目標百貨 (TGT) 2024 Q2 法說會逐字稿

(audio in progress) Corporation Second Quarter Earnings Release Conference Call. (Operator Instructions) As a reminder, this conference is being recorded, Wednesday, August 21, 2024.

（音訊正在進行中）公司第二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 8 月 21 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 second quarter 2024 earnings conference call. On the line with me today are Brian Cornell, Chair and Chief Executive Officer; Rick Gomez, Chief Commercial Officer; and Michael Fiddelke, Chief Operating Officer and Chief Financial Officer.

大家早安，感謝您參加我們的 2024 年第二季財報電話會議。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)；里克‧戈麥斯，首席商務官；營運長兼財務長 Michael Fiddelke。

In a few moments, Brian, Rick and Michael will provide their insights on our second quarter performance, along with our outlook and priorities for the third quarter and remainder of the year. 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 will be 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、里克和邁克爾將提供他們對我們第二季業績的見解，以及我們對第三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。今天早上，投資者和其他人將參加我們的電話會議，他們將透過網路廣播聆聽我們的評論。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 second quarter and his priorities for the third quarter and beyond. Brian?

這樣，我將把它轉交給布萊恩，詢問他對第二季度的想法以及他對第三季度及以後的優先事項。布萊恩？

Thanks, John, and good morning, everyone. I'd like to start my remarks today by welcoming Rick Gomez to this call, following his recent move into the role of Chief Commercial Officer. This change was one of several we announced in June, including Christina Hennington's move into the role of Chief Strategy and Growth Officer, and Lisa Roath's transition into the role of Chief Merchandising Officer of Food, Essentials and Beauty.

謝謝約翰，大家早安。我今天首先要歡迎 Rick Gomez 參加這次電話會議，他最近就任首席商務官。這項變動是我們在6 月宣布的多項變動之一，其中包括克里斯蒂娜·亨寧頓(Christina Hennington) 出任首席策略和成長官，麗莎·羅斯(Lisa Roath) 出任食品、必需品和美容品首席行銷長。

Lisa has done a fantastic job leading our marketing team and I've asked her to remaining that role until early 2025. This will provide adequate time for us to complete an external search for her successor before Lisa brings her impressive commercial leadership experience back into the merchandising team. These changes follow our January announcement that Michael would move into the pivotal role of our Chief Operating Officer. Michael took on the CFO role just before the pandemic, and he's done an outstanding job leading the company through a period of unprecedented growth and volatility.

麗莎在領導我們的行銷團隊方面做得非常出色，我已要求她保留該職位到2025 年初。人印象深刻的商業領導經驗帶回公司。這些變化是在我們一月份宣布邁克爾將擔任我們首席營運長的關鍵角色之後發生的。邁克爾在大流行之前就擔任了首席財務官一職，他在帶領公司度過了前所未有的成長和波動時期方面表現出色。

The search for Michael replacement as CFO is ongoing, and I share Michael's excitement for the time when he is able to fully focus on his new role leading all of our operational functions. And of course, we were pleased this month to welcome Amy Tu into the role of Chief Legal and Compliance Officer. During her career, Amy has served in key leadership roles for several Fortune 100 companies. And I'm excited to welcome her to the Target team. Amy is taking the place of Don Liu on our team as he prepares for his retirement.

尋找邁克爾擔任財務長的繼任者的工作仍在進行中，我和邁克爾一樣，對他能夠完全專注於領導我們所有營運職能的新角色感到興奮。當然，本月我們很高興歡迎 Amy Tu 擔任首席法律與合規官。在她的職業生涯中，Amy 曾在多家財富 100 強公司擔任重要領導職務。我很高興歡迎她加入 Target 團隊。艾米將接替唐·劉 (Don Liu) 加入我們的團隊，他正在為退休做準備。

I want to pause to thank Don for his many years of thoughtful and conscientious service to Target and our stakeholders. He is an outstanding leader who has served as a trusted partner to me, to our Board and our entire leadership team during his tenure here at Target. All of these changes on our team are just the latest evidence of our focus on developing enterprise leaders, ones who go well beyond subject matter expertise to develop strong leadership skills, with a foundation based on a comprehensive understanding of our business and how we fit into the broader landscape.

我想停下來感謝唐多年來為塔吉特和我們的利益相關者提供的周到和認真的服務。他是一位傑出的領導者，在塔吉特任職期間，他一直是我、董事會和整個領導團隊值得信賴的合作夥伴。我們團隊的所有這些變化只是我們專注於培養企業領導者的最新證據，這些領導者不僅要超越主題專業知識，還要培養強大的領導技能，並以對我們的業務以及我們如何適應環境的全面了解為基礎。

And as you've seen from our second quarter results, the strength of our entire team was clearly evident in our financial performance, which came in well above our expectations. On the top line, we met our goal of returning to growth, but moved well beyond that baseline expectation. More specifically, our Q2 comparable sales grew 2% at the very top end of our guidance range. And on the bottom line for the quarter, our EPS of $2.57 was well above the high end of our guidance, representing growth of more than 42% over last year.

正如您從我們第二季度的業績中看到的那樣，我們整個團隊的實力在我們的財務業績中顯而易見，遠遠超出了我們的預期。在營收方面，我們實現了恢復成長的目標，但遠遠超出了基準預期。更具體地說，我們第二季的可比銷售額成長了 2%，處於我們指引範圍的最高端。從本季的利潤來看，我們的每股盈餘為 2.57 美元，遠高於我們指引的上限，比去年成長了 42% 以上。

Among the drivers of our comp sales, we're pleased that our second quarter growth was driven entirely by traffic, reflecting the combined benefits of the multiple guest-focused initiatives we outlined in our financial community meeting back in March. It's also notable that our store and digital channels both saw growth in Q2. Our digital team has done an outstanding job of enhancing our digital experience, and that's showing through in our business results.

在我們的贈品銷售的驅動因素中，我們很高興第二季度的成長完全由流量推動，這反映了我們在三月份的金融界會議上概述的多項以賓客為中心的舉措的綜合效益。值得注意的是，我們的商店和數位管道在第二季度都實現了成長。我們的數位團隊在增強我們的數位體驗方面做得非常出色，這在我們的業務成果中得到了體現。

We saw high single-digit growth in our digital comps in Q2 and even faster growth in same-day services, led by Drive Up and Target Circle 360, both of which grew in the low teens. Same-day services now account for more than two-thirds of sales, with the biggest contribution from Drive Up, which generated sales of more than $2 billion in Q2 and more than $4 billion so far this year. Our balanced, multi-category merchandising assortment continues to resonate with our guests as trends strengthened across the board in Q2. And we're encouraged to see discretionary category trends improved for the fourth consecutive quarter.

第二季度，我們的數位業務實現了高個位數成長，當日服務成長更快，其中以 Drive Up 和 Target Circle 360​​ 為首，這兩家公司的成長速度都在十幾歲左右。目前，當日服務佔銷售額的三分之二以上，其中貢獻最大的是 Drive Up，第二季銷售額超過 20 億美元，今年迄今銷售額超過 40 億美元。隨著第二季趨勢全面加強，我們均衡的多品類商品分類持續引起客人的共鳴。我們很高興看到非必需品類趨勢連續第四個季度有所改善。

In apparel, comp sales grew by more than 3%, marking an improvement of more than 5 percentage points when compared with the first quarter. Our apparel team has done a fantastic job incorporating great design, newness and value throughout their assortment, most notably in our All In Motion brand, which delivered growth in the low teens. Beauty was another standout as the category continues to gain share, with comp growth of 9% in Q2 on top of double-digit growth a year ago.

服裝方面，同期銷售額成長超過3%，較一季提高5個百分點以上。我們的服裝團隊做得非常出色，將出色的設計、新穎性和價值融入他們的產品系列中，尤其是我們的 All In Motion 品牌，該品牌在青少年中實現了成長。美妝品類的市佔率持續成長，是另一個表現出色的產品，在去年兩位數成長的基礎上，第二季年增 9%。

On the frequency side of our assortment, both our food & beverage and essential categories saw traffic growth in the quarter as consumers are responding to our offerings in an environment where they are focused on value. Over the summer, we reduced our prices on about 5,000 frequently purchased items in many markets, and we saw an acceleration in both our unit and dollar sales trends in these businesses. We're also seeing continued momentum in our Target Circle loyalty platform following its relaunch in the first quarter. With over 100 million members, we're always happy to welcome guests who choose to join, and we added more than 2 million new users in the second quarter.

在我們品種的頻率方面，我們的食品和飲料以及必需品類別在本季度都出現了流量增長，因為消費者在註重價值的環境中對我們的產品做出了反應。今年夏天，我們在許多市場上降低了約 5,000 種經常購買的商品的價格，我們發現這些業務的單位銷售額和美元銷售趨勢正在加速。我們也看到 Target Circle 忠誠度平台在第一季重新推出後持續保持強勁勢頭。我們擁有超過 1 億會員，我們總是很高興歡迎選擇加入的客人，並且我們在第二季度增加了超過 200 萬新用戶。

But our aspirations go well beyond growing our membership base. We redesigned Target Circle with a goal of increasing engagement among existing members, and we've already realized the benefits. For example, during our July Target Circle Week, about two-thirds of our transactions were made by Target Circle members. Beyond the direct benefit of guest engagement with the platform, Target Circle also helps us gain deep consumer insights, allowing us to extend more personal, customized offers through our Roundel advertising business.

但我們的願望遠遠超出了擴大我們的會員基礎。我們重新設計了 Target Circle，目標是提高現有會員的參與度，並且我們已經意識到了好處。例如，在 7 月 Target Circle 週期間，大約三分之二的交易是由 Target Circle 會員完成的。除了客人與平台互動的直接好處外，Target Circle 還幫助我們獲得深入的消費者洞察，使我們能夠透過 Roundel 廣告業務提供更多個人化、客製化的服務。

Roundel continued to experience rapid growth. based on the joint value it creates for both our guests and our vendors. In the second quarter, Roundel delivered double-digit growth to the benefit of both gross margin and the other revenue line of our P&L. For the full year, Roundel is expected to grow in the high teens on top of more than 20% growth in 2023.

Roundel 持續快速成長。基於它為我們的客人和供應商創造的共同價值。第二季度，Roundel 實現了兩位數的成長，這有利於毛利率和損益表的其他收入項目。預計 Roundel 的全年成長率將在 2023 年超過 20% 的基礎上實現兩位數的成長。

As we continue to survey consumers and monitor the external environment, our view remains largely the same as we've been sharing for some time. Consumers have shown remarkable resilience in the face of multiple challenges over the last several years, and they remain resilient today. Given the significant headwinds they faced with inflation over the last few years, consumers continue to focus on value as they work hard to manage their household budgets. And while they continue to turn out and shop around holidays and other seasonal moments, many are delaying purchases until the moment of need.

隨著我們繼續對消費者進行調查並監控外部環境，我們的觀點與我們一段時間以來所分享的觀點基本上相同。過去幾年，消費者在面對多重挑戰時展現了非凡的韌性，而且至今仍保持著韌性。鑑於過去幾年通膨面臨的巨大阻力，消費者在努力管理家庭預算時繼續專注於價值。儘管他們繼續在假日和其他季節性時刻外出購物，但許多人推遲了購買，直到需要的時候。

Against that backdrop, our team continues to focus on providing unbeatable value for our guests. And of course, that starts with a focus on low everyday prices, including our recent price reductions on frequently purchased items. But our focus on value only begins with low prices. Whether we're highlighting compelling deals for our Target Circle members, offering an additional 5% savings to our Target Circle cardholders, designing and sourcing high-quality owned brands at compelling prices or delivery, ease and convenience with Drive Up and Target Circle 360, our team is continually working to find more ways to deliver more value for our guests.

