蓋璞 (GPS) 2021 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen. My name is Justin, and I will be your conference operator today. At this time, I would like to welcome everyone to The Gap Inc.'s Third Quarter 2021 Earnings Conference Call. (Operator Instructions)

下午好，女士們，先生們。我的名字是賈斯汀，今天我將成為您的會議接線員。在這個時候，我想歡迎大家參加 The Gap Inc. 的 2021 年第三季度收益電話會議。 （操作員說明）

I would now like to introduce your host, Joe Scheeline, Head of Corporate Finance and Investor Relations.

現在，我想介紹一下您的主持人，企業財務和投資者關係主管喬·舍林 (Joe Scheeline)。

Good afternoon, everyone. Welcome to The Gap Inc.'s Third Quarter 2021 Earnings Conference Call. Before we begin, I'd like to remind you that the information made available on this webcast and conference call contains forward-looking statements. For information on factors that could cause our actual results to differ materially from any forward-looking statements as well as the description and reconciliation of any financial measures not consistent with generally accepted accounting principles, please refer to Page 2 of the slides shown on the Investors section of our website, gapinc.com, which supplement today's remarks, as well as today's earnings release, the company's annual report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2021, and any subsequent filings with the Securities and Exchange Commission, all of which are available on gapinc.com. These forward-looking statements are based on information as of today, November 23, 2021, and we assume no obligation to publicly update or revise our forward-looking statements.

大家下午好。歡迎參加 The Gap Inc. 的 2021 年第三季度收益電話會議。在我們開始之前，我想提醒您，本次網絡廣播和電話會議上提供的信息包含前瞻性陳述。有關可能導致我們的實際結果與任何前瞻性陳述存在重大差異的因素的信息，以及任何不符合公認會計原則的財務措施的描述和調節，請參閱投資者幻燈片中的第 2 頁我們網站 gapinc.com 的部分，它補充了今天的評論以及今天的收益發布、公司於 2021 年 3 月 16 日向美國證券交易委員會提交的 10-K 表格年度報告，以及隨後向證券交易委員會提交的任何文件和交易委員會，所有這些都可以在 gapinc.com 上找到。這些前瞻性陳述基於截至 2021 年 11 月 23 日的信息，我們不承擔公開更新或修改我們的前瞻性陳述的義務。

Joining me on the call today are Chief Executive Officer, Sonia Syngal; and Chief Financial Officer, Katrina O'Connell.

今天和我一起參加電話會議的是首席執行官 Sonia Syngal；和首席財務官，卡特里娜奧康奈爾。

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

有了這個，我會把電話轉給索尼婭。

Thank you, Joe, and good afternoon, everyone. Thanks for joining us today. As I reflect on the last 18 months, I'm inspired by the incredible transformation our teams have made in such a short time, despite an ongoing pandemic-related disruption to our business and the broader economy.

謝謝你，喬，大家下午好。感謝您今天加入我們。當我回顧過去 18 個月時，我們的團隊在如此短的時間內做出了令人難以置信的轉變，這讓我深受鼓舞，儘管與大流行相關的疫情對我們的業務和更廣泛的經濟造成了持續的破壞。

Coming off record sales performance in Q2, we had accelerated momentum heading into the back half before facing disruption to our supply chain, driven by the 2.5 month closure of our top manufacturing country, Vietnam, as well as port congestion, both of which affected our ability to fully meet strong customer demand. While we had planned into the known supply chain constraints as we entered the quarter, including COVID-related closures in Vietnam, the shock to our business persisted longer than anticipated as weeks turned into months. We have been all hands on deck to address these headwinds and the resulting impact on our business, proactively navigating holiday and beyond, ensuring that the customer is at the center of every decision we make.

在第二季度打破創紀錄的銷售業績後，由於我們的主要製造國越南關閉了 2.5 個月以及港口擁堵，我們在面臨供應鏈中斷之前加速了進入後半段的勢頭，這兩者都影響了我們的能夠充分滿足強大的客戶需求。雖然我們在進入本季度時已計劃應對已知的供應鏈限制，包括在越南與 COVID 相關的關閉，但隨著數週變成數月，對我們業務的衝擊持續時間比預期的要長。我們一直在全力以赴應對這些不利因素及其對我們業務的影響，積極應對假期及以後，確保客戶處於我們做出的每一個決定的中心。

To secure our supply and meet the needs of our customers, we chose air freight over ocean vessels for a significant portion of our assortment, taking on extreme transitory costs. We're disappointed in the short-term impact on earnings, but we made the choice to invest in our customer promise and build loyalty that will help sustain growth over the long term. Katrina will go into greater detail on our mitigation efforts later.

為了確保我們的供應並滿足客戶的需求，我們選擇了空運而不是海運來處理我們的大部分商品，承擔了極高的臨時成本。我們對收益的短期影響感到失望，但我們選擇投資於我們的客戶承諾並建立忠誠度，這將有助於維持長期增長。卡特里娜颶風稍後將詳細介紹我們的緩解措施。

Overall, we continue to believe the scale of our supply chain is a material advantage. We have deep relationships with our manufacturers across multiple countries of origin optimized for cost, speed and expertise. And we have strong transportation partners offering speed advantage and industry-leading rates. That said, learnings from this crisis will not go to waste. We're using them as an opportunity to accelerate digitization efforts that were already underway across our product-to-market process.

總體而言，我們仍然相信我們的供應鏈規模是一種物質優勢。我們與多個原產國的製造商建立了深厚的關係，並針對成本、速度和專業知識進行了優化。我們擁有強大的運輸合作夥伴，提供速度優勢和行業領先的價格。也就是說，從這場危機中吸取的教訓不會白費。我們正在利用它們作為加速我們產品到市場流程中已經在進行的數字化工作的機會。

There was a sizable increase in the enterprise clock speed on transformative initiatives as we combated the current crisis with an eye on a better future faster. For example, we're adding supply chain capabilities that will allow us to better anticipate the unexpected. We've made significant progress digitizing core operating processes with a targeted focus on inventory management, loyalty and personalization. And we're transforming product creation by using digital tools to unlock speed and efficiency. All this work will pay forward in 2022 and beyond. These near-term pressures have not distracted us from our core strategy.

隨著我們應對當前危機並著眼於更快地創造更美好的未來，企業在變革舉措上的時鐘速度有了相當大的提高。例如，我們正在增加供應鏈功能，使我們能夠更好地預測意外情況。我們在核心運營流程數字化方面取得了重大進展，重點關注庫存管理、忠誠度和個性化。我們正在通過使用數字工具來釋放速度和效率來改變產品創造。所有這些工作將在 2022 年及以後得到回報。這些近期壓力並沒有分散我們對核心戰略的注意力。

We have an acute focus on what really matters, our unique ownable assets. It's because of the simple consumable and executable strategy we shared in October of last year, our Power Plan 2023, The Gap Inc. is in a stronger, more resilient position today than we were entering this fiscal year. Even in the face of current headwinds, I'm confident this is true. Our brands are healthy, demand for our product is strong, and we have pricing power with average unit retail contributing to the highest gross margins in over a decade.

我們非常關注真正重要的東西，即我們獨特的可擁有資產。這是因為我們在去年 10 月共享的簡單易耗且可執行的戰略，即我們的 2023 年電力計劃，The Gap Inc. 今天比我們進入本財年時處於更強大、更有彈性的地位。即使面對當前的逆風，我相信這是真的。我們的品牌健康，對我們產品的需求強勁，我們擁有定價能力，平均單位零售額貢獻了十多年來最高的毛利率。

We are becoming digitally-led. Online sales grew 48% in the quarter compared to 2019, representing 38% of total sales, and our migration to the cloud has unlocked innovation in our tech portfolio. We will strategically shed an estimated $1 billion in sales by year-end versus 2019 by closing unproductive stores, divesting smaller brands and partnering our European business to drive focus and profitability.

我們正在變得以數字為主導。與 2019 年相比，本季度的在線銷售額增長了 48%，佔總銷售額的 38%，我們向雲的遷移開啟了我們技術組合的創新。與 2019 年相比，與 2019 年相比，我們將戰略性地減少約 10 億美元的銷售額，方法是關閉低效的商店、剝離較小的品牌並與我們的歐洲業務合作以推動重點和盈利能力。

Nearly 3/4 of active customers are loyalty shoppers, and they are spending twice as much as nonloyalty customers. And we have fortified our strong balance sheet by restructuring long-term debt, allowing us to invest for growth, while continuing to return cash to shareholders. To our team and partners around the world, thank you. I have watched you navigate, persevere and accelerate through these near-term challenges while executing our long-term strategy. Despite the supply chain disruption, comp sales were up 5% on a 2-year basis, with 3 of our 4 brands delivering positive 2-year comps.

近 3/4 的活躍客戶是忠誠購物者，他們的消費是非忠誠客戶的兩倍。我們通過重組長期債務加強了我們強大的資產負債表，使我們能夠為增長而投資，同時繼續向股東返還現金。感謝我們在世界各地的團隊和合作夥伴。我見證了您在執行我們的長期戰略的同時，在這些近期挑戰中導航、堅持和加速。儘管供應鏈中斷，comp 銷售額在 2 年的基礎上增長了 5%，我們的 4 個品牌中有 3 個提供了正的 2 年comps。

Net sales were down 1% to 2019, which includes an estimated 8% point impact due to supply chain headwinds. Our strategy is on track and is working. Let me walk you through how our Power Plan came to life in Q3. Starting with the power of our brands. Each of our billion-dollar brands is finding new and relevant ways to expand reach and cut through to the consumer. This is driving an increase in brand power and a decrease in discounting.

