蓋璞 (GPS) 2015 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen.

下午好，女士們，先生們。

My name is Kevin, and I will be your conference operator today.

我叫凱文，今天我將擔任您的會議接線員。

At this time, I would like to welcome everyone to the Gap Incorporated first-quarter 2015 conference call.

在這個時候，我想歡迎大家參加 Gap Incorporated 2015 年第一季度電話會議。

(Operator Instructions)

（操作員說明）

I would now like to introduce your host, Jack Calandra, Senior Vice President of Investor Relations.

我現在想介紹一下您的主持人，投資者關係高級副總裁 Jack Calandra。

Good afternoon, everyone.

大家下午好。

Welcome to Gap Inc.'s first-quarter 2015 earnings conference call.

歡迎參加 Gap Inc. 2015 年第一季度財報電話會議。

Before we begin, I'd like to remind you that the information made available on this webcast and conference call contains forward-looking statements.

在我們開始之前，我想提醒您，本次網絡廣播和電話會議上提供的信息包含前瞻性陳述。

For information on factors that could cause our actual results to differ materially from the forward-looking statements, as well as reconciliations or descriptions of measures we are required to reconcile to GAAP financial measures, please refer to today's earnings press release, as well as our most recent annual report on Form 10-K and our subsequent filings with the SEC, all of which are available on gapinc.com.

有關可能導致我們的實際結果與前瞻性陳述產生重大差異的因素的信息，以及我們需要與 GAAP 財務措施相協調的措施的對賬或描述，請參閱今天的收益新聞稿，以及我們的有關 10-K 表格的最新年度報告以及我們隨後向 SEC 提交的文件，所有這些都可在 gapinc.com 上獲得。

These forward-looking statements are based on information as of May 21, 2015, and we assume no obligation to publicly update or revise our forward-looking statements.

這些前瞻性陳述基於截至 2015 年 5 月 21 日的信息，我們不承擔公開更新或修改我們的前瞻性陳述的義務。

Joining us on the call today are CEO Art Peck, and Executive Vice President and CFO Sabrina Simmons.

今天加入我們電話會議的是首席執行官 Art Peck 和執行副總裁兼首席財務官 Sabrina Simmons。

Sabrina will be using slides to supplement her remarks, which you can view by going to the Investor Relations section at gapinc.com.

Sabrina 將使用幻燈片來補充她的評論，您可以前往 gapinc.com 的“投資者關係”部分查看。

With that, I'd like to turn the call over to Art.

有了這個，我想把電話轉給 Art。

Thanks, Jack, and good afternoon, everyone.

謝謝，傑克，大家下午好。

I am pleased to be here speaking to you now in my second earnings call as CEO.

我很高興現在在我作為 CEO 的第二次財報電話會議上與您交談。

The most important thing I want to do today is reemphasize our earnings guidance for the year.

我今天想做的最重要的事情是再次強調我們今年的盈利指引。

You have, I'm sure, our press release in front of you.

我敢肯定，你面前有我們的新聞稿。

You have the details underneath that.

你有下面的細節。

And after I am done, I will hand it over to Sabrina Simmons, who will take you through the specific detail.

完成後，我會將其交給 Sabrina Simmons，他將帶您了解具體細節。

And obviously, we will have Q&A at the end of this call.

顯然，我們將在本次電話會議結束時進行問答。

We will talk about our first-quarter results, and I'll go a little bit deeper into what's been going on over the last three months.

我們將討論我們的第一季度業績，我將更深入地了解過去三個月的情況。

There are three issues that really impacted the first quarter.

有三個問題真正影響了第一季度。

Two of those are macro factors, which we have spoken to you about before, in terms of foreign exchange and the West Coast port situation.

其中兩個是宏觀因素，我們之前和大家談過，外彙和西海岸港口情況。

Sabrina will spend a little bit more time on that.

Sabrina 會在這上面多花點時間。

I really want to dive in on the underlying results of our three global brands and, specifically, the performance of our women's businesses.

我真的很想深入了解我們三個全球品牌的基本成果，特別是我們女性業務的表現。

As we have said, and we continue to see, we have had an exceptionally well-performing women's business at Old Navy, which has driven great profitable growth.

正如我們所說並且我們將繼續看到，我們在 Old Navy 的女性業務表現異常出色，這推動了巨大的盈利增長。

Product acceptance at Gap in the women's business has been tough, and we are focused on making it happen.

Gap 在女性業務中的產品接受度一直很艱難，我們致力於實現這一目標。

And at Banana Republic, it's a work in process, and we have work to do there as well.

在香蕉共和國，這是一項正在進行的工作，我們也有工作要做。

Let me start first by spending a few minutes on Old Navy.

讓我先花幾分鐘了解一下 Old Navy。

Obviously, it's a very good story -- a story that we are very pleased with, and a story that we have confidence in that it's going to continue to repeat itself on a going-forward basis.

顯然，這是一個非常好的故事——一個我們非常滿意的故事，一個我們相信它會在未來繼續重演的故事。

Three years of excellent performance and, most importantly, underneath the covers, growth that is being driven in a very high-quality way with a very nice margin story underneath it.

三年的出色表現，最重要的是，在幕後，以非常高質量的方式推動了增長，其背後還有一個非常好的利潤故事。

Q1 comp was a women's story.

Q1 comp 是一個女性的故事。

And I am saying that in particular because, as we have struggled with our women's business, in Gap, as an example, Old Navy is an excellent example where we continue to get women's right, season after season.

我之所以這麼說，特別是因為，當我們在女性業務上苦苦掙扎時，以 Gap 為例，Old Navy 是一個很好的例子，我們在一個賽季又一個賽季繼續爭取女性的權利。

And we are very pleased with the performance that we are seeing with on-brand, on-trend product in our stores.

我們對我們商店中的品牌、流行產品的表現感到非常滿意。

I need to point out that this is a combination of factors.

我需要指出，這是多種因素的結合。

It is clearly a team working well together, led by Stefan, that is delivering this performance.

顯然，在 Stefan 的帶領下，一個合作良好的團隊正在提供這種表現。

But it is also underlying process changes that we have made in the way that we are running the Business, and the way that we are bringing product to market that is delivering the consistency that we are seeing.

但這也是我們在運營業務的方式以及我們將產品推向市場的方式中所做的基本流程更改，從而實現了我們所看到的一致性。

I have mentioned this before, but I need to mention it again, which is: We are taking these changes, and in some cases largely transplanting them, into our other businesses, and that they are proven inside of Old Navy, and they have been delivering this kind of performance.

我之前提到過這一點，但我需要再次提及，那就是：我們正在接受這些變化，並且在某些情況下很大程度上將它們移植到我們的其他業務中，並且它們在 Old Navy 內部得到了證明，並且它們已經提供這種性能。

Again, we have a strong women's business there, but it's been followed by a pretty strong business inside the rest of the box as well, across men's, kids and baby.

同樣，我們在那裡擁有強大的女性業務，但緊隨其後的是在其他領域也有相當強大的業務，包括男裝、兒童和嬰兒。

And it's a thing of beauty when Old Navy is firing on all cylinders, and has now for several seasons running.

當老海軍火力全開時，這是一件很美的事情，現在已經運行了幾個賽季。

On the flip side, I continue to be disappointed, but not surprised, by Gap's performance.

另一方面，我繼續對 Gap 的表現感到失望，但並不感到驚訝。

We have had a women's business challenge now for several seasons running.

我們已經連續幾個賽季面臨女性商業挑戰。

I believe we have diagnosed it correctly, having to do with being off-brand, in some cases off-trend, and I can promise you that the team is all over it.

我相信我們已經正確地診斷了它，這與脫離品牌有關，在某些情況下脫離趨勢，我可以向你保證，團隊已經全力以赴。

In the last call that we had, I mentioned the hiring of Wendi Goldman.

