蓋璞 (GPS) 2015 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen.

下午好，女士們，先生們。

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

我叫 Amber，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 Inc.

在這個時候，我想歡迎大家加入 Gap Inc.。

second-quarter 2015 conference call.

2015 年第二季度電話會議。

(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 second-quarter 2015 earnings conference call.

歡迎參加 Gap Inc 2015 年第二季度財報電話會議。

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're required to compare 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 財務措施進行比較的措施的調節或描述，請參閱今天的收益新聞稿，以及我們最近的 10-K 表格年度報告，以及我們隨後向美國證券交易委員會提交的文件，所有這些都可以在 GapInc.com 上找到。

These forward-looking statements are based on information as of August 20, 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 8 月 20 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.

今天加入我們的有首席執行官 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 GapInc.com.

Sabrina 將使用幻燈片來補充她的評論，您可以訪問 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.

謝謝，傑克。

Pleased to be here today.

今天很高興來到這裡。

Pleased to be talking to you.

很高興與您交談。

Sabrina will take you through the first half and Q2.

Sabrina 將帶您度過上半場和第二季度。

I'm really going to focus on the back half of the year, and as we get into 2016.

我真的會專注於今年下半年，以及進入 2016 年。

We are making progress on the journey that I have articulated to you, in the work that is going on at Gap and at Banana Republic.

我們在我向你們闡明的旅程中取得進展，在 Gap 和 Banana Republic 正在進行的工作中。

Let me start with Old Navy, and then I'll talk a bit about the other brands as well.

讓我從 Old Navy 開始，然後我也會談談其他品牌。

Pleased with Old Navy's performance.

對老海軍的表現感到滿意。

I see strength, as I look into the back half.

當我看到後半部分時，我看到了力量。

Obviously, we look at all the products as we go through the months, and very pleased with where the women's business is, as well is the other businesses that surround women's, at the end of the day.

顯然，我們會在這幾個月中查看所有產品，並且最終對女性業務以及圍繞女性業務的其他業務感到非常滿意。

Active has been a strength that they continue to build.

積極是他們繼續建立的力量。

We now have an active expression that sits across the entire family.

我們現在有一個貫穿整個家庭的積極表達。

As I look out into September and October, I think the fall product for Old Navy is going to be right in the sweet spot of what's on-brand, on-trend and a great value proposition, and I'm excited about what they can do for this Company in the back half.

當我展望 9 月和 10 月時，我認為 Old Navy 的秋季產品將在品牌、趨勢和巨大價值主張的最佳位置上，我對他們的能力感到興奮為這家公司做後半部分。

Old Navy's consistency continues to be a thing of beauty.

老海軍的一致性仍然是一件美麗的事情。

It sits on a platform of product process that they have built over the last couple of years, and now are pretty relentlessly executing, season after season.

它位於他們在過去幾年中建立的產品流程平台上，現在每個季度都在無情地執行。

It's those same product processes that we are pretty far along now in installing in Gap and Banana Republic, and as I've said before, Old Navy remains our proof point for building product, executing trend, delivering on-brand, on-quality, on-fit product consistently for the rest of the Company.

這是我們現在在 Gap 和 Banana Republic 安裝的相同產品流程，正如我之前所說，Old Navy 仍然是我們構建產品、執行趨勢、提供品牌、質量的證明點，為公司其他部門提供始終如一的合身產品。

We all see a very long runway of growth for Old Navy.

我們都看到 Old Navy 的增長之路非常漫長。

They have gained roughly $1 billion of market share over the course of the last three years.

在過去三年中，他們獲得了大約 10 億美元的市場份額。

They are continuing to build out their responsive supply chain capabilities, platforming fabric, becoming faster and faster in responding to consumer needs, and I'm very pleased with the progress that Stefan and the team have made, and the outlook we see for the back half and 2016.

他們正在繼續構建他們的響應式供應鏈能力，平台化結構，越來越快地響應消費者需求，我對 Stefan 和團隊取得的進展以及我們看到的前景感到非常滿意一半和 2016 年。

Let me then turn to Gap.

然後讓我談談 Gap。

The steps that I have laid out with Jeff, as we have focused on getting the business back on track.

我與傑夫一起制定的步驟，因為我們專注於讓業務重回正軌。

First of all, obviously started with recruiting the team around Jeff.

首先，顯然是從招募 Jeff 周圍的團隊開始的。

That is now largely done.

現在基本上已經完成了。

Since I spoke to you last, Steven Sare has joined us as head of global merchandising.

自從我上次與您交談以來，Steven Sare 已加入我們擔任全球營銷主管。

Steven is a talent, and we're very pleased to have him.

史蒂文是個天才，我們很高興擁有他。

That team has been focused, obviously on spring of 2016, and I'm confident they have been doing the right work to get the business back on track, as we get into next year.

該團隊一直專注，顯然是在 2016 年春季，我相信他們一直在做正確的工作，以使業務重回正軌，因為我們進入明年。

Three weeks ago, I was in New York with the entire team.

三週前，我和整個團隊在紐約。

We did a full style-level on-figure review of the adult assortments.

我們對成人分類進行了全面的風格級別的人物審查。

I saw terrific progress in terms of re-centering on what the brand equities are.

在重新關注品牌資產方面，我看到了巨大的進步。

On fit, on quality, on femininity, on optimism, they are hallmarks of what Gap Brand is all about.

關於合身、質量、女性氣質、樂觀，它們是 Gap Brand 的標誌。

I'm not going to stand at the plate and call which fence we are going to hit it over.

我不會站在盤子前決定我們要撞到哪個柵欄。

That's not who I am.

那不是我。

But I am confident that Gap will make significant progress in spring, and very pleased with what I've seen in the women's assortment, and the turnaround in the women's assortment.

但我相信 Gap 將在春季取得重大進展，並且對我在女裝系列中看到的一切以及女裝系列的好轉感到非常滿意。

While being focused on getting the spring women's assortment back on track, which the team has been spending most of their energy on, and they've now obviously turned to summer, at the same time, they've been rebuilding the product processes inside the business, and I have referred to this before, using Old Navy as the template.

在專注於讓春季女裝系列重回正軌的同時，團隊已經將大部分精力都花在了這一點上，現在他們顯然已經轉向了夏季，與此同時，他們一直在重建內部的產品流程業務，我之前也提到過，以 Old Navy 為模板。

Built more responsive capabilities, platformed much of the fabric, and I'm very encouraged by what these capabilities will be able to deliver for us, as we get into 2016.

構建了更具響應性的功能，將大部分結構平台化，隨著我們進入 2016 年，這些功能將為我們提供什麼讓我感到非常鼓舞。

For the first time, we will be going to in-season open in some of our key product programs, and therefore able to get back in after we read the business in season, with significant quantities of units.

第一次，我們將在我們的一些關鍵產品計劃中進行季節性開放，因此在我們閱讀了季節性業務後能夠重新進入，擁有大量的單位。

This is obviously an important capability for us.

這顯然是我們的一項重要能力。

We're building this across the entire Company and it's great to see Jeff and the team make progress like this, as quickly as they have.

我們正在整個公司建立這個項目，很高興看到 Jeff 和團隊以這樣的速度取得進展。

Let me for a moment just address the strategic actions that we announced we were going to be taking, when we last spoke with you.

讓我先談談我們上次與您交談時宣布將採取的戰略行動。

I'm really pleased with the progress that Jeff and the team have made.