到 2019 年，淨銷售額下降了 1%，其中包括由於供應鏈逆風而造成的估計 8% 的影響。我們的戰略步入正軌並且正在奏效。讓我帶您了解我們的電源計劃是如何在第三季度實現的。從我們品牌的力量開始。我們每個價值數十億美元的品牌都在尋找新的相關方法來擴大影響力並切入消費者。這推動了品牌影響力的增加和折扣的減少。

Let me start with Old Navy. Old Navy delivered 8% sales growth versus 2019, a deceleration from the first half as the brand was disproportionately affected by inventory lateness during the quarter. Old Navy maintained its #1 rank in kids market share according to NPD and sustained its kids and baby growth trend in the first half with strong back-to-school performance. BODEQUALITY, Old Navy's inclusive sizing integration launched successfully in August. The brand more than doubled its extended size customer file since launch. 15% of customers who shopped extended sizes are new to the brand and more than 1/3 have shopped Old Navy before, but are new to the category. We are seeing strong extended size demand across fashion categories, a clear signal that our customer is craving trend choice lacking in the market.

讓我從老海軍開始。與 2019 年相比，Old Navy 的銷售額增長了 8%，較上半年有所放緩，因為該品牌在本季度受到庫存延遲的嚴重影響。根據 NPD 的數據，Old Navy 保持其在兒童市場份額中的第一名，並在上半年保持其兒童和嬰兒的增長趨勢，並具有強勁的返校表現。 BODEQUALITY，Old Navy 的包容性尺寸整合於 8 月成功推出。自推出以來，該品牌的擴展客戶檔案增加了一倍多。 15% 購買過大碼商品的顧客是該品牌的新手，超過 1/3 的顧客之前購買過 Old Navy，但對這一品類並不陌生。我們看到時尚品類對尺碼的需求強勁，這清楚地表明我們的客戶渴望市場上缺乏的潮流選擇。

Moving to Gap. The momentum continues at Gap brand, particularly North America, with comparable sales up 13% versus 2019 and net sales nearly flat despite the almost 18 percentage points of revenue we shed through strategic store closures. This marks the third consecutive quarter of positive comparable 2-year sales growth in North America as Gap brand improves the core health of the business from tighter assortments and better quality product to an increase in digital penetration and lighter and brighter stores.

移動到 Gap。 Gap 品牌的勢頭仍在繼續，尤其是北美，與 2019 年相比，可比銷售額增長了 13%，淨銷售額幾乎持平，儘管我們通過戰略性關閉商店減少了近 18 個百分點的收入。這標誌著北美連續第三個季度實現了可比 2 年銷售額的正增長，因為 Gap 品牌從更緊湊的分類和更優質的產品到增加數字化滲透率和更輕更明亮的商店，改善了業務的核心健康。

Gap reached a critical milestone in our Power Plan, concluding its strategic review of the European market, driving a more profitable business model by shuttering our U.K. stores and working with local partners to amplify growth. We have identified strong partners in the U.K., Ireland, France and Italy, and together are committed to serving and growing our Gap customers in Europe.

Gap 在我們的電力計劃中達到了一個重要的里程碑，結束了對歐洲市場的戰略審查，通過關閉我們的英國商店並與當地合作夥伴合作來擴大增長，推動了一種更有利可圖的商業模式。我們已經在英國、愛爾蘭、法國和意大利找到了強大的合作夥伴，並共同致力於服務和發展我們在歐洲的 Gap 客戶。

Our newest Yeezy Gap icon, the Perfect Hoodie, delivered the most sales by an item in a single day in Gap.com history. With over 70% of the Yeezy Gap customers shopping with us for the first time, this partnership is unlocking the power of a new audience for Gap, Gen Z plus Gen X men from diverse background.

我們最新的 Yeezy Gap 標誌，完美連帽衫，在 Gap.com 歷史上單日銷量最高。超過 70% 的 Yeezy Gap 顧客是第一次與我們一起購物，這種合作關係正在為來自不同背景的 Gap、Z 世代和 X 世代男士釋放新受眾的力量。

Next, Banana Republic. We've successfully launched new brand positioning focused on acceptable luxury. Through unique storytelling and omni experiences, the brand is going back to its roots, igniting the adventure in all of us. Banana Republic reported a net sales decline of 18% versus 2019, and a negative 10% 2-year comp. Like Gap, we walked away from about 10 percentage points of unprofitable revenue due to strategic store closures.

接下來，香蕉共和國。我們成功推出了專注於可接受的奢侈品的新品牌定位。通過獨特的故事講述和全方位體驗，該品牌正在回歸本源，點燃我們所有人的冒險之旅。 Banana Republic 報告稱，與 2019 年相比，淨銷售額下降了 18%，2 年同比下降了 10%。與 Gap 一樣，由於戰略性關閉商店，我們減少了大約 10 個百分點的無利可圖收入。

Product margins expanded during the quarter as luxury products like merino, leather, cashmere and silk resulted in increased average transaction, drawing higher-value customers willing to pay for great quality.

由於美利奴羊絨、皮革、羊絨和絲綢等奢侈品導致平均交易量增加，吸引了願意為高品質買單的高價值客戶，產品利潤率在本季度有所擴大。

And finally, Athleta delivered an outstanding quarter with 48% net sales growth versus 2019, using its unique and ownable mission to empower women and girls through the power of she. The brand is investing in new touch points that increased awareness and drove new customer acquisition, which has more than doubled versus Q3 2019. Athleta grew brand awareness of 33% versus 27% last year according to YouGov, by embracing celebrity partnerships, Simone Biles and Allyson Felix, who took to the world stage in Tokyo.

最後，Athleta 實現了一個出色的季度，與 2019 年相比，淨銷售額增長了 48%，利用其獨特且可擁有的使命，通過她的力量賦予女性和女孩權力。該品牌正在投資新的接觸點，以提高知名度並推動新客戶獲取，與 2019 年第三季度相比增加了一倍以上。根據 YouGov 的數據，Athleta 通過與名人合作、Simone Biles 和Allyson Felix，在東京登上了世界舞台。

The brand expanded into Canada with a launch of its online business and its first company-operated store in Vancouver and Toronto. And customers are quickly embracing Athleta well, their new immersive digital community rooted in well-being with the active user base growing 50% every month since launch. We believe this platform has tremendous potential over the coming years to revolutionize how we monetize vulnerable brand experiences.

該品牌通過推出其在線業務以及在溫哥華和多倫多的第一家公司經營的商店擴展到加拿大。客戶正在迅速接受 Athleta，他們新的沉浸式數字社區植根於福祉，自推出以來活躍用戶群每月增長 50%。我們相信這個平台在未來幾年具有巨大的潛力，可以徹底改變我們如何利用脆弱的品牌體驗獲利。

Next, the power of our platform and portfolio. We leveraged our size and scale to drive advantage for our 4 purpose-led billion-dollar brands. Our leading omni platform provides customer convenience and engaging experiences, whether in store, on mobile or through curbside pickup. Our online sales grew 48% in the quarter compared to 2019, and we maintained our rank as #2 in U.S. apparel e-commerce sales.

接下來，我們的平台和產品組合的力量。我們利用我們的規模和規模為我們的 4 個以目標為主導的價值數十億美元的品牌帶來優勢。我們領先的全方位平台為客戶提供便利和引人入勝的體驗，無論是在店內、移動設備上還是通過路邊取貨。與 2019 年相比，本季度我們的在線銷售額增長了 48%，並且我們保持了美國服裝電子商務銷售額的第二位。

Our sizable active customer file sits at 64 million, and those customers are spending more on average than they were 2 years ago. But the more important is that the health of our customer file is improving. Compared to 2019, newly acquired customers are spending more with us than our existing customers with increased average transactions, average unit retail and basket size. We're pleased with the launch of our innovative rewards program and our ability to build customer lifetime value. Now with more than 45 million members, our loyalists are 2x more likely to shop across brands and 3x more likely to shop across channels.

我們龐大的活躍客戶檔案為 6400 萬，這些客戶的平均支出比 2 年前更多。但更重要的是，我們客戶檔案的健康狀況正在改善。與 2019 年相比，新獲得的客戶在我們這裡的支出高於我們現有客戶，平均交易量、平均單位零售量和購物籃大小都有所增加。我們很高興推出我們創新的獎勵計劃以及我們建立客戶終身價值的能力。現在擁有超過 4500 萬會員，我們的忠實擁護者跨品牌購物的可能性增加 2 倍，跨渠道購物的可能性增加 3 倍。

We fuel our brands through our scale technology advantage operations. We are investing capital to drive growth, reduce costs and increase speed and agility. To diversify and strengthen our business, we are also seeding new capabilities that will unlock additional value. For example, we acquired Drapr, which we expect will power new e-commerce tools with 3D fit technology and we acquired CD4, our machine learning and AI acquisition with broad potential across sales, inventory and consumer insights. We have plans to scale these solutions in 2022 to build our core digital capability. This will help our brands lower return, boost in-stock levels, increase margins and deliver better customer experiences online and in stores across all 4 brands.

我們通過規模化的技術優勢運營為品牌提供動力。我們正在投資資本以推動增長、降低成本並提高速度和敏捷性。為了多元化和加強我們的業務，我們還在培育新的能力，以釋放額外的價值。例如，我們收購了 Drapr，我們預計它將通過 3D 擬合技術為新的電子商務工具提供動力，我們還收購了 CD4，我們的機器學習和人工智能收購在銷售、庫存和消費者洞察方面具有廣泛的潛力。我們計劃在 2022 年擴展這些解決方案，以建立我們的核心數字能力。這將幫助我們的品牌降低退貨率，提高庫存水平，增加利潤，並在所有 4 個品牌的在線和商店中提供更好的客戶體驗。

The power of our portfolio comes to life through our leadership in key categories. Our strong Active and Fleece business and our Denim business are expected to generate revenue of $4 billion and $2 billion, respectively, this year, and our kids and baby business owns 9% market share across Old Navy, Gap and Athleta. Even as occasions and wear-to-work categories have strengthened, it's clear comfort and style will sustain. We're extending our customer reach across every age, body and occasion from value to premium through category expansion and new addressable markets. We can test and pilot 1 brand and then leverage learnings to scale across the rest. For example, starting our inclusive sizing rollout in Athleta and scaling at Old Navy with product quality or using Old Navy, Gap and Banana Republic's strong presence and infrastructure in Canada to enable Athleta's quick and seamless entry into the market. It's the collective power of our brand that gives us scale advantage.

