蓋璞 (GPS) 2022 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen. My name is Austin, and I shall be your conference operator today. I would like to welcome everyone to the Gap Inc. Second Quarter '22 Earnings Conference Call. (Operator Instructions) I would now like to introduce your host, Cammeron McLaughlin, Head of Investor Relations. Cammeron, you may proceed.

下午好，女士們，先生們。我的名字是奧斯汀，今天我將成為您的會議接線員。我想歡迎大家參加 Gap Inc. 第二季度 '22 收益電話會議。 （操作員說明）我現在想介紹一下您的主持人，投資者關係主管 Cammeron McLaughlin。卡梅倫，你可以繼續。

Good afternoon, everyone. Welcome to Gap Inc.'s Second Quarter Fiscal 2022 Earnings Conference Call. Before we begin, I'd like to remind you that the information made available on this webcast and conference call contains forward-looking statements that are subject to risks that could cause our actual results to be materially different. For information on factors that could cause our actual results to differ materially from any forward-looking statements as well as the description and reconciliation of any financial measures not consistent with generally accepted accounting principles, please refer to the cautionary statements contained in our latest earnings release.

大家下午好。歡迎參加 Gap Inc. 的 2022 財年第二季度收益電話會議。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，這些陳述存在可能導致我們的實際結果出現重大差異的風險。有關可能導致我們的實際結果與任何前瞻性陳述存在重大差異的因素的信息，以及任何不符合公認會計原則的財務措施的描述和調節，請參閱我們最新收益發布中包含的警示性聲明.

The information included on Page 2 of the slides shown on the Investors section of our website, gapinc.com, which supplement today's remarks and the risk factors described in the company's annual report on Form 10-K filed with the Securities and Exchange Commission on March 15, 2022, and any subsequent filings with the Securities and Exchange Commission, all of which are available on gapinc.com.

我們網站 gapinc.com 的“投資者”部分顯示的幻燈片第 2 頁中包含的信息，補充了今天的評論以及公司 3 月向證券交易委員會提交的 10-K 表格年度報告中描述的風險因素2022 年 1 月 15 日，以及隨後向美國證券交易委員會提交的任何文件，所有這些文件均可在 gapinc.com 上獲得。

These forward-looking statements are based on information as of today, August 25, 2022, 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今天 2022 年 8 月 25 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 Interim Chief Executive Officer; Bobby Martin; and Chief Financial Officer, Katrina O'Connell. With that, I'll turn the call over to Bobby.

今天和我一起參加電話會議的是臨時首席執行官；鮑比·馬丁；和首席財務官，卡特里娜奧康奈爾。有了這個，我會把電話轉給 Bobby。

Thank you, Cammeron, and good afternoon, everyone. It's a pleasure to speak with you all. I want to provide some brief remarks before turning it over to Katrina to cover our second quarter results and outlook. While we search for a new leader, I'm taking on the role as Interim President and Chief Executive Officer of Gap Inc., with a deep commitment to the company's success and in inpatients for change.

謝謝你，Cammeron，大家下午好。很高興與大家交談。在將其交給卡特里娜颶風來介紹我們的第二季度業績和展望之前，我想提供一些簡短的評論。在我們尋找新的領導者的同時，我將擔任 Gap Inc. 的臨時總裁兼首席執行官，對公司的成功和住院患者的變革做出堅定的承諾。

Having navigated the global retail industry serving millions of customers across brands and markets, I'm not approaching this work from the sidelines. To change the trajectory of our business, we need to take action. There are brands in our portfolio that are underperforming today. And like many other companies, the macro environment is testing us with simultaneous shifts in consumer behavior and increased cost pressures.

在為數百萬品牌和市場的客戶提供服務的全球零售行業中航行後，我不會從旁觀者處處理這項工作。為了改變我們的業務發展軌跡，我們需要採取行動。我們的投資組合中有一些品牌今天表現不佳。與許多其他公司一樣，宏觀環境正在考驗我們，同時消費者行為的變化和成本壓力的增加。

While our elevated inventory and preferred margins are certainly current realities against unseen market conditions, they do not define Gap Inc.'s ability to capitalize on its strengths to win. We can and we should win in any environment. That is the goal, our goal and the management team and I are holding the company accountable for that.

雖然我們的庫存增加和優先利潤率肯定是當前市場條件下的現實，但它們並不能定義 Gap Inc. 利用其優勢取勝的能力。我們可以而且我們應該在任何環境中獲勝。這就是目標，我們的目標，我和管理團隊都在追究公司的責任。

We are taking several immediate actions, including reductions in operating costs and the impairment of unproductive inventory to better optimize profitability and cash flow in the near term, which Katrina will share in detail in a moment. While these measures will help us in the short term, ultimately, they represent a down payment towards a larger pursuit. We must demand both a selling and a cost-conscious culture with a focus on the core levers that truly drive our business.

我們正在立即採取幾項措施，包括降低運營成本和減少非生產性庫存，以在短期內更好地優化盈利能力和現金流，卡特里娜颶風將在稍後詳細分享。雖然這些措施將在短期內幫助我們，但最終，它們代表了朝著更大追求的首付。我們必須同時要求銷售和成本意識文化，並專注於真正推動我們業務發展的核心槓桿。

Let me take a moment and comment on our brand. We remain bullish on Old Navy's particular for growth by delivering the democracy of style and service to a wide range of consumers. Old Navy is the #2 brand in apparel market share according to NPD Research, and that remains our foothold for acceleration and expansion. As you know, Haio Barbeito joined us at the beginning of August, bringing an authentic leadership style, backed by a strong track record of delivering growth through challenging times. Old Navy is working diligently to recover from recent missteps, and I'm confident, Haio is the right leader to bring the brand back to winning again.

讓我花點時間評論一下我們的品牌。我們仍然看好 Old Navy 通過向廣泛的消費者提供民主的風格和服務來實現增長。根據 NPD Research 的數據，Old Navy 是服裝市場份額排名第二的品牌，這仍然是我們加速和擴張的立足點。如您所知，Haio Barbeito 於 8 月初加入我們，帶來了真正的領導風格，並以在充滿挑戰的時期實現增長的良好業績記錄為後盾。 Old Navy 正在努力從最近的失誤中恢復過來，我有信心，Haio 是帶領該品牌再次獲勝的正確領導者。

Gap brands is continuing to shift its core business model by rightsizing the fleet, increasing online penetration and partnering for capital-efficient growth in North America as well as around the world. During the quarter, Gap announced its partnership with Reliance Retail to bring Gap's modern American optimism to Indian consumers to a mix of store expressions and digital commerce platforms. On Banana Republic, Banana Republic is maintaining its focus on 2 simple ingredients, beautiful, high-quality products and an elevated customer experience, both online and in store.

Gap 品牌通過調整機隊規模、提高在線滲透率以及與北美和世界各地的資本效率增長合作，繼續轉變其核心業務模式。在本季度，Gap 宣布與 Reliance Retail 建立合作夥伴關係，將 Gap 的現代美國樂觀主義帶到印度消費者的商店表達和數字商務平台中。在 Banana Republic 上，Banana Republic 繼續專注於 2 種簡單的成分、美觀、高品質的產品以及在線和實體店提升的客戶體驗。

During the second quarter, Banana Republic launched a redesigned, product-led web experience, which supports its elevated brand positioning, further creating a differentiated and immersive experience for digital shoppers and, again, showcasing its product focus. The early results have been favorable with strong consumer feedback as well as conversion metrics.

在第二季度，Banana Republic 推出了重新設計的、以產品為主導的網絡體驗，以支持其提升的品牌定位，進一步為數字購物者創造差異化和身臨其境的體驗，並再次展示其產品重點。憑藉強烈的消費者反饋和轉化指標，早期的結果是有利的。

We believe Athleta has tremendous growth potential as it continues to drive brand awareness and establish authority in the active market. However, we are experiencing softness in the near term. We are quickly pivoting and reacting to meet her needs with performance lifestyle products while remaining true to our DNA. That said, we continue to see a path towards delivering a mid-teens revenue CAGR over the long term as we capitalize on the continued secular shift and growth in the health and wellness categories broadly.

我們相信 Athleta 具有巨大的增長潛力，因為它會繼續提高品牌知名度並在活躍的市場中建立權威。然而，我們在短期內正在經歷疲軟。我們正在迅速調整併做出反應，通過高性能生活方式產品滿足她的需求，同時忠於我們的 DNA。也就是說，隨著我們廣泛利用健康和保健類別的持續長期轉變和增長，我們繼續看到長期實現中等收入複合年增長率的道路。

I'm realistic about the hard work that lays ahead. We know what we need to deliver to our customers, and we know that it has to fully measure up. It has to be compelling. It has to be worth the trip every time. I'm confident that our team has the capabilities needed to deliver what our customers and shareholders expect and what is needed for long-term profitable growth. And it will take an aligned focus on adopting organizational behaviors that will enable change and unleash our potential.

我對未來的艱苦工作持現實態度。我們知道我們需要向客戶提供什麼，並且我們知道它必須完全符合標準。它必須令人信服。每次旅行都必須值得。我相信我們的團隊有能力滿足客戶和股東的期望，以及實現長期盈利增長所需的能力。並且它將一致關注採用能夠促成變革和釋放我們潛力的組織行為。

Lastly, I'm sure that many of you have questions about our search for a permanent CEO, so I will briefly address them now. The Board is actively evaluating potential candidates, working swiftly and thoughtfully to ensure that we find the most qualified person for this role. We are focused on someone who can lead Gap Inc. from defense to offense, vitalize our creators while returning us to a position where we are gaining market share across our brands, a leader who can build upon the company's strong foundation, powerful assets, well-established values to further sell our omni platform and market leadership. Ultimately, a leader focused on delighting our customers through every experience and driving the change and momentum necessary to deliver value creation for our people and our shareholders over the long term.

