows us to look beyond the volatility we've seen in recent years. In the first quarter of 2024, our business generated over $24.5 billion in revenue. That represents growth of just under $7 billion or 39% compared with the first quarter of 2019, the year before the pandemic began.

因此，現在當我準備將電話轉給克里斯蒂娜時，我想停下來，記下我們的業務如何隨著時間的推移而發展，從而提供視角，使我們能夠超越近年來所看到的波動。 2024 年第一季度，我們的業務收入超過 245 億美元。這意味著與疫情開始前一年的 2019 年第一季相比，成長了近 70 億美元，即 39%。

We've also seen healthy growth on the bottom line where our business delivered EPS of $2.03 in Q1, which is $0.50 or 33% higher than in 2019. While that pace of bottom line growth is somewhat slower than we've seen on the top line and below what we'd expect to see over time, it reflects some unique profit rate pressures that we faced during the period, a portion of which we expect to offset over the next several years.

我們也看到了利潤的健康成長，我們的業務在第一季度實現了每股收益2.03 美元，比2019 年高出0.50 美元，即33%。一些線並低於我們預計隨著時間的推移會看到的水平，它反映了我們在此期間面臨的一些獨特的利潤率壓力，我們預計將在未來幾年抵消其中的一部分。

As we look ahead to the remainder of 2024, our team is focused on getting back to top line growth. We expect that will begin in the second quarter as we build on the remarkable gains we've seen over time. Like the U.S. consumer, our team has shown remarkable resilience during an extended period of exceptional volatility. I'm incredibly proud and appreciative of the passion they demonstrate for our guests and for our brand and their strong desire to win in the marketplace. Our team has long been the key to Target's success, and they are the #1 reason I remain confident in our ability to grow profitably in the years ahead.

展望 2024 年剩餘時間，我們團隊的重點是恢復營收成長。我們預計這將在第二季開始，因為我們將在我們長期以來所看到的顯著收益的基礎上繼續發展。與美國消費者一樣，我們的團隊在長期的異常波動期間表現出了非凡的韌性。我對他們對我們的客人和我們的品牌表現出的熱情以及他們在市場上獲勝的強烈願望感到無比自豪和感激。長期以來，我們的團隊一直是塔吉特成功的關鍵，他們是我對我們在未來幾年實現盈利成長的能力充滿信心的第一大原因。

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

這樣，我會將電話轉給克里斯蒂娜。

Thanks, Brian, and good morning, everyone. As Brian mentioned, while we are pleased that our first quarter results came in largely as expected, we won't be satisfied until we start growing again, which is our expectation beginning with the second quarter.

謝謝布萊恩，大家早安。正如布萊恩所提到的，雖然我們很高興第一季的業績基本上符合預期，但在我們再次開始成長之前我們不會感到滿意，這是我們從第二季開始的預期。

Before I share the strategy and plans that we expect to fuel this growth in Q2 and beyond, I want to spend a bit of time reinforcing what Brian shared regarding our views of the U.S. consumer and economy as well as providing some additional color on our first quarter results.

在我分享我們預計在第二季度及以後推動這一成長的策略和計劃之前，我想花一些時間來強化Brian 分享的關於我們對美國消費者和經濟的看法，並為我們的第一季提供一些額外的資訊。

Our view on the consumer remains largely consistent with our view 3 months ago. Consumers remain surprisingly resilient despite a challenging backdrop of significantly elevated prices compared to just a few years ago. And even as inflation moderates and we see sequential improvement in discretionary category trends, higher interest rates, uncertainty around the future of the economy, continued social and political divisiveness and the upcoming election cycle have consumers concerned about what lies ahead. In fact, consumer confidence took a meaningful dip in April despite a strong job market and normalizing inflation.

我們對消費者的看法與三個月前的看法基本一致。儘管價格與幾年前相比大幅上漲，但消費者仍然具有驚人的彈性。即使通膨放緩，我們看到可自由支配類別趨勢的持續改善、利率上升、經濟未來的不確定性、持續的社會和政治分歧以及即將到來的選舉週期，也讓消費者對未來感到擔憂。事實上，儘管就業市場強勁且通膨正常化，但 4 月消費者信心大幅下降。

And beyond the psychological toll of the current environment, the sustained level of elevated prices has had a meaningful impact on budgets and savings for many families. Currently, 1 in 3 Americans has maxed out or is nearing the limit on at least one of their credit cards. For these reasons and more, we remain cautious in our near-term growth outlook. Notably, we expect discretionary trends will continue to remain pressured in the short term, but to normalize over time.

除了當前環境造成的心理損失之外，價格的持續上漲也對許多家庭的預算和儲蓄產生了重大影響。目前，三分之一的美國人至少一張信用卡已達到或接近限額。基於這些原因以及其他原因，我們對近期成長前景保持謹慎。值得注意的是，我們預期短期內可自由支配的趨勢將繼續面臨壓力，但隨著時間的推移將趨於正常化。

Turning to our first quarter results, comparable sales were down 3.7%, driven largely by continued softness in Home and Hardlines categories and softening trends in frequency categories, with lower unit volume and less benefit from price as compared to a year ago. Amidst the pressure, Beauty continues to be a standout category, delivering growth in the low single digits in the quarter. This growth was led by continued strength in Ulta Beauty at Target as well as strong performance in personal care and skincare categories.

就我們第一季的業績而言，可比銷售額下降了3.7%，這主要是由於家居和耐用品類別的持續疲軟以及頻率類別的疲軟趨勢，與一年前相比，單位數量減少，價格收益減少。在壓力下，美容類別仍表現出色，本季實現低個位數成長。這一增長得益於塔吉特 Ulta Beauty 的持續強勁以及個人護理和護膚品類的強勁表現。

Apparel, while down low single digits for the quarter, saw a nearly 4 percentage point improvement in comparable sales from Q4. The performance in young contemporary categories delivered comps in the high single-digit to low double-digit range, with guests responding favorably to our new spring fashion sets, new offerings within All in Motion owned brands and our limited-time partnership with Diane von Furstenberg. In fact, our collaboration with DVF was one of the strongest limited-time partnerships we've had in years, driving millions of unique visits to our site daily during launch week and increasing basket size by around 15% on average. This partnership demonstrates our continued ability to bring fashion to all with incredible style and value.

服裝雖然本季下降了低個位數，但可比銷售額較第四季成長了近 4 個百分點。年輕當代類別的表現提供了從高個位數到低兩位數範圍內的比較，客人對我們的新春季時裝套裝、All in Motion 自有品牌的新產品以及我們與Diane von Furstenberg 的限時合作夥伴關係反應良好。事實上，我們與DVF 的合作是我們多年來最牢固的限時合作夥伴關係之一，在發布週期間每天為我們的網站帶來數百萬次獨立訪問，並使購物籃規模平均增加約15% 。此次合作展現了我們持續以令人難以置信的風格和價值為所有人帶來時尚的能力。

Frequency categories saw comparable sales declines in the low single digits. Seasonal moments continue to outperform overall trends in frequency categories, particularly in Food & Beverage. And we saw strong performance in both Valentine's Day and Easter time frames. Sales in Home and Hardlines continue to be soft, though there were notable bright spots in both areas. In Home, the team has found ways to reduce costs in select Home categories, and we passed those savings along to guests. This has led to an acceleration in unit velocity in these categories.

頻率類別的可比銷售額下降幅度為低個位數。季節性時刻在頻率類別中繼續跑贏整體趨勢，尤其是在食品和飲料領域。我們在情人節和復活節期間都看到了強勁的表現。家居和耐用品的銷售仍然疲軟，儘管這兩個領域都有明顯的亮點。在家居方面，團隊找到了降低特定家居類別成本的方法，並將這些節省的費用轉嫁給了客人。這導致這些類別的單位速度加速。

In Hardlines, the entertainment category grew high single digits, reflecting notable strength from our exclusive offerings of Taylor Swift's latest album release, The Tortured Poets Department. With an exclusive-to-Target version of the album and 3 exclusive CD options, this was the strongest music preorder in our history, elevated by in-store events, including fun photo-ops for the most hardcore Swifties out there as well as the strong presence of our Taylor exclusive on her social channels.

在《Hardlines》中，娛樂類別實現了高個位數成長，反映出我們獨家提供的泰勒絲最新專輯《The Tortured Poets Department》的顯著實力。憑藉該專輯的獨家 Target 版本和 3 張獨家 CD 選項，這是我們歷史上最強勁的音樂預購，店內活動進一步提升了這一點，包括為最鐵桿的 Swifties 以及我們的泰勒獨家作品在她的社交渠道上表現強勁。

In the Sporting Goods category, our exclusive-to-Target partnership with Prince delivered incredible sales momentum in all things pickleball. Beyond the quality and value of this line's equipment and gear, guests are loving the apparel offerings in the line as well. Across our sales channels, sales were the strongest in digital where first quarter comparable sales grew 1.4%. This was driven largely by continued growth in our same-day services as well as meaningful improvement in our Apparel business this quarter.

