蓋璞 (GPS) 2023 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen. My name is Krista, and I will be your conference operator today. I would like to welcome everyone to Gap Inc. Fourth Quarter 2023 Earnings Conference Call. (Operator Instructions). I would now like to introduce your host, Emily Gacka, Director of Investor Relations. Emily, please go ahead.

女士們、先生們，午安。我叫克里斯塔，今天我將擔任你們的會議操作員。歡迎大家參加 Gap Inc. 2023 年第四季財報電話會議。 （操作員說明）。現在我想介紹一下主持人，投資者關係總監 Emily Gacka。艾米麗，請繼續。

Good afternoon, everyone, and welcome to Gap Inc.'s Fourth 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.

大家下午好，歡迎參加 Gap Inc. 2023 財年第四季財報電話會議。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。

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.

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。

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, March 7, 2024, and we assume no obligation to publicly update or revise our forward-looking statements.

這些前瞻性陳述是基於截至今天（2024 年 3 月 7 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 Chief Executive Officer, Richard Dickson; and Chief Financial Officer, Katrina O'Connell. With that, I'll turn the call over to Richard.

今天與我一起參加電話會議的是執行長理查德·迪克森 (Richard Dickson)；和財務長卡特里娜·奧康奈爾。這樣，我就把電話轉給理查。

Thank you for joining our call today, where I'll provide an update on our performance and progress in the context of our 4 strategic priorities. Then I'll pass the call to Katrina to walk you through our detailed financial results as well as our 2024 outlook before we take questions.

感謝您參加今天的電話會議，我將在我們的 4 項策略重點的背景下提供有關我們績效和進展的最新資訊。然後，在回答問題之前，我會將電話轉給卡崔娜颶風，向您介紹我們詳細的財務表現以及 2024 年的展望。

As a reminder, our 4 strategic priorities are: first, maintaining and delivering financial and operational rigor; second, the reinvigoration of our brands; third, strengthening our platform; and fourth, energizing our culture.

提醒一下，我們的 4 個策略重點是：首先，保持和實現財務和營運的嚴謹性；第二，品牌的復興；第三，加強我們的平台；第四，為我們的文化注入活力。

Before I start, I'd like to highlight 3 recent additions to our leadership team. each of whom will contribute meaningfully to the ongoing execution of our strategic priorities. Eric Chan has joined us as Chief Business and Strategy Officer; Amy Thompson, as Chief People Officer; and Zac Posen as Creative Director of Gap Inc. and Chief Creative Officer of Old Navy.

在開始之前，我想先重點介紹一下我們領導團隊最近新增的 3 位成員。他們每個人都將為我們策略優先事項的持續執行做出有意義的貢獻。 Eric Chan 加入我們，擔任首席業務和策略長；艾米·湯普森 (Amy Thompson)，擔任首席人力官； Zac Posen 擔任 Gap Inc. 創意總監和 Old Navy 首席創意長。

I've been purposeful in thinking about the talent and skills these executives bring and how they complement our existing institutional knowledge. These new leaders will play critical roles in unlocking our full potential and solidifying our foundation as we redefine Gap Inc. for a new era, one where financial and operational rigor is a cornerstone of strength, bolstered by best-in-class talent and a culture of creativity, all paving the way for brand reinvigoration and greater cultural relevance.

我一直有目的地思考這些高階主管帶來的才能和技能，以及他們如何補充我們現有的機構知識。在我們重新定義Gap Inc. 進入新時代的過程中，這些新領導者將在釋放我們的全部潛力和鞏固我們的基礎方面發揮關鍵作用，在這個時代，財務和營運的嚴謹性是我們實力的基石，並得到一流人才和文化的支持。創造力，所有這些都為品牌重振和更大的文化相關性鋪平了道路。

We are pleased with the results of the quarter as we exceeded expectations on several key metrics, driven by our strategic priorities. Maintaining and delivering financial and operational rigor strengthened our financial footing in 2023, showing that we can drive more efficiency and productivity, enabling us to focus on brand reinvigoration.

我們對本季的業績感到滿意，因為在我們的策略優先事項的推動下，我們在幾個關鍵指標上超出了預期。維持和實現財務和營運的嚴謹性增強了我們 2023 年的財務基礎，這表明我們可以提高效率和生產力，使我們能夠專注於品牌復興。

We've made a lot of progress delivering cost savings and gross margin expansion and this work helped us deliver meaningful improvement in adjusted operating margin of 410 basis points for 2023.

我們在節省成本和擴大毛利率方面取得了很大進展，這項工作幫助我們在 2023 年調整後營業利潤率實現了 410 個基點的有意義的改善。

Our focus on controlling the controllables also resulted in better working capital and a stronger balance sheet at year-end. This includes reducing our inventory levels by 16% year-over-year, building a strong cash balance of $1.9 billion and generating over $1.1 billion in free cash flow. These proof points put us on strong financial footing as we begin 2024.

我們對控制可控因素的關注也帶來了更好的營運資本和更強大的年末資產負債表。這包括將我們的庫存水準年減 16%，建立 19 億美元的強勁現金餘額，並產生超過 11 億美元的自由現金流。這些證據為我們在 2024 年伊始奠定了堅實的財務基礎。

Our results in the fourth quarter demonstrate strong progress not only in terms of improved margins and well-controlled expenses, but also with more stability in net sales. Net sales grew by 1% and comps were flat, with Gap Inc. gaining market share. The sequential improvement, which is noteworthy in a declining apparel market reflects the team's responsiveness and nimbleness as we begin our brand reinvigoration work.

我們第四季的業績不僅在利潤率提高和費用控制良好方面取得了強勁進展，而且在淨銷售額方面也更加穩定。淨銷售額成長 1%，與去年同期持平，Gap Inc. 贏得了市場份額。在不斷下滑的服裝市場中值得注意的連續改善反映了我們開始品牌振興工作時團隊的反應能力和靈活性。

Old Navy comps increased 2%, and we were pleased to gain share in women's for the fourth quarter, building on the success we saw in the third quarter. We are also encouraged that we increased our foothold in 2 key categories: Active and Bottoms.

Old Navy 的業績成長了 2%，我們很高興在第三季取得成功的基礎上，第四季在女裝市場上獲得了份額。我們也感到鼓舞的是，我們在兩個關鍵類別中取得了立足點：主動型和底部型。

As the #5 player in the Active space, we are excited for Old Navy to accelerate in this leading category. The all-important Bottoms category creates additional opportunities because it's the gateway to the full wardrobe. Gap brand's comps were up 4%, driven by strength in women's where we delivered our fifth consecutive quarter of market share gains.

作為活躍領域的第五名玩家，我們很高興 Old Navy 在這一領先類別中加速發展。最重要的下裝類別創造了額外的機會，因為它是通往完整衣櫃的門戶。受女裝市場實力的推動，Gap 品牌的比較成長了 4%，我們連續第五個季度實現市場份額成長。

This result was amplified by good performances in denim and sweaters supported by new marketing campaigns. Banana Republic comps were down 4% as we conduct deliberate and ongoing work to reestablish the brand. And Athleta's comps were down 10% as we lapped a period of heavy discounting that we previewed last quarter. but improved sequentially driven by new holiday product, updated marketing and improved in-store presentation.

在新的行銷活動的支持下，牛仔布和毛衣的良好表現進一步放大了這一結果。由於我們進行深思熟慮且持續的重建品牌工作，Banana Republic 的股價下跌了 4%。由於我們經歷了上個季度預測的大幅折扣期，Athleta 的比較下降了 10%。但在新的假期產品、更新的營銷和改進的店內展示的推動下，業績環比有所改善。

We expanded our company gross margin by 530 basis points. ahead of expectations, driven by more effective sourcing strategies and lower commodity costs, combined with improved promotional activities, leaner inventories and better assortments. We also increased our operating margin by 570 basis points to 5%.

我們將公司毛利率提高了 530 個基點。在更有效的採購策略和更低的商品成本以及改進的促銷活動、更精簡的庫存和更好的品種的推動下，業績超出預期。我們也將營業利益率提高了 570 個基點，達到 5%。

Our team is demonstrating the ability to do what we say we're going to do, and in some cases, even more. However, we're not where we need to be. Our ongoing focus on financial and operational rigor will allow us to continue to elevate our performance, improve execution consistency and set the foundation for our exciting brand reinvigoration work.

我們的團隊正在展示我們有能力做到我們所說的事情，在某些情況下，甚至更多。然而，我們還沒有到達我們需要到達的地方。我們對財務和營運嚴謹性的持續關注將使我們能夠繼續提高績效，提高執行一致性，並為我們令人興奮的品牌復興工作奠定基礎。

Turning to our next priority, brand reinvigoration is about driving both relevance and revenue inspired by our brand's incredible heritage. As a reminder, this strategic priority begins with strengthening the identities and purpose of each of our brands. We are striving for each brand to have trend-right product assortments rooted in customer-centric design thinking and a clear point of view that delivers on both wants and needs.

談到我們的下一個優先事項，品牌復興是在我們品牌令人難以置信的傳統的啟發下推動相關性和收入。提醒一下，這個策略重點始於加強我們每個品牌的身份和宗旨。我們致力於讓每個品牌擁有符合潮流的產品組合，這些產品系列植根於以客戶為中心的設計思維和滿足需求的清晰觀點。

From there, we need to execute several key ingredients. We must consistently deliver product storytelling that excites our customers, supported by compelling merchandising. We need to drive demand with innovative marketing to regain a powerful voice in the cultural conversation and we must create better, more engaging omnichannel experiences with a clear and compelling pricing strategy.

從這裡開始，我們需要執行幾個關鍵要素。我們必須始終如一地講述讓客戶興奮的產品故事，並輔以引人注目的推銷。我們需要透過創新行銷來推動需求，以在文化對話中重新獲得強大的話語權，並且我們必須透過清晰且引人注目的定價策略創造更好、更具吸引力的全通路體驗。

And most importantly, we must execute with excellence along every touch point and interaction. These elements form the basis of our brand reinvigoration playbook. While specific execution will differ by brand, we are working with each of our brand teams to implement this playbook holistically and consistently.

最重要的是，我們必須在每個接觸點和互動中出色地執行。這些元素構成了我們品牌復興策略的基礎。雖然具體執行會因品牌而異，但我們正在與每個品牌團隊合作，全面、一致地實施本劇本。

Now I'd like to provide an update on the progress of each brand. Let's start with Old Navy. We are encouraged by the sales performance we saw in the back half of 2023 and the growth we delivered in the quarter. we are reasserting Old Navy's authority as the #2 apparel brand in the U.S. We delivered on-trend products, particularly in Women's, Active, Bottoms and Knit which performed well in the quarter. Supported by our campaign with Natasha Lyonne, we showcased and leveraged our authority in the Bottoms business and saw great response, especially to the Taylor Pant, the refreshed Pixie pant and the cargo.