在此背景下，我們的團隊繼續致力於為客人提供無與倫比的價值。當然，這首先要關注日常低價，包括我們最近對經常購買的商品進行降價。但我們對價值的關注只是從低價開始的。無論我們是為Target Circle 會員提供極具吸引力的優惠，為Target Circle 持卡人提供額外5% 的折扣，還是以極具吸引力的價格或交付方式設計和採購高品質自有品牌，以及透過Drive Up 和Target Circle 360​​ 輕鬆便捷，我們的團隊不斷努力尋找更多方法為我們的客人提供更多價值。

As we look ahead, our team is focused on controlling what we can control. We're committed to staying on offense while maintaining an overall cautious outlook, a stance that has worked well for us over the last few quarters. Throughout the company, we're focused on retail fundamentals and strong execution. This includes our commitment to being in stock and reliable even as we maintain a prudent inventory position. It also includes our focus on delivering speed and convenience in every fulfillment channel, while providing efficient and friendly service to our guests in every store, every day.

展望未來，我們的團隊專注於控制我們能控制的事情。我們致力於保持進攻，同時保持整體謹慎的前景，這一立場在過去幾個季度對我們來說效果很好。在整個公司，我們專注於零售基礎和強大的執行力。這包括我們在保持審慎的庫存狀況的同時，對庫存充足且可靠的承諾。它還包括我們專注於在每個履行管道中提供速度和便利，同時每天為每家商店的客人提供高效和友好的服務。

We're also looking to build on the momentum we've been seeing in discretionary categories where trends have already improved significantly, and we see much more opportunity ahead of us. We're focused on continued expansion of our operating margin rate. As we move back towards and potentially beyond the 6% annual rate we were earning before the pandemic. We're committed to continued disciplined capital deployment. Following more than a year of hard work to strengthen our balance sheet, we were pleased to get back to share repurchases in the second quarter, and we expect to have continued capacity within our Middle A ratings in Q3 and beyond.

我們也希望在非必需品類別的勢頭基礎上再接再厲，這些類別的趨勢已經顯著改善，並且我們看到了更多的機會。我們專注於持續擴大營業利潤率。隨著我們回到並可能超過疫情爆發前 6% 的年增長率。我們致力於持續嚴格的資本部署。經過一年多的努力來加強我們的資產負債表，我們很高興在第二季重新進行股票回購，我們預計第三季及以後的產能將繼續保持在中 A 評級範圍內。

And of course, we're focused on continued investment in our team, in their training, development, pay and benefits. To support our team, we're making smart investments in AI technology to make their work easier and more productive, enable them to serve our guests with even greater speed and efficiency. All of these efforts are in support of our ultimate goal: To deepen the already strong relationship we have established with our guests. But while it was fantastic to see top line growth in the second quarter, it was even more gratifying that was driven by traffic. As more guests choose to make more trips to Target,following unprecedented growth during the pandemic.

當然，我們專注於對團隊的培訓、發展、薪酬和福利的持續投資。為了支援我們的團隊，我們對人工智慧技術進行了明智的投資，使他們的工作更輕鬆、更有效率，使他們能夠以更快的速度和效率為我們的客人提供服務。所有這些努力都是為了支持我們的最終目標：加深我們與客人已經建立的牢固關係。雖然看到第二季營收成長令人欣喜，但更令人欣慰的是，這是由流量推動的。隨著疫情期間出現前所未有的成長，越來越多的客人選擇前往塔吉特 (Target)。

Altogether, over the first six months of 2024, our guests have already made nearly 1 billion trips to Target, a number that's grown by more than 20% since 2019. We're grateful for the underlying trust and engagement behind every one of those transactions, and our entire team is focused on delivering continued traffic growth over time.

總的來說，在 2024 年前六個月，我們的客人已經有近 10 億次前往 Target，這一數字自 2019 年以來增長了 20% 以上。我們整個團隊致力於隨著時間的推移實現持續的流量成長。

So now before I turn the call over to Rick, I want to pause and thank our team. Back at our Financial Community Meeting in March, I described how they were united in their commitment to moving from go time to grow time, and they've certainly delivered and more. In an environment where consumers continue to make meaningful trade-offs, -- our Q2 results demonstrate the power that comes from the right combination of newness, seasonal relevance and compelling value.

因此，現在在我將電話轉給 Rick 之前，我想暫停一下並感謝我們的團隊。回到我們三月的金融社區會議上，我描述了他們如何團結一致致力於從起步階段轉向成長階段，而他們確實已經交付了更多的成果。在消費者不斷做出有意義的權衡的環境中，我們第二季度的結果證明了新穎性、季節性相關性和引人注目的價值的正確組合所帶來的力量。

While that's great to see, the team isn't pausing to celebrate. Rather, they're leaning in as they focus on building additional momentum in the back half of the year and beyond. Our team is the best in retail, they're guest-focused and they love to win together, and they're just getting started.

雖然這很令人高興，但團隊並沒有停下來慶祝。相反，他們正在傾斜，因為他們專注於在今年下半年及以後建立額外的動力。我們的團隊是零售業中最好的團隊，他們以客戶為中心，熱衷於共同獲勝，而他們才剛開始。

With that, I'll welcome Rick to his first earnings call.

在此，我將歡迎 Rick 參加他的第一次財報電話會議。

Thanks, Brian, and good morning, everyone. I'm excited to be joining this call today, and I'm looking forward to meeting many of you over time. Before we unpack our second quarter results, I'd like to spend some time sharing my priorities as I step into this role, many of which should sound very familiar.

謝謝布萊恩，大家早安。我很高興參加今天的電話會議，並期待與你們中的許多人見面。在我們公佈第二季業績之前，我想花一些時間分享我在擔任這一職位時的優先事項，其中許多聽起來應該非常熟悉。

First, I want to reinforce the importance of the areas that Christina was focused on: affordability, newness, seasonal relevance and ease. These are mission-critical. Under Christina's leadership over the years, we've built an incredible foundation which we can build upon. I've also worked with the team on three additional principles to govern how we work.

首先，我想強調克里斯蒂娜關注的領域的重要性：負擔能力、新穎性、季節性相關性和便利性。這些都是關鍵任務。多年來，在克里斯蒂娜的領導下，我們已經建立了一個令人難以置信的基礎，我們可以在此基礎上繼續發展。我還與團隊合作制定了另外三個原則來管理我們的工作方式。

First, we'll focus on simplifying processes end to end, including how our teams work together as well as with our external partners, with the goal of driving efficiencies and streamlining how work gets done. We should also be relentless in our pursuit of creativity, bringing innovative ideas to market that are original, inspiring and unmistakably Target. And finally, we shouldn't be just guest-led, we should be consumer-obsessed. We'll do this by consistently listening to what consumers want and need and then working hard to deliver for them.

首先，我們將專注於簡化端到端流程，包括我們的團隊以及與外部合作夥伴的合作方式，目標是提高效率並簡化工作完成方式。我們也應該不懈地追求創造力，將原創的、鼓舞人心的和明確的塔吉特風格的創新想法推向市場。最後，我們不應該只是以客人為主導，我們應該以消費者為中心。為此，我們將持續傾聽消費者的需求，然後努力為他們提供服務。

Next, I'll turn to our view of the consumer, which, as you heard from Brian, has remained largely unchanged for some time. American families continue to deal with a lot. These pressures are clearly weighing on them, and they're looking for a refuge from the everyday stress that they're feeling. And yet while the economic data remains mixed, we see a consumer that is still willing and able to spend. Yes, they're still being choiceful. Yes, they're budget conscious. And yes, they're hunting for deals and everyday value. But they're also willing to shop when they find that right combination of fashion and newness at the right price. This was on full display in our second quarter results.

接下來，我將談談我們對消費者的看法，正如您從布萊恩那裡聽到的那樣，消費者的看法在一段時間內基本上保持不變。美國家庭仍然要處理很多事情。這些壓力顯然給他們帶來了壓力，他們正在尋找逃避日常壓力的避難所。然而，儘管經濟數據仍然好壞參半，但我們看到消費者仍然願意並且有能力消費。是的，他們仍然在選擇。是的，他們有預算意識。是的，他們正在尋找優惠和日常價值。但當他們發現時尚與新穎、價格合適的完美組合時，他們也願意購物。這在我們第二季的業績中得到了充分體現。

As Brian mentioned, the team was committed to returning to growth this year, and they did just that in Q2 with comp growth of 2% driven entirely by traffic. Also note, every one of our core categories saw traffic growth in the quarter. Sales from Target Circle 360 grew in the low teens this quarter, adding to our confidence that we have a long runway ahead of us to drive awareness and adoption of this differentiated service. In support of this goal, we recently rolled out a new monthly subscription option for Target Circle 360, allowing guests to get the best of Target delivered same day for just $10.99 per month and only $4.99 per month for students.

正如 Brian 所提到的，該團隊致力於今年恢復成長，他們在第二季做到了這一點，公司成長率完全由流量驅動，達到 2%。另請注意，我們的每個核心類別在本季度都出現了流量成長。本季 Target Circle 360​​ 的銷售額成長了十幾位數，這增強了我們的信心，我們還有很長的路要走，才能提高這種差異化服務的認知度和採用率。為了支持這一目標，我們最近推出了 Target Circle 360​​ 的新月度訂閱選項，讓客人每月只需 10.99 美元，即可享受當日交付的 Target 最佳服務，學生每月只需 4.99 美元。

Within our assortment in Q2, we saw notable areas of strength in both discretionary and frequency categories. As Brian highlighted, discretionary trends have been improving for a full year now, and combined discretionary comps were down only slightly in Q2. This momentum was most evident in our apparel assortment, which delivered low single-digit comp growth driven by newness in combination with strong everyday value, both in stores and online. Comps were led by our performance category in the low double digits as guests loved our latest designs and unbeatable prices in our All In Motion brand.

在第二季的產品類別中，我們在可自由支配和頻率類別方面都看到了顯著的優勢領域。正如布萊恩所強調的那樣，全權委託趨勢現在一整年都在改善，而第二季的全權委託綜合比較僅略有下降。這種勢頭在我們的服裝品種中表現得最為明顯，在商店和網上，新穎性與強大的日常價值相結合，實現了低個位數的複合增長。我們的性能類別領先於低兩位數，因為客人喜歡我們 All In Motion 品牌的最新設計和無與倫比的價格。

Women's apparel saw growth in the low to mid-single digits, with particular strength in our young contemporary owned brand, Wild Fable. And our recent relaunch of our intimates and sleepwear brand, Auden, has seen a strong guest reaction out of the gate, offering high quality and comfortable items at compelling price points, like $15 bras and $20 pajama sets. These results demonstrate the broad-based improvements that we're seeing in apparel, a trend we are eager to build on in the coming quarters and years.

女裝實現了低至中個位數的成長，其中我們年輕的當代自有品牌 Wild Fable 的成長尤其強勁。我們最近重新推出的內衣和睡衣品牌 Auden 一推出就引起了顧客的強烈反響，該品牌以極具吸引力的價格提供高品質、舒適的商品，例如 15 美元的胸罩和 20 美元的睡衣套裝。這些結果表明我們在服裝領域看到了廣泛的改進，這是我們渴望在未來幾季和幾年中繼續發展的趨勢。

While our Home and Hardlines trends remain softer than apparel, we've also seen meaningful trend improvement over the last year. In Home, Q2 comps accelerated by more than 7 percentage points compared with the first quarter and early results in the back-to-school season are right on plan. Within Home, kitchen continues to stand out based in part on our recent launch of Figmint, our high-performance Kitchenware brand. Within Hardlines, while sales and electronics are still under pressure, we've been leaning into other categories with stronger demand, driving a comp trend improvement of around 5 percentage points versus Q1, driven by newness in the category.