我對 Jeff 和團隊所取得的進展感到非常滿意。

We will have stores being closed over the course of this year.

我們將在今年關閉商店。

But the work on restructuring the business, on working with our landlords, to make sure that this was an orderly process, has largely been done.

但是，重組業務，與我們的房東合作，以確保這是一個有序的過程，大部分工作已經完成。

What that does is it gives the team the ability to really now focus on the business going forward.

這樣做的目的是讓團隊現在能夠真正專注於未來的業務。

Let me turn for just a moment to Banana Republic.

讓我談談香蕉共和國。

It's not a place where I have spent a lot of time talking to you in our last couple of calls, so I want spend a moment there and give you my perspective as to what we're looking at in the back half, and as we get into 2016.

在過去的幾次通話中，我並沒有花很多時間與你交談，所以我想在那里花點時間告訴你我對我們在後半部所看到的東西的看法，因為我們進入2016年。

I'm really confident with the design point of view that we have in the business.

我對我們在業務中的設計觀點非常有信心。

I feel like the team underneath Marissa is really centered on the aesthetic of the brand, really in the sweet spot of what Banana is and should be.

我覺得 Marissa 領導下的團隊真正以品牌美學為中心，真正處於 Banana 的最佳狀態和應該成為的狀態。

And I'm confident that we have a significant opportunity as we get into the latter half of this year and next year, to really drive the business through merchandising, as well.

我相信，隨著我們進入今年下半年和明年，我們有一個重要的機會，也可以通過商品推銷來真正推動業務發展。

I feel like we can support our big ideas, and there are several in the pipeline, and buy the line in a way that can buy the business.

我覺得我們可以支持我們的大創意，並且有幾個正在籌備中，並以可以購買業務的方式購買生產線。

I'm really excited to see what this brand can do as we get to the end of the year, and into 2016.

我真的很高興看到這個品牌在年底和 2016 年能做些什麼。

Let me turn last to China.

讓我最後談談中國。

Obviously, over the last couple of weeks, there's been a lot of news coming out of China.

顯然，在過去的幾周里，有很多消息來自中國。

And it's an important area of long-term growth for us.

這對我們來說是一個重要的長期增長領域。

I was in China just a few weeks ago, spent a week with the team, in stores, in several cities.

幾週前我還在中國，和團隊一起度過了一周，在商店裡，在幾個城市。

And quite simply, I and we are continuing to be very bullish on our opportunity in China.

很簡單，我和我們繼續非常看好我們在中國的機會。

We will process the currency devaluation, and the team is working on that right now.

我們將處理貨幣貶值，團隊現在正在處理這個問題。

I don't see that really giving us any significant headwinds, as we think about the continued growth of the China business.

當我們考慮中國業務的持續增長時，我認為這並沒有真正給我們帶來任何重大阻力。

We continue to look at a very robust store pipeline there, as well.

我們還將繼續關注那裡非常強大的商店管道。

Our outlet business continues to grow in China, and so really, as far as I'm concerned, no change in strategy, no change in direction, no change in intensity, as we continue to look at China as a significant long-term growth opportunity for the Company.

我們在中國的奧特萊斯業務繼續增長，因此，就我而言，戰略沒有變化，方向沒有變化，強度沒有變化，因為我們繼續將中國視為一個重要的長期增長點公司的機會。

So before I close, I would just like to address the fact that there's a lot of noise really out there right now, around the apparel sector.

因此，在我結束之前，我只想解決一個事實，即現在在服裝行業周圍確實存在很多噪音。

And just so you know, my perspective, I shut it out because from where I sit, across all of our businesses, our job is to deliver, regardless of the noise that's out there today.

正如你所知，我的觀點是，我將其拒之門外，因為在我所在的位置，在我們所有的業務中，我們的工作是交付，不管今天有什麼噪音。

And what I see is, I see a consumer who has confidence.

我看到的是，我看到了一個有信心的消費者。

I see dollars being spent, and I see an opportunity for us to continue to get more than our fair share as I look forward, and I am very optimistic given the work that's going on inside of Gap and Banana, and the continued consistency that I see in Old Navy.

我看到美元被花掉了，我看到我們有機會繼續獲得超過我們應得的份額，因為我期待著，考慮到 Gap 和 Banana 內部正在進行的工作，以及我持續的一致性，我非常樂觀。見老海軍。

Very optimistic about what I see in front of us.

對我在我們面前看到的非常樂觀。

Now, let me turn it over to Sabrina.

現在，讓我把它交給薩布麗娜。

Thank you, Art.

謝謝你，藝術。

Good afternoon, everyone.

大家下午好。

As anticipated, our results were impacted by foreign exchange, West Coast port issues, and our previously-announced strategic actions, primarily related to Gap brand.

正如預期的那樣，我們的業績受到外匯、西海岸港口問題以及我們先前宣布的主要與 Gap 品牌相關的戰略行動的影響。

Given the number of unique factors impacting financial results, I'm going to zoom out and quickly speak to our first-half results on a normalized basis.

鑑於影響財務業績的獨特因素的數量，我將縮小範圍並在標準化的基礎上快速談論我們的上半年業績。

Beginning with foreign exchange.

從外匯開始。

In the first half, foreign exchange negatively impacted earnings per share by $0.06.

上半年，外匯對每股收益產生了 0.06 美元的負面影響。

With the accelerated weakening of the yen and Canadian dollar, the FX impact of $0.04 to Q2 was larger than Q1.

隨著日元和加元加速走弱，對第二季度的外匯影響為 0.04 美元，大於第一季度。

With regard to the West Coast port situation, the first-half impact of the port delays was about $0.13, in line with our original estimate, but slightly weighted toward Q2.

關於西海岸港口情況，港口延誤的上半年影響約為 0.13 美元，與我們最初的估計一致，但在第二季度略有加權。

And finally, the charges associated with our strategic actions, which were publicly disclosed in mid June, totaled about $95 million in the first half, or about $0.14.

最後，與我們在 6 月中旬公開披露的戰略行動相關的費用在上半年總計約為 9500 萬美元，約合 0.14 美元。

As a reminder, these charges primarily include costs associated with lease buyouts, asset impairments, and employee-related costs.

提醒一下，這些費用主要包括與租賃收購、資產減值和員工相關成本相關的成本。

Excluding these items, our underlying business delivered adjusted earnings per share growth of 12% over last year.

不包括這些項目，我們的基礎業務調整後每股收益比去年增長了 12%。

We are pleased that despite our product challenges at Gap and Banana Republic, we were able to use all of our levers to achieve this respectable underlying earnings per share growth in the first half.

我們很高興，儘管我們在 Gap 和 Banana Republic 面臨產品挑戰，但我們能夠利用我們所有的槓桿在上半年實現這一可觀的基本每股收益增長。

Turning now to the second-quarter performance, on a constant currency basis, net sales were about flat.

現在轉向第二季度的業績，按固定匯率計算，淨銷售額基本持平。

Foreign exchange negatively impacted our reported net sales by about $100 million in the second quarter.

外匯對我們報告的第二季度淨銷售額產生了約 1 億美元的負面影響。

As reported, net sales were $3.9 billion, down 2% versus last year.

據報導，淨銷售額為 39 億美元，比去年下降 2%。

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

按部門劃分的總銷售額和補償在我們的新聞稿中。

Moving to gross margin.

轉向毛利率。

Second-quarter gross margin was down 200 basis points to 37.4%.

第二季度毛利率下降 200 個基點至 37.4%。

Rent and occupancy deleveraged 40 basis points.