現在我想介紹每個品牌的最新進展。讓我們從老海軍開始。我們對 2023 年下半年的銷售業績以及本季實現的成長感到鼓舞。我們正在重申 Old Navy 作為美國第二大服裝品牌的權威。我們提供流行產品，特別是女裝、運動裝、下裝和針織品，在本季度表現良好。在 Natasha Lyonne 的活動支援下，我們展示並利用了我們在下裝業務中的權威，並獲得了熱烈反響，尤其是 Taylor 褲子、煥然一新的 Pixie 褲子和工裝褲。

We are celebrating fashion, family and fun through more precise marketing and storytelling. Another example of reasserting our authority is Jingle Jammies. We took our famous Jingle Jammies and created Jingle Glammies, supporting it through a compelling social media campaign where influencers paired jammies with going outwear. This demonstrates how we take a product and make it a trend by dialing it up in a relevant way through storytelling.

我們透過更精準的行銷和故事敘述來慶祝時尚、家庭和樂趣。另一個重申我們權威的例子是 Jingle Jammies。我們採用著名的 Jingle Jammies 設計了 Jingle Glammies，並透過引人注目的社交媒體活動來支持它，其中有影響力的人將睡衣與外出服搭配。這展示了我們如何透過講故事以相關的方式將產品變成一種趨勢。

Old Navy is reinforcing value by communicating to customers with more clarity on price and quality both in stores and online, highlighting the brand's value proposition. We're starting to see the strength of the brand identity evolving and coming alive through online and visual communications. The progress we are making at Old Navy gives us confidence in our ability to build consistency while we deliver against our priorities.

Old Navy 透過在商店和網路上與客戶更清晰地溝通價格和品質來增強價值，突顯品牌的價值主張。我們開始看到品牌形象的力量透過線上和視覺傳播不斷發展和活躍。 Old Navy 的進展讓我們對在實現優先事項的同時保持一致性的能力充滿信心。

Let's turn to Gap Brand. We are driving continuous improvement and Gap has exciting potential as we focus on reigniting the brand dialogue. Gap was built on strong product narratives with brilliant marketing, expressed through big ideas. Gap in its best days was a storyteller, who can take a product and create a trend using culturally relevant marketing.

讓我們來看看Gap品牌。我們正在推動持續改進，Gap 擁有令人興奮的潛力，因為我們專注於重新點燃品牌對話。 Gap 建立在強大的產品敘事和出色的行銷基礎上，透過偉大的創意來表達。 Gap 在其鼎盛時期是一個講故事的人，他可以利用與文化相關的營銷手段來創造一種產品並創造一種趨勢。

During the fourth quarter, our team took CashSoft Gap's innovative, washable fabric that feels like Cashmere and turned it into a big idea through creative storytelling, supported by elevated marketing and an in-store design and digital presentation.

在第四季度，我們的團隊採用了CashSoft Gap 的創新、可洗的羊絨面料，並通過創意故事講述將其變成了一個偉大的創意，並得到了提升的營銷和店內設計和數字演示的支持。

We amplified this innovative product idea and it became a key contributor to the strength in sweaters we saw during the quarter. Its success is an important proof point that shows we can reignite Gap with big ideas and deliver improved results. And now we're going to build on that example with relentless repetition.

我們放大了這個創新產品理念，它成為我們在本季看到的毛衣實力的關鍵貢獻者。它的成功是一個重要的證明，表明我們可以用偉大的想法重新點燃 Gap 並提供更好的成果。現在我們將在這個例子的基礎上不斷地重複。

Our lending campaign, which launched in late February is the big idea for spring. The campaign is running now, and I encourage you to take a look. This is a great example of the brand taking trend-right product and amplifying it. turning it into a big idea, expressed through compelling in-store merchandising and strong digital execution with an innovative and culturally relevant marketing campaign entitled Linen Moves, featuring musical artists, Tyla and Jungle. We struck a culture record on Instagram and TikTok. Linen Moves was Gap brand's highest-performing video on both platforms ever and we're just getting started.

我們在二月下旬推出的貸款活動是春季的重要創意。活動正在進行中，我鼓勵您觀看。這是該品牌採用潮流產品並加以放大的一個很好的例子。將其變成一個偉大的想法，透過引人注目的店內行銷和強大的數位執行力，以及由音樂藝術家 Tyla 和 Jungle 主演的名為 Linen Moves 的創新且與文化相關的行銷活動來表達。我們在 Instagram 和 TikTok 上創下了文化記錄。 Linen Moves 是 Gap 品牌有史以來在兩個平台上表現最好的視頻，而我們才剛剛開始。

Regarding Banana Republic, we are focused on reestablishing this brand to thrive in the premium lifestyle space. As I've dug in with the Banana Republic team, I've realized that we are behind on the fundamentals, having the right product in the right place with the right price. 2024 will be about getting back to the basics, both for product and execution.

關於香蕉共和國，我們致力於重建這個品牌，以在高端生活方式領域蓬勃發展。當我與香蕉共和國團隊深入合作時，我意識到我們在基本面方面落後了，無法在正確的地點以正確的價格提供正確的產品。 2024 年，產品和執行都將回歸基本面。

This includes a focus on go-to wardrobe pieces and BR classics like sweaters, Oxfords, suit separates and Khakis, those products that Banana Republic has been known for and will be again. We're encouraged by the brand aesthetic, but it will take some time to get this right and unlock the potential of this business.

其中包括重點關注衣櫥必備單品和 BR 經典單品，如毛衣、牛津鞋、單件西裝和卡其褲，這些產品是 Banana Republic 一直以來並會再次聞名的產品。我們對品牌美學感到鼓舞，但需要一些時間才能做到這一點並釋放這項業務的潛力。

Turning to Athleta. As we shared with you last quarter, the brand had missteps in prior years. And as a result, net sales for the brand remained muted in Q4 as we lap markdowns, a challenge that we will continue to face through the first half of 2024. Athleta is a brand with significant growth potential and a clear and distinct positioning rooted in the Power of She.

轉向運動員。正如我們上季度與您分享的那樣，該品牌在前幾年曾犯過錯誤。因此，隨著我們進行降價促銷，該品牌在第四季度的淨銷售額仍然保持低迷，這是我們在2024 年上半年將繼續面臨的挑戰。Athleta 是一個具有巨大增長潛力的品牌，其明確而獨特的定位植根於她的力量。

Early holiday ideas like Cold Weather Train and our Shine sets sold well. these great ideas were ultimately bought too small, but they are good proof points that we are on the right track at Athleta. We're making progress in resetting this brand, returning to the core of Athleta's positioning. We started the new year with a cleaner palette, and we've seen early successes in new arrivals, although the changes are small, we are learning and encouraged by the customers' early reactions.

寒冷天氣列車和我們的 Shine 套裝等早期度假創意賣得很好。這些偉大的想法最終被買得太小了，但它們很好地證明了我們 Athleta 走在正確的道路上。我們在重塑這個品牌、回歸 Athleta 定位的核心方面取得了進展。我們以更乾淨的調色板開始了新的一年，我們看到了新產品的早期成功，儘管變化很小，但我們正在學習並受到客戶的早期反應的鼓舞。

We're focused on resetting the brand for success and putting Athleta back at the center of the cultural wellness conversation while reengaging the brand's performance roots.

我們致力於重塑品牌以取得成功，讓 Athleta 重新成為文化健康對話的中心，同時重新發揮品牌的性能根源。

Moving to the third strategic priority, strengthening our platform. We're focused on building and sharpening our operational capabilities to improve effectiveness and efficiency and in turn, drive cost leverage and demand generation. I recently returned from a 2-week trip to Asia, during which I immersed myself in our supply chain infrastructure. I spent time listening, learning and understanding the facets of our supply chain network and I have gained insight into the incredible long-standing partnerships that we have built over the years.

第三個策略重點是加強我們的平台。我們專注於建立和增強我們的營運能力，以提高有效性和效率，進而推動成本槓桿和需求產生。我最近結束了為期兩週的亞洲之旅，期間我沉浸在我們的供應鏈基礎設施中。我花時間傾聽、學習和了解我們供應鏈網絡的各個方面，並深入了解了我們多年來建立的令人難以置信的長期合作夥伴關係。

I also spent time in our Hyderabad office in India, studying our technology tools and capabilities. While encouraging, this is an area that we will be focused on elevating as part of our path to becoming a high performing apparel company. We are still in the assessment phase but my intent is to cultivate a digital-first organization and mindset that uses technology to enable business strategy, enhance the customer experience and capture future opportunities.

我還在印度海得拉巴辦事處花了一些時間研究我們的技術工具和能力。雖然令人鼓舞，但這是我們將重點提升的一個領域，作為我們成為高性能服裝公司的一部分。我們仍處於評估階段，但我的目的是培養數位優先的組織和思維方式，利用技術來實現業務策略、增強客戶體驗並抓住未來的機會。

We are also beginning to evaluate how we can better leverage our media and marketing with the goal of developing more compelling creative and more innovative media to support growth across the portfolio.

我們也開始評估如何更好地利用我們的媒體和行銷，以開發更具吸引力的創意和更具創新性的媒體來支持整個投資組合的成長。

I believe our platform gives us meaningful differentiation and has the potential to unlock additional value creation, and we will work to further build out our capabilities to drive efficiency and effectiveness.

我相信我們的平台為我們帶來了有意義的差異化，並有潛力創造額外的價值，我們將努力進一步增強我們的能力，以提高效率和效益。

The fourth priority is culture. Energizing our culture will fuel creativity and connectivity, while driving accountability across our organization. As I mentioned earlier, the recent appointment of Amy Thompson has bolstered our leadership team and underscored our investment in building a culture where employees show up every day with purpose and a sense of belonging.

第四個重點是文化。激發我們的文化將激發創造力和連結性，同時推動整個組織的問責制。正如我之前提到的，艾米湯普森 (Amy Thompson) 最近的任命增強了我們的領導團隊，並突顯了我們對建立文化的投資，讓員工每天都有目標和歸屬感。

Amy is a builder of highly effective cultures that integrate purpose, vision, mission and values throughout an end-to-end employee experience, all dedicated to driving business success. This includes igniting a growth mindset with empowered leaders and aligned incentives. I'm confident she will help us build a winning culture at Gap Inc.

