目標百貨 (TGT) 2022 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)

女士們，先生們，謝謝你們的支持。歡迎參加目標公司第一季度收益發布電話會議。 （操作員說明）

As a reminder, this conference is being recorded, Wednesday, May 18, 2022. I would now like to turn the conference over to Mr. John Hulbert, Vice President, Investor Relations. Please go ahead, sir.

提醒一下，本次會議將於 2022 年 5 月 18 日星期三錄製。我現在想將會議轉交給投資者關係副總裁 John Hulbert 先生。請繼續，先生。

Good morning, everyone, and thank you for joining us on our first quarter 2022 earnings conference call.

大家早上好，感謝您參加我們的 2022 年第一季度收益電話會議。

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

今天與我聯繫的是董事長兼首席執行官布萊恩康奈爾；克里斯蒂娜·亨寧頓，首席增長官；約翰·穆里根，首席運營官；和首席財務官 Michael Fiddelke。稍後，Brian、Christina、John 和 Michael 將就我們第一季度的業績以及我們對第二季度及以後的展望和優先事項發表他們的看法。發言結束後，我們將打開電話線進行問答環節。

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，投資者和其他通過網絡直播收聽我們評論的人參加了這次電話會議。通話結束後，邁克爾和我將可以回答您的後續問題。

And finally, as a reminder, any forward-looking statements that we make this morning are subject to risks and uncertainties, the most important of which are described 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存在風險和不確定性，其中最重要的在我們最近提交的 10-K 中有所描述。同樣在這些評論中，我們提到了非公認會計準則財務指標，包括調整後的每股收益。所有非 GAAP 數字與最直接可比的 GAAP 數字的對賬都包含在今天上午的新聞稿中，該新聞稿發佈在我們的投資者關係網站上。

With that, I'll turn it over to Brian for his thoughts on the quarter and his perspective on our outlook. Brian?

有了這個，我將把它交給布賴恩，了解他對本季度的看法以及他對我們前景的看法。布賴恩？

Thanks, John, and good morning, everyone. Our first quarter results demonstrate the underlying strength of the relationship we've built with our guests at a time when our team is working through multiple cost pressures affecting our business. As expected, our business continued to grow in the first quarter, on top of huge gains a year ago, underlying the resilience of both the consumer and the ability of our team to serve them. However, due to a host of factors, this growth was challenged by unusually high costs, resulting in profitability well below what we expected to be and where we expect to operate over time.

謝謝，約翰，大家早上好。我們的第一季度業績表明，在我們的團隊正在應對影響我們業務的多種成本壓力之際，我們與客人建立的關係具有潛在的優勢。正如預期的那樣，我們的業務在第一季度繼續增長，一年前取得了巨大收益，這是消費者的彈性和我們團隊為他們服務的能力的基礎。然而，由於許多因素，這種增長受到異常高成本的挑戰，導致盈利能力遠低於我們預期的水平，也低於我們預期的長期運營水平。

First quarter comparable sales grew by 3.3%, on top of 23% growth a year ago. This marked our 20th consecutive quarter of comparable sales increases. 11 of those quarters were before the pandemic, followed by the rapid acceleration we saw in 2020. We're also encouraged that traffic continues to fuel our growth, increasing nearly 4% in the quarter, on top of 17% growth a year ago.

第一季度可比銷售額在一年前增長 23% 的基礎上增長了 3.3%。這標誌著我們連續第 20 個季度的可比銷售額增長。其中 11 個季度是在大流行之前，隨後是我們在 2020 年看到的快速加速。我們也感到鼓舞的是，流量繼續推動我們的增長，在一年前增長 17% 的基礎上，本季度增長了近 4%。

Our first quarter gross margin rate was well below our expectations, reflecting a combination of factors that prove to be very different than expected, driven by a rapidly shifting macro backdrop and changing consumer behavior. More specifically, we saw much higher-than-expected rate and transportation costs and a more dramatic change in our sales mix than we anticipated. This resulted in excess inventory, much of it in bulky categories, which put additional strain on an already stretched supply chain. Christina, John and Michael will share more details shortly.

我們第一季度的毛利率遠低於我們的預期，這反映了在宏觀背景迅速變化和消費者行為變化的推動下，事實證明與預期截然不同的多種因素。更具體地說，我們看到遠高於預期的費率和運輸成本，以及我們的銷售組合比我們預期的更劇烈的變化。這導致庫存過剩，其中大部分屬於大件類別，這給已經捉襟見肘的供應鏈帶來了額外的壓力。克里斯蒂娜、約翰和邁克爾將很快分享更多細節。

And while we have a lot of work ahead of us to restore profitability to the level where we expect to operate over time, I want to thank the team for maintaining their laser focus on the guest experience. We've spent years growing Target's relationship with our guests, which is fueling the traffic and sales growth we're seeing today. In sustaining that guest focus, we're confident we'll see deeper loyalty and profitable sales growth in the years ahead.

雖然我們還有很多工作要做，才能將盈利能力恢復到我們期望隨著時間的推移運營的水平，但我要感謝團隊保持對客戶體驗的高度關注。我們多年來一直在發展 Target 與客人的關係，這推動了我們今天看到的流量和銷售增長。在保持以客戶為中心的同時，我們相信我們將在未來幾年看到更深的忠誠度和可盈利的銷售增長。

On our sales channels, first quarter comps were balanced between store and digital as each increased a little more than 3%. Within our digital channel, growth continues to be led by our same-day services and Drive-Up in particular which delivered growth in the mid-teens this year on top of more than 100% growth a year ago.

在我們的銷售渠道上，第一季度的銷售額在實體店和數字渠道之間保持平衡，每個渠道的增幅都略高於 3%。在我們的數字渠道中，增長繼續由我們的當日服務和 Drive-Up 引領，尤其是在一年前增長超過 100% 的基礎上，今年在青少年中期實現了增長。

Since Q1 of 2019, prior to the pandemic, first quarter sales have grown more than 40% or just over $7.4 billion. Broken down by channel, store sales accounted for about $4.1 billion of this increase, while digital sales grew another $3.3 billion, having expanded by more than 250% over that time.

自大流行之前的 2019 年第一季度以來，第一季度的銷售額增長了 40% 以上，即略高於 74 億美元。按渠道細分，實體店銷售額約佔這一增長的 41 億美元，而數字銷售額又增長了 33 億美元，在此期間增長了 250% 以上。

From a category perspective, we continue to benefit from our balanced multi-category portfolio, which allows us to flexibly serve our guests as their wants and needs change. More specifically, in the first quarter, we continue to see strong growth and market share gains in food and beverage and essential categories. We also benefited from double-digit comp growth in Beauty, reflecting our ongoing work to enhance presentation, assortment and service, including our new and expanding partnership with Ulta Beauty. The result of this partnership have exceeded our initial expectations, driving higher productivity and sales in both Beauty [area], and adjacent categories in the store, where we've added an Ulta Beauty experience.

從品類的角度來看，我們繼續受益於我們平衡的多品類產品組合，這使我們能夠在客人的需求發生變化時靈活地為其提供服務。更具體地說，在第一季度，我們繼續看到食品和飲料以及必需品類別的強勁增長和市場份額增長。我們還受益於美妝業務的兩位數增長，這反映了我們在加強展示、分類和服務方面的持續努力，包括我們與 Ulta Beauty 新的和不斷擴大的合作夥伴關係。這種合作的結果超出了我們最初的預期，推動了美容 [區域] 和商店相鄰類別的更高生產力和銷售額，我們在其中添加了 Ulta Beauty 體驗。

In our other 3 core merchandise categories: Apparel, Home and Hardlines, we saw a rapid slowdown in the year-over-year sales trend beginning of March, when we began to annualize the impact of last year's stimulus payments. While we anticipated a post-stimulus slowdown in these categories and we expect the consumer to continue refocusing their spending away from goods and into services, we didn't anticipate the magnitude of that shift.

在我們的其他 3 個核心商品類別中：服裝、家居和硬線，我們看到 3 月初的同比銷售趨勢迅速放緩，當時我們開始對去年刺激支付的影響進行年度化計算。雖然我們預計這些類別在刺激後會放緩，並且我們預計消費者將繼續將他們的支出從商品轉向服務，但我們沒有預料到這種轉變的幅度。

As I mentioned earlier, this led us to carry too much inventory, particularly in bulky categories, including kitchen appliances, TVs and outdoor furniture. And with very little slack capacity after 2 years of unprecedented growth, we faced elevated cost to store and had begun rightsizing our inventory position.

正如我之前提到的，這導致我們攜帶過多的庫存，特別是在大件類別中，包括廚房用具、電視和戶外家具。在經歷了 2 年的空前增長後，由於產能幾乎沒有閒置，我們面臨著存儲成本的上升，並開始調整我們的庫存頭寸。

Nevertheless, we're still seeing healthy overall spending by our guests, even as their spending continues to evolve. Notably, we continue to see meaningful spending surges around holidays, including Easter in April and Mother's Day a couple of weeks ago.

儘管如此，我們仍然看到客人的整體消費狀況良好，即使他們的消費在不斷發展。值得注意的是，我們繼續看到假期前後有意義的支出激增，包括四月的複活節和幾週前的母親節。

Also notable, in comparing this year's weekly sales of pre-pandemic levels at the beginning of 2019, we're actually seeing stronger 3-year growth trends in recent weeks compared with the beginning of the first quarter, even in categories where we saw a rapid slowdown on a 1-year basis. These encouraging longer-term growth trends demonstrate the continued resilience of the American consumer and the trust they place in Target even if they face multiple challenges.

同樣值得注意的是，在比較今年 2019 年初大流行前水平的每週銷售額時，我們實際上看到與第一季度初相比，最近幾週的 3 年增長趨勢更為強勁，即使在我們看到在 1 年的基礎上快速放緩。這些令人鼓舞的長期增長趨勢證明了美國消費者的持續韌性以及他們對 Target 的信任，即使他們面臨多重挑戰。

Not surprising, when we talk to our guests, they often express their concerns about a host of rapidly changing conditions, ranging from geopolitics to the high and persistent inflation they've been experiencing, particularly in food and energy. At the same time, guests are focused on getting back to many of the habits and behaviors they suspended during the heart of the pandemic, including travel, out-of-home activities and social gatherings. And importantly, even as the mix of what they're buying continues to evolve, their spending capacity continues to benefit from elevated saving rates, high employment and healthy wage growth.

毫不奇怪，當我們與客人交談時，他們經常表達他們對一系列快速變化的條件的擔憂，從地緣政治到他們一直在經歷的高且持續的通貨膨脹，尤其是在食品和能源方面。與此同時，客人專注於恢復他們在大流行中心期間暫停的許多習慣和行為，包括旅行、戶外活動和社交聚會。重要的是，即使他們購買的商品組合不斷變化，他們的消費能力仍將繼續受益於儲蓄率上升、就業率高和工資健康增長。

So as we continually adapt our offering to best serve our guests in a rapidly changing environment, today, we're focused more than ever on providing value across our multi-category assortment, presenting options that are affordable and accessible to a broad and diverse base of guests across a wide range of household incomes. And even as we face multiple cost pressures, our team is working tirelessly to maintain prices wherever possible.

因此，隨著我們不斷調整我們的產品以在瞬息萬變的環境中為我們的客人提供最好的服務，今天，我們比以往任何時候都更加專注於為我們的多類別產品提供價值，為廣泛而多樣化的基礎提供價格合理且易於使用的選項來自不同家庭收入的客人。即使我們面臨多重成本壓力，我們的團隊仍在不知疲倦地工作，以盡可能維持價格。

But of course, while it's always the last lever we pull, external conditions led us to raise prices across a broad set of items in multiple categories. But as you've clearly seen in recent quarters, overall costs have been rising much faster than retail prices, resulting in year-over-year declines in our gross margin rates. While we're not happy about the near-term pressure this causes on the profit line, we strongly believe these decisions will benefit our business over time.

