蓋璞 (GPS) 2023 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen. My name is Briana, and I will be your conference operator today. I would like to welcome everyone to The Gap, Inc. Second Quarter 2023 Earnings Conference Call. (Operator Instructions)

女士們、先生們，下午好。我叫 Briana，今天我將擔任你們的會議操作員。歡迎大家參加 The Gap, Inc. 2023 年第二季度收益電話會議。 （操作員說明）

I would now like to turn your call over and introduce your host, Emily Gacka, Director of Investor Relations.

現在我想轉接您的電話並介紹您的主持人艾米麗·加卡 (Emily Gacka)，她是投資者關係總監。

Good afternoon, everyone. Welcome to Gap Inc.'s Second Quarter fiscal 2023 Earnings Conference Call.

大家下午好。歡迎參加 Gap Inc. 2023 財年第二季度收益電話會議。

Before we begin, I'd like to remind you that the information made available on this 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 risk factors described in the company's annual report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2023, and any subsequent filings with the Securities and Exchange Commission, all of which are available on gapinc.com. These forward-looking statements are based on information as of today, August 24, 2023, and we assume no obligation to publicly update or revise our forward-looking statements.

在開始之前，我想提醒您，本次電話會議中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，以及與公認會計原則不符的任何財務措施的描述和調節，請參閱我們最新收益報告中包含的警示性聲明、公司於2023 年3 月14 日向美國證券交易委員會提交的10-K 表格年度報告以及隨後向美國證券交易委員會提交的任何文件中描述的風險因素，所有這些都可以在gapinc.com 上獲取。這些前瞻性陳述基於截至今天（2023 年 8 月 24 日）的信息，我們不承擔公開更新或修改我們的前瞻性陳述的義務。

Joining me on the call today are Executive Chair, Bob Martin; Chief Executive Officer, Richard Dickson; and Chief Financial Officer, Katrina O'Connell.

今天和我一起參加電話會議的是執行主席鮑勃·馬丁 (Bob Martin)；首席執行官理查德·迪克森；和首席財務官卡特里娜·奧康奈爾。

With that, I'll turn the call over to Bob.

這樣，我會將電話轉給鮑勃。

Thank you, Emily, and good afternoon, everyone. Before Katrina shares our second quarter results, I have the pleasure of welcoming our new Chief Executive Officer, Richard Dickson, to the call.

謝謝艾米麗，大家下午好。在卡特里娜颶風分享我們第二季度業績之前，我很高興歡迎我們的新任首席執行官理查德·迪克森參加電話會議。

There's no denying that Richard was destined for this role at this moment. His experience as a transformational brand builder makes him a perfect fit for this great company. He's uniquely qualified to lead and carry out the transformative work already underway and, more importantly, he is the right leader for tomorrow, defining the future for Gap Inc. Appointed to our Board of Directors in November of 2022, he's had a view into how we are changing the way we work and the results we deliver. But what energizes him most is building a new legacy for our renowned portfolio of brands, one that matters to our customers, employees and shareholders.

無可否認，理查德此刻注定會擔任這個角色。他作為變革型品牌建設者的經驗使他非常適合這家偉大的公司。他具有獨特的資格來領導和開展已經在進行的變革工作，更重要的是，他是明天的正確領導者，定義了Gap Inc. 的未來。他於2022 年11 月被任命為我們的董事會成員，他對如何我們正在改變我們的工作方式和我們交付的結果。但最讓他充滿活力的是為我們著名的品牌組合創造新的遺產，這對我們的客戶、員工和股東都很重要。

And before I hand off, I want to say thank you to our entire Gap Inc. team for their commitment to the success of this company and their tenacity and care for our brands, for embracing operational rigor and regaining the product and customer obsession with an eye on modernizing the way we work, all of which becomes a strong foundation for what's ahead under Richard's leadership. I have great belief that Richard and this team will define a very bright future for this company.

在我離開之前，我想對我們整個 Gap Inc. 團隊表示感謝，感謝他們對公司成功的承諾、對我們品牌的堅韌和關懷、對運營的嚴謹性以及對產品和客戶的迷戀。著眼於使我們的工作方式現代化，所有這些都成為理查德領導下未來發展的堅實基礎。我堅信理查德和他的團隊將為這家公司定義一個非常光明的未來。

So with that, I want to welcome Richard Dickson, the new Chief Executive Officer of Gap Inc. Richard?

因此，我想歡迎 Gap Inc. 的新任首席執行官理查德·迪克森 (Richard Dickson)。理查德？

Well, good afternoon. This is my third official day as CEO of Gap Inc. So first, let me begin by thanking Bobby, the Board and the entire Gap Inc. organization for the opportunity to lead this incredible company. And thank you, everyone, for joining us today on our second quarter 2023 earnings call.

嗯，下午好。這是我作為 Gap Inc. 首席執行官的第三個正式日。首先，我要感謝 Bobby、董事會和整個 Gap Inc. 組織給我機會領導這家令人難以置信的公司。感謝大家今天參加我們的 2023 年第二季度財報電話會議。

Now many have asked me, why Gap Inc. and why now. So let me start by saying that I have admired Gap Inc. and its brands, Old Navy, Gap, Banana Republic and Athleta, for decades as a customer, a brand builder and, most recently, as a Board member. Those of you who know a bit about my career know that I've always been drawn to companies and brands with storied legacies and powerful purposes. And in apparel, there's no equal to Gap Inc.

現在很多人問我，為什麼選擇 Gap Inc，為什麼是現在。首先我要說的是，幾十年來，作為客戶、品牌建設者以及最近作為董事會成員，我一直欽佩 Gap Inc. 及其品牌 Old Navy、Gap、Banana Republic 和 Athleta。對我的職業生涯有所了解的人都知道，我一直被那些擁有悠久歷史和強大目標的公司和品牌所吸引。在服裝領域，Gap Inc. 無可匹敵。

When Don and Doris Fisher opened the very first Gap store in San Francisco in 1969, little do they know that they had tapped into the zeitgeist in a way that would democratize and define American style. Suddenly, great clothes were accessible. Stores were experiential. Self-expression could be an everyday pursuit; open to all. Talk about a game changer; Gap did that. Creating an opportunity from the currents of culture has been a hallmark of Gap Inc. for more than 5 decades. Over the years, our brands made jeans, khakis, kidswear, suits, yoga pants, you name it, into massive trends through great design, great marketing and an all-out obsession with our customer.

1969 年，當 Don 和 Doris Fisher 在舊金山開設第一家 Gap 商店時，他們幾乎不知道自己已經順應了時代精神，以一種民主化和定義美式風格的方式。突然間，漂亮的衣服變得觸手可及。商店是體驗式的。自我表達可能是一種日常追求；向所有人開放。談論遊戲規則的改變者；蓋普就是這樣做的。五十多年來，從文化潮流中創造機會一直是 Gap Inc. 的標誌。多年來，我們的品牌通過出色的設計、出色的營銷和對客戶的全力支持，使牛仔褲、卡其褲、童裝、西裝、瑜伽褲等等成為了巨大的趨勢。

Fast forward to today, the apparel and retail landscape has changed dramatically. Evolving at an even quicker pace now, it requires that great brands run at the speed of culture to maintain relevance. What has not changed is the customer's desire for fashion that they can make their own. We will take that one step further, making what we do, what we stand for and what we sell relevant. As anyone in this industry will tell you, clothing is a rational need while fashion is an emotional want. Our brands will balance both. Going forward, I'm confident that we have the scale, talent and determination to spark huge, defining trends again.

快進到今天，服裝和零售格局已經發生了巨大變化。現在的發展速度更快，需要偉大的品牌以文化的速度運行以保持相關性。沒有改變的是顧客對自己可以製作的時尚的渴望。我們將更進一步，使我們的工作、我們的立場和我們銷售的產品具有相關性。這個行業的任何人都會告訴你，服裝是一種理性需求，而時尚是一種情感需求。我們的品牌將平衡兩者。展望未來，我相信我們擁有規模、人才和決心，能夠再次激發巨大的、決定性的趨勢。

Think about it. Gap Inc. is the largest specialty apparel company in America, an empowered community of more than 90,000 people who apply their talents to Gap Inc. and our brands, producing about 900 million units a year. Our brands draw 600 million visits to stores and $1.4 billion to our sites online each year, making Gap Inc. the #2 player in U.S. apparel e-commerce. These customers across multiple generations turn to Old Navy, Gap, Banana Republic and Athleta to help them step out everywhere from schools and studios to offices and date nights. So our brands matter, but it can matter even more.

想一想。 Gap Inc. 是美國最大的專業服裝公司，是一個擁有超過 90,000 名員工的賦能社區，他們將自己的才能運用到 Gap Inc. 和我們的品牌中，每年生產約 9 億件服裝。我們的品牌每年吸引 6 億人次的商店訪問量和 14 億美元的在線網站銷售額，使 Gap Inc. 成為美國服裝電子商務領域的第二大參與者。這些跨代的客戶轉向 Old Navy、Gap、Banana Republic 和 Athleta 來幫助他們走出學校、工作室、辦公室和約會之夜的各個角落。因此，我們的品牌很重要，但甚至更重要。

In my previous role in toys and entertainment, we always strive to make consumers fans and to grow those fandoms, and I want to apply that approach to our portfolio of brands, a virtuous cycle where our products and experiences motivate belief and loyalty that fans then badge and amplify in culture, growing the fandom, validating and inspiring us to even greater creativity and monetization. It works because everyone wins. Gap Inc. brands already have incredible fans. Our job now will be to excite and delight them even more, growing their numbers and the value of our brands.

在我之前在玩具和娛樂領域的工作中，我們始終努力讓消費者成為粉絲並發展這些粉絲群體，我想將這種方法應用於我們的品牌組合，這是一個良性循環，我們的產品和體驗激髮粉絲的信念和忠誠度徽章並擴大文化，擴大粉絲群體，驗證並激勵我們發揮更大的創造力和貨幣化能力。它之所以有效，是因為每個人都贏了。 Gap Inc. 品牌已經擁有令人難以置信的粉絲。我們現在的工作是讓他們更加興奮和高興，增加他們的數量和我們品牌的價值。

The comprehensive transformation effort that Bobby initiated has been an important step in that direction, streamlining operations so that we could focus on growth-driving initiatives. And Katrina will take you through that progress, in addition to the quarterly performance in detail. But before she does, I want to acknowledge that restructuring is challenging and that change of this magnitude doesn't come fast. Transformation is difficult. Still, our people at every level of the organization have stepped up, made tough calls and championed the progress we've made so far. And we're going to keep going.