艾米是高效文化的建設者，將目標、願景、使命和價值觀融入到端到端的員工體驗中，所有這些都致力於推動業務成功。這包括透過授權的領導者和一致的激勵措施來激發成長心態。我相信她將幫助我們在 Gap Inc. 建立成功的文化。

Today, our company is on strong financial footing. In 2024, we will continue to strengthen our fundamentals as we focus on our 4 strategic priorities. While there is a lot of work to do, I am energized by the progress we have made so far, and I'm inspired by the team's commitment and talent.

今天，我們公司擁有強大的財務基礎。 2024年，我們將繼續夯實基礎，並專注於四大策略重點。雖然還有很多工作要做，但我們迄今為止所取得的進展讓我倍感振奮，團隊的承諾和才華也讓我深受鼓舞。

I want to take a moment to recognize our global team for their ongoing dedication and I look forward to continuing this work in partnership with them as we drive towards becoming a high-performing apparel company.

我想花點時間來表彰我們的全球團隊的持續奉獻，我期待與他們合作繼續這項工作，因為我們正在努力成為一家高績效的服裝公司。

And now I will turn the call to Katrina for a closer look at our financials and our outlook for 2024.

現在我將致電卡崔娜颶風，詳細了解我們的財務狀況和 2024 年的前景。

Thank you, Richard, and thanks, everyone, for joining us this afternoon. We're pleased to report fourth quarter and full year 2023 results ahead of our expectations with market share gains. We remain focused on the discipline we've created around margin recovery, expense actions, inventory management and maintaining a strong balance sheet.

謝謝理查德，也謝謝大家今天下午加入我們。我們很高興地報告 2023 年第四季度和全年業績，市場份額有所增長，超出了我們的預期。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 financial and operational rigor continues to be foundational as we turn our attention to the reinvigoration of our brands in 2024.

正如理查德指出的那樣，當我們將注意力轉向 2024 年品牌的重振時，我們的財務和營運嚴謹性仍然是基礎。

Before we begin, I'll note that all results reported today are inclusive of the 53rd week, except for comparable sales metrics. Some of the key highlights from fourth quarter and fiscal 2023 include the following: Fourth quarter comparable sales were flat and net sales were up 1%, ahead of our expectations driven by Old Navy and Gap Brand sales results during the important holiday season.

在開始之前，我要指出的是，今天報告的所有結果均包含第 53 週的數據，但可比較的銷售指標除外。第四季和 2023 財年的一些主要亮點包括：第四季可比銷售額持平，淨銷售額成長 1%，超出了我們對 Old Navy 和 Gap Brand 在重要假期季節銷售業績的預期。

And while full year 2023 comparable sales were down 2% and net sales declined 5% year-over-year, this performance was in line with the outlook we provided at the beginning of the year as our financial and operational rigor begins to deliver more consistent performance.

儘管 2023 年全年可比銷售額同比下降 2%，淨銷售額同比下降 5%，但這一業績與我們年初提供的前景相符，因為我們的財務和營運嚴謹性開始變得更加一致表現。

Old Navy drove a positive 2% comparable sales in the quarter, building increased confidence in consistent delivery of net sales growth. For the year, Old Navy comparable sales were down 1%, with positive comp performance in the second half of the year and market share gains in all 4 quarters.

Old Navy 本季可比銷售額成長 2%，增強了人們對持續實現淨銷售額成長的信心。今年，Old Navy 的可比銷售額下降了 1%，下半年的可比業績良好，所有 4 個季度的市場份額均有所增長。

Gap Brand drove 4% quarterly comparable sales growth with a positive 1% comp for the year, outpacing the market. We delivered 530 basis points of gross margin expansion in Q4 and 380 basis points of expansion for the year versus last year's adjusted gross margin, resulting from trend right product which when combined with well-managed inventories led to improved promotional activity.

Gap Brand 推動季度可比銷售額成長 4%，全年可比銷售額成長 1%，超過市場。與去年調整後的毛利率相比，我們第四季度的毛利率增長了530 個基點，今年的毛利率增長了380 個基點，這得益於趨勢正確的產品，與管理良好的庫存相結合，改善了促銷活動。

Margins also benefited from lower commodity costs. We reduced fiscal 2023 SG&A by over $300 million year-over-year on an adjusted basis as a result of our commitment to financial discipline, all of which resulted in an operating margin of 5% for Q4 and an adjusted operating margin of 4.1% for the year, a 410 basis point improvement versus last year's adjusted operating margin. demonstrating meaningful progress on our path towards profitable sales growth.

利潤率也受益於商品成本的降低。由於我們對財務紀律的承諾，我們在調整後的基礎上將2023 財年的SG&A 同比減少了超過3 億美元，所有這些導致第四季度的營業利潤率為5%，第四季度的調整後營業利潤率為4.1%今年調整後的營業利潤率比去年提高了 410 個基點。展示我們在實現盈利性銷售成長的道路上取得的有意義的進展。

Inventories ended down 16% year-over-year and remained well controlled, driving better profitability and working capital. And we ended the year with $1.9 billion of cash on the balance sheet, delivering $1.1 billion of free cash flow for the year.

庫存年減 16%，且保持良好控制，推動獲利能力和營運資本改善。截至年底，我們的資產負債表上有 19 億美元的現金，全年自由現金流為 11 億美元。

While we enter fiscal 2024 encouraged by the financial progress we've made, we are taking a balanced view of 2024 while we shore up the foundation of our brands. I will discuss our outlook in more detail in a moment.

在進入 2024 財年時，我們對所取得的財務進展感到鼓舞，但我們在鞏固品牌基礎的同時，對 2024 年持平衡的看法。我稍後將更詳細地討論我們的前景。

Let me start with fourth quarter results. Net sales for the quarter were up 1% to last year at $4.3 billion, exceeding our previously communicated guidance range and comparable sales were flat. The 53rd week added approximately 4 percentage points of sales growth in the quarter.

讓我從第四季的業績開始。該季度的淨銷售額比去年同期增長 1%，達到 43 億美元，超出了我們先前公佈的指導範圍，可比銷售額持平。第 53 週為本季銷售額成長約 4 個百分點。

Also, the sale of Gap China last year had an estimated 2-point negative impact to Gap Inc's total net sales growth.

此外，去年Gap中國的出售預計對Gap Inc的總淨銷售額成長產生了2個百分點的負面影響。

Now let me provide fourth quarter sales results by brand. Starting with Old Navy, net sales were $2.3 billion, up 6% versus last year, with comparable sales up 2%. And -- this represented the second consecutive quarter of positive comps at the brand.

現在讓我提供以品牌劃分的第四季銷售業績。從 Old Navy 開始，淨銷售額為 23 億美元，比去年增長 6%，可比銷售額增長 2%。而且——這代表了該品牌連續第二個季度取得積極業績。

Turning to Gap Brand. Gap Brand net sales of $1 billion were down 5% versus last year. Excluding the estimated negative impact to sales of 8 percentage points related to the sale of Gap China, net sales would have been up 3% versus last year. Comparable sales inflected positively, increasing 4% driven by continued strength in Women's, which gained market share for the fifth quarter in a row.

轉向Gap品牌。 Gap Brand 淨銷售額為 10 億美元，比去年下降 5%。剔除因出售Gap中國而對銷售額造成的8個百分點的預期負面影響，淨銷售額將比去年增長3%。在女裝持續強勁的推動下，可比銷售額出現積極變化，增長了 4%，連續第五個季度增加了市場份額。

Banana Republic net sales of $567 million declined 2% year-over-year with comparable sales down 4%. Reestablishing Banana Republic will take time, and we know there's work to be done to better execute many of the fundamentals in 2024.

Banana Republic 淨銷售額為 5.67 億美元，較去年同期下降 2%，可比銷售額下降 4%。重建香蕉共和國需要時間，我們知道，要在 2024 年更好地執行許多基本原則，還有很多工作要做。

Athleta net sales of $419 million declined 4% versus last year. Comparable sales were down 10%. While the sales trend improved versus the prior quarter, net sales performance was still challenged due to tougher comparisons as we anniversary a period of elevated discounting, a dynamic which we expect will continue through the first half of fiscal 2024.

Athleta 淨銷售額為 4.19 億美元，比去年下降 4%。可比銷售額下降 10%。儘管銷售趨勢較上一季有所改善，但由於折扣力度加大周年紀念日之際，由於比較更加嚴格，淨銷售業績仍面臨挑戰，我們預計這種動態將持續到 2024 財年上半年。

While Athleta sales remain negative from the headwinds related to lapping last year's significant promotions, we're encouraged by the positive customer reaction to our new assortment, cleaner store presentations, improved online experiences, better marketing execution and innovative new customer activations, which give us confidence that the brand's efforts are driving underlying benefits.

雖然Athleta 的銷售額因去年的重大促銷活動而受到不利影響，但仍處於負增長狀態，但客戶對我們的新品種、更乾淨的商店展示、改進的在線體驗、更好的營銷執行和創新的新客戶啟動的正面反應令我們感到鼓舞，這給了我們相信品牌的努力正在推動潛在效益。

Now turning to gross margin in the quarter. Gross margin of 38.9% expanded 530 basis points versus last year. Merchandise margin increased 500 basis points in the quarter compared to last year, driven by an estimated 300 basis points of leverage from lower commodity and air freight costs. With the remaining leverage primarily driven by improved promotional activity, ahead of expectations as strong holiday assortments and well-controlled inventory enabled lower discounting during the season.

現在轉向本季的毛利率。毛利率為 38.9%，較去年擴大 530 個基點。與去年相比，本季的商品利潤率增加了 500 個基點，主要原因是商品和空運成本下降帶來了約 300 個基點的槓桿作用。剩餘槓桿主要由促銷活動改善推動，由於假日品種強勁和庫存控制良好，使得本季折扣較低，超出預期。

Rent, occupancy and depreciation modestly declined on a nominal dollar basis versus last year as a percentage of sales, ROD leveraged 30 basis points.

與去年相比，租金、入住率和折舊率以名目美元計算佔銷售額的百分比略有下降，ROD 槓桿率提高了 30 個基點。

Now let me turn to SG&A. SG&A was $1.46 billion in the quarter, largely in line with our prior outlook. As a percentage of sales, SG&A of 33.9% leveraged 40 basis points versus last year. Operating income was $214 million, up $244 million versus last year. Fourth quarter operating margin of 5% improved 570 basis points versus last year, driven primarily by gross margin expansion.

現在讓我來談談SG&A。本季 SG&A 為 14.6 億美元，基本上符合我們先前的預期。 SG&A 佔銷售額的百分比為 33.9%，槓桿率比去年提高了 40 個基點。營業收入為 2.14 億美元，比去年增加 2.44 億美元。第四季營業利潤率為 5%，比去年同期提高了 570 個基點，主要是由於毛利率擴張所致。

Fourth quarter net interest income was $4 million as higher interest earned on cash balances offset interest expense. Our fourth quarter tax rate was 15.1% and benefited from the release of certain reserves. Earnings per share in the quarter were $0.49.

