蓋璞 (GPS) 2024 Q2 法說會逐字稿

Good afternoon, everyone. I would like to welcome everyone to the Gap Inc. second-quarter 2024 earnings conference call. (Operator Instructions) I would now like to introduce your host Whitney Notaro, Head of Investor Relations.

大家下午好。歡迎大家參加 Gap Inc. 2024 年第二季財報電話會議。 （操作員說明）現在我想介紹一下主持人投資者關係主管惠特尼·諾塔羅（Whitney Notaro）。

Thank you and good afternoon, everyone. Welcome to Gap Inc's second-quarter fiscal 2024 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.

謝謝大家，大家下午好。歡迎參加 Gap Inc 2024 財年第二季財報電話會議。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, 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發布中包含的警示性陳述以及公司 10-K 表格年度報告中描述的風險因素於2024 年3 月19 日向美國證券交易委員會提交的文件，以及隨後向美國證券交易委員會提交的任何文件，所有這些均可在gapinc.com 上取得。

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. 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.

這些前瞻性陳述是基於截至今天（2024 年 8 月 29 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。我們最新的收益發布以及gapinc.com上提供的隨附材料還包括對任何不符合公認會計原則的財務措施的描述和調節。

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 OâConnell)。這樣，我會將電話轉給理查德

Good afternoon and thank you for joining us. Gap Inc. delivered another successful quarter that exceeded financial expectations and we gained market share for the 6th consecutive quarter. 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. And we are making consistent progress in the reinvigoration of our brands.

下午好，感謝您加入我們。 Gap Inc. 又一個成功的季度超出了財務預期，我們連續第 6 個季度獲得了市場份額。與一年前相比，我們在重要的關鍵指標上處於更有利的地位，包括淨銷售額、利潤率和現金狀況。我們在品牌復興方面不斷取得進展。

These results give me confidence that we are on our way to unlocking Gap Inc.’s full potential. 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. Then, Katrina will walk you through our detailed financial results and share our outlook before we open the call for questions.

這些結果讓我相信我們正在釋放 Gap Inc. 的全部潛力。在今天的電話會議上，我將在我們的四個策略優先事項的背景下提供第二季業績和進展的最新資訊：保持和實現財務和營運的嚴謹性；重振我們的品牌；加強我們的營運平台；並為我們的文化注入活力。然後，卡崔娜颶風將向您介紹我們詳細的財務業績，並在我們開始提問之前分享我們的前景。

Let’s start with financial and operational rigor. 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.

讓我們從財務和營運的嚴格性開始。正如我們在第一季所說，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問責制以及對有效性和效率的關注來繼續加強這一基礎。

Gap Inc. net sales were up 5% in the second quarter and comps were up 3%, reflecting our continued focus on this important priority. Old Navy posted comps up 5%, representing four consecutive quarters of positive growth.

Gap Inc. 第二季的淨銷售額成長了 5%，比較成長了 3%，反映出我們對這一重要優先事項的持續關注。 Old Navy 的業績成長了 5%，連續四個季度實現正成長。

Gap comps were up 3%, driven by five consecutive quarters of share gains. Banana Republic comps were flat as the brand continues to gain clarity on fixing the fundamentals. And as planned, Athleta’s comps were down 4% as we lapped heavy discounting.

在股票連續五季上漲的推動下，Gap 股價上漲 3%。 Banana Republic 的業績表現持平，因為該品牌在基本面修復方面不斷取得清晰的認識。按照計劃，由於我們實施大幅折扣，Athleta 的比較下降了 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.

我們將毛利率提高了 500 個基點，SG&A 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. We are maintaining inventory discipline with Q2 levels down 5% year over year. And we ended the quarter with a strong cash balance of $2.1 billion and generated nearly $400 million in free cash flow.

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。本季結束時，我們擁有 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. 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. We are working to provide our customers with a more engaging omnichannel experience and aim to execute with excellence.

談到我們的下一個策略重點，我們仍然專注於透過執行我們的品牌重振手冊來提高相關性和收入，我在過去幾個季度中提到過這一點。我們正在建立更強大的品牌形象，以順應潮流的產品為支撐，透過更引人注目的故事敘述和創新的媒體組合來放大品牌形象，從而轉化為更大的文化相關性。我們致力於為客戶提供更具吸引力的全通路體驗，並致力於卓越執行。

Each brand is at a different point in the process, and I am encouraged by the improvements we are driving across the portfolio. I’ll take you through how these elements are showing up at each of the brands, starting with Old Navy.

每個品牌都處於這個過程的不同階段，我對我們在整個產品組合中推動的改進感到鼓舞。我將帶您了解這些元素如何在每個品牌中呈現，從 Old Navy 開始。

Over the past year, our operational rigor has enabled us to strengthen Old Navy’s foundation and brand identity. 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. As a result, we are driving market share gains and positive comps.

在過去的一年裡，我們的嚴謹運作使我們能夠加強 Old Navy 的基礎和品牌形象。我們透過更清晰的定價和店內導航、將客戶與他們想要的產品聯繫起來以及引人入勝的故事講述，在關鍵類別中獲勝。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. 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.

我們順應潮流的產品正在推動女性市場份額的成長，這一點很重要，因為她是家庭的門戶。我們在活躍類別中處於領先地位的戰略追求得到了回報，市場份額大幅增長，我們在連衣裙方面再次領先，根據 Circana 的數據，我們重新獲得了該類別中的第一名。

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

我們也看到了進一步向牛仔布傾斜的機會，透過擴大產品範圍、充滿活力的店內和線上體驗，並透過表達我們不斷發展的品牌形象工作的新活動提供支援。 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. It was a great indication of new and exciting creative for Old Navy. 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.

這次成功的廣告大片由特雷西·埃利斯·羅斯(Tracee Ellis Ross) 和亞拉·沙希迪(Yara Shahidi) 演繹，她們穿著品牌時尚單品，散發著夏日無憂無慮的氣息。這是老海軍新的、令人興奮的創意的一個很好的標誌。與一年前相比，我們是一支更強大的老海軍，在執行我們的品牌復興策略時，我們將繼續以這種嚴格程度運作。

Now, let's turn to 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. 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.

現在，讓我們轉向公認會計準則。我們致力於透過偉大的創意和與文化相關的訊息，回歸我們作為流行文化品牌的根源，重新激發 Gap 在潮流產品和創意表達方面的領導地位。雖然我們取得了巨大進步，品牌份額連續五個季度增長，女裝份額連續七個季度增長，但我們仍在不懈地追求更好。

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

我們的亞麻布移動活動反應非常好，因為我們已經成為亞麻布的目的地。我們未來的重點是重複這些類型的創意表達，利用我們植根於音樂和舞蹈的傳統，並宣示趨勢。

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.

我們透過上週推出的 Get Loose 活動繼續擴展我們的方法，由 Troye Sivan 和舞蹈公司 CDK 主演，宣布 Gap 成為寬鬆和超大趨勢的目的地。

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. 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.

憑藉我們在兒童領域的發展勢頭和分享收益，Gap 最近推出了我們認為多年來最強勁的返校活動之一。我們正在對孩子們採取更具創新性的方法，因為我們採用了新的媒體混合模式，重點是透過媽媽認可的資訊來推動孩子的需求。

Collaborations continued to amplify Gap. We were pleased with the strength of our Doen collaboration, that drove relevance and revenue, as well as frequency from loyal Gap customers. Our Madhappy collaboration enabled us to broaden our reach to a new customer base and is generating notable buzz.