租金和入住率降低了 40 個基點。

Merchandise margin deleveraged 160 basis points, and was negatively impacted by both the ports and foreign exchange.

商品保證金去槓桿160個基點，同時受到港口和外彙的負面影響。

With regard to SG&A, we continue to manage expenses tightly.

在 SG&A 方面，我們繼續嚴格管理費用。

Second-quarter total operating expenses were $1.1 billion, including about $70 million of charges associated with our strategic actions, and about a $30 million benefit from foreign exchange.

第二季度總運營費用為 11 億美元，其中包括約 7000 萬美元與我們的戰略行動相關的費用，以及約 3000 萬美元的外匯收益。

Excluding these items and last year's gain on sale, adjusted SG&A dollars were about flat year over year.

排除這些項目和去年的銷售收益，調整後的 SG&A 美元與去年同期基本持平。

Marketing expenses were down $11 million to $131 million.

營銷費用減少了 1100 萬美元至 1.31 億美元。

Turning to earnings, excluding the negative impact from strategic actions, which was about $0.12, earnings per share were $0.64 or $0.52 on a reported basis.

談到收益，不包括戰略行動帶來的負面影響，約為 0.12 美元，每股收益為 0.64 美元或 0.52 美元。

Regarding the balance sheet and cash flow, inventory dollars per store were up 1% at the end of the second quarter, in line with our guidance.

在資產負債表和現金流方面，每家商店的庫存美元在第二季度末增長了 1%，符合我們的指導。

Year-to-date free cash flow was an inflow of $341 million.

年初至今的自由現金流為 3.41 億美元。

Consistent with our opportunistic approach, we are pleased to have spent over $600 million on share repurchases year to date.

與我們的機會主義方法一致，我們很高興今年迄今已花費超過 6 億美元進行股票回購。

In the second quarter alone, we spent over $375 million repurchasing 10 million shares.

僅在第二季度，我們就花費了超過 3.75 億美元回購了 1000 萬股股票。

Including our dividend, year-to-date shareholder distributions totaled about $800 million.

包括我們的股息，年初至今的股東分配總額約為 8 億美元。

We ended the quarter with a share count of 410 million, and a cash balance of $1 billion.

我們在本季度末的股票數量為 4.1 億股，現金餘額為 10 億美元。

Regarding capital expenditures and store count.

關於資本支出和商店數量。

Year-to-date capital expenditures were about $300 million.

年初至今的資本支出約為 3 億美元。

On a net basis, we opened 29 Company-operated stores year-to-date, including 40 Gap Brand closures.

按淨額計算，我們年初至今開設了 29 家公司自營門店，其中包括 40 家 Gap Brand 關閉。

We ended the quarter with 3,309 stores.

我們在本季度結束時擁有 3,309 家門店。

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。

Given that our first-half performance was within the scenario embedded in our initial full-year outlook, we are reaffirming our full-year earnings-per-share guidance range of $2.75 to $2.80.

鑑於我們的上半年業績在我們最初的全年展望中所包含的情景內，我們重申我們的全年每股收益指導範圍為 2.75 美元至 2.80 美元。

This range excludes the charges associated with our strategic actions.

此範圍不包括與我們的戰略行動相關的費用。

With regard to those actions, we now estimate the charges to be around $130 million to $140 million.

關於這些行動，我們現在估計費用約為 1.3 億至 1.4 億美元。

Excluding the costs associated with our strategic actions, we continue to expect operating margins to be down about a point versus 2014, driven by the negative impact from foreign exchange, the first-half port issues and last year's gain on sale.

剔除與我們的戰略行動相關的成本，我們繼續預計營業利潤率將比 2014 年下降約 1 個百分點，這是由於外匯、上半年港口問題和去年銷售收益的負面影響。

While we continue to pursue our growth initiatives in Asia and domestically with Athleta, given our Gap Brand closures, we now anticipate store count and square footage to be about flat for the year.

雖然我們繼續與 Athleta 一起在亞洲和國內推行我們的增長計劃，但鑑於我們的 Gap 品牌關閉，我們現在預計今年的商店數量和麵積將基本持平。

Regarding inventory, we expect third-quarter inventory to be down slightly.

在庫存方面，我們預計第三季度庫存將小幅下降。

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, while the business experienced challenges in the first half, we are pleased to have delivered underlying EPS growth of 12%, and to have distributed about $800 million to shareholders, underscoring our commitment to returning excess cash.

最後，儘管上半年業務遇到挑戰，但我們很高興實現了 12% 的基本每股收益增長，並向股東分配了約 8 億美元，這突顯了我們對返還多餘現金的承諾。

As we enter the third quarter, we will continue to focus on levers that we can control and advance the initiatives that will drive future improvements.

隨著我們進入第三季度，我們將繼續專注於我們可以控制和推進將推動未來改進的舉措的槓桿。

Thank you, and now, I will turn it back over to Jack.

謝謝你，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 the call up to questions.

我們現在將打開問題的電話。

We would appreciate limiting your questions to one per person.

我們希望將您的問題限制在每人一個。

(Operator Instructions)

（操作員說明）

Anna Andreeva, Oppenheimer.

安娜·安德烈耶娃，奧本海默。

Great.

偉大的。

Thanks so much, and thank you for taking our question.

非常感謝，感謝您提出我們的問題。

A question on Old Navy.

關於老海軍的問題。

This division has demonstrated for some time now, some very strong top line and bottom line momentum.

這個部門已經展示了一段時間，一些非常強大的頂線和底線勢頭。

As we approach the tougher comparisons in the fourth quarter, especially, can you maybe talk about the trade-off between your AUR and transactions to drive positive comps, and specifically what categories are you particularly excited for, for holiday?

當我們在第四季度進行更嚴格的比較時，您能否談談您的 AUR 和交易之間的權衡以推動積極的比較，特別是您對假期特別興奮的類別？

Thank you so much.

太感謝了。

Thanks, Anna.

謝謝，安娜。

And thanks for the question.

感謝您的提問。

I know that we're looking at those tougher comps.

我知道我們正在研究那些更強硬的組合。

Again, I would point out that we have three years under our belt with the business, and that's a function of how we're bringing product to market, as we pointed out several times.

再次，我要指出，我們在業務上已經三年了，正如我們多次指出的那樣，這是我們如何將產品推向市場的一個功能。

If I look across the business, the women's business is performing.

如果我縱觀整個業務，女性業務正在表現出色。

I'm now seeing product looking out through the rest of the year.

我現在看到產品在今年剩下的時間裡都在看。

Really excited about where we are from a trend standpoint across a number of categories, and that's probably what's most important to me, is that the strength of the business is diversified.

從多個類別的趨勢角度來看，我們真的很興奮，這可能對我來說最重要的是，業務實力是多元化的。

It's not singular.

這不是單一的。

And then if you add on top of that some new categories that really have not been powering the business until we have built them out over the last couple of seasons, like active, I feel really good about what Old Navy has as ammunition to deliver the back half.

然後，如果您再加上一些新類別，這些類別在我們在過去幾個賽季中建立起來之前確實沒有為業務提供動力，比如活躍，我對 Old Navy 擁有的彈藥感到非常好後半部分。

The only thing I will add with regard to our levers is, Old Navy's done a nice job for the better part of the year in participating in the promotional environment, while still delivering high-quality margins.