我們產品組合的力量通過我們在關鍵類別中的領先地位得以體現。今年，我們強大的 Active 和 Fleece 業務和牛仔佈業務預計將分別產生 40 億美元和 20 億美元的收入，我們的兒童和嬰兒業務在 Old Navy、Gap 和 Athleta 中擁有 9% 的市場份額。即使場合和工作服類別有所加強，很明顯舒適和風格將持續下去。通過品類擴展和新的潛在市場，我們正在將我們的客戶範圍擴展到各個年齡、身體和場合，從價值到高端。我們可以測試和試點 1 個品牌，然後利用學習成果在其他品牌中進行擴展。例如，開始我們在 Athleta 的包容性尺寸推廣，並在 Old Navy 擴大產品質量，或利用 Old Navy、Gap 和 Banana Republic 在加拿大的強大影響力和基礎設施，使 Athleta 能夠快速、無縫地進入市場。是我們品牌的集體力量賦予了我們規模優勢。

We continue to innovate in sustainable sourcing with a focus on empowering women, enabling opportunity and enriching community. Every industry will be impacted by climate change, and we are doing our part to mitigate this impact, both in our supply chain and on the communities where we operate. Earlier this month, the USAID, Gap Inc., Women and Water Alliance announced that we have empowered 1 million people to improve their access to clean water and sanitation, already halfway to our goal of reaching 2 million by 2023.

我們繼續在可持續採購方面進行創新，重點是賦予女性權力、創造機會和豐富社區。每個行業都會受到氣候變化的影響，我們正在儘自己的一份力量來減輕這種影響，無論是在我們的供應鏈中還是在我們經營所在的社區中。本月早些時候，美國國際開發署、Gap Inc.、婦女與水聯盟宣布，我們已授權 100 萬人改善他們獲得清潔水和衛生設施的機會，這已經是我們到 2023 年達到 200 萬人的目標的一半。

Looking ahead, we anticipate robust apparel and accessory retail sales across the industry for the remainder of the year and into the next. That said, we are balancing the favorable consumer climate against current supply constraints. As I mentioned earlier, we are doing everything we can to improve our on-hand inventories versus fall. And still, we remain cautious given the current environment.

展望未來，我們預計今年剩餘時間和明年整個行業的服裝和配飾零售額將保持強勁。也就是說，我們正在平衡有利的消費環境與當前的供應限制。正如我之前提到的，我們正在盡我們所能來改善我們的現有庫存而不是下降。儘管如此，鑑於當前的環境，我們仍然保持謹慎。

One last thought before I hand it over to Katrina. While the near-term headwinds and resulting impact on our performance are difficult, we remain focused on executing our strategy for long-term sustainable growth. We are focused on what matters, demand-generating investments in our billion-dollar brands fueled by cut-through creative, deploying data and science to drive efficiency in the way we work, and restructuring our business to reduce cost. All of this allows us to emerge from the crisis, growing share, increasing brand health and delivering profitable growth long term.

在我把它交給卡特里娜颶風之前的最後一個想法。儘管近期的不利因素及其對我們業績的影響是困難的，但我們仍然專注於執行我們的長期可持續增長戰略。我們專注於重要的事情，對我們數十億美元品牌的需求產生投資，這些投資由突破性創意推動，部署數據和科學以提高我們工作方式的效率，並重組我們的業務以降低成本。所有這些使我們能夠擺脫危機，增加份額，提高品牌健康度並實現長期盈利增長。

With that, I wish you and your families a happy Thanksgiving. Katrina?

藉此，我祝您和您的家人感恩節快樂。卡特里娜颶風？

Thanks, Sonia, and good afternoon, everyone. As Sonia said, we're deeply proud of the progress we're making to transform Gap Inc. through our Power Plan 2023. We have strong demand for our brands and our fleet optimization through store closures, international partnerships and divestitures is progressing well and adding value.

謝謝，索尼婭，大家下午好。正如 Sonia 所說，我們為通過 2023 年電力計劃改造 Gap Inc. 所取得的進展深感自豪。我們對我們的品牌有強烈的需求，通過關閉商店、國際合作夥伴關係和資產剝離來優化我們的車隊進展順利，而且增加價值。

Our operating margin remains on track to hit 10% by 2023, in line with our plan, even as we navigate these near-term disruptions. Our balance sheet fortified with our recent debt restructuring enables us to invest in our business to drive growth while returning cash to shareholders.

我們的營業利潤率仍有望在 2023 年達到 10%，這符合我們的計劃，即使我們正在應對這些近期的中斷。我們最近的債務重組加強了我們的資產負債表，使我們能夠投資於我們的業務以推動增長，同時向股東返還現金。

The core tenets of our Power Plan 2023 strategy are well underway in delivering value. While we're confident with our strategy, widely reported worsening global supply chain issues meaningfully impacted our third quarter performance. We lost approximately $300 million of revenue or 8 percentage points of sales growth on a 2-year basis due to longer transit, which led to on-hand inventory. The backlog at U.S. ports deteriorated meaningfully from the first half of the year, resulting in up to 3 continuous weeks of unanticipated delays to fall product deliveries throughout the quarter.

我們的 2023 年電力計劃戰略的核心原則在創造價值方面正在順利進行。雖然我們對我們的戰略充滿信心，但廣泛報導的全球供應鏈問題惡化對我們第三季度的業績產生了有意義的影響。由於運輸時間較長，導致現有庫存，我們在兩年內損失了大約 3 億美元的收入或 8 個百分點的銷售增長。從今年上半年開始，美國港口的積壓情況顯著惡化，導致整個季度產品交付量連續 3 週出現意外延誤。

In addition, while our production capacity is largely globally diversified, approximately 30% of our product is produced in Vietnam, where factory closures extended to over 2.5 months, significantly longer than initially anticipated. Our average on-hand inventory in Q3 was 11% below fiscal year 2019. So despite strong sell-through trends, we lost volume as a result of limited supply.

此外，雖然我們的生產能力在很大程度上是全球多元化的，但我們大約 30% 的產品在越南生產，那裡的工廠關閉時間延長至 2.5 個月以上，比最初預期的要長得多。我們在第三季度的平均現有庫存比 2019 財年低 11%。因此，儘管銷售趨勢強勁，但由於供應有限，我們的數量有所減少。

While our brands all experienced delays in styles and sizes that limited their ability to fully meet strong demand, Old Navy was disproportionately impacted. We believe these supply chain disruption impacts to our sales and margins are transitory, although will persist in Q4 and potentially into early next year. With that, we've taken some near-term actions to proactively improve supply for holiday, and we're using the learnings from acute supply crisis to accelerate new capabilities for 2022 that we believe will help to better mitigate logistics challenges and more profitably increase speed to market going forward.

雖然我們的品牌都經歷了款式和尺寸的延遲，這限制了他們完全滿足強勁需求的能力，但 Old Navy 受到的影響尤為嚴重。我們認為，這些供應鏈中斷對我們的銷售和利潤率的影響是暫時的，儘管將持續到第四季度並可能持續到明年初。鑑於此，我們採取了一些近期行動來積極改善假期供應，我們正在利用從嚴重供應危機中吸取的教訓來加速 2022 年的新能力，我們相信這將有助於更好地緩解物流挑戰並提高盈利能力加快上市速度。

Let me touch on some efforts. First, in the near term, we've secured incremental air capacity to support holiday inventory. In addition to an estimated $100 million of air costs incurred in Q3, we've also invested approximately $350 million in Q4 airfreight to further expedite holiday deliveries. And second, where possible, we have routed a modest portion of our inventory to East Coast ports to bypass the congestion in the L.A. Long Beach port. While we aspire to improve our on-time deliveries for holiday by adding air capacity and utilizing alternate ports, the supply chain situation continues to be volatile. Newly opened Vietnam factories are behind on holiday production ramping up slowly, ongoing port delays are worsening and air charters are causing new airport congestion.

讓我談談一些努力。首先，在短期內，我們已確保增加航空運力以支持假日庫存。除了估計在第三季度產生的 1 億美元的航空成本外，我們還在第四季度的航空貨運上投資了約 3.5 億美元，以進一步加快假期交付。其次，在可能的情況下，我們將一小部分庫存運送到東海岸港口，以繞過洛杉磯長灘港口的擁堵。雖然我們希望通過增加空運能力和利用備用港口來改善我們的假期準時交貨，但供應鏈情況仍然不穩定。新開的越南工廠在假期生產緩慢增加，持續的港口延誤正在惡化，包機導致新的機場擁堵。

Our mitigation efforts are driving significant transitory costs, but we're focused on the long-term impact that delighting our customers with the products they love during the holiday season have and preserving market share and maintaining customer loyalty.

我們的緩解措施正在推動顯著的暫時性成本，但我們關注的長期影響是讓我們的客戶在假期期間用他們喜愛的產品取悅他們，並保持市場份額和保持客戶忠誠度。

We remain cautious in our outlook for the balance of the year and are updating our full-year 2021 EPS guidance range to $0.45 to $0.60 on a reported basis and $1.25 to $1.40 per share on an adjusted basis. We are updating our guidance solely based on the acute revenue and margin impacts from supply chain disruptions. This range now reflects the estimated lost sales from supply disruptions in the second half of 2021 to be $550 million to $650 million. In addition, our updated guidance range reflects approximately $450 million of transitory airfreight cost we have chosen to incur as we seek to meet as much customer demand as possible. And we are confident that when adjusting for these substantial disruptive impacts to 2021, our underlying business is ahead of plan, and we will emerge strong in 2022 and beyond.

我們對今年餘下的展望保持謹慎，並將我們的 2021 年全年每股收益指導範圍更新至報告基礎上的 0.45 至 0.60 美元和調整後的每股 1.25 至 1.40 美元。我們僅根據供應鏈中斷對收入和利潤的嚴重影響來更新我們的指導。該範圍現在反映了 2021 年下半年供應中斷造成的估計銷售額損失為 5.5 億美元至 6.5 億美元。此外，我們更新的指導範圍反映了我們在尋求盡可能多的客戶需求時選擇承擔的大約 4.5 億美元的臨時空運成本。我們有信心，在調整到 2021 年的這些重大破壞性影響時，我們的基礎業務超前於計劃，我們將在 2022 年及以後變得強大。

As we look to 2022, we are adding new capabilities that will enable us to navigate these disruptions with more flexibility and significantly less airfreight. Beginning with summer 2022, our teams have added the expected longer port delay times into product booking deadlines, which we believe will enable us to ship goods largely by ocean for on-time deliveries. In addition, Old Navy has now accelerated its use of digital product creation for the majority of its fall orders with vendors. This has added speed to the pipeline as the breakthrough and efficiency for the brand.