最後，我相信你們中的許多人都對我們尋找常任 CEO 有疑問，所以我現在將簡要回答這些問題。董事會正在積極評估潛在的候選人，迅速而周到地工作，以確保我們找到最有資格擔任該職位的人選。我們專注於能夠領導 Gap Inc. 從防守到進攻的人，激勵我們的創造者，同時讓我們回到我們在各個品牌中獲得市場份額的位置，一個可以建立在公司強大基礎、強大資產之上的領導者，以及- 確立價值觀以進一步推銷我們的全平台和市場領導地位。最終，一位領導者專注於通過每一次體驗來取悅我們的客戶，並推動必要的變革和動力，為我們的員工和股東長期創造價值。

And with that, I will turn the call over to Katrina.

有了這個，我會把電話轉給卡特里娜颶風。

Thank you, Bobby, and thanks, everyone, for joining us this afternoon. As Bobby just discussed, we have 4 strong brands and leverage in the portfolio that will enable us to compete and win. However, the current execution challenges, combined with our volatile operating environment, are requiring us to move swiftly to manage the levers in our control and take the actions necessary to drive immediate and long-term improvements across our entire business. These actions include: one, sequentially reducing inventory through the second half of the year, including the impairment of unproductive inventory as well as reducing future receipts; two, rebalancing our assortments to better meet changing consumer needs, aggressively manage overhead costs and the reevaluation of our technology and marketing investments in order to better position our model for the long term; and finally, fortifying our balance sheet in the face of uncertain macro trends and near-term execution headwinds.

謝謝你，鮑比，也謝謝大家今天下午加入我們。正如 Bobby 剛剛討論的那樣，我們有 4 個強大的品牌和影響力，這將使我們能夠競爭並取勝。然而，當前的執行挑戰，加上我們不穩定的運營環境，要求我們迅速採取行動，管理我們控制的槓桿，並採取必要的行動來推動整個業務的即時和長期改進。這些行動包括：一、在下半年連續減少庫存，包括減少非生產性庫存以及減少未來的收貨；第二，重新平衡我們的產品組合以更好地滿足不斷變化的消費者需求，積極管理間接成本以及重新評估我們的技術和營銷投資，以便更好地長期定位我們的模式；最後，面對不確定的宏觀趨勢和近期的執行逆風，加強我們的資產負債表。

I will get into more details on these actions in a moment. So let me start with our second quarter results as well as key drivers of our first half performance and share some color as we look to the remainder of the year. Starting with sales, total company sales of $3.86 billion were down 8% versus last year, or 7% on a constant currency basis. Coming off of peak inflation and the higher gas prices, particularly impacting the low-income consumer in June, we have seen an improvement in sales trends in July and into August, consistent with many other retailers. Comparable sales were down 10%, a sequential improvement from the negative 14% comp reported in the first quarter, which was negatively impacted by the lapping of stimulus in the prior year.

稍後我將詳細介紹這些操作。因此，讓我從我們的第二季度業績以及上半年業績的關鍵驅動因素開始，並在我們展望今年剩餘時間時分享一些色彩。從銷售額開始，公司總銷售額為 38.6 億美元，比去年下降 8%，按固定匯率計算下降 7%。由於通脹高峰和汽油價格上漲，特別是 6 月份對低收入消費者的影響，我們看到 7 月和 8 月的銷售趨勢有所改善，這與許多其他零售商一致。可比銷售額下降了 10%，比第一季度報告的 14% 的負數環比有所改善，後者受到上一年刺激措施的負面影響。

Store sales declined 10% from the prior year. As we look to the remainder of the year, we anticipate opening 30 to 40 Athleta stores, 20 to 30 Old Navy stores and continue to expect to close about 50 Gap and Banana Republic stores this year, bringing us to approximately 85% of our goal of closing 350 stores in North America by the end of fiscal 2023.

商店銷售額比去年下降了 10%。展望今年剩餘時間，我們預計將開設 30 至 40 家 Athleta 商店、20 至 30 家 Old Navy 商店，並繼續預計今年將關閉約 50 家 Gap 和 Banana Republic 商店，使我們實現目標的約 85%到 2023 財年末在北美關閉 350 家門店。

Online sales declined 6% versus last year and represented 34% of total sales in the quarter. Compared to pre-pandemic levels in 2019, online sales increased 55%. Year-to-date, total sales were down 11% compared to last year and were down 5% relative to pre-pandemic levels in 2019. While we believe strongly in our ability to maintain core category leadership in the back half of the year, we are taking a more conservative posture as it relates to our sales outlook as we read the consumer response to the many changes we've made to product assortments, which are just taking hold and considering the uncertain macro environment, particularly the low-income consumer.

在線銷售額與去年相比下降了 6%，佔本季度總銷售額的 34%。與 2019 年大流行前的水平相比，在線銷售額增長了 55%。年初至今，總銷售額與去年相比下降了 11%，相對於 2019 年大流行前的水平下降了 5%。雖然我們堅信我們有能力在下半年保持核心品類的領先地位，我們正在採取更保守的姿態，因為這與我們的銷售前景有關，因為我們閱讀了消費者對我們對產品分類所做的許多變化的反應，這些變化剛剛開始並考慮到不確定的宏觀環境，特別是低收入消費者.

Let me now provide sales color by brand, starting with Old Navy. Sales in the second quarter declined 13% versus last year to $2.1 billion. Relative to 2019, Old Navy sales increased 6%. In the second quarter, Old Navy comparable sales were down 15%, representing a sequential improvement from the negative 22% comp last quarter. The year-over-year declines at Old Navy stemmed from continued previously discussed size and assortment imbalances.

現在讓我按品牌提供銷售顏色，從 Old Navy 開始。第二季度的銷售額與去年相比下降了 13% 至 21 億美元。相對於 2019 年，Old Navy 的銷售額增長了 6%。第二季度，Old Navy 的可比銷售額下降了 15%，較上一季度 22% 的負數環比有所改善。 Old Navy 的同比下降源於之前討論過的規模和分類不平衡。

While we believe Old Navy's value positioning should enable it to attract a wide range of consumers, the brand is not immune to the pullback in spending by the lower income consumer, which we believe may all come out on some of the softness. So the team remains focused on adding balance and relevance to the assortment with broader end use, particularly dresses, pants, denim and woven tops, and improved fashion choices, which we believe will begin to see this fall and even more into holiday.

雖然我們認為 Old Navy 的價值定位應該使其能夠吸引廣泛的消費者，但該品牌也不能倖免於低收入消費者支出的回落，我們認為這可能會在一些疲軟的情況下表現出來。因此，該團隊仍然專注於為具有更廣泛最終用途的分類增加平衡和相關性，特別是連衣裙、褲子、牛仔布和梭織上衣，以及改進的時尚選擇，我們相信這將在今年秋天開始出現，甚至更多地進入假期。

We continue to lean into maintaining our leadership positions in categories we are known for, like denim, active and kids and baby. In addition, we remain on track towards optimizing our extended size offering in stores to better match demand late in the third quarter. We also remain confident following supply chain disruption and inventory delays that our core sizes will be back in stock for late fall.

我們繼續努力保持我們在知名品類中的領先地位，例如牛仔布、運動裝、童裝和嬰兒裝。此外，我們將繼續優化我們在商店中的擴展尺寸產品，以更好地滿足第三季度末的需求。在供應鏈中斷和庫存延遲之後，我們也仍然有信心，我們的核心尺寸將在秋季末恢復庫存。

Turning to Gap brand. Global sales in the quarter declined 10% versus last year to $881 million. Global comparable sales were down 7%, an improvement from the negative 11% comp reported last quarter. North America comparable sales were down 10%, a slight sequential improvement from 11% in the first quarter. Gap brand remained impacted by casual category softness, particularly mid-tops and casual shorts, while more relevant categories like dresses and pants showed better results given the shift in consumer preferences. The team is focused on fixing the category mix imbalances in fall and holiday. In addition, Gap outlet demand is experiencing near-term softness, which we attribute to continued pullback from the lower-income consumer.

轉向 Gap 品牌。本季度全球銷售額較去年下降 10%，至 8.81 億美元。全球可比銷售額下降了 7%，比上一季度報告的 11% 的負數有所改善。北美可比銷售額下降 10%，較第一季度的 11% 略有環比改善。 Gap 品牌仍然受到休閒品類柔軟度的影響，尤其是中上衣和休閒短褲，而由於消費者偏好的轉變，連衣裙和褲子等更相關的品類表現出更好的結果。該團隊專注於解決秋季和假期的品類組合失衡問題。此外，Gap 出口需求正在經歷近期疲軟，我們將此歸因於低收入消費者的持續回落。

Banana Republic second quarter sales grew 9% year-over-year to $539 million. Comparable sales were up 8% during the quarter. Banana Republic maintains its focus on quality product, differentiated experiences and continues to capitalize on the shift in consumer trends while realizing continued benefits since last year's brand relaunch. Athleta sales grew 1% to $344 million, with comparable sales down 8%. Athleta posted an increase of over 37% in sales compared to 2019 prepandemic levels, reflecting the brand's continued progress in driving awareness and establishing authority in the women's active and wellness category.

Banana Republic 第二季度銷售額同比增長 9% 至 5.39 億美元。本季度可比銷售額增長了 8%。 Banana Republic 繼續專注於優質產品、差異化體驗，並繼續利用消費趨勢的轉變，同時實現自去年品牌重新推出以來的持續收益。 Athleta 銷售額增長 1% 至 3.44 億美元，可比銷售額下降 8%。與 2019 年疫情前的水平相比，Athleta 的銷售額增長了 37% 以上，反映了該品牌在提高女性運動和健康類別的知名度和建立權威方面的持續進步。

As we stated last quarter, we are focused on ensuring that Athleta strikes the right balance of active and lifestyle in its assortment mix to best meet the evolving consumer demand, which have shifted from athleisure towards work and occasion in the short term. While there has been a modest slowdown in the women's athleisure category, and Athleta is maintaining share in that market, we expect market share gains. We believe we had some print and color misses in our summer assortment, which drove some of the softness in the quarter. The team has pivoted quickly to deliver a more cohesive color story across its assortment, including more elevated prints, and a higher penetration of on-trend styles this fall, which will better position the brand in the back half. We are confident that the brand will capitalize on the continued secular shifts in growth in the health and wellness categories broadly, and drive outsized growth over the long term.

