Zhihan Ma

Billy said back-half AUR and any price reinvestment are already contemplated in the reaffirmed guide, with no changes from what was previously communicated.

Management noted tariff-related pricing has settled at approximately 3% and year-over-year pressure is lessening, but declined to give specific ticket/traffic guidance.

Ted confirmed HVAC will become SRS's fifth vertical with modest tuck-in acquisitions to add manufacturer geographies, while leveraging HD infrastructure for national parts distribution.

Richard attributed inventory growth primarily to GMS addition, plus higher tariff-driven costs and some year-over-year increase from accelerated delivery speed investments. Said in-stocks and inventory position are in great shape for 2026.

Ted said big ticket discretionary remains the telltale for a demand inflection and HD has not seen it yet. Positive comp in FY2025 came from other categories, not large remodel projects. Will be the key signal for a market turn.

Richard explained $2B reflects partial-year ownership during GMS's weakest seasonal period plus weather impact. GMS continues to take share across all categories.

Ted said wholesale vs retail margin structures won't dramatically change, but cross-sell synergies and operating efficiencies across larger scale will drive leverage over time.

Richard confirmed Easter shift benefited March and hurt April. Adjusting for Easter, April US comp would have been closer to 2.5% versus reported.

Richard confirmed majority of inventory increase was SRS addition. No meaningful pull-forward. Also invested in DCs to support speed initiative momentum.

Ted emphasized pro ecosystem is relatively asset-light with leased DCs and trucks, commissioned sales teams, and currently tiny trade credit exposure.

Todd said top-line fundamentals are intact but flagged a large Q4 winter-storm lap; Emily noted delivery outsized growth.

Donny walked through Q1's 65 bps gross margin gain from markups, shrink and damages, and reaffirmed confidence in the 6% to 7% long-term operating margin framework.

CEO noted Project Elevate at ~3% comp (year one, not yet cycled), Renovate at ~6%, both delivering strong returns. Highlighted 11,000 remaining US opportunities with competition not opening stores.

CEO attributed comp to both self-help execution and trade-in, noting that without Back to Basics work the trade-in customer may not have stuck. Described digital retention playbook for trade-in customers.

CEO addressed closures as test-and-learn optimization, highlighted 12,000 remaining greenfield opportunities. CFO provided specific IRR (17%) and payback (2 years) metrics.

Dilts explained the lower remodel comp lift is driven by existing stores already having higher cooler counts, reducing the incremental cooler addition. Noted IRRs still exceed new store returns. Vasos added that Project Elevate could enable touching 80-90% of the store base in 3-5 years.

Glendinning confirmed corporate SG&A ahead of plan with savings coming faster than expected. Creedon noted tax refunds from OB3 bill would benefit Dollar Tree as the best value retailer.

Creedon praised store conditions improvement under 'road to gold' initiative and noted DC position is best in recent memory heading into peak holiday season. Customer insight surveys showing positive feedback.

Creedon reaffirmed commitment to global sourcing for lowest landed cost without specifically quantifying China exposure, maintaining flexibility to shift country of origin based on cost dynamics.

Creedon explained Q3 had 75% of conversions going from 2.0 to 3.0 versus Q1 which was mostly 1.0 to 3.0, creating a natural comp lift differential. Q1 stores remain the strongest performers, Q2 second, Q3 third. Noted the company is rebalancing the 1.0-to-3.0 versus 2.0-to-3.0 mix for next year. Also acknowledged geographic mix impact with Q3 Midwest stores not generating the same pop as California and Florida.

Brandon confirmed focus on integration and deleverage over next 2 years with only small self-funded tuck-in M&A possible at FBM level.

Marvin noted FBM's ERP is the same platform being used for ADG transition and Lowe's Pro Supply, enabling accelerated IT integration.

Jim reaffirms the digital ecosystem (e-commerce + Roundel + Target Plus) is profitable and not dilutive, consistent with prior year messaging. Fiddelke adds that Drive Up adoption increases total customer spend 20-30% with store spending also rising, contradicting cannibalization fears.

Fiddelke details efficiency gains across fulfillment modes: sortation centers, Shipt-powered store delivery, and speed improvements driving both cost savings and sales.

Furner reframed the store comp, stressing stores as omni fulfillment assets (last mile for 80% of e-commerce and 100% of fast deliveries) with record and growing volume.

Rainey said advertising and membership represented little more than a quarter of Q4 operating income. Three key e-commerce profitability drivers: densification of delivery network spreading costs over more volume; over 30% of delivery customers paying extra for one hour or three hour express delivery with 77% on Christmas Eve; and newer high-margin businesses like membership and advertising with lot of runway.