Good afternoon, ladies and gentlemen, and welcome to Gap Inc.'s Third Quarter Conference Call. At this time, all participants are on a listen-only mode. (Operator Instructions). The conference call and webcast are being simultaneously recorded on behalf of Gap Inc. and consist of copyrighted material. They may not be re-recorded, reproduced, retransmitted, rebroadcast or downloaded without Gap Inc.'s express written permission. Your participation represents your consent to these terms and conditions, which are governed under California law. Your participation on the call also constitutes your consent to having any comments or statements you make appear on any transcript or broadcast of this call. If you have any questions regarding this policy, please contact Gap Inc. Investor Relations at 415-427-2175. I would now like to introduce your host, Sabrina Simmons, Senior Vice President, Corporate Finance. Please go ahead, ma'am.

Good afternoon, everyone. I would like to welcome you to Gap Inc.'s third quarter 2006 earnings conference call. For those of you participating in the webcast, please turn to slide 2. I would like to remind you that the information made available on this webcast and conference call contain certain forward-looking statements including. but not limited to. forecasts relating to earnings per share, free cash flow, operating margin, inventory per square foot, interest expense, depreciation and amortization, capital expenditures, effective tax rate, store openings and closings, real estate square footage, market and product category growth, and excess cash usage, as well as other statements that express our expectations, anticipations, beliefs, estimates, intentions, plans and forecasts. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements. Information regarding factors that could cause results to differ can be found in our annual report on Form 10-K for the fiscal year ended January 28, 2006. Investors should also consult our quarterly report on Form 10-Q for the quarter ended July 29, 2006, and today's press release. Future economic and industry trends that could potentially impact net sales and profitability are difficult to predict. These forward-looking statements are based on information as of November 16, 2006, and we assume no obligation to publicly update or revise our forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. This presentation includes the non-generally accepted accounting principal measure, free cash flow, which under SEC Reg G, we are required to reconcile with GAAP. The reconciliation of these measures to GAAP financial measures is included in our earnings press release, which is available on gapinc.com. Joining us on the call today are CEO, Paul Pressler; CFO, Byron Pollitt; Banana Republic President, Marka Hansen; and Gap Brand President, Cynthia Harriss. Now, I would like to turn the call over to Paul.

Good afternoon. Our third quarter results reflect that each brand is at a different stage in its turnaround. We were pleased with the solid performance at Banana Republic and continued progress at Gap, but Old Navy's third quarter results were disappointing. Although we believe we've made improvements in Old Navy's product and store experience over the past several months, traffic trends unexpectedly deteriorated in October, making it difficult to clear fall product. I'll share further details on Old Navy later in the call. At Gap, we continue to make progress during the third quarter, although we would like to see its top line results improve faster. Each month this quarter our comp trend has moved in the right direction. We are creating great buzz in the market with our Audrey and RED campaigns, but we know it will takes several seasons of compelling messaging and product to rebuild our traffic. Most importantly, Cynthia has laid the ground work for Gap's long term success, setting solid strategies and hiring strong talent to lead the execution. At Banana Republic, I am pleased that we reported three months of positive comps, are continuing to achieve healthy improvements in margins. Customers have responded positively to our assortments, which the team has balanced with both elevated fashion and versatile essentials. Building on Banana Republic's unique accessible luxury positioning, we will continue to expand the brand into new product categories. As we look at our third quarter performance and November results so far, Old Navy's business continues to be challenging month-to-date, and momentum at Gap brand is slower than we expected. Accordingly, we are lowering our earnings guidance for the year. I'll turn the call over to Byron to provide more details on this and to review our financials.