展望 2022 年，我們正在增加新的能力，使我們能夠以更大的靈活性和更少的空運來應對這些中斷。從 2022 年夏季開始，我們的團隊將預計更長的港口延遲時間添加到產品預訂截止日期中，我們相信這將使我們能夠通過海運實現準時交貨。此外，Old Navy 現在已經加快了其對供應商的大部分秋季訂單的數字產品創建的使用。作為品牌的突破和效率，這增加了管道的速度。

Also to increase geographic diversification and flexibility, we expect to leverage more multinational vendors. And we will begin to deploy AI from our recent CD4 acquisition to better drive inventory in-stock in our stores. AI, combined with ongoing inventory management transformation efforts, and the leverage of our new loyalty program, gives us confidence in the sustainability of strong average unit retails in 2022.

此外，為了增加地域多元化和靈活性，我們希望利用更多的跨國供應商。我們將從最近的 CD4 收購中開始部署 AI，以更好地推動我們商店的庫存。人工智能與持續的庫存管理轉型工作以及我們新的忠誠度計劃的槓桿作用相結合，使我們對 2022 年強勁的平均單位零售的可持續性充滿信心。

Now turning to third quarter financials. Before I get into specific results, I'd like to note that there are select charges we incurred in the quarter that are excluded from our adjusted financials, specifically costs related to restructuring our long-term debt and the transition of our European market to a partnership model. I'll provide more details on these as I talk through the results.

現在轉向第三季度財務。在我談到具體結果之前，我想指出，我們在本季度產生的一些費用不包括在我們調整後的財務數據中，特別是與重組我們的長期債務和將我們的歐洲市場過渡到夥伴關係模式。在討論結果時，我將提供有關這些的更多詳細信息。

Starting with sales. Net sales of $3.9 billion for the quarter were down 1% to 2019 with our Q3 sales deceleration from the first half of the year due to supply chain issues. Comp sales improved 5% on a 2-year basis. We're particularly pleased that 3 of our 4 brands delivered strong 2-year comp growth with Old Navy up 6%, Gap Global up 3% and North America up 13%, and Athleta up 41%, all while navigating acute supply issues. And while Banana Republic's 2-year comp was down 10%, the brand made progress in the quarter through its product and customer experience relaunch. Our strong e-commerce channel continues to be an advantage as online sales were up 48% compared to 2019, contributing 38% of sales in the quarter, up from 25% of total sales in Q3 2019.

從銷售開始。本季度淨銷售額為 39 億美元，較 2019 年下降 1%，由於供應鏈問題，我們的第三季度銷售額較上半年有所放緩。 Comp 銷售額在 2 年的基礎上增長了 5%。我們特別高興的是，我們的 4 個品牌中的 3 個實現了強勁的 2 年復合增長，其中 Old Navy 增長 6%，Gap Global 增長 3%，北美增長 13%，Athleta 增長 41%，同時解決了嚴重的供應問題。雖然 Banana Republic 的 2 年銷售額下降了 10%，但該品牌在本季度通過產品和客戶體驗的重新推出取得了進展。我們強大的電子商務渠道繼續成為優勢，因為在線銷售額與 2019 年相比增長了 48%，佔本季度銷售額的 38%，高於 2019 年第三季度總銷售額的 25%。

Moving to gross margin. Third quarter reported gross margin was 42.1%, an increase of 310 basis points versus 2019. Excluding impacts related to the transition of our European business to a partnership model, adjusted gross margin of 41.9% for the quarter represents the highest Q3 gross margin rate in over 10 years, expanding 290 basis points versus 2019 gross margin. This is primarily driven by 300 basis points in ROD leverage from higher online sales and lower rent occupancy and depreciation as a result of strategic foreclosures and renegotiated rents.

轉向毛利率。第三季度報告的毛利率為 42.1%，與 2019 年相比增加了 310 個基點。排除與我們的歐洲業務向合作夥伴模式過渡有關的影響，本季度調整後的毛利率為 41.9%，是第三季度最高的毛利率超過 10 年，與 2019 年的毛利率相比擴大了 290 個基點。這主要是由於戰略性止贖和重新談判租金導致在線銷售增加以及租金佔用率和折舊率降低，ROD 槓桿率提高了 300 個基點。

Merchandise margins were down just 10 basis points despite nearly 200 basis points of higher online shipping costs and about 250 basis points in short-term headwinds related to airfreight. Product acceptance was strong across all brands with our overall Q3 discount rate at the lowest level in 5 years.

儘管在線運輸成本上漲了近 200 個基點，並且與空運相關的短期逆風下降了約 250 個基點，但商品利潤率僅下降了 10 個基點。所有品牌的產品接受度都很高，我們第三季度的整體折扣率處於 5 年來的最低水平。

Turning to SG&A. Reported SG&A, which includes $26 million in charges related to the transition of our European operating model was 38.3% of sales, deleveraging 470 basis points compared to Q3 2019. On an adjusted basis, SG&A was 37.6% of sales, 610 basis points above 2019 adjusted SG&A.

轉向SG&A。報告的 SG&A（包括與我們的歐洲運營模式轉型相關的 2600 萬美元費用）佔銷售額的 38.3%，與 2019 年第三季度相比去槓桿化 470 個基點。經調整後，SG&A 佔銷售額的 37.6%，比 2019 年高 610 個基點調整後的SG&A。

We continue to execute our strategy of driving down fixed costs while investing a portion of those costs into demand generation in the form of marketing and technology. Fixed costs have been significantly reduced as we successfully closed stores in North America, divested 2 brands earlier this year and reached partnership agreements for our European markets.

我們繼續執行降低固定成本的戰略，同時以營銷和技術的形式將部分成本投入到需求產生中。隨著我們在北美成功關閉門店、在今年早些時候剝離 2 個品牌並就我們的歐洲市場達成合作協議，固定成本已顯著降低。

Marketing, up 360 basis points versus 2019, supported the rollout of our new initiatives, particularly loyalty, inclusive sizing at Old Navy, and the brand relaunch at Banana Republic, and is a major contributor to our low discount rates.

與 2019 年相比，營銷部門增加了 360 個基點，支持我們推出新舉措，特別是 Old Navy 的忠誠度、包容性尺碼以及 Banana Republic 的品牌重新推出，是我們低折扣率的主要貢獻者。

The balance of Q3 investments were primarily focused on technology to build out our digital and supply chain capabilities as well as on higher bonus accruals versus a low 2019 baseline as no meaningful incentive payouts were granted in that year based on performance. The investments we're making today are long-term differentiators, and we're committed to our strategy while remaining prudent even in the face of near-term supply headwinds.

第三季度投資的餘額主要集中在技術上，以建立我們的數字和供應鏈能力，以及與 2019 年較低的基線相比更高的獎金應計，因為當年沒有根據業績授予有意義的獎勵支出。我們今天所做的投資是長期的差異化因素，即使面對近期的供應逆風，我們也致力於我們的戰略，同時保持謹慎。

Regarding operating margin. Operating margin for the quarter was 3.9% on a reported basis. Excluding $17 million in charges related to our European market transition, adjusted operating margin was 4.3%, which as I noted earlier, includes the impact of an estimated $300 million in lost sales due to constrained inventory in addition to approximately $100 million in nonstructural airfreight costs.

關於營業利潤率。根據報告，本季度的營業利潤率為 3.9%。不包括與我們的歐洲市場轉型相關的 1700 萬美元費用，調整後的營業利潤率為 4.3%，正如我之前提到的，除了大約 1 億美元的非結構性空運成本外，還包括因庫存受限而造成的估計 3 億美元銷售損失的影響.

Moving on to interest and tax. During the quarter, we restructured our long-term debt by retiring all of our $2.25 billion senior secured notes and issuing $1.5 billion of lower coupon unsecured senior notes. Through this debt restructuring, we were able to reduce our overall debt balance, achieve material interest savings, approximately $140 million on an annual basis beginning in 2022, and unencumber our real estate assets previously pledged as collateral.

繼續討論利息和稅收。在本季度，我們通過退還所有 22.5 億美元的優先有擔保票據並發行 15 億美元的低息無擔保優先票據來重組我們的長期債務。通過這次債務重組，我們能夠減少我們的整體債務餘額，實現從 2022 年開始每年約 1.4 億美元的重大利息節省，並解除我們之前作為抵押品的房地產資產的負擔。

We incurred a $325 million nonrecurring charge related to debt extinguishment in the quarter. Q3 net interest was $43 million. Full year net interest is now expected to be $163 million. Looking beyond 2021, we expect annual net interest expense of around $70 million. The effective tax rate was 29% for the third quarter, excluding the impact from fees related to debt extinguishment and the charge changes to our European operating model, the adjusted effective tax rate was 20%. We expect the full year effective tax rate to be about 23% on a reported basis and about 26% on an adjusted basis.

我們在本季度發生了與債務清償相關的 3.25 億美元的非經常性費用。第三季度淨利息為 4300 萬美元。現在預計全年淨利息為1.63億美元。展望 2021 年以後，我們預計每年的淨利息支出約為 7000 萬美元。第三季度的有效稅率為 29%，不包括與債務清償相關的費用和我們歐洲運營模式收費變化的影響，調整後的有效稅率為 20%。我們預計全年有效稅率在報告的基礎上約為 23%，在調整後的基礎上約為 26%。

Regarding earnings on the quarter, Q3 reported earnings reflect a loss of $0.40 per share. Excluding fees associated with our long-term debt restructuring and the transition of our European markets to a partnership model, adjusted earnings per share for the quarter were $0.27.