鮑比發起的全面轉型工作是朝這個方向邁出的重要一步，它簡化了運營，使我們能夠專注於推動增長的舉措。除了詳細的季度業績外，卡特里娜颶風還將帶您了解這一進展。但在她這樣做之前，我想承認重組具有挑戰性，而且這種規模的變化不會很快發生。轉型是困難的。儘管如此，我們組織各個層面的員工都挺身而出，做出了艱難的決定，並支持我們迄今為止所取得的進展。我們將繼續前進。

As we continue to focus on strengthening our financial footing, we're now going to build on that progress, accelerating our efforts to drive profitable growth by unlocking the value in our brands. This time, we'll do it differently with a clear focus on brand revitalization, redefining our brands meaning to consumers, focusing on creativity, designing for relevance as a pursuit rather than a goal, building to quality and leveraging our remarkable legacy to shape an exciting new future. That's my passion. It's why I'm here and why I'm here now. And I know that our teams are just as passionate and committed to making it happen.

隨著我們繼續專注於加強我們的財務基礎，我們現在將在此基礎上再接再厲，通過釋放我們品牌的價值來加快努力推動盈利增長。這一次，我們將採取不同的做法，明確關注品牌復興，重新定義我們的品牌對消費者的意義，專注於創造力，將相關性設計作為一種追求而不是目標，打造質量並利用我們卓越的傳統來塑造令人興奮的新未來。這就是我的熱情。這就是我在這里以及現在在這裡的原因。我知道我們的團隊同樣充滿熱情並致力於實現這一目標。

In the quarters to come, I'll share specific priorities and plans. What I can tell you today is that I'm intent on reigniting a creative culture at Gap Inc. that is a magnet for the industry's best talent, including the great, creative talent we already have; recommitting each of our brands to a distinctive brand purpose that aligns with customer values and sets them apart; reorienting our brands around both the art and science of design-centric thinking informed by consumer insights in an absolute obsession with our customer; reengaging in the cultural conversation with hyper-relevant products and ideas that inspire constructive dialogues; and rethinking how our brands show up in store and online with customer experiences that excite and delight; most of all, mattering to our people, our investors, our communities and the world.

在接下來的幾個季度中，我將分享具體的優先事項和計劃。今天我可以告訴你們的是，我決心在 Gap Inc. 重新點燃創意文化，這種文化吸引著業界最優秀的人才，包括我們已經擁有的優秀創意人才；重新致力於我們每個品牌的獨特品牌宗旨，與客戶價值觀相一致並使其與眾不同；圍繞以設計為中心的思維的藝術和科學重新定位我們的品牌，並通過對客戶的絕對痴迷來了解消費者的洞察力；通過高度相關的產品和想法重新參與文化對話，激發建設性對話；重新思考我們的品牌如何在商店和網上展現令人興奮和愉悅的客戶體驗；最重要的是，這對我們的人民、投資者、社區和世界都很重要。

In the coming weeks, I look forward to spending time in every part of the organization, our headquarters offices, stores, customer support centers, DCs and with partners in key regions of the U.S. and globally, meeting the people behind our brands, the customers who shop us and you, our shareholders, listening, learning, experiencing it all firsthand in order to get grounded and even more defined about where we're going.

在接下來的幾週內，我期待著在公司的各個部門、我們的總部辦公室、商店、客戶支持中心、配送中心以及美國和全球主要地區的合作夥伴中花時間，會見我們品牌背後的人員、客戶他們向我們和您，即我們的股東，傾聽、學習、親身體驗這一切，以便腳踏實地，甚至更明確我們的發展方向。

I'll wrap up by saying that my start date was deliberate. Just as August 22, 1969 was the milestone that created this remarkable company, I want August 22, 2023, to mark the start of an exciting new chapter for Gap Inc., one that celebrates our past as we pioneer an extraordinary future.

最後我要說的是，我的開始日期是經過深思熟慮的。正如1969 年8 月22 日是創建這家非凡公司的里程碑一樣，我希望2023 年8 月22 日能夠標誌著Gap Inc. 激動人心的新篇章的開始，在我們開創非凡未來的同時，慶祝我們的過去。

Thank you. And I'll now hand off the call to Katrina.

謝謝。現在我將把電話轉給卡特里娜颶風。

Thank you, Richard. It's been a pleasure working with you in your role as a Board member over the past 9 months, and I'm thrilled to partner with you in your new role as CEO.

謝謝你，理查德。在過去的 9 個月裡，我很高興與您作為董事會成員一起工作，我很高興能在您擔任首席執行官的新職位上與您合作。

Let me start with some reflections on our financial performance before I dive into more detail. Notably, we continued to strengthen our balance sheet and improve cash flows, reducing inventory 29% year-over-year, generating over $300 million of free cash flow, further paying down our ABL balance and ending the quarter with cash and equivalents of $1.4 billion, nearly twice as much as last year. Even in a choppy consumer market, each of our brands maintained or gained share during the quarter, fueled particularly by strength in our women's business through great style and relevant fashion.

在深入討論更多細節之前，讓我先回顧一下我們的財務業績。值得注意的是，我們繼續強化資產負債表並改善現金流，庫存同比減少 29%，產生超過 3 億美元的自由現金流，進一步償還 ABL 餘額，本季度末現金及等價物達到 14 億美元，幾乎是去年的兩倍。即使在動蕩的消費市場中，我們的每個品牌在本季度仍保持或增加了市場份額，尤其是在我們的女裝業務通過出色的風格和相關時尚的實力推動下。

We delivered net sales within our previously communicated guidance range despite a weak apparel environment. We substantially completed the organizational changes that we previewed earlier this year, which we continue to expect will drive about $300 million in cost savings annually but, more importantly, will change how we work, allowing teams to be more consumer-centric. We continue to successfully recoup the excess air costs we incurred during the pandemic. That, combined with improved unit sell-through rates driving AURs, enabled meaningful gross margin expansion despite the inflationary cost headwinds we have faced. And we believe the actions to improve our operations and shore up the foundation of Gap Inc. continue to position us well as we enter the second half of fiscal 2023 and beyond.

儘管服裝環境疲弱，但我們的淨銷售額仍處於之前傳達的指導範圍之內。我們基本完成了今年早些時候預覽的組織變革，我們仍然預計這將每年節省約 3 億美元的成本，但更重要的是，這將改變我們的工作方式，使團隊更加以消費者為中心。我們繼續成功收回疫情期間產生的超額航空費用。儘管我們面臨通脹成本的不利因素，再加上單位銷售率的提高推動了 AUR，但仍實現了毛利率的大幅增長。我們相信，在進入 2023 財年下半年及以後，改善運營和鞏固 Gap Inc. 基礎的行動將繼續使我們處於有利地位。

While we're pleased with this progress, we're mindful of the mixed economic and consumer environment in which we are operating. With that backdrop, we continue to plan the business prudently. And the outlook we're providing today for both the third quarter and fiscal 2023 does contemplate the headwinds we continue to navigate in the second half of the year while also taking on new challenges like the resumption of student loan payments.

雖然我們對這一進展感到滿意，但我們也注意到我們所處的混合經濟和消費者環境。在此背景下，我們繼續審慎規劃業務。我們今天提供的第三季度和 2023 財年展望確實考慮到了我們在下半年繼續應對的逆風，同時也面臨著恢復學生貸款支付等新挑戰。

Let me start now with our second quarter results. Net sales of $3.5 billion decreased 8% versus last year, in the range of our expectations for second quarter sales to be down mid- to high single digits. Store sales decreased 7% from the prior year. Online sales decreased 11% versus last year and represented 33% of total net sales in the quarter. As a reminder, the sale of Gap China completed at the beginning of the first quarter of fiscal 2023 had about a $60 million or a 2-point negative impact to net sales growth. There was also a 1-point foreign exchange headwind. Excluding these factors, total company net sales would have been down about 5%. Comparable sales were down 6% in the quarter.

現在讓我從第二季度的業績開始。淨銷售額為 35 億美元，比去年下降 8%，處於我們對第二季度銷售額中高個位數下降的預期範圍內。商店銷售額較上年下降 7%。在線銷售額較去年下降 11%，佔本季度總淨銷售額的 33%。需要提醒的是，2023財年第一季度初完成的Gap中國出售對淨銷售額增長產生了約6000萬美元或2個百分點的負面影響。還有1點的外匯逆風。排除這些因素，公司總淨銷售額將下降約 5%。本季度可比銷售額下降 6%。

In spite of the sales declines, we're pleased to report that all 4 of our brands gained or maintained market share during the second quarter, with particular strength in women's. We know that regardless of market conditions, strong brands, brands that matter, win. So we remain focused on the levers and opportunities in our control to deliver on behalf of our customers, employees and shareholders.

儘管銷售額下降，但我們很高興地報告，我們的所有 4 個品牌在第二季度都獲得或保持了市場份額，尤其是女裝品牌。我們知道，無論市場狀況如何，強大的品牌、重要的品牌都會獲勝。因此，我們仍然專注於我們控制的槓桿和機會，以代表我們的客戶、員工和股東實現目標。

Let me now provide some sales color and highlights by brand, starting with Old Navy. Net sales in the second quarter were $1.96 billion. Both net sales and comparable sales declined 6% versus last year. We're pleased that Old Navy again modestly gained share in the quarter despite increased softness in the active category as well as continued slower demand from the lower-income consumer. We believe that Old Navy remains well positioned given its value orientation in the marketplace. The Old Navy team has lined up great marketing, product and value to compete in the important back-to-school season.