第四季淨利息收入為 400 萬美元，因為現金餘額賺取的利息增加抵消了利息支出。我們第四季的稅率為15.1%，受益於部分準備金的釋放。該季度每股收益為 0.49 美元。

Now turning to full year fiscal 2023 results. Net sales were down 5% to last year at $14.9 billion and comparable sales were down 2%. The addition of the 53rd week contributed approximately 1 point of sales growth to the full year. and the sale of Gap China in fiscal 2022 had an estimated 2-point negative impact to Gap Inc's total net sales growth.

現在轉向 2023 財年全年業績。淨銷售額較去年下降 5%，為 149 億美元，可比銷售額下降 2%。第53週的增加為全年貢獻了約1個百分點的銷售成長。 2022財年出售Gap中國預計對Gap Inc的總淨銷售額成長產生2個百分點的負面影響。

Gross margin was 38.8%, expanding 450 basis points versus last year's reported gross margin and 380 basis points versus last year's adjusted gross margin. Merchandise margin increased 420 basis points versus last year on an adjusted basis, driven by 200 basis points of benefit from lower air freight expense, with the remaining expansion primarily driven by improved promotional activity.

毛利率為 38.8%，比去年報告的毛利率增加 450 個基點，比去年調整後的毛利率增加 380 個基點。商品利潤率經調整後較去年增長 420 個基點，主要得益於航空貨運費用下降 200 個基點，其餘增長主要由促銷活動改善推動。

Inflationary impacts from commodity costs were relatively neutral to the year. And ROD as a percentage of sales deleveraged 40 basis points versus last year. Reported SG&A was $5.22 billion for the year or 35% of sales. Excluding restructuring costs and a gain related to the sale of an office building, adjusted SG&A was $5.17 billion, down 6% versus last year, primarily driven by cost savings as a result of strategic actions.

與今年相比，大宗商品成本對通膨的影響相對中性。 ROD 佔銷售額的百分比比去年下降了 40 個基點。報告的當年 SG&A 為 52.2 億美元，佔銷售額的 35%。不包括重組成本和與出售辦公大樓相關的收益，調整後的 SG&A 為 51.7 億美元，比去年下降 6%，這主要是由於戰略行動帶來的成本節省。

Reported operating margin was 3.8%, and -- excluding $93 million in restructuring costs and $47 million related to the gain on sale of an office building, adjusted operating margin of 4.1% expanded 410 basis points versus last year.

報告的營業利潤率為 3.8%，排除 9,300 萬美元的重組成本和與出售辦公大樓收益相關的 4,700 萬美元，調整後的營業利潤率為 4.1%，比去年增加了 410 個基點。

Fiscal year 2023 net interest expense was $4 million as interest expense was largely offset by interest earned on cash balances. The reported effective tax rate was 9.7% for the year and the adjusted effective tax rate was 11%.

2023 財年的淨利息支出為 400 萬美元，因為利息支出大部分被現金餘額賺取的利息所抵銷。本年度報告的有效稅率為9.7%，調整後的有效稅率為11%。

During the year, we received discrete tax benefits from the impact of foreign operations, a transfer pricing settlement related to sourcing activities and the release of certain reserves. Share count ended at 372 million. Reported earnings per share was $1.34. Excluding the impact of restructuring and the gain on sale of the office building, adjusted earnings per share was $1.43. Adjusted earnings per share includes $0.29 of discrete tax benefits and a $0.05 benefit related to the 53rd week.

年內，我們因海外業務的影響、與採購活動相關的轉讓定價和解以及釋放某些儲備而獲得了離散的稅收優惠。截至股數為 3.72 億股。報告每股收益為 1.34 美元。排除重組的影響和出售辦公大樓的收益，調整後每股收益為1.43美元。調整後每股收益包括 0.29 美元的離散稅收優惠和與第 53 週相關的 0.05 美元福利。

Now turning to the balance sheet and cash flow. Inventory levels were meaningfully below last year in all quarters, with fiscal 2023 ending inventory declining 16% year-over-year. We ended the year with cash and equivalents of $1.9 billion, an increase of 54% from last year.

現在轉向資產負債表和現金流量。所有季度的庫存水平均顯著低於去年，2023 財年期末庫存年減 16%。截至年底，我們的現金及等價物為 19 億美元，比去年增長 54%。

Full year net cash from operating activities was $1.5 billion as a result of our improved operating profit and lower inventory buys. Free cash flow was an inflow of $1.1 billion.

由於我們的營業利潤提高和庫存採購減少，全年經營活動產生的淨現金為 15 億美元。自由現金流流入為 11 億美元。

We remain committed to delivering an attractive quarterly dividend as a core component of total shareholder returns. During the year, we returned $222 million to shareholders in the form of dividends, representing annual dividend of $0.60 per share. On February 27, our Board approved maintaining a dividend of $0.15 per share for the first quarter of fiscal 2024.

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。年內，我們以股息形式向股東返還 2.22 億美元，即每股年度股息 0.60 美元。 2 月 27 日，我們的董事會批准維持 2024 財年第一季每股 0.15 美元的股利。

In summary, as I reflect on 2023, I'm proud of the discipline and rigor we brought back into our foundation, which has resulted in meaningful recovery in profits as well as strong free cash flow. I'm also encouraged by the progress we made in the second half of the year, with sales stabilizing in the fourth quarter, led by progress at Old Navy and Gap, early proof points of brand reinvigoration.

總而言之，當我回顧 2023 年時，我為我們在基金會中恢復的紀律和嚴謹感到自豪，這導致了利潤的有意義的復甦以及強勁的自由現金流。我也對我們下半年的進展感到鼓舞，第四季度的銷售額在 Old Navy 和 Gap 的進展帶動下趨於穩定，這是品牌重振的早期證據。

We remain committed in 2024 to delivering continued improved performance through maintaining our financial and operational rigor.

我們仍然致力於在 2024 年透過保持財務和營運的嚴謹性來持續改進業績。

Now let me turn to our 2024 outlook. Our attention in 2024 remains on controlling the controllables, gross margin recovery, expense discipline, inventory management and maintaining a strong balance sheet, while we continue the foundational work related to our brands as we aspire to drive relevance and revenue.

現在讓我談談我們對 2024 年的展望。 2024 年，我們的注意力仍然集中在控制可控因素、毛利率恢復、費用紀律、庫存管理和保持強勁的資產負債表上，同時我們繼續開展與我們品牌相關的基礎工作，因為我們渴望提高相關性和收入。

We expect this rigor to deliver roughly flat sales, excluding the 53rd week, while delivering low to mid-teens operating income growth.

我們預計，這種嚴格的要求將帶來大致持平的銷售額（不包括第 53 週），同時實現低至中雙位數的營業收入成長。

Let me provide some details on our outlook, starting with the full year 2024. Our outlook of flat net sales year-over-year, excluding the 53rd week, assumes continued performance at Old Navy and Gap, offset by challenging comparison for Athleta in the first half of the year as the brand laps elevated discounting from 2023 and a longer recovery time line at Banana Republic.

讓我提供一些關於我們展望的細節，從2024 年全年開始。我們對淨銷售額同比持平（不包括第53 週）的展望是假設Old Navy 和Gap 的持續表現，但被Athleta 的挑戰性比較所抵銷。今年上半年，該品牌從 2023 年起開始加大折扣力度，而 Banana Republic 的恢復時間也更長。

This net sales outlook also contemplates the following unique dynamics. First, as a reminder, 2024 is a 52-week year, but will be compared in total to a 53-week year in 2023. The loss of the 53rd week results in a detrimental impact of approximately $160 million to fiscal 2024 net sales.

這項淨銷售前景也考慮了以下獨特的動態。首先，提醒一下，2024 年是一個為期52 週的年份，但總體而言將與2023 年為期53 週的年份進行比較。第53 週的損失會對2024 財年的淨銷售額造成約1.6 億美元的不利影響。

It's worth noting that the timing shifts associated with the 53rd week are expected to be impactful to both Q1 and Q4 in 2024. In the first quarter, we expect to benefit from the timing shifts as we lose a low volume week in February and add a modestly larger week in May. Additionally, the fourth quarter is expected to be negatively impacted by the loss of the 53rd week.

值得注意的是，與第53 週相關的時間變化預計將對2024 年第一季和第四季產生影響。在第一季度，我們預計將從時間變化中受益，因為我們失去了2 月的低成交量週，並增加了五月的一周規模稍大。此外，預計第 53 週的損失將對第四季度產生負面影響。

Second, we have embedded multiple scenarios that contemplate modest headwinds in the first half of the year related to late deliveries as a result of geopolitical issues in the Red Sea. We currently expect that impact will moderate in the second half of 2024, but we will monitor the situation closely as we move through the year.

其次，我們嵌入了多種情景，考慮到今年上半年因紅海地緣政治問題導致延遲交付而出現的適度阻力。目前，我們預計影響將在 2024 年下半年有所緩解，但我們將在這一年中密切關注事態發展。

And third, we're not anticipating major changes to consumer dynamics and macroeconomic pressures in 2024. In addition, I'd like to comment on the potential impact of the recent CFPB ruling on late fees for credit card holders. Our outlook assumes a midyear implementation of the ruling, which we expect to be largely offset in 2024 by other levers within our credit card program.

第三，我們預計 2024 年消費者動態和宏觀經濟壓力不會發生重大變化。此外，我想評論一下 CFPB 最近對信用卡持有者滯納金的裁決的潛在影響。我們的前景假設該裁決將在年中實施，我們預計該裁決將在 2024 年被我們信用卡計劃中的其他槓桿很大程度上抵消。

Now moving to gross margin. We anticipate gross margin expansion of at least 50 basis points for the full year compared to fiscal 2023's gross margin of 38.8%.

現在轉向毛利率。與 2023 財年 38.8% 的毛利率相比，我們預計全年毛利率將成長至少 50 個基點。

Our gross margin outlook is driven by the following factors: we expect commodity cost tailwinds in the first half of the year, which we anticipate will become largely neutral in the second half of the year. We expect ROD to deleverage modestly on the lower sales volume resulting from the loss of the 53rd week. And we continue to take a measured view of the consumer environment in fiscal 2024, particularly as we lap significant improvements we delivered in promotional activity during 2023.

我們的毛利率前景由以下因素驅動：我們預計上半年商品成本將出現順勢，預計下半年將基本呈現中性。我們預期 ROD 將因第 53 週虧損導致銷售下降而適度去槓桿。我們將繼續對 2024 財年的消費者環境進行審慎評估，特別是在 2023 年促銷活動取得顯著改善的情況下。

Regarding SG&A. SG&A of $5.1 billion is expected to decline year-over-year as we benefit from $150 million in reductions related to last year's strategic actions and lower costs from the loss of the 53rd week, which are partially offset by wage inflation.