雖然我們的家居和耐用品趨勢仍然比服裝疲軟，但去年我們也看到了趨勢的顯著改善。在國內，第二季的業績比第一季成長了 7 個百分點以上，返校季的早期結果也符合計畫。在家居領域，廚房繼續脫穎而出，部分原因是我們最近推出了高性能廚具品牌 Figmint。在硬線產品中，雖然銷售和電子產品仍面臨壓力，但我們一直在向需求強勁的其他類別傾斜，在該類別的新穎性的推動下，與第一季相比，我們的比較趨勢改善了約5 個百分點。

Key growth areas include our affordable outdoor offerings in many markets like $1 pulled noodles and $10 coolers. Recently, we launched more than 1,000 new items in toys, including over 100 new items in our own brand, Gigglescape, which now includes preschool toys, games, puzzles and an expansion into plush. And in case there was any question of the love for our brand with young shoppers, some of the fastest-growing sales in toys are from Target-themed items, including plush bullseye dogs, kid-sized Target checkout lanes, Target branded poly-pocket toys, Target-branded Fisher-Price little people and so much more.

主要成長領域包括我們在許多市場提供價格實惠的戶外產品，例如 1 美元的拉麵和 10 美元的冷卻器。最近，我們推出了 1,000 多種新玩具產品，其中包括我們自有品牌 Gigglescape 的 100 多種新產品，該品牌現在包括學前玩具、遊戲、拼圖和毛絨玩具。如果對年輕購物者對我們品牌的喜愛程度有任何疑問，一些銷售成長最快的玩具來自 Target 主題商品，包括毛絨牛眼狗、兒童尺寸的 Target 收銀台、Target 品牌的多口袋玩具玩具、Target品牌的費雪小人等等。

Beauty continues to gain meaningful market share with comp growth in the high single digits in Q2, driven by a balanced combination of new offerings, celebrity brands, and seasonal relevance. This has been a summer of Sun Care with guests looking for familiar, affordable options like Up and Up Sunscreen, as well as newer trending brands such as Vacation. Minis have also been a major growth driver, with travel on the rise and consumers looking for a little bit of affordable indulgence for at home too.

在新產品、名人品牌和季節性相關性的平衡組合的推動下，美妝繼續獲得有意義的市場份額，第二季度的複合成長率達到高個位數。今年夏天是防曬護理的盛夏，賓客們紛紛尋找熟悉且價格實惠的產品，例如 Up and Up Sunscreen，以及新的流行品牌，例如 Vacation。迷你車也是主要的成長動力，隨著旅行的增加以及消費者也在尋找一些負擔得起的居家享受。

In Food, comp sales growth in the low single digits was led by seasonal moments, with hundreds of new items across snacking, grilling and entertaining. With exclusive to Target items like Buble's Melted Ice Pop Flavor, which quickly grew to be the highest selling item in its category, we help guests celebrate summer with fun new flavors and items. In addition to seasonal moments, we've also pushed ourselves to rethink assortment strategies that have been tried and true for years. For example, we transitioned our candy aisles, leading into some of the most popular trends like better-for-you options, including lower sugar treats and wellness candies. While this category is already growing, these changes raise the bar, accelerating comp growth into the double digits.

在食品領域，季節性因素帶動了公司銷售額的低個位數成長，零食、燒烤和娛樂領域出現了數百種新產品。憑藉 Target 的獨家產品，例如 Buble 的融冰汽水口味，該產品迅速成為同類產品中銷量最高的產品，我們透過有趣的新口味和產品幫助客人慶祝夏季。除了季節性時刻之外，我們還迫使自己重新思考多年來經過嘗試且正確的分類策略。例如，我們轉變了糖果貨架，引入了一些最受歡迎的趨勢，例如更適合您的選擇，包括低糖零食和健康糖果。雖然這個類別已經在成長，但這些變化提高了門檻，加速了公司兩位數的成長。

In Essentials, which also grew in the low single digits overall, Sales growth was largely driven by strength in our category, where protein drinks, powders and meal supplements are gaining momentum. Additionally, Baby Care and essentials continue to do well. Across categories, our own brands grew faster than the total enterprise, showcasing the relevance, quality and value we provide to consumers. In fact, because of our industry-leading design and sourcing capabilities, we are better positioned to remove unnecessary steps in the process, which allows us to reduce costs and increase speed to market.

在必需品領域，整體也以較低的個位數成長，銷售成長主要是由我們類別的實力推動的，其中蛋白質飲料、粉末和膳食補充劑正在獲得動力。此外，嬰兒護理和必需品繼續表現良好。在各個類別中，我們自有品牌的成長速度快於整個企業的成長速度，展現了我們為消費者提供的相關性、品質和價值。事實上，由於我們領先業界的設計和採購能力，我們能夠更好地消除流程中不必要的步驟，從而降低成本並加快上市速度。

Throughout the second quarter, Target Circle members took advantage of enticing promotions, particularly during our latest Target Circle Week. In fact, this year's Target Circle Week has generated the highest digital traffic of the year so far. As Brian mentioned, we added more than 2 million new Target Circle members in the second quarter while also adding hundreds of thousands of Target Circle cardholders and Target Circle 360 members. Because of the invaluable insights we gained through Target Circle, we were able to offer 4 times more personalized offers as compared to a year ago. And of course, those same insights fuel our Roundel media network, which, as Brian mentioned, continues to benefit our business in multiple ways.

在整個第二季度，Target Circle 會員充分利用了誘人的促銷活動，特別是在我們最新的 Target Circle Week 期間。事實上，今年的 Target Circle Week 創造了今年迄今為止最高的數位流量。正如 Brian 所提到的，我們在第二季新增了超過 200 萬個 Target Circle 會員，同時也增加了數十萬個 Target Circle 持卡人和 Target Circle 360​​ 會員。由於我們透過 Target Circle 獲得了寶貴的見解，我們能夠提供比一年前多 4 倍的個人化優惠。當然，這些相同的見解推動了我們的 Roundel 媒體網絡，正如布萊恩所提到的，該網絡繼續以多種方式使我們的業務受益。

While it's hard to believe that summer is already coming to an end, our focus is quickly turning to fall. This, of course, begins with a continuation of our back-to-school and college seasons, which reached their peak in the front half of Q3. More than 70% of our guests shop us during this time frame, and we have plenty in store for them to start the school year off with success and stock. Knowing affordability is top of mind for consumers, in many markets this year, we're offering 20 of the most popular school supply items that together are priced under $20, including items like Mondo Lama crayons for just $0.25, notebooks for $0.50 and $5 backpacks.

雖然很難相信夏天已經結束，但我們的注意力很快就轉向秋天。當然，這要從我們的返校季和大學賽季的延續開始，這些賽季在第三季前半段達到了頂峰。超過 70% 的客人會在這段時間內購買我們的商品，我們為他們準備了充足的庫存，讓他們在新學年開始時取得成功並備有庫存。我們知道負擔能力是消費者最關心的問題，因此今年在許多市場上，我們提供了20 種最受歡迎的學校用品，這些商品的價格合計低於20 美元，其中包括僅0.25 美元的Mondo Lama 蠟筆、0.50 美元的筆記本和5 美元的背包等商品。

For our college-bound guests, we're offering a 20% discount to get their dorm room stocked, styled and ready for study. And as we do every year, we're acknowledging the true classrooms heroes, our teachers, with a special appreciation event offering an additional 20% of must-have supplies. As the fall season continues, we'll be introducing more and more newness across our assortment to celebrate all things autumn.

對於即將上大學的客人，我們提供 20% 的折扣，讓他們的宿舍備貨充足、風格時尚、為學習做好準備。正如我們每年所做的那樣，我們透過特別答謝活動額外提供 20% 的必備用品來表彰真正的課堂英雄——我們的老師。隨著秋季的繼續，我們將在我們的產品系列中引入越來越多的新品來慶祝秋季的一切。

In our performance category, we're offering new assortments from All In Motion, including our first-ever women's legging destination with new fabrications and a range of colors, sizes and silhouettes to make all bodies look and feel their best. In our women's categories, we're leaning into our fall fashion assortment, which includes wardrobe options anchored in head-to-toe on-trend neutrals and showcasing the disruptive value of core items for just $15. And new this year, we are showing out for the game day in a big way, with mix and match apparel items in your favorite college team colors to show some school spirit in style.

在我們的性能類別中，我們提供 All In Motion 的新品種，包括我們首個採用新面料和一系列顏色、尺寸和輪廓的女士緊身褲，讓所有身體看起來和感覺都達到最佳狀態。在女裝類別中，我們傾向於秋季時裝系列，其中包括從頭到腳流行中性色的衣櫥選擇，並展示核心單品的顛覆性價值，價格僅為 15 美元。今年，我們將在比賽日以您最喜愛的大學隊顏色混合搭配服裝，以時尚的方式展現學校精神。

Beyond fall fashion, we know consumers are eager for their apple and pumpkin spice favorites, so we're excited to bring back these fall flavors while introducing some new and trending ones as well. Our fall food assortment will offer more than 150 new owned brand items and more than 500 new national brand items, ranging from Pumpkin Donut Holes and Jack-o-Lantern sandwich cookies, to Pecan Pie ice cream and Good & Gather turkey stuffing flavored potato chips. From sweet to savory, guests will find all their favorites and be inspired by what will surely become some new favorites too.

除了秋季時尚之外，我們知道消費者渴望他們最喜歡的蘋果和南瓜香料，因此我們很高興能帶回這些秋季口味，同時推出一些新的流行口味。我們的秋季食品品種將提供150 多種新自有品牌商品和500 多種新國家品牌商品，從南瓜甜甜圈洞和南瓜燈三明治餅乾，到山核桃派冰淇淋和Good & Gather 火雞餡口味薯片。從甜味到鹹味，客人們會找到所有他們最喜歡的食物，並會受到啟發，這些食物也肯定會成為一些新的最愛。

And while Halloween may seem far away, our consumer research and early season sales suggest there's a lot of excitement around this year's celebrations. Last year, social media was ablaze with videos of our 8-foot all Halloween pumpkin ghoul, Lewis. So we had to bring him back this season along with several new friends, all with their own sassy personalities and catch phrases. We're bringing that own brand love to our custom assortment to. Of course, we're standing to all for all the biggest characters of the season, but we're also seeing an outsized response to our Target branded costumes. And with 75% of the Halloween assortment new this year, we are confident guest will see Target as the Halloween destination for the season.

雖然萬聖節似乎還很遙遠，但我們的消費者研究和早季銷售表明，今年的慶祝活動非常令人興奮。去年，社群媒體上充斥著我們 8 英尺高的萬聖節南瓜食屍鬼路易斯的影片。所以我們必須在這一季讓他和幾個新朋友一起回歸，他們都有自己時髦的個性和流行語。我們將自己的品牌熱愛帶入我們的客製化產品系列中。當然，我們支持本季所有最重要的角色，但我們也看到人們對 Target 品牌服裝的強烈反響。今年 75% 的萬聖節品種都是新的，我們相信客人會將 Target 視為本季的萬聖節目的地。

As it turns out, which has come out for more than Halloween, one of the most anticipated films of the year, Universal Pictures' Wicked hits theaters this fall and our assortment will leave guests spellbound with a collection of licensed products that range from toys to apparel to housewares. We have big plans in store, including exclusive items to Target and we'll have more exciting details to share very soon.

事實證明，環球影業的《魔法壞女巫》是今年最受期待的電影之一，它的上映時間超過了萬聖節，今年秋天將在影院上映，我們的產品系列將讓客人著迷於一系列授權產品，從玩具到玩具，應有盡有。我們有宏偉的計劃，包括 Target 的獨家商品，我們很快就會分享更多令人興奮的細節。

And of course, we don't have to wait for a changing of the season to change up our assortment. In Beauty, after years of meaningful investments in cosmetics and skin care offerings, we're investing in all things hair care. New from L'Oreal is the biggest innovation in at-home hair coloring in years, ColorSonic. This launch is off to a great start, and we see big things ahead for this brand. And more recently, on top of our exciting launch of Jennifer Aniston's Lola B hair care line, we launched a new partnership with celebrity, Blake Lively, for her exclusive to Target line, Blake Brown Haircare, which quickly became our biggest hair care launch on record. On launch day alone, Blake Brown had the five best-selling hair care items at Target.

