蓋璞 (GPS) 2023 Q3 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. Third Quarter 2023 Earnings Conference Call. (Operator Instructions)

女士們、先生們，午安。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 年第三季財報電話會議。 （操作員說明）

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

現在我想介紹一下主持人，投資者關係總監 Emily Gacka。

Good afternoon, everyone. Welcome to Gap Inc.'s Third Quarter Fiscal 2023 Earnings Conference Call. 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 press release.

大家下午好。歡迎參加 Gap Inc. 2023 財年第三季財報電話會議。在開始之前，我想提醒您，本次電話會議中提供的資訊包含前瞻性陳述，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中包含的警示聲明新聞稿。

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.

該公司於 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。

These forward-looking statements are based on information as of today, November 16, 2023, and we assume no obligation to publicly update or revise our forward-looking statements. Joining me on the call today our Chief Executive Officer, Richard Dickson; and Chief Financial Officer, Katrina O'Connell.

這些前瞻性陳述是基於截至今天（2023 年 11 月 16 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。今天與我一起參加電話會議的是我們的執行長理查德·迪克森 (Richard Dickson)；和財務長卡特里娜·奧康奈爾。

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

這樣，我就把電話轉給理查。

Thank you for joining our third quarter earnings call. In the nearly 3 months since I joined Gap Inc. as CEO, I've hit the ground running, immersing myself in the business, assessing brands and functions, and meeting people in every corner of the company.

感謝您參加我們的第三季財報電話會議。自從我加入 Gap Inc. 擔任執行長以來的近 3 個月裡，我全身心投入到業務中，評估品牌和職能，並與公司各個角落的人會面。

I've met many of our customers and employees visiting stores across the country. I've also met with many of you, our shareholders, to hear your views and understand your perspectives and all of this has been incredibly insightful. Today, I'll share my initial observations and priorities. Then I'll hand it off to Katrina, who will walk you through more detailed financial results before we take questions. The four areas I'll discuss today are: one, maintaining and delivering operational and financial rigor; two, the reinvigoration of our brands; three, the strength and continued evolution of our operating platform; and four, reviving our culture. Let's start with maintaining operational and financial rigor.

我見過許多參觀全國各地商店的客戶和員工。我也會與你們中的許多人（我們的股東）會面，聽取你們的意見並了解你們的觀點，所有這些都非常有洞察力。今天，我將分享我的初步觀察和優先事項。然後我會將其交給卡特里娜，她將在我們回答問題之前向您介紹更詳細的財務結果。我今天要討論的四個領域是：一是維持和實現營運和財務的嚴謹性；二、品牌的復興；三、我們營運平台的實力和持續發展；第四，復興我們的文化。讓我們從保持營運和財務的嚴謹性開始。

As you know, this has been a core priority, and we've made significant progress, which has strengthened our financial footing. Examples of this work include actioning over $550 million in expected annualized cost savings, realizing margin expansion through lower air costs, improve discounting and more effective sourcing strategies combined with recovery of commodity costs, and we've reduced our inventory by nearly $800 million versus last year's peak.

如您所知，這是一個核心優先事項，我們已經取得了重大進展，增強了我們的財務基礎。這項工作的例子包括預計年化成本節省超過5.5 億美元，透過降低航空成本實現利潤擴張，改善折扣和更有效的採購策略，並結合商品成本的回收，我們的庫存比去年減少了近8 億美元年的高峰。

Our efforts to date have resulted in better working capital and a stronger balance sheet, and this discipline of controlling the controllables will continue to be a priority for us as we aim to increase the consistency of our performance both near and long term. Our focus on operational and financial rigor benefited our third quarter results, particularly in terms of improved margins, expenses and cash flow -- and I'll briefly review highlights for the quarter. Revenue was down 7% versus last year, with comp sales down 2%, ahead of expectations. We grew market share both overall and at Old Navy and Gap brand.

到目前為止，我們的努力已經帶來了更好的營運資本和更強大的資產負債表，控制可控因素的紀律將繼續成為我們的首要任務，因為我們的目標是提高近期和長期績效的一致性。我們對營運和財務嚴謹性的關注使我們第三季度的業績受益，特別是在利潤率、費用和現金流量方面的改善，我將簡要回顧一下本季度的亮點。營收比去年下降 7%，公司銷售額下降 2%，超出預期。我們的整體市佔率以及 Old Navy 和 Gap 品牌的市佔率均有所成長。

We expanded adjusted gross margin by 260 basis points, driven in part by improved promotional activities enabled by leaner inventory and better assortments. We maintained well-controlled expenses, resulting in an improved adjusted operating margin at 6.8%. And we ended the quarter with a strong cash balance of $1.4 billion, generating free cash flow of over $500 million year-to-date.

我們將調整後的毛利率擴大了 260 個基點，部分原因是精簡庫存和改善品種帶來的促銷活動改善。我們維持了良好的費用控制，調整後營業利潤率提高至 6.8%。本季結束時，我們擁有 14 億美元的強勁現金餘額，年初至今產生的自由現金流超過 5 億美元。

Old Navy delivered a positive 1% comp for the quarter, with momentum in women's driven in part by our active business, combined with strength in kids and baby during the back-to-school season. Gap brands saw strength in women's and baby. Comp sales for GAAP were down 1% in the quarter despite anniversary in the final quarter of easy sales last year.

Old Navy 本季實現了 1% 的正收益，其中女裝業務的成長勢頭部分得益於我們活躍的業務，再加上返校季期間兒童和嬰兒業務的強勁表現。 Gap 品牌在女裝和嬰兒用品領域表現強勁。儘管去年最後一季的銷售輕鬆，但本季以 GAAP 計算的比較銷售額仍下降了 1%。

Banana Republic comps were down 8% for the quarter as the brand undergoes deliberate and ongoing repositioning. Athleta's performance in the quarter was disappointing, with comps down 19% as we lap a period of heavy discounting last year. I will provide a more detailed update on our brands in a few minutes. Looking out to the full year. As we enter the fourth quarter, we have a balanced view of the holiday season.

由於 Banana Republic 品牌進行了深思熟慮且持續的重新定位，本季該公司的業績下降了 8%。 Athleta 本季的表現令人失望，由於去年經歷了大幅折扣期，公司業績下降了 19%。我將在幾分鐘內提供有關我們品牌的更詳細的更新。展望全年。隨著進入第四季度，我們對假期有一個平衡的看法。

Inventories are well controlled and our financial position is strong. However, we remain mindful of the uncertain consumer environment. We know that great brands can win regardless of the environment, and execution is everything. I'm working with our teams to react and respond in real time to consumer and competitive dynamics, ensuring our brands break through this season with relevant campaigns and touch points that matter. With the progress we achieved in the third quarter, and our measured expectations for the holiday season, we are comfortably affirming our full year revenue outlook and expect strong progress in our margin recovery. Katrina will provide more detail on the outlook in a moment.

庫存控制良好，我們的財務狀況強勁。然而，我們仍然關注不確定的消費環境。我們知道，無論環境如何，偉大的品牌都能獲勝，而執行力就是一切。我正在與我們的團隊合作，對消費者和競爭動態做出即時反應，確保我們的品牌透過重要的相關活動和接觸點在本季度取得突破。憑藉我們在第三季度取得的進展以及我們對假期的預期，我們輕鬆地肯定了全年收入前景，並預計利潤率恢復將取得強勁進展。卡特里娜颶風將立即提供有關前景的更多詳細資訊。

Let's turn to brand reinvigoration. Brand reinvigoration is about driving both relevance and revenue. Now it's early days, and our playbook is still in development, but I'll give you some insight into how we're thinking and where we're headed, brand by brand. Old Navy, Gap, Banana Republic and Athleta are all brands with incredible heritage. Brand reinvigoration will build on that heritage and will include a number of priorities. We need to strengthen our portfolio brands with crisp identities and purpose. We need to create trend-right product assortments with a clear point of view to deliver beyond just needs to also deliver [on] wants.

讓我們轉向品牌復興。品牌復興的目的是提高相關性和收入。現在還處於早期階段，我們的劇本仍在製定中，但我將逐個品牌地向您介紹我們的想法以及我們的發展方向。 Old Navy、Gap、Banana Republic 和 Athleta 都是擁有令人難以置信的傳統的品牌。品牌復興將建立在這項傳統的基礎上，並將包括一些優先事項。我們需要以清晰的身份和目標來強化我們的品牌組合。我們需要以清晰的觀點創造出順應潮流的產品組合，不僅滿足需求，也滿足需求。

We must consistently deliver merchandising presentations and product storytelling that excites our customers. We have to create a better, more engaging omnichannel experience with a clear and compelling pricing strategy. We have to communicate through innovative marketing to regain a powerful ongoing voice in the cultural conversation, and we need to do this while consistently executing with excellence at every touch point, and interaction. I've seen areas where our brands do this well, but I've also seen opportunities where they can do significantly better. It's not enough to get it right in 1 or 2 of these areas.

我們必須始終如一地提供讓客戶興奮的行銷簡報和產品故事。我們必須透過清晰且引人注目的定價策略來創造更好、更具吸引力的全通路體驗。我們必須透過創新行銷進行溝通，以在文化對話中重新獲得強大的持續話語權，並且我們需要在每個接觸點和互動上始終如一地執行卓越的同時做到這一點。我看到了我們的品牌在某些領域做得很好，但我也看到了他們可以做得更好的機會。僅在其中一兩個領域做好是不夠的。

Effective brand reinvigoration is about getting it right holistically and consistently. Execution will differ brand by brand, but that's a good overview of how we're thinking. With that backdrop, let's take a look at where our brands are today, some of the meaningful progress we're making and also the work ahead.