Thank you, Paul, and good afternoon. As Paul said, though we were pleased with performance at Banana Republic and progress at Gap brand during the third quarter, business at Old Navy remained challenging. Today, I will review third quarter results, and then walk you through guidance for fiscal 2006. First Q3 results. Net earnings were $189 million, or $0.23 per share. Gross margin increased 210 basis points, to 37.4%. We ended the quarter with $2.4 billion in total cash and investments. We increased our quarterly dividend to $0.08 per share, and finally as of November 15, we have utilized a total of $344 million of our $750 million share repurchase authorization, and have repurchased 20 million shares. Of which, 16 million shares were repurchased during the third quarter. For webcast participants, please turn to slide 3. Third quarter earnings were $189 million, or $0.23 per share, compared to $212 million, or $0.24 per share last year. As stated in our October sales release, the tax rate benefited from an adjustment related to a tax treaty resolution that was originally booked in January of fiscal 2005. Therefore, our third quarter effective tax rate was 35.4%, 410 basis points below the prior year. Third quarter weighted average diluted shares were 832 million. Please turn to slide 4, sales performance. Total Gap Inc. sales in the third quarter were 3.9 billion, flat to last year. Gap Inc. comp store sales decreased 5% in the third quarter, compared to a negative 7 in the third quarter last year. The 5 percentage point positive spread between total sales and comp sales was driven primarily by new stores and online. For the third quarter net sales in comps by division, please refer to our earnings press release. Turning now to gross profit on slide 5. Gross…

Thank you, Byron, and good afternoon everyone. When I last spoke to you on the first quarter earnings call, I shared an important lesson our team had learned the past year, that customer's love us for our fashion point of view, but they expect to find versatile wardrobe builders in addition to the latest fashion trends. We have made sure to reflect this balance in everything we do, from our product assortments and in-store shopping experience to our windows, direct mail and print marketing campaign. Of course, it all begins with product. In 2005, we worked hard on rebalancing our assortments to include great elevated fashion along with high quality style essentials that could be worn to work, out at night or on weekends. By holiday of 2005, we all believe that the assortments had achieved the balance that was right for the brand. And at the time of Q1 call, we were beginning to see signs that customers were responding. This progress has not only continued, but has resulted in positive sales comp and healthy margins for the past three months in a row. This fall, women responded very well in the dressing, classic and feminine women shirts and suiting. She also completed here wardrobe with our accessories, such has elevated handbags, the perfect sales and trends like jewelry. For holiday, we position Banana Republic as the destination to meet all of her holiday occasion. We are all about affordable luxury, great items that you can wear to work, to an office party or out at night. We are also offering a wide range of covetable gifts, both for yourself and for others, from leather accessories to cozy sweaters, featuring cashmere, alpaca and [ferraro], as well as our essential sweaters like merino. Our men's business continues to gain momentum,…

Thank you, Martha, and good afternoon. On today's call, I will review the progress Gap Brand has made turning around the business and highlight specific accomplishments across each of the business unit. I will close with a key focus for holiday. As you know, this year we’ve been working hard to turn around the business, adopting a long-term plan with clear strategies to improve product, store environment and marketing. Today we are executing against the plan with the right talent leading each of the business units. And as a result, we are seeing good traction, especially at body and baby. While progress remained slow in adult, we have strategies in place to strengthen the business. We remained confident in our ability to win back customers over time. In the third quarter we saw positive indicators across the brand that validate our long-term strategy and encourage us to stay the course while making appropriate corrections along the way. First, comp sales improved each month this quarter. Second, customer experience scores are up significantly from last year, with customers reporting they feel more welcome in our stores, attended to by helpful employees and they appreciate the neat and organized store environment. And third, we have generated strong buzz and exposure with our marketing campaign. I would like to share some specific accomplishments in each of the business unit. Under the leadership of Tom Wyatt, we are seeing solid performance in creating strong momentum in our body business. As a reminder, Tom joined us nine months ago to head up GapBody. A veteran leader with more than 30 years experience, including 25 in the intimate apparel industry, Tom's expertise has been instrumental in creating a long-term strategy that positions the business for growth. The combined foundation, lounge and swimwear business is $20 billion…

Thank you, Cynthia. As I said, Old Navy's third quarter results were disappointing. Although we believe, we've improved our offering of trend right product and began seeing traction in women's fashion early in the quarter, results declined as traffic deteriorated in October. Because challenging business trends have continued month-to-date, we are cautious about our fourth quarter outlook. I strongly believe that we have hired the right leader for Old Navy. Dawn Robertson is onboard working with her team to regain momentum in the short term, and to look at the brand's competitive positioning for the long term. I hired Dawn based on her deep merchandising and marketing expertise and her nearly 30 years of retail experience. She has held leadership roles with Federated, the May company and Saks. And most recently Dawn led Myer, the largest department store chain in Australia, which she successfully repositioned the brand and significantly improved their financial results. Needless to say, Dawn has been immediately focused on quickly diagnosing the needs of the business. The Old Navy team is continuing to execute their plans to get trend right product into stores faster, to maximize store productivity, and to develop compelling marketing. Holiday television advertising is primarily focused on the family. Our first spot, featuring winter fashion, began last Thursday and runs through November 21. This would be followed by a spot supporting our Black Friday promotional event, then two additional spots focused on gifts for the family run through December 22. Aligned with Old Navy's emphasis on trend right specialty product, we have doubled the number of fashion magazines we are advertising in this holiday. Finally, on Black Friday we will be holding a 'steel deal unreal' promotional event, including $10, $20 and $30 gifts, and in every store we will be giving away a…

