Rick. have to to welcoming in your long-term team I'm and for join all earnings of in I'd shareholders. we excited for more of us growth Thanks, like you front our opportunities Brian first to the call. about as for together guests, deliver we our our work
Whether caring, reason to Every focus and center commitment members winning temporarily while store, Target by there their as fueling such Brian is CFO see together. the fully move teams hats exceptionally and wearing right a special in to to or in now COO As forward I'm mentioned, doubt distribution talented I surrounded looking only in in I'm the wearing #X that walk place And to X hat, continue day, halls results. no headquarters, I'm are the the in when COO preparing while is our to privileged day long-term growing mind I I guest-first team that role a my I'm work. operating a our the are our leaders role. that's be with the a that
of volatility the began more unprecedented highlighting focused extended years is that we've some ago. X an As than operations been retail on team fundamentals period for time, reinforcing following
staying stock points processes many while nothing improve stocks year were time and items important, the the total being lower been top than than total important quarter, our reliable guests. out going for work than encompasses And them second in on to we're effort more for in of ago. in-stock highest our had is lower even our inventory. unit year we've metrics, more May, our notable now, major Also would more total ones continue and in more were was some ago, our velocity, a to this measures out out-of-stock out stocks of storm have rapidly result the XX% than return QX more than our improving XXX Denton, more.
In than not basis of year While with of remarks.
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turns years. been happen we've expect seen always Of sales already and something our X on demand able amount has the deliver is historically, inventory inventory to business we're of right to focused our But on overall, goals, to sustain course, maintaining you'd gains we're given reliability our stronger in growing last strong. inventory categories we've where the in than the per store seen over
of focus end our experience, front in area the store most is at shopping notably the for Another team checkout.
notably our With service we've adequate self-checkout, staffing faster in to our made seeing lanes, lanes. the changes while streamline full maintain ensuring in self-service recent we times checkout we're
team changes, these been interactions guests X at times regarding wait using we've at related checkout all of engaging more checkout, purchase has last In and a continued full-service the substantial Promoter the in we've our with scores experience, lanes, improvement compared Scores addition, XX% nearly year. to with Net with our seen with with years. in more seen people our And strongest
this integrated to into our the restart a the guest also handheld of of and the more stores, serve average this a time chain up giving a members make how less a answers receive guests. have team, X quickly the highly do but to in we team our power common full ability the I providing faster and We're over devices times, us GenAI them many efficient to in new how leveraged and easier year, for our guests. members tool, minute.
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expect more in holiday tool permanent leaders helpful bring particularly stores year's telling seasonal this our than past. productive, team addition, become season, in advance more the quickly in we on are us as of helping and be members they this In will to new them new
well while efficient team and to in large in team And our unforeseen to had documented, weather-related able to events. several second important course, are help our just quality to deal maintaining the and quarter. to repeatable with processes nimble to as Of it's challenges operation, stay react a critical
perishable As damage Texas in in from a late May, that product mentioned storm significant closure site and food distribution earlier, I our a loss resulting Denton, sustained prolonged center significant at physical location.
