蓋璞 (GPS) 2024 Q2 法說會逐字稿

Good afternoon, everyone.

大家下午好。

I would like to welcome everyone to the Gap Inc. second-quarter 2024 earnings conference call.

歡迎大家參加 Gap Inc. 2024 年第二季財報電話會議。

(Operator Instructions) I would now like to introduce your host Whitney Notaro, Head of Investor Relations.

（操作員指示）現在，我想介紹主持人、投資者關係主管惠特尼·諾塔羅 (Whitney Notaro)。

Thank you and good afternoon, everyone.

謝謝大家，下午好。

Welcome to Gap Inc's second-quarter fiscal 2024 earnings conference call.

歡迎參加 Gap Inc 2024 財年第二季財報電話會議。

Before we begin, I’d like to remind you that the information made available on this conference call contains forward-looking statements that are subject to risks that could cause our actual results to be materially different.

在我們開始之前，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產生重大差異的風險。

For information on factors that could cause our actual results to differ materially from any forward-looking statements, please refer to the cautionary statements contained in our latest earnings release, the risk factors described in the company’s annual report on Form 10-K filed with the Securities and Exchange Commission on March 19, 2024, and any subsequent filings with the Securities and Exchange Commission, all of which are available on gapinc.com.

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，請參閱我們最新收益報告中包含的警示聲明、公司於 2024 年 3 月 19 日向美國證券交易委員會提交的 10-K 表年度報告中描述的風險因素以及隨後向美國證券交易委員會提交的任何文件，所有這些文件均可在 gapinc.com 上查閱。

These forward-looking statements are based on information as of today, August 29, 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 2024 年 8 月 29 日的信息，我們不承擔公開更新或修改前瞻性陳述的義務。

Our latest earnings release and the accompanying materials available on gapinc.com also include descriptions and reconciliations of any financial measures not consistent with generally accepted accounting principles.

我們最新的收益報告和在 gapinc.com 上提供的隨附資料還包括與公認會計原則不一致的任何財務指標的描述和對帳。

Joining me on the call today are Chief Executive Officer Richard Dickson and Chief Financial Officer Katrina O’Connell.

今天與我一起參加電話會議的還有執行長理查德·迪克森 (Richard Dickson) 和財務長卡特里娜·奧康奈爾 (Katrina O'Connell)。

With that, I’ll turn the call over to Richard

接下來，我會把電話轉給理查德

Good afternoon and thank you for joining us.

下午好，感謝您加入我們。

Gap Inc. delivered another successful quarter that exceeded financial expectations and we gained market share for the 6th consecutive quarter.

Gap 公司又一個季度取得了成功，超出了財務預期，並且連續第六個季度獲得了市場份額。

In comparison to where we were only one year ago, we are in a stronger position across key metrics that matter, including net sales, margins, and our cash position.

與一年前相比，我們在淨銷售額、利潤率和現金狀況等關鍵指標方面都處於更有利的地位。

And we are making consistent progress in the reinvigoration of our brands.

我們在品牌重振方面正在不斷取得進展。

These results give me confidence that we are on our way to unlocking Gap Inc.’s full potential.

這些結果讓我相信，我們正在充分發揮 Gap Inc. 的潛力。

On today’s call, I’ll provide an update on our second quarter performance and progress in the context of our four strategic priorities: maintaining and delivering financial and operational rigor; the reinvigoration of our brands; strengthening our operating platform; and energizing our culture.

在今天的電話會議上，我將根據我們的四大策略重點，介紹我們第二季度的業績和進展：保持並實現財務和營運嚴謹性；我們品牌的重振；加強我們的營運平台；並激發我們的文化活力。

Then, Katrina will walk you through our detailed financial results and share our outlook before we open the call for questions.

然後，在我們開始提問之前，卡特里娜將向您介紹我們的詳細財務結果並分享我們的展望。

Let’s start with financial and operational rigor.

讓我們從財務和營運嚴謹性開始。

As we said in the first quarter, this is becoming the fabric of our work, which we will continue to reinforce through better processes and cultural accountability, and a focus on effectiveness and efficiency.

正如我們在第一季所說的那樣，這正在成為我們工作的基礎，我們將透過更好的流程和文化責任以及對有效性和效率的關注來繼續強化這一點。

Gap Inc. net sales were up 5% in the second quarter and comps were up 3%, reflecting our continued focus on this important priority.

Gap Inc. 第二季淨銷售額成長 5%，同店銷售額成長 3%，反映出我們對此重要事項的持續關注。

Old Navy posted comps up 5%, representing four consecutive quarters of positive growth.

Old Navy 同店銷售額上漲 5%，連續四季實現正成長。

Gap comps were up 3%, driven by five consecutive quarters of share gains.

由於連續五季的股價上漲，Gap 同店銷售額上漲 3%。

Banana Republic comps were flat as the brand continues to gain clarity on fixing the fundamentals.

Banana Republic 同品牌股價持平，因為該品牌在修復基本面方面繼續獲得明確。

And as planned, Athleta’s comps were down 4% as we lapped heavy discounting.

正如計劃的那樣，由於我們大幅打折，Athleta 的同店銷售額下降了 4%。

We expanded gross margin by 500 basis points with SG&A largely in-line with our expectations, delivering operating income of $293 million and an operating margin of 7.9%, an increase of 490 basis points versus last year’s reported operating margin.

我們的毛利率擴大了 500 個基點，銷售、一般及行政費用基本上符合我們的預期，實現營業收入 2.93 億美元，營業利潤率為 7.9%，比去年報告的營業利潤率增加了 490 個基點。

EPS was $0.54, up from $0.32 of reported EPS in the second quarter of 2023.

每股收益為 0.54 美元，高於 2023 年第二季報告的每股收益 0.32 美元。

We are maintaining inventory discipline with Q2 levels down 5% year over year.

我們保持庫存紀律，第二季庫存水準年減 5%。

And we ended the quarter with a strong cash balance of $2.1 billion and generated nearly $400 million in free cash flow.

我們本季結束時擁有 21 億美元的強勁現金餘額，並產生了近 4 億美元的自由現金流。

Turning to our next strategic priority, we remain focused on driving relevance and revenue by executing on our brand reinvigoration playbook, which I’ve referenced over the last few quarters.

談到我們的下一個策略重點，我們將繼續專注於透過執行品牌重振計劃來推動相關性和收入，我在過去幾季中一直提到這一點。

We are building stronger brand identities, supported by trend-right products, amplified through more compelling storytelling with an innovative media mix that is translating to greater cultural relevance.

我們正在打造更強大的品牌形象，以符合潮流的產品為支撐，透過更具吸引力的故事敘事和創新的媒體組合來擴大影響力，從而實現更大的文化相關性。

We are working to provide our customers with a more engaging omnichannel experience and aim to execute with excellence.

我們致力於為客戶提供更具吸引力的全通路體驗，並力求卓越。

Each brand is at a different point in the process, and I am encouraged by the improvements we are driving across the portfolio.

每個品牌都處於不同的流程階段，而我們在整個產品組合中推動的改進令我感到鼓舞。

I’ll take you through how these elements are showing up at each of the brands, starting with Old Navy.

我將帶你了解這些元素如何在每個品牌中體現，從 Old Navy 開始。

Over the past year, our operational rigor has enabled us to strengthen Old Navy’s foundation and brand identity.

在過去的一年裡，我們嚴謹的營運使我們能夠加強 Old Navy 的基礎和品牌形象。

We are winning in key categories with more clarity in pricing and in-store navigation, connecting our customers with products they want and compelling storytelling.

我們憑藉著更清晰的定價和店內導航、將客戶與他們想要的產品和引人入勝的故事聯繫起來，在關鍵類別中贏得了勝利。

As a result, we are driving market share gains and positive comps.

因此，我們正在推動市場份額的成長和積極的競爭。

Our trend-right product is driving share growth in women’s, which is important as she is the gateway to the family.

我們符合潮流的產品正在推動女性市場佔有率的成長，這一點很重要，因為女性是家庭的門戶。

Our strategic pursuit to lead in the active category is paying off with sizable market share gains and we are leading again with dresses, as we regained the number one position in the category according to Circana.

我們在運動產品類別中追求領先的策略正在帶來可觀的市場份額成長，而我們在連身裙領域再次取得領先地位，根據 Circana 的數據，我們重新奪回了該類別的第一名。

We also see an opportunity to lean further into denim with an expanded offering, a dynamic instore and online experience, supported by a new campaign expressing our evolving brand identity work.

我們也看到了進一步深入牛仔布領域的機會，透過擴大產品範圍、提供動態的店內和線上體驗，並透過新的活動表達我們不斷發展的品牌形象工作。

Old Navy’s marketing is becoming more relevant, as evidenced by the impact of the Summering campaign.

Old Navy 的行銷正變得越來越重要，Summering 活動的影響就證明了這一點。

This successful campaign featured Tracee Ellis Ross and Yara Shahidi, who exuded a carefree spirit of summer, dressed in on-brand and stylish offerings.

這場成功的宣傳活動由 Tracee Ellis Ross 和 Yara Shahidi 擔任主角，她們穿著品牌時尚服飾，散發出無憂無慮的夏日氣息。

It was a great indication of new and exciting creative for Old Navy.

這對 Old Navy 來說是一個全新且令人興奮的創意的絕佳體現。

We are a stronger Old Navy than we were a year ago, and we will continue to operate with this level of rigor as we execute our brand reinvigoration playbook.

與一年前相比，我們現在更加強大了，我們將繼續以這種嚴謹的態度來經營，執行我們的品牌振興策略。

Now, let's turn to GAAP.

現在，我們來討論一下 GAAP。

We are focused on reigniting Gap's leadership in trend-right products and creative expression through big ideas and culturally relevant messaging returning to our roots as a pop culture brand.

我們致力於透過偉大的創意和文化相關的訊息，重新點燃 Gap 在潮流產品和創意表達方面的領導地位，回歸我們作為流行文化品牌的根源。

While we've achieved great progress with five consecutive quarters of share gains for the brand and seven consecutive quarters of share gains in women's, we continue to be relentlessly pursuing better.

雖然我們取得了巨大進步，品牌份額連續五個季度增長，女性份額連續七個季度增長，但我們仍在不懈地追求進步。

The response to our Linen Moves campaign has been fantastic as we have become a destination for linen.

我們的「亞麻移動」活動得到了熱烈的回應，我們已經成為亞麻製品的目的地。

Our focus going forward is on repeating these types of creative expressions that leverage our heritage, rooted in music and dance, and declare a trend statement.