正如我們上個季度所述，我們專注於確保 Athleta 在其產品組合中實現積極和生活方式的正確平衡，以最好地滿足不斷變化的消費者需求，這些需求在短期內已經從運動休閒轉向工作和場合。雖然女性運動休閒品類略有放緩，而 Athleta 在該市場保持份額，但我們預計市場份額會增加。我們相信我們的夏季產品系列中有一些印花和顏色缺失，這導致了本季度的一些疲軟。該團隊已迅速轉向以在其產品系列中提供更具凝聚力的色彩故事，包括更多高級印花，以及今年秋季對流行款式的更高滲透率，這將更好地將品牌定位於後半部分。我們相信，該品牌將充分利用健康和保健品類增長的持續長期轉變，並在長期內推動超額增長。

Now turning to gross margin. Reported gross margin in the second quarter was 34.5%. During the quarter, we wrote off $58 million of unproductive inventory, primarily styles and sizes at Old Navy. We expect that clearing's inventory will enable us to drive an improved consumer experience across all channels and better showcase the newness and merchandise that resonates most with our customer, while allowing us to better optimize our margins. Adjusted for the inventory impairment, gross margin was 36%, deleveraging 730 basis points from the prior year.

現在轉向毛利率。第二季度報告的毛利率為34.5%。在本季度，我們註銷了 5800 萬美元的非生產性庫存，主要是 Old Navy 的款式和尺碼。我們預計，clearing 的庫存將使我們能夠改善所有渠道的消費者體驗，並更好地展示最能引起客戶共鳴的新品和商品，同時使我們能夠更好地優化利潤。經存貨減值調整後，毛利率為 36%，較上年去槓桿 730 個基點。

Close to half of the deleverage stems from onetime or macro-related headwinds, while the balance reflects our increased promotional activity resulting from our current inventory challenges and assortment imbalances. Let me share some more specifics on these factors. First, we continue to navigate inflationary cost headwinds, which we estimate had an approximate 200-basis-point negative impact on margin.

近一半的去槓桿源於一次性或與宏觀相關的逆風，而餘額反映了我們當前的庫存挑戰和分類失衡導致的促銷活動增加。讓我分享一些關於這些因素的更多細節。首先，我們繼續應對通脹成本逆風，我們估計這對利潤率產生了大約 200 個基點的負面影響。

Second, consistent with our expectations, we realized an estimated $50 million of incremental airfreight during the quarter, which resulted in approximately 130 basis points of margin deleverage. And third, while we continue to benefit from our fleet restructuring efforts through lower ROD costs, which were below last year on a nominal basis, ROD deleveraged approximately 30 basis points, primarily as a result of the lower sales volume during the quarter.

其次，與我們的預期一致，我們在本季度實現了大約 5000 萬美元的增量空運，這導致了大約 130 個基點的保證金去槓桿。第三，雖然我們通過降低 ROD 成本（名義上低於去年）繼續受益於我們的機隊重組工作，但 ROD 去槓桿化了大約 30 個基點，主要是由於本季度銷量下降。

The remaining deleverage of approximately 370 basis points stemmed primarily from higher discounting at Old Navy. Like so many others in our industry, we are managing through elevated inventory levels as a result of changing demand trends and shifting consumer preferences. Additionally, as you know, we've been navigating through product lateness and product acceptance issues, most notably at Old Navy, which has forced us to increase the level of discounting in an effort to better balance our assortment.

剩餘的約 370 個基點的去槓桿主要源於 Old Navy 較高的折扣。與我們行業中的許多其他公司一樣，由於需求趨勢的變化和消費者偏好的變化，我們正在通過提高庫存水平進行管理。此外，如您所知，我們一直在解決產品延遲和產品接受問題，尤其是在 Old Navy，這迫使我們提高折扣水平以更好地平衡我們的分類。

Let me quickly frame up the drivers of our first half gross margin in order to contextualize the puts and takes as we look to the back half of the year.

讓我快速總結一下我們上半年毛利率的驅動因素，以便在我們展望下半年時將看跌期權和收益情況聯繫起來。

While there are factors in our control, and levers we are pulling to drive improvement, there are also gross margin dynamics where we have substantially less visibility as we look to the back half. First half adjusted gross margin was down 820 basis points year-over-year, driven by an estimated 300 basis points of airfreight deleverage, 220 basis points stemming from higher discounting, roughly 200 basis points of inflationary cost headwinds and roughly 100 basis points of ROD deleverage. As we look to the second half of the year, airfreight expense is expected to normalize, and we will be anniversarying last year's investments, resulting in roughly 400 basis points of leverage.

雖然我們的控制中有一些因素，並且我們正在拉動推動改進的槓桿，但也有毛利率動態，當我們展望後半部分時，我們的可見性大大降低。上半年調整後的毛利率同比下降 820 個基點，原因是估計 300 個基點的空運去槓桿化、220 個基點源於較高的折扣、大約 200 個基點的通脹成本逆風和大約 100 個基點的 ROD去槓桿。展望下半年，預計空運費用將正常化，我們將對去年的投資進行週年紀念，從而產生大約 400 個基點的槓桿率。

The roughly 200 basis points of inflationary deleverage is expected to continue, and ROG is expected to be flat or delevered slightly. Where we've seen the most significant variability versus our expectations is in the discount rate. While we are taking actions to rightsize inventory, we are also mindful of the uncertain and increasingly promotional environment clouding our visibility.

約200個基點的通脹去槓桿預計將繼續，ROG預計持平或小幅去槓桿。與我們的預期相比，我們看到最顯著的可變性在於貼現率。在我們採取措施調整庫存規模的同時，我們也注意到不確定性和越來越多的促銷環境使我們的知名度蒙上陰影。

We entered the third quarter with elevated levels of inventory and expect inventory growth to moderate as we move throughout the year as our actions take hold, we reduce receipts and begin to anniversary higher in-transit levels last year. By spring, we expect to begin to lean into our responsive levers, providing the flexibility to better align inventory levels with demand trends.

我們進入第三季度時庫存水平較高，預計庫存增長將放緩，因為我們在全年採取行動，因為我們採取了行動，我們減少了收貨，並在去年開始達到更高的在途水平。到春天，我們預計將開始利用我們的響應槓桿，提供靈活性，以更好地使庫存水平與需求趨勢保持一致。

Now turning to SG&A. In the second quarter, SG&A was $1.36 billion or 35.2% of sales, deleveraging 160 basis points from the prior year, primarily as a result of lower sales volume. Excluding the $35 million charge related to the Old Navy Mexico transition, adjusted SG&A as a percentage of sales deleveraged 120 basis points versus last year's adjusted rate. While we made significant SG&A investments over the last few years to help fuel our future growth opportunities, the current operating environment does dictate a moderation of these investments as well as the implementation of distinct expense savings actions in the near term.

現在轉向SG&A。第二季度，SG&A 為 13.6 億美元，佔銷售額的 35.2%，比上年減少 160 個基點，主要是由於銷量下降。不包括與舊海軍墨西哥過渡相關的 3500 萬美元費用，調整後的 SG&A 佔銷售額的百分比與去年調整後的比率相比降低了 120 個基點。雖然我們在過去幾年中進行了重大的 SG&A 投資以幫助推動我們未來的增長機會，但當前的運營環境確實要求這些投資的適度以及在短期內實施不同的費用節省行動。

We will begin implementing later in the third quarter a reduction in overhead investments, including a pause on planned hiring and open positions among other actions. In addition, we are reevaluating our investments in marketing and technology. We firmly believe that marketing investments are a key contributor to Brand health and customer acquisition. But in light of the current operating environment, we are looking at specific opportunities to invest more prudently, focusing our spend on the most productive and highest return opportunities. We also believe there's an opportunity to slow down more meaningfully the pace of our technology and digital platform investments to better optimize our operating profits.

我們將在第三季度晚些時候開始實施減少間接費用投資，包括暫停計劃中的招聘和空缺職位等行動。此外，我們正在重新評估我們在營銷和技術方面的投資。我們堅信營銷投資是品牌健康和客戶獲取的關鍵因素。但鑑於當前的運營環境，我們正在尋找更謹慎投資的具體機會，將我們的支出集中在最俱生產力和最高回報的機會上。我們還相信，有機會更有意義地放慢我們的技術和數字平台投資的步伐，以更好地優化我們的運營利潤。

We will share more details as we implement these actions, and expect these initiatives to mostly benefit fiscal 2023, and help offset the incentive compensation that will come back into our forecast next year. Reported operating margin in the second quarter was negative 0.7%. On an adjusted basis, excluding the inventory impairment charge and Old Navy Mexico charge, operating margin in the second quarter was 1.7%. Reported EPS during the second quarter was a loss of $0.13. Adjusted EPS was $0.08, which excludes the inventory impairment and Old Navy Mexico transition charge. The $50 million of estimated transitory airfreight expense in the quarter had a negative $0.10 impact to reported and adjusted EPS.

我們將在實施這些行動時分享更多細節，並預計這些舉措將主要有利於 2023 財年，並有助於抵消將在明年重新納入我們預測的激勵補償。第二季度報告的營業利潤率為負0.7%。經調整後，不包括庫存減值費用和老海軍墨西哥費用，第二季度的營業利潤率為 1.7%。第二季度報告的每股收益為虧損 0.13 美元。調整後的每股收益為 0.08 美元，其中不包括庫存減值和舊海軍墨西哥過渡費用。本季度估計的 5000 萬美元臨時空運費用對報告和調整後的每股收益產生了 0.10 美元的負面影響。

As we look to the third quarter, we continue to expect a net benefit of approximately $85 million from the planned sale of our U.K. DC now that our European partnership model transition is complete. As previously communicated, this will have a positive impact on our reported earnings and will be netted out of adjusted earnings in the third quarter.