合作不斷擴大 Gap 的規模。我們對 Doen 的強大合作感到滿意，這推動了相關性和收入，以及忠實 Gap 客戶的頻率。我們與 Madhappy 的合作使我們能夠擴大新客戶群的影響範圍，並引起了廣泛關注。

Gap, our namesake brand, embodies symbolic cultural importance both internally and externally. We are excited to see the progress to date, and believe we are well on our way to revitalizing this iconic American brand. Now let's turn to Banana Republic.

Gap 是我們的同名品牌，在內部和外部都體現了象徵性的文化重要性。我們很高興看到迄今為止所取得的進展，並相信我們正在振興這個標誌性的美國品牌。現在讓我們轉向香蕉共和國。

Here, we are focused on re-establishing this brand to thrive in the premium lifestyle space. We have more clarity around fixing the fundamentals with assortment architecture, pricing adjustments, and operational improvements. There is still significant work to be done, but we are continuing to perform while we transform Banana Republic into a stronger brand.

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。我們透過分類架構、定價調整和營運改善來解決基本問題更加清晰。仍有大量工作要做，但我們將繼續努力，將 Banana Republic 打造成一個更強大的品牌。

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

在這個階段，我們希望看到我們的男裝業務更加穩定，衣櫥深度有所提高，風格更加獨特。我們正在努力透過更好的品類規劃、專注於關鍵單品和改進合身性來贏得女性市場。

Across men’s and women’s, our customers continue to see more trend-right products through our BR Classics and Finest Fabrics. 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. And we are actively underway with the process to recruit the next leader for the brand.

無論男士或女士，我們的客戶不斷透過我們的 BR Classics 和 Finest Fabrics 看到更多符合潮流的產品。我們煥然一新的 Soho 旗艦店於 6 月開業，是該品牌新表達方式的傑出典範，以現代視角頌揚該品牌的傳統。我們正在積極開展為該品牌招募下一任領導者的工作。

Shifting to Athleta. We are resetting the brand, which has significant growth potential and a distinct brand identity rooted in the Power of She. On the world stage in Paris, where the Power of She was prominently demonstrated, the cultural relevance of the Athleta brand was proudly represented.

轉向運動員。我們正在重置該品牌，該品牌具有巨大的成長潛力和植根於「她的力量」的獨特品牌形象。在巴黎的世界舞台上，「她的力量」得到了突出展示，Athleta 品牌的文化相關性也得到了自豪的體現。

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. We are successfully broadening our customer base, seeing better sell-through at full price, our marketing execution is gaining traction. Our inventory position is cleaner, and fashion products are resonating driven by new merchandising.

我們的Anthem Collection 行銷活動中的運動員，包括金牌得主西蒙·拜爾斯(Simone Biles) 和凱蒂·萊德基(Katie Ledecky)，他們與Athleta 合作不僅是為了提供卓越的產品，而且是為了慶祝和賦予女性權力，這是我們品牌宗旨的核心。我們成功地擴大了我們的客戶群，看到全價銷售情況更好，我們的行銷執行力正在增強。我們的庫存狀況更加乾淨，時尚產品在新的行銷活動的推動下引起共鳴。

We are gaining more confidence and excitement around the team’s work to unlock Athleta’s incredible growth potential. As we move past headwinds in the first half, we expect the brand to return to positive comps for the remainder of the year.

我們對團隊的工作充滿了信心和興奮，以釋放 Athleta 令人難以置信的成長潛力。隨著我們克服上半年的不利因素，我們預計品牌將在今年剩餘時間內恢復正值。

Moving to the third strategic priority, our operating platform. 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.

轉向第三個策略重點，我們的營運平台。上個季度，我與您討論了推動整個組織規模和效率的機會，以及透過媒體和技術等平台功能更好地支持我們的品牌的機會。

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

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，並對我們的能力進行現代化改造。除了從這項新的合作關係中獲得影響力之外，我們還對我們的媒體組合有機會隨著時間的推移成為我們品牌的成長引擎感到興奮。我們正在從注重績效的促銷媒體組合演變為全通路策略，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. This is a game changing endeavor. 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.

我們致力於變得更加以消費者為主導，更高程度地使用數據和最佳化，並在我們的執行中實施最佳實踐。這是一次改變遊戲規則的努力。我們的執行還處於早期階段，但相信這將提高我們行銷支出的經濟性，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. 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. We are evaluating and assessing our infrastructure, talent, and capabilities, as we focus on becoming a digital-first, high-performing apparel company.

在技​​術方面，本季我們宣布 Sven Gerjets 擔任首席技術官，認識到數位化在我們的業務和客戶中的核心地位和日益增長的重要性。重要的是，我們要迅速轉變為一種思維方式，並利用嵌入我們核心的技術來驅動價值、解決問題和服務客戶。我們正在評估我們的基礎設施、人才和能力，因為我們專注於成為數位優先、高性能的服裝公司。

Now turning to our fourth strategic priority, energizing our culture. A great strategy can only go so far without a culture that is united and mobilized behind it. 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.

現在轉向我們的第四個策略重點，為我們的文化注入活力。如果沒有背後團結和動員的文化，再偉大的策略也只能走這麼遠。因此，我一直高度關注這一優先事項，並有意識地訪問全國各地的商店，與我們的商店員工和我們服務的客戶互動、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. 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. When expressed consistently, this is what will energize and define, our culture, our company, our brand.

在四月份，我們推出了新的願景、使命、目的和價值觀，這些價值觀已經開始團結我們的文化並為我們的工作方式設定標準。我們相信，我們對客戶、社區和彼此負有共同責任，有目標地開展工作，並將我們的價值觀融入我們所做的每一件事中。當一致地表達時，這將激發和定義我們的文化、我們的公司和我們的品牌。

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. 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.

我們的員工是不懈地追求變得更好的大門，而這項工作是我們實現願景的核心。去年八月，在我作為執行長向你們發表的第一次講話中，我告訴你們，我決心為 Gap Inc. 開啟激動人心的新篇章，在慶祝我們過去的同時開創非凡的未來。

The potential of our brand portfolio was clear to me, as was the need to reposition the company for sustainable, profitable growth. Since then, we’ve defined our strategic priorities, including our brand reinvigoration playbook. 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.

我很清楚我們品牌組合的潛力，也很清楚需要重新定位公司以實現可持續的獲利成長。從那時起，我們就確定了我們的策略重點，包括我們的品牌復興策略。我們引入了一種新的清晰意識，這種意識正在賦予我們的員工權力，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. But we are on our way, as our teams rise to the occasion. Our Q2 results are yet another proof point.

要先明確的是，我們還有工作要做，因為這種規模的轉變需要時間。但我們正在路上，我們的團隊會迎難而上。我們第二季的業績是另一個證明點。

And finally, I’d like to take a moment to recognize our global team for their dedication and hard work. They epitomize the very best of Gap Inc. as we continue our journey to unlock the full potential of this extraordinary portfolio. I’ll now turn the call to Katrina for a closer look at our financials

最後，我想花一點時間來表彰我們的全球團隊的奉獻精神和辛勤工作。它們是 Gap Inc. 最優秀的作品的縮影，我們將繼續探索這項非凡產品組合的全部潛力。我現在將打電話給卡崔娜颶風，詳細了解我們的財務狀況

Thank you, Richard and thanks everyone for joining us this afternoon. We are pleased to report second-quarter results ahead of our expectations with another quarter of positive sales growth and market share gains. 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.