我們未來的重點是重複這些類型的創意表達，利用我們的傳統，紮根於音樂和舞蹈，並宣示一種潮流宣言。

We’ve continued to extend our methodology through the Get Loose campaign that we launched last week, featuring Troye Sivan and dance company, CDK, declaring Gap as the destination for the baggy and oversized trend.

我們透過上週啟動的 Get Loose 活動繼續擴展我們的方法論，該活動以 Troye Sivan 和舞蹈公司 CDK 為主角，宣稱 Gap 是寬鬆和超大潮流的目的地。

Building on our momentum and share gains in kids, Gap recently launched one of the strongest back-to-school campaigns we believe we’ve had in years.

憑藉我們在兒童市場的成長勢頭和份額增長，Gap 最近推出了我們認為多年來最強大的返校活動之一。

We are taking a more innovative approach to kids as we embrace a new media mix model focusing on driving kid demand through mom-approved messaging.

我們採用一種更具創新性的方式來對待兒童，因為我們採用了一種新的媒體組合模式，專注於透過媽媽認可的資訊來推動兒童需求。

Collaborations continued to amplify Gap.

合作不斷擴大差距。

We were pleased with the strength of our Doen collaboration, that drove relevance and revenue, as well as frequency from loyal Gap customers.

我們對與 Doen 合作的強勁勢頭感到滿意，這不僅提高了相關性和收入，還增加了 Gap 忠實客戶的頻率。

Our Madhappy collaboration enabled us to broaden our reach to a new customer base and is generating notable buzz.

我們與 Madhappy 的合作使我們能夠擴大覆蓋範圍，獲得新的客戶群，並引起了顯著的關注。

Gap, our namesake brand, embodies symbolic cultural importance both internally and externally.

Gap 是我們的同名品牌，無論在內部或外部，都體現著象徵性的文化重要性。

We are excited to see the progress to date, and believe we are well on our way to revitalizing this iconic American brand.

我們很高興看到迄今為止的進展，並相信我們正在振興這個標誌性的美國品牌的道路上。

Now let's turn to Banana Republic.

現在讓我們來看看香蕉共和國。

Here, we are focused on re-establishing this brand to thrive in the premium lifestyle space.

在這裡，我們專注於重建這個品牌，以在高端生活方式領域蓬勃發展。

We have more clarity around fixing the fundamentals with assortment architecture, pricing adjustments, and operational improvements.

我們更清楚地了解如何透過產品分類架構、價格調整和營運改善來解決基本問題。

There is still significant work to be done, but we are continuing to perform while we transform Banana Republic into a stronger brand.

仍有大量工作要做，但我們將繼續努力，將 Banana Republic 打造成為一個更強大的品牌。

At this stage, we are encouraged to see more stability across our men’s business with improved depth of wardrobe and a more distinctive style.

在此階段，我們很高興地看到，男裝業務更加穩定，服裝的深度更加豐富，風格更加獨特。

We are working to win in women’s with better assortment planning, a focus on key items and improved fit.

我們正致力於透過更好的產品組合規劃、專注於關鍵產品和提高合身度來贏得女裝市場。

Across men’s and women’s, our customers continue to see more trend-right products through our BR Classics and Finest Fabrics.

無論是男裝還是女裝，我們的客戶都可以透過我們的 BR Classics 和 Finest Fabrics 繼續看到更多符合潮流的產品。

Our refreshed flagship Soho store opened in June and is an outstanding example of the brand’s new expression, celebrating the brand’s heritage with a modern point of view.

我們煥然一新的旗艦 Soho 店於 6 月開業，是品牌全新表達的傑出典範，以現代的視角頌揚了品牌的傳統。

And we are actively underway with the process to recruit the next leader for the brand.

我們目前正在積極招募該品牌的下一任領導者。

Shifting to Athleta.

轉向 Athleta。

We are resetting the brand, which has significant growth potential and a distinct brand identity rooted in the Power of She.

我們正在重塑這個品牌，它具有巨大的成長潛力和植根於「她的力量」的獨特品牌形象。

On the world stage in Paris, where the Power of She was prominently demonstrated, the cultural relevance of the Athleta brand was proudly represented.

在巴黎的世界舞台上，「她的力量」得到了突出展示，Athleta 品牌的文化相關性得到了自豪體現。

The athletes featured in our Anthem Collection marketing campaign, including gold medalists Simone Biles and Katie Ledecky, who partner with Athleta not only for the superior product, but for the celebration and empowerment of women that is core to our brand purpose.

在我們的 Anthem Collection 行銷活動中出現的運動員，包括金牌得主西蒙娜·拜爾斯 (Simone Biles) 和凱蒂·萊德基 (Katie Ledecky)，她們與 Athleta 合作不僅是為了獲得優質的產品，更是為了慶祝和增強女性的權利，這也是我們品牌宗旨的核心。

We are successfully broadening our customer base, seeing better sell-through at full price, our marketing execution is gaining traction.

我們成功地擴大了客戶群，全價銷售情況更好，我們的行銷執行正在獲得推動力。

Our inventory position is cleaner, and fashion products are resonating driven by new merchandising.

我們的庫存狀況更加清晰，時尚產品在新的商品推銷推動下產生共鳴。

We are gaining more confidence and excitement around the team’s work to unlock Athleta’s incredible growth potential.

我們對團隊釋放 Athleta 驚人成長潛力的工作越來越有信心，也越來越興奮。

As we move past headwinds in the first half, we expect the brand to return to positive comps for the remainder of the year.

隨著我們克服上半年的不利因素，我們預計品牌在今年剩餘時間內將恢復積極的業績。

Moving to the third strategic priority, our operating platform.

轉向第三個策略重點，也就是我們的營運平台。

Last quarter, I spoke to you about opportunities to drive scale and efficiencies across our organization, and to better support our brands through platformed functions, including media and technology.

上個季度，我與您討論了推動整個組織規模和效率的機會，以及如何透過平台功能（包括媒體和技術）更好地支持我們的品牌。

In Q3 we began working with our new media agency partner, Omnicom, and are modernizing our capabilities.

在第三季度，我們開始與我們的新媒體代理商合作夥伴 Omnicom 合作，並正在實現我們能力的現代化。

In addition to gaining leverage from this new partnership, we are excited about the opportunity for our media mix to become a growth engine for our brands over time.

除了從這項新的合作關係中獲得優勢之外，我們還對我們的媒體組合能夠隨著時間的推移成為我們品牌的成長引擎的機會感到興奮。

We are evolving from a promotional media mix focused on performance to a full-funnel strategy in order to be more effective with our marketing spend.

我們正在從注重效果的促銷媒體組合轉變為全通路策略，以便更有效地利用我們的行銷支出。

We are focused on becoming more consumer-led, using data and optimization to a higher degree, and implementing best practices in our execution.

我們專注於更以消費者為導向，更大程度地利用數據和最佳化，並在執行中實施最佳實踐。

This is a game changing endeavor.

這是一次改變遊戲規則的努力。

We are early in our execution but believe this will improve the economics of our marketing spend and change how we show up to our consumer.

雖然我們的執行還處於早期階段，但我們相信這將改善我們的行銷支出的經濟效益，並改變我們向消費者展示的方式。

In terms of technology, during the quarter we announced Sven Gerjets as Chief Technology Officer, recognizing the central and growing importance of digital in our business and for our customers.

在技​​術方面，本季我們宣布任命斯文·格傑特斯（Sven Gerjets）為首席技術官，認識到數位化對我們的業務和客戶日益增長的重要性。

It’s important that we move quickly to a way of thinking and working with technology embedded at our core, to drive value, solve problems, and serve our customers.

重要的是，我們要迅速轉變思維方式，以技術為核心開展工作，推動價值成長，解決問題，服務客戶。

We are evaluating and assessing our infrastructure, talent, and capabilities, as we focus on becoming a digital-first, high-performing apparel company.

我們正在評估和評估我們的基礎設施、人才和能力，因為我們專注於成為一家數位優先、高績效的服裝公司。

Now turning to our fourth strategic priority, energizing our culture.

現在來談談我們的第四個策略重點：激發我們的文化。

A great strategy can only go so far without a culture that is united and mobilized behind it.

如果沒有團結和動員的文化作為支撐，偉大的策略只能走得很遠。

So, I’ve been highly focused on this priority and intentional about visiting stores across the country to engage, listen, and learn from our store associates and the customers we serve and to reinforce that every store matters, and every person matters.

因此，我一直高度關注這一優先事項，並有意訪問全國各地的商店，與我們的店員和我們服務的客戶進行交流、傾聽和學習，並強調每家商店都很重要，每個人都很重要。

In April, we introduced our new vision, mission, purpose, and values which have begun to unify our culture and set a standard for how we work.

在四月份，我們推出了新的願景、使命、目標和價值觀，這些價值觀開始團結我們的文化並為我們的工作方式設定標準。

We believe we have a shared responsibility to our customers, communities, and each other to work with purpose and center our values in everything we do.

我們相信，我們對客戶、社區和彼此負有共同的責任，我們要有目的地開展工作，並將我們的價值觀融入我們所做的每一件事中。

When expressed consistently, this is what will energize and define, our culture, our company, our brand.

當我們始終如一地表達這一點時，它就會激發並定義我們的文化、我們的公司、我們的品牌。

Our people are the gateway to the relentless pursuit of becoming better, and this work is central to the path we’re on to achieve our vision.

我們的員工是我們不懈追求進步的大門，這項工作對於我們實現願景至關重要。

Last August, in my first remarks to you as CEO, I told you that I was intent on leading an exciting new chapter for Gap Inc., one that celebrates our past as we pioneer an extraordinary future.

去年八月，在我以執行長的身份向你們發表的第一次講話中，我告訴你們，我決心帶領 Gap Inc. 譜寫激動人心的新篇章，在慶祝過去的同時，開拓非凡的未來。

The potential of our brand portfolio was clear to me, as was the need to reposition the company for sustainable, profitable growth.

我很清楚我們的品牌組合的潛力，也清楚公司需要重新定位，以實現可持續的獲利成長。

Since then, we’ve defined our strategic priorities, including our brand reinvigoration playbook.

從那時起，我們就確定了我們的策略重點，包括我們的品牌振興策略。

We have introduced a new sense of clarity that is empowering our people, helping attract world class talent and partners, and we have driven meaningful financial progress.

我們引入了一種新的清晰意識，它賦予了我們的員工權力，幫助吸引世界一流的人才和合作夥伴，並且我們推動了有意義的財務進步。

To be clear, we have work to do, because transformation of this scale takes time.