有效的品牌復興就是要全面且持續地做到正確。不同品牌的執行情況會有所不同，但這很好地概述了我們的想法。在此背景下，讓我們來看看我們的品牌目前的狀況、我們正在取得的一些有意義的進展以及未來的工作。

Beginning with Old Navy, the #2 apparel brand in the U.S. and the largest brand in our portfolio. Old Navy is a family destination with 94% U.S. brand awareness according to YouGov, a multibillion-dollar e-commerce business and an impressive retail footprint that includes more than 1,200 locations with 240 million customers entering our stores in the last year. We have a loyal following and a great brand heritage, rooted in fun, fashion and value for the whole family.

從 Old Navy 開始，它是美國排名第二的服裝品牌，也是我們產品組合中最大的品牌。根據YouGov 的數據，Old Navy 是一個家庭目的地，在美國擁有94% 的品牌知名度，這是一家價值數十億美元的電子商務企業，其零售足跡令人印象深刻，包括1,200 多個地點，去年有2.4 億顧客進入我們的商店。我們擁有忠實的追隨者和偉大的品牌傳統，植根於整個家庭的樂趣、時尚和價值。

Old Navy has a strong and distinctive brand positioning in the value space. However, the execution of that positioning is a significant opportunity. We need to be more deliberate and consistent about how we express the brand through bold and breakthrough narratives, something the brand is known for. We also have to improve our product assortments, balancing essentials with exciting new trends and a pricing strategy that clearly communicates jaw-dropping value.

Old Navy在價值空間中擁有強大而鮮明的品牌定位。然而，執行這一定位是一個重要的機會。我們需要更加審慎和一致地透過大膽和突破性的敘述來表達品牌，這是該品牌眾所周知的。我們還必須改進我們的產品種類，平衡必需品與令人興奮的新趨勢以及清晰傳達令人驚嘆的價值的定價策略。

All of this to remind customers why they love Old Navy and give them compelling reasons to love us even more. As we begin to execute the work around these initiatives, we were encouraged to see signs of progress in the third quarter. We created stronger product storytelling through a dedicated women's marketing campaign featuring on-trend product. We also improved site execution and online marketing with compelling creative and value messaging, all of which drove positive momentum and share gains in the quarter.

所有這些都是為了提醒顧客為什麼他們喜歡 Old Navy，並給他們令人信服的理由更愛我們。當我們開始圍繞這些舉措開展工作時，我們很高興看到第三季度取得進展的跡象。我們透過以流行產品為特色的專門女性行銷活動，創造了更強有力的產品故事。我們還透過引人注目的創意和價值訊息改進了網站執行和線上行銷，所有這些都推動了本季度的積極勢頭和份額增長。

Looking ahead to holiday, we believe the brand is ready to compete with high-quality inventory composition, offering consumers great fashion at a great value. Our efforts at Old Navy come down to unlocking and reasserting a great brand. Moving on to Gap. Gap brand, as you know, has tremendous heritage as a pop culture brand, that delivers, leads trends, celebrate individuality and self-expression. The brand enjoys 90% brand awareness among U.S. consumers, but lately, Gap has been far too quiet in the cultural conversation.

展望假期，我們相信品牌已準備好以高品質的庫存構成參與競爭，為消費者提供物超所值的時尚產品。我們在 Old Navy 的努力歸根結底是解鎖和重申一個偉大的品牌。繼續前往蓋普。如您所知，Gap 品牌作為流行文化品牌擁有悠久的傳統，傳遞、引領潮流、頌揚個性和自我表達。該品牌在美國消費者中享有 90% 的品牌知名度，但最近，Gap 在文化對話中顯得過於安靜。

We need to reignite that dialogue, offering confident trend right assortments, price right and express through big ideas and culturally relevant messaging. Our holiday campaign, which debuted October 23 is an early example of this.

我們需要重新點燃這種對話，提供自信的潮流品種、價格，並透過偉大的想法和文化相關的訊息進行表達。我們在 10 月 23 日推出的假期活動就是一個早期的例子。

It demonstrates creative consistency, building on brand heritage and championing originality with relevant individuals of style and substance, and I encourage you to check it out. A more inspiring and integrated creative narrative is also showing up online. And while we have much more work to do, it's great to see progress taking place as we work to reignite this iconic brand.

它展示了創意的一致性，建立在品牌傳統的基礎上，並與風格和實質相關的個人一起倡導原創性，我鼓勵您檢查一下。更具啟發性和綜合性的創意敘事也出現在網路上。雖然我們還有很多工作要做，但很高興看到我們在努力重振這個標誌性品牌的過程中取得了進展。

Now turning to Banana Republic. I'm encouraged by the team's vision, aesthetic direction and enhanced focus on fabrication and quality. And our Cashmere and leather product offering is translating well. While this repositioning is the right direction for the brand, there is work to do on execution.

現在轉向香蕉共和國。我對團隊的願景、美學方向以及對製造和品質的高度關注感到鼓舞。我們的羊絨和皮革產品產品轉化良好。雖然這種重新定位對於品牌來說是正確的方向，但在執行方面還有很多工作要做。

Comps are down as we continue to refine our assortment architecture, work on the brand's price/value equation and improved marketing and merchandising effectiveness. We think Banana Republic has an opportunity to thrive in the quiet luxury space and represents a unique position in our portfolio. This evolution will take time to manifest as we transition away from what was previously a highly promotional and transactional experience.

隨著我們持續完善我們的品類架構、研究品牌的價格/價值方程式以及提高行銷和銷售效率，比較價格有所下降。我們認為香蕉共和國有機會在安靜的奢侈品領域蓬勃發展，並在我們的投資組合中代表著獨特的地位。當我們從以前高度促銷和交易的體驗轉變時，這種演變需要一段時間才能顯現出來。

Now taking a look at Athleta, a brand with significant growth potential and the #5 brand in the highly attractive U.S. women's active segment. More so than any of our other brands, Athleta has a clear and distinctive brand positioning, rooted in the Power of She, an authentic and highly differentiated platform that plays extremely well across performance, outdoor and travel.

現在來看看 Athleta，這是一個具有巨大成長潛力的品牌，也是極具吸引力的美國女性活躍市場中排名第五的品牌。與我們的任何其他品牌相比，Athleta 擁有清晰而獨特的品牌定位，植根於 Power of She，這是一個真實且高度差異化的平台，在性能、戶外和旅行領域發揮著極其出色的作用。

As you know, the brand has gotten off track with challenged performance caused by a misfire on product, marketing that didn't resonate and retail execution that didn't connect with customers. In the first half of this year, the team took action, marking down products and cleaning up the brand to pave the way for long-term success. We utilized the third quarter to reset the baseline of the brand by eliminating off-brand fashion products and focusing on our key categories.

如您所知，由於產品失敗、行銷未能引起共鳴以及零售執行未能與客戶建立聯繫，該品牌已經偏離了正軌，業績受到挑戰。今年上半年，團隊採取行動，降價產品、清理品牌，為長期成功鋪路。我們利用第三季的時間，透過消除非品牌時尚產品並專注於我們的關鍵類別來重置品牌基準。

At the same time, we began to refresh store presentations and the brand's website to better delineate our active segment with narrative-based merchandising that pulls Athleta's focus back to its performance routes and winning platform. We are seeing early indications that customers are responding with positive NPS scores and positive sales growth in certain key products that we marketed in the new brand voice. Despite the favorable reaction to our cleaned up brand aesthetic, lapping last year's heavy discounting is weighing on performance.

同時，我們開始更新商店展示和品牌網站，透過基於敘事的推銷來更好地描繪我們的活躍細分市場，從而將 Athleta 的注意力拉回到其性能路線和獲勝平台上。我們看到的早期跡象表明，客戶對我們以新品牌形象行銷的某些關鍵產品的 NPS 得分呈正值，且銷售額呈正增長。儘管我們乾淨的品牌美學得到了良好的反應，但去年的大幅折扣正在影響業績。

We see this headwind continuing at least through the fourth quarter. That said, I'm encouraged by the brand execution of new digital dialogue, store experience and holiday product assortment. While we are progressing each quarter, we know that a full brand reset will require a more comprehensive approach and will take more time. Moving on to the third discussion area. We are continuing to strengthen our operating platform. We will build on and leverage operational capabilities to increase efficiency and support high-performing brands. In some areas, we are in good shape, but we have more work to do.

我們認為這種逆風至少持續到第四季。也就是說，我對新的數位對話、商店體驗和假日產品分類的品牌執行感到鼓舞。雖然我們每季都在取得進展，但我們知道，全面的品牌重置將需要更全面的方法，並且需要更多的時間。進入第三個討論區。我們正在繼續加強我們的營運平台。我們將建立並利用營運能力來提高效率並支持高績效品牌。在某些領域，我們狀況良好，但我們還有更多工作要做。

Our supply chain is a pillar of strength at Gap Inc., where our scale gives us unique cost leverage, but we need to accelerate innovation. Our financial strategy is driving early value but we need to continue our focus on rigor and efficiency. In technology, we made strategic investments, and now it's about optimizing those investments and driving adoption across the organization. In addition to these existing capabilities, media and marketing is another area where we can up our game. Leveraging the scale of our media spend to drive greater efficiency and effectiveness overall. And let me be clear, it's not about spending more, it's about getting more value from what we spend.

我們的供應鏈是 Gap Inc. 的實力支柱，我們的規模為我們提供了獨特的成本槓桿，但我們需要加速創新。我們的財務策略正在推動早期價值，但我們需要繼續關注嚴謹性和效率。在技​​術方面，我們進行了策略性投資，現在的重點是優化這些投資並推動整個組織的採用。除了這些現有的能力之外，媒體和行銷是我們可以提升競爭力的另一個領域。利用我們的媒體支出規模來提高整體效率和效果。讓我明確一點，這不是要花更多錢，而是要從我們的支出中獲得更多價值。

The fourth area I'd like to address today is culture. Culture is the bedrock of every successful company, particularly one that is creatively driven. And that's why I am laser focused on reviving a culture of creativity at Gap Inc., one that embraces change, is obsessed with our customer, relentlessly curious, highly collaborative and eager to imagine better led by the industry's best talent. More than an objective, culture is an everyday pursuit fueled by shared values and a belief system that unites us as one company. The intention is there.