當然，我們不必等到季節變化才改變我們的品種。在美容領域，經過多年對化妝品和護膚產品的有意義投資，我們正在投資護髮領域的所有產品。歐萊雅的新品是多年來家庭染髮領域最大的創新－ColorSonic。這次發布是一個很好的開端，我們看到這個品牌未來的發展前景。最近，除了令人興奮地推出珍妮佛安妮斯頓(Jennifer Aniston) 的Lola B 護髮系列外，我們還與名人布萊克萊芙莉(Blake Lively) 建立了新的合作夥伴關係，為她推出Target 系列Blake Brown Haircare 獨家產品，該系列很快就成為我們在網路上推出的最大型護髮產品。僅在發布當天，布萊克布朗 (Blake Brown) 就在塔吉特 (Target) 上銷售了五款最暢銷的護髮產品。

Before I turn the call over to Michael, I want to express my gratitude to the entire Target team. The past several years have been anything but routine, and this team has handled every change and turn with grace and a commitment to serving the communities in which we operate. Thank you, Team Target, for all that you do for our guests and for each other.

在將電話轉給 Michael 之前，我想向整個 Target 團隊表示感謝。過去的幾年絕不是例行公事，這個團隊優雅地應對每一次變化和轉折，並致力於服務我們經營所在的社區。謝謝你，Target 團隊，感謝你為我們的客人和彼此所做的一切。

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

這樣，我會將電話轉給麥可。

Thanks, Rick. I'd like to join Brian in welcoming you to your first earnings call. I'm excited about all of the long-term growth opportunities we have in front of us as we work together to deliver more for our guests, for our team and for our shareholders.

謝謝，瑞克。我想和布萊恩一起歡迎您參加第一次財報電話會議。我對我們面前的所有長期成長機會感到興奮，因為我們共同努力為我們的客人、我們的團隊和我們的股東提供更多服務。

As Brian mentioned, I'm temporarily wearing two hats right now as I continue in the CFO role while preparing to fully move in the COO role. And while I'm looking forward to the day when I'm only wearing the COO hat, I'm privileged to be surrounded by exceptionally talented leaders and teams that are operating with a guest-first long-term focus that's fueling our results. Every day, I see their commitment to caring, growing and winning together. Whether I walk in a store, a distribution center or the halls in our headquarters, there is no doubt in my mind that our team members are the number one reason that Target is such a special place to work.

正如布萊恩所提到的，我現在暫時身兼兩職，繼續擔任財務官，同時準備全面擔任營運長。雖然我期待著有一天我只戴上首席營運長的帽子，但我很榮幸能被才華橫溢的領導者和團隊包圍，他們以客戶至上的長期關注點運作，這推動了我們的業績。每一天，我都能看到他們對關懷、共同成長和共同勝利的承諾。無論我走進商店、配送中心還是總部的大廳，毫無疑問，我們的團隊成員是塔吉特成為如此特殊工作場所的首要原因。

As we've been highlighting for some time, the operations team is focused on reinforcing retail fundamentals following an extended period of unprecedented volatility that began more than four years ago. While this effort encompasses many processes and metrics, nothing is more important than staying in stock and being reliable for our guests. And while our in-stock measures have been improving rapidly for some time now, we're going to continue our work to improve them even more.

正如我們一段時間以來一直強調的那樣，在四年多前開始的長期前所未有的波動之後，營運團隊專注於加強零售基本面。雖然這項工作涉及許多流程和指標，但沒有什麼比保持庫存和對我們的客人可靠更重要的了。雖然我們的庫存措施在一段時間以來一直在迅速改善，但我們將繼續努力進一步改善它們。

In the second quarter, total out of stocks were more than 500 basis points lower than a year ago. Also important, out of stocks on our top items in Q2, the ones with the highest unit velocity, were more than 50% lower than total out of stocks and also better than a year ago. Notably, these out-of-stock measures would have been even more favorable if our perishable food distribution facility in Denton, Texas had not sustained major damage from a severe storm in late May, something I'll return to later in my remarks.

第二季度，庫存總量比去年同期減少了 500 多個基點。同樣重要的是，第二季我們的熱門產品（單位流通速度最高的產品）的缺貨情況比缺貨總量低 50% 以上，也好於一年前。值得注意的是，如果我們位於德克薩斯州丹頓的易腐食品配送設施沒有因5 月下旬的嚴重風暴而遭受重大損壞，那麼這些缺貨措施將會更加有利（我將在稍後的發言中談到這一點）。

It's also notable that our total inventory investment at the end of Q2 was slightly lower than a year ago, meaning that the out-of-stock improvements we've been seeing are the result of operational improvements, not from simply flooding our network with more inventory. Of course, we're always focused on maintaining the right amount of inventory to deliver on our reliability goals, and we're already growing our inventory in categories where demand is strong. But overall, our business has been able to sustain stronger inventory turns than we've seen historically, something you'd expect to happen given the gains in sales per store we've seen over the last five years.

另外值得注意的是，我們第二季末的總庫存投資略低於一年前，這意味著我們看到的缺貨改善是營運改善的結果，而不是簡單地向我們的網路注入更多庫存。當然，我們始終致力於維持適量的庫存，以實現我們的可靠性目標，並且我們已經在需求強勁的類別中增加了庫存。但總體而言，我們的業務能夠維持比歷史上更強勁的庫存週轉率，考慮到過去五年我們看到的每家商店銷售額的成長，這是你所期望的。

Another area of focus for our team is the store shopping experience, most notably in the front end at checkout. With the recent changes we've made to streamline self-checkout, while ensuring we maintain adequate staffing in our full service lanes, we're seeing notably faster checkout times in our self-service lanes. In addition, with more people using our full-service lanes, our team has been engaging with nearly 15% more guests at checkout compared with last year. And with all of these changes, we've seen a continued substantial improvement in our Net Promoter Scores regarding the purchase experience, with scores related to wait times and interactions at checkout the strongest we've seen in six years.

我們團隊關注的另一個領域是商店購物體驗，尤其是結帳時的前端。透過最近我們為簡化自助結帳而做出的改變，同時確保我們在全方位服務通道中保持足夠的人員配備，我們發現自助服務通道的結帳時間明顯加快。此外，隨著越來越多的人使用我們的全方位服務通道，與去年相比，我們團隊在結帳時接觸的客人數量增加了近 15%。透過所有這些變化，我們看到在購買​​體驗方面的淨推薦值持續大幅提高，與等待時間和結帳時互動相關的分數是六年來最強的。

We're also making investments in technology to make it easier for our team members to serve our guests. Earlier this year, we integrated GenAI into the handheld devices in our stores, providing our team with rapid access to best practice documentation and the ability to quickly receive straightforward responses to common questions, like how do I sign a guest up for a Target Circle card, and how do I restart the cash register in the event of a power outage. Since the full chain rollout of this new tool, our team members have leveraged the technology more than 50,000 times, giving answers in a highly efficient average chat time of less than one minute.

我們也對科技進行投資，以便我們的團隊成員可以更輕鬆地為客人提供服務。今年早些時候，我們將 GenAI 整合到商店的手持設備中，使我們的團隊能夠快速存取最佳實踐文檔，並能夠快速收到常見問題的直接答复，例如如何為客人註冊 Target Circle 卡，以及停電時如何重新啟動收銀機。自從這個新工俱全鏈推出以來，我們的團隊成員已經利用該技術超過 50,000 次，在平均不到一分鐘的高效聊天時間內給出了答案。

We'll continue to refine this tool over time based on feedback from our team, but many are already telling us that it's enhanced their everyday work experience, making it easier and faster for them to help our guests. In addition, leaders in our stores are telling us they expect this new tool will be particularly helpful as we bring on new permanent and seasonal team members in advance of this year's holiday season, helping them to become more productive, more quickly than in the past.

隨著時間的推移，我們將根據團隊的回饋繼續完善此工具，但許多人已經告訴我們，它增強了他們的日常工作體驗，使他們能夠更輕鬆、更快速地為我們的客人提供幫助。此外，我們商店的領導告訴我們，他們預計這個新工具將特別有用，因為我們在今年的假期季節之前引入了新的長期和季節性團隊成員，幫助他們比過去更快地提高生產力。

Of course, while well documented, efficient and repeatable processes are critical to maintaining quality in a large operation, it's just as important to help our team to stay nimble and able to react to unforeseen events. And our team had to deal with several weather-related challenges in the second quarter. As I mentioned earlier, our Denton, Texas perishable food distribution center sustained significant physical damage from a storm in late May, resulting in a prolonged site closure and significant product loss at that location.

當然，雖然記錄齊全、高效且可重複的流程對於維持大型營運的品質至關重要，但幫助我們的團隊保持敏捷並能夠對不可預見的事件做出反應也同樣重要。我們的團隊在第二季必須應對一些與天氣相關的挑戰。正如我之前提到的，我們德州丹頓市的易腐食品配送中心在 5 月下旬的一場風暴中遭受了嚴重的物理損壞，導致該地點長期關閉並造成重大產品損失。

Following the storm, the team reacted quickly to minimize the impact, temporarily realigning perishable food replenishment for 220 locations with other distribution nodes, while our construction and distribution teams rushed to get the facility repaired and operational before the end of the quarter. Later in the quarter, in early July, Hurricane Barrel hit landfall in Southern Texas, and our team responded quickly to help their neighbors in affected communities. When power was lost in multiple locations, our team successfully kept stores open using generators providing food, supplies and a safe place for community members to take shelter and charge their electronic devices.

風暴過後，團隊迅速做出反應，將影響降到最低，暫時重新調整了220 個地點與其他配送節點的易腐食品補給，而我們的施工和配送團隊則趕在季度末之前修復設施並投入運營。本季度晚些時候，即 7 月初，颶風「桶」在德克薩斯州南部登陸，我們的團隊迅速做出反應，幫助受影響社區的鄰居。當多個地點斷電時，我們的團隊使用發電機成功地讓商店保持營業，為社區成員提供食物、物資和安全場所，讓他們可以避難並為其電子設備充電。

Our team helped to organize and deliver donations of critical supplies to their neighbors, while helping to clear debris from nearby roads in homes. And as always, our team members took care of each other from cooking meals for displaced colleagues to making sure everyone had access to emergency supplies and shelter. To support these heroic efforts in the field, we maintain a robust infrastructure, supported by a core team at our headquarters that's ready to provide communications and support when disasters happen. As part of these preparations, we reserve and preposition thousands of pallets of critical supplies throughout our distribution network, which can be quickly deployed to affected areas when events occur.

我們的團隊幫助組織並向鄰居捐贈了重要物資，同時幫助清理附近道路上的碎片。一如既往，我們的團隊成員互相照顧，從為流離失所的同事做飯到確保每個人都能獲得緊急物資和住所。為了支持這些在現場的英勇努力，我們維持了強大的基礎設施，並得到總部核心團隊的支持，隨時準備在災難發生時提供通訊和支援。作為這些準備工作的一部分，我們在整個分銷網絡中儲備並預先部署了數千個托盤的關鍵物資，以便在事件發生時可以快速部署到受影響的地區。

We also maintain a command center at our headquarters that's equipped to monitor weather and other conditions in the areas where we operate, helping our field teams to prepare and react quickly to minimize the impact when adverse events affect our communities, colleagues and our business. And of course, we're proud to continue offering financial support in affected communities, having already made proactive donations of $2.5 million so far this year in support of our domestic and global disaster relief partners.