謝謝理查德，也謝謝大家今天下午加入我們。我們很高興地報告第二季業績，超出了我們的預期，又一個季度實現了銷售正成長和市佔率成長。此外，我們仍然專注於圍繞利潤擴張、費用和庫存管理制定的紀律，並保持強勁的資產負債表，從而實現了營業利潤的進一步擴張和強勁的自由現金流。

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

正如理查德所提到的，我們所建立的嚴謹性正在成為我們營運方式的核心，並使我們能夠在轉型時表現出色。第二季的一些關鍵亮點包括：淨銷售額和可比銷售額分別成長 5% 和 3%，Old Navy 和 Gap 持續強勁，Banana Republic 銷售額穩定，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. This resulted in an operating margin of 7.9% for Q2, a 490-basis point improvement versus last year’s reported operating margin. 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.

我們實現了約 500 個基點的毛利率擴張，並管理了 SG&A 美元，大致符合我們的預期。這使得第二季的營業利潤率為 7.9%，比去年報告的營業利潤率提高了 490 個基點。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，今年迄今產生了近 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. 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.

我們在四個策略重點方面不斷取得的進展正在推動我們業績的一致性，並為實現長期股東價值奠定了堅實的基礎。我們業績的持續強勁使我們有信心重申 2024 財年的營收和 SG&A 前景，並與先前的預期相比提高了毛利率和營業收入成長的預期。

Turning to the detailed results for the quarter. Net sales of $3.7 billion increased 5% versus last year with comparable sales up 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.

轉向本季的詳細業績。淨銷售額為 37 億美元，比去年成長 5%，可比銷售額成長 3%。本季淨銷售額的成長得益於約 2 個百分點的增量收入，這是第二季特有的且與我們的信用卡協議結構相關。

Additionally, the quarter benefited from approximately 1 percentage point due to the weekly shift related to the 53rd week dynamic. By Brand, starting with Old Navy, net sales were $2.1 billion, up 8% versus last year, with comparable sales up 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.

此外，由於與第 53 週動態相關的每週變化，該季度受益於約 1 個百分點。按品牌劃分，從 Old Navy 開始，淨銷售額為 21 億美元，比去年增長 8%，可比銷售額增長 5%。這代表該品牌連續第四個季度取得積極業績，他們繼續注重營運嚴謹性和品牌復興，從而推動業績的一致性。

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

至於 Gap 品牌，淨銷售額為 7.66 億美元，比去年成長 1%，可比銷售額成長 3%。我們很高興地看到，在強勁的營銷和產品執行的推動下，最近的品牌復興努力在過去三個季度實現了積極的銷售業績。

Banana Republic net sales of $479 million were flat year over year, with comparable sales also flat. As Richard mentioned, we are working to re-establish Banana Republic and improve the fundamentals of the brand. While it is still early in the journey, we are pleased by the progress as the brand continues to focus on execution.

Banana Republic 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。正如理查德所提到的，我們正在努力重建香蕉共和國並改善品牌的基礎。雖然現在還處於起步階段，但我們對品牌繼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. 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. 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.

Athleta 淨銷售額為 3.38 億美元，比去年下降 1%。可比銷售額下降 4%，這符合我們的預期，因為該品牌度過了去年最後一次大幅折扣。隨著下半年與折扣相關的不利因素減少，並且隨著我們修復基本面而繼續取得進展，我們預計 Athleta 將在今年剩餘時間內恢復正值。

Now turning to gross margin in the quarter. Gross margin of 42.6% expanded 500 basis points versus last year’s gross margin. Merchandise margin expanded 410 basis points with the remaining 90 basis points from ROD leverage.

現在轉向本季的毛利率。毛利率為 42.6%，比去年的毛利率提高了 500 個基點。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. The remaining 240 basis points were driven by higher sales from the incremental credit card revenue and improved promotional activity.

商品利潤率的成長是由商品成本預計降低 170 個基點推動的，由於用於緩解供應鏈擁堵問題的航空貨運量增加，該成本略低於我們先前的預期。其餘 240 個基點的推動因素是信用卡收入增加和促銷活動改善帶來的銷售增加。

Now, let me turn to SG&A. SG&A was $1.3 billion in the quarter, roughly in line with our prior outlook. 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.

現在，讓我來談談SG&A。本季的 SG&A 為 13 億美元，大致符合我們先前的預期。 SG&A 佔淨銷售額的百分比為34.7%，與去年報告的比率相比去槓桿化了10 個基點，與去年調整後的比率相比去槓桿化了50 個基點，這主要是由於激勵性薪酬應計的時間安排。

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. 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.

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。本季每股收益為 0.54 美元，比去年報告的每股收益 0.32 美元增長 69%，比去年調整後的每股收益 0.34 美元增長 59%。

Now, turning to the balance sheet and cash flow. We maintained disciplined inventory management, ending Q2 with levels down 5% year over year. We remain confident that we will maintain this discipline in Q3 with inventory expected to be down low single digits versus last year. 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.

現在，轉向資產負債表和現金流量。我們保持嚴格的庫存管理，第二季末庫存水準年減 5%。我們仍然有信心在第三季度保持這一紀律，庫存預計將比去年下降到低個位數。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，比去年增長 59%。

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

年初至今，由於營業利潤增加，營業活動產生的淨現金為 5.79 億美元。我們的自由現金流是由更高的營業利潤推動的，今年迄今為止我們的自由現金流為 3.97 億美元，證明了我們在管理業務方面的嚴謹性。

We remain committed to delivering an attractive quarterly dividend as a core component of total shareholder returns. During the quarter, we paid a dividend of $0.15 per share. Year-to-date, we will have returned $112 million to shareholders in the form of dividends. On August 13, our Board approved maintaining that $0.15 dividend for the third 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。本季度，我們支付了每股 0.15 美元的股息。今年迄今為止，我們將以股息的形式向股東返還 1.12 億美元。 8 月 13 日，我們的董事會批准維持 2024 財年第三季 0.15 美元的股利。

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

當我回顧第二季的業績時，我對我們財務表現的一致性感到鼓舞，這得益於整個組織的持續關注、紀律和嚴謹。這種一致性開始讓我們走上成為高績效公司的道路。

Now, let me provide some details on our updated outlook. Starting with full year 2024. 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.

現在，讓我提供有關我們最新展望的一些詳細資訊。從2024 年全年開始。的預期。

Regarding fiscal 2024 revenue, we continue to expect full-year net sales to be up slightly year-over-year excluding the 53rd week. Our underlying assumptions related to the 53rd week, which I will describe in more detail in a moment remain unchanged.

關於 2024 財年收入，我們繼續預期全年淨銷售額（不包括第 53 週）將比去年小幅成長。我們對第 53 週的基本假設保持不變，我稍後將對此進行更詳細的描述。

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

儘管全球經濟環境和消費者動態仍然不穩定，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。我們對我們的團隊正在做的工作充滿信心，並專注於在後半段以卓越的方式執行，因為我們由於早期的重振努力而取得了更艱難的收入，特別是在老海軍。

As a reminder, 2024 is a 52-week year, but will be compared in total to a 53-week year in 2023. To reiterate, the loss of the 53rd week results in a detrimental impact of approximately $160 million to fiscal 2024 net sales. And I would like to provide more detail on the impact to the quarterly cadence of net sales in the year.