在我們最後一次通話中，我提到了聘請文迪高盛。

Wendi has hit the ground running.

文迪已經開始行動了。

She is a highly collaborative, skilled leader, working with the team.

她是一位高度協作、技能嫻熟的領導者，與團隊一起工作。

And I've been really pleased so far the results the whole team is producing, as they have focused on holiday, and obviously on spring.

到目前為止，我對整個團隊正在產生的結果感到非常高興，因為他們專注於假期，顯然是在春天。

Jeff really has three priorities right now, and I want to underline and emphasize those to you.

傑夫現在確實有三個優先事項，我想向您強調和強調這些。

We are in season every day, and we are managing the Business as aggressively as we can to get every penny out of the Business.

我們每天都處於旺季，我們正在盡可能積極地管理業務，以從業務中獲得每一分錢。

In relative terms, kids and baby is performing better, and men's is performing better.

相對而言，兒童和嬰兒表現更好，男性表現更好。

But to be clear, I am not happy and Jeff is not happy with the entire performance of the brand, and we are committed to turning it around.

但需要明確的是，我不高興，傑夫對品牌的整體表現也不滿意，我們致力於扭轉局面。

On top of managing in season, we are obviously working extremely hard to make every improvement that we can to the outlying seasons, including holiday and, most importantly, spring.

除了在季節管理之外，我們顯然正在非常努力地為偏遠的季節做出一切可能的改進，包括假期，最重要的是春天。

On top of that, I said I was impatient.

最重要的是，我說我很不耐煩。

We are working very hard to change the product processes -- a la what we are doing at Old Navy -- in order to get Gap to a more consistent, on-trend, on-brand footing.

我們正在努力改變產品流程——就像我們在 Old Navy 所做的那樣——以使 Gap 獲得更一致、更符合趨勢、更符合品牌的基礎。

And I have to say, much of the work that the team has done there to realign the team on the aesthetic of the brand is very, very encouraging.

我不得不說，團隊在那里為重新調整團隊對品牌美感所做的大部分工作都非常非常令人鼓舞。

Banana Republic is a mixed bag.

香蕉共和國是一個混合包。

This was Marissa's first collection, showing up later in the quarter.

這是 Marissa 的第一個系列，在本季度晚些時候出現。

It has had a couple of very positive impacts in terms of reestablishing some fashion credibility for the brand, and the relevance of the brand.

在重建品牌的時尚信譽和品牌的相關性方面，它產生了一些非常積極的影響。

But we didn't get it 100% right.

但我們並沒有做到 100% 正確。

And this is not to be excused, but perhaps expected, as you are bringing a new designer and a new leadership team together.

這不能被原諒，但也許是意料之中的，因為你正在將一位新設計師和一個新的領導團隊聚集在一起。

The color palette was pretty stark between black and white; not enough color in print and pattern for the season that we are in.

調色板在黑白之間非常鮮明。我們所處的季節的印刷和圖案顏色不足。

And we are still working to buy an assortment that is both commercial and fashion-oriented.

我們仍在努力購買兼具商業性和時尚性的產品系列。

Relatively speaking, the men's business is stronger.

相對而言，男裝業務要強一些。

And it's not that the women's business is weak, but we have not hit the stride, nor delivered the commercial results; while at the same time we have established some fashion credibility.

並不是說女裝業務薄弱，而是我們沒有大踏步前進，也沒有取得商業成果；同時我們也建立了一定的時尚信譽。

And that is our job, and we are focused on making it happen.

這是我們的工作，我們專注於實現它。

In a moment, I will turn it over to Sabrina.

一會兒，我會把它交給薩布麗娜。

What I wanted to do is offer a few comments in advance about how Sabrina and I are working together, and the commitment that we very much share together.

我想做的是提前提供一些關於我和薩布麗娜如何一起工作的評論，以及我們非常共同的承諾。

Obviously, a big part of our story over the last several years has been the fact that we are committed to a responsible capital structure and, as this Company continues to generate a significant amount of cash, we are committed to distributing net excess cash to the benefit of our shareholders.

顯然，過去幾年我們故事的很大一部分是我們致力於建立負責任的資本結構，並且隨著這家公司繼續產生大量現金，我們致力於將淨超額現金分配給我們股東的利益。

It's important for me to emphasize that Sabrina and I are highly aligned on continuing that going forward, while at the same time, responsibly reinvesting in the Business.

對我來說重要的是要強調，薩布麗娜和我高度一致地繼續向前發展，同時負責任地對業務進行再投資。

Sabrina, let me pass it to you.

薩布麗娜，讓我把它傳給你。

Thank you, Art.

謝謝你，藝術。

Good afternoon, everyone.

大家下午好。

As anticipated, our first-quarter results were impacted by foreign exchange headwinds and delayed receipts due to the West Coast port issues.

正如預期的那樣，我們的第一季度業績受到外匯逆風和西海岸港口問題導致收貨延遲的影響。

Despite these dynamics, we're pleased that Old Navy delivered another strong quarter, on top of three years of growth.

儘管存在這些動態，但我們很高興 Old Navy 在三年增長的基礎上又實現了強勁的季度。

As Art mentioned, we are focused on taking the steps necessary to drive improvements and greater consistency in our other brands, while continuing to make progress on our long-term objectives.

正如 Art 所提到的，我們專注於採取必要的步驟來推動我們其他品牌的改進和更大的一致性，同時繼續在我們的長期目標上取得進展。

Operating income for the first quarter was $386 million versus $443 million last year.

第一季度的營業收入為 3.86 億美元，而去年為 4.43 億美元。

Net earnings were $239 million.

淨收益為2.39億美元。

On a reported basis, earnings per share were $0.56, down about 3% versus $0.58 last year.

根據報告，每股收益為 0.56 美元，比去年的 0.58 美元下降約 3%。

It's important to note that our reported earnings per share were negatively impacted by foreign exchange.

值得注意的是，我們報告的每股收益受到外彙的負面影響。

We estimate that foreign exchange reduced our reported earnings-per-share growth rate by about 3 percentage points.

我們估計外匯使我們報告的每股收益增長率降低了約 3 個百分點。

Sales for the first quarter were also impacted by foreign exchange and the port issues.

第一季度的銷售也受到外彙和港口問題的影響。

As reported, first-quarter sales were $3.7 billion, down 3% versus last year.

據報導，第一季度銷售額為 37 億美元，比去年下降 3%。

The translation of foreign revenues into dollars negatively impacted our reported net sales by about $90 million in the first quarter.

將外國收入轉換為美元對我們報告的第一季度淨銷售額產生了約 9000 萬美元的負面影響。

On a constant-currency basis, net sales were down about 1%.

按固定匯率計算，淨銷售額下降了約 1%。

Regarding the port impact, there is no meaningful change to our first-half estimate of $0.13.

關於港口影響，我們對上半年 0.13 美元的估計沒有有意義的變化。

As a reminder, first-quarter sales were impacted by having fewer units available for sale.

提醒一下，第一季度的銷售受到可供出售的單位減少的影響。

We expect that second quarter will be impacted by late units that will likely be sold at lower margins.

我們預計第二季度將受到可能以較低利潤率出售的後期單位的影響。

Total sales and comps by division are listed in our press release.

我們的新聞稿中列出了按部門劃分的總銷售額和收入。

Moving to gross margin, first-quarter gross margin was down 100 basis points to 37.8%.

轉向毛利率，第一季度毛利率下降 100 個基點至 37.8%。

Merchandise margins were about flat, driven by strong performance at Old Navy, offset by the impact of foreign exchange, as well as disappointing performance at Gap Brand.