我今天要談的第四個領域是文化。文化是每家成功公司的基石，尤其是那些以創意為驅動力的公司。這就是為什麼我全神貫注於復興Gap Inc. 的創造力文化，這種文化擁抱變革，痴迷於我們的客戶，具有不懈的好奇心，高度協作，並渴望在行業最優秀的人才的領導下更好地想像。文化不僅僅是一個目標，更是一種由共同價值觀和信仰體系推動的日常追求，將我們團結為一個公司。意圖就在那裡。

I see it, but we've got to better articulate it and then own it, building on our story past to create an even more vibrant future.

我明白了，但我們必須更好地闡明它，然後擁有它，在我們過去的故事的基礎上創造一個更充滿活力的未來。

In summary, it's impossible to ignore the impressive scale of Gap Inc. We have $4 billion brands with nearly 2,600 company-operated stores and 1.4 billion visits to our websites every year. And we have 58 million known active customers who rely on us for fashion that both functions and makes them feel good.

總而言之，我們無法忽視 Gap Inc. 令人印象深刻的規模。我們擁有價值 40 億美元的品牌，擁有近 2,600 家公司自營商店，每年我們的網站訪問量達 14 億次。我們擁有 5,800 萬知名活躍客戶，他們信賴我們提供的時尚產品，既實用又讓他們感覺良好。

We also have an impressive team around the world, and I want to take a moment to thank everyone for welcoming me and recognize the team's commitment to delivering a solid third quarter performance.

我們在世界各地也擁有一支令人印象深刻的團隊，我想花點時間感謝大家對我的歡迎，並認可團隊致力於提供穩健的第三季業績。

Among the insights I've gained in the last 3 months is a recognition that Gap Inc. has weathered a lot of disruption over the last several years, both external macro factors as well as execution missteps in strategically well-intended initiatives have impacted the company. All that said, the opportunity is clear, and I have conviction that we can reinvigorate our portfolio of brands while we lead a creative culture that attracts, retains and develops the best talent in the industry. I'm encouraged by the early progress we've made to date, but we have a long way to go and a lot of work to do and I'm looking forward to sharing updates with you on our progress in the quarters ahead.

我在過去 3 個月中獲得的見解之一是認識到 Gap Inc. 在過去幾年中經歷了多次顛覆，外部宏觀因素以及策略性善意舉措的執行失誤都對公司產生了影響。話雖如此，機會是顯而易見的，我堅信，我們可以重振我們的品牌組合，同時引領一種吸引、留住和培養業內最優秀人才的創意文化。我對我們迄今為止的早期進展感到鼓舞，但我們還有很長的路要走，還有很多工作要做，我期待與您分享我們在未來幾季取得的最新進展。

Thank you. And now I'll pass it to Katrina. Katrina?

謝謝。現在我將把它傳遞給卡崔娜颶風。卡特里娜？

Thank you, Richard. We're pleased to report third quarter results ahead of our prior expectations, gaining market share despite overall declines in the apparel market. We remain focused on the discipline we've created around margin recovery, expense actions, inventory management and maintaining a strong balance sheet.

謝謝你，理查。我們很高興地報告第三季業績，超出了我們先前的預期，儘管服裝市場整體下滑，但我們仍獲得了市場份額。我們仍然專注於圍繞利潤回收、費用行動、庫存管理和維持強勁的資產負債表制定的紀律。

As Richard noted, our operational and financial rigor will be foundational as we turn our attention to the reinvigoration and relevance of our storied and important brands. Let me start with some highlights of our third quarter financial performance before going into more detail. Net sales down 7% and comparable sales of minus 2% drove market share gains in a challenged apparel market, and exceeded our prior expectations with recovery at Old Navy and consistent execution at Gap brand.

正如理查德所指出的那樣，當我們將注意力轉向我們傳奇的重要品牌的復興和相關性時，我們的營運和財務嚴謹性將是基礎。讓我先介紹我們第三季財務表現的一些亮點，然後再進行更詳細的介紹。淨銷售額下降 7%，可比銷售額下降 -2%，推動了充滿挑戰的服裝市場的市場份額增長，並且隨著 Old Navy 的複蘇和 Gap 品牌的持續執行，超出了我們之前的預期。

Old Navy drove a positive 1% comp with strength in women's and kids and baby during back-to-school. Meaningful improvement from the first half, resulting in market share gains. Gap brand showed underlying strength and performance with women's resonating as the brand lapped the last quarter of the Easy product sales last year with only a negative 1% comp for the quarter.

返校期間，Old Navy 在女裝、兒童和嬰兒方面的表現強勁，年增 1%。較上半年取得顯著改善，市佔率增加。 Gap 品牌展現了潛在的實力和表現，引起了女性的共鳴，該品牌在去年最後一個季度的 Easy 產品銷售中表現出色，該季度僅下降了 1%。

We drove 260 basis points of adjusted gross margin expansion resulting from assortments that resonated with customers, which combined with well-managed inventories led to improve [promotional] activity. Margins also benefited from the beginnings of lower commodity costs. We delivered on our SG&A expectations of $1.3 billion despite sales above our prior guidance, all of which resulted in the Q3 adjusted operating margin of 6.8%, a 290 basis point improvement versus last year.

由於產品分類與客戶產生共鳴，我們將調整後的毛利率擴大了 260 個基點，再加上管理良好的庫存，改善了[促銷]活動。利潤率也受益於商品成本的開始下降。儘管銷售額高於我們先前的指導，但我們還是實現了 13 億美元的銷售、管理費用預期，所有這些都導致​​第三季調整後營業利潤率為 6.8%，比去年提高了 290 個基點。

Inventories were down 22% year-over-year and remained well controlled, driving better profitability and working capital. We ended with $1.4 billion of cash on the balance sheet, up 99% to last year, and we're pleased to have repaid our asset-based line of credit as we previewed. Year-to-date free cash flow is $544 million, and we are maintaining our competitive dividend, an important part of returning cash to shareholders. Let me now turn to our third quarter results.

庫存年減 22%，且保持良好控制，推動獲利能力和營運資金改善。我們最終的資產負債表上有 14 億美元的現金，比去年增長了 99%，我們很高興按照我們的預期償還了基於資產的信貸額度。年初至今的自由現金流為 5.44 億美元，我們將維持有競爭力的股息，這是向股東返還現金的重要組成部分。現在讓我談談我們的第三季業績。

Net sales of $3.8 billion decreased 7% versus last year, with comparable sales down 2%. As a reminder, the sale of Gap China last year had about a $70 million or 2-point negative impact to Gap Inc. total net sales growth. Let me now provide sales results by brand. Starting with Old Navy. Net sales in the third quarter were $2.13 billion, down 1% to last year. Comparable brand sales were up 1%.

淨銷售額為 38 億美元，比去年下降 7%，可比銷售額下降 2%。需要提醒的是，去年出售 Gap 中國對 Gap Inc. 總淨銷售額成長產生了約 7,000 萬美元或 2 個百分點的負面影響。現在讓我提供按品牌劃分的銷售結果。從老海軍開始。第三季淨銷售額為21.3億美元，比去年同期下降1%。同類品牌銷售額成長 1%。

For the third quarter in a row, Old Navy gained market share, an encouraging early proof point that work to improve both product assortment and brand messaging are driving results on the path to unlocking Old Navy's potential.

Old Navy 連續第三個季度獲得了市場份額，這是一個令人鼓舞的早期證據，表明改善產品種類和品牌訊息的努力正在推動釋放 Old Navy 潛力的道路上取得成果。

Turning to Gap brand. Gap brand total sales of $887 million were down 15% versus last year. Excluding the estimated negative impact to sales of 7 points related to the sale of Gap China and 2 points due to the shutdown of Yeezy Gap, net sales were down 6% versus last year. Comparable sales were down 1%, and we believe signs of progress and building momentum at Gap are beginning to emerge.

轉向Gap品牌。 Gap 品牌總銷售額為 8.87 億美元，較去年下降 15%。剔除與 Gap 中國出售相關的 7 個百分點和因 Yeezy Gap 關閉而對銷售額造成的 2 個百分點的預期負面影響，淨銷售額較去年下降 6%。可比銷售額下降了 1%，我們相信 Gap 的進步和勢頭正在開始顯現。

Banana Republic third quarter sales up $460 million declined 11% versus last year.

Banana Republic第三季銷售額達4.6億美元，較去年同期下降11%。

Comparable sales were down 8%. As Richard noted in his prepared remarks, Banana Republic has made progress in elevating the brand aesthetic and product offering. However, evolution takes time, and we know that there's work to be done to evaluate how to best engage and retain the premium customer.

可比銷售額下降 8%。正如理查德在準備好的演講中指出的那樣，香蕉共和國在提升品牌美學和產品供應方面取得了進展。然而，演化需要時間，我們知道需要做很多工作來評估如何最好地吸引和留住優質客戶。

Athleta sales of $279 million declined 18% from the prior year. Comparable sales were down 19% as we lapped elevated discount levels while we work to reset the brand for the long term. We will continue to lap elevated discounting that took place last year for at least the fourth quarter.

Athleta 銷售額為 2.79 億美元，較上年下降 18%。由於我們在努力重新調整品牌的長期目標的同時，提高了折扣水平，因此可比銷售額下降了 19%。至少在第四季度，我們將繼續採用去年發生的較高折扣。

Now turning to gross margin in the quarter. Gross margin was 41.3%, an increase of 390 basis points versus last year's reported gross margin. Compared to last year's adjusted rate, gross margin expanded 260 basis points.

現在轉向本季的毛利率。毛利率為 41.3%，比去年公佈的毛利率增加了 390 個基點。與去年調整後的毛利率相比，毛利率擴大了260個基點。

Merchandise margin expanded approximately 340 basis points versus last year's adjusted rate in the quarter, driven by approximately 180 basis points of leverage from improved commodity costs and lower area utilization. With the remaining 160 basis points of leverage primarily driven by improved promotional activity enabled by our better inventory position and stronger assortments. This was better than our expectations, particularly as Old Navy and Gap outperformed in the quarter.