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。的不利影響。我想提供有關今年淨銷售額季度節奏影響的更多詳細資訊。

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 週損失相關的時間變化，2024 年第一季淨銷售額較去年同期成長約 2 個百分點，第二季淨銷售額較去年同期成長約 1 個百分點。

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

由於時間的變化，我們預計第三季也將受益約 1 個百分點。我們預計，由於時間變化以及第 53 週的損失，與去年相比，第四季的淨銷售額將產生約 7 個百分點或 3 億美元的負面影響。由於銷售量下降，我們也預期第四季 ROD 去槓桿化約為 1 個百分點。

Moving to gross margin. 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%. 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.

轉向毛利率。我們上調了預期，目前預計全年毛利率將比 2023 財年 38.8% 的毛利率增加約 200 個基點。我們的毛利率展望考慮了以下因素：我們繼續預計上半年大宗商品成本的推動因素將在下半年基本上變得中性，從而導致全年大宗商品成本帶來約 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. And we expect ROD as a percentage of sales to be relatively neutral on a year-over-year basis.

我們對庫存的嚴格管理和紀律預計將實現毛利率與去年相比的平衡成長。我們預期 ROD 佔銷售額的百分比與去年同期相比相對中性。

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. We are actively focused on cost efficiency. 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.

關於 SG&A 我們繼續預計全年 SG&A 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。我們積極關注成本效率。我們的 2024 年全年 SG&A 展望反映了我們在過去 18 個月中採取的大量節約行動，預計這些行動將導致支出同比下降並提高槓桿率，體現了我們對費用的關注和嚴謹。

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

儘管如此，我們承認我們的年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，以推動長期價值創造。與去年 6.06 億美元的調整後營業收入相比，我們將 2024 年全年營業收入成長預期上調至 50% 的中高成長範圍。這代表著隨著時間的推移，在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. We are pleased with trends quarter-to-date and are planning for net sales in Q3 to be up slightly versus last year. 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. As I mentioned, in the third quarter we expect SG&A to be approximately $1.3 billion.

現在，讓我分享一下我們對 2024 財年第三季的展望。由於與第三季毛利率相關，我們預計與去年 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。正如我所提到的，我們預計第三季的 SG&A 將約為 13 億美元。

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

最後，我們很高興又一個季度實現了強勁的財務業績。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，並為我們的股東提供長期價值。

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

這樣的轉變需要時間，我們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。至此，我們將開通提問專線。操作員？

Thank you. Ladies and gentlemen. I will now hand it over to Whitney Notaro before moving into the question-and-answer session

謝謝。女士們，先生們。在進入問答環節之前，我現在將其交給 Whitney Notaro

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

在我們開始問答之前，我想簡單地解決一下今天早上我們在網站上提前發布第二季度財務業績的問題，這是由於管理錯誤造成的。我們一看到錯誤就立即糾正並通知了紐約證券交易所。

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

我們盡快發布收益新聞稿，而不是等到市場收盤後才發布，以確保我們的業績廣泛傳播。接下來，我將把它交給理查德和卡特里娜來開始問答環節。

(Operator Instructions) Bob Drbul, Guggenheim.

（操作員說明）Bob Drbul，古根漢。

Hi, good afternoon. 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. So just an observation.

嗨，下午好。就在早上的發布中，即 8:30 電話會議的稍早一點，我認為對我們許多人來說都有效。所以只是一個觀察。

Two questions, if I could. The first one is, Richard, can you just talk to whether the momentum at Gap brand and Old Navy can continue? And then the second one is, can you guys address just back-to-school trends so far. Thank you very much.

如果可以的話，有兩個問題。第一個是，Richard，您能談談Gap品牌和Old Navy的勢頭能否持續嗎？第二個問題是，你們能談談到目前為止的返校趨勢嗎？非常感謝。

Yes. Thanks, Bob. First off, in general, we had another successful quarter. We exceeded our expectations, net sales up 5%. That's great growth, especially when you consider we're operating on 5% less inventory, 500 basis points of gross margin expansion. And we also expanded operating margin by 490 basis points.

是的。謝謝，鮑伯。首先，總的來說，我們又度過了一個成功的季度。我們超出了我們的預期，淨銷售額成長了 5%。這是巨大的成長，尤其是考慮到我們的庫存減少了 5%，毛利率擴大了 500 個基點。我們也將營業利益率擴大了 490 個基點。

Important to note also, this was our sixth consecutive quarter that we grew market share. So a real indication that customers are responding well to our brand reinvigoration efforts. As you ask Old Navy and Gap in particular, each of them posted quarterly positive comps. And it's a real demonstration of the continued consistency in the results that these brands are showing up with.

還需要注意的是，這是我們連續第六個季度實現市場份額成長。這確實表明客戶對我們的品牌振興努力反應良好。當你特別詢問 Old Navy 和 Gap 時，他們每個人都發布了積極的季度業績。這真實地證明了這些品牌所呈現的結果的持續一致性。

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

在 Old Navy 中，我們看到了女裝的特殊優勢，因為團隊真正專注於重申 Old Navy 風格的權威，而我們正在推動時尚。我們也看到牛仔布、洋裝、童裝和嬰兒等重要類別的廣泛優勢。

Our marketing is resonating much more clear on our pricing strategy. In-store navigation, there's certainly compelling storytelling. Team is doing a great job, executing with excellence and we are going to be continuing to deliver consistent results.

我們的行銷對我們的定價策略產生了更加清晰的共鳴。店內導航當然有引人入勝的故事敘述。團隊做得很好，執行力卓越，我們將繼續提供一致的結果。

As it relates to Gap, similar story. We're building on the success of our linen campaign that we really were incredibly excited about. This is about relentless repetition. You'll see that in our Get Loose campaign, which just launched last week.

至於 Gap，也有類似的故事。我們正在以亞麻布行銷活動的成功為基礎，對此我們感到非常興奮。這是關於無情的重複。您會在我們上週剛推出的「放鬆」活動中看到這一點。

We're declaring gap as the destination for the baggy and oversized trend. We've had terrific results from collaborations like Doen and Madhappy. Collaborations will also remain a key part of the strategy to broaden reach, strengthen relevance, and we'll be sharing more collaboration news shortly. But I'm very excited with the progress to date. Again, team is executing really well, and we're on our way to revitalizing this iconic brand.

我們宣布 Gap 成為寬鬆和超大趨勢的目的地。我們透過 Doen 和 Madhappy 等合作取得了出色的成果。合作也仍將是擴大影響力、增強相關性的策略的關鍵部分，我們很快就會分享更多合作新聞。但我對迄今為止的進展感到非常興奮。再說一次，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. Hopefully, you've seen the advertising that we have this year with some great product. Old Navy and Gap launched a great marketing campaign that was primarily grounded in our brand reintegration playbook.

鮑勃，你關於重返校園的問題，顯然我們現在正處於陣痛之中。希望您已經看到我們今年推出的一些出色產品的廣告。 Old Navy 和 Gap 發起了一場精彩的行銷活動，該活動主要以我們的品牌整合策略為基礎。

We are very pleased with early results. I would say denim is having a moment in kids as well as adult. Trends like loose fit, wide leg, fleece, classics, always, back-to-school cargo khakis are always in style. Most importantly, recognizing that Old Navy is the number one kids and baby brand in the US.