現在讓我按品牌提供一些銷售顏色和亮點，從 Old Navy 開始。第二季度淨銷售額為19.6億美元。淨銷售額和可比銷售額均較去年下降 6%。我們很高興老海軍在本季度再次小幅增加市場份額，儘管活躍類別的疲軟程度有所增加，而且低收入消費者的需求持續放緩。我們相信，鑑於其在市場上的價值取向，老海軍仍然處於有利地位。 Old Navy 團隊已經做好了出色的營銷、產品和價值準備，以在重要的返校季中展開競爭。

Turning to Gap brand. Gap brand total sales of $755 million were down 14% versus last year and comparable sales were down 1%. Excluding the negative impacts to sales of 7 points related to the sale of Gap China, 2 points due to the shutdown of Yeezy Gap and the estimated 1 point from foreign exchange, net sales were down 4% versus last year, predominantly driven by store closures in North America. Women's was the standout segment in the quarter, outpacing the market as the brand's reinvented icons are resonating with consumers.

轉向Gap品牌。 Gap 品牌總銷售額為 7.55 億美元，比去年下降 14%，可比銷售額下降 1%。剔除與 Gap 中國出售相關的 7 個百分點、Yeezy Gap 停業造成的 2 個百分點以及外匯匯率造成的 1 個百分點的負面影響，淨銷售額較去年下降 4%，主要是由於門店關閉在北美。女裝是本季度表現最出色的細分市場，其表現超越了市場，因為該品牌重新設計的標誌引起了消費者的共鳴。

Gap continues to make great strides with exciting collaborations and partnerships as the brand executes against its strategy to reimagine its product icons in new and exciting ways. Earlier this month, Gap brand partnered with LoveShackFancy on a limited-edition, multi-category capsule for every generation. The collaboration merges Gap's iconic styles with LoveShackFancy's vintage-inspired florals and feminine silhouettes. This most recent collaboration is a prime example of how Gap strategy of partnering with relevant brands and individuals can create buzz and marketing for the brand, reaching new consumers and garnering more premium pricing.

Gap 繼續通過令人興奮的合作和夥伴關係取得長足進步，該品牌執行其戰略，以令人興奮的新方式重新構想其產品標誌。本月早些時候，Gap 品牌與 LoveShackFancy 合作，為每一代人推出了限量版、多品類的膠囊系列。此次合作將 Gap 的標誌性風格與 LoveShackFancy 的複古花卉和柔美廓形融為一體。最近的這次合作是一個很好的例子，說明了 Gap 與相關品牌和個人合作的策略如何為品牌創造知名度和營銷效果，吸引新消費者並獲得更高的定價。

Turning to Banana Republic. Second quarter sales of $480 million declined 11% year-over-year. Comparable sales were down 8%. Revenue remains impacted in the short term as the brand laps an outsized benefit last year driven by the dramatic shift in customer preferences. BR continues to make impressive strides in its evolution to a premium lifestyle brand. Fine fabrics like linen, cashmere and leather showed signs of strength in the quarter, and the brand expects to maximize them in the back half of the year.

轉向香蕉共和國。第二季度銷售額為 4.8 億美元，同比下降 11%。可比銷售額下降 8%。由於客戶偏好的巨大轉變，該品牌去年獲得了巨大的收益，因此短期內收入仍會受到影響。 BR 在向高端生活方式品牌的演變過程中不斷取得令人印象深刻的進步。亞麻、羊絨和皮革等優質面料在本季度顯示出強勁跡象，該品牌預計將在今年下半年將其最大化。

Banana Republic's transformation towards a more evolved lifestyle position is coming to life through an elevated fashion aesthetic and more full-price selling. As we look to the future, we're excited to see the brand extend its vision and refined aesthetic to other addressable markets with BR Home, including the launch of premium bedding, rugs, pillows and decor in March and the upcoming debut of a broader home offering this fall.

Banana Republic 通過提升時尚審美和更加全價銷售，向更加先進的生活方式定位轉變。展望未來，我們很高興看到該品牌通過 BR Home 將其願景和精緻美學擴展到其他潛在市場，包括在 3 月份推出優質床上用品、地毯、枕頭和裝飾品，以及即將推出的更廣泛的產品今年秋天的房屋發售。

Athleta sales of $341 million declined 1% from the prior year. Comparable sales were down 7%, an improvement in trend from Q1. Sales in core performance bottoms, the critical backbone of Athleta's assortment, accelerated throughout the quarter and outperformed total brand sales.

Athleta 銷售額為 3.41 億美元，較上年下降 1%。可比銷售額下降 7%，趨勢較第一季度有所改善。核心性能底部產品（Athleta 產品系列的關鍵支柱）的銷售在整個季度加速增長，並超過了品牌總銷售額。

Athleta's positioning, empowering a community of active women and girls to reach their true potential through the power of she is as relevant and impactful as ever. The work the team has been doing to improve product presentation customer experience and creative in the short term, optimizing online marketing, site merchandising and resetting store floors in key markets, emphasizes the performance DNA that Athleta is known for. We're really excited to welcome Chris Blakeslee to the team. As a proven leader in driving growth and innovation in the active apparel and wellness sector, most recently at Alo Yoga, we look forward to the work he and the team will drive to bring the Athleta brand to its full potential over the long term.

Athleta 的定位是通過她的力量讓活躍的婦女和女孩群體發揮自己的真正潛力，這一定位與以往一樣具有相關性和影響力。該團隊一直致力於在短期內改善產品展示、客戶體驗和創意，優化在線營銷、網站營銷和重置關鍵市場的商店樓層，這些工作強調了 Athleta 聞名的性能 DNA。我們非常高興歡迎克里斯·布萊克斯利加入團隊。作為推動運動服裝和健康領域增長和創新的公認領導者，最近在 Alo Yoga，我們期待他和團隊將推動工作，使 Athleta 品牌在長期內充分發揮潛力。

Now turning to gross margin in the quarter. Gross margin was 37.6%, an increase of 310 basis points versus last year's reported gross margin. Compared to last year's adjusted rate, gross margin expanded 160 basis points due to merchandise margin expansion of approximately 260 basis points, which was slightly ahead of our expectations, partially offset by raw deleverage of 100 basis points.

現在轉向本季度的毛利率。毛利率為 37.6%，比去年公佈的毛利率增加了 310 個基點。與去年調整後的毛利率相比，由於商品利潤率擴大約260個基點，毛利率擴大了160個基點，略高於我們的預期，但被100個基點的原始去槓桿化部分抵消。

Drivers of the margin rate expansion were as follows: approximately 200 basis points of leverage as we lap last year's elevated airfreight and drove our normalized air expense down; approximately 200 basis points of leverage driven primarily from improved promotional activity relative to last year; approximately 140 basis points of deleverage related to inflationary cost headwinds, which was better than our prior expectations of approximately 200 basis points as we realized improved ocean freight rates; and ROD was flat on a nominal basis compared to last year but deleveraged 100 basis points due to the lower sales volume.

利潤率擴張的驅動因素如下：大約 200 個基點的槓桿，因為我們超越了去年空運的增長，並推動了我們的標準化空運費用下降；槓桿率增加約 200 個基點，主要是由於促銷活動較去年有所改善；與通脹成本逆風相關的去槓桿化約 140 個基點，好於我們之前約 200 個基點的預期，因為我們意識到海運費率有所改善； ROD 名義上與去年持平，但由於銷量下降而去槓桿化了 100 個基點。

Now let me turn to SG&A. Reported SG&A in the second quarter was $1.2 billion and included $13 million in restructuring charges related to our head count actions. On an adjusted basis, second quarter SG&A declined 8% and leveraged 10 basis points versus last year driven mainly by lower advertising expense, payroll and technology investments.

現在讓我談談SG&A。第二季度報告的 SG&A 為 12 億美元，其中包括與我們的人員統計行動相關的 1300 萬美元重組費用。調整後的第二季度 SG&A 與去年相比下降了 8%，槓桿率下降了 10 個基點，這主要是由於廣告費用、工資和技術投資的下降。

Reported operating income was $106 million. Adjusted operating income, which excludes restructuring charges, was $119 million in the second quarter. Adjusted operating margin improved 170 basis points from last year to 3.4% in the quarter driven by the 160 basis point improvement in adjusted gross margin and 10 basis points of adjusted SG&A leverage.

報告營業收入為 1.06 億美元。第二季度調整後營業收入（不包括重組費用）為 1.19 億美元。本季度調整後營業利潤率較去年提高 170 個基點至 3.4%，原因是調整後毛利率提高了 160 個基點，調整後 SG&A 槓桿提高了 10 個基點。

During the second quarter, we recorded a benefit to both tax and net interest as a result of a transfer pricing settlement related to our sourcing activities. Reported EPS was $0.32. Adjusted EPS, which excludes restructuring charges, was $0.34. Share count ended at 369 million.

在第二季度，由於與我們的採購活動相關的轉讓定價和解，我們在稅收和淨利息方面都取得了收益。報告每股收益為 0.32 美元。調整後每股收益（不包括重組費用）為 0.34 美元。截至股數為 3.69 億股。

Turning to balance sheet and cash flow, starting with inventory. Ending inventories declined 29% in second quarter versus last year. This includes a 9 percentage point decline related to in-transit as we lap the prior year supply chain challenges and 6 points of decline related to releasing the majority of our pack-and-hold inventory balance. The remaining 14-point decline was driven by more efficient inventory management.

轉向資產負債表和現金流，從庫存開始。第二季度期末庫存比去年同期下降 29%。其中包括與運輸途中相關的 9 個百分點的下降（因為我們克服了上一年的供應鏈挑戰）以及與釋放大部分包裝和保留庫存餘額相關的 6 個百分點。其餘 14 個百分點的下降是由更高效的庫存管理推動的。

As you know, we made significant progress on reducing inventories as we exited fiscal 2022. We remain focused in fiscal 2023 on moderating buys and utilizing our responsive levers. As a result, we are planning for year-over-year inventory to be down generally in line with year-to-date trends at the end of third quarter.

如您所知，隨著 2022 財年結束，我們在減少庫存方面取得了重大進展。2023 財年我們仍將重點放在減少採購和利用我們的響應槓​​桿上。因此，我們計劃第三季度末庫存同比下降，與今年迄今的趨勢基本一致。

Quarter-end cash and equivalents were $1.4 billion, an increase of 91% from the prior year. Year-to-date net cash from operating activities was $528 million driven primarily by lower inventory levels. Capital expenditures were $199 million. We are pleased to have generated free cash flow of $329 million year-to-date.

