蓋璞 (GPS) 2018 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen.

下午好，女士們，先生們。

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

我的名字是麗莎，今天我將成為您的會議接線員。

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 The Gap Inc.。

First Quarter 2018 Conference Call.

2018 年第一季度電話會議。

(Operator Instructions) I would now like to introduce your host, Tina Romani, Director of Investor Relations.

（操作員說明）我現在想介紹一下您的主持人，投資者關係總監 Tina Romani。

Please go ahead, Tina.

請繼續，蒂娜。

Good afternoon, everyone.

大家下午好。

Welcome to Gap Inc.'s First Quarter 2018 Earnings Conference Call.

歡迎來到 Gap Inc. 的 2018 年第一季度收益電話會議。

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 the description and reconciliation of non-GAAP financial measures as noted on Page 2 of the slide supplementing Teri's remarks, 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，以及補充 Teri 評論的幻燈片第 2 頁中提到的非 GAAP 財務指標的描述和調節，請參閱今天的收益新聞發布以及我們最近的 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 上獲得。

These forward-looking statements are based on information as of May 24, 2018, 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 2018 年 5 月 24 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 me on the call today are President and CEO, Art Peck; and Executive Vice President and CFO, Teri List-Stoll.

今天和我一起參加電話會議的是總裁兼首席執行官 Art Peck； Teri List-Stoll 執行副總裁兼首席財務官。

As mentioned, we will be using slides to supplement our remarks, which you can view by going to the Investors section at gapinc.com.

如前所述，我們將使用幻燈片來補充我們的評論，您可以前往 gapinc.com 的“投資者”部分查看。

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。

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

有了這個，我想把電話轉給 Art。

Good afternoon, everyone, and thanks for joining us today.

大家下午好，感謝您今天加入我們。

I am pleased to report Gap Inc.'s sixth consecutive quarter of positive comp.

我很高興地報告 Gap Inc. 連續第六個季度的積極業績。

Of course, we still have work to do, as we always will, and we did face some challenges during the quarter.

當然，我們仍然有工作要做，一如既往，我們在本季度確實面臨一些挑戰。

But before I get into that, I want to reiterate our commitment, as I will over and over again, to our balanced growth strategy.

但在我開始討論之前，我想重申我們對平衡增長戰略的承諾，我將一再重申。

We're focused on growth in the active and value space.

我們專注於活躍和價值空間的增長。

We continue to responsibly rationalize our store foot in specialty real estate.

我們將繼續負責任地合理化我們在專業房地產領域的店鋪立足點。

We are investing in our online and mobile channels, a business for us that is $3 billion and growing.

我們正在投資我們的在線和移動渠道，這對我們來說是一項價值 30 億美元並且還在不斷增長的業務。

We're enhancing our productivity across the enterprise, and we're beginning to unlock the value of our customer data assets across brand, across channel.

我們正在提高整個企業的生產力，並且開始跨品牌、跨渠道釋放客戶數據資產的價值。

We're well positioned on our unique and intrinsic strengths as a company, our scale, our platform and, of course, our iconic brands.

作為一家公司，我們的獨特和內在優勢、我們的規模、我們的平台，當然還有我們的標誌性品牌，我們都處於有利地位。

Looking at the quarter, let's first turn to Gap brand.

看季度，讓我們首先轉向 Gap 品牌。

We discussed in March that we expected Gap brand to see some pressure in the first half largely due to the carryover of operational missteps that we have talked to you about before from the last fiscal year.

我們在 3 月份討論過，我們預計 Gap 品牌將在上半年面臨一些壓力，這主要是由於我們之前與您討論過的上一財年的運營失誤的結轉。

Teri will take you through the specifics in a moment, but I remain confident in the year and confident in the brand.

Teri 稍後將帶您了解具體細節，但我對這一年充滿信心，對品牌充滿信心。

We saw the problem.

我們看到了問題。

We took action.

我們採取了行動。

The performance of our other brands has met or exceeded our expectations despite cold weather.

儘管天氣寒冷，我們其他品牌的表現仍達到或超過了我們的預期。

Old Navy had another quarter of broad-based strength with a 2-year stack of 11.

Old Navy 擁有另外四分之一的廣泛實力，兩年累積 11 人。

Nearly all categories comped positively, and they continued in the first quarter of this year.

幾乎所有類別都出現了積極的競爭，並且在今年第一季度繼續增長。

We did see a slight drag due to weather.

由於天氣原因，我們確實看到了輕微的阻力。

That said, it's important to note we saw a dramatic improvement in trends when the weather turned late in April, and we've seen this continue into the second quarter.

也就是說，重要的是要注意，當 4 月下旬天氣轉折時，我們看到趨勢有了顯著改善，而且我們看到這種情況一直持續到第二季度。

For Old Navy, we saw growth in nearly all categories, with denim having the biggest quarter comp in the brand's history.

對於 Old Navy，我們看到幾乎所有品類都有增長，其中牛仔佈在品牌歷史上的季度佔比最高。

We opened 9 stores and are on track to reach our goal of over 60 Old Navy stores this year, and we're seeing very positive customer response to over 40 remodels that we've done already in the Old Navy fleet.

我們開設了 9 家門店，並有望在今年實現 60 多家 Old Navy 門店的目標，我們看到客戶對我們已經在 Old Navy 艦隊中進行的 40 多次改造做出了非常積極的反應。

Turning to Banana, and I would like you to turn to Banana.

轉向香蕉，我希望你轉向香蕉。

We are very encouraged by the momentum of the business and the brand's performance.

我們對業務的發展勢頭和品牌的表現感到非常鼓舞。

Under Mark's leadership, the brand has been leaning into the development of cleaner, better edited assortments that have a clear brand appropriate point of view.

在 Mark 的領導下，該品牌一直致力於開發更清潔、更好編輯的分類，這些分類具有清晰的品牌適合性觀點。

We're seeing favorable customer response to innovation and favorable customer response to fashion.

我們看到客戶對創新的良好反應和對時尚的良好反應。

Banana has also been investing in quality yarns and fabrics without increasing materially the AUC of the product through our strategic sourcing and productivity initiatives.

Banana 還通過我們的戰略採購和生產力計劃，在不顯著增加產品的 AUC 的情況下投資於優質紗線和麵料。

We've continued to see strength in sweaters, in bottoms and other loyalty categories as well as significant lift in dresses during the quarter.

我們繼續看到本季度毛衣、下裝和其他忠誠度類別的實力以及連衣裙的顯著提升。

We're pleased with the progress at Banana, and the team remains focused on driving momentum and consistency in the brand, and we believe that this has upside in our portfolio.

我們對 Banana 取得的進展感到滿意，團隊仍然專注於推動品牌的發展勢頭和一致性，我們相信這對我們的產品組合有好處。

At Athleta, I hope I say this and will continue to say this, we saw another strong quarter with double-digit growth.

在 Athleta，我希望我這麼說並將繼續這麼說，我們看到了另一個強勁的季度，實現了兩位數的增長。

And I believe that this gem in our portfolio, which is becoming a very nicely sized gem, remains underappreciated.

而且我相信我們投資組合中的這顆寶石，它正在成為一個非常大的寶石，仍然沒有得到充分的重視。

In addition to solid growth, we continue to build on our brand mission of social responsibility, and I want to underline this because I believe that this is something that we will continue to talk about as we go forward.

除了穩健增長外，我們還將繼續建立我們的社會責任品牌使命，我想強調這一點，因為我相信這是我們在前進過程中將繼續討論的話題。

Athleta has become a B -- or benefit corp certified.

Athleta 已成為 B 或福利公司認證。

Certification requires meeting rigorous standards across social and environmental performance, accountability and transparency.

認證要求在社會和環境績效、問責制和透明度方面達到嚴格的標準。

This makes Gap Inc.

這使得 Gap Inc.

the largest U.S. publicly traded retail company with a B Corp certified subsidiary apparel brand.

美國最大的上市零售公司，擁有 B Corp 認證的附屬服裝品牌。

Why does this matter?

為什麼這很重要？

This matters because this is a critical component of Athleta's strong brand identity and strong brand engagement.

這很重要，因為這是 Athleta 強大的品牌識別和強大的品牌參與度的關鍵組成部分。

I'm very proud of the team.

我為球隊感到非常自豪。

I'm very proud of this significant step that we've taken forward.

我為我們向前邁出的這一重要一步感到非常自豪。

Now I'll turn it over to Teri, and she'll provide some specifics around key financial highlights throughout the business.

現在我將把它交給 Teri，她將圍繞整個業務的關鍵財務亮點提供一些細節。

Teri?

泰瑞？

Thanks, Art.

謝謝，藝術。

Good afternoon.

下午好。

As you heard from Art's comments, the quarter did present some challenges.

正如您從 Art 的評論中聽到的那樣，本季度確實存在一些挑戰。

Some were largely expected like the Gap brand operating issues, and others were less predictable like the unseasonably cold and snowy weather.

其中一些在很大程度上是意料之中的，例如 Gap 品牌的運營問題，而另一些則不太可預測，例如異常寒冷和下雪的天氣。

In the face of this, we were pleased to report our sixth consecutive quarter of positive comps.

面對這種情況，我們很高興地報告了我們連續第六個季度的積極業績。

We continue to feel very good about the balanced growth strategy and the underlying momentum of the business, which allows us to maintain our outlook for the year.

我們繼續對平衡的增長戰略和業務的潛在動力感到非常好，這使我們能夠維持對今年的展望。

For the quarter, the issues at Gap brand drove the majority of the gross margin deleverage.

本季度，Gap 品牌的問題推動了大部分毛利率的去槓桿化。

As you know, Gap brand has been undergoing significant operating model improvements over the past year, and there have been changes to both processes and people over that time.

如您所知，Gap 品牌在過去一年中經歷了重大的運營模式改進，在此期間流程和人員都發生了變化。

And while we're confident these changes will prove to be positive over the long run, they caused some missteps for the spring and summer season.

雖然我們相信這些變化從長遠來看將是積極的，但它們在春季和夏季造成了一些失誤。

The root cause of the challenges is not significant product acceptance issues but rather operational missteps around timing of inventory receipts, breadth of the assortment and lack of depth in some categories.

挑戰的根本原因不是重大的產品驗收問題，而是圍繞庫存接收時間、分類廣度和某些類別缺乏深度的操作失誤。

On last quarter's call, we talked about being heavy on inventory in Gap brand heading into Q1, which impacted gross margin as expected.

在上個季度的電話會議上，我們談到了進入第一季度的 Gap 品牌庫存過多，這正如預期的那樣影響了毛利率。

In addition, we had some receipt flow issues that compounded the problem.

