Thanks, Christina.
the investments earlier, years us I ahead. COO, guests invest focus take my approach and approach with Brian will years I long perspective has work financial continue business a as to with step And confident As This we a and highlighted guest team to long-term on a performance ahead. our when our as my over experience. I'm me long-term delighting term, it with and into led both in and consumers well new serve as in reliable outstanding bringing making months and today, in the today in this role new to the differentiated we're
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Given of a guests, reliability these measures the importance for to should focus remain team. our always primary our
While we're proud of our years ahead. these and recent progress, we know we're we have the more to committed quarters room in to improve, extending and gains
product also we on to fundamentals comes best nationwide. to and our Beyond rigorous both is and at our checkout teams experience availability, made operational team experience. continue self-checkout intended This when limit decision implemented items can testing the and store change we it decision our focus in of was lanes to self-checkout. the at last full-service at to guest retail the year ensuring particularly ensure was our best after the excellence, recently practices, One stores number maintain provide possible
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times to seen changes scores our and results consistent recent in the year's relating quality with rapid checkout. and of we've from interactions at team a these satisfaction With both wait rise test, last guest with
these and the between were year of than beginning we and quarter higher For a metrics, in end the in the as the ago, increases quarter of both well. these metrics scores first saw average
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support of an better team's the the in Target really experience early of and its signing did providing proud many the on wanted compelling and a ways to to understand than in I program, the And country million new one of engaging our relaunch preparing focus the Circle to From of entire across sales up our with signing it's who more every I'm Circle store new an finally, new launch to highlight only X special team want installation job throughout first floor shout-out role our April the guests And supporting to while for measure outstanding program. the new team. members quarter. team's our success, Target for this of in effort
first performance Now expectations the let quarter year. me turn to financial our our the and for remainder of
in down average in was the down cautiously, to the of also QX, total discretionary as X.X%, reflecting impact line first X.X% decline sales transaction traffic continue sales, quarter. stores. On top in The consumers offset X.X% the partially declined in our Among was a particularly of new by X.X% comparable the drivers spend categories. sales, our comparable
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we Our first basis of which merchandising About benefit from quarter to gross from continue and in about in XX percentage margin XX rate X improvement favorable last year. from XXX about this benefit basis rates point freight where of higher than was basis and was improvement rate saw other inventory points of promotional markdown we mix higher offset rate. category points QX, savings, shrink. Also cost points
levels, federal, in year. encouraged positioned on to to the are see we've a recent QX, this theft plateau we our of were at in our theft March, counts, reach reduce results believe state the Community And inventory our As rates our in to been Financial stores. Based expectations. inventory those take physical to on I to growing that shrink our versus retail continue continue steps we counts a favorable mentioned and own Meeting at and focus local
year full margin a we gross As notably to result, most in to a shrink, related quarter. second see benefit now expect the rate
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XX sales, deleveraging saw of Altogether, we margin capital recently lower despite up a completed a slightly decline line, year increase that was pleased we're along a D&A the from by about impact driven rate basis reflecting operating increase in of ago a over number dollars projects. with sales. the rate in year, our of On an points last
Our helped enterprise outcome, our role P&L. team in played throughout These resulting this investments and in savings marketing. a in our to from continued year-over-year and promotions savings efforts pressure key efficiency offset in investments
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overall. progress in of more our of of making fulfillment us, capability to pad digital changes costs. productivity And while our in also food included already more on package reducing our delivery rooms delivered is rates across the work in and and units and save cost making fill team They improvements complexity on opportunity optimize our networks, floor efficient there's stores, distribution within gains the team back much that merchandise while the last-mile front per the and apparel general middle-mile delivery reducing
total from we I about earlier, a our position, As to continue covered. benefit continue we ago, in-stock year I which quarter the really inventory about inventory were years, than look lower quarter was mentioned XX% XXXX, just X% good those in XX% over even the while we sales of the back X improvements than already XXXX. has as feel first in ended to increased When higher to about
in per Given we'd sustainable be was in an and should largely time. that sales our see is increase an that to expect driven this inventory increase in growth our by something over store, turns something sales
our to for I reiterate deployment briefly priorities, decades. which consistent Now have turn to want and several been capital
and strategic projects in invest financial criteria. and First, that our our we business look fully meet to
within cash and of middle dividend finally, of to growth. ratings. And we our to Second, our A annual support we credit repurchase look excess our deploy limits build on decades-long dividend record the shares
billion first the a year. of $XXX $X we and track to remain $X invest quarter just CapEx under billion the priority, for was first total million, full to Regarding on
Regarding plan support dividend dividends time. to about to of the priority, we goal small a first quarter, dividend move from XX% payout the build our increases quarterly increase the second this million annual recommend X% and we on in $XXX paid a ratio year quarter, toward approve of decades-long Later our over in of a ago. Board in up record our that
Financial Regarding Meeting. shares the we priority, third the didn't Community our at shared repurchase the consistent with quarter, in I any expectation first
rapid we debt our this at throughout A financial debt the I focused As we performance that of mentioned a our the may strengthening activity metrics. and remainder XXXX expectation day, mentioned level. balance sheet as at saw ratings share recovery time, year in on maintaining for to I middle given also XXXX, while our our And resume Target's later for repurchase the have ability that
quarter on capital. our invested by on return covering my close I'll after-tax commentary the Now
An performance For into see delivered XX.X% the of teens growth to industry, trailing QX, metric months ago. our expect in a the high time. of relative business year ROIC and XX from up XX% continued is of end strong after-tax this through XX.X%, we over after-tax the return our to an
we comparable quarter range. to are quarter, year. planning Now turn I sales want X% expectations to for second of for In to in and our remainder the a the the X% second the increase the
the growth While deliver recent served us has quarters. well our the continued which time, we'd approach reflects below expect near-term it this to rate in over cautious outlook, to is
The to last line QX, range the guiding year we're bottom a build on of we've expansion we continue rate $X.XX. last to range seen of $X.XX a in few to EPS growth XX% the over profit midpoint rate of approximately On the this as over quarters. represents
in progressed properly increase to of scenarios contemplating to the the prior EPS year. and continue business For X% capture range for comparable X% our $X.XX. we're maintaining the range full and so believe our has this year, guidance environment these far the ranges We $X.XX to of given sales we're how a
to a for the continued be environment. over Brian, continues call to their the turn what dedication thank very back want to in and I I energy Before complicated team
team's impressed and I've by still win I'm and our While digging to new into leading been ingenuity inspired role desire passion, operations, together. strong my
the continue now. team. Even X, opportunity grateful from work, X, team an energizing It's or keeping is also be amazing for will and XX the the on I'm even to near navigate this operating alongside X as serve years and to future agility, with how they term the eye firmly thinking about in Target
call Now I'll Brian. over the to turn back