但是，當然，雖然它始終是我們拉動的最後一個槓桿，但外部條件導致我們提高了多個類別的廣泛項目的價格。但正如您在最近幾個季度清楚地看到的那樣，總體成本的增長速度遠快於零售價格，導致我們的毛利率同比下降。雖然我們對這對利潤線造成的近期壓力並不滿意，但我們堅信這些決定將隨著時間的推移使我們的業務受益。

And as we currently monitor our prices and quality stack up versus the competition, our guests are telling us they appreciate the value and experience we're providing. More importantly, our guests are showing appreciation, with more footsteps in our stores and more clicks on our site, resulting in continued traffic and sales growth on top of record growth a year ago.

由於我們目前監控我們的價格和質量與競爭對手的對比，我們的客人告訴我們，他們欣賞我們提供的價值和體驗。更重要的是，我們的客人表示讚賞，更多的腳步進入我們的商店，更多的點擊我們的網站，導致客流量和銷售額在一年前的創紀錄增長之上持續增長。

As we look ahead, we'll maintain this focus on value, helping them to save time and money in a rapidly evolving environment. For those who are focused on driving pure miles in response to record high gas prices, our broadened unit merchandise assortment, combined with our low prices, offers a smart way to save time and miles by consolidating shopping trips.

展望未來，我們將保持對價值的關注，幫助他們在快速發展的環境中節省時間和金錢。對於那些專注於駕駛純里程以應對創紀錄的高油價的人來說，我們擴大的單位商品種類，結合我們的低價，提供了一種通過整合購物旅行來節省時間和里程的明智方式。

Of course, for guests who are looking for money-saving options when they're shopping for their families, our $30 billion portfolio of home brands offer outstanding quality and savings across every one of our merchandising categories. And because saving time is valuable in any environment, we're continuing to invest in expanding the scope of our reliable and convenient same-day services, including our Drive-Up and in-store pickup services, which we offer our guests at no charge.

當然，對於那些在為家人購物時尋找省錢選擇的客人來說，我們價值 300 億美元的家居品牌組合在我們的每一個商品類別中都提供卓越的品質和節省。由於節省時間在任何環境中都很寶貴，因此我們將繼續投資擴大我們可靠和方便的當日服務範圍，包括我們免費為客人提供的上車服務和店內取貨服務.

Just as we designed our merchandise portfolio to flexibly serve our guests, our operations have managed through extreme volatility over the last few years. Rapid growth amounting to tens of billions of dollars, combined with unprecedented shift in demand across categories, channels and services, has created a host of challenges for our team, which they've handled with incredible energy and focus. And while we entered this year hopeful that volatility will begin to moderate, we've experienced the extreme opposite in Q1, and we don't see current conditions improving right away.

正如我們設計我們的商品組合以靈活地為我們的客人提供服務一樣，我們的運營在過去幾年中經歷了極端的波動。數百億美元的快速增長，以及跨類別、渠道和服務的需求前所未有的轉變，為我們的團隊帶來了許多挑戰，他們以難以置信的精力和專注力應對了這些挑戰。雖然我們進入今年希望波動性將開始緩和，但我們在第一季度經歷了極端相反的情況，我們認為目前的情況不會立即改善。

In the face of this volatility, our team continues to focus on the guest experience, working to ensure that anything our team is handling behind the scenes doesn't what our guests see and feel. So as we look ahead, it is clear that many of these pressures will persist in future quarters, but that hasn't affected our long-term plans and expectations, including our confidence in the ability of our business to grow mid-single digits and maintain an operating margin of 8% or higher over time.

面對這種波動，我們的團隊繼續專注於客戶體驗，努力確保我們團隊在幕後處理的任何事情都不是我們的客人所看到和感受到的。因此，展望未來，很明顯，這些壓力中的許多將在未來幾個季度持續存在，但這並沒有影響我們的長期計劃和預期，包括我們對業務增長中個位數的能力的信心和隨著時間的推移，保持 8% 或更高的營業利潤率。

In the meantime, even as we navigate to restore profitability from the impact of these short-term challenges, we're continuing to invest in project design to deliver continued profitable long-term growth. Our business model and team have proven their ability to successfully navigate through extreme volatility. And we're confident our business will emerge even stronger from these challenges we're facing today. Just as our investments in early 2017 were followed by profitable growth in later years, we're confident the decisions we're making today, combined with our investments in future growth, will pay off handsomely over time.

與此同時，即使我們從這些短期挑戰的影響中恢復盈利能力，我們仍在繼續投資於項目設計，以實現持續盈利的長期增長。我們的商業模式和團隊已經證明他們有能力成功應對極端波動。我們相信，我們的業務將從我們今天面臨的這些挑戰中變得更加強大。正如我們在 2017 年初的投資之後幾年實現了盈利增長一樣，我們相信我們今天做出的決定，再加上我們對未來增長的投資，隨著時間的推移將獲得豐厚的回報。

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

有了這個，我會把它交給克里斯蒂娜。

Thanks, Brian, and good morning, everyone.

謝謝，布賴恩，大家早上好。

Just a few months ago, at our Financial Community Meeting, my presentation outlined our strategic vision as a company. While I covered many facets of our strategy that day, where I started then is where I want to start again today, with our guests. We frequently get questions about how our guests are feeling given the current economic environment, how their shopping habits are evolving and what's top of mind for them.

就在幾個月前，在我們的金融社區會議上，我的演講概述了我們作為一家公司的戰略願景。雖然那天我涵蓋了我們戰略的許多方面，但我從那時開始的地方就是我今天想與我們的客人重新開始的地方。在當前的經濟環境下，我們經常會收到有關客人感覺如何、他們的購物習慣如何演變以及他們最關心的問題的問題。

Our guest base encompasses every slice of the American population given that we serve nearly 20 million guests on average each and every week. And the breadth of their individual decisions as they navigate a rapidly changing macro environment is just as broad, making the answers to those questions that much more complex.

鑑於我們平均每週為近 2000 萬客人提供服務，我們的客人群涵蓋了美國人口的每一部分。他們在快速變化的宏觀環境中做出的個人決定的廣度也同樣廣泛，這使得這些問題的答案變得更加複雜。

A guest might be telling us that they're worried about inflation and rising gas prices. But they're also looking to splurge on new shoes or some accent pillows for their home. Another guest remains worried about COVID, but they're still planning to resume travel and looking forward to summer outings like Little League games and barbecues with friends. Many guests are sharing their uncertainty of the overall state of the economy, but are feeling more positive about their personal finances. With so much on their minds and a wide array of wants and needs, it has never been more important for Target to be flexible and provide ease, safety, inspiration and solutions for all of our guests.

一位客人可能會告訴我們，他們擔心通貨膨脹和汽油價格上漲。但他們也希望為自己的家揮霍購買新鞋或一些口音枕頭。另一位客人仍然擔心 COVID，但他們仍計劃恢復旅行，並期待夏季郊遊，如小聯盟比賽和與朋友一起燒烤。許多客人分享了他們對整體經濟狀況的不確定性，但對個人財務狀況感到更加樂觀。考慮到他們的想法和各種各樣的願望和需求，Target 變得靈活並為我們所有的客人提供輕鬆、安全、靈感和解決方案從未像現在這樣重要。

In the first quarter, we invested in delivering a great guest experience to build and maintain the trust and love for the Target brand. And those decisions came with substantial costs. I'll share more on this shortly. Our first quarter results reinforce the power of our multi-category portfolio, which allows us to lean into those ever-changing wants and needs.

在第一季度，我們投資於提供出色的賓客體驗，以建立和維持對 Target 品牌的信任和喜愛。這些決定伴隨著巨大的成本。我將很快分享更多關於此的內容。我們的第一季度業績加強了我們多類別產品組合的力量，這使我們能夠了解那些不斷變化的需求。

More and more, we are seeing our guests increasing mobility and love of newness play out in their Target purchases as baskets shift more toward experiences and going-out categories. This includes notable strength in fashion forward apparel, prepaid cards, toys and travel. While apparel basics moderated in the quarter, trend-based apparel accelerated meaningfully as increasingly, people are returning to the office or dining out with friends. We're also seeing robust growth in Beauty, driven by particular strength in going-out categories like sunscreen, color cosmetics and fragrance. Luggage grew more than 50% as the world continues to reopen, and we reunite with the places and people we have missed visiting.

隨著購物籃更多地轉向體驗和外出類別，我們越來越多地看到我們的客人在他們的 Target 購買中增加了流動性和對新鮮事物的熱愛。這包括在時尚前衛服裝、預付卡、玩具和旅行方面的顯著優勢。儘管本季度服裝基本款有所緩和，但隨著人們越來越多地返回辦公室或與朋友外出就餐，基於趨勢的服裝顯著加速。在防曬霜、彩妝和香水等走出去類別的特殊實力的推動下，我們還看到了美妝領域的強勁增長。隨著世界繼續重新開放，行李增長了 50% 以上，我們與錯過的地方和人們重聚。

And our owned brand portfolio continues to grow faster than total sales, as it has quarter-after-quarter for years now. We continuously benefit from the growing guest affinity for our owned brands, which are designed to drive trips to Target, not simply to provide another option when guests are already in a store. Our guests appreciate the value, quality and great design they have come to expect and love from Target owned brands, even as they continue to appreciate our national brand options and partnerships as well.

而且我們自有品牌組合的增長速度繼續超過總銷售額，因為它多年來一直在逐季增長。我們不斷受益於客戶對我們自有品牌日益增長的親和力，這些品牌旨在推動前往 Target 的旅行，而不僅僅是在客人已經在商店時提供另一種選擇。我們的客人欣賞他們對 Target 自有品牌的期望和喜愛的價值、質量和出色的設計，儘管他們也繼續欣賞我們的國家品牌選擇和合作夥伴關係。

As Brian outlined, our team delivered just over 3% in comparable sales growth in the first quarter, in line with expectations, reflecting strong traffic and unit share gains. First quarter growth was strongest in frequently purchased categories, including Food & Beverage, Beauty and Essentials.

正如布賴恩概述的那樣，我們的團隊在第一季度實現了略高於 3% 的可比銷售額增長，符合預期，反映了強勁的客流量和單位份額增長。第一季度在經常購買的類別中增長最為強勁，包括食品和飲料、美容和必需品。

Food & Beverage, which delivered low double-digit growth this quarter was strong across the entire assortment. Over the last 3 years, first quarter Food & Beverage sales have increased by nearly $1.8 billion, accounting for nearly 1/4 of our total sales growth over that time. Market share gains in this category are being driven by unit share growth, most notably in our owned brand offerings, as more of our guests turn to Good & Gather and Favorite Day for their meal solutions.

本季度實現兩位數低增長的食品和飲料在整個品類中表現強勁。在過去 3 年中，第一季度食品和飲料銷售額增長了近 18 億美元，占我們同期總銷售額增長的近 1/4。這一類別的市場份額增長受到單位份額增長的推動，尤其是在我們的自有品牌產品中，因為我們越來越多的客人轉向 Good & Gather 和 Favorite Day 尋求他們的膳食解決方案。

Beauty has been one of our fastest-growing categories for years now and grew again in the low double digits in Q1 as guests spend more time outside of the home and want to look and feel their best. Since the first quarter of 2019, Beauty sales have expanded by more than 45%, the mass majority of which occurred before our rollout of the Ulta Beauty at Target experience, evidence that there is still plenty of room for growth in this category.

多年來，美容一直是我們增長最快的類別之一，並且隨著客人在戶外花費更多時間並希望看起來和感覺最好，在第一季度再次以兩位數的低位增長。自 2019 年第一季度以來，美妝銷售額增長了 45% 以上，其中大部分發生在我們推出 Ulta Beauty at Target 體驗之前，這表明該類別仍有很大的增長空間。

Essentials grew in the high single digits in Q1, having added well over $1 billion in first quarter sales over the last 3 years. Notably, nearly $0.5 billion of that growth happened after 2020, when we saw explosive demand for categories like household paper, over-the-counter and cleaning supplies.

Essentials 在第一季度以高個位數增長，在過去 3 年的第一季度銷售額增加了超過 10 億美元。值得注意的是，其中近 5 億美元的增長發生在 2020 年之後，當時我們看到對生活用紙、非處方藥和清潔用品等類別的需求呈爆炸式增長。

Across our other core categories: Apparel, Home and Hardlines, we saw small declines in comparable sales this quarter. In Apparel, despite unfavorable weather across most of the country, comp sales remained nearly flat to last year, having grown more than 60% in the first quarter a year ago and nearly $1 billion since the first quarter of 2019.