此外，我們還遇到了一些收據流程問題，使問題更加複雜。

Throughout the quarter, the timing of inventory flows affected the time on offer and the ability to optimize margins.

在整個季度，庫存流動的時間影響了提供時間和優化利潤的能力。

We're addressing the issues that affected margin in the quarter.

我們正在解決影響本季度利潤率的問題。

We expect pressure to continue into Q2 but not to the same degree we experienced in Q1 as we've already moved aggressively to enter the back half in a much better shape.

我們預計壓力將持續到第二季度，但不會達到我們在第一季度所經歷的程度，因為我們已經積極採取行動以更好的狀態進入後半部分。

During the quarter, we made some strategic decisions to aggressively clear inventory through selloff.

在本季度，我們做出了一些戰略決策，通過拋售積極清理庫存。

We also incurred some expense as we proactively cut CCs originally planned for the back half.

由於我們主動削減了原計劃用於後半部分的 CC，我們也產生了一些費用。

While these actions negatively impacted margin rate in the quarter, it does set us up for cleaner stores in Q2 and better inventory positioning for the back half.

雖然這些行動對本季度的利潤率產生了負面影響，但它確實為我們在第二季度建立了更清潔的商店並為後半段提供了更好的庫存定位。

Now most importantly, we're reinstilling operating discipline and leadership accountability across the organization.

現在最重要的是，我們正在整個組織內重新灌輸運營紀律和領導責任。

In February, we announced the appointment of an interim leader for Gap brand with extensive operations experience, and he's doing an excellent job with the team to right the ship and ensure the second half will regain some momentum we had been seeing prior to these operational issues.

2 月，我們宣布任命 Gap 品牌的臨時負責人，他擁有豐富的運營經驗，他在團隊中做得非常出色，以糾正船舶並確保下半年將恢復我們在這些運營問題之前看到的一些勢頭.

So now let me turn to the first quarter performance.

那麼現在讓我談談第一季度的表現。

And I'd like to note our first quarter reported results include the impacts from the adoption of the new revenue recognition standards.

我想指出我們第一季度報告的結果包括採用新收入確認標準的影響。

And as a reminder, the adoption isn't expected to be impactful to our earnings, but it will change the classification of certain line items in our P&L.

提醒一下，預計採用不會對我們的收益產生影響，但它將改變我們損益表中某些項目的分類。

The most significant impact comes from the recognition of income related to our credit card and loyalty program.

最顯著的影響來自與我們的信用卡和忠誠度計劃相關的收入的確認。

Now historically, this income was classified as an offset to SG&A and COGS.

現在，從歷史上看，該收入被歸類為對 SG&A 和 COGS 的抵消。

But under the new rules, we are presenting this income in sales.

但在新規則下，我們以銷售額的形式呈現這一收入。

For the first quarter, the accounting change resulted in an increase of $141 million to net sales, an increase of $91 million to gross margin as well as a $92 million increase in operating expenses.

第一季度，會計變更導致淨銷售額增加 1.41 億美元，毛利率增加 9100 萬美元，運營費用增加 9200 萬美元。

To be helpful, we've included a slide in our quarterly earnings presentation and a table in our press release that details Q1 2018 results with and without the impacts from adoption.

為了提供幫助，我們在季度收益報告中加入了一張幻燈片，並在我們的新聞稿中加入了一張表格，詳細說明了 2018 年第一季度的業績，無論是否受到採用的影響。

Both can be found on the Investors section of gapinc.com and, of course, will be available after the call to help with any modeling questions.

兩者都可以在 gapinc.com 的“投資者”部分找到，當然，在電話會議後可以幫助解決任何建模問題。

So let me start with sales.

所以讓我從銷售開始。

Due to 53rd week in fiscal year 2017, for consistency, our Q1 2018 comparable sales are compared to the 13-week period ended May 6, 2017.

由於 2017 財年第 53 週，為保持一致性，我們將 2018 年第一季度的可比銷售額與截至 2017 年 5 月 6 日的 13 週期間進行了比較。

On this basis, the company's comp sales for Q1 2018 were up 1%, as I said, marking the sixth consecutive quarter of positive comp sales.

在此基礎上，該公司 2018 年第一季度的銷售額增長了 1%，正如我所說，這是連續第六個季度實現正銷售額。

Now we haven't quantified the weather impact on the quarter, but after what has been reported to be the coldest winter in several years and the snowiest April in 21 years, it's fair to assume weather negatively impacted the quarter.

現在我們還沒有量化天氣對本季度的影響，但在報導了幾年來最冷的冬天和 21 年來降雪最多的四月之後，假設天氣對本季度產生了負面影響是公平的。

As you'd expect, the Northeast, where weather was particularly unseasonable, had softer performance.

如您所料，天氣特別反常的東北地區表現疲軟。

Our net sales for the quarter were $3.8 billion.

我們本季度的淨銷售額為 38 億美元。

When excluding the impact from the adoption of the new rev rec standards, this represents growth of about 6% over Q1 2017.

如果排除採用新 rev rec 標準的影響，這意味著比 2017 年第一季度增長約 6%。

Now on this basis, a little more than half of the 5-point spread between net sales growth and comp sales was due to the impact of the calendar shift created by the 53rd week in 2017.

現在在此基礎上，淨銷售額增長與復合銷售額之間 5 個百分點的差距中，有一半以上是由於 2017 年第 53 週造成的日曆變化的影響。

As a reminder, this year's first quarter dropped a small week in February and then at a larger, more full price selling week in May.

提醒一下，今年第一季度在 2 月下降了一個小周，然後在 5 月以更大、更全價的銷售週下降。

Now at the brand level, despite unseasonably colder weather throughout the quarter, Old Navy delivered positive 3 comp against last year's very strong plus 8. We are pleased to see another quarter of broad-based strength across all categories and positive AUR as Old Navy continues to grow its market share and solidify its position as a top apparel brand.

現在在品牌層面，儘管整個季度的天氣異常寒冷，Old Navy 與去年非常強勁的 + 8 相比，實現了正 3 的比較。隨著 Old Navy 的繼續，我們很高興看到所有類別的另一個季度的廣泛實力和正的 AUR以擴大其市場份額並鞏固其作為頂級服裝品牌的地位。

We also were pleased that Banana Republic delivered a positive 3 comp against negative 4 last year.

我們也很高興 Banana Republic 提供了積極的 3 對比去年的消極 4。

This is the second consecutive quarter of positive comp for Banana as it continues to focus on its pillar categories.

這是 Banana 連續第二個季度實現正收益，因為它繼續專注於其支柱類別。

Similar to Old Navy, Banana achieved growth in nearly every category.

與 Old Navy 類似，Banana 幾乎在每個類別都實現了增長。

At Gap, comp sales were down 4 against negative 4 last year for the reasons we talked about.

由於我們談到的原因，在 Gap，comp 銷售額下降了 4，而去年為負 4。

And as Art mentioned, the trend in both Athleta and in our online business remain very strong.

正如 Art 所提到的，Athleta 和我們的在線業務的趨勢仍然非常強勁。

Despite the Gap impact, we were pleased to deliver our sixth consecutive quarter of positive AUR growth driven by Old Navy and Banana Republic.

儘管存在 Gap 影響，但我們很高興在 Old Navy 和 Banana Republic 的推動下連續第六個季度實現 AUR 正增長。

Turning to gross margin.

轉向毛利率。

On a reported basis, gross margin was 37.7%.

根據報告，毛利率為 37.7%。

$91 million or 100 basis points of expansion was driven by revenue recognition adoption.

收入確認採用推動了 9100 萬美元或 100 個基點的擴張。

Excluding that impact, first quarter gross margin declined 120 basis points, driven by a merchandise margin decline of 180 basis points, partially offset by 60 basis points of rent and occupancy leverage.

排除這種影響，第一季度毛利率下降了 120 個基點，原因是商品利潤率下降了 180 個基點，部分被 60 個基點的租金和入住率所抵消。

The merch margin was at the lower end of our planning scenarios.

商品利潤率處於我們計劃情景的低端。

Some of it was the weather impacts, but the majority was due to the strategic decisions we made at Gap brand to more aggressively clear inventory.

其中一些是天氣影響，但大部分是由於我們在 Gap 品牌做出的更積極地清理庫存的戰略決策。

This accounted for about $28 million or 80 basis points of merch margin deleverage.

這佔商品保證金去槓桿的大約 2800 萬美元或 80 個基點。

The remaining deleverage was driven by higher promotional activity at Gap brand.

剩餘的去槓桿化是由 Gap 品牌更高的促銷活動推動的。

Rent and occupancy leverage was primarily driven by the shift caused by the 53rd week last year.

租金和入住率的槓桿率主要是由去年第 53 週造成的轉變推動的。

On SG&A, again, on a reported basis, first quarter total operating expenses were $1.2 billion.

在 SG&A 方面，根據報告，第一季度總運營費用為 12 億美元。

The adoption of rev rec resulted in a $92 million increase in operating expenses and accounted for 130 basis points of operating expense deleverage.

rev rec 的採用導致運營費用增加 9200 萬美元，並佔運營費用去槓桿化的 130 個基點。

Excluding the impact from the adoption of rev rec, first quarter SG&A leveraged about 10 basis points, also benefiting from the calendar shift.

排除採用 rev rec 的影響，第一季度 SG&A 槓桿率約為 10 個基點，也受益於日曆變化。

We remain focused on productivity and took a hard look at expenses during the quarter.

我們仍然專注於生產力，並仔細研究了本季度的費用。

The entire company is engaged in how we can drive operational efficiency.

整個公司都在致力於提高運營效率。

These efforts increase the quality and efficiency of our processes and free up funding for growth investments.

這些努力提高了我們流程的質量和效率，並為增長投資騰出了資金。

A good example is store technology, where we're adding new mobile devices that improve our in-stock levels and speed up the checkout process, both levers that can improve conversion and deliver growth.

一個很好的例子是商店技術，我們正在添加新的移動設備，以提高我們的庫存水平並加快結帳流程，這兩個槓桿都可以提高轉化率並實現增長。

Moving to taxes.

轉向稅收。

Our first quarter effective rate was 25.1%.

我們第一季度的有效率為 25.1%。

The lower rate was primarily due to the geographical mix of earnings, and we continue to expect a full year effective tax rate of about 26%.

較低的稅率主要是由於收益的地域組合，我們繼續預計全年有效稅率約為 26%。

On earnings, our first quarter earnings per share were $0.42, which included the benefit from the calendar shift created by the 53rd week last year.

