蓋璞 (GPS) 2022 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen. My name is Brent, and I will be your conference operator today. I would like to welcome everyone to the Gap Inc. Third Quarter 2022 Earnings Conference Call. (Operator Instructions)

女士們先生們，下午好。我叫布倫特，今天我將擔任你們的會議接線員。歡迎大家參加 Gap Inc. 2022 年第三季度收益電話會議。 （操作員說明）

I would now like to introduce your host, Cammeron McLaughlin, Head of Investor Relations.

我現在想介紹一下您的主持人，投資者關係主管 Cammeron McLaughlin。

Good afternoon, everyone. Welcome to Gap Inc.'s Third Quarter Fiscal 2022 Earnings Conference Call.

大家下午好。歡迎來到 Gap Inc. 的 2022 財年第三季度收益電話會議。

Before we begin, I'd like to remind you that 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; the information included on Page 2 of the slides shown on the Investors section of our website, gapinc.com, which supplement today's remarks; 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.

在我們開始之前，我想提醒您，本次網絡廣播和電話會議中提供的信息包含前瞻性陳述，這些陳述存在風險，可能導致我們的實際結果出現重大差異。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，請參閱我們最新的收益發布中包含的警示性聲明;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，這些信息補充了今天的評論；公司於 2022 年 3 月 15 日向美國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，以及隨後向美國證券交易委員會提交的任何文件，所有這些都可以在 gapinc.com 上找到。

These forward-looking statements are based on information as of today, November 17, 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 11 月 17 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 Bobby Martin；和首席財務官 Katrina O'Connell。有了這個，我會把電話轉給鮑比。

Thank you, Cammeron, and good afternoon, everyone. After 4 months as Interim President and CEO, I have even deeper conviction that we have a portfolio of iconic brands that our customers love, an increased confidence in our platform to drive leverage and economies of scale, and belief in this team's ability to deliver. We know where we've gotten things wrong, and the team and I are at work to correct them.

謝謝你，Cammeron，大家下午好。在擔任臨時總裁兼首席執行官 4 個月後，我更加堅信我們擁有客戶喜愛的標誌性品牌組合，對我們平台推動槓桿作用和規模經濟的信心增強，以及對團隊交付能力的信心。我們知道哪裡出了問題，我和我的團隊正在努力糾正這些問題。

As I told you last quarter, we can and we should win in any environment, and the management team and I continue to hold the company accountable to deliver on that. We've taken action to optimize profitability and cash flow while rebalancing and reducing inventory to drive near- and long-term improvements across our entire business. We've sharpened our focus on execution or bringing more rigor to our operations and are responding to what our customers are telling us with respect to trend. While our efforts drove sequential improvement during the quarter, our expectations are set on the consistency of execution quarter after quarter, year after year that we know is crucial to delivering the sustainable profitable growth and value that our people and shareholders expect.

正如我上個季度告訴你的那樣，我們可以而且應該在任何環境中取勝，我和管理團隊將繼續要求公司為實現這一目標而負責。我們已採取行動優化盈利能力和現金流，同時重新平衡和減少庫存，以推動我們整個業務的近期和長期改進。我們已經加強了對執行的關注或使我們的運營更加嚴格，並且正在回應客戶告訴我們的有關趨勢的信息。雖然我們的努力推動了本季度的連續改進，但我們的期望是建立在逐季、逐年執行的一致性上，我們知道這對於實現我們的員工和股東期望的可持續盈利增長和價值至關重要。

Let me provide an update on our progress during the quarter, starting with actions taken on cost. As I last shared, we are aggressively managing costs and have taken distinct action in this quarter alone, resulting in roughly $250 million in estimated annualized savings. These actions include the elimination of 500 existing and open roles in our corporate offices and a pause on hiring and contractor spend for the remainder of the year, resulting in $125 million in estimated annualized savings. Initially, the renegotiation of our advertising agency contracts, resulting in approximately $75 million in annualized savings; and a reduction in technology, operating costs and rationalized investments, resulting in estimated $50 million of annualized savings beginning in fiscal 2023.

讓我提供本季度進展的最新情況，首先是在成本方面採取的行動。正如我上次分享的那樣，我們正在積極管理成本，僅在本季度就採取了明顯的行動，預計每年可節省約 2.5 億美元。這些行動包括取消我們公司辦公室的 500 個現有和空缺職位，以及在今年剩餘時間暫停招聘和承包商支出，預計每年可節省 1.25 億美元。最初，重新談判我們的廣告代理合同，每年節省約 7500 萬美元；以及技術、運營成本和合理化投資的減少，預計從 2023 財年開始每年可節省 5000 萬美元。

We are early in our work here and yet already these savings are expected to help offset higher incentive compensation and increasing labor costs in fiscal 2023. However, there is still work to be done to transform our cost structure and improve overall efficiency so that we are fit for the future.

我們在這方面的工作還處於早期階段，但這些節省預計將有助於抵消 2023 財年更高的激勵薪酬和不斷增加的勞動力成本。然而，在轉變我們的成本結構和提高整體效率方面仍有工作要做，以便我們能夠適合未來。

Next, let me share more on our inventory actions and assortment rebalancing efforts. We continue to rely heavily on markdowns and discounting to sell-through liable styles this quarter and have reduced receipts in Q4. These actions will allow us to enter fiscal 2023 in an improved inventory position. And beginning in Q1, our brands will benefit from our reinstated, responsive capabilities to chase into product demand. We're seeing an improved balance in the assortment across the portfolio compared to the first half of the year. And each of our brands were better positioned in the categories that resonate with the base consumer preferences, and our customers rewarded us for that.

接下來，讓我分享更多關於我們的庫存行動和分類再平衡的努力。我們在本季度繼續嚴重依賴降價和折扣銷售可靠款式，並減少了第四季度的收入。這些行動將使我們能夠以改善的庫存狀況進入 2023 財年。從第一季度開始，我們的品牌將受益於我們追逐產品需求的恢復響應能力。與今年上半年相比，我們看到整個投資組合的分類平衡有所改善。我們的每個品牌都在與基本消費者偏好產生共鳴的類別中處於更好的位置，我們的客戶也因此獎勵了我們。

We saw consistent category strength in dresses, sweaters, pants and woven tops across the portfolio, with active underperforming across the board as consumers continue to shift away from the cozy, at-home lifestyle. While Athleta isn't immune to the change in consumer preference, despite the moderation of growth in the women's active market, the brand is showing strength in lifestyle categories like dresses and accessories that are demonstrating disproportionate growth in today's current environment.

我們在整個產品組合中看到了連衣裙、毛衣、褲子和梭織上衣的類別優勢，隨著消費者繼續遠離舒適的居家生活方式，整體表現不佳。雖然 Athleta 也不能倖免於消費者偏好的變化，儘管女性活躍市場的增長放緩，但該品牌在生活方式類別（如連衣裙和配飾）中表現出實力，這些類別在當今當前環境下表現出不成比例的增長。

Now let me take a moment and speak to each of our brands, starting with Old Navy. Old Navy delivered net sales growth of 2% over last year, showing early signs of improvement as the brand continues its efforts to rightsize inventory, balance assortment, relevance and sizing across its channels. And the brand saw strength in its women's business in categories including pants, outerwear, sweaters and woven tops. All this was offset, however, by softness in active in kids and baby as we lapped last year's strong demand, which we believe was driven in part by the U.S. Child Tax Credit and, of course, the heightened post-COVID back-to-school spending.

現在讓我花點時間談談我們的每個品牌，從 Old Navy 開始。 Old Navy 的淨銷售額比去年增長了 2%，顯示出改善的早期跡象，因為該品牌繼續努力調整庫存規模、平衡分類、相關性和跨渠道規模。該品牌的女裝業務在褲子、外套、毛衣和梭織上衣等類別中表現強勁。然而，所有這一切都被兒童和嬰兒活動的疲軟所抵消，因為我們滿足了去年的強勁需求，我們認為這在一定程度上是由美國兒童稅收抵免，當然還有 COVID 後增加的返-學校開支。

Old Navy customers still have a propensity to buy. That being said, it continues to experience softness in spending and shopping frequency from its lowest-income consumers. As we continue to attract a wide range of consumers, we still believe Old Navy is well positioned in the marketplace, particularly as consumers become more value-conscious.

老海軍客戶仍然有購買傾向。話雖如此，它的最低收入消費者的支出和購物頻率繼續疲軟。隨著我們繼續吸引廣泛的消費者，我們仍然相信 Old Navy 在市場上處於有利地位，尤其是在消費者變得更加註重價值的情況下。

Next, Gap brand. Gap delivered net sales flat to last year and is seeing signs of strength in its core, with a significant shift in trend performance across its women's business. Iconic Gap [slogans were delivered] in trend-right fabrics like faux leather and occasion-based categories like dresses, woven tops, sweaters and pants all drove comparable sales growth. Similar to Old Navy, Gap brand experienced softness in kids and baby and activewear overall.

其次，Gap品牌。 Gap 的淨銷售額與去年持平，並看到其核心業務的強勁跡象，其女性業務的趨勢表現發生了重大轉變。標誌性的 Gap [發布了口號] 在人造皮革等潮流面料和連衣裙、梭織上衣、毛衣和褲子等基於場合的類別中都推動了可比的銷售增長。與 Old Navy 類似，Gap 品牌在童裝、嬰兒裝和運動裝方面整體表現出柔軟度。

Over the last 18 months, Gap brand has successfully transitioned its France, Italy and U.K. businesses to franchise partners as part of our partner to amplify strategy. And last week, we signed agreement to transition the Gap Greater China business to Baozun Inc., who will operate our end market site in stores under a franchise agreement, pending closing conditions and regulatory approval early next year. This strategy allows the Gap brand to operate its businesses through a more asset-light, cost-effective model and to benefit from the local expertise of our partners.