關於本季度的收益，第三季度報告的收益反映了每股虧損 0.40 美元。不包括與我們的長期債務重組和我們的歐洲市場向合夥模式過渡相關的費用，本季度調整後的每股收益為 0.27 美元。

Turning to inventory. Inventory delays worsened throughout the quarter, and our Q3 sales down 1% versus 2019 outpaced average on-hand inventory of down 11% to 2019. Third quarter inventory ended flat to 2019 and down 1% versus 2020, with average on-hand inventory down 7% and in-transit up 16% versus last year.

轉向庫存。整個季度庫存延遲情況惡化，我們的第三季度銷售額與 2019 年相比下降 1%，超過了 2019 年下降 11% 的平均庫存量。第三季度庫存與 2019 年持平，與 2020 年相比下降 1%，平均庫存量下降與去年相比，增長 7%，在途增長 16%。

On-hand inventory at the end of the quarter remained seasonally relevant with markdowns below Q3 fiscal '19 quarter end levels. We expect Q4 ending inventory to be up high single digits versus last year, although this point-in-time outlook may change given continued volatility in the supply chain.

本季度末的現有庫存仍然與季節性相關，降價幅度低於 19 財年第三季度末的水平。我們預計第四季度期末庫存將比去年高個位數，儘管鑑於供應鏈的持續波動，這一時間點前景可能會發生變化。

Regarding the balance sheet and cash flow, we ended Q3 with $1.1 billion in cash, cash equivalents and short-term investments. During the quarter, we continued to return cash to shareholders, paying a Q3 dividend of $0.12 per share and repurchasing $73 million in shares as part of our current plan to offset dilution. And earlier this month, we announced a Q4 dividend of $0.12 per share.

關於資產負債表和現金流，我們在第三季度末擁有 11 億美元的現金、現金等價物和短期投資。在本季度，我們繼續向股東返還現金，支付每股 0.12 美元的第三季度股息並回購 7300 萬美元的股票，作為我們當前抵消稀釋計劃的一部分。本月早些時候，我們宣布了每股 0.12 美元的第四季度股息。

Looking at our global store fleet, our plan to close 350 Gap and Banana Republic North America stores is expected to be approximately 75% complete by the end of the year. And with the recent announcement of our agreement to transition to a partner model in Italy, we've now concluded an important phase of the restructure of our European market. All markets are expected to be transferred to our new partners in early 2022.

從我們的全球門店數量來看，我們關閉 350 家 Gap 和 Banana Republic 北美門店的計劃預計將在今年年底完成約 75%。隨著我們最近宣布同意過渡到意大利的合作夥伴模式，我們現在已經結束了歐洲市場重組的一個重要階段。預計所有市場都將在 2022 年初轉移給我們的新合作夥伴。

Now I'd like to provide an update on our full year financial outlook, which we are downwardly revising solely based on the acute impact of sales and margin of the supply chain disruptions. Full year 2021 reported earnings per share are now expected to be in the range of $0.45 to $0.60, which includes net charges of $445 million, comprised of $325 million in fees related to the restructuring of our long-term debt and approximately $120 million related to divestitures and the transition of our European business model to a -- European business to a partnership model. Excluding these charges and associated tax impacts, full year 2021 adjusted EPS is expected to be in the range of $1.25 to $1.40.

現在我想提供關於我們全年財務展望的最新信息，我們正在向下修正，僅基於供應鏈中斷對銷售和利潤率的嚴重影響。現在預計 2021 年全年報告的每股收益將在 0.45 美元至 0.60 美元之間，其中包括 4.45 億美元的淨費用，其中包括與我們的長期債務重組相關的 3.25 億美元費用和約 1.2 億美元與剝離和我們的歐洲商業模式向合作模式的過渡。排除這些費用和相關稅收影響，2021 年全年調整後每股收益預計在 1.25 美元至 1.40 美元之間。

This updated guidance now includes the following assumptions: first, we expect 2021 full year revenue growth of about 20% versus 2020. This range now reflects the expected lost sales from supply disruptions in the second half of 2021 of approximately $550 million to $650 million, including an estimated $300 million from Q3 and an estimated $250 million to $350 million in Q4. Second, we expect full year nonstructural air freight to be approximately $450 million. We consciously chose to air approximately 35% of our holiday product given the 2.5-month delays from Vietnam closures in Q3 and the over 3-week West Coast port delays so that we can give our customers as much holiday product as we can to deliver on their expectations. While this is material to our profitability, we believe it is necessary to further mitigate sales losses and retain customers for the long term.

該更新後的指導現在包括以下假設：首先，我們預計 2021 年全年收入將比 2020 年增長約 20%。這個範圍現在反映了 2021 年下半年供應中斷造成的預計銷售額損失約為 5.5 億美元至 6.5 億美元，包括第三季度估計的 3 億美元和第四季度估計的 2.5 億至 3.5 億美元。其次，我們預計全年非結構性航空貨運約為 4.5 億美元。鑑於第三季度越南關閉 2.5 個月以及西海岸港口延誤超過 3 週，我們有意識地選擇了大約 35% 的假期產品，以便我們可以為客戶提供盡可能多的假期產品。他們的期望。雖然這對我們的盈利能力很重要，但我們認為有必要進一步減輕銷售損失並長期留住客戶。

With the added air cost and the meaningful sales impact from supply constraints, we now expect full year 2021 reported operating margin to be about 4.5%, with adjusted operating margin at about 5% for fiscal 2021. This is inclusive of short-term air costs in the back half impacting operating margin by about 270 basis points. Full year capital spend is still expected to be approximately $800 million.

由於增加的航空成本和供應限制帶來的有意義的銷售影響，我們現在預計 2021 年全年報告的營業利潤率約為 4.5%，調整後的 2021 財年營業利潤率約為 5%。這包括短期航空成本後半部分影響營業利潤率約 270 個基點。全年資本支出仍預計約為 8 億美元。

In summary, when adjusting for the acute impact of supply chain disruptions, we are still expecting the year to end at or above our original plan for 2021, demonstrating that our underlying business trends are quite strong and providing real momentum. The progress we've made on our Power Plan 2023 strategy in the face of these challenges highlights the strength of our core business and the health of our brands, and we remain confident in our path as we move toward a 10% operating margin in 2023.

總而言之，在調整供應鏈中斷的嚴重影響時，我們仍然預計今年年底將達到或高於我們最初的 2021 年計劃，這表明我們的潛在業務趨勢相當強勁並提供了真正的動力。面對這些挑戰，我們在 2023 年電力計劃戰略上取得的進展突顯了我們核心業務的實力和我們品牌的健康，我們對 2023 年營業利潤率達到 10% 的道路充滿信心.

With that, we'll open it up for Q&A.

有了這個，我們將打開它進行問答。

(Operator Instructions) And our first question will come from Brooke Roach with Goldman Sachs.

（操作員說明）我們的第一個問題將來自高盛的 Brooke Roach。

Sonia, Katrina, I was wondering if you could help us a little bit with understanding the impact of some of these inventory planning and supply chain delays? As you're thinking about the inventory cadence into the fourth quarter and holiday, it sounds like there may be some shipments that may be stuck on boats in the ports right around the time where those customers are really looking for that holiday season. How are you thinking about carryover inventory into January and February? And perhaps the more lapsing impacts of some of these supply chain delays and Vietnam's slow restarts into 1Q of next year?

索尼婭，卡特里娜颶風，我想知道你能否幫助我們了解一些庫存計劃和供應鏈延遲的影響？當您考慮到第四季度和假期的庫存節奏時，聽起來可能有一些貨物可能會在這些客戶真正尋找假期季節的時候滯留在港口的船上。您如何看待 1 月和 2 月的結轉庫存？也許其中一些供應鏈延遲和越南在明年第一季度緩慢重啟的影響會更大？

Hi, Brooke, it's Katrina. So as we said on the call, we have amped up the airfreight for holiday in an effort to really navigate the lengthening port delays as well as the late opening of Vietnam. And there's a range of possible outcomes for how that could play through the holiday season. And so we'll see where that lands with holiday inventory. As it relates to the carryover into January and February, the teams have been really looking at -- for Vietnam, in particular, what units based on the closures do we need to cancel so that we didn't take them at all. What units can get reflowed into a future season.

嗨，布魯克，我是卡特里娜颶風。因此，正如我們在電話會議上所說的那樣，我們已經加強了假期空運，以真正應對港口延誤的延長以及越南的延遲開放。對於如何在假期期間發揮作用，有一系列可能的結果。因此，我們將看到假期庫存在哪裡。由於涉及到 1 月和 2 月的結轉，團隊一直在關注——特別是對於越南，我們需要取消哪些基於關閉的單位，以便我們根本不接受它們。哪些單位可以回流到未來的季節。

And then what units are we going to potentially pack and hold for next year. We proved this past year in the front half that pack and hold was a good strategy for us. And so if we think that things are going to be too late for the holiday season, we won't put them in stores or online and have them generate markdowns, instead we'll hold them for next year. So we're using a variety of things to help really navigate the current inventory situation so that we don't end up with a January or February inventory liability issue.

然後我們可能會在明年打包和持有哪些單位。在過去的一年中，我們在前半場證明了打包和保持對我們來說是一個很好的策略。因此，如果我們認為假日季節的事情為時已晚，我們不會將它們放在商店或網上並讓它們產生降價，而是將它們保留到明年。因此，我們正在使用各種方法來幫助真正了解當前的庫存情況，以免我們最終遇到 1 月或 2 月的庫存責任問題。

And our next question will come from Lorraine Hutchinson with Bank of America.

我們的下一個問題將來自美國銀行的 Lorraine Hutchinson。

When you think about the supply chain cost, how much of these costs do you view as structural? And are there any actions you can take to take price points higher to offset some of the headwinds?

當您考慮供應鏈成本時，您認為這些成本中有多少是結構性的？您是否可以採取任何行動來提高價格點以抵消一些不利因素？

Hi Lorraine, it's Sonia here. So we do think that the Q3 miss and the cost that we're incurring with air is transitory. And that's why we have made that bet. We wanted to maintain the customer promise. Our brands are resonating. We have a 10-year high margin through price realization. And so our bet was to stay on the office and have products here to service in holiday, and that's what's included in our outlook. We do think that even with the lumpiness of the quarter, we are on track to our Power Plan first year. And as we move into next year, we'll share more at the year-end, but we're confident about navigating that.