在體育用品類別中，我們與 Prince 的獨家 Target 合作夥伴關係為所有泡菜球產品帶來了令人難以置信的銷售勢頭。除了該系列設備和裝備的品質和價值之外，客人還喜歡該系列的服裝產品。在我們的銷售通路中，數位銷售最為強勁，第一季可比銷售額成長了 1.4%。這主要是由於我們當日服務的持續成長以及本季服裝業務的顯著改善。

At our Financial Community Meeting in March, Cara and I shared details about changes we've made to our free-to-join loyalty program, Target Circle. And while it is still very early, we're encouraged by the reaction to our April relaunch of Target Circle. In Q1, we added more than 1 million new Target Circle members with strong engagement across all 3 levels of the platform. Our guests tell us they find the program easier to use, appreciate the clarity of the promotions offered and understand the value provided with their membership.

在三月的金融社區會議上，卡拉和我分享了我們對免費加入的忠誠度計劃 Target Circle 所做的更改的詳細資訊。雖然現在還為時過早，但我們對 4 月重新推出 Target Circle 的反應感到鼓舞。第一季度，我們新增了超過 100 萬個 Target Circle 會員，他們在平台的所有 3 個層級上都有很強的參與度。我們的客人告訴我們，他們發現該計劃更易於使用，欣賞所提供的促銷活動的明確性，並了解其會員資格所提供的價值。

Social sentiment is up compared to a year ago, and mentions of Target Circle on social platforms increased by more than 500% versus last year, boosted by our immensely popular marketing campaign featuring Saturday Night Live alum, Kristen Wiig, revisiting her role as the Target Lady.

與一年前相比，社會情緒有所上升，社交平台上對Target Circle 的提及量比去年增加了500% 以上，這得益於我們以周六夜現場(Saturday Night Live) 明星克里斯汀·韋格(Kristen Wiig) 為主角的廣受歡迎的營銷活動，她重新審視了自己作為Target 的角色女士。

In addition to these memorable ads, guests are responding to the automatic application of Target Circle deals when they shop, giving them confidence that they are always getting the best deal on every Target run. Plus, strike-through pricing on Target.com and our app helps guests to clearly see the value they're receiving on those offers. We believe that pricing and value transparency will only become more important with time and that we can continue to grow awareness of the great value we offer across our assortment.

除了這些令人難忘的廣告之外，客人購物時還會對自動應用的 Target Circle 優惠做出反應，這讓他們相信每次 Target 跑步都能獲得最優惠的價格。此外，Target.com 和我們的應用程式上的刪除線定價可幫助客人清楚地看到他們從這些優惠中獲得的價值。我們相信，隨著時間的推移，定價和價值透明度只會變得更加重要，我們可以繼續提高人們對我們整個產品系列所提供的巨大價值的認識。

And while these enhancements drive performance in both our stores and digital channels, our most recent Target Circle Week in April drove outsized benefit to our digital performance. In fact, Q1 Target Circle Week drove the highest traffic to our website and app that we've seen in the past year outside of the Q4 holiday season. In addition, of the Target Circle members who shopped us during Target Circle Week, more than 3/4 redeemed an offer. We're very encouraged by the strong response, and we are just getting started.

雖然這些增強功能推動了我們商店和數位通路的業績，但我們最近四月份的 Target Circle Week 為我們的數位業績帶來了巨大的好處。事實上，第一季 Target Circle Week 為我們的網站和應用程式帶來了去年第四季假期之外最高的流量。此外，在 Target Circle 週期間購買過我們產品的 Target Circle 會員中，超過 3/4 的人兌換了優惠。我們對大家的強烈反應感到非常鼓舞，而我們才剛開始。

Beyond Target Circle, our team's work to remodel our digital platforms is paying multiple dividends. Newly developed generative AI and personalization capabilities are expanding scope and reach of what we can offer our guests in terms of product recommendations, search results and more. We recently engaged in a pilot with one of our biggest vendors to test our latest personalization capabilities with guests shopping our personal care categories. We're very encouraged by early test results, which showed a nearly 3x lift in conversion rates from personalized promotions versus mass offers, including higher sales lift across the rest of the category as well.

除了 Target Circle 之外，我們團隊重塑數位平台的工作正在帶來多重紅利。新開發的生成人工智慧和個人化功能正在擴大我們在產品推薦、搜尋結果等方面為客人提供的服務範圍和範圍。我們最近與我們最大的供應商之一進行了試點，以測試我們最新的個人化功能，讓客人購買我們的個人護理類別。早期測試結果讓我們深受鼓舞，該結果顯示個人化促銷的轉換率比大眾優惠提高了近 3 倍，其他類別的銷售額也得到了更高的提升。

In addition to driving more personalization, we're also focused on growing relevance, particularly where there may be opportunities in our current online assortment. As we shared previously, we think our digital marketplace, Target Plus, will play an outsized role in our growth in the quarters and years to come, even as we continue to prioritize the curation of both our assortment and digital partners on the platform. In the past year, we've more than doubled the number of partners and products hosted on Target Plus. We are excited to expand offerings with current partners and introduce new brands to the platform in Q2 and beyond.

除了推動更多的個人化之外，我們還專注於提高相關性，特別是在我們目前的線上產品類別中可能存在機會的情況下。正如我們之前分享的那樣，我們認為我們的數位市場 Target Plus 將在未來幾季和幾年的成長中發揮巨大作用，儘管我們繼續優先考慮平台上我們的品類和數位合作夥伴的管理。去年，我們在 Target Plus 上託管的合作夥伴和產品數量增加了一倍以上。我們很高興能夠在第二季及以後與現有合作夥伴擴大產品範圍，並向該平台引入新品牌。

As we've been saying for years now, the lines between physical and digital shopping continue to blur across retail, and we're taking an industry-leading position to minimize the distinction further. In fact, we view digital as more than just a sales channel. It's also the connective tissue across most of our transactions. Around half of guests that open the Target app on a given day make in-store purchases with us that same day.

正如我們多年來一直所說的那樣，實體購物和數位購物之間的界限在整個零售業中繼續變得模糊，而我們正在採取行業領先地位，以進一步縮小這種區別。事實上，我們認為數位化不僅僅是一個銷售管道。它也是我們大多數交易中的結締組織。在某一天打開 Target 應用程式的客人中，約有一半會在當天在我們的店內購買。

Guests look to our digital platforms for inspiration, helping to plan their next in-store Target run. They use the app while in our stores to check prices, compare products and even navigate our stores more seamlessly. And whether they are choosing to walk through our physical or digital front door, we want to provide the inspiring and welcoming Target experience our guests expect from us.

客人在我們的數位平台上尋找靈感，幫助規劃他們的下一次店內 Target 跑步活動。他們在我們的商店中使用該應用程式來檢查價格、比較產品，甚至更無縫地瀏覽我們的商店。無論他們選擇走進我們的實體前門還是數位前門，我們都希望為客人提供他們期望從我們這裡獲得的鼓舞人心和熱情的塔吉特體驗。

Beyond stores and digital, we're exploring new ways to grow the business outside of these traditional channels. Back in March, we launched a new wholesale collaboration with Canadian retailer, Hudson's Bay, bringing our iconic Cat & Jack's kids apparel brand to Canadian families in its stores and online. The launch is off to a great start with Hudson's Bay customers buying more kids apparel each shopping trip, leading to a 15% increase in their basket size, and Cat & Jack T-shirts and dresses among the top-selling pieces.

除了商店和數位管道之外，我們還在探索在這些傳統管道之外發展業務的新方法。早在三月份，我們就與加拿大零售商 Hudson's Bay 啟動了新的批發合作，透過其商店和網路將我們標誌性的 Cat & Jack's 兒童服裝品牌帶給加拿大家庭。此次發布取得了良好的開端，Hudson's Bay 的顧客每次購物都會購買更多兒童服裝，導致他們的購物籃尺寸增加 15%，Cat & Jack T 恤和連身裙成為最暢銷的單品。

We're already expanding the collection with even more Cat & Jack items that they'll love in categories like swim, outerwear and shoes to keep driving traffic and sales. While it's still early, we're excited about the success of this launch and exploring additional opportunities to bring the love of Target's owned brands to new markets and retail partners.

我們已經在游泳、外套和鞋類等類別中推出了更多他們會喜歡的 Cat & Jack 商品，以不斷推動客流量和銷售。雖然現在還為時過早，但我們對此次發布的成功感到興奮，並探索更多機會，將塔吉特自有品牌的熱愛帶給新市場和零售合作夥伴。

Now let's turn our attention to our expectations for the second quarter. Summer is a time for family and friends, enjoying the beautiful outdoors and embracing adventures near and far. Q2 represents more than half of the year's spend on travel gear, and we have all the must-haves at great prices. From our only-at-Target Open Story owned brand of packing cubes, luggage and more to this summer's hottest books for the airplane and the beach, we have you covered no matter where and how you travel.

現在讓我們把注意力轉向對第二季的預期。夏季是家人和朋友享受美麗戶外、擁抱遠近冒險的時刻。第二季的旅行裝備支出佔全年旅行裝備支出的一半以上，我們以優惠的價格提供所有必需品。從我們唯一的 at Target Open Story 自有品牌的包裝盒、行李箱等，到今年夏天最熱門的飛機和海灘書籍，無論您在哪裡、如何旅行，我們都能滿足您的需求。

For the outdoor explorer, we are excited about our latest offerings in our owned brand, Embark, designed to celebrate family time in the great outdoors. Whether roughing it or glamping is your style, our assortment of tents, shelters, sleeping bags, camping chairs and more provide functionality, quality and value for those with a bit of wanderlust. And for those looking to celebrate at home, we have the must-haves for every occasion, from this summer's backyard pool parties to the greatest red, white and blue fashion to celebrate the Fourth of July in style.