由於商品成本改善和麵積利用率下降，槓桿率提高了約 180 個基點，本季商品利潤率比去年調整後的比率擴大了約 340 個基點。剩下的 160 個基點的槓桿主要是由我們更好的庫存狀況和更強大的產品組合帶來的促銷活動的改善所推動的。這比我們的預期要好，特別是 Old Navy 和 Gap 在本季的表現優於我們。

Rent, occupancy and depreciation declined on a nominal dollar basis versus last year. As a percentage of sales, ROD deleveraged 80 basis points better than previously expected given the stronger sales. Now let me turn to SG&A. Reported SG&A of $1.3 billion includes approximately $5 million in restructuring charges. On an adjusted basis, SG&A declined 7% compared to last year as a result of our organizational changes and other cost actions.

與去年相比，以名目美元計算，租金、入住率和折舊均下降。鑑於銷售強勁，ROD 去槓桿化佔銷售額的百分比比之前預期的好 80 個基點。現在讓我來談談SG&A。報告的 SG&A 為 13 億美元，其中包括約 500 萬美元的重組費用。在調整後的基礎上，由於我們的組織變革和其他成本行動，SG&A 與去年相比下降了 7%。

As a percent of sales, adjusted SG&A of 34.5% improved 30 basis points versus last year's adjusted rate. Reported operating income was $250 million. Adjusted operating income, which excludes restructuring charges, was $255 million in the quarter, up $99 million versus last year.

調整後的 SG&A 佔銷售額的百分比為 34.5%，比去年調整後的比率提高了 30 個基點。報告營業收入為 2.5 億美元。該季度調整後營業收入（不含重組費用）為 2.55 億美元，比去年同期增加 9,900 萬美元。

Adjusted operating margin improved 290 basis points from last year to 6.8% in the quarter, driven primarily by the improvement in adjusted gross margin. Third quarter net interest was flat as interest expense was offset by higher earned interest on cash deposits, which we expect to continue in the fourth quarter. Our third quarter tax rate of 13% included a benefit from the impact of foreign operations.

本季調整後營業利潤率較去年提高 290 個基點，達到 6.8%，主要是由於調整後毛利率的改善所致。第三季淨利息持平，因為利息支出被現金存款賺取的利息增加所抵消，我們預計這種情況將在第四季度繼續下去。我們第三季的稅率為 13%，其中包括海外業務影響的好處。

Reported EPS was $0.58. Adjusted EPS, which excludes restructuring charges, was $0.59. Share count ended at 371 million. Turning to balance sheet and cash flow. Starting with inventory. Ending inventories has declined 22% in the third quarter versus last year. We will maintain this inventory discipline utilizing our responsive levers to chase trends and continue to expect that we will end the year with inventories down roughly 15% from the prior year.

報告每股收益為 0.58 美元。調整後每股收益（不含重組費用）為 0.59 美元。截至股數為 3.71 億股。轉向資產負債表和現金流。從庫存開始。第三季期末庫存較去年下降 22%。我們將利用我們的響應桿來維持這種庫存紀律，以追逐趨勢，並繼續預計年底庫存將比上年下降約 15%。

Quarter-end cash and equivalents were $1.4 billion, an increase of 99% from the prior year. Year-to-date net cash from operating activities was $832 million, driven primarily by lower inventory levels. Capital expenditures were $288 million. We are pleased to have generated free cash flow of $544 million year-to-date.

季末現金及等價物為 14 億美元，較上年增長 99%。年初至今，經營活動產生的淨現金為 8.32 億美元，主要是由於庫存水準較低。資本支出為 2.88 億美元。我們很高興今年迄今產生 5.44 億美元的自由現金流。

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. On November 7, 2023, our Board approved maintaining that $0.15 dividend for the fourth quarter of fiscal 2023. And finally, we're pleased to have paid down the remaining $150 million balance. And are now undrawn on our asset-based line of credit. Now turning to our outlook for the remainder of fiscal 2023.

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。 2023 年 11 月 7 日，我們的董事會批准維持 2023 財年第四季 0.15 美元的股息。最後，我們很高興支付了剩餘的 1.5 億美元餘額。現在我們的基於資產的信貸額度尚未提取。現在轉向我們對 2023 財年剩餘時間的展望。

Starting with sales, the following factors are considered in our outlook. One, we are mindful of the mixed economic data and uncertain consumer trends in the marketplace. And as a result, we continue to take a prudent approach to planning the business; two, while we are encouraged by the improvement in performance at Old Navy and Gap, we now anticipate a longer recovery time line for Athleta and Banana Republic. At Athleta, we're lapping elevated discounting and believe net sales for the brand could be down in the low double-digit range for fourth quarter; and three, as a reminder, we expect the 53rd week to be worth approximately $150 million in sales.

從銷售開始，我們的展望中考慮了以下因素。第一，我們注意到市場上好壞參半的經濟數據和不確定的消費趨勢。因此，我們繼續採取審慎的態度來規劃業務；第二，雖然我們對 Old Navy 和 Gap 業績的改善感到鼓舞，但我們現在預計 Athleta 和 Banana Republic 的恢復時間會更長。在 Athleta，我們正在接受更高的折扣，並相信品牌第四季的淨銷售額可能會下降到兩位數的範圍內；第三，提醒一下，我們預計第 53 週的銷售額約為 1.5 億美元。

These factors, along with November month-to-date sales trends, which have modestly improved versus Q3 results have been contemplated in our outlook. And we are estimating fourth quarter total company net sales growth, inclusive of the 14th week to be flat to slightly negative. We remain confident in and are maintaining our prior sales outlook for fiscal 2023 are down mid-single digits compared to last year's net sales of $15.6 billion.

我們的展望中考慮了這些因素，以及 11 月至今的銷售趨勢（與第三季業績相比略有改善）。我們預計第四季度公司總淨銷售額成長（包括第 14 週）將持平或略有負成長。我們仍然對 2023 財年的銷售前景充滿信心，並維持先前的預期，與去年 156 億美元的淨銷售額相比，下降了中個位數。

Turning to gross margin. We expect gross margin expansion for the fourth quarter compared to the 33.6% gross margin in fiscal 2022, driven by merchandise margin expansion of approximately 280 basis points due to improved commodity costs and lower air utilization with ROD deleverage of approximately 40 basis points. We expect promotional levels to be roughly in line with last year as we take a measured view given the uncertain consumer environment.

轉向毛利率。我們預計第四季度的毛利率將較2022 財年的33.6% 的毛利率有所增長，這是由於商品成本改善和空氣利用率下降以及ROD 去槓桿化約40 個基點導致商品利潤率增長約280個基點。鑑於消費者環境的不確定性，我們謹慎看待，因此預計促銷水平將與去年大致一致。

For fiscal 2023, we expect gross margin expansion to exceed our prior expectations. And compared to the 35% adjusted gross margin in fiscal 2022 to be driven by an estimated 200 basis points of leverage as we lap last year's elevated air freight, approximately 10 basis points of inflationary cost deleverage versus last year, at least 170 basis points of leverage from improved promotional activity versus last year enabled by lower inventories and better assortments.

對於 2023 財年，我們預期毛利率擴張將超出我們先前的預期。 2022 財年，預計200 個基點的槓桿推動了2022 財年35% 的調整後毛利率，而去年航空貨運價格上漲，通膨成本去槓桿化與去年相比約10 個基點，通膨成本去槓桿化至少170 個基點。與去年相比，由於庫存減少和品種更好，促銷活動有所改善。

And ROD as a percentage of sale is now planned to deleverage roughly 60 basis points compared to last year. Turning to SG&A capital. We continue to expect fiscal 2023 adjusted SG&A of approximately $5.15 billion and estimate fourth quarter SG&A of approximately $1.4 billion. We now expect fiscal 2023 capital expenditures of about $475 million for the year, below our prior range of $500 million to $525 million, due in part to fewer store openings.

ROD佔銷售額的百分比目前計畫與去年相比去槓桿化約60個基點。轉向SG&A 資本。我們繼續預期 2023 財年調整後的 SG&A 約為 51.5 億美元，並預計第四季的 SG&A 約為 14 億美元。我們現在預計 2023 財年的資本支出約為 4.75 億美元，低於我們之前 5 億至 5.25 億美元的範圍，部分原因是開店數量減少。

In closing, we are pleased to deliver solid financial results during the third quarter, demonstrated through gross margin expansion, expense discipline, lean inventory and strong cash generation. The operational and financial rigor that we've worked to develop and will continue to pursue is enabling us to focus on reinvigorating our brands with the goal of generating sustainable profitable growth and delivering value for our shareholders over the long term.

最後，我們很高興在第三季度實現穩健的財務業績，這透過毛利率擴張、費用紀律、精益庫存和強勁的現金生成得到證明。我們一直致力於發展並將繼續追求的營運和財務嚴謹性使我們能夠專注於重振我們的品牌，以實現可持續的獲利成長並長期為股東創造價值。

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)

（操作員說明）

Our first question comes from Adrienne Yih with Barclays.

我們的第一個問題來自巴克萊銀行的 Adrienne Yih。

Great. Well, I know I'm not [Ms. accomplish], but that was really, a really great quarter. Anyhow, Okay. So Richard, [set of] questions I have for you. I get where the brand are pretty well established or maybe Banana, Athleta. But the one that really for 20 years, has sort of wondered, I would say, like kind of moving up, moving down as Gap. So you've been there 100 days or 3 months or so, can you give your sort of like initial kind of feeling on what Gap stands for.