我們對早期結果感到非常滿意。我想說牛仔佈在兒童和成人中都佔有一席之地。寬鬆、寬腿、抓絨、經典、返校工裝卡其褲等潮流總是很流行。最重要的是，認識到 Old Navy 是美國第一大兒童和嬰兒品牌。

The overall market was up, about 5% in the quarter. And we gained share in both Old Navy and Gap. So I think we believe we have an opportunity to accelerate in the kids and baby space, become an even more important player. And you'll see that as quarters roll by.

整體市場上漲，本季上漲約 5%。我們還獲得了 Old Navy 和 Gap 的份額。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。隨著季度的過去，你會看到這一點。

But anyway, thank you for the question. Pretty comprehensive on Gap and Old Navy, and clearly, we're in the throes of back-to-school.

但無論如何，謝謝你的提問。對 Gap 和 Old Navy 的了解相當全面，顯然，我們正處於返校的陣痛之中。

Thank you.

謝謝。

Alex Straton, Morgan Stanley.

亞歷克斯‧斯特拉頓，摩根士丹利。

Great. Thanks a lot for taking the question. Congrats on a great quarter. Maybe one for Katrina and then one for Richard. So Katrina, I'm just trying to understand the third-quarter guidance on sales. Thing is just up slightly, which seems to be like a bit of a slowdown from the second quarter levels.

偉大的。非常感謝您提出問題。恭喜您度過了一個出色的季度。也許一張是給卡崔娜颶風的，然後一張是給理查的。卡崔娜颶風，我只是想了解第三季的銷售指導。情況只是略有上升，這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? And then just for Richard on that, let us return to positive comp growth for the rest of the year. Can you talk about where that brand is at and its transformation story, if you like, it's a big margin lever. So I'm just curious how you're feeling there. Thanks a lot.

您能否對橫幅指南的驅動因素以及您迄今為止所看到的內容進行一些說明？然後，就理查德而言，讓我們回到今年剩餘時間的正複合成長。你能談談該品牌的現狀及其轉型故事嗎？所以我只是好奇你在那裡感覺如何。多謝。

Yeah, sure. So I'll take the first one, Alex. I'm really glad you asked this. There's a few drivers. First of all, I would start by saying we're very confident in the brand reinvigoration work that we're doing. But we remain balanced in our view of the consumer as well as the macro-economic environment in which we operate. As we head into the second half of the year.

是的，當然。所以我會選第一個，亞歷克斯。我真的很高興你問這個問題。有幾個司機。首先，我首先要說的是，我們對我們正在進行的品牌復興工作非常有信心。但我們對消費者以及我們經營所在的宏觀經濟環境的看法保持平衡。當我們進入下半年時。

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

我想更具體地說，更詳細地說，只是提醒一下，我們確實從第二季的信用卡協議中經歷了約兩個百分點的增量銷售成長。其次，我們確實開始跑圈，特別是在老海軍第三節早期的重振努力中，我們取得了更好的表現。

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. So we'll see where that lands on.

第三，雖然我們預計將恢復正值，正如我們在 Athleta 所說的那樣，但第三季復甦的幅度會產生一系列結果。所以我們會看看它會落在哪裡。

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

然後，你知道，今年迄今為止，當你談到按品牌分類的評論時，我們看到了 Old Navy 和 Gap 的強勁表​​現。我認為正如我剛才所說，我們正在第三季進行一些重振努力。

Banana is focused on fixing the fundamentals. We talked about that. 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.

香蕉專注於修復基本面。我們討論過這個。我想我會讓理查德談談，當我們退出這個高度促銷的環境時，我們對 Athleta 的感受如何。

Yeah. Thanks, Alex. We're gaining much more confidence in Athleta. So our net sales in the quarter were down 1%, comps down 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.

是的。謝謝，亞歷克斯。我們對 Athleta 越來越有信心。因此，我們本季的淨銷售額下降了 1%，比較下降了 4%。但需要提醒的是，我們去年經歷了一段非常大幅折扣的時期，並且取得了許多良好的進展。

We've successfully broadened our consumer base. We're seeing much better sell-throughs at full price. Our marketing, which has been totally refreshed is gaining traction. And most importantly, our fashion product is resonating. 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.

我們已經成功地擴大了我們的消費者基礎。我們看到全價的銷售量要好得多。我們的行銷方式已經完全煥然一新，正在獲得越來越多的關注。最重要的是，我們的時尚產品引起了共鳴。鑑於我們在新產品上取得的成功，特別是我們一直在做的核心底部和限量版下降，我們現在預計在今年剩餘時間裡會看到積極的比較。

The team has been focused on resetting the brand and setting the brand up for sustainable growth in the long term. And we're very excited about the progress and the future of the brand.

該團隊一直致力於重塑品牌並為品牌的長期永續成長奠定基礎。我們對該品牌的進步和未來感到非常興奮。

Thanks a lot.

多謝。

Matthew Boss, JPMorgan.

馬修‧博斯，摩根大通。

Great, thanks. 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?

太好了，謝謝。理查德，關於您的目標一致性，您能否詳細說明您在老海軍的銷售和營銷方面所做的結構性變化，以及您認為在下半年和明年推動可持續利潤增長的差距？

Thanks, Matt. I wouldn't focus our our answer to that on our strategic priorities. We have been incredibly disciplined in maintaining focus around our four strategic priorities. And the execution of that, I believe is really showing up in the metrics that matter. 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.

謝謝，馬特。我不會將我們的答案集中在我們的策略優先事項上。我們在保持對四個策略重點的關注方面非常自律。我相信，這一點的執行確實體現在重要的指標上。正如我在開場白中所說，保持財務和營運的嚴謹性確實正在成為我們的工作方式、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. That is really enabling the second priority, which is reinvigorating our brands.

再說一遍，正如您所看到的，我們在本季度所取得的持續表現，這實際上是由於我們如何採用更嚴格的流程來工作。這確實實現了第二要務，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. Our two biggest brands, which we've noted Old Navy and Gap are furthest along, multiple quarters of positive comps and market share gains. And I'm encouraged, as I've said, with the improvements that we're making on Banana and Athleta.

我們已經談了很多關於我們的策略，並最終推動相關性和收入，從而成為真正塑造文化的高績效標誌性品牌之家。我們注意到，Old Navy 和 Gap 是我們兩個最大的品牌，發展最為領先，多個季度的業績和市場份額均呈正增長。正如我所說，我們對 Banana 和 Athleta 所做的改進讓我深受鼓舞。

The third piece strengthening our platform. We've talked a lot about the greater value of our capabilities and leverage that we have to drive individual brand growth. Of particular note, I mentioned our new media partner, 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. Those examples will start to really show up in the second half.

第三部分加強我們的平台。我們已經談論了很多我們的能力和槓桿的更大價值，我們必須推動個人品牌的成長。特別值得注意的是，我提到了我們的新媒體合作夥伴宏盟。這將有助於我們真正提高效率和效果，並擴大這些品牌敘事，並成為我們推動更多文化相關對話和更具創新媒體組合的策略差異化因素。這些例子將在下半年開始真正顯現出來。

And then the last piece I'd talk about is our culture. 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. They're really the gateway to the pursuit of our vision and also ultimately, really driving better work.

我要談的最後一點是我們的文化。我們在整個組織中看到了非常強烈的跡象，特別是在我們最近的員工調查中，與去年相比，調查的參與度幾乎是去年的兩倍，我經常談論我們的員工和人才。它們確實是我們追求願景的門戶，並且最終真正推動了更好的工作。

And we're working as a company around new values, new vision, new mission. We've been added with precision new talent. There's extraordinary talent within the company. And together, that mix is really driving executing with excellence. So all in all, I'm very pleased with the progress. We have a lot more work to do, but teams are really focused on executing. And certainly this quarter shows up on the scoreboard.