對於戶外探險家來說，我們對自有品牌 Embark 的最新產品感到興奮，該產品旨在慶祝戶外活動中的家庭時光。無論您喜歡粗野露營還是豪華露營，我們的各種帳篷、庇護所、睡袋、露營椅等都能為熱愛旅行的人提供功能性、品質和價值。對於想要在家慶祝的人來說，我們有適合各種場合的必備品，從今年夏天的後院泳池派對到慶祝獨立日的最棒的紅、白、藍時裝。

As Brian mentioned earlier, value remains a top priority for consumers, and we recently reduced prices of more than 1,500 items across our assortment in many markets. In this summer, that list will grow to nearly 5,000 frequently shopped items, all at new lower prices. We also took a hard look at some of the most popular products from last year's summer assortment and reduced retail on a wide range of items, including season-locked deals like $1 pool noodles, $5 pool floats and $15 coolers. Plus, guests can save even more every day when they add personalized promotions available through Target Circle and 5% off every purchase with the Target Circle Card.

正如 Brian 之前提到的，價值仍然是消費者的首要考慮因素，最近我們在許多市場降低了 1,500 多種商品的價格。今年夏天，該清單將增加到近 5,000 種經常購買的商品，並且全部以新的更低價格出售。我們也認真審視了去年夏季系列中一些最受歡迎的產品，並減少了多種商品的零售量，包括限季優惠，例如1 美元的泳池麵條、5 美元的泳池漂浮物和15 美元的冷卻器。此外，透過 Target Circle 添加個人化促銷活動以及使用 Target Circle 卡每次購物可享 5% 的折扣，賓客每天可以節省更多。

And of course, our only-at-Target owned-brand offerings deliver unmatched value for our guests, providing the perfect blend of great out-the-door pricing and incredible quality. And just in time for the neighborhood grill-out, we are bringing an abundance of new food offerings through our Good & Gather and Favorite Day owned brands. With more than 125 new items hitting shelves, plus exclusive flavors of hot national brands like bubly sparkling water and poppi, we expect to be included in a whole lot of barbecues this summer.

當然，我們的 Target 自有品牌產品為我們的客人提供了無與倫比的價值，提供了優惠的戶外價格和令人難以置信的品質的完美結合。正好趕上鄰裡燒烤，我們透過 Good & Gather 和 Favourite Day 自有品牌帶來了大量新食品。超過 125 種新產品上架，加上氣泡水和 poppi 等熱門民族品牌的獨特口味，我們預計今年夏天將出現在眾多燒烤中。

But summer always goes by quickly. And before we know it, guests will shift their focus from fun in the sun to preparing for a return to school and college. Our brand stands tall for families, so it is no surprise that around 70% of our guests shop in our Back-to-School and Back-to-College categories. And this year, we are going bigger than ever in that critical season. Our goal is to help guests celebrate the joy of going back to school wherever and whenever they want to shop, delivering an easy and convenient omnichannel shopping experience surrounded by relevant and new products at unbeatable value.

但夏天總是過得很快。不知不覺中，客人們就會將注意力從陽光下的樂趣轉移到為重返學校和大學做準備。我們的品牌深受家庭歡迎，因此，大約 70% 的客人在我們的「返校」和「返校」類別中購物也就不足為奇了。今年，在這個關鍵的季節，我們的規模比以往任何時候都要大。我們的目標是幫助客人享受重返學校的快樂，無論何時何地他們想要購物，提供輕鬆便捷的全通路購物體驗，周圍有具有無與倫比價值的相關新產品。

Before I turn things over to Michael, I want to pause and thank our teams for yet another quarter of tirelessly supporting our guests, our shareholders and each other. Although they make it look easy, managing in the current environment is anything but straightforward, and it is their passion and talent that allows us to drive great interactions with our guests to keep inventory lean and yet improve our in-stock positions and set us up quarter after quarter to help all families discover the joy of everyday life.

在我把事情交給邁克爾之前，我想停下來感謝我們的團隊又一個季度不知疲倦地支持我們的客人、股東和彼此。雖然他們讓事情看起來很簡單，但在當前環境下進行管理絕非直截了當，正是他們的熱情和才華使我們能夠與客人進行良好的互動，以保持庫存精簡，同時改善我們的庫存狀況並為我們奠定基礎一個又一個季度幫助所有家庭發現日常生活的樂趣。

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

這樣，我會將電話轉給麥可。

Thanks, Christina. As Brian highlighted earlier, we take a long-term approach when making investments in our business with a focus on delighting consumers and our guests both today and in the years ahead. This approach has led to outstanding financial performance over the long term, and we're confident it will continue to serve us well in the months and years ahead. And today, as I step into my new role as COO, I'm bringing this long-term perspective with me as I work with my new team to invest in a reliable and differentiated guest experience.

謝謝，克里斯蒂娜。正如布萊恩之前所強調的那樣，我們在業務投資時採取長期策略，重點是讓當今和未來幾年的消費者和客人滿意。從長遠來看，這種方法帶來了出色的財務業績，我們相信它將在未來的幾個月和幾年中繼續為我們提供良好的服務。今天，當我擔任營運長的新角色時，我將帶著這種長期視角與新團隊合作，投資可靠且差異化的賓客體驗。

In support of that experience, over the last 5 quarters, our team has done an outstanding job of maintaining appropriate inventory levels aligned with sales trends in each of our categories. This discipline has led to a notably leaner inventory position overall and, most importantly, much better in-stocks as well. Those improvements continued in the first quarter across multiple measures of reliability.

為了支持這種經驗，在過去 5 個季度中，我們的團隊在保持適當的庫存水準與每個類別的銷售趨勢保持一致方面做得非常出色。這種紀律導致整體庫存狀況顯著精簡，最重要的是，庫存狀況也明顯改善。這些改進在第一季在多項可靠性指標上繼續進行。

A key indicator of this progress is our overall in-stock position, which improved by more than 3 percentage points versus the prior quarter and even more when compared with the year ago. While this broad measure is critically important, the team also drills down into far more granular metrics, allowing them to focus on the biggest opportunities for improvement.

這項進展的關鍵指標是我們的整體庫存狀況，與上一季相比改善了 3 個百分點以上，與去年同期相比改善幅度更大。雖然這一廣泛的衡量標準至關重要，但團隊也深入研究更細化的指標，使他們能夠專注於最大的改進機會。

For example, our top item in-stock measure focuses on the 1/3 of our assortment that turns most quickly, and we've seen impressive progress on this measure in recent quarters. More specifically, in Q1, the out-of-stock rate on this group of top items was less than half of what we're seeing overall, having improved by more than 4 percentage points when compared with a year ago.

例如，我們的頂級庫存衡量指標專注於週轉速度最快的 1/3 品種，最近幾個季度我們在該衡量指標上取得了令人印象深刻的進展。更具體地說，在第一季度，這組熱門商品的缺貨率不到我們整體看到的一半，與一年前相比改善了 4 個百分點以上。

We also had in-stock measures for our highest-volume stores and our small-format stores, both of which faced unique operating challenges. We also carefully measure in-stocks on our new store portfolio to ensure we make a strong first impression when we open in new neighborhoods. And we focus on our seasonal programs given the limited time window in which those assortments are offered. I'm happy to report that our team delivered improvements in each of these in-stock measures in Q1, enabling the overall improvement I highlighted earlier.

我們也為銷量最高的商店和小型商店制定了庫存措施，這兩家商店都面臨著獨特的營運挑戰。我們也仔細衡量新店組合的庫存，以確保在新社區開幕時給人留下深刻的第一印象。鑑於提供這些品種的時間有限，我們專注於季節性計劃。我很高興地向大家報告，我們的團隊在第一季對每項庫存指標都進行了改進，從而實現了我之前強調的整體改進。

A critical factor supporting our reliability is the upstream supply chain where we've been seeing improvements as well. These include the new upstream distribution facilities we've opened over the last couple of years, which have been seeing improvements in their own reliability measures even as they continue to ramp their throughput.

支持我們可靠性的關鍵因素是上游供應鏈，我們也看到了上游供應鏈的改善。其中包括我們在過去幾年中開設的新上游分銷設施，這些設施在不斷提高吞吐量的同時，其自身的可靠性措施也得到了改進。

We've also seen improvements through continued collaboration with our vendor partners where we're approaching pre-pandemic levels of reliability regarding inbound shipments arriving on time and in full. Given the importance of reliability to our guests, these measures should always remain a primary focus for our team. While we're proud of our recent progress, we know we have more room to improve, and we're committed to extending these gains in the quarters and years ahead.

透過與供應商合作夥伴的持續合作，我們也看到了一些改進，我們在入庫貨物按時、足額到達方面的可靠性正在接近大流行前的水平。鑑於可靠性對我們的客人的重要性，這些措施應始終是我們團隊的首要關注點。雖然我們對最近的進展感到自豪，但我們知道我們還有更大的改進空間，並且我們致力於在未來幾季和幾年內擴大這些成果。

Beyond product availability, our store teams continue to focus on retail fundamentals and operational excellence, ensuring we maintain best practices, particularly when it comes to the guest experience. One change we recently implemented was the decision to limit the number of items at self-checkout in our stores nationwide. This decision was made after rigorous testing last year and is intended to ensure our team can provide the best possible experience at both our full-service checkout lanes and also at self-checkout. As a result, when we made the recent change in our self-checkout lanes, we also engaged with our store teams across the country to ensure they are consistently providing adequate staffing at our full-service lanes.