偉大的。好吧，我知道我不是[女士]。完成]，但這確實是一個非常棒的季度。無論如何，好吧。理查德，我有一些問題想問你。我知道這個品牌已經相當成熟了，也可能是香蕉、Athleta。但我想說的是，20 年來，這個人一直在想，就像 Gap 的升遷或降遷。那麼您已經在那裡待了 100 天或 3 個月左右，您能否對 Gap 所代表的含義表達一下您的初步感受？

And how do you corral sort of the entire Gap Brand organization to get to that 10-point target? And then for Katrina, so are your inventory turns back to pre-pandemic levels. If you are going to end the year at down 15%, can you structurally comp all year just by turning faster? Is that how we should think about that.

您如何團結整個 Gap 品牌組織來實現 10 分目標？然後，對於卡崔娜颶風，您的庫存也會回到大流行前的水平。如果您打算在年底實現下降 15%，您能否透過加快轉型速度來實現全年結構性盈利？我們該這樣思考嗎？

Well, Adrienne, first, thank you for the color commentary on our quarter, I appreciate that. And I do appreciate the question specifically on the Gap Brand, which really is an incredible heritage brand in our portfolio, let alone a heritage brand in pop culture. And really to understand where we are with Gap, you really need to unpack all of the puts and takes.

嗯，艾德麗安娜，首先，感謝您對我們季度的色彩評論，我對此表示讚賞。我確實很欣賞這個關於 Gap 品牌的問題，它確實是我們產品組合中一個令人難以置信的傳統品牌，更不用說流行文化中的傳統品牌了。要真正了解 Gap 的處境，您確實需要分析所有的投入和支出。

We've taken serious steps to meaningfully change the health of Gap brand. And over time, this has created what we believe is a much healthier core from which we're now enable to really reinvigorate the brand and grow. We strategically moved to a more profitable model and we took action to optimize the retail footprint. And we've closed hundreds of stores. We've moved to a capital-light international franchise model and partnered with our China and European markets, we've also been growing our online presence, but we recognized that we have been not as prominent on top of key trends. And we need to market our core categories in a much more relevant and meaningful way.

我們已採取認真的措施來實際改變 Gap 品牌的健康狀況。隨著時間的推移，這創造了我們認為更健康的核心，我們現在能夠真正重振品牌並實現成長。我們策略性地轉向獲利能力更強的模式，並採取行動優化零售足跡。我們已經關閉了數百家商店。我們已經轉向輕資本的國際特許經營模式，並與中國和歐洲市場合作，我們也一直在擴大我們的線上業務，但我們認識到，我們在關鍵趨勢方面並不那麼突出。我們需要以更相關、更有意義的方式行銷我們的核心類別。

This is going to take time. The third quarter results do provide some really early proof points that -- our healthy core is showing signs of strength. We're going to continue to build upon this as we reignite the brand. As we talked about and as you call out, the reignition of a brand, when we sum it up, stands for relevance and revenue. And each one of our brands is in a different place of reinvigoration, but the methodology to reinvigorate our brands is similar.

這需要時間。第三季的結果確實提供了一些真正早期的證據——我們健康的核心正在顯示出力量的跡象。當我們重新點燃這個品牌時，我們將繼續以此為基礎。正如我們所討論的以及您所指出的，當我們總結它時，品牌的重新點燃代表著相關性和收入。我們每個品牌的復興位置不同，但品牌復興的方法是相似的。

And in Gap's case, we're really building upon defining a stronger, more crisp identity, working on trend-right product assortments with a very clear point of view that will deliver not just on the needs, but also on wants. Our merchandising presentations have already improved in our stores. They're starting to deliver great storytelling that excites our customers with a real edited point of view. If you go online today and if you've been tracking our brand, you'll see a much more definitive, creatively consistent marketing story in our online experience -- so our storytelling is going to be much more prominent. And we're going to start to really infuse Gap in the cultural conversation. So stay tuned and keep watching all the touch points as we continue to reinvigorate the brand.

在 Gap 的案例中，我們真正致力於定義一個更強大、更清晰的品牌形象，以非常清晰的觀點開發順應潮流的產品組合，不僅滿足需求，還滿足需求。我們商店的商品展示已經有所改善。他們開始提供精彩的故事敘述，以真實編輯的觀點讓我們的客戶興奮不已。如果您今天上網並且一直在追蹤我們的品牌，您會在我們的線上體驗中看到更加明確、創意一致的行銷故事，因此我們的故事敘述將會更加突出。我們將開始真正將 Gap 融入文化對話中。因此，在我們繼續重振品牌的過程中，請繼續關注並密切關注所有接觸點。

And then, Adrienne, as it relates to inventory, if we end down 15 at the end of this year, that translates to be being down about 6% to 2019. So I would say we're back to having reasonable inventory levels for the company. And as I said in my remarks, our goal will be to remain very disciplined on inventory. I think we continue to see that, that enables us to grow gross margins through lower promotions, but it also allows us to utilize our responsive levers to chase trends closer into consumer demand, which also allows us to be more relevant and also allows us to then achieve higher gross margins. So we'll see where the inventories land for next year, but overall, that inventory discipline will remain. And I think chasing trends through inventory responsiveness will be the lever that helps us turn faster.

然後，艾德麗安娜，就庫存而言，如果我們在今年年底結束時減少 15%，那麼到 2019 年將減少約 6%。所以我想說，我們又回到了合理的庫存水平。公司。正如我在發言中所說，我們的目標是在庫存方面保持嚴格的紀律。我認為我們繼續看到這一點，這使我們能夠透過較低的促銷活動來提高毛利率，但它也使我們能夠利用我們的響應桿來追逐更接近消費者需求的趨勢，這也使我們能夠更具相關性，也使我們能夠然後實現更高的毛利率。因此，我們將看到明年的庫存情況，但總體而言，庫存紀律將保持不變。我認為透過庫存響應能力追逐趨勢將成為幫助我們加快轉型的槓桿。

Our next question comes from Ike Boruchow with Wells Fargo.

我們的下一個問題來自富國銀行的 Ike Boruchow。

So I guess one for Richard and then a follow-up for Katrina, if that's okay. So Richard, so you guys, as a company, now posted your first positive comp for Old Navy in a few years. So without being overly specific on the fourth quarter or next year in regards to guidance, can you say at a high level, do you feel that the business has really turned a corner strategically? Do you believe this is back to a positively comping share-taking business once again as you look forward? And then the follow-up for Katrina, on the credit side, there's been a lot of questions in retail on credit and delinquencies going up.

所以我猜理查德會是一個，然後是卡特里娜颶風，如果可以的話。所以理查德，所以你們，作為一家公司，現在發布了幾年來你們對老海軍的第一個積極的補償。因此，在沒有對第四季度或明年的指導過於具體的情況下，您能否從較高的層面上說，您認為業務真的在戰略上已經出現轉機嗎？您是否認為正如您所期望的那樣，這將再次回到積極競爭的股份收購業務？然後是卡崔娜颶風的後續行動，在信貸方面，零售業的信貸和拖欠率上升存在許多問題。

Can you just give us some context on how you think about the potential headwinds to margins from here, maybe I don't know if you would be comfortable giving us what credit income was as a percent of sales in '19, where it's planned to be at the end of this year? Or how much margin pressure should expect if credit trends were to fully referred to '19. Just something that would give us a little understanding of what that potential mean reversion could look like to the margins next year would be really helpful.

您能否給我們一些背景信息，說明您如何看待這裡的利潤率的潛在阻力，也許我不知道您是否願意向我們提供 19 年信貸收入佔銷售額的百分比，計劃將是在今年年底嗎？或者如果信貸趨勢完全參考“19”，預計利潤率壓力會有多大。只要能讓我們稍微了解明年潛在的均值回歸可能會是什麼樣子，就會非常有幫助。

Well, thanks, Ike. And I'll start by saying that there's really no denying the strength of Old Navy. This is the #2 apparel brand in the U.S. We've got an incredibly impressive footprint with over 1,200 stores. And we've got a very strong brand proposition delivering on fun, fashion and value for the whole family. We were really encouraged to see the progress that we made this quarter with the brand. And the result of the learnings that we applied from a more muted first half is really what’s delivering.

嗯，謝謝，艾克。首先我要說的是，老海軍的實力是無可否認的。這是美國第二大服裝品牌。我們擁有 1,200 多家商店，令人印象深刻。我們擁有非常強大的品牌主張，為整個家庭提供樂趣、時尚和價值。看到本季我們在品牌方面的進展，我們感到非常鼓舞。我們從上半場較為平靜的情況中學到的經驗教訓確實取得了成效。

Specifically, we focused on a dedicated women's marketing campaign. We included on-trend product and it drove positive momentum and market share gains. We also spent a lot of time in the quarter improving our site execution, online marketing included in that, and have designed a much more pointed compelling, creative point of view with value messaging. I encourage you to go online and take a look as we've been tracking the brand. I think you'll see that come across. That being said, we have work to do, and we need to continue to execute with consistency.

具體來說，我們專注於專門針對女性的行銷活動。我們納入了流行產品，它推動了積極的勢頭和市場份額的成長。我們在本季度也花了很多時間來改進我們的網站執行，其中包括線上行銷，並設計了更具針對性的引人注目的創意觀點和價值資訊。我鼓勵您上網看看，因為我們一直在追蹤該品牌。我想你會看到這一點。話雖這麼說，我們還有工作要做，而且需要繼續堅持執行。

As we look forward to the holiday, we're going to offer a really balanced product range from, of course, Jingle Jammies, to party and active, but I really do believe the brand is ready to compete. We've got a high-quality inventory composition. We're concentrated on creating great value presentations with great style, and look, as I noted, we are encouraged, but we're focused on continuous improvement at Old Navy and really for all of our brands as we look to reinvigorate our brands. So one quarter, very well done incredible team execution, but consistency will be the name of the game.