generators, of food, in Following in members multiple for other Hurricane place successfully electronic devices. in teams operational affected Southern while storm, landfall hit quickly a team to locations kept the in end for minimize reacted open to get to take power charge When our using community distribution distribution quarter. team was and with perishable to responded facility impact, in neighbors and realigning repaired providing our the their XXX and quarter, and the supplies stores their team rushed help construction early our Texas, the the lost July, replenishment shelter food nodes, temporarily Later safe before Beryl communities. locations, quickly the and the
while homes. colleagues other roads critical meals to And each team nearby for clear to helped our of donations took organize from team of members to Our from sure disasters supplies shelter. in debris and had support core neighbors, as infrastructure, to communications cooking supplies always, care ready their deliver provide helping in supported to making To access happen. heroic to headquarters everyone emergency when at and field, maintain a the support robust that's by a we these our and efforts team displaced
events quickly occur. pallets these affected distribution to part of and thousands of which critical our when As supplies preparations, we can of be preposition network, areas deployed throughout reserve
and made in maintain the helping communities, impact $X.X far business. to headquarters support a adverse command domestic colleagues center our donations operate, continue field so and having partners. year the areas this we're and where when at in monitor proactive to also offering financial conditions proud to already our equipped that's of of disaster affect quickly global relief We communities, And million affected our and prepare other of weather in our react events course, we teams our minimize support to
Beryl, more centers Hurricane than helped donations Houston. Red up Cross American Following stand XX our evacuation in the
as they fallen and helped navigate Rubicon in clear assistance, footprint homes We also to the critical medicine medical to supplies trees, locations food, for and neighborhoods. provided homeowners project hit worked Team solar machines, disaster other to and hardest FEMA aided power supported generators the providing
in thrive, present be Forward impact. strategy knowing Target business we our guests of and of needs communities, to working the So of business. critical the and philanthropy to meet success positive serve aim assets help and to families we much Target's integrating and the to our is all business, ways sustainability to are by dedicated across our community communities address Through and meaningful the that volunteerism needs drive
So efforts, I day during want to our of both entire especially and every pause need. their times tireless team for and thank
your You company and our proud the brand. live biggest all business, serve fellow our grateful the work, love do reason members. with consumers and I'm to the where of to you in face work are everything and you the communities you our for communities team support we as of and
savings to broader our than to up in want our in local the a as just integrate ways. daily, center pivot beyond it's finding which expected network average. growth month, a to sortation on sort processed of where top center of while multiple of ways faster through frees the these quick is A this to And the require to orders expected speeds delivery But And than opening benefit, notably, continue XXth operating and doesn't packages our faster of is strategy, critical benefit those Detroit update a XX,XXX aspect of see it network XXXX, to number the serves, we're consumers. to you sortation facilities, and than market arrive footprint. we're center reach our process business in this centers ramp market, delivering as that are more this a By our increase we're these center this XX% day facility network. a benefits, while them stores smaller-than-average strategy I as in new about our in speed now our their continue in up existing source into dollars average. our continues X So lower why excited provide center from a that labor capacity, delivery serve the costs processing up million capability. than space sortation to locations in sort opening all direct well.
With in expanding On can more unit more
For in have the eligible a our in that our Detroit center year, year next-day number Altogether flow processed this be XX% of the feeding packages center, more ago. market. recently sortation opened increasing will centers example, than for delivery Chicago sortation packages
results. to So financial our now turn I second quarter want to
Brian earlier, As increase year offset compared was a This decline our decrease traffic. increase average average X% price traffic highlighted driven partially in a selling when in with was included which sales a ago. by QX entirely ticket, comp by our in the
guests to Fourth holiday later quarter. Day As Brian shop seasonal the week Memorial to in mentioned, around our our Circle around as leading and recent Target well strength most July moments, as continue the the of
strongest quarter. those basis. July, very in months sales importantly, reported between Most months comp were on X and were quarter, the of and traffic in X grew a Within trends similar the all June
benefit strong revenue our in in sales sales, of by primarily growth comp stores quarter in business. non-mature driven ad the X.X% Roundel growth our and total from other double-digit reflected growth second revenue, Beyond
quarter rate our a higher XX.X% strategies, this second driven work. basis ongoing was year the XX points than efficiency XXX points of our about included which benefit by margin basis Our gross About of merchandising improvement was of ago.