嗨，洛林，這裡是索尼婭。所以我們確實認為第三季度的失誤和我們因航空而產生的成本是暫時的。這就是我們下注的原因。我們希望保持對客戶的承諾。我們的品牌正在引起共鳴。通過價格實現，我們擁有 10 年的高利潤率。因此，我們的賭注是留在辦公室，並在假期提供產品服務，這就是我們的展望中包含的內容。我們確實認為，即使本季度表現不佳，我們仍有望實現第一年的電力計劃。隨著我們進入明年，我們將在年底分享更多信息，但我們有信心駕馭它。

So I think that through the price gains we've seen across all 4 of our brands, as exemplified by the Q3 margins. We think that, that can continue through a combination of the investments we've made in marketing, the strong product acceptance we're seeing, as well as the enabling capabilities such as personalized pricing and inventory management optimization as key levers to continue the charge over the coming years and price gains across the company. We're really pleased with the level of discounting we've been able to stymie, and we expect that, that -- in order to drive health and brands sequentially that, that will continue.

因此，我認為通過我們在所有 4 個品牌中看到的價格上漲，如第三季度的利潤率所示。我們認為，這可以通過我們在營銷方面的投資、我們看到的強大產品接受度以及個性化定價和庫存管理優化等支持能力作為繼續收費的關鍵槓桿來繼續未來幾年和整個公司的價格上漲。我們對我們能夠阻礙的折扣水平感到非常滿意，我們預計，為了依次推動健康和品牌，這種情況將繼續下去。

And next will be Matthew Boss with JPMorgan.

接下來是摩根大通的 Matthew Boss。

Sonia, at Old Navy, if we think about the 12-point sequential deceleration in comps, how much exactly was due to inventory? And what was the time line of exactly what went wrong versus the plan that you had in late August? Have you seen trends improve at Old Navy in November? And then, Katrina, on the 10% operating margin target, what's the split of the 500 basis points from here if we think between gross margin and SG&A?

Sonia，在 Old Navy，如果我們考慮一下組合中 12 點的連續減速，究竟有多少是由於庫存造成的？與您在 8 月下旬制定的計劃相比，究竟出了什麼問題的時間線是什麼？您是否看到 11 月 Old Navy 的趨勢有所改善？然後，卡特里娜颶風，在 10% 的營業利潤率目標上，如果我們考慮毛利率和 SG&A，那麼從這裡開始的 500 個基點的分配是多少？

Thanks, Matt. So as you know, we left the first half of this year with really strong momentum at Old Navy with 24% sales growth. And when we guided, we had baked in some disruption from Vietnam as we've seen in other countries, about 2- to 3-week closures as well as a 5-day port delay and because that is what we have seen, that's what we had forecasted, therefore, go forward. What actualized was, as you know, much more dramatic. We had a 2.5 month shutdown of Vietnam, which is our top sourcing country, and for Old Navy, the slightly higher, particularly for women. And so the compounding effect of that as well as the worsening port is the new news. And so as we thought about the health of Old Navy, the momentum, even in Q3, the growth in the Net Promoter Score and the growth and brand awareness through its BODEQUALITY launch, we made the decision to invest in airfreight in a substantial way to compete in holiday. So that's where we are right now.

謝謝，馬特。如您所知，今年上半年，我們在 Old Navy 的勢頭非常強勁，銷售額增長了 24%。當我們指導時，我們已經從越南受到了一些干擾，就像我們在其他國家看到的那樣，大約 2 到 3 週的關閉以及 5 天的港口延誤，因為這就是我們所看到的，這就是我們已經預測，因此，前進。如您所知，實際發生的事情更具戲劇性。我們關閉了 2.5 個月的越南，這是我們最大的採購國，而 Old Navy 的停產時間略高，尤其是對女性而言。因此，這種情況的複合效應以及港口的惡化是新消息。因此，當我們考慮到 Old Navy 的健康狀況、發展勢頭（即使在第三季度）、淨推薦值的增長以及通過 BODEQUALITY 推出帶來的增長和品牌知名度時，我們決定大量投資空運，以在假期競爭。這就是我們現在所處的位置。

We think that the majority of the sales loss -- all the sales loss, in fact, is due to supply chain loss and Old Navy entered the quarter quite lean in inventory because of the strong demand in the first half, leaner than the portfolio. And then you exacerbate that with the out-of-stocks due to the supply constraints out of Vietnam and the port. And so that's really what we're navigating in the short term. We do believe it's transitory. We do believe that Old Navy is incredibly healthy, and has had, I think, all the indicators, the price realization, the brand health, the Net Promoter Score, the loyalty customers, the age of the customer with new customers joining that are younger, all of that abodes to the right bet to play offense for Old Navy.

我們認為大部分銷售損失——所有銷售損失，實際上是由於供應鏈損失，而且由於上半年強勁的需求，Old Navy 進入本季度庫存相當稀少，比投資組合更精簡。然後，由於越南和港口的供應限制，缺貨加劇了這種情況。所以這確實是我們在短期內正在導航的內容。我們確實相信它是暫時的。我們確實相信 Old Navy 非常健康，並且我認為所有指標、價格實現、品牌健康度、淨推薦值、忠誠度客戶、新客戶加入的客戶年齡都更年輕，所有這些都代表了為老海軍打進攻的正確賭注。

And then, Matt, as it relates to the 10% operating margin, we remain confident in that for 2023. When you look at our guidance for this year with a 5% operating margin, that includes about a 270 basis point impact from the transitory airfreight cost that we're incurring this year. And then in addition to that, it includes the close to $500 million of sales impact from supply constraints. And so all of that gives us confidence that this year, when you take out the supply chain impacts, would have been well ahead of our original Power Plan 2023 for this year and more in line with the guidance we provided back in August. So we're confident that we'll get through this.

然後，馬特，因為它與 10% 的營業利潤率有關，我們對 2023 年仍然充滿信心。當您查看我們今年的 5% 營業利潤率指導時，其中包括大約 270 個基點的暫時影響我們今年產生的空運成本。除此之外，它還包括供應限制對銷售的近 5 億美元影響。因此，所有這一切都讓我們相信，當您消除供應鏈影響時，今年將遠遠領先於我們今年最初的 2023 年電力計劃，並且更符合我們在 8 月份提供的指導。所以我們有信心度過難關。

As we talked about before, we are looking forward, we're adding the supply chain delays from the ports to our buying timelines for summer. And then Old Navy is accelerating its move to digitizing product creation for fall, all of which we think will enable us to navigate next year with much less air freight, and we can see line of sight then to recovering the lost sales with better supply. So more to come when we get into next year, but we do see that this year would have been ahead of plan, and we have line of sight to mitigating these costs and sales losses going forward.

正如我們之前所說，我們很期待，我們正在將港口的供應鏈延遲添加到我們夏季的採購時間表中。然後，Old Navy 正在加快其秋季產品創建數字化的步伐，我們認為所有這些都將使我們能夠在明年以更少的空運來航行，並且我們可以看到然後通過更好的供應來彌補損失的銷售。當我們進入明年時，會有更多的事情發生，但我們確實看到今年會提前計劃，我們有視線來減輕這些成本和未來的銷售損失。

And our next question will come from Kimberly Greenberger with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Kimberly Greenberger。

I wanted to ask about the level of SG&A spending that we're seeing. Should we assume that this is the new baseline of spending going forward? And when you realized during the third quarter that Old Navy would be low of inventory, was there any thought to perhaps cut back on marketing during the quarter so as not to disappoint the customer? Because, obviously, with the lack of inventory and driving traffic to the stores through marketing, the potential certainly would have existed.

我想問一下我們看到的 SG&A 支出水平。我們是否應該假設這是未來支出的新基準？當你在第三季度意識到 Old Navy 的庫存會很低時，有沒有想過在這個季度削減營銷，以免讓客戶失望？因為，顯然，由於缺乏庫存和通過營銷推動商店的流量，潛力肯定會存在。

Yes. So on the SG&A side, Kimberly, as we said, the SG&A deleverage in the quarter was impacted partially by the drop in sales, and then partially by the commitment that we had to really staying the course on marketing as you call out. And then it was offset by pullbacks in stores expenses, which we did do in the quarter, we really targeted anything that was not customer facing to try to pull back on the SG&A in the face of the sales declines that we were seeing from the supply constraints that emerged in the middle of the quarter. I'll let Sonia talk a little bit about the marketing piece.

是的。因此，在 SG&A 方面，Kimberly，正如我們所說，本季度的 SG&A 去槓桿部分受到銷售額下降的影響，然後部分受到我們必須真正堅持營銷路線的承諾的影響。然後它被商店費用的回調所抵消，我們在本季度確實這樣做了，面對我們從供應中看到的銷售下降，我們確實針對任何不是客戶面對的東西試圖撤回 SG&A本季度中期出現的限制因素。我會讓索尼婭談談營銷方面的事情。

Yes. And I'll just add on, look, we pulled back on payroll and other fixed costs that don't add value in the phase of lower sales, as you suggest Kimberly. But fundamentally, our strategy is working. And we have a fair amount of rigor around marketing effectiveness and marketing spend that gave us confidence that it was the right level of investment. And as we look at Q3 for Old Navy, in particular, with Net Promoter Score being up, despite the fact that we have stock-outs, where we know we did -- we had some disappointment. And with the fact that the brand awareness is up 8 points for a brand of Old Navy size, that's really dramatic and strong based on BODEQUALITY, the BODEQUALITY launch.