在過去的 18 個月裡，Gap 品牌已成功地將其法國、意大利和英國業務轉變為特許經營合作夥伴，作為我們合作夥伴擴大戰略的一部分。上週，我們簽署協議，將 Gap 大中華區業務轉讓給寶尊公司，寶尊公司將根據特許經營協議在門店運營我們的終端市場網站，等待關閉條件和明年年初的監管批准。這一戰略使 Gap 品牌能夠通過更輕資產、更具成本效益的模式運營其業務，並受益於我們合作夥伴的本地專業知識。

Moving to Banana Republic. We saw net sales growth of 8% compared to last year. September marked the 1-year anniversary of their brand relaunch. Shifting from a highly promotional workwear brand catering to everybody, Banana Republic spent the last year reimagining every element of the customer journey, with a special focus on quality products, differentiated experiences and relevant branding, positioning it as a premier lifestyle brand that enhances people's lives wherever they are. This accessible luxury differentiates Banana Republic from others at this price point and has brought in a more premium consumer. We hope that you'll take a look soon.

搬到香蕉共和國。與去年相比，我們的淨銷售額增長了 8%。九月標誌著他們品牌重新推出一周年。 Banana Republic 從一個迎合所有人的高度促銷的工作服品牌轉變，在去年重新構想了客戶旅程的每一個元素，特別關注優質產品、差異化體驗和相關品牌，將其定位為改善人們生活的首要生活方式品牌無論他們在哪裡。這種觸手可及的奢侈品讓 Banana Republic 在同價位的其他品牌中脫穎而出，並吸引了更多的高端消費者。我們希望您能盡快看一看。

During the quarter, Banana Republic experienced strong demand for suiting and its finer fabrics, including silk and cashmere. As postpandemic consumer preferences began to balance from the current trend of occasion and workwear, it will be important that Banana Republic continues to use its unique customer proposition as a lifestyle brand to differentiate itself for years to come.

在本季度，Banana Republic 對西裝及其精細麵料（包括絲綢和羊絨）的需求強勁。隨著大流行後消費者的偏好開始與當前的場合和工作服趨勢保持平衡，Banana Republic 繼續利用其獨特的客戶主張作為生活方式品牌在未來幾年內脫穎而出非常重要。

Finally on Athleta, Athleta delivered net sales growth of 6% compared to last year. While the women's activewear market has continued to be soft against the growth trajectory in the past few years, Athleta is holding share. As I mentioned last quarter, Athleta has made quick pivots to print and pattern as well as with their performance lifestyle product to better meet the customers' preferences. The new fall and holiday product is resonating well with the customer. And Athleta saw growth in both bottoms and tops, the largest categories in the women's apparel market and key to the brand's long-term strategy.

最後在 Athleta 上，Athleta 的淨銷售額與去年相比增長了 6%。雖然女性運動服市場在過去幾年的增長軌跡中持續疲軟，但 Athleta 佔據了市場份額。正如我在上個季度提到的那樣，Athleta 已經快速轉向印刷和圖案以及他們的高性能生活方式產品，以更好地滿足客戶的喜好。新的秋季和假日產品引起了客戶的共鳴。 Athleta 的上衣和上衣均有增長，這是女裝市場中最大的品類，也是該品牌長期戰略的關鍵。

Before I pass it off to Katrina to share more details on our financials, let me end with how I began on the state of the business. I have no doubt we have world-class brands that our customers love, and we drive value and scale through the synergy of our platform. But I'm also very clear that there is work to be done to rightsize our cost structure, streamline inventory and capitalize on our creative strengths to deliver the products and experience our customers deserve and employees and shareholders expect.

在我將其傳遞給卡特里娜颶風以分享有關我們財務的更多詳細信息之前，讓我以我如何開始業務狀況作為結尾。我毫不懷疑我們擁有客戶喜愛的世界級品牌，我們通過平台的協同作用推動價值和規模。但我也很清楚，我們還需要做一些工作來調整我們的成本結構、簡化庫存並利用我們的創造力優勢來提供客戶應得的產品和體驗以及員工和股東期望的產品和體驗。

Lastly, the Board remains active in its search for a permanent Chief Executive Officer. We're focused on a hands-on leader who can greatly increase our operating rigor, moving us past our deficiencies while, in parallel, enabling strong, creative direction and brand architecture as they develop the vision for how our portfolio should evolve over time to create a sustainable business model. This is a great company with strong assets and one that demands a leader who can hold to its values and ensure it remains fit and capable of scaling its omni-platform and market leadership.

最後，董事會仍積極尋找常任首席執行官。我們專注於一位親力親為的領導者，他可以極大地提高我們的運營嚴謹性，使我們克服我們的不足，同時，在他們制定我們的產品組合應如何隨著時間發展的願景時，實現強有力的、創造性的方向和品牌架構創建可持續的商業模式。這是一家擁有強大資產的偉大公司，需要一位能夠堅持其價值觀並確保其保持健康並能夠擴大其全平台和市場領導地位的領導者。

And with that, I'll 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. Let me start with our third quarter results. .

謝謝 Bobby，也謝謝大家今天下午加入我們。讓我從我們第三季度的業績開始。 .

Third quarter net sales of $4.04 billion increased 2% versus last year or 3% on a constant currency basis, driven by an improvement in trend relative to the first half of the year and in part due to the timing of franchise sales. Sales in the third quarter were 1% above prepandemic levels in 2019.

第三季度淨銷售額為 40.4 億美元，與去年同期相比增長 2%，或按固定匯率計算增長 3%，這是由於相對於上半年的趨勢有所改善，部分原因是特許經營銷售的時機。第三季度的銷售額比 2019 年大流行前的水平高出 1%。

Comparable sales were up 1% on top of negative 1% comp last year and a significant sequential improvement from the negative 10% comp last quarter, primarily as our assortment rebalancing efforts at Old Navy and Gap are starting to take hold and resonating with our customers as well as the benefit of an early holiday promotional event at Old Navy in October. Store sales increased 1% from the prior year. Year-to-date, we have closed a net total of 29 Gap and Banana Republic stores in North America and now anticipate closing approximately 30 additional stores this year, bringing us to close to 90% of our goal of closing 350 stores in North America by the end of fiscal 2023.

可比銷售額在去年負 1% 的基礎上增長了 1%，與上一季度負 10% 的基礎相比有了顯著的環比改善，這主要是因為我們在 Old Navy 和 Gap 的產品組合重新平衡工作開始發揮作用並引起我們客戶的共鳴以及 10 月份在老海軍 (Old Navy) 舉行的提早假期促銷活動的好處。門店銷售額比上年增長 1%。年初至今，我們在北美總共關閉了 29 家 Gap 和 Banana Republic 門店，現在預計今年將再關閉大約 30 家門店，這使我們接近關閉北美 350 家門店目標的 90%到 2023 財年末。

As we look to the remainder of fiscal 2022, we remain on track to open a net 30 Athleta stores and now expect to open a net 10 Old Navy stores this year. Online sales increased 5% versus last year and represented 39% of total sales in the quarter. Compared to prepandemic levels in 2019, online sales increased 55%.

展望 2022 財年的剩餘時間，我們仍有望淨開設 30 家 Athleta 門店，現在預計今年將淨開設 10 家 Old Navy 門店。在線銷售額與去年同期相比增長了 5%，佔本季度總銷售額的 39%。與 2019 年大流行前的水平相比，在線銷售額增長了 55%。

Turning to sales by brand. Starting with Old Navy, sales in the third quarter of $2.1 billion were up 2% versus last year and increased 10% relative to prepandemic levels in 2019. Old Navy comparable sales were down 1%, representing a sequential improvement from the negative 15% comp last quarter, driven by improvements in category mix and a more balanced assortment that now includes more of the product that our customers have been looking for as preferences have shifted from cozy casual to work occasion this year. However, we do believe that Old Navy did benefit from a slight pull-forward of sales from the fourth quarter into October as a result of its efforts to get out earlier than typical with its first holiday promotional event.

轉向按品牌銷售。從 Old Navy 開始，第三季度銷售額為 21 億美元，比去年增長 2%，比 2019 年大流行前水平增長 10%。Old Navy 可比銷售額下降 1%，較負 15% 的銷售額環比有所改善上個季度，由於品類組合的改進和更均衡的分類，現在包括更多我們的客戶一直在尋找的產品，因為今年的偏好已經從舒適的休閒轉向工作場合。然而，我們確實相信 Old Navy 確實從第四季度到 10 月的銷售小幅提前中受益，這是因為它在第一次假期促銷活動中努力比往常更早退出。

Gap brand global sales of $1.04 billion were flat versus last year, with global comparable sales up 4%, driven by improved category mix and a more balanced assortment, including more occasion-based [and vastly driven] categories as well as comp growth in Asia as a result of lapping the outsized negative impact of COVID-related restrictions last year. North America comparable sales were flat, a sequential improvement from negative 10% last quarter.

Gap 品牌全球銷售額為 10.4 億美元，與去年持平，全球可比銷售額增長 4%，這得益於品類組合的改善和更加均衡的分類，包括更多基於場合 [和廣泛驅動] 的品類以及亞洲的競爭增長由於去年 COVID 相關限制的巨大負面影響。北美可比銷售額持平，較上一季度的負 10% 有所改善。

Banana Republic sales grew 8% from last year to $517 million, with comparable sales up 10% as the brand continued to capitalize on the shift in consumer preference and the relaunch and elevated positioning of the brand last year.

Banana Republic 銷售額比去年增長 8% 至 5.17 億美元，可比銷售額增長 10%，因為該品牌繼續利用消費者偏好的轉變以及該品牌去年的重新推出和提升定位。

Athleta sales grew 6% to $340 million or an increase of 57% compared to 2019 prepandemic levels. Comparable sales improved sequentially to a flat comp in the third quarter compared to negative 8% comp last quarter and negative 7% in the first quarter.

Athleta 的銷售額增長了 6%，達到 3.4 億美元，與 2019 年大流行前的水平相比增長了 57%。第三季度可比銷售額環比持平，而上一季度為負 8%，第一季度為負 7%。

As we look to sales in the fourth quarter, we continue to take a prudent approach, given the uncertain macro and consumer environment as well as the competitive promotional environment. Also, as stated earlier, third quarter net sales benefited in part by the timing of franchise sales as well as the October holiday event at Old Navy.

考慮到不確定的宏觀和消費環境以及競爭激烈的促銷環境，在展望第四季度的銷售時，我們將繼續採取謹慎的態度。此外，如前所述，第三季度淨銷售額部分受益於特許經營銷售的時機以及 Old Navy 的 10 月假期活動。

In addition, Gap brands will be up against an approximate 1 point headwind as we anniversaried Yeezy Gap sales last year that will not be in the base this year. As a result of these factors and the continued uncertain environment, we anticipate that total company sales in the fourth quarter could be down mid-single digits year-over-year.