points digital cost from by was pressures We which largely category offset from also sales saw XX mix, benefit of about basis fulfillment and chain. supply
gross reflected shrink, from XX of rate basis first with point points basis lower XX margin quarter. Finally, in our inventory benefit the benefit about compared
this assumes in lower results store quarter, increase of QX gross better-than-expected resulting second a counts, year-over-year costs, inventory our our what bigger-than-expected quarter. we've the guidance benefit we benefit our shrink expecting that half Based in in just but seen will in would from rate benefit expect the from now QX. will shrink recent financial magnitude the While margin we're also experienced most of accounts, on be than updated benefit these that less
year were QX, already we're given year. a costs shrink for benefit financial flat will we ago, the seeing approximately expecting And to last be
encouraging last we'll our ahead, our sustainable it's in levels to the that increase shrink progress, continue given While absorbed to see move years. years the the steep business in to down has work more over this shrink X rates
last headwinds about Our to second reflected last basis XX.X% significant by was margin of back was of increase multiple profitability lower partially XXX year our SG&A QX year efficiency higher cost our of the disciplined build about basis our management from a X.X% continued encountered of along investments expense ago. quarter work our This continued business, over with higher we operating XX rate continue the were years. Overall, our savings enterprise. we've rate points the expenses, couple than and parts cost increases as which in from throughout points remodel than team, offset in
continue Regarding good our about inventory, our position. to feel we
year balance As I mentioned than lower earlier, QX ending slightly ago. inventory on was a sheet the
volatility we've experienced X-year comparisons hard However, to interpret. can since given be began, all the the of pandemic
rates positioned As half enter inventory growth to our of comparison And quarter, perform about appropriately the the XX% our we're those grown such, years, to for the X second and we sales XXXX. relative that over compare back if it you'll both useful you year. we that have find that ending view see back reinforcing still as
to briefly to like reiterate and I'd long-standing priorities. capital our Now deployment turn
look we our and financial business that fully meet and First, criteria. invest our strategic in to projects
Next, record we cash any build dividend these share limits increasing time available and And of credit in to excess our uses finally, we XX-year middle our after by of on within engaging A to look repurchases look support over the ratings. than the the return dividend. more X first annual that's
half first through and Regarding expenditures range. CapEx $X year to capital to the first in just the we've priority, billion the the $X.X billion full of billion expect allocated continue $X year
million the stock. of Regarding to the shares of second finally, repurchases in in returned our million QX, dividends year. returned about shareholders of to form representing priority, million last we $XXX to quarter, we allocating in X.X And over second the growth $XX share $XXX million retire
get and were months over XX of this repurchases quarter. Given cash last to our the balance we sheet seen strengthen the in simultaneous back profitability and to our we've the flow, improvements to work team happy our
We the the XXXX ahead. years in half expect capacity of to have continued back repurchase in and
year capital, results of ago. my quarter ROIC now is XX.X% measure an a higher the to X our So important nearly want the and I after-tax of by on on covering our second end quality percentage the Through quarter, commentary after-tax in return financial ending of invested than our was XX points months investments. both which our the capital
While of into teens growth this the continued plans time. our this is over already financial a very metric strong after-tax high envision return, long-term
to backdrop, has our third our and our And and far of this the year. quarter year the and same, like consumer possibilities the remains full the expectations exceeded performance turn while I'd range to expectations of maintaining high. prudent Now so team's in the for the our that the largely macroeconomic a view in us business. way experience and is Against backdrop outlook, our over consumer last has to our several while position our shown unusually data the business agility, remains years the best that
the stronger. of our and a if taken be guidance, respond remains business forward-looking ready to we've such, As team pace to out our turns measured our approach to
remains third in remains comp range our as context, and we're adjusted GAAP quarter of that of possibilities range, for With X% our put year the for in year. to at baseline And growth quite comparable same and breadth EPS growth wide, us would guidance the for season the the planning range full plan considerations to of the $X.XX half while X% X% to sales these $X.XX. X% lower full fall and the
the insight on adjusted assumptions: GAAP basic into to has of our EPS the aspirations in prior the XX growth strong next resulting and tough making year the faster our our already of financial compared decisions, delivered range our environment, of QX our growth first operating are in baseline $X even our also to environment reliability year, year, traffic.
And in and line to range healthy years. the line we've consumers earlier At a on core, top second in the Community in those full we raised expectations trade-offs our value value our expanded $X.XX top the importantly, this and our Meeting with financial their to rate. light on margin bottom based X $X.XX.
At aspirations $X.XX are guest the challenging their However, where half level profitability Financial an delivered on even quarter, newness, performance appropriate and reaching guests, team in of line. in over and focused growth In spending provided we business beyond
the step was team. XX%. which in first We much a with more the time which work a was only EPS this while of are faster and than a period really revenue than us. the At same total lot proud line, over the XXXX the growth X-year in reflect with our as these second outstanding a work dedication hard have of growth top of that quarter first results, specifically, longer our ahead baseline, XX% of of grew EPS more More and and quarter we on the time, journey
both Our initiatives, to additional years the based expect efficiency those year see opportunity inventory of ahead. and the ongoing further shrink, remainder of impact implies of work in the on growth to expansion And for guidance the progress of metrics. continued reduce we our
we're of it happen. in place to clear right team and how there make the a get vision have to We going
to With the Brian. over call turn back that, I'll