季末現金及等價物為 14 億美元，比上年增長 91%。年初至今，經營活動產生的淨現金為 5.28 億美元，這主要是由於庫存水平較低。資本支出為 1.99 億美元。我們很高興今年迄今已產生 3.29 億美元的自由現金流。

As we told you last quarter, we expect to be positioned to pay down the $350 million draw on our asset-backed line of credit this year. During the quarter, we paid down $200 million and intend to pay down the remaining $150 million balance by the end of 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 August 16, our Board approved maintaining that $0.15 dividend for the third quarter of fiscal 2023.

正如我們上季度告訴您的那樣，我們預計今年將能夠償還我們資產支持信貸額度的 3.5 億美元。本季度，我們支付了 2 億美元，並打算在年底前支付剩餘的 1.5 億美元餘額。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。 8 月 16 日，我們的董事會批准維持 2023 財年第三季度 0.15 美元的股息。

Now turning to our outlook. We are all well aware of the mixed economic data and uncertain consumer trends in the marketplace, including the new dynamic regarding student loan repayments beginning in the third quarter. As a result, we continue to be prudent in our approach to planning in light of what remains an uncertain macro environment and choppy consumer backdrop.

現在轉向我們的展望。我們都清楚市場上好壞參半的經濟數據和不確定的消費趨勢，包括第三季度開始的學生貸款償還的新動態。因此，鑑於宏觀環境仍存在不確定性和消費者需求波動，我們將繼續保持謹慎的規劃方式。

We now anticipate fiscal 2023 net sales, inclusive of the 53rd week, to be down generally in the mid-single-digit range compared to $15.6 billion in net sales last year and similar to our first half 2023 sales performance. The extra week is estimated to add approximately $150 million to fourth quarter and fiscal 2023 net sales. Specific to Q3 sales, we're encouraged by trend improvements as we exit second quarter and into August. However, we remain mindful of 2 important dynamics for the quarter: first, we are lapping tougher sales comparisons from last year; and second, as mentioned, we remain measured in our outlook. With these dynamics in mind, we are estimating third quarter net sales to be down in the low double-digit range compared to the $4.04 billion in net sales last year.

我們現在預計 2023 財年的淨銷售額（包括第 53 週）與去年 156 億美元的淨銷售額相比將普遍下降在中個位數範圍內，並且與我們 2023 年上半年的銷售業績相似。預計額外一周將為第四季度和 2023 財年的淨銷售額增加約 1.5 億美元。具體到第三季度的銷售，我們對第二季度結束並進入八月時的趨勢改善感到鼓舞。然而，我們仍然關注本季度的兩個重要動態：首先，我們正在與去年進行更嚴格的銷售比較；其次，如前所述，我們對前景保持謹慎。考慮到這些動態，我們預計第三季度淨銷售額將比去年 40.4 億美元的淨銷售額下降兩位數。

Turning to gross margin. Starting with the full year compared to the 35% adjusted gross margin in fiscal 2022, gross margin expansion in fiscal 2023 is expected to be driven by the following factors: an estimated 200 basis points of leverage as we lap last year's elevated airfreight and continued to drive down normalized air expense; at least 100 basis points of margin benefit as a result of our better inventory position and expected improved promotional activity compared to last year; approximately 10 basis points of inflationary cost deleverage versus last year, as we look to the second half, we expect the inflationary deleverage in the first half of the year will shift to leverage in the back half as we benefit from both improved commodity costs and ocean freight rates; and ROD as a percentage of sales is now planned to deleverage roughly 70 basis points compared to last year.

轉向毛利率。從全年開始，與2022 財年調整後毛利率35% 相比，預計2023 財年的毛利率擴張將受到以下因素的推動：隨著去年航空貨運量的增長，槓桿率預計將達到200 個基點，並繼續增長。降低標準化航空費用；與去年相比，由於我們更好的庫存狀況和預期促銷活動的改善，利潤率效益至少提高了 100 個基點；與去年相比，通脹成本去槓桿約10個基點，展望下半年，我們預計上半年的通脹去槓桿將轉向下半年的槓桿，因為我們受益於大宗商品成本的改善和海洋的改善運費； ROD佔銷售額的百分比目前計劃與去年相比去槓桿化約70個基點。

For the third quarter, we expect gross margin to be generally in line with last year's adjusted gross margin of 38.7%. We anticipate lower inflation and air costs, slightly below normalized levels, are expected to offset approximately 150 basis points of ROD deleverage, and we expect that promotional activity will be largely in line with last year.

對於第三季度，我們預計毛利率將與去年調整後的毛利率38.7%基本一致。我們預計通脹和航空成本下降（略低於正常水平）將抵消 ROD 去槓桿化約 150 個基點，並且我們預計促銷活動將與去年基本一致。

Turning to SG&A. We now expect fiscal 2023 SG&A of approximately $5.15 billion, below our prior outlook of $5.2 billion, primarily driven by variable expense flow-through on our narrowed fiscal 2023 sales. SG&A in the third quarter is expected to be approximately $1.3 billion. We continue to expect capital expenditures of approximately $500 million to $525 million for the year.

轉向SG&A。我們現在預計 2023 財年的銷售、管理及行政費用約為 51.5 億美元，低於我們之前預期的 52 億美元，這主要是由於我們 2023 財年銷售額收窄的可變費用流量所致。第三季度的SG&A 預計約為13 億美元。我們仍然預計今年的資本支出約為 5 億至 5.25 億美元。

In closing, we're pleased to drive meaningful margin expansion and strong cash flow generation in the quarter and remain focused on delivering our fiscal 2023 outlook despite what continues to be a choppy consumer environment. I'm looking forward to working with Richard and the team as we unlock the value of our important and iconic brands and position Gap Inc. back on its path towards sustainable, profitable growth and delivering value for our shareholders over the long term.

最後，我們很高興在本季度推動有意義的利潤率擴張和強勁的現金流生成，並繼續專注於實現我們的 2023 財年前景，儘管消費環境仍然不穩定。我期待著與理查德和他的團隊合作，釋放我們重要和標誌性品牌的價值，並使 Gap Inc. 重新走上可持續、盈利增長的道路，並為我們的股東提供長期價值。

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

至此，我們將開始提問。操作員？

(Operator Instructions) Our first question will come from Matthew Boss with JPMorgan.

（操作員說明）我們的第一個問題將來自摩根大通的 Matthew Boss。

So maybe a two-part question. Richard, could you elaborate on the encouraging signs of progress that you see across the organization and maybe just as we think about opportunity for your concepts to take market share over time?

所以也許是一個由兩部分組成的問題。理查德，您能否詳細說明您在整個組織中看到的令人鼓舞的進步跡象，也許就像我們在考慮您的概念隨著時間的推移佔據市場份額的機會一樣？

And then Katrina, maybe just any way to elaborate on trends that you saw progress as the second quarter move forward and maybe what you're seeing today in terms of consumer behavior in August and into back-to-school.

然後卡特里娜颶風，也許可以用任何方式來闡述您在第二季度前進時看到的進展趨勢，也許您今天在八月和返校期間的消費者行為方面看到了什麼。

Well, first off, thank you, Matthew, for the question. And I'll start with saying again how excited I am to be here on my third day. What I can tell you in the context of where we are, first and foremost, is that these brands are incredible assets, Gap, Navy, Banana Republic, Athleta, these are truly some of the most iconic brands in the fashion industry. We serve such a broad-based consumer, which is such a strength as well, generations and backgrounds. We've got incredible storied legacies, 54-year-old history. We created massive trends.

嗯，首先，謝謝馬修提出的問題。首先我要再說一遍，第三天來到這裡我感到多麼興奮。在我們所處的背景下，我首先可以告訴你的是，這些品牌都是令人難以置信的資產，Gap、Navy、Banana Republic、Athleta，這些確實是時尚界最具標誌性的品牌。我們為如此廣泛的消費者提供服務，這也是我們的優勢、世代和背景。我們擁有令人難以置信的傳奇遺產和 54 年的歷史。我們創造了巨大的趨勢。

When I look at the strength across the portfolio, as I mentioned in my opening remarks, we're the #1 specialty apparel company in America: the scale that we operate with, 600 million store visits, 1.4 billion online visits; the scaled operations we have from our DC network and logistics; our vendor partnerships, which can provide us incredible favorable rates and service; our production, we produced over 900 million units annually. The stats and strength of the fundamentals of this business are pretty incredible.

當我審視整個投資組合的實力時，正如我在開場白中提到的，我們是美國排名第一的專業服裝公司：我們的經營規模，6 億次的商店訪問量，14 億次的在線訪問量；我們通過配送中心網絡和物流實現的規模化運營；我們的供應商合作夥伴關係，可以為我們提供令人難以置信的優惠價格和服務；我們的生產，我們每年生產超過 9 億件。該業務的統計數據和基本面實力非常令人難以置信。

Clearly, the transformation work that the team has done has put us on incredibly better financial footing. As Katrina mentioned, again, $1.4 billion in cash on hand in the balance sheet, $300 million of cash flow, 30% less inventory, these are metrics that matter and, ultimately, metrics that are incredibly encouraging in the context of our ability to build upon it and continue it and go forward.

顯然，團隊所做的轉型工作使我們的財務基礎更加良好。正如卡特里娜颶風再次提到的，資產負債表中現有14 億美元現金、3 億美元現金流、庫存減少30%，這些都是重要的指標，並且最終，在我們構建能力的背景下，這些指標非常令人鼓舞。繼續它並繼續前進。

As I also mentioned, part two to the question in terms of where are the opportunity is, these are brands that truly matter. Now as I also said, they can matter more. And how to do that, I talk about reigniting the creative culture at Gap. We have extraordinary talent here. We are going to not only encourage the great talent to be unlocked in new and innovative ways, but we're also going to become a magnet for the industry's best talent. We are going to work very specifically, with intent, on creating distinctive brand purposes and, ultimately, really driving a consumer proposition that sets us apart from the competition and really leveraging, if you will, the art and science of this business, informed by consumer insights but, ultimately, really obsessing over the consumer.