在收益方面，我們第一季度的每股收益為 0.42 美元，其中包括去年第 53 週帶來的日曆變化帶來的收益。

FX did not have a material impact on earnings per share.

外匯對每股收益沒有重大影響。

Free cash flow was negative $204 million, which reflects a higher bonus payout versus last year.

自由現金流為負 2.04 億美元，這反映了與去年相比更高的獎金支出。

We ended the quarter with $1.4 billion of cash, cash equivalents and short-term investments, comfortably within our target cash threshold.

我們在本季度結束時擁有 14 億美元的現金、現金等價物和短期投資，完全在我們的目標現金門檻之內。

Consistent with our commitment to returning cash to shareholders, we completed a $100 million of share repurchases in Q1 and paid dividends of $94 million.

根據我們向股東返還現金的承諾，我們在第一季度完成了 1 億美元的股票回購，並支付了 9400 萬美元的股息。

We ended the quarter with 387 million shares outstanding.

我們在本季度末發行了 3.87 億股流通股。

We ended the quarter with inventory up 4% compared with the first quarter of 2017.

與 2017 年第一季度相比，我們在本季度末的庫存增加了 4%。

This incorporates some lower in-transit inventory effects due to timing.

這包括由於時間安排而導致的一些較低的在途庫存影響。

While we are heavier on inventory at Gap brand than we would have liked, overall, we feel good about where we ended the quarter for the company.

雖然我們在 Gap 品牌的庫存比我們希望的要重，但總的來說，我們對公司在本季度結束時的表現感覺良好。

Regarding capital and store count.

關於資本和商店數量。

Our capital expenditures were $138 million.

我們的資本支出為 1.38 億美元。

On a net basis, we've opened 6 company-operated stores to date and ended the quarter with 3,171 company-operated stores.

按淨值計算，迄今為止，我們已經開設了 6 家公司直營店，本季度末公司直營店達到 3,171 家。

In line with our strategy, openings are focused on the value and active space, while closures will continue to be weighted towards Gap and Banana Republic specialty.

根據我們的戰略，新開業的重點是價值和活躍空間，而關閉將繼續側重於 Gap 和 Banana Republic 專業。

While there were challenges in the quarter, Q1 results were within the range of scenarios embedded in our initial full year outlook.

儘管本季度存在挑戰，但第一季度業績在我們最初的全年展望中所包含的情景範圍內。

We are affirming our full year earnings per share guidance range of $2.55 to $2.70 although, clearly, our ability to get to the high end of that range will be more challenging given the Q1 start.

我們確認我們的全年每股收益指導範圍為 2.55 美元至 2.70 美元，儘管很明顯，鑑於第一季度開始，我們達到該範圍高端的能力將更具挑戰性。

As Art noted, when we saw weather trends improve, we saw a dramatic inflection in trends across the portfolio and feel -- we feel good with our start to Q2.

正如 Art 指出的那樣，當我們看到天氣趨勢有所改善時，我們看到整個投資組合和感覺的趨勢發生了戲劇性的變化——我們對第二季度的開始感覺良好。

With regards to GAAP, as we said last March, we expected challenges to pressure the first half, and we continue to expect margin pressure in the second quarter but not to the same degree we saw in the first quarter given we've had the chance to impact the quarter.

關於 GAAP，正如我們去年 3 月所說，我們預計上半年將面臨挑戰，我們繼續預計第二季度的利潤率壓力，但不會達到我們在第一季度看到的相同程度，因為我們有機會影響本季度。

While we do not guide the gross margin at the Gap Inc.

雖然我們不指導 Gap Inc. 的毛利率。

level, for Gap brand, we do expect merch margin pressure to be about half of what the brand experienced in the first quarter.

水平，對於 Gap 品牌，我們確實預計商品利潤率壓力約為該品牌第一季度經歷的一半。

We said that some degree of quarter variability is inevitable considering our portfolio of brands and macro factors.

我們說過，考慮到我們的品牌組合和宏觀因素，一定程度的季度波動是不可避免的。

We are making the decisions that we believe are consistent with our balanced growth strategy, which is the right path forward for the company.

我們正在做出我們認為符合我們平衡增長戰略的決策，這對公司來說是正確的前進道路。

We still have opportunities to improve as Art indicated, particularly as we work through the operational issues with the Gap brand.

正如 Art 所說，我們仍有改進的機會，尤其是在我們解決 Gap 品牌的運營問題時。

But the underlying fundamentals of our portfolio of brands against our strategic priorities remain strong.

但是，我們品牌組合的基本面與我們的戰略重點相比仍然強勁。

Just a couple of housekeeping matters before I turn it back over to Art.

在我把它交還給 Art 之前，我只需要處理幾件家務。

Regarding the 53rd week, as a reminder, our annual guidance range includes the negative impact from the loss of the 53rd week of about $0.06.

關於第 53 週，提醒一下，我們的年度指導範圍包括第 53 週損失約 0.06 美元的負面影響。

We do not expect the timing shifts caused by the 53rd week to have a meaningful impact on the second or the third quarter.

我們預計第 53 週造成的時間變化不會對第二或第三季度產生有意義的影響。

Just as the first quarter benefited from the calendar shift, the fourth quarter is expected to be negatively impacted by more than the shift benefit in Q1 due to the loss of the 53rd week.

正如第一季度受益於日曆轉變一樣，由於第 53 週的損失，預計第四季度受到的負面影響將超過第一季度的轉變收益。

And then on the adoption of rev rec and our guidance.

然後是通過 rev rec 和我們的指導。

In March, we provided full year 2018 guidance for net sales spread and SG&A as a percentage of sales.

3 月，我們提供了 2018 年全年淨銷售額差價和 SG&A 佔銷售額百分比的指引。

Specifically, we noted that for the full year 2018, we expect spread to be flat to up slightly as we expect the loss of the 53rd week to be offset by new store sales growth and the translation benefit from foreign exchange and SG&A as a percent of net sales to be about flat as productivity offsets increase investments.

具體來說，我們注意到，對於 2018 年全年，我們預計第 53 週的損失將被新店銷售增長以及外彙和 SG&A 的換算收益（佔由於生產力抵消了投資增加，淨銷售額基本持平。

Just to clear up any confusion because there are a lot of moving parts in everyone's reporting these days, this guidance holds when looking at year-over-year compares on a like-for-like basis with and without the impact of revenue recognition.

只是為了澄清任何混淆，因為這些天每個人的報告中都有很多變動的部分，當在有和沒有收入確認影響的情況下查看同比比較時，該指南適用。

So with that, I'm going to turn it back over to Art.

因此，我將把它轉回給藝術。

Thanks, Teri, appreciate it.

謝謝，泰瑞，感激不盡。

This is -- for those of you that attend this call on an ongoing basis, this is typically where it ends.

這是——對於那些持續參加本次電話會議的人來說，這通常是結束的地方。

But I really do want to underline a few points here and then, obviously, we'll open it up for questions.

但我真的想在這裡強調幾點，然後，很明顯，我們會提出問題。

A few points that are important to me and I believe supercritical to the overall investment thesis of the company.

有幾點對我很重要，我認為對公司的整體投資論點至關重要。

First, I cannot underline enough our balanced growth strategy.

首先，我無法充分強調我們的平衡增長戰略。

We are heads down executing against it.

我們正在低頭執行它。

Teri outlined the components.

Teri 概述了這些組件。

We're going to continue to push down that path, and I have absolute conviction that it is the right path for the company.

我們將繼續沿著這條道路前進，我堅信這對公司來說是正確的道路。

I want to talk about productivity for a moment.

我想談談生產力。

And we've talked about this, Teri mentioned this.

我們已經討論過這個，Teri 提到了這個。

I want to underline it and point out to you my conviction about the opportunity and my conviction about the fact that we will deliver against this opportunity.

我想強調這一點，並向你指出我對這個機會的信念，以及我對我們將利用這個機會實現這一事實的信念。

We did note that there was expense leverage in the quarter and some benefit from the 53rd week.

我們確實注意到本季度存在費用槓桿，並且從第 53 週受益。

But in line with guidance, the entire company is taking an intense, consistent and ongoing look at how we drive operational efficiency in our cost structure.

但根據指導，整個公司正在密切、一致和持續地研究我們如何在成本結構中提高運營效率。

Real estate is another critical area, and we spend a lot of time talking with you about real estate.

房地產是另一個關鍵領域，我們花了很多時間與您討論房地產。

We continue to optimize the fleet, and we will continue to optimize the fleet, including reducing exposure to low productivity stores wherever they are.

我們將繼續優化車隊，我們將繼續優化車隊，包括減少對低生產力商店的接觸，無論他們在哪裡。

But these largely are mall-based and are represented by the specialty portion of our footprint.

但這些主要是基於購物中心的，並以我們足蹟的專業部分為代表。

At the same time, we do see a store growth opportunity, and we will continue to invest in stores where we can achieve quality growth and quality profitability.

同時，我們確實看到了門店增長機會，我們將繼續投資能夠實現優質增長和優質盈利的門店。

In some places, that means opening new locations largely in the value and active space, meaning Athleta, Old Navy and the factory and outlet expressions of Banana Republic and Gap.

在某些地方，這意味著在價值和活躍空間中開設新的地點，這意味著 Athleta、Old Navy 以及 Banana Republic 和 Gap 的工廠和直銷店。

We're also renovating some current locations that are healthy and productive but where we know we can see even greater upside.

我們還翻新了一些現有的健康和高效的地點，但我們知道我們可以看到更大的上升空間。

We're starting to see the results of the work.

我們開始看到工作的成果。

In 2017, store traffic outpaced industry trends all year, and that continued into Q1 across the portfolio.

2017 年，門店客流量全年都超過了行業趨勢，這一趨勢一直持續到整個產品組合的第一季度。

I also noted that we have a large and fast-growing online and mobile business.

我還注意到，我們擁有龐大且快速增長的在線和移動業務。

It's a critical component.

它是一個關鍵組成部分。

It is one of the largest online apparel businesses in the world, and it is one that we have deep conviction to continue to grow and to continue to invest in.

它是世界上最大的在線服裝企業之一，我們堅信會繼續發展並繼續投資。

We're also investing in store technology.

我們也在投資商店技術。

We're adding new mobile devices that can improve our in-stock and service levels and speed up the checkout process.

我們正在添加新的移動設備，這些設備可以提高我們的庫存和服務水平，並加快結賬流程。

We're also lighting up in Old Navy, buy online and pick up in store, which we believe has the opportunity to continue to unlock how the customer shops seamlessly across both of our channels.