此外，Gap 品牌將面臨大約 1 點的逆風，因為我們去年慶祝了 Yeezy Gap 的銷售，今年不會出現這種情況。由於這些因素和持續不確定的環境，我們預計第四季度公司總銷售額可能同比下降中個位數。

Now to gross margin. Gross margin in the third quarter was 37.4%, deleveraging 470 basis points versus last year, inclusive of 130 basis points of deleverage related to a $53 million Yeezy Gap impairment charge. On an adjusted basis, gross margin was 38.7%, deleveraging 320 basis points versus last year as we continue to experience higher levels of markdowns in order to better position our inventory. Excluding the impairment related to Yeezy Gap, merch margin deleveraged 370 basis points as a result of higher discounting due to the previously communicated assortment imbalances as well as more aggressive focus on better positioning and clearing excess inventory as we exit fiscal 2022.

現在到毛利率。第三季度的毛利率為 37.4%，與去年相比去槓桿化了 470 個基點，其中包括與 5300 萬美元的 Yeezy Gap 減值費用相關的 130 個基點去槓桿化。在調整後的基礎上，毛利率為 38.7%，與去年相比去槓桿化 320 個基點，因為我們繼續經歷更高水平的降價以更好地定位我們的庫存。排除與 Yeezy Gap 相關的減值，商品利潤率去槓桿化了 370 個基點，這是由於先前傳達的分類失衡導致更高的折扣，以及我們在 2022 財年結束時更積極地關注更好的定位和清理過剩庫存。

Air freight contributed approximately 200 basis points of leverage as spend levels normalized during the quarter and we lapped the $70 million of incremental air freight expense last year. Equally offsetting this was approximately 200 basis points of deleverage due to inflationary and commodity cost-related headwinds.

隨著支出水平在本季度正常化，空運貢獻了大約 200 個基點的槓桿作用，我們去年增加了 7000 萬美元的空運費用。由於通貨膨脹和商品成本相關的不利因素，同樣抵消了大約 200 個基點的去槓桿化。

Turning to ROD. We continue to benefit from our fleet restructuring efforts through lower ROD costs, which were relatively in line with last year on a nominal basis. Excluding a Yeezy Gap impairment charge, ROD as a percentage of sales leveraged approximately 50 basis points. As we look to gross margin in the fourth quarter, we will lap last year's $245 million of incremental air freight, which is expected to add approximately 540 basis points to gross margin versus last year. We continue to anticipate an approximate 200 basis point inflationary and commodity cost headwinds and that ROD will likely be about flat as a percentage of sales versus last year.

轉向羅德。我們通過較低的 ROD 成本繼續受益於我們的船隊重組工作，這在名義上與去年相對一致。不包括 Yeezy Gap 減值費用，ROD 佔銷售額的百分比約為 50 個基點。當我們展望第四季度的毛利率時，我們將超越去年 2.45 億美元的增量空運，預計這將使毛利率比去年增加約 540 個基點。我們繼續預計大約 200 個基點的通貨膨脹和商品成本逆風，並且 ROD 佔銷售額的百分比可能與去年持平。

As we communicated last quarter, while we are taking actions to rightsize inventory in an increasingly promotional environment, we continue to expect significant variability in discount rate. As a reminder, gross margin in the second and third quarters were impacted by approximately 370 basis points of deleverage stemming from higher discounting.

正如我們上個季度所傳達的那樣，雖然我們正在採取行動在日益促銷的環境中調整庫存規模，但我們仍然預計折扣率會出現顯著變化。提醒一下，第二和第三季度的毛利率受到貼現率提高導致的去槓桿化約 370 個基點的影響。

Turning to SG&A. Reported SG&A was $1.3 billion or 32.8% of sales, leveraging 540 basis points from the prior year and includes an $83 million net benefit from the sale of our U.K. DC now that our European partnership model transition is complete. In addition, we recorded an immaterial amount of severance related to the overhead reductions taken in the third quarter. Adjusted SG&A, excluding the U.K. DC benefit, decreased 5% versus last year to $1.4 billion. As a percentage of sales, adjusted SG&A leveraged 280 basis points from the prior year's adjusted rate, primarily as a result of higher sales volumes, lower bonus accrual and lower marketing expense compared to last year.

轉向 SG&A。報告的 SG&A 為 13 億美元，佔銷售額的 32.8%，比上一年增加了 540 個基點，其中包括出售我們的英國 DC 帶來的 8300 萬美元淨收益，現在我們的歐洲合作夥伴關係模式轉型已經完成。此外，我們記錄了與第三季度管理費用削減相關的少量遣散費。調整後的 SG&A（不包括英國 DC 收益）比去年下降 5% 至 14 億美元。作為銷售額的百分比，調整後的 SG&A 比上年調整後的比率高出 280 個基點，這主要是由於與去年相比銷量增加、應計獎金減少和營銷費用減少。

As Bobby discussed, we've begun to take actions to rightsize our cost structure and improve profitability, focusing acutely on areas where we may have invested without commensurate returns in recent years as it relates to overhead, marketing and technology. We've already acted on approximately $250 million in annualized savings stemming from the reduction of approximately 500 existing and open corporate roles in the quarter, the renegotiation of advertising agency contracts and the reduction of technology operating costs and rationalization of digital investments.

正如 Bobby 所討論的那樣，我們已經開始採取行動調整我們的成本結構並提高盈利能力，重點關注近年來我們可能投資但沒有相應回報的領域，因為它與管理費用、營銷和技術相關。由於本季度減少了大約 500 個現有和開放的公司角色、廣告代理合同的重新談判以及技術運營成本的降低和數字投資的合理化，我們已經採取了大約 2.5 億美元的年度節省。

These actions will not have a material impact on SG&A as we look to the fourth quarter as a result of timing and severance offsets, in addition to headwinds in the quarter related to higher seasonal labor costs relative to last year. However, these actions will provide a significant offset to the higher incentive compensation and wage inflation headwinds we anticipate in fiscal 2023.

這些行動不會對我們展望第四季度的 SG&A 產生實質性影響，因為時間安排和遣散費抵消，以及與去年相比季節性勞動力成本較高相關的季度逆風。然而，這些行動將顯著抵消我們預計 2023 財年更高的激勵薪酬和工資通脹不利因素。

Reported operating income increased 22% to $186 million or 4.6% as a percentage of sales. Adjusted operating income decreased 8% from the prior year to $156 million. Adjusted operating margin of 3.9% was 40 basis points lower than last year's adjusted rate, reflecting the elevated promotional activity and higher inflationary costs, offset by the air freight leverage and the SG&A leverage relative to last year.

報告的營業收入增長 22% 至 1.86 億美元，佔銷售額的百分比為 4.6%。調整後營業收入較上年下降 8% 至 1.56 億美元。調整後營業利潤率為 3.9%，比去年調整後的利率低 40 個基點，反映出促銷活動增加和通脹成本上升，但被空運槓桿和 SG&A 槓桿與去年相比所抵消。

Moving to interest and taxes. We recognized $18 million in net interest expense, a $25 million savings versus last year due to the refinancing of our long-term debt last fall. During the quarter, we recorded an income tax benefit of $114 million on pretax income of $168 million, which resulted in a negative effective tax rate of 68%. This income tax benefit was related to the cumulative impact of a change in the estimated annual tax rate as a result of quarterly earnings variability. This year-to-date tax benefit is expected to reverse and result in at least $200 million of tax expense in the fourth quarter, offsetting the tax benefit on a fiscal year basis.

轉向利息和稅收。由於去年秋天對我們的長期債務進行再融資，我們確認了 1800 萬美元的淨利息支出，與去年相比節省了 2500 萬美元。本季度，我們在 1.68 億美元的稅前收入中記錄了 1.14 億美元的所得稅收益，這導致 68% 的負有效稅率。這種所得稅收益與由於季度收益可變性導致的估計年稅率變化的累積影響有關。這一今年迄今的稅收優惠預計將在第四季度逆轉並導致至少 2 億美元的稅收支出，從而抵消本財年的稅收優惠。

Reported EPS was $0.77. Adjusted EPS, which excludes an approximate $0.18 net benefit related to the U.K. DC sale and a $0.12 negative impact due to the Yeezy Gap impairment charge was $0.71. Adjusted EPS includes $0.33 related to the tax benefit in the quarter. Share count ended at 365 million.

報告的每股收益為 0.77 美元。調整後的每股收益為 0.71 美元，不包括與英國 DC 銷售相關的約 0.18 美元淨收益和因 Yeezy Gap 減值費用導致的 0.12 美元負面影響。調整後的每股收益包括與本季度稅收優惠相關的 0.33 美元。股票總數為 3.65 億股。

Turning to balance sheet and cash flow, starting with inventory. We are making initial progress on our plan to rightsize inventories and move to levels below last year by the end of the fiscal year. Our more aggressive markdowns combined with moderated holiday receipts drove a sequential improvement in the inventory growth during the quarter. Total ending inventory was up 12% versus last year, a sequential improvement from 37% inventory growth in the second quarter. The 12% year-over-year growth in the third quarter includes a 13 percentage point benefit related to in-transit as we lapped last year's supply chain challenges. Nine percentage points of growth related to pack and hold, and close to 2/3 of the remaining increase is attributable to elevated levels of slow-turning basics and the remainder seasonal products.

轉向資產負債表和現金流，從存貨開始。我們的庫存調整計劃正在取得初步進展，並在本財年末降至低於去年的水平。我們更積極的降價促銷加上適度的假期收入推動了本季度庫存增長的環比改善。期末總庫存較去年同期增長 12%，較第二季度 37% 的庫存增長有所改善。第三季度 12% 的同比增長包括與運輸相關的 13 個百分點的收益，因為我們應對了去年的供應鏈挑戰。 9 個百分點的增長與包裝和保持有關，而剩餘增長的近 2/3 歸因於緩慢周轉的基本產品和其餘季節性產品的水平提高。

Compared to prepandemic levels in the third quarter of 2019, ending inventory was up 12%. While an improvement in trend versus the first half as we expected, we are entering the fourth quarter with overall elevated inventory levels and some carryover of fall product despite the increased markdown activity in the third quarter. Although we did take action earlier this year to reduce holiday receipts, we continue to anticipate a competitive promotional environment, given the increased inventory levels industry-wide and plan to continue to take aggressive action to clear inventory in order to enter fiscal 2023 better positioned.