商品利潤率基本持平，受 Old Navy 強勁表現的推動，但被外匯影響以及 Gap Brand 令人失望的表現所抵消。

Rent and occupancy deleveraged 100 basis points.

租金和入住率降低了 100 個基點。

In the face of challenging sales performance, we managed SG&A tightly.

面對充滿挑戰的銷售業績，我們嚴密管理SG&A。

First-quarter total operating expenses were $996 million, down $27 million from the prior year, driven by foreign exchange favorability.

受外匯優惠的推動，第一季度總運營費用為 9.96 億美元，比上年減少 2700 萬美元。

Marketing expenses were down about $7 million versus last year to $136 million.

與去年相比，營銷費用減少了約 700 萬美元，至 1.36 億美元。

As a percent of sales, total operating expenses were 27.2%, and deleveraged about 10 basis points versus last year.

作為銷售額的百分比，總運營費用為 27.2%，與去年相比去槓桿化了約 10 個基點。

As a reminder, in Q2 we will lap last year's gain on sale of nearly $40 million.

提醒一下，在第二季度，我們將超過去年近 4000 萬美元的銷售收益。

Therefore, we expect greater deleverage in Q2 versus Q1.

因此，我們預計第二季度將比第一季度更大幅度地去槓桿化。

Regarding the balance sheet and cash flow, inventory dollars per store were up about 4% at the end of the first quarter.

在資產負債表和現金流方面，每家商店的庫存美元在第一季度末增長了約 4%。

As anticipated, delayed receipts due to the West Coast port situation resulted in higher in-transit inventory levels at the end of the first quarter.

正如預期的那樣，由於西海岸港口情況導致收貨延遲導致第一季度末在途庫存水平較高。

We expect year-over-year inventory dollars per store at the end of the second quarter to be up slightly versus last year, as we focus on selling through these late receipts, while trying to maximize margin.

我們預計第二季度末每家商店的存貨美元同比將比去年略有上升，因為我們專注於通過這些遲到的收據進行銷售，同時試圖最大限度地提高利潤率。

As a reminder, last year's inventory per store was up only 2% in Q2 versus up 7% at the end of Q1.

提醒一下，去年每家商店的庫存在第二季度僅增長了 2%，而在第一季度末增長了 7%。

For the quarter, free cash flow was an inflow of $61 million.

本季度，自由現金流為 6100 萬美元。

Underscoring our commitment to distribute excess cash to shareholders, we distributed more than 5 times our free cash flow, or $329 million this quarter.

為了強調我們向股東分配超額現金的承諾，我們分配了超過 5 倍的自由現金流，即本季度的 3.29 億美元。

This includes $230 million to repurchase 5.6 million shares, resulting in a quarter-end share count of 419 million.

這包括以 2.3 億美元回購 560 萬股股票，導致季度末股票數量為 4.19 億股。

Regarding capital expenditures and store count, first-quarter capital expenditures were $150 million.

關於資本支出和店鋪數量，第一季度資本支出為 1.5 億美元。

We opened 29 Company-operated stores on a net basis, and ended the quarter with 3,309 stores.

我們在淨基礎上開設了 29 家公司自營門店，並在本季度結束時擁有 3,309 家門店。

Store count and square footage are listed in our press release.

我們的新聞稿中列出了商店數量和麵積。

And now I'd like to share our outlook for the rest of the year.

現在我想分享我們對今年剩餘時間的展望。

Our first-quarter performance was broadly in line with our expectations at the time we provided our full-year guidance in February.

我們第一季度的業績與我們在 2 月份提供全年指導時的預期大致相符。

Therefore, we are reaffirming our full-year earnings-per-share guidance range of $2.75 to $2.80.

因此，我們重申全年每股收益指導範圍為 2.75 美元至 2.80 美元。

For the full year, all other guidance metrics remain substantially unchanged.

全年，所有其他指導指標基本保持不變。

In closing, as we enter the second quarter we will continue to focus on levers that we can control, while we work to deliver compelling product assortments across all of our brands.

最後，隨著我們進入第二季度，我們將繼續專注於我們可以控制的槓桿，同時我們努力為我們所有品牌提供引人注目的產品組合。

Thank you.

謝謝你。

And now I'll turn it back over to Jack.

現在我會把它還給傑克。

That concludes our prepared remarks.

我們準備好的發言到此結束。

We will now open up the call to questions.

我們現在將打開提問電話。

We'd appreciate limiting your questions to one per person.

我們將不勝感激將您的問題限制為每人一個。

Randy Konik with Jefferies.

蘭迪·科尼克（Randy Konik）與傑富瑞（Jefferies）。

Sorry about that.

對於那個很抱歉。

Phone issues here.

電話問題在這裡。

Hey.

嘿。

How are you?

你好嗎？

Good.

好的。

Art, first on the -- let's dive right into right on the Gap.

藝術，首先是——讓我們直接進入 Gap。

You talked a little bit about the relative better performance around kid and baby and men's.

你談到了在兒童、嬰兒和男士方面相對較好的表現。

Relative to the traffic of what you are seeing at Banana and the mall, is it more -- is it truly a traffic issue conversion issue?

相對於你在 Banana 和商場看到的流量，是不是更多——這真的是一個流量問題轉換問題嗎？

Is the mom going in there for the baby but just saying that these clothes -- I can't buy this?

媽媽是不是為了孩子進去，只是說這些衣服——我買不到這個？

Just trying to get a perspective on what is truly the problem there.

只是試圖了解那裡真正存在的問題。

And then as a relates to your perspective on the women's side, is it -- it sounds like it is a combination of inconsistent fit, lack of color, bad marketing -- or not the best marketing, what have you.

然後，作為與您對女性方面的看法有關的問題，是不是-聽起來像是不合身，缺乏色彩，不良營銷的組合-或者不是最好的營銷，你有什麼。

Just want to get your perspective on what -- which of these things are most important to improve, which can be turned the fastest, et cetera.

只是想了解您對哪些方面的看法- 其中哪些是最重要的改進，哪些可以最快地轉變，等等。

Thanks.

謝謝。

Randy, it's the same thing.

蘭迪，同樣的事情。

I think we've been, and I've been, pretty consistent in talking about, which is we know we have problems in the women's business.

我認為我們一直，而且我一直在談論，我們知道我們在女性業務中存在問題。

We've diagnosed it.

我們已經確診了。

We've diagnosed it because you can go in there and look at it.

我們已經診斷出來了，因為你可以進去看看。

I spend time in stores.

我花時間在商店裡。

I talk to customers.

我與客戶交談。

I watch what customers buy.

我看顧客買什麼。

We look at our product's acceptance and the issues are clear and have been clear for several seasons.

我們查看我們產品的接受度，問題很明確，並且已經明確了幾個季節。

And so -- and it is a combination of all of the above, which is we've got -- we are off-trend and, in some cases, way off the brand.

所以 - 它是上述所有內容的組合，這是我們所擁有的 - 我們偏離趨勢，在某些情況下，遠離品牌。

We have some quality and fit issues where we made some choices.

我們有一些質量和適合性問題，我們做出了一些選擇。

And the issue is that when the women's business -- which is why I am focused on the women's business -- when the women's business isn't working, it does, in a brand like Gap, which is obviously duel gender and then whole family, have a negative halo on the rest of the box.

問題是，當女性業務——這就是我專注於女性業務的原因——當女性業務不起作用時，它會在像 Gap 這樣的品牌中發揮作用，這顯然是性別對決，然後是整個家庭，在盒子的其餘部分有一個負光環。

But we are actually getting very good customer feedback on our kids and baby business.

但實際上，我們的兒童和嬰兒業務獲得了非常好的客戶反饋。

The men's business continues to be relatively strong.