我們還在總部設有一個指揮中心，該中心配備了監測我們運營地區的天氣和其他條件的設備，幫助我們的現場團隊做好準備并快速做出反應，以盡量減少不利事件影響我們的社區、同事和業務時的影響。當然，我們很自豪能夠繼續為受影響的社區提供財政支持，今年迄今已主動捐款 250 萬美元，以支持我們的國內和全球救災合作夥伴。

Following Hurricane Barrel, our donations helped the American Red Cross stand up more than 10 evacuation centers in Houston. We also supported Team Rubicon as they worked to clear fallen trees, helped homeowners navigate FEMA locations for disaster assistance, aided the footprint project in providing solar generators to power homes and medical machines, and provided food, medicine and other critical supplies to the hardest hit neighborhoods.

颶風「桶」發生後，我們的捐款幫助美國紅十字會在休士頓建立了 10 多個疏散中心。我們也支持Rubicon 團隊清理倒下的樹木，幫助房主導航FEMA 地點以獲得災難援助，協助足跡計畫提供太陽能發電機為家庭和醫療機器供電，並向受災最嚴重的地區提供食品、藥品和其他重要物資社區。

So much of our Target Forward sustainability strategy is dedicated to working across the business, to address community needs and drive meaningful and positive impact. Through Target's for philanthropy and volunteerism, and by integrating business assets to meet the needs of our communities, we aim to be present in ways that help all families thrive, knowing the guests and communities we serve are critical to the success of our business.

我們的 Target Forward 永續發展策略的大部分內容都致力於在整個企業範圍內開展工作，滿足社區需求並推動有意義和積極的影響。透過塔吉特的慈善事業和志願服務，並透過整合商業資產來滿足社區的需求，我們的目標是幫助所有家庭蓬勃發展，因為我們知道我們服務的客人和社區對我們業務的成功至關重要。

So I want to pause and thank our entire team for their tireless efforts, both every day and especially during times of need. You serve as the face of the company in all of the communities where we live and work, and you are the biggest reason consumers love our brand. I'm proud to work with you and grateful for everything you do to support our business, our communities and your fellow team members.

因此，我想停下來感謝我們整個團隊每天，尤其是在需要的時候所做的不懈努力。在我們生活和工作的所有社區中，您都是公司的代言人，您是消費者喜愛我們品牌的最大原因。我很自豪能與您合作，並感謝您為支持我們的業務、我們的社區和您的團隊成員所做的一切。

So now I want to pivot and provide a quick update on our sortation center strategy, which continues to benefit our business in multiple ways. A critical aspect of this strategy is faster delivery speeds as local orders processed through a sortation center arrive more than a day faster than our network average. But notably, that increase in speed doesn't require more dollars, as our unit delivery costs from a sort center are about 20% lower than our network average. On top of that direct benefit, opening a sortation center in the market frees up processing space in the stores it serves, while delivering labor savings in those locations as well.

因此，現在我想調整並快速更新我們的分類中心策略，該策略將繼續以多種方式使我們的業務受益。該策略的一個關鍵方面是更快的交付速度，因為透過分類中心處理的本地訂單到達速度比我們的網路平均速度快一天多。但值得注意的是，速度的提高並不需要更多的資金，因為我們的分類中心的單位交付成本比我們的網路平均值低約 20%。除了直接好處之外，在市場上開設分類中心還可以釋放其服務的商店的處理空間，同時還可以節省這些地點的勞動力。

With all of these benefits, you can see why we're excited to continue expanding the reach of this capability. And just this month, we're opening our 11th sort center in the Detroit market, where it's expected to serve more than 3 million consumers. By 2028, this facility is expected to process up to 60,000 packages daily while operating in a smaller-than-average footprint. And beyond growth in the number of these facilities, our existing source centers continue to ramp up their capacity, and we're finding new ways to integrate them into our broader network.

有了所有這些優勢，您就會明白為什麼我們很高興繼續擴大此功能的範圍。就在本月，我們將在底特律市場開設第 11 個分揀中心，預計將為超過 300 萬消費者提供服務。到 2028 年，該設施預計每天可處理多達 60,000 個包裹，同時營運佔地面積小於平均水準。除了這些設施數量的增長之外，我們現有的資源中心還在繼續提高其容量，並且我們正在尋找新的方法將它們整合到我們更廣泛的網路中。

For example, our recently opened sort center in Chicago will be feeding the Detroit sortation center, increasing the number of packages eligible for next-day delivery in that market. Altogether this year, our sortation centers have processed 19% more packages than a year ago.

例如，我們最近在芝加哥開設的分揀中心將為底特律分揀中心提供貨物，從而增加該市場符合隔天投遞資格的包裹數量。今年，我們的分揀中心處理的包裹比一年前增加了 19%。

So now I want to turn to our second quarter financial results. As Brian highlighted earlier, the 2% increase in our Q2 comp sales was driven entirely by traffic. This traffic increase was partially offset by a decline in average ticket, which included a decrease in our average selling price when compared with a year ago. As Brian mentioned, our guests continue to shop around seasonal moments, leading to strength around the Memorial Day holiday as well as the Fourth of July and our most recent Target Circle week later in the quarter. Within the quarter, comp sales were strongest in June and July, and trends were very similar between those two months on a reported basis. Most importantly, traffic grew in all three months of the quarter.

現在我想談談我們第二季的財務表現。正如 Brian 之前所強調的那樣，我們第二季的銷售額成長 2% 完全是由流量推動的。客流量的成長被平均票價的下降部分抵消，其中包括平均售價與一年前相比的下降。正如布萊恩所提到的，我們的客人繼續在季節性時刻購物，導致陣亡將士紀念日假期以及 7 月 4 日和本季度晚些時候我們最近的 Target Circle 週期間的強勁勢頭。在本季內，公司銷售在 6 月和 7 月最為強勁，根據報告，這兩個月的趨勢非常相似。最重要的是，本季所有三個月的流量都在增加。

Beyond our comp sales, second quarter total revenue growth of 2.7% reflected the benefit from sales in nonmature stores and double-digit growth in other revenue, driven primarily by strong growth in our Roundel ad business. Our second quarter gross margin rate of 28.9% was about 190 basis points higher than a year ago. About 90 basis points of this improvement was driven by our merchandising strategies, which included the ongoing benefit of our efficiency work. We also saw about 40 basis points of benefit from category sales mix, which was largely offset by cost pressures from digital fulfillment and supply chain.

除了我們的比較銷售之外，第二季度總收入增長 2.7%，反映出非成熟商店銷售的收益以及其他收入的兩位數增長，這主要是由我們的 Roundel 廣告業務的強勁增長推動的。我們第二季的毛利率為 28.9%，比去年同期高出約 190 個基點。這項改進大約有 90 個基點是由我們的銷售策略所推動的，其中包括我們效率工作的持續效益。我們也看到品類銷售組合帶來了約 40 個基點的收益，這在很大程度上被數位履行和供應鏈的成本壓力所抵消。

Finally, our gross margin rate reflected about 90 basis points of benefit from lower inventory shrink, compared with 20 basis point benefit in the first quarter. While our guidance assumes that the year-over-year benefit from shrink would increase this quarter, we've seen better-than-expected results in our most recent store inventory counts, resulting in a bigger-than-expected financial benefit in Q2. Based on these updated accounts, we're now expecting our Q3 gross margin rate will also benefit from lower shrink costs, but expect the magnitude of that benefit will be less than half of what we just experienced in the second quarter.

最後，我們的毛利率反映了庫存縮減減少帶來的約 90 個基點的收益，而第一季為 20 個基點的收益。雖然我們的指導假設本季收縮帶來的年比效益將會增加，但我們最近的商店庫存計數結果好於預期，導致第二季的財務效益超出預期。根據這些更新的帳目，我們現在預計第三季的毛利率也將受益於較低的收縮成本，但預計這種收益的幅度將不到我們剛剛在第二季經歷的一半。

And for Q4, given the financial benefit we were already seeing a year ago, we're expecting shrink costs will be approximately flat to last year. While it's encouraging to see this progress, we'll continue our work to move shrink rates down to more sustainable levels in the years ahead, given the steep increase in shrink that our business has absorbed over the last five years.

對於第四季度，考慮到我們一年前已經看到的財務效益，我們預計縮減成本將與去年基本持平。雖然看到這一進展令人鼓舞，但考慮到我們的業務在過去五年中吸收的損耗急劇增加，我們將在未來幾年繼續努力將損耗率降低到更可持續的水平。

Our second quarter SG&A expense rate of 21.2% was about 30 basis points higher than a year ago. This increase reflected cost increases in multiple parts of our business, along with continued investments in our team, which were partially offset by lower remodel expenses, savings from our efficiency work and continued disciplined cost management throughout the enterprise. Overall, our Q2 operating margin rate of 6.4% was about 160 basis points higher than last year as we continue to build back our profitability from the significant headwinds we've encountered over the last couple of years.

我們第二季的 SG&A 費用率為 21.2%，比去年同期高出約 30 個基點。這一成長反映了我們業務多個部分的成本增加，以及對我們團隊的持續投資，但改造費用的降低、效率工作的節省以及整個企業持續嚴格的成本管理部分抵消了成本的增加。總體而言，我們第二季度的營業利潤率為 6.4%，比去年高出約 160 個基點，因為我們繼續從過去幾年遇到的重大阻力中恢復盈利能力。

Regarding our inventory, we continue to feel good about our position. As I mentioned earlier, Q2 ending inventory on the balance sheet was slightly lower than a year ago. However, given all of the volatility we've experienced since the pandemic began, 1-year comparisons can be hard to interpret. As such, we still find it useful to compare relative growth rates back to 2019. And if you perform that comparison for the second quarter, you'll see that both our sales and ending inventory have grown about 38% over those five years, reinforcing our view that we're positioned appropriately as we enter the back half of the year.

關於我們的庫存，我們繼續對我們的狀況感到滿意。正如我之前提到的，第二季末資產負債表上的庫存略低於一年前。然而，考慮到自大流行開始以來我們經歷的所有波動，一年的比較可能很難解釋。因此，我們仍然發現將相對成長率與 2019 年進行比較很有用。我們認為，進入今年下半年，我們的定位是適當的。

Now I'd like to turn to capital deployment and briefly reiterate our long-standing priorities. First, we look to fully invest in our business and projects that meet our strategic and financial criteria. Next, we look to support the dividend and build on our more than 50-year record of increasing the annual dividend. And finally, we look to return any excess cash that's available after these first two uses by engaging in share repurchases over time within the limits of our late credit ratings.

現在我想談談資本部署並簡要重申我們長期的優先事項。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。接下來，我們希望支持股息並以我們 50 多年增加年度股息的記錄為基礎。最後，我們希望透過在我們後期信用評級的範圍內進行股票回購來返還前兩次使用後可用的多餘現金。

Regarding the first priority, we've allocated $1.3 billion to capital expenditures through the first half of the year and continue to expect full year CapEx in the $3 billion to $4 billion range. Regarding the second priority, we returned $509 million to shareholders in the form of dividends in Q2, representing growth of about $10 million over last year. And finally, we returned to share repurchases in the second quarter, allocating $155 million to retire 1.1 million shares of our stock.

關於第一要務，我們已為今年上半年的資本支出分配了 13 億美元，並繼續預計全年資本支出將在 30 億至 40 億美元之間。關於第二個優先事項，我們在第二季以股息的形式向股東返還了 5.09 億美元，比去年增長了約 1000 萬美元。最後，我們在第二季重新進行了股票回購，撥款 1.55 億美元回購了 110 萬股股票。

Given the work of our team to strengthen our balance sheet over the last 18 months and the simultaneous improvements we've seen in our profitability and cash flow, we were happy to get back to repurchases this quarter. We expect to have continued repurchase capacity in the back half of 2024 and in the years ahead.

