86 annotations
Page 4 of 5
hey did have about 50% of their inventory sourced from Vietnam. And the supply chain issues from the back half of last year did continue to impact the performance in the first half of the year
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2022 Q2
5 Sep 22
we believe that third quarter ending inventory growth will moderate substantially and are targeting negative inventories versus last year by the end of the fiscal year
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2022 Q2
5 Sep 22
we’ve taken action to write off unproductive inventory in the second quarter and cut receipts across the assortment beginning in late fall and into holida
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2022 Q2
5 Sep 22
we are able to optimize our margin in the near term and benefit working capital next year as we buy lower receipts and sell through the pack and hold inventory.
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2022 Q2
5 Sep 22
$35 million charge related to the Old Navy Mexico transition, adjusted SG&A as a percentage of sales deleveraged 120 basis points
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2022 Q2
5 Sep 22
During the quarter, we wrote off $58 million of unproductive inventory, primarily styles and sizes at Old Navy.
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2022 Q2
5 Sep 22
rebalancing our assortments to better meet changing consumer needs
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2022 Q2
5 Sep 22
sequentially reducing inventory through the second half of the year, including the impairment of unproductive inventory as well as reducing future receipts
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2022 Q2
5 Sep 22
gross margin was down 820 basis points year-over-year, driven by an estimated 300 basis points of airfreight deleverage, 220 basis points stemming from higher discounting, roughly 200 basis points of inflationary cost headwinds and roughly 100 basis points of ROD deleverage.
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2022 Q2
5 Sep 22
we’ve been navigating through product lateness and product acceptance issues, most notably at Old Navy, which has forced us to increase the level of discounting
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2022 Q2
5 Sep 22
ROD deleveraged approximately 30 basis points, primarily as a result of the lower sales volume during the quarter. The remaining deleverage of approximately 370 basis points stemmed primarily from higher discounting at Old Navy.
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2022 Q2
5 Sep 22
we realized an estimated $50 million of incremental airfreight during the quarter, which resulted in approximately 130 basis points of margin deleverage
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2022 Q2
5 Sep 22
we continue to navigate inflationary cost headwinds, which we estimate had an approximate 200-basis-point negative impact on margin.
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2022 Q2
5 Sep 22
we still see inflationary pressure, primarily coming from cotton, wage pressure, and freight
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2022 Q2
5 Sep 22
220 basis points was inflation and 100 bps was ROD.
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2022 Q2
5 Sep 22
in the first half, we saw a deleverage based on all the airfreight of about 300 basis points, 220 basis points of the front half deleverage was discounting
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2022 Q2
5 Sep 22
the intensifying promotional background and signs of weak demand in the low-income consumer
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2022 Q2
5 Sep 22
SG&A was $1.36 billion or 35.2% of sales, deleveraging 160 basis points from the prior year, primarily as a result of lower sales volume.
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2022 Q2
5 Sep 22
we are taking actions to rightsize inventory, we are also mindful of the uncertain and increasingly promotional environment
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2022 Q2
5 Sep 22
gross margin was 36%, deleveraging 730 basis points from the prior year. Close to half of the deleverage stems from onetime or macro-related headwinds, while the balance reflects our increased promotional activity resulting from our current inventory challenges and assortment imbalances.
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2022 Q2
5 Sep 22