男裝業務繼續保持相對強勁。

And so it's why when I have been working with Jeff and the team, it's been prioritize the women's business because as it halos negatively when it's not working, it has the same halo affect positively when it is working.

這就是為什麼當我與 Jeff 和團隊合作時，它一直優先考慮女性業務，因為當它不工作時它會產生負面光環，而當它工作時它會產生相同的光環影響。

And I'm actually -- I'm pretty encouraged by what I see going forward.

我實際上 - 我對我所看到的未來感到非常鼓舞。

I can even look at the holiday assortment, which is largely landed now, and some of the sort of obvious mistakes that we've made, we have -- they are gone from the line.

我什至可以看看現在大部分已經登陸的假日分類，以及我們犯過的一些明顯的錯誤，我們已經 - 他們已經離開了。

We've actually taken the step of canceling some styles that we had that we knew were just not salable, which is an appropriate thing to do as well, which we have been able to do.

實際上，我們已經採取措施取消了一些我們知道無法銷售的款式，這也是一件合適的事情，我們已經能夠做到。

So from that standpoint, again, same thing I'm saying before, team heads down working on the women's assortment and getting it back on track as much as we can do in holiday, acknowledging it was mostly bought, and then spring being a no excuses moment.

所以從這個角度來看，同樣的事情，我之前說過，團隊低頭研究女裝系列，並在假期盡可能多地讓它回到正軌，承認它主要是買的，然後春天就不行了藉口時刻。

Thanks.

謝謝。

John Morris with BMO Capital Markets.

BMO 資本市場的約翰·莫里斯。

Thanks.

謝謝。

Good afternoon, everybody.

大家下午好。

Art, maybe if you could give us a little bit about your philosophy on handling marketing and marketing spend go forward.

藝術，也許您可以向我們介紹一下您在處理營銷和營銷支出方面的理念。

I am sure we will hear from Sabrina, as well, in terms of the thoughts about the numbers.

我相信我們也會從薩布麗娜那裡聽到關於數字的想法。

But I wanted to get a little bit on the philosophy.

但我想了解一點哲學。

We saw that you pulled back a little bit in the quarter and what can we expect and where are you thinking about allocating it by brand and your philosophy around that?

我們看到您在本季度有所回落，我們可以期待什麼，您在哪裡考慮按品牌和您的理念分配它？

Thanks.

謝謝。

The simplest philosophical statement that is easiest to make is that when you are not proud of your product, you are not going to be out there putting a lot of marketing behind the business.

最容易做出的最簡單的哲學陳述是，當您不為自己的產品感到自豪時，您就不會在業務背後投入大量營銷。

And that is exactly the strategy that I followed back in 2011 when we looked forward down the pipeline, didn't feel good about the product and, consequently, pulled back on a lot of the working media spend that we had in place.

這正是我在 2011 年採用的策略，當時我們展望管道，對產品感覺不好，因此，我們撤回了很多工作媒體支出。

And we are doing some of that now as well.

我們現在也在做一些這樣的事情。

The other side of that is I am feeling like we are really getting our returns in the marketing spend that we have at Old Navy.

另一方面，我覺得我們真的從 Old Navy 的營銷支出中獲得了回報。

And when I can see the returns and it can help drive the business, I'm happy to put money into the business as well.

當我看到回報並且它可以幫助推動業務時，我也很樂意將資金投入到業務中。

So it's really about placing smart bets, not just sticking with a marketing plan or anything like that.

所以這真的是關於下聰明的賭注，而不僅僅是堅持營銷計劃或類似的東西。

So expect us to be tight and, as the product it's better, expect us to then start putting a little bit of pressure on the business.

因此，期望我們變得緊張，並且作為產品更好，期望我們隨後開始對業務施加一點壓力。

But you correctly have seen that we have pulled back and we will continue to do that until we feel like there is an opportunity to really tell a story.

但是您正確地看到我們已經退縮了，我們將繼續這樣做，直到我們覺得有機會真正講述一個故事。

And the second issue is, and this is a topic broadly separate from the current performance of the business that both Sabrina and I are very focused on right now, we have over a long period of time generally spent more than many of the competitors out there in terms of marketing.

第二個問題是，這是一個與我和薩布麗娜目前都非常關注的業務表現大相徑庭的話題，我們在很長一段時間內通常比許多競爭對手花費更多在營銷方面。

And I think we should be getting more out of our marketing dollar than we are at the end of the day.

而且我認為我們應該從我們的營銷資金中獲得比一天結束時更多的收益。

Sabrina, do you want to add anything to that?

薩布麗娜，你想補充什麼嗎？

Yes.

是的。

I was just going to add to be helpful, which underscores what Art said, is in the quarter, as you might imagine with Old Navy positive comping, they are not down at all in marketing dollars.

我只是想補充一點，這強調了 Art 所說的，在本季度，正如你可能想像的那樣，在 Old Navy 的積極配合下，他們的營銷資金並沒有下降。

In fact, they are up.

事實上，他們已經起來了。

And the improvement comes a little bit from everywhere else where we are not as happy.

改進來自我們不那麼高興的其他地方。

And it also includes, by the way, I should say, Piperlime because we closed that in the quarter.

順便說一下，它還包括 Piperlime，因為我們在本季度關閉了它。

And so we are not marketing behind that.

所以我們不是在這背後進行營銷。

And then with regard to the second quarter, I would just say there is not going to be any radical change because it's likely to follow the same pattern as Q1.

然後關於第二季度，我只想說不會有任何根本性的變化，因為它可能會遵循與第一季度相同的模式。

So I would look at some thing starting as -- last year is a good starting point to the second quarter.

所以我會從一些事情開始——去年是第二季度的一個很好的起點。

Okay thanks.

好的謝謝。

Good luck.

祝你好運。

Thanks.

謝謝。

Oliver Chen with Cowen and Company.

奧利弗·陳與 Cowen and Company。

Hi.

你好。

Thank you.

謝謝你。

I have a broader question about how you are feeling about supply chain and test, read and react and manage inventories and how this will work in terms of your strategic planning.

我有一個更廣泛的問題，關於您對供應鍊和測試、閱讀、反應和管理庫存的感受，以及這將如何在您的戰略規劃方面發揮作用。

And then I do think we are observing some newness on the trend front in the marketplace, from our perspective.

然後我確實認為，從我們的角度來看，我們正在觀察市場趨勢前沿的一些新事物。

I'm just wondering what vehicles might be best for you to try to capitalize upon that newness factor that seems to be happening in some bottoms and tops.

我只是想知道哪些車輛可能最適合您嘗試利用似乎在某些底部和頂部發生的新因素。

So the story on supply chain is, as we have been telling it, that we are continuing to push on it on a number of the elements, on platform fabric, which enables us to get back into season very quickly on some of the test and respond that we have been doing.

因此，正如我們一直在講述的那樣，關於供應鏈的故事是，我們將繼續在平台結構上的一些元素上推動它，這使我們能夠在一些測試和回應我們一直在做的事情。

Old Navy is furthest ahead and realizing this.

Old Navy 遙遙領先，並意識到了這一點。

With the changes that have taken place, obviously, and the challenges of the business of Gap, changes in leadership, challenges in the business -- those two businesses lag.

顯然，隨著已經發生的變化，以及 Gap 業務的挑戰、領導層的變化、業務中的挑戰——這兩項業務都滯後了。

Banana is probably in the middle and Gap is furthest behind.

Banana 可能位於中間，而 Gap 則位於最後面。

But I can say, quite confidently, is that as we have implemented it, it's very clear that it's having a positive impact and it is the right thing to do.

但我可以非常自信地說，當我們實施它時，很明顯它正在產生積極的影響，這是正確的做法。

And then the question really is scaling it and continuing to scale it as fast as we can.