在我們的其他核心類別中：服裝、家居和耐用品，我們看到本季度可比銷售額小幅下降。在服裝方面，儘管全國大部分地區天氣不利，但服裝銷售額與去年幾乎持平，一年前第一季度增長超過 60%，自 2019 年第一季度以來增長近 10 億美元。

In Home, even after a small pullback in Q1 comps, sales remain more than 40% higher than the first quarter of 2019, equating to more than $1.2 billion in growth over that time. Our seasonal categories continue to excel as our guests turn to Target for all of their holiday and celebratory solutions, leading to all-time records in the recent Valentine's Day and Easter seasons.

在國內，即使第一季度業績小幅回落，銷售額仍比 2019 年第一季度高出 40% 以上，相當於同期增長超過 12 億美元。隨著我們的客人轉向 Target 提供所有的假期和慶祝解決方案，我們的季節性類別繼續表現出色，在最近的情人節和復活節季節創造了歷史記錄。

And notably, guests are finding new ways to enjoy and celebrate the spaces they've invested in over the past few years. Having already renovated their homes with purchases in categories like furniture and small appliances, guests are now refreshing their homes with smaller touches, driving demand in categories like decor, candles and seasonal assortments; further evidence, not just of the strength in our multi-category portfolio, but the breadth of what we offer within categories as well.

值得注意的是，客人正在尋找新的方式來享受和慶祝他們在過去幾年中投資的空間。客人已經通過購買家具和小家電等類別來翻新他們的房屋，現在他們正在用較小的觸感來更新他們的房屋，從而推動對裝飾、蠟燭和季節性分類等類別的需求；進一步的證據，不僅僅是我們多品類產品組合的實力，還有我們在品類中提供的產品的廣度。

Hardlines saw a slight pullback in Q1, but has grown more than $1.3 billion since the first quarter of 2019. Within Hardlines, guests have been refocusing their spending away from electronics like TVs and into experiences for both kids and adults, which led to strength in our toys, travel and prepaid card categories.

Hardlines 在第一季度略有回落，但自 2019 年第一季度以來已增長超過 13 億美元。在 Hardlines 中，客人已將支出重心從電視等電子產品轉向兒童和成人的體驗，這導致了我們的玩具、旅行和預付卡類別。

As Brian mentioned, first quarter gross margin performance was well below our expectations. This was driven by a number of factors, the most impactful of which was softer than expected sales in several categories, resulting in too much inventory in those areas. As we developed our plans for the quarter, our task was to anticipate how spending would change under circumstances no one had ever seen before given that we were about to compare over 2 years of historically high federal stimulus payments. As such, we relied on numerous forecasts and estimate, both internal and external, to help determine our view for the quarter. Despite this careful approach, the mix of actual demand materialized differently than we had anticipated.

正如布賴恩所說，第一季度的毛利率表現遠低於我們的預期。這是由許多因素驅動的，其中影響最大的是幾個類別的銷售低於預期，導致這些領域的庫存過多。當我們制定本季度的計劃時，我們的任務是預測在以前從未見過的情況下支出將如何變化，因為我們將要比較超過 2 年曆史上最高的聯邦刺激支出。因此，我們依靠內部和外部的大量預測和估計來幫助確定我們對本季度的看法。儘管採取了這種謹慎的方法，但實際需求的組合與我們的預期不同。

In addition, as supply grew and demand shifted away from bigger, bulkier products like furniture, TVs and more, we needed to make difficult trade-off decisions. We could keep this product knowing it would sell over time or we can make room for fast-growing categories like Food & Beverage, Beauty, and personal care and Household Essentials. To preserve the quality of on-shelf presentations and support the guest experience, we chose the latter, leading to incremental markdowns that reduced our gross margin. While these were difficult decisions, we believe they'll pay off in the long term, given that building long-term loyalty remains our top priority.

此外，隨著供應的增長和需求從更大、更笨重的產品（如家具、電視等）轉移，我們需要做出艱難的權衡決定。我們可以讓這個產品知道它會隨著時間的推移而銷售，或者我們可以為食品和飲料、美容、個人護理和家居必需品等快速增長的類別騰出空間。為了保持貨架上展示的質量並支持客戶體驗，我們選擇了後者，導致逐步降價，從而降低了我們的毛利率。雖然這些都是艱難的決定，但我們相信他們會在長期內獲得回報，因為建立長期忠誠度仍然是我們的首要任務。

As we look ahead, we'll continue to do all we can to support our guests, providing them great value, an unbeatable selection of necessities and affordable luxuries and a shopping experience that sparks a smile and provides a temporary escape. The second quarter offers many opportunities for our team to help all families discover the joy of everyday life. And this summer's assortment features some of our most inclusive offerings yet.

展望未來，我們將繼續竭盡全力支持我們的客人，為他們提供物超所值、無與倫比的必需品選擇和負擔得起的奢侈品，以及讓他們微笑並提供暫時逃離的購物體驗。第二季度為我們的團隊提供了許多幫助所有家庭發現日常生活樂趣的機會。今年夏天的產品系列包含了我們迄今為止最具包容性的一些產品。

First, in May, we are celebrating Asian American and Pacific Islander Heritage Month by highlighting Asian founders and creators, amplifying their voices with stories of how their unique cultures influence the creation of their products and businesses. With June right around the corner, we're excited to honor our LGBTQ+ community as we celebrate Pride Month. This uplifting and always relevant assortment offers bold product, inclusive marketing and everyday affirmation that authentically represents and celebrates community and culture. And of course, we just finished celebrating mom in May and have plenty of options to honor dads in June, along with many other opportunities to celebrate the joys of summer.

首先，在五月，我們將通過突出亞洲創始人和創造者來慶祝亞裔美國人和太平洋島民傳統月，通過講述他們獨特的文化如何影響他們的產品和業務創造的故事來擴大他們的聲音。六月即將來臨，我們很高興在慶祝驕傲月之際向我們的 LGBTQ+ 社區致敬。這種令人振奮且始終相關的分類提供了大膽的產品、包容性的營銷和日常肯定，真正代表和慶祝社區和文化。當然，我們剛剛在 5 月完成了對媽媽的慶祝活動，並在 6 月有很多選擇來紀念爸爸，還有許多其他機會來慶祝夏天的歡樂。

And speaking of joy, we're ecstatic about our recently announced expanded partnership with actress, author and social media phenomenon, Tabitha Brown, a beacon of positivity, inspiration and joy. Having collaborated with her on social media for years, we're excited to grow our partnership with Tabitha and feature 4 limited time-only collections set to launch over the next year, starting with an exclusive apparel and accessories line of more than 75 items this June that are sure to lift both style and spirit.

說到歡樂，我們對我們最近宣布與女演員、作家和社交媒體現象塔比莎布朗擴大合作夥伴關係感到欣喜若狂，塔比莎布朗是積極、靈感和歡樂的燈塔。在社交媒體上與她合作多年後，我們很高興能與 Tabitha 發展合作夥伴關係，並推出 4 個限時系列，將於明年推出，首先是超過 75 件商品的獨家服裝和配飾系列六月肯定會提升風格和精神。

Before I pass things over to John, I want to thank our teams across stores, distribution centers and headquarters locations all around the globe for their unwavering leadership and service to our guests and to each other. Without them, we would not be able to continue growing our business and serving our guests each and every day. Despite the volatility and rapid shifts in consumer demand, the macro environment and the global supply chain, our business remains strong, and we're confident in both our long-term strategy and our team's ability to navigate through this dynamic period.

在我把事情交給約翰之前，我要感謝我們遍布全球的商店、配送中心和總部的團隊，感謝他們堅定不移地領導和為我們的客人和彼此提供的服務。沒有他們，我們將無法繼續發展業務並每天為客人提供服務。儘管消費者需求、宏觀環境和全球供應鏈發生了波動和快速變化，但我們的業務仍然強勁，我們對我們的長期戰略和我們的團隊在這個充滿活力的時期的駕馭能力充滿信心。

We continue to focus on serving our guests in all that we do through our ability to provide relevance and joy in our assortment, the delivery of a positive one-of-a-kind inspiring guest experience and by building lasting, deepened affinity over time. We're lucky to have the best team in retail to make all of this come to life, and I look forward to all we will do together in the second quarter and beyond.

我們繼續專注於為我們的客人提供服務，通過我們提供相關性和快樂的能力，提供一種積極的、獨一無二的鼓舞人心的客人體驗，並隨著時間的推移建立持久、加深的親和力。我們很幸運擁有零售業最優秀的團隊來實現這一切，我期待著我們在第二季度及以後所做的一切。

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

有了這個，我會把事情交給約翰。

Thanks, Christina. Over the last couple of years, our team has been focused on 2 separate and related issues, namely, beginning with the acceleration in sales in early 2020, our inventory wasn't growing fast enough to keep up with the expansion of our sales volume. And as a result, we weren't maintaining in-stock levels consistent with our standards.

謝謝，克里斯蒂娜。在過去幾年中，我們的團隊一直專注於兩個獨立且相關的問題，即從 2020 年初銷售加速開始，我們的庫存增長速度不足以跟上銷量的增長。結果，我們沒有保持符合我們標準的庫存水平。

Following 2 years of effort to catch up, by the time we entered 2022, we had made considerable progress. Overall inventory levels were aligned with both the level of sales we had already achieved and our near-term growth expectations. As a result, we began to see improvements in both in-stocks and product availability. However, conditions have remained far from perfect. Some items and categories remained spotty, typically driven by vendors who are facing multiple constraints in their businesses.

經過2年的追趕，到2022年，我們已經取得了長足的進步。總體庫存水平與我們已經實現的銷售水平和我們的近期增長預期保持一致。結果，我們開始看到庫存和產品可用性都有所改善。然而，條件仍然遠非完美。一些項目和類別仍然參差不齊，通常是由在業務中面臨多重限制的供應商推動的。

A separate challenge our team has been facing, which became more acute in the back half of 2021, is driven by capacity constraints in both the global and domestic freight markets. These issues continue to make it more difficult and more expensive to move inventory where we need it to be. Our team has done a great job managing through these challenges. And as you've seen from our recent gross margin results, our P&L has reflected those higher freight costs.

我們的團隊一直面臨的另一個挑戰在 2021 年下半年變得更加嚴峻，這是由全球和國內貨運市場的運力限制所驅動的。這些問題繼續使將庫存轉移到我們需要的地方變得更加困難和昂貴。我們的團隊在應對這些挑戰方面做得非常出色。正如您從我們最近的毛利率結果中看到的那樣，我們的損益表反映了那些較高的運費成本。

Coming into this year, we anticipated we'd see continued tight conditions and elevated costs in freight markets. But the actual conditions and costs have been much more challenging than expected. More specifically, first quarter freight and transportation costs came in hundreds of millions of dollars higher than our already elevated expectations. And for the full year, we're now expecting about $1 billion of incremental freight costs, even compared to our expectations only 3 months ago.

進入今年，我們預計貨運市場將繼續緊張，成本上升。但實際條件和成本比預期的更具挑戰性。更具體地說，第一季度的貨運和運輸成本比我們已經提高的預期高出數億美元。對於全年，我們現在預計增加的貨運成本約為 10 億美元，即使與僅 3 個月前的預期相比也是如此。

Among the reasons for this incremental pressure, record high fuel costs are a meaningful driver as well as the global shipping market, where costs have stayed unusually high and where we sometimes need to rely on the spot market to secure adequate capacity. Compounding these near-term pressures on our gross margin rate, volatility in both consumer demand and delivery times placed additional stress on our supply chain in Q1, one that was already running lean on capacity in light of the growth we've seen over the last 2 years.

在造成這種增量壓力的原因中，創紀錄的高燃料成本以及全球航運市場是一個有意義的驅動因素，全球航運市場的成本一直異常高昂，我們有時需要依靠現貨市場來確保足夠的運力。加上我們毛利率面臨的這些近期壓力，消費者需求和交貨時間的波動給我們第一季度的供應鏈帶來了額外的壓力，鑑於我們在上一季度看到的增長，供應鏈已經靠產能運行2年。

As Brian and Christina mentioned, this quarter, we ended up carrying too much inventory in several categories where the slowdown in sales was more pronounced than expected, including home, electronics, sporting goods and apparel. In addition, capacity pressures were compounded by the fact that in several of these categories, including kitchen appliances, furniture and outdoor living, items are bulkier than average and require higher-than-average amounts of storage capacity.