我們還在 Old Navy 中點亮，在線購買並在商店取貨，我們相信這有機會繼續解鎖客戶如何通過我們的兩個渠道無縫購物。

We believe these levers can improve conversion, and we're investing in digital experience and fulfillment initiatives beyond this that enable us to engage with our customers in a more meaningful way.

我們相信這些槓桿可以提高轉化率，我們正在投資數字體驗和履行計劃，使我們能夠以更有意義的方式與客戶互動。

In closing, I want to reiterate the confidence that Teri and I both have in the strategy and in the company.

最後，我想重申我和 Teri 對戰略和公司的信心。

We outlined this last fall, and it has remained steadfast and unchanged.

我們在去年秋天概述了這一點，它一直保持不變。

We're focused on balanced growth, continuing to support accelerating growth in active and value, supporting and investing in our progress in digital and accelerating the growth of our digital business and how that connects to customer experience, rationalizing nonperforming real estate and driving SG&A productivity.

我們專注於平衡增長，繼續支持活躍和價值的加速增長，支持和投資我們在數字方面的進步，加速我們的數字業務的增長以及如何與客戶體驗聯繫起來，使不良房地產合理化並推動 SG&A 生產力.

The last point that I want to underline is one that, honestly, there's been relatively little dialogue but is still material and important, and that is the benefit that we receive from tax reform changes.

我想強調的最後一點是，老實說，對話相對較少，但仍然具有實質性和重要意義，這就是我們從稅制改革中獲得的好處。

As I noted in our end-of-year call, this does open up significantly the earnings capacity of the company.

正如我在年終電話會議中指出的那樣，這確實極大地打開了公司的盈利能力。

Thank you, and now we'll open up for questions.

謝謝，現在我們將開放提問。

We'll take our first question today from Paul Trussell, Deutsche Bank.

我們今天將向德意志銀行的 Paul Trussell 提出第一個問題。

You outlined a number of issues impacting the Gap banner business.

您概述了影響 Gap 橫幅業務的一些問題。

Can you just rank for us what was most impactful to the banner in 1Q?

您能否為我們排名第一季度對橫幅影響最大的因素？

And what exactly is improving to alleviate the margin pressure as we go into the second quarter and will allow for a balance in the business in the second half, if it's the inventory position improved processes, et cetera?

當我們進入第二季度時，究竟有什麼改善可以緩解利潤率壓力，並在下半年實現業務平衡，如果是庫存狀況改善流程等等？

Yes.

是的。

And obviously, over the course of the quarter, we were able to impact a number of the components that brought us to where we were in Q1, meaning we were able to stabilize the processes, we were able to get in and start to address some of the inventory flow issues.

顯然，在本季度的過程中，我們能夠影響一些將我們帶到第一季度的組件，這意味著我們能夠穩定流程，我們能夠進入並開始解決一些問題庫存流動問題。

But just because of the lead time that exists, we simply were not able to get through it all.

但僅僅因為存在的提前期，我們根本無法完成這一切。

And that's part of the reason we made the somewhat painful decision to strategically sell off some of the inventory and just get it clean.

這也是我們做出有點痛苦的決定的部分原因，即戰略性地出售一些庫存並把它清理乾淨。

As we got in there and realized that there was -- in addition to the flow timing, there was an assortment issue.

當我們到達那裡並意識到除了流動時間之外，還有一個分類問題。

We just ended up being more over-assorted than we think is good for the brand, and the stores were just not clean enough to allow our customers to really see through to the quality of the brand and product we have there.

我們只是最終變得比我們認為對品牌有利的種類更多，而且商店不夠乾淨，無法讓我們的客戶真正了解我們在那裡擁有的品牌和產品的質量。

So as part of that, we made the decision to drive out some inventory, and then we worked aggressively to start cutting forward receipts.

因此，作為其中的一部分，我們決定淘汰一些庫存，然後我們積極努力開始削減收貨。

But some of that will come through in Q2, which is why we see the moderating effect, but it won't be all the way divided until the second half.

但其中一些將在第二季度實現，這就是為什麼我們會看到調節效應，但直到下半年才會完全分開。

But let me add a little bit to that because this is important, and I think it's a really critical question.

但是讓我補充一點，因為這很重要，而且我認為這是一個非常關鍵的問題。

So just to build on Teri, rightsizing our inventories, we wanted to accelerate the movement of units in the business.

因此，為了在 Teri 的基礎上進一步調整我們的庫存，我們希望加快業務部門的移動。

And we took action which we felt maximized the yield out of all of those units, whether it's inside of our stores or jobbing inventory out.

我們採取了我們認為最大限度地提高所有這些單位的產量的行動，無論是在我們的商店內部還是在清理庫存。

My experience now has been -- and this is kind of universal, is if you have too much inventory or the wrong inventory, holding on to it does not make it better.

我現在的經驗是——這有點普遍，如果你有太多的庫存或錯誤的庫存，堅持它並不會讓它變得更好。

And so we were very decisive on that and took those actions.

所以我們對此非常果斷並採取了這些行動。

It wasn't without pain, but we believe it was absolutely the right thing to do to continue to clean up the business and position it for better performance as we get into Q2 and then into the back half.

這並非沒有痛苦，但我們相信，隨著我們進入第二季度，然後進入後半部分，繼續清理業務並將其定位為更好的表現絕對是正確的做法。

So that was critical.

所以這很關鍵。

We've also narrowed and cut back on CC and style assortments as we get into fall and, particularly, in holiday.

隨著我們進入秋季，特別是在假期，我們還縮小並減少了 CC 和款式分類。

What that allows us to do is, number one, clearer point of view in the stores; and secondly, more depth behind our big key items and our drivers, which is always important in this business.

讓我們做的是，第一，在商店中更清晰的觀點；其次，更深入地了解我們的主要關鍵項目和驅動因素，這在這項業務中一直很重要。

There was also some technical issues as we've been standing up our inventory assortment and allocation tools, and we identified those and have resolved those.

當我們一直在使用我們的庫存分類和分配工具時，還存在一些技術問題，我們發現並解決了這些問題。

And those were not immaterially important in many of the late POs that got -- that were being placed, and we've resolved that largely fully as we get into the back half.

在許多後期的 PO 中，這些並不是無關緊要的——那些被放置的，當我們進入後半部分時，我們已經在很大程度上完全解決了這個問題。

So there's a number of material things that we did, knowing where we wanted the business to be.

因此，我們做了許多重要的事情，知道我們希望業務在哪裡。

And again, we took action quickly and decisively to make those changes.

同樣，我們迅速果斷地採取了行動來做出這些改變。

A really quick follow-up, I just wanted to touch on the slide in your presentation that shows quite strong online growth.

一個非常快速的跟進，我只是想談談你演示文稿中顯示相當強勁的在線增長的幻燈片。

Can you just speak about the drivers overall to the acceleration this past quarter and perhaps which banners are contributing the most to that growth?

您能否談談上個季度整體加速的驅動因素，以及哪些橫幅廣告對這種增長的貢獻最大？

And then lastly, on online, just curious if you can speak to the margin profile of that business today.

最後，在網上，只是好奇你是否可以談談今天該業務的利潤率概況。

Yes.

是的。

I -- the thing that makes me most pleased to talk about the acceleration and strength of the online growth is that it's not one thing or one brand.

我 - 最讓我高興地談論在線增長的加速和力量是它不是一件事或一個品牌。

It is very diversified across our portfolio, and it is not predicated on one specific aspect.

它在我們的投資組合中非常多樣化，並且不以某一特定方面為基礎。

If I could just tick through a few things.

如果我能在幾件事上打勾就好了。

We've continued to focus on growing our customer file, starting with customer information capture in our stores and the other aspects that we bring customers into active relationships with the company.

我們繼續專注於擴大我們的客戶檔案，從我們商店中的客戶信息捕獲以及我們將客戶與公司建立積極關係的其他方面開始。

We've had an enterprise-wide executive on that now, and it's -- enterprise-wide incentive on that as part of the bonus structure, now in its second year, and we're getting significant traction on that.

我們現在已經有一個企業範圍內的高管，這是 - 作為獎金結構的一部分，企業範圍內的激勵措施，現在已經是第二年了，我們在這方面獲得了很大的吸引力。

That's related to our traffic and to our file size.

這與我們的流量和文件大小有關。

And then it's a wide variety of things, whether it's service level on our basic products; improving our site load speeds; continuing to improve our app experience, which now is all closing in on 5 stars in terms of their rating; continuing to tune and tweak and test our checkout process, our navigation process.

然後是各種各樣的東西，無論是我們基本產品的服務水平；提高我們的網站加載速度；繼續改善我們的應用程序體驗，現在它們的評分都接近 5 星；繼續調整和調整和測試我們的結帳過程，我們的導航過程。

I mean what the reality of the online business is that it is about a constant set of incremental improvements, none of which turn the trajectory of the business but all add up to see, what I hope you find and we do, to be a very satisfying acceleration of the growth rate of the business across the portfolio.

我的意思是在線業務的現實是，它是關於一組不斷的增量改進，這些都沒有改變業務的軌跡，但所有這些都加起來看看，我希望你找到什麼，我們做什麼，成為一個非常整個投資組合的業務增長速度令人滿意。

(Operator Instructions) Our next question comes from Dana Telsey, Telsey Advisory Group.

（操作員說明）我們的下一個問題來自 Telsey 諮詢小組的 Dana Telsey。

As you think about the Gap brand and the changes going on there, what are you seeing in product acceptance that gives confidence in the improving trajectory at Gap?

當您考慮 Gap 品牌以及那裡正在發生的變化時，您在產品接受度方面看到了什麼，這讓您對 Gap 的改進軌跡充滿信心？

And also, any more color on Banana, what you're seeing there and same thing for Old Navy.

而且，香蕉上還有更多顏色，你在那裡看到的和老海軍的一樣。

Thanks, Dana.

謝謝，達娜。

I think it's a very good question, and let me just talk across that.

我認為這是一個很好的問題，讓我談談這個問題。

And this was very much on my mind.

這在我心中非常重要。

We mentioned the weather challenges, you know what the weather has been like as it was in Q1, where unseasonable cool, rain, snow, et cetera.

我們提到了天氣挑戰，你知道第一季度的天氣是什麼樣的，不合時宜的涼爽，下雨，下雪等等。

And obviously, a number of people, including us, saw that, that had some impact on the business.

顯然，包括我們在內的許多人都看到了這一點，這對業務產生了一些影響。

Not being one to casually play the weather card, I spent a disproportionate amount of my time in our stores and looking at our product reviews across all of our brands online, digging super deep to see if we were fooling ourselves or if there was actually some sort of a product acceptance issue.