展望第三季度，由於我們的歐洲合作夥伴模式過渡已經完成，我們繼續預計計劃出售我們的英國 DC 將帶來約 8500 萬美元的淨收益。如前所述，這將對我們報告的收益產生積極影響，並將在第三季度從調整後的收益中扣除。

While we're making progress, particularly on adjusting our assortments to better reflect shifting styles and evolving fashion across our brands, we know we have more work ahead of us. We're also navigating a unique set of circumstances, a CEO transition, new leadership at our largest brand, Old Navy, and several actions currently in flight towards rightsizing our inventory and our cost structure. On top of that, the intensifying promotional background and signs of weak demand in the low-income consumer are making forecast precision increasingly difficult. That being said, we are committed to providing transparency as it relates to our forward outlook. We will continue to provide you with color on the factors that are most in our control, and come back with further details once we have greater clarity on the consumer response to our product and inventory actions, and once we have more of the work pertaining to our cost-saving initiatives complete.

雖然我們正在取得進展，特別是在調整我們的品類以更好地反映我們品牌不斷變化的風格和不斷發展的時尚方面，但我們知道我們還有更多工作要做。我們還在應對一系列獨特的情況、CEO 換屆、我們最大品牌 Old Navy 的新領導層，以及目前正在採取的一些行動，以調整我們的庫存和成本結構。最重要的是，促銷背景的加劇和低收入消費者需求疲軟的跡象正在使預測精度變得越來越困難。話雖如此，我們致力於提供與我們的前瞻性相關的透明度。我們將繼續為您提供我們最能控制的因素的顏色，一旦我們更清楚地了解消費者對我們的產品和庫存行動的反應，並且一旦我們有更多與我們的成本節約計劃已經完成。

Now let me turn to the balance sheet and cash flow. Ending inventory of $3.1 billion was up 37% year-over-year. This includes nearly 10 percentage points of pack and hold inventory and 7 percentage points related to in-transit. More than half of the remaining increase is attributable to elevated levels of slow-turning basics and the remainder seasonal product. I'd like to provide a brief reminder on our pack and hold strategy and approach for managing basics.

現在讓我談談資產負債表和現金流。期末庫存為 31 億美元，同比增長 37%。這包括近 10 個百分點的包裝和持有庫存和 7 個百分點與在途相關。剩餘增長的一半以上歸因於緩慢轉變的基本產品和其餘季節性產品的水平升高。我想簡要提醒一下我們的包裝和持有策略以及管理基礎知識的方法。

As you may recall, we have utilized pack and hold strategies as an inventory management tool in the past, which has proven to be successful. While the use of cash in the short term, we are able to optimize our margin in the near term and benefit working capital next year as we buy lower receipts and sell through the pack and hold inventory. We're confident that we will be able to integrate our pack and hold inventory with future assortments as the majority of goods are carefully selected seasonal core items we routinely use to round out our assortments. Examples of these more timeless styles are basic shorts or short sleeve tees and tanks.

您可能還記得，我們過去曾將打包和持有策略用作庫存管理工具，這已被證明是成功的。雖然在短期內使用現金，但我們能夠在短期內優化我們的利潤率，並在明年受益於營運資金，因為我們購買較低的收據並通過包裝出售並持有庫存。我們相信，我們將能夠將我們的包裝和庫存與未來的分類整合在一起，因為大多數商品都是精心挑選的季節性核心商品，我們經常使用這些商品來完善我們的分類。這些更永恆的款式的例子是基本的短褲或短袖 T 恤和背心。

While we've had some supply chain impacts as well as product assortment missteps in the near term, we are focused on sequential inventory improvement and deeply committed to inventory productivity and getting back to our responsive levers. As discussed earlier, we've taken action to write off unproductive inventory in the second quarter and cut receipts across the assortment beginning in late fall and into holiday, positioning our brands to be able to take advantage of our reinstated responsive capabilities and chase into demand as we enter fiscal 2023. These actions are part of our focused approach to inventory planning for the remainder of fiscal 2022 and beyond.

雖然我們在短期內受到了一些供應鏈影響以及產品分類失誤，但我們專注於連續庫存改進，並致力於提高庫存生產力並恢復我們的響應槓桿。如前所述，我們已採取行動，在第二季度註銷非生產性庫存，並從秋末和假期開始削減收貨，使我們的品牌能夠利用我們恢復的響應能力並追逐需求隨著我們進入 2023 財年。這些行動是我們在 2022 財年剩餘時間及以後進行庫存計劃的重點方法的一部分。

As we look to the remainder of the year, we believe that third quarter ending inventory growth will moderate substantially and are targeting negative inventories versus last year by the end of the fiscal year. Quarter-end cash and equivalents were $708 million. Year-to-date net cash from operating activities was an outflow of $207 million. Free cash flow was an outflow of $613 million, above our historical first half outflows, driven by our net loss and the timing of merchandise payments. As we look to the second half, we anticipate more normalized cash levels as we cycle the inventory timing effects of the supply chain challenges last year as well as benefit from the actions we've taken to reduce receipts as we move through the back half and into fiscal 2023. We have taken action to fortify our balance sheet and cash positions.

當我們展望今年剩餘時間時，我們認為第三季度末庫存增長將大幅放緩，並且目標是在本財年末實現與去年相比的負庫存。季度末現金及等價物為 7.08 億美元。年初至今，經營活動產生的淨現金流出 2.07 億美元。受淨虧損和商品支付時間的推動，自由現金流流出 6.13 億美元，高於我們上半年的歷史流出量。當我們展望下半年時，我們預計現金水平會更加正常化，因為我們會循環去年供應鏈挑戰的庫存時間影響，並受益於我們在下半年和進入 2023 財年。我們已採取行動加強我們的資產負債表和現金頭寸。

We have cut or deferred some capital spending and reduced the number of Old Navy new stores slated for the back half of the year, and now expect CapEx of approximately $650 million for the year compared to our prior expectations of $700 million. During the quarter, we completed an amendment and extension of our secured revolving credit facility, securing modestly improved pricing, while increasing flexibility and liquidity within our capital structure. We remain committed to delivering an attractive quarterly dividend as a core component of total shareholder returns.

我們已經削減或推遲了一些資本支出，並減少了計劃在今年下半年開設的 Old Navy 新店的數量，現在預計今年的資本支出約為 6.5 億美元，而我們之前的預期為 7 億美元。在本季度，我們完成了有擔保循環信貸額度的修改和延期，確保了適度改進的定價，同時增加了我們資本結構的靈活性和流動性。我們仍然致力於提供有吸引力的季度股息，作為股東總回報的核心組成部分。

During the quarter, we paid a dividend of $0.15 per share. And on August 15, 2022, our Board approved a $0.15 dividend for the third quarter of fiscal 2022. During the second quarter, we repurchased 5.7 million shares for approximately $57 million as part of our plan to offset dilution. We do not anticipate further share repurchases for the remainder of fiscal 2022 as we've completed our goal early of fully offsetting dilution for the year.

在本季度，我們支付了每股 0.15 美元的股息。 2022 年 8 月 15 日，我們的董事會批准了 2022 財年第三季度 0.15 美元的股息。在第二季度，我們以約 5700 萬美元的價格回購了 570 萬股股票，作為我們抵消稀釋計劃的一部分。我們預計在 2022 財年剩餘時間內不會進行進一步的股票回購，因為我們已經提前完成了完全抵消當年稀釋的目標。

In closing, we've taken action in light of our executional challenges to rightsize inventory, reevaluate our investments, optimize cash management and taken a more conservative approach to our outlook. While we continue to navigate a difficult consumer environment and a promotionally competitive environment, we are confident in the actions we're taking and believe we are taking the right steps to position Gap Inc. back on its path towards growth margin expansion and delivering value for our shareholders over the long term.

最後，鑑於我們在調整庫存、重新評估我們的投資、優化現金管理以及對我們的前景採取更保守的態度等執行挑戰，我們已採取行動。雖然我們繼續在艱難的消費者環境和促銷競爭環境中度過難關，但我們對我們正在採取的行動充滿信心，並相信我們正在採取正確的步驟，讓 Gap Inc. 重新走上增長利潤率擴張的道路，並為從長遠來看，我們的股東。

With that, we'll open up the line for questions. Operator?

有了這個，我們將打開問題線。操作員？

(Operator Instructions) Our first question is with Lorraine Hutchinson from Bank of America.

（操作員說明）我們的第一個問題是來自美國銀行的 Lorraine Hutchinson。

I was hoping to follow up on the comments you made about Athleta and see if you could expand on any of the actions that you plan to take to improve comp? And then also comment on profitability of that concept today, and where you think it can go?

我希望跟進你對 Athleta 的評論，看看你是否可以擴展你計劃採取的任何行動來改進比賽？然後還要評論這個概念今天的盈利能力，你認為它可以去哪裡？

I think what's important to note about Athleta is the following. First of all, according to NPD, the women's athleisure market in the quarter did slow. And Athleta did maintain share within that slower athleisure market. That said, we expect Athleta to be gaining share. And so as we've looked at the performance, I think there's a couple of things we'd point to.

我認為關於 Athleta 的重要注意事項如下。首先，據 NPD 稱，本季度女性運動休閒市場確實放緩。 Athleta 確實在這個較慢的運動休閒市場中保持了份額。也就是說，我們預計 Athleta 將獲得份額。因此，當我們查看性能時，我認為我們會指出一些事情。

First of all, if you remember, they did have about 50% of their inventory sourced from Vietnam. And the supply chain issues from the back half of last year did continue to impact the performance in the first half of the year, whether it was late product or assortment imbalances that resulted from that, that all did play through their performance as well.