正如我還提到的，關於機會在哪裡的問題的第二部分，這些是真正重要的品牌。現在正如我也說過的，它們可以更重要。至於如何做到這一點，我會談到重新點燃 Gap 的創意文化。我們這裡擁有非凡的人才。我們不僅會鼓勵以新的創新方式釋放優秀人才，而且還將成為吸引行業最優秀人才的磁石。我們將非常具體地、有目的地致力於創造獨特的品牌目標，並最終真正推動消費者主張，使我們在競爭中脫穎而出，並真正利用（如果你願意的話）這項業務的藝術和科學，消費者洞察，但最終還是真正著迷於消費者。

There's a lot of work ahead, but I'm incredibly encouraged, with 3 days in, around what we can offer and where we're going ahead. And obviously, in the days ahead, quarters ahead as well, we'll get more details. And I look forward to sharing that with you.

前面還有很多工作要做，但在 3 天的時間裡，我對我們可以提供的服務以及我們的前進方向感到非常鼓舞。顯然，在未來幾天，以及未來幾個季度，我們將獲得更多細節。我期待與您分享這一點。

Thanks, Richard. And Matthew, I think on your other part of your question, we saw sequential improvement throughout the quarter in where in July, we definitely saw more improvement than we had seen sort of in May and June. I think that mirrored a lot of what apparel showed overall. And we've seen that improvement continue into August, which we're encouraged by. Overall, what we're seeing is that the women's business, particularly at Gap and Old Navy, has shown momentum shift. And kids and baby, as we're in the important back-to-school period, has also started off fairly well. So all of that is encouraging to see.

謝謝，理查德。馬修，我認為關於你問題的另一部分，我們在整個季度中看到了連續的改善，在 7 月份，我們肯定看到了比 5 月和 6 月看到的更多的改善。我認為這反映了服裝的整體表現。我們看到這種改善持續到八月份，對此我們感到鼓舞。總體而言，我們看到女裝業務，尤其是 Gap 和 Old Navy，已經出現了動力轉變。由於我們正處於重要的返校時期，孩子和嬰兒的開局也相當不錯。所以所有這些都是令人鼓舞的。

And then, as I said in my prepared remarks, we're mindful, though, of the fact that we've seen the consumer still be pressured, especially at the low income range. And we're watchful of what I think is widely reported as the student loan repayment coming in the end of the quarter, which does primarily impact our Old Navy consumer.

然後，正如我在準備好的發言中所說，我們注意到消費者仍然面臨壓力，特別是在低收入範圍。我們正在關注我認為廣泛報導的學生貸款償還將在本季度末進行的情況，這確實主要影響了我們的老海軍消費者。

That's great color. Welcome aboard, Richard.

那顏色真棒。歡迎登機，理查德。

Thank you.

謝謝。

Our next question comes from Paul Lejuez with Citi.

我們的下一個問題來自花旗銀行的 Paul Lejuez。

Richard, you've been on the Board, so obviously, in touch with what's been going on operationally, to some extent. So I'm curious what you think might be the lowest-hanging fruit as you think about each of the brands. Also curious, a big organization, you talked about scale. Profitability doesn't quite match the efficiencies you would expect with such scale. So I'm curious what you think are the biggest inefficiencies of the company.

理查德，顯然，您一直是董事會成員，在某種程度上了解運營中發生的事情。所以我很好奇，當您考慮每個品牌時，您認為最容易實現的目標是什麼。同樣好奇的是，一個大組織，你談到了規模。如此規模的盈利能力與您所期望的效率並不完全相符。所以我很好奇你認為公司最大的低效率是什麼。

Yes. Thanks, Paul. Look, broadly speaking, it's about really reigniting Gap Inc.'s culture to really empower creativity. In my experience on the Board and, certainly, on the ground for 3 days running fast, our teams are incredibly creative and they're all in on this. They're differentiating and strengthening our brands, being design-centric, being customer-obsessed and, ultimately, being culturally relevant. These are not necessarily new phrases and their common language, but these are the areas that we need to work upon and reignite and, ultimately, really think about how our brands show up in store, online, with consumer experiences that really excite and attract, drive demand and all of the variables that go into kind of balancing wants and needs. That, ultimately, is kind of where fashion lies.

是的。謝謝，保羅。從廣義上講，這是為了真正重新點燃 Gap Inc. 的文化，真正賦予創造力。根據我在董事會的經驗，當然還有在現場快速運行的 3 天，我們的團隊非常有創造力，他們都致力於此。他們正在區分和強化我們的品牌，以設計為中心，以客戶為中心，並最終與文化相關。這些不一定是新的短語和共同語言，但這些是我們需要努力和重新點燃的領域，並最終真正思考我們的品牌如何在商店、網上展示，並提供真正令人興奮和吸引的消費者體驗，推動需求以及平衡需求的所有變量。最終，這就是時尚所在。

When I think about our brands in the context of opportunity, brands that have the kind of strength that we do, brands that matter, can be monetized. We need to make these brands matter more. And ultimately, that is going to be the pursuit. When I look at the strengths of the business, it is incredibly encouraging. That being said, we have work to do. We've started this transformation work under Bobby's leadership, and the team has worked tirelessly to make extraordinary progress. But we will continue not only the transformation that we've begun but we will start to build upon it and really unlock the value of these brands. We can all agree that there is greater value in the portfolio than is showing up in the stock today. And with the consistent performance that we expect, we're going to get rewarded for that. And ultimately, that's going to start with really driving demand, exciting our consumers and mattering more. And we'll be back very shortly to share how we're going to reveal all of that and continue moving forward.

當我在機會的背景下思考我們的品牌時，那些擁有我們這樣的實力、重要的品牌可以被貨幣化。我們需要讓這些品牌變得更重要。最終，這將成為我們的追求。當我看到該業務的優勢時，這是令人難以置信的鼓舞。話雖這麼說，我們還有工作要做。我們在 Bobby 的領導下開始了這項轉型工作，團隊經過不懈努力，取得了非凡的進展。但我們不僅會繼續已經開始的轉型，而且會在此基礎上繼續發展，真正釋放這些品牌的價值。我們都同意，投資組合的價值比今天股票的價值更大。憑藉我們期望的一致表現，我們將因此獲得回報。最終，這將從真正推動需求、激發消費者興趣並變得更重要開始。我們很快就會回來分享我們將如何揭示所有這些並繼續前進。

Okay. Can you just talk about what changed in your gross margin assumption for the back half of the year, which pieces moved as a result of what you've seen first half to date and what you're seeing thus far in the third quarter?

好的。您能否談談今年下半年的毛利率假設發生了什麼變化，哪些部分是由於您上半年迄今為止所看到的以及第三季度迄今為止所看到的而發生變化的？

Yes, absolutely, Paul. So in second quarter, overall, the gross margin in total came in very close to -- I think the words we had used, to get you guys close to the margin we just delivered. There was a little bit of a shift between the inflationary pressure, which was better, came in at about 140 basis points of headwind. We had thought it would be closer to 200. And that was really because we saw rates in the freight area get better through some negotiations we just finished with some of our big suppliers and where we saw the margin get a little worse within ROD, where we deleveraged more since we came in at the lower end of our sales range in the quarter. So that dynamic plays through to the year where, again, the overall guide on the full year margin is basically intact.

是的，絕對是，保羅。因此，總體而言，第二季度的總毛利率非常接近——我認為我們使用的詞語是為了讓你們接近我們剛剛交付的利潤率。通脹壓力略有變化，情況較好，逆風壓力約為 140 個基點。我們原以為會接近200。這實際上是因為我們通過剛剛與一些大型供應商完成的一些談判看到貨運領域的費率變得更好，並且我們看到ROD 內的利潤率變得更差，其中自從我們進入本季度銷售範圍的下限以來，我們加大了去槓桿化力度。因此，這種動態一直持續到今年，全年利潤率的總體指導基本上完好無損。

Air is still about 200 basis points of benefit, but we now see less impact from inflation, so only 10 basis points versus, what we had prior said, 50 basis points of headwind. And then the offset there is ROD where we now expect 70 basis points of deleverage whereas we had said somewhere between 0 and 50. So it's really this inflationary benefit offset by ROD deleverage, but overall, the nominal guide is very similar.

空氣仍然有大約 200 個基點的好處，但我們現在看到通脹的影響較小，因此只有 10 個基點，而我們之前說過，有 50 個基點的逆風。然後是ROD 的抵消，我們現在預計去槓桿化為70 個基點，而我們之前說過在0 到50 之間。所以這實際上是ROD 去槓桿化抵消了通脹收益，但總體而言，名義指導非常相似。

And the promotional level is different than what you expected, you're softening your assumptions?

而且促銷水平與你的預期不同，你正在軟化你的假設嗎？

We came in very close in the second quarter to what we expected on promotions. And overall, we're holding the full year to about 100 basis points of overall leverage coming out of that promotional guide. And for the third quarter, what we said is we expect promotions to be about flat. So we'll see. Obviously, we came in with inventories down 29%; markdown inventory well under control. And the teams are excited to have chase capability back after the supply disruption that we experienced for so long. So we'll aspire to do better. But right now, that's what's embedded in the guide.

我們在第二季度的促銷活動非常接近我們的預期。總體而言，根據該促銷指南，我們將全年整體槓桿率維持在 100 個基點左右。對於第三季度，我們預計促銷活動將持平。所以我們拭目以待。顯然，我們的庫存下降了 29%；降價庫存得到很好的控制。在我們經歷了這麼長時間的供應中斷之後，團隊很高興能夠恢復追踪能力。所以我們會立志做得更好。但現在，這就是指南中嵌入的內容。

(Operator Instructions) Your next question comes from Alex Straton with Morgan Stanley.

（操作員說明）您的下一個問題來自摩根士丹利的 Alex Straton。

Welcome, Richard. Katrina, maybe this is best for you. it looks like Old Navy has yet to inflect, though we are seeing some other value-oriented businesses pulling that off, it seems, in this quarter. So can you talk to me about what's going on there? Are you seeing any green shoots outside of women? I feel like we've had that maybe for a couple of quarters now. And then how do you think about the time line to improvement?

歡迎，理查德。卡特里娜，也許這對你來說是最好的。看起來老海軍還沒有改變，儘管我們看到其他一些以價值為導向的企業似乎在本季度實現了這一目標。那麼你能跟我談談那裡發生了什麼事嗎？你在女性之外看到過任何萌芽嗎？我覺得我們可能已經經歷了幾個季度了。那麼您如何看待改進的時間線？

Yes, it's a great question, Alex. So when I look at what's been happening at Old Navy, I think what's been consistent is what we've been calling out, which is they do have a low-income consumer that remains pressured. And so that dynamic hasn't necessarily changed. When I look at what happened in Q2, though, lapping last year's significant clearance of active product, in particular, really weighed on the performance.