鑑於我們團隊在過去 18 個月中為加強資產負債表所做的努力，以及我們在盈利能力和現金流方面同步改善的情況，我們很高興本季度重新開始回購。我們預計 2024 年下半年及未來幾年仍將有持續的回購能力。

So now I want to end my commentary on the quarter by covering our after-tax return on invested capital, which is an important measure of the quality of both our financial results and our capital investments. Through the 12 months ending in the second quarter, our after-tax ROIC of 16.6% was nearly 3 percentage points higher than a year ago. While this is already a very strong after-tax return, our long-term financial plans envision continued growth of this metric into the high teens over time.

因此，現在我想透過我們的投資資本稅後回報率來結束對本季的評論，這是衡量我們財務表現和資本投資品質的重要指標。截至第二季的 12 個月內，我們的稅後投資報酬率為 16.6%，比去年同期高出近 3 個百分點。雖然這已經是非常強勁的稅後回報，但我們的長期財務計畫預計，隨著時間的推移，這項指標將持續成長到青少年時期。

Now I'd like to turn to our expectations for the third quarter and the full year. And while our performance has exceeded our expectations so far this year and our view of the consumer remains largely the same, the range of possibilities and the macroeconomic backdrop in consumer data and in our business remains unusually high. Against that backdrop, our experience over the last several years has shown us that a prudent outlook, while maintaining the team's agility, is the best way to position our business. As such, we've taken a measured approach to our forward-looking guidance, and our team remains ready to respond if the pace of our business turns out to be stronger.

現在我想談談我們對第三季和全年的預期。儘管今年迄今為止我們的業績超出了我們的預期，而且我們對消費者的看法基本上保持不變，但消費者數據和我們業務的可能性範圍和宏觀經濟背景仍然異常高。在此背景下，過去幾年的經驗告訴我們，審慎的前景，同時保持團隊的敏捷性，是定位我們業務的最佳方式。因此，我們對前瞻性指導採取了審慎的方法，如果我們的業務步伐變得更加強勁，我們的團隊將隨時準備做出反應。

With these considerations as context, we're planning for third quarter comparable sales growth in the 0% to 2% range, and GAAP and adjusted EPS of $2.10 to $2.40. And while our full year comp guidance range remains the same at 0% to 2% growth and the breadth of possibilities remains quite wide, our baseline plan for the fall season would put us in the lower half of that range for the full year. However, in light of the strong financial performance our business has already delivered in the first half of the year, we've raised our full year GAAP and adjusted EPS range to $9 to $9.70 compared with our prior range of $8.60 to $9.60.

考慮到這些因素，我們計劃第三季可比銷售額成長在 0% 到 2% 範圍內，GAAP 和調整後每股收益為 2.10 美元到 2.40 美元。雖然我們的全年薪酬指導範圍保持在 0% 到 2% 的增長，而且可能性的廣度仍然相當大，但我們秋季的基準計劃將使我們全年處於該範圍的下半部分。然而，鑑於我們的業務在今年上半年已經實現了強勁的財務業績，我們提高了全年公認會計準則，並將每股收益範圍從之前的 8.60 美元到 9.60 美元調整為 9 美元到 9.70 美元。

At our Financial Community Meeting earlier this year, we provided insight into our financial aspirations over the next 10 years. At their core, those aspirations are based on two basic assumptions: healthy growth on the top line and reaching the appropriate level of profitability on the bottom line. In the second quarter, in an environment where consumers are focused on value and making tough trade-offs in their spending decisions, our team delivered newness, value and reliability to our guests, resulting in top line growth beyond our baseline expectations and even faster growth in guest traffic.

在今年稍早的金融社區會議上，我們深入了解了未來 10 年的金融願望。從本質上講，這些願望基於兩個基本假設：營收的健康成長和獲利達到適當的獲利水準。第二季度，在消費者專注於價值並在支出決策中做出艱難權衡的環境中，我們的團隊為客人提供了新穎、價值和可靠性，導致營收成長超出了我們的基準預期，甚至實現了更快的成長在客流量中。

And importantly, even in a challenging environment, we also expanded our Q2 operating margin rate. We are really proud of these results, which reflect the hard work and dedication of our outstanding team. At the same time, this quarter was only the first step on a much longer journey and we have a lot more work ahead of us. More specifically, with 2019 as a baseline, the second quarter was the first time in a while in which our EPS grew faster than the top line, with total revenue growth of 38% over that 5-year period and EPS growth of more than 41%. Our guidance for the remainder of the year implies further expansion of both of those metrics. And based on our growth initiatives, ongoing efficiency work and continued opportunity to reduce the impact of inventory shrink, we expect to see additional progress in the years ahead.

重要的是，即使在充滿挑戰的環境下，我們也擴大了第二季的營業利潤率。我們對這些成果感到非常自豪，這反映了我們優秀團隊的辛勤工作和奉獻精神。同時，本季只是漫長旅程的第一步，我們還有很多工作要做。更具體地說，以 2019 年為基準，第二季的每股盈餘成長速度在一段時間內首次超過營收，五年期間總營收成長 38%，每股盈餘成長超過 41% %。我們對今年剩餘時間的指導意味著這兩個指標的進一步擴展。基於我們的成長計劃、持續的效率工作以及減少庫存縮減影響的持續機會，我們預計未來幾年將取得更多進展。

We have a clear vision of how we're going to get there and the right team in place to make it happen. With that, I'll turn the call back over to Brian.

我們對如何實現這一目標有著清晰的願景，並且擁有合適的團隊來實現這一目標。這樣，我會將電話轉回布萊恩。

Thanks, Michael. Before we turn to your questions, I want to spend a minute on a concept we've touched on before, which is the way we uniquely leverage the power of hand in our business. The recent Target is so unique, and why we've developed such a special bond with consumers is because we offer something different than everyone else in the marketplace. We offer great prices, convenience, compelling promotions and a great shopping experience.

謝謝，麥可。在回答您的問題之前，我想花一點時間討論我們之前提到過的一個概念，這就是我們在業務中獨特地利用手工力量的方式。最近的 Target 非常獨特，我們與消費者建立瞭如此特殊的聯繫是因為我們提供了與市場上其他公司不同的東西。我們提供優惠的價格、便利的服務、引人注目的促銷活動和一流的購物體驗。

Our nearly 2,000 stores are accessible to the vast majority of the US population, and we have a comprehensive suite of fast and convenient digital fulfillment options. For destination in discretionary categories like apparel, Home and Hardlines; in frequency categories, like Essentials and food & beverage 'and in Beauty, which perfectly straddles both, we offer a broad range of items, serve as a convenient one-stop shop and we're well known for curating our merchandise assortment. We are a style leader. We're known for celebrating seasonal moments and we offer reliability on everyday wants and needs.

我們的近 2,000 家商店可供絕大多數美國人口使用，我們擁有一整套快速、便利的數位履行選項。適用於服裝、家居和硬品等非必需類別的目的地；在頻率類別，如必需品和食品和飲料，以及在美容領域，我們提供廣泛的商品，作為便利的一站式商店，我們以策劃我們的商品分類而聞名。我們是風格的領導者。我們以慶祝季節性時刻而聞名，並且我們可靠地滿足日常需求。

When we're at our best, we achieve a proper balance between all of those aspects or go-to-market strategy, and the second quarter was a textbook example of Target being Target. I'm incredibly proud of our team for delivering better-than-expected results in an environment where consumers are facing multiple challenges. Knowing there's more work to be done. Our team is on their front foot and ready to deliver more for our guests in the third quarter and beyond. Our team's positive energy is contagious, and I look forward to working with them as they continue to move Target forward in the quarters and years ahead.

當我們處於最佳狀態時，我們會在所有這些方面或進入市場策略之間實現適當的平衡，第二季度是塔吉特就是塔吉特的教科書例子。我為我們的團隊在消費者面臨多重挑戰的環境中提供超出預期的結果感到無比自豪。知道還有更多工作要做。我們的團隊已做好準備，在第三季及以後為我們的客人提供更多服務。我們團隊的正能量具有感染力，我期待與他們合作，讓他們在未來幾季和幾年繼續推動 Target 向前發展。

So with that, we'll move to Q&A. Rick, Michael and I will be happy to take your questions.

那麼，我們將進入問答環節。里克、麥可和我很樂意回答您的問題。

(Operator Instructions) Kate McShane, Goldman Sachs.

（操作員指示）Kate McShane，高盛。

You mentioned that you haven't seen a notable change in the consumer versus what you've seen year-to-date. Can you help us understand or reconcile your ability to get to the high end of guidance range for quarter 2, maintain the guidance range for Q3, but also flagged you are likely to get to the lower end for the same-store sales guidance range for the year?

您提到，與今年迄今為止所看到的相比，您沒有看到消費者發生顯著變化。您能否幫助我們了解或協調您達到第二季指導範圍高端、維持第三季指導範圍的能力，但也標記您可能達到同店銷售指導範圍的下限年份？

Thanks for the question, Kate. I think the headline is, at the start of your question, we see a consumer that's largely consistent with how we would have described the consumer over the last couple of quarters. Consumer that's been resilient overall in their spending and flat in spite of significant inflation over the last couple of years. A consumer that's choiceful, and so our combination of getting newness and value right in the second quarter led to the performance that was at the top end of our expectations.

謝謝你的提問，凱特。我認為標題是，在你的問題開始時，我們看到的消費者與我們在過去幾季中描述消費者的方式基本上一致。儘管過去幾年通膨嚴重，但消費者的支出總體上保持彈性且持平。消費者是有選擇性的，因此我們在第二季度將新穎性和價值結合起來，導致了業績達到了我們預期的最高水準。

As we look at the balance of the year, we've got more of the year in front of us than is behind us, and we think it's prudent to take a review against the kind of consumer behaviors we'll be watching over the balance of the year. But importantly, that guidance is still centered on growth. We expect to continue to grow in Q3. We expect to have a growth story for the year. And you can see us playing offense appropriately against that goal, but being measured in our outlook. We think that's the right way to position the business.

當我們審視今年的餘額時，我們面前的這一年比過去的還要多，我們認為對我們將在餘額中關注的消費者行為進行審查是謹慎的做法今年的。但重要的是，該指導仍然以增長為中心。我們預計第三季將繼續成長。我們預計今年將會有一個成長故事。你可以看到我們針對這個目標適當地進攻，但在我們的前景中進行衡量。我們認為這是定位業務的正確方式。

Kate, just to build on Michael's comments. I think in this environment, where there is so much consumer uncertainty, we're taking the appropriate approach to guidance in the third quarter. But as you heard from Rick and from Michael, we're continuing to play to win, and we feel very good about how we're prepared for the big seasonal moments. We're in back-to-school right now and back to college. We're excited about Halloween. And Rick and his team are planning for some unique moments during the holiday season.

凱特，我只是以邁克爾的評論為基礎。我認為在這種消費者存在很大不確定性的環境下，我們將在第三季採取適當的指導方法。但正如你從里克和邁克爾那裡聽到的那樣，我們將繼續為勝利而戰，我們對如何為重要的賽季時刻做好準備感到非常滿意。我們現在回到學校，回到大學。我們對萬聖節感到興奮。里克和他的團隊正在計劃在假期期間創造一些獨特的時刻。

So I don't want anyone to be confused with what we think is the appropriate outlook for the third quarter, but the fact that we're going to continue to play offense. We're going to look to drive traffic into our stores and visit to our site, and make sure we deliver great value along with newness for our guests throughout the season.

因此，我不希望任何人對我們認為的第三季適當的前景感到困惑，但事實上我們將繼續進攻。我們將努力增加商店的客流量和網站的訪問量，並確保我們在整個季節為客人提供巨大的價值和新鮮感。

Rupesh Parikh, Oppenheimer.