關於SG&A。 SG&A 預計將年減 51 億美元，因為我們受益於與去年戰略行動相關的 1.5 億美元削減以及第 53 週損失帶來的成本降低，這部分被工資上漲所抵消。

We are committed to strong financial discipline and we will continue to identify and pursue efficiencies as we drive our strategic plan. Considering the above dynamics regarding sales, gross margin and SG&A, we see a clear path towards delivering low to mid-teens operating income growth in fiscal 2024 versus the $606 million of adjusted operating income in 2023.

我們致力於嚴格的財務紀律，並將在推動策略計劃的過程中繼續確定並追求效率。考慮到上述有關銷售、毛利率和 SG&A 的動態，我們認為，與 2023 財年調整後營業收入 6.06 億美元相比，我們認為 2024 財年實現低至中雙位數營業收入增長的明確道路。

We expect full year net interest expense to be similar to fiscal 2023, with interest expense being largely offset by interest on cash balances. However, we will be watching Fed actions to determine if lower interest rates over time might impact this dynamic in the year.

我們預計全年淨利息支出將與 2023 財年相似，利息支出大部分被現金餘額利息抵銷。然而，我們將關注聯準會的行動，以確定隨著時間的推移，較低的利率是否會影響今年的這一動態。

We are planning for a more normalized tax rate of 28% in 2024, this compares to 9.7% in fiscal 2023 as we benefited from several discrete tax items, which, as previously noted, added approximately $0.29 to fiscal 2023 earnings per share. We are planning capital expenditures of about $500 million for the year.

我們計劃在2024 年將稅率標準化為28%，而2023 財年的稅率為9.7%，因為我們受益於幾個離散的稅收項目，如前所述，這使2023 財年每股收益增加了約0.29美元。我們計劃今年的資本支出約為 5 億美元。

Now let me share some color on our outlook for the first quarter of fiscal 2024. We're pleased with the trends quarter-to-date and are planning for net sales in Q1 to be roughly flat versus Q1 2023. Consistent with our full year view, our first quarter outlook assumes continued performance at Old Navy and Gap, offset by challenging comparison for Athleta and a longer recovery time line at Banana Republic.

現在讓我分享我們對 2024 財年第一季的展望。我們對本季度迄今的趨勢感到滿意，併計劃第一季的淨銷售額與 2023 年第一季大致持平。與我們全年的情況一致我們認為，我們第一季的展望假設Old Navy 和Gap 的業績將持續，但被Athleta 的挑戰性比較和Banana Republic 較長的恢復時間所抵消。

As it relates to first quarter gross margin, we expect at least 100 basis points of expansion compared to the adjusted gross margin of 37.2% in the first quarter of fiscal 2023, driven by commodity cost tailwinds. We continue to take a prudent approach in relation to the promotional environment in the first quarter. And we're planning SG&A of approximately $1.2 billion in the first quarter of fiscal 2024.

由於與第一季毛利率相關，我們預計在大宗商品成本推動下，與 2023 財年第一季 37.2% 的調整後毛利率相比，將至少擴張 100 個基點。我們對第一季的促銷環境持續採取審慎態度。我們計劃 2024 財年第一季的銷售及管理費用約為 12 億美元。

In closing, we're pleased to deliver strong financial results during both the fourth quarter and the full year, demonstrated through gross margin expansion, expense discipline, lean inventory and strong cash generation.

最後，我們很高興在第四季度和全年實現強勁的財務業績，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。

The financial and operational 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.

我們一直致力於發展並將繼續追求的財務和營運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 line for questions. Operator?

這樣，我們將開放提問熱線。操作員？

(Operator Instructions). Our first question comes from the line of Adrienne Yih from Barclays.

（操作員說明）。我們的第一個問題來自巴克萊銀行的 Adrienne Yih。

Great. And congratulations to everybody on the Gap team. Richard my first question is the hiring hof Zac Posen as 2 creative of Gap Inc., but also to creative of Old Navy, the number 1 sort of where his focus obviously is going to be on Old Navy, but how are you expecting him to be used more broadly across Gap Inc.?

偉大的。恭喜 Gap 團隊的每個人。理查德，我的第一個問題是聘用 Zac Posen 作為Gap Inc. 的第二位創意人員，同時也是Old Navy 的創意人員，他的重點顯然是Old Navy 的第一位創意人員，但你希望他如何在 Gap Inc. 中得到更廣泛的使用？

And then historically, Gap has had designers in the fold before and we always say you design for the one in merchandise for the masses. So I just want to get your philosophy on how you kind of expect to keep the guardrails on that.

從歷史上看，Gap 也曾經有過設計師，我們總是說，你的設計是為了大眾的商品。所以我只是想了解一下您希望如何保持護欄的理念。

And then, Katrina, if you could just help us with the $5.1 billion OpEx, it seems very flattish. But you had mentioned that there was -- there were opportunities. It seems a little bit -- it seems a little bit high, I guess, is the way I would put it. So any color there would be great.

然後，卡特里娜，如果你能幫我們解決 51 億美元的營運支出，似乎就很平淡了。但你提到過，有機會。這似乎有點——我想，這似乎有點高，我是這麼說的。所以任何顏色都會很棒。

Sure. Thanks, Adrienne. I appreciate the question. And we're very excited to welcome Zac to the company. and in particular, to our largest brand, Old Navy, where he's going to be serving as Chief Creative Officer.

當然。謝謝，艾德麗安娜。我很欣賞這個問題。我們非常高興地歡迎扎克加入公司。特別是我們最大的品牌 Old Navy，他將擔任品牌的首席創意長。

Zac is one of America's most celebrated designers. His creative expertise is cultural clarity, have consistently evolved American fashion, making him really a great fit for the company as we engage our culture and look to reinvigorate our storied brands.

扎克是美國最著名的設計師之一。他的創意專長是文化清晰度，不斷發展美國時尚，使他非常適合我們公司，因為我們正在融入我們的文化並尋求重振我們的傳奇品牌。

Zac's role as Chief Creative Officer at Old Navy is really designed to harmonize, orchestrate and dial up the storytelling across product and marketing, looking at how we create brand relevance and curate experiences that ultimately celebrate the brand's ownable attributes, fun, fashion and value for the whole family.

扎克作為Old Navy 首席創意官的角色實際上是為了協調、編排和加強產品和營銷中的故事講述，著眼於我們如何創造品牌相關性和策劃體驗，最終頌揚該品牌的可擁有屬性、樂趣、時尚和價值。整個家庭。

Now as Zac gets more immersed in the business, his influence will be really well considered to enhance the continuity of the brand's reinvigoration, which we've already started to see show up on the scoreboard, and his leadership across the portfolio will add a new dimension of relevance. And I'm really looking forward to Zac on the team and having him get immersed in our portfolio at our brands.

現在，隨著扎克更加沉浸在業務中，他的影響力將得到真正充分的考慮，以增強品牌復興的連續性，我們已經開始在記分牌上看到這一點，他在整個產品組合中的領導力將為品牌增添新的活力。相關性維度。我真的很期待扎克加入團隊並讓他沉浸在我們品牌的投資組合中。

And then Adrienne. Yes. Let me take on the SG&A question. It's a great one. And I think you'd agree that our -- we're committed to maintaining financial and operational rigor, which has really strengthened our financial footing. 2023 reflected the benefits of the ongoing work, particularly in terms of margins, expenses, inventory, cash flow. And we just delivered a year with SG&A reductions of approximately $300 million.

然後是艾德麗安娜。是的。讓我來回答一下 SG&A 問題。這是一件很棒的事。我想你會同意我們致力於保持財務和營運的嚴謹性，這確實增強了我們的財務基礎。 2023 年反映了正在進行的工作的效益，特別是在利潤、費用、庫存、現金流方面。我們剛完成了一年的 SG&A 削減約 3 億美元的工作。

The outlook we provided today does reflect another $70 million of reductions. That's really driven by the remaining $150 million reduction from last year's strategic actions, partially offset by inflationary pressures from wages and other headwinds.

我們今天提供的前景確實反映出另外 7000 萬美元的削減。這實際上是由去年戰略行動中剩餘的 1.5 億美元削減推動的，部分被工資和其他不利因素帶來的通膨壓力所抵消。

I believe we can make our cost structure more efficient and drive operating margin expansion. But we have work to do to get back to historical levels. So our outlook today reflects our current point of view, but we'll continue to assess the efficiency of our investments and look for opportunities for reduction or redeployment where it makes sense. So more to come as we move through the year.

我相信我們可以使我們的成本結構更有效率並推動營業利潤率的擴大。但要回到歷史水平，我們還有很多工作要做。因此，我們今天的展望反映了我們當前的觀點，但我們將繼續評估投資的效率，並在有意義的情況下尋找減少或重新部署的機會。隨著這一年的到來，還會有更多的事情發生。

Fantastic, best of luck.

太棒了，祝你好運。

Your next question comes from the line of Bob Drbul from Guggenheim Securities.

您的下一個問題來自古根漢證券公司的鮑勃·德布爾（Bob Drbul）。

Richard, I was wondering if you could spend some more time on the marketing initiatives that are underway. I've seen some changes within Athleta, but I've also seen the Gap campaign has been really highly visible.

理查德，我想知道您是否可以花更多時間在正在進行的行銷活動上。我看到 Athleta 內部發生了一些變化，但我也看到 Gap 活動非常引人注目。

So I guess if you could just talk about how you're approaching it and I guess the level of expense that you're there and sort of the commitment to sort of reinvesting in the marketing, I think that would be pretty helpful for us.

因此，我想如果您能談談您是如何實現這一目標的，我想您在那裡的費用水平以及對行銷再投資的承諾，我認為這對我們非常有幫助。

Sure. Yes, Bob, thank you for the question. But marketing is a much more complex function today than it was in the past. And our brands need to show up where consumers are, but they need to show up in relevant ways and the media mix to create relevant demand creation has changed vastly, and we're approaching it very differently than in the past.

當然。是的，鮑勃，謝謝你的提問。但今天的營銷功能比過去複雜得多。我們的品牌需要出現在消費者所在的地方，但他們需要以相關的方式出現，而創造相關需求的媒體組合已經發生了巨大的變化，我們的處理方式與過去非常不同。

There really is an art and science to creating demand today and Gap Inc.'s brands have been behind, but we are working on delivering more efficiency with our marketing and media dollars to have more specific and significant impact. And what I would say is while we don't share marketing spend by brand, it's really not about spending more. It's about spending more efficiently.