That concludes our prepared remarks. We will now open up the call to questions. We’d appreciate limiting your questions to one per caller.

Your first question comes from the line of Brian Tunick with J.P. Morgan.

Hi, thanks guys. I guess, my question is, I was just trying to keep track of all the different projects, initiatives you've talked about in the call between Piperlime and the Banana Republic sunglasses. Just maybe talk about the philosophy of trying, maybe not to just to focus on just maybe three things and doing them well. Why are there so many projects that you guys continue to pursue, when obviously the opportunity in the core businesses are still ahead of us?

Hi, it's Paul. Let me answer that one. I think it's a good question. First, we are all unbelievably focused and committed to our turnaround, and we are not going to let anything get in our way or distract us for making sure that the teams are focused on executing that. As we've said, there's a couple of things. First of all, we want to continue to invest in our future growth, and we setup a while ago and said that that growth was going to come through a couple of different avenues. First and foremost was the natural extension of these brands, because we think they're covetable lifestyle brands. And when we look at what Marka is doing in Banana Republic, it's clear that that brand not only is covetable, but she and her team have the bandwidth to be able to expand and offer those products to our consumers that we think is relevant to the business. We also think that these brands are relevant internationally, and growth is going to be an important part of growth, which is why we setup the franchise business. Our franchise business and our vertically integrated businesses are being led by separate and distinct teams that are not part of the US team. So, it's not a distraction and they’re able to take the assets, and now particularly since we have our teams in place in markets in Europe. And in Japan, they are truly operating independently. On online, not only we have built the systems, but Toby and his team have the capacity to be able to grow that business, hence the reason for Piperlime and for the new systems that we've put in place. And again, it doesn’t distract from the major brands, and those teams in what they need to do. So, the principle that we continue to follow is that the turnaround is our most important focus. We will not do anything that we believe in any way distracts the talent in place to accomplish that turnaround. At the same time, we want to continue to invest in our opportunities for growth, which will be the product extensions, our international growth and our online business.

Okay. Thanks that’s very helpful.

Your next question comes from the line of Randal Konik with Bear Stearns

Hey, I have quick question. Just on the -- if you look at the product quality of Banana, it seems to be getting a lot of better and a lot elevated. You talked a lot about cashmere and the assortment. And then the Gap RED product seems to be higher quality. But in the Gap stores, the rest of the assortment seems to be just a bit of the lower quality. Can you discuss some of the learnings from the RED assortment, in terms of how you may elevate the rest of the product assortment going forward in the coming quarters and what categories you may be focused on?

Hi, this Cynthia. We are very proud of (PRODUCT) RED and its provided not only great buzz for the brand, but great learnings for all of us. We were able as a team to go from concept to delivery in pretty short order with that. Along with that, part of our intention was that RED was intended to be the premium of expression of the brand, and from that we have actually learned a lot about the customer's response and I think that you will see many of the fabrications and attitudes of that showing up in future seasons in the rest of the assortment.

Hello?

Yes?

Yes, and then quick one for Byron. Just, Byron, if I may, if you look at the cash flow statement, the accounts payable on accrued expenses has been very significant drivers of cash flow. Just explain those drivers and are they sustainable source of the cash in '07?

The primary driver on the working capital increased, which did have a pretty significant impact on our cash flow this quarter, can be traced back to a strategy we implemented some time ago in connection with shifting most of our product purchases from letter of credit to open account, and this was made possible by the significant improvement in our credit rating. And although the original intent was to reduce financing fees associated with letter of credit, a consequence -- an additional consequence with this strategy was to increase the amount of payables outstanding. And therefore we received a pretty significant working capital impact. And to the extent that, that differential continues then it would be sustainable. With regards to the increase in accrued expenses, without getting into the details of what caused it in the third quarter, the heart of your question was whether it's sustainable. And I would say, there are natural fluctuations on this account and I wouldn't view that component as being sustainable.