首先，如果你還記得的話，他們確實有大約 50% 的庫存來自越南。去年下半年的供應鏈問題確實繼續影響了上半年的業績，無論是後期產品還是由此導致的品種失衡，都確實影響了他們的業績。

And then as we talked about, they did have some print and color that just didn't resonate well with the consumer. And so the team has definitely acknowledged that. And as you look towards the fall merchandise, I think it's a more focused assortment and a more balanced assortment with great product in the performance ware that they need to be delivering as well as really versatile product in the lifestyle ware that we know they're using for some of the work and ability to sort of do everything in addition to working out. So we feel good about the actions they've taken, and know that they'll navigate through this shifting consumer and the supply chain issues over the long term.

然後正如我們所說，他們確實有一些印刷和顏色，但與消費者的共鳴並不好。所以團隊肯定承認這一點。當您查看秋季商品時，我認為這是一個更集中的分類和更平衡的分類，他們需要提供的性能產品中的出色產品以及我們知道的生活方式產品中的真正多功能產品用於一些工作和除了鍛煉之外做任何事情的能力。因此，我們對他們所採取的行動感到滿意，並且知道他們將長期解決這個不斷變化的消費者和供應鏈問題。

Nothing else for me, Lorraine. I think the real highlight there is it is product. And again, the fall product hitting soon and just underline again, my confidence as well that the balance with performance lifestyle as well as we commented on saying toward to the DNA of that brand, I think we'll see results turn around the way we want them to. So we're eager to get into that.

對我來說沒有別的了，洛林。我認為真正的亮點是它的產品。再一次，秋季產品即將推出，再次強調，我的信心以及與性能生活方式的平衡以及我們評論說對該品牌的 DNA 說，我認為我們會看到結果扭轉我們的方式希望他們。所以我們渴望進入這個領域。

Our next question is with Matthew Boss from JPMorgan.

我們的下一個問題是來自摩根大通的 Matthew Boss。

So 2 questions. I guess first, how would you separate the macro from the micro that you think that your business is facing? And maybe touch on what you think the drivers of improvement you've seen so far in August? And then, separately, Katrina, is there a way to speak to the quantity and composition of the inventory that you have today across your concepts? And just the time line to clear the excess inventory back to normalized levels in your view?

所以2個問題。我想首先，您將如何將您認為您的業務面臨的宏觀與微觀區分開來？或許可以談談您認為到目前為止您在 8 月看到的改進的驅動因素是什麼？然後，卡特里娜颶風，有沒有辦法說明你今天在你的概念中擁有的庫存的數量和構成？在您看來，只是將多餘庫存恢復到正常水平的時間線？

Yes, Matt. So I think I can start. I don't know, Bobby, if you wanted to say something first or I'm happy to dive in?

是的，馬特。所以我想我可以開始了。我不知道，鮑比，你是想先說點什麼，還是我很樂意潛入？

No. I mean I think the comments around the macro, micro, I mean we'll do it on both ends. But I mean clearly highlighting that we have seen, I believe that the impact on the lower end consumer, there's been an impact there that's obviously affected trips, and the challenge of keeping conversion maximized is where we focus.

不，我的意思是我認為圍繞宏觀、微觀的評論，我的意思是我們會在兩端都這樣做。但我的意思是明確強調我們已經看到，我相信對低端消費者的影響，那裡的影響顯然影響了旅行，保持轉化率最大化的挑戰是我們關注的地方。

The inventory transitions have been somewhat both macro and micro. But, again, I think we've already talked about how we work to clear those things out. So we can come back, Katrina, I think, after you address the bigger question. We'll come back to that, if there's anything else to answer there for Matthew.

庫存轉變在某種程度上既是宏觀的，也是微觀的。但是，我想我們已經討論過如何努力清除這些問題。所以我們可以回來，卡特里娜颶風，我想，在你解決了更大的問題之後。如果還有什麼要為 Matthew 回答的，我們會回到這個問題上。

Yes. I mean I think what we said in our prepared remarks is that July and August trends are right in line with our prior expectations. In June, we did see a dip in performance really with peak inflation and peak gas prices. So we're pleased to see July and August come back to sort of about our prior expectations.

是的。我的意思是，我認為我們在準備好的講話中所說的是，7 月和 8 月的趨勢與我們之前的預期完全一致。在 6 月，我們確實看到了通貨膨脹和汽油價格高峰的表現確實有所下降。因此，我們很高興看到 7 月和 8 月又回到了我們之前的預期。

To Bobby's point on inventory, we announced that our inventory at the end of the quarter was up 37%. We said 10 points of that is pack and hold and 7 points of that is in transit. And the balance is really sitting in slower basic product, which we can cut receipts and work down over time as well as seasonal fashion. Seasonal fashion, as we head into Q3, is pretty in line with how we owned Q2. And so we'll see how that plays out, but could indicate some near-term pressure depending on how the customer responds to the content and how the customer overall is -- as well as what the promotional environment in the industry is.

對於鮑比關於庫存的觀點，我們宣布本季度末我們的庫存增加了 37%。我們說其中 10 個點是打包並保留，其中 7 個點是在運輸中。餘額實際上是在較慢的基本產品上，我們可以減少收入並隨著時間的推移以及季節性時尚而減少。當我們進入第三季度時，季節性時尚與我們擁有第二季度的方式非常一致。因此，我們將看到它是如何發揮作用的，但可能會根據客戶對內容的反應以及客戶的整體情況以及行業的促銷環境情況表明一些近期壓力。

As we look forward, we said that ending of Q3, the inventory will moderate substantially as we were able to cut our holiday inventory and we start to reflow our basics. And then heading into next year, we expect inventories to be negative on a year-over-year basis. And the good news about spring and first quarter is, we've been able to stand back up our responsive inventory levers, which, on top of that negative inventory, will allow us to stay open and be able to chase back into trends.

正如我們所期待的那樣，我們表示在第三季度末，庫存將大幅放緩，因為我們能夠削減假期庫存並開始回流我們的基礎。然後進入明年，我們預計庫存將同比下降。關於春季和第一季度的好消息是，我們已經能夠支持我們的響應式庫存槓桿，除了負庫存之外，這將使我們能夠保持開放並能夠追回趨勢。

So near term, inventory is higher than we'd like it to be. We did take the inventory write-off, and we think that helps, at least in third quarter, present the Old Navy inventory to the customer in a better experience. And then we have taken aggressive actions over the next 6 months to really get our inventory levels back down.

所以短期內，庫存比我們希望的要高。我們確實進行了庫存沖銷，我們認為這有助於，至少在第三季度，以更好的體驗向客戶展示 Old Navy 庫存。然後，我們在接下來的 6 個月內採取了積極行動，真正讓我們的庫存水平回落。

Our next question is with Bob Drbul from Guggenheim Partners.

我們的下一個問題是來自 Guggenheim Partners 的 Bob Drbul。

I guess, Katrina, on the SG&A, can you unpack your expectations a little bit more, just maybe on some numbers around Q3, Q4, at least how that help us model it for the remainder of the year, that would be helpful?

我想，卡特里娜颶風，在 SG&A 上，你能不能再進一步展開你的期望，也許只是在第三季度、第四季度左右的一些數字上，至少這如何幫助我們在今年剩餘的時間裡進行建模，這會有幫助嗎？

Yes. Sure, Bob. As we look at SG&A for the year, our current outlook is that full year SG&A could be about $5.6 billion, which we acknowledge is just too high of a cost structure for the performance of the company as well as for the current operating environment. And so while we've made tremendous progress on the restructuring of a lot of the fixed costs in the business through closing of stores and partnering of markets, which -- and selling of small businesses, which I know you guys are well familiar with, we have made strategic investments in marketing, building technology to support our digital growth and other areas of the business as well as adding headcount.

是的。當然，鮑勃。當我們查看今年的 SG&A 時，我們目前的展望是全年 SG&A 可能約為 56 億美元，我們承認這對於公司的業績以及當前的運營環境來說成本結構太高了。因此，雖然我們通過關閉商店和建立市場合作夥伴關係，在重組業務中的許多固定成本方面取得了巨大進展，其中 - 以及出售小企業，我知道你們都很熟悉，我們在營銷、構建技術以支持我們的數字增長和其他業務領域以及增加員工人數方面進行了戰略投資。

And in light of our performance and in light of the outlook, we are really committed, and I think that's what you've heard today, to putting in place real action against working that SG&A level down to a much more appropriate level. So more to come on the actual levers we will take.

鑑於我們的表現和前景，我們真的致力於，我認為這就是你今天所聽到的，採取實際行動將 SG&A 水平降低到更合適的水平。因此，我們將採取更多的實際槓桿。

We are in the process of standing those actions up, and we will provide clarity on those actions as they happen. But many of those actions will take place, like we said, the overhead actions in the third quarter and then more to come. But likely mostly those actions will impact 2023 given the timing in the year.

我們正在支持這些行動，我們將在這些行動發生時提供明確的說明。但正如我們所說，其中許多行動將在第三季度發生間接費用行動，然後還會發生更多。但考慮到當年的時機，這些行動很可能會影響到 2023 年。

Our next question is with Brooke Roach from Goldman Sachs.

我們的下一個問題是高盛的布魯克羅奇。

Our question is about the promotional levels that you saw in 2Q. Your outlook for promotion into 3Q and holiday and what your current plans are with regard to the discount rate on both a year-on-year basis and versus 2019? Do you feel like you're going to be in a better place with the Old Navy promotional activity into 4Q? And how should we be thinking about that promotional level overall in terms of recapturing the Old Navy brand margin as we look into 2023?