正如布賴恩和克里斯蒂娜所說，本季度，我們最終在幾個銷售放緩比預期更明顯的類別中持有過多的庫存，包括家居、電子產品、體育用品和服裝。此外，在包括廚房用具、家具和戶外生活用品在內的幾個類別中，物品比平均體積大，需要高於平均水平的存儲容量，這加劇了容量壓力。

As our team collaborated with Christina's team to work through this excess inventory, we made decisions with an eye on preserving the guest experience. Rather than jamming store sales floors with excess product, which would have made them more difficult to shop, our team secured temporary storage capacity instead. And as Christina mentioned, rather than carrying items beyond their relevant season, her team made the tougher call and marked items down to clear them and keep our presentations fresh and inspiring.

當我們的團隊與 Christina 的團隊合作處理這些多餘的庫存時，我們做出的決定著眼於保持客人的體驗。我們的團隊沒有用過多的產品堵塞商店銷售樓層，這會使他們更難購物，而是確保了臨時存儲容量。正如克里斯蒂娜（Christina）所說，她的團隊沒有在相關季節之後攜帶物品，而是做出了更嚴厲的決定，並標記了物品以清除它們並保持我們的演示新鮮和鼓舞人心。

While these were difficult decisions in the moment, we have no doubt they are the right long-term choices. However, they involved higher costs, resulting directly from the actions we chose to take and indirectly in terms of team member hours required to manage the extra volume. As Michael will discuss in more detail, while we don't expect these conditions to persist over time, they'll continue to impact our Q2 results before conditions begin improving later in the year.

雖然這些目前是艱難的決定，但我們毫不懷疑它們是正確的長期選擇。但是，它們涉及更高的成本，這直接源於我們選擇採取的行動，間接導致管理額外數量所需的團隊成員時間。正如邁克爾將更詳細地討論的那樣，雖然我們預計這些情況不會隨著時間的推移而持續存在，但在今年晚些時候情況開始改善之前，它們將繼續影響我們的第二季度業績。

More specifically, as we move beyond the front half of the year, we'll have had enough time to adjust inventory levels and receipt volumes to match the pace of sales, even in longer lead time categories. In addition, capacity in our supply chain will continue to build throughout the year as the new buildings we opened last fall continue to ramp up their productivity while we work to open additional buildings in the years ahead.

更具體地說，隨著我們超過上半年，我們將有足夠的時間來調整庫存水平和收貨量以匹配銷售速度，即使是在較長交貨時間的類別中也是如此。此外，我們的供應鏈產能將在全年繼續建設，因為我們去年秋天開設的新大樓繼續提高生產力，同時我們努力在未來幾年開設更多大樓。

Beyond this ongoing work to expand the upstream supply chain, we continue to add downstream capacity in our sortation centers, which increased speed and reduced the unit cost of last mile delivery. Following our successful test of the concept in the Minneapolis market, we now have 6 sortation centers open and operating, with plans to open 3 more by the end of the year.

除了正在進行的擴大上游供應鏈的工作外，我們還繼續在分揀中心增加下游產能，從而提高了速度並降低了最後一英里交付的單位成本。在明尼阿波利斯市場成功測試了這一概念之後，我們現在有 6 個分揀中心開放運營，併計劃在今年年底再開設 3 個。

While the newly opened centers are still ramping up their capacity, in total, our 6 sortation centers handled 4.5 million packages in Q1, a number that's expected to grow significantly throughout the year. Each of these facilities already has volume flowing to our national carrier partners, including the ability to sort USPS packages individually by post office, creating a high-speed, low-cost delivery option in the metro areas surrounding each center.

雖然新開設的中心仍在增加容量，但我們的 6 個分揀中心在第一季度總共處理了 450 萬個包裹，預計這一數字將在全年顯著增長。這些設施中的每一個都已經向我們的國家承運商合作夥伴提供了流量，包括能夠通過郵局對 USPS 包裹進行單獨分類，從而在每個中心周圍的都市區創建一個高速、低成本的交付選擇。

In addition, we've begun rolling out our lowest cost delivery option, Target last-mile delivery, at our Atlanta sortation center and will soon expand that capability to the other 4 recently opened facilities. For this capability, we collaborate with our partners at Shipt, whose drivers sign up to deliver batches of orders that have been sorted hyperlocally down to the neighborhood level. This provides a fast, efficient, reliable and low-cost delivery option for our business, benefiting both our guests and the P&L. While we're excited about the results these centers are already delivering, this initiative is in the very early stages, and we have plans to continue opening centers and ramping up this new capability for years to come.

此外，我們已經開始在亞特蘭大分揀中心推出成本最低的交付選項 Target 最後一英里交付，並將很快將該能力擴展到其他 4 個最近開放的設施。為了實現這一功能，我們與 Shipt 的合作夥伴合作，他們的司機簽約交付批量訂單，這些訂單已經超本地分類到社區級別。這為我們的業務提供了一種快速、高效、可靠和低成本的交付選擇，使我們的客人和損益表都受益。雖然我們對這些中心已經交付的成果感到興奮，但該計劃仍處於早期階段，我們計劃在未來幾年繼續開設中心並提高這一新能力。

Beyond investments in the supply chain, we're also excited about the investments we're making in our stores, allowing them to become more productive, more fun and more inspiring to shop. For the year, we have plans to complete remodel projects in nearly 400 stores. And through the first quarter, we had already mobilized on just under half of those projects, keeping us on pace for the year. Just under 200 of this year's projects will be traditional full remodels in which we transform every part of the store, from wall to wall and floor to ceiling, updating the shopping experience to make it more inspiring for our guests and more efficient for our team to operate.

除了對供應鏈的投資外，我們還對我們在商店中進行的投資感到興奮，讓他們變得更有效率、更有趣、更有啟發性。年內，我們計劃完成近400家門店的改造項目。到第一季度，我們已經動員了不到一半的項目，使我們在今年保持同步。今年的近 200 個項目將是傳統的全面改造，我們改造商店的每一個部分，從牆壁到牆壁，從地板到天花板，更新購物體驗，使其對我們的客人更有啟發性，讓我們的團隊更有效率地操作。

Beyond those full remodels, we're planning to complete just over 200 fulfillment remodels in 2022 as well. These projects are focused on the operations of the store and their ability to support our same-day services. More specifically, these projects make changes within the 4 walls of the store to add capacity for same-day orders and incorporate features to enhance our pickup and Drive-Up capabilities.

除了這些全面改造之外，我們還計劃在 2022 年完成 200 多次履行改造。這些項目的重點是商店的運營及其支持我們當日服務的能力。更具體地說，這些項目在商店的 4 面牆內進行了更改，以增加當日訂單的容量，並結合了增強我們的取貨和上車能力的功能。

When warranted, these remodels include the addition of walk-in coolers and freezers near the front of the store, adding reliable capacity for our team to fulfill fresh, refrigerated and frozen items through our pickup and Drive-Up services. In addition, with many of these projects, we had a dedicated door for our team members to use when delivering Drive-Up orders to the parking lot. We're also adding canopies, more prominent signing and more Drive-Up spaces in our parking lots, making the Drive-Up process safer and easier for both our team members and our guests.

必要時，這些改造包括在商店前面附近增加步入式冷卻器和冰櫃，為我們的團隊增加可靠的能力，以通過我們的取貨和上車服務來處理新鮮、冷藏和冷凍的物品。此外，在其中許多項目中，我們有一個專用門供我們的團隊成員在將 Drive-Up 訂單交付到停車場時使用。我們還在我們的停車場增加了簷篷、更顯眼的標誌和更多的 Drive-Up 空間，使 Drive-Up 過程對我們的團隊成員和我們的客人來說更安全、更容易。

Beyond these existing store investments, we continue to open new stores around the country. In the first quarter, we opened 7 locations, all smaller formats, in markets ranging from Jackson Hole in Wyoming to Times Square in New York. We continue to be pleased with the performance of our new stores and our ability to flexibly serve guests in new neighborhoods. And for our stores and markets that were temporarily affected by COVID, including college locations, tourist destinations and dense urban areas, we've seen continued rapid recovery in sales volumes as activity ramps up in those markets following periods of lockdown over the last 2 years.

除了這些現有的商店投資外，我們還將繼續在全國開設新店。第一季度，我們在懷俄明州傑克遜霍爾和紐約時代廣場等市場開設了 7 家店面，全部規模較小。我們繼續對新店的表現以及我們在新社區靈活服務客人的能力感到滿意。對於我們暫時受 COVID 影響的商店和市場，包括大學地點、旅遊目的地和密集的城市地區，隨著過去 2 年的封鎖期後這些市場的活動增加，我們看到銷量持續快速恢復.

Similar to the pressures we've been experiencing in our merchandise costs, our construction team has been dealing with volatility in the price of raw materials and labor in our new store and remodel projects. And like our merchandising partners, they've done a great job working around those costs and constraints, keeping projects on track while maintaining their focus on delivering a great guest experience.

與我們在商品成本方面遇到的壓力類似，我們的建築團隊一直在應對新店和改造項目中原材料和勞動力價格的波動。和我們的銷售合作夥伴一樣，他們在解決這些成本和限制方面做得很好，在保持項目正常進行的同時保持專注於提供出色的客戶體驗。

So as I get ready to hand the call over to Michael, I want to pause and thank the entire operations team, from our stores, to supply chain, and our properties team to our partners at Shipt. The growth we've seen in our business and the expansion of our capabilities over the last 2 years has been both energizing and inspiring, but it certainly hasn't been easy for our team. They've handled growth well beyond what any of us would have expected 2 years ago, even as they worked around new challenges and unexpected obstacles.

因此，當我準備將電話轉交給 Michael 時，我想暫停一下並感謝整個運營團隊，從我們的商店到供應鏈，從我們的物業團隊到我們在 Shipt 的合作夥伴。在過去的兩年中，我們在業務中看到的增長和能力的擴展既令人振奮又鼓舞人心，但這對我們的團隊來說肯定並不容易。他們處理的增長遠遠超出了我們任何人在 2 年前的預期，即使他們在應對新的挑戰和意想不到的障礙時也是如此。

One of the joys of the last year has been the ability for me to once again get out in the field, traveling to our stores and distribution facilities around the country, and experiencing firsthand the energy and positive attitude our team brings to work. They're united in their support of our guests, for our brand and for each other. Every day, they bring our company purpose to life. And every day, I am inspired by what they accomplish.

去年的樂趣之一是我能夠再次走出去，前往我們在全國各地的商店和分銷設施，親身體驗我們團隊為工作帶來的活力和積極態度。他們團結一致地支持我們的客人、我們的品牌和彼此。每一天，他們都將我們的公司宗旨變為現實。每天，我都受到他們所取得的成就的啟發。

Now I'll turn the call over to Michael.

現在我將把電話轉給邁克爾。

Thanks, John. I want to start my remarks today where John just ended and add my thanks to our entire team. Even with all of the challenges they've been facing, they refused to get distracted. Instead, they maintained their focus on our company purpose, to help all families discover the joy of everyday life. Our team shows up to work every day with a passion for serving all families and for serving each other.

謝謝，約翰。今天我想在約翰剛剛結束的地方開始我的發言，並感謝我們整個團隊。即使面對所有挑戰，他們也拒絕分心。相反，他們繼續專注於我們公司的宗旨，幫助所有家庭發現日常生活的樂趣。我們的團隊每天都帶著為所有家庭服務和為彼此服務的熱情出現在工作中。

As John mentioned, it's been a joy in recent months to be able to travel once again, meet with teams across the country and hear what's on their minds. And the optimism and energy of our team is infectious. I can feel that whenever I meet with the team, and obviously, our guests can feel it when they shop, which explains why our first quarter traffic has increased more than 20% over the last 2 years.