Thank you.

Your next question comes from the line of Jeff Klinefelter with Piper Jaffray.

Yes. My question is regarding the store remodel program. When you think about how you are allocating between marketing dollars, advertising dollars, and then towards store remodels, is there any consideration given what you've learned so far with the productivity improvements to direct even more of the marketing dollars, the national marketing dollars towards store remodel, given that it seems with your particularly Gap, the mall base locations, mall traffic having sort of stabilized nationally from what we understand that that would be even more effective way of driving the conversion? And then just as a follow to that is, what is the current age of the leases across your three divisions?

This is Byron. Let me start with that one. With regards to remodels, we don't view the remodel campaign at Gap -- effort at Gap to be in conflict with the allocation of dollars to marketing. In order to maintain a brand standard, what it means to the brand as it relates to the stores shopping experience, and the experience of the customer inside the store, the moment you say you have a brand standard, you sign up for a certain amount of remodel over time. That’s been seriously neglected at Gap brand. We are in catch-up mode and, frankly, we would remodel our stores as quickly as the length -- as we can negotiate leases that would allow an adequate time to amortize those improvements. So, to be clear, there is no cash constraint associated with our remodels. The decisions to do specific marketing campaigns and the productivity of those campaigns are a completely separate decision, and they have to stand on their own merits and in no way detract from our ability to remodel as fast as we can the Gap fleet.

And what is the current age of each fleet?

We haven't guided -- we haven't really talked about that. Your question began with Gap, and because Gap is the oldest brand and has the highest percentage of older leases, what happens when a lease runs out of options, you no longer have a guaranteed option to extend the lease. And therefore, what's slowing the program down a bit Extend the lease and therefore what's slowing the program down a bit is that -- what's governing its pacing is, we have to go in and negotiate renewals and extensions to those older leases. And that’s why we've been calling this out as a pacing factor for our remodel program.

Okay. Thank you.

Your next question comes from the line of Dana Cohen with Banc of America.

Hi guys. I just wanted to come back on the issues for the business momentum at Gap division. I mean, I can understand you pointing just things like customer satisfaction scores. But, at what point do you feel you would need comps and other objective measures for the business or just start to put up those types of numbers in order to have incremental confirmation that you are moving in the right direction?

Hi, Dana, this is Cynthia. Certainly, I understand your question, and during the Q3 we would have liked to even have stronger performance. But what we know is that it’s a long-term strategy the fact that we have disappointed customers over many seasons and it will take a period of time. But what I would say, in Q2 there were positive indicators, some of which I mentioned in my remarks. But with the specific product in women's, we are getting strong indicators in those areas, specifically in the clean shop, body, baby as well as each month during the quarter we did make improvement even though not to the level that we wanted against content, against traffic. So, we're just viewing this as indicators. That being said, we know we've got to work it hard every single day, because there is more ahead.

Fine. Thank you.

Your next question comes from the line of Stacy Pak with Prudential.

Hi. A couple of things. Byron, I was wondering if you could address how you are thinking about SG&A expense dollars for '07, given the lack of momentum in the business. I guess, what I think I’m hearing is you're going to continue to spend on marketing, and so we should probably look at those dollars being up that same amount. Also for you, why should inventories be up low single digit? Why is that the right number, if comps are down mid to high? And then Cynthia and Paul, I guess, I’m just trying to understand the strategy to reinvigorate Gap and Old Navy, not GapBody, not baby, not international and extensions. But what are you going to do to get the brands reinvigorated, or is there anything about adding third party brands? And what do you do --I mean it's -- you had Oprah and Bono and it didn’t seem to do much. So I am just -- I'm not understanding. Thanks.

Okay Stacy, Byron. I'll begin with the SG&A. So the same approach we have used to support our turnaround strategies in marketing and store labor investments and in supporting our growth initiatives Forth & Towne, international, franchise, Piperlime, we will follow that same expense investment approach in Q4. And clearly, we expect all our expenses to have a return. So as we approach '07, the budgets for which we are currently in the midst of, we will evaluate each of the seasons accordingly, beginning with the first one in '07, and make whatever adjustments we feel appropriate. But to be clear, the guidance that we have given you reflects in Q4 of '06, the same approach that we adopted in Q3. With regards to your inventory question, we guided to low single digits at the end of this fiscal year. Just keep in mind that we’re comping against a prior year's fourth quarter of minus 11. And so, when you put that -- when you just look at the two year comp, you're in negative territory.