除了產品供應之外，我們的商店團隊繼續專注於零售基礎和卓越運營，確保我們保持最佳實踐，特別是在客戶體驗方面。我們最近實施的一項變更是決定限制全國商店自助結帳的商品數量。這項決定是在去年經過嚴格測試後做出的，旨在確保我們的團隊能夠在全方位服務結帳通道和自助結帳處提供最佳體驗。因此，當我們最近對自助結帳通道進行調整時，我們也與全國各地的商店團隊合作，以確保他們始終為我們的全方位服務通道提供足夠的人員配備。

With these recent changes and consistent with results from last year's test, we've seen a rapid rise in guest satisfaction scores relating to both wait times and the quality of interactions with our team at checkout. For both of these metrics, average scores in the first quarter were higher than a year ago, and we saw increases in these metrics between the beginning and the end of the quarter as well.

透過這些最近的變化，並與去年的測試結果一致，我們發現與等待時間和結帳時與我們團隊互動的品質相關的賓客滿意度得分迅速上升。對於這兩個指標，第一季的平均得分都高於一年前，我們也看到這些指標在季度初和季度末之間也有所增加。

We're also pleased with the guest response to our most recently launched Drive Up services, namely the ability for guests to get their favorite Starbucks items with their Drive Up order and the option to make a return from the Drive Up lane. While we received high satisfaction scores across all of our same-day services, returns received the highest rating of any service we provide. And notably, the Net Promoter Score for Drive Up returns moved even higher in the first quarter, exceeding the sky-high score this service was receiving a year ago.

我們也對客人對我們最近推出的 Drive Up 服務的反應感到滿意，即客人能夠透過 Drive Up 訂單獲得他們最喜歡的星巴克商品，並可以選擇從 Drive Up 通道返回。雖然我們在所有當日送達服務中都獲得了很高的滿意度，但退貨在我們提供的所有服務中獲得了最高的評價。值得注意的是，Drive Up 回報的淨推薦值在第一季甚至更高，超過了該服務一年前獲得的最高分。

And finally, I want to highlight the entire team's effort to support the relaunch of Target Circle in early April with a special shout-out to our store team. From the installation of compelling new signing throughout every sales floor across the country and the focus on providing an engaging experience for guests who wanted to better understand our new program, our team did an outstanding job preparing for and supporting the launch of this new program. And while it's only one of many ways to measure its success, I'm really proud of our team's role in signing up more than 1 million new Target Circle members in the first quarter.

最後，我想強調整個團隊為支持 Target Circle 在 4 月初重新推出所做的努力，並特別向我們的商店團隊表示感謝。從在全國每個銷售樓層安裝引人注目的新標誌，到專注於為想要更好地了解我們新計劃的客人提供引人入勝的體驗，我們的團隊在準備和支持這一新計劃的啟動方面做得非常出色。雖然這只是衡量其成功的眾多方法之一，但我對我們團隊在第一季簽約超過 100 萬名新 Target Circle 成員所發揮的作用感到非常自豪。

Now let me turn to our first quarter financial performance and our expectations for the remainder of the year. On the top line in Q1, total sales declined 3.2%, reflecting a 3.7% decline in comparable sales, partially offset by the impact of our new stores. Among the drivers of our comparable sales, traffic was down 1.9% in the first quarter. The average transaction was also down 1.9% as consumers continue to spend cautiously, particularly in discretionary categories.

現在讓我談談我們第一季的財務表現以及我們對今年剩餘時間的預期。第一季的總銷售額下降了 3.2%，反映出可比銷售額下降了 3.7%，但部分被新店的影響所抵消。在我們可比較銷售額的推動因素中，第一季的客流量下降了 1.9%。由於消費者繼續謹慎消費，尤其是在非必需品類別上，平均交易量也下降了 1.9%。

Total revenue was down 3.1% in the quarter, reflecting a 3.9% increase in other revenue. Among the components of other revenue, a decline in credit card profit sharing was offset primarily by the benefit of more than 20% growth in our Roundel ad business, along with increases in several smaller items, including revenue from Target Plus.

本季總營收下降 3.1%，反映出其他營收成長 3.9%。在其他收入的組成部分中，信用卡利潤分成的下降主要被我們的 Roundel 廣告業務增長超過 20% 的收益以及包括 Target Plus 在內的幾個較小項目的增長所抵消。

Our first quarter gross margin rate was about 140 basis points higher than last year. About 1 percentage point of this improvement was in merchandising where we continue to benefit from favorable freight rates and other cost savings, which offset higher promotional markdown rate. Also in Q1, we saw about 20 basis points of rate improvement from category mix and 20 basis points of benefit from inventory shrink.

我們第一季的毛利率比去年高出約140個基點。這項改善的約 1 個百分點是在商品銷售方面，我們繼續受益於有利的運費和其他成本節約，這抵消了較高的促銷降價率。同樣在第一季度，我們看到品類組合帶來了約 20 個基點的利率改善，庫存縮減帶來了 20 個基點的收益。

As I mentioned at our Financial Community Meeting in March, we've been encouraged to see a growing focus on retail theft at the federal, state and local levels, and we continue to take our own steps to reduce theft in our stores. Based on our recent physical inventory counts, we continue to believe that shrink rates are positioned to reach a plateau this year. And in Q1, the results of those inventory counts were favorable versus our expectations.

正如我在三月的金融社區會議上提到的那樣，看到聯邦、州和地方各級對零售盜竊問題的關注日益增加，我們感到很鼓舞，並且我們將繼續採取自己的措施來減少商店中的盜竊。根據我們最近的實體庫存統計，我們仍然認為今年的收縮率將達到穩定水平。在第一季度，這些庫存盤點的結果好於我們的預期。

As a result, we now expect to see a full year gross margin rate benefit related to shrink, most notably in the second quarter. While this improvement will serve as only a small first step in offsetting the significant headwind we faced in recent years, we're encouraged to see this metric moving in the right direction.

因此，我們現在預計全年毛利率將因收縮而受益，尤其是在第二季。雖然這項改進只是抵消我們近年來面臨的重大阻力的一小步，但我們很高興看到這項指標朝著正確的方向發展。

On the SG&A line, we saw a rate increase of about 130 basis points in the first quarter, reflecting the deleveraging effect of a decline in sales, combined with the impact of multiple cost increases, including compensation and benefits for our team and higher marketing expense to support the launch of Target Circle.

在SG&A方面，我們看到第一季利率上漲了約130個基點，反映了銷售額下降的去槓桿效應，再加上多重成本增加的影響，包括我們團隊的薪酬和福利以及更高的營銷費用支援Target Circle的推出。

On the D&A line, we saw a rate increase of about 20 basis points over last year, reflecting the deleveraging impact of lower sales, along with an increase in dollars driven by a number of recently completed capital projects. Altogether, we're pleased that our operating margin rate was up slightly from a year ago despite a decline in sales.

在 D&A 線上，我們看到利率比去年增加了約 20 個基點，反映出銷售下降的去槓桿化影響，以及一些最近完成的資本項目推動的美元上漲。總而言之，我們很高興儘管銷售額下降，但我們的營業利潤率仍比一年前略有上升。

Our enterprise efficiency efforts played a key role in this outcome, resulting in savings throughout our P&L. These savings helped to offset continued investments in our team and pressure from year-over-year investments in promotions and marketing. While these efficiency efforts were broad-based, they included work within merchandising to implement changes in owned-brand sourcing and design, resulting in lower product costs and other savings.

我們的企業效率努力在這項成果中發揮了關鍵作用，從而在整個損益表中實現了節省。這些節省有助於抵消我們團隊的持續投資以及促銷和行銷逐年投資帶來的壓力。雖然這些提高效率的努力基礎廣泛，但它們包括在銷售範圍內實施自有品牌採購和設計變革的工作，從而降低產品成本並節省其他費用。

They also included work that delivered productivity gains across our general merchandise and food distribution networks, improvements in middle-mile fill rates and changes within our last-mile delivery capability to optimize units per package and save on delivery costs. And while there's much more opportunity in front of us, the team is already making progress in reducing complexity on the apparel floor pad and the back rooms of our stores, reducing the cost of digital fulfillment while making our team more efficient overall.

其中還包括提高我們的一般商品和食品分銷網絡的生產力、提高中英里填充率以及改變我們最後一英里的交付能力以優化每個包裝的單位並節省交付成本的工作。雖然我們面前有更多的機會，但團隊已經在降低服裝地板和商店後室的複雜性方面取得了進展，降低了數位化履行的成本，同時提高了我們團隊的整體效率。

As I mentioned earlier, we continue to feel really good about our inventory position, which was 7% lower than a year ago, even as we continue to benefit from the in-stock improvements I already covered. When we look back to the first quarter of 2019, total inventory has increased about 30% over those 5 years, while sales in the quarter just ended were about 39% higher than in 2019. Given that this growth in sales was largely driven by an increase in our sales per store, an increase in our inventory turns is something we'd expect to see and something that should be sustainable over time.