與 2019 年第三季度大流行前的水平相比，期末庫存增長了 12%。儘管如我們預期的那樣趨勢與上半年相比有所改善，但儘管第三季度降價活動有所增加，但我們進入第四季度時整體庫存水平有所提高，秋季產品也有一些結轉。儘管我們在今年早些時候確實採取了減少假期收入的行動，但鑑於全行業庫存水平上升，我們繼續預計競爭激烈的促銷環境，併計劃繼續採取積極行動清理庫存，以便更好地進入 2023 財年。

As we look to fiscal 2023, we continue to moderate buys and expect to begin to lean into our responsive levers this spring, which will provide further flexibility to better align inventory levels with demand trends next year. In addition, we are releasing some of last year's holiday pack and hold inventory, and we'll continue to integrate our pack and hold inventory into future assortments. As you know, while pack and hold is 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.

展望 2023 財年，我們將繼續適度購買，並預計今年春季開始採用我們的響應槓桿，這將提供更大的靈活性，以便更好地使庫存水平與明年的需求趨勢保持一致。此外，我們還發布了一些去年的假日打包存貨，我們將繼續將我們的打包存貨整合到未來的分類中。如您所知，雖然打包和持有是短期內使用現金，但我們能夠在短期內優化我們的利潤率，並在明年獲得營運資金收益，因為我們購買較低的收據並通過打包和持有庫存進行銷售。

Quarter-end cash and equivalents were $679 million. Net cash from operating activities was an inflow of $95 million in the quarter, driven by a moderation in working capital usage as a result of our progress on improving inventory levels and composition coupled with our receipt cuts and leaner buys. As we stated last quarter, we anticipated beginning to see more normalized cash flow in the back half of the year and we are seeing that play out.

季末現金及等價物為 6.79 億美元。本季度來自經營活動的淨現金流入 9500 萬美元，這是由於我們在改善庫存水平和構成方面取得進展，加上我們減少收貨和精簡採購，從而導致營運資金使用放緩。正如我們上個季度所說，我們預計在今年下半年開始看到更多正常化的現金流，我們正在看到這一點。

We continue to focus on fortifying our balance sheet and cash positions. As discussed last quarter, we've cut or deferred some capital spending and reduced the number of Old Navy stores slated for back half of the year and continue to expect CapEx of approximately $650 million for the year. We remain committed to delivering an attractive quarterly dividend as a core component of total shareholder returns. During the quarter, we paid a dividend of $0.15 per share. And on November 8, our Board approved a $0.15 dividend for the fourth quarter of fiscal 2022.

我們繼續專注於加強我們的資產負債表和現金狀況。正如上個季度所討論的那樣，我們已經削減或推遲了一些資本支出，並減少了今年下半年的 Old Navy 門店數量，並繼續預計今年的資本支出約為 6.5 億美元。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。本季度，我們支付了每股 0.15 美元的股息。 11 月 8 日，我們的董事會批准了 2022 財年第四季度的 0.15 美元股息。

We repurchased 1.2 million shares early in the quarter. As discussed last quarter, we have completed our goal of offsetting dilution in fiscal 2022 and do not anticipate repurchasing additional shares this year. We continue to have $476 million available under our current share repurchase program authorization.

我們在本季度初回購了 120 萬股股票。正如上個季度所討論的那樣，我們已經完成了 2022 財年抵消稀釋的目標，並且預計今年不會回購更多股份。根據我們當前的股票回購計劃授權，我們繼續擁有 4.76 億美元的可用資金。

Before closing, we understand that there has been increased focus on freight- and commodity-related tailwinds in fiscal 2023 across the industry as we've all begun to see favorability in rates. As a reminder, we have experienced a more modest freight headwind throughout fiscal 2022 as compared to many other retailers as a result of our long-term ocean contracts, which were locked in at favorable rates. These negotiated rates remain below current ocean container rates.

在結束之前，我們了解到整個行業在 2023 財年更加關注與貨運和商品相關的順風，因為我們都開始看到利率的優勢。提醒一下，由於我們以優惠價格鎖定的長期海運合同，與許多其他零售商相比，我們在整個 2022 財年經歷了更溫和的貨運逆風。這些協商的費率仍然低於當前的海運集裝箱費率。

As a result, as ocean container rates come down, this will not represent a significant tailwind to our margin as it may for other retailers as we look to fiscal 2023. In addition, as it relates to cotton and commodity costs, we have already made purchases through the first half of fiscal 2023, and therefore, will not begin to benefit from advantaged pricing until we enter the back half of next year.

因此，隨著海運集裝箱費率的下降，這不會像我們展望 2023 財年的其他零售商那樣對我們的利潤率產生重大影響。此外，由於涉及棉花和商品成本，我們已經取得了到 2023 財年上半年的採購，因此，在我們進入明年下半年之前，不會開始受益於優惠定價。

In closing, while we continue to navigate an uncertain consumer environment and 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 sustainable, profitable growth and delivering value to our shareholders over the long term.

最後，在我們繼續應對不確定的消費環境和促銷競爭環境的同時，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，使 Gap Inc. 重新走上可持續、盈利增長的道路，長期為我們的股東創造價值。

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

有了這個，我們將打開問題熱線。操作員？

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

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

Katrina, thanks for the gross margin puts and takes. I just had a question about the promotional piece of that. You mentioned the 370 in the past 2 quarters. Just given where your inventories are, where your receipts are in the macro environment, would you expect the promotional pressure to be in line with that or better? Maybe if you could give us some guide rail there.

卡特里娜颶風，感謝您的毛利率。我只是對其中的宣傳片有疑問。你在過去兩個季度提到了 370。僅考慮到您的庫存在哪裡，您的收入在宏觀環境中的位置，您是否期望促銷壓力與此一致或更好？也許你可以給我們一些導軌。

Yes, sure, Lorraine, and thanks for the question. I think that's the real open part of the margin that we sort of left for you to model, giving you guys the known things, which are the air freight benefit in the quarter for fourth quarter of 540 basis points, partially offset by the inflationary pressure of 200. We're prepared to keep promoting to get ourselves clean of both fall and holiday inventories as we enter into next year.

是的，當然，Lorraine，謝謝你提出這個問題。我認為這是我們留給你們建模的利潤率的真正開放部分，為你們提供已知的東西，即第四季度空運收益 540 個基點，部分被通脹壓力抵消200。當我們進入明年時，我們準備繼續促進得到我們自己清理秋天和假日存貨。

And so there's a wide range of possibilities as to what that discount amount could be. I think if you see Q2 at 370 and Q3 at 370, it's rational to think that's a possibility. But we're not guiding to that number, given there's such a wide range of possible outcomes. So we'll let you guys take a look at what you think that will look like, knowing that we will be committed to getting our inventories cleaned up so that we don't continue to carry the excess inventory into next year.

因此，折扣金額有多種可能性。我認為，如果您看到 Q2 處於 370 和 Q3 處於 370，那麼認為這是一種可能性是合理的。但鑑於可能的結果範圍如此之廣，我們並沒有指導這個數字。所以我們會讓你們看看你們認為會是什麼樣子，知道我們將致力於清理我們的庫存，這樣我們就不會繼續將過剩庫存帶到明年。

And then related to that, as you look into the first half of next year, what proportion of your inventory will be -- will take advantage of some of the responsive capabilities?

然後與此相關的是，當你展望明年上半年時，你的庫存比例將是多少——將利用一些響應能力？

We haven't said and we'll certainly consider if we'll say more on a future call. But I think what's important to know about responsive, as we've said, is that it can take many different formats. So whether it's getting our basics loaded on to venture managed inventory, which allows us to take advantage of their replenishment capabilities or whether it's leaving overall inventory open to chase [into CC] or just give us an ability to range up or range down total inventory based on demand, it really is a capability that we're looking forward to having back.

我們還沒有說，我們肯定會考慮是否會在未來的電話會議上說更多。但我認為了解響應式很重要，正如我們所說的，它可以採用多種不同的格式。因此，無論是將我們的基礎知識加載到風險管理的庫存中，這使我們能夠利用他們的補貨能力，還是讓整體庫存開放以追逐 [進入 CC]，或者只是讓我們能夠提高或降低總庫存基於需求，這確實是我們期待恢復的能力。

With the manufacturing disruption that we saw starting with India closing and then Vietnam closing and many of the other jurisdictions closing down during COVID, we really lost those capabilities, which caused us to have to lean too far forward into total inventory as well as category inventory. And so having those levers back will give us so much more flexibility. But we haven't said -- it's different by brand, and certainly, we're happy to talk more about it as we get closer in, if appropriate.

隨著我們看到的製造中斷，首先是印度關閉，然後是越南關閉，然後是許多其他司法管轄區在 COVID 期間關閉，我們真的失去了這些能力，這導致我們不得不過度依賴總庫存和類別庫存.因此，恢復這些槓桿將為我們提供更大的靈活性。但我們還沒有說 - 它因品牌而異，當然，如果合適的話，我們很樂意在我們接近時更多地談論它。

Your next question is from the line of Bob Drbul with Guggenheim.

你的下一個問題來自古根海姆的 Bob Drbul。

I guess the first question I have is on Old Navy. Can you maybe just talk to some of the operational improvements? And where do you think any of the early reads are on Old Navy under Haio as he's taken over?

我想我的第一個問題是關於 Old Navy。您能否談談一些運營改進？在 Haio 接管後，您認為 Old Navy 的早期讀物在哪裡？

And then, Bobby, I'm just curious if are you thinking of staying on as CEO, given the delay in naming a permanent CEO?

然後，Bobby，我很好奇你是否考慮繼續擔任 CEO，因為延遲任命了一位常任 CEO？

Maybe I'll start -- or do you want to go ahead, Bobby? Go ahead.

也許我會開始——或者你想繼續嗎，Bobby？前進。

No. Go ahead. I can't wait to find my answer on that last one.

沒有，繼續。我迫不及待地想在最後一個問題上找到答案。

I'll go ahead and start with Old Navy. I think we're really pleased to see playing out at Old Navy what we have been talking about, which is sequentially improving the BODEQUALITY inventory, which has finally been cleaned up and more rationalized in stores back towards what is an appropriate level of inventory for that customer, still having that inventory fully available online to serve that customer, but really getting that markdown inventory out of stores.