我們的問題是關於您在第二季度看到的促銷水平。您對第三季度和假期促銷的展望以及您目前對同比和 2019 年折扣率的計劃是什麼？你覺得你會在第四季度的 Old Navy 促銷活動中處於更好的位置嗎？在我們展望 2023 年時，我們應該如何重新考慮舊海軍品牌利潤的整體促銷水平？

Yes. Brooke, as we dimensionalize the first half margin, we were trying to be helpful in breaking out all the pieces since there's so much happening in the margin dynamics. So as we said in the first half, we saw a deleverage based on all the airfreight of about 300 basis points. 220 basis points of the front half deleverage was discounting, so put that aside and let's talk about that in a minute.

是的。布魯克，當我們對上半場邊距進行維度化時，我們試圖幫助分解所有部分，因為邊距動態發生了很多事情。因此，正如我們在上半年所說，我們看到基於所有空運約 300 個基點的去槓桿化。前半部分去槓桿的220個基點是貼現的，所以把它放在一邊，讓我們稍後再談。

220 basis points was inflation and 100 bps was ROD. So what we said as we move forward is -- the air becomes a benefit in the back half as we lapped last year's substantial air freight, so a 400-basis-point benefit. Inflation remains about the same at about 200 basis points, and ROD could be flat to slight deleveraged. So I'll let you model what that means, but it means that we're leaving ourselves sort of a range in there that could be worse than less than the first half.

220 個基點是通脹，100 個基點是 ROD。因此，我們在前進的過程中所說的是——由於我們超過了去年的大量空運，航空成為後半部分的好處，因此是 400 個基點的好處。通貨膨脹率保持在大約 200 個基點左右，ROD 可能持平至輕微去槓桿化。因此，我將讓您模擬這意味著什麼，但這意味著我們將自己留在那裡的範圍可能比上半場還差。

It could be better than the first half. And I think that's where, again, we're focused on the actions we're taking to drive a different outcome everything from rechanging the assortment away from active and casual into more wear to work, the body-quality inventory changes we've made and the write-offs there to try and get the sizing back in place, and then really getting back to the true value proposition of Old Navy, which is jaw-dropping value on great fashion for the family. And all of that, we think we're better set up for. But acknowledging as well that inventory in third quarter is still -- fashion inventory still relatively in line with second quarter and then it gets a lot better for fourth quarter.

可能會比上半場好。我認為這就是我們再次關注我們正在採取的行動以推動不同的結果，從將分類從活動和休閒轉變為更多的工作服裝，我們所做的身體質量庫存變化以及那裡的註銷，試圖讓尺寸恢復原狀，然後真正回到 Old Navy 的真正價值主張，這是對家庭的偉大時尚的令人瞠目結舌的價值。所有這一切，我們認為我們已經做好了準備。但也承認第三季度的庫存仍然 - 時尚庫存仍然與第二季度相對一致，然後第四季度會好很多。

And I think the X Factor, too, as we said, Brooke, is, I mean you've been seeing the reports as well. The industry is a wash and inventory. And so we're just being careful, too, a little bit about what we will be navigating with others promoting. So lots of dynamics, which is part of the reason why we've left that as sort of the open variable. But we will stay close as we read our own performance on product and pricing as well as what's happening with the consumer and the competitive environment.

我認為 X 因素也是，正如我們所說，布魯克，我的意思是，你也已經看到了這些報告。該行業是一個洗滌和庫存。因此，我們也只是要小心一點，我們將與其他人一起推廣什麼。如此多的動態，這也是我們將其保留為開放變量的部分原因。但是，當我們閱讀自己在產品和定價方面的表現以及消費者和競爭環境發生的事情時，我們將保持密切聯繫。

Our next question is with Dana Telsey from Telsey Advisory Group.

我們的下一個問題是來自 Telsey 諮詢集團的 Dana Telsey。

Obviously, you have a new leader at Old Navy. I'm just wondering as -- and he hasn't been there very long. But just wondering, as you see the game plan to improve Old Navy whether it's in the size and assortment imbalances, what is the path that we should be looking for?

顯然，你在 Old Navy 有了一位新領導人。我只是想知道——而且他來的時間不長。但只是想知道，當您看到改進 Old Navy 的遊戲計劃時，無論是在規模和分類不平衡方面，我們應該尋找的路徑是什麼？

And as you think about the core Gap brand, and the enhancements that could come there, what trajectory are you on now? And how do you see the leadership in terms of the role of CEO. Is that -- do you see that being fulfilled within the next 6 months? And is there any particular qualifications that you're looking for in the CEO role?

當您考慮核心 Gap 品牌以及可能出現的增強功能時，您現在的發展軌跡是什麼？以及您如何看待 CEO 角色方面的領導力。那是——你認為在接下來的 6 個月內會實現嗎？您在 CEO 職位上是否有任何特殊的資格要求？

Yes. Let me start, Katrina, and then you can come back on the back side. Again, Dana, to you and Yes. I always -- he's just barely 3 weeks in his job, but again, he's hit the ground running. And I think as we've talked about earlier, and I'll just highlight relative to the brand and what you might expect how he sees Old Navy, we appointed him really and he's the right balance, particularly with product focus, the premium and personal on customer experience, very strong, proven operator, and, again, manage that in challenging time.

是的。讓我開始吧，卡特里娜颶風，然後你可以從後面回來。再次，達娜，對你，是的。我總是——他的工作只有不到 3 週的時間，但同樣，他已經開始工作了。而且我認為正如我們之前討論過的，我將重點介紹與品牌相關的內容以及您可能期望他如何看待 Old Navy，我們確實任命了他，他是正確的平衡點，尤其是在產品重點、溢價和個人客戶體驗，非常強大，經過驗證的運營商，並且再次在充滿挑戰的時期進行管理。

So understanding value and executing in the format that Old Navy serves, I think we'll see him really strengthen a lot of the category execution and so forth and make sure that we rightsize the assortment. But we're going to have to give him time. He's right now focusing on the next 2 quarters while also looking at the commitments and plans and product for spring and summer ahead. But again, we just need to give him a little bit of time.

因此，了解價值並以 Old Navy 服務的格式執行，我認為我們會看到他真正加強了很多類別執行等等，並確保我們調整分類。但我們將不得不給他時間。他現在專注於接下來的兩個季度，同時也在關注未來春季和夏季的承諾、計劃和產品。但同樣，我們只需要給他一點時間。

Let me just shift on the back side, since you asked about the CEO search. Because again, I commented in my prepared remarks, and I'm sure a number of you are really wanting to understand what are we doing. And again, the Board has commissioned the search. We're well into it and looking to move this aggressively and as swiftly as we can, but, as you would imagine and expect, also very thoughtfully.

讓我換個角度，因為你問到 CEO 的搜索。因為我再次在準備好的評論中發表了評論，我相信你們中的一些人真的很想了解我們在做什麼。再次，董事會已委託進行搜索。我們對此非常感興趣，並希望盡可能迅速地積極推進這項工作，但正如您所想像和期望的那樣，我們也非常周到。

And in terms of Gap, this is a very attractive company to lead. So we're seeing plenty of interest, but again, we want to make sure we put the right leader in place. And as we look at that, I mean, clearly, we are looking for a leader that will move Gap Inc. in total from defense to offense and position us back where we're seeing meaningful share gains across our brands. We're very strong, the foundation of this company and powerful iconic brands that we believe that we still own and compete with as long as we continue to move forward in the progress that we are, we're going to continue to build on those strengths.

就 Gap 而言，這是一家非常有吸引力的公司。因此，我們看到了很多興趣，但同樣，我們希望確保我們找到合適的領導者。當我們看到這一點時，我的意思是，很明顯，我們正在尋找一位能夠將 Gap Inc. 從防守轉向進攻的領導者，並將我們定位在我們看到我們品牌的有意義的份額增長的地方。我們非常強大，是這家公司的基礎和強大的標誌性品牌，我們相信我們仍然擁有並與之競爭只要我們繼續前進，我們將繼續在這些強項。

The well-established values of the company and our scale of our omni platform are things that we're going to be looking for in the next leader. So a very modern-minded transformative executive that, again, can, again, strengthening us back into our position of leadership, while also then moving us hopefully even toward newer existing categories and potentially diversification in areas that we feel might make sense. But ultimately, as you would expect, a leader that we believe can deliver on what our customers expect. And again, what's going to drive the value creation that all of our shareholders expect. So more to come on that.

公司公認的價值觀和我們全方位平台的規模是我們要在下一位領導者身上尋找的東西。因此，一位非常具有現代思維的變革型高管可以再次將我們重新帶回到我們的領導地位，同時也有希望將我們推向更新的現有類別，並在我們認為可能有意義的領域實現潛在的多元化。但最終，正如您所期望的那樣，我們相信一位能夠滿足客戶期望的領導者。再說一次，什麼將推動我們所有股東期望的價值創造。所以還有更多的事情要做。

Next question is with Mark Altschwager from Baird.

下一個問題是來自 Baird 的 Mark Altschwager。

First, on the margin, obviously, a lot of headwinds impacting 2022. What are the areas where you have the greatest amount of visibility or greatest amount of confidence on marginal cash next year? And then separately, on Athleta, I'm curious if you could also speak to the company's current thinking on potential strategic actions there and whether there's been any change to that, making your approach into what we heard from you back in May?

首先，在邊際上，很明顯，2022 年有很多不利因素。明年你對邊際現金有最大的知名度或最大的信心的領域是什麼？然後另外，關於 Athleta，我很好奇你是否也可以談談公司目前對那裡潛在戰略行動的想法，以及是否有任何改變，讓你的方法成為我們在 5 月份從你那裡聽到的消息？

Mark, it's Katrina. I'm sorry, you were breaking up a lot, so I'm going to do my best with your questions. I'll go ahead and take the 2023 margin question, which is I think what you asked, and then maybe I'll let Bobby talk about strategic actions for the company.

馬克，是卡特里娜颶風。對不起，你們分手了很多，所以我會盡力解決你的問題。我會繼續回答 2023 年保證金的問題，我想這就是你問的問題，然後也許我會讓 Bobby 談談公司的戰略行動。

When I think about next year's margin, I think we have a lot of things to still work through. And so we'll have to owe that when we have more insight. The levers will be similar to the levers we've been talking about. I think the one lever we know is that, we don't plan to be using airfreight going forward. I think that's the one thing we know that it's an expensive lever, and we've created responsive levers back in the business so we shouldn't have to do that again.