是的，這是一個很好的問題，亞歷克斯。因此，當我看到 Old Navy 發生的事情時，我認為我們一直呼籲的始終如一，那就是他們確實有一個低收入消費者仍然面臨著壓力。因此，這種動態不一定會改變。然而，當我看看第二季度發生的情況時，尤其是去年活躍產品的大幅清倉，確實對業績造成了壓力。

If you remember last year, in Old Navy, we were in the process of really rightsizing the assortment away from cozy casual. We had a lot of the sizing issues. So lapping that has really weighed on the revenue side of things. As we move into the second half, we are seeing the active business improve modestly. Women's is getting better and kids is looking better as well. So we'll see where that all lands us. But yes, we are seeing green shoots at Old Navy. I think all of those categories we aspire to have getting better. Again, the consumer pressure is most acute at Old Navy, and that's the piece that I think we all remain cautious on. Whether it's the low-income consumer starting to get real wage pressure from inflation or whether it's the new student loan dynamic, we'll see how that plays out for Old Navy.

如果你還記得去年，在 Old Navy，我們正在真正調整產品種類，遠離舒適的休閒裝。我們遇到了很多尺寸問題。因此，研磨確實對收入方面造成了壓力。隨著進入下半年，我們看到活躍業務略有改善。女裝越來越好，孩子們也越來越好看。所以我們會看看這一切會將我們帶向何方。但是，是的，我們看到了 Old Navy 的萌芽。我認為我們渴望變得更好的所有這些類別。同樣，Old Navy 的消費者壓力最為嚴重，我認為我們都對此保持謹慎態度。無論是低收入消費者開始受到通貨膨脹帶來的實際工資壓力，還是新的學生貸款動態，我們將看看老海軍的情況如何。

Our next question comes from Lorraine Hutchinson with Bank of America.

我們的下一個問題來自美國銀行的洛林·哈欽森 (Lorraine Hutchinson)。

Katrina, as you think about the mid-single-digit decline in sales guidance for the year, it does imply a nice improvement in fourth quarter, can you just talk about how you've been thinking about that improvement? What drives it outside of the 53rd week, of course, and how you're getting comfortable with that level of improvement from here?

卡特里娜颶風，當您考慮今年銷售指導中個位數的下降時，這確實意味著第四季度的良好改善，您能談談您是如何看待這種改善的嗎？當然，在第 53 週之後，是什麼推動了它的發展？從現在開始，您對這種程度的改進感到滿意嗎？

Yes. So Lorraine, you're correct that the fourth quarter does have some benefit from the 53rd week. But in addition to that, I know we're all tired of looking back at 2019, but I just sort of look at the run rate in the business from the first half to the back half versus 2019, and the quarters, Q3 and Q4, are very similar to what we just sort of went through. So I think there's a lot of quarterly variation that we have seen over the last couple of years. Fourth quarter, when you look back to 2019, looks more similar to history.

是的。 Lorraine，您認為第四季度確實從第 53 周中獲益是正確的。但除此之外，我知道我們都厭倦了回顧 2019 年，但我只是看看與 2019 年相比，上半年到下半年的業務運行率，以及季度、第三季度和第四季度，與我們剛剛經歷的非常相似。所以我認為過去幾年我們看到了很多季度變化。當你回顧 2019 年時，第四季度看起來更接近歷史。

Our next question comes from Jonna Kim with TD Cowen.

我們的下一個問題來自 Jonna Kim 和 TD Cowen。

Just a question on Athleta, sort of how you're thinking about turning around the brand and getting the brand back from growth over time and just be competitive in the market?

只是關於 Athleta 的問題，您如何考慮扭轉品牌並讓品牌隨著時間的推移恢復增長並在市場上保持競爭力？

Yes, I'll take that. And I mean, Richard, of course, I welcome your view as well, but maybe I'll start, and then you can say a little bit more. As I said in my prepared remarks, we feel really good about Athleta's positioning in the marketplace. The power of she positioning is incredibly strong. And we feel like we have a lot of white space in that brand to win. We knew we had some near-term product execution issues, which the team, as I said, has been heads down working on.

是的，我會接受的。我的意思是，理查德，當然，我也歡迎你的觀點，但也許我會開始，然後你可以多說一點。正如我在準備好的發言中所說，我們對 Athleta 在市場中的定位非常滿意。她的定位力量非常強大。我們覺得這個品牌有很多空白空間可以贏得勝利。我們知道我們遇到了一些近期的產品執行問題，正如我所說，團隊一直在埋頭解決這些問題。

For fall, there's not a lot of change to the product that the teams have been able to do, but they've been remerchandising the stores and the site and, hopefully, if you're a consumer, you see that it looks much more in line with the brand aesthetic. And then we are excited to welcome a few new players to the team, whether it's Chris or Julia, who we think will also bring their experience to bear on the brand starting in fourth quarter and then really into next year. So we're very excited about Athleta's potential long term, and we know we're just sort of going to get through the next quarter or 2 as we make the changes we can to the assortment we have.

對於秋季，團隊能夠對產品做的改動並不多，但他們一直在重新推銷商店和網站，希望如果你是消費者，你會發現它看起來更漂亮了。符合品牌審美。然後，我們很高興地歡迎一些新成員加入團隊，無論是克里斯還是朱莉婭，我們認為他們也將從第四季度開始，然後真正進入明年，將他們的經驗帶入品牌。因此，我們對 Athleta 的長期潛力感到非常興奮，而且我們知道，隨著我們對現有的品種進行盡可能的改變，我們將在下一個或兩個季度中度過。

But Richard, I'll let you add if there's something else.

但是理查德，如果還有其他問題，我會讓你補充。

Yes. Thanks, Katrina. As a member of the Board, I had a chance to get to know Chris and help select him for this role. He's an exceptional talent, broad-based experience across the apparel retail and wholesale industries, holding roles across multiple functions. As the recent President of Alo Yoga, he was really able to successfully and quickly grow that brand, nearly doubling its year-over-year growth, and with extraordinary expertise in performance apparel. So as Katrina called out, we couldn't be more enthusiastic about the team that Chris is leading and their recent efforts, and we're really looking forward to the accelerated progress that we intend on making with this brand.

是的。謝謝，卡特里娜。作為董事會成員，我有機會認識克里斯並幫助選擇他擔任這一職位。他是一位傑出的人才，在服裝零售和批發行業擁有廣泛的經驗，擔任過多個職務。作為 Alo Yoga 的新任總裁，他確實能夠成功、快速地發展該品牌，其同比增長幾乎翻倍，並且在功能性服裝方面擁有非凡的專業知識。因此，正如卡特里娜 (Katrina) 所說，我們對克里斯領導的團隊以及他們最近的努力充滿熱情，我們非常期待我們打算在這個品牌上取得的加速進展。

Our next question comes from Bob Drbul with Guggenheim Securities.

我們的下一個問題來自古根海姆證券公司的鮑勃·德布爾。

I guess, Richard, for you, when you look at the -- you talked about Chris. But when you look at the team that you have in place, having been on the Board, I think you understand their vision. Should we assume there are no further management changes necessary at a very senior level as you look at the portfolio?

我想，理查德，對你來說，當你看到——你談到了克里斯。但是，當你看看你所擁有的董事會成員團隊時，我認為你理解他們的願景。當您查看投資組合時，我們是否應該假設非常高層不需要進一步的管理變動？

Yes. Thanks, Bob, for the question. I've been on the Board since last year when much of the work began taking root and I feel I could really hit the ground running. That said, it's early. I'm focused on listening and learning. We really do have a very strong team. I only see it getting stronger. So in the context of, let's call it, Board tenure and now, obviously, 3 days in, from what I feel and see in the context of being on the ground, I'm very encouraged. The work that the team has done around the transformation has really toiled the soil, if you will, in the context of my entrance and really feel like the baton being handed is strong. So with that said, we'll share a lot more in the coming quarters around where we're headed, how we're going to get there and, ultimately, much more detail associated with it, but early days, I'm very encouraged.

是的。謝謝鮑勃提出的問題。自去年以來，我一直在董事會任職，當時大部分工作開始紮根，我覺得我可以真正開始工作。這麼說來，還早呢。我專注於傾聽和學習。我們確實擁有一支非常強大的團隊。我只看到它變得更強。因此，在我們稱之為董事會任期的背景下，顯然，現在已經過去 3 天了，從我在實地的感受和所見來看，我感到非常鼓舞。如果你願意的話，在我進入的背景下，團隊圍繞轉型所做的工作確實非常辛苦，並且真的感覺手中的接力棒很強大。因此，話雖這麼說，我們將在接下來的幾個季度中分享更多關於我們的發展方向、我們將如何實現這一目標以及最終與之相關的更多細節，但在早期，我非常鼓勵。

Great. And Katrina, if I could just sneak a second one in for you. In terms -- you made some progress on the SG&A. I know there's been some discussion around potential for further cuts. Is there any sort of further idea on additional opportunities as you look at the SG&A line going forward?

偉大的。還有卡特里娜颶風，如果我能為你偷偷送第二顆就好了。就SG&A 而言，您取得了一些進展。我知道有一些關於進一步削減的可能性的討論。當您考慮未來的 SG&A 線時，對於額外的機會有什麼進一步的想法嗎？

Yes. It's a good question, Bob. I mean, when we look at the work we've done, we've impacted about $550 million of cost in the business, whether it's the actions we took early last fall that have helped offset some of the inflationary pressure this year or whether it's the overhead actions we just took that we think will generate $300 million cost. So I think you've heard both Bobby and Richard say that we're happy with a lot of this work we've done to set the foundation. The remaining SG&A work, I think, is to be seen. A lot of it is on some of the demand-generating investments we've made, marketing and technology, where I think Richard and I will really partner on assessing whether we think those are adding the value that we think they need to add or whether there are some refinements we can make there. And that's the next leg of the journey, for us to see how we would, if we would, really moderate those in the next coming quarters. So more to come, but those are the areas, I think, consistent with what we've been saying that we would look at.