作為一家公司，我們正在圍繞新價值觀、新願景、新使命開展工作。我們已經增加了精確的新人才。公司內部人才輩出。總而言之，這種組合確實推動了卓越的執行。總而言之，我對進展感到非常滿意。我們還有很多工作要做，但團隊確實專注於執行。當然，這個季度也出現在記分板上。

That's great. 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?

那太棒了。也許卡崔娜颶風在這一點上，您能否詳細說明整個費用結構中潛在效率的進一步領域，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. 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. We've actioned about $550 million in cost reductions. 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. And that's all despite higher incentive compensation accruals.

是的，謝謝你提出這個問題。因此，在過去兩年或過去兩年裡，我們確實致力於提高財務嚴謹性，正如我們所討論的那樣。我們已經採取了約 5.5 億美元的成本削減行動。我們知道，我們今年指導的 51 億美元 SG&A 確實反映了名義美元低於去年，並且正在槓桿化。儘管應計激勵薪酬更高，但這仍然是全部。

So we're pleased with the progress. But as you say, we do realize that SG&A as a percentage is still high. And we believe our cost structure can become more efficient. So we're deeply engaged in identifying the next phase of savings to drive value creation over the long term. So we'll look forward to getting back to you when we have a more articulated plan. But we are deeply focused on efficiencies for the future.

所以我們對進展感到滿意。但正如您所說，我們確實意識到 SG&A 的百分比仍然很高。我們相信我們的成本結構可以變得更有效率。因此，我們正在深入研究下一階段的節約措施，以推動長期價值創造。因此，當我們有更明確的計劃時，我們會期待與您聯繫。但我們非常關注未來的效率。

Thank you.

謝謝。

Ike Boruchow, Wells Fargo.

艾克·博魯喬（Ike Boruchow），富國銀行。

Congrats. I'll take Bob's question. 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. 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? And do you expect the company to continue to comp positively as we get into the back half.

恭喜。我來回答鮑伯的問題。請詳細說明一下，因為我知道船隻就在那裡，但很難說清楚。但是理查德，你能具體說一下，現在你有更艱難的比較，特別是在老海軍，你希望老海軍繼續積極地進行比較嗎？當我們進入下半年時，您是否期望公司繼續積極地競爭？

And then a follow up question for Katrina. 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. What exactly is going on the occupancy line that you guys have done to create a more leverageable model and how sustainable is that?

然後是卡崔娜颶風的後續問題。就在 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升，但 ROD 美元正在下降，您獲得了良好的槓桿作用。為了創造更具槓桿作用的模型，你們在入住線上到底做了什麼？

Yeah. So I'm happy to talk more specifically to the comp in the back half. So we did guide to sales in the Q3 timeframe up slightly. What I would say in general is, I would think about a spread that is sort of relatively neutral. So we'll let you do the math on whether or not that means positive comps.

是的。所以我很高興能更具體地談論下半場的比賽。因此，我們確實對第三季的銷售指導略有上升。一般來說，我想說的是，我會考慮相對中性的價差。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. And I think as Richard said, there's lots of really exciting things happening from a product and marketing standpoint. As we head into the back half, they've been most consistent in their performance. So we'll see where that lands us, but we feel very good about those two brands.

但特別是 Old Navy 和 GAAP，我們對品牌復興過程中的進展感到非常滿意。我認為正如理查德所說，從產品和行銷的角度來看，發生了很多令人興奮的事情。當我們進入後半場時，他們的表現最穩定。所以我們會看看這會帶來什麼結果，但我們對這兩個品牌感覺非常好。

As it relates to ROD, right now, ROD leverages on about flat to modestly positive sales growth. 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. 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. So that's been a real benefit.

由於與 ROD 相關，目前，ROD 的銷售成長大致持平至適度正成長。如您所知，我們在商店業務方面做了很多工作，在疫情期間我們關閉了 350 多家商店，主要是在 Gap。這使我們在這方面擁有更大的靈活性，不僅可以節省租金和入住費用，還可以利用較低的銷售額。所以這是一個真正的好處。

Lorraine Hutchinson, Bank of America Global Research.

洛林‧哈欽森 (Lorraine Hutchinson)，美國銀行全球研究部。

Thank you. Good afternoon.

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

我只想（技術難度）Old Navy 談談盈利能力，您認為 Old Navy 提高利潤率的最大機會在哪裡？這是您在提高一致性方面的一次性主要目標嗎？

I'll start and Richard can pile on. 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. So we're focused on driving profitability across our portfolio.

我先開始，理查德可以接著說。我認為總的來說，我們在整個公司範圍內圍繞庫存管理、擴大毛利率、對SG&A 持謹慎態度以及整體不斷增長的營業利潤所採取的嚴格措施，我認為正在引導我們影響我們所有的品牌。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. 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. And so we feel very good that we've made a lot of progress around gross margins for the company. 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.

顯然，Old Navy 作為產品組合中最大的品牌，在這段旅程中非常重要。我認為總的來說，當你審視公司並考慮我們提出的指導時，我們今年的毛利率正在接近歷史高點。因此，我們對公司毛利率方面取得了巨大進展感到非常高興。我想我們剛才討論的更大焦點實際上是將我們的注意力轉向圍繞公司費用結構可以做的進一步工作。

Yeah, Lorraine, I'll just add, we're running a fundamentally stronger business. And obviously, the metrics that we're posting are indicative of the efforts that we've been making. But of particular note, we're driving a 5% net sales growth on 5% less inventory. We've been working on our inventory and inventory management for quite some time. The composition that we have is much stronger.

是的，洛林，我只想補充一點，我們正在經營一個從根本上更強大的業務。顯然，我們發布的指標表明了我們一直在做出的努力。但值得注意的是，我們在庫存減少 5% 的情況下實現了 5% 的淨銷售額成長。我們在庫存和庫存管理方面的工作已經有一段時間了。我們擁有的成分要強大得多。

We have better product, better sell-through in general at full price and therefore less discounting and obviously, the impact on margin is there. As we continue to drive consistent deliverables on Old Navy GAAP and across our portfolio, we expect that type of rigor to remain consistent.

我們有更好的產品，整體上全價銷售更好，因此折扣更少，顯然，對利潤率的影響是存在的。隨著我們繼續在 Old Navy GAAP 和整個產品組合中推動一致的交付成果，我們預計這種嚴格性將保持一致。

It is our fourth consecutive quarter of positive comps for Old Navy. It's the sixth consecutive quarter of market share gains as well for Old Navy and for the company. Again, as a reminder, it's also the seventh consecutive quarter of women's gained share in GAAP. So consistently doing what we say we're going to do. Driving leaner, more inventory that is precise and better storytelling, and we're getting that resonance with consumers.

這是我們連續第四個季度為 Old Navy 帶來正面的回報。這也是 Old Navy 和該公司的市佔率連續第六個季度成長。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長。因此，始終如一地做我們說要做的事。推動更精簡、更多的庫存、更精確和更好的故事敘述，我們正在引起消費者的共鳴。

thank you.

謝謝。

Thank you.

謝謝。

Adrienne Yih, Barclays.

艾德麗安‧易 (Adrienne Yih)，巴克萊銀行。

Great. Thank you and congratulations on the progress. Richard, I can appreciate very much the market share gains at the Gap brand. 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?