關於我們的槓桿，我唯一要補充的是，Old Navy 在今年大部分時間裡在參與促銷環境方面做得很好，同時仍然提供了高質量的利潤。

And we intend to continue that into the back half, so AUR will be an important lever, as we continue to manage inventory responsibly and prudently there.

我們打算將這種情況延續到後半部分，因此 AUR 將成為一個重要的槓桿，因為我們將繼續在那裡負責任地、謹慎地管理庫存。

Matthew Boss, JPMorgan.

馬修博斯，摩根大通。

Good afternoon.

下午好。

As we think about SG&A you've trimmed roughly $150 million of expenses from the base over the past two years.

當我們考慮 SG&A 時，在過去兩年中，您從基地削減了大約 1.5 億美元的開支。

My question, what kind of flexibility remains if sales were to remain constrained?

我的問題是，如果銷售仍然受到限制，還有什麼樣的靈活性？

And then on the balance sheet, what is the adjusted leverage ratio or debt to EBITDA you're comfortable with going forward, and just the minimum cash balance to fund the business?

然後在資產負債表上，調整後的槓桿比率或債務對 EBITDA 的影響是多少，以及為業務提供資金的最低現金餘額是多少？

Great questions.

好問題。

Starting with expenses, we like to think, Matthew, that our work is never over.

從費用開始，我們喜歡認為，馬修，我們的工作永遠不會結束。

There's always opportunities to work more productively and efficiently in the business.

總有機會在業務中更高效地工作。

As a reminder, a large part of our expense base is variable to sales.

提醒一下，我們的大部分費用基礎因銷售額而異。

Whether it's per unit because of DC cost, or whether it is related and variable to store cost.

無論是因為 DC 成本的單位，還是與存儲成本相關且可變。

A large piece is variable.

一大塊是可變的。

Of course when sales are increasing, we would expect nominal dollars to increase, but if they're not increasing, then we do our very best, as we've been demonstrating, to be responsible and to hold all of our other discretionary and overhead items very tightly, combined with the natural benefit we get from the variable piece.

當然，當銷售額增加時，我們預計名義美元會增加，但如果它們沒有增加，那麼我們會盡最大努力，正如我們一直在展示的那樣，負責並持有我們所有的其他可自由支配和間接費用項目非常緊密，結合我們從可變件中獲得的自然好處。

So that's that piece.

這就是那塊。

With regard to the balance sheet, let me see if I can remember your questions.

關於資產負債表，讓我看看我是否能記住你的問題。

I know one was on cash, and so we still target roughly between $1 billion $1.2 billion as our cash on balance sheet target, and we ended with $1 billion, so we're very comfortable with where we ended the quarter.

我知道其中一個是現金，所以我們的資產負債表上現金目標仍然在大約 10 億美元 12 億美元之間，我們以 10 億美元結束，所以我們對本季度結束的位置非常滿意。

And then with regard to our ratios, I would say, broadly speaking, we like being an investment grade credit.

然後關於我們的比率，我想說，從廣義上講，我們喜歡成為投資級信用。

It gives us a lot of flexibility in our business, and we have fought hard for those.

它為我們的業務提供了很大的靈活性，我們為此努力奮鬥。

So we try to remain consistent in our ratios, with the agency's guidelines on what constitutes investment grade.

因此，我們試圖在我們的比率上保持一致，與該機構關於什麼構成投資等級的指導方針保持一致。

Okay.

好的。

Great.

偉大的。

That was really helpful.

那真的很有幫助。

Thanks.

謝謝。

Simeon Siegel, Nomura Securities.

Simeon Siegel，野村證券。

Just a quick clarification question for Sabrina, if I can.

如果可以的話，只是對 Sabrina 的一個快速澄清問題。

What is the first half EPS the $2.75, $2.80 is based off of?

2.75 美元、2.80 美元的上半年每股收益是多少？

Is that the $1.42 underlying?

那是1.42美元的基礎嗎？

And then just consuming content share count.

然後只是消耗內容共享計數。

Does that just imply the back half EPS is around $1.33 to $1.38?

這是否意味著後半部分每股收益約為 1.33 至 1.38 美元？

The $2.75 to $2.80 guidance assumes our reported EPS excluding the GAAP -- mostly GAAP charges that we have described since June 15.

2.75 美元至 2.80 美元的指導假設我們報告的每股收益不包括 GAAP——主要是我們自 6 月 15 日以來描述的 GAAP 費用。

The foreign exchange is embedded and the port is embedded.

外匯是嵌入的，端口是嵌入的。

It includes everything except for those strategic action charges, as outlined on June 15.

它包括除 6 月 15 日概述的那些戰略行動費用之外的所有內容。

Is that helpful, Simeon?

有用嗎，西蒙？

Is that the $1.42 or is it a piece of the $1.42?

那是 1.42 美元還是 1.42 美元的一部分？

The underlying number?

底層數字？

The $1.42 excludes all of the components, so the only -- so again, the $2.75 would include the foreign exchange, which is the $0.06 and it would include the port of $0.13.

1.42 美元不包括所有組成部分，所以唯一的——同樣，2.75 美元將包括外匯，即 0.06 美元，它將包括 0.13 美元的港口。

It would not be the $1.42.

它不會是 1.42 美元。

It would be adjusted for those $0.19.

它將針對 0.19 美元進行調整。

Perfect.

完美的。

Great.

偉大的。

Thanks.

謝謝。

Betty Chen, Mizuho Securities.

Betty Chen，瑞穗證券。

I was wondering, Art, if you can talk a little bit more about the in-season open program that you mentioned earlier.

我想知道，Art，你能不能多談談你之前提到的賽季開放計劃。

It sounds like an exciting opportunity for the team to get a chance to read and react, and also be able to chase into better selling items.

對於團隊來說，這聽起來是一個令人興奮的機會，可以有機會閱讀和做出反應，也可以追逐更好的銷售商品。

What percentage of the collection will be part of that program?

多少百分比的收藏將成為該計劃的一部分？

And is it in all brands that you mentioned?

你提到的所有品牌都有嗎？

Any additional color would be helpful.

任何額外的顏色都會有所幫助。

Thanks.

謝謝。

I'm not going to give you specific numbers here, because we're actually still a ways out.

我不會在這裡給你具體的數字，因為我們實際上還有一條出路。

We're obviously trying to build this as quickly as we can, and use it as quickly as we can.

我們顯然是在盡可能快地構建它，並儘可能快地使用它。

And what referred to here was the Gap would be, for really the first time in a significant way, using this capability.

這裡提到的 Gap 將是第一次以一種重要的方式使用這種能力。

The way we were thinking about it, Betty, is against key programs.

貝蒂，我們考慮它的方式是反對關鍵計劃。

This is a business where we manage it around a top 30 mentality of our key styles, and so we're using it in key programs, and we're going to roll it quickly.

這是一項業務，我們圍繞我們關鍵風格的前 30 種心態進行管理，因此我們在關鍵項目中使用它，我們將迅速推出它。

It's based upon a combination of obviously reading the business, having open to buy, having platform fabric, at vendors who are capable on an integrated basis of cutting, washing, dying, et cetera, and proximate sourcing.

它基於對業務的明顯了解、開放購買、擁有平台結構、供應商能夠在綜合基礎上進行切割、洗滌、染色等，以及就近採購。

So there will be more to say about this, but it does involve putting product in our stores, testing, and then responding in season.

所以會有更多關於這個的說法，但它確實涉及將產品放入我們的商店，測試，然後在季節做出回應。

I'm really excited about it.

