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we guided to 10 basis points under last year in air freight versus the 30 basis points higher
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2022 Q2
2 Sep 22
It still sits 280 basis points above 2019. But we'll continue to see that moderate through the second half of the year,
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2022 Q2
2 Sep 22
in terms of airfreight, yes, we've started to see it moderate.
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2022 Q2
2 Sep 22
we are starting to see higher on-time deliveries from our vendors as well as some shorter lead times.
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2022 Q2
2 Sep 22
While we expect to see leverage on airfreight expense relative to last year, this will be offset by the timing of expenses related to our supply chain initiatives, as well as a more normalized level of markdowns relative to the low levels we experienced last year.
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2022 Q2
2 Sep 22
being driven by better on-time performance at our vendors, which is allowing us to receive products sooner than we initially expected. This is also allowing us to use less air freight as we now expect air freight for the full year 2022 to be 10 basis points under last year versus our prior expectation of 30 basis points above last year.
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2022 Q2
2 Sep 22
On a three-year CAGR basis, unit inventory increased 38% relative to 2019 at the end of Q2.
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2022 Q2
2 Sep 22
Inventory grew 85% versus last year
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2022 Q2
2 Sep 22
We continue to strategically use airfreight to help mitigate industry-wide supply chain issues and support our top line momentum, with these higher costs having an impact on inventory when looked at on a dollar basis.
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2022 Q2
2 Sep 22
Adjusted operating income for the quarter was $391 million or 20.9% of net revenue compared to adjusted operating margin of 20.6% in Q2 2021 and inclusive of approximately 130 basis points of additional air freight expense.
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2022 Q2
2 Sep 22
We also experienced 40 basis points of deleverage from foreign exchange. This was partially offset by 30 basis points of leverage on fixed costs, driven primarily by occupancy and depreciation.
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2022 Q2
2 Sep 22
Relative to 2019, markdowns are flat.
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2022 Q2
2 Sep 22
Markdowns were 30 basis points higher than Q2 2021, given low inventory levels and out of stocks last year.
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2022 Q2
2 Sep 22
Q2 product margin included an increase of approximately 130 basis points in air freight related to macro supply chain challenges
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2022 Q2
2 Sep 22
So we typically have seen, and this is on average about 45 days. These have gone up to 90 days plus during the kind of peak disruption. We've seen them drop approximately to 70 days.
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2022 Q2
2 Sep 22
for much of last year, we were under-inventoried and not able to fully maximize our business. This year, we are in a much better position to deliver product innovation to our guests wherever and however they shop with us.
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2022 Q2
2 Sep 22
while we continue to strategically leverage airfreight to help ensure timely delivery of product into our distribution centers, we are seeing these rates begin to come down.
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2022 Q2
2 Sep 22
Ocean delivery times are improving, although they remain significantly elevated compared to the pre-COVID period.
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2022 Q2
2 Sep 22
in China, vendors who had to close their slow production in quarter one due to COVID-19 are beginning to catch up.
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2022 Q2
2 Sep 22
We now expect to open approximately 75 net new company-operated stores in 2022, up modestly from our prior guidance of approximately 70.
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2022 Q2
1 Sep 22