今天創造需求確實是一門藝術和科學，Gap Inc. 的品牌一直落後於人，但我們正在努力利用我們的行銷和媒體資金提供更高的效率，以產生更具體和更重大的影響。我想說的是，雖然我們不按品牌分享行銷支出，但這其實並不是增加支出。這是為了更有效地支出。

And I think you can take the Gap linen campaign, as you mentioned, as an example. Gap is probably furthest along in this new approach, using a holistic approach, social influencers, streaming, linear, throughout all the way through our store site to amplify this big idea.

我認為你可以以你提到的 Gap 亞麻布活動為例。 Gap 可能是在這種新方法中走得最遠的，它使用整體方法、社會影響者、串流媒體、線性方式，貫穿我們的商店網站來放大這個偉大的想法。

And I think as you'll see, you need to be driving a message consistently from the top to the bottom of the marketing funnel. And historically, we've not done a good job of keeping the message consistent throughout the funnel and this is a great example of our new marketing methodology.

我認為正如您將看到的，您需要從行銷漏斗的頂部到底部始終如一地傳達訊息。從歷史上看，我們在整個管道中保持資訊一致方面做得不好，這是我們新行銷方法的一個很好的例子。

Now on Athleta, which you mentioned specifically, which again, is another great example we have a really significant opportunity with this important brand. The Power of She is a compelling brand platform. And we know the Athleta brand resonates with consumers, but our missteps in executing product marketing experience has ultimately weighed heavily on the performance of the brand in recent years.

現在，關於 Athleta，您特別提到了這一點，這又是另一個很好的例子，我們與這個重要品牌擁有非常重要的機會。 The Power of She 是一個引人注目的品牌平台。我們知道 Athleta 品牌能引起消費者的共鳴，但我們在執行產品行銷體驗方面的失誤最終嚴重影響了品牌近年來的表現。

Chris, as you know, who has actually joined us in 2023 and leading a team that is driving the brand reinvigoration. And I think as you start to see some of that reinvigoration playbook through marketing, great storytelling, executed through social media and our stores, we're very excited about really the tremendous potential of Athleta.

如您所知，Chris 實際上在 2023 年加入我們，並領導一支正在推動品牌復興的團隊。我認為，當你開始看到透過行銷、精彩的故事講述、透過社群媒體和我們的商店執行的一些重振劇本時，我們對 Athleta 的巨大潛力感到非常興奮。

And Gap as well, as I mentioned before, incredible storytelling brand, historically, a pop culture brand that truly does more than sell close and today, we're really moving again. The current campaign, Linen Moves. It is a great example of Gap having a voice again in the cultural conversation, taking linen as an amplified big idea and doing it and owning it only the way Gap can.

還有Gap，正如我之前提到的，這是一個令人難以置信的講故事的品牌，從歷史上看，它是一個流行文化品牌，真正的作用不僅僅是銷售，今天，我們真的再次搬家。當前的活動，亞麻移動。這是 Gap 在文化對話中再次發出自己的聲音的一個很好的例子，將亞麻作為一個放大的大創意，並以 Gap 的方式去做和擁有它。

Music, leverage always been synonymous with Gap. We've teamed up with Grammy award winner, Tyla and the recent Brit award with Jungle and created a credible storytelling campaign that's culturally relevant and resonating.

音樂、槓桿一直是Gap的代名詞。我們與葛萊美獎得主 Tyla 以及最近獲得全英音樂獎的 Jungle 合作，打造了一場與文化相關且能引起共鳴的可信的說故事活動。

And my last point, particularly in the marketing metrics that matter, places like TikTok and Instagram are new platforms for Gap in the context of being more relevant to our consumer.

我的最後一點，特別是在重要的行銷指標中，TikTok 和 Instagram 等地方是 Gap 的新平台，與我們的消費者更相關。

Linen Moves is currently Gap Brand's highest-performing video on both of these platforms ever. So early days. We're encouraged with the momentum that we're seeing, the playbook is in action, and there'll be a lot more to come.

Linen Moves 目前是 Gap Brand 在這兩個平台上表現最好的影片。這麼早的日子。我們對所看到的勢頭感到鼓舞，劇本正在付諸實施，而且還會有更多的事情發生。

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

您的下一個問題來自富國銀行的 Ike Boruchow。

Congrats on the quarter. Two questions. Richard, maybe first for you, just I hate to put you in a tough spot, but there's -- let's leave Athleta and Banana alone, ongoing outperformance, I think, were the words for the guidance for Old Navy and Gap.

恭喜本季。兩個問題。理查德，也許首先對你來說，只是我不想讓你陷入困境，但是，讓我們別管 Athleta 和 Banana，我認為持續的優異表現是對 Old Navy 和 Gap 的指導。

If you have to look at both of those brands, which one do you feel like you have your arms around the best in terms of branding, marketing and sustainable -- sustainability of positive comps?

如果你必須看看這兩個品牌，你覺得哪一個在品牌、行銷和永續發展方面是最好的——積極競爭的可持續性？

And then just the follow-up question will be for Katrina. Just I think based on your guidance, you're around 4.5%, 5% margin if we kind of go back pre-COVID, you were kind of consistently in the high single digits. How are we thinking about multiyear the building and the foundation that you guys are doing. If you can sustain low single-digit growth, like how should we think about the ultimate margin structure of the company over time?

接下來的問題將針對卡崔娜颶風。只是我認為，根據你的指導，如果我們回到新冠疫情之前，你的利潤率約為 4.5%、5%，你的利潤率一直保持在高個位數。我們如何考慮你們正在進行的多年建設和基礎工作？如果你能夠維持較低的個位數成長，那麼我們應該如何考慮公司隨著時間的推移的最終利潤結構？

Thanks, Ike. Like first off, I'd say my arms are everywhere in the context of what we're trying to achieve here. And I think, again, speaking for the quarter results, we exceeded expectations on both top and bottom line, gaining market shares and the strength was really driven by the 2 largest brands in our portfolio Old Navy and Gap.

謝謝，艾克。首先，我想說的是，在我們想要實現的目標的背景下，我的手臂無所不在。我再次認為，就季度業績而言，我們的營收和利潤都超出了預期，贏得了市場份額，而這種實力實際上是由我們投資組合中最大的兩個品牌 Old Navy 和 Gap 推動的。

And more specifically, Old Navy, it's the largest brand in our portfolio, and we've been working on reasserting the brand's authority as the #2 a power brand in the country and we have a strong retail presence, we have over 1,200 stores and an incredible online presence, which I would encourage you to take a look at today in the context of its clarity and new relevant persona.

更具體地說，Old Navy，它是我們產品組合中最大的品牌，我們一直致力於重申該品牌作為國內第二大實力品牌的權威，我們擁有強大的零售業務，擁有 1,200 多家商店和一個令人難以置信的在線存在，我鼓勵您今天在其清晰度和新的相關角色的背景下查看它。

We did have a strong quarter. Our sales were up 6% with comps up 2%. We gained share in all segments, but did particularly well in Women's, which we dialed up from a marketing perspective. And I will say the team has done a great job driving the financial and operational rigor and Old Navy is really starting to see early signs of that brand reinvigoration.

我們確實有一個強勁的季度。我們的銷售額成長了 6%，銷售額成長了 2%。我們在所有細分市場都獲得了份額，但在女性市場表現尤其出色，這是我們從行銷的角度出發。我想說的是，該團隊在推動財務和營運嚴謹性方面做得非常出色，老海軍確實開始看到品牌復興的早期跡象。

In particular, we know Old Navy has a reference reinforcing style authority, but with more clarity on price and quality, both in stores and online. And again, we're very encouraged with those early results. and the consistency that we expect to have throughout the year in 2024 as we build upon that discipline.

特別是，我們知道 Old Navy 具有參考強化的風格權威，但在商店和網路上的價格和品質都更加明確。同樣，我們對這些早期結果感到非常鼓舞。以及我們期望在 2024 年全年保持這項紀律的一致性。

I've talked about Gap in the previous question, but similar. We've had a great quarter with Gap and year. We were very happy with the positive comps, and we've been working to reignite Gap and drawing on what made this brand so special in the first place.

我在上一個問題中談到了 Gap，但類似。我們與 Gap 一起度過了一個美好的季度和一年。我們對積極的業績感到非常滿意，我們一直在努力重新點燃 Gap 的活力，並藉鑑這個品牌最初如此特別的原因。

And ultimately, I think this campaign that you're seeing in the market today, again, go online, take a look. I think it's a great example of the playbook in action and Gap having a voice and culture again, taking an idea in our storytelling and amplify it in a way that only Gap can.

最後，我認為您今天在市場上看到的這個活動，再次上網看看。我認為這是一個很好的例子，說明劇本正在付諸實踐，Gap 再次擁有自己的聲音和文化，在我們的故事敘述中汲取靈感，並以只有 Gap 才能做到的方式將其放大。

And then I'd like to talk more specifically to the margin structure. I would say I do see a path to delivering operating margin expansion in the long term. But we have work to do to get back to historical levels.

然後我想更具體地談談利潤結構。我想說，從長遠來看，我確實看到了一條實現營業利潤率擴張的途徑。但要回到歷史水平，我們還有很多工作要做。

I think first and foremost, this business leverages nicely when we get the top line moving, and it hasn't been growing regularly. And that's really what the brand reinvigoration work that Richard has been referencing is all about, getting our businesses back to relevance in revenue and driving the top line. That, unto itself, will drive operating margin expansion.

我認為首先也是最重要的是，當我們的營收成長時，這項業務的槓桿作用很好，而且它並沒有定期成長。這確實是理查德一直提到的品牌重振工作的全部內容，讓我們的業務恢復收入相關性並推動營收成長。這本身將推動營業利潤率的擴張。

And in the meantime, we've been through several years of transformation, partnering international markets, closing our unprofitable stores, divesting of smaller brands, all of that reduced the fixed cost base.

同時，我們經歷了幾年的轉型，與國際市場合作，關閉不盈利的商店，剝離較小的品牌，所有這些都降低了固定成本基礎。

And then recently, we've been doing other cost actions, all of which have -- that discipline has taken out about $550 million of cost, and that led to this cost structure that leverages so nicely on sales growth, and we just talked about it, we'll consistently evaluate the cost structure to identify additional opportunities.

最近，我們一直在採取其他成本行動，所有這些行動都已經削減了約 5.5 億美元的成本，這導致了這種能夠很好地促進銷售成長的成本結構，我們剛剛談到我們將持續評估成本結構，以確定更多機會。

So again, to sort of end where I started, there's a path to delivering operating margin expansion in the long term as we get back to delivering consistent sales growth.