我真的很興奮。

Art, does that go live for the spring season, or more so the second half of 2016?

藝術，是在春季上線，還是在 2016 年下半年更是如此？

In spring.

在春天。

We will be going in with the capability applied in a couple places in the business.

我們將使用在業務中的幾個地方應用的功能。

Great.

偉大的。

Thank you so much.

太感謝了。

Best of luck.

祝你好運。

Dorothy Lakner, Topeka Capital Markets.

Dorothy Lakner，托皮卡資本市場。

Thanks, and good afternoon, everyone.

謝謝，大家下午好。

Wondered on the Gap, if you could talk about the bottoms of business.

想知道差距，如果你能談談業務的底部。

That's certainly been a mainstay, and we are talking about somewhat of a resurgence in denim overall in the industry, in the back half of the year.

這當然是一個中流砥柱，我們談論的是今年下半年整個行業牛仔布的複蘇。

And just wondered if you could talk a little bit about how you might benefit from that, even with the rest of the assortment not necessarily where you want it to be at this point?

只是想知道您是否可以談談您如何從中受益，即使其他分類不一定是您現在想要的？

Yes.

是的。

I have said it before, and I'll just reiterate.

我之前已經說過了，我將再次重申。

We're pretty confident that the denim cycle has hit bottom, and has been coming back over the last several months.

我們非常有信心牛仔布週期已經觸底，並且在過去幾個月中一直在回升。

You also know it from where I sit, and I've said before.

從我坐的地方你也知道，我之前說過。

I'm a strong proponent of really buying lean is we go into season.

如果我們進入季節，我強烈支持真正購買瘦肉。

Obviously, then as we build responsive capabilities, and then getting the upside on the AUR.

顯然，隨著我們構建響應能力，然後在 AUR 上獲得優勢。

What I'm seeing in denim right now and it's for Gap in particular, that's largely the bottoms business, especially past summer, we're seeing a trend being indigo, trend being destructed, trend being patch and repair, and then some variation in leg shape and rise.

我現在在牛仔布中看到的，特別是 Gap 的，這主要是底部業務，尤其是在過去的夏天，我們看到了靛藍趨勢，趨勢被破壞，趨勢是修補和修復，然後是一些變化腿的形狀和上升。

We're buying responsibly into those in the back half, and then in spring 2016, as well.

我們正在負責任地購買後半部分的產品，然後在 2016 年春季也購買。

The other thing that I'm really feeling good about, to be quite honest is our fit.

說實話，我感覺很好的另一件事是我們的合身。

Fit should be an asset for this Company and we have had fit challenges and consistency challenges in bottoms in Gap, and it's something that the team has been very resolutely focused on, and I'm seeing some significant progress there.

Fit 應該是這家公司的一項資產，我們在 Gap 的底部遇到了合適的挑戰和一致性挑戰，這是團隊一直非常堅定地關注的事情，我看到那裡取得了一些重大進展。

Is probably more of a spring, where I'm comfortable saying, it's more of a spring issue that really hits, but it's definitely on the team's mind.

可能更像是一個春天，我可以很自在地說，這更像是一個真正流行的春天問題，但這絕對是團隊的想法。

Great.

偉大的。

Thank you.

謝謝你。

Kimberly Greenberger, Morgan Stanley.

金佰利格林伯格，摩根士丹利。

Great.

偉大的。

Thank you so much.

太感謝了。

Art, I wanted to ask you a little bit about Banana.

阿特，我想問你一點關於香蕉的事。

Some of the new designs hit in the April-May timeframe.

一些新設計出現在 4 月至 5 月的時間範圍內。

We haven't really seen the customer respond yet to that product.

我們還沒有真正看到客戶對該產品做出反應。

You mentioned though, in your prepared remarks, that you're confident in the design and the opportunity to drive their merchandising in the second half of 2015 and 2016.

不過，您在準備好的評論中提到，您對設計充滿信心，並有機會在 2015 年下半年和 2016 年推動他們的商品銷售。

I'm wondering if you can help us with the changes or adjustments that are being made, either within design or to the merchandising process, that you think will lead to that improved trajectory.

我想知道您是否可以幫助我們進行更改或調整，無論是在設計中還是在銷售過程中，您認為這將導致改進的軌跡。

Thanks so much.

非常感謝。

Yes.

是的。

We have a new team come in, led by Andy, and several new members underneath the team, including supplementing the design team underneath Marissa, and some changes there.

我們有一個新團隊進來，由 Andy 領導，團隊下面還有幾個新成員，包括補充 Marissa 領導下的設計團隊，以及那裡的一些變化。

We have a team now that I'm very confident, basically complete.

我們現在有一個團隊，我非常有信心，基本上是完整的。

The seats are full.

座位已滿。

And a first thing they did was dig into back half product, and look and see where they are right now.

他們做的第一件事就是挖掘後半部分產品，看看他們現在在哪裡。

There are some styles in the assortment, as you can imagine, that we wish were better, but they really have their arms around the assortment architecture and how we're buying the business really into Q4, and then into spring of 2016.

正如你可以想像的那樣，分類中有一些我們希望更好的款式，但它們確實支持分類架構以及我們如何真正將業務購買到第四季度，然後到 2016 年春季。

I'm distorting my energy, as you can imagine, towards looking at the product that's in the pipeline, and so I'm now seeing each seasonal collection as it's in concept, and then in adoption.

正如你可以想像的那樣，我正在扭曲我的精力去關注正在籌備中的產品，所以我現在看到每個季節性系列都是在概念上，然後是在採用。

I'm pleased, and I know Andy is pleased and the team are pleased, with how it's coming together.

我很高興，我知道安迪很高興，團隊也很高興，因為它是如何走到一起的。

When I refer to the merchandising opportunity, obviously, it's designing a collection that's commercial, and then it's buying it with a point of view, and putting your dollars behind the big ideas that are going to drive the business.

當我提到推銷機會時，很明顯，它是在設計一個具有商業意義的系列，然後以一種觀點購買它，並將你的資金投入到將推動業務發展的大創意上。

We've been bought more flat over the last several seasons, versus really distorting toward the point of view, and that something else that Andy is really focused, on as we get later in the year and into 2016.

在過去的幾個賽季中，我們被買得更平，而不是真正扭曲了觀點，以及安迪真正關注的其他事情，隨著我們在今年晚些時候和 2016 年到來。

Susan Anderson, FBR & Company.

蘇珊·安德森，FBR & Company。

Thank you for taking my question.

謝謝你接受我的問題。

On the product front, just one quick question on that.

在產品方面，只是一個簡短的問題。

Should we think about maybe some quality being added back into the product for spring next year, too?

我們是否應該考慮在明年春季的產品中添加一些質量，也是嗎？

And then on the store closures.

然後是關店。

How should we think about the cadence going forward?

我們應該如何看待未來的節奏？

And if you have any thoughts maybe around the sales retention that you think you can get, maybe either online or at other stores out of those?

如果您對您認為可以獲得的銷售保留有任何想法，可能是在線或其他商店？

Thank you.

謝謝你。

On quality, the answer is, it's been on everybody's list.

在質量方面，答案是，它在每個人的名單上。

What I don't do to do is say quality that therefore comes in a massive cost.

我不做的是說質量，因此需要付出巨大的代價。

There's two things do not necessarily go hand-in-hand.

有兩件事不一定齊頭並進。

We are focused on restoring quality in key places of our business, where it is relevant and perceptible, and differentiated for the customer.