當我想到明年的利潤時，我認為我們還有很多事情要做。因此，當我們有更多的洞察力時，我們將不得不承擔這一責任。槓桿將類似於我們一直在談論的槓桿。我認為我們知道的一個槓桿是，我們不打算在未來使用空運。我認為這是我們知道這是一個昂貴的槓桿的一件事，而且我們已經在業務中創建了響應式槓桿，因此我們不必再這樣做了。

And then as it relates to inflation and some of these other areas of the business, I think it's too soon to comment on that. So we will be committed to providing color as we have more insights into 2023. And then, Bobby, I don't know if you want to talk about strategic options?

然後，由於它與通貨膨脹和其他一些業務領域有關，我認為現在對此發表評論還為時過早。所以我們將致力於提供色彩，因為我們對 2023 年有更多的見解。然後，鮑比，我不知道你是否想談談戰略選擇？

Yes, I didn't really -- I'm sorry, I didn't -- Mark, I didn't hear your question as you asked it.

是的，我真的沒有——對不起，我沒有——馬克，我沒有聽到你問的問題。

Okay. Sorry for the bad connection, I'll try again here. Just with respect to Athleta, I'm wondering if there's been any change to the company's thinking with respect to strategic actions there since we heard from you in May?

好的。抱歉，連接不好，我會在這裡再試一次。就 Athleta 而言，我想知道自從我們 5 月份收到您的來信以來，公司在戰略行動方面的想法是否有任何變化？

Yes. No, look, I think what we will always be stating here, I mean, we're always looking at the best ways to bring value creation. And so we're constantly evaluating those things. The brands play a lot of strength off of the scalability of the company combined and so forth. But Athleta is a brand that we're very proud of and have a lot of promise in. But again, the Board is always constantly looking at options. So certainly, nothing to talk about, but always looking.

是的。不，看，我想我們將在這裡一直說的話，我的意思是，我們一直在尋找創造價值的最佳方式。所以我們一直在評估這些事情。這些品牌在公司綜合的可擴展性等方面發揮了很大的作用。但是 Athleta 是一個我們非常自豪的品牌，並且有很多承諾。但同樣，董事會總是在不斷地尋找選擇。所以當然，沒什麼可談的，但總是在尋找。

Our next question is with Oliver Chen from Cowen.

我們的下一個問題是來自 Cowen 的 Oliver Chen。

As we think about the product assortment at Old Navy, which classifications and/or lack of classifications have the most opportunity? And it sounded like you said impact in terms of creative would be in the back half of next year just given the timing, is that a true statement? With respect to that question also, the good, better, best matrix, would love your thoughts on how you need to tackle that as you continue to refine the inventory?

當我們考慮 Old Navy 的產品分類時，哪些分類和/或缺少分類的機會最多？聽起來你說的創意方面的影響將在明年下半年，只是考慮到時間，這是一個真實的說法嗎？關於這個問題，好的、更好的、最好的矩陣，會喜歡你在繼續完善庫存時如何解決這個問題的想法嗎？

And then, Katrina, on the response of inventory plans, could you just be more specific about what you're talking about, and how it could help the financials with that programming in the fall?

然後，卡特里娜颶風，關於庫存計劃的回應，你能否更具體地說明你在說什麼，以及它如何幫助財務部門在秋季進行該計劃？

Sure. So on the Old Navy assortment, Oliver, what hasn't been working really, not just with Old Navy, but in general, is a shift away from the cozier categories like active and fleece as well as like T-shirts and casual shorts.

當然。所以對於 Old Navy 的分類，Oliver，並沒有真正奏效，不僅是 Old Navy，而且總的來說，是從更舒適的類別，如活動和羊毛以及 T 恤和休閒短褲。

And so that's less about the product not being great and more about the fact that the consumer, as you know, is really buying a lot less of that this year and really wanting to spend more on things like dresses, pants, even dressier denim and woven tops, things that she can wear out to parties or to work. And so the pivot that we've been making at Old Navy, but also at Gap is really less of those casual categories and more of the going-out categories.

因此，這不是因為產品不夠好，而是因為消費者，如你所知，今年購買的產品確實少了很多，並且真的想在裙子、褲子，甚至更考究的牛仔布上花更多的錢。編織上衣，她可以穿去參加聚會或工作的東西。因此，我們在 Old Navy 和 Gap 所做的支點實際上更少的是那些休閒類別，更多的是走出去的類別。

And as we talked about, that is better in fall and much better by holiday. As far as the fashion elements that didn't resonate at Old Navy, that's really holiday that we're able to change the aesthetic more dramatically based on some of the learnings we had in first quarter.

正如我們所說，秋天更好，假期更好。至於在 Old Navy 中沒有引起共鳴的時尚元素，那真的是一個假期，我們能夠根據我們在第一季度獲得的一些經驗，更顯著地改變審美。

I know you asked about good, better, best. I think at Old Navy, maybe the best items got a little too high on the best side. And so the team will be looking at really making sure we have enough of the good and better product as we head in the spring, which is especially important as we navigate this consumer environment.

我知道你問的是好，更好，最好。我認為在 Old Navy，也許最好的項目在最好的方面有點太高了。因此，團隊將著眼於真正確保我們在春季開始時擁有足夠的優質產品，這在我們駕馭這種消費環境時尤其重要。

And then on responsive, when we say responsive, we have a couple of levers that we use. First of all, we have vendor-managed inventory, which means we're working closer with our vendors to buy inventory on a more regular basis, and they hold it for us, and we pull it as opposed to buying so much in advance. And then platforming a fabric with our vendors that allows us to chase into styles and colors as we read the consumer. So those are a couple of examples of where we'll get speed and flexibility back. But those levers, as you can imagine, when the manufacturing base was so disrupted, we're just not at our ability to leverage. So we're looking forward to getting that back as the manufacturing base has stabilized.

然後在響應方面，當我們說響應時，我們有幾個我們使用的槓桿。首先，我們有供應商管理的庫存，這意味著我們正在與我們的供應商更密切地合作，以更定期地購買庫存，他們為我們持有庫存，我們將其提取而不是提前購買。然後與我們的供應商建立一種面料平台，使我們能夠在閱讀消費者時追踪款式和顏色。因此，這些是我們將恢復速度和靈活性的幾個例子。但是，正如您可以想像的那樣，當製造基地受到如此破壞時，我們無法利用這些槓桿。因此，隨著製造基地的穩定，我們期待將其收回。

Our next question is with Simeon Siegel from BMC.

我們的下一個問題是來自 BMC 的 Simeon Siegel。

Good afternoon, everyone. Hope you're having a nice end to the summer. Sorry if I missed it, and I know you don't normally talk about it, but just given the orders of magnitude, any way to talk about Old Navy's AUR versus pre pandemic?

大家下午好。希望你有一個美好的夏天結束。抱歉，如果我錯過了，我知道您通常不會談論它，但只是考慮到數量級，有什麼方法可以談論 Old Navy 的 AUR 與大流行前的情況？

And then maybe just how you're thinking about the Old Navy long-term revenue opportunity? Have you stress tested whether there might -- I just wondering if you might be better served, I think, some of the elevated revenues from recent years settle in a little bit to protect margins even on lower volume.

然後也許你是如何看待 Old Navy 的長期收入機會的？您是否進行了壓力測試是否可能 - 我只是想知道您是否會得到更好的服務，我認為，近年來增加的一些收入會稍微穩定下來，以保護利潤率，即使在較低的銷量下也是如此。

And then just lastly, did you say if you're seeing any meaningful deviation in product category? I guess I'm wondering are you seeing the same athleisure softness at Old Navy?

最後，您有沒有說您在產品類別中是否發現任何有意義的偏差？我想我想知道你是否在 Old Navy 看到了同樣的運動休閒柔軟度？

We didn't comment specifically on AURs by brand, but I would say, overall, while we're reverting on discount levels to last year, still, as a company, we are up to 2019 as far as our ability to be less discounted. So whether that's being aided by Banana Republic's turnaround, or we did do a significant amount of improvement in Old Navy over the long term, we are still seeing some stickiness on that discount rate improvement to 2019.

我們沒有按品牌具體評論 AUR，但我想說，總的來說，雖然我們將折扣水平恢復到去年，但作為一家公司，就我們降低折扣的能力而言，我們到 2019 年.因此，無論是香蕉共和國的好轉，還是我們確實在長期內對 Old Navy 進行了重大改進，我們仍然看到到 2019 年貼現率提高有一些粘性。

Now we'll see how the back half plays out, but that's sort of so far what we've seen. And again, the reversion is really the year-over-year reversion to last year's big gains. Remind me of your second question, sorry?

現在我們將看看後半部分的表現如何，但這就是我們目前所看到的。再一次，回歸實際上是對去年大收益的逐年回歸。提醒我你的第二個問題，對不起？

Just thinking through, you stress tested volume versus margin and validated revenue from last year, whether that's the right base or whether you could do better, you can make more with less?

仔細想想，您對去年的銷量與利潤率和驗證收入進行了壓力測試，這是否是正確的基礎，或者您是否可以做得更好，您可以用更少的錢賺更多的錢？

Yes. I mean I think it's a great question, Simeon. And certainly, one we'll tackle as we head into 2023. I think fundamentally, as you heard today, we are highly committed to inventory productivity as we move forward and making sure we have a much sharper view on tight inventories. And so finding that right balance between unit velocity and AUR and margin will be critical. And we'll have more to say about that as we think about the architecture for 2023. But we're early days in shaping what that looks like.