是的。我只是補充一下，看，我們撤回了工資和其他在銷售下降階段不會增加價值的固定成本，正如你建議的金伯利。但從根本上說，我們的策略是奏效的。我們對營銷效果和營銷支出有相當嚴格的要求，這讓我們相信這是正確的投資水平。特別是當我們查看 Old Navy 的第三季度時，淨推薦值在上升，儘管我們知道我們有缺貨，但我們有些失望。事實上，對於 Old Navy 尺寸的品牌而言，品牌知名度提高了 8 分，基於 BODEQUALITY，BODEQUALITY 的推出，這確實非常引人注目。

So we think the marketing investments are right. We're focused on fixed cost elimination that's automating our stores processes, that's removing unproductive sales to store closures and the transition of our unprofitable international markets. So those are areas that we've made a lot of progress on that affect broad SG&A as well as our store operations. Hopefully, that's gives a little bit more color on SG&A. We're very, very committed to digitizing our core operations so that our fixed SG&A costs in our 3-year plan continue to be a competitive advantage.

所以我們認為營銷投資是正確的。我們專注於消除固定成本，使我們的商店流程自動化，消除非生產性銷售到商店關閉和我們無利可圖的國際市場的過渡。因此，這些是我們在影響廣泛的 SG&A 以及我們的商店運營方面取得了很大進展的領域。希望這能給 SG&A 帶來更多色彩。我們非常非常致力於將我們的核心業務數字化，以便我們在 3 年計劃中的固定 SG&A 成本繼續成為競爭優勢。

Great. And I just wanted to ask a clarifying question, Katrina. Could you just tell us what the AUR increase was in third quarter?

偉大的。我只是想問一個澄清問題，卡特里娜颶風。您能否告訴我們第三季度的 AUR 增長是多少？

Yes, no problem. We didn't quantify that. What we did say, though, Kimberly, is that in our merchandise margins, they were only down 10 basis points on the quarter, and that was with 200 basis points of online deleverage as well as 250 basis points of the transitory airfreight costs. So hopefully, that's helpful. But we -- so that would tell you that the AUR was up meaningfully if with that 450 basis points of headwinds, we only lost about 10 basis points of merch margin.

是沒有問題。我們沒有量化。不過，金佰利，我們確實說過，在我們的商品利潤率中，該季度僅下降了 10 個基點，而在線去槓桿化降低了 200 個基點，臨時空運成本降低了 250 個基點。所以希望這會有所幫助。但是我們——所以這會告訴你，如果在 450 個基點的逆風下，我們只損失了大約 10 個基點的商品保證金，那麼 AUR 就會有意義地上漲。

And moving on to Ike Boruchow with Wells Fargo.

並與富國銀行一起前往 Ike Boruchow。

So Katrina, I wanted to ask about 2 questions on margin. Just trying to understand the airfreight dynamic. I mean, is this transitory in the sense that it is, in your mind, onetime? I'm just trying to bridge the 5% margin today versus your 10% target in 2 years. That's 250 basis points, I think, for the full year. If my math is right, that would get you halfway there to 7.5% and then to 10%. I guess, that's -- I guess I have 2 questions. One, is that the right way to think about it? Is it onetime? Or is some of this going to stick? And then as we build to 10%, is this going to be kind of an even build over the next 24 months? Or is this more backloaded to '23? Just to help us think about that would be great.

所以卡特里娜颶風，我想問兩個關於邊際的問題。只是想了解空運動態。我的意思是，從某種意義上說，在你的腦海中，這只是暫時的嗎？我只是想在今天的 5% 利潤率與 2 年內 10% 的目標之間架起一座橋樑。我認為，這是全年的 250 個基點。如果我的數學是正確的，那將使您達到 7.5%，然後達到 10%。我想，那是 - 我想我有 2 個問題。一，這是正確的思考方式嗎？是一次性的嗎？還是其中一些會堅持下去？然後當我們建設到 10% 時，這是否會在接下來的 24 個月內實現平衡？還是這更多地回到了 23 年？只是為了幫助我們思考這一點會很棒。

Sure. So you're thinking about that right, Ike. This year includes 270 basis points of headwind from what we would say is airfreight cost that is solely attributable to navigating the supply crisis. And so not something that we would see continue. We'll see next year how much of it continues in the front half of the year. But fundamentally, this year would have been that 270 basis points higher without having to navigate these current issues. So you're thinking about that correctly.

當然。艾克，所以你想的是對的。今年包括 270 個基點的逆風，我們所說的空運成本完全歸因於應對供應危機。因此，我們不會看到繼續發生的事情。我們將看到明年上半年會持續多少。但從根本上說，今年本應上漲 270 個基點，而無需解決這些當前問題。所以你在想這個是正確的。

And then we'll give you more on how it will pace out 2022 versus 2023. But I think what Sonia and I would say is, by the end of this year, we're really proud that, I would say 75% of the core restructuring of the company is largely behind us. When you think about closing the North America stores, divesting of our 2 smaller brands, getting our 3 countries in Europe partnered, we do feel like -- we got the debt restructured in the third quarter, we do feel like we've made really good progress against the restructuring plan. And so the next 2 years really are going to be about driving now the optimization of that healthy core with these digitization efforts that we think will start to add value, as we talked about through inventory management, through lower return rates and through automation of some of our core processes to try and drive cost out. But we'll talk more about pacing when we get to the end of the year, but that's the way to think about that 10% operating margin.

然後我們將向您提供更多關於 2022 年與 2023 年將如何發展的信息。但我認為索尼婭和我要說的是，到今年年底，我們真的很自豪，我會說 75%公司核心重組在很大程度上落後於我們。當你考慮關閉北美門店、剝離我們的 2 個小品牌、讓我們在歐洲的 3 個國家建立合作夥伴關係時，我們確實覺得——我們在第三季度進行了債務重組，我們確實覺得我們真的做到了重組計劃取得良好進展。因此，接下來的 2 年確實將通過這些數字化努力推動健康核心的優化，我們認為這些努力將開始增加價值，正如我們通過庫存管理、較低的退貨率和一些自動化所討論的那樣我們的核心流程，以嘗試降低成本。但是當我們到年底時，我們會更多地談論節奏，但這是考慮 10% 營業利潤率的方式。

Yes, I'd just add on. I think, fundamentally, going through a quarter like this, we have looked at our strategy and are very resolved in that it is the right strategy. We are putting the customer at the center. Our commitment to sales growth, driven by these 4 brands that are growing in health with a double-digit operating return, is our objective. And we think we're still on plan to meet that. The quarters are lumpier than we would like, certainly, not happy with this quarter. But if you step back and you look at the year, we will still be on track to that plan that we communicated last October. And so there is, I think, that to look to as well as the commitment to the next couple of years.

是的，我只是補充。我認為，從根本上說，經歷了這樣一個季度，我們已經審視了我們的戰略，並且非常堅定地認為這是正確的戰略。我們以客戶為中心。我們對銷售增長的承諾是我們的目標，這 4 個品牌正在以兩位數的運營回報健康成長。我們認為我們仍在計劃實現這一目標。這些季度比我們想要的要大，當然，對這個季度不滿意。但如果你退後一步看看這一年，我們仍將按照我們去年 10 月傳達的計劃進行。因此，我認為，這是值得關注的，也是對未來幾年的承諾。

Our next question comes from Adrienne Yih with Barclays.

我們的下一個問題來自 Barclays 的 Adrienne Yih。

Sonia, I'm trying to understand, for the quarter, you had probably one of the biggest deltas versus other retailers on the third quarter, in particular. So I'm wondering, is there something that's happening with your lead times? I know that there was an initiative to shorten up and tighten up those lead times? Have they become too short that these types of events can actually have a very near an impact?

索尼婭，我試圖了解，在本季度，與其他零售商相比，您可能是第三季度最大的增量之一，特別是。所以我想知道，你們的交貨時間有什麼問題嗎？我知道有一個縮短和收緊交貨時間的倡議？它們是否變得太短以至於這些類型的事件實際上可以產生非常接近的影響？

And then, Katrina, we didn't talk much about any average hourly rate pressure in that SG&A line. Numbers are floating out there $15 to $17 and, historically, Gap's been at the forefront of leading that AHR initiative. So how are you thinking about that? And how should we think about that wage inflation annually?

然後，卡特里娜颶風，我們沒有過多談論該 SG&A 線中的任何平均小時費率壓力。數字在 15 美元到 17 美元之間浮動，從歷史上看，Gap 一直處於領導 AHR 計劃的最前沿。那麼你是怎麼想的呢？我們應該如何看待每年的工資通脹？

Well, certainly, as a vertically integrated apparel retailer with about 30% of our manufacturing in Vietnam, we were disproportionately impacted. And those who don't manufacture there, had a natural advantage. We continue to believe that the scale of our supply chain has always been an advantage right? It shows up in better rates, in better unit cost, and access to last mile. And so that's advantage. Now that said, we are using this as an opportunity to find ways to further insulate ourselves. And so while we expected the shutdown to be similar to other countries, a couple of weeks, for example, I think, the government delay was substantially longer in Vietnam, especially South Vietnam, where we were most exposed and in Old Navy women's where we were most exposed. So it was outside of our expectations.

嗯，當然，作為一家垂直整合的服裝零售商，我們在越南生產的產品約佔 30%，我們受到了不成比例的影響。而那些不在那裡生產的人，有一個天然的優勢。我們仍然相信我們的供應鏈規模一直是我們的優勢，對嗎？它以更優惠的價格、更優惠的單位成本和到達最後一英里的方式顯示出來。這就是優勢。話雖如此，我們正以此為契機，尋找進一步隔離自己的方法。因此，雖然我們預計關閉與其他國家類似，但我認為，例如幾週，越南政府的延遲要長得多，尤其是南越，我們接觸最多的地方，以及我們在老海軍女子訓練營的地方。暴露最多。所以這超出了我們的預期。

Going forward, we're focused on multinational vendors as opposed to single point partners as well as the digitizing of the product creation process, which will really let us reduce cycle times and lead times in our product-to-market model. So I think we're using this crisis as an opportunity as we did last year to accelerate some of the key components of our Power Plan 2023 including digitization, including supply chain transformation and inventory management transformation, which are all opportunities that we see leaning into, to move us forward.