需要明確的是，我們還有很多工作要做，因為這種規模的轉變需要時間。

But we are on our way, as our teams rise to the occasion.

但我們正在前進，因為我們的團隊能夠應對挑戰。

Our Q2 results are yet another proof point.

我們第二季的業績又是另一個證明點。

And finally, I’d like to take a moment to recognize our global team for their dedication and hard work.

最後，我想花點時間讚揚我們全球團隊的奉獻和辛勤工作。

They epitomize the very best of Gap Inc. as we continue our journey to unlock the full potential of this extraordinary portfolio.

他們是 Gap Inc. 最優秀品質的體現，我們將繼續努力釋放這項非凡產品組合的全部潛力。

I’ll now turn the call to Katrina for a closer look at our financials

我現在將電話轉給卡特里娜，讓她仔細看看我們的財務狀況

Thank you, Richard and thanks everyone for joining us this afternoon.

謝謝你，理查德，也謝謝大家今天下午加入我們。

We are pleased to report second-quarter results ahead of our expectations with another quarter of positive sales growth and market share gains.

我們很高興地報告第二季度的業績超出了我們的預期，又一個季度實現了銷售成長和市場份額成長。

In addition, we remained focused on the discipline we have created around margin expansion, expense and inventory management, and maintaining a strong balance sheet, which resulted in further operating profit expansion and strong free cash flow.

此外，我們繼續專注於圍繞利潤率擴大、費用和庫存管理以及維持強勁的資產負債表而建立的紀律，這進一步擴大了營業利潤並帶來了強勁的自由現金流。

As Richard mentioned, the rigor we have developed is becoming core to how we operate and is enabling us to perform as we transform.

正如理查德所提到的，我們所培養的嚴謹性正在成為我們營運的核心，並使我們能夠在轉型的同時發揮作用。

Some key highlights from the second quarter include the following: net sales and comparable sales were up 5% and 3%, respectively, with continued strength at Old Navy and Gap, stabilized sales at Banana Republic, and performance in-line with our expectations at Athleta.

第二季度的一些主要亮點包括：淨銷售額和可比銷售額分別成長 5％ 和 3％，Old Navy 和 Gap 繼續保持強勁增長，Banana Republic 的銷售趨於穩定，Athleta 的業績符合我們的預期。

We delivered approximately 500 basis points of gross margin expansion and managed SG&A dollars roughly in line with our expectations.

我們實現了約 500 個基點的毛利率成長，並且銷售、一般及行政開支大致符合我們的預期。

This resulted in an operating margin of 7.9% for Q2, a 490-basis point improvement versus last year’s reported operating margin.

這使得第二季的營業利潤率達到 7.9%，比去年報告的營業利潤率提高了 490 個基點。

And we ended the quarter with $2.1 billion of cash, cash equivalents, and short-term investments on the balance sheet and generated nearly $400 million in free cash flow year-to-date.

截至本季末，我們的資產負債表上有 21 億美元的現金、現金等價物和短期投資，年初至今產生了近 4 億美元的自由現金流。

The progress we've continued to make on our four strategic priorities is driving consistency in our results and sets a strong foundation to deliver long-term shareholder value.

我們在四大策略重點上不斷取得的進展推動了我們業績的一致性，並為實現長期股東價值奠定了堅實的基礎。

The continued strength in our performance is giving us the confidence to reaffirm our revenue and SG&A outlook for fiscal 2024 and raise our outlook for gross margin and operating income growth compared to our prior outlook.

我們業績的持續強勁使我們有信心重申 2024 財年的收入和銷售、一般及行政費用前景，並上調了毛利率和營業收入增長前景（與之前的前景相比）。

Turning to the detailed results for the quarter.

談到本季的詳細業績。

Net sales of $3.7 billion increased 5% versus last year with comparable sales up 3%.

淨銷售額為 37 億美元，較去年同期成長 5%，可比銷售額成長 3%。

Net sales growth in the quarter benefited from approximately 2 percentage points of incremental revenue that was specific to the second quarter and related to the structure of our credit card agreement.

本季淨銷售額的成長受益於約 2 個百分點的增量收入，這是第二季特有的，與我們的信用卡協議結構有關。

Additionally, the quarter benefited from approximately 1 percentage point due to the weekly shift related to the 53rd week dynamic.

此外，由於與第 53 週動態相關的每週轉變，本季受益約 1 個百分點。

By Brand, starting with Old Navy, net sales were $2.1 billion, up 8% versus last year, with comparable sales up 5%.

按品牌劃分，從 Old Navy 開始，淨銷售額為 21 億美元，較去年同期成長 8%，可比銷售額成長 5%。

This represented the fourth consecutive quarter of positive comps at the brand with their continued focus on operational rigor and brand reinvigoration driving consistency in performance.

這是該品牌連續第四個季度取得積極的業績表現，他們持續專注於營運嚴謹性和品牌復興，推動業績的穩定。

Turning to Gap brand, net sales of $766 million were up 1% versus last year and comparable sales were up 3%.

談到Gap品牌，淨銷售額為7.66億美元，較去年同期成長1%，可比銷售額成長3%。

We are pleased to see that the recent brand reinvigoration efforts have resulted in positive comp sales for the last three quarters, driven by strong marketing and product execution.

我們很高興地看到，在強大的行銷和產品執行的推動下，最近的品牌重塑努力已帶來過去三個季度的正成長銷售額。

Banana Republic net sales of $479 million were flat year over year, with comparable sales also flat.

Banana Republic 的淨銷售額為 4.79 億美元，與去年同期持平，可比銷售額也持平。

As Richard mentioned, we are working to re-establish Banana Republic and improve the fundamentals of the brand.

正如理查德所說，我們正在努力重建香蕉共和國並改善品牌的基本面。

While it is still early in the journey, we are pleased by the progress as the brand continues to focus on execution.

雖然旅程才剛開始，但我們對品牌持續專注於執行所取得的進展感到高興。

Athleta net sales of $338 million decreased 1% versus last year.

Athleta 淨銷售額為 3.38 億美元，較去年同期下降 1%。

Comparable sales were down 4%, which was in-line with our expectations as the brand lapped the last of the prior year’s heavy discounting.

可比銷售額下降了 4%，這符合我們的預期，因為該品牌已經消化了去年最後一次大幅折扣。

As the headwinds related to discounting diminish in the second half and progress continues as we fix the fundamentals, we expect Athleta to return to positive comps for the remainder of the year.

隨著下半年與折扣相關的不利因素逐漸減弱，以及我們修復基本面後繼續取得進展，我們預計 Athleta 將在今年剩餘時間內恢復正成長。

Now turning to gross margin in the quarter.

現在來談談本季的毛利率。

Gross margin of 42.6% expanded 500 basis points versus last year’s gross margin.

毛利率為42.6%，較去年同期的毛利率擴大了500個基點。

Merchandise margin expanded 410 basis points with the remaining 90 basis points from ROD leverage.

商品利潤率擴大了 410 個基點，其餘 90 個基點來自 ROD 槓桿。

The merchandise margin expansion was driven by an estimated 170 basis points of lower commodity costs, which was modestly below our prior expectation due to higher air freight utilized to navigate supply chain congestion.

商品利潤率的擴大主要是由於商品成本下降了約 170 個基點，這略低於我們先前的預期，因為為緩解供應鏈擁塞而採用了更高的空運費用。

The remaining 240 basis points were driven by higher sales from the incremental credit card revenue and improved promotional activity.

剩餘的 240 個基點則受到信用卡收入增加和促銷活動改善帶來的銷售成長的推動。

Now, let me turn to SG&A.

現在，讓我來談談銷售、一般及行政開支。

SG&A was $1.3 billion in the quarter, roughly in line with our prior outlook.

本季銷售、一般及行政開支為 13 億美元，與我們先前的預測大致一致。

SG&A as a percentage of net sales was 34.7%, deleveraging 10 basis points versus last year’s reported rate and 50 basis points versus last year’s adjusted rate, primarily due to the timing of incentive compensation accruals.

銷售、一般及行政費用佔淨銷售額的 34.7%，較去年報告的比率下降 10 個基點，較去年調整後的比率下降 50 個基點，這主要歸因於激勵薪酬提列的時間安排。

Second quarter operating margin of 7.9% improved 490 basis points compared to last year’s reported operating margin and 450 basis points versus last year’s adjusted operating margin.

第二季營業利益率為 7.9%，比去年報告的營業利潤率提高了 490 個基點，比去年調整後的營業利潤率提高了 450 個基點。

Earnings per share in the quarter were $0.54, up 69% versus last year’s reported earnings per share of $0.32, and up 59% versus last year’s adjusted earnings per share of $0.34.

本季每股收益為 0.54 美元，較去年同期報告的每股收益 0.32 美元增長 69%，較去年同期調整後的每股收益 0.34 美元增長 59%。

Now, turning to the balance sheet and cash flow.

現在，轉向資產負債表和現金流。

We maintained disciplined inventory management, ending Q2 with levels down 5% year over year.

我們保持了嚴格的庫存管理，第二季末的庫存水準年減了 5%。

We remain confident that we will maintain this discipline in Q3 with inventory expected to be down low single digits versus last year.

我們仍然有信心在第三季度保持這一紀律，預計庫存將比去年下降個位數。

As I mentioned earlier, we ended the quarter with cash, cash equivalents, and short-term investments of $2.1 billion, an increase of 59% from last year.

正如我之前提到的，本季末我們的現金、現金等價物和短期投資為 21 億美元，比去年同期成長了 59%。

Net cash from operating activities was $579 million year-to-date driven by higher operating profit.

年初至今，經營活動產生的淨現金為 5.79 億美元，主要得益於經營利潤的提高。

And our free cash flow o driven by higher operating profit and our free cash flow of $397 million year to date demonstrates the rigor we have put into managing the business.

我們的自由現金流受到更高的營業利潤的推動，今年迄今為止我們的自由現金流為 3.97 億美元，證明了我們在業務管理方面的嚴謹性。

We remain committed to delivering an attractive quarterly dividend as a core component of total shareholder returns.

我們仍然致力於提供有吸引力的季度股息，作為股東總回報的核心組成部分。

During the quarter, we paid a dividend of $0.15 per share.

本季度，我們支付了每股 0.15 美元的股息。

Year-to-date, we will have returned $112 million to shareholders in the form of dividends.

年初至今，我們已以股利的形式向股東返還 1.12 億美元。

On August 13, our Board approved maintaining that $0.15 dividend for the third quarter of fiscal 2024.