我先從 Old Navy 開始。我認為我們真的很高興看到我們一直在談論的事情在 Old Navy 上演，它正在逐步改善 BODEQUALITY 庫存，最終清理乾淨並在商店中更加合理化，回到適當的庫存水平那個客戶，仍然可以在線完全使用該庫存來為該客戶提供服務，但實際上是將降價庫存從商店中取出。

Then on top of that, being able to finally pivot the inventories towards the categories that are selling, and then on top of that, starting to really get back to pulling down inventory more in line with demand. And all of that sequentially has started to show real improvement.

然後最重要的是，能夠最終將庫存轉向銷售的類別，然後最重要的是，開始真正回到更符合需求的拉低庫存。所有這一切都開始顯示出真正的改善。

I know, Bobby, you also have a view on some of the executional work, so I'll let you talk to that.

我知道，鮑比，你也對一些執行工作有看法，所以我會讓你談談。

Yes. Look, I think looking at Haio, although he's only been in just a little over 100 days, he's taken decisive steps, particularly around the store inventory. If you get in our stores, right now, they're full. We brought a lot of that inventory forward but it's being merchandised well. And his focus has been very, very, very strong that we don't lose sight of good merchandising, so we've got good product. It is resonating with the customer, and we should never get confused even in the excess of inventory to not merchandise that well.

是的。看，我認為看看 Haio，雖然他才剛剛 100 多天，但他採取了果斷的步驟，尤其是在商店庫存方面。如果你進入我們的商店，現在，它們已經滿了。我們帶來了很多庫存，但銷售情況很好。他的注意力非常、非常、非常強烈，我們不會忽視良好的商品銷售，所以我們有很好的產品。它引起了客戶的共鳴，即使在庫存過剩的情況下，我們也不應該混淆商品不是那麼好。

So that as a customer comes in, right now, we've really tightened up under his leadership, particularly in Old Navy, but it's across the other brands to really know when the customer is in. She knows that -- we know she's there from the time she comes in until she leaves. So the engagement with the customers is really high. And being able to, again, capitalize on some of the current trends.

因此，當客戶進來時，現在，我們在他的領導下確實收緊了，特別是在 Old Navy 中，但其他品牌才能真正知道客戶何時進來。她知道 - 我們知道她在那裡從她進來到她離開。所以與客戶的互動非常高。並且能夠再次利用當前的一些趨勢。

Old Navy, clearly, even in this given assortment, we serve a wide range of customer. We commented on it during our opening remarks that even with the lower-income customer, we're seeing some transition there, but that's just meaning that they're really moving to opening price point and denim a little bit more. But on the other side, we've got big strengths that are showing up in categories like back-to-office and even in just some of our basic fashion where she's really responding well.

Old Navy，顯然，即使在這個給定的分類中，我們也為廣泛的客戶提供服務。我們在開場白中評論說，即使是低收入客戶，我們也看到了一些轉變，但這只是意味著他們真的在轉向開盤價和牛仔布。但另一方面，我們有很大的優勢，這些優勢體現在像回到辦公室這樣的類別，甚至在我們的一些基本時尚方面，她的反應真的很好。

So Haio's strengths right now through the team, and I'd say right now we're really pleased with what we're seeing happen, is really getting the inventory rightsized, cleaned up. And operationally, we're executing to get the maximum conversion and then driving the UPT up, knowing as soon as we can get her committed to the checkout, we have a greater opportunity to see that additional transactions hit the basket and that's kind of the work of the work. And right now, we're pretty pleased with what we're seeing, and again, a lot more to come.

因此，Haio 現在通過團隊的優勢，我現在要說的是，我們對所看到的情況感到非常滿意，這確實使庫存合理化，清理了。在操作上，我們正在執行以獲得最大轉化率，然後推動 UPT 上升，因為我們知道一旦我們可以讓她承諾結賬，我們就有更大的機會看到更多交易進入購物籃，這就是工作的工作。而現在，我們對我們所看到的非常滿意，而且還會有更多。

I will address your second question and I'm flattered, I guess, that you would ask, but there's really only 2 messages that you really should hear. I mean you've heard the really strong focus around operational improvements, getting things right, knowing where we've got it wrong and stepping up to those things. So the message you really have to hang on to there is we're not in timeout. And it's very clear to me what the Board's asked me to do in terms of stepping in and assessing where we are, capitalizing on our strengths, improving and responding quickly to make things move in the direction we want them to go.

我將回答你的第二個問題，我想我很榮幸你會問，但實際上你應該聽到的只有兩條消息。我的意思是你已經聽說過對運營改進的真正強烈關注，把事情做好，知道我們哪裡做錯了，並加緊處理這些事情。所以你真正需要堅持的信息是我們沒有超時。我非常清楚董事會要求我在介入和評估我們所處的位置、利用我們的優勢、改進和快速響應以使事情朝著我們希望的方向發展方面做些什麼。

But the Board is very, very diligent around getting a CEO in place and so we're very active at that. But the Board's also very determined to make sure we take the time to get it right. And as I said in my closing remarks, not just casually. But this is a great company. My confidence has gone way up being inside, that the strength of these brands, they are iconic. We're seeing right now in our results, customers are responding. That when we get it right, they -- bring exactly on what they trust us for. And we will find the right leader and -- that can do the kind of job that I described relative to being strong operationally and getting us past some of the deficiencies, whether they're costs, other execution, rightsizing.

但是董事會非常非常勤奮地安排 CEO 到位，因此我們在這方面非常積極。但董事會也下定決心要確保我們花時間把它做好。正如我在結束語中所說的，不是隨便的。但這是一家偉大的公司。我的信心在內部得到了提升，這些品牌的實力，它們是標誌性的。我們現在在我們的結果中看到，客戶正在響應。當我們做對時，他們 - 帶來他們信任我們的東西。我們將找到合適的領導者，並且 - 可以完成我所描述的那種與強大的運營相關的工作，並讓我們克服一些缺陷，無論是成本、其他執行、合理調整。

But more than anything, also being able to double down on what you know and expect and we expect of ourselves, and that is returning ourselves to really, really strong, creative strengths, brand architecture because I believe in the portfolio strategy. And so I'm not sure exactly when we will finish there, but we will land a CEO for the future of this company.

但最重要的是，還能夠加倍提高你對自己的了解和期望，以及我們對自己的期望，這讓我們自己恢復到真正、非常強大、創造性的優勢，品牌架構，因為我相信投資組合戰略。所以我不確定我們什麼時候能完成，但我們將為這家公司的未來任命一位首席執行官。

Your next question comes from the line of Alex Straton with Morgan Stanley.

你的下一個問題來自摩根士丹利的 Alex Straton。

Congrats on a good quarter. I just wanted to drill down on the traffic or sales trends that you saw throughout the quarter. Did things -- how did things kind of develop by month? We have been hearing some October and November weakness at select retailers. Just wondering if you saw a similar exit rate as they did.

祝賀一個好的季度。我只是想深入了解您在整個季度看到的流量或銷售趨勢。事情——事情是如何按月發展的？我們一直聽到部分零售商在 10 月和 11 月表現疲軟。只是想知道您是否看到了與他們相似的退出率。

Yes. Thanks, Alex. I think in line with others' commentary, we did see strong volume in October slow a bit in the end and a little bit of a slow start to November. But that trend is fully contemplated in the outlook that we described today and a little bit of why we remain prudent on the outlook for fourth quarter revenue. But that said, it's early days and we know that some of that was weather and potentially some other disruption happening out there. So we'll see what plays out. But certainly, we did see a little bit of that similar trend.

是的。謝謝，亞歷克斯。我認為與其他人的評論一致，我們確實看到 10 月份的強勁成交量在年底有所放緩，而 11 月份開始有所放緩。但在我們今天描述的前景中充分考慮了這一趨勢，這也是我們對第四季度收入前景保持謹慎的一點原因。但話雖如此，現在還為時過早，我們知道其中一些是天氣原因，可能還有其他一些干擾正在發生。所以我們將看看結果如何。但可以肯定的是，我們確實看到了一點類似的趨勢。

Great, that's helpful. Maybe I could also describe your outlook on holiday. I know last year, customers kind of had a call to action to shop earlier, but it seems like maybe shopping could be later. And then our surveys are also just saying that customers could be waiting for deals. Maybe what are your thoughts on that as we head into the holiday selling period?

太好了，這很有幫助。也許我還可以描述一下您對假期的看法。我知道去年，顧客有點呼籲採取行動早點購物，但似乎購物可能會晚一些。然後我們的調查也只是說客戶可能正在等待交易。當我們進入假日銷售期時，您對此有何看法？

Yes, I mean, I've heard those various points of view as well. And so we're just prepared to compete when the customer is ready to shop. And so we know we have to get out ahead of ensuring that we're early enough, that we're promoting at a time when she's willing to buy, and we're not waiting too late to clear the merchandise. And on the flip side, if they're not going to shop until later, we don't want to be too far out ahead of it.

是的，我的意思是，我也聽到了那些不同的觀點。因此，當客戶準備購物時，我們就做好了競爭的準備。所以我們知道我們必須提前出去確保我們足夠早，我們在她願意購買的時候進行促銷，我們不會等得太晚才清空商品。另一方面，如果他們要等到晚些時候才去購物，我們不想提前太久。

So we're remaining vigilant in our view on what's happening competitively as well as taking a prudent approach to understanding where our inventory movement is and where our customer's shopping. So I guess all to say that we've seen -- we have heard a lot of those dynamics, and we're just watching it carefully day-to-day.

因此，我們對競爭中發生的事情保持警惕，並採取謹慎的方法來了解我們的庫存流動情況以及客戶的購物地點。所以我想所有人都說我們已經看到 - 我們已經聽到了很多這樣的動態，我們只是每天仔細觀察它。

Your next question is from the line of Paul Lejuez with Citi.

你的下一個問題來自花旗銀行的 Paul Lejuez。

You mentioned seeing commodity costs higher in the first half of '23. Any quantification of that relative to what you've been seeing as a drag in the second half of '22? And then also, you've pulled back this year a bit on store openings. Curious how you're thinking about store growth for next year, obviously, specifically Athleta and Old Navy.