我不是隨便打天氣牌的人，我在商店里花了大量的時間，在網上查看我們所有品牌的產品評論，深入挖掘，看看我們是否在自欺欺人，或者是否真的有一些某種產品驗收問題。

Now we will never have all of our product perfect, but I also know that I have a sufficiently good relationship with the stores that if we have product issues, they're going to tell me about it when we go in the stores.

現在我們永遠不會讓我們所有的產品都完美無缺，但我也知道我與商店的關係足夠好，如果我們有產品問題，他們會在我們去商店時告訴我。

And I did not come away with a belief that there was a significant product acceptance issue.

而且我並沒有相信存在重大的產品接受問題。

There's a style here, a color there, et cetera, but we felt good across the whole portfolio that we actually had strong product that was on trend and properly assorted.

這裡有一種風格，那裡有一種顏色，等等，但我們在整個產品組合中感覺很好，我們實際上擁有強大的產品，這些產品很流行，而且分類得當。

Now in Gap brand, the issue was, as we've noted, the net of the impact of the receipts, some CC and style expansion that did result in the fact that the stores looked and felt and were over-assorted.

現在在 Gap 品牌中，正如我們所指出的，問題在於收據的影響、一些 CC 和風格擴張確實導致商店的外觀和感覺以及過度分類的事實。

I think the change in the stores has been obvious as we've taken some of the inventory levels down and gotten some of the styles and CCs out.

我認為商店的變化是顯而易見的，因為我們已經降低了一些庫存水平並取出了一些款式和 CC。

And what's left is product that can breathe, is seasonally appropriate, and we're seeing the customer respond to it.

剩下的是可以呼吸、適合季節性的產品，我們正在看到客戶對它的反應。

And again, I can say key categories where it's working, the body business is very strong.

再說一次，我可以說它正在發揮作用的關鍵類別，車身業務非常強大。

We're seeing good strength in bottoms and, particularly, in denim.

我們看到下裝的強度很高，尤其是牛仔布。

When the weather turned, we saw the shorts business come back online across the company.

當天氣轉折時，我們看到短褲業務在整個公司重新上線。

So Gap, no significant problems.

所以Gap，沒有什麼大問題。

In Banana, the assortment has and will continue to quiet down, with some of the excess detail and fashion frills being removed from the assortment.

在 Banana，該分類已經並將繼續安靜下來，一些多餘的細節和時尚裝飾被從分類中刪除。

The color palette has quieted down back to where Banana should be, which is a bit of color and print on a platform of sophisticated, easy to wear and versatile neutrals.

調色板已經平靜下來，回到了 Banana 應有的位置，在精緻、易於穿著和多功能的中性色的平台上添加了一點顏色和印花。

We've improved the fabrications.

我們改進了製造工藝。

Our customer is responding to it.

我們的客戶正在回應它。

The dresses business is very strong as are several of the other businesses.

禮服業務和其他幾項業務一樣非常強大。

And so we knew that when we made those changes, the customer was going to respond because the feedback was clear, and we're seeing exactly the response that we expected.

所以我們知道，當我們做出這些改變時，客戶會做出回應，因為反饋很明確，而且我們看到的正是我們預期的回應。

And then the men's business has continued to chug along and is quite solid there, with the notable issue in the men's business that as we've continued to introduce innovation, largely at the fiber yarn and fabric level with our stretch fabrications, with our 37.5 fabrication, et cetera, we've seen men respond in a really good way to the innovation that we're bringing into ready-to-wear apparel.

然後男裝業務繼續發展，並且在那里相當穩固，男裝業務的一個顯著問題是，隨著我們繼續引入創新，主要是在纖維紗線和麵料層面，我們的彈力面料，我們的 37.5製造等等，我們已經看到男性對我們為成衣帶來的創新做出了非常好的反應。

Old Navy, I was in there in mid-April, and I was wondering do we have too many off-the-shoulder tops and dresses.

老海軍，四月中旬我在那裡，我想知道我們是否有太多露肩上衣和連衣裙。

The weather turned, and we've seen the sell-throughs go to where we expected them to be.

天氣變了，我們已經看到銷售量達到了我們預期的水平。

We had probably a little bit of over-assortment in some prints in women's dresses and, again, we've moved through those with no issues.

我們可能在女式連衣裙的一些印花中有點過度分類，而且，我們再次通過那些沒有問題的印花。

She's responding across the assortment.

她在整個分類中做出回應。

Denim is good.

牛仔布不錯。

Kids and baby business is solid.

兒童和嬰兒業務穩健。

And the men's business continues to chug along as well.

男裝業務也在繼續發展。

And then in Athleta, again, strong performance.

然後在 Athleta 中，再次表現強勁。

Swim is important in this quarter, and swim was not quite as strong as we wanted it to be.

游泳在本季度很重要，但游泳並沒有我們希望的那麼強。

I mean it's not a huge driver in the business, but that's the one place where we've looked at it and said, geez, we've probably got some issues there relative to the color palette, et cetera.

我的意思是它在業務中並不是一個巨大的驅動力，但這是我們看到它並說，天哪，我們可能在調色板等方面遇到了一些問題。

But largely and holistically, I am very pleased with our product acceptance.

但在很大程度上和整體上，我對我們的產品接受度感到非常滿意。

Our next question will come from Chethan Mallela, Barclays.

我們的下一個問題將來自巴克萊的 Chethan Mallela。

So I wanted to ask about the gross margin performance in the quarter, and it's clear that the Gap brand and the inventory clear-out had a sizable impact.

所以我想問一下本季度的毛利率表現，很明顯，Gap品牌和庫存清理產生了相當大的影響。

But can you give us a sense of how margins trended excluding those issues and how you're thinking about gross margins once you get past them?

但是，您能否讓我們了解排除這些問題後的利潤率趨勢，以及一旦超過這些問題，您是如何考慮毛利率的？

Yes.

是的。

So as you think about gross margin for the quarter, once you sort through all the accounting changes and so forth, you have to remember the compare on gross margin is actually against a very healthy improvement in Q1 of last year, so we already are against a pretty quality compare.

因此，當您考慮本季度的毛利率時，一旦您對所有會計變更等進行了排序，您必須記住毛利率的比較實際上與去年第一季度的非常健康的改善相對，所以我們已經反對一個相當質量的比較。

And so as we think about -- I'm not going to dissect it down to take out the various components, but I would say you can probably get some sense of the impact of those.

因此，正如我們所想的那樣——我不打算分解它來取出各種組件，但我想說你可能會對這些組件的影響有所了解。

And then as we see that moderating, the Gap Brand impacts moderating in Q2 and then moving to the back half, we have no reason to believe, given the AUR strength we've been seeing, the focus we have on AUC, that we wouldn't get back to our more typical margins with opportunity to continue to focus on how we expand those by focusing on our loyalty categories and driving growth in places where we have a clear opportunity to win.

然後當我們看到緩和，Gap 品牌影響在第二季度緩和然後移動到後半部分，我們沒有理由相信，鑑於我們一直看到的 AUR 實力，我們對 AUC 的關注，我們會不要回到我們更典型的利潤率，有機會繼續專注於我們如何通過專注於我們的忠誠度類別並在我們有明顯獲勝機會的地方推動增長來擴大這些利潤率。

Next up, we'll hear from Brian Tunick, The Royal Bank of Canada.

接下來，我們將聽取加拿大皇家銀行的 Brian Tunick 的來信。

I guess, Art, was curious on 2 fronts.

我猜，Art 對 2 個方面感到好奇。

One, maybe to hear your thoughts, other people are talking about a fashion cycle emerging right now and, obviously, you're talking about record denim results.

一，也許聽聽你的想法，其他人正在談論正在出現的時尚週期，顯然，你正在談論創紀錄的牛仔布結果。

So curious if you're seeing -- or the organization thinks we're on the cusp, we're seeing a fashion cycle or a big shift happening.

很好奇你是否看到 - 或者該組織認為我們正處於風口浪尖，我們正在看到一個時尚週期或正在發生的重大轉變。

And then the second point, you've talked about market share opportunities before, so it sounds like fast fashion, no longer gaining market share.

然後第二點，你之前談過市場份額機會，所以聽起來像是快時尚，不再獲得市場份額。

Do you see opportunities in the same malls or strip centers where you're located?

您是否在您所在的同一個購物中心或脫衣舞中心看到了機會？

Yes.

是的。

So on the fashion cycle, I'm hearing about that as well.

所以在時尚週期，我也聽說過。

And honestly, my experience is that you can kind of find whatever fashion cycle you want if you look hard enough and talk to enough people.

老實說，我的經驗是，如果你足夠努力並與足夠多的人交談，你就能找到你想要的任何時尚週期。

What we're really seeing is continued solid growth and consistent expenditures across the key categories in our business versus any particular distortion.

我們真正看到的是我們業務關鍵類別的持續穩健增長和持續支出，而不是任何特定的扭曲。

Now there's a little bit of a '90s fashion cycle that's out there.

現在有一點 90 年代的時尚週期。

That absolutely plays to the strength of our brands.

這絕對發揮了我們品牌的實力。

In Banana, there's a little bit of a utility and Safari cycle out there that we're continuing to build in as we get into the summer and fall.

在 Banana 中，隨著我們進入夏季和秋季，我們將繼續構建一些實用程序和 Safari 循環。

And that's obviously the heritage of the brand expressing that in a really nice, sophisticated way, and she and he are responding to it.

這顯然是品牌的傳統，以一種非常好的、複雜的方式表達了這一點，她和他正在對此做出回應。

We don't see right now, however, any sort of significant distortion.

然而，我們現在沒有看到任何明顯的失真。

I mean, the denim business is strong across rise and silhouette, mid-rise, we're seeing high-rise business, which we bought into as well.

我的意思是，牛仔佈業務在上升和輪廓，中層，我們看到高層業務，我們也買進了。

There's some wide-legged pants silhouette out there, but it's a smaller trend and it's not a hugely democratic trend.

那裡有一些闊腿褲的輪廓，但這是一個較小的趨勢，也不是一個非常民主的趨勢。

So we actually feel like we're well invested with depth behind our ideas in key categories in the business and don't see something that is sort of a flash in the pan kind of distortion right now.

因此，我們實際上覺得我們在業務關鍵類別的想法背後投入了大量資金，並且現在看不到曇花一現的扭曲。

The market share we're seeing, I believe, comes from a combination of things: being on trend in our key categories; being well priced in those categories; delivering value that the customer understands and relates to and then offering a super easy and convenient and accessible shopping experience across mobile, online and in our stores in a way that is converged.