8 月 13 日，我們的董事會批准將 2024 財年第三季的股利維持在 0.15 美元。

As I reflect on our second-quarter results, I am encouraged by the consistency we’re seeing in our financial performance, enabled by continued focus, discipline, and rigor across our organization.

在回顧我們第二季的業績時，我對我們財務表現的一致性感到鼓舞，這得益於我們整個組織的持續專注、紀律和嚴謹。

This consistency begins to put us on the path to becoming a high performing company.

這種一致性開始使我們走上成為高績效公司的道路。

Now, let me provide some details on our updated outlook.

現在，讓我提供有關我們更新後的展望的一些細節。

Starting with full year 2024.

從 2024 年全年開始。

Our strong second quarter results give us the confidence to reaffirm our revenue and SG&A outlook for fiscal 2024 and raise our outlook for gross margin and operating income growth compared to our prior outlook.

我們強勁的第二季業績使我們有信心重申 2024 財年的營收和銷售、一般及行政費用前景，並較先前的前景上調了毛利率和營業收入成長前景。

Regarding fiscal 2024 revenue, we continue to expect full-year net sales to be up slightly year-over-year excluding the 53rd week.

關於 2024 財年收入，我們繼續預計除第 53 週外，全年淨銷售額將同比小幅增長。

Our underlying assumptions related to the 53rd week, which I will describe in more detail in a moment remain unchanged.

我們與第 53 週相關的基本假設保持不變，稍後我將更詳細地描述。

While the global economic environment and consumer dynamics remain fluid, our general view of the consumer and macroeconomic conditions largely remain the same.

儘管全球經濟環境和消費動態仍在不斷變化，但我們對消費者和宏觀經濟狀況的整體看法基本上保持不變。

We have deep confidence in the work our teams are doing and are focused on executing with excellence in the back half as we lap tougher revenue compares as a result of early reinvigoration efforts, particularly at Old Navy.

我們對我們的團隊所做的工作充滿信心，並專注於在後半段出色地執行，因為我們透過早期的重振努力（特別是 Old Navy）取得了更艱難的收入對比。

As a reminder, 2024 is a 52-week year, but will be compared in total to a 53-week year in 2023.

提醒一下，2024 年是 52 週的一年，但總體而言，2023 年是 53 週的一年。

To reiterate, the loss of the 53rd week results in a detrimental impact of approximately $160 million to fiscal 2024 net sales.

重申一下，第 53 週的損失將對 2024 財年淨銷售額造成約 1.6 億美元的不利影響。

And I would like to provide more detail on the impact to the quarterly cadence of net sales in the year.

我想更詳細地介紹對今年季度淨銷售額的影響。

As a reminder, the first quarter 2024 net sales benefited by approximately 2 percentage points, and the second quarter net sales benefited by approximately by 1 percentage point compared to last year due to the timing shifts associated with the loss of the 53rd week.

需要提醒的是，由於第 53 週損失導致的時間變化，2024 年第一季的淨銷售額與去年相比受益約 2 個百分點，第二季的淨銷售額受益約 1 個百分點。

We expect the third quarter to also benefit by approximately 1 percentage point due to shifts in timing.

我們預計，由於時間的變化，第三季也將受益約 1 個百分點。

We expect net sales in the fourth quarter to have a negative impact of approximately 7 percentage points or $300 million, compared to last year due to both the timing shift, as well as the loss of the 53rd week.

我們預計，由於時間變化以及第 53 週的損失，第四季度的淨銷售額將比去年同期產生約 7 個百分點或 3 億美元的負面影響。

We also expect approximately 1 percentage point of ROD deleverage in the fourth quarter due to the lower sales volume.

由於銷售量下降，我們也預期第四季 ROD 去槓桿率將下降約 1 個百分點。

Moving to gross margin.

轉向毛利率。

We have raised our outlook and now expect gross margin expansion of approximately 200 basis points for the full year compared to fiscal 2023’s gross margin of 38.8%.

我們已上調預期，目前預計全年毛利率將比 2023 財年的 38.8% 擴大約 200 個基點。

Our gross margin outlook contemplates the following factors: we continue to expect the commodity cost tailwinds in the first half to become largely neutral in the second half of the year, resulting in approximately 100 bps of benefit from commodity costs for the full year.

我們的毛利率前景考慮了以下因素：我們繼續預計上半年商品成本的順風將在下半年基本保持中性，從而全年從商品成本中獲得約 100 個基點的收益。

The rigor we have utilized to manage inventories with discipline is expected to deliver the balance of the gross margin expansion versus last year.

我們採用嚴格的紀律庫存管理方法，預計可實現與去年同期相比的毛利率擴張。

And we expect ROD as a percentage of sales to be relatively neutral on a year-over-year basis.

我們預計 ROD 佔銷售額的百分比與去年同期相比將保持相對中立。

Regarding SG&A We continue to expect full year SG&A of approximately $5.1 billion, with roughly $1.3 billion expected in Q3 and Q4, respectively.

關於銷售、一般及行政開支，我們繼續預計全年銷售、一般及行政開支約為 51 億美元，其中第三季和第四季預計分別約為 13 億美元。

We are actively focused on cost efficiency.

我們積極注重成本效率。

Our full year 2024 SG&A outlook reflects the substantial savings actions we’ve taken over the last 18 months which are expected to result in lower spend and increased leverage year-over-year, demonstrating our expense focus and rigor.

我們對 2024 年全年銷售、一般及行政費用的展望反映了我們在過去 18 個月中採取的大幅節約措施，預計這些措施將導致支出同比下降、槓桿率上升，體現了我們對費用的關注和嚴謹性。

That said, we acknowledge that our annual expense rate to sales is still higher than our aspiration and we are deeply engaged in identifying the next phase of savings to drive value creation over the long term.

儘管如此，我們承認我們的年度銷售費用率仍然高於我們的期望，我們正在深入研究下一階段的節省措施，以推動長期價值創造。

We are raising our full year 2024 operating income growth outlook to be in the mid-to-high 50% growth range compared to last year’s adjusted operating income of $606 million.

我們將 2024 年全年營業收入成長預期上調至 50% 左右的中高成長區間，而去年的調整後營業收入為 6.06 億美元。

This represents significant progress toward returning to historical operating profit levels over time.

這代表著我們在逐步恢復歷史營業利潤水準方面取得了重大進展。

Now, let me share some additional color on our outlook for the third quarter of fiscal 2024.

現在，讓我分享一些有關 2024 財年第三季展望的更多內容。

We are pleased with trends quarter-to-date and are planning for net sales in Q3 to be up slightly versus last year.

我們對本季迄今的趨勢感到滿意，並計劃第三季的淨銷售額將較去年略有上升。

As it relates to third quarter gross margin, we expect approximately 50 to 75 basis points of improvement versus last year’s gross margin of 41.3%, primarily related to lower promotional activity.

就第三季的毛利率而言，我們預計與去年同期 41.3% 的毛利率相比，將提高約 50 至 75 個基點，這主要與促銷活動減少有關。

As I mentioned, in the third quarter we expect SG&A to be approximately $1.3 billion.

正如我所提到的，我們預計第三季銷售、一般及行政開支約為 13 億美元。

In closing, we were pleased to deliver another quarter of strong financial results.

最後，我們很高興看到另一個季度的財務業績表現強勁。

The financial and operational rigor that we have 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.

我們努力培養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，目標是實現可持續的獲利成長，並為我們的股東帶來長期價值。

Transformations like this take time and each of our brands is in a different stage, but the progress is encouraging as we continue to lay the groundwork for the next chapter.

這樣的轉變需要時間，而且我們的每個品牌都處於不同的階段，但隨著我們繼續為下一章奠定基礎，進展令人鼓舞。

With that, we’ll open the line for questions.

現在，我們將開始回答大家的提問。

Operator?

操作員？

Thank you.

謝謝。

Ladies and gentlemen.

女士們，先生們。

I will now hand it over to Whitney Notaro before moving into the question-and-answer session

現在我將把發言權交給惠特尼·諾塔羅，然後進入問答環節

Before we open it up for Q&A, I want to briefly address that earlier than planned posting of our Q2 financial results to our website this morning, which is due to an administrative error.

在我們開始問答環節之前，我想簡單談談今天早上我們網站上比計劃提前發布第二季度財務業績的問題，這是由於管理錯誤。

As soon as we saw the error, we immediately rectified it and notified the NYSE.

我們一發現錯誤，就立即糾正並通知紐約證券交易所。

We issued our earnings press release as promptly as possible rather than waiting until after the market closed to ensure widespread access to our results.

我們盡可能及時發布收益新聞稿，而不是等到市場收盤後，以確保廣大民眾能夠了解我們的業績。

With that, I'll turn it over to Richard and Katrina to begin the Q&A session.

接下來，我將把時間交給理查和卡特里娜，開始問答環節。

(Operator Instructions) Bob Drbul, Guggenheim.

（操作員指示）鮑勃·德布爾（Bob Drbul），古根漢。

Hi, good afternoon.

嗨，下午好。

And just on the on the morning release, a little bit earlier in the 8:30 call, I think would work for many of us.

就早上發表會而言，在 8:30 稍早一點打電話，我想這對我們許多人來說都是可行的。

So just an observation.

這只是一種觀察。

Two questions, if I could.

如果可以的話，我有兩個問題。

The first one is, Richard, can you just talk to whether the momentum at Gap brand and Old Navy can continue?

第一個問題，理查德，您能談談 Gap 品牌和 Old Navy 的發展勢頭是否能夠持續下去嗎？

And then the second one is, can you guys address just back-to-school trends so far.

第二個問題是，你們能否談談目前的返校趨勢？

Thank you very much.

非常感謝。

Yes.

是的。

Thanks, Bob.

謝謝，鮑伯。

First off, in general, we had another successful quarter.

首先，總體而言，我們度過了另一個成功的季度。

We exceeded our expectations, net sales up 5%.

我們超出了預期，淨銷售額成長了 5%。

That's great growth, especially when you consider we're operating on 5% less inventory, 500 basis points of gross margin expansion.

這是巨大的成長，特別是考慮到我們的庫存減少了 5%，毛利率擴大了 500 個基點。

And we also expanded operating margin by 490 basis points.

我們的營業利潤率也提高了 490 個基點。

Important to note also, this was our sixth consecutive quarter that we grew market share.

值得注意的是，這是我們連續第六個季度擴大市場份額。

So a real indication that customers are responding well to our brand reinvigoration efforts.

這確實表明客戶對我們的品牌重塑努力反應良好。

As you ask Old Navy and Gap in particular, each of them posted quarterly positive comps.