是的。這是個好問題，鮑勃。我的意思是，當我們審視我們所做的工作時，我們已經影響了大約 5.5 億美元的業務成本，無論是我們去年秋初採取的有助於抵消今年部分通脹壓力的行動，還是我們認為剛剛採取的管理措施將產生3 億美元的成本。所以我想你已經聽到鮑比和理查德說我們對我們為奠定基礎所做的大量工作感到滿意。我認為剩下的SG&A 工作還有待觀察。其中很大一部分是在我們所做的一些產生需求的投資、營銷和技術方面，我認為理查德和我將真正合作評估我們是否認為這些投資正在增加我們認為需要增加的價值，或者是否我們可以在那裡做一些改進。這是旅程的下一站，讓我們看看如果我們願意的話，我們將如何在接下來的幾個季度真正調整這些措施。未來還會有更多，但我認為這些領域與我們一直所說的我們將要關注的領域是一致的。

Our next question comes from Corey Tarlowe with Jefferies.

我們的下一個問題來自 Jefferies 的科里·塔洛 (Corey Tarlowe)。

Welcome, Richard. You mentioned in your prepared remarks about how you're rethinking about how the brands show up in-stores and online. So I'd just be curious to kind of get your thoughts, and again, having been on the Board since November, your thoughts around kind of the store fleet and how to profitably leverage the store fleet to drive further sales ahead. And then just Katrina, just wanted to get your thoughts around, and apologies if I missed it, on promotions in the second half of this year.

歡迎，理查德。您在準備好的評論中提到您正在如何重新思考品牌在商店和網上的展示方式。因此，我很想了解您的想法，並且自 11 月以來我一直在董事會任職，您對商店隊伍的類型以及如何利用商店隊伍以有利可圖的方式推動進一步銷售的想法。然後卡特里娜，只是想了解一下您對今年下半年促銷活動的想法，如果我錯過了，我們深表歉意。

Thanks, Corey. There's a lot in my opening remarks, and we can double-click on many of them. But in the context of the areas that I see the most opportunities, it's specific to really working on this distinctive brand purpose that aligns with our customer values and really sets them apart. As I talk about the brands and their legacies, I really -- these are brands that matter. And when you have brands that matter, they could be monetized. That being said, you have to make these brands matter more. That has to have great product, great marketing, great execution, and we really need to understand and be obsessed with our customer. I think that we have elements of it, but where we're going to really work very, very diligently on is creating meaningful differences in the context of our brands and making these brands matter more.

謝謝，科里。我的開場白有很多內容，我們可以雙擊其中的許多內容。但在我認為機會最多的領域，具體來說就是真正致力於實現這一獨特的品牌目標，該目標與我們的客戶價值觀相一致，並真正使他們與眾不同。當我談論品牌及其遺產時，我真的——這些品牌很重要。當你擁有重要的品牌時，它們就可以貨幣化。話雖這麼說，你必須讓這些品牌變得更重要。這必須有出色的產品、出色的營銷、出色的執行力，我們確實需要了解並關注我們的客戶。我認為我們已經具備了其中的要素，但我們真正要非常非常努力地工作的是在我們的品牌背景下創造有意義的差異，並使這些品牌更重要。

When you look at our stores, they need to reflect, if you will, the right narrative in the context of product statements that we believe are heroic, products that we believe will matter to our consumers, the right balance between basics and fashion, and an experience where details really come across to create an experience that consumers will talk about, want to return to and ultimately find, if you will, the value and quality and product experiences that are required today for brands that win. And that's what you're going to see us work much more diligently on. As transformations go, these things take time. But we will start to test and roll and really learn essentially what works and what doesn't in a more accelerated way so that we could do more of what works and do less of what doesn't. Lots more to come with lots more examples, and we'll share those as they evolve.

當您瀏覽我們的商店時，如果您願意的話，他們需要在我們認為英雄般的產品聲明中反映正確的敘述，我們認為對我們的消費者來說很重要的產品，基本款與時尚之間的適當平衡，以及這種體驗真正體現了細節，創造了一種消費者會談論、想要返回並最終找到（如果你願意的話）當今獲勝品牌所需的價值、質量和產品體驗的體驗。這就是您將看到我們更加努力工作的目標。隨著轉型的進行，這些事情需要時間。但我們將開始測試和滾動，以更快的方式真正了解什麼有效，什麼無效，這樣我們就可以做更多有效的事情，少做無效的事情。還有更多的例子，我們將隨著它們的發展而分享。

Yes. It's great, Richard. And I think, Corey, to answer your second question, we did see successful expansion of gross margin with lower promotional levels in the second quarter. So we saw about 200 basis points of margin expansion coming from lower discounting in the second quarter. Right now, in our outlook, we have basically a flat level of promotional activity in Q3. So as we talked about, we'll aspire to do better with the lower inventory levels and chase that we have. But we remain cautious on the consumer, and so we definitely want to make sure that we're offering enough value to the consumer heading into the third quarter. So we'll see where that lands.

是的。太棒了，理查德。我認為，科里，回答你的第二個問題，我們確實看到第二季度促銷水平較低，毛利率成功擴大。因此，我們看到第二季度較低的折扣使利潤率擴大了約 200 個基點。目前，在我們看來，第三季度的促銷活動基本上持平。因此，正如我們所討論的，我們將渴望在較低的庫存水平和現有的追逐下做得更好。但我們對消費者仍然保持謹慎態度，因此我們肯定希望確保在第三季度為消費者提供足夠的價值。所以我們會看看它落在哪裡。

Our next question comes from Adrienne Yih with Barclays.

我們的下一個問題來自巴克萊銀行的 Adrienne Yih。

Richard, this is sort of a more philosophical question given you've only been there 3 days -- a year and then 3 days. So your tenure at Mattel was sort of similar in concept, sort of reinvigorate the core brands, restore growth and restore the position sort of as an industry leader. So I guess my question is, oftentimes, when you have a company that's been struggling, the creative team and all those assets get very safe, right, so they become very risk averse. And I'm just wondering, how do you create a culture of greater risk-taking and innovation such that, that creativity can kind of come to the forefront?

理查德，這是一個更具哲學性的問題，因為你只在那里呆了三天——一年，然後三天。所以你在美泰的任期在概念上有點相似，有點重振核心品牌，恢復增長並恢復行業領導者的地位。所以我想我的問題是，通常，當你的公司一直在苦苦掙扎時，創意團隊和所有這些資產都會變得非常安全，對吧，所以他們變得非常厭惡風險。我只是想知道，如何創造一種更具冒險精神和創新的文化，使創造力能夠脫穎而出？

Yes. Thank you for that question. It's a great question. There are a lot of parallels with my experience at Mattel and Gap Inc.'s business across many levels. And I'm here to architect and orchestrate; ultimately, to lead. And the parallel construction of where Mattel was and where Gap is, is very familiar: great assets, great talent; a moment where, to some extent, a lot of self-inflicted challenges, some within our control and some, ultimately, impacting our business and our industry; and ultimately, a phase that we are going to go through, which is really about unlocking the value of our brands through reigniting a creative culture.

是的。謝謝你提出這個問題。這是一個很好的問題。我在美泰 (Mattel) 和蓋璞 (Gap Inc.) 業務的多個層面上的經歷與我有很多相似之處。我來這裡是為了設計和策劃；最終，領導。美泰 (Mattel) 和蓋普 (Gap) 的平行結構是非常熟悉的：巨大的資產，巨大的人才；在某種程度上，這是許多我們自己造成的挑戰，有些在我們的控制範圍內，有些最終影響我們的業務和行業；最終，我們將要經歷的一個階段，實際上是通過重新點燃創意文化來釋放我們品牌的價值。

The balance of fundamental and/or fiscal responsibility and operational rigor, while you are driving a design-centric and creative culture, is the art and science of the leadership that you need to have in this business. It is a very familiar language. It's actually a very familiar model. And ultimately, you've got to be able to take swings that are calculated. Test, role, learn and scale and accelerate very, very quickly. That is a muscle that we will begin to exercise and strengthen. With the experience that I bring in the context of that type of leadership, I believe that that's going to add value very, very quickly. This is an organization that is really excited to unlock and reignite, if you will, creativity. And so I feel incredibly fortunate to be inheriting a business that, from a transformational perspective, has come through, if you will, a very heavy lift and is now delivering, if you will, a fertile ground for a design-led culture, creativity that, ultimately, will show up for consumers and the ability for us to make brands that matter, matter more.

當您推動以設計為中心的創意文化時，基本和/或財務責任與嚴格運營之間的平衡是您在該行業中需要具備的領導力的藝術和科學。這是一種非常熟悉的語言。這實際上是一個非常熟悉的模型。最終，你必須能夠進行經過計算的波動。測試、角色、學習、擴展和加速非常非常快。這是我們將開始鍛煉和加強的肌肉。憑藉我在此類領導力背景下帶來的經驗，我相信這將非常非常快地增加價值。如果你願意的話，這個組織非常樂意釋放和重新激發創造力。因此，我對能夠繼承一家企業感到非常幸運，從轉型的角度來看，它已經經歷了（如果你願意的話）非常沉重的提升，並且現在正在為以設計為主導的文化和創造力提供肥沃的土壤。最終，這將向消費者展示，並讓我們有能力打造更重要的品牌。

That's super helpful. Katrina, one quick one. Sorry, did you talk about shrink? When do you take your physicals? I think it's midyear, but I may be wrong. And is there anything to call out there of note?

這非常有幫助。卡特里娜颶風，快一點。抱歉，您談論的是收縮嗎？你什麼時候做體檢？我認為現在是年中，但我可能是錯的。有什麼值得注意的地方嗎？

Yes. Thanks, Adrienne. There's nothing notable to call out from us on shrink. We do full counts once a year, in the early part of the year, first quarter. We do, do partials in the second half of the year. And as of now, our shrink remains below pre-pandemic levels, and there's really nothing to call out. So shrink is, so far for us, not anything of note.

是的。謝謝，艾德麗安。我們的心理醫生沒有什麼值得注意的地方。我們每年都會在年初、第一季度進行一次全面統計。我們會在下半年做部分工作。截至目前，我們的心理醫生仍低於大流行前的水平，確實沒有什麼值得指出的。所以到目前為止，對我們來說，收縮並不是什麼值得注意的事情。

Okay. Best of luck, and welcome.