我們專注於在我們業務的關鍵領域恢復質量，這些領域與客戶相關且可感知，並為客戶帶來差異化。

And so that's been a particular focus inside of Banana, and a particular focus inside of Gap.

所以這是 Banana 內部的一個特別關注點，也是 Gap 內部的一個特別關注點。

It doesn't always come for free, but it doesn't always come with a cost, either.

它並不總是免費的，但也不總是有代價的。

You could easily choose a yarn and a sweater that's actually more expensive because of the hand feel that it delivers, but it's a yarn that doesn't meet our pilling standard, and therefore for the customer, it's a lower quality experience.

您可以輕鬆地選擇實際上更昂貴的紗線和毛衣，因為它提供的手感，但它是一種不符合我們起球標準的紗線，因此對於客戶來說，這是一種較低質量的體驗。

And so this is something that is on my radar.

所以這是我關注的事情。

I've mentioned it before.

我之前提到過。

Is on the radar of the teams for both of those brands, as well as Old Navy.

這兩個品牌以及 Old Navy 都受到團隊的關注。

The customer has a quality expectation that's an opportunity for us.

客戶有質量期望，這對我們來說是一個機會。

And so you should expect to see some of that in the back half of the year, but it's been a very intentional focus of design, merchandising, production, and sourcing as we get into the beginning of next year.

因此，您應該期望在今年下半年看到其中的一些，但隨著我們進入明年年初，這是設計、銷售、生產和採購的一個非常有意識的重點。

On the store cadence, why don't I turn that over to Sabrina and she can talk a little bit, and I can jump in if I need to.

在商店的節奏上，我為什麼不把它交給薩布麗娜，她可以說話一點，如果需要我可以加入。

Sure.

當然。

On the store closures, we're pretty much on track with where we thought we would be.

在商店關閉時，我們幾乎步入了我們認為我們會去的地方。

We closed about 30 Gap stores in the first half, and our best estimate is we're still on target to close about 140 of the 175 North America specialty stores we talked about on June 15.

上半年我們關閉了大約 30 家 Gap 商店，我們最好的估計是，我們仍有望關閉我們在 6 月 15 日談到的 175 家北美專賣店中的約 140 家。

So everything pretty much is still on track there, but we'll be updating you every quarter.

所以幾乎一切都還在進行中，但我們會每季度更新一次。

With regard to the sales retention, we talked about $300 million of sales being associated with the store closures, in total.

關於銷售保留，我們談到了與商店關閉相關的總計 3 億美元的銷售額。

And we're pretty transparent that historically, we haven't seen a lot of sales transfer within Gap Brand.

而且我們非常透明，從歷史上看，我們沒有看到 Gap Brand 內部有很多銷售轉移。

That said, we made a very large concerted effort this time to really go after the customer with some email pieces, direct-mail pieces, signage in stores, to try and recapture to the next closest Gap store, as well as online.

也就是說，這次我們做出了非常大的協同努力，用一些電子郵件、直郵、商店標牌來真正地追踪客戶，試圖重新佔領下一個最近的 Gap 商店，以及在線。

And in addition to that, many of these stores were in markets where there was an Old Navy nearby.

除此之外，這些商店中的許多都在附近有老海軍的市場上。

So the Old Navy team also focused, and will continue to focus, on recapturing some of the sales that are coming from the closed stores.

因此，Old Navy 團隊也專注於並將繼續專注於重新獲得來自關閉商店的部分銷售額。

Great.

偉大的。

That's helpful.

這很有幫助。

Thanks.

謝謝。

Lorraine Hutchinson, Bank of America.

美國銀行的洛林·哈欽森。

Thank you.

謝謝你。

Good afternoon.

下午好。

Sabrina, could you talk about how you're thinking about currency, and the impact on next year given the recent moves in rates?

Sabrina，您能否談談您對貨幣的看法，以及近期利率走勢對明年的影響？

Sure.

當然。

So at a high level, as a reminder for our legal entities that do business outside of the United States, and the biggest businesses I'll focus on again, for us, are Japan and Canada, because those two together are really our biggest currency exposure, because we have about $2 billion worth of sales between those two countries.

所以在高層次上，提醒我們在美國以外開展業務的法人實體，對我們來說，我將再次關注的最大業務是日本和加拿大，因為這兩者加起來確實是我們最大的貨幣曝光，因為我們在這兩個國家之間有大約 20 億美元的銷售額。

Unfortunately, those currencies have continued to depreciate.

不幸的是，這些貨幣繼續貶值。

We hedge, of course -- those operations are in local currency, and they buy the vast majority of their cost of goods in US dollars.

當然，我們對沖——這些業務以當地貨幣計算，他們以美元購買絕大多數商品成本。

They're exposed to the depreciation of their currency.

他們面臨貨幣貶值的風險。

And we hedge for them 12 to 18 months forward, to give, A, our merchants and our teams certainty around what the cost of sales is, but also, obviously, it eases the impact of the depreciation of the currencies.

我們在未來 12 到 18 個月為他們對沖，讓 A、我們的商家和我們的團隊確定銷售成本是多少，而且很明顯，它減輕了貨幣貶值的影響。

Now, it doesn't prevent the depreciation of the currencies ultimately hitting us, it only delays it.

現在，它並不能阻止最終打擊我們的貨幣貶值，它只會延遲它。

So with a continuation of the depreciation of yen and CAD in particular, we're probably going to expect to see continuing headwinds into 2016.

因此，隨著日元和加元貶值的持續，我們可能預計到 2016 年將繼續逆風。

Now currencies are really volatile.

現在貨幣真的很不穩定。

We'll see when we get there, and we'll talk more about that, obviously, in our Q4 call, when we finish doing most of our hedging, and we have our budgets done.

當我們到達那裡時，我們會看到，顯然，在我們的第四季度電話會議中，當我們完成大部分對沖並且我們完成了我們的預算時，我們會更多地討論這一點。

But I would say from where we sit today, given the way the currencies have moved, we're going to probably continue to feel headwinds, maybe around the same magnitude.

但我想說，從我們今天所處的位置來看，考慮到貨幣的走勢，我們可能會繼續感受到逆風，可能幅度相同。

Hopefully not, but maybe around the same magnitude as we have this year.

希望不會，但可能與我們今年的規模大致相同。

Thank you.

謝謝你。

Oliver Chen, Cowen and Company.

Oliver Chen, Cowen and Company。

Thank you.

謝謝你。

Sabrina, I was curious about your views on the merchandise margins for the back half, in terms of the puts and takes and I know that you're looking to see a better improvement for Gap division, not till next spring.

薩布麗娜，我很好奇你對後半部分商品利潤率的看法，就看跌期權而言，我知道你希望看到 Gap 部門有更好的改善，直到明年春天。

And Art, just briefly, what about your bigger picture view for Banana Republic, in terms of the market position, and the customer profile, about where it could go versus where it is now?

Art，簡而言之，您對 Banana Republic 的大局觀如何，就市場地位和客戶概況而言，它可以去哪裡與現在的位置？

Thank you.

謝謝你。

I will start with merch margins, Oliver, and we don't give hard guidance on merch margins, but to be helpful directionally, what we are looking to do obviously is to continue to manage our inventory very tightly.

我將從商品利潤率開始，奧利弗，我們不會就商品利潤率給出硬性指導，但為了在方向上有所幫助，我們顯然要做的是繼續非常嚴格地管理我們的庫存。

And you've heard me say, coming off of a Q2 where we met our guidance, and we were only up 1%, we're looking to come down now in Q3, slightly.