正如約翰所說，最近幾個月能夠再次旅行，與全國各地的團隊會面並聽取他們的想法是一種樂趣。我們團隊的樂觀和活力是有感染力的。我能感覺到，每當我與團隊見面時，很明顯，我們的客人在購物時也能感受到，這解釋了為什麼我們的第一季度客流量在過去 2 年中增長了 20% 以上。

In the first quarter, our comp increase of 3.3% was supported by a traffic increase of 3.9%, partially offset by a small decrease in average ticket. Among our fulfillment channels, store sales grew slightly faster than digital in the quarter. Within digital, same-day services continue to drive our growth, and accounted for well over half of our first quarter digital sales; within our same-day services, Drive-Up accounts for the majority of sales, and it continues to grow the fastest. In fact, of the $3.3 billion in first quarter digital sales that we've added since 2019, Drive-Up accounts for nearly half of that growth.

在第一季度，我們 3.3% 的收入增長得到了 3.9% 的客流量增長的支持，但部分被平均票價的小幅下降所抵消。在我們的履行渠道中，本季度門店銷售額的增長略快於數字渠道。在數字領域，當日服務繼續推動我們的增長，占我們第一季度數字銷售額的一半以上；在我們的當日服務中，Drive-Up 佔銷售額的大部分，並且繼續增長最快。事實上，在我們自 2019 年以來增加的第一季度數字銷售額 33 億美元中，Drive-Up 佔了這一增長的近一半。

On the first quarter gross margin line, we saw a rate decline of about 4.3 percentage points compared with last year. Among the causal factors, merchandising actions drove about 3 percentage points of the decline, driven by the combined impact of impairments, markdowns and other actions taken to rightsize our inventory position in categories that were too heavy, along with the impact of higher freight costs.

在第一季度毛利率線上，我們看到與去年相比下降了約 4.3 個百分點。在這些因果因素中，銷售行為推動了約 3 個百分點的下降，這是由於減值、降價和其他為調整我們在過重類別中的庫存頭寸而採取的行動的綜合影響，以及更高的運費成本的影響。

Among other drivers, higher supply chain costs accounted for a little over one percentage point of this year's rate decline, reflecting the impact of higher headcount and compensation in our distribution centers. Sales mix accounted for the remainder of the decline, worth about 10 basis points of pressure.

在其他驅動因素中，較高的供應鏈成本佔今年費率下降的一個百分點多一點，反映了我們配送中心員工人數和薪酬增加的影響。銷售組合佔跌幅的剩餘部分，價值約 10 個基點的壓力。

On the SG&A expense line, we benefited from fixed cost leverage and strong expense control throughout the quarter, which helped to offset the impact of inflation-driven cost increases in multiple expense lines. Within compensation, the continued impact of team investments was offset by lower incentive compensation compared with last year.

在 SG&A 費用項目上，我們受益於整個季度的固定成本槓桿和強有力的費用控制，這有助於抵消通脹驅動的多個費用項目成本增加的影響。在薪酬方面，與去年相比，團隊投資的持續影響被較低的激勵薪酬所抵消。

On the D&A expense line, we saw about 10 basis points of benefit in Q1, reflecting leverage on strong revenue growth. Altogether, our first quarter operating margin rate of 5.3% was about 4.5 percentage points lower than last year. While we expected this year's rate would be well below last year, our actual performance in the quarter was far lower than we anticipated, driven by the unexpectedly high costs we incurred on the gross margin line.

在 D&A 費用線上，我們在第一季度看到了大約 10 個基點的收益，反映了強勁的收入增長的槓桿作用。總體而言，我們第一季度的營業利潤率為 5.3%，比去年低約 4.5 個百分點。雖然我們預計今年的利率將遠低於去年，但由於我們在毛利率線上產生的意外高成本，我們在本季度的實際表現遠低於我們的預期。

Turning now to capital deployment, I'll start where I always do, by reiterating our priorities, which have remained consistent for decades. First, we fully invest in our business and projects that support our strategic and financial criteria. Second, we support the dividend and look to build on our 50-year record of annual dividend growth. And finally, we return any remaining excess cash within the limits of our middle A credit ratings through share repurchases over time.

現在轉向資本部署，我將從我一直做的地方開始，重申我們幾十年來一直保持一致的優先事項。首先，我們全面投資於支持我們的戰略和財務標準的業務和項目。其次，我們支持股息，並希望在我們 50 年的年度股息增長記錄的基礎上再接再厲。最後，我們會通過隨著時間的推移進行股票回購，在我們的中等 A 信用評級範圍內返還任何剩餘的超額現金。

Beginning with the top priority, first quarter CapEx was just under $1 billion, keeping us on track to spend $4 billion to $5 billion for the year. While our teams continue to face multiple challenges, including supply shortages, shipping delays and permitting and inspection delays in some communities, they're doing a great job of working around these obstacles and keeping projects moving.

從頭等大事開始，第一季度的資本支出略低於 10 億美元，使我們今年有望花費 40 億至 50 億美元。雖然我們的團隊繼續面臨多重挑戰，包括供應短缺、運輸延誤以及某些社區的許可和檢查延誤，但他們在解決這些障礙和保持項目進展方面做得很好。

In addition, as John mentioned, unexpected inflationary pressures are affecting some of our capital projects, which will impact our total spending for the year. As I mentioned at our recent Financial Community Meeting, we're excited to make progress on our capital projects, which continue to move our business forward. And today, given the team's efforts to advance this year's projects, I believe we'll reach the high end of our $4 billion to $5 billion plan for the year.

此外，正如約翰所說，意想不到的通脹壓力正在影響我們的一些資本項目，這將影響我們今年的總支出。正如我在最近的金融社區會議上提到的，我們很高興在我們的資本項目上取得進展，這將繼續推動我們的業務向前發展。而今天，鑑於團隊為推進今年的項目所做的努力，我相信我們將達到今年 40 億至 50 億美元計劃的高端。

Moving to our second priority. We paid dividends of $424 million in the first quarter, up about 25% from last year. reflecting a 32% increase in the per share dividend, partially offset by a decline in share count. We plan to recommend that our Board approve a healthy increase in the quarterly dividend, in the mid-teens to low 20% range later this year, keeping 2022 on track to be our 51st consecutive year of annual dividend increases.

轉到我們的第二個優先事項。我們在第一季度支付了 4.24 億美元的股息，比去年增長了約 25%。反映每股股息增加了 32%，但部分被股票數量的下降所抵消。我們計劃建議我們的董事會批准季度股息的健康增長，在今年晚些時候在十幾歲到低 20% 的範圍內，使 2022 年成為我們連續第 51 年年度股息增長。

And finally, regarding share repurchases. Given our strong leverage metrics coming into the year, we entered into an accelerated repurchase plan in the first quarter, which will result in the retirement of up to $2.75 billion of our stock by the time the plan settles in June. In addition to this ASR, we repurchased another $10 million in shares in the first quarter.

最後，關於股票回購。鑑於我們進入今年的強勁槓桿指標，我們在第一季度進入了加速回購計劃，這將導致我們在 6 月計劃結算時退出多達 27.5 億美元的股票。除了這個 ASR，我們在第一季度又回購了 1000 萬美元的股票。

While we anticipate having continued ample capacity to return capital through share repurchases this year, given the current supply chain challenges we're facing and their impact on working capital, we now expect our total repurchases this year will be lower than the $7 billion we returned in 2021. As always, we'll adjust our pace, up or down, based on external conditions, business performance and cash flow, with a goal of maintaining our middle A credit ratings.

雖然我們預計今年將有足夠的能力通過股票回購來返還資本，但鑑於我們目前面臨的供應鏈挑戰及其對營運資金的影響，我們現在預計我們今年的總回購將低於我們返還的 70 億美元在 2021 年。一如既往，我們將根據外部條件、業務表現和現金流調整我們的步伐，以保持我們的中等 A 信用評級。

So now I want to turn to our after-tax return on invested capital, which measures both our profitability and the efficiency of our CapEx decisions over time. In the first quarter, we reported a trailing 12-month after-tax ROIC of 25.3%. While this is a very strong number, indicative of the underlying health of our business, it was much lower than expected, near the very low end of where we expect to operate over time.

所以現在我想談談我們投資資本的稅後回報，它衡量我們的盈利能力和我們資本支出決策的效率。在第一季度，我們報告了 25.3% 的 12 個月稅後投資回報率。雖然這是一個非常強勁的數字，表明我們業務的基本健康狀況，但它遠低於預期，接近我們預計隨著時間的推移運營的極低端。

Now let's turn to our guidance. In terms of the top line, based on our first quarter results and the trends we've seen so far in May, we continue to expect full year revenue growth in the low to mid-single-digit range. In terms of our profitability, given the unexpected cost headwinds that we're currently facing, we now believe our full year operating margin rate will be well below our prior guidance of 8% or higher. More specifically, given the elevated level of volatility we're currently facing and multiple sources of uncertainty going forward, we see a range of potential outcomes, centered around a 6% operating margin rate for the full year.

現在讓我們轉向我們的指導。就收入而言，根據我們第一季度的業績和我們在 5 月份迄今為止看到的趨勢，我們繼續預計全年收入增長將在中低個位數範圍內。就我們的盈利能力而言，鑑於我們目前面臨的意想不到的成本逆風，我們現在認為我們的全年營業利潤率將遠低於我們之前 8% 或更高的指導。更具體地說，鑑於我們目前面臨的高波動性以及未來的多種不確定性來源，我們看到了一系列潛在結果，全年營業利潤率約為 6%。

As John mentioned, in the second quarter, we expect the challenges we faced in the first quarter will continue to impact our near-term profit performance. And our team is focused on doing everything necessary to ensure we enter the fall season with an appropriate level of inventory by category. As such, we expect a Q2 operating margin rate in a wide range, centered around our first quarter rate to 5.3%, well below where we'd expect to operate under normal conditions.

正如約翰所說，在第二季度，我們預計我們在第一季度面臨的挑戰將繼續影響我們的近期利潤表現。我們的團隊專注於做一切必要的事情，以確保我們進入秋季時按類別擁有適當的庫存水平。因此，我們預計第二季度的營業利潤率在很寬的範圍內，以我們第一季度的利率為中心至 5.3%，遠低於我們在正常條件下的預期運營水平。

As we move into the back half of the year, we continue to expect our profit performance will begin to improve. In particular, as John mentioned, we expect to have worked through the excess inventory positions that hampered our Q1 performance and which we expect to impact our gross margin in Q2. That said, we don't expect the external environment will be anything close to normal in the back half of the year. In particular, we don't expect to see any meaningful reduction in global supply chain pressures until 2023 at the earliest. So the elevated costs we've been facing will continue to affect our profitability for the remainder of the year.

隨著我們進入下半年，我們繼續預計我們的利潤表現將開始改善。特別是，正如約翰所提到的，我們預計已經解決了阻礙我們第一季度業績的過剩庫存頭寸，我們預計這將影響我們第二季度的毛利率。也就是說，我們預計今年下半年外部環境不會接近正常。特別是，我們預計最早要到 2023 年才能看到全球供應鏈壓力的顯著減輕。因此，我們一直面臨的高成本將繼續影響我們今年剩餘時間的盈利能力。

But let me be clear about a couple of things. First, we are not happy with our current profit performance, and our team is laser-focused on helping to quickly restore our business performance to where it should be operating over time. That said, nothing that is happening today has changed our long-run expectations regarding the ability of our business to grow nor has it changed our view of the long-run potential of our business to deliver an operating margin rate of 8% or higher over time.

但讓我澄清幾件事。首先，我們對當前的利潤表現並不滿意，我們的團隊專注於幫助我們快速將業務表現恢復到應有的水平。也就是說，今天發生的任何事情都沒有改變我們對業務增長能力的長期預期，也沒有改變我們對業務長期潛力的看法，即實現 8% 或更高的營業利潤率時間。

And today, as we navigate these near-term challenges, we are fortunate to have an incredibly healthy underlying business, one that can stand up to the significant headwinds we're facing and come out stronger on the other side. We have ample financial capacity to continue making long-term investments, in new stores, remodels, supply chain, and of course, in our team, all with a focus on serving and delighting our guests, driving deeper loyalty, and building on the top line growth we've seen in recent years and which continues today.