當我們期待假期時，我們將提供一個真正平衡的產品系列，當然，從叮噹果醬到派對和運動，但我真的相信該品牌已經準備好競爭。我們擁有高品質的庫存構成。我們專注於以出色的風格創造巨大的價值展示，正如我所指出的，我們受到了鼓勵，但我們專注於Old Navy 的持續改進，以及我們所有品牌的持續改進，因為我們希望重振我們的品牌。所以一個季度，團隊執行力做得非常好，令人難以置信，但一致性將是遊戲的名稱。

And then Ike, on your credit question, it's a good one. We don't disclose our credit card income, but to tell you, we are actively monitoring the consumer environment, and that includes the inflationary cost pressures that are on either discretionary spending or on consumer credit. Maybe what I would say is the credit card income trends that we're seeing today are all fully contemplated in the outlook we provided today.

然後艾克，關於你的信用問題，這是一個很好的問題。我們不會透露我們的信用卡收入，但可以告訴您，我們正在積極監控消費者環境，其中包括可自由支配支出或消費信貸的通膨成本壓力。也許我想說的是，我們今天看到的信用卡收入趨勢都在我們今天提供的前景中得到了充分考慮。

And of note, the biggest impact to date has been the change in interest rates, which has impacted the cost of funds. And that impact is already in the outlook we just provided. And then as it relates to loss rates, we're obviously looking at those carefully, [we're still] better than pre-pandemic levels. And I would add that our file is pretty high quality. We don't have significant sub-prime exposure. So maybe all of that helps you to understand that we are watching it carefully, but the credit outlook that we see is embedded in the outlook we provided today.

值得注意的是，迄今為止最大的影響是利率的變化，這影響了資金成本。這種影響已經體現在我們剛剛提供的前景中。然後，由於與損失率相關，我們顯然正在仔細研究這些問題，[我們仍然]比大流行前的水平好。我想補充一點，我們的文件品質非常高。我們沒有重大的次貸風險。因此，也許所有這些都可以幫助您了解我們正在仔細觀察，但我們看到的信用前景已包含在我們今天提供的前景中。

Our next question comes from Matthew Boss with JPMorgan.

我們的下一個問題來自摩根大通的馬修·博斯。

And congrats on a really nice quarter. So Richard -- so Richard, on the missteps at Athleta that you cited, maybe what's the time line you see for stabilization when you look at that brand today? Help us to think about changes across the assortment and marketing messaging again, relative to today?

恭喜您度過了一個非常美好的季度。那麼理查德——理查德，關於你提到的 Athleta 的失誤，也許當你今天看到這個品牌時，你看到穩定的時間表是什麼？幫助我們再次思考相對於今天而言，品種和行銷訊息的變化？

And then, Katrina, with inventory down more than 20%, just help us to think about constraints to recapturing the material headwind tied to discounting a year ago in the fourth quarter.

然後，卡崔娜颶風導致庫存下降超過 20%，這正好幫助我們思考如何重新抓住一年前第四季與折扣相關的重大逆風。

So thank you, Matthew. And specifically, look, Athleta had a disappointing quarter. It struggled recently, and the third quarter comps were very disappointing. We have begun the reset of the brand. We knew that we needed to make leadership changes in order to create a differential outcome for this powerful brand. As you know, Chris Blakeslee joined us maybe 1 or 2 days ago and has orchestrated appropriate changes, which we feel confident, we'll get them back on track. We're going to be progressing each quarter. We know that a full brand reset will require a more comprehensive approach. It will take more time. It is early. I can't quite commit to a time line at this point.

謝謝你，馬修。具體來說，Athleta 的季度表現令人失望。它最近陷入困境，第三季的業績非常令人失望。我們已經開始品牌重置。我們知道，我們需要進行領導層變革，以便為這個強大的品牌創造差異化的結果。如您所知，克里斯·布萊克斯利 (Chris Blakeslee) 可能在一兩天前加入我們，並精心策劃了適當的更改，我們對此充滿信心，我們會讓他們重回正軌。我們每季都會取得進步。我們知道，全面的品牌重置需要更全面的方法。這將需要更多時間。現在還早。目前我還不能完全承諾時間表。

What I can tell you is we are confident and excited about the long-term potential of the Athleta brand. That's the #5 brand in the U.S. women's active segment, which is one of the largest segments in the industry. It's got a clear and distinctive brand positioning, rooted in the Power of She, which is so authentic and highly differentiated as a platform. And we know that we're lapping significant promotions and markdowns from last year, a dynamic that we expect to continue at least into the fourth quarter.

我可以告訴您的是，我們對 Athleta 品牌的長期潛力充滿信心和興奮。這是美國女性運動領域的第五大品牌，也是該產業最大的領域之一。它有一個清晰而獨特的品牌定位，植根於“她的力量”，這是一個如此真實且高度差異化的平台。我們知道，我們正在經歷去年的重大促銷和降價，我們預計這種動態至少會持續到第四季。

But we are confident that the work that we're doing specifically on product has a more distinct narrative around performance-based narrative measures, and we've also begun to refresh store presentations. The brand's website also, I encourage you to take a look at, really pulls the Athleta's focus back to its performance roots and, of course, the Power of She platform. So look, these are early days. We're seeing early indications that customers are responding, but there is more work to do.

但我們相信，我們專門針對產品所做的工作在基於績效的敘事衡量標準上有更獨特的敘事，我們也開始更新商店的展示。我鼓勵您看一下該品牌的網站，它確實將 Athleta 的注意力拉回了其性能根源，當然還有 Power of She 平台。所以看，現在還處於早期階段。我們看到客戶正在回應的早期跡象，但還有更多工作要做。

And then, Matt, on the inventory side of things and discounting, I think in third quarter, we were pleased to be able to deliver 160 basis points of margin recovery in the margin related to discounting, which came from much less discounting than we had prior year.

然後，馬特，在庫存和折扣方面，我認為在第三季度，我們很高興能夠在與折扣相關的利潤中實現 160 個基點的利潤恢復，這是由於折扣比我們之前少得多去年。

I think what I would say is there's 2 things. First, as we said that we have brands performing at different levels right now. So we have Old Navy and Gap that are really showing early signs of recovery, and we have a little bit of a longer recovery timeline for Banana and Athleta. And so certainly, those are things to consider when thinking about margin recovery.

我想我想說的是有兩件事。首先，正如我們所說，我們現在有不同等級的品牌。因此，我們的 Old Navy 和 Gap 確實顯示出早期復甦的跡象，而 Banana 和 Athleta 的復甦時間表則稍長一些。當然，在考慮利潤恢復時，這些都是需要考慮的事情。

And then in addition to that, we're navigating a very interesting consumer environment, as we said, that has mixed consumer performance. And so we want to remain disciplined about also providing great value to our consumers. And so we're also remaining prudent about that balance between inventory is down but also being able to recover gross margins -- cut off the discount.

除此之外，正如我們所說，我們正在探索一個非常有趣的消費者環境，消費者的表現參差不齊。因此，我們希望保持紀律，為我們的消費者提供巨大的價值。因此，我們對庫存下降和恢復毛利率之間的平衡保持謹慎——切斷折扣。

Our next question comes from Brooke Roach with Goldman Sachs.

我們的下一個問題來自高盛的布魯克·羅奇。

The company has made a lot of progress this year on recovering gross margin and driving expense discipline. Can you elaborate on the opportunity to drive further margin expansion beyond this year and provide your thoughts on how best to balance reinvesting those wins back into the brand to drive the strategic initiatives you've outlined today versus flowing those through the bottom line?

該公司今年在恢復毛利率和推動費用紀律方面取得了很大進展。您能否詳細說明今年之後進一步推動利潤率擴張的機會，並就如何最好地平衡將這些勝利重新投資到品牌以推動您今天概述的戰略舉措與將這些舉措轉化為利潤之間取得平衡有何想法？

Sure. Brooke, I think as you say, we've really developed financial and operational rigor to control the controllables. And as you say, this has really showed up both in gross margins this year with our inventory levels down, which has led to promotions, the discipline around air freights and the commodity recovery in the second half. As I think about the future, we're going to remain committed to healthy gross margins and well-controlled inventories.

當然。布魯克，我認為正如你所說，我們確實在財務和營運上建立了嚴格的控制來控制可控因素。正如你所說，這確實體現在今年的毛利率上，我們的庫存水準下降了，這導致了促銷、航空貨運的紀律以及下半年大宗商品的復甦。在我對未來的思考中，我們將繼續致力於維持健康的毛利率和良好控制的庫存。

We're also going to remain committed to the discipline that we have around SG&A and ensuring that we have that level of inventory -- or excuse me, rigor around that as well. That's going to enable us to really turn to the brand reinvigoration that Richard articulated that is a big priority for the company, as we aspire to return to consistent profitable revenue growth over time. So more to come when we provide an outlook. But that discipline around the middle of the P&L, we believe is really critical so that we can really have the room to focus then on the reinvigoration of our brands.

我們也將繼續遵守SG&A 方面的紀律，並確保我們擁有一定水準的庫存——或者請原諒，這方面也很嚴格。這將使我們能夠真正轉向理查德所闡述的品牌復興，這是公司的首要任務，因為我們渴望隨著時間的推移恢復持續的獲利收入成長。因此，當我們提供展望時，還會有更多內容。但我們認為，圍繞損益表中間的紀律確實至關重要，這樣我們才能真正有空間專注於我們品牌的復興。

Yes. And Brooke, I'll just add that none of the expansion on margin and the disciplines that Katrina mentioned compromise the integrity of the reinvigoration plan by no means. So I think what we're experiencing right now is that we're demonstrating the discipline of operating and financial rigor that is actually enabling the focus on the reinvigoration plan.

是的。布魯克，我只想補充一點，卡崔娜颶風提到的保證金擴張和紀律絕對不會損害重振計畫的完整性。因此，我認為我們現在所經歷的是，我們正在展示嚴格的營運和財務紀律，這實際上使我們能夠專注於重振計劃。

Our next question comes from Michael Binetti with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Michael Binetti。

Congrats on a really great quarter out of the gate here, Richard. Can I ask you, I guess, from time to time, you've been willing to share where Old Navy margins are. I don't know that we want to get into that now in much detail, but it seems like the right time to ask if you could help us with a little bit of perspective there. Is that business shifts back to positive comps surprisingly in the quarter, pleasantly surprisingly?