你聽我說，在我們達到指導的第二季度結束後，我們只上漲了 1%，我們現在希望在第三季度略有下降。

We just keep ratcheting the inventory to get tighter and tighter, and we feel that gives us a better probability of getting our average unit retail up, and our margins up.

我們只是不斷地增加庫存，使庫存越來越緊，我們認為這使我們更有可能提高平均單位零售量，並提高我們的利潤率。

We'll see where they actualize.

我們將看到它們在哪裡實現。

We'll see customer response.

我們會看到客戶的反應。

I think our shot is probably better in Q4, given what Art laid out with regard to Banana Republic and Gap modestly changing their assortments for holiday, not so much for fall.

我認為我們在第四季度的拍攝可能會更好，因為 Art 對 Banana Republic 和 Gap 的佈局適度地改變了他們的假期品種，而不是秋季。

So that's what I give you to try to be helpful.

所以這就是我給你的幫助。

I'll just go, I don't want to spend a lot of time on this, Oliver, I'm happy to talk about this as well longer.

我就走了，我不想在這件事上花太多時間，奧利弗，我很樂意再談這個。

I guess I have a model in my brain as I think about this business, which is, number one, competition is extraordinarily fragmented.

當我想到這項業務時，我想我的大腦中有一個模型，第一，競爭非常分散。

Which to me is a blessing, because it means that there are many, many, many share gain opportunities for us.

這對我來說是一種祝福，因為這意味著我們有很多很多的分享機會。

And then I think about the business in terms of pricing bands, across categories, and the pricing bands obviously range from extreme value to luxury, and everything in between.

然後我從定價範圍、跨類別的角度考慮業務，定價範圍顯然從極端價值到奢侈品，以及介於兩者之間的一切。

If I look at the opportunity for Banana positioned where it is, when it's executing well, there's a very large opportunity for us there.

如果我看一下 Banana 的機會，當它執行良好時，我們就有很大的機會。

And so I'm pretty excited about the growth there as we get the business back on track, and especially as we're building the product platforms underneath Banana to be more responsive and more quick, and more on trend.

因此，當我們讓業務重回正軌時，我對那裡的增長感到非常興奮，尤其是當我們在 Banana 下構建產品平台以提高響應速度和速度，並且更符合趨勢時。

So it's a place where we don't probably talk about it as much as we do certainly with Gap and the situation there, and obviously with the strength of Old Navy, but to me it is a quiet powerful growth asset for this Company.

因此，在這個地方，我們可能不會像 Gap 和那裡的情況那樣談論它，顯然還有 Old Navy 的實力，但對我來說，這對這家公司來說是一個安靜而強大的增長資產。

Thank you.

謝謝你。

Best regards.

此致。

Dana Telsey, Telsey Advisory Group.

Telsey 諮詢小組 Dana Telsey。

Good afternoon, everyone.

大家下午好。

Can you talk a little bit about marketing?

你能談談營銷嗎？

Marketing was down.

營銷下降了。

What is the plan for holiday, given that the new product won't be fully up and running yet, and how do you see it both stores and what you're doing with omnichannel?

鑑於新產品尚未完全啟動和運行，假期計劃是什麼，您如何看待商店以及您正在使用全渠道做什麼？

Thank you.

謝謝你。

Thanks, Dana.

謝謝，達娜。

I will start, Dana, with Q2 and marketing was down, driven primarily by Banana and then the absence of Piperlime, and a little bit of Gap.

我將開始，Dana，第二季度和營銷下降，主要是受 Banana 推動，然後是 Piperlime 的缺席，以及一點點 Gap。

For Q3, we will probably expect it to be down again.

對於第三季度，我們可能預計它會再次下降。

You might remember, we had a fall campaign for Gap last year, which we're not anniversarying.

你可能還記得，去年我們為 Gap 舉辦了秋季活動，我們沒有紀念。

We're probably going to be down some, because of that alone, and also the absence of Piperlime.

我們可能會下降一些，僅因為這一點，還有 Piperlime 的缺席。

No other dramatic changes.

沒有其他戲劇性的變化。

We might even invest a little more in other brands like Old Navy.

我們甚至可能會在 Old Navy 等其他品牌上投入更多資金。

I would say it's probably a little early to talk about holiday, because we haven't finished those plans, but I don't know, Art, if you want to add anything.

我想說現在談論假期可能有點早，因為我們還沒有完成那些計劃，但我不知道，Art，如果你想補充什麼。

I will give a somewhat trite answer, honestly, but nonetheless I think one that I feel pretty strongly about which is, the best marketing is good product.

老實說，我會給出一個有點陳詞濫調的答案，但我認為我認為最好的營銷是好的產品。

And if I look at Gap as an example, we drove a strong business back a couple years ago in spring of 2012 with modest marketing, but exceptional product.

如果我以 Gap 為例，幾年前的 2012 年春天，我們以適度的營銷方式推動了強勁的業務發展，但產品卻非常出色。

And so what I can say is that as we feel better about the product, that will help us think about the marketing that we are willing to put behind it.

所以我能說的是，當我們對產品感覺更好時，這將有助於我們考慮我們願意支持的營銷方式。

But I do believe that your marketing should lag good product, and that a lot of what will drive the bounce in the business is good product in the stores, which then puts the marketing behind in maybe the next period.

但我確實相信你的營銷應該落後於好產品，而推動業務反彈的很多因素是商店裡的好產品，這可能會在下一個時期讓營銷落後。

So we're managing it very carefully, and again, as Sabrina said, too soon to talk about what we are going to do in Q4.

所以我們非常謹慎地管理它，而且正如薩布麗娜所說，現在談論我們將在第四季度做什麼還為時過早。

It's not really there yet.

它還沒有真正存在。

Thank you.

謝謝你。

Adrienne Yih, Wolfe Research.

Adrienne Yih，沃爾夫研究中心。

Good afternoon.

下午好。

My question is on inventory, if you can help us out, with inventory by division.

我的問題是關於庫存，如果你能幫助我們，按部門進行庫存。

For a call last year, when Old Navy was performing exceptionally well, there might have been a point in time when you wished that you had more inventory.

對於去年的電話會議，當 Old Navy 表現異常出色時，您可能曾希望您擁有更多庫存。

I was wondering if, as you go up and anniversary those compares, that you might give it a little bit more fuel, so to speak?

我想知道，當你上升和紀念那些比較時，你可以給它更多的燃料，可以這麼說嗎？

Directionally, Adrienne, I would tell you for sure Gap is going to be the tightest, followed closely by Banana.

從方向上講，Adrienne，我可以肯定地告訴你，Gap 將是最緊的，緊隨其後的是 Banana。

Because of their performance year to date, and because of -- we have the most confidence behind Old Navy, we're going to be very tight with Gap and Banana.

由於他們今年迄今為止的表現，並且因為 - 我們對 Old Navy 最有信心，我們將對 Gap 和 Banana 非常緊張。

And then, to your point, Old Navy is still manage for their sales levels tightly.

然後，就你的觀點而言，Old Navy 仍在嚴格控制他們的銷售水平。

They're going to have more inventory, for sure, to feed their momentum.

他們肯定會有更多的庫存來滿足他們的動力。

But I think they're onto something really good, and we're all holding hands, and would like to see a little improvement in turn as we go forward.