正如我之前提到的，儘管我們繼續受益於我已經介紹過的庫存改進，但我們仍然對庫存狀況感到非常滿意，庫存狀況比一年前下降了 7%。當我們回顧 2019 年第一季時，總庫存在這 5 年裡增加了約 30%，而剛結束的季度的銷售額比 2019 年高出約 39%。商店的銷售額增加，庫存週轉率增加是我們期望看到的，並且隨著時間的推移應該是可持續的。

Now I want to turn to capital deployment and briefly reiterate our priorities, which have been consistent for several decades. First, we look to fully invest in our business and projects that meet our strategic and financial criteria. Second, we look to support our dividend and build on our decades-long record of annual dividend growth. And finally, we deploy excess cash to repurchase shares within the limits of our middle A credit ratings.

現在我想談談資本部署，並簡要重申我們的優先事項，這些優先事項幾十年來始終如一。首先，我們希望充分投資於符合我們策略和財務標準的業務和專案。其次，我們希望支持我們的股息，並鞏固我們數十年的年度股息成長記錄。最後，我們在中等 A 信用評等的範圍內動用多餘的現金來回購股票。

Regarding the first priority, first quarter CapEx was just under $700 million, and we remain on track to invest a total of $3 billion to $4 billion for the full year. Regarding the second priority, we paid dividends of $508 million in the first quarter, up about 2% from a year ago. Later this quarter, we plan to recommend that our Board approve a small increase in the quarterly dividend in support of our goal to build on our decades-long record of annual dividend increases and move toward a 40% payout ratio over time.

關於第一個優先事項，第一季資本支出略低於 7 億美元，我們仍有望全年投資總額 30 億至 40 億美元。關於第二個優先事項，我們第一季支付了5.08億美元的股息，比去年同期成長了約2%。本季度晚些時候，我們計劃建議董事會批准小幅增加季度股息，以支持我們的目標，即在數十年的年度股息增加記錄的基礎上再接再厲，並逐步向 40% 的派息率邁進。

Regarding the third priority, we didn't repurchase any shares in the first quarter, consistent with the expectation I shared at our Financial Community Meeting. As I mentioned at that time, we focused on strengthening our balance sheet throughout 2023 and saw a rapid recovery in our debt metrics. And as I also mentioned that day, given our expectation for Target's financial performance for the remainder of 2024, we may have the ability to resume share repurchase activity later this year while maintaining our debt ratings at the middle A level.

關於第三個優先事項，我們在第一季沒有回購任何股票，這與我在金融界會議上分享的預期一致。正如我當時所提到的，我們在 2023 年專注於強化資產負債表，並看到我們的債務指標迅速恢復。正如我當天也提到的，考慮到我們對塔吉特2024 年剩餘時間財務業績的預期，我們可能有能力在今年晚些時候恢復股票回購活動，同時將我們的債務評級維持在中等A 級。

Now I'll close my commentary on the quarter by covering our after-tax return on invested capital. For the trailing 12 months through the end of Q1, our business delivered an after-tax ROIC of 15.4%, up from 11.4% a year ago. An after-tax return of 15% is strong performance relative to our industry, and we expect to see continued growth in this metric into the high teens over time.

現在，我將透過投資資本的稅後回報來結束對本季的評論。截至第一季末的過去 12 個月，我們業務的稅後投資報酬率為 15.4%，高於一年前的 11.4%。相對於我們的行業來說，15% 的稅後回報率是強勁的表現，我們預計隨著時間的推移，這一指標將持續增長到十幾歲。

Now I want to turn to our expectations for the second quarter and the remainder of the year. In the second quarter, we are planning for a comparable sales increase in the 0% to 2% range. While this is below the growth rate we'd expect to deliver over time, it reflects the continued cautious approach to our near-term outlook, which has served us well in recent quarters.

現在我想談談我們對第二季和今年剩餘時間的預期。在第二季度，我們計劃實現 0% 至 2% 範圍內的可比銷售額成長。雖然這低於我們預期的長期成長率，但這反映出我們對近期前景的持續謹慎態度，這在最近幾季對我們很有幫助。

On the bottom line in Q2, we're guiding to a range of $1.95 to $2.35. The midpoint of this EPS range represents a growth rate of approximately 20% over last year as we continue to build on the profit rate expansion we've seen over the last few quarters. For the full year, we're maintaining our prior guidance for a comparable sales increase in the 0% to 2% range and EPS of $8.60 to $9.60. We believe these ranges continue to properly capture the range of scenarios we're contemplating given how the environment and our business has progressed so far this year.

就第二季的底線而言，我們的指導範圍為 1.95 美元至 2.35 美元。隨著我們繼續在過去幾季看到的利潤率擴張的基礎上繼續發展，該每股收益範圍的中點代表著比去年約 20% 的成長率。對於全年，我們維持先前的預期，即可比銷售額成長在 0% 至 2% 範圍內，每股收益為 8.60 美元至 9.60 美元。考慮到今年迄今為止的環境和我們的業務進展情況，我們相信這些範圍繼續正確地反映了我們正在考慮的場景範圍。

Before I turn the call back over to Brian, I want to thank the team for their continued energy and dedication in what continues to be a very complicated environment. While I'm still digging into my new role leading operations, I've been inspired and impressed by our team's passion, ingenuity and strong desire to win together. Even as they continue to navigate the near term with agility, the team is also keeping an eye firmly on the future and thinking about how Target will be operating in 1, 3, 5 or even 10 years from now. It's energizing work, and I'm grateful for the opportunity to serve alongside this amazing team.

在我將電話轉回給布萊恩之前，我要感謝團隊在仍然非常複雜的環境中持續的精力和奉獻精神。雖然我仍在深入研究領導營運的新角色，但我們團隊的熱情、獨創性和共同獲勝的強烈願望給我留下了深刻的印象。即使他們繼續敏捷地應對近期的挑戰，團隊也密切關注未來，並思考塔吉特在 1、3、5 甚至 10 年後將如何運作。這是一項充滿活力的工作，我很高興有機會與這個出色的團隊一起服務。

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

現在我將把電話轉回給布萊恩。

Before we turn to your questions, I want to recap what we've covered today, including our view of our business, the environment and both our near-term and long-term prospects.

在回答您的問題之前，我想回顧一下我們今天討論的內容，包括我們對業務、環境以及近期和長期前景的看法。

Our view of the consumer and the environment remains the same as 90 days ago, and we're pleased that Q1 results were firmly in line with our expectations. While we won't be satisfied until we return to growth, we're encouraged by the meaningful progress we've seen in recent quarters.

我們對消費者和環境的看法與 90 天前相同，我們很高興第一季的業績完全符合我們的預期。雖然我們在恢復成長之前不會感到滿意，但我們對最近幾季所看到的有意義的進展感到鼓舞。

These positive indicators include improving top line trends, resumption of digital growth in the first quarter, led by double-digit growth in Drive Up, continued growth in our Beauty category and a meaningful improvement in our Apparel comp in Q1. These trends reinforce our confidence that we're on the right track and positioned to get back to growth in Q2.

這些正面指標包括營收趨勢改善、第一季在 Drive Up 兩位數成長的帶動下恢復數位成長、我們的美容品類持續成長以及第一季度服裝比較的顯著改善。這些趨勢增強了我們的信心，即我們正走在正確的軌道上，並有能力在第二季度恢復成長。

Our team is doing an outstanding job in a complicated environment, planning prudently while staying agile and responsive. Our guests are responding to newness throughout our assortment and continuing to turn to us as they celebrate important seasonal moments. They appreciate our focus on value, and they're responding well to recent innovations in our loyalty offering and fulfillment services. They're also responding to continuous improvements in our shopping experience as our team doubles down on retail fundamentals like convenience and reliability.

我們的團隊在複雜的環境中表現出色，審慎規劃，同時保持敏捷和回應能力。我們的客人對我們品種中的新事物做出了反應，並在慶祝重要的季節性時刻時繼續轉向我們。他們讚賞我們對價值的關注，並且對我們最近在忠誠度服務和履行服務方面的創新做出了良好的反應。他們也對我們購物體驗的不斷改進做出了回應，因為我們的團隊在便利性和可靠性等零售基礎上加倍努力。

At the same time, we're continuing to invest in the long term in new stores and existing stores, the digital shopping experience, our multi-category assortment, supply chain, technology and our rapidly growing Roundel ad business. And we're exploring new opportunities, including the potential to expand the scale and reach of our owned brands through wholesaling arrangements in markets we don't currently serve. And of course, we're continuing to focus on our team, on their pay, benefits, training and development, because they're the #1 differentiator of our brand.

同時，我們將繼續對新店和現有商店、數位購物體驗、多品類分類、供應鏈、技術以及快速成長的 Roundel 廣告業務進行長期投資。我們正在探索新的機會，包括透過在我們目前不服務的市場中進行批發安排來擴大我們自有品牌的規模和影響力的潛力。當然，我們將繼續關注我們的團隊，關注他們的薪資、福利、培訓和發展，因為他們是我們品牌的第一大差異化因素。

And our efficiency efforts are providing extra fuel for all of these investments. As the team delivers incremental savings, based on the rapid growth we've seen over the last half decade, they've created additional capacity within our P&L to support robust investments in our business while also delivering stronger profitability over the last several quarters. These elements position us for continued progress over the remainder of the year and for profitable growth over time.