理查德，恭喜您度過了一個非常棒的季度。我可以問你嗎，我想，你時不時願意分享老海軍的利潤在哪裡。我不知道我們現在是否想詳細討論這個問題，但現在似乎是時候詢問您是否可以幫助我們提供一些觀點。該業務是否會在本季令人驚訝地恢復正值，令人驚訝？

And then, I guess, I would ask on Athleta for a minute. We -- I hear you on the long time frame and on the fourth quarter sales, but we did see quite a bit on sale on that banner in the quarter. It seemed like a fairly heavy purchase just get a lot of inventory out.

然後，我想，我會問 Athleta 的問題。我們——我聽到你談到了長期框架和第四季度的銷售情況，但我們確實看到該季度該橫幅上有相當多的銷售。這似乎是一筆相當大的採購，只是取出了大量庫存。

I assume that, that's going to be -- even though the sales are down, that's going to be a positive contributor to margin here, as we get into the holiday? And then maybe just your outlook on the promotional outlook for the holiday here. We heard your thought on the promos being flat to last year, but maybe just a hint what we're going to see as we watch the promotional environment through the holiday.

我認為，即使銷售額下降，當我們進入假期時，這也會對利潤率產生正面的貢獻？然後也許只是您對這裡假期促銷前景的看法。我們聽到了您對促銷活動與去年持平的想法，但這也許只是一個暗示，當我們觀察整個假期的促銷環境時，我們會看到什麼。

Sure. Michael, we don't provide Old Navy margins or margins for our portfolio. But jumping to the Athleta question. Look, as I said before, we did have a disappointing quarter. Comps down 19% is not where we want to be. That being said, we had significant promotions and markdowns that we took proactively from last year to this year to clean up the assortment that had product misfires and marketing misfires and retail execution.

當然。邁克爾，我們不為我們的投資組合提供老海軍利潤或利潤。但跳到運動員問題。看，正如我之前所說，我們確實經歷了一個令人失望的季度。相較之下下降 19%，這並不是我們想要的結果。話雖這麼說，從去年到今年，我們積極採取了重大促銷和降價措施，以清理產品失敗、行銷失敗和零售執行失敗的品種。

This dynamic, we do expect to continue, at least into the fourth quarter, as you go into the stores and you look online, you will already see a more distinctive narrative in both product and brand messaging. As you go into our stores, you're going to see a much more delineated refreshed store presentation. The markdown assortment will get a little less and less as we move through it, but ultimately, we will be lapping a bit of challenge here on the misfires and product.

我們確實預計這種動態至少會持續到第四季度，當你走進商店並在網上查看時，你已經在產品和品牌訊息中看到了更獨特的敘述。當您進入我們的商店時，您將看到更清晰的商店展示。隨著我們的瀏覽，降價品種將越來越少，但最終，我們將在失敗和產品方面面臨一些挑戰。

I will say that we are seeing early indications, as I mentioned, that what we are rolling out in terms of new product, customers are responding, the work that we've done in marketing very quickly. And the displays that we're seeing in our digital dialogue are also encouraging, but we do have more work to do. And as I said before, out of our portfolio, this is a brand that's operating in one of the most exciting segments in the industry. The performance segment is incredibly rich with opportunity. And while we are a #5 player, we've got enormous potential to continue to grow this brand.

我想說的是，正如我所提到的，我們正在看到早期跡象，我們正在推出新產品，客戶正在做出反應，我們在行銷方面所做的工作非常快。我們在數位對話中看到的顯示也令人鼓舞，但我們確實還有更多工作要做。正如我之前所說，在我們的產品組合中，這是一個在業界最令人興奮的細分市場之一所經營的品牌。表演領域充滿了令人難以置信的豐富機會。雖然我們是排名第五的參與者，但我們擁有繼續發展品牌的巨大潛力。

And then I think, Michael, you asked about the overall promotional outlook for the holiday season. We were really pleased to enter with inventories down 22%. I think that shows discipline around controlling the inventories. We think that inventory is fresh and has good product offerings for the customer. I think what you saw in the outlook we provided was that we're planning for our promotions to be relatively flat year-over-year.

然後我想，邁克爾，您詢問了假期季節的整體促銷前景。我們很高興進入，庫存下降了 22%。我認為這表明了控制庫存的紀律。我們認為庫存是新鮮的，並且為客戶提供了良好的產品。我認為您在我們提供的前景中看到的是，我們計劃將促銷活動與去年同期相對持平。

And honestly, we want to make sure that we're mindful of the somewhat choppy environment that we're heading into for the fourth quarter with the consumer still feeling pressures and so our top priority will be about executing well for holiday and offering the right price value equation for our customer.

老實說，我們希望確保我們注意到第四季度將面臨的有些動蕩的環境，消費者仍然感受到壓力，因此我們的首要任務將是在假期期間做好執行工作並提供合適的產品我們客戶的價格價值方程式。

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, I wanted to follow up on Ike's question on credit income. Would the CFPB proposal on late fees have a material effect on your operating income?

卡特里娜，我想跟進艾克關於信貸收入的問題。 CFPB 關於滯納金的提議會對您的營業收入產生重大影響嗎？

Well, Lorraine, I know there's been a lot of speculation on that and sort of we have nothing to quantify specifically at this time. At this point, I think 2024 will be the earliest impact of that, and we're working with Barclays, who's our credit partner on ways to mitigate the potential impact. So we'll provide more of an update when we more about the timing of that regulatory impact.

好吧，洛林，我知道對此有很多猜測，但目前我們沒有什麼可以具體量化的。目前，我認為最早的影響將是 2024 年，我們正在與我們的信貸合作夥伴巴克萊銀行合作，研究減輕潛在影響的方法。因此，當我們更多地了解監管影響的時間時，我們將提供更多更新。

And then as commodity costs go your way, is this something that you'd expect to pass through to the bottom line? Or are there investments that you'll make in product in any of the brands that might offset that?

然後，隨著商品成本朝您的方向發展，您是否希望將其轉嫁給利潤？或者您會對任何品牌的產品進行投資來抵消這種影響？

I think at this point, that's sort of a product-by-product discussion. I would say universally, we don't have plans to reinvest substantially the product costs back into the product.

我認為在這一點上，這是一種逐個產品的討論。我想說的是，我們沒有計劃將產品成本大量重新投資到產品中。

I'm sure in certain brands and places where we think the customer will appreciate it, we might do that. But overall, I think just as we've been doing in the back half of this year, you're seeing that with the recovery in commodity costs, that's leading to expanded gross margins. So I think it's logical that, that will likely continue.

我確信在我們認為客戶會欣賞的某些品牌和地方，我們可能會這樣做。但總的來說，我認為就像我們今年下半年所做的那樣，隨著商品成本的回升，毛利率將會擴大。所以我認為這種情況很可能會持續下去，這是合乎邏輯的。

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

我們的下一個問題來自特爾西諮詢小組的達納·特爾西。

Katrina and Richard, congratulations on the nice progress. With the improvement that you've seen in Old Navy and the focus on restoring growth to Athleta and to Banana Republic, are there any learnings from what you've done so far at Old Navy that harkens to Banana Republic and even Gap or the other divisions that can accelerate that turn.

卡特里娜和理查德，祝賀你們取得了良好的進展。隨著您在 Old Navy 中看到的進步以及對 Athleta 和 Banana Republic 恢復增長的關注，您是否可以從 Old Navy 迄今為止所做的事情中學到任何與 Banana Republic 甚至 Gap 或其他公司相似的經驗教訓可以加速這一轉變的部門。

Yes. Dana, thank you for the question and the complement on the quarter. What I would tell you is when I speak about brand reinvigoration, I mention the 2 words that we drive from that are relevance and revenue. Each one of our brands is in a different stage of reinvigoration process. But ultimately, when I think about reinvigoration, it's really strengthening each brand's positioning statement and identities and purpose. In the case of Old Navy, as we talked about fun, family, fashion and value. And I think even as an example, again, I encourage you to go online. You'll see that crisp identity start to come through.

是的。達納（Dana），感謝您提出問題以及本季的補充。我要告訴你的是，當我談到品牌復興時，我提到了我們所推崇的兩個詞：相關性和收入。我們的每個品牌都處於復興過程的不同階段。但最終，當我想到重振時，它確實加強了每個品牌的定位聲明、身份和目的。就 Old Navy 而言，我們談論的是樂趣、家庭、時尚和價值。我想，即使作為一個例子，我再次鼓勵你上網。您會發現清晰的身份開始顯現。

It has to be about trend-right product assortments with a clear point of view that I talked about delivering beyond just needs, but also deliver wants the interesting pieces, interesting segments, how we can create and amplify big ideas. We're going to consistently deliver merchandising presentations that tell stories with our product that excites our customers when they see it online and when they see it in our stores. And we'll work on better and more engaging omnichannel experiences with clear and compelling pricing strategies. And again, encouraging in the early reads on some of the work that we've done reflected in our online presence and in our stores around a much more compelling and surgical price strategy.

它必須是關於趨勢正確的產品分類，具有明確的觀點，我談到不僅要提供需求，還要提供有趣的作品、有趣的細分市場，以及我們如何創造和放大大創意。我們將始終如一地提供推銷演示，講述我們產品的故事，當我們的客戶在網上和我們的商店中看到它時，他們會感到興奮。我們將透過清晰且引人注目的定價策略，致力於提供更好、更具吸引力的全通路體驗。再次，我們所做的一些工作的早期閱讀令人鼓舞，這反映在我們的線上業務和商店中，圍繞著更具吸引力和外科手術的價格策略。

And last but not least, as we talked about innovating through marketing campaigns that speak to cultural conversations creative consistently and execute all of these touch points and interaction with excellence. You can't do 1 or 2 of these and think we've got a reinvigoration on our hand. You've really got to work in harmony and do all of these. And so while I'm very pleased with some of the progress that we're making, in particular, brands like Old Navy and Gap, we do have work to do across the portfolio following this reinvigoration road map, and we will be updating you quarter-to-quarter on how we're doing.