然後問題真的是擴展它並儘可能快地繼續擴展它。

And so -- and we are using this in some cases to do exactly what you talked about with respect to a trend out there that we see or something like that.

所以 - 在某些情況下，我們正在使用它來完全按照你所說的關於我們看到的趨勢或類似的東西來做。

We will put a set of silhouettes in in bottoms and we will see which sells and allows us to go cut more aggressively and respond more quickly into the silhouettes that are selling right now.

我們將在底部放入一組輪廓，我們將看到哪些暢銷，並允許我們更積極地剪裁併更快地響應現在正在銷售的輪廓。

And obviously in denim, as an example, there's a lot of variation out there in terms of rise, in terms of leg silhouette and the novelty.

很明顯，以牛仔為例，在上升、腿部輪廓和新穎性方面有很多變化。

And we're being more responsive there.

我們在那裡反應更快。

Knits is an easy one, where we have also used that and, particularly inside of Old Navy, to be more responsive to where the knits business has really shown some real strength and put some volume behind it.

針織品很容易，我們也使用了它，特別是在 Old Navy 內部，對針織品業務真正顯示出一些真正實力的地方更加敏感，並在其背後增加了一些銷量。

So it's a clear capability.

所以這是一個明確的能力。

As I've said pretty publicly, we are in a business that we guess a lot.

正如我公開說過的那樣，我們從事的業務我們猜測很多。

And anything that we can do to minimize the guesses and gets better and inform it with data has a real positive impact on the business.

我們可以做的任何事情來盡量減少猜測並變得更好，並用數據通知它，對業務產生真正的積極影響。

Okay, Art.

好的，藝術。

And just your -- just for expectations, it's more about spring versus holiday, but you have made some tweaks for holiday.

只是你的 - 只是為了期望，更多的是關於春天與假期，但你已經為假期做了一些調整。

I just wanted to understand how we should think about the catalyst and timing.

我只是想了解我們應該如何考慮催化劑和時機。

So in Gap Brand specifically you mean?

所以在 Gap Brand 中，你的意思是？

Yes.

是的。

I'm going to stick to my same story there, which is that I don't want to make any promises about holiday, because, as the team got in place, holiday had a pretty good head of steam behind it.

我將在那裡堅持我的相同故事，那就是我不想對假期做出任何承諾，因為隨著團隊的到位，假期背後有一個很好的動力。

And so much of it was developed.

很多東西都被開發出來了。

What I can say is that the team didn't not do anything.

我能說的是，球隊什麼也沒做。

And they've put their shoulder against it and made some changes there.

他們已經把他們的肩膀靠在它上面並在那裡做了一些改變。

I am certainly hoping it will be better.

我當然希望它會更好。

And from what I have seen, I have seen some encouraging elements of the assortment that I think are much better placed.

從我所看到的來看，我看到了一些令人鼓舞的元素，我認為它們的位置要好得多。

But I'm really putting my big expectation on spring.

但我真的對春天寄予厚望。

Thank you.

謝謝你。

Best regards.

此致。

Sure.

當然。

Ladies and gentlemen, as a reminder, please limit your questions to one per participant.

女士們，先生們，提醒一下，請將您的問題限制在每位參與者一個。

Matthew Boss with JPMorgan.

摩根大通的馬修·博斯。

Hi.

你好。

Good afternoon.

下午好。

So expense control remains pretty impressive over at this year and the last couple, actually.

因此，實際上，今年和最後一對的費用控制仍然令人印象深刻。

What type of flexibility do you think remains on a go-forward basis?

您認為在前進的基礎上仍保持何種類型的靈活性？

And particularly, if a topline turn were not to materialize at the end of this year, or even in the spring, what room do you have to continue to cut some expenses?

特別是，如果在今年年底，甚至在春季沒有實現營收轉機，你還有什麼空間可以繼續削減一些開支？

A big part of our expense base is related to our stores.

我們支出基礎的很大一部分與我們的商店有關。

And that varies -- in large part about half of that varies with sales.

這會有所不同——在很大程度上，其中大約一半會隨著銷售額的變化而變化。

So we do have the benefit that if sales do not -- are not realized to the extent we would like them to be, we have the natural variable component that comes down.

所以我們確實有這樣的好處，如果銷售沒有 - 沒有達到我們希望的程度，我們就會有自然的可變成分下降。

So that's one piece that will always be in the works.

所以這是一件將永遠在作品中的作品。

With regard to how we deliver the expense savings this quarter to help you think about how we would do it in future quarters, a chunk of it came from foreign exchange.

關於我們如何在本季度節省開支以幫助您考慮我們在未來幾個季度將如何做到這一點，其中很大一部分來自外匯。

So we call that out.

所以我們把它叫出來。

And so we benefited, probably between the translation and balance sheet remeasurement, about $30 million of benefit.

因此，我們受益，可能是在翻譯和資產負債表重新計量之間，大約 3000 萬美元的收益。

Even after that though, expenses were pretty close to last year.

即使在那之後，費用也非常接近去年。

So very tight.

所以很緊。

And that comes primarily from this variable component I talked about as well as we brought that marketing down a little bit by $7 million.

這主要來自我談到的這個可變組件，以及我們將營銷降低了 700 萬美元。

And so we would continue to use those levers that are variable or discretionary, like marketing.

因此，我們將繼續使用那些可變或可自由支配的槓桿，例如營銷。

Q2, I just want to call out again, is a very different dynamic because we leveraged last year in Q2 by 190 basis points.

我只想再次指出，第二季度是一個非常不同的動態，因為我們去年第二季度的槓桿率為 190 個基點。

So just from a sheer optic perspective, that includes the gain on sale of $40 million last year.

因此，僅從純粹的光學角度來看，這包括去年 4000 萬美元的銷售收益。

So we are going to be lapping that and then we layer on really kicking in in June the wage increase.

因此，我們將對此進行討論，然後我們將在 6 月份真正開始加薪。

So the deleverage we would expect to be higher in Q2 just because of what we are anniversarying such high leverage.

因此，我們預計第二季度的去槓桿率會更高，因為我們正在紀念如此高的槓桿率。

But we will, behind the scenes, continue to work all the levers we have at our disposal to manage our expenses very tightly, especially if we are not realizing the sales we would expect.

但是，我們將在幕後繼續使用我們可以使用的所有槓桿來非常嚴格地管理我們的開支，特別是如果我們沒有實現我們預期的銷售額。

Great.

偉大的。

And then just a quick follow-up, online posted the first year-over-year contraction that I can remember maybe ever.

然後只是一個快速的跟進，在線發布了我可能永遠記得的第一次同比收縮。

Can you just talk about initiatives in place to stabilize this channel, as well?

你能談談穩定這個渠道的舉措嗎？

Yes online number really was driven and impacted by the ports as well.

是的，在線人數確實也受到端口的驅動和影響。

So number one is sort of at a high level.

所以第一名是高水平的。

It's important to remember that they too were impacted by that.

重要的是要記住，他們也受到了影響。

The second piece is the Piperlime closer.

第二件是 Piperlime 更緊密。

So again, we wound down and actually finished closing Piperlime in the first quarter.

因此，我們再次結束並在第一季度結束了 Piperlime。

So that's going to be another chunk of it.

所以這將是它的另一塊。

And then you just have the effect of Gap Brand product acceptance being fairly weak.

然後你就會得到 Gap Brand 產品接受度相當弱的效果。

So you put those three together and you come up with we are not happy with that number at all.

所以你把這三個放在一起，你得出我們對這個數字一點也不滿意。

But we would expect it to improve once we are out of this port situation, certainly, and get back to a more normalized level.

但是，一旦我們擺脫了這種港口狀況，我們當然會期望它會有所改善，並恢復到更加正常的水平。

Okay great.

好，太棒了。

That's really helpful.