偉大的。謝謝並祝賀取得的進展。理查德，我非常欣賞 Gap 品牌市佔率的成長。我想知道在與該公司合作一年多後，您能否談談 GAP 的核心目標人群和核心市場的描述，因為他們覺得這是一個可能發生了一些變化的品牌過去十年？

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. I think you said 240 basis points to the merch margin. So should we just net -- should we take that out of the operating margin and think about it that way for an adjusted basis? Thank you.

其次，卡崔娜颶風，請澄清一下信用卡收入的一次性收益，也就是您所說的銷售額的 2 個百分點。我想你說的是 240 個基點的商品利潤。那麼，我們是否應該只考慮淨值——我們是否應該將其從營業利潤率中剔除，並以這種方式考慮調整後的基礎？謝謝。

Thanks, Adrian, for the question. And in particular on the Gap brand, which we're so proud of the progress is that we've made. And as I mentioned, I really do believe we're well on our way to revitalizing this iconic American brand.

謝謝阿德里安提出的問題。尤其是 Gap 品牌，我們為我們所取得的進步感到非常自豪。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. We just celebrated our 55th anniversary. And I think in the context of what that represents, it's a multi-generational brand. And we've been focusing on returning to our roots as a pop-culture brand.

同樣重要的是要注意該品牌已有 55 年歷史或還很年輕。我們剛剛慶祝了我們的 55 週年紀念日。我認為就其所代表的意義而言，它是一個跨代品牌。我們一直致力於回歸流行文化品牌的根源。

And so trend-right products and creative expression that is supported by big ideas and culturally relevant messaging. It's less about age and more about brand persona and brand identity. And I've been really pleased that the brand has delivered these consistent results in the quarter.

因此，潮流產品和創意表達是由偉大創意和文化相關訊息所支持的。這與年齡無關，而是與品牌形象和品牌形像有關。我非常高興該品牌在本季度取得了這些一致的業績。

Net sales, up 1%, comps up 3%, gaining market share for the fifth consecutive quarter across women's, men's, kids and baby. These are real indications that we're starting to get it right. 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.

淨銷售額成長 1%，年增 3%，連續第五個季度提高女裝、男裝、兒童和嬰兒裝的市場份額。這些都是我們開始做對的真實跡象。我們的 Get Loose 活動剛剛在上週推出，它是 Gap 的宣言——作為潮流的目的地——寬鬆和超大的趨勢。

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. As mentioned, again, the collaborations, Doen and Madhappy, it's a key part of our brand strategy. It's broadening our reach, strengthening our cultural relevance. It's opening up consideration for generations that might not have considered Gap.

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利用這個品牌及其傳統走向何方感到非常興奮。如同前面所提到的，Doen 和 Madhappy 的合作是我們品牌策略的關鍵部分。它擴大了我們的影響力，增強了我們的文化相關性。它為那些可能沒有考慮過 Gap 的幾代人打開了考慮的大門。

So it's a multi-tiered approach. I'm very confident in how the progress is delivering to date. And there's a lot more to share in the future.

所以這是一種多層次的方法。我對迄今為止所取得的進展非常有信心。未來還有更多內容可以分享。

Thank you. Super helpful.

謝謝。超有幫助。

As it relates to the credit card benefit, yeah, it was about two points to net sales year over year. And that was driven by incremental revenue related to the credit card agreement. 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. So it is unique to the quarter.

由於它與信用卡福利有關，是的，與去年同期相比，淨銷售額大約增加了兩個百分點。這是由與信用卡協議相關的增量收入所推動的。基本上，我們信用卡協議安排中的合約條款影響了我們確認某些收入的時間。所以它是本季獨有的。

As it relates to the margin piece, however, we did break down the merch margin into 410 basis points of benefit. We said 170 was commodities and 240 is actually about half credit card dynamic and the other half is actually better promotional performance. So I wouldn't take all of that to point out. You can use about half as an example to adjust for that one-time benefit.

然而，由於它與利潤部分相關，我們確實將商品利潤細分為 410 個基點的收益。我們說170是商品，240其實大約一半是信用卡動態，另一半其實是更好的促銷表現。所以我不會把所有這些都指出來。您可以使用大約一半作為範例來調整一次性收益。

Super. Okay. Thank you so much. I appreciate it.

極好的。好的。太感謝了。我很感激。

Thanks, Adrian.

謝謝，阿德里安。

Mark Altschwager, Baird.

馬克·阿爾茨瓦格，貝爾德。

Good afternoon. Thank you for taking my question on. So we look across the apparel space here. 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.

午安.感謝您回答我的問題。因此，我們縱觀這裡的服裝領域。在過去的幾個月裡，我們已經看到了幾個例子，說明價值如何在這種背景下真正與消費者分享，老海軍顯然以在那裡的價值定位而聞名。

So just wondering if you could just sort of speak to your opportunity to lean into that over holiday with their marketing messaging? And just also what are your expectations more broadly for the promotional backdrop for the holiday season? Thank you.

所以只是想知道你是否可以透過他們的行銷訊息來談談你在假期期間利用這一點的機會？您對假期季節的促銷背景有什麼更廣泛的期望？謝謝。

Thanks, Mark. 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. And as always, our job is to create the interest in demand and capture consumers' attention. And we've been really encouraged specifically to see growth across all income cohorts.

謝謝，馬克。就我們而言，我們還沒有看到任何值得做出任何改變或影響我們今年前景的新因素。一如既往，我們的工作是創造需求興趣並吸引消費者的注意。看到所有收入群體的成長，我們感到非常鼓舞。

That's really a reflection of the strong value proposition across all our brands, not just Old Navy. Traffic remained similar to last year. And our strength in the quarter has really been driven by the average transaction as customers are responding really well to our products.

這確實反映了我們所有品牌的強大價值主張，而不僅僅是 Old Navy。客流量與去年持平。我們本季的實力實際上是由平均交易量推動的，因為客戶對我們的產品反應非常好。

And customers react to newness, innovation, and great storytelling. The apparel market, as you know, is down 2% in the quarter. And Gap Inc and our brands gained share. And it was strength in categories such as denim, active, and kids, and baby, which have been strategically really well intended. And it indicates that our reinvigoration is resonating with consumers.

客戶會對新穎、創新和精彩的故事敘述做出反應。如您所知，服裝市場本季下降了 2%。 Gap Inc 和我們的品牌獲得了市場份額。這是牛仔布、運動服、兒童和嬰兒等類別的優勢，這些類別的策略意圖非常好。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. Customers are continuing to have positive response when they're offered the right price, at the right style, at the right value equation. Our portfolio, we believe, is really well positioned and particularly with Old Navy as the largest brand in the value space. And so there is a flight to value. Old Navy is there with a welcome map.

關於降價交易的討論，我們不一定看到降價交易的證據。當客戶以合適的價格、合適的款式和合適的價值等式獲得時，他們會繼續得到正面的回應。我們相信，我們的產品組合確實處於有利位置，特別是 Old Navy 作為價值領域最大的品牌。因此，人們開始追求價值。老海軍拿著一張歡迎地圖。

Thank you.

謝謝。

Thank you.

謝謝。

Jonna Kim TD Cowen.

喬納森·金·TD·考恩。

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

謝謝您提出我的問題，我希望能更了解您現在的促銷策略在結構上與以前有何不同。與我們的商品利潤相關的是，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？非常感謝。

Yes, sure. So I think as we think about what's happening in the industry overall, it appears the industry is controlling inventories well. And generally, that helps make for a more rational promotional environment. I think more particularly to us, our inventory is well controlled, and we're very focused on executing our reinvigoration playbook.