當你特別詢問 Old Navy 和 Gap 時，他們各自都發布了季度正增長的業績。

And it's a real demonstration of the continued consistency in the results that these brands are showing up with.

這確實證明了這些品牌的業績持續保持一致。

On Old Navy, we saw particular strength in women's as the team is really focusing on reasserting Old Navy style authority, and we're dialing up fashion.

在 Old Navy，我們看到了女裝方面特別強大的優勢，因為團隊真正專注於重申 Old Navy 風格的權威，而且我們正在提升時尚感。

We're also seeing broad strength across important categories, denim, dresses, kids, and baby.

我們也看到牛仔布、洋裝、兒童和嬰兒等重要類別的廣泛優勢。

Our marketing is resonating much more clear on our pricing strategy.

我們的行銷對我們的定價策略有更清晰的回應。

In-store navigation, there's certainly compelling storytelling.

店內導航肯定有引人入勝的故事。

Team is doing a great job, executing with excellence and we are going to be continuing to deliver consistent results.

團隊表現出色，執行力出色，我們將持續提供一致的成果。

As it relates to Gap, similar story.

就 Gap 而言，也有類似的故事。

We're building on the success of our linen campaign that we really were incredibly excited about.

我們正在鞏固亞麻布活動的成功，對此我們真的感到非常興奮。

This is about relentless repetition.

這其實就是不斷的重複。

You'll see that in our Get Loose campaign, which just launched last week.

您會在我們上週剛啟動的 Get Loose 活動中看到這一點。

We're declaring gap as the destination for the baggy and oversized trend.

我們宣稱 Gap 將成為寬鬆和超大潮流的歸宿。

We've had terrific results from collaborations like Doen and Madhappy.

我們與 Doen 和 Madhappy 等公司的合作取得了非常出色的成果。

Collaborations will also remain a key part of the strategy to broaden reach, strengthen relevance, and we'll be sharing more collaboration news shortly.

合作仍將是擴大影響力、加強相關性策略的關鍵部分，我們很快就會分享更多合作新聞。

But I'm very excited with the progress to date.

但我對迄今為止的進展感到非常興奮。

Again, team is executing really well, and we're on our way to revitalizing this iconic brand.

再次，團隊執行得非常好，我們正在振興這個標誌性品牌。

Bob, your question on back-to-school, which clearly is -- obviously we're in the throes of it right now.

鮑勃，你的問題是關於開學的，顯然我們現在正處於這個困難時期。

Hopefully, you've seen the advertising that we have this year with some great product.

希望您已經看到了我們今年推出的一些精彩產品的廣告。

Old Navy and Gap launched a great marketing campaign that was primarily grounded in our brand reintegration playbook.

Old Navy 和 Gap 發起了一場偉大的行銷活動，該活動主要以我們的品牌重塑策略為基礎。

We are very pleased with early results.

我們對早期結果非常滿意。

I would say denim is having a moment in kids as well as adult.

我想說牛仔佈在兒童和成人中都很流行。

Trends like loose fit, wide leg, fleece, classics, always, back-to-school cargo khakis are always in style.

寬鬆、闊腿、羊毛、經典、開學季的卡其褲等潮流永遠流行。

Most importantly, recognizing that Old Navy is the number one kids and baby brand in the US.

最重要的是，認識到 Old Navy 是美國第一個的兒童和嬰兒品牌。

The overall market was up, about 5% in the quarter.

本季整體市場上漲約 5%。

And we gained share in both Old Navy and Gap.

我們在 Old Navy 和 Gap 的市佔率均有所增加。

So I think we believe we have an opportunity to accelerate in the kids and baby space, become an even more important player.

因此我認為我們相信我們有機會在兒童和嬰兒領域加速發展，成為更重要的參與者。

And you'll see that as quarters roll by.

隨著季度的流逝，您就會看到這一點。

But anyway, thank you for the question.

無論如何，感謝您的提問。

Pretty comprehensive on Gap and Old Navy, and clearly, we're in the throes of back-to-school.

關於 Gap 和 Old Navy 的介紹相當全面，顯然，我們正處於開學季。

Thank you.

謝謝。

Alex Straton, Morgan Stanley.

摩根士丹利的亞歷克斯·斯特拉頓。

Great.

偉大的。

Thanks a lot for taking the question.

非常感謝您回答這個問題。

Congrats on a great quarter.

恭喜您度過了一個美好的季度。

Maybe one for Katrina and then one for Richard.

也許一個是給卡特里娜的，另一個是給理查的。

So Katrina, I'm just trying to understand the third-quarter guidance on sales.

所以卡特里娜，我只是想了解第三季的銷售指導。

Thing is just up slightly, which seems to be like a bit of a slowdown from the second quarter levels.

情況只是略有好轉，但似乎比第二季度的水平有所放緩。

Can you just kind of give some color around what's driving that guide by banner and maybe what you're seeing so far?

您能否簡單介紹一下橫幅廣告的引導因素以及目前看到的情況？

And then just for Richard on that, let us return to positive comp growth for the rest of the year.

然後，對於理查德來說，讓我們在今年剩餘時間內恢復積極的成長。

Can you talk about where that brand is at and its transformation story, if you like, it's a big margin lever.

您能否談談該品牌的現狀和轉型故事？

So I'm just curious how you're feeling there.

所以我只是好奇你在那裡感覺如何。

Thanks a lot.

多謝。

Yeah, sure.

是的，當然。

So I'll take the first one, Alex.

因此我選擇第一個，亞歷克斯。

I'm really glad you asked this.

我很高興你問這個問題。

There's a few drivers.

有幾位司機。

First of all, I would start by saying we're very confident in the brand reinvigoration work that we're doing.

首先，我想說的是，我們對我們正在進行的品牌振興工作非常有信心。

But we remain balanced in our view of the consumer as well as the macro-economic environment in which we operate.

但我們對於消費者以及我們經營所處的宏觀經濟環境仍然保持平衡的看法。

As we head into the second half of the year.

我們即將進入下半年。

I think more specifically and to get into more detail, just a reminder, we did experience about two percentage points of incremental sales growth year over year from the credit card agreement that was specific to Q2.

我認為更具體地說，為了更詳細地說明，需要提醒的是，我們確實從第二季特有的信用卡協議中經歷了約兩個百分點的增量銷售額同比增長。

Second, we do begin to lap, our better performance from the early reinvigoration efforts in the third quarter at Old Navy in particular.

其次，我們確實開始取得進步，特別是 Old Navy 在第三季早期的振興努力帶來的更好表現。

And then third, while we expect to return to positive comps as we said at Athleta, the magnitude of the third quarter recovery has a range of outcomes.

第三，雖然我們預計業績將恢復正成長，正如我們在 Athleta 所說的那樣，但第三季復甦的幅度會帶來一系列結果。

So we'll see where that lands on.

因此我們將看看結果會如何。

And then, you know, year to date, as you talked about sort of comments by brand, we've seen really strong performance at Old Navy and Gap.

然後，您知道，今年迄今為止，正如您談到按品牌發表的評論一樣，我們看到 Old Navy 和 Gap 的表現非常強勁。

And I think as I just said, we are lapping some of those reinvigoration efforts in Q3.

我認為正如我剛才所說，我們在第三季正在進行一些重振工作。

Banana is focused on fixing the fundamentals.

Banana 專注於修復基本面。

We talked about that.

我們討論過這個。

And I think I'll let Richard talk a little bit about as we exit lapping this highly promotional environment how we're feeling about Athleta.

當我們退出這個高度促銷的環境時，我想我會讓理查德談談我們對 Athleta 的感受。

Yeah.

是的。

Thanks, Alex.

謝謝，亞歷克斯。

We're gaining much more confidence in Athleta.

我們對 Athleta 越來越有信心。

So our net sales in the quarter were down 1%, comps down 4%.

因此，本季我們的淨銷售額下降了 1%，同店銷售額下降了 4%。

But really important to remind that we're lapping a period of very heavy discounting last year, and there is a lot of good progress being made.

但真正需要提醒的是，我們去年正處於大幅折扣的時期，並且取得了許多良好的進展。

We've successfully broadened our consumer base.

我們成功擴大了我們的消費者群體。

We're seeing much better sell-throughs at full price.

我們發現全價銷售的成績好多了。

Our marketing, which has been totally refreshed is gaining traction.

我們的行銷方式已煥然一新，並且越來越受歡迎。

And most importantly, our fashion product is resonating.

最重要的是，我們的時尚產品引起了共鳴。

And given the success that we're seeing with our new product, notably in core bottoms and the limited edition drops that we've been doing, we now expect to see positive comps for the remainder of the year.

鑑於我們新產品的成功，尤其是核心褲裝和限量版產品，我們預計今年剩餘時間的銷售額將呈現積極勢頭。

The team has been focused on resetting the brand and setting the brand up for sustainable growth in the long term.

該團隊一直致力於重塑品牌並為品牌的長期永續發展奠定基礎。

And we're very excited about the progress and the future of the brand.

我們對品牌的進步和未來感到非常興奮。

Thanks a lot.

多謝。

Matthew Boss, JPMorgan.

摩根大通的馬修·博斯（Matthew Boss）。

Great, thanks.

太好了，謝謝。

So Richard on your targeted consistency, can you elaborate on maybe the structural changes that you've made across merchandising and marketing at Old Navy and the gap that you see driving sustainable profitable growth in the back half and then into next year?

那麼理查德，關於你的目標一致性，你能否詳細說明一下你在 Old Navy 的商品和營銷方面所做的結構性變化，以及你認為在下半年和明年推動可持續盈利增長的差距？

Thanks, Matt.

謝謝，馬特。

I wouldn't focus our our answer to that on our strategic priorities.

我的回答不會集中在我們的策略重點。

We have been incredibly disciplined in maintaining focus around our four strategic priorities.

我們非常自律，始終專注於四個策略重點。

And the execution of that, I believe is really showing up in the metrics that matter.

我相信，這項措施的執行確實會在重要的指標中反映出來。

Maintaining financial and operational rigor, as I've said in my opening remarks, is really becoming the way in which we work, better processes, much more cultural accountability.

正如我在開場白中所說，保持財務和營運嚴謹性確實正在成為我們工作的方式、更好的流程和更多的文化責任。

And again, as you see the performance that we have in the quarter and consistently, it's really due in the context of how we're working with much more disciplined process.

而且，正如您所看到的，我們在本季度以及一貫的表現，實際上歸功於我們採用更規範的流程開展工作。

That is really enabling the second priority, which is reinvigorating our brands.