好的。祝你好運，歡迎光臨。

Thank you.

謝謝。

Our next question comes from Dana Telsey with Telsey Group.

我們的下一個問題來自 Telsey Group 的 Dana Telsey。

Welcome, Richard. Just following up, Richard, in terms of some of the thoughts to what you've done in the past. I've read some of the articles about how you put together the thoughts on brand relevance of 4 points: why do we exist, design-led innovation, culturally relevant and execute with excellence. How do you look at those initiatives or those topics in comparison to Gap and your initial thoughts on reinventing and rearchitecting the business model in any way.

歡迎，理查德。理查德，只是跟進一下你對過去所做的事情的一些想法。我讀過一些關於如何將品牌相關性的想法整合到四點的文章：我們為什麼存在、設計主導的創新、文化相關性和卓越執行。與 Gap 相比，您如何看待這些舉措或主題，以及您對以任何方式重塑和重新構建業務模式的初步想法。

And then, Katrina, I just wanted to follow up on, as you think about 2024 and planning, how are you thinking about inventories for the back half of the year and into next year?

然後，卡特里娜，我只是想跟進一下，當您考慮 2024 年和規劃時，您如何考慮下半年和明年的庫存？

Dana, thank you for the study of my background and playbook at Mattel. My experience in turning brands around and accelerating performance, it goes beyond the development of a playbook but really rallying teams to deliver on a plan, ensuring operational rigor and enabling a culture to execute with excellence. In the context of that methodology, when you look at Gap brands, these are beloved brands. They have a real connection with consumers, and we need to reignite that connection. I'm passionate about motivating teams to uncover what made a brand or a company iconic and special in the first place and then working together to reinvigorate them to new relevance.

達納（Dana），感謝您研究我在美泰的背景和策略。我在扭轉品牌和加速績效方面的經驗，它不僅僅是製定劇本，而是真正團結團隊來執行計劃，確保運營的嚴謹性並實現卓越的文化執行。在這種方法論的背景下，當你觀察 Gap 品牌時，你會發現這些都是深受喜愛的品牌。他們與消費者有著真正的聯繫，我們需要重新點燃這種聯繫。我熱衷於激勵團隊首先發現是什麼讓一個品牌或一家公司具有標誌性和特殊性，然後共同努力，使他們重新煥發新的活力。

So the familiarities in the context of the work and legacy brands revitalization methodologies are familiar and similar. That being said, the playbook that we will reveal, that will be the strength and the consideration set to reignite the Gap portfolio, will be one that we've collectively work on as a team as I listen, learn, spend time with our stores, our headquarters, DCs, partners and really start to understand, ultimately, what will be the Gap playbook that will deliver, ultimately, to our consumers, our people and our shareholders, and we'll be back shortly to be able to share all of that.

因此，工作背景和傳統品牌振興方法的熟悉程度是熟悉且相似的。話雖這麼說，我們將透露的劇本，這將是重新點燃 Gap 產品組合的力量和考慮因素，將是我們作為一個團隊在我傾聽、學習、花時間在我們的商店中共同努力的劇本。 、我們的總部、DC、合作夥伴，並真正開始了解，最終，Gap 的劇本將最終交付給我們的消費者、我們的員工和我們的股東，我們很快就會回來分享所有內容的。

And then, Dana, on inventory, we do expect that third quarter ending inventory will be very similar to the first half trends. And overall, more to come as we head into next year, but we expect to be running more and more on leaner inventory with receipts left open so that we can be more responsive to consumer demand closer in. And a lot of the transformational activity that we're working on is not only just reinstating the responsive levers that we've had but working closer with our vendor base to make sure that we have the right materials, the right logic with our vendors, to be closer to the consumer. So all of that helps us have leaner inventories and be more dynamic. So more to come on what those levers are going forward.

然後，達納，關於庫存，我們確實預計第三季度末庫存將與上半年趨勢非常相似。總體而言，隨著我們進入明年，還會有更多的事情發生，但我們預計將越來越多地依靠更精簡的庫存來運行，並保留未結的收據，以便我們能夠更快地響應消費者的需求。我們正在努力的不僅僅是恢復我們已有的響應槓桿，而是與我們的供應商基礎密切合作，以確保我們擁有正確的材料，與供應商的正確邏輯，從而更貼近消費者。因此，所有這些都有助於我們擁有更精簡的庫存並更具活力。這些槓桿的未來發展還有更多內容。

Our last question comes from the line of Brooke Roach with Goldman Sachs.

我們的最後一個問題來自布魯克·羅奇（Brooke Roach）與高盛的對話。

Welcome, Richard. I wanted to follow up on Old Navy. Can you elaborate on the competitive backdrop that you're seeing in the business today, particularly as Old Navy competes for that value-oriented customer who has options, both online and with other discounters. And are you seeing any benefits from a trade-down customer in your stores?

歡迎，理查德。我想跟進老海軍。您能否詳細說明一下您在當今行業中看到的競爭背景，特別是 Old Navy 正在爭奪價值導向的客戶，這些客戶在網上和其他折扣店都有選擇。您是否發現商店中的降價顧客有任何好處？

Yes, Brooke, I mean what we're seeing is that some of the brands that are really winning with our consumer are T.J. Maxx, Amazon, Shein, we're definitely seeing those businesses gaining share. And those compete with our customer. We're also seeing strong brands like Nike and Lulu and Adidas win, which tells us that great brands win in any economic environment. Old Navy has the benefit of being the #2 brand behind Nike. And so it is a big player in the branded space as well as being a retailer. So I'm thrilled to have Richard onboard with his experience in creating relevant brands. And that brand already has such a strong positioning. I think we have a lot to do there to keep winning in that space. So more to come there, but we're glad with their positioning, for sure.

是的，布魯克，我的意思是我們看到的是一些真正贏得消費者青睞的品牌是 T.J. Maxx、亞馬遜、Shein，我們肯定會看到這些企業的份額不斷增加。這些與我們的客戶競爭。我們還看到耐克、露露和阿迪達斯等強勢品牌獲勝，這告訴我們，偉大的品牌在任何經濟環境下都會獲勝。 Old Navy 的優勢在於成為僅次於 Nike 的第二大品牌。因此，它不僅是一家零售商，也是品牌領域的重要參與者。因此，我很高興理查德能憑藉他在創建相關品牌方面的經驗加入進來。該品牌已經擁有如此強大的定位。我認為我們還有很多工作要做，才能在這個領域繼續獲勝。所以還會有更多的人來到那裡，但我們當然對他們的定位感到高興。

On trade-down benefit, we're not currently seeing any trade-down benefit. That said, we're certainly positioned to add value to any consumer as we move forward since our goal is to have great fashion at a great value, but we're not seeing that yet.

關於折價優惠，我們目前沒有看到任何折價優惠。也就是說，隨著我們的前進，我們當然有能力為任何消費者增加價值，因為我們的目標是提供物超所值的時尚，但我們還沒有看到這一點。

If I could just follow up on one other topic, we've heard a number of companies this week address credit and card portfolios amidst some of the macro concerns that we're seeing in the environment broadly. Can you provide a brief update on how you're planning your credit business and what might be planned in your outlook for the rest of the year?

如果我可以繼續討論另一個話題，我們聽說本週許多公司在我們廣泛看到的環境中的一些宏觀擔憂中解決了信用卡和卡投資組合問題。您能否簡要介紹一下您如何規劃信貸業務以及今年剩餘時間的展望？

Yes, it's a good question, Brooke, and certainly, we're watching that, too. So any trends in credit card income that we see from industry reports or see within our own business are currently reflected in the outlook we provided today. We do see, same as the industry reports, loss rates increasing from the recent lows in '21 and '22. However, ours are not back to pre-pandemic levels yet. And we're working with our credit card provider to adjust our underwriting strategies to make sure we're mitigating risk of higher delinquencies while still providing our customers with flexibility. So we're actively monitoring the consumer environment. We're watching the impact to credit and all of the trends on the credit card customer, again, are in the outlook we just provided.

是的，這是一個很好的問題，布魯克，當然，我們也在關注這個問題。因此，我們從行業報告中看到的或在我們自己的業務中看到的信用卡收入的任何趨勢目前都反映在我們今天提供的前景中。我們確實看到，與行業報告一樣，損失率從 21 年和 22 年的近期低點開始上升。然而，我們的水平還沒有回到大流行前的水平。我們正在與信用卡提供商合作調整我們的承保策略，以確保我們在降低拖欠率較高的風險的同時仍然為我們的客戶提供靈活性。因此，我們正在積極監控消費者環境。我們正在關注對信貸的影響，以及信用卡客戶的所有趨勢，同樣，都在我們剛剛提供的前景中。

Great. Best of luck.

偉大的。祝你好運。

Thanks, Brooke.

謝謝，布魯克。

Thank you. We've reached the end of the question-and-answer session. And I'll now turn the call over to Richard Dickson for closing remarks.

謝謝。我們的問答環節已經結束了。現在我將把電話轉給理查德·迪克森（Richard Dickson）做總結髮言。

Thank you. I'd like to thank all of you for your time, your interest and your questions. And I just want to reiterate my belief in Gap Inc., our people, our brands and how truly thrilled I am to be the CEO of this extraordinary company. I also just want to thank the people of Gap Inc. for this incredibly warm welcome and to thank Bobby, in particular, for his tireless leadership over the past year and for igniting transformative work that I really am eager to pick up and run with. And all of you who joined the call today, I look forward to meeting all of you in the coming weeks and months, and thank you all for joining.

謝謝。我要感謝大家的時間、關注和提問。我只想重申我對 Gap Inc.、我們的員工、我們的品牌的信念，以及我對成為這家非凡公司的首席執行官感到非常興奮。我還要感謝 Gap Inc. 員工的熱情歡迎，特別是感謝 Bobby 在過去一年中孜孜不倦的領導以及激發了我真正渴望接手並開展的變革性工作。今天參加電話會議的所有人，我期待著在未來幾周和幾個月內與你們見面，並感謝大家的加入。

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

謝謝。我們的電話會議到此結束。您現在可以斷開連接。