而今天，當我們應對這些近期挑戰時，我們很幸運擁有一個非常健康的基礎業務，它可以經受住我們面臨的重大逆風，並在另一方面變得更強大。我們有足夠的財務能力繼續在新店、改造、供應鏈，當然還有我們的團隊中進行長期投資，所有這些都專注於服務和取悅我們的客人，提高忠誠度，並建立在頂部我們近年來看到的生產線增長一直持續到今天。

After all, even after a significant pullback from last year, first quarter earnings per share were more than 40% higher than in the first quarter of 2019 prior to the beginning of the pandemic. While that doesn't mean we're where we want to be operating today, it shows we have a strong foundation from which we can recover from today's challenging environment and restore our operating margins to 8% or higher over time, consistent with our long-term financial algorithm. And given the loyalty and momentum we've established with our guests and the power of the investments we continue to make, we expect to continue growing the top line, even as we regain the level of profitability we expect our business will generate over time.

畢竟，即使在較去年大幅回落之後，第一季度的每股收益也比大流行開始前的 2019 年第一季度高出 40% 以上。雖然這並不意味著我們今天想要經營，但它表明我們有一個堅實的基礎，我們可以從今天充滿挑戰的環境中恢復過來，並隨著時間的推移將我們的營業利潤率恢復到 8% 或更高，這與我們長期長期財務算法。鑑於我們與客人建立的忠誠度和動力以及我們繼續進行的投資的力量，我們預計將繼續增加收入，即使我們恢復了我們預計我們的業務將隨著時間的推移產生的盈利水平。

Now I'll turn it back over to Brian for some closing remarks.

現在，我將把它交給 Brian 做一些結束語。

Thanks, Michael. Before we move to your questions, I want to take a few minutes to reinforce why we're confident in the ability of our team and our durable business model to successfully navigate today's volatile environment and deliver continued profitable market share growth in the years ahead.

謝謝，邁克爾。在我們回答您的問題之前，我想花幾分鐘時間來強調一下為什麼我們對我們的團隊和我們持久的商業模式能夠成功駕馭當今動蕩的環境並在未來幾年實現持續盈利的市場份額增長充滿信心。

As Michael covered, even as elevated costs put meaningful pressure on our near-term financial performance, our business today remains profitable and very healthy, and it continues to grow. Since the first quarter of 2019, both our revenue on the top line and our EPS on the bottom line have each grown by more than 40%. Underlying that growth, we benefited from strong increases in both guest traffic and average ticket over the last 3 years, meaning the guests have found more reasons to visit our stores and our site and purchase more when they shop. This is the definition of a durable business model, one that can stand up to the unexpected pressures and remain healthy and growing.

正如邁克爾所說，即使成本上升給我們的近期財務業績帶來了重大壓力，我們今天的業務仍然保持盈利並且非常健康，並且還在繼續增長。自 2019 年第一季度以來，我們的收入和利潤均增長了 40% 以上。在這種增長的基礎上，我們受益於過去 3 年客流量和平均門票的強勁增長，這意味著客人在購物時找到了更多理由光顧我們的商店和我們的網站併購買更多商品。這是一種持久的商業模式的定義，一種可以承受意想不到的壓力並保持健康和成長的商業模式。

When I think about the critical drivers of our long-term success, there are 2 things that rise to the top of that list: our team; and the relationship we've developed with our guests. And when I think about the quality of our team, I don't believe that it's ever been better.

當我想到我們長期成功的關鍵驅動因素時，有兩件事排在首位：我們的團隊；以及我們與客人建立的關係。當我想到我們團隊的質量時，我不相信它會變得更好。

Over the last 5 years, we've made significant, purposeful investments to ensure we're hiring, elevating and retaining the best team in retail. These investments begin with paying benefits. But we've also found new ways to enhance the work experience and provide pathways for advancements, all in keeping with our Target forward goals to create an equitable and inclusive workforce and workplace. So even as we work tirelessly to restore our business to its long-term profitability, you should expect us to continue investing in our team, because we'll never achieve our longer potential without them.

在過去的 5 年中，我們進行了大量、有目的的投資，以確保我們正在招聘、提升和留住最好的零售團隊。這些投資從支付福利開始。但我們也找到了新的方法來增強工作體驗並提供晉升途徑，這一切都符合我們的目標前進目標，即創建一個公平和包容的勞動力和工作場所。因此，即使我們孜孜不倦地努力使我們的業務恢復其長期盈利能力，您也應該期望我們繼續投資於我們的團隊，因為沒有他們，我們將永遠無法實現我們的長期潛力。

We have the same perspective regarding relationships with our guests. Over the last 5 years, we've made a number of deliberate decisions that were designed to deepen the relationship between Target and our guests. These decisions have resulted in ever-increasing traffic, translating to growth on both the top line and the bottom.

我們對與客人的關係有著相同的看法。在過去的 5 年中，我們做出了許多深思熟慮的決定，旨在加深 Target 與我們的客人之間的關係。這些決定導致流量不斷增加，轉化為收入和利潤的增長。

So in the quarter just ended, when our team was facing potential trade-offs between a guest experience and incurring short-term costs, I am proud to say that they maintained their focus on the guest experience. That's because our team is laser-focused on our long-term financial performance, which depends on building and maintaining an ever-deepening relationships with our guests.

因此，在剛剛結束的季度，當我們的團隊面臨客戶體驗和產生的短期成本之間的潛在權衡時，我很自豪地說，他們一直專注於客戶體驗。這是因為我們的團隊非常關注我們的長期財務業績，這取決於與我們的客人建立和維持不斷加深的關係。

So with that, I want to thank you for listening into our call today. And now Christina, John, Michael and I will be happy to take your questions.

因此，我要感謝您今天收聽我們的電話。現在克里斯蒂娜、約翰、邁克爾和我很樂意回答你的問題。

(Operator Instructions) Our first question comes from Chris Horvers with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Chris Horvers。

I have a question and as well as a follow-up. So first question is, in the first quarter of 2020, you took a large inventory impairment that you were able to get back in the second quarter. Now understanding it's a different environment that we face in this quarter, but the question is, how much lingering markdown risk could there be in 2Q? Maybe how large was the impairment? And why wouldn't this capture the risk in the first quarter? And how are you framing out the potential gross margin decline in 2Q?

我有一個問題，以及後續行動。所以第一個問題是，在 2020 年第一季度，您進行了大量的庫存減值，您可以在第二季度收回。現在了解我們在本季度面臨的不同環境，但問題是，第二季度會有多少揮之不去的降價風險？也許損傷有多大？為什麼這不能捕捉到第一季度的風險？您如何確定第二季度潛在的毛利率下降？

Yes. Thanks for the question, Chris. We still got some inventory to work through. And so you saw some of that pain in Q1. And our gross margin guidance of Q2 of operating -- or sorry, our operating margin guidance of a 5.3%, give or take, a wide range around that, contemplates the work we still think we have to do on the inventory side in the second quarter. Importantly, we believe taking those actions in Q1 and Q2 set us up well for the balance of the year. We've got some big important seasons in front of us: back to school, back to college. It will be fall and holiday before we know it, and so we're taking the right actions now to preserve a guest experience that continues to be strong. You saw it in traffic in Q1, and we're excited about what we see as a start of Q2 on the top line as well.

是的。謝謝你的問題，克里斯。我們還有一些庫存要處理。所以你在第一季度看到了一些痛苦。我們對第二季度運營毛利率的指導——或者抱歉，我們的運營利潤率指導為 5.3%，在此範圍內給予或接受，範圍很廣，考慮到我們仍然認為我們必須在第二季度在庫存方面做的工作四分之一。重要的是，我們相信在第一季度和第二季度採取這些行動為我們今年的平衡做好了準備。我們面前有一些重要的賽季：回到學校，回到大學。在我們不知不覺中將是秋季和假期，因此我們現在正在採取正確的行動來保持持續強勁的客戶體驗。您在第一季度的流量中看到了它，我們也對我們看到的第二季度的開始感到興奮。

Okay. And then as a follow-up, can you expand a little bit more on what changed in your implied operating margin outlook for the back half? You mentioned supply chain costs. Are these now about $1 billion for the year? Are these now big enough to offset the air freight pressures in the back half, particularly 3Q? And then did you also change your mix assumption? And to what extent are you baking in more promotions and clearance relative to a few months ago?

好的。然後作為後續行動，您能否進一步擴展您對後半部分隱含營業利潤率前景的變化？你提到了供應鏈成本。這些現在是今年大約 10 億美元嗎？這些現在是否足以抵消後半段，特別是第三季度的空運壓力？然後你是否也改變了你的混合假設？與幾個月前相比，你在多大程度上進行了更多的促銷和清倉？

Yes. You hit on 2 of the bigger factors that will be at play in the back half of the year. As we've discussed, we see about $1 billion of freight and transportation pressure, outside of what we would describe even at the start of Q1. But we do expect, and we continue to take product in early intentionally to protect against supply chain disruption. We expect to see some offset as we don't anniversary the same level of air freight that we saw in the back half of the year.

是的。您發現了今年下半年將發揮作用的兩個更大的因素。正如我們所討論的，我們看到大約 10 億美元的貨運和運輸壓力，超出了我們在第一季度開始時所描述的壓力。但我們確實期望，並且我們會繼續有意提前購買產品，以防止供應鏈中斷。我們預計會看到一些抵消，因為我們沒有紀念我們在今年下半年看到的相同水平的空運。

When it comes to mix, I mentioned in my remarks about a 10 basis point drag from margin rate mix. The biggest shift from a category perspective is just the change in some of the categories at the top of the guest shopping list. And some of those categories where we've got some inventory to work through are the ones we'll work through in the first half of the year, and will be better positioned heading into the second half.

談到組合，我在評論中提到了保證金利率組合會拖累 10 個基點。從品類的角度來看，最大的轉變只是客人購物清單頂部的一些品類的變化。我們有一些庫存需要完成的一些類別是我們將在今年上半年完成的類別，並且將在下半年更好地定位。

The next question comes from Karen Short with Barclays.

下一個問題來自 Barclays 的 Karen Short。

I had 2 questions. So the first is, I'm just curious on your philosophy with respect to the fact that you had an Analyst Day on March 1 and had some insight into the trends that you were seeing. So can you maybe just update us on your philosophy on maybe giving a pre-announcement? Because, I mean, I think it did come up with Walmart yesterday as well. So you're in good camp on things changing very quickly with the consumer and with the cost side of the equation. So that's my first question. And then I just had a quick follow-up.

我有 2 個問題。所以首先是，我只是對你的哲學感到好奇，因為你在 3 月 1 日有一個分析師日，並且對你所看到的趨勢有一些洞察力。那麼，您能否向我們介紹您關於發布預先公告的理念？因為，我的意思是，我認為沃爾瑪昨天也提出了它。因此，對於消費者和等式的成本方面的快速變化，您處於良好的陣營中。所以這是我的第一個問題。然後我進行了快速跟進。

Karen, as we stand in front of you and others in March, we did not anticipate the rapid shifts we've seen over the last 60 days. We did not anticipate that transportation and freight costs would soar the way they have as fuel prices have risen to all-time highs. While we were certainly anticipating the impact of overlapping stimulus and consumer and guest returning to more normal activities, we did not expect to see the dramatic shift in many categories that we've talked about, the shift from categories like TVs to luggage, from small appliances to toys, and guests celebrating, being out with friends. That certainly impacted our business in the first quarter, and we expect that to continue in Q2. And we certainly didn't anticipate the impact that would have on our supply chain costs.

凱倫，當我們在 3 月份站在你和其他人面前時，我們沒有預料到過去 60 天的快速變化。我們沒有預料到運輸和貨運成本會隨著燃料價格上漲到歷史最高水平而飆升。雖然我們當然預料到重疊刺激以及消費者和客人恢復更正常活動的影響，但我們沒想到會看到我們討論過的許多類別的戲劇性轉變，從電視等類別轉變為行李箱，從小玩具的電器，慶祝的客人，和朋友出去玩。這肯定影響了我們第一季度的業務，我們預計這種情況將在第二季度繼續。我們當然沒有預料到這會對我們的供應鏈成本產生影響。

So things changed rapidly after we stood on stage in New York. We own that. It's what we're adjusting as we build our plans for the balance of the year. And we're committed to improving our operating performance over the second, third and fourth quarter and getting ourselves back on track for a more normalized environment in 2023.