我相信，我們所看到的市場份額來自多種因素：在我們的關鍵類別中處於趨勢；在這些類別中價格合理；提供客戶理解和相關的價值，然後以融合的方式在移動設備、在線和我們的商店中提供超級簡單、方便和可訪問的購物體驗。

So it allows her to engage our brands in the easiest way that's possible.

因此，這讓她能夠以最簡單的方式與我們的品牌互動。

So I'm -- which to me is all good news because it says that solid, consistent execution is what is going to carry the day, and that is very much what we're focused on.

所以我 - 這對我來說都是好消息，因為它表明紮實、一致的執行將帶來這一天，而這正是我們關注的重點。

I'm sorry, and I think you asked a second question or a part to that which I -- in my incredibly informative answer, I have -- I spaced, but maybe not.

對不起，我想你問了第二個問題或部分問題，我在我的信息量很大的回答中，我已經 - 我間隔了，但也許沒有。

No, no, it was along the same lines about how fast fashion is giving up share as well.

不，不，時尚也在以同樣的速度放棄份額。

Yes.

是的。

I mean, it's still out there certainly.

我的意思是，它肯定還在外面。

And I -- whenever I hear fast fashion, I say you need to tease apart fast and fashion because part of the work that we've done in our product delivery capabilities has been about getting faster.

我 - 每當我聽到快時尚，我說你需要將快時尚和時尚區分開來，因為我們在產品交付能力方面所做的部分工作是為了提高速度。

I think that they -- we do see a backslash a bit in disposable fashion.

我認為他們 - 我們確實看到了一次性方式的反斜杠。

And this is something I mentioned in my remarks.

這是我在發言中提到的。

Purpose-driven brands, it's been a buzzword.

以目標為導向的品牌，這是一個流行詞。

We see it becoming more and more of a reality, and it's certainly manifesting itself, most significantly in Athleta.

我們看到它越來越成為現實，而且它肯定會表現出來，尤其是在 Athleta 中。

The great majority -- part of being B Corp certified in Athleta is that the great majority of the product is on sustainable fabrications, and we find that the customer is responding to that.

絕大多數 - 在 Athleta 獲得 B Corp 認證的部分原因是絕大多數產品都採用可持續製造，我們發現客戶對此做出了回應。

And so that little bit of backlash against the waste of disposability is something that I think benefits our business where, across all of our businesses, we have always stood for a quality that the customer understood and items that lasted.

因此，我認為對一次性浪費的一點點強烈反對對我們的業務有利，在我們所有的業務中，我們始終堅持客戶理解的質量和經久耐用的產品。

Kimberly Greenberger from Morgan Stanley has the next question.

摩根士丹利的 Kimberly Greenberger 提出了下一個問題。

Great.

偉大的。

My question is on the outlets.

我的問題是關於網點的。

But I just wanted to clarify something first with Teri if I could.

但如果可以的話，我只是想先和 Teri 澄清一些事情。

I think with -- it's on the ROD leverage in the quarter, I think you said 60 basis points of ROD leverage.

我認為 - 這是本季度的 ROD 槓桿，我想你說的是 60 個基點的 ROD 槓桿。

But if I look at the 6% sales growth, I just would have thought perhaps there would be more ROD leverage in there given that, back in the third quarter, I think you cited 60 basis points of ROD leverage with only 1% growth rate in revenue.

但是，如果我看一下 6% 的銷售增長，我會認為可能會有更多的 ROD 槓桿，因為在第三季度，我認為你引用了 60 個基點的 ROD 槓桿，增長率只有 1%在收入。

So I just want to make sure I heard that right, and if you could talk about why the ROD leverage wasn't better.

所以我只是想確保我沒聽錯，如果你能談談為什麼 ROD 槓桿沒有更好。

And then, Art, on the outlets, obviously, you talked about pursuing quality growth.

然後，Art，很明顯，在媒體上，你談到了追求質量增長。

And I'm just wondering, do you think that the outlet growth, in particular for Gap and Banana Republic, could be cutting into your specialty business and basically driving some of the declines in that specialty business?

我只是想知道，您是否認為出口增長，特別是 Gap 和 Banana Republic 的增長，可能會削減您的專業業務並基本上推動該專業業務的一些下滑？

Yes, why don't I answer that first, and then I'll turn it back to Teri on the ROD leverage question.

是的，我為什麼不先回答這個問題，然後我會在 ROD 槓桿問題上將其轉回給 Teri。

It's a really good question to think about what's the right proportion of outlets or factory stores to the specialty stores.

考慮一下直銷店或工廠店與專賣店的正確比例是一個非常好的問題。

And it is something we look at.

這是我們所關注的。

We have data that helps us understand cross-shopping patterns.

我們有數據可以幫助我們了解交叉購物模式。

And obviously, outlets have moved from intentionally inconvenient geographic locations to be now more urban and suburban locations.

顯然，網點已經從故意不方便的地理位置轉移到現在更多的城市和郊區位置。

So there's probably some impact.

所以可能會有一些影響。

That said, we do have very attractive economics in our outlet channel.

也就是說，我們的奧特萊斯渠道確實具有非常有吸引力的經濟效益。

And so the impact is something that we're very comfortable managing our way through in terms of the impact that it has on our economics if we intelligently and responsibly manage our commitment to specialty real estate.

因此，如果我們以明智和負責任的方式管理我們對專業房地產的承諾，就其對我們的經濟產生的影響而言，這種影響是我們非常樂於管理的。

And that is what we have been doing now for over a decade.

這就是我們十多年來一直在做的事情。

That all said, the bigger impact on our specialty business and our specialty fleet, and this starts first with Gap, is the fact that Gap has been around for a long time.

總而言之，對我們的專業業務和專業車隊的更大影響，首先從 Gap 開始，是 Gap 已經存在很長時間的事實。

And as customer shopping patterns have changed, many of those stores that were productive 20 or 30 or even 40 years ago are now in malls or locations that have been bypassed my job patterns, education patterns, housing patterns, et cetera.

隨著客戶購物模式的改變，許多在 20 或 30 甚至 40 年前還頗俱生產力的商店現在位於商場或地點，而這些都已繞過我的工作模式、教育模式、住房模式等。

And so that's the work that we've been doing, is largely driven by getting Gap out of places where customer shopping patterns have bypassed the real estate.

這就是我們一直在做的工作，主要是通過讓 Gap 走出客戶購物模式繞過房地產的地方。

We'll always manage the ratio of outlet to specialty very carefully.

我們將始終非常謹慎地管理出口與專業的比例。

But I think we're pretty comfortable, and I am, with where that ratio stands today.

但我認為我們很舒服，我也很舒服，今天這個比例。

Teri, let me turn it over to you.

泰瑞，讓我把它交給你。

Yes, Kimberly, on your ROD question.

是的，金伯利，關於你的 ROD 問題。

So we've been saying that we need a mid-single-digit comp to leverage ROD, so that we've been pretty consistent.

所以我們一直在說我們需要一個中個位數的組合來利用 ROD，這樣我們就一直保持一致。

It used to be a lower threshold.

它曾經是一個較低的門檻。

But as we've deployed incremental capital to store growth and in some of the investments we've been making, as we set ourselves up well for growth, that has moved more toward mid-single-digits.

但是，隨著我們部署增量資本來存儲增長以及我們一直在進行的一些投資，隨著我們為增長做好準備，這已經更多地接近中個位數。

And so that's pretty much what you're seeing flow through in Q1.

這就是你在第一季度看到的流量。

Next up is Matthew Boss, JPMorgan.

接下來是摩根大通的 Matthew Boss。

I guess, Art, at the core Gap, if we look past the operational missteps, is it fair to judge the brand by your back-to-school assortments if we were thinking about product as well as performance?

我想，Art，在 Gap 的核心，如果我們回顧一下運營失誤，如果我們考慮產品和性能，那麼通過你的返校分類來判斷品牌是否公平？

And are you -- I guess, Teri, are you embedding positive comps at the Gap concept in the back half of the year?

你 - 我猜，Teri，你是否在今年下半年在 Gap 概念中嵌入了積極的補償？

Just how best to think about the progression of same-store sales from negative 4% today.

如何最好地考慮同店銷售額從今天的負 4% 發展。

Yes, so if you think about the momentum we started to see in the Gap brand last year, right, we actually ended up in Q4 with a positive comp, and we had been building from that with investments we've been making, including some stepped-up advertising.

是的，所以如果你想想我們去年開始在 Gap 品牌中看到的勢頭，對，我們實際上在第四季度結束時獲得了積極的競爭，我們一直在通過我們一直在進行的投資來建立這一點，包括一些加強廣告。

And so we were seeing improved traffic comps and just a better overall engagement with our customer on the brand.

因此，我們看到了流量組合的改善，以及與我們的客戶在品牌上更好的整體互動。

And so those dynamics are still there.

所以這些動態仍然存在。

Our traffic remains better than the industry on the Gap brand.

我們的流量仍然優於 Gap 品牌的行業。

And so the issue that we're seeing is the inability to deliver on the expectation of the customer given our inventory issues.

因此，我們看到的問題是，鑑於我們的庫存問題，無法滿足客戶的期望。

And so I don't have a specific guide for comp for Gap brand in the second half, but I would say, if you look at the fundamentals and then you take out the issues that have been affecting the inventory in the Q1 and we expect to continue to a lesser degree in Q2, there's no reason that we wouldn't quickly get back to the momentum that we are seeing.

因此，我沒有關於下半年 Gap 品牌的具體補償指南，但我想說，如果您查看基本面，然後找出影響第一季度庫存的問題，我們預計為了在第二季度繼續以較小的程度，我們沒有理由不迅速恢復我們所看到的勢頭。

And one of the things we've been doing is, because we believe in the brand and we believe in the fundamentals while we're being super disciplined on the cost structure in the business, we're not cutting back on things that are fundamentally important to sustaining the brand health that we've been building back up, so that we can be as well positioned in the second half against that positive comp that we saw in the Q4 of 2017.

我們一直在做的一件事是，因為我們相信品牌，我們相信基本面，同時我們對業務的成本結構非常嚴格，我們不會削減根本上的事情對維持我們一直在建立的品牌健康很重要，這樣我們就可以在下半年與我們在 2017 年第四季度看到的積極競爭相比處於有利地位。

And I would just underline the fact that we talked -- we saw Gap's issues before we formulated our guidance for this year.

我只想強調我們談過的事實——我們在製定今年的指導之前看到了 Gap 的問題。

We reiterated our guidance as we have seen Gap's issues and gotten our arms around them.

我們重申了我們的指導，因為我們已經看到了 Gap 的問題並得到了解決。

And then to your specific question, Matt, on back-to-school, as back-to-school aligns with the beginning of the back half, that is when we feel like we're largely out of the operational issues.