但我認為他們正在做一些非常好的事情，我們都手牽手，希望在我們前進的過程中看到一些進步。

I think across the board, tight, but directionally Old Navy is definitely going to be inventory better than Gap or BR.

我認為全面、緊繃、但有方向性的 Old Navy 肯定會比 Gap 或 BR 更好。

Great.

偉大的。

Thank you very much.

非常感謝。

Good luck.

祝你好運。

Brian Tunick, Royal Bank of Canada.

加拿大皇家銀行的布賴恩·圖尼克。

Thanks.

謝謝。

Good afternoon.

下午好。

I guess question, maybe talk, Sabrina, around the ROD leverage point maybe a little, given the store closing announcements.

鑑於商店關閉公告，我想問題，也許是談話，薩布麗娜，在 ROD 槓桿點附近可能有點。

I know you said that the China and international openings have raised that leverage point, but does this now enable the business to get ROD leverage at a lower point, or at least maybe into next year?

我知道你說中國和國際的開放已經提高了這個槓桿點，但是現在這是否能讓企業在較低的點上獲得 ROD 槓桿，或者至少可能到明年？

And maybe, Art, I know where lapping last year's Gap slowdown in the product side.

也許，Art，我知道去年 Gap 在產品方面的放緩在哪裡。

How should we think about the categories you'd expect to turn over time?

我們應該如何考慮您希望隨著時間的推移而轉變的類別？

Should we start in women's tops.

我們應該從女裝開始嗎？

You're seeing a little better trend in denim.

你看到牛仔布的趨勢好一點。

Maybe talk about over the next couple months here, even, what we should be seeing at the Gap division versus last year?

也許在接下來的幾個月裡在這裡談論，甚至，我們應該在 Gap 部門與去年相比看到什麼？

Starting with ROD, you are correct Brian.

從 ROD 開始，你是正確的 Brian。

We have said that most recently it would take a low to mid single positive comp to leverage ROD, for the reasons you laid out, more of the mix for international and some higher rents.

我們已經說過，由於您列出的原因，最近需要中低單正向補償來利用 ROD，更多的國際組合和一些更高的租金。

With regard to the impact of the store closures on ROD, I would say it's not going to be that meaningful, and the reason is you'll recall that the stores we're closing mostly in the lower quality centers.

關於關店對 ROD 的影響，我想說它不會那麼有意義，原因是你會記得我們關閉的商店主要在質量較低的中心。

And in those centers, we actually had pretty favorable rents.

在那些中心，我們實際上有相當優惠的租金。

When we take those out of the portfolio, it doesn't really help your ROD leverage much, because as a percent to rent, that wasn't the issue with those stores.

當我們將這些從投資組合中剔除時，它並不能真正幫助您的 ROD 槓桿作用，因為作為租金的百分比，這不是這些商店的問題。

It was more brand positioning with those stores.

這些商店更多的是品牌定位。

If you just go to categories, and I'll be consistent here and not call significant change in the business in the back half, even though the team has been able to make some incremental changes as they look at both fall and holiday.

如果你只是去分類，我會在這裡保持一致，而不是在後半部稱業務發生重大變化，即使團隊已經能夠在秋季和假期期間做出一些增量變化。

So if I look at Gap order, I expect bounce as we're getting the aesthetic on trend, quality, et cetera, on track.

因此，如果我查看 Gap 順序，我預計會反彈，因為我們在趨勢、質量等方面的審美正在走上正軌。

You can just look at the public data and see where we've given up market share.

你可以看看公開數據，看看我們在哪裡放棄了市場份額。

Mix is a big category in women's where we gave up market share.

Mix是女裝中的一個大品類，我們放棄了市場份額。

It is a mixed cycle right now.

現在是混合循環。

It is an opportunity for us to get our share and more than our fair share.

對我們來說，這是一個獲得我們的份額，甚至超過我們應得的份額的機會。

Denim is coming back, which is a place that powers the brand, and I believe we have really good product development in the pipeline.

牛仔布回來了，這是一個為品牌提供動力的地方，我相信我們正在開發非常好的產品。

And those are two big categories for the brand, and should always be brand drivers for Gap.

這些是品牌的兩大類別，應該始終是 Gap 的品牌驅動力。

I'll just stop there at the moment.

我現在就停在那裡。

The team has obviously been focused across the entire assortment, but to be able to ride the bounce in denim, and then reclaim and more sell our fair share in knits is a big opportunity for us.

顯然，該團隊一直專注於整個品類，但能夠在牛仔布市場上乘風破浪，然後收回並更多地出售我們在針織品中的公平份額，這對我們來說是一個很大的機會。

Amber, we have got time for one more question.

Amber，我們還有時間再問一個問題。

Richard Jaffe, Stifel.

理查德·賈菲，斯蒂菲爾。

Thanks very much.

非常感謝。

Two questions, quickly, if you could clarify the strategic charge in 1Q.

兩個問題，很快，如果你能澄清第一季度的戰略衝鋒。

I know $71 million in Q2, was there any in 1Q, and am I mistaken in thinking there was?

我知道第二季度有 7100 萬美元，第一季度有沒有，我是否誤以為有？

You're right.

你是對的。

You're right, Richard.

你是對的，理查德。

It's a good call-out.

這是一個很好的呼籲。

Just before, as we were putting into the public announcement, we started taking some small actions in the first quarter, related mostly to some inventory and related to the store closures.

就在之前，當我們發佈公告時，我們在第一季度開始採取一些小動作，主要與一些庫存和商店關閉有關。

And when we gave our initial estimate on June 15, it included a little bit of that action we had already taken in Q1, building into the announcement.

當我們在 6 月 15 日給出初步估計時，它包括了我們在第一季度已經採取的一些行動，並納入了公告。

So consistent with that, the number we just gave out for the first half has a little bit of spend in Q1, as once it was announced, we accumulated the total charges.

與此一致，我們剛剛給出的上半年的數字在第一季度有一點支出，因為一旦宣布，我們就累計了總費用。

So the $71 million doesn't include the amount in 1Q, but the $140 million does?

所以 7100 萬美元不包括第一季度的金額，但 1.4 億美元呢？

Correct.

正確的。

Great.

偉大的。

A quick kind word on the franchise operation, internationally?

對特許經營業務的快速友好的話，國際？

The franchise operations continues to be a business that we believe in really strongly.

特許經營業務仍然是我們非常堅信的業務。

Obviously, also, some foreign-exchange headwinds there, which we don't call out separately.

顯然，那裡也存在一些外匯逆風，我們沒有單獨指出。

But we're bullish on it, and now, we're really just starting to put Old Navy into the mix, and so far the redone Old Navy in the Middle East and in the Philippines has been very positive for us.

但我們看好它，現在，我們真的才剛剛開始將 Old Navy 納入其中，到目前為止，在中東和菲律賓重做的 Old Navy 對我們來說非常積極。

I don't want to go into a lot more detail right now, but it's a business that we are long-term committed to, and getting Old Navy in the mix was pretty powerful for us.

我現在不想詳細介紹，但這是我們長期致力於的業務，讓 Old Navy 參與其中對我們來說非常強大。

Great.

偉大的。

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 GapInc.com contains a full recap of our second-quarter results, as well as the forward-looking guidance included in our prepared remarks.

提醒一下，GapInc.com 上提供的新聞稿包含對我們第二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 all.

謝謝你們。

That concludes today's conference.

今天的會議到此結束。

Thank you, everyone, for your participation.

謝謝大家的參與。