所以當我們站在紐約的舞台上之後，情況發生了迅速的變化。我們擁有它。這是我們在製定年度餘額計劃時正在調整的內容。我們致力於在第二、第三和第四季度改善我們的運營業績，並在 2023 年讓自己重回正軌，以實現更加正常化的環境。

Okay. And then my second question is, obviously, we -- you have the higher sales productivity. That should be sustainable. So that should also translate into a sustainably higher operating margin structure, right, longer term, which is what you guided to. But that's the biggest question, obviously, that investors are asking today given what you just reported and what your guide reflects. So maybe if you could just give a little more color on why -- and the puts -- not the puts and takes, but the -- I guess, a stair step function to get back to your algorithm on the 8% operating margin.

好的。然後我的第二個問題是，顯然，我們 - 你的銷售效率更高。這應該是可持續的。因此，這也應該轉化為可持續更高的營業利潤率結構，正確的，長期的，這就是你所指導的。但顯然，鑑於您剛剛報告的內容以及您的指南所反映的內容，這是投資者今天提出的最大問題。因此，也許如果您可以對為什麼 - 以及看跌期權 - 而不是看跌期權和接受交易，而是 - 我想，一個階梯函數可以在 8% 的營業利潤率上回到你的算法。

You hit the nail on the head in your question. The sustainability of scale benefits, especially as you've seen in SG&A leverage, that should be sticky, and we would expect it to be sticky. We've got some work to do on the margin line, and Q1 and Q2 outlook reflects that. But as we work through some of that inventory liability, as we let the levers we have to pull react to the current environment, to Brian's note, some of that snuck up on us in the first quarter, and we'll work through some of that over time. But we continue to have a lot of confidence that the long-term run rate of profitability for the business is in the 8% range, give or take. And it's our work to do the hard work to get back to that path.

你的問題一針見血。規模效益的可持續性，特別是正如您在 SG&A 槓桿中看到的那樣，應該具有粘性，我們預計它會具有粘性。我們在邊際線上還有一些工作要做，第一季度和第二季度的前景反映了這一點。但是，當我們解決一些庫存負債時，當我們讓我們必須拉動的槓桿對當前環境做出反應時，根據 Brian 的說明，其中一些在第一季度潛伏在我們身上，我們將解決一些隨著時間的推移。但我們仍然很有信心，該業務的長期盈利率在 8% 的範圍內，無論是給予還是接受。我們的工作就是努力回到這條道路上。

Karen, just finished my -- one of the things that hasn't changed since we were together in March and gives us great confidence as we go forward is the relationship we have with the guest. While we've certainly seen significant cost pressures since the start of this quarter, the guest continues to reward us with footsteps in our stores and growing traffic, more visits to our site. We feel very good about putting over 3% comps on top of 23% last year. The fact that traffic grew by almost 4% on top of 17% last year gives us great confidence that while we're facing some operating challenges, we've made that invisible for the guests. And we protected the guest experience as they shop our stores and visit our site.

凱倫，剛剛完成了我的 - 自三月份我們在一起以來一直沒有改變的事情之一，並且在我們前進的過程中給了我們很大的信心，那就是我們與客人的關係。雖然自本季度開始以來我們確實看到了巨大的成本壓力，但客人繼續通過我們商店的腳步和不斷增長的流量以及對我們網站的更多訪問來獎勵我們。我們對在去年 23% 的基礎上增加超過 3% 的補償感到非常滿意。客流量在去年 17% 的基礎上增長了近 4%，這一事實讓我們非常有信心，儘管我們面臨一些運營挑戰，但我們已經讓客人看不見了。我們保護了客戶在他們購物和訪問我們網站時的體驗。

That gives us tremendous confidence that, that guest will continue to reward us, particularly as we provide great value and affordability during a time of need. So that continues to give us confidence, not in just this year, but in our out-year forecast.

這讓我們非常有信心，那位客人將繼續獎勵我們，特別是當我們在需要的時候提供巨大的價值和負擔能力。因此，這繼續給我們信心，不僅在今年，而且在我們的年度預測中。

The next question is from Kate McShane with Goldman Sachs.

下一個問題來自高盛的 Kate McShane。

I wondered if you could help us understand a little bit more the slightly down average ticket during the quarter. Just given the level of inflation that we did see on the cost side and the prices that you may have passed through, are there any pricing actions here that can help offset some of these margin pressures further? Or can we expect higher prices than what we saw in Q1?

我想知道您是否可以幫助我們更多地了解本季度略微下降的平均票價。考慮到我們在成本方面確實看到的通脹水平以及您可能已經承受的價格，這裡是否有任何定價措施可以幫助進一步抵消這些利潤率壓力？或者我們可以期待比我們在第一季度看到的價格更高的價格嗎？

Sure. Thanks for the question, Kate. As we shared in remarks, the headline story for us is traffic growth. But if you -- as you decompose ticket, we did see a low single digit increase in ASPs, offset by a reduction in units per basket. As you've heard us probably say many times before, a lot goes into that ASP number. It's a little bit product mix, it's a little bit how much inflation is in the environment. And so a little trickier to decompose there, but that's just a little more color on what we saw in the basket.

當然。謝謝你的問題，凱特。正如我們在評論中分享的那樣，我們的頭條新聞是流量增長。但是，如果您 - 當您分解票證時，我們確實看到 ASP 出現了低個位數的增長，但被每個籃子的單位減少所抵消。正如您之前可能多次聽到我們所說的那樣，該 ASP 數字包含很多內容。這是一點點產品組合，一點點是環境中有多少通貨膨脹。所以在那里分解有點棘手，但這只是我們在籃子裡看到的更多顏色。

We continue to be laser-focused on that traffic number. That's a great indicator for us of how -- what we're doing is resonating with the guests and to continue growing the top line by growing and deepening engagement with Target. That positions us well for the back part of the year, and that positions us to have the top line that we want as we rightsize the profit picture over time.

我們將繼續專注於該流量數字。這對我們來說是一個很好的指標——我們正在做的是與客人產生共鳴，並通過增加和加深與 Target 的接觸來繼續增加收入。這使我們在今年下半年處於有利地位，並且使我們能夠隨著時間的推移調整利潤圖景，從而獲得我們想要的收入。

Okay. And with regards to the operating margin guidance, and granted that I know you've kind of anchored it to the 5.8% and it being a wide range around that, is there any way you can dimensionalize how much lower do you think the margin can go or what the bottom of that range might be in your scenario analysis?

好的。關於營業利潤率指導，並且我知道您已經將其固定在 5.8% 並且範圍很廣，您有什麼方法可以確定您認為利潤率可以降低多少？ go 或者在您的場景分析中該範圍的底部可能是什麼？

Yes. There's -- I mean, obviously, there's a lot of factors at play as we look at Q2 and the balance of the year. I think we used the language, we wouldn't expect it to be normal for the balance of this year. So our best view of those factors is in our Q2 guide of 5.3%, plus or minus, a wide range around that, and in our guide of 6% for the year.

是的。有 - 我的意思是，很明顯，當我們查看第二季度和今年的餘額時，有很多因素在起作用。我認為我們使用了這種語言，我們不希望它在今年的餘額中是正常的。因此，我們對這些因素的最佳看法是在我們的第二季度指南中 5.3%（正負），在此範圍內的範圍很廣，並且在我們的年度指南中為 6%。

The next question is from Scott Mushkin with R5 Capital.

下一個問題來自 R5 Capital 的 Scott Mushkin。

So I guess the first thing I wanted to talk about a little bit is the inflation that consumers are seeing, particularly in those everyday items like utilities, food. How do you think the consumer is going to react over time? I know people talk about peak inflation, but from our vantage, it probably doesn't occur till maybe late summer. And how concerned are you that consumer demand holds up?

所以我想我想談談的第一件事是消費者所看到的通貨膨脹，特別是在那些日常用品中，比如公用事業、食品。你認為消費者隨著時間的推移會有什麼反應？我知道人們談論通脹高峰，但從我們的角度來看，它可能要到夏末才會出現。您對消費者需求的維持有多擔心？

Well, Scott, obviously, we're watching this on almost a daily basis. And while we can't project into the future, I wish I had that crystal ball in front of me, we can tell you what we saw during the quarter and the start of May, where we just continue to see a resilient consumer. Our traffic numbers are up to start the second quarter. They're shopping multiple categories. And they're appreciating both the newness that we're providing, the seasonal relevance in our stores and in our assortment and the value we're providing. And we think that's critically important to our success over time.

好吧，斯科特，很明顯，我們幾乎每天都在看這個。雖然我們無法預測未來，但我希望我面前有那個水晶球，我們可以告訴你我們在本季度和 5 月初看到的情況，我們只是繼續看到有彈性的消費者。我們的流量數據將從第二季度開始。他們購買多個類別。他們讚賞我們提供的新穎性、我們的商店和我們的分類中的季節性相關性以及我們提供的價值。我們認為，隨著時間的推移，這對我們的成功至關重要。

So I'd love to give you an outlook on what's going to happen with the consumer and how do they respond to ongoing inflationary pressure. But I can tell you, the traffic we saw in our stores and the visits in our site in the first quarter, the way that's continuing in May 1 tells us that we've built extraordinary trust over the last couple of years. And we're continuing to be rewarded by a guest and the consumer as we work into the second quarter.

因此，我很樂意向您介紹消費者將發生什麼以及他們如何應對持續的通脹壓力。但我可以告訴你，我們在第一季度看到的商店流量和網站訪問量，以及 5 月 1 日持續的方式告訴我們，我們在過去幾年中建立了非凡的信任。隨著我們進入第二季度，我們將繼續受到客人和消費者的獎勵。

So as a follow-up to that, Brian. I guess when you guys look at your business and the volatility that we're seeing and the potential the consumer could weaken, I know you're not seeing it yet, when do you start getting more aggressive on your costs to take action to maybe bring things down if you see things? How quickly can you move? And when do you start to do that?

因此，作為後續行動，布賴恩。我想當你們看到你們的業務和我們所看到的波動性以及消費者可能減弱的潛力時，我知道你們還沒有看到它，你們什麼時候開始更加積極地採取行動來採取行動如果你看到東西就把東西放下來？你能移動多快？你什麼時候開始這樣做？

Well, Scott, we work each and every day to make sure we're finding efficiency throughout our operation. And certainly, coming out of the first quarter, we are doubling down on finding operating efficiencies and greater effectiveness in the organization. We know we've got to be really agile. And I think it's been one of our strengths over the last few years and certainly pronounced during the pandemic, that we have to be able to respond to a changing environment, whether it's the consumer changes, the economic changes around us.

好吧，斯科特，我們每天都在工作，以確保我們在整個運營過程中找到效率。當然，從第一季度開始，我們正在加倍努力尋找組織的運營效率和更高的效率。我們知道我們必須非常敏捷。我認為這是我們過去幾年的優勢之一，並且在大流行期間肯定很明顯，我們必須能夠應對不斷變化的環境，無論是消費者的變化，還是我們周圍的經濟變化。

And we'll continue to make sure we're focusing on agility, maintaining that relationship with the guests, growing market share even in a volatile environment and making sure we just deepen that relationship with our guests, which we think, long term, along with investing in our team, is the most successful way for us to create value for our shareholders.

我們將繼續確保我們專注於敏捷性，維持與客人的關係，即使在動蕩的環境中也能增加市場份額，並確保我們只是加深與客人的關係，我們認為這是長期的投資我們的團隊，是我們為股東創造價值的最成功的方式。

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

下一個問題來自 Telsey 諮詢集團的 Joe Feldman。

I think earlier in the scripted remarks, Christina had made a comment that consumers seem more positive about their finances. And I was just curious if you could share a little more color behind that, like what you're seeing or hearing in your survey work.

我認為在腳本評論的早些時候，克里斯蒂娜曾發表評論說，消費者似乎對他們的財務狀況更加積極。我只是好奇你是否可以在這背後分享更多的色彩，比如你在調查工作中看到或聽到的內容。

Yes. I'd be happy to, Joe. We have been -- the last couple of years, we have been highly engaged in trying to understand the consumer. We've been through a series of chapters of consumer behavior shifts almost every 2 months for 2-plus years, honestly. And what we're seeing is that the consumer has taken control of their environment more so because the macro environment feels out of control.