再說一次，回到我開始的地方，當我們恢復持續的銷售成長時，有一條長期實現營業利潤率擴張的途徑。

Your next question comes from the line of Matthew Boss from JPMorgan.

您的下一個問題來自摩根大通的 Matthew Boss。

Congrats on a nice quarter. So Richard, could you elaborate on the market share gains that you cited that you're seeing at Old Navy and the gap if you break down maybe by some of the destination categories for each of those brands. And any change in momentum that you're seeing at Old Navy or Gap as we think about early spring and some of the maybe early trends?

恭喜您度過了一個美好的季度。理查德，您能否詳細說明您在 Old Navy 看到的市場份額增長情況，以及如果按每個品牌的某些目的地類別進行細分的話，您所看到的差距。當我們思考早春和一些可能的早期趨勢時，您在 Old Navy 或 Gap 看到的勢頭有什麼變化嗎？

And then Katrina, so you're coming off 500 basis points of merchandise margin expansion, inventories are down mid-teens. I guess how best to think about the magnitude of merchandise margin opportunity in 2024, just considering some of the product cost tailwinds and maybe your view on the promotional landscape.

然後是卡崔娜颶風，商品利潤率將擴大 500 個基點，庫存下降到十幾歲左右。我想如何最好地考慮 2024 年商品利潤機會的大小，只需考慮一些產品成本的有利因素以及您對促銷環境的看法。

Absolutely, Matt. Thanks for the question. As mentioned, Gap Inc. gained market share in the quarter. year-over-year, which we were very pleased with, and that is on the backdrop of a declining overall industry, so even more credit to the strength of these 2 particular brands. at this particular time.

當然，馬特。謝謝你的提問。如前所述，Gap Inc. 在本季度獲得了市場份額。與去年同期相比，我們對此感到非常滿意，而且這是在整個行業下滑的背景下進行的，因此這兩個特定品牌的實力更加值得信賴。在這個特定的時間。

It was driven, of course, by Old Navy and Gap, as mentioned. And frankly, what we've seen, in particular, is in GAP Inc., we gained share in literally all segments. The stores gained share driven by Old Navy and Gap and also outwear, sleep, pants, wovens topped also gained, kids and baby, as fair to mention, is a really important segment of our business.

當然，如前所述，它是由 Old Navy 和 Gap 推動的。坦白說，我們特別看到的是 GAP Inc.，我們幾乎在所有細分市場都獲得了份額。這些商店在 Old Navy 和 Gap 的推動下獲得了份額，外套、睡衣、褲子、梭織上衣也獲得了增長，公平地說，兒童和嬰兒是我們業務的一個非常重要的部分。

The Old Navy is the #1 kids and baby brand in the U.S. Gap Inc. owns 9% of the total market. We have proven capabilities and brands that resonate in this category. And so over time, it's also an opportunity for us to accelerate and become even more important of a player in this segment.

Old Navy 是美國排名第一的兒童和嬰兒品牌。Gap Inc. 擁有 9% 的市場份額。我們擁有在這一類別中引起共鳴的成熟能力和品牌。因此，隨著時間的推移，這也是我們加速發展並成為這一領域更重要的參與者的機會。

And as you'll see, and we evolve our dialogue going forward, we have opportunities in several key categories of strength, Denim, Active, Kids And baby. These will all be really good conversations for us to have as we move forward with our reinvigoration plans.

正如您將看到的，隨著我們不斷發展我們的對話，我們在力量、牛仔布、活力、兒童和嬰兒等幾個關鍵類別中都有機會。當我們推進重振計劃時，這些對我們來說都是非常好的對話。

And then on gross margin, I just provided guidance for the full year of at least 50 basis points of margin expansion for the full year and at least 100 basis points of expansion for Q1.

然後在毛利率方面，我剛剛提供了全年利潤率至少擴張 50 個基點的指導，第一季至少擴張 100 個基點。

So let me talk to you a little bit about that. I think as you noted, the rigor we utilized in 2023 drove 380 basis points of expansion year-over-year and as we recaptured a lot of inflation in the back half of the year and we had stronger assortments with the tighter inventories that we had overall, we're really maintaining that rigor and committed to that as we head into 2024.

那麼讓我和你們談談這個問題。我認為正如您所指出的，我們在 2023 年採取的嚴格措施推動了同比增長 380 個基點，而且我們在今年下半年重新獲得了大幅通脹，而且我們的庫存更加緊張，產品種類也更加豐富。總體而言，在進入2024 年時，我們確實保持了這種嚴格性並致力於這一點。

I think you saw that we ended with 16% less inventory year-over-year. We expect similar inventories coming out of Q1. And so that inventory rigor will allow us to lap the -- about 200 basis points of improvement from less promotions last year this year as we head into the year.

我想您已經看到我們的庫存比去年同期減少了 16%。我們預計第一季會有類似的庫存。因此，在進入新的一年時，嚴格的庫存將使我們能夠比去年的促銷活動減少約 200 個基點。

So commodity cost tailwinds in the first half this year will become largely neutral in the back half. And we are maintaining the rigor so that we can continue to lap last year's outsized promotion improvement.

因此，今年上半年的商品成本推動因素將在下半年基本變成中性。我們將保持嚴謹的態度，以便我們能夠繼續超越去年的大幅促銷改進。

Your next question comes from the line of Michael Binetti from Evercore ISI.

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

Congrats on a great quarter. I'm just -- I guess, in just following a little bit of the math here. You've got the merch margins up nicely to 2019 in the quarter, but I don't know that all the brands are back above 2019 margins. So I know -- I know you were asked about merch margins a little while ago. I don't think all the brands are about.

恭喜您度過了一個出色的季度。我只是——我想，只是在這裡進行了一些數學計算。本季的商品利潤率較 2019 年有所提高，但我不知道所有品牌的利潤率是否都回到了 2019 年的水平以上。所以我知道 - 我知道不久前有人問過您有關商品利潤的問題。我不認為所有品牌都是如此。

Can you speak through a brand lens where you see the opportunity, the most on merchandise margin from here and how you're attacking that opportunity? The plan you gave us today And then I think if I heard you right, you said that, ROD -- you mentioned that ROD would leverage -- do you think ROD leverage is excluding the 53rd week this year and maybe the cadence of ROD through the year, please?

您能從品牌角度談談您看到的機會、這裡商品利潤率最高的機會以及您如何抓住這個機會嗎？你今天給我們的計劃然後我想如果我沒聽錯的話，你說的是，ROD - 你提到 ROD 會槓桿 - 你認為 ROD 槓桿不包括今年第 53 週，也許是 ROD 的節奏請問是哪一年？

Sure. So I think if I think about the performance for 2024, our outlook includes the fact that our brands are in sort of different places as it relates to brand reinvigoration.

當然。因此，我認為，如果考慮 2024 年的表現，我們的前景包括這樣一個事實：我們的品牌處於不同的位置，因為這與品牌復興有關。

And similar to the performance we just put up for 2023, we are seeing early proof points of the brand reinvigoration in Old Navy and Gap. Our 2 largest brands, which really gives us more confidence in the brand's ability to be delivering consistent performance going forward.

與我們剛剛為 2023 年做出的業績預測類似，我們在 Old Navy 和 Gap 中看到了品牌復興的早期證據。我們最大的兩個品牌，這確實讓我們對該品牌未來提供一致業績的能力更有信心。

And so while we don't guide by brand, we would expect Old Navy and Gap to deliver positive sales in the year. We continue to reset Athleta. I think we talked about that and as we lap the brand's missteps made in the prior year, that will weigh on the revenue in the front half of the year.

因此，雖然我們不按品牌進行指導，但我們預計 Old Navy 和 Gap 將在今年實現積極的銷售業績。我們繼續重置 Athleta。我想我們已經討論過這個問題，當我們回顧品牌去年犯下的錯誤時，這將給今年上半年的收入帶來壓力。

But we're encouraged, as we talked about, by the underlying progress in some of the early changes and longer term, we see lots of growth potential at that brand.

但正如我們所討論的，我們對一些早期變革的潛在進展感到鼓舞，從長遠來看，我們看到了品牌的巨大成長潛力。

And then lastly, the recovery of Banana will take more time as the brand works on better execution of the fundamentals. But we don't disclose margins by brand. we're just encouraged by the outlook we provided today of overall operating income growth.

最後，隨著品牌致力於更好地執行基本面，香蕉的復甦將需要更多時間。但我們不會依品牌揭露利潤率。我們只是對今天提供的整體營業收入成長前景感到鼓舞。

And we're just going to continue to use rigor in the middle of the P&L. That will result in the low- to mid-teens operating income growth that we gave today on roughly flat sales growth.

我們將繼續在損益表中保持嚴格。這將導致我們今天在銷售成長大致持平的情況下實現低至中雙位數的營業收入成長。

As it relates to ROD, our principle for ROD generally on the year is that ROD leverages on flat to slightly positive sales. So when you think about excluding the 53rd week, ROD is very slightly deleveraging on the year, and that's just some dynamics related to the 53rd week. But that's how we think about ROD.

由於與 ROD 相關，我們對當年 ROD 的總體原則是 ROD 的槓桿作用是持平或略為正的銷售。因此，當您考慮排除第 53 週時，ROD 在這一年中的去槓桿化程度非常小，而這只是與第 53 週相關的一些動態。但這就是我們對 ROD 的看法。

Your next question comes from the line of Lorraine Hutchinson from Bank of America.

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

I wanted to follow up on Bob's question about marketing. Can you quantify how much you spent on marketing in 2023? And do you have aspirations to reduce this expense going forward or just deploy -- redeploy it at current levels?

我想跟進鮑伯關於行銷的問題。您能量化一下 2023 年您在行銷上花了多少錢嗎？您是否希望未來減少這筆費用，或者只是在當前水平上重新部署？

Yes. We don't disclose how we spend or what we spend on in the context of marketing. We invest in advertising over time. And our ad spend has grown to support our brands as a result of elevated costs.

是的。我們不會透露我們在行銷方面的支出方式或支出內容。我們隨著時間的推移對廣告進行投資。由於成本上升，我們的廣告支出也不斷成長，以支持我們的品牌。

But in general, ultimately, our mission is to drive more effective and more efficient use of our dollars. Marketing dollars are continuing to come down year-over-year and that is a direct function of in more innovative medium metrics that is sort of driving a more innovative approach to how we market.

但總的來說，最終我們的使命是推動更有效、更有效率地使用我們的美元。行銷費用逐年持續下降，這是更具創新性的媒介指標的直接作用，這在某種程度上推動了我們的行銷方式更具創新性。

We are continuing to evaluate our marketing comprehensively as part of the brand reinvigoration work as well as part of media efficiency work, whether that results in lower spend in 2024 or better effectiveness of the current spend, we're going to continue to see how that plays out.