魯佩什·帕里克，奧本海默。

Also congrats on a nice quarter. So I just wanted to go back to the operating margin performance during the quarter. We still had very strong delivery during the quarter. How do you feel about the sustainability of the improvement? And then over time, getting back to that 6% plus margins on an annual basis?

也恭喜一個美好的季度。所以我只想回顧一下本季的營業利潤率表現。本季我們的交付量仍然非常強勁。您對改進的可持續性有何看法？然後隨著時間的推移，每年的利潤率會恢復到 6% 以上嗎？

Yes. Thanks for the question, Rupesh. As we laid out at the start of the year, this year was going to be about progress to that better margin performance over time. And two quarters in, I just can't thank the team enough their work to put us solidly on the path of the improvement that we laid out for the year. If you unpacked the quarter, I hit on some of this in my remarks, but it always starts with the top line. So to grow the top line on a 2% comp. To see a category like apparel -- so we like the margins in apparel, to see that category return to growth helped us from a mix perspective.

是的。謝謝你的提問，魯佩什。正如我們在年初所規劃的那樣，隨著時間的推移，今年將取得更好的利潤表現。兩個季度過去了，我對團隊的工作感激不盡，他們的工作讓我們堅定地走上了今年所製定的改進之路。如果你打開本季的包裝，我在演講中提到了其中的一些內容，但它總是從頂線開始。因此，要以 2% 的薪酬來增加收入。看到像服裝這樣的類別——所以我們喜歡服裝的利潤率，看到該類別恢復成長從混合的角度幫助我們。

Great work by the team to continue to find efficiency within the business. And we expected a more promotional environment this year. We've certainly seen that so far. But you can see the strength on the margin line due to the team's really hard work to continue to squeeze efficiencies out of the business in ways big and small. And we're pleased with the progress we're making on shrink. Now there's some noise quarter-to-quarter about how that will come through. So tried to unpack some of those details in my prepared remarks. But the net punch line there is ahead of where we expected to be in terms of progress on shrink too. And so all that's adding up to an earnings result, we're certainly pleased with. And our work going forward will be continue to continue that momentum in Q3 and Q4.

團隊的出色工作繼續提高業務效率。我們預計今年會有更多的促銷環境。到目前為止我們確實已經看到了這一點。但你可以看到利潤率的優勢，因為團隊非常努力地繼續以大大小小的方式提高業務效率。我們對在收縮方面取得的進展感到滿意。現在，每個季度都會有一些關於如何實現這一目標的噪音。因此，我試圖在我準備好的發言中解釋其中的一些細節。但在縮減方面的進展方面，淨妙語也超出了我們的預期。因此，所有這些加起來就構成了盈利結果，我們當然對此感到滿意。我們未來的工作將在第三季和第四季繼續保持這一勢頭。

Rupesh, I'd just amplify a couple of the comments you've heard us make over the last few quarters and really recognize the focus the teams placed on fundamentals. Michael talked about the progress in reliability, improving our in-stocks. Rick talked about the improvement in value and the commitments we've made to making sure we provide value to our guests no matter where they're shopping and how they're shopping. And I think that focus on controlling the things we can control is really helping us improve our operating margin performance.

Rupesh，我只想詳細闡述您在過去幾季中聽到的一些評論，並真正認識到團隊對基本面的關注。麥可談到了可靠性方面的進步，以及我們庫存的改善。里克談到了價值的提高以及我們所做的承諾，以確保我們為客人提供價值，無論他們在哪裡購物以及如何購物。我認為，專注於控制我們可以控制的事情確實有助於我們提高營業利潤率。

But the team has been very focused on retail fundamentals, execution each and every day, both from a physical standpoint and a digital standpoint. And I think you're seeing the benefits of that pay off.

但該團隊一直非常關注零售基礎知識和日常執行，無論是從實體角度還是數位角度。我認為您已經看到了這種回報的好處。

Chris Horvers, JPMorgan.

克里斯霍弗斯，摩根大通。

My first question is, can you talk more specifically about what drove the strength in the merchandise margin strategy in the second quarter? And what are you embedding in the back half in terms of sustainability?

我的第一個問題是，您能否更具體地談談是什麼推動了第二季商品利潤策略的走強？在永續發展方面，您在後半部嵌入了什麼？

Yes. Thanks for the question, Chris. There's a lot that goes into that margin line on any quarter. And so the headlines are some we've touched on a little bit already. We've definitely seen a more promotional environment. But against that backdrop, the teams have worked hard to find efficiencies within the business. And that can show up in ways big and small. To give a tangible example, and one of the things that we've continued to see progress with is -- the most expensive thing we do in fulfilling product is shipping a brown box, and we've seen significant improvement in the cost per unit of that activity, as teams have worked to better align inventory with where we see demand. So we have to split shipments frequently.

是的。謝謝你的提問，克里斯。任何季度的利潤線都有很多內容。因此，我們已經稍微觸及了一些頭條新聞。我們確實看到了一個更具促銷性的環境。但在這種背景下，團隊努力提高業務效率。這可以大大小小的方式體現出來。舉一個具體的例子，我們持續看到進展的事情之一是——我們在履行產品時所做的最昂貴的事情是運輸一個棕色盒子，我們已經看到單位成本的顯著改善該活動的一部分，因為團隊努力使庫存與我們看到的需求更好地保持一致。所以我們必須經常分批出貨。

And the core productivity within those processes, big improvements in our stores team, delivering that product more efficiently as we pick and pack in the stores, and so that work adds up. And the teams have been at it for multiple quarters now, and we're seeing it pay off.

這些流程中的核心生產力，我們商店團隊的重大改進，當我們在商店挑選和包裝時更有效地交付產品，因此工作量不斷增加。團隊已經進行了多個季度的努力，我們看到了回報。

Understood. And then on the top line, I was just curious how you forecast the business. Obviously, the consumer has been a lot more volatile, a lot more event-driven. There seems like there was some pause in the back, half of July. As you plan the business, do you look at seasonal revenues building off the second quarter? Are you looking at stacks? Are you looking at trends versus 2019? Just some insight there in terms of how you forecast the business.

明白了。然後在最重要的方面，我只是好奇你如何預測業務。顯然，消費者變得更加不穩定，更加受事件驅動。七月的後半段似乎有些停頓。當您規劃業務時，您是否會考慮第二季的季節性收入？你在看堆疊嗎？您是否正在關注與 2019 年相比的趨勢？只是關於如何預測業務的一些見解。

Chris, I think you've covered many of the things we look at on an ongoing basis. And I think we factored all those different variables into our outlook for the period and the quarter.

克里斯，我認為你已經涵蓋了我們持續關注的許多事情。我認為我們將所有這些不同的變數納入我們對該期間和本季的展望中。

Simeon Gutman, Morgan Stanley.

西蒙古特曼，摩根士丹利。

I wanted to ask on a near-term question first. It sounds like comps due in July were relatively steady. And I don't know if you talked about product back-to-school, curious about how the consumer is behaving. And then connected to it, any expectation when the discretionary comps may inflect to positive?

我想先問一個近期的問題。聽起來 7 月到期的補償相對穩定。我不知道你是否談論了返校產品，對消費者的行為感到好奇。然後與之相關的是，當可自由支配的比較可能轉為正值時，有什麼預期嗎？

Simeon, as we sit here today, obviously, we're in the heart of back-to-school season, kind of the early chapters of back to college. And as Rick talked about, excited about the upcoming Halloween season. I think as we sit here today, we feel well prepared for those big seasonal moments, and we'll continue to make sure we lean in with a great physical and digital experience.

西蒙，當我們今天坐在這裡時，顯然，我們正處於返校季節的中心，有點像回到大學的早期章節。正如里克所說，他對即將到來的萬聖節季節感到興奮。我認為，當我們今天坐在這裡時，我們為這些重要的季節性時刻做好了充分準備，並且我們將繼續確保我們提供出色的實體和數位體驗。

Maybe one follow-up. Can I ask about price investments, the 5,000 items that have been lowered if, one, I assume you're pleased with some of the elasticity. Does it make you think about price positioning broadly? Are there opportunities to enhance the price position in other places?

也許會有一個後續行動。我可以問一下價格投資的問題嗎？這是否讓您廣泛思考價格定位？其他地方是否有機會提升價格地位？

I think we sit here today, we feel really good about the way the consumers reacted to the price investments we've made on those 5,000 frequently purchased items, but it really goes beyond those investments. If you're a Target Circle member, you're getting personalized offers every time you shop. If you're using a Target Circle card, you have the opportunity for that 5% discount. If you're taking advantage of the amazing value we provide through our own brands, that's just one more way to find value when you're shopping with Target.

我想我們今天坐在這裡，我們對消費者對我們對 5,000 種經常購買的商品進行的價格投資的反應感到非常滿意，但這確實超出了這些投資的範圍。如果您是 Target Circle 會員，您每次購物時都會獲得個人化優惠。如果您使用 Target Circle 卡，則有機會享受 5% 的折扣。如果您正在利用我們透過自有品牌提供的驚人價值，那麼這只是您在 Target 購物時發現價值的另一種方式。

So it's really a bundle of all those things that we do each and every day. to strengthen the relationship we have with the guests and provide them with the value they're looking for in this economic environment.

所以它實際上是我們每天所做的所有事情的集合。加強我們與客人的關係，並為他們提供他們在當前經濟環境下所尋求的價值。

Robbie Ohmes, Bank of America.

羅比·歐姆斯，美國銀行。

Outstanding quarter. I was hoping, maybe from Brian or others, you could talk about a couple of things, Target Circle penetration. It hasn't been going up is that expected to change? And also same-day delivery is still -- and I guess, Target Circle 360, as you call it, is still not growing as fast as Drive Up. Is that expected to change? And with changing these things potentially be a sales driver? And then is there any margin implication from that on the offset?

出色的季度。我希望，也許來自布萊恩或其他人，你可以談論一些事情，目標圈滲透。一直沒有上升，預計會改變嗎？而且當日送達仍然如此——我猜，Target Circle 360​​，正如你所說的，仍然沒有像 Drive Up 那樣增長得那麼快。預計這種情況會改變嗎？改變這些東西可能會成為銷售動力嗎？那麼偏移量是否有任何邊際影響？

Yes. Robby, you've got three or four questions there. I'm going to let Michael start. I'll pick it up from there.

是的。羅比，你有三、四個問題。我要讓麥可開始。我會從那裡取它。

Yes. Importantly, Robby, I'll kind of take your second point first. We're really pleased with our Circle 360 same-day delivery business, both it and drive-up grew in the low teens. And so we've seen some acceleration in that business on the heels of our relaunch of Circle, and so we're encouraged by that. And importantly, both of those services. We've talked about this before, but I think it warrants a reemphasis. The thing we see when people engage with Drive Up and with Circle 360 same-day delivery has been meaningfully more at Target in total, and they're in-store shopping actually increases after they become users of those services.

是的。重要的是，羅比，我先考慮你的第二點。我們對 Circle 360​​ 當日送達業務感到非常滿意，該業務和駕車送達業務的增長速度都在十幾歲左右。因此，在我們重新推出 Circle 之後，我們看到該業務出現了一些加速，因此我們對此感到鼓舞。重要的是，這兩項服務。我們之前已經討論過這一點，但我認為值得再次強調。我們看到，當人們參與 Drive Up 和 Circle 360​​ 當日送達服務時，Target 的整體意義更大，而且在成為這些服務的用戶後，他們的店內購物實際上有所增加。

And so continue to watch that relationship closely and growth of those services means growth in our share of wallet as jthe consumers that use those services. Speaking to circle more specifically, and I believe your question was focused on Circle card penetration. We see that opportunity over time with the relaunch of Circle to bring some investment back to growing our card business. One of the things that, that relaunch of Circle provides is it brings the core base Circle program, where guests can find incredible value through the personalized offers that they receive every day; with the Circle card program, where you can save an extra 5% if you're a Circle card member; with Circle 360 program, if you want the best of Target brought to your doorstep. And the integration of those programs, we think, provides a good umping point off over time to continue to reinvigorate the Circle card business, but that's going to be a journey of quarters and years.