然後是你的具體問題，馬特，關於返校，因為返校與後半部分的開始一致，那是我們覺得我們基本上沒有解決運營問題的時候。

And the changes that we've made in terms of inventory, assortment, breadth, CC and style count should start to impact.

我們在庫存、分類、廣度、CC 和样式計數方面所做的更改應該開始產生影響。

Hey, Matt, I just wanted to go back.

嘿，馬特，我只是想回去。

And so I think I said Gap brand was positive in Q4.

所以我想我說 Gap 品牌在第四季度是積極的。

They were positive in Q3.

他們在第三季度是積極的。

Q3.

Q3。

And back to flat as we tee it off.

當我們開球時回到平地。

So I apologize for the misstatement there.

所以我為那裡的錯誤陳述道歉。

Just a quick follow-up on the expense front.

只是對費用方面的快速跟進。

I guess, how should we think about SG&A dollar growth in the first quarter relative to the balance of the year?

我想，我們應該如何看待第一季度相對於今年餘額的 SG&A 美元增長？

And just larger picture, Art, do you believe you have the right investments in place today to drive operational performance going forward or anything that we would think about larger picture in terms of incremental investments that you'd like to make?

只是更大的圖景，Art，您是否認為您今天有正確的投資來推動運營績效的發展，或者我們會在您想要進行的增量投資方面考慮更大的圖景？

Yes, let me talk about the incremental investment, and then we can -- I can hand back to Teri on the expense growth.

是的，讓我談談增量投資，然後我們可以 - 我可以將費用增長交給 Teri。

I mean, we've obviously indicated our appetite for both our CapEx and our OpEx.

我的意思是，我們顯然已經表明了我們對資本支出和運營支出的興趣。

So let me use Fishkill as an example.

所以讓我以 Fishkill 為例。

We're in the final stages of standing up the rebuild of the Fishkill facility after the fire.

我們正處於火災後重建菲什基爾設施的最後階段。

That has significantly upped our game in terms of the automation of that facility, in terms of reseeding, stocking the inventory, picking the inventory and then shipping the inventory.

這大大提高了我們在該設施的自動化方面的遊戲，在重新播種、庫存庫存、挑選庫存然後運送庫存方面。

And that's something that we've had and intend to do for a while.

這是我們已經擁有並打算做一段時間的事情。

It improves our efficiency and our effectiveness through our fulfillment operations.

它通過我們的履行操作提高了我們的效率和有效性。

Another one is we're continuing to invest in bringing the relevant technology and putting it into the hands of our sales associates in our stores.

另一個是我們將繼續投資引進相關技術並將其交到我們商店的銷售人員手中。

We've talked BOPIS, which is in Old Navy now, which we're going to continue to roll across the fleet.

我們已經討論過 BOPIS，它現在在 Old Navy 中，我們將繼續在整個艦隊中推廣。

We have a really exciting on-shelf, in-stock app that we've now deployed on iOS devices in our stores.

我們現在已經在我們商店的 iOS 設備上部署了一款非常令人興奮的現貨供應應用程序。

But this is an exception-based restock app tied to essentially a redesign of our stock rooms.

但這是一個基於異常的補貨應用程序，本質上是對我們的庫房的重新設計。

And we're seeing, so far, in the very early days, a significant improvement in on-floor service levels and a reduction of payroll, so we get an efficiency benefit as well in terms of the replan hours that we spend keeping our stores in stock.

到目前為止，我們在早期就看到了現場服務水平的顯著提高和工資單的減少，因此我們在維持商店所花費的重新計劃時間方面也獲得了效率收益有存貨。

And those are a couple of examples.

這些是幾個例子。

Do we have all of the right investments?

我們是否擁有所有正確的投資？

No.

不。

It's probably 2x what we're spending if I met all the demand across the organization.

如果我能滿足整個組織的所有需求，這可能是我們支出的 2 倍。

But we do feel that responding -- spending at a responsible level that we have set the right priorities this year, and as we go forward, in terms of where we're applying that investment.

但我們確實感受到了回應——在負責任的水平上進行支出，我們今年已經設定了正確的優先事項，並且隨著我們前進，就我們在哪裡應用這項投資而言。

So on SG&A, we provided the guidance that for the year, we expected SG&A as a percent of sales to be about flat, and that reverses the trend where we have, historically, over the recent past, and then we have been deleveraging somewhere around 170 basis points.

因此，在 SG&A 方面，我們提供的指導是，我們預計 SG&A 佔銷售額的百分比將大致持平，這扭轉了我們在歷史上最近的趨勢，然後我們一直在某個地方去槓桿化170 個基點。

And so what you're seeing in the first quarter is a dramatic reversal of what we saw in Q1 of last year.

所以你在第一季度看到的是我們在去年第一季度看到的戲劇性逆轉。

In fairness, it is helped by the 53rd week, but still it does show that the work is starting to take root, and we're getting some of that expense discipline under control while, as Art said, investing in the initiatives that we believe are highest priority to deliver the best return to the enterprise.

公平地說，它在第 53 週得到了幫助，但它仍然表明這項工作已經開始紮根，我們正在控制一些開支紀律，同時正如阿特所說，投資於我們相信的舉措是為企業提供最佳回報的重中之重。

Next up from Jefferies is Randy Konik.

Jefferies 的下一位是 Randy Konik。

Art, I hate to beat the dead horse here, so can we just go back on the historical time line, just so we're all on the call aware of what the actual issues were at the Gap from a process standpoint?

Art，我不想在這裡打敗死馬，所以我們可以回到歷史時間線，這樣我們就可以從流程的角度了解 Gap 的實際問題是什麼？

When -- why did the processes change when you identified those issues and the processes are either going back to what they were before they're changed?

什麼時候——為什麼當您發現這些問題時流程會發生變化，並且流程要么回到它們被改變之前的狀態？

Or just wanted to just get some more specifics there, just so we can put this issue to bed and as we move forward here.

或者只是想在那裡獲得更多細節，這樣我們就可以解決這個問題，並在我們向前推進時。

We've been -- it's a really good question, and I thank you for giving me the platform for talking about it.

我們一直 - 這是一個非常好的問題，我感謝你給我一個討論它的平台。

So we've been moving, as I've been talking to you about for a while, across the entire company as we've continued to accelerate our product processes and reduce our time from concept to shelf.

因此，正如我一直在與您談論的那樣，我們一直在整個公司範圍內移動，因為我們繼續加快我們的產品流程並減少從概念到上架的時間。

And that's largely gone quite well without any bumps on the road.

這在很大程度上進展順利，路上沒有任何顛簸。

And I've cited several examples across the company where that is manifesting itself in the form of business outcomes, not the least of which in a small way but increasingly large way, Athleta's bottoms complex that went from 60 weeks, 6-0, to 8 to 10 weeks and is allowing us to fuel that growth with units.

我在整個公司舉了幾個例子，這些例子以業務成果的形式體現出來，其中最不重要的是以一種小方式但越來越大的方式，Athleta 的底部複合體從 60 週，6-0，到8 到 10 週，這讓我們能夠通過單位來推動這種增長。

So that's an example.

這是一個例子。

And we've been doing it all the way across the company.

我們一直在整個公司這樣做。

Adjacent to that is we've been standing up a new tool from -- that is basically applied against the assorting and the buying and allocation process of our business to modernize our inventory management capabilities.

與此相鄰的是，我們一直在使用一種新工具——它基本上適用於我們業務的分類、購買和分配過程，以使我們的庫存管理能力現代化。

And we've been implementing that and getting it online by module in different parts of the company.

我們一直在實施這一點，並在公司的不同部門按模塊將其上線。

In one of the modules inside of Gap, as we were speeding up product processes, we ran into some both process issues and capability issues and some technical issues, which resulted, as we saw in Q4, some late placements of POs.

在 Gap 內部的一個模塊中，當我們加快產品流程時，我們遇到了一些流程問題和能力問題以及一些技術問題，正如我們在第四季度看到的那樣，導致一些 PO 延遲放置。

And essentially, just to be simple about it, we're requiring more discipline and more precision in the specification on our products upfront so that we can then release those to our sourcing office and to our vendors in final form.

本質上，為了簡單起見，我們需要預先對我們的產品規范進行更多的紀律和更精確的規範，以便我們可以將它們以最終形式發布給我們的採購辦公室和我們的供應商。

Previously, in a system that was much more informal, there was a lot of iteration that went back and forth on POs that were released to get to the final product spec.

以前，在一個更加非正式的系統中，為了達到最終產品規範，需要在發布的 PO 上來回進行大量迭代。

So it actually yields a better and more disciplined process and continue to help us accelerate.

因此，它實際上產生了一個更好、更規範的流程，並繼續幫助我們加速。

But change management and some technical issues resulted in the fact that getting those POs right before they were released upstream meant that we ended up with many of them being late.

但是變更管理和一些技術問題導致了這樣一個事實，即在這些 PO 發佈到上游之前就得到它們，這意味著我們最終會發現其中許多都遲到了。

And that's really the issue that -- the biggest issue from a technical and process standpoint that we've been wrestling through.

從技術和流程的角度來看，這確實是我們一直在努力解決的最大問題。

The second component of that was sort of the relentless creep of style and CC count.

第二個組成部分是風格和CC數量的無情蔓延。

And that -- we added, with all the best intent, some styles and CCs, and the combination of those 2 things resulted in the inventory issues that we had as well as the over-assortment issue that was very evident in many of our stores.

而且——我們出於最好的意圖添加了一些款式和 CC，這兩件事的結合導致了我們遇到的庫存問題以及在我們的許多商店中非常明顯的過度分類問題.

It's why took the action on inventory very quickly, it's why, going forward, we have whacked back styles and CCs, it allows us to deploy the buy more productively behind our big ideas.

這就是為什麼我們非常迅速地對庫存採取行動，這就是為什麼在未來，我們已經削減了款式和 CC，它使我們能夠更有效地部署購買支持我們的大創意。

And I'm quite confident that we have resolved the technical and the capability and the process issues that were connected to the late POs in the first place.

我非常有信心，我們首先解決了與後期 PO 相關的技術、能力和流程問題。

A logical question that you would ask is am I going to see this issue pop up elsewhere in the company?

你會問的一個合乎邏輯的問題是，我會在公司的其他地方看到這個問題嗎？

And the answer is absolutely not.

答案絕對不是。

We have run this one to ground, we know what it is, we have resolved it and, as I said, we expect to see this behind us as we get into the back half of the year.

我們已經把它運行到地面，我們知道它是什麼，我們已經解決了它，正如我所說，我們希望在我們進入下半年時看到它在我們身後。

Right.