最後但並非最不重要的一點是，當我們談到透過行銷活動進行創新時，這些行銷活動要始終如一地與文化對話進行創意對話，並以卓越的方式執行所有這些接觸點和互動。你不可能做到其中一兩個就認為我們已經獲得了重生。你們確實必須協調一致地完成所有這些工作。因此，雖然我對我們正在取得的一些進展感到非常滿意，特別是Old Navy 和Gap 等品牌，但按照重振路線圖，我們在整個產品組合中確實還有很多工作要做，我們將向您通報最新情況每季我們的表現如何。

Our next question comes from Mark Altschwager with Baird.

我們的下一個問題來自貝爾德 (Baird) 的馬克·阿爾特施瓦格 (Mark Altschwager)。

I was hoping you could help us better understand or unpack the drivers of the improvement at Old Navy this quarter, down 6% to plus 1%, really an impressive inflection in this backdrop. It did seem to be well ahead of your internal plans for the quarter.

我希望您能幫助我們更好地理解或揭示 Old Navy 本季業績改善的驅動因素，從下降 6% 到增加 1%，在這種背景下確實是一個令人印象深刻的變化。它似乎確實遠遠超出了您本季的內部計劃。

So was that just conservatism at the time you were guiding? Or was there a bigger shift in product acceptance with the fall product that you weren't anticipating?

那麼，這只是您指導時的保守主義嗎？或者秋季產品的產品接受度是否發生了您沒有預料到的更大變化？

Yes. Thanks for the question. I think it's important to note we've been seeing market share gains in Old Navy every quarter this year. And certainly, we're very pleased with the progress that we've made in the third quarter. It's important also to note that these are the results of learnings that we've applied from a more muted first half. I mentioned the dedicated women's marketing campaign with on-trend product.

是的。謝謝你的提問。我認為值得注意的是，今年每季我們都看到 Old Navy 的市佔率有所成長。當然，我們對第三季的進展感到非常滿意。還要注意的是，這些都是我們從較為平靜的上半場所學到的教訓的結果。我提到了針對流行產品的專門女性行銷活動。

I think that shows the deliberate intent of when we market with conviction, and we associate that with great trend product, and we carry through that message through online execution and in-store merchandising. These are muscles that were going to be strengthening, and we saw it drove positive momentum and market share gains. And so when we look at the continuation of that reinvigoration process, we will continue to improve our site execution, work on our marketing with compelling, creative and value messaging.

我認為這表明了我們以堅定的信念進行營銷時的深思熟慮的意圖，我們將其與偉大的趨勢產品聯繫起來，並通過在線執行和店內推銷來傳達這一信息。這些肌肉將得到加強，我們看到它推動了積極的勢頭和市場份額的成長。因此，當我們考慮這個重振過程的延續時，我們將繼續改進我們的網站執行，透過引人注目的、創造性的和價值的訊息來開展我們的行銷。

Again, sharp price points that express great style and great value are resonating. And we continue to believe that we've got the right progress and momentum, but we need to continue to deliver that consistently. And so as we look to the back half, you're going to see a really balanced product range with offerings like Jingle Jammies, and [Cardigan] Active and ultimately, a high-quality inventory composition that will drive to a successful year-end for Old Navy.

同樣，體現出色風格和巨大價值的鮮明價格點也引起了共鳴。我們仍然相信我們已經取得了正確的進展和勢頭，但我們需要繼續持續實現這一點。因此，當我們展望下半年時，您將看到一個真正平衡的產品系列，其中包括 Jingle Jammies 和 [Cardigan] Active 等產品，最終，高品質的庫存組成將推動年底取得成功對於老海軍來說。

That's great. Maybe just a follow up. I mean the message on SG&A this year has really been about cost savings and efficiencies. What is marketing look like at Old Navy? Is that up year-over-year? And -- and what do you think -- how do you think about the right time line to really lean into marketing at the Old Navy brand given the momentum that you're seeing?

那太棒了。也許只是後續行動。我的意思是，今年 SG&A 的資訊實際上是關於成本節約和效率。 Old Navy 的行銷是什麼樣的？是逐年上漲嗎？而且 - 您怎麼看 - 鑑於您所看到的勢頭，您如何看待真正投入 Old Navy 品牌行銷的正確時間線？

Yes. Thanks for the question. What -- we don't share the specifics of our brand marketing investments. What I would tell you, however, is we do a lot of marketing that could be more effective.

是的。謝謝你的提問。什麼——我們不分享我們品牌行銷投資的具體細節。然而，我要告訴你的是，我們做了很多可能更有效的行銷。

And part of our operating and financial discipline applies to our marketing and media effectiveness. And you'll be seeing a lot more -- if you've creative consistent bold narrative breakthrough marketing that will drive conversion and compelling customer reactions in our omnichannel presentation, but it doesn't necessarily mean that we're going to be spending more. It's about being more effective with what we spend. Over the years, I'd argue that our marketing execution has been very, very tactical.

我們的營運和財務紀律的一部分適用於我們的行銷和媒體有效性。你會看到更多——如果你有創意、一致、大膽的敘事突破性行銷，這將在我們的全通路演示中推動轉換和引人注目的客戶反應，但這並不一定意味著我們會花費更多。這是為了更有效地利用我們的支出。多年來，我認為我們的行銷執行非常非常有策略。

And, in some cases, on some brands, we've lost relevance and a narrative edge. But when you look at our company's history, we have legendary marketing. And I'm very confident that we will, again, it's a critical part of our reinvigoration work, and you will continue to see more effective brand presentations and communications throughout the quarters to come.

而且，在某些情況下，在某些品牌上，我們已經失去了相關性和敘事優勢。但當你回顧我們公司的歷史時，你會發現我們有傳奇般的行銷。我非常有信心，我們將再次成為我們重振工作的關鍵部分，您將在未來幾季繼續看到更有效的品牌展示和溝通。

Our last question will come from the line of Alex Straton with Morgan Stanley.

我們的最後一個問題將來自摩根士丹利的亞歷克斯·斯特拉頓（Alex Straton）。

Congrats on a nice quarter. I wanted to ask a couple of follow-ups. One, just on the Old Navy. I don't think that you had called out men's as a point of strength. So I'm just wondering what's going on there? And what would you attribute it to? And then second, maybe, Richard, for you. You've been speaking about this importance of having trend-right product and assortments really across the banners. Can you speak to like what type of tactics or strategies you used to implement that across the organization?

恭喜您度過了一個美好的季度。我想問幾個後續問題。一，就在老海軍上。我認為你並沒有將男性作為一個優勢點。所以我只是想知道那裡發生了什麼事？你會把它歸因於什麼？然後，也許，理查德，對你來說。您一直在談論在各個領域擁有符合潮流的產品和品種的重要性。您能談談您在整個組織中實施此策略或策略的類型嗎？

So first off, thanks for the call out on men's. In fact, men's had a weaker first half, and we've been seeing the trend actually improved in the third quarter, and I think it will continue to find some strength in the back half year. When you look at what we talk about in terms of trend right products, I think that we've done a good job and arguably a very good job with providing what we call the needs. And in that case, it's providing great basics.

首先，感謝您對男士的呼籲。事實上，男裝上半年表現較弱，我們看到第三季的趨勢實際上有所改善，我認為下半年將繼續找到一些優勢。當你看看我們談論的潮流產品時，我認為我們在滿足我們所謂的需求方面做得很好，而且可以說做得非常好。在這種情況下，它提供了很好的基礎知識。

And what we have to do a better job of is creating the wants. And that's where sort of the interest comes as a fashion brand, complementing our assortments with interesting various different ways that we could leverage trends. Currently, we see trends like cozy, the sweater category working. And so how we really prominently merchandise that in storytelling that brings that to the highlight of a consumer experience becomes an important part of the trend presentation. The color red is trending currently, and we're starting to react and respond in real time to make sure that we edit our assortment both presentation-wise and merchandising to feature where we do have the color red.

我們必須做得更好的是創造需求。這就是作為時尚品牌的興趣所在，透過各種有趣的不同方式來補充我們的品種，我們可以利用趨勢。目前，我們看到舒適、毛衣類別等趨勢正在發揮作用。因此，我們如何在講故事中真正突出地推銷這一點，從而將其帶入消費者體驗的亮點，成為趨勢呈現的重要組成部分。紅色是目前的流行色，我們開始即時做出反應和回應，以確保我們在展示和銷售方面編輯我們的品種，以突出我們確實有紅色的地方。

We're seeing occasion work, fabrication, shine, sequent, Velvet and satin. So you're going to start to see reacting and responding in real time to what we see happening in the marketplace. And that may be in the kind of here and now as reaction and responsiveness. But as we look to the future, being more pronounced, driving more design and insight into our product narratives and thought process upfront is going to be part of where we head and reinvigoration for our brands. And in this business, absolutely product is hero, and we're spending a lot of time ensuring that we have exceptional products with exceptional value, exceptional quality. We've got work to do, but I'm encouraged by early stage development.

我們看到了場合工作、製造、光澤、後續、天鵝絨和緞子。因此，您將開始看到我們對市場上發生的事情做出即時反應。這可能是此時此地的反應和回應。但當我們展望未來時，更加明顯、推動更多的設計和對我們產品敘事和思考過程的洞察力將成為我們品牌發展和重振的一部分。在這個行業，產品絕對是英雄，我們花了大量時間來確保我們擁有具有卓越價值和卓越品質的卓越產品。我們還有很多工作要做，但我對早期開發感到鼓舞。

We've reached the end of the question-and-answer session. That does conclude our conference call. You may now disconnect.

我們的問答環節已經結束了。我們的電話會議到此結束。您現在可以斷開連線。