展望未來，我們將專注於跨國供應商而不是單點合作夥伴以及產品創建過程的數字化，這將真正讓我們縮短產品上市模型的周期時間和交貨時間。因此，我認為我們正像去年一樣利用這場危機作為契機，加速我們 2023 年電力計劃的一些關鍵組成部分，包括數字化，包括供應鏈轉型和庫存管理轉型，這些都是我們看到的機會，推動我們前進。

And then, Adrienne, on the AHR pressure, I mean we are definitely seeing average hourly rate pressure, primarily in our distribution centers, but in our stores as well. And so far, the teams are doing a good job navigating that. And we haven't called it out, but it's not sort of one of the biggest headlines, but it is definitely something that we are navigating within our cost structure as others are.

然後，Adrienne，關於 AHR 壓力，我的意思是我們肯定會看到平均小時費率壓力，主要是在我們的配送中心，但也在我們的商店中。到目前為止，團隊在導航方面做得很好。我們還沒有說出來，但這並不是最大的頭條新聞之一，但它絕對是我們在成本結構中導航的東西，就像其他人一樣。

Yes, and it's contemplated in our outlook. And what I would say is, the automation levels we have in our DCs are a great hedge for us. That being said, we are absorbing some of those AHRs and then our stores, we have embedded some headwind into the back half.

是的，我們的展望中也考慮到了這一點。我想說的是，我們在 DC 中擁有的自動化水平對我們來說是一個很好的對沖。話雖如此，我們正在吸收其中一些 AHR，然後是我們的商店，我們在後半部分嵌入了一些逆風。

Okay. Have you given what your AHR actually is?

好的。你有沒有給出你的 AHR 實際上是什麼？

No, we haven't. No.

不，我們沒有。不。

And we have a question from Dana Telsey with Telsey Advisory Group.

我們有一個來自 Telsey 諮詢小組的 Dana Telsey 的問題。

As you think about the supply chain obstacles that happen now and you think about going forward into 2022 and even into 2023, what are the learnings from this that adjust -- that how you adjust your supply chain going forward? How do you operate differently, do you think, that may help to manage the inventory even better going forward?

當您考慮現在發生的供應鏈障礙並考慮到 2022 年甚至到 2023 年時，從中學到了什麼調整 - 您如何調整供應鏈？您認為您如何以不同的方式運營，這可能有助於更好地管理庫存？

I would say, first and foremost, it starts with digitizing the information so that we know exactly where every unit is in our end-to-end supply chain. We had that information, but now we're going to a greater level of detail and more real-time visibility. And that all links to the technology investments we're making in digitizing our end-to-end supply chain. So I'd say that's first and foremost.

我想說，首先，它首先將信息數字化，以便我們準確地知道每個單元在我們的端到端供應鏈中的位置。我們有這些信息，但現在我們將獲得更高級別的細節和更實時的可見性。所有這些都與我們在端到端供應鏈數字化方面所做的技術投資有關。所以我想說這是首要的。

Second is, we've always had a supply chain that has given us cost advantage. And now we'll be putting a greater emphasis on resiliency and flexibility. And so whether that's sourcing more in your store, whether that's multiple countries of origin, we're looking at a variety of levers to enhance our competitive advantage in our scaled supply chain.

其次，我們一直擁有一個為我們提供成本優勢的供應鏈。現在我們將更加強調彈性和靈活性。因此，無論是在您的商店採購更多產品，還是在多個原產國，我們都在尋找各種手段來增強我們在規模化供應鏈中的競爭優勢。

And Dana, in particular to 2022, for spring, we have moved a lot of our West Coast port volume to the East Coast, which we believe will help us navigate better. And in summer, we've built in the much longer port delay lead times into our buying cycles. And then as we said, for fall, the Old Navy teams fully pulled forward the digitization of their fall line so that they are seeing much better speed and flexibility. So I think, sequentially, next year, we feel like we've been incorporating the learnings. And then as Sonia said, digitization has always been that next leg of Power Plan 2023, but we've used this as a way to really accelerate some of that work to make sure that we're getting more advantage faster.

而 Dana，尤其是到 2022 年春季，我們已將西海岸的大量港口運往東海岸，我們相信這將有助於我們更好地航行。在夏季，我們將更長的港口延遲提前期納入我們的採購週期。然後正如我們所說，對於秋季，舊海軍團隊完全推進了他們的秋季線的數字化，以便他們看到更好的速度和靈活性。所以我認為，明年，我們覺得我們一直在整合這些知識。然後正如 Sonia 所說，數字化一直是 2023 年電力計劃的下一個階段，但我們已將其用作真正加速其中一些工作的一種方式，以確保我們更快地獲得更多優勢。

Yes. And as we reflect on the 18 months, I would say, I'd much rather have a supply problem than a demand problem. And on the demand side, we've been, I think, pleased with the response and the customer sentiment. And so really, it's about navigating the short-term transitory issues as we lean into the pricing power, the brand health, the customer acquisition into our loyalty program, which has exceeded our expectations.

是的。當我們回顧這 18 個月時，我會說，我寧願遇到供應問題而不是需求問題。在需求方面，我認為我們對響應和客戶情緒感到滿意。真的，這是關於解決短期暫時性問題，因為我們將定價能力、品牌健康、客戶獲取納入我們的忠誠度計劃，這超出了我們的預期。

And our last question will come from Paul Lejuez with Citi.

我們的最後一個問題將來自花旗的 Paul Lejuez。

I'm curious how you go about measuring the missed sales in the quarter? And wondering on a related note, can you maybe talk about by brand traffic versus conversion and how that differed in 3Q versus 2Q?

我很好奇你是如何衡量本季度錯過的銷售額的？並且想知道相關的說明，您能否談談品牌流量與轉化率以及第三季度與第二季度的差異？

Yes. For the missed sales, Paul, we took a pretty literal approach to really looking at what inventory wasn't here to sell and quantifying what that would have sold for. You could say that there was actually a larger impact than that when you think about the fact that our customers don't often buy just one unit. They often buy a basket of units. And so there's what you would consider maybe a halo effect to not having those units. But the way we quantified the sales loss is really that literal, don't have the unit, don't get the sale. And then as it relates to brand by brand, maybe Sonia can talk about brand by brand. I don't know that we'll break out the components, but we're certainly happy to give you our thoughts on the Q2 trend versus Q3.

是的。對於錯過的銷售，保羅，我們採取了一種非常直截了當的方法來真正查看哪些庫存不能在這裡出售，並量化它們的售價。當您考慮到我們的客戶不經常只購買一個單位這一事實時，您可以說實際上影響更大。他們經常購買一籃子單位。因此，您可能會認為沒有這些單位可能會產生光環效應。但是我們量化銷售損失的方式真的是字面意思，沒有單位，就沒有銷售。然後因為它涉及到一個品牌一個品牌，也許索尼婭可以一個品牌一個品牌地談論。我不知道我們會分解組件，但我們當然很高興向您介紹我們對 Q2 趨勢與 Q3 的看法。

Yes. I mean I'd say, really pleased with 3 out of 4 of our brands showing comp. With Gap North America showing a nice acceleration at 13% comp in North America and a great quarter for partnerships for Gap, whether it's the Walmart home growth or the Yeezy Gap icon item, the hoodies being launched. And then the stores really have continued to build momentum. So I'd say Gap, we feel great about in terms of the momentum. The Banana Republic since relaunch, the positioning in successful luxury, we've been pleased with the momentum there with customer response.

是的。我的意思是，我對我們 4 個品牌中有 3 個展示 comp 感到非常滿意。隨著 Gap North America 以 13% 的比例在北美顯示出良好的加速增長，以及 Gap 合作夥伴關係的良好季度，無論是沃爾瑪家居增長還是 Yeezy Gap 圖標項目，連帽衫正在推出。然後商店真的繼續建立勢頭。所以我會說 Gap，就勢頭而言，我們感覺很好。香蕉共和國自重新推出以來，定位於成功的奢侈品，我們對那裡的客戶反應勢頭感到滿意。

And Athleta really just had a spectacular quarter with 46% sales growth over 2019. And the partnership that have been a cornerstone and a tailwind for us across the company, the Simone Biles and Allyson Felix partnerships, which accelerated the brand awareness for Athleta, which has been a driver of their sales momentum. So I'd say for our brands and for Old Navy, I think, while we had, as I said, healthy customer indicators, we simply were just not able to meet the demand to the level that we wanted. And we'll continue to navigate that for the back half and are planning to compete as best as we can in Q4.

Athleta 確實剛剛度過了一個令人矚目的季度，銷售額比 2019 年增長了 46%。對於我們整個公司來說，Simone Biles 和 Allyson Felix 合作夥伴關係一直是基石和順風順水，這加速了 Athleta 的品牌知名度，這一直是他們銷售勢頭的驅動力。所以我想說，對於我們的品牌和 Old Navy，我認為，正如我所說，雖然我們擁有健康的客戶指標，但我們只是無法滿足我們想要的需求水平。我們將繼續在後半部分進行導航，併計劃在第四季度盡可能地競爭。

But did that show up in lower conversion in 3Q versus 2Q? Or lower UPTs? Any metrics you can share that help quantify the decel from 2Q to 3Q as a result of this lower inventory?

但這是否體現在第三季度與第二季度相比較低的轉化率？還是降低 UPT？您可以分享哪些指標來幫助量化由於庫存減少而導致的從 2Q 到 3Q 的減速？

Yes. I know, Paul, we don't actually break out those components. So I think what we've said is the deceleration that we saw from Q3 was totally attributable to the lack of supply. And inventory was down 11%, and Old Navy was down more than that. So hopefully, that's helpful, but we don't, as a practice, break out traffic and conversion.

是的。我知道，保羅，我們實際上並沒有分解這些組件。所以我認為我們所說的是我們從第三季度看到的減速完全歸因於供應不足。庫存下降了 11%，而 Old Navy 的下降幅度更大。所以希望這會有所幫助，但作為一種做法，我們不會打破流量和轉化率。

And that does conclude the question-and-answer session. I'll now turn the conference back over to you for any additional remarks.

這確實結束了問答環節。我現在將會議轉回給您，以獲取任何補充意見。

Thanks for joining and have a great Thanksgiving.

感謝您的加入，祝您感恩節愉快。

Thank you. And that does conclude today's conference. We do thank you for your participation. Have an excellent day.

謝謝你。這確實結束了今天的會議。我們非常感謝您的參與。有一個美好的一天。