因此，繼續密切關注這種關係，這些服務的成長意味著我們作為使用這些服務的消費者的錢包份額的成長。更具體地說，我相信你的問題集中在 Circle 卡滲透率。隨著時間的推移，隨著 Circle 的重新推出，我們看到了這個機會，可以將一些投資重新用於發展我們的卡片業務。 Circle 的重新推出帶來的好處之一是它帶來了核心基礎 Circle 計劃，客人可以透過每天收到的個人化優惠找到令人難以置信的價值；使用 Circle 卡計劃，如果您是 Circle 卡會員，您可以額外節省 5%；如果您希望將塔吉特 (Target) 的最佳服務帶到您家門口，請使用 Circle 360​​ 方案。我們認為，隨著時間的推移，這些計劃的整合為繼續重振 Circle 卡業務提供了一個很好的突破點，但這將是一個持續幾個季度甚至幾年的旅程。

Probably just to clarify a couple of points. From a base Circle program standpoint, we did note that while we start with a base of over 100 million members, during the July Circle Week, we saw 2 million new members join the brand. You talked about Drive Up and Target Circle 360. And Drive Up has been a very sticky service for us and just continues to grow. And during the second quarter, we saw a Drive Up grow over 14%, and a nice acceleration in Target Circle 360 same-day delivery of almost 14%.

可能只是為了澄清幾點。從基本 Circle 計畫的角度來看，我們確實注意到，雖然我們的會員基礎超過 1 億，但在 7 月的 Circle 週期間，我們看到有 200 萬新會員加入該品牌。您談到了 Drive Up 和 Target Circle 360​​。在第二季度，我們看到 Drive Up 成長了 14% 以上，Target Circle 360​​ 當天送達也實現了近 14% 的大幅成長。

So we see tremendous opportunity to continue to expand our Target Circle 360 program. But I'd really highlight Drive Up has been a stellar performance for us for many years now and just continues to grow. It was a $2 billion business for us in the second quarter. And I think, Michael, year-to-date is almost $4 billion. So it's been a really important service that we know our guests appreciates. But to Michael's point, we know they're a Drive Up user, they're going to spend time in a Target store, and we really like that combination.

因此，我們看到了繼續擴展 Target Circle 360​​ 計畫的巨大機會。但我真的要強調的是，Drive Up 多年來一直為我們帶來出色的表現，而且還在繼續成長。第二季我們的業務價值達 20 億美元。邁克爾，我認為今年迄今已接近 40 億美元。因此，我們知道我們的客人非常欣賞這項非常重要的服務。但就 Michael 而言，我們知道他們是 Drive Up 用戶，他們會在 Target 商店裡度過時光，我們真的很喜歡這個組合。

Ed Kelly, Wells Fargo.

艾德凱利，富國銀行。

I was hoping that you could provide a little bit more detail on discretionary comps, still negative here. What do you think is happening with market share at this point? And then maybe can you talk a bit about when you think that category is in total may inflect positively?

我希望你能提供更多關於可自由支配的補償的細節，但這裡仍然是負面的。您認為目前市佔率發生了什麼變化？然後，也許您可以談談您認為該類別總體上可能會產生積極影響的情況嗎？

I'm going to let Rick talk about some of the trends we're seeing in discretionary categories. He talked about the strength in apparel and some of those subsets within apparel, but we're also seeing green shoots in other areas. And we certainly think that over time in categories like home, led by Kitchen, as these purchase cycles become ones that need to be replaced, you're going to see some strength in those categories. But Rick, why don't you walk through some of the trends you're seeing in discretionary categories.

我將讓 Rick 談談我們在非必需品類別中看到的一些趨勢。他談到了服裝以及服裝中的一些子集的優勢，但我們也看到了其他領域的萌芽。我們當然認為，隨著時間的推移，在以廚房為首的家居等類別中，隨著這些購買週期成為需要更換的周期，您將看到這些類別中的一些優勢。但是瑞克，為什麼不回顧一下你在非必需品類別中看到的一些趨勢呢？

Sure. I'd be happy to give a little color commentary to the trends and what's driving those trends. And what we're seeing in discretionary is when we offer on-trend stylish product at a great price, the consumer responds. And we're seeing that in apparel. Apparel delivered a 3 comp. So real bright spots was All in Motion performance brand, where the team did a fantastic job on fabrication, colors, fit. $25 leggings with a fan favorite and really demonstrated the power of fashion combined with affordability.

當然。我很樂意對趨勢以及推動這些趨勢的因素進行一些色彩評論。我們在自由裁量中看到的是，當我們以優惠的價格提供流行時尚的產品時，消費者會做出反應。我們在服裝中看到了這一點。服裝提供了 3 個組件。所以真正的亮點是 All in Motion 高性能品牌，該品牌的團隊在製作、顏色和合身方面做得非常出色。 25 美元的緊身褲深受粉絲喜愛，真正展示了時尚與實惠相結合的力量。

Beyond that, Beauty is also a standout, where we see news really resonating with the guests. I mentioned in the comments, but it's really exciting to see the success of Blake Lively's new hair care line, Blake Brown. We just launched it a few weeks ago, and it is already the most successful hair care launch that we have ever had a Target. And I think this is another great example of the consumer is willing to buy when they find that right combination of on-trend, stylish product at an affordable price.

除此之外，《美容》也很出色，我們看到新聞確實引起了客人的共鳴。我在評論中提到過，但看到布萊克萊芙莉 (Blake Lively) 的新護髮系列布萊克布朗 (Blake Brown) 取得成功，真的很令人興奮。我們幾週前剛剛推出了它，這已經是我們有史以來推出的最成功的護髮產品了。我認為這是消費者在發現流行、時尚的產品以實惠的價格正確組合時願意購買的另一個很好的例子。

And even in other businesses, I use Home as an example, consumers want to freshen up their home. They want to freshen up their look, but they need to do it on the budget. So where we see growth is things like candles, decorative accessories, throw pillows. We're seeing growth there because we're offering an inexpensive way to freshen up the look of your home. So again, it goes back to delivering stylish on-trend product at a great price..

即使在其他行業，我以家居為例，消費者也希望讓他們的家煥然一新。他們想要煥然一新的外觀，但需要在預算範圍內做到這一點。因此，我們看到成長的是蠟燭、裝飾配件、抱枕等產品。我們看到了該領域的成長，因為我們提供了一種廉價的方式來讓您的家煥然一新。所以，它又回到以優惠的價格提供時尚的流行產品。

And I'll give you one of my favorite examples from earlier this year, and it's a collaboration we had with our partners at Authentic Brands, leveraging the Prince brand. And while that brand has been known for tenants throughout the years, we brought the Prince category and the Prince brand into pickleball, with great new apparel, accessories and rackets. And we've created a destination and target for all things pickleball. We know families across the country are enjoying that sport. It fits very nicely with our all-family position.

我將向您展示今年早些時候我最喜歡的例子之一，這是我們與 Authentic Brands 的合作夥伴利用 Prince 品牌進行的合作。雖然該品牌多年來一直為租戶所熟知，但我們將 Prince 類別和 Prince 品牌帶入匹克球，推出了精美的新服裝、配件和球拍。我們為所有與匹克球有關的事物創建了一個目的地和目標。我們知道全國各地的家庭都在享受這項運動。它非常適合我們全家人的立場。

And it's just one more example of when Target is Target. When we bring great design that's on trend at a great value, we see the guests reacting really positively. So you'll see Rick and his team continue to make sure that we're bringing that combination of design and on trend, great value, great newness into those categories to continue to spark greater demand.

這只是 Target 就是 Target 的另一個例子。當我們以超值的價格帶來流行的優秀設計時，我們會看到客人的反應非常積極。因此，您將看到 Rick 和他的團隊繼續確保我們將設計與潮流、超值、超新的組合引入這些類別，以繼續激發更大的需求。

Operator, we have time for one final question today.

接線員，今天我們有時間回答最後一個問題。

Corey Tarlowe, Jefferies.

科里·塔洛，杰弗里斯。

I was wondering if you talk a little bit about your expectations for longer-term mix of food & beverage over time. That's a category where you've continued to grow over the last several years, specifically since the pandemic, especially as you've widened the assortment and the number of items that you've carried in that category. So I would be really curious to hear your thoughts around the long-term trajectory for that business over time.

我想知道您是否能談談您對長期食品和飲料組合的期望。這是一個在過去幾年中持續增長的類別，特別是自大流行以來，特別是當您擴大了該類別中的商品種類和數量時。因此，我真的很想聽聽您對該業務長期發展軌蹟的看法。

Corey, I'm happy to start, and I'm going to turn it over to Rick who, obviously, was leading our food & beverage business. We think we have significant opportunity for growth in that space, led by the unique combination, again, of great national brand partnerships and some really strong owned brands that are connected with the consumer. So we think we're still in the early days of building out our Food business. But Rick, you've got so much experience in the space, why don't you share some of your thoughts?

科里，我很高興開始，我將把它交給里克，顯然，他領導著我們的食品和飲料業務。我們認為，在偉大的國家品牌合作夥伴關係和一些與消費者相關的真正強大的自有品牌的獨特組合的引領下，我們在該領域擁有巨大的成長機會。因此，我們認為我們仍處於建立食品業務的早期階段。但是 Rick，你在這個領域擁有如此豐富的經驗，為什麼不分享一些你的想法呢？

I'd be happy to offer a little color commentary on the food & beverage business. And as Brian said, we believe there is continued runway for the business to deliver growth, driven by a few things. The first is continued emphasis on affordability. As we talked about, the 5,000 price reductions across everyday items was incredibly well received. We'll continue to lean into value on our food & beverage, not just through everyday pricing, but also through personalized promotions on Circle, as well as with our own brand portfolio, which offers incredible value.

我很樂意對食品和飲料行業進行一些彩色評論。正如布萊恩所說，我們相信，在一些因素的推動下，該業務仍有持續成長的空間。首先是繼續強調負擔能力。正如我們所討論的，日常用品降價 5,000 元非常受歡迎。我們將繼續注重食品和飲料的價值，不僅透過日常定價，還透過 Circle 上的個人化促銷以及我們自己的品牌組合，這提供了令人難以置信的價值。

The second thing that will continue to lean in to drive growth for food & beverage will be newness. Just going into the fall season, right now, we have a ton of new products coming, over 150 new own brand products, over 500 new national brand products. Leveraging those flavors that everybody loves for the fall. I'm talking about Pumpkin Spice, Apple, Pecan Pie, that will continue to fuel growth.

第二個將繼續推動食品和飲料成長的因素是新鮮感。才剛進入秋季，我們就有大量新品上市，自有品牌新產品150多個，民族品牌新產品500多個。利用每個人都喜歡的秋季口味。我說的是南瓜香料、蘋果、山核桃派，它們將繼續推動成長。

And then the last opportunity to continue to drive growth in our food & beverage business is around ease and convenience. Consumers have a lot on their plate, and they're looking for simple solutions, and we're very excited about the continued growth that we're seeing on both Drive Up as well as same-day delivery, which is achieving double-digit growth in Q2, and we continue to see runway on that going forward.

繼續推動我們食品和飲料業務成長的最後一個機會是輕鬆和便利。消費者有很多事情要做，他們正在尋找簡單的解決方案，我們對 Drive Up 和當日送達的持續增長感到非常興奮，目前已實現兩位數的增長第二季度的增長，我們繼續看到未來的發展。

Operator, that concludes our second quarter conference call. I appreciate everyone joining us, and we look forward to talking to you again soon.

接線員，我們第二季的電話會議到此結束。我感謝大家加入我們，我們期待很快能再次與您交談。