作為品牌振興工作和媒體效率工作的一部分，我們將繼續全面評估我們的行銷，無論這會導致 2024 年支出減少還是當前支出效果更好，我們將繼續觀察如何實現這一目標。播放出來。

But regardless, we have plenty of marketing investments, do not need to be spending any more and we're going to continue to look for opportunities to be more efficient and save where appropriate.

但無論如何，我們有大量的行銷投資，不需要再花更多的錢，我們將繼續尋找提高效率和適當節省的機會。

And Lorraine to be helpful. As Richard said, marketing dollars were down year-over-year in 2023. On our lower sales volume, marketing was about 5.9% of sales. which is below the prior year's 6.7%.

洛林也樂於助人。正如理查德所說，2023 年行銷費用年減。由於銷售量較低，行銷費用約佔銷售額的 5.9%。低於去年的 6.7%。

So as we have slowly been pulling marketing down, as Richard said, we really are more focused on effectiveness and efficiency, and we'll see how that plays out in 2024.

因此，正如理查德所說，隨著我們慢慢減少行銷活動，我們確實更加關注有效性和效率，我們將在 2024 年看看效果如何。

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

您的下一個問題來自高盛的布魯克·羅奇（Brooke Roach）。

I was hoping you could elaborate a bit more on the Athleta business. It sounds like some nice underlying proof points in some of the changes have been delivered in the fourth quarter, but you're speaking to a tough first half on compares.

我希望您能詳細介紹 Athleta 業務。聽起來第四季已經提供了一些變化的一些很好的潛在證據，但你所說的是比較艱難的上半年。

Can you talk a little bit about the outlook that you see on any key line items that we should be looking out for in the second half across new product initiatives, marketing and merchandise? And whether or not the underlying outlook provided today assumes an inflection back to growth this year for the brand?

您能否談談您認為下半年我們應該關注的新產品計劃、行銷和商品方面的關鍵項目的前景？今天提供的基本前景是否假設該品牌今年將恢復成長？

Yes. Thanks, Brooke, for the question. And Athleta is a really important brand in our portfolio. We believe that it has significant long-term potential. The Power of She, as I talked about, is just an incredibly compelling brand platform, and we know the brand resonates with consumers.

是的。謝謝布魯克的提問。 Athleta 是我們產品組合中非常重要的品牌。我們相信它具有巨大的長期潛力。正如我所說，「她的力量」只是一個令人難以置信的引人注目的品牌平台，我們知道該品牌能與消費者產生共鳴。

Our missteps are very public. We've executed poorly in product, marketing and experience and that's weighed on the performance of the brand in recent years. But resetting the brand will take time. We expect the tougher promotional volume comparisons to improve by the second half of 2024.

我們的失誤是非常公開的。我們在產品、行銷和體驗方面表現不佳，這影響了該品牌近年來的表現。但重置品牌需要時間。我們預計到 2024 年下半年，更嚴格的促銷量比較將會有所改善。

and -- The team is focused incredibly well on executing the brand reinvigoration playbook. They're leveraging the brand purpose identity with great new products, exciting storytelling. It's supported by compelling marketing and really executed with excellence.

- 團隊非常專注於執行品牌重振手冊。他們透過出色的新產品和令人興奮的故事敘述來利用品牌宗旨標誌。它得到了引人注目的營銷的支持，並得到了真正卓越的執行。

I would encourage you to take a look at our sites, take a look at the social dialogue that we currently have on Athleta, even our stores that we started the New Year with a very clean palette in our stores, and we've seen early successes in some of the new arrivals.

我鼓勵您看看我們的網站，看看我們目前在 Athleta 上進行的社交對話，甚至我們的商店，我們以非常乾淨的調色板開始新年，我們很早就看到了一些新來者取得了成功。

And again, encouraged by the customers' early reaction. I'm really liking where the team is going with the new drop strategy, innovation, color and new customer activations and we'll, of course, provide updates as we move through the year and assess the brand's continued progress in executing the playbook. But suffice it to say, we are very excited about the tremendous potential of Athleta.

再次受到客戶的早期反應的鼓舞。我真的很喜歡團隊在新的投放策略、創新、顏色和新客戶激活方面的進展，當然，我們會在這一年中提供更新，並評估品牌在執行劇本方面的持續進展。但可以說，我們對 Athleta 的巨大潛力感到非常興奮。

Great. And just one follow-up for Katrina. Following the strong success in inventory management you've seen this year, can you provide an update on how you're planning inventory for this year and your outlook for improved inventory turns going forward?

偉大的。這只是卡崔娜颶風的後續行動之一。繼今年庫存管理取得巨大成功之後，您能否提供有關今年庫存計劃的最新資訊以及對未來庫存週轉改善的展望？

Sure. So for inventory, as we talked about, we ended with inventories down 16% on a year-over-year basis, and we expect end of Q1 inventories to be about similar.

當然。因此，就庫存而言，正如我們所討論的，我們最終的庫存同比下降了 16%，我們預計第一季末的庫存將大致相似。

I would say as we start to lap the significant declines in inventory by the time we get to the end of Q2, we'll start to see a more normalized year-over-year inventory dynamic, where inventories are down below sales growth, but still lean.

我想說，到第二季末時，當我們開始經歷庫存的大幅下降時，我們將開始看到更正常化的同比庫存動態，其中庫存低於銷售成長，但仍然瘦下來。

We're going to maintain the rigor we have around inventories. And I think we're at our best. We've learned when we are reading and reacting to the consumer and chasing into trends. So that's sort of how we're thinking about inventory for the balance of the year.

我們將保持庫存的嚴格性。我認為我們正處於最佳狀態。當我們閱讀消費者的資訊、對消費者做出反應以及追逐趨勢時，我們就學到了東西。這就是我們對今年剩餘時間庫存的看法。

Our last question will come from Alex Straton from 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。

Perfect. Congrats on a nice quarter. Just on your comments for this continuation of the trend that will maybe in Gap on the top line. I'm just trying to understand what that means as it relates to sales growth? Should Gap continue to believe? Or what's the right size of that business over time? And then can Old Navy return to growth? And then I just have a quick follow-up.

完美的。恭喜您度過了一個美好的季度。只是您對這種趨勢的延續的評論，這種趨勢可能會出現在頂線上的缺口中。我只是想了解這與銷售成長相關意味著什麼？ Gap 該繼續相信嗎？或者隨著時間的推移，該業務的合適規模是多少？那麼老海軍能否恢復成長呢？然後我就進行快速跟進。

Yes. Look, I think, as we've said, our brands are all in different stages of reinvigoration. And ultimately, as we see the performance on Old Navy and Gap, in particular, we're incredibly encouraged. I mean, as you've seen with Gap, the continuation of our reignition is working well. Again, we had a great quarter in Gap comp up 4, Old Navy up 2%, as we described. These are not necessarily overnight fixes. It will take time.

是的。看，我認為，正如我們所說，我們的品牌都處於不同的復興階段。最終，當我們看到 Old Navy 和 Gap 的表演時，我們感到非常鼓舞。我的意思是，正如您在 Gap 中看到的那樣，我們的重燃勢頭持續良好。正如我們所描述的，我們再次在 Gap comp up 4 中度過了一個偉大的季度，Old Navy 增長了 2%。這些不一定是一夕之間就能解決的。需要花時間。

But as a high-performing company, we want to do what we say we're going to do, and that is also setting up expectations that we believe that we can meet. We're, of course, aspiring always to outperform and we believe that our outlook really reflects that each one of our brands is in a different point of reinvigoration.

但作為一家高績效公司，我們希望做到我們所說的要做的事情，這也建立了我們相信我們能夠滿足的期望。當然，我們始終渴望超越市場，我們相信我們的前景確實反映了我們的每個品牌都處於不同的復興階段。

Again, very encouraged with the comps on Old Navy and Gap. and the early work on reinvigoration, which, again, is supported by financial and operational discipline is really showing up on the scoreboard.

Old Navy 和 Gap 的對比再次讓我深受鼓舞。早期的復興工作也得到了財務和營運紀律的支持，這確實出現在記分板上。

I have noted Banana Republic has more foundational work to do to recover. The brand is a great brand. It's got great potential. The new aesthetic is resonating. But the product architecture, pricing, in-stock really, the fundamentals need continued work and effort, and the brand will take some time to reestablish.

我注意到香蕉共和國還有更多基礎工作要做才能恢復。該品牌是一個偉大的品牌。它有很大的潛力。新的美學正在引起共鳴。但產品架構、定價、庫存確實、基本面還需要持續的努力和努力，品牌需要一段時間才能重新建立。

And as mentioned, Athleta is making good underlying progress, but tougher comparisons from last year, as the brand is lapping significant promotional volume and it's weighing on the revenue performance.

正如前面提到的，Athleta 正在取得良好的基礎進展，但與去年相比，情況更加嚴峻，因為該品牌正在進行大量促銷活動，並影響了收入表現。

Now we're going to continue to do this probably through the first half of 2024, and -- and as the headwinds from the promotions last year abate in the second half, we're energized by the potential of the brand and its brand reinvigoration work and the ability to see that brand show up better in performance.

現在，我們可能會在 2024 年上半年繼續這樣做，而且，隨著去年促銷帶來的不利因素在下半年減弱，我們對該品牌的潛力及其品牌復興感到充滿活力工作以及看到品牌表現更好的能力。

That's helpful. Maybe Katrina, one for you. Just on the guidance for the year, it looks like you have margin improvement following the first quarter. Can you just talk about what enables that?

這很有幫助。也許卡崔娜颶風，適合你。僅就今年的指導而言，第一季之後，您的利潤率似乎有所改善。您能談談是什麼實現了這一點嗎？

Yes. I would say broadly, as I think about margins for 2024, we have commodity benefits that come in the first half of the year. Those become largely neutral. And then really, we're just anniversarying the benefits from last year in the significant improvement that we saw in promotions.

是的。我想說的是，就 2024 年的利潤率而言，我們將在今年上半年獲得商品收益。這些在很大程度上變得中立。事實上，我們只是在慶祝去年我們在促銷方面看到的顯著改進所帶來的好處。

So, we'll see where everything lands, but the guidance, as you say, was at least 50 basis points of expansion versus last year for the year and at least 100 basis points of expansion for first quarter.

因此，我們將看看一切的結果，但正如你所說，今年的指導是與去年相比至少擴張 50 個基點，第一季至少擴張 100 個基點。

Thank you. We've reached -- we've reached the end of the question-and-answer session. That does conclude today's conference call. Thank you for your participation, and you may now disconnect.

謝謝。我們已經完成了問答環節。今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。