我們的效率努力正在為所有這些投資提供額外的動力。隨著團隊在過去五年的快速成長基礎上實現增量節省，他們在我們的損益表中創造了額外的能力，以支持我們業務的強勁投資，同時在過去幾個季度提供了更強的盈利能力。這些因素使我們能夠在今年剩餘時間內繼續取得進展，並隨著時間的推移實現獲利成長。

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

接下來，我們將轉向問答環節。現在麥可、克里斯蒂娜和我很樂意回答你們的問題。

(Operator Instructions) Our first question comes from Simeon Gutman with Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的 Simeon Gutman。

So my first question is, I guess, bigger picture on 2024. We talked about, I think, leaning into top line growth. Can you talk about the balance of margin and top line growth that you initially sought for '24? Are you finding that you're beginning to lean more in terms of driving the business, the cost of that to drive the sales a little more? Or are there just puts and takes and levers that you had all along that we just didn't see?

所以我想我的第一個問題是 2024 年的更大前景。您能談談您最初為 24 年尋求的利潤率和營收成長的平衡嗎？您是否發現您開始更傾向於推動業務，以及推動銷售的成本？或者是否有一些我們一直沒有看到的看跌期權和槓桿？

Simeon, I think sitting here today, we've got a very balanced approach to performance in 2024. We are certainly not satisfied with our results in Q1, although they did meet the expectations we set back in March. We won't be satisfied until we see positive comps, and we've got to make sure we're delivering profitable growth along the way.

Simeon，我認為今天坐在這裡，我們對 2024 年的業績採取了非常平衡的方法。在看到正面的業績之前，我們不會感到滿意，我們必須確保一路上實現獲利成長。

So as I look at the first quarter of the year, I think we see a number of green shoots emerging. And we certainly felt much better about the sequential improvement in traffic, getting back to positive digital growth for the first time in over a year, continued strength in services like Drive Up and categories like Beauty, and a very significant trend line improvement in apparel. Christina talked about a 400 basis point improvement.

因此，當我回顧今年第一季時，我認為我們看到了一些新芽的出現。當然，我們對流量的連續改善感覺好多了，一年多以來首次恢復正數位成長，Drive Up 等服務和美容等類別的持續強勁，以及服裝趨勢線的顯著改善。克里斯蒂娜談到了 400 個基點的改進。

We feel very good about the initial reaction from our guests to the relaunch of Target Circle. We think that's going to be an important traffic and growth driver over the balance of the year. And we continue to see very strong performance from Roundel, now our fastest-growing element in our revenue line.

我們對客人對 Target Circle 重新推出的初步反應感到非常滿意。我們認為這將成為今年剩餘時間的重要流量和成長動力。我們繼續看到 Roundel 的強勁表​​現，它現在是我們營收線中成長最快的部分。

So we want to balance that with a continued focus on operational efficiencies where we continue to see opportunities for profit improvement; managing inventory very effectively, once again in the quarter, down 7%; and an improvement in in-stocks, which is going to be vital to our performance over the balance of the year. So we think we've got a very balanced approach to making sure we're leading into the top line, while continuing to look at opportunities for greater efficiency and managing the fundamentals of the business.

因此，我們希望透過繼續關注營運效率來平衡這一點，我們繼續看到利潤改善的機會；非常有效地管理庫存，本季再次下降 7%；庫存的改善對於我們今年剩餘時間的表現至關重要。因此，我們認為我們已經採取了一種非常平衡的方法來確保我們領先於營收，同時繼續尋找提高效率和管理業務基本面的機會。

And then a follow-up, more tactically, the SG&A related to Target Circle, does that go away? Or you just use the SG&A differently? And then the lower prices, how does that get contemplated? Did you also have flexibility in the guidance when you set it out for the year?

然後是後續的、更具戰術性的、與 Target Circle 相關的 SG&A，這種情況會消失嗎？或者您只是以不同的方式使用 SG&A？然後價格更低，這是如何考慮的？當您制定今年的指導方針時，您是否也有彈性？

Yes, I'm happy to take that one, Simeon. I'll maybe start by saying our expectations on the top line and the bottom line for the year are unchanged. And we feel really good about the progress made on the profit line in total in Q1 to expand operating profit rate in spite of a tough sales environment. It's an outcome that we feel puts the year off to a good start.

是的，我很高興接受這個，西蒙。首先我可能會說，我們對今年營收和利潤的預期沒有改變。儘管銷售環境嚴峻，但我們對第一季總利潤線在擴大營業利潤率方面取得的進展感到非常滿意。我們認為這項結果為今年開了個好頭。

And on the SG&A line, as you've heard me say before, you'll see noise on there quarter-over-quarter. One of the things that was an investment in Q1 was investment behind the relaunch of Target Circle, for sure. But I feel really good about the way the team is managing costs throughout the business, and that's all factored into our guidance for the year.

在 SG&A 線上，正如您之前聽我說過的，您會看到季度與季度之間的噪音。當然，第一季的投資之一就是重新推出 Target Circle 背後的投資。但我對團隊管理整個業務成本的方式感到非常滿意，這都已納入我們今年的指導中。

Simeon, one other point on Target Circle, and I know I talked about this, we talked about this more broadly in March. While we're excited about the launch or the relaunch that took place in April, this is going to be an ongoing effort each and every week for multiple years as we look to build the base program and build greater guest engagement, expand the use of the Circle Card and dramatically build membership for Target Circle 360, our approach to same-day delivery.

Simeon，Target Circle 上的另一點，我知道我談到過這一點，我們在三月更廣泛地討論了這一點。雖然我們對四月份的推出或重新推出感到興奮，但這將是多年來每週不斷的努力，因為我們希望建立基礎計劃並建立更大的賓客參與度，擴大Circle 卡並大幅建立Target Circle 360的會員資格，這是我們的當日送達方式。

So I think it's got to be really clear that while we're excited about the relaunch and the initial reaction, adding 1 million new members, this is going to be an ongoing commitment every week of the year as we continue to use Target Circle as a way to build greater engagement with guests.

因此，我認為必須非常明確的是，雖然我們對重新啟動和最初的反應感到興奮，增加了 100 萬新會員，但這將是我們每週每週持續的承諾，因為我們將繼續使用 Target Circle 作為與客人建立更多互動的一種方式。

Our next question is from Michael Lasser with UBS.

我們的下一個問題來自瑞銀集團 (UBS) 的 Michael Lasser。

How much of the price investment that Target announced this week is going to be funded by Target versus being funded by the vendor community? And is it right to think that now that shrink has turned the corner, Target is taking this favorable factor and reinvesting at least a portion of it in driving traffic-related items?

塔吉特本周宣布的價格投資中有多少是由塔吉特提供的資金，而不是由供應商社群提供的資金？既然收縮已經過去，塔吉特正在利用這一有利因素並將其至少一部分再投資於推動與流量相關的項目，這種想法是否正確？

Michael, this is Christina. One of the things that we know for a fact and has been a priority for a very long time is the focus on both Expect More and Pay Less. In fact, that is our brand promise. So value, affordability and how we deliver that is always and has always been important. And as Brian shared in his prepared remarks, it is even more important during this time of 3 years of cumulative inflation in these categories. So our commitment to investing in price on behalf of our guests is to pass savings back along to them to accelerate traffic and unit growth over time.

邁克爾，這是克里斯蒂娜。我們知道的事實之一併且長期以來一直是優先考慮的事情之一是專注於「期望更多」和「付出更少」。事實上，這就是我們的品牌承諾。因此，價值、可負擔性以及我們如何實現這一點始終很重要。正如布萊恩在他準備好的演講中所分享的那樣，在這些類別的三年累積通膨時期，這一點顯得更加重要。因此，我們代表客人進行價格投資的承諾是將節省的費用回饋給他們，以隨著時間的推移加速流量和單位成長。

Our partners know our playbook. They understand how we go to market, and they are terrific partners in bringing that experience to light, in bringing us great products, innovation and contributing to the value equation for Target. They see us do that in our own brands and they help us do that with their brand portfolio. So this is a long-term commitment on behalf of the guests and is consistent with the strategies we've outlined for quarters.

我們的合作夥伴了解我們的策略。他們了解我們如何進入市場，並且他們是出色的合作夥伴，可以為我們帶來豐富的經驗，為我們帶來出色的產品和創新，並為塔吉特的價值方程式做出貢獻。他們看到我們在自己的品牌中做到了這一點，並幫助我們透過他們的品牌組合做到了這一點。因此，這是代表客人的長期承諾，並且與我們為季度製定的策略一致。

And Michael, maybe to touch on your question on shrink, if you step back and look at our total, we're managing all the levers of the P&L every quarter, every year. On shrink, we're pleased with the progress that we saw in the first quarter. As you heard us say to kick off the year, our hopes for the year were that shrink would flatten this year, and that would be an important first step on a journey to improving shrink over time.

邁克爾，也許要談談你關於收縮的問題，如果你退一步看看我們的總額，我們每季、每年都會管理損益表的所有槓桿。在收縮方面，我們對第一季看到的進展感到滿意。正如您聽到我們在今年開始時所說的那樣，我們今年的希望是今年的收縮率將趨於平穩，這將是隨著時間的推移改善收縮率的重要第一步。

And so far so good on that front. We're perhaps even a little ahead of where we hoped to be there. And that's step one to get to that plateauing place that we're on a good trajectory for this year. Over time, you can expect we work to make more progress on that line in the years to come.