這實際上實現了第二個優先事項，即重振我們的品牌。

We've spoken a lot about our playbook and ultimately driving relevance and revenue to be on this journey to become a high-performing house of iconic brands that really shape culture.

我們已經多次談論了我們的劇本，並最終推動相關性和收入，從而成為真正塑造文化的標誌性品牌的高績效公司。

Our two biggest brands, which we've noted Old Navy and Gap are furthest along, multiple quarters of positive comps and market share gains.

我們最大的兩個品牌，Old Navy 和 Gap 走得最為遠，連續多個季度正成長，市佔率也有所成長。

And I'm encouraged, as I've said, with the improvements that we're making on Banana and Athleta.

正如我所說的，我們對 Banana 和 Athleta 所做的改進令我感到非常鼓舞。

The third piece strengthening our platform.

第三部分是加強我們的平台。

We've talked a lot about the greater value of our capabilities and leverage that we have to drive individual brand growth.

我們已經多次談論了我們的能力和槓桿的更大價值，以推動單一品牌的成長。

Of particular note, I mentioned our new media partner, Omnicom.

特別值得一提的是，我提到了我們的新媒體合作夥伴宏盟集團（Omnicom）。

That's going to help us really drive efficiencies and effectiveness and amplify these brand narratives and become a strategic differentiator as we drive more culturally relevant conversations and a much more innovative media mix.

這將幫助我們真正提高效率和效力，擴大這些品牌敘事，並在我們推動更多文化相關的對話和更具創新性的媒體組合時成為策略差異化因素。

Those examples will start to really show up in the second half.

這些例子將在下半場開始真正顯現出來。

And then the last piece I'd talk about is our culture.

我要談的最後一點是我們的文化。

We're seeing really strong signs across our organization and notably in our recent employee survey, which received nearly twice the engagement that we had compared to last year, I talk often about our people and our talent.

我們在整個組織中看到了非常強勁的跡象，特別是在我們最近的員工調查中，與去年相比，我們的參與度幾乎增加了兩倍，我經常談論我們的員工和我們的人才。

They're really the gateway to the pursuit of our vision and also ultimately, really driving better work.

它們實際上是我們追求願景的大門，並且最終也真正推動更好的工作。

And we're working as a company around new values, new vision, new mission.

作為一家公司，我們正在圍繞著新的價值觀、新的願景、新的使命而努力。

We've been added with precision new talent.

我們已增添精準新人才。

There's extraordinary talent within the company.

公司裡有很多傑出的人才。

And together, that mix is really driving executing with excellence.

總之，這種結合確實推動了卓越的執行。

So all in all, I'm very pleased with the progress.

總的來說，我對進展非常滿意。

We have a lot more work to do, but teams are really focused on executing.

我們還有很多工作要做，但團隊確實專注於執行。

And certainly this quarter shows up on the scoreboard.

當然，這一節的成績也會出現在記分板上。

That's great.

那太棒了。

And maybe Katrina, to that point, could you elaborate on just further areas of potential efficiency across the expense structure or just how best to rank multiyear leverage opportunity across whether it's technology, marketing or corporate?

也許卡特里娜，到那時，您能否詳細說明費用結構中可能提高效率的更多領域，或者如何最好地對技術、行銷或企業方面的多年槓桿機會進行排名？

Yeah, thanks for that question.

是的，謝謝你提問。

So after the last two years or over the last two years, we've really worked on increasing the financial rigor, as we've talked about.

因此，正如我們所討論的那樣，在過去兩年或過去兩年中，我們確實致力於提高財務嚴謹性。

We've actioned about $550 million in cost reductions.

我們已經採取了約 5.5 億美元的成本削減措施。

We know that the $5.1 billion of SG&A that we guided to this year does reflect lower nominal dollars versus last year and is leveraging.

我們知道，我們今年預計的 51 億美元銷售、一般和行政費用確實反映了較去年同期更低的名義金額，並且正在產生槓桿作用。

And that's all despite higher incentive compensation accruals.

儘管激勵性薪酬累積較高，但情況仍然如此。

So we're pleased with the progress.

所以我們對進展感到滿意。

But as you say, we do realize that SG&A as a percentage is still high.

但正如您所說，我們確實意識到銷售、一般和行政費用佔比仍然很高。

And we believe our cost structure can become more efficient.

我們相信我們的成本結構可以變得更有效率。

So we're deeply engaged in identifying the next phase of savings to drive value creation over the long term.

因此，我們深入致力於確定下一階段的節約方式，以推動長期價值創造。

So we'll look forward to getting back to you when we have a more articulated plan.

因此，當我們有更詳細的計劃時，我們期待與您聯繫。

But we are deeply focused on efficiencies for the future.

但我們非常關注未來的效率。

Thank you.

謝謝。

Ike Boruchow, Wells Fargo.

富國銀行的艾克·博魯喬（Ike Boruchow）。

Congrats.

恭喜。

I'll take Bob's question.

我來回答鮑伯的問題。

Just take it a little bit in more details because I know the ships are in there and it's a little hard to tell.

只要更詳細地了解一下，因為我知道船在裡面，而且有點難以分辨。

But Richard, can you say specifically now that you have the tougher compares coming up specifically at Old Navy, do you expect Old Navy to continue to comp positively?

但是理查德，你能否具體說一下，現在你面臨著更嚴峻的競爭形勢，特別是 Old Navy 的競爭形勢，你是否預計 Old Navy 會繼續保持積極的增長勢頭？

And do you expect the company to continue to comp positively as we get into the back half.

您是否預計，進入下半年，公司業績將繼續保持積極態勢？

And then a follow up question for Katrina.

然後是針對卡特里娜的後續問題。

Just on the ROD line, you can see with the operating lease costs in the run costs, those continue to go up by a decent amount, but the ROD dollars are going down and you're getting good leverage.

僅在 ROD 線上，您可以看到營運成本中的經營租賃成本繼續大幅上漲，但 ROD 美元卻在下降，而且您獲得了良好的槓桿作用。

What exactly is going on the occupancy line that you guys have done to create a more leverageable model and how sustainable is that?

你們在入住率線上究竟做了哪些工作來創造更具槓桿作用的模型，以及它的可持續性如何？

Yeah.

是的。

So I'm happy to talk more specifically to the comp in the back half.

因此我很高興能更具體地談談後半部的內容。

So we did guide to sales in the Q3 timeframe up slightly.

因此，我們確實預計第三季的銷售額將略有上升。

What I would say in general is, I would think about a spread that is sort of relatively neutral.

總的來說，我會考慮一種相對中性的利差。

So we'll let you do the math on whether or not that means positive comps.

因此，我們將讓您計算一下這是否意味著積極的補償。

But particular to Old Navy and GAAP, we feel very good about where we are in the brand reinvigoration process.

但具體到 Old Navy 和 GAAP，我們對品牌重振過程感到非常滿意。

And I think as Richard said, there's lots of really exciting things happening from a product and marketing standpoint.

我認為正如理查德所說，從產品和行銷的角度來看，有很多令人興奮的事情發生。

As we head into the back half, they've been most consistent in their performance.

當我們進入後半段時，他們的表現最穩定。

So we'll see where that lands us, but we feel very good about those two brands.

所以我們會看看結果會如何，但我們對這兩個品牌非常滿意。

As it relates to ROD, right now, ROD leverages on about flat to modestly positive sales growth.

就 ROD 而言，目前，ROD 利用了持平至適度正向的銷售成長。

And as you know, we've done a lot of work in the store part of the business where we've closed over 350 stores as we went through the pandemic, primarily at Gap.

如您所知，我們在門市業務方面做了很多工作，在疫情期間我們關閉了 350 多家門市，主要是 Gap 門市。

And that has given us a lot more flexibility in that line to save not only rent and occupancy dollars but to get leverage on much lower sales.

這為我們提供了更多的靈活性，不僅可以節省租金和入住費用，還可以利用更低的銷售額。

So that's been a real benefit.

這確實是有好處的。

Lorraine Hutchinson, Bank of America Global Research.

美國銀行全球研究部的洛林‧哈欽森 (Lorraine Hutchinson) 說：

Thank you.

謝謝。

Good afternoon.

午安.

I just want to (technical difficulty) Old Navy for a minute and the profitability, where do you see the largest opportunities to improve margins at Old Navy?

我只想 (技術難題) 請花一分鐘時間討論 Old Navy 的盈利能力，您認為 Old Navy 提高利潤率的最大機會在哪裡？

And is this one-off your key goals in terms of improving consistency?

就提高一致性而言，這是您的一次性關鍵目標嗎？

I'll start and Richard can pile on.

我先開始，理查德可以接著說。

I think in general, the rigor that we're putting in place across the Company around inventory management, expanding gross margins, being prudent about SG&A and overall growing operating margins, I think is leading us to impact all of our brands on.

我認為，整體而言，我們公司上下在庫存管理、擴大毛利率、審慎控制銷售、一般及行政開支以及整體提高營業利潤率等方面所採取的嚴格措施，正在對我們所有的品牌產生影響。

So we're focused on driving profitability across our portfolio.

因此，我們專注於提高整個投資組合的獲利能力。

Old Navy, obviously, as the biggest brand in the portfolio is quite important on that journey.

顯然，Old Navy 作為其投資組合中最大的品牌，在這一歷程中相當重要。

I think overall, when you look at the company and you think about the guidance that we've put out, our gross margins for the year are approaching historical highs.

我認為總體而言，當您看看公司並考慮我們發布的指導時，我們今年的毛利率正在接近歷史最高水平。

And so we feel very good that we've made a lot of progress around gross margins for the company.

因此，我們很高興看到該公司的毛利率取得了巨大進步。

And our bigger focus I think we talked about just a minute ago is really turning our attention to further work we can do around the expense structure of the company.

我認為我們剛才談到的更大的重點實際上是將我們的注意力轉向我們可以圍繞公司的費用結構進行的進一步工作。

Yeah, Lorraine, I'll just add, we're running a fundamentally stronger business.

是的，洛林，我只想補充一點，我們的業務從根本上更強大。

And obviously, the metrics that we're posting are indicative of the efforts that we've been making.

顯然，我們發布的指標顯示了我們一直以來的努力。

But of particular note, we're driving a 5% net sales growth on 5% less inventory.

但特別值得注意的是，我們在庫存減少 5% 的情況下實現了 5% 的淨銷售額成長。

We've been working on our inventory and inventory management for quite some time.

我們已經致力於庫存和庫存管理很長時間了。

The composition that we have is much stronger.

我們的組成更強大了。

We have better product, better sell-through in general at full price and therefore less discounting and obviously, the impact on margin is there.