這真的很有幫助。

Matt McClintock from Barclays.

來自巴克萊的馬特麥克林托克。

Yes, good afternoon, everybody.

是的，大家下午好。

Art, I was wondering if we could focus on Old Navy for a bit.

Art，我想知道我們是否可以專注於 Old Navy。

Three consecutive years of solid comp store sales performance and it would appear that that performance should just be now gaining steam from some of your supply chain initiatives.

連續三年穩健的商店銷售業績，看來這種業績現在應該從您的一些供應鏈計劃中獲得動力。

Can you talk about the evolution of Old Navy's comps, of the performance there from the beginning?

你能談談老海軍陣容的演變，以及從一開始那裡的表現嗎？

Three years ago we put up a solid 6% increase to the most recent result.

三年前，我們對最近的結果提出了 6% 的穩健增長。

And how should we think about this evolution as those supply chain improvements continue to accelerate your ability to deliver fresh fashion to that business?

我們應該如何看待這種演變，因為這些供應鏈的改進繼續加快您為該業務提供新鮮時尚的能力？

Thanks.

謝謝。

I'm glad you are seeing that.

我很高興你看到了。

And you can probably read the articles in the newspaper earlier this week, as well.

你也可以閱讀本週早些時候報紙上的文章。

There is some information in there.

裡面有一些信息。

I think, and I hope, what you are seeing and what you are believing is that you put that much consistency in place, three years, multiple quarters back-to-back, and there's a reason behind that.

我認為，我希望，你所看到的和你所相信的是，你在三年、多個季度中背靠背地保持瞭如此多的一致性，這背後是有原因的。

And there is a reason behind that.

這背後是有原因的。

And it is -- it starts with, obviously, Stefan and his team, which is a really good team, working well together.

它是——顯然，它始於 Stefan 和他的團隊，這是一個非常好的團隊，一起工作得很好。

But the much more important thing behind the scenes is that team living inside of a very disciplined process and a set of process changes that is allowing for the consistency.

但在幕後更重要的是，團隊生活在一個非常嚴格的流程和一組允許一致性的流程更改中。

Again, I say this often publicly that it's relatively easy to have a great quarter.

再一次，我經常公開地說，擁有一個好的季度相對容易。

What is superlatively hard in this industry is to put quarter after quarter together and then year after year.

在這個行業中，最難的是把一個季度又一個季度放在一起，然後年復一年。

So we have a lot of confidence there in the processes and capabilities that we have built.

因此，我們對我們建立的流程和能力充滿信心。

It starts with what we think is a really great process right at the beginning, which filters trend really systematically across a wide variety of sources, filters trend down to the right ones that we feel are brand right and appropriately commercial for Old Navy.

它從我們認為一開始就非常棒的過程開始，它真正系統地過濾各種來源的趨勢，過濾趨勢到我們認為品牌正確且適合 Old Navy 商業化的正確來源。

And it has allowed us to be in trends that are happening at the same time in the designer and the premium contemporary space.

它使我們能夠在設計師和高級當代空間同時發生的趨勢中。

It's allowed us to be into those trends in Old Navy almost in a simultaneous way, which really is the way the world is working right now.

它讓我們幾乎可以同時進入 Old Navy 中的這些趨勢，這確實是當今世界的運作方式。

And so that ability to be right and to respond very quickly is powerful.

因此，正確和快速反應的能力是強大的。

And then if you just go down into the system, there's a really -- I think a really disciplined and structured management of the assortment that we are running as well right now, which allows us to maintain the proper amount of newness entering the portfolio, but also have a super solid set of styles that are proven that we can invest in over several seasons to help us really drive the commercial plan of the Business.

然後，如果您只是深入到系統中，我認為對我們目前正在運行的分類進行非常嚴格和結構化的管理，這使我們能夠保持適當數量的新品進入投資組合，但也有一套超級紮實的款式，這些款式已經證明我們可以在多個季節進行投資，以幫助我們真正推動業務的商業計劃。

I guess the way I think about it is that a healthy business is a business that is gaining market share.

我想我認為健康的企業是獲得市場份額的企業。

And Old Navy has now demonstrated its ability to hunt and win at market share pretty consistently for a number of quarters running.

Old Navy 現在已經展示了它在連續幾個季度中非常穩定地追捕和贏得市場份額的能力。

So I won't say that this is going to be perfect every time, because it's tough in this industry with fashion.

所以我不會說這每次都會完美，因為在這個時尚行業很難做到。

But I do have a great deal of confidence in the system and process that we have built there.

但我確實對我們在那裡建立的系統和流程充滿信心。

And it's obviously why we are working very aggressively with Jeff and his team and Andi and her team to almost do turnkey installation of some of these components into the other businesses as well.

這顯然是為什麼我們與 Jeff 和他的團隊以及 Andi 和她的團隊非常積極地合作，幾乎將其中一些組件的交鑰匙安裝到其他業務中。

And we will see the results there on a going forward basis.

我們將在未來的基礎上看到那裡的結果。

But I have been really pleased with what we see with Old Navy and really confident with what we see going forward.

但我對我們看到的 Old Navy 感到非常滿意，並對我們看到的未來充滿信心。

Thanks a lot, Art.

非常感謝，藝術。

Yes.

是的。

Susan Anderson with FBR Capital Markets.

蘇珊安德森與 FBR 資本市場。

Hi.

你好。

Good evening.

晚上好。

Thanks for taking my question.

感謝您提出我的問題。

I wanted to ask just about expectations for gross margin as we go throughout the year.

我想問一下我們全年的毛利率預期。

I assume in second quarter it should be worse because of the port situation.

我認為由於港口情況，第二季度應該會更糟。

But then should we expect it to inflect positively in the back half, or should we expect continued SG&A to help to offset that to get to your EBIT margin guidance?

但是，我們是否應該期望它在後半段出現積極影響，或者我們是否應該期望持續的 SG&A 有助於抵消這一影響，從而達到您的息稅前利潤率指導？

Thanks.

謝謝。

That is a tough question, because we do not guide to gross margin, Susan.

這是一個棘手的問題，因為我們不指導毛利率，蘇珊。

But to try and be helpful, we do -- we have given a perspective on operating margin.

但是為了嘗試提供幫助，我們這樣做了——我們給出了關於營業利潤率的觀點。

The gross margin, what I will tell you, just to keep in mind, you are absolutely correct with your view that there is going to be pressure that we expect in the second quarter because of the port, for sure.

毛利率，我會告訴你，只是要記住，你的觀點是絕對正確的，因為港口，我們預計第二季度會有壓力，當然。

As reminder, we are also dealing with this year headwinds within the gross margin line due to foreign exchange.

提醒一下，我們也在應對今年由於外匯導致的毛利率線內的逆風。

So that is just part of what we laid out at the early part of the year for everyone to understand, because we have that very large Japan and Canada business.

所以這只是我們在年初制定的讓每個人都了解的部分內容，因為我們擁有非常龐大的日本和加拿大業務。

Then other that, I will tell you once we are past the first half port impact, of course we will be heads down on trying to deliver the healthiest margin we can.

然後除此之外，一旦我們度過了上半年的港口影響，我會告訴你，我們當然會竭盡全力努力提供最健康的利潤。

And we will ultimately continue to use all of our levers to try and put up the best value that we can every quarter.

我們最終將繼續使用我們所有的槓桿來嘗試並在每個季度提供我們可以提供的最佳價值。

So we will see how that works out.

所以我們將看到它是如何工作的。

Got it.

知道了。

That's helpful.

這很有幫助。

Thank you.

謝謝你。

Kimberly Greenberger with Morgan Stanley.

摩根士丹利的金伯利格林伯格。

Great.

偉大的。

Thank you so much.