你提到在 23 年上半年看到商品成本更高。相對於你在 22 年下半年看到的拖累，對此有何量化？此外，您今年在開店方面也有所縮減。很想知道您如何考慮明年的商店增長，顯然，特別是 Athleta 和 Old Navy。

Sure. So Paul, we'll provide a lot more color on 2023 as we get closer to the year. What we wanted to make sure that you guys understood is we do see the cotton movement happening. Of course, it takes a while for the raw materials to move through the full average unit cost of a garment. And so more to come on when we get to see the timing of the benefit on cotton start to flow through our COGS.

當然。所以 Paul，隨著 2023 年的臨近，我們將提供更多顏色。我們想確保你們理解的是我們確實看到了棉花運動的發生。當然，原材料需要一段時間才能通過一件衣服的全部平均單位成本。當我們看到棉花收益的時機開始流經我們的 COGS 時，還有更多的事情要做。

I think importantly, we've bought the first half, so any raw material movement won't be flowing through COGS materially in Q1 and Q2. But certainly, we'll be focused on figuring out how much of that we can get through our back half average unit cost. So more to come on that dynamic. We just wanted to sort of give early thoughts on it.

我認為重要的是，我們已經購買了上半年，因此任何原材料運動都不會在第一季度和第二季度實質性地通過 COGS 流動。但可以肯定的是，我們的重點是弄清楚我們可以通過後半平均單位成本獲得多少。所以更多的是關於這種動態。我們只是想就此給出早期的想法。

And then, sorry, your second question?

然後，抱歉，你的第二個問題？

Early thoughts on openings for next year?

對明年開放的早期想法？

Yes. So Athleta, we're going to open about 30 stores, and we feel good about that pace of growth. I think that's a reasonable pace of growth, and so you could likely expect that. For Old Navy, the 10 stores that we're opening this year was a pullback. That was partially based on, given the performance, really wanting to make sure we were staying prudent on those store openings. We did have some slip into next year, but likely, we'll have a more moderated pace on Old Navy store openings as we move forward. But again, more to come as we fully land that pipeline of stores.

是的。所以 Athleta，我們將開設大約 30 家商店，我們對這種增長速度感到滿意。我認為這是一個合理的增長速度，所以你很可能會這樣。對於 Old Navy 而言，我們今年新開的 10 家門店是一次撤退。考慮到業績，這部分是基於我們真的想確保我們在開店時保持謹慎。明年我們確實有一些下滑，但隨著我們前進，我們在老海軍商店開業方面的步伐可能會更加緩和。但同樣，隨著我們完全登陸商店管道，還會有更多。

Your next question comes from the line of Mark Altschwager with Baird.

你的下一個問題來自 Mark Altschwager 與 Baird 的對話。

So just standing back on margin, EBIT margin, a lot of moving pieces this year, a lot of temporary factors as you kind of rightsize inventory and prepare for some additional sort of clearance and promotions on the holiday. But as we look forward to next year and your path to clearance, you annualized some of these SG&A savings that you're seeing. Is there a baseline level of EBIT margin that you think the business can achieve sort of regardless of kind of what the revenue backdrop might look like?

因此，只是站在利潤率、息稅前利潤率、今年的許多移動件、許多臨時因素上，因為您正在調整庫存規模，並準備在假期進行一些額外的清倉和促銷活動。但是，當我們期待明年和您的清關之路時，您將看到的一些 SG&A 節省按年計算。無論收入背景如何，您是否認為企業可以達到某種程度的息稅前利潤率基準水平？

Yes, I mean, there are so many moving pieces, Mark, and I think that we haven't issued any forward-looking guidance on anything beyond sort of where we are now, so more to come on that. I think that overall, as we think about the future, what we have said is a little bit of what you've heard over the last couple of quarters, which is we feel good about the store closure activity that's really given us a lot of benefit in ROD leverage. We feel good about the work that the Gap team has been doing about transitioning many of our international markets to partners, which will help us maybe with lower revenue but fewer losses of operating income. And we are committed to really deeply staring at the operating costs that we've added into the business in the form of marketing overhead and technology. .

是的，我的意思是，有太多動人的事情，馬克，我認為我們還沒有發布任何超出我們現在所處位置的任何前瞻性指導，所以會有更多的事情發生。我認為總的來說，當我們考慮未來時，我們所說的是你在過去幾個季度聽到的一些內容，我們對關閉商店的活動感覺良好，這確實給了我們很多受益於 ROD 槓桿。我們對 Gap 團隊在將我們的許多國際市場轉移到合作夥伴方面所做的工作感到滿意，這可能會幫助我們降低收入，但減少營業收入損失。我們致力於真正深入地關注我們以營銷管理費用和技術的形式添加到業務中的運營成本。 .

That said, we are in still a very inflationary environment, and so there's headwinds on labor costs and headwinds in other inflation that we're still working through. So lots of moving pieces and we'll give you more of an outlook into that as we put 2023 together. But certainly, we're focused on the long-term goal of getting the company back to a better operating margin with profitable sales growth.

也就是說，我們仍處於通貨膨脹率很高的環境中，因此勞動力成本和我們仍在努力克服的其他通貨膨脹方面存在不利因素。如此多的動人片段，當我們將 2023 年放在一起時，我們會給你更多的展望。但可以肯定的是，我們專注於使公司恢復到更好的營業利潤率和盈利銷售增長的長期目標。

Your next question is from the line of Brooke Roach with Goldman Sachs.

你的下一個問題來自高盛的布魯克羅奇。

I wanted to narrow in on Athleta, which had a nice comp improvement this quarter on both a sequential and a 3-year stack. Can you reflect a little bit more on the drivers of the sequential improvement? And do you think that the 3-year stack trend is sustainable from here on out? If that is the case, what is the segment profit margin that you expect for this brand ending the year? And how does that compare with your view of long-term segment profit operating margins for the business?

我想縮小 Athleta 的範圍，它本季度在連續和 3 年堆棧上都有很好的改進。您能否更多地反思連續改進的驅動因素？您認為從現在開始 3 年的堆棧趨勢是否可持續？如果是這樣，您預計該品牌年底的分部利潤率是多少？這與您對業務的長期部門利潤率的看法相比如何？

Yes, Brooke, I mean, we were pleased to see Athleta return to the positive 6% growth flat comp, which was a meaningful improvement. NPD came out with the industry growth yesterday for the quarter, and the women's active market is down, negative 7%. And so Athleta's growth in the quarter does show that they are taking market share even as that active market is slowing a bit after a few years of significant growth.

是的，布魯克，我的意思是，我們很高興看到 Athleta 恢復到 6% 的正增長持平，這是一個有意義的進步。 NPD 昨天公佈了該季度的行業增長，而女性運動市場則下降了 7%。因此，Athleta 在本季度的增長確實表明他們正在搶占市場份額，即使這個活躍的市場在經歷了幾年的顯著增長後正在放緩。

So we do feel like we're starting to see a little bit of rebound in some of the performance product as well as, as Bobby said in his prepared remarks, really winning on a lot of the lifestyle products that they've been able to compete well in as they've been able to balance sort of performance and lifestyle as a lifestyle active brand.

所以我們確實覺得我們開始看到一些性能產品出現了一點反彈，正如 Bobby 在他準備好的發言中所說的那樣，真正贏得了他們能夠做到的許多生活方式產品作為一個活躍的生活方式品牌，他們能夠在某種程度上平衡性能和生活方式，因此在競爭中表現出色。

As far as the 3-year stack going forward, I guess we'll see, but certainly, our aspiration is to continue to be driving profitable sales growth at Athleta. We don't report on the operating margin segment, but certainly appreciate the question. And so with that, we'll probably not comment on that at this point.

至於未來 3 年的堆棧，我想我們會看到，但可以肯定的是，我們的願望是繼續推動 Athleta 的盈利銷售增長。我們不報告營業利潤率部分，但當然很欣賞這個問題。因此，我們現在可能不會對此發表評論。

Okay. One more question, if I may. As you contemplate the mid-single-digit sales decline that you forecasted for 4Q, can you help us a little bit with any quantification that you might be able to share about the franchise impact and the holiday event pull-forward impact within that?

好的。還有一個問題，如果可以的話。當您考慮到您預測的第 4 季度中等個位數的銷售下滑時，您能否幫助我們分享一下您可能能夠分享的關於特許經營影響和假日活動提前影響的任何量化數據？

Yes, sure. We haven't quantified that, Brooke. And so I think it's just fair to say that the dynamics are such that we did say it was a slight impact from the October promotion in Old Navy. And then the franchise sales timing is a modest impact. Gap had the Yeezy impact. It's a point to them. It's probably less -- more modest than that for Gap Inc., so sort of all those things together.

是的，當然。我們還沒有量化，布魯克。因此，我認為公平地說，我們確實說過，這是老海軍 10 月份促銷活動的輕微影響。然後特許經營銷售時間的影響不大。 Gap 產生了 Yeezy 的影響。這對他們來說很重要。它可能比 Gap Inc. 更少——更溫和，所以將所有這些東西放在一起。

And then on top of that, as we said, we're really just trying to remain prudent about the consumer and the environment heading into holiday, so that we do allow ourselves the ability to sell through the product as we need to as we enter into next year. So hopefully, all those drivers are helpful, but I don't think it's any one single driver, it's really everything together that's adding up to that outlook.

然後最重要的是，正如我們所說，我們真的只是在努力對進入假期的消費者和環境保持謹慎，這樣我們才能在進入假期時根據需要銷售產品進入明年。所以希望所有這些驅動因素都有幫助，但我不認為這是任何一個單一的驅動因素，它實際上是所有因素共同構成了這一前景。

Your next question is from the line of Oliver Chen with Cowen.

你的下一個問題來自 Oliver Chen 與 Cowen 的對話。

Regarding the carryover fall product, what's the nature of the product that you're -- you still need to work through at this current time? And then as we zoom out a little bit on Old Navy, what's your hypothesis for a few things that need to be done strategically just to drive more consistent comps and margins? You mentioned balancing the assortment as one, and I'm sure speed and agility and fabric platforming is an opportunity, too.

關於結轉秋季產品，您目前仍需要完成的產品的性質是什麼？然後，當我們稍微縮小 Old Navy 時，您對需要戰略性地完成的一些事情的假設是什麼，以推動更一致的補償和利潤率？你提到平衡分類作為一個，我相信速度和敏捷性和織物平台也是一個機會。

Yes, sure, Oliver. I'll take the content and then maybe, Bobby, I don't know if you want to speak to the Old Navy piece.