是的。我很樂意，喬。我們一直 - 在過去的幾年裡，我們一直在高度參與試圖了解消費者。老實說，我們在 2 年多的時間裡幾乎每 2 個月就經歷了一系列關於消費者行為變化的章節。我們所看到的是，消費者對他們的環境的控制更加如此，因為宏觀環境感覺失控了。

And so despite the fact that they might have worries about inflation, they're in charge. And they're making decisions based on their preferences and what they value, which means going back out, if that's what they want to do, traveling because they've missed it, seeing their friends and family again. And it's about moderating those behavior shifts and accommodating our assortment and our messaging and our relevance based on how those shifts happen. And so it's really important to stay close to the consumer and not expect that past behavior as an indicator of the future.

因此，儘管他們可能擔心通貨膨脹，但他們還是負責。他們正在根據自己的喜好和他們所看重的東西做出決定，這意味著如果他們想做的話，就回去旅行，因為他們錯過了旅行，再次見到他們的朋友和家人。這是關於緩和這些行為轉變，並根據這些轉變如何發生來適應我們的分類、我們的信息和我們的相關性。因此，與消費者保持密切聯繫非常重要，不要將過去的行為視為未來的指標。

Got it. And then just a follow-up again on the gross margin pressure you guys are seeing. Should we assume things gradually improve as the year progresses? Because presumably, you'll be lapping some of that pressure from last year. Prior to this quarter, I mean, historically, you guys have always had a pretty steady gross margin on an annual basis anyway, around 28%. And so is there any reason to think we won't kind of naturally come right back to that as we cycle through these pressures?

知道了。然後再次跟進你們所看到的毛利率壓力。我們是否應該假設隨著時間的推移情況會逐漸好轉？因為據推測，您將從去年開始承受一些壓力。在本季度之前，我的意思是，從歷史上看，無論如何，你們每年的毛利率總是相當穩定，約為 28%。那麼，有沒有理由認為，當我們在這些壓力中循環時，我們不會自然而然地回到那個狀態？

Yes. You're certainly pointing in the right direction there, Joe. We've given the kind of explicit expectations for Q2, but implied in the full year is an improving profitability picture that will come through margin in the balance of the year. To focus on the annual in the long run there is a theme that I've come back to over and over. Quarterly margin is going to have more volatility than one might think. But in the long run, we're pleased with what we see as the potential of the profitability of the business. And we'll be on a path in the back half of this year to take steps in that direction for sure.

是的。喬，你肯定指向正確的方向。我們已經給出了對第二季度的明確預期，但在全年中暗示的是盈利能力的改善，這將通過今年餘下的利潤來實現。從長遠來看，要專注於年度，我會一遍又一遍地談到一個主題。季度利潤率的波動性將超出人們的想像。但從長遠來看，我們對我們所看到的業務盈利潛力感到滿意。今年下半年，我們肯定會朝著這個方向邁出一步。

The next question is from Edward Kelly with Wells Fargo.

下一個問題來自富國銀行的 Edward Kelly。

Yes. Brian, I wanted to ask you about pricing. Beyond the inventory issue, much of the pressure seems cost related in areas like supply chain. Can you talk about the potential to pass these costs through to consumers and the time frame this may occur? I mean we are hearing from probably your biggest competitor, I guess, plans to do this. If there's any hesitation, maybe talk about why.

是的。布賴恩，我想問你關於定價的問題。除了庫存問題，大部分壓力似乎與供應鍊等領域的成本有關。您能否談談將這些成本轉嫁給消費者的可能性以及可能發生的時間範圍？我的意思是，我們可能聽到您最大的競爭對手的消息，我猜，計劃這樣做。如果有任何猶豫，也許談談原因。

Yes. Joe, we absolutely are looking at this very carefully. And you should expect us to surgically pass along cost where appropriate. But we're also laser-focused on protecting our value position in this environment and making sure we provide great affordability to the guests in a time of need.

是的。喬，我們絕對在非常仔細地看待這個問題。您應該期望我們在適當的情況下通過手術轉嫁成本。但我們也非常注重保護我們在這種環境中的價值地位，並確保我們在需要時為客人提供高性價比。

So we'll take a very balanced perspective on that. But I think we've got to start with doing the right thing for our guests and making sure we continue to provide the value that they look for from Target each and every day while we manage the cost environment and determine where and when we can pass along costs selectively.

因此，我們將對此採取非常平衡的觀點。但我認為我們必須從為我們的客人做正確的事情開始，並確保我們每天繼續提供他們從 Target 尋求的價值，同時我們管理成本環境並確定我們可以在何時何地通過選擇性地沿著成本。

Okay. And then just a follow-up. Inventory per store is up a lot over 2019 before, pre-pandemic. And a lot has obviously changed, and your sales are a lot higher. But can you talk about where this should be? Maybe quantify the amount of excess that's still sitting in inventory today and where the most work needs to be done. And then what are you doing going forward to adjust things like cancellations? Or is it just really sort of adjusting ordering going forward?

好的。然後只是跟進。與大流行前的 2019 年相比，每家商店的庫存增加了很多。很多東西顯然發生了變化，你的銷售額也高了很多。但是你能談談這應該在哪裡嗎？也許量化今天仍然存在於庫存中的過剩量以及需要完成最多工作的地方。然後你在做什麼來調整取消之類的事情？還是真的只是在調整順序？

Yes, Ed. The -- it's a good question. There's a few things going on if you look at the level of inventory on our balance sheet. One is we've got some categories where we need to work through some inventories. We've already talked about that piece. There's a little bit of product cost inflation sitting in that number, too. But I will say, given our desire to make sure we're landing some product earlier and protect against supply chain volatility, for the near term here, you should expect kind of that new normal of sales growth to inventory growth to include some working capital investments as we land some of that product sooner to make sure we've got it for the guest.

是的，埃德。 - 這是一個很好的問題。如果您查看我們資產負債表上的庫存水平，就會發生一些事情。一是我們有一些類別，我們需要處理一些庫存。我們已經討論過那件作品。這個數字也有一點產品成本膨脹。但我會說，鑑於我們希望確保我們更早地推出一些產品並防止供應鏈波動，在短期內，你應該期望銷售增長到庫存增長的新常態包括一些營運資金投資，因為我們更早地獲得了一些產品，以確保我們為客人提供了它。

And so those are the 3 big factors that we're watching. Obviously, the first of those factors, we'll work to make some progress on here in the second quarter to get us in line with what we expect sales trends to look like for the back part of the year. But old normal might not be the current run rate in the near term as we work to secure product, land it early and avoid some of the disruptions that have caused out of stocks over the last year.

這就是我們正在關注的三大因素。顯然，這些因素中的第一個，我們將努力在第二季度取得一些進展，以使我們符合我們對今年下半年銷售趨勢的預期。但舊常態可能不會在短期內成為當前的運行速度，因為我們正在努力確保產品安全，儘早登陸並避免去年因缺貨而導致的一些中斷。

Yes. And just to pile on a little bit, I think all things being equal, we would say, given how much larger we are, we turn -- everything would turn faster. But I think Michael hit on it, I don't think 2019 is a reasonable compare. Given the, frankly, slowness in the supply chain, lead times are longer. And that means we carry more inventory at any given time because of those lead times.

是的。只是增加一點，我認為所有事情都是平等的，我們會說，考慮到我們有多大，我們轉身——一切都會轉得更快。但我認為邁克爾一拍即合，我不認為 2019 年是一個合理的比較。坦率地說，鑑於供應鏈的緩慢性，交貨時間更長。這意味著由於這些提前期，我們在任何給定時間都會攜帶更多庫存。

And so we aren't where we want to be right now, for sure. Like Michael said, we're lumpy, and we need to work through that, we will. But in general, the increase in turns that we would naturally see being a larger business with more sales is going to be offset by lead times that have increased virtually across every part of the supply chain.

所以我們現在肯定不是我們想要的。就像邁克爾說的那樣，我們很笨拙，我們需要解決這個問題，我們會的。但總的來說，我們自然會看到作為一家擁有更多銷售額的大型企業，周轉量的增加將被供應鏈各個部分的交貨時間幾乎增加所抵消。

Operator, we have time for one more question today.

接線員，我們今天有時間再問一個問題。

Our last question comes from Robbie Ohmes with Bank of America.

我們的最後一個問題來自美國銀行的 Robbie Ohmes。

Two quick follow-ups. The first is, if you guys isolate groceries, so Household Essentials and Food & Beverage, how was gross margin in that area of your business versus expectations? Is that seeing similar kind of pressure?

兩個快速跟進。首先是，如果你們將雜貨分開，那麼家庭必需品和食品和飲料，你們業務領域的毛利率與預期相比如何？是不是看到了類似的壓力？

We feel good about the gross margin performance in grocery. And just Food & Beverage in general has been such a steady top line grower, share gainer quarter after quarter. And so the strength that we've built in that category, I think, makes the economics in Food & Beverage work in the right direction. We've talked a lot, and I think it's important as we think about consumer looking for value, the strength of the owned brands in Food & Beverage, Good & Gather and Favorite Day and the guest response we've seen to those 2 owned brands has just been incredible. And that's great from a guest preference perspective. It's also good for margin.

我們對雜貨店的毛利率表現感到滿意。總的來說，食品和飲料行業一直是一個如此穩定的收入增長者，一個季度又一個季度的份額增長。因此，我認為，我們在該類別中建立的實力使食品和飲料的經濟學朝著正確的方向發展。我們談了很多，我認為這很重要，因為我們考慮消費者尋求價值、自有品牌在食品和飲料、Good & Gather 和最喜歡的一天的實力以及我們看到的這兩個自有品牌的客戶反應品牌簡直令人難以置信。從客人偏好的角度來看，這很棒。這對利潤也有好處。

And the ability to cover the cost increases coming through on the national brands has been healthy?

覆蓋民族品牌帶來的成本增長的能力是否健康？

Yes. We're obviously looking at that across all categories and making sure that we're providing great value to our guests in spite of those inflationary cost pressures. No different approach in food and beverage, where we're looking to get that balance right there, too.

是的。顯然，我們正在關注所有類別的情況，並確保儘管存在通脹成本壓力，我們仍為客人提供巨大的價值。在食品和飲料方面沒有不同的方法，我們也希望在其中獲得這種平衡。

And then just quickly, on the traffic, which is -- was really healthy against -- I think it was plus 17 last year, any sense of new customers versus frequency?

然後很快，關於流量，這是 - 非常健康 - 我認為去年是+ 17，新客戶與頻率的任何感覺？

So it's always a little bit of a mix of both when we're doing our job, right? But the thing that we come back to when it comes to driving traffic is just driving deeper and deeper engagement. And you've heard us talk in the past with over 100 million Target Circle guests. That's just one more way that we can continue to drive preference in a personalized way and build deeper and deeper engagement with Target over time.

所以當我們做我們的工作時，它總是有點混合，對吧？但是，當談到推動流量時，我們回到的事情只是推動越來越深入的參與。您過去曾聽過我們與超過 1 億個 Target Circle 客人交談。這只是我們可以繼續以個性化方式推動偏好並隨著時間的推移與 Target 建立越來越深入的互動的另一種方式。

And you can see that coming through in the traffic results we see, not just in this quarter, but over the past couple of years. And that gives us a lot of optimism that what we're doing is resonating with the guests, and that should bode well for the balance of the year and beyond.

您可以在我們看到的流量結果中看到這一點，不僅在本季度，而且在過去幾年中。這讓我們非常樂觀，我們正在做的事情會引起客人的共鳴，這對於今年及以後的平衡來說應該是個好兆頭。

Yes, Robbie, and if I could just add 2 cents to that. The breadth of our growth across our guest base was very broad. All income levels, demographic levels, it was broad. And that's because of our commitment to continue to be more and more relevant over time using the tools that Michael talked about, but really our commitment to being consumer-centric.

是的，羅比，如果我可以加 2 美分的話。我們在客戶群中的增長范圍非常廣泛。所有收入水平，人口水平，它都是廣泛的。這是因為我們承諾隨著時間的推移使用邁克爾談到的工具變得越來越相關，但實際上我們承諾以消費者為中心。

All right. Operator, with that, we're going to conclude our call today. I really appreciate everyone participating. And we look forward to talking to you soon. So thank you.

好的。接線員，這樣，我們今天的電話就結束了。我真的很感謝大家的參與。我們期待很快與您交談。所以謝謝。