Yes, I'll just -- it's Paul. I'll just mention quickly on Old Navy. As I had mentioned, clearly we were pleased with how the teams had refocused our product positioning against our specialty flair. And although we think we did a good job on that, of course, there's always opportunity for us to get better. After seeing some momentum, particularly in September, we were disappointed and unexpected the deterioration of the business in October. Having said that, we do feel like we've got the holiday advertising campaign to be able to drive our business, and get our customers excited, not just about our product, but also about the excitement and fun that Old Navy has always been and reflected on. So, we feel good that we've got the marketing plans in place. But needless to say now that Don's here, it's going to give her an opportunity and for all of us to have a new fresh pair of eyes on the business to see how we can look for other opportunities for us to drive excitement with our customers, whether it would be advertising campaigns, product campaigns, repositioning of the merchandise within the store. So, we’re clearly looking and open to ideas, but we feel pretty good about our holiday plans in place and are hopeful that it can drive the traffic we need.

Hi, this is Cynthia. The strategy overall is really focusing on the product, the in-store experience, service and marketing. The Q3 performance were as not to the level we wanted, was some indicators of progress. It’s the first season where we delivered the new product assortment and we are learning a lot with it. Several of the things that you mentioned certainly are things that we are exploring, and whereas it's not the big part of our business, things like we did introduce Converse into our stores, in 25 stores, and its been a success. It will be in 75 by this next week. But that’s just one indicator. An indicator is that we are open to exploring a variety of things. You have heard the buzz about the Roland Mouret dresses in Europe, and those will be in seven of our Manhattan stores next week. But the big focus is really on the product, of the core product.

Thank you.

Your next question comes from the line of Kimberly Greenberger with Citigroup

Hey, thank you. I wanted to ask a question on marketing, specifically for Gap brand. And I think you mentioned that the Audrey campaign haloed to the rest of the store. But if you could just go through your third quarter campaigns, the Denim, the Audrey and the RED. What campaigns did successfully not only sell the items featured, but halo the rest of the store? And then just if Byron, can you give us an update on CapEx for '07, given the 75 to 100 '07 remodels, that would be helpful thanks.

We were back on air in July for the first time with a television commercial. I would say the Audrey commercial with the skinny black pants, keep it simple, really was a break out for us. That’s where we had strong performance in the categories, not only in the ad, but had a nice halo effect within what we would call the whole clean shop. RED, on the other hand product assortment was really, or was intended to be premier and is a small proportion of the inventory, rate buzz on that and we’ve had great response to the product, and in fact pleased of the fact that the team was able to scurry and chase into additional products so that we will be as its delivery into the stores now for the rest of the holiday season.

Kimberly, it's our custom to give all '07 guidance on the fourth quarter earnings call, so look forward to answering that question there.

Thanks, Byron. Is there anyway you might be willing to comment on what an average store remodel might cost or a ball park range.

We haven’t talked about that yet, and will talk about capital expenditure by category on the fourth quarter earnings call, to give you a better flavor of how much money we are investing in remodels and existing stores.

Great, thanks.

Your next question comes from the line of Jennifer Black with Jennifer Black and Associates.

Good afternoon. Have you seen a response to your ads in the front of magazines, oldnavy.com? And then I also wondered if you could comment on how you feel about the depth of the assortment at both Gap and Old Navy? Thank you.

Hi, Jennifer, it's Paul.

Hi, Paul.

Not quite sure I got that first question, but we continue to look at lots of different mediums for Old Navy. As I mentioned in the call, we think that prints particularly, as it relates to our fashion sensibility is new for us and we are going to continue to do that. The teams are always looking at new mediums, whether they would be online for our own sites or even through other sites as a way for us to get attention about what's important overall to our products.

What I asked was, if you are measuring the response, because you can't miss the ads in the front of all the magazines?

Yes. The teams have a pretty robust measurement tools that we use for all of our mediums where we can get it. Clearly when it comes to direct mail and there is a response, it’s a lot easier to get an exact science on measuring the effectiveness of that. Our print campaign in the magazine book is a lot more difficult if there isn't a response. But we have pretty good programs in place to be able to understand the value creation from some of these vehicles.