是的，當然，奧利弗。我會拿走內容，然後也許，Bobby，我不知道你是否想和 Old Navy 談談。

On the content side, it's different by brand. But fundamentally, as we think about summer inventory that carried into fall, that was a margin drain in the second quarter -- or in the third quarter, and then we had fall inventory we were clearing that now is carrying into holiday. We do feel like with holiday buys being down, we will stop that from continuing, but we need to focus on the fall product that's carried over.

在內容方面，它因品牌而異。但從根本上說，當我們考慮到秋季的夏季庫存時，第二季度或第三季度的利潤率下降，然後我們清理了秋季庫存，現在正在進入假期。我們確實覺得假期購買量下降了，我們會阻止這種情況繼續下去，但我們需要專注於結轉的秋季產品。

It's really various things. There's nothing -- no pockets in particular. It's really more about the overall inventory being higher than the relative demand and our ability to actually clear through that, given sort of the customer dynamics. So we're focused on clearing through that now, though, and that is part of why we do believe the margins will be pressured in fourth quarter. And again, we have a lot less holidays so we look to have that cycle stop as we head into first quarter of next year.

這真的是各種各樣的事情。什麼都沒有——特別是沒有口袋。這實際上更多地是關於整體庫存高於相對需求，以及我們在考慮到客戶動態的情況下實際清除庫存的能力。所以我們現在專注於清理，這就是為什麼我們相信第四季度的利潤率將受到壓力的部分原因。再一次，我們的假期少了很多，所以我們希望在進入明年第一季度時停止這種循環。

So I don't know, Bobby, if you want to comment on Old Navy.

所以我不知道，Bobby，你是否想對 Old Navy 發表評論。

Well, I mean, I think you put your finger on those things that you would expect maybe is and challenging us, and we clearly let an assortment get broader than it really needs to be. And in some cases, again, we're missing a great deal of depth. So the course correction there is really just getting back to the fundamentals and putting the right lens on inventory. So there's a much, much, much greater focus looking at sell-through expectations, more of a life cycle mindset around the product so that we're continuing to keep the freshness and the newness there.

好吧，我的意思是，我認為你把你的手指放在那些你可能期望的東西上並挑戰我們，我們顯然讓一個分類變得比它真正需要的更廣泛。在某些情況下，我們再次錯過了很多深度。因此，那裡的路線修正實際上只是回到基本面並將正確的鏡頭放在庫存上。因此，我們更加關註銷售預期，更多關注產品的生命週期心態，以便我們繼續保持新鮮感和新穎性。

As I referred to Haio, one of the things that he's done through the team and again, really happy right now with the things that are taking place is calls with both our mills and vendor partners where we know that we've got an opportunity for greater collaboration. Same responsive capabilities that right now have been helping Gap brand, Old Navy will be able to leverage on. So -- and there's a lot more creative, I think, insight from the consumer and being able to deliver on it.

正如我提到的 Haio，他通過團隊所做的事情之一，現在對正在發生的事情感到非常高興的是與我們的工廠和供應商合作夥伴的電話，我們知道我們有機會更大的合作。現在一直在幫助 Gap 品牌的相同響應能力，Old Navy 將能夠利用。所以 - 我認為，還有更多的創意來自消費者的洞察力並能夠實現它。

I'll give you a good example that's even going on right now in the brand that shows what happens when we do get it right. Back-to-office is something that the brand hopes to really own. But even right now, we have a Pixie and a Stevie pant that's offered in a skinny leg [layered], wide leg, different fabrications and patterns, all very, very, very popular. That's the message that the consumer is telling us about the sensibility and fashion that she's looking for and, again, certainly staying really sharp on our basics.

我會給你一個很好的例子，這個例子現在正在品牌中展示當我們做對時會發生什麼。回到辦公室是品牌希望真正擁有的東西。但即使是現在，我們也有 Pixie 和 Stevie 褲子，有緊身褲 [分層]、闊腿褲、不同的面料和圖案，都非常、非常、非常受歡迎。這就是消費者告訴我們她正在尋找的感性和時尚的信息，並且肯定會在我們的基礎知識上保持真正的敏銳。

But in particular, being able to serve, again, a wide range of customer. I commented on denim and opening price point right now at lower end. But again, across the aisle, the men customers turn from denim to a chino fabric that we've got out. And again, these are things I think that the brand is really going to look to try and capitalize on. So much more rationalization around the breadth of the assortment and really getting deep where we know [the customer is] looking for us and then again, keeping enough open that we can chase into it.

但特別是能夠再次為廣泛的客戶提供服務。我在低端評論了牛仔布和開盤價。但同樣，穿過過道，男士顧客從牛仔布轉向我們推出的斜紋棉布面料。再一次，這些是我認為該品牌真正想要嘗試和利用的東西。圍繞品種的廣度進行了更多的合理化，並真正深入到我們知道 [客戶正在] 尋找我們的地方，然後再一次，保持足夠的開放性，以便我們可以追逐它。

And a last point on that. It's not just being more responsive and having a better inventory balance. The more effective we are at that, those are big down payments and steps toward localizing more effectively as well in the inventory we carry an increasing sell-through. So it's something, I think, that's a big, big, big opportunity to the brand and why an underlying -- why we feel so strong about the opportunity for Old Navy going forward.

最後一點。這不僅僅是提高響應速度和更好的庫存平衡。我們在這方面越有效，這些都是大筆的預付款和更有效地本地化的步驟，以及我們攜帶的庫存不斷增加的銷售量。所以，我認為，這對品牌來說是一個巨大的、巨大的、巨大的機會，也是一個潛在的——為什麼我們對 Old Navy 前進的機會感到如此強烈。

Your next question is from the line of Ike Boruchow with Wells Fargo.

你的下一個問題來自富國銀行的 Ike Boruchow。

This is Jesse Sobelson on for Ike. I was just curious on this. So first, the $53 million write-down of the Yeezy product. I just wanted to kind of confirm that, that was all of the product that you guys held and it's just fully written down. And then kind of looking at over the longer term with the real estate, with your business. I was curious on your views of the ownership there, and if we should expect any more sales in the future.

這是 Ike 的 Jesse Sobelson。我只是對此感到好奇。首先，Yeezy 產品減記 5300 萬美元。我只是想確認一下，這就是你們持有的所有產品，並且已經完全寫下來了。然後從長遠來看，看一下房地產和您的業務。我很好奇你對那裡所有權的看法，以及我們是否應該期待未來有更多的銷售。

Thanks, Jesse. So yes, we did take the appropriate impairment on the Yeezy inventory as we are winding down that business and that $53 million is reflected as appropriate. As we think about -- you're talking about corporate-owned real estate, I'm assuming, based on your question?

謝謝，傑西。所以是的，我們確實對 Yeezy 庫存進行了適當的減值，因為我們正在結束該業務，並且 5300 萬美元被反映為適當的。正如我們所考慮的那樣——我假設你是在談論公司擁有的房地產，基於你的問題？

Yes.

是的。

So the way I think about the corporate-owned real estate is we will always look to monetize underutilized assets. To the degree the assets are being fully utilized, we are proud of the assets we have and we feel good about them. So I'm not previewing anything else other than to say we do try to look and prudently evaluate how we're utilizing our assets to make sure that they're adding the value they need to add. But at this point, we feel good with where we are today.

因此，我對公司擁有的房地產的看法是，我們將始終尋求將未充分利用的資產貨幣化。在資產得到充分利用的程度上，我們為我們擁有的資產感到自豪，我們對它們感覺良好。因此，除了說我們確實在努力審視和審慎評估我們如何利用我們的資產以確保它們增加了它們需要增加的價值之外，我沒有預示任何其他內容。但在這一點上，我們對今天的處境感到滿意。

Your next question is from the line of Matthew Boss with JPMorgan.

你的下一個問題來自摩根大通的 Matthew Boss。

So Katrina, a couple of things. Maybe one, could you help rank assortment changes that you made at Gap which drove sequential improvement this quarter? Two at Old Navy, is there a way to think about maybe just a reasonable time line for optimal inventory balance that you think across categories at Old Navy? And then three, on the $250 million of annualized expense savings, I guess what percent do you see flowing through to the bottom line next year versus opportunities you see for reinvestment?

所以卡特里娜颶風，有幾件事。也許一個，你能幫助對你在 Gap 所做的分類變化進行排名，這些變化推動了本季度的連續改進嗎？ Old Navy 的兩個，有沒有辦法考慮一個合理的時間線，以實現您在 Old Navy 跨類別考慮的最佳庫存平衡？然後是第三，關於 2.5 億美元的年度費用節省，我猜你認為明年流向底線的百分比與你看到的再投資機會相比是多少？

So in order. For Gap, are you talking about the specific -- like the specific assortments, what's working there? Is that what you're asking?

所以有序。對於 Gap，你是在談論具體的——比如具體的分類，那裡有什麼作用？那是你要問的嗎？

Exactly.

確切地。

Yes, I think -- it's funny, Bobby and I were talking about this. We're really proud of the way that the Gap team has come back with great current fashion, but really, it's current for the modern essentials. And so whether it's the faux leather pants that have really driven a lot of interest in the normal 5-pocket style or whether it's their great interpretation of the basics like a jean jacket with a puff sleeve, that just makes that product more current. I would say, overall, they've just done a really nice job of having trend-right fashion but interpreted into modern essentials.

是的，我認為——這很有趣，Bobby 和我正在談論這個。我們真的為 Gap 團隊帶著偉大的時尚回歸的方式感到自豪，但實際上，它是現代必需品的潮流。因此，無論是人造皮褲真正引起了人們對普通 5 袋款式的極大興趣，還是它們對基本款的出色詮釋，如帶泡泡袖的牛仔夾克，都讓該產品更加流行。我會說，總的來說，他們在擁有符合潮流的時尚方面做得非常好，但又被詮釋為現代必需品。

And so I'll answer the other 2, and if Bobby has anything more to add on Gap, I'll have him do that. As far as Old Navy optimal inventory assortment, I think we're making progressive improvement through every quarter. And importantly, as we move into spring, we're just very excited to have that responsive inventory back because that will start to give them the opportunity to be much closer to demand and be able to chase into the inventory trends.