太感謝了。

Art, you talked about some of the improvements in changes in processes at Old Navy that have been implemented there over the last couple of years and that you felt like those processes and that those improvements could be transported, I think, to Gap and Banana.

Art，您談到了過去幾年在 Old Navy 中實施的流程變更方面的一些改進，您覺得這些流程以及這些改進可以轉移到 Gap 和 Banana。

Could you just talk to us about what -- just help us understand exactly what those process improvements are, if the transportation process from one division to the other has already started to happen, or the knowledge sharing has already started to happen.

您能否與我們談談 - 幫助我們準確了解這些流程改進是什麼，如果從一個部門到另一個部門的運輸過程已經開始發生，或者知識共享已經開始發生。

When do you think we might see the early results of that in terms of the merchandise in-store?

您認為我們什麼時候可以看到店內商品方面的早期結果？

Thanks so much.

非常感謝。

Again, I reiterate -- let me reiterate what I said in my comments.

我再次重申——讓我重申我在評論中所說的話。

The three lanes of work that Jeff and his team are focused on right now, specifically in Gap.

Jeff 和他的團隊目前專注於三個工作領域，特別是 Gap。

Obviously you have to run the business aggressively in season and we are doing that.

顯然，您必須在賽季中積極開展業務，而我們正在這樣做。

The team is heads down on the business on a global basis.

該團隊在全球範圍內負責業務。

The second issue is fix as much of the product as we can that is in the pipeline and deliver spring women's product in a brand appropriate, trend appropriate way.

第二個問題是盡可能多地修復正在籌備中的產品，並以適合品牌、適合趨勢的方式提供春季女裝產品。

And then the third is rebuilding the product processes.

第三個是重建產品流程。

So there are a lot of plates spinning right now inside of Jeff's world.

所以現在傑夫的世界裡有很多盤子在旋轉。

But he and I both feel very strongly that we can't wait.

但他和我都非常強烈地感到我們迫不及待了。

So we're working these things simultaneously.

所以我們正在同時處理這些事情。

If you think about some of the key elements of the process, one is very simply the length of the pipeline and Old Navy has been running on a shorter pipeline for a while.

如果您考慮該過程的一些關鍵要素，一個非常簡單的管道長度，而 Old Navy 已經在較短的管道上運行了一段時間。

And Gap is developing on that pipeline now as we speak.

正如我們所說，Gap 正在這條管道上進行開發。

And then there is the trend process, the assortment architecture, the supply chain capabilities, a number of other things as well, which we are layering in.

然後是趨勢過程、分類架構、供應鏈能力，以及其他一些我們正在分層的東西。

Quite honestly, Jeff and I are sitting here saying how much can we throw at the organization and how fast can we push?

老實說，傑夫和我坐在這裡說我們可以向組織投入多少，我們可以推動多快？

But we are pushing pretty hard and pretty fast.

但是我們正在非常努力和非常快地推動。

Spring will come to market with a shorter pipeline.

Spring 將以更短的管道進入市場。

But it's going to be a hybrid, really, of the way they've traditionally brought it to market and the new process that we are building with them to get more and more up to speed on the new platform as we go through product development for 2016 and the outlying seasons.

但實際上，這將是他們傳統上將其推向市場的方式以及我們與他們一起構建的新流程的混合體，以便在我們進行產品開發時越來越快地在新平台上加快速度2016 年及外圍季節。

I can't tell you exactly when there is going to be a lights-on moment of this revealing itself because it was at Old Navy and it is in both Banana and Gap more of a progressive rebuild.

我不能確切地告訴你什麼時候會出現這種揭示本身的亮光時刻，因為它是在 Old Navy 並且它在 Banana 和 Gap 中更像是一個漸進式的重建。

But some of the key elements are ready in place right now.

但是一些關鍵要素現在已經準備就緒。

Lindsay Drucker Mann with Goldman Sachs.

林賽·德魯克·曼與高盛。

Thanks.

謝謝。

Hi, everyone.

大家好。

I wanted to ask about Old Navy and, given the brand success, whether you think there is opportunity to take a little bit of AUR?

我想問一下 Old Navy，鑑於品牌的成功，你是否認為有機會拿一點 AUR？

And how you are thinking about AUR generally in light of the lower AUC environment for the back half.

以及根據後半部分較低的 AUC 環境，您通常如何考慮 AUR。

Thanks.

謝謝。

To me, AUR is one of those things that if you have confidence, you can achieve it, it's a thing of beauty.

對我來說，AUR 是其中之一，如果你有信心，你可以實現它，它是一件美麗的事情。

And our issue with AUR as a Company has been our inconsistency in our ability to achieve AUR.

作為一家公司，我們與 AUR 的問題是我們實現 AUR 的能力不一致。

Again, inside of Stefan's business there has been an opportunity that they have had and they have demonstrated their ability to -- mostly out of mix, really not out of make at the end of the day.

再一次，在 Stefan 的業務內部，他們已經擁有了一個機會，並且他們已經展示了他們的能力 - 大部分情況下是不合時宜的，在一天結束時真的不是不合時宜。

One of the things that is really cool about what is going on at Old Navy is that they are able in many cases to achieve cost reductions, an elevated sense of quality and a mix up all at the same time.

Old Navy 正在發生的事情非常酷的一件事是，他們能夠在許多情況下同時實現成本降低、質量意識提升和混合。

It is from AUR.

它來自 AUR。

Now it is in selective categories.

現在它屬於選擇性類別。

So this is one where Sabrina and I are absolutely in lock step, which is to put AUR and look for AUR on the basis of mix and track record.

所以這是我和 Sabrina 絕對步調一致的一個，即放置 AUR 並根據混合和跟踪記錄尋找 AUR。

Because it's proved to be way too elusive at times, not just for us, but for other people in this industry.

因為它有時被證明太難以捉摸，不僅對我們，而且對這個行業的其他人來說。

And the other side of AUR, having nothing to do really with the make of the product, or AUC, is just getting off of the depth of the promotions that we have had in some parts of the Company.

而 AUR 的另一面，與產品的品牌或 AUC 沒有任何關係，只是擺脫了我們在公司某些地方進行的促銷活動的深度。

And frankly, in my view, that's probably a much bigger AUR opportunity in the near to medium term than any fundamental changes in product mix or product make.

坦率地說，在我看來，與產品組合或產品製造的任何根本性變化相比，這在中短期內可能是一個更大的 AUR 機會。

We have been very heavily discounted, as you know.

如您所知，我們的折扣非常大。

And in some cases over-bought in areas where the product is not registering.

在某些情況下，在產品未註冊的區域超買。

And that's a tough spot to be.

這是一個艱難的地方。

So a second part of Gap is to really make sure that we are buying holiday and spring in exactly the right way.

因此，Gap 的第二部分是真正確保我們以正確的方式購買假期和春季。

And again, I've said publicly that I have a pretty strong bias towards always modestly under buying a season and looking for upside in AUR versus trying to force a lot of units through the system.

再一次，我曾公開表示，我非常傾向於總是適度地購買一個賽季並尋找 AUR 的上行空間，而不是試圖強迫大量單位通過系統。

Great.

偉大的。

And if I could just ask one follow-up.

如果我可以問一個後續問題。

Art, when we met with you last you had talked about thinking about some different ways you might conceptualize the store format and different things that you were thinking about.

Art，當我們上次與您見面時，您談到了思考一些不同的方式，您可能會概念化商店格式以及您正在考慮的不同事物。

Have any of those experimental or newer evolved store formats come into clearer focus?

這些實驗性的或更新的商店形式有沒有得到更清晰的關注？

Thank you.

謝謝你。

We are still working on it on the inside.

我們仍在內部進行研究。

Old Navy has something that they will be testing.