是的，當然。因此，我認為，當我們思考整個行業正在發生的事情時，該行業似乎控制庫存得很好。一般來說，這有助於創造一個更合理的促銷環境。我認為對我們來說更特別的是，我們的庫存控制得很好，而且我們非常專注於執行我們的重振策略。

Again, as we think about the second quarter, we had very strong beat in gross margin, a portion of that driven by commodities. And as we just talked about a portion of that driven by the credit card activity, but also by better performance in gross margin.

同樣，當我們考慮第二季時，我們的毛利率非常強勁，其中一部分是由大宗商品推動的。正如我們剛才談到的，其中一部分是由信用卡活動推動的，但也受到更好的毛利率表現的推動。

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. 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.

當我們考慮公司今年迄今的業績時，由於商品成本的強勁復甦以及更好的庫存管理，我們的整體毛利率提高了約 450 個基點。因此，我們對在控制庫存、提供更好的品種以及真正減少促銷量方面所取得的進展感到非常滿意。

I think in addition to that, we see continued benefits heading into Q3. 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. And we attributed that upside to really improved promotional activity as we head into third quarter.

我認為除此之外，我們還看到第三季將繼續受益。我們剛剛提供了一個前景，顯示了圍繞利潤率的一系列可能結果，利潤率可能會在 50 到 75 個基點範圍內增長。我們將這一優勢歸因於進入第三季時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. And we now expect gross margins to be up about 200 basis points year over year. 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.

因此，當你考慮上半年的業績和我們上調第三季的預期時，我們實際上再次上調了全年毛利率的預期。我們現在預計毛利率將年增約 200 個基點。因此，我認為，所有這些都反映了我們在庫存管理方面的嚴格性，以及品牌為透過出色的行銷提供物超所值的優質產品所做的振興工作。

Thank you.

謝謝。

Corey Tarlowe, Jefferies.

科里·塔洛，杰弗里斯。

Great. Thanks. Good afternoon and thank you for taking the question. I wanted to ask about the right way to think about what the potential EBIT margin or profile of the business could be. 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%. So curious to hear how you think about the additional levers that you can pull to drive higher EBIT margins sustainably for longer?

偉大的。謝謝。下午好，感謝您提出問題。我想問一下思考潛在息稅前利潤或業務概況的正確方法。有鑑於此，我認為這是 Gap 財年上半年的平均毛利率在很長一段時間內首次超過 41%。很想知道您如何看待可以利用額外的槓桿來長期持續地提高息稅前利潤率？

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. 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.

首先，我認為我們每個季度都以一致的交付成果證明我們做到了我們所說的要做的事情。特別是本季是一個真正的成功故事，毛利率擴大了 500 個基點，當然，我們的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. And we expect to expand roughly 200 basis points year over year for '24. And that will result in EBIT growth in the mid to high 50% range.

我們對收入和銷售管理費用保持不變，並提高了對更高毛利率前景的指導。我們預計 24 年將年增約 200 個基點。這將導致息稅前利潤 (EBIT) 成長 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. And we'll be getting back to you as to the targeted ways that we're going to continue to drive efficiencies and effectiveness. 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.

隨著我們繼續長期履行我們的優先事項，我們正在實施多項舉措，特別是在這種費用結構方面。我們將回覆您，告知我們將繼續提高效率和有效性的有針對性的方法。當我們繼續兌現我們所說的我們將兌現的承諾；我們看到該產品組合能夠為公司提供歷史參考並最終開啟新的成長篇章。

Got it. And then just Katrina as a follow-up to that. What's a comfortable level of cash for Gap Inc. going forward?

知道了。然後卡崔娜颶風作為後續行動。 Gap Inc. 未來的舒適現金水準是多少？

Yeah. 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. And so that certainly feels good. 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.

是的。嗯，首先，我想說我們對資產負債表的健康狀況非常滿意。 21 億美元的現金較去年同期大幅成長。所以這肯定感覺很好。我認為最低現金餘額在 12 億美元範圍內，這為我們提供了一個水平，確保我們有現金來應對我們的營運資本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. And this year we've said we're spending about $500 million in capital.

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，我們透過資本投資業務，達到我們認為可以獲得良好回報的程度。今年我們表示將花費約 5 億美元的資本。

Second, we believe in paying an attractive dividend as a key component of shareholder returns. And we have paid out about $112 million so far year to date. And we just approved another $0.15 a share dividend in third quarter. So I think so far, we feel very good about the way we've been managing the balance sheet. And all of that -- management this year so far has given us about $400 million of free cash flow. So hopefully that's helpful.

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。今年迄今為止，我們已支付了約 1.12 億美元。我們剛剛批准第三季再派發每股 0.15 美元的股息。所以我認為到目前為止，我們對管理資產負債表的方式感覺非常好。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。希望這對您有所幫助。

Thank you very much and best of luck.

非常感謝您，祝您好運。

Dana Telsey, Telsey Advisory Group.

達納‧特爾西，特爾西諮詢小組。

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

大家下午好，很高興看到進展，理查德，我去過蘇豪區新香蕉共和國和世紀城你們剛開業的商店。當然，實體店的足跡對於您正在開發的產品的新增強功能非常重要。

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

您如何看待過去的零售車隊？本來以為老海軍也會深入一些農村地區，請問各師的艦隊改造情況如何，規模縮小了，下一步將走向何方？謝謝。

Thank you, Dana. I really appreciate you visiting our SoHo store and Century City. We're really proud of those expressions. And I think SoHo and Century are great examples of immersive experiences that we're trying to create. It certainly has a new aesthetic, which we believe again has the right elements for the new direction that we're taking. And we're planning to roll out similar elements inspired by those two doors with the rest of the fleet.

謝謝你，達納。非常感謝您光臨我們的 SoHo 商店和世紀城。我們對這些表達方式感到非常自豪。我認為 SoHo 和 Century 是我們試圖創造的沉浸式體驗的絕佳例子。它確實具有新的美學，我們相信它再次為我們正在採取的新方向提供了正確的元素。我們計劃在車隊的其他產品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. 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. 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.

由於它與整個零售店有關，如果您願意優化我們的零售足跡，我們正處於研究階段。我們正在做大量工作來了解生產力、商店體驗、客流量以及您可以想像到的我們擁有的車隊和存在的所有變數。我們非常相信零售業以及實體和數位化全通路體驗的平衡以及兩者之間的連結。

But we have work to do. 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. Each one of our brand leaders is paying incredible attention to the store experience, the service levels, the aesthetics, the sites, the sound. These are all really important part of our consumer journey and the reinvigoration of our brands. 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. And we'll be sharing a lot more of that in the quarters to come.

但我們還有工作要做。我們在整個車隊中還有很多工作要做，以確保這些商店反映出我們一直在努力的品牌復興。我們的每位品牌領導者都非常注重商店體驗、服務水平、美學、場地和聲音。這些都是我們的消費者旅程和品牌復興的非常重要的一部分。因此，雖然我們取得了進展，我們的一些商店已經有了一些很好的跡象，但我們確實還有很多工作要做。我們將在接下來的幾季分享更多內容。

Thank you.

謝謝。

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

謝謝。我們的問答環節結束了。我們的電話會議到此結束。您現在可以斷開連線。