到目前為止，這方面進展順利。我們可能比我們希望的目標還要領先一點。這是達到穩定水平的第一步，我們今年正處於良好的軌道上。隨著時間的推移，您可以期望我們在未來幾年裡努力在這方面取得更多進展。

Michael, we'll get out in front of some of the questions that might be on investors' minds regarding the price investments we announced earlier this week, and this is part of our ongoing focus on retail fundamentals. And you've heard us talk about this for a number quarters now. Michael talked about the great progress we're making on reliability and in-stocks. We want to make sure we continue to provide a great guest experience, leverage our proximity. And you see the way our guests continue to leverage services like Drive Up.

邁克爾，我們將回答投資者可能會想到的有關我們本週早些時候宣布的價格投資的一些問題，這是我們持續關注零售基本面的一部分。您已經聽我們談論這個問題好幾個季度了。麥可談到了我們在可靠性和庫存方面取得的巨大進步。我們希望確保利用我們的地理位置，繼續提供卓越的賓客體驗。您將看到我們的客人繼續利用 Drive Up 等服務的方式。

But affordability is an ongoing part of our playbook. It's embedded in our retail fundamentals. And you see that come to life in how we're merchandising our end caps where we use both our national and owned brands, including the launch of a new brand called dealworthy; the way we're leveraging Target Circle to make it even easier for our guests to get the best of Target every day.

但負擔能力是我們策略中持續的一部分。它已融入我們的零售基礎之中。你會看到，我們如何使用我們的國內品牌和自有品牌來推銷我們的端蓋，包括推出一個名為 dealworthy 的新品牌；我們利用 Target Circle 的方式讓我們的客人每天都能更輕鬆地享受 Target 的樂趣。

So this is just an extension of our ongoing focus on affordability, which certainly, in this environment, we know value is critically important. And as we go into the summer season, and Christina talked about some of the great plans we have in place for the summer, we want to make sure America knows that Target is a great place to shop and we've got great value every time you engage, whether it's in-store or through our digital channels.

因此，這只是我們持續關注可負擔性的延伸，當然，在這種環境下，我們知道價值至關重要。當我們進入夏季時，克里斯蒂娜談到了我們為夏季制定的一些偉大計劃，我們希望確保美國人知道 Target 是一個購物的好地方，而且我們每次都能買到物超所值的商品無論是在店內還是透過我們的數位管道，您都可以參與其中。

Okay. My quick follow-up is that the outside perception is that Target sales are healthy when it has promotions like Target Circle Week, but outside of those type of events, trends have been a lot softer. So, a, is that the case? And then, b, does that mean that Target has been losing consideration on everyday essentials, and so this price investment is obviously aimed at improving those periods where there are not events or holidays? And how quickly do you expect to see a response from that?

好的。我的快速跟進是，外界的看法是，當 Target 進行像 Target Circle Week 這樣的促銷活動時，其銷售狀況是健康的，但除了這些類型的活動之外，趨勢要軟得多。那麼，a，是這樣嗎？那麼，b，這是否意味著塔吉特已經失去了對日常必需品的考慮，因此這種價格投資顯然是為了改善那些沒有活動或假期的時期？您希望多快看到回應？

Michael, I'll answer your last portion of that question. We expect to see those trends turn around in the second quarter, and that will be a quarter where we return to growth. And we'll see that fueled by the investments we're making in great assortments, in value and in a great guest experience. So we won't be satisfied until we see positive comps in the second quarter and over the balance of the year.

邁克爾，我將回答你這個問題的最後一部分。我們預計這些趨勢將在第二季扭轉，這將是我們恢復成長的季度。我們將看到，我們在豐富的品種、價值和卓越的賓客體驗方面進行的投資將推動這一趨勢。因此，只有看到第二季和今年剩餘時間的正面業績，我們才會感到滿意。

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。

So my first question is just on the trends during the quarter. If you can just comment on the cadence, the trends you saw, and then any comment during quarter-to-date? And then do you believe weather had any meaningful impact during the quarter?

所以我的第一個問題是關於本季的趨勢。您是否可以只評論一下節奏、您看到的趨勢，以及本季至今的任何評論？那麼您認為天氣在本季有任何有意義的影響嗎？

Thanks for the question, Rupesh. I wouldn't call out anything notable in terms of trends as we moved through the quarter. We saw a quarter that from the top line to the bottom line played out largely like we expected it would. And that's a good foundation for us to build on as we move into the second quarter where we expect to return to growth. And you've heard us talk about some of the things that give us confidence in that trajectory.

謝謝你的提問，魯佩什。在我們整個季度的趨勢方面，我不會指出任何值得注意的趨勢。我們看到一個季度從收入到利潤的表現基本上與我們預期的一樣。這是我們在進入第二季時繼續發展的良好基礎，我們預計將恢復成長。您已經聽到我們談論了一些讓我們對這一軌跡充滿信心的事情。

But one, I just want to go back to that I touched on my remarks, is the work on retail fundamentals our teams have done, an improved in-stock position, a huge shout-out to teams across merchandising, supply chain and stores that have helped drive that improvement, it's just one more arrow we have in the quiver to show up even stronger in Q2 next year -- or this year than we did last year.

但我只想回到我在發言中提到的一點，那就是我們的團隊在零售基本面方面所做的工作，庫存狀況的改善，以及對銷售、供應鏈和商店團隊的大力讚揚，幫助推動了這項改進，這只是我們在明年第二季或今年比去年表現得更強勁的箭袋中多了一支箭。

And Rupesh, on the weather front, while we certainly see some volatile weather over the first quarter, that affects everyone in retail. And I feel really good about the way our store teams have responded, how our supply chain responds to some of the disruption we've seen. And I think we're well positioned to continue to maneuver through some of the volatile weather we're seeing across the country.

魯佩什（Rupesh），在天氣方面，雖然我們肯定會在第一季看到一些不穩定的天氣，但這會影響零售業的每個人。我對我們商店團隊的應對方式以及我們的供應鏈如何應對我們所看到的一些幹擾感到非常滿意。我認為我們處於有利位置，可以繼續應對​​全國各地出現的一些不穩定天氣。

Great. And then my follow-up question, just on the merchandising innovation front. So it sounds like your consumers are responding to newness in the box. Just curious how you're feeling about the level of newness innovation for balance of the year.

偉大的。然後是我的後續問題，關於銷售創新方面。所以聽起來你的消費者正在對盒子裡的新東西做出反應。只是好奇您對今年剩餘時間的新穎性創新水平有何感受。

Yes, great question. Definitely, consumers are responding to newness. When they see innovation and they see that as an incredible value, that's what's motivating them to buy. And so our acceleration of percent of newness has just built quarter after quarter. And you saw that really materialize in the apparel improvements in the last quarter. That was based on the backs of ready-to-wear, our perhaps most fashion-forward part of our entire assortment, our performance business, our young contemporary business, those are big owned brands that we control, design and build; All in Motion, Wild Fable, A New Day, et cetera, punctuated by a great partnership with Diane von Furstenberg.

是的，很好的問題。毫無疑問，消費者正在對新鮮事物做出反應。當他們看到創新並認為其具有令人難以置信的價值時，這就是他們購買的動力。因此，我們的新鮮度百分比逐季加速成長。您可以看到，這一點在上個季度的服裝改進中真正實現了。這是基於成衣的支持，成衣可能是我們整個產品系列中最時尚的部分，我們的表演業務，我們年輕的當代業務，這些都是我們控制、設計和打造的大型自有品牌； 《All in Motion》、《Wild Fable》、《A New Day》等等，其中不乏與黛安馮芙絲汀寶 (Diane von Furstenberg) 的良好合作關係。

And so that's a great example. We're doing that in every part of the portfolio. And Q2 is where we get really excited about the opportunity around summer. Summer is a place where we can take advantage of the breadth of the portfolio, like sporting goods, of course, apparel, dresses, shorts, et cetera. But this year, we've added a new twist with our frequency businesses, always standing for sun care, but this year, a big snacking and food destination for summer as well. 125 new items in Favorite Day and Good & Gather to beef up the excitement and relevance during this time. So lots of focus on newness. And also looking for that from our partners, the more innovation, the more that they invest behind newness, the better it is for us.

這是一個很好的例子。我們在產品組合的每個部分都這樣做。第二季我們對夏季前後的機會感到非常興奮。夏天是一個我們可以充分利用產品組合的地方，例如運動用品，當然還有服裝、洋裝、短褲等等。但今年，我們的頻率業務增加了新的變化，始終代表防曬，但今年也成為夏季的大型零食和食品目的地。 「Favorite Day」和「Good & Gather」中的 125 個新項目增強了這段時間的興奮度和相關性。所以非常注重新鮮感。我們也從我們的合作夥伴那裡尋找這一點，創新越多，他們在新事物上的投資越多，對我們來說就越好。

Our next question is from Corey Tarlowe with Jefferies.

我們的下一個問題來自 Jefferies 的 Corey Tarlowe。

I was wondering if you could talk a little bit more about what you're seeing in your private-label business. With the 2 new launches that you've made recently and the existing very impressive portfolio that you have, it would be great to hear a little bit more color about the momentum that you've seen in that business as you put more investments behind this segment.