我們有更好的產品，總體而言，全價銷售更好，因此折扣更少，顯然，這對利潤有影響。

As we continue to drive consistent deliverables on Old Navy GAAP and across our portfolio, we expect that type of rigor to remain consistent.

隨著我們繼續推動 Old Navy GAAP 和我們整個投資組合的一致交付，我們預計這種嚴謹性將保持一致。

It is our fourth consecutive quarter of positive comps for Old Navy.

這是我們連續第四個季度為 Old Navy 帶來正成長。

It's the sixth consecutive quarter of market share gains as well for Old Navy and for the company.

這也是 Old Navy 和該公司連續第六個季度實現市場份額成長。

Again, as a reminder, it's also the seventh consecutive quarter of women's gained share in GAAP.

再次提醒一下，這也是女性在 GAAP 中的份額連續第七個季度增加。

So consistently doing what we say we're going to do.

所以我們要始終如一地履行我們所說的諾言。

Driving leaner, more inventory that is precise and better storytelling, and we're getting that resonance with consumers.

透過推動更精簡、更精準的庫存和更好的故事敘述，我們正在與消費者產生共鳴。

thank you.

謝謝。

Thank you.

謝謝。

Adrienne Yih, Barclays.

巴克萊銀行的 Adrienne Yih。

Great.

偉大的。

Thank you and congratulations on the progress.

謝謝你，並祝賀你的進展。

Richard, I can appreciate very much the market share gains at the Gap brand.

理查德，我非常欣賞 Gap 品牌市佔率的成長。

I was wondering after a year with the comp over a year, can you talk about kind of the descriptors for what is the core target demographic, the core markets for GAP because they feel like that is the one brand that maybe has moved around a bit over the past decade?

我想知道，在與該公司合作一年多後，您能否談談 GAP 的核心目標群體和核心市場是什麼，因為他們覺得這是過去十年中可能有所變動的一個品牌？

And then secondly, Katrina, just some clarification on the one-time benefit of the credit card revenue, 2 percentage points to sales that you said.

其次，卡特里娜，請您澄清一下您所說的信用卡收入的一次性收益，即佔銷售額的 2 個百分點。

I think you said 240 basis points to the merch margin.

我認為您說的是商品利潤率 240 個基點。

So should we just net -- should we take that out of the operating margin and think about it that way for an adjusted basis?

那麼，我們是否應該將其從營業利潤率中扣除，然後以調整後的基礎來考慮呢？

Thank you.

謝謝。

Thanks, Adrian, for the question.

謝謝 Adrian 提出這個問題。

And in particular on the Gap brand, which we're so proud of the progress is that we've made.

特別是 Gap 品牌，我們對所取得的進步感到非常自豪。

And as I mentioned, I really do believe we're well on our way to revitalizing this iconic American brand.

正如我所提到的，我確實相信我們正在振興這個標誌性的美國品牌。

It's also important to note the brand is 55 years old or young.

值得注意的是，該品牌已有 55 年歷史，仍然很年輕。

We just celebrated our 55th anniversary.

我們剛剛慶祝了我們的55週年結婚紀念日。

And I think in the context of what that represents, it's a multi-generational brand.

我認為，從其代表的含義來看，它是一個跨越多個世代的品牌。

And we've been focusing on returning to our roots as a pop-culture brand.

我們一直致力於回歸流行文化品牌的本源。

And so trend-right products and creative expression that is supported by big ideas and culturally relevant messaging.

因此，符合潮流的產品和創造性的表達需要有偉大的思想和文化相關的訊息的支持。

It's less about age and more about brand persona and brand identity.

這與年齡關係不大，而與品牌形象和品牌識別關係較大。

And I've been really pleased that the brand has delivered these consistent results in the quarter.

我很高興該品牌在本季取得如此穩定的業績。

Net sales, up 1%, comps up 3%, gaining market share for the fifth consecutive quarter across women's, men's, kids and baby.

淨銷售額成長 1%，同店銷售額成長 3%，連續第五個季度在女裝、男裝、兒童和嬰兒用品領域的市佔率都有所成長。

These are real indications that we're starting to get it right.

這些確實跡象表明我們正在開始做正確的事。

Our Get Loose campaign, which is out there now just launched last week, it's a declaration as Gap -- as a destination for trend -- baggy and oversized trend.

我們的「Get Loose」活動於上周正式啟動，它宣告 Gap 成為潮流的聚集地——寬鬆和超大潮流。

But when you talk to different consumers in different age brackets, they're all really enthusiastically excited about Gap narrative and about where we can potentially go with this brand and its heritage.

但當你與不同年齡層的不同消費者交談時，他們都對 Gap 的敘述以及我們可以延續這個品牌及其傳統的方向感到非常興奮。

As mentioned, again, the collaborations, Doen and Madhappy, it's a key part of our brand strategy.

如同先前所提到的，與 Doen 和 Madhappy 的合作是我們品牌策略的關鍵部分。

It's broadening our reach, strengthening our cultural relevance.

它拓寬了我們的影響力，增強了我們的文化影響力。

It's opening up consideration for generations that might not have considered Gap.

它為那些可能從未考慮過 Gap 的世代開啟了思考之門。

So it's a multi-tiered approach.

所以這是一個多層次的方法。

I'm very confident in how the progress is delivering to date.

我對迄今為止的進展非常有信心。

And there's a lot more to share in the future.

未來還會有更多內容可以分享。

Thank you.

謝謝。

Super helpful.

超有幫助。

As it relates to the credit card benefit, yeah, it was about two points to net sales year over year.

就信用卡優惠而言，是的，與去年相比，淨銷售額增加了約兩個百分點。

And that was driven by incremental revenue related to the credit card agreement.

這是由與信用卡協議相關的增量收入所推動的。

And it was basically we have contract provisions within the arrangement of our credit card agreement that impacts the timing of how we recognize certain revenue.

基本上，我們的信用卡協議安排中含有合約條款，會影響我們確認某些收入的時間。

So it is unique to the quarter.

因此，它是該季度所獨有的。

As it relates to the margin piece, however, we did break down the merch margin into 410 basis points of benefit.

然而，由於它與利潤部分相關，我們確實將商品利潤分解為 410 個基點的收益。

We said 170 was commodities and 240 is actually about half credit card dynamic and the other half is actually better promotional performance.

我們說170是商品，240其實大約是一半的信用卡動態，另一半其實是更好的促銷表現。

So I wouldn't take all of that to point out.

所以我不會花所有這些來指出。

You can use about half as an example to adjust for that one-time benefit.

您可以使用大約一半作為範例來調整一次性福利。

Super.

極好的。

Okay.

好的。

Thank you so much.

太感謝了。

I appreciate it.

我很感激。

Thanks, Adrian.

謝謝，阿德里安。

Mark Altschwager, Baird.

馬克·阿爾特施瓦格，貝爾德。

Good afternoon.

午安.

Thank you for taking my question on.

感謝您回答我的問題。

So we look across the apparel space here.

我們來看看這裡的服裝領域。

We've seen several examples in the last couple of months about how value is really taking share with consumers in this backdrop, Old Navy clearly known for value well positioned there.

在過去的幾個月裡，我們已經看到了幾個例子，說明在這樣的背景下，價值是如何真正贏得消費者的青睞的，Old Navy 顯然以價值定位而聞名。

So just wondering if you could just sort of speak to your opportunity to lean into that over holiday with their marketing messaging?

所以我想知道您是否可以談談您在假期利用他們的行銷訊息抓住這一機會？

And just also what are your expectations more broadly for the promotional backdrop for the holiday season?

那麼您對於節慶季節的促銷背景有何更廣泛的期望呢？

Thank you.

謝謝。

Thanks, Mark.

謝謝，馬克。

As far as we're concerned, we haven't seen anything that would warrant any changes or new factors that are influencing our outlook for the year.

就我們而言，我們尚未看到任何值得改變的事情或影響我們今年前景的新因素。

And as always, our job is to create the interest in demand and capture consumers' attention.

像往常一樣，我們的工作是激發需求並吸引消費者的注意力。

And we've been really encouraged specifically to see growth across all income cohorts.

我們尤其高興地看到所有收入群體都實現了成長。

That's really a reflection of the strong value proposition across all our brands, not just Old Navy.

這實際上反映了我們所有品牌（而不僅僅是 Old Navy）的強大價值主張。

Traffic remained similar to last year.

交通量與去年相似。

And our strength in the quarter has really been driven by the average transaction as customers are responding really well to our products.

由於客戶對我們的產品反應良好，我們本季的強勁表現實際上受到了平均交易量的推動。

And customers react to newness, innovation, and great storytelling.

顧客對新穎性、創新性和精彩的故事情節做出反應。

The apparel market, as you know, is down 2% in the quarter.

如您所知，本季服裝市場下跌了 2%。

And Gap Inc and our brands gained share.

Gap Inc 和我們的品牌的市佔率均有所增加。

And it was strength in categories such as denim, active, and kids, and baby, which have been strategically really well intended.

它在牛仔布、運動服、兒童和嬰兒等類別上表現強勁，這些類別的戰略意圖非常明確。

And it indicates that our reinvigoration is resonating with consumers.

這表明我們的復興正在引起消費者的共鳴。

This conversation around trading down, we haven't necessarily seen evidence of trade-down.

在圍繞降級消費的討論中，我們並未看到降級消費的證據。

Customers are continuing to have positive response when they're offered the right price, at the right style, at the right value equation.

當客戶獲得合適的價格、合適的款式和合適的價值時，他們會繼續做出積極的反應。

Our portfolio, we believe, is really well positioned and particularly with Old Navy as the largest brand in the value space.

我們相信，我們的投資組合定位非常有利，尤其是 Old Navy，它是價值領域最大的品牌。

And so there is a flight to value.

因此，出現了價值飛躍。

Old Navy is there with a welcome map.

Old Navy 在那裡提供一張歡迎地圖。

Thank you.

謝謝。

Thank you.

謝謝。

Jonna Kim TD Cowen.

喬娜·金 TD Cowen。

Thanks, for taking my question, I would love more color on how your promotional strategy now is structurally different from before.

謝謝您回答我的問題，我希望更詳細地了解您現在的促銷策略在結構上與以前有何不同。

And just related to our merchandise margin, if we should start to see moderation in the promotional benefit and how we should think about that as we model as well?

就我們的商品利潤而言，我們是否應該開始看到促銷效益的適度，以及我們在建模時應該如何考慮這一點？

Thank you very much.

非常感謝。

Yes, sure.