是的。我的意思是我認為這是一個很好的問題，西蒙。當然，我們將在進入 2023 年時解決這一問題。我認為，從根本上講，正如您今天所聽到的，我們在前進的過程中高度致力於提高庫存生產力，並確保我們對緊張的庫存有更清晰的認識。因此，在單位速度與 AUR 和邊際之間找到正確的平衡將是至關重要的。當我們考慮 2023 年的架構時，我們將有更多話要說。但我們在塑造它的樣子方面還處於早期階段。

Great. And then just the last one was -- and sorry, if I missed it. Did you talk about Old Navy athleisure, so that you talk about product category and whether you saw the similar softness there?

偉大的。然後只有最後一個是 - 抱歉，如果我錯過了。您是否談論過 Old Navy 運動休閒，所以您談論產品類別以及您是否看到那裡類似的柔軟度？

So I think, fundamentally, Active continues to be a massive business at Old Navy. They're dominant shareholders of Active -- and which is the true statement for Athleta as well. They continue to do a significant amount of their business out of Active. I think what we're seeing in both of those businesses or all of our businesses is really just a step back off of last year's massive growth based on the shift of the consumer now towards workwear. But Old Navy's active business is still quite large and important and still quite healthy, just not as big growth as we had planned for before we saw this big shift in the consumer demand.

所以我認為，從根本上說，Active 仍然是 Old Navy 的一項龐大業務。他們是 Active 的主要股東——這也是 Athleta 的真實陳述。他們繼續在 Active 之外開展大量業務。我認為我們在這兩個業務或我們所有業務中看到的情況實際上只是比去年基於現在消費者轉向工作服的大規模增長的退步。但是，Old Navy 的活躍業務仍然相當大、很重要，而且仍然很健康，只是沒有我們看到消費者需求發生這種巨大轉變之前計劃的那麼大的增長。

Our next question is with Paul Lejuez from Citigroup.

我們的下一個問題是花旗集團的 Paul Lejuez。

A couple of quick ones. The improvement that you saw in July and into August -- can you talk about that where you saw the biggest pickup by brand? And if that was promotionally driven or if you're happy with the margin performance Second, the $50 million write-off, where is that product, is you write that to 0? Was that destroyed? Is it still in stores? Just wanted a little bit more color there.

幾個快速的。您在 7 月和 8 月看到的改善——您能談談您看到品牌最大回升的地方嗎？如果這是促銷驅動的，或者如果您對利潤率表現感到滿意第二，5000 萬美元的註銷，該產品在哪裡，您是否將其寫入 0？那是被毀了嗎？它還在商店裡嗎？只是想在那裡多一點顏色。

And then just early -- or early thoughts, but talked on AUC for first half of '23?

然後只是早期 - 或早期想法，但談到了 23 年上半年的 AUC？

Yes. Thanks, Paul. As we said, July and August are sort of relatively in line with our prior expectations. We haven't commented on the margin component of that. I think, in general, you've heard a lot today about how we're thinking about margin. And so we'll let you work through your model on that. As it relates to the write-off, so most of that inventory is Old Navy inventory it's summer -- spring and summer fashion that we determined was going to be really hard to clear in the quarter as we moved into third quarter, combined with a lot of the extended size inventory that we've talked about before, really not resonating with customers.

是的。謝謝，保羅。正如我們所說，7 月和 8 月相對符合我們之前的預期。我們還沒有評論其中的保證金部分。我想，總的來說，你今天聽到了很多關於我們如何考慮保證金的問題。因此，我們將讓您在此基礎上完成您的模型。由於它與核銷有關，所以大部分庫存都是夏季的 Old Navy 庫存——當我們進入第三季度時，我們確定的春夏時裝在本季度將很難清除，再加上我們之前討論過的很多大尺寸庫存，實際上並沒有引起客戶的共鳴。

That will be taken out of Old Navy stores over the next couple of weeks as the teams are able to navigate the workload between back-to-school and pulling that inventory out of stores. We have determined some level of recovery for that, and that's embedded in that $58 million.

這將在接下來的幾週內從 Old Navy 商店中撤出，因為團隊能夠在返校和將庫存從商店中撤出之間進行導航。我們已經為此確定了一定程度的恢復，這包含在這 5800 萬美元中。

And then your last AUC, early days. I think certainly, in the first quarter, as we've been buying spring, we still see inflationary pressure, primarily coming from cotton, wage pressure, and freight and all that -- oil and all that other stuff, but more to come on where those buys settle and how that ends up settling through our financials.

然後是你的最後一個 AUC，早期。我認為肯定的是，在第一季度，由於我們一直在購買春季，我們仍然看到通脹壓力，主要來自棉花、工資壓力、運費和所有這些——石油和所有其他東西，但還會有更多這些購買在哪裡結算以及最終如何通過我們的財務結算。

Our next question is with Janet Kloppenburg from JJ KR Research. Janet, your line is open.

我們的下一個問題是來自 JJ KR Research 的 Janet Kloppenburg。珍妮特，你的電話是開放的。

I wanted to ask, Katrina, as you think about the brand positioning of Old Navy and the Gap in contrast to the dress-up trends, the casual positioning of both of those brands in contrast to the dress-up trends that we're seeing now, is there a thought to pivoting the brands to more formal dress up where work looks? What should we expect as the assortments evolve in the holiday season and into next year?

我想問一下，卡特里娜，當你思考 Old Navy 和 Gap 的品牌定位與裝扮趨勢對比時，這兩個品牌的休閒定位與我們所看到的裝扮趨勢對比現在，有沒有想過將品牌轉向更正式的工作裝扮？隨著假期季節和明年的分類發展，我們應該期待什麼？

Yes. Thanks, Janet. Certainly, we don't expect to broadly pivot the brand's DNA. I think by nature, those are casual brands, and that's how they've won. That said, there are lots of elements within each of those brands, whether you think of dressed up denim or pants like the pixie pants or khakis at Gap, woven tops, outerwear, even sweaters that we believe we can put together and diversal looks that should take her from day and into night.

是的。謝謝，珍妮特。當然，我們不希望廣泛地改變品牌的 DNA。我認為從本質上講，這些都是休閒品牌，這就是他們獲勝的方式。也就是說，每個品牌中都有很多元素，無論你想到的是裝扮的牛仔布還是 Gap 的精靈褲或卡其褲之類的褲子，編織上衣，外套，甚至是我們相信我們可以組合在一起的毛衣和多樣化的外觀應該帶她從白天到黑夜。

And so think that's the commitment that the team has, is in the near term, they've been working on really rebalancing out of the casual into more of those looks. I think we all know that, right now, we have a little bit of a whipsaw from casual into work, and we want to be careful to keep the balanced DNA of both of those brands because I think we can win with both elements of products. So we'll stay balanced, but certainly, we'll be showcasing that more versatile dressed up look as we head into the back half of the year.

所以認為這是團隊的承諾，在短期內，他們一直在努力真正重新平衡休閒風格，融入更多這些外觀。我想我們都知道，現在，我們從休閒到工作有點洗盤，我們要小心保持這兩個品牌的平衡 DNA，因為我認為我們可以通過產品的兩種元素取勝.所以我們會保持平衡，但可以肯定的是，當我們進入今年下半年時，我們將展示更加多才多藝的裝扮外觀。

Our last question will come from the line of Marni Shapiro with Retail Tracker.

我們的最後一個問題將來自 Marni Shapiro 與 Retail Tracker 的系列。

I actually want to follow up on a question that was asked, but you guys didn't answer if that's okay, and maybe I'm just calling something slightly more positive. You said trends picked up in July and into August. I'm curious if that was related specifically to Old Navy, less across the board? Was it driven by back-to-school in the kids' business? If you could just walk us through a little bit what those trends look like? And I know it's early innings for back-to-school and fall, but just have some idea as to where you're seeing the turn.

我實際上想跟進一個被問到的問題，但你們沒有回答是否可以，也許我只是在說一些更積極的事情。你說趨勢在 7 月和 8 月有所回升。我很好奇這是否與舊海軍特別相關，而不是全面？它是由兒童業務中的返校驅動的嗎？如果你能帶我們了解一下這些趨勢是什麼樣的？而且我知道現在是返校和秋季的早期階段，但只是想知道你在哪裡看到了轉折點。

Yes, Marni, I mean we haven't said by brand, but I think that we continue to feel quite good about the fact that we have big and important denim and kids and baby businesses in both Gap and Old Navy. And we also have active wear, as we talked about, which we still think plays an important role in back-to-school.

是的，Marni，我的意思是我們沒有按品牌說，但我認為我們仍然對我們在 Gap 和 Old Navy 擁有龐大而重要的牛仔布和兒童和嬰兒業務這一事實感到非常滿意。正如我們所談到的，我們也有運動服，我們仍然認為這在返校期間起著重要作用。

So back-to-school is a long season. We'll see how that plays out. But we're also really pleased, as you've seen over the last couple of quarters with Banana Republic and with the way they've been competing on their repositioning and feel like they've done a great job. So more to come on where the quarter plays out.

所以返校是一個漫長的季節。我們將看看結果如何。但我們也很高興，正如您在過去幾個季度與 Banana Republic 以及他們在重新定位方面競爭的方式所看到的那樣，並且感覺他們做得很好。因此，本季度將有更多內容。

I think the trends are on our expectation, but we're remaining prudent in sort of what the outlook looks like. So we'll see how that all settles for the quarter and for the year.

我認為趨勢符合我們的預期，但我們對前景的看法保持謹慎。因此，我們將看到這一切如何在本季度和本年度解決。

Katrina, I think it's worth noting a seeing a little more positive pickup in the online penetration is well been encouraging.

卡特里娜颶風，我認為值得注意的是，在線滲透率的積極回升令人鼓舞。

Well, that's to look for the rest of the back-to-school and fall season guys.

好吧，那就是尋找其他返校和秋季的傢伙。

Thanks, Marni.

謝謝，瑪尼。

Thank you. That does conclude our conference call. You may now disconnect.

謝謝你。這確實結束了我們的電話會議。您現在可以斷開連接。