The Gap, Inc. (NYSE:GPS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 27, 2020 • 04:15 pm ET


The Gap, Inc. (NYSE:GPS) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen. My name is Christie, and I will be your conference operator today. At this time, I would like to welcome everyone to The Gap Incorporated Second Quarter 2020 Earnings Call. [Operator Instructions]

And at this time, I would like introduce your host, Tina Romani, Head of Investor Relations.

Tina Romani

Good afternoon, everyone. Welcome to Gap Inc.'s second quarter 2020 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 the forward-looking statements, as well as the description and reconciliation of the non-GAAP financial measures, as noted on Page 2 of the slide supplementing our remarks, please refer to today's earnings press release, as well as our most recent quarterly report on Form 10-Q filed on June 9, 2020, and our subsequent filings with the SEC, all of which are available on These forward-looking statements are based on information as of August 27, 2020, and we assume no obligation to publicly update or revise our forward-looking statements.Joining me on the call today are Chief Executive Officer, Sonia Syngal; and Chief Financial Officer, Katrina O'Connell. As mentioned, we will be using slides to supplement our remarks, which you can view by going to the Investors section on

With that, I'd like to turn it over to Katrina.

Katrina O'Connell

Thank you, Tina, and thank you, everyone, for joining us today. The COVID pandemic has been challenging for everyone, including impacting the Gap Inc. business, as I'll discuss in a moment. But more importantly, I want to acknowledge the tremendous effect that this has had on everyone's lives from a health, economic and social standpoint. At Gap Inc., we believe strongly in leading with our values, especially at this time of need for so many people. We hope you and your families are well and healthy, particularly as we recognize the continuing challenges we all face.

For today's call, I'm going to start with a review of the company's second quarter performance, followed by our thoughts on the remainder of fiscal year 2020. Following that, Sonia will share her perspective, and then we'll open it up for Q&A.

Before I jump into our second quarter results, I want to share thoughts on the transition from the first quarter to the second quarter. We've been highly focused on executing steps to ensure liquidity for the company, including addressing the challenges of widespread store closures. We also recognize we had an opportunity to drive growth focused -- through focused investments and by leveraging our best-in-class capabilities to return the company to improved sales performance and margin improvement. I'm pleased to say we delivered on this in second quarter.

So I'd like to touch on a few highlights. First, driven by the performance of our three, soon-to-be four, iconic billion-dollar-plus brands, in combination with the many steps taken across the organization in support of