正確的。

So just to kind of pull it all together, you're saying that the PO problem is done, the inventories are still kind of heavy at the Gap but those are being worked on.

所以只是為了把它們放在一起，你是說 PO 問題已經解決了，Gap 的庫存仍然有點沉重，但這些正在處理中。

We should get those in line with trend probably end of the second quarter, such that we should expect core merchandise margin to do what it's going to do based on product acceptance in the back half and not be impacted by any type of technical or product issues.

我們應該讓那些可能與第二季度末的趨勢保持一致，這樣我們就應該期望核心商品利潤率能夠根據後半部分的產品接受度來做它要做的事情，並且不會受到任何類型的技術或產品問題的影響.

Unnatural pressures.

不自然的壓力。

Yes, yes.

是的是的。

Okay, all right.

好吧，好吧。

That's really helpful.

這真的很有幫助。

Yes, and I just want to -- let me just -- sorry, go ahead, I just want to finish up on this one because it's important.

是的，我只想-- 讓我-- 抱歉，繼續，我只想完成這個，因為它很重要。

That's correct.

這是正確的。

I also just want to underline the fact that there is pressure in this quarter, as Teri noted, from the fact that we took very swift and very decisive action on inventory.

我還想強調一個事實，正如 Teri 指出的那樣，本季度存在壓力，因為我們對庫存採取了非常迅速和非常果斷的行動。

There's always the temptation in this business to say, okay, I got it.

在這個行業中總是有一種誘惑說，好吧，我明白了。

I'm going to ride it out and I'll sell it and I'll have a big sale, and all those kinds of things.

我要擺脫它，我會賣掉它，我會大甩賣，諸如此類。

We looked at it and we said, we want to get this done, we want to get it clean and we want to get it behind us.

我們看著它，我們說，我們想把它完成，我們想把它弄乾淨，我們想把它放在我們身後。

And we're not perfect right now.

而且我們現在並不完美。

But by taking those actions, I think you could see it, if you go into our stores, you should see stores where, particularly in the women's assortment, the product is now clearer, the ideas are clearer and the product can breathe.

但是通過採取這些行動，我想你可以看到，如果你走進我們的商店，你應該看到商店，尤其是女裝，產品現在更清晰，想法更清晰，產品可以呼吸。

Again, inventory is not perfect.

同樣，庫存並不完美。

But we took a significant onetime correction to get it done and get it behind us.

但是我們進行了一次重大的修正來完成它並讓它落後於我們。

Our next question will come from Mark Altschwager, Baird.

我們的下一個問題將來自貝爾德的 Mark Altschwager。

I was hoping you could talk about Old Navy for a moment and just where are you seeing the most opportunity from a unit expansion standpoint in the near term and was hoping you could specifically address the strategy with respect to competitor exits.

我希望你能談一談 Old Navy，從近期單位擴張的角度來看，你在哪裡看到了最大的機會，並希望你能具體解決與競爭對手退出有關的戰略。

With some upcoming department store closures, and otherwise underserved in maybe small and medium-sized market, it would seem there's some pretty identifiable share opportunities out there.

隨著一些即將關閉的百貨商店，以及可能在中小型市場中服務不足，似乎有一些相當可識別的分享機會。

So curious how you're thinking about that and maybe leaning into it.

很好奇你是如何思考這個問題的，也許會傾向於它。

Yes, we are highly aligned on our perspectives.

是的，我們的觀點高度一致。

So thank you, I really appreciate you teeing this up.

所以謝謝你，我真的很感謝你把這件事做好了。

So if you think about market share, I have a very simple model in my mind which my team now has -- I made sure has in their minds as well, in that revenue comes in varying degrees of quality.

因此，如果您考慮市場份額，我的團隊現在有一個非常簡單的模型——我確信他們也有這個模型，因為收入來自不同程度的質量。

And I think about it in concentric circles.

我以同心圓的方式思考它。

In the bull's-eye of the concentric circle is $1 of AUR that goes through our existing stores because that dollar should have a drop rate that is darn close to 100% from the standpoint of income -- sorry, revenue to income.

在同心圓的靶心中，有 1 美元的 AUR 流經我們現有的商店，因為從收入的角度來看，該美元的下降率應該接近 100%——抱歉，收入對收入。

And we are not -- in Old Navy and our other brands, we are not -- we are significantly focused on how do we continue to improve our AURs.

而且我們不是——在 Old Navy 和我們的其他品牌中，我們不是——我們非常關注如何繼續改進我們的 AUR。

And Teri spent some time on that.

泰瑞在這上面花了一些時間。

Part of that is mix as we continue to invest in categories that drive higher AURs.

其中一部分是混合，因為我們繼續投資於推動更高 AUR 的類別。

Growth in the bottoms business, growth in denim is a great example of that, and that's where we continue to gain market share.

打底業務的增長，牛仔布的增長就是一個很好的例子，這就是我們繼續獲得市場份額的地方。

And part of that, obviously, is yield where we are very focused on yield management and making sure that while we are appropriately promotional that we continue to focus on yield management and every dollar possible out of every unit that goes through our stores.

顯然，其中一部分是收益，我們非常關注收益管理，並確保在我們進行適當促銷的同時，我們繼續關注收益管理以及通過我們商店的每個單位的每一美元。

So the energy of the business starts with how do we get maximum gross margin dollars out of every square foot of existing real estate, which is a fixed cost.

因此，業務的能量始於我們如何從現有房地產的每平方英尺中獲得最大的毛利率，這是一個固定成本。

That is a very high-quality revenue.

這是一個非常高質量的收入。

The second piece of that is adding additional categories or units to our stores.

第二部分是為我們的商店添加額外的類別或單位。

And we are doing that now.

我們現在正在這樣做。

Part of what we get out of our responsive capabilities, and this is a big part of what's driving Old Navy's denim business, is we're able to feed units in close in the season and take advantage where we have a hot trend, where we have a hot silhouette, where we just see good traffic in order to drive units through those stores.

我們從我們的響應能力中獲得的一部分，也是推動 Old Navy 牛仔佈業務的重要部分，是我們能夠在本季近距離為單位提供食物，並利用我們有熱門趨勢的地方，我們有一個熱門的剪影，我們只是看到良好的交通，以便推動單位通過這些商店。

And so we continue to see a unit growth opportunity in Old Navy and in our other businesses, but in Old Navy, as we continue to invest in the key categories and put the depth behind them that drive our business.

因此，我們繼續在 Old Navy 和我們的其他業務中看到單位增長機會，但在 Old Navy 中，我們將繼續投資於關鍵類別，並將深度投入推動我們業務的背後。

And that's bottoms, that's knits, that's the active space, that's kids and baby, et cetera.

那是下裝，那是針織衫，那是活動空間，那是孩子和嬰兒，等等。

A third piece is to add new categories to our stores.

第三部分是為我們的商店添加新類別。

And we will always look at doing that, and we are in Old Navy.

我們會一直考慮這樣做，我們在老海軍。

We added active a couple of years ago.

我們在幾年前添加了 active。

That was significantly accretive to revenue and profitability.

這大大增加了收入和盈利能力。

And we're always looking at places to say how do we actually get a higher share of our wallet and build out a bigger opportunity.

我們一直在尋找地方來說明我們如何真正獲得更高的錢包份額並創造更大的機會。

We added another denim fit inside of the box, which has helped us continue to expand the denim business in the women's.

我們在包裝盒內添加了另一款牛仔褲，這有助於我們繼續擴大女裝牛仔業務。

We're looking at assortment opportunities also inside of men's.

我們也在尋找男裝內部的分類機會。

And so that's kind of the construct which is, first and foremost, leverage our fixed cost base by AUR and additional units to our business.

這就是一種結構，首先，通過 AUR 和其他單位來利用我們的固定成本基礎到我們的業務中。

That's a big opportunity for us.

這對我們來說是一個很大的機會。

And as Old Navy gains share, it's very high-quality revenue.

隨著老海軍獲得份額，這是非常高質量的收入。

And then there's additional square footage.

然後還有額外的平方英尺。

And we do see an opportunity there.

我們確實看到了那裡的機會。

We said we're on track for 60 new units this year of Old Navy.

我們說過，今年 Old Navy 將推出 60 個新單位。

Those are largely conventional stores, no trickiness at all associated with them.

這些主要是傳統商店，與它們沒有任何關聯。

And some of them are infill in major metropolitan areas.

其中一些是主要大都市地區的填充物。

As an example, here in the Bay Area, there's an Old Navy store going in, in Concord at The Veranda, which is a new shopping center that's cropping up, very close to an existing Old Navy store and we're interested -- but different traffic patterns, interested in reading that.

例如，在灣區，Concord 的 The Veranda 有一家 Old Navy 商店，這是一個新的購物中心，非常靠近現有的 Old Navy 商店，我們很感興趣——但是不同的流量模式，有興趣閱讀。

So we see significant infill opportunities.

因此，我們看到了重要的填充機會。

That's part of the 60.

那是60的一部分。

And then we've brought our targets down around size of metropolitan area, and we are finding that there are smaller population areas that, due to closures and mall closures and consolidation, are underserved today, where there is a very nice Old Navy opportunity.

然後我們將目標降低到大都市區的規模，我們發現由於關閉和購物中心關閉和整合，人口較少的區域今天服務不足，那裡有一個非常好的舊海軍機會。

So we have not put a specific store goal out there, but we're very bullish and very encouraged by the opportunity to continue to build more units.

因此，我們還沒有提出具體的商店目標，但我們非常看好，並且對有機會繼續建造更多單位感到非常鼓舞。

And we do look at the off-price space and their unit count and see that Old Navy is significantly underrepresented, and we think there's upside there.

我們確實查看了折扣空間及其單位數量，發現 Old Navy 的代表性明顯不足，我們認為那裡有好處。

So again, super bullish on it.

所以再次，超級看好它。

And then the last thing I would say is do not underestimate the importance and the power of the online business.

然後我要說的最後一件事是不要低估在線業務的重要性和力量。

Old Navy has the lowest penetration, but it's important and it continues to accelerate in its growth rate, and it is a material growth driver for this company that has excellent economics.

Old Navy 的滲透率最低，但它很重要，而且它的增長速度還在不斷加快，它是這家具有出色經濟性的公司的物質增長動力。

And ladies and gentlemen, that is all the time we have for questions today.

女士們，先生們，這就是我們今天的所有提問時間。

That also concludes our conference.

這也結束了我們的會議。

We do thank you all for your participation.

我們非常感謝大家的參與。

You may now disconnect.

您現在可以斷開連接。