是的，當然。

So I think as we think about what's happening in the industry overall, it appears the industry is controlling inventories well.

因此，我認為，當我們思考整個行業正在發生的事情時，看起來該行業正在很好地控制庫存。

And generally, that helps make for a more rational promotional environment.

整體而言，這有助於創造更合理的促銷環境。

I think more particularly to us, our inventory is well controlled, and we're very focused on executing our reinvigoration playbook.

我認為對我們來說更具體地說，我們的庫存得到了很好的控制，我們非常專注於執行我們的振興計劃。

Again, as we think about the second quarter, we had very strong beat in gross margin, a portion of that driven by commodities.

再次回顧第二季度，我們的毛利率表現非常強勁，其中一部分原因是大宗商品的推動。

And as we just talked about a portion of that driven by the credit card activity, but also by better performance in gross margin.

正如我們剛才談到的，其中一部分是由信用卡活動推動的，但也受到毛利率更好的表現所推動。

As we think about the year-to-date performance for the company, we've gained about 450 basis points in gross margin overall due to a strong recovery in commodity costs as well as better inventory management.

回顧該公司今年迄今的業績，由於大宗商品成本的強勁回升以及庫存管理的改善，我們的毛利率總體上漲了約 450 個基點。

So we feel very good about the progress that we are making in being able to control inventories, offer better assortments, and really generate less promotional volume.

因此，我們對在控制庫存、提供更好的商品組合和減少促銷量方面取得的進展感到非常滿意。

I think in addition to that, we see continued benefits heading into Q3.

我認為除此之外，我們還看到第三季將繼續受益。

We just provided an outlook that shows a range of possible outcomes around margin, which could grow somewhere in that 50 to 75 basis point range.

我們只是提供了一個展望，顯示了利潤率的一系列可能結果，利潤率可能會在 50 到 75 個基點的範圍內增長。

And we attributed that upside to really improved promotional activity as we head into third quarter.

我們將這種好處歸功於第三季促銷活動的真正改善。

So when you take the first half performance and our third quarter raised outlook, we've actually raised our full year outlook on gross margin again.

因此，當您考慮上半年的業績和我們上調的第三季預期時，我們實際上再次上調了全年毛利率預期。

And we now expect gross margins to be up about 200 basis points year over year.

我們現在預計毛利率將比去年同期成長約 200 個基點。

So all of that, I think, is a reflection of the rigor we've put into the inventory management side as well as the reinvigoration work that the brands are doing to offer great product at great value through great marketing.

所以，我認為，所有這些都反映了我們在庫存管理方面的嚴謹態度，以及品牌透過出色的行銷提供優質產品和超值服務的振興工作。

Thank you.

謝謝。

Corey Tarlowe, Jefferies.

傑富瑞 (Jefferies) 的科里‧塔洛 (Corey Tarlowe)。

Great.

偉大的。

Thanks.

謝謝。

Good afternoon and thank you for taking the question.

下午好，感謝您回答這個問題。

I wanted to ask about the right way to think about what the potential EBIT margin or profile of the business could be.

我想問一下，如何正確思考潛在的息稅前利潤率或業務狀況。

Given, I think this is the first time in the first half of Gap's fiscal year in a very long time if ever that you've had gross margins averaged over 41%.

有鑑於此，我認為這是 Gap 財年上半年很長一段時間內首次實現平均毛利率超過 41%。

So curious to hear how you think about the additional levers that you can pull to drive higher EBIT margins sustainably for longer?

我很好奇，想聽聽您對於可以利用哪些額外槓桿來更長久地持續提高息稅前利潤率的看法？

First of all, I think we're proving with the consistent deliverables quarter after quarter that we do what we say we're going to do.

首先，我認為我們透過第一季又一季的一致交付證明了我們說到做到。

This quarter in particular was a real success story in relation to 500 basis points of gross margin expansion and of course, our operating margin expansion of 490 basis points.

本季取得了真正的成功，毛利率擴大了 500 個基點，當然，營業利潤率也擴大了 490 個基點。

We've held our view on revenue and SG&A, and we've raised our guidance in relation to higher gross margin outlook.

我們維持對收入和銷售、一般及行政開支的看法，並上調與更高毛利率前景相關的指引。

And we expect to expand roughly 200 basis points year over year for '24.

我們預計24年將年增約200個基點。

And that will result in EBIT growth in the mid to high 50% range.

這將使息稅前利潤成長率達到 50% 左右。

As we continue to deliver against our priorities and over the long term, we're working on multiple initiatives, especially in this expense structure.

隨著我們繼續實現我們的優先事項並著眼於長期目標，我們正在開展多項舉措，特別是在這項費用結構下。

And we'll be getting back to you as to the targeted ways that we're going to continue to drive efficiencies and effectiveness.

我們將與您聯繫，討論繼續提高效率和效力的目標方法。

And as we continue to deliver what we say we're going to deliver; we see the ability for this portfolio to deliver historical references and ultimately new chapters of growth for the company.

我們將繼續履行我們的承諾；我們認為該投資組合能夠為公司提供歷史參考，並最終開啟公司新的發展篇章。

Got it.

知道了。

And then just Katrina as a follow-up to that.

接下來就是卡崔娜颶風了。

What's a comfortable level of cash for Gap Inc. going forward?

對 Gap Inc. 來說，未來合適的現金水準是多少？

Yeah.

是的。

Well, first of all, I would say we're very pleased with the health of the balance sheet. $2.1 billion of cash is a meaningful growth year over year.

首先，我想說我們對資產負債表的健康狀況非常滿意。 21億美元的現金較上年同期有顯著成長。

And so that certainly feels good.

這確實讓人感覺很好。

I think about minimum cash balances somewhere in the $1.2 billion range, that gives us a level that ensures we have the cash to service our working capital fluctuations and general business volatility.

我認為最低現金餘額在 12 億美元左右，這可以確保我們有足夠的現金來應對營運資金波動和一般業務波動。

And then, you know, when I think about cash, we sort of have a balanced framework for capital allocation on First, we invest in the business through capital to the degree we feel like we can get a good return.

然後，你知道，當我考慮現金時，我們有一個平衡的資本配置框架，首先，我們透過資本投資於業務，直到我們認為可以獲得良好回報的程度。

And this year we've said we're spending about $500 million in capital.

今年我們說我們將花費約 5 億美元的資金。

Second, we believe in paying an attractive dividend as a key component of shareholder returns.

其次，我們相信支付有吸引力的股息是股東回報的關鍵組成部分。

And we have paid out about $112 million so far year to date.

今年迄今我們已經支付了約 1.12 億美元。

And we just approved another $0.15 a share dividend in third quarter.

我們剛剛批准第三季再派發每股 0.15 美元的股息。

So I think so far, we feel very good about the way we've been managing the balance sheet.

所以我認為到目前為止，我們對管理資產負債表的方式感到非常滿意。

And all of that -- management this year so far has given us about $400 million of free cash flow.

所有這些——今年迄今為止管理層已經為我們提供了約 4 億美元的自由現金流。

So hopefully that's helpful.

希望這會有所幫助。

Thank you very much and best of luck.

非常感謝，祝你好運。

Dana Telsey, Telsey Advisory Group.

達娜‧特爾西 (Dana Telsey)，特爾西顧問集團 (Telsey Advisory Group)。

Good afternoon, everyone, and very nice to see the progress, Richard, I've been in the stores in the new Banana Republic in SoHo and in Century City that you just opened.

大家下午好，很高興看到你們取得的進展，理查德，我去過你們剛剛在蘇荷區和世紀城開的 Banana Republic 商店。

And certainly the physical store footprint is important for the new enhancements to the products that you're advancing.

當然，實體店的足跡對於您正在推進的產品的新的增強非常重要。

How are you thinking about the retail fleet in the past?

您過去是如何看待零售車隊的？

It had been thought that Old Navy will go into some more rural areas too, what's the status of the fleet of each division with a remodel, smaller size and where you're taking it going forward?

我們曾認為 Old Navy 也會進入更多的鄉村地區，經過改造、規模縮小後，各部門的車隊狀況如何？

Thank you.

謝謝。

Thank you, Dana.

謝謝你，達娜。

I really appreciate you visiting our SoHo store and Century City.

非常感謝您造訪我們的 SoHo 商店和世紀城。

We're really proud of those expressions.

我們真的為這些表達感到自豪。

And I think SoHo and Century are great examples of immersive experiences that we're trying to create.

我認為 SoHo 和 Century 是我們試圖創造的沉浸式體驗的絕佳例子。

It certainly has a new aesthetic, which we believe again has the right elements for the new direction that we're taking.

它確實具有一種新的美感，我們再次相信它具有我們正在採取的新方向的正確元素。

And we're planning to roll out similar elements inspired by those two doors with the rest of the fleet.

我們計劃在其他車型中推出受這兩扇門啟發的類似元素。

As it relates to retail stores in general, across our fleet, we are in the sort of studying stage, if you will of optimizing our retail footprint.

就我們整個零售店而言，如果您願意的話，我們正處於研究階段，以優化我們的零售足跡。

And there's a lot of work that we're doing to understand productivity, store experiences, traffic and all the variables as you can imagine with a fleet and presence that we have.

我們正在進行大量工作來了解生產力、商店體驗、流量以及您可以想像到的與我們的車隊和業務相關的所有變數。

We believe very strongly in retail and the balance of the omnichannel experience being both bricks-and-mortar and digital and the connection between the two.

我們堅信零售業和全通路體驗的平衡，即實體店和數位化，以及兩者之間的連結。

But we have work to do.

但我們還有很多工作要做。

We have a lot of work to do across our fleets to make sure that these stores reflect the brand reinvigoration that we've been working.

我們需要在所有門市中進行大量工作，以確保這些門市能夠體現我們一直致力於的品牌重塑。

Each one of our brand leaders is paying incredible attention to the store experience, the service levels, the aesthetics, the sites, the sound.

我們的每位品牌領導者都非常重視商店體驗、服務水準、美學、場地和聲音。

These are all really important part of our consumer journey and the reinvigoration of our brands.

這些都是我們的消費者旅程和品牌重振中非常重要的一部分。

So while we made progress and we've got some great indication on some of our stores, we do have a lot of work to do.

因此，雖然我們取得了進展，並且在一些商店中取得了一些良好的業績，但我們仍有很多工作要做。

And we'll be sharing a lot more of that in the quarters to come.

我們將在接下來的幾季分享更多相關資訊。

Thank you.

謝謝。

Thank you.

謝謝。

We reached the end of the question-and-answer session.

問答環節已經結束。

That does conclude our conference call.

我們的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。