我想知道您是否可以多談談您在自有品牌業務中所看到的情況。憑藉您最近推出的2 個新產品以及您現有的非常令人印象深刻的產品組合，當您在該業務上投入更多投資時，很高興聽到有關您在該業務中看到的勢頭的更多資訊。

Thanks, Corey, for your question. We refer to it as owned brands, and it's a slight nuance, but only because we invest behind our private-label solutions, owned brands like any other brand. We put a lot of attention and care into the quality, the durability and the value, of course. I think you're probably referring to dealworthy because we've had a number of different brands and up&up relaunch, but we have a couple more to talk about. So I'm going to assume those were the ones you were questioning.

謝謝科里的提問。我們稱之為自有品牌，這有一點細微差別，但這只是因為我們像其他品牌一樣投資自有品牌解決方案、自有品牌。當然，我們對品質、耐用性和價值投入了大量的關注和關懷。我想您可能指的是 dealworthy，因為我們已經推出了許多不同的品牌並重新推出了 up&up，但我們還有更多要談的。所以我假設這些就是你所質疑的人。

We're really excited about early results. It is, however, early. We have a whole cadence of products that we'll roll out throughout the year. And in some cases, we're only 15% to 25% into the cascade of newness, which is why in the prior question, I was talking about how it will build and build and build quarter-by-quarter as more of that comes to market.

我們對早期結果感到非常興奮。不過，現在還為時過早。我們將全年推出一系列產品。在某些情況下，我們只完成了15% 到25% 的新鮮事物，這就是為什麼在上一個問題中，我談論它將如何隨著越來越多的事物的出現而逐季度地構建、構建、建構市場。

What I'll tell you is where we've made surgical investments in supporting price points that were missing from our assortment, the guest is responding right away. Tech accessories, for instance, we didn't have the right value offering in basic cables, HDMI, phone cases and things like that. When we introduced the right price points in dealworthy, the guest noticed immediately, and that drove unit and traffic acceleration in those categories. And that's what we're doing business by business.

我要告訴您的是，我們在支持我們品種中缺少的價格點方面進行了外科手術投資，客人立即做出了回應。例如，在技術配件方面，我們在基本電纜、HDMI、手機殼等方面沒有提供適當的價值。當我們在 dealworthy 中引入合適的價格點時，客人立即註意到，這推動了這些類別的單位和流量加速。這就是我們逐項開展業務的目的。

In up&up specifically, we've reformulated 40% of the products to add quality to the products. Our star ratings and our reviews on Target.com have accelerated meaningfully as the guests have taken notice. So we're excited what that means for the future as that builds throughout the year.

具體來說，在 up&up 中，我們重新設計了 40% 的產品配方，以提高產品的品質。隨著客人的注意，我們在 Target.com 上的星級評定和評論顯著增加。因此，我們很高興這對全年的未來意味著什麼。

Great. And then just as a follow-up, one of the things that's also clear with Target is that strong inventory management helps to unlock better margins. So could you talk a little bit more about your current inventory positioning and how you expect that to unfold throughout the rest of the year, especially as it relates to margins?

偉大的。作為後續行動，塔吉特也清楚的一件事是，強大的庫存管理有助於釋放更好的利潤。那麼，您能否多談談您目前的庫存定位，以及您預計今年剩餘時間將如何發展，特別是與利潤率相關的情況？

Yes. Thanks for the question, Corey. And you're spot on, when inventories are in line, we run more efficiently across our entire system. And that's certainly been the case in the last few quarters and is the case now. We feel really good about our inventory position as we step into Q2 here with inventories down 7% at the enterprise level. But most importantly, that efficiency on inventory is coming with a stronger in-stock position. We're always solving for both. And that one-two punch of lower inventories, the higher in-stocks is the outcome that we want and it's the outcome we're getting.

是的。謝謝你的提問，科里。您說得對，當庫存符合要求時，我們整個系統的運作效率就會更高。過去幾季的情況確實如此，現在也是如此。當我們進入第二季時，我們對我們的庫存狀況感到非常滿意，企業層級的庫存下降了 7%。但最重要的是，庫存效率的提高伴隨著庫存狀況的增強。我們始終致力於解決這兩個問題。庫存下降一兩拳，庫存增加是我們想要的結果，也是我們正在得到的結果。

Our next question is from Mike Baker with D.A. Davidson.

我們的下一個問題來自 D.A. 的 Mike Baker。戴維森。

I just wanted to follow up on a previous question and ask you about these price investments and how much of that was contemplated 90 days ago when you gave your full year outlook? And how does -- or how much of it is a reaction to what you're seeing currently? And as part of that, can you outline within your guidance what you expect for gross margins and SG&A within the context of the comp and EPS guidance?

我只是想跟進之前的問題，詢問您有關這些價格投資的情況，以及您在 90 天前給出全年展望時考慮了其中的多少？它是如何——或者有多少是對你目前所看到的情況的反應？作為其中的一部分，您能否在指導中概述您對比較和每股收益指導背景下的毛利率和銷售及管理費用的期望？

Mike, I'm happy to start. And those actions were part of our full year guidance and our plans. Mike, do you want to talk a little bit more about the implications of that?

麥克，我很高興開始。這些行動是我們全年指導和計劃的一部分。麥克，你想多談談這件事的意思嗎？

Yes. I think the headline is, is we've got 1 quarter in the books that played out largely like we thought, if not a little ahead of our midpoint of guidance on the profit side, and our outlook for the balance of the year is unchanged. So always managing puts and takes across the business, but we knew investment in value was going to be part of the recipe for success this year. And you see this week's announcement as an amplification of some of that plan.

是的。我認為標題是，我們的帳面上有一個季度的表現基本上與我們想像的一樣，即使不是比我們在利潤方面的指導中點提前了一點，而且我們對今年剩餘時間的展望沒有改變。因此，始終管理整個業務的賣出和賣出，但我們知道價值投資將成為今年成功秘訣的一部分。您認為本週的公告是該計劃的一部分的放大。

Our final question comes from Kate McShane with Goldman Sachs.

我們的最後一個問題來自高盛的凱特·麥克肖恩。

We wanted to ask a little bit about the other revenue streams. If you can provide any more detail about the margin contribution from Roundel or Target Plus or maybe your distribution of Cat & Jack at Hudson's Bay? And did you see any increase in conversion in Shipt subscriptions as a result of the launch of Target 360?

我們想詢問一些有關其他收入來源的情況。您能否提供有關 Roundel 或 Target Plus 的保證金貢獻的更多詳細信息，或者您在 Hudson's Bay 的 Cat & Jack 分銷情況？您是否發現 Target 360 的推出導致 Shipt 訂閱轉換率增加？

Kate, a great way for us to wrap up our call today. Michael, do you want to cover some of those topics?

凱特，我們以一個很好的方式結束了今天的通話。邁克爾，您想討論其中一些主題嗎？

Sure. Those are all good ones to touch on. I'll do my best and maybe pair off with Christina on a few of those. We continue to be thrilled with the strength we see in our Roundel ad business. It grew another 20% plus this quarter, and I think that speaks to the value that we're providing guests and some of our partners with that offering. That's been a sustained source of growth, and we would expect that to continue to be a source of growth going forward.

當然。這些都是值得探討的好點子。我會盡力而為，也許會在其中一些項目上與克里斯蒂娜搭檔。我們繼續對 Roundel 廣告業務的實力感到興奮。本季它又成長了 20% 以上，我認為這說明了我們為客人和我們的一些合作夥伴提供的服務的價值。這是持續成長的源泉，我們預計這將繼續成為未來成長的來源。

With Target Plus, you heard us talk about some of the expansion we continue to do there, and that's certainly a contributor to growth within that other revenue line on the quarter as well. So we feel good about how those parts of the business continue to add to both to the top line and to the bottom line.

透過 Target Plus，您聽到我們談論我們繼續在那裡進行的一些擴張，這無疑也為本季度其他收入線的成長做出了貢獻。因此，我們對業務的這些部分如何繼續增加收入和利潤感到滿意。

Yes, not a lot to offer besides the fact that you can see the expansion in margin over time, and that comes from creating value with our partners through Roundel. And it isn't just about shifting dollars, it's about accessing new dollars because they see the growth that comes with it and our ability to convert that into sales.

是的，除了您可以看到利潤隨著時間的推移而擴大這一事實之外，沒有什麼可提供的，而這來自於透過 Roundel 與我們的合作夥伴一起創造價值。這不僅僅是轉移美元，而是獲得新的美元，因為他們看到了隨之而來的成長以及我們將其轉化為銷售額的能力。

Okay. It gives me an opportunity to recognize a couple of our teams for their work during the quarter. And I'll start with the Roundel team, they just continue to deliver very consistent and meaningful results for us; and all the cross-functional efforts around the relaunch of Target Circle. So I really want to thank those teams and the entire Target team for their contribution during the quarter and their ongoing commitment to getting us back to growth in Q2.

好的。這讓我有機會認可我們的幾個團隊在本季的工作。我將從 Roundel 團隊開始，他們繼續為我們提供非常一致且有意義的結果；以及圍繞重新啟動 Target Circle 所做的所有跨職能工作。因此，我真的要感謝這些團隊和整個 Target 團隊在本季所做的貢獻，以及他們為讓我們在第二季恢復成長所做的持續承諾。

So I appreciate everyone joining us today, and we look forward to talking to you at the end of the second quarter.

因此，我感謝今天加入我們的大家，我們期待在第二季末與您交談。

Goodbye.

再見。