所以我會回答其他 2 個問題，如果 Bobby 對 Gap 還有什麼要補充的，我會讓他做的。至於 Old Navy 的最佳庫存分類，我認為我們每個季度都在逐步改進。重要的是，隨著我們進入春季，我們非常高興能夠恢復響應式庫存，因為這將開始讓他們有機會更接近需求並能夠追趕庫存趨勢。

As an example, Gap has been able to chase back into the faux leather styles as well as that Gap -- that pop sleeve denim jacket, for instance, in a very short amount of time after they saw the fall product succeed to get it back in time for holiday. And so just an example of how once we get that responsive inventory back, I think Old Navy will similarly start to see the ability to really change the way they are able to serve their customers.

例如，Gap 已經能夠追回人造皮革款式以及 Gap——例如，流行袖牛仔夾克，在他們看到秋季產品成功收回後的很短時間內正好趕上假期。因此，這只是一個例子，說明一旦我們恢復響應式庫存，我認為 Old Navy 將同樣開始看到真正改變他們為客戶提供服務的方式的能力。

And then on the $250 million of annualized expense savings, right now, our view is that, that's expected to just offset the reset in bonus for next year. Since as you can imagine, we're not likely to pay bonuses this year based on performance as well as some of the wage inflation that we're seeing. But as Bobby said, more to come. We're not stopping at the $250 million. I think we feel like that's a good start for where we need to be really bearing down on cost in the company. But overall, we are working hard to think about how to think longer term about more expansive cost efforts that we think will rightsize the company's expense structure to make it more fit for purpose.

然後就每年節省的 2.5 億美元費用而言，我們的觀點是，預計這將抵消明年獎金的重置。因為正如您可以想像的那樣，我們今年不太可能根據績效以及我們看到的一些工資上漲來支付獎金。但正如 Bobby 所說，還會有更多。我們不會止步於 2.5 億美元。我認為我們覺得這是一個良好的開端，因為我們需要真正降低公司的成本。但總的來說，我們正在努力思考如何從長遠考慮更廣泛的成本努力，我們認為這些努力將使公司的費用結構合理化，使其更適合目標。

So I don't know, Bobby, on Gap, if you'd add anything.

所以我不知道，Bobby，在 Gap 上，你是否願意添加任何內容。

No, I think I would just double underline on the cost. I mean we said we're really early in this work, but I mean, this is work where -- I mean, we're taking a real comfortable position on questioning everything that we do. So it's work that will, I say, going on well into 2023, so a lot more to come there.

不，我想我會在成本上加倍下劃線。我的意思是我們說過我們在這項工作中確實處於早期階段，但我的意思是，這是一項工作——我的意思是，我們在質疑我們所做的一切方面採取了真正舒適的立場。所以我說，這項工作將一直持續到 2023 年，因此會有更多工作要做。

I would not miss a chance really because I think Katrina did it nicely, but I think it's a meaningful deal that we've seen strong women's specialty business turn across wovens, bottoms. It's sweaters, it's everything. I mean there's a great, oversized, turtleneck sweater that's really, really hot in there. They've gotten bold enough trend-right, right now, knowing the customer is ready to get out.

我真的不會錯過任何機會，因為我認為卡特里娜颶風做得很好，但我認為這是一項有意義的交易，我們已經看到強大的女性專業業務轉向機織面料和底褲。這是毛衣，這就是一切。我的意思是有一件很棒的超大號高領毛衣，裡面真的非常熱。他們已經獲得了足夠大膽的趨勢 - 正確，現在，知道客戶已準備好離開。

So whether it's party wear right now, et cetera, and it's in the category, it's in the flannel sheet sleep sets and so forth. So seeing that business turn in the way of the team, I think, has geared up to keep that going. It has my attention. I've seen spring and summer. So I think that, hopefully, we're going to find ourselves with some positive traction here.

因此，無論是現在的派對裝等，還是在類別中，它都在法蘭絨床單睡套裝中等等。因此，我認為，看到業務以團隊的方式轉變，已經做好了保持這種勢頭的準備。它引起了我的注意。我見過春天和夏天。所以我認為，希望我們能在這裡找到一些積極的牽引力。

Your next question is from the line of Corey Tarlowe with Jefferies.

你的下一個問題來自 Corey Tarlowe 與 Jefferies 的合作。

So I wanted to touch a little bit on the Gap. So I think one thing that's clear is that strategically, this business has been really focused on driving capital-efficient growth, whether it's franchising international, selling the China business or maybe even more recently, going on to launching on Amazon Fashion. So could you maybe just talk a little bit about the overarching strategy at the Gap brand and how that's progressing and how you see that playing out as we look to the fourth quarter and next year?

所以我想稍微談談 Gap。所以我認為有一點很清楚，從戰略上講，這項業務一直專注於推動資本效率增長，無論是國際特許經營、出售中國業務，還是最近在亞馬遜時尚上推出。那麼，你能否談談 Gap 品牌的總體戰略，以及它的進展情況，以及你如何看待第四季度和明年的結果？

Yes, Corey, it is very much consistent with what we've put out for Gap brand, which is that we have spent the last couple of years really rightsizing the business model to a more modern model for the Gap brand, closing North America specialty stores that we potentially had overexpanded back in the heyday, getting out of malls that are not as relevant anymore, pivoting to be much more digital, really focusing on ensuring that the international growth, which we think is important, it's our most global brand, is being done with other people's capital in a way that we can be in those important markets but not be sustaining the operating losses that we were sustaining there. So really focusing on a much healthier core.

是的，科里，這與我們為 Gap 品牌所做的非常一致，那就是我們在過去幾年中真正將商業模式調整為 Gap 品牌更現代的模式，關閉北美專業我們在鼎盛時期可能過度擴張的商店，離開不再那麼相關的購物中心，轉向更加數字化，真正專注於確保我們認為重要的國際增長，這是我們最全球化的品牌，正在以一種我們可以在那些重要市場但不會承受我們在那裡承受的運營損失的方式來處理其他人的資本。所以真正專注於更健康的核心。

And then really, the focus on the creative health of the brand, the relevance that drives the North America core through product relevance and partnerships is the recipe for that brand. And I think that, that's what's playing out in the third quarter. It's what Bobby articulated about their sort of product early signs of improvement and what we remain committed to as we head into next year.

然後真的，關注品牌的創意健康，通過產品相關性和合作夥伴關係推動北美核心的相關性是該品牌的秘訣。我認為，這就是第三季度的結果。這是 Bobby 闡述的關於他們的產品改進的早期跡象，以及我們在進入明年時仍然致力於的事情。

Your last question comes from the line of Janet Kloppenburg with JJK Research.

你的最後一個問題來自 Janet Kloppenburg 與 JJK Research 的合作。

Congratulations on the progress. Katrina, I just wanted to flesh out the merchandise margin direction for the fourth quarter where it seems like you have some caution. And I appreciate the inventory breakdown, but you did a great job of bringing your inventories down. So I'm wondering with this product -- better, balanced product, not where you want it to be, but balanced, better balanced, is there some indication that the promotional levels will be that much more severe, even though the inventory levels appear to be pretty -- in pretty good shape? Or let's put it this way, much better shape than they were?

祝賀你的進步。卡特里娜颶風，我只是想充實第四季度的商品利潤率方向，您似乎有些謹慎。我很欣賞庫存明細，但你在降低庫存方面做得很好。所以我想知道這個產品——更好、更平衡的產品，不是你想要的，而是平衡的，更好的平衡，是否有跡象表明促銷水平會更加嚴格，即使庫存水平出現漂亮——身材很好？或者這麼說吧，比他們現在的身材好多了？

And then on the SG&A, it seems like you saved a lot on marketing in the third quarter. That's my view. And I'm just wondering, will you start to uptick your marketing spend in the fourth quarter and going forward into '23?

然後在 SG&A 上，您似乎在第三季度節省了很多營銷費用。這是我的看法。我只是想知道，您會在第四季度開始增加營銷支出並進入 23 年嗎？

Yes, sure. So I think, Janet, we are glad that we have started to see the inventory levels come down. When you adjust for the in-transit and the pack and hold and the basics that we're carrying, we do still have fashion heading into the third -- into the fourth quarter. That is about the current revenue outlook, and that's what gives us the caution on the margin combined with the fact that we know others are working hard to get their inventory levels down.

是的，當然。所以我認為，珍妮特，我們很高興我們已經開始看到庫存水平下降。當您針對運輸途中、打包和存放以及我們攜帶的基本款進行調整時，我們仍然有時尚進入第三季度——進入第四季度。這是關於當前的收入前景，這讓我們對邊際保持謹慎，同時我們知道其他人正在努力降低庫存水平。

So we'll see where the margin lands, but we remain sort of prudent about what it might take in order to get through that. So we'll see where that lands. But again, trying to be helpful in articulating that we had to run discounts impacting the margin of about 370 basis points for Q2 and Q3. And while we certainly hope it's better in Q4, it's certainly on our minds that it could be that as we head into the quarter. So we'll let you decide.

因此，我們將看到利潤率的落點，但我們仍然對為了度過難關可能需要採取的措施持謹慎態度。所以我們會看到它的著陸點。但同樣，試圖幫助闡明我們必須進行折扣，影響第二季度和第三季度約 370 個基點的利潤率。雖然我們當然希望第四季度會更好，但我們肯定會在進入本季度時考慮到這一點。所以我們會讓你決定。

On SG&A, yes, we did save some in marketing in third quarter. I don't believe that it's -- that we would be spending more in marketing in fourth quarter. We continue to try and find that right balance of marketing in the brand. But overall, we're focused on marketing effectiveness, both in fourth quarter as well as we head into next year as we look to make sure that we're being prudent in that marketing spend after a couple of years of heavily investing. So I wouldn't expect the marketing to go up in fourth quarter.

在 SG&A 方面，是的，我們確實在第三季度節省了一些營銷費用。我不相信它 - 我們會在第四季度在營銷方面投入更多。我們繼續嘗試在品牌中找到營銷的正確平衡。但總的來說，我們在第四季度和明年都專注於營銷效率，因為我們希望確保在經過幾年的大量投資後，我們在營銷支出方面保持謹慎。所以我不希望營銷在第四季度上升。

Best of luck for a good holiday.

祝你有個愉快的假期。

Thanks, Janet. You, too.

謝謝，珍妮特。你也是。

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。