老海軍有一些他們將要測試的東西。

I'm not quite sure of the timing yet, but certainly within the course of this calendar year.

我還不太確定時間，但肯定是在這個日曆年的過程中。

And then I am focused on our international expansion, as well, and in particular for both Old Navy and Gap.

然後我也專注於我們的國際擴張，特別是對於 Old Navy 和 Gap。

The store size is a big opportunity for us in terms of opening up smaller, more productive real estate spaces where we otherwise wouldn't actually necessarily be able to open a store.

商店規模對我們來說是一個巨大的機會，可以打開更小、更高效的房地產空間，否則我們實際上不一定能夠開店。

So it is -- I'm not ready to make a pronouncement on this one.

所以——我還沒準備好就這個問題發表聲明。

But it hasn't lost any of its importance and it certainly is being backed across the Company with a high degree of urgency.

但它並沒有失去任何重要性，而且它肯定得到了整個公司的高度緊迫的支持。

Thank you.

謝謝你。

Adrianne Neve with Janney Capital Markets.

Adrianne Neve 與 Janney Capital Markets。

Good afternoon.

下午好。

Quick question on the inventory.

關於庫存的快速問題。

I know that Old Navy has been in a position of chase throughout fourth quarter and into the first quarter.

我知道老海軍在整個第四季度和第一季度一直處於追逐的位置。

You were able to cut some inventories at Gap going into late summer -- late spring/summer.

進入夏末——春末/夏末，你能夠在 Gap 削減一些庫存。

So I'm wondering, are you comfortable with your inventory levels now?

所以我想知道，你現在對你的庫存水平感到滿意嗎？

And then really quickly, if you could just talk about AUC opportunity in the back half.

然後真的很快，如果你能在後半區談論 AUC 機會。

Thank you very much.

非常感謝。

Sure.

當然。

So the inventory increase, Adrianne, is really mostly due to the [intransigent] issue related to the port.

因此，Adrianne 的庫存增加實際上主要是由於與港口有關的 [不妥協] 問題。

We told you guys we wanted to goal ourselves at the beginning of the year, excluding the port, something like slightly down to flattish.

我們告訴你們，我們想在年初設定自己的目標，不包括港口，有點像略微下降到持平。

And I would say we are pretty much there excluding this port issue that puts us up four.

我會說我們幾乎在那裡，不包括這個讓我們四個的端口問題。

And then you see that we try and get back with the guidance in Q2 of getting back to tighter inventories, slightly up.

然後你會看到，我們試圖在第二季度恢復到庫存收緊的指導，略微上升。

And the reason we are giving ourselves a little bit of wiggle room is with those late inventories coming in, we don't want to do anything unnatural if goods aren't really liable to just force the sell-through to get to an EOQ.

我們給自己一點迴旋餘地的原因是那些遲到的庫存進來，如果貨物真的不能強迫銷售達到 EOQ，我們不想做任何不自然的事情。

But it is still fairly tight when you think about it to be slightly up when last year we are lapping only an up two.

但是當您考慮到它在去年我們僅上升兩個時略微上升時，它仍然相當緊張。

So overall, I would say we are comfortable with our inventory levels and will continue to manage them quite tightly.

所以總的來說，我會說我們對我們的庫存水平感到滿意，並將繼續非常嚴格地管理它們。

And your second question was --

你的第二個問題是——

On AUC opportunity with cotton deflation.

關於棉花通貨緊縮的 AUC 機會。

Oh right.

啊對。

Yes.

是的。

So that opportunity really begins with summer flows because we told you we bought our -- when we bought our spring flows, cotton really wasn't down yet.

所以這個機會真正開始於夏季流量，因為我們告訴你我們買了我們的 - 當我們購買我們的春季流量時，棉花真的還沒有下降。

And so, yes, we hope to capture -- and we feel confident that in the second half we should get some tailwind.

所以，是的，我們希望抓住 - 我們相信在下半年我們應該得到一些順風。

The magnitude of that we have also talked about isn't -- it's a low single-digit, certainly.

我們還談到的幅度不是 - 它肯定是一個低個位數。

Because the simple math that we try to help you all with to be illustrative is that if cotton prices were down 20% when we placed those orders, broadly you would expect, with nothing else changing, you would expect AUC down about 2%.

因為我們試圖幫助大家進行說明的簡單數學是，如果在我們下訂單時棉花價格下跌 20%，您通常會預期，在沒有其他變化的情況下，您會預期 AUC 下降約 2%。

But of course there is always some mix and a little bit of reinvestment here and there.

但當然，這里和那裡總是有一些混合和一點點再投資。

But that is sort of directionally what we are trying to capture in the back half.

但這就是我們試圖在後半部分捕捉到的方向。

Okay great.

好，太棒了。

Thank you so much.

太感謝了。

Lorraine Hutchinson with Bank of America Merrill Lynch.

美國銀行美林證券的洛林哈欽森。

Thank you.

謝謝你。

Good afternoon.

下午好。

Art, could you share your updated thoughts on square footage and points of distribution for both the Gap and Banana brands?

Art，您能否分享您對 Gap 和 Banana 品牌的佔地面積和分銷點的最新想法？

Yes.

是的。

I mean it's a pretty simple conversation, I would say right now, which is that we are always looking at real estate opportunities, whether it's a store that we should be in, because the center has -- is no longer relevant, whether its an opportunity to down size or reposition.

我的意思是這是一個非常簡單的對話，我現在要說的是，我們一直在尋找房地產機會，無論它是我們應該進入的商店，因為中心已經 - 不再相關，它是否是縮小規模或重新定位的機會。

And so that's part of the normal ongoing part of how we (inaudible - background noise).

所以這是我們（聽不見 - 背景噪音）的正常進行部分的一部分。

And that's really the work that the team is doing all the time.

這確實是團隊一直在做的工作。

And it's obviously here in North America where we have the most mature business.

很明顯，我們在北美擁有最成熟的業務。

But we're obviously doing that all around the world across all of our fleets.

但很明顯，我們正在全球範圍內的所有車隊中這樣做。

So not really ready to say anything more about it right now in any form other than it is part of how we view running the business in a responsible way.

因此，除了我們認為以負責任的方式經營業務的方式之外，現在還沒有準備好以任何形式對此多說些什麼。

Sabrina, I don't know if you want to add anything more to that.

薩布麗娜，我不知道你是否想添加更多內容。

That's right.

這是正確的。

I mean reviews on the fleet are done on an ongoing basis.

我的意思是對艦隊的審查是持續進行的。

And obviously we look even more deeply when brands are underperforming.

顯然，當品牌表現不佳時，我們會更加深入。

Overall, historically Banana Republic has had very high returns and they have a pretty tight fleet size.

總體而言，從歷史上看，香蕉共和國的回報率非常高，而且他們的機隊規模非常小。

So work underway more to come, I would say.

因此，我會說，更多的工作正在進行中。

But yes, it's always on our radar and its an ongoing initiative.

但是，是的，它始終在我們的雷達上，並且它是一項持續的舉措。

Thank you.

謝謝你。

I'd like to thank everyone for joining us on the call today.

我要感謝大家今天加入我們的電話會議。

As a reminder, the press release, which is available on www.gapinc.com, contains a full recap of our first quarter results as well as the forward-looking guidance included in our prepared remarks.

提醒一下，可在 www.gapinc.com 上獲得的新聞稿包含對我們第一季度業績的完整回顧以及我們準備好的評論中包含的前瞻性指導。

As always, the Investor Relations team will be available after the call for further questions.

與往常一樣，投資者關係團隊將在電話會議後提供進一步的問題。

Thank you.

謝謝你。

Ladies and gentlemen this does conclude today's conference.

女士們，先生們，今天的會議到此結束。

We thank you for your participation.

我們感謝您的參與。