Okay. And then I also asked the question about how you feel about the depth of the assortment at both Gap and Old Navy.

Jennifer, this is Cynthia.

Hi Cynthia

Hi. As you know, we have made significant shift in the presentation of our stores compared to last year, and I would say overall the inventory levels are appropriate for where we are with the business. But just to the facts that there has been such a shift in the look, the feel, the quality of it, we are learning a lot and finding areas where frankly we are chasing some business. As I mentioned earlier, probably the greatest strength that we are having in the adult business is coming in the clean shops, in both men and women. And there is certainly some categories where we wished we had a little more depth in that. But I think that’s part of the learning journey that we are on.

And then, Jennifer, as it relates to Old Navy, I will answer it in depth in two ways, both inventory and classifications. We feel really good going into holiday, the classifications, particularly in sweaters, and some of the great products that I think Old Navy has done with sherpa and faux fur. So, we feel very good about the general depth of the classifications that we are covering, hoddies and men's and so on. As it relates to inventory, clearly in hindsight for October for fall, we were deeper than we would have liked to have been, given the deterioration in our traffic. However, we did buy holiday lighter. So, even given our software business today we think we are in pretty good shape.

Okay. Thank you very much and good luck.

Thank you.

Thank you.

Your next question comes from the line of Barbara Wyckoff with Buckingham Research.

Hi everyone. I guess a couple of questions, one for Marka and one for Cynthia, and Cynthia, I guess and Paul, given the success of the plans of the body business, we really haven't heard any plans to accelerate body openings, it would seem that that might be a good idea. And then Banana, Marka on Banana, just if you could talk generally about Banana domestic versus international, meaning Japan, and I realize Japan doesn't have much scale, but, how many stores do you think you could open there and where do you think the margins could get to relative to domestic Banana? Are they at the same kind of levels, do they have that potential or could you talk a little more about that?

Hi, this is Cynthia. We're really encouraged about the big opportunity we think that there is in GapBody, and as I mentioned, just two weeks ago we introduced a new look and feel of our store and are really enthused about it, and I hope you have an opportunity to go visit at one of the locations. There is more to come on this and frankly this is the work that Tom and the team have been working toward on putting together a strategy. But we really view this as a big opportunity.

So with regard to Banana Republic, I think we are learning a lot from our Japan counterparts. As we know, we opened five stores last year, eight more this year, and we are just going to continue to grow the market as it is appropriate. But we've learned a lot with smaller stores, some new fixturing that we've actually brought back to the States. So it has been a really great learning experience on both sides. And we are looking at Banana as a global brand where the product assortment is actually pretty much the same globally, which is working really very well -- the proposition of Affordable Luxury has worked there as well as our women's business has been very strong in Japan.

Okay. Thank you.

Your next question comes from the line of [Ilene Dee] with Credit Suisse.

Hi. What is your sense on selling or spinning off any of your brands and on acquisitions, and would that sense change based on the pace of the turnaround or the stock price? Thank you.

Thanks Ilene. Well I think it's obviously responsible of our management team to continue to evaluate the strategic options that really determine the best way for our shareholders to increase their value in the company. We believe that we can create significant value to our shareholders by staying just maniacally focused on our turnaround in the short run and that's really the focus of the team today.

Operator, we have time for about one more question.

Your final question comes from the line of Lorraine Maikis with Merrill Lynch.

Thank you. Good afternoon. Just back to Old Navy, can you just talk briefly about what you think the biggest problem was with the product, what changes you've made and will this be in time to impact holiday?

Yeah. I think as I've said, we do feel like we did a nice job getting our product filter to be more special in our stores and to be more trend right. So, having said that we feel good, but obviously the results aren't there. We recognize that it is a fiercely competitive market set that Old Navy plays in, and that it becomes really important for us to continue to make sure that our differentiation which is not just product and price, but a fun and compelling experience is critically important. We did see some good traction in our women's business that made us feel like we were on the right track. That has contrasted against our men's business, which has been really tough. So I think all in all, the product has gotten better. We need to continue to make sure that our marketing is compelling on all three dimensions. And needless to say, we know it's a competitive marketplace. We need to do -- we need to do it to get -- to be effective against our competition and win share.

So, I'd like to thank everyone for joining us on the call today. As always, the Investor Relations team will be available after the call for further questions. Thank you.